Notes to Accounts of IMEC Services Ltd.

Mar 31, 2025

XIV. Provisions, Contingent Liabilities and Contingent Assets

A provision is recognized if, as a result of a past event, the company has a present legal or constructive obligationthat
can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obli¬
gation and there is reliable estimate of the amount of obligation.

A disclosure for contingent liabilities is made where there is a possible obligation arising from past events, the exist¬
ence of which will be confirmed only on 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 arise from past events where it is not prob¬
able that an outflow of resources will be required to settle or a reliable estimate of the amount cannot be made.

XV. Leases

As a Lessee

A lease is classified at the inception date as finance lease or an operating lease. Leases under which the company as¬
sumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets
are capitalized at fair value or present value of the minimum lease payments at the inception of lease, whichever is
lower. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a
constant rate of interest on the remaining balance of the liability. Finance charges are recognized in finance costs in
the statement of profit and loss.

Other leases are treated as operating leases, with payments are recognized as expense in the statement of profit and
loss on a straight line basis over the lease term.

XVI. Impairment of Non-Financial Assets

The company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a
group of non-financial assets are impaired. If any such indication exists, the company estimates the amount of im¬
pairment loss. For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash
inflows from continuing use that are largely independent of the cash inflows from other assets or group of assets is
considered as cash generating unit. If any such indication exists, an estimate of the recoverable amount of the indi¬
vidual asset/cash generating unit is made.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount.
Losses are recognized in profit or loss and reflected in an allowance account. When the company considers that there
are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment
loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment
was recognized, then the previously recognized impairment loss is reversed through profit or loss.

XVII. Financial Instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provi¬
sions 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 acquisi¬
tion of financial assets and financial liabilities at fair value through profit and loss are immediately recognized in the
statement of profit and loss.

Financial instruments also include derivative contracts such as foreign currency foreign exchange forward contracts,
interest rate swaps and currency options; and embedded derivatives in the host contract.

XVIII. Effective interest method

The effective interest method is a method of calculating the amortized 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 fu¬
ture cash receipts or payments through the expected life of the financial instrument, or where appropriate, a shorter
period.

(A) Financial assets
Classification

The Company shall classify financial assets and subsequently measured at amortized cost, fair value through other
comprehensive income or fair value through profit or loss on the basis of its business model for managing the finan-

cial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

All financial assets are recognized initially at fair value plus transaction costs that are attributable to the acquisition of
the financial asset, in the case of financial assets not recorded at fair value through profit or loss. Purchases or sales
of financial assets that require delivery of assets within a time frame established by regulation or convention in the
market place (regular way trades) are recognized on the trade date, i.e., the date that the company commits to pur¬
chase or sell the asset.

Measured at Amortized cost

A financial asset is measured at the amortized cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal
and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortized cost using the effective in¬
terest rate (EIR) method. Amortized cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR. The EIR amortization is included in finance income in the state¬
ment of profit and loss. The losses arising from impairment are recognized in the statement of profit and loss. This
category generally applies to trade and other receivables.

Measured at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial
assets, and

b) The asset''s contractual cash flows represent SPPI.

Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair
value. Fair value movements are recognized in the other comprehensive income (OCI). However, the company recog¬
nizes interest income, impairment losses & reversals and foreign exchange gain or loss in the profit and loss. On de¬
recognition of the asset, cumulative gain or loss previously recognized in OCI is reclassifiedfrom the equity to profit
and loss. Interest earned whilst holding FVTOCI debt instrument is reported as interest income using the EIR method.

Financial Asset at fair value through profit and loss (FVTPL)

FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria for categorization
as at amortized cost or as FVTOCI, is classified as at FVTPL.

In addition, the company may elect to classify a financial asset, which otherwise meets amortized cost or FVTOCI cri¬
teria, as at FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recog¬
nition inconsistency (referred to as ''accounting mismatch'').

Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the prof¬
it and loss.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is
primarily de-recognized (i.e. removed from the company''s balance sheet) when:

i) The rights to receive cash flows from the asset have expired, or

ii) The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a ''pass- through'' arrangement; and either (a)
the company has transferred substantially all the risks and rewards of the asset, or (b) the company has neither trans¬
ferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

iii) When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has nei-

ther transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the as¬
set, the company continues to recognise the transferred asset to the extent of the company''s continuing involve¬
ment. In that case, the company also recognises an associated liability. The transferred asset and the associated lia¬
bility are measured on a basis that reflects the rights and obligations that the company has retained.

iv) Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the company could be required
to repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortized cost e.g., loans, debt securities, depos¬
its, and bank balance.

b) Trade receivables

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

i) Trade receivables which do not contain a significant financing component.

The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recog¬
nizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

ii) For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether
there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased signifi¬
cantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, life¬
time ECL is used. If, in a subsequent period, credit quality of the instrument improves such that there is no longer a
significant increase in credit risk since initial recognition, then the entity reverts to recognising impairment loss allow¬
ance based on 12-month ECL.

(B) Financial liabilities Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial
liabilities at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be sub¬
sequently measured at fair value.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss or
amortized costs.

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net
of directly attributable transaction costs.

The company''s financial liabilities include trade and other payables, loans and borrowings, financial guarantee con¬
tracts and derivative financial instruments.

Financial liabilities at fair value through profit or loss.

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative fi¬
nancial instruments entered into by the group that are not designated as hedging instruments in hedge relationships
as defined by Ind-AS 109. Separated embedded derivatives are also classified as held for trading unless they are des¬
ignated as effective hedging instruments.

Gains or losses on liabilities held for trading are recognized in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial
date of recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value
gains/ losses attributable to changes in own credit risk are recognized in OCI. These gains/loss are not subsequently

transferred to P&L. However, the company may transfer the cumulative gain or loss within equity. All other changes
in fair value of such liability are recognized in the statement of profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using
the EIR method. Gains and losses are recognized in profit or loss when the liabilities are derecognized as well as
through the EIR amortization process.

Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are
an integral part of the EIR. The EIR amortization is included as finance costs in the statement of profit and loss.

This category generally applies to interest-bearing loans and borrowings.

Derecognition

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the
terms of an existing liability are substantially modified, such an exchange or modification is treated as the DE recog¬
nition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts
is recognized in the statement of profit or loss.

Measurement of fair values:

The Company''s accounting policies and disclosures require the measurement of fair values, for financial instruments.

The Company has an established control framework with respect to the measurement of fair values. The manage¬
ment regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as
broker quotes or pricing services, is used to measure fair values, then the management assesses the evidence ob¬
tained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, includ¬
ing the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible.
Fair values are categorized into different levels in a fair value hierarchy based on the inputs used inthe valuation tech¬
niques as follows.

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either direct¬
ly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: inputs for the asset or liability that are not based on observable market data (unobservable
Inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy,
then the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the low¬
est level input that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting periodduring
which the change has occurred.

