Notes to Accounts of Krishanveer Forge Ltd.

Mar 31, 2025

3.17 Ind AS 37 - Provisions, Contingent Liabilities and Contingent Asset

i The assessments undertaken in recognising provisions and contingencies have been made in accordance with
the applicable Ind AS.

ii In the normal course of business, contingent liabilities may arise from litigation and other claims against the
Company. The Company has significant capital commitments in relation to various capital projects which are
not recognized on the balance sheet. Guarantees are also provided in the normal course of business. There
are certain obligations which management has concluded, based on all available facts and circumstances, are
not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent
liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there
can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is
not expected that such contingencies will have a material effect on its financial position or profitability.

iii Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are
recognised when,

a the Company has a present obligation (legal or constructive) as a result of a past event.

b it is probable that an outflow of resources embodying economic benefits will be required to settle the

obligation and

c a reliable estimate can be made of the amount of the obligation.

iv When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.

v The expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.

vi If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost. Unwinding of the discount is recognized in the
statement of profit and loss as a finance cost.

vii Provisions for warranty-related costs are recognised when the product is sold or service provided to the customer.
Initial recognition is based on historical experience. The initial estimate of warranty-related costs is revised
annually.

viii Restructuring provisions are recognised only when the Company has a constructive obligation, which is when
a detailed formal plan identifies the business or part of the business concerned, the location and number of
employees affected, a detailed estimate of the associated costs, and an appropriate timeline, and the employees
affected have been notified of the plan''s main features.

ix The Company records a provision, if any, for decommissioning costs of a manufacturing facility / construction
site. Decommissioning costs are provided at the present value of expected costs to settle the obligation using
estimated cash flows and are recognised as part of the cost of the particular asset. The cash flows are discounted
at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the
discount is expensed as incurred and recognised in the statement of profit and loss as a finance cost. The
estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the
estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

x A contingent liability recognised in a business combination is initially measured at its fair value. Subsequently,
it is measured at the higher of the amount that would be recognised in accordance with the requirements for
provisions above or the amount initially recognised less, when appropriate, cumulative amortisation recognised in
accordance with the requirements for revenue recognition

xi Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

xii Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic
benefits is probable.

3.18 Ind AS 38 - Intangible Asset

i As required by Ind AS 38.72, the Company has chosen the cost model as per Ind AS 38.74 for measurement
of intangible assets. The Company has measured the cost of acquisition or construction of intangible assets in
accordance with Ind AS 38.24-38.71.

ii Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets
acquired in a business combination is their fair value at the date of acquisition.

iii Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related
expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

iv Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and
accumulated impairment losses.

v The useful lives of intangible assets are assessed as either finite or indefinite. The Company currently does not
have any intangible assets with indefinite useful life.

vi Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment
whenever there is an indication that the intangible asset may be impaired.

vii The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed
at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of
consumption of future economic benefits embodied in the asset are considered to modify the amortisation period
or method, as appropriate, and are treated as changes in accounting estimates.

viii The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss
unless such expenditure forms part of carrying value of another asset.

ix Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either
individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine
whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is
made on a prospective basis.

x Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net
disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when
the asset is derecognised.

3.19 Ind AS 38 - Research and development costs

i Research costs are expensed as incurred.

ii Revenue expenditure towards development is charged to the statement of profit and loss in the year it is incurred.

iii Development expenditures on an individual project are recognised as an intangible asset when the Company can
demonstrate:

? The technical feasibility of completing the intangible asset so that the asset will be available for use or sale

? Its intention to complete and its ability and intention to use or sell the asset

? How the asset will generate future economic benefits

? The availability of resources to complete the asset

? The ability to measure reliably the expenditure during development

iv During the period of development, the asset is tested for impairment annually.

v Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any
accumulated amortisation and accumulated impairment losses.

vi Amortisation of the asset begins when development is complete and the asset is available for use.

vii It is amortised over the period of expected future benefit.

viii Amortisation expense is recognised in the statement of profit and loss unless such expenditure forms part of
carrying value of another asset.

3.20 Ind AS 38 - Patents and licenses

i The Company makes upfront payments to purchase patents and licenses. The patents are granted for a certain
period by the relevant government agency with the option of renewal at the end of this period.

ii Licenses for the use of intellectual property are granted for certain periods depending on the specific licenses.
The licenses may be renewed at little or no cost to the Company. As a result, those licenses are assessed as
having an indefinite useful life.

iii A summary of the policies applied to the Company''s intangible assets is, as follows:

3.21 Ind AS 108 - Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision-maker. Revenue and expenses are identified to segments on the basis of their relationship to the operating
activities of the segment. Inter segment revenue are accounted for based on the cost price. Revenue, expenses, assets
and liabilities which are not allocable to segments on a reasonable basis, are included under “Unallocated revenue/
expenses/ assets/ liabilities”.

3.22 Ind AS 113 - Fair Value Measurement

i Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The fair value measurement is based on the presumption
that the transaction to sell the asset or transfer the liability takes place either:

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most advantageous market for the asset or liability

ii The principal or the most advantageous market must be accessible by the Company.

iii The fair value of an asset or a liability is measured using the assumptions that market participants would use
when pricing the asset or liability, assuming that market participants act in their economic best interest.

iv A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate
economic benefits by using the asset in its highest and best use or by selling it to another market participant that
would use the asset in its highest and best use.

v The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data
are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of
unobservable inputs.

vi All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised
within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair
value measurement as a whole:

? Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

? Level 2—Valuation techniques for which the lowest level input that is significant to the fair value measurement
is directly or indirectly observable

? Level 3—Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

vii For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company
determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

viii For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the
basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as
explained above.

