Notes to Accounts of Kritika Wires Ltd.

Mar 31, 2025

1.2.10 Provisions, contingent liabilities and contingent assets

(a) A provision is recognised if, as a result of a past event, Company has a present
legal or constructive obligation that can be estimated reliably, and it is probable

that an outflow of economic benefits will be required to settle the obligation.
Provisions are not recognised for future operating losses.

The amount recognised as a provision is the best estimate of the consideration
required to settle the present obligation as at the balance sheet date, taking into
account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are
expected to be recovered from a third party, the receivable is recognised as an
asset. The expense relating to the provision is presented in the statement of profit
and loss, net of any reimbursement.

(b) Contingent Liabilities are disclosed in respect of possible obligations that arise
from past events but their existence will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control
of Company or where any present obligation cannot be measured in terms of
future outflow of resources or where a reliable estimate of the obligation cannot
be made.

(c) A contingent asset is not recognised in the financial statements, however, it is
disclosed, where an inflow of economic benefits is probable.

(d) Provisions, contingent liabilities and contingent assets are reviewed at each
balance sheet date.

1.2.11 Foreign currency transactions and translations

Transactions in foreign currencies are initially recorded at the exchange rate
prevailing on the date the transaction first qualifies for recognition.

Monetary assets and liabilities related to foreign currency transactions remaining
outstanding on the balance sheet date are translated at the exchange rate prevailing
on the balance sheet date. Any income or expense arising on account of foreign
exchange difference either on settlement or on translation is recognised in the
statement of profit and loss.

Non-monetary items which are carried at historical cost denominated in a foreign
currency are translated using the exchange rate at the date of the initial transaction.

1.2.12 Employee benefits

(a) Short-term employee benefits

Short-term employee benefits in respect of salaries and wages, including non¬
monetary benefits, are recognised as an expense at the undiscounted amount in
the statement of profit and loss in the year in which the related service is
rendered.

(b) Defined contribution plans

The Company pays provident and other fund contributions to publicly
administered fund as per related Government regulations. The Company has no
further obligation, other than the contributions payable to the respective funds.
The Company recognizes contribution payable to such funds as an expense when
an employee renders the related service.

(c) Defined benefit plans

The Company operates a defined benefit gratuity plan.

The liability or asset recognised in the balance sheet in respect of gratuity is the
present value of the defined benefit obligation as at the balance sheet date less the
fair value of plan assets. The defined benefit obligation is calculated by external
actuaries using the projected unit credit method.

Re-measurement gains and losses arising from experience adjustments and
changes in actuarial assumptions are recognised directly in other comprehensive
income in the period in which they occur and are included in retained earnings in
the statement of changes in equity and in the balance sheet.

1.2.13 Government Grants

Government grants are recognised when there is reasonable assurance that the grant
would be received and the Company would comply with all the conditions attached
to them.

Government grants related to property, plant and equipment, including non¬
monetary grants, are presented in the balance sheet by deducting the grant in
arriving at the carrying amount of the asset.

Government grants of revenue in nature are recognised on a systematic basis in the
statement of profit and loss over the period necessary to match them with the related
costs and are adjusted with the related expenditure. If not related to a specific
expenditure, it is considered as income and included under "Other Operating
Revenue" or "Other Income".

The benefit of a government loan at a below-market rate of interest or loan with
interest subvention and effect of this favourable interest is treated as a government
grant. The loan or assistance is initially recognised at fair value and the government
grant is measured as the difference between proceeds received and the fair value of

the loan based on prevailing market interest rates and recognised on a systematic
basis in the statement of profit and loss. The loan is subsequently measured as per
the accounting policy applicable to financial liabilities.

1.2.14 Impairment of Non financial Assets

An impairment loss is recognised for the amount by which the carrying amount of
the asset exceeds its recoverable amount. The recoverable amount is the higher of an
asset''s fair value less costs to sell and value in use.

To assess impairment, assets are grouped at the lowest levels for which there are
separately identifiable cash flows (cash-generating units).

In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments
of the time value of money and the risks specific to the asset.

If at the balance sheet date, there is an indication that a previously assessed
impairment loss no longer exists, the recoverable amount is reassessed and the
impairment loss previously recognised is reversed so that the asset is recognised at
its recoverable amount but not exceeding the value which would have been reported
in this respect if the impairment loss had not been recognised.

1.2.15 Taxes

Income tax expense comprises current tax and deferred tax and is recognised in the
statement of profit and loss except to the extent it relates to items directly recognised
in Equity or other comprehensive income (OCI).

a) Current income tax

Current income tax assets and liabilities for the current and prior periods are
measured at the amount expected to be recovered from or paid to the taxation
authorities using the tax rates and tax laws that are enacted or substantively
enacted by the balance sheet date and applicable for the period.

b) Current tax items in correlation to the underlying transaction relating to OCI
and Equity are recognised in OCI and Equity respectively.

Management periodically evaluates positions taken in the tax returns to
situations in which applicable tax regulations are subject to interpretation and
full provisions are made where appropriate based on the amount expected to be
paid to the tax authorities.

The Company offsets current tax assets and current tax liabilities, where it has a
legally enforceable right to set off the recognised amounts and where it intends
either to settle on a net basis or to realize the assets and settle the liabilities
simultaneously.

c) Deferred income tax

Deferred income tax assets and liabilities are recognised for the deductible and
taxable temporary differences arising between the tax base of assets and liabilities
and their carrying amount in the standalone financial statements.

Deferred tax assets are recognised for deductible temporary differences, the carry
forward of unused tax credits and any unused tax losses to the extent that it is
probable that taxable profit will be available against which the deductible
temporary differences, unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date
and reduced to the extent that it is no longer probable that the same will be
reversed or sufficient taxable profit will be available to allow all or part of the
deferred tax assets to be utilised.