Note 20 Contingent Liabilities -

(As per Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets)

1. The company has issued corporate guarantees on behalf of related parties (RSAL Pvt Ltd.), and the following mat¬
ters are currently under litigation before the Debt Recovery Tribunal (DRT), Jabalpur. These guarantees may result
in outflow of economic resources depending on the outcome of legal proceedings. Based on management as¬
sessment and legal opinion, these are disclosed as contingent liabilities.

Total Contingent Liability (Corporate Guarantees): ^ 175.89 Crore

Management is monitoring the ongoing litigation and believes that the outcome of these matters will be deter¬
mined based on judicial proceedings. No provision has been made in the accounts as the obligations are contingent
in nature and will arise only upon unfavorable outcomes.

2. The following contingent liability has been disclosed in the financial statements based on ongoing legal proceedings.
The matter is currently unresolved, and no provision has been made, as the liability is not yet determined and is de¬
pendent on the outcome of the adjudication process.

The National Company Law Appellate Tribunal (NCLAT), vide its order dated 28.02.2025, observed that the matter re¬
garding the determination of customs duty liability is to be adjudicated by the Customs Authority. As such, the liability
has not yet been finalized, and the matter remains under judicial consideration before the Customs Act. The company
continues to pursue the appropriate remedy under the applicable legal framework. Accordingly, the above amount has
been disclosed as a contingent liability, with no accounting provision recognized in the books.

3. The Company is involved in the following legal proceedings wherein it has been made a respondent, although it is
not a principal party to the underlying disputes. These matters primarily pertain to property and title declarations,
and are currently pending before the District Court, Dhar. While IMEC Services Ltd. has not initiated nor is directly
involved in the substantive claims, it has been arrayed as a respondent in the following suits, and therefore dis¬
closes these as contingent liabilities:

The Company has not recognized any provision in respect of these matters, as the outcome of the proceedings is
uncertain and IMEC Services Ltd. is not directly liable for the claims under dispute. These amounts have therefore
been disclosed as contingent liabilities, based on the fact that the Company has been named as a respondent and
may be affected depending on the final outcome of the cases.

Note 22

a) Trade Payables includes Rs. Nil (Previous Year Nil) amount due to micro and small enterprises registered under
the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED) Act.

a) Financial Year 2015-16 to 2022-23, Company''s subsidiary RSAL Steel Pvt. Ltd. has suffered huge losses and conse¬
quent upon its net worth has been fully eroded further subsidiary''s accounts declared Non-Performing Assets by
its banks, the Company has provided for diminution in the value of its investment in subsidiary for full value i.e.
Rs. 5,279.87 Lacs in the Statement of Profit and Loss during the FY 2015-16.

b) Company holds 1,50,000 Equity Shares of Agrotrade Enterprises Limited, in the Financial Year 2017-18, Agrotrade
Enterprises Limited has suffered huge losses and consequent upon its net worth has been fully eroded. Consider¬
ing the negative net worth Company has provided for diminution in the value of its investment in Equity Shares
for full value i.e. Rs. 167.71 Lacs in the Statement of Profit and Loss during the FY 2018-19.

General Information

Factors used to identify the entity''s reportable segments, including the basis of organization

Based on the criterion as mentioned in Ind-As-108- "Operating Segment", the Company has identified its re¬
portable segments, as follows:

• Segment 1- Service

• Segment 2- Trading

Unallocable - All the segments other than segments identified above are collectively included in this segment.
The Chief Operating Decision Maker ("CODM") evaluates the Company''s performance and allocates re¬
sources based on an analysis of various performance indicators by operating segments. The CODM reviews
revenue and gross profit as the performance indicator for all of the operating segments

In the opinion of Board of Directors, non-current/ current assets and Loans and Advances have value on realiza¬
tion in the ordinary course of business, at least equal to the amount at which they are stated in the Balance
sheet and that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities
other than stated herein above.

Note 30 Leases - Where company is Lessee:

The Company has taken various premises under operating leases with no restrictions and is renewable/ cancel¬
lable at the option of either party. There are no sub leases. There are no restrictions imposed by lease arrange¬
ments. The Company has not recognized any contingent rent as expense in the statement of profit and loss. The
aggregate amount of operating lease payment recognized in the statement of profit and loss is Rs. 20.88
Lacs (Previous year Rs. 38.05 Lacs).

Gratuity:

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees
who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on
retirement/termination is paid as per the provisions of Payment of Gratuity Act, 1972. The gratuity plan is funded
plan and company makes annual contributions to the Group Gratuity cum Life Assurance Scheme administered
by LIC of India, a Funded defined benefit plan for qualifying employees.

The annual premium paid to Life Insurance Corporation of India is charged to statement of Profit & Loss ac¬
count. The Company also carries out actuarial valuation of gratuity using projected Unit Credit Method as re¬
quired by Indian Accounting Standard "Employee Benefits".

Note 33 Financial instruments - Fair values and risk Management Financial
Financial Risk Management

The Company''s principal financial liabilities, other than derivatives, comprise borrowings, trade and other paya¬
bles, and financial guarantee contract. The main purpose of these financial liabilities is to manage finances for
the company''s operation. The company''s financial assets comprise investment, loan and other receivables,
trade and other receivable, cash, and deposits that arise directly from its operations.

The Company''s activities are exposed to market risk, credit risk and liquidity risk. In other to minimize adverse
effects on the financial performance of the Company, derivative financial instruments such as forward contracts
are entered into to hedge foreign currency risk exposure. Derivatives are used exclusively for hedging purpose
and not as trading and speculative purpose.

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

(i) Market risk

(a) Currency risk;

(ii) Credit risk; and

(iii) Liquidity risk

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 minimize potential adverse effects of risks on its finan¬
cial performance. The Company''s risk management assessment and policies and processes are established to
identify and analyze 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. The Board of Directors and the
Audit Committee is responsible for overseeing the Company''s risk assessment and management policies and
processes

(i) Market risk

Market risk is the risk of changes the market prices on account of foreign exchange rates, interest rates and
Commodity prices, which shall affect the Company''s income or the value of its holdings of its financial instru¬
ments. The objective of market risk management is to manage and control market risk exposure within accepta¬
ble parameters, while optimizing the returns.

(a)Currency risk

The fluctuation in foreign currency exchange rates may have potential impact on the profit and loss account and
equity, where any transaction has more than one currency or where assets/liabilities are denominated in a cur¬
rency other than the functional currency of the entity.

As on 31st March, 2025 Company is not exposed to foreign currency risk as there are no receivable/payables
outstanding as on date.

(ii) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails
to meet its contractual obligations and arises principally from the Company''s receivables from customers. Credit
risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditwor¬
thiness of customers to which the Company grants credit terms in the normal course of business. The Company
establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in re¬
spect of trade and other receivables and investments.