3.23 Ind AS 115 - Revenue from contracts with customer

i Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and
the revenue can be reliably measured, regardless of when the payment is being made.

ii Revenue towards satisfaction of performance obligation is measured at the amount of transaction price (net of
variable consideration) allocated to that performance obligation. The transaction price of goods sold and services
rendered is net of variable consideration on account of various discounts and schemes offered by the Company
as part of the contract.

iii Goods & Service Tax is not received by the Company on its own account. Rather, it is tax collected on value
added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.

iv The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor
in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.

v The specific recognition criteria described below must also be met before revenue is recognised.

a Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the
goods have passed to the buyer, usually on delivery of the goods.
b Export benefits are accounted on actual basis and not on recognition of export sales.

c Revenue in the form of interest on moneys advanced by the Company is recognized only if recovery of both

the interest and principal is certain or if required by the provisions of Section 186(7) of the Companies Act,
2013.

d Revenue in the form of dividend is recognised when the Company''s right to receive the payment is
established, which is generally when shareholders approve the dividend.
e Rental income arising from operating leases on investment properties is not accounted for on a straight-line
basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating
nature because the Company has determined that it does not meet criteria for recognition of lease rental
income on straight-line basis i.e.

? Another systematic basis is more representative of the time pattern in which use benefit derived from
the leased asset is diminished, even if the payments to the lessors are not on that basis, or

? The payments to the lessor are structured to increase in line with expected general inflation to
compensate for the lessor''s expected inflationary cost increases.

f Revenues from maintenance contracts are recognized pro-rata over the period of the contract as and when
services are rendered.

vi In the case of composite contracts, the fair consideration attributable to each component of the contract is
identified and recorded as revenue.

However, the Company has not entered into composite contracts during the year under review.

51 Revaluation of items of PPE:

The Company''s PPE have not been revalued. Hence the details specified in Para 6(L)(iii) of the General Instructions
for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

52 Revaluation of items of intangible assets:

The Company''s intangible assets have not been revalued. Hence the details specified in Para 6(L)(iv) of the General
Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

53 Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties either
severally or jointly with any other person:

The Company has not granted to promoters, directors, KMPs and the related parties either severally or jointly with any
other person, any loans or advances in the nature of loans. Hence the details specified in Para 6(L)(v) of the General
Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

54 Intangible assets under development:

The Company has no intangible assets under development

Hence the details specified in Para 6(L)(vii) of the General Instructions for preparation of balance sheet in Division II of
Schedule III to CA 2013 are not stated.

55 Benami Property held and proceedings initiated or pending against the company for holding any benami
property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder:

The Company does not hold any benami property. There are no proceedings initiated or pending against the company
for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made
thereunder

Hence the details specified in Para 6(L)(viii) of the General Instructions for preparation of balance sheet in Division II of
Schedule III to CA 2013 are not stated.

56 Borrowings from banks or financial institutions on the basis of security of current assets:

The quarterly returns or statements of current assets filed by the Company with banks or financial institutions from
whom the Company has borrowed on the basis of security of current assets are in agreement with the books of
accounts.

57 Wilful defaulter:

The company has not been declared a wilful defaulter by any bank or financial Institution or other lender.

Hence the details specified in Para 6(L)(x) of the General Instructions for preparation of balance sheet in Division II of
Schedule III to CA 2013 are not stated.

58 Relationship with Struck off Companies:

The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

Hence the details specified in Para 6(L)(xi) of the General Instructions for preparation of balance sheet in Division II of
Schedule III to CA 2013 are not stated.

59 Registration of charges or satisfaction with Registrar of Companies:

There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period.

Hence the details specified in Para 6(L)(xii) of the General Instructions for preparation of balance sheet in Division II of
Schedule III to CA 2013 are not stated.

60 Compliance with number of layers of companies

The Company has no subsidiaries.

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with
Companies (Restriction on number of Layers) Rules, 2017.

Hence the details specified in Para 6(L)(xiii) of the General Instructions for preparation of balance sheet in Division II of
Schedule III to CA 2013 are not stated.

62 Compliance with approved Scheme(s) of Arrangements

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.

Hence the details specified in Para 6(L)(xv) of the General Instructions for preparation of balance sheet in Division II of
Schedule III to CA 2013 are not stated.

63 Utilisation of Borrowed funds and share premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other
sources or kind of funds) to, nor received such funds from, any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf
of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

Hence the details specified in Para 6(L)(xvi) of the General Instructions for preparation of balance sheet in Division II of
Schedule III to CA 2013 are not stated.

64 Undisclosed income

The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income
Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Hence, the details of any transaction not recorded in the books of account, specified in Para 7(l) of the General
Instructions for preparation of statement of profit and loss in Division II of Schedule III to CA 2013, are not stated.

65 Corporate Social Responsibility (CSR)

The provisions of S.135 of the CA, 2013, are applicable to the Company since during the immediately preceding year
the net profit of the Company is more than Rs.5 crores, although

(i) The net worth of the Company is less than Rs.500 crores

(ii) The turnover of the Company is less than Rs.1,000 crores

66 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Hence, the details of Crypto Currency or Virtual Currency, specified in Para 7(n) of the General Instructions for
preparation of statement of profit and loss in Division II of Schedule III to CA 2013, are not stated.

As per our audit report of even date.