Deferred tax assets and liabilities are measured at the tax rates (and tax laws) that
have been enacted or substantively enacted at the balance sheet date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable
right exists to set off current tax assets against current tax liabilities and the
deferred taxes relate to the same taxable entity and the same taxation authority.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance
with the tax laws in India, which is likely to give future economic benefits in the
form of availability of set off against future income tax liability.

Accordingly, MAT is recognised as deferred tax asset in the balance sheet when
the asset can be measured reliably, and it is probable that the future economic
benefit associated with asset will be realised.

1.2.16 Earnings per Share

a) Basic earnings per share are computed by dividing the net profit/(loss) after tax
by the weighted average number of equity shares outstanding during the year.

b) Diluted earnings per share are computed by dividing the net profit/(loss) after
tax by the weighted average number of equity shares considered for deriving

basic earnings per share and also the weighted average number of equity shares
that could be issued on the conversion of all dilutive potential equity shares.
Dilutive potential equity shares are determined at the end of each period
presented.

The number of equity shares and potential dilutive equity shares are adjusted
retrospectively for all periods presented for any share split and bonus shares
issues including for changes effected before the approval of the standalone
financial statements by the Board of Directors.

1.2.17 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand, cheques on
hand, balance with banks, and short term liquid investments with an original
maturity of three months or less and which carry an insignificant risk of changes in
value.

For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of
Cash and cash equivalents, as defined above and net of outstanding book overdrafts
as they are considered an integral part of the Company''s cash management.

1.2.18 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss before tax is
adjusted for the effects of transactions of a noncash nature, any deferrals or accruals
of past or future operating cash receipts or payments and item of income or expenses
associated with investing or financing flows. The cash flows from operating,
investing and financing activities of the Company are segregated.

1.2.19 Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Ind AS requires
management to make judgements, estimates and assumptions that affect the
application of the accounting policies and the reported amounts of assets and
liabilities, the disclosure of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the year.
Actual results could differ from those estimates. The estimates and underlying
assumptions are reviewed on an on-going basis.

Revisions to accounting estimates are recognised in the period in which the estimate
is revised if the revision affects only that period; they are recognised in the period of
the revision and future periods if the revision affects both current and future periods.

a) Judgements in applying accounting policies

The judgements, apart from those involving estimations (see note below), that the
Company has made in the process of applying its accounting policies and that
have a significant effect on the amounts recognised in these financial statements
pertain to useful life of intangible assets.

b) Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key
sources of estimation uncertainty at the end of the reporting period that may
have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year.

(i) Useful lives of property, plant and equipment

As described in the significant accounting policies, the Company reviews
the estimated useful lives of property, plant and equipment and
intangible assets at the end of each reporting period.

(ii) Fair value measurements and valuation processes

Some of the Company''s assets are measured at fair value for financial
reporting purposes. Fair value measurements are categorised into Level 1,
2, or 3 based on the degree to which the inputs to the fair value
measurements are observable and the significance of the inputs to the fair
value measurement in its entirety.

Information about the valuation techniques and inputs used in
determining the fair value of various assets and liabilities are disclosed in
the notes to the financial statements.

(iii) Actuarial Valuation

The determination of Company''s liability towards defined benefit
obligation to employees is made through independent actuarial valuation
including determination of amounts to be recognised in the Statement of
Profit and Loss and in other comprehensive income. Such valuation
depends upon assumptions determined after taking into account
inflation, seniority, promotion and other relevant factors such as supply
and demand factors in the employment market. Information about such
valuation is provided in notes to the financial statements.

(iv) Provisions and Contingent Liabilities

Any litigation where amount of flow of funds is believed to be probable
and are liable estimate of the outcome of the dispute can be made based

on management''s assessment of specific circumstances of each dispute
and relevant external advice, management provides for its best estimate
of the liability. Such accruals are by nature complex and can take number
of years to resolve and can involve estimation uncertainty. Information
about such litigations is provided in notes to the financial statements.

(v) Impairment of Financial Assets

The Company assesses impairment based on expected credit losses (ECL)
model on trade receivables. The Company uses a provision matrix to
determine impairment loss allowance on the portfolio of trade
receivables. The provision matrix is based on its historically observed
default rates over the expected life of the trade receivable. At every
reporting date, the historically observed default rates are updated.

1.2.20 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued
from time to time. For the year ended 31st March, 2025, MCA has notified Ind AS -
117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to sale and
leaseback transactions, applicable to the Company w.e.f. 1st April, 2024. The
Company has reviewed the new pronouncements and based on its evaluation has
determined that it does not have any impact in its financial statements.

(d) Terms / Rights attached to Equity shares :

The Company has a single class of equity shares having a par value of Rs. 2/- each. The holders of these shares are
entitled to receive dividend as declared from time to time and entitled to one vote per share.

(e) 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 dues. The distribution will be in proportion to the number
of equity shares held by the shareholders.

(f) Shareholders holding more than 5 % of the equity shares in the Company:

e) Nature and purpose of Reserves:

(i) Capital Reserve comprise of reserve arising on Capital Gains and profit on revaluation of capital assets
in earlier years, in accordance with applicable accounting standard.

(ii) The amount received in excess of the par value of equity shares has been classified as securities
premium. The reserve may be utilized in accordance with the provisions of the Companies Act, 2013.

(iii) Retained earnings represent the amount of accumulated earnings of the Company.

(iv) Remeasurement of defined benefit plan through OCI represents the actuarial gain on employees''
benefit which has been, transferred to retained earnings.

Note: Figure in brackets pertain to previous year.