Trade and other receivables

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.
The demographics of the customer, including the default risk of the industry has an influence on credit risk as¬
sessment. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring
the creditworthiness of customers to which the Company grants credit terms in the normal course of business

Summary of the Company''s exposure to credit risk by age of the outstanding from various customers is as fol¬
lows:

The Company holds cash and cash equivalents with credit worthy banks and financial institutions of Rs 47.41 Lacs
as at March 31, 2025 [Previous Year Rs. 36.97 Lacs]. The credit worthiness of such banks and financial institutions
is evaluated by the management on an ongoing basis and is considered to be good.

(iii) Liquidity Risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.
Liquidity crises have led to default in repayment of principal and interest to lenders. The Company had taken
measures to ensure that the Company''s cash flow from business borrowing is sufficient to meet the cash re¬
quirements for the company''s operations. The Company managing its liquidity needs by monitoring forecasted
cash inflows and outflows in day to day business. Liquidity needs are monitored on various time bands, on a day
to day and week to week basis, as well as on the basis of a rolling 30 day projections. Presently company''s objec¬
tive is to maintain sufficient cash to meet its operational liquidity requirements.

Exposure to liquidity risk

The table below analyses the Company''s financial liabilities into relevant maturity groupings based on their
contractual maturities for:

The Company''s objective when managing the capital is to safeguard the Company''s ability to continue as a go¬
ing concern. In order to provide the return to shareholders and benefits to other stakeholder''s and to maintain
an optimal capital structures to reduce the capital.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''total equity''. For this purpose, adjusted
net debt is defined as total debt, comprising interest-bearing loans and borrowings and obligations under fi¬
nance leases, less cash and cash equivalents.

Equity comprises of Equity share capital and other equity. However, in view of certain adverse factors and li¬
quidity problems faced by the Company, the net worth of the Company has been eroded in previous years.

Accounting classification and fair values

The following table shows the carrying amounts of financial assets and financial liabilities, including their level in
fair value hierarchy. It does not include fair value information for financial assets and financial liabilities if the
carrying amount is a reasonable approximation of fair value. A substantial portion of the Company''s long-term
debt has been contracted at floating rates of interest, which are reset at short intervals. Accordingly, the carry¬
ing value of such long-term debt approximates fair value.

(B) Measurement of fair values

Valuation techniques and significant unobservable inputs

Fair values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:

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

• Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, ei¬
ther directly (i.e. as prices) or indirectly (i.e. derived from prices).

• Level 3: Inputs for the asset or liabilities that are not based on observable market data (unobservable inputs).

Note 40

Company has made the provisions for Bad & Doubtful Debts in FY 2024-25 Rs 1.13 lakh for its customers
(Previous year Rs. Nil).

Note 41

In some cases, confirmation of loans, advances, deposits, debtors and creditors are not received. Therefore,
same are shown as per books of accounts. Necessary adjustments, if any, will be made on reconciliations,
quantum of impact if any, not ascertainable.

1. Current Ratio

The current ratio has significantly increased during the year, primarily on account of a large portion of
trade receivables remaining outstanding as at the balance sheet date. It indicates improved short-term
liquidity, though the quality and reliability of receivables need to be monitored.

2. Return on Equity

The return on equity has shown a sharp turnaround from negative to highly positive, mainly due to sub¬
stantial increase in profitability during the current year.

3. Inventory Turnover Ratio

Inventory turnover in terms of days has risen significantly as the Company sold almost all its stock in the
early part of the year, resulting in comparatively higher average holding period being reflected at year-
end.

4. Debtors'' Turnover Ratio

Debtors'' turnover in days has materially increased, as a major portion of the revenue remains outstanding
and uncollected as at the balance sheet date. This indicates a longer collection cycle and higher credit ex¬
tended to customers.

5. Trade Payables Turnover Ratio

The payables turnover in days has increased due to a higher portion of trade payables remaining out¬
standing as compared to the previous year.

6. Net Capital Turnover Ratio

Net capital turnover in days has increased sharply, despite higher revenue, mainly because a substantial
portion of sales is yet to be realized as on the reporting date. This reflects slower efficiency in converting
working capital into sales.

7. Net Profit Ratio

Net profit margin has risen dramatically, owing to a sharp increase in revenue and profitability.

8. Return on Capital Employed

Return on capital employed has improved significantly, driven by higher profits and revenue with only
marginal changes in capital employed.

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Mar 31, 2024

(vii«> Provisions, Continent Liabilities and tontirigerrt Assets

A provision Is tecogmeed rf, as • jesuir at .1 past event, the company has a present legal or constructive
otiifialmn that can be estimated reliably, and it is probable tnat an outflow or economic benefits Mill be
required to settle the obligation and thrre is reliable estimate of the amount or obligation

A disclosure for contingent liabilities is made where there s a prr''lhlt;; ohUgitlon an sing from past events,
[h* eiliiente pi which wilt be confirmed onty on th? occurrence or non-occurrence of one or more
uncertain future tvtnit npi wholly within the control oF the company or a present obligation tha1 arise
from pasr eve-ms where it Is rmt jjryhahte [hai jin outflow ol resources wiN be required to settte or a
reliable estimate of the amount eaonmbe made
(ix| Leases

Asa Uhh

A leave it s;l«ii1ind at |hp inception date as Finance lease or an operating lease. Leases under which the
company ass umei substantially alt the njhs and rewards p1 ownership are classified as finance leases. When
acquired, suchassets are capitalized ai t.''tir -v |lut or pirftnt nlul of (ho minimum lease payments at the
inception of lease, whichever n lower. Lease payments are apportioned between finunc? charges rind
reduction pt the Ictisc l.abilUyso as to ach.e-ye a constant rate of interest on the remaining balance of the
hahihly. Finance ihirjei .irr rmogniicd in finance costs in the statement of profit and loss.

Other lri*c* -ire fronted as operating leases, with payments are recognued as espense In the statement pf
profit and Joss on a straight limr ti 1^1 ¦¦ over (he lease lerm

(k) Impair menr of Non- Financta I Assets

The company assesses st each tcpnrtmg dale whether there is any objective evidence that a non-fmantUI
.liset pr n ^roup ol non-finawial assets are impaired. If any such indication evists, the company estimates
Che amount of impairment loss. For the purpose of assessing impairment, the smallest identifiable .group of
JWtl that generates cash inflows from continuing uip that jre largely independent of the cash rnflows
from other assets or group qF assets is considered as Ciih generating unit, tr any stich indication oasts, an
esnmare of the recoverableamount of the individual assei/cpsh Etjieriijng unit is made

fin impairment loss is calcurated ns 1he difference between an asset''s carrying amount arid recoverable
?mount. Losses ere recognuerf in prprii or toss and reflected in an arlowanee account. When (he company
considers that there are no tealrstic prospects of recovery oF the asset, the refeyant amounts ire written
oFf. If the amount of impairment loss subsequently decreases and the decrease can be related objectively
10 an event occurring after ihe impairment was recognized, then The previously recognized impairment
^!0Ji is reversed through profn or [pis.

