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Notes to Accounts of PTC Industries Ltd.

Mar 31, 2023

The Company obtains independent valuations for its investment property. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the Company considers information from a variety of sources such as current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences.

Fair value is based on the valuation by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017.

These valuations are based on valuations performed by accredited independent valuer. Fair value is based on market value approach. The fair value measurement is categorised in Level 3 of fair value hierarchy. There has been no restriction on disposal of property or remittance of income and proceeds of disposal.

Nature and purpose of other reserves:

(a) Capital reserve

Capital reserve was created in respect of proceeds of forfeited shares.

(b) Securities premium

Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

(c) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn.

(d) Retained earnings

Retained earnings refer to the net profit retained by the company for its core business activities.

(e) Share Based Payment Reserve(SBP)

This reserve has been created to meet the cost of Employee Stock Option Payment(ESOP) scheme.

(f) Share Warrants

Fully convertible warrants ahoted to persons belonging to Non-Promoter category convertible into equivalent number of Equity Shares within a period of 13 months from the date of allotment.

1. Term loans from banks and financial institutions carrying interest rate ranging from 7.25% to 11.20% p.a ( PY. 8.25% to 10.75% p.a).

2. Term loans from banks are secured by way of equitable mortgage on pari-passu basis on the land and building of Lucknow Plant 1,AMTC Plant (at village Sarai Shahajadi) and first pari-passu charge on the plant and equipment of the Lucknow Plant 1,AMTC Plant (at village Sarai Shahajadi) of the Company and second charge ranking pari-passu on the whole of the present and future current assets of the Company .

3. Further the term loans from banks and financial institutions are secured by way of personal guarantee of the few directors of the Company.

4. Vehicle loans carry interest rates ranging from 7.25% to 12.50% p.a ( PY 9.75% to 12.50% p.a) and are secured by way of absolute charge on respective assets thus purchased.

5. Special letter of credit - from banks carry interest rates ranging from 9.00% to 14.00% p.a. (P.Y. 9.00% to 14.00% p.a.). Special letter of credit - from banks is secured by way of personal guarantee of the few directors of the Company.

6. Refer note 43 for disclosure of fair values in respect of financial liabilities measured at amortised cost and analysis of their maturity profiles.

1. Working capital facilities from banks carry interest rates ranging from 5.25% to 11.95% p.a.(P.Y 9.00% to 11.18% p.a) and are repayable on demand.These facilities are secured by way of first charge ranking pari-passu on the whole of the present and future current assets of the Company and further secured by second charge on equitable mortgage on pari-passu basis on the land and building of Lucknow Plant 1 and AMTC Plant (at village Sarai Shahajadi) and first second pari-passu charge on plant and equipment of the Lucknow Plant 1 and AMTC Plant (at village Sarai Shahajadi) of the Company.

2. Cash credit facilities are secured by way of personal guarantee of the few directors of the company.

3. Refer note 43 for disclosure of fair values in respect of financial liabilities measured at amortised cost and analysis of their maturity profiles.

4. The Company has borrowings from banks on the basis of security of current assets and quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts.

The Company have dilutive potential equity shares. Consequently, the basic and diluted earnings per share of the Company are as above.

43 Financial instrument and risk review (A) Financial instruments (i) Capital management

The Company manages its capital to be able to continue as a going concern while maximising the returns to shareholders through optimisation of the debt and equity balance. The capital structure consists of debt which includes the borrowings as disclosed in note 21(a) and 21(b); cash and cash equivalents and current investments and equity attributable to equity holders of the Company, comprising issued share capital, reserves and retained earnings as disclosed in the Statement of Changes in Equity. For the purpose of calculating gearing ratio, debt is defined as non-current and current borrowings (excluding derivatives). Equity includes all capital and reserves of the Company attributable to equity holders of the Company. The Company is not subject to externally imposed capital requirements. The Board reviews the capital structure and cost of capital on an annual basis but has not set specific targets for gearing ratios. The risks associated with each class of capital are also considered as part of the risk reviews presented to the Audit Committee and the Board of Directors.

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

Level 1: This h ierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of equity instruments which are traded in stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV

Level 2:Th is hierarchy includes financial instruments for which inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) have been used.

Level 3: Th is hierarchy includes financial instruments for which inputs used are not based on observable market data (unobservable inputs). There have been no transfers in either direction for the years ended 31 March 2023 and 31 March 2022.

Valuation techniques and significant unobservable inputs:

In respect of other long-term financial assets/liabilities stated above as measured at amortised cost, their carrying values are not considered to be materially different from their fair values.

(B) Financial risk management

The use of any derivative is approved by the management, which provide guidelines on the acceptable levels of interest rate risk, credit risk, foreign exchange risk and liquidity risk and the range of hedging requirement against these risks.

(i) Credit risk:

Credit risk is the risk that a counter party will not meet its obligations under a financial instrument or customer contract, leading to financial loss. The Company is exposed to credit risk from trade receivables, cash and cash equivalents, short term investments, loans and advances and derivative financial instruments.

Trade receivables

Allowances against doubtful debts are recognised against trade receivables based on estimated irrecoverable amounts determined by reference to past default experience of the counterparty and an analysis of the counterparty''s current financial position. The Company has a policy of accepting only credit worthy counter parties and defines credit limits for the customer which are reviewed periodically. The Company does not hold any collateral or other credit enhancements over any of its trade receivables nor does it have a legal right of offset against any amounts owed by the Company to the counterparty.

Cash and cash equivalents and deposits with bank

The Company considers factors such as track record, size of institution, market reputation and service standard to select the banks with which deposits are maintained. Generally the balances are maintained with the institutions with which the Company has also availed borrowings. The Company does not maintain significant deposit balances other than those required for its day to day operations. The Company considers that its cash and cash equivalents have low credit risk based on the external credit ratings of the counterparties.

Loans and advances

The Company provides loans to its employees and furnishes security deposits to various parties for electricity, communication, etc. The Company considers that its loans have low credit risk or negligible risk of default as the parties are well established entities and have strong capacity to meet the obligations or its own employees from whom the risk of default is low.

Investments

The Company has invested in quoted equity instruments and mutual funds. The management actively monitors the performance of the funds which affect investments. The group does not expect the counterparty to fail to meet its obligations, and has not experienced any significant impairment losses in respect of any of the investments.

Provision for expected credit losses

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence, no impairment loss has been recognised during the reporting periods in respect of these assets.

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customers with strong capacity to meet the obligations and therefore the risk of default is negligible in respect of outstanding from customers. Further, management believes that the unimpaired amounts that are past due by more than 90 days are still collectable in full. However, the Company has recognised allowance for expected credit loss on the basis of its assessment of the credit loss from the past trend available with the Company.

Liquidity risk reflects the risk that the Company will have insufficient resources to meet its financial liabilities as they fall due.

The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, cash and cash equivalents and the cash flow that is generated from operations to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure that it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities so that it does not breach borrowing limits.

As at 31 March 2023, the Company had a working capital of H 6012.21 lakh including cash and cash equivalents of H 585.34 lakh. As at 31 March 2022, the Company had a working capital of H 1261.66 lakh including cash and cash equivalents of H 95.78 lakh.

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Company''s income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the Company. The Company exports finished goods which are denominated in the currency other than the functional currency of the Company which exposes it to foreign currency risk. In order to minimise the risk, the Company executes forward contracts w.r.t sale made in currency other than functional currency.

(a) Currency risk

The Company is exposed to foreign currency risk on certain transactions that are denominated in a currency other than entity''s functional currency, hence exposure to exchange rate fluctuation arises. The risk is that the functional currency value of cash flows will vary as a result of movements in exchange rates. Exchange rate exposures are managed within approved policy parameters utilising foreign exchange forward contracts.

44 Employee benefits (i) Defined benefit plan Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. In case of death while in service, the gratuity is payable irrespective of vesting. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by the number of years of service. The gratuity plan is a funded plan and the Company makes contribution to recognised funds in India i.e. Life Insurance Corporation of India and Group Gratuity scheme.

Risk exposure:

(a) Discount rate: A decrease in discount rate in subsequent valuations can increase the plan''s liability.

(b) Mortality rate: Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

(c) Investment risk: In case of funded plans, actual investment return on planned assets lower than the discount rate assumed at the last valuation date can impact the liability.

(d) Attrition: Actual withdrawals proving higher or lower than assumed withdrawals at subsequent valuations can impact plan''s liability.

(iii) Defined contribution plan

The Company makes fixed contribution towards Employee provident fund and Employee state insurance(ESI) to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. Similarly, the contribution is made in ESI at a specified percentage of payroll cost.

The Company recognised H 124.51 lakh (31 March 2022: H 1 07.09 lakh) in respect of provident fund contributions and ESI contribution in the Statement of Profit and Loss and included in "Employee benefits expense" in note 34. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

45 Leases

Company as a lessee

The Company has entered into operating leases for its guest houses and employees'' residences that are renewable on a periodic basis and are cancellable at Company''s option. Total lease payments recognised in the statement of profit and loss with respect to aforementioned premises is H 24.38 lakh (31 March 2022: H 23.55 lakh)

A The total rent expense amount recognised in profit or loss for the year ended 31 March 2023 was H 24.38 lakh (31 March 2022: H 23.55 lakh), pertains to the short term leases.

B Total cash outflow for leases for the year ended 31 March 2023 was H 24.38 lakh (31 March 2022: H 23.55 lakh).

C The Company does not have any liability to make variable lease payments.

D The Company has not sublet any of the assets.

E The Company has not entered into any sale and leaseback transactions

F The Company does not have any ROU Assets in the books as on 31 March 2023 as well as 31 March 2022 Company as a lessor

The Company has entered into operating leases for part of its premises at Plant 1, Lucknow; that is renewable and is cancellable at either party''s option. Total lease receipts recognised in the statement of profit and loss with respect to aforementioned premises is H 107.60 lakh (31 March 2022: H 74.80 lakh).

46 Contingent liabilities and commitments

(i)	Capital commitment:
	Particulars	As at 31 March 2023	As at 31 March 2022
	Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advance)	11.16	50.31
(ii)	Contingent liabilities
	Particulars	As at 31 March 2023	As at 31 March 2022
	Guarantees excluding financial guarantees:
	In respect of non fund-based working capital facilities from banks:
	- Bank guarantees	1,676.20	1,293.84
	Other contingent liabilities
	Disputed amounts for sales tax and entry tax [gross of amount paid under protest amounting to NIL]*	-	0.83
	Disputed amounts for goods and service tax [gross of amount paid under protest amounting to H 16.59 lakh]*	16.59	16.59

*In respect of the above matters pending at various authorities(GST cases are pending at appelate authority & sales tax case is pending at sales tax tribunal) represents the demands received under the respective demand / show cause notices / legal claims, wherever applicable. Based on management assessment, the company believes that it has a good chance of success in all the above mentioned cases.

47 Segment information

The Company''s Board of Directors have been identified as the Chief Operating Decision Maker CCODM'') as they monitors the results for the purpose of making decisions about resource allocation and performance assessment and responsible for all major decisions w.r.t. preparation of budget, planning, expansion, alliance, joint venture, merger and acquisitions, and expansion of new facility. Accordingly, there is only one reportable segment for the Company which is "Engineering and allied activities", hence no specific disclosures have been made.

