Notes to Accounts of P S Raj Steels Ltd.

Mar 31, 2025

2.12: PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognized when the Group has a present legal or constructive obligation as a result of
past events, it is probable that an outflow of resources will be required to settle the obligation and the
amount can be reliably estimated. These estimates are reviewed at each reporting date and adjusted to
reflect the current best estimate. Provisions are discounted to their present values, where the time
value of money is material.

Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for
a contingent liability is also made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. Contingent liabilities are disclosed in the
financial statements unless the possibility of outflow is remote. Contingent Liabilities are not
provided for and are disclosed by the way of notes. Contingent Assets are neither recognized nor
disclosed in the financial statements.

2.13 EARNINGS PER SHARE

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity
shareholders of the company by the weighted average number of equity shares outstanding during the
period. The weighted Average number of equity shares outstanding during the period and for all
periods presented is adjusted for events, such as bonus shares, other than the conversion of potential
equity shares that have changed the number of equity shares outstanding, without a corresponding
change in resources.

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

2.14 CASH FLOW STATEMENT

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

2.15 CASH AND CASH EQUIVALENTS

Cash and cash equivalents comprise cash and cash on deposit with banks. The Company considers all highly
liquid investments with a remaining maturity at the date of purchase of three months or less and that are
readily convertible to known amounts of cash to be cash equivalents.

2.16 SEGMENT REPORTING

The company operates in a single segment i-e, “Manufacturing of S.S. Pipes and Tubes” and hence does not
have any additional disclosures to be made under AS-17 Segment Reporting.

However, the Company is having revenue; from its customers which are located in India, of more than 10% of
its total revenue and does not have any export sale.

2.17 EXTRAORDINARY, EXCEPTONAL, PRIOR PERIOD ITEMS AND CHANGES IN
ACCOUNTING POLICIES

a) Income or expenses that arise from events or transactions that are clearly distinct from the ordinary
activities of the Company are classified as extraordinary items. Specific disclosure of such events/
transactions is made in the financial statements. Similarly, any external event beyond the control of
the Company, significantly impacting income or expense, is also treated as extraordinary item and
disclosed as such.

b) On certain occasions, the size, type or incidence of an item of income or expense, pertaining to the
ordinary activities of the Company, is such that its disclosure improves an understanding of the
performance of the Company. Such income or expense is classified as an exceptional item and
accordingly disclosed in the notes to accounts.

2.18 GOVERNMENT GRANTS AND SUBSIDIES

Government grants and subsidies are recognized when there is reasonable assurance that the Company will
comply with the conditions attached to them and the grants/subsidy will be received. Government grants
whose primary condition is that the Company should purchase, construct or otherwise acquire capital assets
are presented by deducting them from the carrying value of assets and such grant is recognized as income over
the life of a depreciable asset by way of a reduced depreciation charge.

When the grant or subsidy relates to an expense item, it is recognized as income over the periods necessary to
match them on a systematic basis to the costs, which it is intended to compensate.

2.19 CONTINGENCIES AND EVENTS OCCURING AFTER THE BALANCE SHEET DATE

Events that occur between balance sheet date and date on which these are approved, might suggest the
requirement for an adjustment(s) to the assets and liabilities as at balance sheet date or might need disclosure.
Adjustments are required to assets and liabilities for events which occur after balance sheet date which offer
added information substantially affecting the determination of the amounts which relates to the conditions that
existed at the balance sheet date.

2.20 LEASES

The company has taken Office & Factory on lease and classified the same as Operating lease and lease rentals
are recognized in the statement of profit and loss account as per lease terms.

(B) Notes on Financial Statements

1. Salaries includes directors remuneration on account of salary Rs. 60,00,000/- (Previous Year Rs.
60,00,000/-)

2. The Balances of Trade receivables, Trade payables, Advance to Suppliers and Advance from Customers
are unsecured and considered good are subject to confirmation.

3. Payments to Auditors:

4. The provision for the retirement benefits (Gratuity) has been made during the year based on the Actuarial

valuation for Rs.37,10,328/- ,out of the said expense Rs. 509064/- is for the current financial year 2024¬
2025.

5. Loans and Advances are considered good in respect of which company does not hold any security other than

the personal guarantee of person.

6. Related Party disclosure as identified by the company and relied upon by the auditors:

Notes referred to above and notes attached thereto form an integral part of Financial Statements
In terms of Our Separate Audit Report of Even Date Attached.

For Jain Mittal Chaudhary & Associates For P S RAJ STEELS LIMITED

Chartered Accountants

(CA Sanjeev Jain) Sh. Deepak Kumar Sh. Gaurav Gupta

Partner Managing Director Whole Time Director

DIN : 00677030 DIN : 00593822

Membership No. 500771
Registration No. 0015140N
UDIN: 25500771BMGHCG1574

Mr.Vinod Kumar Ms. Suman

Chief Financial Officer Company Secretary &

PAN No: AUYPK8754D Compliance Officer

M. No:A62709

Place:- Hisar
Date: - 28.05.2025

Note No: 32

Other Statutory Information

1. There are no immovable properties whose title deeds list assets not held in the name of the company.

2. The Company has not revalued its property, plant and equipment (including right-of-use assets) or
intangible assets or both during the current year.

