Notes to Accounts of Dhatre Udyog Ltd.

Mar 31, 2025

(a) Equity shares of Company were sub-divided from the face value of Rs. 10/- each to face value of Re. 1/- each w.e.f. 10^th March, 2024.

Note: As per the Resolution Plan approved by the Hon’ble National Company Law Tribunal, Kolkata bench, vide its Order dated January 11, 2022 for the Corporate Insolvency of the Company, the Face value of existing Equity shares was reduced from Rs. 10 per share to Re. 0.50 per share, and after such reduction, the Face value of shares was consolidated to Rs. 10/- per share resulting in reduction in the number of shares held by the existing shareholders by 1/20th of the existing holding i.e. the shares of existing shareholders holding 1,09,09,000 equity shares were reduced to 5,45,450 equity shares.

B Rights, preferences and restrictions attaching to Equity Shares

The Company has only one class of equity shares having a par value of Re. 1/- per share (Previous Year - Rs.10/-per share). Each holder of equity shares is entitled to one vote per share and the equity shares will rank pari-passu with each other in all respects.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

A. Nature and purpose of reserves:

(i) Securities Premium: Securities premium represents the premium received on issue of shares over and above the face value of equity shares. The account is available for utilisation in accordance with the provisions of the Companies Act, 2013.

(ii) Capital Reserve: Capital Reserve represents the amount arising on account of reduction in paid-up equity share capital vide the Resolution Plan approved by the Hon''ble National Company Law Tribunal, Kolkata Bench vide its Order dated 11th Jan''2022.

(iii) Retained earnings (including other comprehensive income): This Reserve represents the cumulative profits / losses ofthe Company. This Reserve can be utilized in accordance with the provisions of the Companies Act, 2013.

27. Contingent Liabilities

(to the extent not provided for)

As per the approved resolution plan, the contingent liabilities and commitments, claims and obligations, Corporate guarantees and Legal Proceedings initiated against Corporate Debtor stand extinguished and accordingly no outflow of economic benefits is expected in respect thereof. The Resolution plan further provides that implementation of resolution plan will not affect the rights of the Company to recover any amount due to the Company and there shall be no set off of any such amount recoverable by the Company against any liability discharged or extinguished.

Defined benefit plan

The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The Company has discontinued its manufacturing & trading operations at Visakhapatnam and presently there are no employyess in the Company, other than directors & Company secretary. As such no provision for gratuity is required as at the Balance Sheet date and the existing actuarial liability in the accounts has been written back.

29 Segment information

The Company is currently engaged in a single business segment of Iron & Steel products and thus there is no separate reportable segment as per Ind AS 108 -''Operating Segment''.

The information relating to revenue from external customers and location of non-current assets of its single reportable segment has been disclosed as below:

32 In view of ageing of the pant, old and outdated machinery and technology obsolescene leading to higher cost of production, the Board in their meeting held on 14^th February 2025, decided to shut down the manufacturing operations and also decided to sell, lease or dispose off old assets including plant & machinery situated at company’s plant at Vizianagram. The Board intends to either set up a new plant to resume the manufacturing operations or diversify by monetizing the factory land and other land at Kakinada by developing the same into small plots and utilize the proceeds to fund the upcoming real estate projects. The resolution was approved by the shareholders of the company through a special resolution by postal ballot. In view of above, the company has transferred all the plant & machinery to ‘ Assets held for Sale’ at the carrying value as on 28^th February, 2025, as the management estimated that the realization from sale shall be higher than the carrying value of the total block of such assets.

33 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk

Risk management framework

The Company''s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables, investments, cash and cash equivalents, other bank balances and other financial assets that derive directly from its operations.

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company''s exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the top few customers. The Company’s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities.

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies an d processes for measuring and managing risk, and the Company’s management of capital.

The Company has standard operating procedures and investment policy for deployment of surplus liquidity, which allows investment in debt securities and mutual fund schemes of debt categories only and restricts the exposure in equity markets.

(i) Credit risk

Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company receivables from customers and loans. Credit risk arises when a customer or counterparty does not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing/ investing activities, including deposits with bank and mutual fund investments. The Company has no significant concentration of credit risk with any counterparty. The carrying amount of financial assets represent the maximum credit risk exposure.