*Represents Current maturities of long term debts shown under ''Current borrowings'' (Note no.19).
$ Installment inclusive of interest.

e) There is no default in repayments of the principal amount of loans and interest thereon.

i) Working Capital loan and Channel Financing Account from Yes Bank Ltd. is secured by
hypothecation of stocks of raw materials, work-in-progress, finished goods, spares, book debts
and current assets of the Company and personal guarantee of directors.

ii) Working Capital loan and demand loan from Kotak Mahindra Bank Ltd. was secured by
hypothecation of First Pari Passu basis on all existing and future receivables, current assets,
moveable assets and moveable fixed assets.

iii) Working Capital loan and Demand loan from Axis Bank Ltd. is secured by way of hypothecation
of Stocks & Receivables and all other current assets both present and future of the company
including raw materials, work-in-progress, finished goods in the name of the company. Raw
Material Includes wires, Zinc and other related products at factory premises/godown elsewhere
and receivables (book debts) and all other current assets . Also, hypothecation of entire Plant and
Machinery of the borrower, both present and future on first pari passu basis.

In the ordinary course of business, the Company faces claims and assertions by various parties. The
Company assesses such claims and assertions and monitors the legal environment on an ongoing basis,
with the assistance of external legal counsel, wherever necessary. The Company records a liability for any
claims where a potential loss is probable and capable of being estimated and discloses such matters in its
financial statements, if material. For potential losses that are considered possible but not probable, the
Company provides disclosure in the financial statements but does not record a liability in its accounts
unless the loss becomes probable.

The following is a description of claims and assertions where a potential loss is possible, but not probable.
The Company believes that none of the contingencies described below would have a material adverse
effect on the Company''s financial condition, results of operations or cash flow.

The amounts shown in (a) above represent the best possible estimates arrived at on the basis of available
information.

The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes
which have been invoked by the Company or the claimants as the case may be and therefore cannot be
estimated accurately. The Company does not expect any reimbursement in respect of above contingent
liabilities.

(b) Capital Commitments:

35.3 Related party disclosures in accordance with Indian Accounting Standard - 24 are given below :

I. List of the Related Party where control exists and related parties with whom transaction have taken place and relationship:

(a) Key Managerial Personnel (KMP)

1) Sri Naresh Kumar Agarwal - Chairman cum Director

2) Sri Hanuman Prasad Agarwal -Managing Director

3) Sri Sanjeev Binani - Director

4) Sri Ankush Agarwal - Director

5) Sri Rajiv Adukia - Non Executive Director

6) Mrs. Pooja Bachhawat - Non Executive Director

7) Sri Mahesh Kumar Sharma - Company Secretary

8) Sri Anand Kumar Sharma - Chief Financial Officer

(b) Enterprises owned or significantly influenced by KMP and their Relatives
Gunnayak Commercial Pvt. Ltd.

Alltime Suppliers Pvt. Ltd.

Classic Electrodes (I) Ltd.

Jai Hanuman Industrial Corporation
Mohta Agencies Pvt. Ltd.

Panchshul Merchants Pvt. Ltd.

R A Comptech Investment & Consultant Pvt. Ltd.

Balaji Electrodes Pvt. Ltd.

Blue Bird Dealers Private Limited
HM Power and Cables Private Limited

Note: Related party transaction is as identified by the company and relied upon by the auditor.

(a) The transactions with related parties have been entered at an amount which are not
materially different from those on normal commercial terms.

(b) No amount has been written back/written off during the year in respect of due to/from
related parties.

(c) The amounts due from related parties are good and hence no provision for doubtful debts in
respect of dues from such related parties is required.

(d) The remuneration of directors is determined by the nomination and remuneration committee
of the Board of Directors considering the performance of individuals and market trends.

(e) Figures in the bracket relate to the previous year.

B. Fair value hierarchy

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

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.
Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

Fair value of cash and cash equivalents, trade receivables, and other current financial assets, and other current financial liabilities is
considered to be equal to the carrying amounts of these items due to their short-term nature.

Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using adjusted net asset
value method. Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a
wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

The fair value of investment in mutual funds has been determined based on quotes from mutual funds/ Asset management companies
during the year.

The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers
between Level 1 and Level 2.

35.5 Financial risk management objectives and policies

The Company''s activities expose it to market risk, liquidity risk and credit risk. The
Company''s Board of Directors has overall responsibility for the establishment and oversight
of the Company''s risk management framework. This note explains the sources of risk which
the entity is exposed to and how the entity manages the risk and the related impact in the
financial statements.

(a). Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial
instrument or customer contract, leading to a financial loss. Financial instruments that are
subject to concentrations of credit risk materially consists of trade receivables and deposits
with Banks.

The impairment for financial assets are based on assumptions about risk of default and
expected loss rates. The Company uses judgement in making these assumptions and selecting
the inputs to the impairment calculation, based on the Company''s past history, existing
market conditions as well as forward looking estimates at the end of each balance sheet date.

Financial assets are written off when there is no reasonable expectation of recovery, however,
the Company continues to attempt to recover the receivables. Where recoveries are made,
these are recognised in the Statement of Profit and Loss.

(i) Trade Receivables

All trade receivables are subject to credit risk exposure. Customer credit risk is managed
based on Company''s established policy, procedures and control relating to customer
credit risk management.

Trade receivables are non-interest bearing and are generally on credit terms of upto 90
days.

The Company has used expected credit loss (ECL) model for assessing the impairment
loss. For the purpose, the Company uses a provision matrix to compute the expected
credit loss amount. The provision matrix takes into account external and internal risk
factors and historical data of credit losses. Refer note no. 9 for movement in expected
credit loss and trade receivables aging.

An impairment analysis is performed at each balance sheet date on an individual basis for
major clients. In addition, a large number of minor receivables are grouped into
homogenous groups and assessed for impairment collectively. The maximum exposure to
credit risk at the balance sheet date is the carrying value of each class of financial assets
disclosed in note no. 9.