For Gokhale, Tanksale & Ghatpande, For & on behalf of the Board of Directors

Firm Registration No: 103277W

N. H. Shah N. S. Rajore A. K. Jindal

Partner Whole-time Director Chairman

Membership No. 116534 DIN: 01802633 DIN: 00121523

Viralkumar Shah Mahendra Samdole

Chief Financial Officer Company Secretary

Membership No. A58630

Place: Pune Place: Pune

Date: 17th May 2025 Date: 17th May 2025

UDIN: 25116534BMTEWG3145

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Mar 31, 2024

3.17 Ind AS 37 - Provisions, Contingent Liabilities and Contingent Asset

i The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS.

ii In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance sheet. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

iii Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognised when,

a the Company has a present obligation (legal or constructive) as a result of a past event

b it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and

c a reliable estimate can be made of the amount of the obligation.

iv When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.

v The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

vi If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost.

vii Provisions for warranty-related costs are recognised when the product is sold or service provided to the customer. Initial recognition is based on historical experience. The initial estimate of warranty-related costs is revised annually.

viii Restructuring provisions are recognised only when the Company has a constructive obligation, which is when a detailed formal plan identifies the business or part of the business concerned, the location and number of employees affected, a detailed estimate of the associated costs, and an appropriate timeline, and the employees affected have been notified of the plan''s main features.

ix The Company records a provision, if any, for decommissioning costs of a manufacturing facility / construction site. Decommissioning costs are provided at the present value of expected costs to settle the obligation using estimated cash flows and are recognised as part of the cost of the particular asset. The cash flows are discounted at a current pre-tax rate that reflects the risks specific to the decommissioning liability. The unwinding of the discount is expensed as incurred and recognised in the statement of profit and loss as a finance cost. The estimated future costs of decommissioning are reviewed annually and adjusted as appropriate. Changes in the estimated future costs or in the discount rate applied are added to or deducted from the cost of the asset.

x A contingent liability recognised in a business combination is initially measured at its fair value. Subsequently, it is measured at the higher of the amount that would be recognised in accordance with the requirements for

provisions above or the amount initially recognised less, when appropriate, cumulative amortisation recognised in accordance with the requirements for revenue recognition

xi Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

xii Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

3.18 Ind AS 38 - Intangible Asset

i As required by Ind AS 38.72, the Company has chosen the cost model as per Ind AS 38.74 for measurement of intangible assets. The Company has measured the cost of acquisition or construction of intangible assets in accordance with Ind AS 38.24-38.71.

ii Intangible assets acquired separately are measured on initial recognition at cost. The cost of intangible assets acquired in a business combination is their fair value at the date of acquisition.

iii Internally generated intangibles, excluding capitalised development costs, are not capitalised and the related expenditure is reflected in profit or loss in the period in which the expenditure is incurred.

iv Following initial recognition, intangible assets are carried at cost less any accumulated amortisation and accumulated impairment losses.

v The useful lives of intangible assets are assessed as either finite or indefinite. The Company currently does not have any intangible assets with indefinite useful life.

vi Intangible assets with finite lives are amortised over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired.

vii The amortisation period and the amortisation method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.

viii The amortisation expense on intangible assets with finite lives is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

ix Intangible assets with indefinite useful lives are not amortised, but are tested for impairment annually, either individually or at the cash-generating unit level. The assessment of indefinite life is reviewed annually to determine whether the indefinite life continues to be supportable. If not, the change in useful life from indefinite to finite is made on a prospective basis.

x Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit or loss when the asset is derecognised.

3.19 Ind AS 38 - Research and development costs

i Research costs are expensed as incurred.

ii Revenue expenditure towards development is charged to the statement of profit and loss in the year it is incurred.

iii Development expenditures on an individual project are recognised as an intangible asset when the Company can demonstrate:

? The technical feasibility of completing the intangible asset so that the asset will be available for use or sale

? Its intention to complete and its ability and intention to use or sell the asset

? How the asset will generate future economic benefits

? The availability of resources to complete the asset

? The ability to measure reliably the expenditure during development

iv During the period of development, the asset is tested for impairment annually.

v Following initial recognition of the development expenditure as an asset, the asset is carried at cost less any accumulated amortisation and accumulated impairment losses.

vi Amortisation of the asset begins when development is complete and the asset is available for use.

vii It is amortised over the period of expected future benefit.

viii Amortisation expense is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

i The Company makes upfront payments to purchase patents and licenses. The patents are granted for a certain period by the relevant government agency with the option of renewal at the end of this period.

ii Licenses for the use of intellectual property are granted for certain periods depending on the specific licenses. The licenses may be renewed at little or no cost to the Company. As a result, those licenses are assessed as having an indefinite useful life

3.21 Ind AS 108 - Operating Segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Inter segment revenue are accounted for based on the cost price. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under “Unallocated revenue/ expenses/ assets/ liabilities”.