Trade receivables

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial statements, credit agency information, industry information and business intelligence. Sale limits are established for each customer and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

Exposure to credit risks

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However management also considers the factors that may influence the credit risk of its customer base, including the default risk associated with the industry.

Other credit risk is managed through credit approvals, establishing credit limits and by continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business. As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of defaults payments and makes appropriate provisions at each reporting date whenever it is for longer period and involves higher risk. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain.

(ii) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Company''s finance team is responsible for liquidity, funding as well as settlement management. In addition, Processes and policies related to such risks are overseen by senior management. Management monitors the Company''s liquidity position through rolling forecasts on the basis of expected cash flows.

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 reputation.

(iii) Market risk

Market risk is the risk of loss of future earnings, fair value 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, commodity prices, 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, payables and borrowings.

(a) 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 exposure to the risk of changes in market interest rates related primarily to the Company''s short term borrowings with floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

(b) Equity price risks

The Company is not exposed to equity risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company does not actively trade these investments.

(c) Currency risk

The Company does not have currency risks since it is not exposed to any foreign currency transaction.

34 Capital management (Ind AS 1)

The Company’s management objective are:

The Company monitors capital on the basis of carrying amount of equity including retained earnings as presented on the face of Balance Sheet. The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. There is no change in the overall capital risk management strategy as compared to the last year.

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business. The management monitors the return on capital, as well as the level of dividends to equity shareholders.

The Company''s objective when managing capital are to: (a) to maximise shareholders value and provide benefits to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital. e

For the purpose of the Company''s capital management, capital includes issued equity share capital and other equity reserves attributable to the equity holders.

39 Financial instruments and related disclosures

39.1 Fair value measurement

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in forced or liquidation sale.

The Company has established the following fair value hierarchy that categorises the value into 3 levels. The inputs to valuation techniques used to measure fair value of financial instruments are as stated in Note 2: Basis of Preparation

The company uses the discounted cash flow techniques (in relation to interest-bearing borrowings and loans) which involves determination of present value of expected receipt/payment discounted using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The fair value so determined is classified as Level 2.

39.2 Financial Instrument by category

The following table shows fair values of financial assets and liabilities, including their levels in financial hierarchy, together with the carrying amounts shown in the statement of financial position.

40 Additional Regulatory Information required by Schedule III

(i) The Title Deeds in resepct of the immovable properties owned by the Company are in the name of the Company.

(ii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(iii) The Company has not entered into any transactions with the companies struck off under the Companies Act, 2013 or the Companies Act, 1956.

(iv) There is no non-compliance with regard to the number of layers of companies prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017

(v) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(vi) The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entitiy (Intermediary) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other person or entitiy identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

(vii) The company has not surrendered or disclosed any income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(viii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(ix) The Company has not revalued its property, plant and equipment, intangible asset and investment property during the current year and previous year.

(x) No proceedings have been initiated on or are pending against the company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(xi) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

41 Previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to conform to this year''s classification. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to amounts and other disclosures relating to the current year.

---

Mar 31, 2024

t) Provision, contingent liabilities and contingent assets

A provision is recognised if, as a result of a past event, the Company lias a present legal or constructive obligation that can be estimated reliably,
and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by discounting the
expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date)
at a pre-tax rate that re 11 eels current market assessments of the time value of money and the risks specific to the liability. The unwinding of the
discount is recognised as finance costs. Expected future operating losses are not provided for.

Contingencies

Provision in respect of loss contingencies relating to claims, litigations, assessments, fines and penalties are recognised when it is probable that
a liability has been incurred and the amount can be estimated reliably.

Contingent liabilities anil contingent assets

A contingent liability exists when there is a pussible but not probable obligation, or a present obligation that may, but probably will nut, require
an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions,
but are disclosed unless the possibility of outflow of resources is remote. Contingent assets has to be recugnised in the financial statements in
the period in which if it is virtually certain that an inflow of economic benefits will arise. Contingent assets are assessed continually and no
such benefits were found for the current financial year.