(ii) Balances with banks

Credit risk from balances with banks is managed in accordance with the Company''s
policy. Investments of surplus funds are made only with approved counter parties.

The Company''s maximum exposure to credit risk for the components of the balance sheet
as at 31st March, 2025 and 31st March, 2024 is the carrying amounts as stated under note
no. 10.

(b) Liquidity risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligation on
time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash
and marketable securities and the availability of funding through an adequate amount of committed
credit facilities to meet obligations when due. Due to the nature of the business, the Company
maintains flexibility in funding by maintaining availability under committed facilities. Management
monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the
basis of expected cash flows. The Company takes into account the liquidity of the market in which the
entity operates.

(d) Lien

The fair values of the fixed deposits under lien aggregated to Rs. 499.67 lakh (Rs. 575.78 lakh on
31st March, 2024) which was held as Margin Money against Bank Guarantees/Letter of credits.

35.6 Capital Management
(a) Risk management

For the purpose of the Company''s capital management, capital includes issued equity capital and
all other equity reserves attributable to the equity share-holders of the Company. The Company''s
objective when managing capital is to safeguard its ability to continue as a going concern so that it
can continue to provide returns to shareholders and other stake holders.

35.7 Employee benefits in accordance with Indian Accounting Standard - 19 " Employee Benefits:

a) Defined Contribution Plan :

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are
considered as defined contribution plan.

The contributions to the respective fund are made in accordance with the relevant statute and are
recognised as expense when employees have rendered service entitling them to the contribution.
The contributions to defined contribution plan, recognised as expense in the Statement of Profit
and Loss are as under:

b) Defined Benefit Plans:

Description of Plans

i) The Gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the said Act, an
employee who has completed five years of service is entitled to specific benefit. The
Gratuity Plan provides a lumpsum payment to employees at retirement, death,
incapacitation or termination of employment. The level of benefits provided depends on the
member''s length of service and salary at retirement age etc. The scheme is unfunded.

The following tables summarise the components of net benefit expense recognised
in the Statement of Profit and Loss and the unfunded status and amounts
recognised in the Balance Sheet for the said plan:

iii) Risks related to defined benefit plans:

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory
framework which may vary overtime. Thus, the Company is exposed to various risks in providing
the above gratuity benefit which are as follows:

i) Interest Rate risk : The plan exposes the Company to the risk of fall in interest rates. A
fall in interest rates will result in an increase in the ultimate cost of providing the above
benefit and will thus result in an increase in the value of the liability (as shown in
financial statements).

ii) Liquidity Risk : This is the risk that the Company is not able to meet the short-term
gratuity payouts. This may arise due to non-availabilty of enough cash / cash equivalent
to meet the liabilities or holding of illiquid assets not being sold in time.

iii) Salary Escalation Risk : The present value of the defined benefit plan is calculated with
the assumption of salary increase rate of plan participants in future. Deviation in the rate
of increase of salary in future for plan participants from the rate of increase in salary used
to determine the present value of oblgation will have a bearing on the plan''s liabilty.

iv) Demographic Risk : The Company has used certain mortality and attrition assumptions
in valuation of the liability. The Company is exposed to the risk of actual experience
turning out to be worse compared to the assumption.

v) Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the
Payment of Gratuity Act , 1972(as amended from time to time). There is a risk of change
in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on
gratuity of Rs. 20.00 lakh).

i) The following are the assumptions used to determine the benefit obligation

a) Discount rate: The discount rate indicated above reflects the estimated timing and
currency of benefit payments. It is based on the yields / rates available on applicable
bonds as on the current valuation date.

b) Rate of escalation in salary : The salary growth rate indicated above is the
Company''s best estimate of an increase in salary of the employees in future years,
determined considering the general trend in inflation, seniority, promotions, past
experience and other relevant factors such as demand and supply in employment
market, etc.

c) Attrition rate: Attrition rate indicated above represents the Company''s best estimate
of employee turnover in future (other than on account of retirement, death or
disablement) determined considering various factors such as nature of business,
retention policy, industry factors, past experience, etc.

ii) The Gratuity and Provident Fund expenses have been recognised under "Contribution to
Provident and Other Funds" under" Salaries and Wages" under Note No. 28.

# Earning for Debt Service = Net Profit after taxes Non-cash operating expenses Interest Other non-cash adjustments

* Capital employed = Net worth Long-term borrowings /- Deferred tax liabilities/ Assets.

Explanation for change in the ratio by more than 25% as compared to the preceding year:

(i) Inventory Turnover Ratio: Due to increased in sale during the year.

(ii) Trade Receivables Turnover Ratio: Due to Sales has increase and collections from debtors end of year is very good.

(iii) Trade Payables Turnover Ratio: Due to increased purchase of raw material due to increased in production and sales during the year and regular
payment to MSME vendors.

(iv) Net Capital Turnover Ratio: Due to increase in Sales during the year

(c) The quarterly returns and stock statements of current assets filed by the Company with banks are in agreement with the books of accounts.

(d) Disclosures required under Additional regulatory information as prescribed under paragraph 6L to general instructions for preparation of Balance Sheet
under Schedule III to the Companies Act, 2013 are not applicable to the Company except as disclosed in Para (a) to (c) above.

35.15 The Company has taken a factory premise at Bhubaneshwar, Odisha on lease for the purpose of expansion of its business.

35.16 The previous year''s have been rearranged wherever necessary. Amounts and other disclosures for the preceding year is included as an

integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

The accompanying notes 1 to 35 are an integral part of the financial statements.

As per our report of even date attached.