3.22 Ind AS 113 - Fair Value Measurement

i Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

? In the principal market for the asset or liability, or

? In the absence of a principal market, in the most advantageous market for the asset or liability

ii The principal or the most advantageous market must be accessible by the Company.

iii The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

iv A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

v The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

vi All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

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

? Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

? Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

vii For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

viii For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

3.23 Ind AS 115 - Revenue from contracts with customer

i Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made.

ii Revenue towards satisfaction of performance obligation is measured at the amount of transaction price (net of variable consideration) allocated to that performance obligation. The transaction price of goods sold and services rendered is net of variable consideration on account of various discounts and schemes offered by the Company as part of the contract.

iii Goods & Service Tax is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue.

iv The Company has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing latitude and is also exposed to inventory and credit risks.

v The specific recognition criteria described below must also be met before revenue is recognised.

a Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer, usually on delivery of the goods.

b Export benefits are accounted on actual basis and not on recognition of export sales.

c Revenue in the form of interest on moneys advanced by the Company is recognized only if recovery of both the interest and principal is certain or if required by the provisions of Section 186(7) of the Companies Act, 2013.

d Revenue in the form of dividend is recognised when the Company''s right to receive the payment is established, which is generally when shareholders approve the dividend.

e Rental income arising from operating leases on investment properties is not accounted for on a straight-line basis over the lease terms and is included in revenue in the statement of profit or loss due to its operating nature because the Company has determined that it does not meet criteria for recognition of lease rental income on straight-line basis i.e.

? Another systematic basis is more representative of the time pattern in which use benefit derived from the leased asset is diminished, even if the payments to the lessors are not on that basis, or

? The payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

f Revenues from maintenance contracts are recognized pro-rata over the period of the contract as and when services are rendered.

vi In the case of composite contracts, the fair consideration attributable to each component of the contract is identified and recorded as revenue. However, the Company has not entered into composite contracts during the year under review.

41 Additional information related to delayed payment by the Company to Micro / Small Enterprises as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act, 2006):

The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26th August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Enterpreneur''s Memorandum Number as allocated after filing of the memorandum. Accordingly the disclosures in respect of the amounts payable to such enterprises as at the balance sheet date has been made in the financial statements based on information received and available with the company. Further in the opinion of the management, the impact of interest, if any that may be payable in accordance with the provisions of the Act is not expected to be material. The company has not received any claim for interest from any supplier under the said Act.

46 Title deeds of Immovable Property not held in name of the Company:

The title deeds of all immovable properties are held in the name of the Company. Hence the details specified in Para 6(L)(i) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

47 Investment Property:

The Company has no investment property. Hence the details specified in Para 6(L)(ii) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated

48 Revaluation of items of PPE:

The Company''s PPE have not been revalued. Hence the details specified in Para 6(L)(iii) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

49 Revaluation of items of intangible assets:

The Company''s intangible assets have not been revalued. Hence the details specified in Para 6(L)(iv) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

50 Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the related parties either severally or jointly with any other person:

The Company has not granted to promoters, directors, KMPs and the related parties either severally or jointly with any other person, any loans or advances in the nature of loans. Hence the details specified in Para 6(L)(v) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

51 Intangible assets under development:

The Company has no intangible assets under development

Hence the details specified in Para 6(L)(vii) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

52 Benami Property held and proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder:

The Company does not hold any benami property. There are no proceedings initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder

53 Borrowings from banks or financial institutions on the basis of security of current assets:

The quarterly returns or statements of current assets filed by the Company with banks or financial institutions from whom the Company has borrowed on the basis of security of current assets are in agreement with the books of accounts.

54 Wilful defaulter:

The company has not been declared a wilful defaulter by any bank or financial Institution or other lender .

Hence the details specified in Para 6(L)(x) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

55 Relationship with Struck off Companies:

The company has no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

Hence the details specified in Para 6(L)(xi) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

56 Registration of charges or satisfaction with Registrar of Companies:

There are no charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period. Hence the details specified in Para 6(L)(xii) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

57 Compliance with number of layers of companies The Company has no subsidiaries.

The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

Hence the details specified in Para 6(L)(xiii) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

59 Compliance with approved Scheme(s) of Arrangements

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

Hence the details specified in Para 6(L)(xv) of the General Instructions for preparation of balance sheet in Division II of Schedule III to CA 2013 are not stated.

60 Utilisation of Borrowed funds and share premium

The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to, nor received such funds from, any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

61 Undisclosed income

The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Hence, the details of any transaction not recorded in the books of account, specified in Para 7(l) of the General Instructions for preparation of statement of profit and loss in Division II of Schedule III to CA 2013, are not stated.

62 Corporate Social Responsibility (CSR)

The provisions of S.135 of the CA, 2013, are applicable to the Company since during the immediately preceding year the net profit of the Company is more than Rs.5 crores, although

(i) the net worth of the Company is less than Rs.500 crores

(ii) the turnover of the Company is less than Rs.1,000 crores

The details of CSR expenses, specified in Para 5(x) of the General Instructions for preparation of statement of profit and loss in Schedule III to CA 2013, are as follows:

63 Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Hence, the details of Crypto Currency or Virtual Currency, specified in Para 7(n) of the General Instructions for preparation of statement of profit and loss in Division II of Schedule III to CA 2013, are not stated.

The accompanying notes are an integral part of these financial statements.

As per our audit report of even date

For Gokhale, Tanksale & Ghatpande, For & on behalf of the Board of Directors

Firm Registration No: 103277W

Chartered Accountants N. S. Rajore A. K. Jindal

Whole-time Director Chairman

DIN: 01802633 DIN: 00121523

N. H. Shah

Partner Viralkumar Shah Shilpa Soni

Membership No. 116534 Chief Financial Officer Company Secretary

UDIN: 24116534BKEYPO8386 Membership No. A59308

Place : Pune Place : Pune

Date : May 17, 2024 Date : May 17, 2024

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Mar 31, 2018

1 Corporate information

Rajkumar Forge Ltd. is a public company domiciled in India and is incorporated under the provisions of the Companies Act, 1956. Its shares are listed on one recognised stock exchange in India i.e BSE.