Entity wide disclosures:

(a) Information about products and services

The Company is engaged in the business of manufacturing and selling of high precision metal castings. Company operates in one product line, therefore product wise revenue disclosure is not applicable.

52 Share based payments

(a) Scheme details

During the previous financial year 2021-22, the Company had adopted âPTC Employees Stock Option Scheme 2019 (âPlan'') in shareholders Annual General Meeting on September 28, 2019, and obtained an in-principal approval from BSE limited on 7 September 2021 for 1,57,1 70 Equity shares of Rs. 10/- each. The Compensation Committee (Nomination & Remuneration Committee) at its meeting held on September 1 5, 2021, had approved grant of 10,965 Stock Options (convertible into 10,965 Equity shares of the Company, upon exercise) (Tranche-1) to certain Eligible Employees in terms of the Plan. Vesting will be made in maximum of four years (FY 2023 to FY 2026), after the statutory period of one year from the date of grant of option. In the current financial year 2022-23, the Compensation Committee (Nomination & Remuneration Committee) at its meeting held on 11 June 2022 had approved grant of 2,255 (convertible into 2,255 Equity shares of the Company, upon exercise) (Tranche-2) to certain Eligible Employees in pursuance of the ESOS Plan.

On 30 August 2022, The Compensation Committee (Nomination & Remuneration Committee) at its meeting had approved the adjustment in the plan, pursuant to the right issue of 78,58,594 fully paid-up equity shares of the face value of H 10 each ("rights equity shares") of Company for cash at a price of H 10/- per rights equity share aggregating up to H 785.86 lakh on a rights basis to the eligible equity shareholders of Company in the ratio of 3 rights equity shares for every 2 fully paid-up equity shares held by the eligible equity shareholders of Company on the record date, that is, on July 22, 2022, in the following manner:

(c) Fair value on the grant date

The fair value at grant date is determined using "Black Scholes Pricing Model" which takes into account the exercise price, term of the option, share price at grant date and expected price volatility of the underlying shares, expected dividend yield and the risk free interest rate for the term of the option.The following inputs were used to determine the fair value for options granted on September 15,2021, on June 1 1, 2022 and on August 30, 2022.

54 (a) 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 persons or entities, including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(b) The Company has not received any funds from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

55 The Company had received a grant in September 2011 with some conditions. During the previous year ended 31 March 2022, the Company has received request from National Research Development Corporation for the repayment of the original amount of grant along with Royalty of 26% of original grant amount. The Company has computed present value of grant and royalty liability and the difference between carrying value of grant and present value has been charged to profit and loss account and disclosed as Exceptional Items.

56 On October 20, 2022, the Board of Directors of the Company had considered and approved the Preferential Issue of up to 2,89,600 Equity Shares of face value of Rs. 10/- per share and 6,30,170 Fully Convertible Warrants at an issue price of Rs. 2,349/- per Equity Share and per Warrant respectively to persons belonging to Non-Promoter Category which was subsequently approved by the members through special resolution in Extra-ordinary general meeting dated November 19, 2022.

Subsequently on December 07, 2022 Listing Committee of the Board of Directors of the Company has issued and allotted 2,84,600 Equity Shares of face value of Rs. 10/- per Equity Share at an issue price of Rs. 2,349/- per Equity Share aggregating to INR 6,685.25 lacs on a preferential basis to the persons belonging to the Non-Promoter category. The Company has received an amount of INR 6,685.25 lacs against 2,84,600 Equity Shares allotted to persons belonging to the Non-Promoter category at an issue price of Rs. 2,349/- per Share.

Further on December 07, 2022 Listing Committee of the Board of Directors of the Company have issued and allotted 6,30,170 Fully Convertible Warrants at an issue price of Rs. 2,349/- per Warrant aggregating to INR 14,802.69 lacs, convertible into equivalent number of Equity Shares of face value Rs. 10/- each within a period of 13 months from the date of allotment, on a preferential basis to the persons belonging to the Non-Promoter category. The Company has received an amount of INR 3,705.40 lacs with respect to 25% upfront against 6,30,170 Fully Convertible Warrants to persons belonging to Non-Promoter category at an issue price of Rs. 2,349/- per Warrant.

57 On March 30, 2022 the Listing Committee of Board of Directors (""the Committee"") had approved for issue of three new equity shares, at its face value of Rs 10/- each, on a right basis, for every two equity shares of the Company held by the eligible shareholders on the record date. Subsequently, in its meeting held on 15 July 2022, the Committee had fixed the record date as 22 July 2022 for the purposes of determining the names of eligible shareholders to apply for right issue.Up to 78,58,594 Fully Paid-Up Equity Shares, Face Value of Rs 10/- each, for cash at a price of Rs 10/- each aggregating up to INR 785.86 lacs have been offered on a right basis to the eligible equity shareholders of the Company in the ratio of 3 (Three) right shares for every 2 (Two) fully paid-up equity shares held by the eligible shareholders on the record date, that is, on July 22, 2022 during the issue period between August 3, 2022 to August 12, 2022.Consequently, pursuant to Ind AS 33, basic and diluted earning per share for the periods presented in the audited standalone financial results have been adjusted after giving the impact for the bonus element in respect of the aforesaid rights issue.

58 In terms of Employee stock option scheme and employee stock purchase scheme of SEBI and other relevant provisions issued by the SEBI and as per terms of PTC ESOS Scheme 2019, the Compensation Committee (Nomination & Remuneration Committee) at its meeting held on August 30, 2022 approved the adjustment in the ESOP, pursuant to the rights issue in the ratio of 3 rights equity shares for every 2 fully paid-up equity shares. Pursuant to this adjustment, ESOP pool of the Company has been increased by 2,35,755 options and exercise price has also been reduced to INR 402 per share from INR 990 per share.

59 During the current period, the Compensation Committee (Nomination & Remuneration Committee) of the Company at its meeting held on June 1 1, 2022 and August 30, 2022 has approved grant of 2,255 and 1 2,500 Stock Options respectively to certain eligible employees under PTC ESOS Scheme 2019. These stock options will be vested over the period of four years (FY 2023 to FY 2026). The additional stock option expenses recognised during the quarter ended 31 March 2023 amounts to INR 25.48 lacs and year ended 31 March 2023 amounts to INR 61.11 lacs.

60 Consequent to the outbreak of Covid-19 pandemic, the Indian government had announced lockdown in March 2020 and subsequently, the lockdown was lifted by the government in a phased manner. During the year, there is no significant impact of Covid-19 and management don''t expect any further impact due to this pandemic. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these standalone audited financial statements and don''t expect any impact on the financial position of the Company.

61 The figures for the previous period have been re-classified/re-grouped wherever necessary, the impact of such restatements/ regroupings are not material to Financial Statements

Mar 31, 2021

Fair value of financial assets and liabilities measured at amortised cost

In respect of other long-term financial assets/liabilities stated above as measured at amortised cost, their carrying values are not considered to be materially different from their fair values.

(B) Financial risk management

(i) Credit risk:

Trade receivables

The Company does not hold any collateral or other credit enhancements over any of its trade receivables nor does it have a legal right of offset against any amounts owed by the Company to the counterparty.

Cash and cash equivalents and deposits with bank

Loans and advances

Investments

The Company has invested in quoted equity instruments and mutual funds. The management actively monitors the performance of the funds which affect investments. The Company does not expect the counterparty to fail to meet its obligations, and has not experienced any significant impairment losses in respect of any of the investments.

Exposure to credit risk

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at the reporting date are:

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

(b) Financial assets for which loss allowance is measured using life time expected credit losses

"Liquidity risk reflects the risk that the Company will have insufficient resources to meet its financial liabilities as they fall due. The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, cash and cash equivalents and the cash flow that is generated from operations to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure that it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities so that it does not breach borrowing limits.

As at 31 March 2021, the Company had a working capital of '' 1,422.75 lakh including cash and cash equivalents of '' 146.04 lakh. As at 31 March 2020, the Company had a working capital of '' 359.32 lakh including cash and cash equivalents of '' 151.09 lakh but excluding assets held for sale.

(a) Currency risk

Company''s exposure to price risk arises from investments made in quoted equity instruments and mutual funds and classified in the balance sheet either as fair value through OCI or at fair value through profit and loss.

To manage the price risk from quoted investments, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Sensitivity analysis

Company''s major quoted investment consists of investment in mutual funds which are measured at fair value through profit and loss. Investments made by the mutual fund includes investment in diversified instruments of Companies included in the market index. Also, the Company has made investments in quoted equity instruments which are measured at fair value through OCI.

The table below summarises the impact of sensitivity in the market index on the Company''s profit for the year with all other variables held constant and the investment moved in line with the index.

43. Employee benefits(i) Defined benefit plan Gratuity

Risk exposure:

(a) Discount rate: A decrease in discount rate in subsequent valuations can increase the plan''s liability.

(b) Mortality rate: Actual deaths and disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

(c) Investment risk: In case of funded plans, actual investment return on planned assets lower than the discount rate assumed at the last valuation date can impact the liability.

(d) Attrition: Actual withdrawals proving higher or lower than assumed withdrawals at subsequent valuations can impact plan''s liability.

The Company recognised '' 128.37 lakh (31 March 2020: '' 130.58 lakh) in respect of provident fund contributions and ESI contribution in the Statement of Profit and Loss and included in ''"''Employee benefits expenseââ in note 35. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

44. Leases

The Company has adopted Ind AS 116"Leases''''effective from 1 April 2019, as notified by the Ministry of Corporate Affairs(MCA) in the Companies (Indian Accounting Standard) Amendment Rules, 2019, using modified retrospective method. The Company''s lease agreements are short term leases and therefore they do not fall under Ind AS 116. Thus, the adoption of this standard did not have any material impact on the profit of the current year.

Company as a lessee

The Company''s Board of Directors have been identified as the Chief Operating Decision Maker (''CODM'') as they monitors the results for the purpose of making decisions about resource allocation and performance assessment and responsible for all major decisions w.r.t. preparation of budget, planning, expansion, alliance, joint venture, merger and acquisitions, and expansion of new facility. Accordingly, there is only one reportable segment for the Company which is "Engineering and allied activitiesâ, hence no specific disclosures have been made.

Entity wide disclosures:(a) Information about products and services

Revenues of '' 5162.62 lakh, '' 1992.81 lakh and '' 1417.95 lakh (31 March 2020: '' 4,903.17 lakh, '' 4,233.05 lakh and '' 1,042.82 lakh) are derived from three external customers.

47. Related party disclosures

In accordance with the requirement of Indian Accounting Standard (Ind AS) 24 "Related Party Disclosuresâ, name of the related party, related party relationship, transactions and outstanding balances including commitments where control exist and with whom transactions have taken place during the reported period are as follows:

49. Revenue from Contracts with Customers

Indian Accounting Standard 115 Revenue from Contracts with Customers ("Ind AS 115â), establishes a framework for determining whether, how much and when revenue is recognised and requires disclosures about the nature, amount, timing and uncertainty of revenues and cash flows arising from customer contracts. Under Ind AS 115, revenue is recognised through a 5-step approach:

i) Identify the contract(s) with customer;

ii) Identify separate performance obligations in the contract;

iii) Determine the transaction price;

iv) Allocate the transaction price to the performance obligations; and

v) Recognise revenue when a performance obligation is satisfied

51. Consequent to the outbreak of Covid-19 pandemic, the Indian government had announced lockdown in March 2020 and subsequently, the lockdown was lifted by the government in a phased manner. However, the second wave of Covid-19 in April 2021 has significantly increased the number of Covid cases in India, resulting in re-imposition of localised lockdowns / restrictions in various states. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these standalone financial statements and believes that the impact of Covid-19 is not material to these standalone financial statements and expects to recover the carrying amount of its assets. The impact of Covid-19 on the standalone financial statements may differ from that estimated as at the date of approval of these standalone financial statements owing to the nature and duration of Covid-19.