(XI | ^:Finjnciol Initrurm''nEi

r.rijmciji a$Hti and '' abflibH are recognized when the Compaq becnmEi a Dan_v to me

i n^,,l^>''.h[(L.ii nrL-¹.i".i¦ ¦!¦--. uf [hi¹ inilrum''-n! Financial aiipU .ind habililje . fere inilially measured ¦ it ''.n^r v.iluc
Traninchon costs th_HH arc direrfly Attributable Id (he acquisition or issue oF financial assets and finjuinal
liabilities (other than fm metal assets and fbtancial liabilities at Fain value through profiI and loss) arc drilled
r.j cn deducted From the fair value measured on initial recognition of financial asset or Financial liability
The Tr.ins.itEmn rc-vt''. tHreclIy jtriHljUtiblp (0 (hr jt-quiiiEinn ?! firMr-tuil jssrts jncl lin.nnLu'' l-.ibiliE Li jr Ifeit

value thfcnijii profit and loss are immediately recogmzed In the statement of profit and loss

Finjncl i¹ MsVumrnEi also Inc I l dr- derivdl-vr contracts Sucfi as iDreign cur¹ ency ''! ur ¦¦ i[^i i ecthanjc forward
CMUKh, Interest rate swaps and currency options, and embedded derivatives in I he host contract

(Meet iue interest method

the effective interest method H -1 method pi calculating the amorlisrd cost gl t finjnti.jl instrument and Ot
allocating initwt income nr oKfirniP pvrft The releva ns period The elFecuve interest raie Is ifte rare that
exactlydiscounts future cash receipts or payments through the expected life ol the linanpial instrumeni, chi
where appropriate. 3 shorter period.

(A] Financial assets
Classilicaiion

The Cotnpany shell ctass''ly financial asse''s and yubsequo "Ely mpayured ji amortised cost, lair value
through other comprehrnMvr income or Ian value through profit or ¦ oss on the basis oF >ts business model
I nr m tnjgii^ the ; manual assets and the com i actual cash How characteristics o^J the financiaE asset

Initial recognition and measurement

4Hl financial assets are recognized initially at fair vjtue plus Transaction cost* that are attributable to the
acqkxsiticm of it™- financial Hurt, m the HH ?'' lihanci jI assets nat recorded at Fair value through proFn or
loss Purchases or sales of financial assets that require delivery pi assets within * lime Frame tstaWith ml by
regulation or convention in the market place I regular way trades) Are recognized on the trade date, i.e , the
date rh,11 ihr company cnmnuEi to purchase or sell the asset.

Measu red at Ampft iicrf cost

A financial asset *s measured al the amortized cost H bolh the lollqwing conditions are men

i) Tht asset is held witFi n a business model whose objective « to hold assets for ctJtacting
contractual cash flows, and

H Coniractu.il Ihms cd ihr ,iswt fiwfl rise- urt specified dates to cash hows that are solely payments oF
principal jrid interest LSPPIFon the principal amount outstanding

After initial mc4durtfadflt such Imjn.nJl assets are subsequently measured at amortized cost using th.’
eltfeCtiye lhldf**t tn<-^L (t¹ !¦:! method. Amortized cosl is calculated by taking info account any discount or
premium an acquisition and fees or costs that are an integral part oE ih? EiR The FIR afnortJ»Uon is
included In flmmee income in the statement oF profit and loss. The lOSSc! arising horn nopairmoni are
recognized In the statemenf of profit and loss. This categor> generally applies to trade and other
receivables.

Measured ni Fair v llur through other comprehensive income |FVTOCfl

a financial asset is measured at fvTOCi if both pi the rolinwmg critrrj.i ,>rr met

;! The* nbjrciive of the business model is achieved both by collecting contractual cash Hows and selling The
financial assets, and

ii) Thq asset''s contractual cash flows represent 5PPI.

h-njnri.il .L''.M-t¹, inc. IliHltI wilh-n lhr FVT0D crfrgdty are measured initially as wf.l JS j C a at h reporting date
at ''Fair value. Fair valve movements are recognized In the nt*r-r rnriipri-hr''nnv^ iiUu^iv (OCI). Hawevrr, Lhe
company reeognrzes interest income, Impairment losses A reversals and foreiEO exchange gam or Joss Irt
lhr- fim''.r jnd Iv¹.¹, On. de rprogmlion ?( 1 hi'' I, cumulative gain Or loss previously recognized in DC I i i
reclaiSifiPd Irpm the e-qinTy to pro-fH and In’,’, Inter pjr fjrnrd whilsl hnidr''.g FVTCJCI Ui-bT inslTuinent i S

reported ji. im»™st income using the tin method.

Financial Asset at fair valor through profit anil IGii (fVTPL)

FVTPL i-i a residuaE category tor imanc-ial asset. An* Financial asset, which dnes not meet (hi cftttflr Tor
r.iti''gorrT.ihon .iv ft amgrtlHd t''OJI nr a* f VTOlI, rj U.iSsiEiC-d as at FVTPL

|n addition, the company may elect 1n classify a iiri.miul ,iscet, which otherwise meets amortlied COST or
FVTOQcriteria, at at FVTPL. However, such election is alfowed only if doing so reduces or eliminates a
measurement or recognition inconsistency deterred to as ''accounting mismatch''].

Financial assets included wilEmu the FVIPL LJiogury are measured at fair value with alt changes recognized
in thepnofu and loss.

De-recognltloh

A financial asset (Or. where applicable, ,i p.irt of a Nn.incifl Hurt or part of & Cdmpfny nt %rmilar I n.inCiil
assets) is primarily de-recognued (p.e. temoved from the company''s balance sheet] when:

ff The rishts to receive cash flows Pnom the asset have expired, or

m) The company has transferred ''ts rights to recejyo cash flows from the asset or has assumed an

oWiEat''on to pay the received cash flow} in full without material delay to a third party under a
¦pass- through'' arrangement, and Other (a) the company htfi trynifrrrpij 3dbst anti ally all lhp risk-,
and rewardsof The asset, or |b) the company has neither transferred nor retained substantially all
the risks and rewards ®f the asset, but has transferred control of the asset.

lilj When the company has Transferred its rights to receive cash flows from an asset uf has entered

into a- pass’throi*.h arrangement, ll evaluates If and to what extent it has retained the risks and

rewards oF ownership Whm it has ftfithw (rthtfwtd nof retained substantially all uf ihr risks
and rewards of the asset, noi transferred control of the asset, the company continues la recognise
the tranjlfrred asset to the extent oF (he company’s continuing involvement In that case, the
company also recognises an associated liability The transferred asset and the associated liability
ore measured on a basis Thai reflects the rights and obligations that 1he company has retained

iv E Continuing mvolvemen t that lakes the for m of .1 guar ante* over the transfer red asset measured
at the tower of the original carrying amount of the asset and the maximum amount of
consideration that the company caulcf be required to repay.