The Company is engaged in the business of manufacturing and selling open die forgings in both domestic and international markets.

The financial statements were authorised for issue in accordance with a resolution of the directors on May 26, 2018. All press releases, financial reports and other information are available at our investor relations section on the Company''s website: www.rkforging.com

2 Basis of preparation and compliance with Ind AS

i These Ind AS financial statements have been presented in accordance with the provisions of Division II of Schedule III to the Companies Act, 2013.

ii These Ind AS financial statements are prepared under the historical cost convention, unless required / permitted otherwise by applicable Ind AS.

iii As required by Section 128(1) of the Companies Act, 2013 (“the Act”) these financial statements are prepared in accordance with the accrual method of accounting with revenues recognized and expenses accounted on their accrual including provisions / adjustments for committed obligations and amounts determined as payable or receivable during the period.

iv Date of adoption of Ind AS: The equity shares of Rajkumar Forge Ltd. are listed on recognized stock exchanges in India and the net worth of the Company as per the audited balance sheet as at March 31, 2014 & as at March 31, 2015 was less than '' 500 crores. Hence as per Rule 4(1)(iii)(a) of the Companies (Indian Accounting Standards) Rules, 2015, the Company shall comply with the Indian Accounting Standards (Ind AS) for the accounting periods beginning on April 1, 2017, with the comparatives for the periods ending on March 31, 2018. Hence, the date of adoption of IND AS for the Company is April 1, 2017.

v Date of transition to Ind AS: Since the date of adoption of Ind AS is April 1, 2017, the date of transition to Ind AS is April 1, 2016. Hence, the notes to the First Ind AS compliant Financial Statements must include -

a Reconciliation of the IGAAP compliant Balance Sheet as at March 31, 2016 with the Ind AS compliant Balance Sheet as at April 1, 2016;

b Reconciliation of the IGAAP compliant Balance Sheet as at March 31, 2017 with the Ind AS compliant Balance Sheet as at March 31, 2017;

c Reconciliation of the IGAAP compliant P/L Statement for FY 2016-17 with the Ind AS compliant P/L Statement for FY 2016-17.

vi For the financial years ended March 31, 2018. and March 31, 2017, the Company prepared its financial statements in accordance with the accounting standards notified u/s 133 of the Act, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP). These IGAAP financial statements were approved by the Board of Directors of the Company on May 13, 2016 and May 29, 2017 respectively. The Ind AS financial statements of the Company for the year ended March 31, 2018. are the first financial statements the Company has to prepare in accordance with Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015.

vii Accordingly, the Company has prepared financial statements which comply in all material respects with the relevant provisions of the Act and with the Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017. In preparing these financial statements, the Company''s opening balance sheet has been prepared as at April 1, 2016 which is the Company''s date of transition to Ind AS.

viii The Company has followed the provisions of Ind AS 101-“First Time adoption of Indian Accounting Standards” (Ind AS 101), in preparing its opening Ind AS Balance Sheet as of the date of transition, i.e. April 1, 2016. In accordance with Ind AS 101, the Company has presented reconciliations of Shareholders'' equity under Previous GAAP and Ind ASs as at March 31, 2017 and April 1, 2016 and of the Profit/ (Loss) after Tax as per Previous GAAP and Total Comprehensive Income under Ind AS for the year ended March 31, 2017.

ix The preparation of financial statements in conformity with Indian AS requires the management to make judgements, estimates and assumptions, that affect the application of accounting policies and the reported amounts of assets and liabilities and disclosures of contingent liabilities at the date of the end of the reporting periods and the reported amounts of revenues and expenses for the reporting periods. Although these estimates are based on the management''s best knowledge of current events and actions, uncertainty about these assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets or liabilities in future periods. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised.

x Ind AS Financial Statements for FY 2017-18: Ind AS 101 requires that an entity''s first Ind AS financial statements shall include at least three balance sheets, two statements of profit and loss, two statements of cash flows and two statements of changes in equity and related notes, including comparative information for all statements presented. Accordingly, the first Ind AS financial statements of the Company will be as follows:

a Balance sheet as at March 31, 2018;

b Balance sheet as at March 31, 2017;

c Balance sheet as at April 1, 2016;

d Profit and Loss Statement for the year ended March 31, 2018;

e Profit and Loss Statement for the year ended March 31, 2017;

f Cash Flow Statement for the year ended March 31, 2018;

g Cash Flow Statement for the year ended March 31, 2017;

h Statement of changes in equity for the year ended March 31, 2018;

i . Statement of changes in equity for the year ended March 31, 2017;

j Statement of changes in equity as at April 1, 2016;

k Notes to Financial Statements.

Notes

3.1 The Company has not, during all the years, acquired any intangible assets under a financial lease.

3.2 The Company has not, during all the years, acquired any intangible assets through business combinations.

3.3 The Company has not, during all the years, impaired any intangible assets nor reversed any past impairment.

3.4 There are no additions to intangible assets, during all years, on account of exchange differences.

3.5 There are no additions to intangible assets, during all years, on account of revaluation.

3.6 There are no disposals of intangible assets, during all years, on account of discontinued operations.

3.7 None of the intangible assets have indefinite life.

4.1 Loans are non-derivative financial assets which generate a fixed or variable interest income for the Company. The carrying value may be affected by changes in the credit risk of the counterparties.

5.1 Loans and receivables are non-derivative financial assets which generate a fixed or variable interest income for the Company. The carrying value may be affected by changes in the credit risk of the counterparties.