52. The figures of corresponding previous year have been regrouped/reclassified, wherever considered necessary, to make them comparable with those of current year figures.

Mar 31, 2018

1 Corporate information

PTC Industries Limited (the ''Company'') is a public limited company incorporated in India. The registered office and corporate office of the Company is situated in Lucknow, Uttar Pradesh, India. The Company is a leading manufacturer of metal components for critical and super critical applications. The Company''s shares are listed on the Bombay Stock Exchange (BSE) in India.

2 Application of new and revised Indian Accounting Standards ("Ind AS")

All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are authorised have been considered in preparing these financial statements.

3 Standards issued but not yet effective

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying amendments to Ind AS 12, ''Income taxes'' and also introduced new revenue recognition standard Ind AS 115 ''Revenue from contracts with customers''. These amendments rules are applicable to the Company from 1 April 2018.

Ind AS 115, "Revenue from Contracts with Customers"

Ministry of Corporate Affairs (''MCA'') has notified new standard for revenue recognition which overhauls the existing revenue recognition standards including Ind AS 18 - Revenue and Ind AS 11 - Construction contracts. The new standard provides a control-based revenue recognition model and provides a five step application principle to be followed for revenue recognition:

- Identification of the contracts with the customer

- Identification of the performance obligations in the contract

- Determination of the transaction price

- Allocation of transaction price to the performance obligations in the contract (as identified in step ii)

- Recognition of revenue when performance obligation is satisfied.

The Company is evaluating the requirements of the amendment and its impact on the financial statements

Amendment to Ind AS 12, "Income taxes"

The amendment to Ind AS 12 requires the entities to consider restriction in tax laws in sources of taxable profit against which entity may make deductions on reversal of deductible temporary difference (may or may not have arisen from same source) and also consider probable future taxable profit. The Company is evaluating the requirements of the amendment and its impact on the financial statements.

Amendment to Ind AS 21, "The Effects of Changes in Foreign Exchange Rates"

The amendment to Ind AS 21 requires establishing the date of transaction to be earlier of the date of intitial recognition of the non-monetary pre-payment asset or deferred income liability and the date on which the related item is recognized in the financial statements. The Company is evaluating the requirements of the amendment and its impact on the financial statements.

a) Additions to property, plant and equipment include exchange loss of Rs. Nil (31 March 2017- exchanqe loss of Rs. Nil; 1 April 2016- exchange loss of Rs. 18.60 lakh) capitalised during the year.

b) Refer note 20(a)"Non-current borrowings"and note 45"Assets pledged as security"for details regarding property plant and equipment which are pledged as security for obtaining long-term borrowings.

c) Refer note41(i) for disclosure of contractual commitments for the acquisition of property plant and equipment.

d) Plant and machinery includes assets amounting to Rs. 500.00 lakh acquired under the Technology Development and Demonstration Proqramme (TDDP) project which have restricted use under the project.

b) Terms and rights attached to equity shares

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

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

d) Information regarding issue of shares in the last five years

i) The Company has not issued any shares without payment being received in cash. Although, the Company had allotted in the previous years ended 31 March 2016, 1,047,813 equity shares of Rs.10/- each in lieu of the conversion of 400,000 Zero Coupon Compulsory Convertible Debentures of face value Rs.1,000/- each to Pragati India Fund Limited.

ii) There are no shares issued pursuant to contract without payment being received in cash, allotted as fully paid up by way of bonus issues and bought back during the last 5 years.

Nature and purpose of other reserves:

(a) Capital reserve was created in respect of proceeds of forfeited shares.

(b) Securities premium reserve is used to record the premium on issue of shares. The reserve is utilised in accordance with the provisions of the Act.

(c) Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn.

(d) Equity instruments through other comprehensive income:

The Company has elected to recognise changes in the fair value of certain investments in equity instruments in other comprehensive income. These changes are accumulated within this reserve within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(i) The Company had submitted a project proposal amounting to Rs.1,800.00 lakh to the Department of Scientific and Industrial Research, Ministry of Science and Technology, New Delhi, for development and commercialization of RapidCastâ¢ Technology of single piece Stainless Steel Casting of upto 5,000 kgs. The department had committed partial support as a grant of Rs.500.00 lakh out of total cost of Rs.1,800.00 lakh under the Technology Development and Demonstration Programme (TDDP) of Department of Scientific and Industrial Research (DSIR) for a project duration of 24 months vide their letter no.DSIR/TDDP/ PTCIL-41/2010-11 dated 20 September 2011. In the previous years, the project has been completed on 30 September 2016. The Company had received grant of Rs.500.00 during previous years.

(ii) The Company had submitted a project proposal amounting to Rs.5,101.87 lakh to the Global Innovation and Technology Alliance (GITA) and the Department of Heavy Industry, Ministry of Heavy Industries and Public Enterprises, for development and commercialisation of Titanium Casting with Ceramic Shelling Technology. The department has committed partial support as a grant of Rs.1,000.00 lakh out of the total cost of Rs.5,101.87 lakh under the Technology Acquisition and Fund Programme (TAFP) of Department of Heavy Industry (DHI) for a project duration of 4 years vide their letter no. DHI/GITA/TAFP/RFP Cycle 1/2016 TP0301020 dated 10 February 2017. The Company has received grant of Rs.300.00 lakh during the year. The Company has made an outlay of Rs.3,965.47 lakh during the year towards the project.

(iii) The grants received are related to assets and have been presented by setting up the grant as deferred income. The grant set up as deferred income is recognised in profit or loss on a systematic basis over the useful life of the asset.

(iv) There are no unfulfilled conditions or contingencies attached to these grant.

(iv) Refer note 47 for classification of the government grant.

Notes:

1. Term loans from banks carrying interest rate ranging from 9.75% to 11.75% p.a. are repayable on demand. Buyers''credit facility from banks carries interest rates ranging from 0.75% to 2.24% p.a.

Term loans including buyer''s credit from banks are secured by way of equitable mortgage on pari-passu basis on the land and building of Lucknow Plant 1, Lucknow Plant 2 and AMTC Plant (at village Sarai Shahajadi) and first pari-passu charge on all movable property, plant and equipment of the Company.

2. Further the term loans including buyer''s credit from banks are secured by way of personal guarantee of some of the Directors of the Company.

3. Vehicle loans carry interest rates ranging from 9.75% to 10.70% p.a and are secured by way of absolute charge on respective assets thus purchased.

Notes:

1. Working capital facilities from banks carry interest rates ranging from 8.45% to 11.45% p.a. and are repayable on demand. Buyers'' credit facility from banks carries interest 2.39% p.a.

These facilities are secured by way of first charge ranking pari-passu on the whole of the present and future current assets of the Company and further secured by second charge on equitable mortgage on pari-passu basis on the land and building of Lucknow Plant 1, Lucknow Plant 2 and AMTC Plant (at village Sarai Shahajadi) and first pari-passu charge on all movable property, plant and equipment of the Company.

2. Further the cash credit facilities and buyer''s credit facility are secured by way of personal guarantee of some of the Directors of the Company.

(d) There is no change in statutory enacted income-tax rate during the financial year. However on account of amendment in the income-tax laws, the future tax rate for Companies having turnover of Rs.250 crore or less, has been reduced to 25%. Accordingly, the deferred tax has been created on the revised tax rate.

(e) There is no temporary differences associated with investment in subsidiaries.

4 Earnings per equity share

Earnings per Share (''EPS'') is determined based on the net profit attributable to the shareholders''. Basic earnings per share is computed using the weighted average number of shares outstanding during the year. Diluted earnings per share is computed using the weighted average number of common and dilutive common equivalent shares outstanding during the year including share options, except where the result would be anti-dilutive.

5 Financial instrument and risk review

(A) Financial instruments

(i) Capital management

The Company manages its capital to be able to continue as a going concern while maximising the returns to shareholders through optimisation of the debt and equity balance. The capital structure consists of debt which includes the borrowings as disclosed in note 20(a) and 20(b); cash and cash equivalents and current investments and equity attributable to equity holders of the Company, comprising issued share capital, reserves and retained earnings as disclosed in the Statement of Changes in Equity. For the purpose of calculating gearing ratio, debt is defined as non-current and current borrowings (excluding derivatives). Equity includes all capital and reserves of the Company attributable to equity holders of the Company. The Company is not subject to externally imposed capital requirements. The Board reviews the capital structure and cost of capital on an annual basis but has not set specific targets for gearing ratios. The risks associated with each class of capital are also considered as part of the risk reviews presented to the Audit Committee and the Board of Directors.

(iii) Fair value hierarchy:

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are

(a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

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

Level 1: This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments and mutual funds that have quoted price. The fair value of equity instruments which are traded in stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: This hierarchy includes financial instruments for which inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices) have been used.

Level 3: This hierarchy includes financial instruments for which inputs used are not based on observable market data (unobservable inputs).

There have been no transfers in either direction for the years ended 31 March 2018, 31 March 2017 and 1 April 2016.

Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of short-term trade and other receivables, trade payables, cash and cash equivalents, other bank balances, other financial liabilities and other financial assets are considered to be the same as their fair values, due to their short-term nature. In respect of other long-term financial assets/liabilities stated above as measured at amortised cost, their carrying values are not considered to be materially different from their fair values.

(B) Financial risk management

In the course of its business, the Company is exposed to various risks in relation to financial instruments. The main types of risks are credit risk, liquidity risk and market risk. The Company is not engaged in speculative treasury activities but seeks to manage risk and optimise interest and commodity pricing through proven financial instruments. The use of any derivative is approved by the management, which provide guidelines on the acceptable levels of interest rate risk, credit risk, foreign exchange risk and liquidity risk and the range of hedging requirement against these risks.

(i) Credit risk:

Trade receivables

The Company primarily sells cast metal components to selected customers comprising mainly in engineering industry in India and outside India. The Company extends credits to customer in normal course of the business. The Company considers the factors such as credit track record in the market of each customer and past dealings for extension of credit to the customer. The Company monitors the payment track record of each customer and outstanding customer receivables are regularly monitored. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located at several jurisdiction and industries and operate in large independent markets. Allowances against doubtful debts are recognised against trade receivables based on estimated irrecoverable amounts determined by reference to past default experience of the counterparty and an analysis of the counterparty''s current financial position. The Company has a policy of accepting only credit worthy counter parties and defines credit limits for the customer which are reviewed periodically. The Company does not hold any collateral or other credit enhancements over any of its trade receivables nor does it have a legal right of offset against any amounts owed by the Company to the counterparty.

Cash and cash equivalents and deposits with bank

Loans and advances

Investments

The Company has invested in unquoted equity instruments of its subsidiary and also in quoted equity instrument and mutual funds. The management actively monitors the performance of the funds which affect investments. The Company does not expect the counterparty to fail to meet its obligations, and has not experienced any significant impairment losses in respect of any of the investments.