For G. P. Agrawal & Co. For and on behalf of the Board of Directors of

Chartered Accountants Kritika Wires Limited

Firm''s Registration No. - 302082E

Sd/- Sd/- Sd/-

(CA. Rakesh Kumar Singh) Naresh Kumar Agarwal Hanuman Prasad Agarwal

Partner (Director) (Managing Director)

Membership No. 066421 (DIN: 01020334) (DIN: 00654218)

Sd/- Sd/-

Anand Kumar Sharma Mahesh Kumar Sharma

(Chief Financial Officer) (Company Secretary)

Place of Signature: Kolkata
Date: The 9th day of May, 2025

---

Mar 31, 2024

1.2.9 Provisions, contingent liabilities and contingent assets

(a) A provision is recognised if, as a result of a past event, Company has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are not recognised for future operating losses.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation as at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the receivable is recognised as an asset. The expense relating to the provision is presented in the statement of profit and loss, net of any reimbursement.

(b) Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of Company or where any present obligation cannot be measured in terms of future outflow of resources or where a reliable estimate of the obligation cannot be made.

(c) A contingent asset is not recognised in the financial statements, however, it is disclosed, where an inflow of economic benefits is probable.

(d) Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

1.2.10 Foreign currency transactions and translations

Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date the transaction first qualifies for recognition.

Monetary assets and liabilities related to foreign currency transactions remaining outstanding on the balance sheet date are translated at the exchange rate prevailing on the balance sheet date. Any income or expense arising on account of foreign exchange difference either on settlement or on translation is recognised in the statement of profit and loss.

Non-monetary items which are carried at historical cost denominated in a foreign currency are translated using the exchange rate at the date of the initial transaction.

1.2.11 Employee benefits

(a) Short-term employee benefits

Short-term employee benefits in respect of salaries and wages, including non- monetary benefits, are recognised as an expense at the undiscounted amount in the statement of profit and loss in the year in which the related service is rendered.

(b) Defined contribution plans

The Company pays provident and other fund contributions to publicly administered fund as per related Government regulations. The Company has no further obligation, other than the contributions payable to the respective funds. The Company recognizes contribution payable to such funds as an expense when an employee renders the related service.

(c) Defined benefit plans

The Company operates a defined benefit gratuity plan.

The liability or asset recognised in the balance sheet in respect of gratuity is the present value of the defined benefit obligation as at the balance sheet date less the fair value of plan assets. The defined benefit obligation is calculated by external actuaries using the projected unit credit method.

Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised directly in other comprehensive income in the period in which they occur and are included in retained earnings in the statement of changes in equity and in the balance sheet.

1.2.12 Government Grants

Government grants are recognised when there is reasonable assurance that the grant would be received and the Company would comply with all the conditions attached to them.

Government grants related to property, plant and equipment, including non-monetary grants, are presented in the balance sheet by deducting the grant in arriving at the carrying amount of the asset.

Government grants of revenue in nature are recognised on a systematic basis in the statement of profit and loss over the period necessary to match them with the related costs and are adjusted with the related expenditure. If not related to a specific

expenditure, it is considered as income and included under "Other Operating Revenue" or "Other Income".

The benefit of a government loan at a below-market rate of interest or loan with interest subvention and effect of this favourable interest is treated as a government grant. The loan or assistance is initially recognised at fair value and the government grant is measured as the difference between proceeds received and the fair value of the loan based on prevailing market interest rates and recognised on a systematic basis in the statement of profit and loss. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

1.2.13. Impairment of Non financial Assets

An impairment loss is recognised for the amount by which the carrying amount of the asset exceeds its recoverable amount. The recoverable amount is the higher of an asset''s fair value less costs to sell and value in use.

To assess impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (cash-generating units).

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

If at the balance sheet date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is reassessed and the impairment loss previously recognised is reversed so that the asset is recognised at its recoverable amount but not exceeding the value which would have been reported in this respect if the impairment loss had not been recognised.

1.2.14 Taxes

Income tax expense comprises current tax and deferred tax and is recognised in the statement of profit and loss except to the extent it relates to items directly recognised in Equity or other comprehensive income (OCI).

a) Current income tax

Current income tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid to the taxation authorities using the tax rates and tax laws that are enacted or substantively enacted by the balance sheet date and applicable for the period.

Current tax items in correlation to the underlying transaction relating to OCI and Equity are recognised in OCI and Equity respectively.

Management periodically evaluates positions taken in the tax returns to situations in which applicable tax regulations are subject to interpretation and full provisions are made where appropriate based on the amount expected to be paid to the tax authorities. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognised amounts and where it intends either to settle on a net basis or to realize the assets and settle the liabilities simultaneously.

b) Deferred income tax

Deferred income tax assets and liabilities are recognised for the deductible and taxable temporary differences arising between the tax base of assets and liabilities and their carrying amount in the standalone financial statements.

Deferred tax assets are recognised for deductible temporary differences, the carry forward of unused tax credits and any unused tax losses to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, unused tax credits and unused tax losses can be utilised.

The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that the same will be reversed or sufficient taxable profit will be available to allow all or part of the deferred tax assets to be utilised.

Deferred tax assets and liabilities are measured at the tax rates (and tax laws) that have been enacted or substantively enacted at the balance sheet date.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Deferred tax assets include Minimum Alternative Tax (MAT) paid in accordance with the tax laws in India, which is likely to give future economic benefits in the form of availability of set off against future income tax liability.

Accordingly, MAT is recognised as deferred tax asset in the balance sheet when the asset can be measured reliably, and it is probable that the future economic benefit associated with asset will be realised.

1.2.15 Earnings per Share

a) Basic earnings per share are computed by dividing the net profit/(loss) after tax by the weighted average number of equity shares outstanding during the year.

b) Diluted earnings per share are computed by dividing the net profit/(loss) after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could be issued on the conversion of all dilutive potential equity shares. Dilutive potential equity shares are determined at the end of each period presented.

The number of equity shares and potential dilutive equity shares are adjusted retrospectively for all periods presented for any share split and bonus shares issues including for changes effected before the approval of the standalone financial statements by the Board of Directors.