5.2 Trade receivables are non-interest-bearing.

Total cash and cash equivalents

Notes

6.1 Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the Company, and earn interest at the respective short-term deposit rates.

6.2 The Company has pledged a part of its short-term deposits to fulfil collateral requirements.

7.1 Loans are non-derivative financial assets which generate a fixed or variable interest income for the Company. The carrying value may be affected by changes in the credit risk of the counterparties.

8.1 Terms/ rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. 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 amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Company does not have any shares reserved for issue under options.

During the year under review, the Company has transferred 534,300 equity shares to the Investor Education & Protection Fund.

9.1 The Company has not made any cash / non-cash distribution to its shares holders during all the years.

9.2 Short term borrowings for working capital requirments availed by the company in the nature of cash credit facility, post shipment demand loan and buyers credit are secured by way of hypothecation of the company''s stocks and book debts, both present and future and also secured by charge on company''s immovable properties, both present and future, and personal guarantee by the promoters of the company Mr. A.K. Jindal and of Mr. K.B. Jindal and corporate guarantee of the holding company Western India Forgings Private Limited. The cash credit is repayable on demand and carries interest rate ranging from 9.50% to 10%.

10. Disclosure for assets taken on lease as per Ind AS 17:

The Company had entered into a commercial lease agreement for taking office space on lease. The lease agreement was for a period of 33 months with renewal option and escalation clauses. There were no restrictions placed upon the Company by entering into this lease. The Company had not given any sub-lease during the year. The lease arrangement did not include a non-cancellable period. Accordingly the lease was terminated during the year FY 2016-17.

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Mar 31, 2016

1. Short term borrowings

Short term borrowings for working capital requirements availed by the Company in the nature of cash credit facility, post shipment demand loan and buyer’s credit are secured by way of hypothecation of the Company’s stocks and book debts, both present and future and also secured by charge on Company’s immovable properties, both present and future, and personal guarantee by the Managing Director of the Company Mr. R. S. Kothavale.

The cash credit is repayable on demand & carries interest rate ranging from 12.9% to 13.25%

PSDL is repayable on due date and carries interest @ 11.15%

2. Capital Commitment:

Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) Rs. 28,500/- (March 31, 2015: Rs. 2,261,501/-).

3. Based on the available information with the Company, no vendor is identified as MSME, as defined under “The Micro, Small and Medium Enterprises Development Act, 2006”.

4. Disclosure pursuant to Accounting Standard - 15 ‘Employee Benefits''

5. General description

i). Contribution to Provident Fund /Superannuation Fund (Defined Contribution)

The Company’s Provident Fund scheme (including pension fund scheme for eligible employees) and superannuation fund scheme are defined contribution plans. The expenses debited to the Statement of Profit and loss in respect of Provident fund and Superannuation fund is Rs. 868,395 (March 31, 2015: Rs 914,230) and Rs. 286,699 (March 31, 2015: Rs 357,795) respectively.

ii). Gratuity (Defined benefit)

The Company operates a gratuity scheme plan for its employees. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The Company has recognized Rs. 248,737 (March 31, 2015: Rs. 1,054,638) as expenses towards gratuity scheme during the year

6. The following tables set out disclosures prescribed by AS 15 in respect of Company’s unfunded gratuity plan.

i) Changes in the present value of obligation representing reconciliation of opening and closing balances thereof:

7. Operating Lease

The company has entered into a commercial lease agreement for taking office space on lease. The lease agreement is for a period of thirty three months with renewal option and escalation clauses. There are no restrictions placed upon the Company by entering into this lease. The Company has not given any sub lease during the year. The lease arrangement does not include a non cancellable period. Lease rental debited to the Statement of Profit and Loss for the period is Rs. 1,483,994 (March 31, 2015: Rs. 1,799,292).

8. Segment Reporting Disclosure

i) Primary (Business) Segment

In accordance with the requirements of the Accounting Standard 17 “Segment Reporting”, the Company’s business consists of one reportable business segment i.e., “ Open Die Forgings” hence no separate disclosures pertaining to attributable Revenue, Profits, Assets, Liability, Capital Employed are given.

ii) Secondary (Geographical) Segment:

Secondary segment reporting is performed on the basis of geographical location of the customers. The operation of the Company comprises local sales and export sales. The management views the Indian market and export market as distinct geographical segments. The geographical segments considered for disclosure are as follows:

9. In the previous year, the Company had sold an un-used portion of land which was not required for future expansion, for a consideration of Rs 8,000,000, resulting into a profit of Rs 7,848,382 which has been disclosed as “Exceptional Item”.

10. Previous year’s figures are regrouped wherever necessary to make them comparable.

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Mar 31, 2015

(i) The Cash Flow Statement reflects the combined cash flows pertaining to continuing and discounting operations.

(ii) These earmarked account balances with banks can be utilised only for the specific identified purposes.

31.03.20151 31.03.2014

A) Banks:

1) Counter Guarantee issued by Bank 15,00,000 15,00,000

2) Letter of Credit issued by Bank on behalf of the Company 1,21,26,305 1,72,50,000

3) Foreign Letter of Credit (Euro) 57,800.60)( P.Y. NIL) 39,42,579 Nil 2. Capital Commitment :

Estimated amount of contracts remaining to be executed on capital account, not provided for (net of advances) Rs 22,61,501/- (Previous Year Rs 84,39,669/-).