Provision for expected credit losses

(a) Financial assets for which loss allowance is measured using 12 month expected credit losses

(b) Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customers with strong capacity to meet the obligations and therefore the risk of default is negligible in respect of outstanding from customers. Further, management believes that the unimpaired amounts that are past due by more than 90 days are still collectible in full. However, the Company has recognised allowance for expected credit loss on the basis of its assessment of the credit loss from the past trend available with the Company.

(ii) Liquidity risk

Liquidity risk reflects the risk that the Company will have insufficient resources to meet its financial liabilities as they fall due. The Company''s objective is to maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company relies on a mix of borrowings, cash and cash equivalents and the cash flow that is generated from operations to meet its needs for funds. The current committed lines of credit are sufficient to meet its short to medium term expansion needs. The Company monitors rolling forecasts of its liquidity requirements to ensure that it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities so that it does not breach borrowing limits.

As at 31 March 2018, the Company had a working capital of Rs.92.29 lakh including cash and cash equivalents of Rs.109.39 lakh. As at 31 March 2017, the Company had a working capital of Rs.1,857.35 lakh including cash and cash equivalents of Rs.65.75 lakh. As at 1 April 2016, the Company had a working capital of Rs.2,977.62 lakh including cash and cash equivalents of Rs.48.09 lakh.

(ii) Market risk

The Board of Directors is responsible for setting up of policies and procedures to manage market risks of the Company. The Company exports finished goods which are denominated in the currency other than the functional currency of the Company which exposes it to foreign currency risk. In order to minimise the risk, the Company executes forwards contract w.r.t sale made in currency other than functional currency.

(a) Currency risk

The Company is exposed to foreign currency risk on certain transactions that are denominated in a currency other than entity''s functional currency, hence exposure to exchange rate fluctuations arises. The risk is that the functional currency value of cash flows will vary as a result of movements in exchange rates. Exchange rate exposures are managed within approved policy parameters utilising foreign exchange forward contracts.

(b) Interest rate risk

The Company is exposed to interest rate risk arising mainly from non-current and current borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates.

Company''s exposure to price risk arises from investment made in quoted equity instruments and mutual funds and classified in the balance sheet either as fair value through OCI or at fair value through profit and loss.

To manage the price risk from quoted investments, Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

Sensitivity analysis

Company''s major quoted investment consists of investment in mutual funds which are measured at fair value through profit and loss in the balance sheet. Investment made by the mutual fund includes investment in diversified instruments of Companies included in the market index. Also Company has made investment in quoted equity instruments which are measured at fair value through OCI.

The table below summarises the impact of sensitivity in the market index on the Company''s profit for the year with all other variables held constant and the investment moved in line with the index.

Profit for the period would increase/decrease as a result of gain/loss on investment classified as at fair value through profit and loss. Other components of equity would increase/decrease as a result of gain/loss on investment classified as at fair value through other comprehensive income.

6 Employee benefits

(i) Defined benefits plan Gratuity

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. In case of death while in service, the gratuity is payable irrespective of vesting. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is a funded plan and the Company makes contribution to recognised funds in India i.e. Life Insurance Corporation of India, Group Gratuity scheme.

Risk exposure:

(a) Discount rate: A decrease in discount rate in subsequent valuations can increase the plan''s liability.

(b) Mortality rate: Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

(c) Investment risk: In case of funded plans, actual investment return on planned assets lower than the discount rate assumed at the last valuation date can impact the liability.

(d) Attrition: Actual withdrawals proving higher or lower than assumed withdrawals at subsequent valuations can impact plan''s liability.

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate and expected salary increase rate. Effect of change in mortality rate is negligible. The above sensitivity analysis may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated.

When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (projected unit credit method) has been applied as when calculating the defined benefit obligation recognised within the balance sheet.

Expected contribution to defined benefit plans in the next year is Rs.38.39 lakh (31 March 2017: Rs.36.61 lakh; 1 April 2016: Rs.34.19 lakh).

(iii) Defined contribution plan

The Company makes fixed contribution towards provident fund and ESI to a defined contribution retirement benefit plan for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner and the Company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. Similarly, the contribution is made in ESI at a specified percentage of payroll cost. The Company recognised Rs.129.54 lakh (31 March 2017: Rs.136.23 lakh) in respect of provident fund contributions and ESI contribution in the Statement of Profit and Loss and included in Employee benefits expense in note 31. The contribution payable to these plans by the Company is at rates specified in the rules of the schemes.

7 Leases

1) In the case of Lucknow Plant-1, show-cause notices were issued by the Central Excise Department for the year under review and earlier years. The Company has given replies to all the show-cause notice/demands to the department and the appeals are pending with Appellate authorities.

Based on advice of subject matter experts, the management is of the opinion that above matters will be allowed in favour of the Company and hence no provision is required for the above.

8 Segment information

The Company''s Board of Directors have been identified as the Chief Operating Decision Maker (''CODM'') as they monitors the results for the purpose of making decisions about resource allocation and performance assessment and responsible for all major decision w.r.t. preparation of budget, planning, expansion, alliance, joint venture, merger and acquisitions, and expansion of new facility.

Accordingly, there is only one reportable segment for the Company which is ''''Engineering and allied activitiesâ, hence no specific disclosures have been made.

Entity wide disclosures:

(a) Information about products and services

(b) Information about geographical area

The Company''s sales to its customers includes sales to customers which are domiciled in India and outside India. Below is the details of Company''s revenue from customers domiciled in India and outside India:

Revenues of Rs.3,108.49 lakh and Rs.1,519.31 lakh (31 March 2017: Rs.2,855.40 lakh and Rs.1,667.33 lakh) are derived from a two external customers.

(a) includes salary, commission, sitting fees and any other perquisites on accrual basis.

(b including contribution to provident fund and any other benefit

(c ) As the liability for gratuity and leave encashment are provided on actuarial basis for the Company as a whole, amounts accrued pertaining to key managerial personnel are not included above.

9 First time adoption of Ind AS

These standalone financial statements, for the year ended 31 March 2018, are the first financial statements prepared by the Company in accordance with Ind-AS. For periods up to and including the year ended 31 March 2017, the Company prepared its standalone financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (''Indian GAAP'' or ''previous GAAP''). Accordingly, the Company has prepared financial statements which comply with Ind-AS applicable for periods ended 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at 1 April 2016, the Company''s date of transition to Ind-AS. This note explains the principal adjustments made by the Company in restating its previous GAAP financial statements, including the balance sheet as at 1 April 2016 and the financial statements as at and for the year ended 31 March 2017.

The Company has applied Ind AS 101 in preparing these first financial statements. The effect of transition to Ind AS on equity, total comprehensive income and reported cash flows are presented in this section and are further explained in the notes that accompany the tables.

Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

Ind AS optional exemptions:

(a) Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning

liabilities. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

(b) The Company has availed the optional exemption under Ind AS 101 for the continuance of accounting of capitalisation of foreign currency exchange differences as part of eligible assets arising from the translation of the long-term foreign currency monetary items existing on or before 31 March 2017.

(c) Appendix C to Ind AS 17, Leases, requires an entity to assess whether a contract or arrangement contains a lease. As per Ind AS 17, this assessment should be carried out at inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements based on conditions in place as at the date of transition.

(d) The Company has availed the optional exemption under Ind AS 101 for the continuance of the carrying value of Investments in subsidiaries same as under the previous GAAP Ind AS mandatory exceptions:

(a) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP

(b) De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the derecognition provisions of Ind AS 109 prospectively, for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the derecognition requirements in Ind AS 109 retrospectively, from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions.

The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS. The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

Notes:

(i) Under previous Indian GAAP, transaction costs incurred in connection with borrowings are amortised upfront and charged to the statement of profit and loss for the period. Under Ind AS, transaction costs are included in the initial recognition amount of financial liability and charged to the statement of profit and loss using the effective interest method. The above adjustment resulted into increase in retained earning by Rs.2.05 lakh with corresponding decline in borrowing by Rs.2.05 lakh as at 1 April 2016. During the year ended 31 March 2017, interest expenses of Rs.2.05 lakh has been charged off into the statement of profit and loss with a corresponding increase in borrowing by same amount.

(ii) Under previous Indian GAAP, non-current investments were measured at cost less any diminution in value of investments other than temporary and current investments were measured at cost or market value, which ever is lower. However ,under IndAS, these financial assets have been measured at fair value through profit or loss or through other comprehensive income. Company has classified its investment in mutual fund as fair value through profit and loss and investment in equity instruments as fair value through other comprehensive income. The above adjustment has resulted in the increase in retained earning by Rs.5.09 lakh with a corresponding increase in the value of investment. During the year ended 31 March 2017, fair value gain through profit or loss amounting to Rs.0.09 lakh and fair value loss amounting to Rs.0.13 lakh has been credit/charged to the statement of profit and loss with a corresponding credit/debit to the value of investment.

(iii) Under previous Indian GAAP, government grant received by the Company has been credited to the capital reserve in the nature of promoter contribution. Under Ind AS, Government grants related to assets, including non-monetary grants at fair value, shall be presented in the balance sheet by setting up the grant as deferred income. Company has reclassified the government grant from its equity and presented the same as deferred income.

(iv) Under the previous Indian GAAP, the remeasurement gains/losses arising on defined benefit plans were being charged to the statement of profit and loss. However, under Ind AS the same is recognised in other comprehensive income.

10 The Company has wound up its only non-material subsidiary, M/s Modrany & PTC Piping Systems Private Limited, during the year ended 31 March 2018 and as at 31 March 2018 does not have any other component to be consolidated. Since the impact of the erstwhile subsidiary (upto the date of its disposal) is immaterial to the Company''s financial results from the perspective of all periods presented in these financial statements, the consolidated financial statements of the Company are not being furnished.

11 The Company has written to Ind AS Transition Facilitation Group (ITFG) and Expert Advisory Committee (EAC) of the Institute of Chartered Accountants of India in respect clarification on classification of government grant received by the Company. The Company is awaiting response from the above has classified the government grant as a mezzanine item between equity and liabilities in the Balance Sheet.

12 Revenue from operations for the year ended 31 March 2018 is net of Goods and Service Tax (GST) which is applicable from 1 July 2017, however, revenue for the periods upto 30 June 2017 is net of value added tax but gross of excise duty. Accordingly, revenue for the year ended 31 March 2018 is not comparable with the previous periods presented in these financial statements.

Mar 31, 2016

b) Terms and rights attached to equity shares

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

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

d) Information regarding issue of shares in the last five years

i) The Company has not issued any shares without payment being received in cash. Although, the Company had allotted in the previous year 10,47,813 equity shares of Rs. 10/- each in lieu of the conversion of 4,00,000 Zero Coupon Compulsory Convertible Debentures of face value Rs.1,000/-each to Pragati India Fund Limited.

ii) There are no shares issued pursuant to contract without payment being received in cash, allotted as fully paid up by way of bonus issues and bought back during the last 5 years.

a) i) Capital reserve includes grant received under the Technology Development and Demonstration Programme of Department of Scientific and Industrial Research (DSIR) amounting to Rs. 4,00,00,000

ii) The Company has submitted a project proposal amounting to Rs. 18,00,00,000 to the Department of Scientific and Industrial Research, Ministry of Science and Technology, New Delhi, for development and commercialization of RapidCastâ¢ Technology of single piece Stainless Steel Casting of up to 5,000 kgs. The department has committed partial support as a grant of Rs.5,00,00,000 out of total cost of Rs. 18,00,00,000 under the Technology Development and Demonstration Programme (TDDP) of Department of Scientific and Industrial Research (DSIR) for a project duration of 24 months vide their letter no.DSIR/TDDP/PTCIL-41/2010-11 dated September 20, 2011. In the current year, the Company received further extension by DSIR up to September 30, 2016. The Company had received grant of Rs. 4,00,00,000 during previous years and incurred the expense of Rs. 1,72,93,442 during the year towards the project.