Impairment of financial assets

In atcorcl.ince with Ind-AL 109, the Company applies cepectrd credit loss IECl| model Tor nwjiumiheni
andrecogoition qf impairmenl loss on the following financial assets and credit risk exposure

a) Financial assets ihar art; detn instrument*, and *r* m«sured at smprTited colt c g-, Kj*nj.

seturities. deposits, and bank balance

b| Trade receivables

Tilt¹ Company fcrilOws ''Simplitipd .lrpruaijh" 1-or recognition nf impairment loss alnw.mcr on:

If Trade receivables which do not contain a significant financing component.

The application pf simplified approach does nal require the Company to track changes in credit osk

Raihur, it r*cognite* impairment loss allowance based or¹ lifetime fCLs at each reporting date, fight

from He in>t>ai recognition

ii) For recognition of impairment low gn other tinerciel assets *ntf risk enposure, (he tgmpjny
Jcierrmfiti that whether [here has bec''n a significant -ricrease In the credit risk Knee Initial
rccg£nilion It credit Tisk has nnl .ncrLMved Dgniflt anlly, 12 month ECL is used to provide lur
impa rmoit Toes However, if credit r^sk has ncreased tignffitarttty, lifetime E-CL h used H. m n
subsequent period, credit quality of the IdHruireql improves such that there is no longtr j
significant Increavp in -Credit rick mi¹ in-risl rgedgn-ftion, then the entity revc-rts. to rorogrim«k

imppirment ig*s allowance based on 1 J-month ECL,
i 111 Financial liabilities Classification

1 he Company classifies all financial liabilities as subsequently measured at arnpr-tised cost, evccpi fn''
financial liabilities lit Tnir value through profit pr loss. Sswh Fiabililifs, including drriveliveS Ih.Lt ,m-
li.it- IHifs,shall be MpbseqvehtlT measured at fair value

Initial, recognition and tneo?ur m(m

financial JiatHitiCE anr classified. al mitijl rpcoftnilign. at financial li.it: >i1 In at 1 a ir value through pinht Or
FC>vS Cm imenilfd LChili.

AN Imancial liabilities are Trcogniied irtiij.illy ,ii lair value and, in the ca*i of loans and horrowmgi and
p.Lvah es. nci pi dlrrctlj atir LiuuLIl'' rransacuois cosis.

i tie company''s financial liabilities include (rede and other payables, loans and bn:rowings, flnfntul
guarjnlee contracts and derivative Tinanclil instruments

Financial liabilities at fair value through profit nr loci.

i ¦ r-inc ai l>abi itin at fair value through profit nr loss iru lube ¹ n.innji Irabilitrec held 1 or trading and Inlancial
luh-htics drsignaii d upon initial reecf.nliion as at fair value through c''dr or loss financial liabilities are
classified as held for trading rf they ace incurred For the purpose oF repurchasing in the near Term This
category also includes derivative fmartial Instruments entered into by The group That are not drvign.iu-d a-j
hedging instruments in hedge relatiunships asdrfintd bytnrfAS NJ3 Separated embedded derivatives are
also dassiT''C-d as held Fur trading unless they aft designated as eftenive hedging instruments.

Gains or tosses on I labilities held for trading are recognirnd in rhe profit or loss,

financial liabilities designated -itpoo initial recogmtipn ai birr value through profit or loss am designated at
tFie initial date ol recognition. and only -t the criteria m Ind-AS 1D9 are satisfied, fur ilatulines designated as
FVT-?l. fair value gams/ losses attributable to changes n own credit risk are recognized m OCI These
gams/loss are no! subsequently transferred to P5t However, the COrnp.my m.iy ¦i.iT.tH''i lhH- tumuljtive
gain or loss within equity All other changi-, In fair viiluv bf such liability are recognized in the statement of
pi dirt or loss

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised
cost using the £|R method. Gains and losses aft rtcosnized in profit gr loss when the liabilities are
derecognised as we II as IhJOUE h | he £l R ,i m grl iy jI inn pr ?(£»

Amortised loyt h calculated by ran''-E into account any discount or premium on acquisition and lees or
costs that a re an ¦nlegral part of the El fi The £tp amorti sation ie i ncruded as fina nee costs m the s1 a ttrmcnt
of prplit and Toss-

¹h.s category generally applies to interest-bearing loans and borrowings.

bimcpihlDn

A Financial liability f3 derecotfn^:red when (he obligation vnder (be liability I'' discharged P^r CflrKPltcd nr
empires. When an earning financial hahlllfy is i*pll*ert by another from lhe same tender on substantially
diFrerpnt lprtrvs, or the lprm-s oF an esHStinfl natality art substantially modi(iL"d_J such an isrehanE? or
modilrLatnon is treated as The derecognition of the anginal liability and The recognition of a new natality
fin'' MMIcrn''ori'' ii 1hr respective c air yn-ig amount! r. rnrcj^uL''d m [tii^L SlytrrriEtVT of piufiE ur loss.

t-hF.¹ iisurerr.L-nL ? I Fair values:

The- Company''s accounting polio es and disclosures require the measurement oF f?.ir values, for 1-in.nnt i.il

instruments

The- Company has an established control Framework with respect to lhe measurement od Fair vaturs The
manage jntn( regularly reviews Significant unobservable inputs and valua''i&n ,;rJ;uilr^,rnti If third parly
information, such as broker quotevor pricing Semites, is usl-J in measure fair values. Then the management
assesses she evrdeqce obramed 1rom The third parties id support the conclusion that such valuations meet
the requirements of md AS, including the level In the fair value hierarchy In which such valuations shoul-d be
ditM

WhL''-u mL-aiuring the fair valno possible fair values are categorised into drfferem il^-vl^-Is rh a fair value hierarchy based on (he inpuis used m
the valuation techniques as follows

Level 1 quoted prices [unadjvilvttf in .ichvr imrlttit for drnti(frl Jisftj Or liabilities,

Level 7: inputs Oihfr (hon quoted prices included >p Level 1 that art observable Tor lhe asset or liability,
either directly (i.e. as pneesf u- indirectly |L|. derived from prices].

Level 3 input! FPr lhc asset ur liabhTy thal arc not based onobservablo market data funobseryable
Inputs h

If the inputs used ip measure the fair value of an asset nr a liability tail inio dillcrrnt levels of the lair value
hierarchy, then 1he fair value measurement is {ategori&^d in ns entirely in the same Eevel uf (he fair valor
hierarchy asihc lowest level input I hat is significant ta the e-nhre measurement.

The Company recognises transfers be-iween levels of the fair value Hierarchy ,n the end of lhe repealing
pcripddurtna which (hp change has occurred.