Contingent Liabilities are shown by way of notes to the Accounts in respect of obligations where, based on the evidence available, their
existence at (he Balance Sheet date is considered not probable

A Contingent Asset is not recognized in the Accounts.

u) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents include cash on hand, cash at bank and other deposits
with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible
to known amounts of cash and which are subject to an insignificant risk uf changes in value.

(a) The Shareholders of ibe Company had approved the sub-division of one equity share of face value ol''Rs.10 each (fully paid-up and
partly paid-up) into 10 equity share of face value of Re. I/- each by way of a postal ballot on March 10, 2024. The record date for the
said sub-division was set at March 29, 2024.

Note: As per the Resolution Plan approved by the Hon’ble National Company Law Tribunal, Kolkata bench, vide its Order dated January
11, 2022 for the Corporate Insolvency of the Company, the Face value of existing Equity shares was reduced 1''romRs. 10 per share to
Re. 0.50 per share, and after such reduction, the Face value of shares was consolidated to Rs. 10/- per share resulting in reduction in the
number of shares held by the existing shareholders by l/20th of the existing holding i.e. the shares of existing shareholders holding
1,09,09,000 equity shares were reduced to 5,45,450 equity shares.

II Rights, preferences and restrictions attaching to Equity Shares

The Company has only one class of equity shares having a par value of Re. 1/- per share (Previous Year - Rs. 10/- per share). Each
holder of equity shares is entitled to one vote per share and the equity shares will rank pari-passu with each other in all respects.

In the event of liquidation of the Company, the holders of equity shares will be entided to receive remaining assets of the Company
after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the
shareholders.

33 Financial risk management

The Company has exposure to the following risks arising from financial instruments:

(i) Credit risk

(ii) Liquidity risk

(iii) Market risk

Risk management framework

The Company''s principal financial liabilities comprise of borrowings, trade and other payables. The main purpose of these financial
liabilities is to finance the Company''s operations. The Company’s principal financial assets include trade and other receivables,
investments, cash and cash equivalents, other bank balances and other financial assets that derive directly from its operations.

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s
primary risk management focus is to minimise potential adverse effects of market risk on its financial performance. The Company''s
exposure to credit risk is influenced mainly by the individual characteristic of each customer and the concentration of risk from the
top few customers. The Company ''s risk management assessment and policies and processes ate established to identify and analyse
the risks faced by the Company, to set appropriate risk limitsand controls, and to monitor such risksand compliance with the same.
Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the
C ompany’ s activities.

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives, policies and
processes for measuring and managing risk, and the Company’s management of capital

The Company has standard operating procedures and investment policy for deployment of surplus liquidity, which allows
investment in debt securities and mutual fund schemes of debt categories only and restricts the exposure in equity markets.

(i) Credit risk

Credit risk is the risk of financial loss of the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company receivables from customers and loans. Credit risk arises when a customer or
counterparty dues nut meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Cumpany
is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing/investing activities, including
deposits with bank and mutual fund inv estments. The Cumpany has no significant concentration of credit risk with any counterparty.
The carrying amount of financial assets represent the maximum credit risk exposure.

Trade receivables

The Cumpany has established a credit policy under which each new customer is analysed individually for creditworthiness before the
payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, financial
statements, credit agency information, industry information and business intelligence. Sale limits are established fur each customer
and reviewed annually. Any sales exceeding those limits require approval from the appropriate authority as per policy.

Other credit risk is managed through credit approvals, establishing credit limits and by continuously monitoring the creditworthiness of
customers to which the Company grants credit terms in the normal course of business. As per simplified approach, the Company makes
provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default payments and makes
appropriate provisions at each reporting date whenever it is for longer period and involves higher risk. On account of adoption of Ind
AS 109. the Company uses expected credit loss model to assess the impairment loss or gain.

(ii) Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at reasonable price. Prudent
liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate
amount of credit facilities to meet obligations when due. The Company''s finance team is responsible for liquidity, funding as well as seldemenl
management. In addition, Processes and policies related to such risks arc overseen by senior management. Management monitors the
Company''s liquidity position through rolling forecasts on the basis of expected cash flows.

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 reputation.