Notes:

(a) Term loans are secured by way of:

i) Equitable mortgage on pari-passu basis on the land and building of Lucknow Plant 1, Lucknow Plant 2 and AMTC Plant(at villageSarai Shahajadi) and first pari-passu charge on all movable fixed assets of the Company.

ii) Personal guarantee of some directors.

(c) Vehicle loans from Tata Capital Financial Services Limited are secured by way of absolute charge on specific assets purchased under tine scheme and repayable within a period of 36 months. Entire loan is repayable up to February, 2018.

(d) Rate of interest

The Company''s long term borrowings from banks and others have an effective weighted average rate of 10.15 % p.a. (previousyear4.69% p.a.) calculated using interest rates effective as on March 31,2016forthe respective borrowings.

Short term borrowings are secured by way of:

i) First charge ranking pari-passu on the whole of the present and future current assets of the Company.

ii) Second charge on equitable mortgage on pari-passu basis on the I and and building of Lucknow Plant 1, Lucknow Plant 2 and AMTC Plant (at village Sarai Shahajadi) and first pari-passu charge on all movable fixed assets of the Company.

iii) Personal guarantee of some directors.

Based on the information available with the Company, no principal or interest is payable to micro, small and medium enterprises at the balance sheet date. Further, no interest during the year has been paid or was payable in this respect. The above disclosure has been determined to the extent such parties have been identified on the basis of information available with the Company.

a) Additions to fixed assets include exchange loss of Rs. 20,86,237 (previous year exchange loss of Rs. 1,07,34,090) capitalized during the year.

b) The Company has reassessed the useful life of fixed assets in accordance with the guidelines under Schedule II of the Companies Act, 2013 with effect from 1st April 2014, resulting into adjustment of Rs. 1,57,81,483 (net of deferred tax) to the opening balance of retained earnings and addition in depreciation expense for the current year by Rs. 1,01,54,753.

1 The Company has entered into operating leases for its guest houses and employees'' residences that are renewable on a periodic basis and are cancellable at Company''s option. Total lease payments recognized in the statement of profit and loss with respect to aforementioned premises is Rs. 11,32,838 (previous year Rs. 23,64,065 )

Notes:

a) In the case of Lucknow Plant-1, show-cause notices were issued by the Central Excise Department for the year under review and earlier years. The Company has given replies to all the show-cause notice/demands to the department and the appeals are pending with Appellate authorities.

b) An appeal for the financial year 2013-14 is pending at Tribunal, Commercial Tax against demand for Rs. 15,90,000. The Company has deposited Rs.5,96,250 against the demand.

Based on advice of subject matter experts, the management is of the opinion that above matters will be allowed in favour of the Company and hence no provision is required for the above.

2. EMPLOYEE BENEFITOBLIGATIONS

Defined contribution plans

Amount of Rs.1,22,84,040 (previous year - Rs.1,22,87,311 ) has been recognized as an expense in respect of contribution for Provident Fund and Employee State Insurance Fund deposited with the government authorities.

Defined benefit plans

The Company makes contribution towards gratuity to a defined contribution retirement benefits plan for qualifying employees. The Company has taken policy with Life Insurance Corporation of India to provide for payment of retirement benefits to vested employees. The present value of obligation is determined based on actuarial valuation.

The following table sets forth the status of the Gratuity Plan of the Company and the amounts recognized in the Balance Sheet and Statement of Profit and Loss.

The expense for gratuity in respect of the current year and previous year have been included under Salaries, wages and bonus.

The present value of the defined benefit obligation, the fair value of the plan assets and the surplus or deficit in the plan arising on the plan liabilities and the plan assets.

Salary escalation rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

Investment details of plan assets:

The details of investment maintained by Life Insurance Corporation are not available with the Company and have not been disclosed.

3. Segment Reporting

Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India which requires disclosure of information on the basis of reportable segment. The Company recognizes manufacturing of stainless steel castings, alloy steel castings, ,on alloy steel castings, steel structures and assembly items as its primary segment.

Business segment has been disclosed as the primary segment. The Company is organized into two business segments namely engineering division and power division.

4. Derivative instruments

The Company uses forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purposes.

5. Previous year figures have been regrouped/reclassified wherever considered necessary to make them comparable with those of the current year.

Mar 31, 2015

A) Terms and rights attached to equity shares

The Company has only one class of eguity shares having par value ofRs. 10 per share. Each holder of eguity shares is entitled to one vote per share.

The Company declares and pays dividend in Indian rupees.The dividend proposed by the Board of Directors is subject to theapproval oftheshareholdersintheensuing Annual General Meeting.

In theeventofliguidation of the Company, the holders of eguity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of eguity shares held by the shareholders.

b) The Company has submitted a project proposal amounting to Rs. 18,00,00,000 to the Department of Scientific and Industrial Research, Ministry of Science and Technology, New Delhi, for development and commercialization of RapidCastÂTechnology of single piece Stainless Steel Casting of upto 5,000 kgs.The department has committed partial support as a grant of Rs. 5,00,00,000 out of total cost of Rs. 18,00,00,000 under the Technology Development and Demonstration Programme (TDDP) of Department of Scientific and Industrial Research (DSIR) fora project duration of 24 months vide their letterno.DSIR/TDDP/PTCIL-41/2010-11 dated September 20,2011 and after that this was extended by DSIR upto September 8,2014 vide their letter dated December 23,2013. This has been further extended by DSIR up to September 30, 2015. The Company had received grant ofRs. 4,00,00,000 during previous years and incurred the expense of Rs. 82,29,279 during theyeartowards the project.

(c) Term loansfrom StateBankoflndia aresecured byway of:

i) Equitable mortgage on pari-passu basis on the land d building of Lucknow Plant 1, Lucknow Plant 2, land atVill- Bani d Vill-Sarai Shahajadi, Pargana-Bijnor and land at Surajbari (Windmill) and first pari-passu charge on all movable fixed assets of the Company.

ii) Personal guarantee of four directors.

C) Vehicle loans from Tata Capital financial Services Limited are secured by way of absolute charge on specific assets

purchased under tine scheme and repayable within a period of 36 months. Entire loan is repayable up to Lebruary,2018.

(d) Compulsory Convertible Debentures (CCDs)

Pursuant to the resolution passed by the shareholders of the Company at the Annual General Meeting held on 16 July 2013, the Company had issued Zero Coupon Compulsory Convertible Debentures of face value of Rs. 1,000 each for a consideration of Rs. 40,00,00,000 to Pragati India Lund Limited and PI International LP through preferential issue. Further, 1,39,130 CCDs were converted in to 3,64,456 fully paid equity shares by the Board of Directors in their meeting held on April 23, 2014 in first tranche and 2,60,870 CCDs were converted in to 6,83,357 fully paid equity shares by the Board of Directors in their meeting held on November 8, 2014 in second tranche during the financial year.

(e) Rate of interest

The Company's long term borrowings from banks and others have an effective weighted average rate of 4.69% p.a. (previous year 4.72% p.a.) calculated using interest rates effective as on March 31,2015 for the respective borrowings.

a) Short term borrowing from State Bank of India and Punjab National Bank are secured by way of:

i) First charge ranking pari-passu on the whole of the present and future current assets of the Company.

ii) Second charge on eguitable mortgage on pari-passu basis on the land & building of Lucknow Plant 1, Lucknow Plant2, landatVill-Bani andVill-Sarai Shahajadi and landatSurajbari (Windmill).

iii) Personal guarantee of four directors.

Based on the information available of the Company, no principal or interest is payable to micro, small and medium enterprises at the balance sheet date. Further, no interest during the year bias been paid or was payable in this respect. The above disclosure has teen determined to the extent such parties have been identified on the basis of information available with the Company.

2 The Company has entered into operating leases for its guest houses and employees' residences that are renewable on a periodic basis and are cancellable at Company's option. Total lease payments recognized in the statement of profit and loss with respect to aforementioned premises is Rs 23,64,065 (previous year Rs. 28,1

2.1 Contingent Liabilities and Commitments (A) Contingent Liabilities

Particulars As at As at March 31, 2015 March 31, 2014

(i) In respect of non fund-based working capital facilities from banks:

Bank guarantees 12,20,000 2,57,44,887

Letter of credit 10,73,07,910 99,17,040

(ii) Disputed demands for excise duty and service tax (refer note a below) 1,36,170 4,69,23,008

(iii) Disputed demands for sales tax (refer note b below) 9,93,750 -

(iv) Disputed demands for income tax - 10,02,053

rtes:

a) In the case of Lucknow Plant-1, show-cause notices were issued by the Central Excise Department for the year under review and earlier years. The Company has given replies to all the show-cause notice/demands to the department and the appeals are pending with Appellate authorities.

b) Assessment for the financial year 2011-12 for sales tax has been completed. An appeal for the financial year 2013-14 is pending at Tribunal, CommercialTax against demand for Rs. 15,90,000 and the Company has deposited as a security for Rs. 5,96,250.

Based on advice of subject matter experts, the management is of the opinion that above matters will be allowed in favour of the Company and hence no provision is required for the above.

2 2 Employee Benefit Obligations Defined contribution plans

Amount of Rs. 1,22,87,311 (previous year - Rs. 1,04,03,112 ) has been recongnized as an expense in respect of contribution for Provident Fund and Employee State I nsurance Fund deposited with the government authorities.

Defined benefit plans

The Company makes contribution towards gratuity to a defined contribution retirement benefits plan for qualifying employees. The Company has taken policy with Life Insurance Corporation of India to provide for payment of retirement benefits to vested employees. The present value of obligation is determined based on actuarial valuation.

The following table sets forth the status of the Gratuity Plan of the Company and the amounts recognised in the Balance Sheet and Statement of Profit and Loss.

Salary escalation rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

Investment details of plan assets:

The details of investment maintained by Life Insurance Corporation are not available witt the Company and have not been disclosed.

2.3 Segment Reporting

Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accounts of India which reguires disclosure of information on the basis of reportable segment. The Company recognizes manufacturing ofstainless steel castings, alloy steel castings, non alloy steel castings, steel structures and assembly items as its primary segment.

a) Business segment has been disclosed as the primary segment. The Company is organised into two business segments namely engineering division and power division.

b) Secondary segment reporting is performed on the basis of location of all customers. The location of customers is classified into two geographic segments namely in India and outside India.