1.2.16 Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash on hand, cheques on hand, balance with banks, and short term liquid investments with an original maturity of three months or less and which carry an insignificant risk of changes in value.

For the purpose of the Cash Flow Statement, Cash and cash equivalents consist of Cash and cash equivalents, as defined above and net of outstanding book overdrafts as they are considered an integral part of the Company''s cash management.

1.2.17 Cash Flow Statement

Cash flows are reported using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a noncash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

1.2.18 Critical accounting judgements and key sources of estimation uncertainty

The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of the accounting policies and the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Actual results could differ from those estimates. The estimates and underlying assumptions are reviewed on an on-going basis.

Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period; they are recognised in the period of the revision and future periods if the revision affects both current and future periods.

(a) Judgements in applying accounting policies

The judgements, apart from those involving estimations (see note below), that the Company has made in the process of applying its accounting policies and that have a significant effect on the amounts recognised in these financial statements pertain to useful life of intangible assets.

(b) Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(i) Useful lives of property, plant and equipment

As described in the significant accounting policies, the Company reviews the estimated useful lives of property, plant and equipment and intangible assets at the end of each reporting period.

(ii) Fair value measurements and valuation processes

Some of the Company''s assets are measured at fair value for financial reporting purposes. Fair value measurements are categorised into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable and the significance of the inputs to the fair value measurement in its entirety. Information about the valuation techniques and inputs used in determining the fair value of various assets and liabilities are disclosed in the notes to the financial statements.

(iii) Actuarial Valuation

The determination of Company''s liability towards defined benefit obligation to employees is made through independent actuarial valuation including determination of amounts to be recognised in the Statement of Profit and Loss and in other comprehensive income. Such valuation depends upon assumptions determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and demand factors in the employment market. Information about such valuation is provided in notes to the financial statements.

(iv) Provisions and Contingent Liabilities

Any litigation where amount of flow of funds is believed to be probable and are liable estimate of the outcome of the dispute can be made based on

management''s assessment of specific circumstances of each dispute and relevant external advice, management provides for its best estimate of the liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation uncertainty. Information about such litigations is provided in notes to the financial statements.

(v) Impairment of Financial Assets

The Company assesses impairment based on expected credit losses (ECL) model on trade receivables. The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the trade receivable. At every reporting date, the historically observed default rates are updated.

1.2.19 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended 31st March, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

B. Fair value hierarchy

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

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

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

Fair value of cash and cash equivalents, trade receivables, other current financial assets, borrowings and other current financial liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using adjusted net asset value method Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient, or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

The fair value of investment in mutual funds has been determined based on quotes from mutual funds/ Asset management companies during the year.

The Company has not classified any financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2.

The following tables provide the fair value hierarchy of the Company''s assets measured at fair value on a recurring basis:

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s (a) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under financial instrument or a customer contract leading to a financial loss. The Company''s exposure to credit risk from its operating activities is primarily trade receivable and security deposit. Credit risk from balances with bank and other financial instrument is managed in accordance with Company''s policies. Surplus funds are parked only in approved invesment categories with well defined limits. Investment category is periodically reviewed by the Board of Directors of the Company.

Credit risk arising from short term liquid funds, and other cash equivalents is limited and no collaterals are held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by credit rating agencies.

Other financial assets measured at amortized cost includes loans to employees, security deposits and others. Credit risk related to these financial assets are managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system is in place to ensure that the amounts are within defined limits.

Customer credit risk is managed as per Company''s established policy, procedure and control related to credit risk management. Credit quality of the a customer is assessed based on his previous track record and individual credit limit are defined according to this assessment. Outstanding customer receivables are regularly monitored. Assets are written off when there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

iii) Risks related to defined benefit plans:

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:

i) Interest Rate risk : The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

ii) Liquidity Risk : This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non-availabilty of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

iii) Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of oblgation will have a bearing on the plan''s liabilty.

iv) Demographic Risk : The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

v) Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act , 1972(as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on gratuity of Rs. 20.00 lakh).

i) The following are the assumptions used to determine the benefit obligation

a) Discount rate: The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields / rates available on applicable bonds as on the

b) Rate of escalation in salary : The salary growth rate indicated above is the Company''s best estimate of an increase in salary of the employees in future years, determined considering the

c) Attrition rate : Attrition rate indicated above represents the Company''s best estimate of employee turnover in future (other than on account of retirement, death or disablement) determined

ii) The Gratuity and Provident Fund expenses have been recognised under " Contribution to Provident and Other Funds" under " Salaries and Wages" under Note No. 26.

33.10 During the year ended 31st March, 2024, Bonus equity shares were allotted in proportion of 2(two) equity shares of Rs.2/- each for every 1 (one) equity share of Rs.2/ - each to the existing shareholders of the Company as on record date i.e. 19th December, 2023 as approved by the Board of Director on 20th December, 2023 from sums standing to the credit of the securities premium Account and Free Reserves as on 31st March, 2023.

33.11 Impairment of Assets in accordance with Indian Accounting Standard-36:

The Company has identified two manufacturing facilities at Sankrail Industrial Park, Jangalpur, PO. Kanduah, Howrah - 711302 as its cash generating units and carried out test for impairement of Assets on the basis of indications set out in Indian Accounting Standard - 36 " Impairment of Assets" at the balance sheet date. The company did not find any Impairment in its Assets as at 31st March, 2024 and 31st March, 2023.

33.12 Details of Loans given, investments made and guarantee given covered u/s 186(4) of the Companies Act, 2013:

(a) The particulars of investments made are given under Note No. 6

(b) The Company has given any loan during the year.

(c )The Company has not given any guarantee and has not provided any security.

33.13 Government grants as per Indian Accounting Standard-20:

Government Grants are recognized at fair value when there is reasonable assurance that the grant would be received and the company would comply with all the conditions attached with them.

