Notes to Accounts of Shah Metacorp Ltd.

Mar 31, 2025

3.9 Provisions

A provision is recognized when the company has a present obligation as a result of past event and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provisions are not discounted to their present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to
reflect the current best estimates.

3.10 Contingent Liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but
discloses its existence in the financial statements.

3.11 Contingent Asset

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
company. Contingent assets are neither recognised nor disclosed in the financial statements.

3.12 Foreign Currency
a Initial recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount
the exchange rate between the functional currency and the foreign currency at the date of the transaction.

b Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non¬
monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of the transaction.

c Exchange difference

All exchange differences are recognized as income or as expenses in the year in which they arise.

3.13 Cash and cash equivalent

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank (including demand
deposits) and in hand and short-term, highly liquid investments with original maturities of three months or less
that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.

3.14 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.

3.15 Inventories

Items of inventory are valued at cost or net realizable value, whichever is lower. Cost for raw materials, traded
goods and stores and spares is determined on FIFO basis. Cost includes all charges in bringing the goods to their
present location and condition. Net realizable value is the estimated selling price in the ordinary course of
business less the estimated cost of completion and the estimated costs necessary to make the sale.

3.16 Lease

Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts
existing on April 1, 2019 using the modified retrospective approach.

The effect of this adoption is insignificant on the profit before tax, profit for the year and earnings per share.

© As a lessee

Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards
of ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value
of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental
obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each
lease payment is allocated between the liability and finance cost. The finance cost is charged to the Statement of
Profit and Loss over the lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as
lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from
the lessor) are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease
unless the payments are structured to increase in line with expected general inflation to compensate for the
lessor’s expected inflationary cost increases.

(ii) As a lessor

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis
over the lease term unless the receipts are structured to increase in line with expected general inflation to
compensate for the expected inflationary cost increases. The respective leased assets are included in the balance
sheet based on their nature.

3.17 Segment Reporting

An operating segment is component of the company that engages in the business activity from which the
company earns revenues and incurs expenses, for which discrete financial information is available and whose
operating results are regularly reviewed by the chief operating decision maker, in deciding about resources to be
allocated to the segment and assess its performance. The company’s chief operating decision maker is the
managing Director.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable
segment. All other assets and liabilities are disclosed as un-allocable.

Revenue and expenses directly attributable to segments are reported under each reportable segment. All other
expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses.

The company prepares its segment information in conformity with the accounting policies adopted for preparing
and presenting the financial statements of the company as a whole.

3.18 Cash Flow Statement

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

3.19 Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the
reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the
Balance Sheet date of material size or nature are only disclosed.

The preparation of the financial statements in conformity with Ind AS requires management to make
estimates, judgments and assumptions.

These estimates, judgments and assumptions affect the application of accounting policies and the
reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of
the financial statements and reported amounts of revenues and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in
the period in which changes are made and, if material, their effects are disclosed in the notes to the
financial statements.

Application of accounting policies that require critical accounting estimates involving complex and
subjective judgments and the use of assumptions in these financial statements are:

- Useful lives of Property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Income tax and deferred tax

- Measurement of defined employee benefit obligations

- Export Incentive

- Provision for Loss Allowance using Expected Credit Loss Modle in respect of Trade Receivables

Trade receivables as at April 1, 2024 include an outstanding balance of Rs. 88.82 crore, which has been
overdue for a significant period and continues to remain unrecovered as at March 31, 2025. The
Company has been actively corresponding with the respective customers for recovery of the dues.
However, in view of the prolonged non-recovery and the absence of concrete recovery measures, there
exists significant uncertainty regarding the collectability of these receivables. Accordingly, the Company
has recognised a provision for doubtful debts amounting to Rs. 63.97 crore against the said balance. In
respect of Trade Receivables amounting to Rs. 12617.50 Lakhs, the management have received balance
confirmations from the top ten debtors.

The Company has used a practical expedient and analysed the recoverable amount of receivables on an
individual basis by computing the expected loss allowance for financial assets based on historical credit
loss experience and adjustments for forward looking information.

The Company has made assessment of Allowance for Credit Loss in respect of Trade Receivables for
the first time. The Company has analysed its trade receivables for agining analysis and grouped them
accordingly and then applied year wise percentage to calculate the amount of Allowance for Credit Loss
in respect of the same. (Also see Note No. 34)

The Company has only one class of equity shares referred to as equity shares having a par value of '' 1.
Each holder of equity share is entitled to one vote per share.