2.4 Related Party Disclosure:

The disclosure of transactions with the related party as defined in the Accounting Standard are given below:

Key Management Personnel ("KMP") of the Company

1. Mr. Satish Chandra Agarwal

2. Mr. Sachin Agarwal

3. Mr. PriyaRanjan Agarwal

4. Mr.AlokAgarwal

Entities controlled by KMPsand/or their relatives

1. Mapple Commerce Private Limited

2. e.SoftTechnologies Limited

3. Nirala Merchants Private Limited

4. PTC Foundation

Subsidiary company

1. Modrany Power and PTC Piping Systems Private Limited

Relatives of Key Management Personnel 1. Mrs. Saroj Agarwal

2. Mrs. Smita Agarwal

3. Ms. Kanchan Agarwal

4. Mrs.AnshooAgarwal

5. Mrs. Reena Agarwal

Mar 31, 2014

1. SHARE CAPITAL

a) There is no movement in equity share capital and preference share capital during the current year and the previous year.

b) Terms and rights attached to equity shares

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

The Company declares and pays dividend in Indian rupees.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

c) Share capital includes 27,60,000 equity shares of Rs10 each allotted as fully paid bonus shares in the year 1993-94 by capitalisation of general reserve and revaluation reserve.

2. Compulsory Convertible Debentures (CCDs)

Pursuant to the resolution passed by the shareholders of the Company at the Annual General Meeting held on 16 July 2013, the Company has issued Zero Coupon Compulsory Convertible Debentures of face value of Rs 1,000 each for a consideration of Rs 40,00,00,000 to Pragati India Fund Limited and PI International LP through preferential issue. Further, 1,39,130 CCD's were converted in to 3,64,456 fully paid equity shares by the Board of Directors in their meeting held on April 23,2014.2,60,870 CCD's are outstanding for conversion and shareholders' permission is being sought for extension oftenure of balance CCD's from 12 months to 18 months as per SEBI (ICDR) Regulations, 2009.

3. The Company has entered into operating leases for its guest houses and employees' residences that are renewable on a

periodic basis and are cancellable at Company's option.Total Lease payments recognized in the statement profit and loss with respect to aforementioned premises is Rs 28,1 (previous year Rs. 23,40,166)

4. Contingent Liabilities and Commitments (A) Contingent Liabilities

Particulars As at As at March 31 March 31 2014 2013

(i) In respect of non fund-based working capital facilities from banks:

Bank guarantees 2,57,44,887 84,20,000

Letter of credit (Inland/Foreign) 99,17,040 1,85,22,342

(ii)Contingent Liability in respect of factoring of receivables with IFCI - 1,02,95,799

Factors Limited.

(iii)Disputed demands for excise duty and service tax (refer note a below) 4,69,23,008 4,61,09,256

(iv) Disputed demands for income tax (refer note b below) 10,02,053 -

Notes:

a) In the case of Lucknow Plant-1, show-cause notices were issued by the Central Excise Department for the year under review and earlier years.The Company has given replies to all the show-cause notice/demands to the department and the appeals are pending with Appellate authorities.

b) Assessment for the assessment year 2010-11 has been done by assessing officer and penalty has been determined against which the Company has filed appeal before the CIT(A) against the order u/s 271(1)(c) and application u/s 154.

Based on advice of subject matter experts, the management is of the opinion that above matters will be allowed in favour of the Company and hence no provision is required for the above.

(B) Commitments

Particulars As at As at March 31 March 31 2014 2013

Estimated amount of contracts remaining to be executed on capital account 4,08,16,765 2,93,99,645

and not provided for (net of advance)

5. Employee Benefit Obligations

Defined Contribution Plans

Amount of rs 1,04,03,112 (previous year - Rs 1,02,47,979) has been recongnized as an expense in respect of contribution for Provident Fund and Employee State Insurance Fund deposited with the government authorities.

Defined Benefit Plans

The Company makes contribution towards gratuity to a defined contribution retirement benefits plan for qualifying employees. The Company has taken policy with Life Insurance Corporation of India to provide for payment of retirement benefits to vested employees.The present value of obligation is determined based on actuarial valuation.

Salary Escalation Rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

Investment detaiIs of Plan Assets:

The details of investment maintained by Life Insurance Corporation are not available with the Company and have not been disclosed.

Note:The previous year includes gratuity liability of discontinued operations and excludes gratuity on account of the Chairman.

6. Segment Reporting

Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accounts of India which reguires disclosure of information on the basis of reportable segment. The Company recognizes manufacturing of stainless steel castings, alloy steel castings, non alloy steel castings and steel structures and assembly items as its primary segment.

7. Related Party Disclosure:

As per Accounting Standard (AS-18) on related party disclosure issued by the Institute of Chartered Accountants of India, the disclosure of transactions with the related party as defined in the Accounting Standard are given below:

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

Enterprises controlled by directors/relatives

1. Mapple Commerce Private Limited

2. Precision Overseas Private Limited

3. Homelike Motels and Resorts Private Limited

4. e.Soft Technologies Limited

5. PTC Energas Flow Private Limited

6. Nirala Merchants Private Limited

Subsidiary company

1. Modrany Power and PTC Piping Systems Private Limited

Key Management Personnel of the Company

1. Mr. Satish Chandra Agarwal

2. Mr. Sachin Agarwal

3. Mr. PriyaRanjan Agarwal

4. Mr.AlokAgarwal

5. Mr. Narayanan Shadagopan (w.e.fJuly24,2013)

6. Mr.Arvind Agarwal (till March 31,2013)

Relatives of Key Management Personnel

1. Mrs. Saroj Agarwal

2. Ms. Kanchan Agarwal

3. Mrs. Smita Agarwal

4. Mrs.Anshoo Agarwal

5. Mrs. Reena Agarwal

6. Mr. Manu Agarwal (till May,2013)

7. Mrs. Kiran Prasad (till September, 2012)

8. Mrs. Anita Agarwal (till March 31,2013)

8. Discontinuing Operations

The shareholders of the Company have approved the sale of "Bhiwadi Unit" through Postal Ballot on 21st April, 2012.The Board of Directors of the Company, at their meeting held on 15th February, 2013 approved the sale of the Bhiwadi Unit, hereinafter referred to as the "Bhiwadi Unit" to Precon Technology Castings Limited (hereinafter referred to as "PreCon").The Bhiwadi Unit with its respective assets and liabilities, was transferred to PreCon on a 'slump sale" basis as a going concern, for a cash consideration of Rs. 3,50,00,000 to be adjusted for any net working capital changes as on closing date, i.e.. March 31,2013 and accordingly, the 'Bhiwadi Unit' is considered as a 'Discontinued Operation' as at March 31,2013.

9. During the year, the Company has entered into a Joint Venture Agreement with Modrany Power, leading Czech producer and supplier of piping systems for the power industry. Modrany Power & PTC Piping Systems Private Limited has been incorporated in India as a wholly owned subsidiary of PTC Industries Limited during the year to jointly acquire knowledge and bid and execute projects for high pressure piping systems and allied equipments.

10. Previous year figures have been regrouped/rearranged wherever considered necessary to make them comparable with those of the currenty ear.

Mar 31, 2013

(A) Terms / rights attached to equity shares

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

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Board Meeting.

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

The company has submitted a project proposal amounting to Rs.1800 lakhs to the Department of Scientific & Industrial Research, Ministry of Science & Technology New Delhi, for development and commercialization of Rapid Cast Technology of single piece Stainless Steel Casting of upto 5000 Kgs. The department has committed partial support as a grant of Rs.500 lakhs out of total cost of Rs.1800 lakhs under the Technology Development and Demonstration Programme (TDDP) of Department of Scientific and Industrial Research (DSIR) for a project duration of 24 months vide their letter no.DSIR/TDDP/PTCIL-41/2010-11 dated 20th September, 2011. The company has received the second installment of Rs.100 lakhs (Total of Rs 300 lakhs including first installment of Rs 200 lakhs received during the previous year) during the year and incurred the expense of Rs. 416.43 lakhs during the year towards the project.

SECURITIES

(a) Term loans from State Bank of India & Punjab National Bank are secured by way of:

-First charge ranking pari-passu on the whole of the present and future fixed assets of the Company.

-Personal guarantee of five directors, pari-passu charge on the whole of the present and future current assets of the Company. -Secured by the additional security of residential house at Lucknow owned by a director (mortgaged with SBI).

-Vehicle loans from Tata Capital Limited are secured by way of absolute charge on specific assets purchased under the scheme and repayable within a period of 36 months as per the repayment schedule.

1.1 Scientific Research & Development capital expenditure pertaining to the Company''s Research & Development Division aggregated to Rs. 11,73,089 as Capital expenditure and Rs. 84,89,226 as revenue expenditure (previous year Rs. 32,24,104 as Capital Expenditure and Rs. 1,21,89,853 as revenue expenditure charged in respective heads)

1.2 The amount of excise duty on finished goods not cleared from the factory as at 31 March, 2013, estimated on the basis of sales price of goods / excise rates prevailing on the said date was Rs. 4,886 (previous year Rs. 13,97,829). This has not been provided for in the accounts and hence not included in the valuation of such goods. Non-provision of this liability has no affect on the profit for the year.

AS AT AS AT 31 MARCH, 2013 31 MARCH, 2012

2.1 Contingent Liabilities (to the extent not provided for)

(i) Session Court, Faridabad has given a decision against the Company on a case filed by a supplier amounting to Rs.1,07,680 (previous year Rs.1,07,680 ). Against this, the complainant has claimed Rs. 1,50,000 (previous year 1,50,000) alongwith the interest @12% p.a. from the date of the suit i.e. 09.01.1997. This Case pertained to the Bhiwadi Unit of the Company which has been sold under Slump Sale w.e.f. 31.3.2013 hence no further provision for interest has been made : - 1,97,084

(ii) In respect of non fund-based working capital facilities from State Bank of India: -

Counter guarantees furnished by the Company against 84,20,000 29,32,000 various guarantees given by the bank.

Letter of credit (Inland/Foreign) opened by the bank 1,85,22,342 29,40,382

(iii) Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advance (as certified by a Director) 2,93,99,645 94,44,182

(iv) Contingent Liability in respect of factoring of receivables with IFCI Factors Limited. 1,02,95,799 4,87,84,795

(v) In the case of Lucknow Plant-1, show-cause notices were issued by the Central Excise Department for the year under review and earlier years Against Cenvat credit 4,60,95,098 4,24,67,915

Against Service Tax 14,158 14,158

The Company has given replies to all the show-cause notice/demands to the department and the appeals are pending with Appellate authorities.

(vi) Show Cause Notice/Demands have been raised by the Central Excise Department against Cenvat credits claimed by the Bhiwadi Plant on inputs and capital goods upto 31 March, 2012. The Company has given its replies to all Show Cause Notices the Department and the same are under consideration. - 58,921

(vii) Income Tax Case Status:-

Assessment Status as at 31.03.2013 year

2011-12 The Income Tax Department has issued scrutiny notice u/s 143(2), Case is pending with ACIT

2008-09 ITAT Appeal has been filled on dt 24.01.2013 against the order passed by CIT(A)

2007-08 The Order of CIT (A) has been received and application on dt 30.08.2011 for CIT(A) order effect is pending

2005-06 The Order of ITAT has been received and application on dt 19.04.2011 for ITAT order effect is pending

2004-05 The Income Tax department had ordered Special Audit u/s 142(2A) of the Income Tax Act, 1961. Pursuant to the Audit, the department has issued demand notice for Rs. 14,60,700.