3. No such loan exists where loans or advances in the nature of loans are granted to promoters, directors,
KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with
any other person.

4. All Capital Work-in-Progress amounting to ?132.64 (in lakh) pertains to projects in progress for less
than one year, with no CWIP aged beyond one year. There are no projects under Capital Work-in¬
Progress that are temporarily suspended during the period.

7. During the year, the Company has been sanctioned working capital limits in excess of Rs.5 crore , in
aggregate, from banks on the basis of security of current assets. The Company has filed Monthly
statements with such banks, which are in agreement with the books of account

8. The Company is not declared willful defaulter by any Bank or Financial Institutions or other lender.

9. There are no transactions / relationship with struck off companies.

10. There are no charges or satisfaction of charges pending for registration with the Registrar of
Companies beyond the statutory period. All charges have been duly registered and satisfied, as
applicable, within the prescribed time limits.

11. 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, and there are no companies
beyond the specified layers.

12. The Company has not undertaken any Scheme of Arrangement during the financial year.

13. There The Company does not have any transaction not recorded in the books of accounts that has
been surrendered or disclosed as 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).
Further, there was no previously unrecorded income and no additional assets were required to be
recorded in the books of account during the year.

14. The Company has neither traded nor invested in Crypto currency or Virtual Currency for the period
covered by Restated financial. Further, the Company has also not received any deposits or advances
from any person for the purpose of trading or investing in Crypto Currency or Virtual Currency

15. 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 any other person or entity, including foreign entities
("Intermediaries") with the understanding (whether recorded in writing or otherwise) that the
Intermediary shall, whether directly or indirectly lend or invest in other persons/entities identified in
any other manner whatsoever by or on behalf of the Company (''ultimate beneficiaries'') or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

For Jain Mittal Chaudhary & Associates For P S Raj Steels Limited

Chartered Accountants (Formerly Known as P S Raj Steels Private Limited)

CA Sanjeev Jain Mr. Deepak Kumar Mr. Gaurav Gupta

Partner Managing Director Whole Time Director

DIN No: 00677030 DIN No: 00593822

Membership No. 500771 Pl_ace:- Hi_sar Place:- Hisar

Registration No. 015140N

Place:- Hisar

Date:- 28.05.2025

UDIN: 25500771BMGHCG1574

Mr. Vinod Kumar Ms. Suman

Chief Financial Officer Company Secretary &

Compliance Officer

PAN NO: AUYPK8754D Membership No: A62709

---

Mar 31, 2024

2.11: PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognised when the Group has a present legal or constructive obligation as a
result of past events, it is probable that an outflow of resources will be required to settle the
obligation and the amount can be reliably estimated. Provisions are not recognised for future
operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure
required to settle the present obligation at the end of the reporting period. The discount rate
used to determine the present value is a pre-tax rate that reflects current market assessments of
time value of money and the risks specific to the liability. The increase in the provision due to
passage of time is recognised as interest expense.

A present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle or a reliable estimate of the amount cannot be made, is
disclosed as a contingent liability. Contingent liabilities are also disclosed when there is a
possible obligation arising from past events, the existence of which will be confirmed only by
the occurrence or non -occurrence of one or more uncertain future events not wholly within the
control of the Group.

Contingent assets are not recognised in financial statements since this may result in the
recognition of income that may never be realised. However, when the realisation of income is
virtually certain, then the related asset is not a contingent asset and is recognised.

2.12 Earnings per share

Basic earnings per share is computed by dividing the net profit for the period attributable to the
equity shareholders of the company by the weighted average number of equity shares
outstanding during the period. The weighted Average number of equity shares outstanding
during the period and for all periods presented is adjusted for events, such as bonus shares,
other than the conversion of potential equity shares that have changed the number of equity
shares outstanding, without a corresponding change in resources.

Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for
dividend, interest and other charges to expense or income (net of any attributable taxes)
relating to the dilutive potential equity shares, by the weighted averagemumber of equity
shares considered for deriving basic earnings per share and the weighted\avera^number of
equity shares which could have been issued on the conversion of allydijutivcp^emi^d equity
shares including the treasury shares heldpig qomj^oylifPBfctlstfyjtlvq qkehsise)<§fjjthe share

options by tlf^jjilJ^oy^sSteels Pvt. Ltd, '' V ^ y*)I

~Z-*-**-—* l^s ^ ''Director

213 Trade receivables

Trade receivables that do not contain a significant financing component are measured at
transaction price.