(iiii Market risk

Market risk is the risk of loss of future earnings, fair value or future cash Hows 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 rales,
commodity prices, 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, payables and borrowings.

(al 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 exposure to the risk of changes in market interest rates related primarily to the Company''s short term borrowings with
floating interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal
maturity profile and financing cost.

(b) Equity price risks

The Company is not exposed to equity risksarising front equity investments. Equity investments are held for strategic rather than trading
purposes. The Company does not actively trade these investments.

(cl Currency risk

The Company does not have currency risks since it is not exposed to any foreign currency transaction.

34 Capital management (Ind AS 1)

The Company''s management objective are:

The Company monitors capital on the basis of carrying amount of equity including retained earnings as presented on the face of Balance Sheet.
The Company manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk
characteristics of the underlying assets. There is no change in the overall capital risk management strategy as compared to the last year.

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future
development of the business. The management monitors the return on capital, as well as the level of dividends to equity shareholders.

The Company’s objective when managing capital are to: (a) to maximise shareholders value and provide benefits to other stakeholders and (b)
maintain an optimal capital structure to reduce the cost of capital. I

For the purpose of the Company''s capital management, capital includes issued equity share capital and other equity reserves attributable to the
equity holders.

38 Balances under Trade Receivables & Other advances / receivables are subject to confirmations and adjustments, if any. The Company
considers the said amounts as good for recovery and hence are carried in the accounts at their book values, after provision for expected credit
loss.

39 Financial Instruments and related disclosures
39.] Fair value measurement

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in forced or liquidation sale.

The Company has established the following lair value hierarchy that categorises the value into 3 levels. The inputs to valuation techniques
used to measure fair value of financial instruments are as stated in Note 2: Basis of Preparation

The company uses the discounted cash flow techniques (in relation to interest-bearing borrowings and loans) which involves determination of
present value of expected receipt/payment discounted using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting
period. The fair value so determined is classified as Level 2.

40 Additional Regulatory Information required hv Schedule III

(i) The Tide Deeds in resepet of the immovable properties owned by the Company are in the name of the Company.

(ii> Wilful defaulter

The Company has not been declared w ilful defaulter by any bank or financial institution or government or any government authority.

(iii) Relationship with struck off companies

The Company has not entered into any transactions with the companies struck off under the Companies Act, 2013 or the Companies Act, 1956.
(Iv) Compliance with number of layers of companies

There is no non-compliance with regard to the number of layers of companies prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017

The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entitiy (Intermediary) with the
understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other person or entitiy identified in any manner whatsoever by or on behalf of the company (Ultimate
Beneficiaries) or

The Cumpany has not received any fund from any persun(s) or entity(ies), including foreign entities (Funding Party) with the understanding
(whether recorded in writing or otherwise) that the company shall:

a) directly or indirectly lend or invest in other person or entitiy identified in any manner whatsoever by or on behalf of the Funding Party
(Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(vii) Undisclosed income

The company has not surrendered or disclosed any income during the current or previous year in the tax assessments under the Income Tax
Act, 1961. that has not been recorded in the books of account.

(viii) Details of crypto currency or virtual currency

The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(lx) Valuation of PP&F,, Intangible Asset and Investment Property

The Cumpany has not revalued its property, plant and equipment, intangible asset and investment pruperty during the current year and previous
year.

(x) Bcnumi Property

No proceedings have been initiated on or are pending against the company for holding benanii property under the Bcnumi Transactions
(Prohibition) Act. 1988 (45 of 1988) and Rules made thereunder.

(xi) Satisfaction of Charge with Registrar of Companies (ROC)

The Company does not have any charges or satisfaction which is yet to be registered with Registrarof Companies beyond the statutory period.

41 Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to conform to this year’s
classification. Accordingly, amounts and other disclosures fur the preceding year are included as an integral part of the current year financial
statements and are to be read in relation to amounts and other disclosures relating to the current year.