Against the said order, the Company has deposited Rs. 10,00,000 and balance amount has been adjusted from the refund of the AY 2006-07, however an appeal with CIT (A) has been decided but the effect of appeal is still pending at income tax department. The Income Tax assessments of erstwhile Ashman Tool Engineers Private Limited (ATEPL) and Sunika Alloys Private Limited (SAPL) has been completed up to the pre-amalgamation period i.e. A.Y. 1997- 98. Further an order under section 154 of the Income Tax Act, 1961 was passed on 25-06- 2004 for the assessment year 1997-98 in case of erstwhile M/s Ashman Tool Engineers Private Limited subsequently merged with the Company. A demand of Rs. 23,592 towards the charge of interest was raised against the Company. The Company has deposited Rs. 15,028 in compliance to notice of demand.

(viii) Sales Tax Case Status

Assement Year Status as at 31.03.2013

2009-10 The Sales Tax assessment of Lucknow Plant-1 & 2 has been completed*.

2008-09 The Sales Tax assessment of Mehsana Plant has been completed.

2010-11 The Sales Tax assessment of Bhiwadi Plant has been completed.

Note: *Appeals are pending with appelate authorities on different issues filed by us, The Company has given all replies of Notices issued by the department on time to time, security money has also been deposited by the company against the appeal.

(ix) Department of Scientific & Industrial Research, Ministry of Science & Technology New Delhi, has accepted the project proposal of the company for development and commercialization of Rapid Cast Technology of single piece Stainless Steel Casting of upto 5000 Kgs. The department has committed partial support in the form of a grant of Rs. 500 Lakhs out of total cost of Rs. 1800 Lakhs. In lieu of this grant, the company shall be obliged to pay to DSIR annual royalties on the monies actually disbursed by DSIR to the project amounting to 1.3 times the grant. This will be for a period of 5 years from the start of the production of the product for captive use or commercial sale (whichever is earlier) from the pilot/commercial or new producing plant installed on the basis of the result of the TDDP project.

2.2 The Wealth Tax return of the Company has been filed upto the assessment year 2012-2013.

2.3 The Company''s recognition as an EXPORT HOUSE is valid upto 31.03.2014.

2.4 The Company has taken residential accommodation for its employees on operating lease, with the option of renewal at the end of the lease. Minimum lease payments charged during the year to the Profit and Loss Account aggregate to Rs. 23,40,166 (previous year Rs. 25,59,967).

2.5 The Company has been permitted by the Gujarat Energy Development Agency (GEDA) to set up a Wind Farm of 0.75 M.W. in district Kutch Gujarat in accordance with the provisions of the Wind Power Generation Policy, 2002 issued under the Resolution No. vide G.R. EDA-10-2001-3054-BC Part-(II) of the Government of Gujarat dated 20 June, 2002. The Company has opted to wheel the energy generated at the Wind Farm to its own other manufacturing unit at Mehsana, North Gujarat. An agreement has been executed between the Company, GEDA and Gujarat Energy Transmission Corporation Limited (GETCO) whereby a tripartite Wheeling and Banking agreement has been made. During the year, income of Rs. 59,68,225 (previous Rs. 48,10,388) accrued through electricity generation at the Wind Farm which will be adjusted in terms of the aforesaid tripartite agreement.

2.6 Employee Benefit Obligations

Defined Contribution Plan

An amount of Rs. 54,92,837 for the year ended 31 March, 2013 has been recognized as an expense in respect of contribution for Provident fund and Employees State Insurance Fund deposited with the Government Authorities.

Defined Benefit Plans

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days of total basic salary last drawn for each completed year of service. Gratuity is payable to all eligible employees of the company on retirement, separation, death or permanent disablement, in terms of the provisions of The Payment of Gratuity Act,1972. The following tables sets forth the status of the Gratuity Plan of the Company and the amounts recognised in the Balance Sheet and the Profit and Loss Account.

Discount Rate:

The discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligations.

Salary Escalation Rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

Investment details of Plan Assets:

The Plan Assets are maintained with Life Insurance Corporation-Group Gratuity Scheme. The details of investment maintained by Life Insurance Corporation are not available with the company and have not been disclosed.

2.7 During the year 2012-2013 company has captively consumed 1.004 M.T. (previous year 2.238 M.T.) of casting for assembly production.

2.8 SEGMENT REPORTING

Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accounts of India which requires disclosure of information on the basis of reportable segment. The Company recognizes manufacturing of Stainless Steel Castings, Alloy Steel Castings, Non Alloy Steel Castings and Steel Structures as its primary segment while the Company has presented secondary segment reporting on the basis of geographical location of customers.

2.9 Discontinuing Operations

The shareholders of the Company have approved to sale of "Bhiwadi Unit" through Postal Ballot on 21st April, 2012. The Board of Directors of the Company, at their meeting held on 15th February, 2013 approved the sale of the Bhiwadi Unit, hereinafter referred to as the "Bhiwadi Unit" to Precon Technology Castings Limited (hereinafter referred to as "PreCon"). The Bhiwadi Unit with its respective assets and liabilities, was transferred to PreCon on a ''slump sale'' basis as a going concern, for a cash consideration of Rs. 3,50,00,000/- to be adjusted for any net working capital changes as on closing date, ie. 31 March 2013.

In this connection, the company had signed the Slump Sale Agreement dated 25th March, 2013. The advance money of Rs. 1,00,00,000 against consideration towards Bhiwadi Unit was received from PreCon on 25th March, 2013. The balance consideration of Rs. 2,50,00,000 has been received on 6th June 2013. The Loss on account of the above transaction is disclosed as an exceptional item in the Profit and Loss Account.

Accordingly, the ''Bhiwadi Unit'' is considered as a ''Discontinued Operation'' w.e.f. 31.03.2013 in terms of Accounting Standard 24 on ''Discontinued Operations'' (AS-24)

Notes:

1. The above cash flow statement has been prepared under the ''Indirect Method'' as set out in the Accounting Standard-3 on Cash Flow Statements as notified under Section 211(3C) of the Companies Act, 1956.

2. Previous year''s figures have been regrouped and reclassified to conform to those of the current year (including discontinued operations).

Mar 31, 2012

1.1 Scientific Research & Development capital expenditure pertaining to the Company''s Research & Development Division aggregated to Rs. 32,24,104 as Capital expenditure and Rs. 1,21,89,853 as revenue expenditure ( previous year Rs. 1,32,20,043 as Capital Expenditure and Rs. 1,69,70,837 as revenue expenditure charged in respective heads)

2.2 The amount of excise duty on finished goods not cleared from the factory as at 31 March, 2012, estimated on the basis of sales price of goods /excise rates prevailing on the said date was Rs. 13,97,829 (previous year Rs. 88,996). This has not been provided for in the accounts and hence not included in the valuation of such goods. Non-provision of this liability has no affect on the profit for the year.

AS AT AS AT 31 MARCH, 2012 31 MARCH, 2011

2.3 Contingent Liabilities (to the extent not provided for)

(i) Session Court, Faridabad has given a decision against the Company on a case filed by a supplier amounting to Rs.1,07,680 (previous year Rs.1,07,680). Against this, the complainant has claimed Rs. 1,50,000 (previous year 1,50,000) alongwith the interest Â©12% p.a. from the date of the suit i.e. 09.01.1997.The Company is exploring avenues to settle the issue out of court. Interest for the period 09.01.1997 to 31.03.2012: 1,97,084 1,84,162

(ii) In respect of non fund-based working capital facilities from State Bank of India: - -

Counter guarantees furnished by the Company against 29,32,000 45,62,370 various guarantees given by the bank

Letter of credit (Inland/Foreign) opened by the bank 29,40,382 1,43,56,667

(iii) Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advance (as certified by a Director). 94,44,182 81,55,553

(iv) Contingent Liability in respect of factoring of receivables with IFCI Factors Limited. 4,87,84,795 6,94,03,404

(v) In the case of Lucknow Plant-1, show-cause notices were issued by the Central Excise Department for the year under review and earlier years

Against Cenvat credit 4,24,67,915 4,25,67,812

Against Service Tax 14,158 14,158

The Company has given replies to all the show-cause notice/demands to the department and the appeals are pending with Appellate authorities.

(vi) Show Cause Notice/Demands have been raised by the Central Excise Department against Cenvat credits claimed by the Bhiwadi Plant on inputs and capital goods upto 31 March, 2012. The Company has given its replies to all Show Cause Notices the Department and the same are under consideration. 58,921 58,921

2.4 The Company''s recognition as an EXPORT HOUSE is valid upto 31.03.2014.

2.5 The Company has taken residential accommodation for its employees on operating lease, with the option of renewal at the end of the lease. Minimum lease payments charged during the year to the Profit and Loss Account aggregate to Rs. 25,59,967 (previous year Rs. 21,95,779).

2.6 The Company has been permitted by the Gujarat Energy Development Agency (GEDA) to set up a Wind Farm of 0.75 M.W. in district Kutch Gujarat in accordance with the provisions of the Wind Power Generation Policy, 2002 issued under the Resolution No. vide G.R. EDA-10-2001 -3054-BC Part-(ll) of the Government of Gujarat dated 20 June, 2002. The Company has opted to wheel the energy generated at the Wind Farm to its own other manfacturing unit at Mehsana, North Gujarat. An agreement has been executed between the Company, GEDA and Gujarat Energy Transmission Corporation Limited (GETCO) whereby a tripartite Wheeling and Banking agreement has been made. During the year, income of Rs. 48,10,388 (previous Rs. 46,05,782) accrued through electricity generation at the Wind Farm which will be adjusted in terms of the aforesaid tripartite agreement.

2.7 Employee Benefit Obligations Defined Contribution Plan

An amount of Rs. 54,04,920 for the year ended 31 March, 2012 has been recognized as an expense in respect of contribution for Provident fund and Employees State Insurance Fund deposited with the Government Authorities.

Defined Benefit Plans

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days of total basic salary last drawn for each completed year of service. Gratuity is payable to all eligible employees of the company on retirement, separation, death or permanent disablement, in terms of the provisions of The Payment of Gratuity Act, 1972.

The following tables sets forth the status of the Gratuity Plan of the Company and the amounts recognised in the Balance Sheet and the Profit and Loss Account.

Discount Rate:

The discount rate is based on the prevailing market yields of Indian Government Securities as at the balance sheet date for the estimated term of the obligations.

Salary Escalation Rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

Investment details of Plan Assets:

The Plan Assets are maintained with Life Insurance Corporation-Group Gratuity Scheme. The details of investment maintained by Life Insurance Corporation are not available with the company and have not been disclosed.

2.8 During the year 2011 -2012 company has captively consumed 2.238 M.T. (previous year 3.210 M.T.) of casting for assembly production.

2.9 Shifting of Assembly Division

The Assembly Division at Lucknow Plant-1 has been w.e.f. 1st July, 2011 to Lucknow Plant-2, situated at C-5, Sarojini Nagar Industrial Area, Lucknow - 226008. Earlier only machining activities were done at Lucknow Plant-2. The value of assets transferred from Lucknow Plant-1 to Lucknow Plant-2 amounts to Rs. 1,18,64,822.

2.10 The plantwise installed capacity is recognised on the basis of melting capacity of Induction Melting furnaces at single shift basis. Being of a technical nature has been relied upon by the Auditors.