J| On f(h >finv_fr\ ITOJ, the MQn''bri- NCI T Order E^h paiscd Jfid outer In IA too LmVZWt m CPUPJNo
29B5/WBVC I''/jn | s [certified one copy a< o?der receded on January 1J. ZQZa) regarding the ipjKOvai or
ReiDluliDn Plan tv the Hen ble WLl. Fru-m Lhe dal* dT o’der RSAl lleel Private Limited Sealed la 6e lhe
tuhudinrv of IF.¹ hC Vrr>-.ev Limned Ithn Hr ding. LompanV Airordinglv. 1he Company 11 n-n1 having anv
i*ttfof*yenhe iiiiitiMihagementol hsjl Bitei Pfi*3ie Limned

bt Lompanv rc Ji L. jO.OOO tipii''ly ^kirel or Ac^rolrj-de Enterpr^ci Limited., id the fidarWial YtAr ZD17L9,
4fr«nda Jnreroriwt Limned u.ffered ivige kntH and conmunt upon rts net mgrth hat been 1uiiy
eroded Considering ihc nef*t™£ n>i. _w&nh Company nas tfov don tor dimlnudpn. in [he value 01 tta
irwcttment m Equdv $hi«n far fu ¦ va-lur l.r (Li LG7 7L Lact m Lhe ^Litemedl or Proto ard Lc-iv during tt-.¦
FT ZDiB-19.

Note 34 Financial Instruments - Fair valuer and risk
Management Financial risk m-:n j [tmt!nt

Thf COftipanv''s n^r,ncip:il hn.mCiJl Ir3biliCrei, Other |hj- derivatives, comprise borrowing li idj- .1111J
?1 hLrr piyjt>k-i. and financial guarantee contract. The main- purple oF ihcrt Financial lubilnies is to
manage Finances for The company''} operation. The company''s lifianaai assets comprise investment,
''oan and other reccivablFS, trade and operations.

T3-.e Company''s activities are exposed to market risk, crrdir risk and liquidity risk Ip other lo
m.nLmiir idverst? effects on the Financial perform oF the Company, derivative Fii-.aneiJl
insirtimerns such as forward contract* Jfr entered into to hedjje foreiRn currency risk exposure.
Derivatives are used exclusively Fm hedging purpose anp not trading and speculate purpose

The Company Has exposure to the lollowing risks arising from hnancral kiUfWWntK

lip MpJ-kpt risk
(j| Currency risk:

"i Credit ri}k: and
fhi] liquidity risk

Risk m.in pg* mpnt framework

I he Company''s. aclm''ifS r-Kpuso it ^(<5 ? v;rrir-ty rliki, including market risk, credn risk and

litiuidnv risk The Company''s primary risk maunBempn! (Of us is Id .......milt potential Jdverse ejects

?F risk;. on i-ii financial ceriormance The Company''s risk management nssesimeni and policies and
proM''«*^ are established 10 itlenl-fy and analyse The risks faced by''he Company, to set appropriate
Fisk limits and rontTnls, ,md in mnrittpriuth fiiks and compliance rtnth the same Uisk assessment jnd
management poises aed processes arc reviewed regularly to reflect changes in market conditions
and the Company''s activities. The Board of Director and the Audit Commiitre is responsible lor
overseeing the Compan/s risk assessment and management policies and prpttsies

(0 Market risk

Market risk Is ihe risk pF changes the market prim on account o'' foreign exchange rates, interest
rates and Commodity pnees, which shall affect the Companys mcomc or the valm; oF its holding of
Its Fin a octal instruments. The obfect-yc of market risk management IS TO m.inagu and < uni rill market
risk exposure Within actepllhk par*metfry while OpumiSartg lhe returns.

jaiCkrrrenoy risk

ThL- II-jiEu.inon In Foreign currency rxchangr rjtOS may have polunLi.il impact on The profit and loss
account anctequMVr where any transaction has more than one currency or where assets/ha&ihties are
dimmiHri.ilrd in a currency pther 1 h.’i.i the IC i ¦" C T on ill currency qF lhe entity.

As on ilsi March. lOSa Company I} not exposed to foreign curtenpy risk ts (her* j:r no
rccewable/piiyables outstanding as on date.

|k] Credit Risk

Credit risk''s The risk of fioanoal loss to lhe Company f a customer or counterparty 10 a financial
mslfuimem Fails 10 nveet tU contractual obligations and arises principally irom me Companys
mcoivat-les from customers. Crc-ditrisk Is managed through credit appruvals, eltihlilMog trrdit limits
and LontFntfOusFy menltnrinj the credit worihiness of customers to which ihe Company grants credit
terms In Ihe normal course oF husineji. Th* Company establishes an allowance for doubHul debts
¦md impairment that represents its estimate cd incurred losses in respect of trade and other
recewJbdes and investments

Trade and other renewables

The Company''s exposure to credit risk is influenced mamty by the individual characterises of each
customer. The demographic* oF the cusiomtr, Including thL^j delauK risk oF ihe industry has an
influence on credit risk assessment Credit risk is managed through c^redrt approvals, establishing
credit limits and continuously monitoring the creditworthiness of customer! to which the Company
grants credit terms in the normal course nFbusiness

Cash and cash Equivalents

The Company holds cash and cash equivalents with credit worthy hanks and fmanc-uil instilutions or
fis 47 41 LaciH at March 31. .£074 [mvtwt Yhmt Ri J6 97 LjlsJ. The oedit worthiness of such banks
and hn.iriLHJl ihiiiTutioniis evaluated by the management on an ongoing basis and is considered to
be pood

I im} Uquidlsy Hiik

Liquidity risk is Che nsk that the Company will not be able to mrei it> hnanciol obligations as they
become duo Liquidity Crises h-iv Ird tr: default in repayment ut principal and interest to lenders.
The Company had taken measures to ensure that 1he Company''s cash flow from business borrowing

IS 5Ulf>oer\t td- meet the cash requirements for tftr company''s Operations. Thy { nmpany managing its
liquidity nrrtff by tii.jm-turii>j fofVCHt*Jtish mtlpwS and Outflows in day to day business. LFqUiditv
needs are monitored on various time bands, on a day to day and week to week bests., as wcU _{ai on}
t hr h?}i) pi .1 miring 3D rLiy prpji-cEmns. Presi-nlJy LOmpart/i utijtClivl¹ ¦& TO maintain Suflltleni cash
to meet its operations] liquidity requirements

Note 35 Capital M a nagi''ment

The Company''-* objective when manning |h? capital is to safeguard the Company''s- ability to continue
at a going concern, rn order to provide the ftium to shmrrhnlcicrs jn-d beneFiti io other stakeholder''s
and to maintain an optimal capital structures to reduce the capital

The tonipany monitors capital using a ratio of ''adjusted net debt'' to ''total epuirv''- For this purpose,
adiusted net debt is defined as total debt, comprising inreiesi-branng loans and bprrowii^s and
nh^:if,it,pns under fin ante leases, less cash and cash equivalents.