The following are the government grants received during the financial year ended 31st March, 2024:

33.16 The Company has taken a factory premise at Bhubaneshwar, Odisha on lease for the purpose of expansion of its business.

33.17 The previous year''s have been rearranged wherever necessary. Amounts and other disclosures for the preceding year is included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

The accompanying notes 1 to 33 are an integral part of the financial statements.

As per our report of even date attached.

Sd/- Sd/- Sd/_-

For G. P. Agrawal & Co. For and on behalf of the Board of Directors of

Chartered Accountants Kritika Wires Limited

Firm''s Registration No. - 302082E

Sd/- ^Sd/-

(CA. Rakesh Kumar Singh) Hanuman Prasad Agarwal Naresh Kumar Agarwal

Partner (Managing Director) (Director)

Membership No. 066421 (DIN: 00654218) (DIN: 01020334)

Place of Signature: Kolkata Anand Kumar Sharma Mahesh Kumar Sharma

Date: 28th May, 2024 (Chief Financial Officer) (Company Secretary)

---

Mar 31, 2023

(a) Terms/ Rights attached to Equity shares:

The Company has a single class of equity shares having a par value of Rs. 2/- (previous year Rs.10/-) each. The holders of these shares are entitled to receive dividend as declared from time to time and entitled to one vote per share.

(b) 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 dues. The distribution will be in proportion to the number of equity shares held by the shareholders.

(c) The aggregate number of equity shares issued pursuant to contract without payment being received in cash in immediately preceding last five years was 64,70,000 Equity Shares (previous year 64,70,000 Equity Shares).

‘Final dividend paid of Re. 0.50 (Fifty Paise Only) per fully paid-up Equity Share of Rs. 10/- each to the shareholders of the Company for the Financial Year ended 31st March, W)? e) Nature and purpose of Reserves:

(i) Capital Reserve comprise of reserve arising on Capital Gains and profit on revaluation of capital assets in earlier years, in accordance with applicable accounting standard.

(ii) The amount received in excess of the par value of equity shares has been classified as securities premium. The reserve may be utilized in accordance with the provisions of the Companies Act2013.

(iii) Retained earnings represent the amount of accumulated earnings of the Company.

(iv) Remeasurement of defined benefit plan through OCT represents the acturial gain on employees'' benefit which has been, transferred to retained earnings.

c) Nature of Security:

(i) Term loan from State Bank of India as Gauranteed Emergency Credit Line was secured by the Primary security/ Collateral security

of Land and Building and Personal Guarantee of directors and Corporate Guarantee of R A Comptech Investment & Consultant Pvt Ltd.

(ii) Term loan from Axis Bank Ltd. as Gauranteed Emergency Credit Line is secured by the Primary security/ Collateral security

of Land and Building and Personal Guarantee of directors and Corporate Guarantee of R A Comptech Investment & Consultant Pvt Ltd.

Nature of security

0 Working Capital loan from Karnataka Bank was secured by hypothecation of stocks of raw materials, work-in-progress, finished goods, spares and book debts of the Company and personal guarantee of directors.

ii) Working Capital loan from State Bank of India is secured by hypothecation of stocks of raw materials, work-in-progress, finished goods, spares and book debts of the Company and personal guarantee of directors.

iii) Working Capital loan from State Bank of India - FCNRB is secured by hypothecation of stocks of raw materials, work-in-progress, finished goods, spares and book debts of the Company and personal guarantee of directors.

iv) Working Capital loan and Demand loan from Axis Bank is secured by way of hypothecation on Stocks & Receivables and all other current assets both present and future of the company including raw materials, SIP and FG in the name of the company. Raw Material Includes wires, Zinc and other related products at factory premises/ go-down pr elsewhere and receivables (book debts) and all other current

The amounts shown in (a) above represent the best possible estimates arrived at on the basis of available information.

The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

33.2 Section 22 of the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006:

Based on the information/ documents available with the Company, information as per the requirement of section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 with respect to trade payables, suppliers of capital goods and creditors for expenses are as follows:

(a) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

(b) No amount has been written back/written off during the year in respect of due to/ from related parties.

(c) The amounts due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

(d) The remuneration of directors is determined by the nomination and remuneration committee of the Board of Directors considering the performance of individuals and market trends.

(e) Figures in the bracket relate to the previous year.

Notes forming part of financial statements (contd.)

B. Fair value hierarchy

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

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

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

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

Fair value of cash and cash equivalents, trade receivables, and other current financial assets, and other current financial liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

Where such items are Non-current in nature, the same has been classified as Level 3 and fair value determined using adjusted net asset value method Similarly, unquoted equity instruments where most recent information to measure fair value is insufficient or if there is a wide range of possible fair value measurements, cost has been considered as the best estimate of fair value.

The fair value of investment in mutual funds has been determined based on quotes from mutual funds/ Asset management companies during the year.

There has been no change in the valuation methodology for Level 3 inputs during the year. The Company has not classified any material financial instruments under Level 3 of the fair value hierarchy. There were no transfers between Level 1 and Level 2.

The following tables provide the fair value hierarchy of the Company''s assets and liabilities measured at fair value on a recurring basis:

33.5 Financial risk management objectives and policies

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk

(a) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under financial instrument or a customer contract leading to a financial loss. The Company''s exposure to credit risk from its operating activities is primarily trade receivable and security deposit. Credit risk from balances with bank and other financial instrument is managed in accordance with Company''s policies. Surplus funds are parked only in approved invesment categories with well defined limits. Investment category is periodically reviewed by the Board of Directors of the Company.

Credit risk arising from short term liquid funds, and other cash equivalents is limited and no collaterals are held against these because the counterparties are banks and recognised financial institutions with high credit ratings assigned by credit rating agencies.