2.14 Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents
includes cash on hand, deposits held at call with the financial institutions, other short term,
highly liquid investments with original maturities of three months or less (except the
instruments which are pledged) that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in value, and bank overdrafts.

| Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

2.15 Trade and other payables

These amounts represent liabilities for goods and services provided to the Group prior to the
end of financial year which are unpaid. The amounts are unsecured and are usually paid within
the credit period allowed. Trade and other payables are presented as current liabilities unless
payment is not due within-12 months after the reporting period. Long term trade payables are
recognized initially at their fair value and subsequently measured at amortised cost using the
effective interest method.

(B) Notes on Financial Statements

1. Salaries includes directors remuneration on account of salary Rs. 6000000/- (Previous Year Rs.
3600000/-)

2. Trade receivables, Trade'' payables and Unsecured Loans have been taken at their book value
subject to confirmation and reconciliation.

4. The provision for retirement benefits (Gratuity) has been made during the year based on the
Actuarial valuation for Rs. 37,41,265/-, out of the said expense Rs. 1034416/- is for the current
financial year i.e. 2023-24 and an amount of Rs. 2706849/- pertaining to the previous financial
years is directly debited to the Reserve and Surplus A/c being the Prior Period Item in view of
accounting policy No. 4 & 11. The impacLof profit & Loss is properly disclosed and

determined. ^v'' ’ 7\ J) A

For P.S. Raj Steels Pvt. Ltd. / S Ij

/ V 1 Director ||

/intact*-^ k)

2. "Where the Company has revalued its Property, Plant and Equipment, the company
shall disclose as to whether the revaluation is based on the valuation by a registered
valuer as defined under rule 2 of the Companies (Registered Valuers and Valuation)

? Rules, 2017

No, the Company has not revalued its Property, Plant and Equipment during the year".

3. Where Loans or Advances in the nature of loans are granted to promoters, directors,

KMPs and the related parties (as defined under Companies Act, 2013,) either severally
or jointly with any other person, that are: For P.S.Ra Steels Pvt. Ltd.

For P.S. Raj Steels pvt Ltd. __ 7/ jHflr

/«x ^Dlrector

^ /^V^irector

6. Details of Benami Property held

The Company does not hold any Benami Property and hence there were no proceedings
initiated or pending against the Company for holding any benami property under the Benami
Transactions (Prohibitions) Act, 1988 and the Rules made there under, hence no disclosure is
required to be given as such.

7. Where the Company has borrowings from banks or financial institutions on the basis of
current assets

Yes, the company has borrowings from banks in the nature of Term Loan and Cash Credit
Limit.

i. Whether quarterly returns or statements of current assets filed by the Company with
banks or financial institutions are in agreement with the books of accounts.

Yes, the statements are in agreement with the books of accounts.

ii. if not, summary of reconciliation and reasons of material discrepancies, if any to be

. adequately disclosed.

*1

8. Wilful Defaulter

Company is not declared wilful defaulter by any Bank or Financial Institutions or other lender,
in accordance with the guidelines on wilful defaulter issued by the Reserve Bank of India.

9. Relationship with Struck off Companies

Where the company has any transactions with companies struck off under section 248 of the
Companies Act, 2013 or section 560 of Companies Act, 1956.

No, there are no transaction with struck off companies p

10. Registration of charges or satisfaction with Registrar of Companies

There are no such charges or satisfaction pending to be registered with Re^^tmr

heyo^^^fisrpyi,. Lid. ^Tor ''

lector . ***

13. Compliance with approved Scheme(s) ₀f Arrangements

of sections 230 to 237 ^haS been aPP^r°ved by the Competent Authority in terms

Of such Scheme of Berner w f ’ ²Â°â€™³â€™ ?°^{mpaoy sha}" <**« ** the eff“t ''

Company ‘in accordance been accounted for in the books of account of the

in this regard shall be explained ^ ^ ^{ln accorda}nce with accounting standards’ and

No, such Scheme of Arrangements had been entered by the company.

14. Undisclosed Income

There is no any undisclosed mcome in the tax assessment year under the Income Tax Act,

15. Corporate Social Responsibility (CSR)

As the company does not fall under the criteria specified under section 115 ffnmrw. c ¦ ,
Responsibility) of the Company Act, 2013.

isc osure required to made pursuant to said provision are not applicable to the Company.

16. Details of Ciypto Currency Or Virtual Currency

There is no dealing in crypto curreny or virtual currency.

17. Utilization of Borrowed Funds and Share premiums

^adV.^anCed m l0f ^{10 the any individual} or any entities including foreigu j

entities. Therefore, the point is not applicable to the company ^{S S}

jy «Kl ML

0anjeev Jain) V|^ ^ /

t?„^r''"h^r SH.BEEPAK SH.GAURAV GUPTA

Membership No. 500771 .= = KUMAR Director

Registration No. 0015140N Director

Mace:- Hisar '' DIN: 00677030 DIN: 00593822

H. No. 164, H. No. 163,

Sector-9/11, Hisar, Sector-9/11, Hisar,

125001 125001

late: - 25/07/2024

JDIN: 24500771BKDOFE6266