3. During the year the, Company has sold land of 3645 SQ.Mtrs for Rs 80,00,000/-.This was as un-used portion of land which was not required for further expansion of the capacity. This has resulted into Long Team Capital Gain of Rs 78,48,382/-.The Company has made this provision for Income tax payable on this gain also paid Advance Income Tax accordingly. In the Financial statement, this amount is shown as Exceptional Income.

4. Based on the available information with the Company, no vendor is identified as MSME, as defined under "The Micro, Small and Medium Enterprises Development Act, 2006 and accordingly no disclosure has been considered necessary.

5. The year end foreign currency (FC) exposures that has been hedged by a derivative instrument or otherwise :Nil

6. The year end foreign currency (FC) exposures that are un hedged by a derivative instrument or otherwise are as follows:

7. Disclosure pursuant to Accounting Standard - 15 'Employee Benefits'

a. General Description

i) . Contribution to Provident Fund (Defined Contribution)

The Company's provident fund scheme (including pension fund scheme for eligible employees) is a defined contribution plan. The expenses charged to the Statement of Profit and Loss under the head Contribution to Provident Fund is Rs 9,14,230/- (PY Rs 8,17,447/-)

ii) . Gratuity

The Company has a gratuity plan. Every employee who has completed five years or more of service gets a gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed year of service. The Company during the year provided Rs 10,54,638/- (PY: Rs 5,89,189/-) towards gratuity.

b. The following tables set out disclosures prescribed by AS 15.

i) Changes in the present value of obligation representing reconciliation of opening and closing balances thereof: (Rs.)

The estimates of future salary increase, considered in actuarial valuation, taken on account of inflation, seniority, promotion & other relevant factors such as supply and demand in the employment market.

8. Related Party Disclosures:

Names of Related Parties and description of relationship

Key Management Personnel Others

Mr. R. S. Kothavale

Mrs. R. R. Kothavale

Mr. S. R. Kothavale

Mr. R. S Kothavale (HUF)

Ms. Sonal R Kothavale

Orient Precision Engineering Pvt Ltd

Note: Related party relationships are as identified by the Company and relied upon by the Auditors.

9. Segment information for the year ended March 31,2015 as required by AS-17 "Segment Reporting"

As the Company's business activity falls within a single primary business segment viz "Forgings" the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

10. Previous year's figures are regrouped wherever necessary to make them comparable.

Additional Statements forming the part of Financial Statements

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Mar 31, 2013

1. Borrowing costs that are attributable to the acquisition of tangible fixed assets are capitalized till the date of substantial completion of the activities necessary to prepare the relevant asset for its intended use.

2. Borrowing costs that are attributable to the acquisition or development of intangible assets are capitalized till the date they are put to use.

3. Contingent liabilities not provided for in respect of :

31.03.2013 31.03.2012 Rupees Rupees

A) Banks

1). Counter Guarantee issued by Bank 95,25,035 95,25,035

2). Letter of Credit issued by Bank on behalf of the Company 13,00,000 1,49,50,000

3) Foreign Letter of Credit (Euro) 29000)( P.Y. Euro 1,11,451) 21,23,380 76,71,172l

4) Foreign Bank Guarantee Issued( P.Y.US $ 3,80,000) NIL 1,95,01,600

B) Guarantees Given by the Company on behalf of other Companies NIL 2,35,00,000

Maximum Outstanding during the year Rs. Nil (previous Year 80,50,000/- C) Estimated value of Contracts remaining to be executed on Capital 77,46,081 1,81,96,750 Accounts and not provided for (net of advances)

4) A) In the opinion of the management current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business.

B) Sales Tax Refund, Sales Tax Payable, Cenvat Credit and Service Tax Credit figures are taken as per the companies returns filed and are subject to Government Assessment

C) Repayment of Sales Tax Deferral Loan due on 31st March 2013 was Rs. NIL (Previous year Rs. 17.14 lacs).

D) Provision for Sales Ta x liability is made based on pending Sales Tax cases & pending liabilities which are taken as per Book balance . Excess/ Shortage is adjusted against Other Expenses.

5) During the year The Company has sold land of 8002.226 SQ Mtrs for Rs. 1,30,00,000/- This was an un-used portion of land which was not required for further expansion of the capacity .This has resulted into Long Term Capital Gain of Rs. 1,28,31,960/-The Company has made this provision for Income Ta x payable on this gain and also paid Advance Income Tax accordingly. In the Financial Statement this amount is shown as Exceptional Income.

6) The Information with regards to vendors under "The Micro, Small and Medium Enterprises Development Act, 2006 "is not available and hence no disclosures have been made in this regard.

7) Details of Forward Contracts Outstanding as on 31st March 2013.

The Company has entered in to forward contracts to cover the expected receivables against Foreign Exchange Rate Fluctuations. The Forward Contracts outstanding as on 31st March 2013 were as under.

8) Segment information for the year ended 31.03.2012 as required by AS-17 "Segment Reporting”

As the Company''s business activity falls within a single primary business segment viz "Forgings” the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting” issued by the Institute of Chartered Accountants of India is not applicable.

9) Information required as per Schedule – VI to the Companies Act, 1956 has been given only to the extent applicable.

10) Previous year''s figures are regrouped wherever necessary to make them comparable.