Other financial assets measured at amortized cost includes loans to employees, security deposits and others. Credit risk related to these financial assets are managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system is in place to ensure that the amounts are within defined limits.

Customer credit risk is managed as per Company''s established policy, procedure and control related to credit risk management. Credit quality of the a customer is assessed based on his previous track record and individual credit limit are defined according to this assessment Outstanding customer receivables are regularly monitored. Assets are written off when there is no reasonable expectation of recovery. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognized in statement of profit and loss.

The ageing analysis of the receivables are given note no. 7.

(ii) The change in the loss allowances measured using life time expected credit loss model is nil Also, no significant changes in estimation were made during the reported period.

(iii) Balances with banks

Credit risk from balances with banks is managed in accordance with the Company''s policy.

The Company''s maximum exposure to credit risk for the components of the balance sheet as at 31st March, 2023 and 31st March, 2022 is the carrying amounts as stated under note no. 8 (a) & (b).

(b) Liquidity risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligation on time or at reasonable price. Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates.

(c) Market risk

The Company has no international transactions and is not exposed to foreign exchange risk.

Interest rate risk

The Company has no variable rate borrowings, therefore the Company is not exposed to interest rate risk.

(d) Lien

The fair values of the fixed deposits under lien aggregated to Rs.l,253.89 lakh (Rs. 875.75 lakh on 31st March, 2022) which was held as Margin Money against Bank Guarantees/Letter of credits.

(a) Risk Tnanagpmpnt

Foi the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity share-holders of the Company. The Company''s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.

33.7 Employee benefits in accordance with Indian Accounting Standard -19^a Employee Benefits:

a) Defined Contribution Plan:

Employee benefits in the form of Provident Fund and Employee State Insurance Scheme are considered as defined contribution plan.

The contributions to the respective fund are made in accordance with the relevant statute and are recognised as expense when employees have rendered service entitling them to the contribution. The contributions to defined contribution plan, recognised as expense in the Statement of Profit and Loss are as under:

iii) Risks related to defined benefit plans:

Valuations are performed on certain basic set of pre-determined assumptions and other regulatory framework which may vary overtime. Thus, the Company is exposed to various risks in providing the above gratuity benefit which are as follows:

i) Interest Rate risk: The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability (as shown in financial statements).

ii) Liquidity Risk: This is the risk that the Company is not able to meet the short-term gratuity payouts. This may arise due to non-availabilty of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

iii) Salary Escalation Risk: The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of oblgation will have a bearing on the plan''s liabilty.

iv) Demographic Risk: The Company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to the assumption.

v) Regulatory Risk: Gratuity benefit is paid in accordance with the requirements of the Payment of Gratuity Act, 1972(as amended from time to time). There is a risk of change in regulations requiring higher gratuity payouts (e.g. Increase in the maximum limit on gratuity of Rs. 20.00 lakh).

i) The following are the assumptions used to determine the benefit obligation

a) Discount rate: The discount rate indicated above reflects the estimated timing and currency of benefit payments. It is based on the yields / rates available on applicable bonds as on the current

b) Rate of escalation in salary: The salary growth rate indicated above is the Company''s best estimate of an increase in salary of the employees in future years, determined considering the general

c) Attrition rate: Attrition rate indicated above represents the Company''s best estimate of employee turnover in future (other than on account of retirement, death or disablement) determined

ii) The Gratuity and Provident Fund expenses have been recognised under" Contribution to Provident and Other Funds" under" Salaries and Wages" under Note No. 26.

33.9 Segment information as per Ind AS 108 - Operating Segments:

The Board of Directors has been identified as the Company''s chief operating decision-maker (CODM) as defined by Ind AS 108 - Operating Segments. The Chief Operating Decision Maker (CODM) evaluates the Company''s performance and allocates resources based on an analysis of various performance indicators by Business segments. The CODM of the Company evaluates the segments based on their revenue growth, operating income and return on capital employed.

The Company has identified a single reportable business segment i.e. manufacturing, exporting and supplying of Industrial steel wires and galvanized wires.

33.10 The company has received approval from National Stock Exchange of India Limited ["N5E"] vide letter bearing reference no. NSE/LIST/178 dated April 29,2022 that the trading in the Equity Shares of the Company has been migrated from the SME Emerge platform of NSE to the main board of NSE w.e.f. May 04,2022 and the new designated security codes and lot size has been alloted.

33.11 Impairment of Assets in accordance with Indian Accounting Standard-36:

The Company has identified two manufacturing facilities at Sankrail Industrial Park, Jangalpur, PO. Kanduah, Howrah - 711302 as its cash generating units and carried out test for impairement of Assets on the basis of indications set out in Indian Accounting Standard - 36 ¹¹ Impairment of Assets" at the balance sheet date. The company did not find any Impairment in its Assets as at 31st March, 2023 and 31st March, 2022.

33.12 Details of Loans given, investments made and guarantee given covered u/s 186(4) of the Companies Act, 2013:

(a) The particulars of investments made are given under Note No. 6

(b) The Company has given any loan during the year.

(c )The Company has not given any guarantee and has not provided any security.

33.13 Government grants as per Indian Accounting Standard-20:

Government Grants are recognized at fair value when there is reasonable assurance that the grant would be received and the company would comply with all the conditions attached with them.

The following are the government grants received during the financial year ended 31st March, 2023:

(c) The quarterly returns and stock statements of current assets filed by the Company with banks are in agreement with the books of accounts.

(d) Disclosures required under Additional regulatory information as prescribed under paragraph 6L to general instructions for preparation of Balance Sheet under Schedule in to the Companies Act, 2013 are not applicable to the Company except as disclosed in Para (a) to (c) above.

33.16 The previous year''s have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year is included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

The accompanying notes 1 to 33 are an integral part of the financial statements.