As per our report of even date attached

As per our report of ever date attached For and on behalf of Dhatre Udyog Limited

For P D RUNGTA & CO.,

Chartered Accountants

Firm Registration Number 001150C SO/- SD/-

Sumit Kumar Agarwal Asit Baran Bhattacharjee

SD/- Managing Director Director

R1TESH KUMAR SHAW DIN:02184000 DIN:02559634

Partner

Membership No. 305929
³lace of Signature: Kolkata
Dated: The 30th day of May, 2024

SO/- SD/-

Ankita Dutta Anklt Gupta

Company Secretary Chief Financial Officer

M.No.: ACS61913

---

Mar 31, 2018

NOTE 1 - CORPORATE INFORMATION

Narayani Steel Limited (“the Company”) is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The company is primarily engaged in the manufacture and sale of TMT bars, Rounds, Squares, Angles, etc. and trading of Billets, Blooms, Ingots, Iron ores, etc.

a) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the share holders.

(A) Terms of Repayment

(i) Unsecured Loan

Unsecured Loans from Bodies Corporate, partly bearing interest, have been taken without any stipulation for repayment and are stated by the management to be in the nature of Long term borrowings.

(ii) Loan Against Vehicles :

a) Details of security

Loans against Vehicles is secured by way of hypothecation of the underlying asset financed.

b) Terms of Repayment

Loans against vehicles is repayable by way of Equated Monthly Installments (EMI), the particulars of which are as follows:

(a) Working Capital Loans are primarily secured by way of hypothecation of Stocks and Book Debts. The rate of interest on Cash Credit from Union Bank of India is 11.60% 2% (on additional adhoc limit of Rs. 5 crores) linked to the MCLR of Union Bank of India.

The loan is also collaterally secured by way of a) charge on Plant & Machinery, office premises, flats and plots in the name of the Company, b) charge on certain immovable properties of the Company, Mr. Sunil Kumar Choudhary, Mrs. Savitri Devi Choudhary, Mrs. Bina Choudhary, Mr. Kishan Lal Choudhary and Narayani Ispat Ltd. c) FDR of Rs 29.00 lacs in the name of the Company. d) Personal guarantees of Mr. Sunil Choudhary, Mr. Kishan Lal Choudhary, Mr. Bivor Bagaria, Mrs. Bina Choudhary, Mrs. Savitri Devi Choudhary and e) Corporate Guarantee from Narayani Ispat Ltd. and Cooltex Merchandise Pvt. Ltd.

(b) 1. Channel Financing from Andhra Bank of Rs. 10 crores is collaterally secured by Fixed Deposit of Rs 2,50,00,000/- and guaranteed by Mr. Sunil Kumar Choudhary and Mr. Kishan Lal Choudhary. The rate of interest on Channel Financing is 9.10% p.a. (Base Rate 0.50)%.

2. Channel Financing from Yes Bank of Rs. 3 Crores is collaterally secured by Fixed Deposit of Rs 60,00,000/- and guaranteed by Mr. Sunil Choudhary, Mr. Kishan Lal Choudhary, Mrs. Bina Choudhary and Mrs. Savitri Devi Choudhary. The rate of interest on Channel Financing is 11.25% (MCLR 2.15)%.

3. Channel Financing from Tata Capital Financial Services Limited of Rs. 10 Crores and an additional limit of Rs. 3 crore is guaranteed by Mr. Sunil Choudhary, Mr. Kishan Lal Choudhary, Mrs. Bina Choudhary & Mrs. Savitri Devi Choudhary. The rate of interest on Channel Financing is 10.75%.

4. Channel Financing from ICICI Bank Limited of Rs. 9.5 Crores is collaterally secured by Fixed Deposit of Rs 1,12,50,000/and guaranteed by Mr. Sunil Choudhary, Mr. Kishan Lal Choudhary, Mrs. Bina Choudhary, Mrs. Savitri Devi Choudhary and Mr. Bivor Bagaria. The rate of interest on Channel Financing is 9.50% (Base rate 1.35)%.

5. Channel Financing from Axis Bank Limited of Rs. 5 Crores is guaranteed by Mr. Sunil Kumar Choudhary, Mr. Kishan Lal Choudhary, Mrs. Bina Choudhary and Mr. Bivor Bagaria. The rate of interest on Channel Financing is 9.50% (MCLR3 1.50)%.