EPUItV Composes oF Equity share capital ,md Other I’quity Huwrycr. -in ''jii-Vi of :(-r1,nn advert* factors
and liquidity problems faced uy the Company, the net wunh uJ the CmptHt has been eroded in
previous years,

f. Dividends

Ftp dividend is paid bv The-Company In fast Three Tears,
ft li I c- 30 Fin indal instrument* by Category
Ac counting classification and fair values

The lolhiwmjt jablr jlrowt the carrying .mounts of financial assets jr,d Financial liabilities, Including
theif level ir (air value hierarchy. It does not Include Fair value informgMon for financial assets and
financial liabilities if |he carrying amount is a n''.ison iti!¦¦ .hppioiipnJliOn li1 1.iii value. A. £ubsl.11 .(¦ .11
portion qf the Company''s Ifliigytcrm ih-bt h.is been contracted at floating fates oF interest, which are
rutl .it''.Iiuri intervals. Accordingly, the carrying value of such Eong-term debt approximates fair value.

I.B| Measurement gffiirir¹luei

Valuation teciniquus jivd significant unobservable nputs

fair values are categorized into diflecenl levels in j fair value hierarchy based on |be input¹ used in lhe
valujtionterhniq^i .is fallow

¦ Level 1: Quolcd prxtl (u n. il ij.red) m aenve markets fur identical assets or liabilities.

* Level 3: In puli other than queued prices included in Level 1 Lhat are observable Tflr the usitt
at mbiMty, either directty (i.e as prices f u^r indirectly He. derived from (Kites).

HDtt4Q

Company njs mjdr [hfr protHjioftJ Inr llod & Lhfcjb^ul IVnt-i ¦ n f T }Q1 ¦! ,''¦ Nil ftir
Rt H ¦!>

Nott

Ip wmc rjifi. cgrlirm^iipn gl I0.1 "ii. Hhllkfi, d''.¹ ?¦?nty, drbtan jrdcrrdijgn gif; ngr r«eiwd. Tnefjlcrt,
sgmc shewn j: ptr buc^s ol account Nc£tMjr_T acji,S!mtrVJ. ,1 any. wHi be n*tfr o-n inidncilialiiHii.
qua nlum nf iinpjct 11 ? n> rsr, jsctr(jm*blt

1

Level 1:1 npwK foe1 he asset or h ability mat are not base d oo observable mn rk?t beta (u nohserviibk i npu rs i

---

Mar 31, 2015

Note 1 : In the opinion of Board of Directors, Non current / current assets and Loans and Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance sheet and that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated herein above.

Note 2 : LEASES - WHERE COMPANY IS LESSEE

The Company has taken various premises under operating leases with no restrictions and is renewable / cancelable at the option of either party. There are no sub leases. There are no restrictions imposed by lease arrangements. The company has not recognized any contingent rent as expense in the statement of profit and loss. The aggregate amount of operating lease payment recognized in the statement of profit and loss is Rs.1.69 Lacs (Previous year 1.14 Lacs )

Note 3 : Disclosure as per AS-15 – EMPLOYEE BENEFITS GRATUITY

The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees' gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Profit and Loss Account.

Note 4 : Exceptional item Nil (Previous year Rs. 4.30 Lacs) represent value of Gratuity fund of earlier year not recognized, being excess of fair value of planned assets over present value of defined obligation, , hence now recognized.

Note 5 : Pursuant to enactment of new Companies Act, 2013 and as per the schedule II of the Companies Act, 2013, the company has revised the useful life of fixed Assets for providing depreciation on it. Accordingly; carrying amount as on 01/04/2014 has been depreciated over the remaining revised useful life of fixed Assets. Due to this change depreciation for the year is lower by Rs.0.05 Lacs and profit before tax is higher to the extent of Rs. 0.05 Lacs. In accordance with transitional provision in respect of assets whose useful life is already exhausted as on 01/04/2014, depreciation Rs. 0.19 Lacs . (Net of tax expenses Rs. 0.09 Lacs) has been recognized in opening balance of retained earnings as per requirement of schedule II of the Act.

Note 6 : Previous year's figures are regrouped / re – arranged wherever considered necessary.

Note 7 : General Company Information Significant Accounting policies and practices adopted by the Company are disclosed as under :- General company information Ruchi Strips and Alloys Limited was incorporated as a Limited Company on June 18th, 1987.

In the year 2011, Company has transferred its Plant along with Steel Division situated at Village – Sejwaya, Ghatabillod, Dist. Dhar (M.P.) to wholly owned subsidiary RSAL Steel Private Limited. Now, the main business activity of the company is Trading activity in Steel and other products.

The shares of the Company are listed at the Bombay Stock Exchange, Mumbai.

---

Mar 31, 2014

1. SHARE CAPITAL

1.1 The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

1.2 The details of Shareholders holding more than 5% shares:

2. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

2013-14 2011-13

A. Contingent Liabilities

i) Guarantees issued by Bank Nil Nil

ii) Income Tax demand disputed in appeal 6.76 6.76

iii) Corporate guarantee given on behalf of subsidiary 24148.00 24148.00

B. Commitment Nil Nil

3. a. Trade Payables includes Rs. Nil (Previous Year Nil) amount due to micro small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)Act.

b. The information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

4. The Company is engaged in trading/merchandising activities. No other activity qualifies as a reportable segment in terms of AS-17 issued by The Institute of Chartered Accountants of India. Hence disclosure requirement as perAS-17 is not applicable.

5. RELATED PARTY DISCLOSURE

a. Related Party relationship is as identified by the Company and relied upon by the Auditors.

b. Transaction carried out with related parties referred in above, in ordinary course of business during the existence of related party relationship.

6. In the opinion of Board of Directors, Non current/current assets and Loans and Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance sheet and that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated herein above.

7. DISCLOSURE ON FINANCIAL AND DERIVATIVE INSTRUMENTS:

The Company uses foreign currency forward exchange contracts to hedge its exposures in foreign currency related to firm commitment and highly probable forecasted transactions. The amount of foreign currency exposure as at the end of the year is Nil (Previous year Nil).

8. LEASES-WHERE COMPANYIS LESSEE

The Company has taken various premises under operating leases with no restrictions and is renewable/cancelable at the option of either party.There are no sub leases.There are no restrictions imposed by lease arrangements. The company has not recognized any contingent rent as expense in the statement of profit and loss. The total future minimum lease rentals payable at the balance sheet date is as under:

The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs. 1.14 Lacs (Previous period Rs. 1.37 Lacs). The company has not recognized any contingent rent as expense in the statement of profit and loss.

9. DISCLOSURE AS PER AS-15-EMPLOYEE BENEFITS

GRATUITY

The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Profit and Loss Account.

10. Exceptional item Rs. 4.30 Lacs represent value of Gratuity fund of earlier year being excess of fair value of planned assets over present value of defined obligation, hence now recognized.