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Mar 31, 2012

1. Contingent liabilities not provided for in respect of :

31.03.2012 31.03.2011 Rupees Rupees

A) Banks:

1) Counter Guarantee issued by Bank 95,25,035 95,25,035

2) Letter of Credit issued by Bank on behalf of the Company 1,49,50,000 4,01,278

3) Foreign Letter of Credit (Euro) 1,11,451) 76,71,172 Nil

4) Foreign Bank Guarantee Issued (USD 3,80,000) 1,95,01,600 Nil

B) Guarantees Given by the Company on behalf of other Companies 2,35,00,000 2,35,00,000 Maximum Outstanding during the year Rs. 49,07,987 (previous Year 1,22,50,000 )

C) Estimated value of Contracts remaining to be executed on Capital 1,81,96,750 1,85,37,848 Accounts and not provided for (net of advances)

2) A) In the opinion of the management current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business.

B) Sales Tax Refund, Sales Tax Payable, Cenvat Credit and Service Tax Credit figures are taken as per the companies returns fled and are subject to Government Assessment.

C) Repayment of Sales Tax Deferral Loan due up to 31st March 2012 was Rs. 17.14 lacs (Previous year Rs. 50.12 lacs).

D) Provision for Sales Tax liability is made based on pending Sales Tax cases & pending liabilities which are taken as per Certificate issued by the company's sales tax consultant. Excess/Short provision is considered as an exceptional item.

E) Cenvat Credit with regards to Customs Duty paid of Rs 48.05 Lacs on 14th Feb'2012 has not been accounted for as the exact breakup of Counter Veiling Duty (CVD) component was not available with the company.

3) The Company has sold Land of 8002.226 Sq Mtrs on 24.04.2012 for Rs 1,30,00,000. This was an un-used portion of land which was not required for the operations of the company.

4) The Information with regards to vendors under "The Micro, Small and Medium Enterprises Development Act, 2006 "is pending and hence no disclosures have been made in this regard.

(*) As certified by the management and being technical matter accepted by auditors.

i) The Licensed & Installed Capacity is expressed in 'as forge', condition. Actual production & sales quantity is 'as sold' condition. The

Machining capacity is not set-up by the Company.

ii) Quantity of Outside Job Works produced and sold for the current year is 98.615 tons: Rs. 28.21 Lakhs (Previous year 208.474 tons: Rs. 51.21 lakhs) is not included in the above figures.

Note: Related party relationships are as identified by the Company and relied upon by the Auditors.

5) Details of Forward Contracts Outstanding as on 31st March 2012.

The Company has entered in to forward contracts to cover the expected receivables against Foreign Exchange Rate Fluctuations. The Forward Contracts outstanding as on 31st March 2012 were as under.

6) Liability for employee benefit has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Accounting Standard - 15 (revised) the details of which are as hereunder

7) Segment information for the year ended 31.03.2012 as required by AS-17 "Segment Reporting"

As the Company's business activity falls within a single primary business segment viz "Forgings" the disclosure requirements of Accounting Standard (AS- 17) "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

8) Information required as per Schedule – VI to the Companies Act, 1956 has been given only to the extent applicable.

9) Previous year's figures are regrouped wherever necessary to make them comparable.

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Mar 31, 2010

31.03.2010 31.03.2009

1. Contingent liabilities not provided for in respect of: Rupees Rupees

A) Banks:

1) Counter Guarantee issued by Bank 92,69.119 1.88,892

2) Letter of Credit issued by Bank on behalf of the Company 2,63,94,904 1,63,55,580

B) Guarantees Given by the C ompany on behalf of other Companies 2,35,00,000 2,35,00,000

Maximum Outstanding during the year Rs.164,50,000 (previous Year 2,06,50,000)

C) Claims against the company not acknowledged as debt NIL NIL

D) Estimated value of Contracts remaining to be executed on Capital 1,86,09,000 196,02,652

Accounts and not provided for (net of advances)

E) Income Tax Case for AY. 2002-2003 pending before 54,07,000 54,07,000 ITAT (Pune bench)

2) In order to follow prudent disclosure and reporting norms the Company has made provision for entire disputed liability of pending demands towards excise duty and sales tax amounting to Rs. 2,96,23,444 during the F.Y. 2005-06.

3) Working Capital Facilities from Bank of Baroda Ltd are:

Secured by way of hypothecation of the Companys Stocks and Book Debts, both present and future and also secured by charge on Companys immovable properties, both present and future, Personal Guarantees by the Directors of the Company Mr. R. S. Kothavale, Mr. S. R. Kothavale and Mr. P. B. Kore.

4) A) In the opinion of the management current assets, loans and advances are approximately of the value stated, if realized, in the ordinary course of business.

B) Balances of Sundry Debtors and Sundry Creditors are taken as per ledger and are subject to confirmations / reconciliations.

C) Sales Tax Refund, Sales Tax Payable, Cenvat Credit and Service Tax Credit figures are taken as per the companies returns filed and are subject to Government Assessment.

D) Repayment of Sales Tax Deferral Loan due up to 31st March 2010 was Rs. 82.91 lacs (Previous year Rs. 35.82 lacs).

5) The Information with regards to vendors under "The Micro, Small and Medium Enterprises Development Act, 2006 " is pending and hence no disclosures have been made in this regard.

6) As per the Companys policy, Sale of Goods is being recognized at the point of dispatch to the Customer. The Sales for the current year includes Sales to a Customer amounting to Rs. 255.51 lacs, where dispatch has been made but actual title has not been transferred.

7) Segment information for the year ended 31.03.2010 as required by AS-17 "Segment Reporting"

As the Companys business activity falls within a single primary business segment viz "Forgings" the disclosure requirements of Accounting Standard (AS-17) "Segment Reporting" issued by the Institute of Chartered Accountants of India is not applicable.

8) Information required as per Schedule-VI to the Companies Act, 1956 has been given only to the extent applicable.