Trade Payables (Due to Others) include Rs. 56,39,588/- (P.Y. Nil /-) due from Private Companies in which Director is a There is no amount that needs to be disclosed pertaining to micro and small enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006).

As at 31 March 2018, no supplier has intimated the Company about its status as micro or small enterprises or its registration with appropriate authority under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006).

(a) Fixed Deposit of Rs. 2,50,00,000 /-(P.Y. Rs. 2,50,00,000) is pledged with Andhra Bank as collateral security for Channel Finance limit of Rs 10,00,00,000/-.

(b) Fixed Deposit of Rs. 60,00,000/- (P.Y. Rs.60,00,000) is pledged with Yes Bank as collateral security for Channel Finance

(c) Fixed Deposit of Rs. 1,12,50,000/- (P.Y. Rs. 1,12,50,000) is pledged with ICICI Bank as collateral security for Channel Finance limit of Rs 9,50,00,000/-.

(d) Other Fixed Deposits of Rs. 10,46,31,680/- ( P.Y. Rs. 11,32,22,119/-) are pledged with Union Bank of India as margin/ collateral security for sanction of credit facilities.

NOTE 6 - EMPLOYEE BENEFITS

Disclosure pursuant to Accounting Standard- 15 (Revised) “ Employee Benefits” :

The present value of obligation is determined based on the actuarial valuation using the Projected Unit Credit Method as on 31st March, 2018 which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

NOTE 7 - RELATED PARTY DISCLOSURE

i) Name of the related parties where control exists irrespective of whether transactions have occurred or not - None

ii) Names of the other related parties with whom transactions have taken place during the year:

(a) Key Managerial Personnel (Directors) Sunil Choudhary

Bina Choudhary Bivor Bagaria

(b) Relatives of Key Managerial Personnel Anjani Choudhary

(c) Associates Hari Equipments Private Limited

(d) Enterprises owned or significantly influenced Narayani Ispat Limited

by the Key Managerial Personnel or their relatives Kedarnath Commotrade Private Limited

Balajee Roadways

Agrimony Tradex Vyaappar Private Limited Hemang Steel Traders

NOTE 8 - CAPITAL WORK IN PROGRESS

Capital Work-in-Progress includes Rs.74,08,742/- (P.Y. Rs. Nil /-) towards expenses incurred on Plant & Equipments for increase in efficiency of the Manufacturing Unit, pending completion and installation thereof and Rs. 1,71,000 /- (P.Y. Rs. Nil /-) towards expenses incurred on development of a mobile based application software, pending completion thereof.

NOTE 9 - EXCEPTIONAL ITEM

Exceptional Item represents payments to certain employees of Vizianagaram unit on settlement of their dues on retrenchment.

NOTE 10

In the opinion of the Board of Directors, the Current Assets, Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the accounts. Adequate provisions have been made for all known losses and liabilities.

NOTE 11

Certain balances of Trade Payables, Trade Receivables, Unsecured Loans and Advances are subject to confirmation. Debtors is net off Rs. 18,42,689/- (P.Y. Rs 26,35,510/-) being certain payments lying under suspense account in absence of information

NOTE 12

The Company has taken premises under operating lease. The escalation clause is applicable on renewal. There is no restriction imposed by lease agreements. These lease agreements are normally renewed on expiry. Expense charged to profit and loss account is Rs. 2,34,000/- (PY: Rs. 6,59,292/-).

NOTE 13 - SEGMENT REPORTING

Segment reporting as required by AS-17 issued by the ICAI notified by Ministry of Corporate Affairs.

1.Business Segment: The Company is mainly engaged in a single business segment of Manufacturing and Trading of Iron & Steel Products, accordingly there is no separate reportable segment as per Accounting Standard 17 “Segment Reporting”.

2.Geographical Segment: This segment has been considered for Secondary Segment Reporting. Since the Company does not have any transaction outside India as sales being in the domestic market only, the disclosure requirement of Accounting Standard- 17 “Segment Reporting”, notified under the Companies Act, 2013 is not applicable.

NOTE 14

Previous year’s figures have been reworked, regrouped, rearranged and reclassified wherever considered necessary to conform to this year’s classification. Accordingly, amounts and other disclosures for the preceding year are included as an