11. Disclosure Pursuant to Clause 32 of Listing Agreement with Stock Exchanges

A) Loans and Advances in the nature of Loans to Subsidiary-Nil

B) Loans and Advances in the nature of Loans to Related Party-Nil

C) None of the parties to whom loans were given have made investment in the shares of the Company-Nil

D) Loans and advances in the nature of Loans to firms/companies in which directors are interested-Nil

E) Loans and advances in the nature of Loans where there is:

i) No repayment schedule or repayment beyond seven years-Nil

ii) No interest or interest below the rates prescribed in section 372A of companies act 1956 - Nil

12. The financial statements have been prepared in line with the requirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31 st March 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle.

13. The financial statement of current and previous period are not comparable since previous period figures are of eighteen months.

14. Previous period''s figures are regrouped/re-arranged wherever considered necessary.

15. General Company Information Significant Accounting policies and practices adopted by the Company are disclosed as unde

General company information

Ruchi Strips and Alloys Limited was incorporated as a Limited Company on June 18th, 1987.

In the year 2011, Company has transferred its Plant along with Steel Division situated at Village -Sejwaya, Ghatabillod, Dist. Dhar(M.P.) to wholly owned subsidiary RSAL Steel Private Limited.

Now, the main business activity of the company is Trading activity in Steel and other products.

The shares of the Company are listed at the Bombay Stock Exchange, Mumbai.

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Mar 31, 2013

NOTE 1 : Trade payables include bills payable for purchase of goods Rs. NIL (Previous Year Rs. 5505.63 Lacs).

NOTE 2 : a. Trade Payables includes Rs. Nil (Previous Year Nil) amount due to micro, small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).

b. The details of amount outstanding to Micro, Small and Medium Enterprises are as under :

c. The information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

NOTE 3 : RELATED PARTY DISCLOSURE

List of Related Parties and Relationships Party Name

a) Subsidiary Company RSAL Steel Private Limited

b) Key Management Personnel & their relative

Mr. Kailash Chandra Shahra Chairman

Mr. Umesh Shahra Managing Director

Mr. Arvind Mishra Director (Executive Director up to 30.03.2011)

c) Entities where Key Management Personnel & their relatives of Key Management Personnel have significant Influence over the Company.

Suyash Trust

Shahra Brothers Private Limited

Indian Steel Corporation Limited

NICPL Infralinks Private Limited ( Associate)

Note : Related Party relationship is as identified by the Company and relied upon by the Auditors.

d) Transaction carried out with related parties referred in above, in ordinary course of business during the existence of

NOTE 4 : In the opinion of Board of Directors, current assets, loans and advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance sheet and that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated herein above.

NOTE 5 : DISCLOSURE ON FINANCIAL AND DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward exchange contracts to hedge its exposures in foreign currency related to firm commitment and highly probable forecasted transactions. The amount of foreign currency exposure as at the end of the period is Nil (Previous year Nil).

NOTE 6 : LEASES - WHERE COMPANY IS LESSEE

The Company has taken various premises under operating leases with no restrictions and is renewable / cancelable at the option of either party. There are no sub leases. There are no restrictions imposed by lease arrangements. The Company has not recognized any contingent rent as expense in the statement of profit and loss. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.1.37 Lacs (Previous period Rs. 24.44 Lacs). The Company has not recognized any contingent rent as expense in the statement of profit and loss.

NOTE 7 : DISCLOSURE AS PER AS-15 - EMPLOYEE BENEFITS GRATUITY

The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employee''s gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Profit and Loss Account.

NOTE 8 : The financial statements have been prepared in line with the requirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31st March, 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle. Consequently, the Company has re-classified previous period figures to confirm to this period''s classification.

NOTE 9 : The financial statement of current and previous period are for eighteen months.

10. General Company Information

Ruchi Strips and Alloys Limited was incorporated as a Limited Company on 18th June, 1987.

In the year 2011, Company has transferred its Plant along with Steel Division situated at Village - Sejwaya, Ghatabillod, District Dhar (Madhya Pradesh) to it s wholly owned subsidiary namely RSAL Steel Private Limited.

Now, the main business activity of the Company is Trading activitiy in Steel & other products.

The shares of the Company are listed at the Bombay Stock Exchange, Mumbai (BSE).

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Mar 31, 2010

2009-10 2008-09 Rs. in Lacs Rs. in Lacs

1. Contingent Liabilities not provided for

a) Outstanding Bank guarantees 625.97 183.23

b) Disputed liabilities not acknowledged as debts. 475.45 402.76

2. Sundry Creditors includes bills payable for purchases of material Rs. 9103.71 lacs (previous year Rs. 3722.51 lacs)

3. During the year, the Company has forfeited 34200 equity shares of Rs. 10/- each (Amount paid up Rs. 5/-).

4. Preferential issue of Equity Shares :

a) In order to repay the existing unsecured loans raised as margin for availing Working Capital Term Loan(s) and augment its working capital, the Company has come out with preferential allotment of equity shares to Promoters and other investors during the year, at an issue price calculated in accordance with SEBI (ICDR) Guidelines, 2009, duly approved by the Board of Directors and Share holders of the company.

b) The Company has allotted 95,47,075 Equity Sharers of Rs. 10/- each at a premium of Rs. 1.05 per shares on 25th January, 2010.

c) The entire proceeds have been utilized for the purpose for which it was raised.

5. Issue of Preference Shares:

a) The Company has issued and allotted 9,50,000 5% Non-cumulative redeemable preference shares of Rs. 100/- each on 14th December, 2009, aggregating to Rs. 950 lacs, to meet margin requirements for availing Working Capital Term Loan(s). The shares, issued to Promoter group, are redeemable on completion of 14 years from the date of issue.

b) The entire proceeds have been utilized for the purpose for which it was raised.

*Excluding Rs. Nil (Previous Year Rs. 0.75 lacs) paid during the year to Executive Director relating to period prior to his appointment as a director.

6. Related Party Disclosures:

1. Relationships

(a) Key Management Personnel & relatives

Shri Kailash Chandra Shahra Chairman

Shri Umesh Shahra Managing Director

Shri Arvind Mishra Executive Director

(b) Entities where key management personnel or relative of key management personnel have significant interest Suyash Trust.

Shahra Bros. Pvt. Ltd.

Indian Steel Corporation Limited

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

7. In the opinion of the Board of Directors the current assets, loans and advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet and provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than those stated herein above.

8. There are no delays in payment to Micro, Small and Medium enterprises as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006. The information given in Schedule L: "Current Liabilities" regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information avai lable with the Company. This has been relied upon by the Auditors.

9. Previous years figures have been re-grouped and re-arranged wherever necessary to make them comparable.

10. Confirmation of loans, advances, deposits, debtors and creditors have been partly received, therefore same has been shown as per books of accounts. Necessary adjustments, if any, wil I be made on reconcil lation of the same.