Lucknow Plant-1 1850.000 MTPA

Bhiwadi Plant 1800.000 MTPA

Mehsana Plant 1500.000 MTPA

2.11 SEGMENT REPORTING

Accounting Standard 17 "Segment Reporting" issued by the Institute of Chartered Accounts of India which requires disclosure of information on the basis of reportable segment. The Company recognizes manufacturing of Stainless Steel Castings, Alloy Steel Castings, Non Alloy Steel Castings and Steel Structures as its primary segment while the Company has presented secondary segment reporting on the basis of geographical location of customers.

Notes:

1. The above cash flow statement has been prepared under the ''Indirect Method'' as set out in the Accounting Standard-3 on Cash Flow Statements as notified under Section 211 (3C) of the Companies Act, 1956.

2. Previous year''s figures have been regrouped and reclassified to conform to those of the current year.

Mar 31, 2011

1. Share Capital includes 27,60,000 Equity shares of Rs. 10 each allotted as fully paid bonus shares by capitalisation of General Reserve and Revaluation Reserve.

2. Aggregate market value of quoted investments as at the end of the year was Rs. 358243 (previous year Rs. 413680).

3. Fixed deposit with Bank (Schedule ''I'') is "Under Bankers lien" as margin money for non-fund based facilities.

4. Advance payment of tax as at the end of the year represents advance payment of Tax and Tax deducted at source for and during the year under review. Advance payment of Income Tax less provision for tax for earlier years, if any, has been included in Balance with Income Tax/ Excise/Sales Ta x department (Schedule ''J'').

5. Scientific Research & Development Expenditure pertaining to the Company''s Research & Development Division aggregated to Rs. 13220043 as Capital Expenditure and Rs. 16970837 as revenue expenditure (previous year Rs. 5297541 as capital expenditure and Rs. 4905284 as revenue expenditure) charged in respective heads.

6. As per method of accounting consistently followed by the Company, excise duty payable on finished goods, other than those meant for exports, is accounted for on clearance of such goods from the factory. The amount of excise duty on such finished goods not cleared from the factory as at 31st March 2011, estimated on the basis of sales price of goods/excise rates prevailing on the said date, at Rs. 88996 (previous year Rs. 95313) has not been provided for in the accounts and hence not included in the valuation of such goods. Non-provision of this liability has no affect on the profit for the year.

7. During the year, the Company has been permitted by the Central Excise Department to clear export shipments without payment of excise duty amounting to Rs. 20992907 (previous year Rs. 8828743) against bond in favour of the department. The Company has cleared deemed export to EOU against FORM C.T.3, certificate for removal of excisable goods under bond & Form CT-1, certificate for procurement of excisable goods for export without payment of duty amounting 6656598 (previous year 4189969). A few export shipments have been cleared against payment of Excise Duty amounting to Rs. 16072380 (previous year Rs. 10943339), refund claims for which have been lodged in process of lodgement with the appropriate authorities. The Company has received Rs. 12512982, during the financial year 2010-2011 (Rs. 13582152 during the previous year).

8. Amount due from officers of the Company as at the end of the year was Rs. Nil (previous year Rs. Nil). Maximum amount due at any time during the year was Rs. 2025151 (previous year Rs. 1420610).

9. Term Loans & Working Capital Loans

1. Working Capital Loans (Fund/Non Fund based) from State Bank of India & Punjab National Bank are secured by way of :

- First charge ranking pari-pasu on the whole of the present and future current assets of the Company.

- Personal guarantee of five directors. Pari-pasu charge on the entire fixed assets of the Company.

- Secured by the additional security of residential house at Lucknow owned by a director (Mortgaged with SBI).

2. Term Loans from State Bank of India & Punjab National Bank is Secured by way of :

- First charge ranking pari-pasu on the whole of the present and future fixed assets of the Company.

- Personal guarantee of five directors. Pari-pasu charge on the whole of the present and future current assets of the Company.

- Secured by the additional security of residential house at Lucknow owned by a director (Mortgaged with SBI).

3. Vehicle Loans from ICICI Bank Limited, HDFC Bank & Tata Capital Ltd. are secured by way of hypothecation of vehicles & assets financed.

10. (a) Sessions Court, Faridabad has given a decision against the Company on a case filed by a supplier amounting to Rs.107680 (Previous Year Rs. 107680) against this complainant has claimed Rs. 150000 (previous year 150000) alongwith the interest @ 12% p.a. from the date of the suit i.e. 09/01/1997. Interest from 09/01/1997 to 31/03/2011 comes to Rs.184162. The Company is exploring the avenues to settle the issue, out of court.

(b) In respect of non fund-based working capital facilities from State Bank of India:

(In Rs.) 2010-2011 2009-2010

Counter guarantees furnished by the Company against various guarantees given by the Bank 4562370 7273081

Letter of Credit (Inland/ Foreign) opened by the Bank 14356667 11878290

(c) Estimated amount of contracts remaining to be executed on capital account and not provided for, net of advances (as certified by a Director) was Rs. 9444182 at the end of year (previous year Rs. 8155553).

(d) Contingent Liability in respect of factoring of receivables with IFCI Factors Limited Rs. 69403404 (previous year with HSBC Rs. 26898344).

11. The Income Tax assessment for A.Y. 2008-2009 has been completed during the year with refund of Rs. 27535 and appeal at CIT (A) (II) has been filed on 27.01.2011. The order of CIT (A) for A.Y. 2007-2008 has been received and appilication for CIT (A) order effect is pending. The Income Tax department had ordered Special Audit u/s 142(2A) of the Income Tax Act, 1961 for the Assessment Year 2004-05. Pursuant to the audit, the department has issued demand notice for Rs. 1460700. Against the said order, the Company has deposited Rs. 1000000 and balance amount has been adjusted from the refund of the A.Y. 2006-2007, however an appeal with CIT(A) has been decided but the effect of appeal is still pending at Income Tax Department. The Income Tax assessments of erstwhile Ashman Tool Engineers Private Limited (ATEPL) and Sunika Alloys Private Limited (SAPL) has been completed upto the pre-amalgamation period i.e. A.Y. 1997-98. Further an order under section 154 of the Income Tax Act, 1961 was passed on 25-06-2004 for the assessment year 1997-98 in case of erstwhile M/s Ashman Tool Engineers Private Limited subsequently merged with the Company. A demand of Rs. 23592 towards the charge of interest was raised against the Company. The Company has deposited Rs. 15028 in compliance to notice of demand.

12. (a) The Sales Tax assessments of the Lucknow Plant -1 have been completed upto the year 2007-2008.

(b) Sales Ta x Assessment of Bhiwadi Plant has been completed upto the year 2008-2009.

(c) The Sales Tax assessments of the Lucknow Plant-2 have been completed upto the year 2007-2008.

(d) Sales Tax Assessment of Mehsana Plant has been completed upto the year 2006-2007.

13. The Wealth Tax assessment of the Company has been filed upto the assessment year 2010-2011.

14. (a) In the case of Lucknow Plant-1, Show-cause notices against CENVAT credit of Rs.42567812 (previous year Rs. 115935) and Rs.14158 (Previous year Rs. 14158) relating to Service Ta x were issued by the Central Excise Department for the year under review and earlier years. The Company has given replies to all the show cause notice/demands to the department and the appeals are pending with Appellate authorities.

(b) Show Cause Notices/Demands of Rs. 58921 (previous year Rs. 58921) has been raised by the Central Excise Department against CENVAT credits claimed by the Bhiwadi Plant on inputs and capital goods up to 31st March, 2011. The Company has given its replies to all Show Cause Notices to the Department and the same are under consideration.

15. The Company''s recognition as an EXPORT HOUSE was valid upto 31.03.2014.

16. The Company has taken residential accommodation for its employees on operating lease, with an option of renewal at the end of the lease term. Minimum lease payments charged during the year to the Profit and Loss Account aggregate to Rs. 2195779 (previous year Rs. 2410601).

17. The Company has no amounts payable to micro, small and medium enterprises as defined in section 7(1) of The Micro, Small and Medium Enterprises Development Act, 2006 to the extent such party have been identified from the available information.

18. The Company has been permitted by the Gujarat Energy development Agency (GEDA) to set up a Wind Farm of 0.75 M W in district Kutch, Gujarat in accordance with the provisions of the Wind Power Generation Policy, 2002 issued under the Resolution No. vide G.R. EDA-10-2001-3054-BC Part- (II) of the Government of Gujarat dated 20 June, 2002. Consequently a tripartite ''Wheeling and Banking Agreement'' has been executed between the Company, GEDA and Gujarat Energy Transmission Corporation Limited (GETCO) whereby the Company has opted to wheel the energy generated at the Wind Farm to its own other manufacturing unit at Mehsana, North Gujarat. During the year income of Rs. 4605782 (previous Rs. 4838492) accrued through electricity generation at the wind form which will be adjusted in terms of the aforesaid tripartite agreement.

19. Employee Benefit Obligations Defined Contribution Plan

An amount of Rs. 4236940.55 for the year ended 31/03/2011 has been recognised as an expense in respect of contribution for Provident Fund and Employee State Insurance Fund deposited with the Government Authorities.

Defined Benefit Plan

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days of total basic salary last drawn for each completed year of services. Gratuity is payable to all eligible employees of the Company on retirement, separation, death or permanent disablement, in terms of the provisions of the payment of Gratuity Act, 1972.

Discount Rate:

The Discount rate is based on the prevailing market yields of Indian Government Securities as at the Balance Sheet date for the estimated term of the obligations.

Salary Escalation Rate:

The estimates of future salary increases considered takes into account the inflation, seniority, promotion and other relevant factors.

Investment details of Plan Assets:

The Plan Assets are maintained with Life Insurance Corporation - Group Gratuity Scheme. The details of Investment maintained by Life Insurance Corporation are not available with the Company and have not been disclosed.

20. Foreign exchange fluctuation gain of Rs. 9948425 (Previous Year Loss Rs. 4758806) on account of recognition of exchange difference on foreign currency transactions.

The activities of the Lucknow Plant-2 are basically of tool-room and job-work on different machines and equipment are done on the goods supplied by the Lucknow Plant-1. Hence, due to practical difficulties and large number of items, it is not possible to give quantitative information pursuant to para 3, 4C and 4D of Part-II of Schedule VI of the Companies Act, 1956.

(a) Inter-Plant transactions relating to sales, purchases, job-work, sundry debtors and sundry creditors have been squared-off. However, the quantitative details as given hereunder with respect to production of castings includes 299.002 M.T. (previous year 337.94 M.T.) transferred inter-plant for further processing.

(b) Bhiwadi Plant has exported castings 102.036 M.T. (Previous year 137.066 M.T.) on behalf of Lucknow Plant-1

21. Segment Reporting :

Accounting Standard 17-"Segment Reporting" issued by the Institute of Chartered Accountants of India which requires disclosure of information on the basis of reportable segment. The Company recognizes manufacturing of Stainless Steel Castings, Alloy Steel Castings, Non Alloy Steel Castings and Steel Structure as its primary segment while the Company has presented secondary segmental reporting on the basis of geographical location of customers.

22. Figures have been rounded-off to the nearest Rupee and previous year''s figures have been recasted and regrouped, wherever necessary, to conform to this year''s presentation.

23. Comparative financial information in the respect to preceding year is included as an integral part of the current year''s financial statements and is to be read in relation to the amounts and other disclosure relating to the current year.

24. Borrowing costs capitalised during the year Rs. 1173561 (Previous year Rs. 427245) in compliance with AS-16.

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