Dividends, if any, is declared and paid in Indian Rupees. The dividend, if any, 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 any of
the remaining assets of the company, after distribution of all preferential amounts. However, no such
preferential amounts exist currently. The distribution will be in proportion to the number of equity
shares held by the shareholders.

The holding company has issued and allotted 2,25,40,000 Equity Shares of face value of Rs. 1 /- to
Promoters on preferential basis in conversion of warrants issued on 28.07.2023 at an issue price of Rs.
3.24/- each (including premium of Rs. 2.24/- per Equity Share).

The holding company has issued and allotted 4,45,00,000 share warrants convertible into Equity Shares
within a period of 18 months from the date allotment of warrants, carrying value of Rs. 1 /- to
Promoters, on preferential basis at an issue price of Rs. 4.02/- each (including premium of Rs. 3.02/-
per Equity Share). The holding Company has issued and allotted 90,00,000 Equity Shares of face value
of Rs.1 /- to Promoters on preferential basis in conversion of warrants issued on 01.08.2024 at as issue
price of Rs.4.02/- each (including premium of Rs.3.02/- per Equity Share)

The holding company has issued and allotted 14,30,00,000 Equity Shares of face value of Rs. 1 /- to Non
Promoters on preferntial basis at an issue price of Rs.4.02/- each (including premium of Rs.3.02/- per
Equity Share).

(a) Securities Premium : The amount received in excess of face value of the equity shares is recognised in
Securities Premium. The reserve is utilised in accordance with the provisions of the Companies Act,
2013.

(b) General Reserve : General Reserves are free reserves of the Company which are kept aside out of
Company’s profits to meet the future requirements as and when they arise. The Company had
transferred a portion of the profit after tax (PAT) to general reserve. Mandatory transfer to general
reserve is not required under the Companies Act, 2013.

(c) Retained Earnings : Retained earnings are the accumulated profits earned by the Company till date,
less transfer to general reserves, dividend (including dividend distribution tax) and other distributions
made to the shareholders.

14.1 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share
premium and all other reserves attributable to the equity holders of the Company. The Company’s
objective for capital management is to maximize shareholder value and safeguard business continuity.
The Company determines the capital requirement based on annual operating plans and other strategic
plans. The funding requirements are met through equity and operating cash flows.

21.1 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the
above pending resolution of the respective proceedings as it is determinable only on receipt of
judgements/decisions pending with various forums/ authorities.

21.2 The Company’s pending litigations comprise of claims against the Company pertaining to proceedings
pending with various direct tax, indirect tax and other authorities. The Company has reviewed all its
pending litigations and proceedings and has adequately provided for where provisions are required and
disclosed as contingent liabilities where applicable, in its financial statements. The Company does not
expect the outcome of these proceedings to have a materially adverse effect on its financial statements.

21.3

There has been a Supreme Court (SC) judgement dated 28th February 2019, relating to components of
salary structure that need to be taken into account while computing the contribution to provident fund
under the EPF Act. There are interpretative aspects related to the Judgement including the effective date
of application. The Company will continue to assess any further developments in this matter for the
implications on financial statements, if any.

30.4 Risk to the Plan

Following are the risk to which the plan exposes the entity :

Other assumptions would have produced different results eg a decrease in discount rate or an increase in
salary inflation will lead to an increase in reported liability as per table of sensitivity analysis. Similarly change
in attrition rates will also impact the liability.Funded plan carries usual investment risks including asset liability
mismatch which will impact net liability / expenses and OCI if any .

34 [Financial Risk Management

The company''s activities expose it to variety of financial risks : market risk, credit risk and liquidity risk.
The company''s focus is to foresee the unpredictability of financial markets and seek to minimize
potential adverse effects on its financial performance. The Board of Directors has overall responsibility
for the establishment and oversight of the Company''s risk management framework. The Board of
Directors has established a risk management policy to identify and analyze the risks faced by the
Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk
management systems are reviewed periodically to reflect changes in market conditions and the
Company’s activities. The Board of Directors oversee compliance with the Company’s risk

A Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises interest rate risk and currency risk.

i Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Interest risk arises to the Company mainly from
borrowings with variable rates. The Company measures risk through sensitivity analysis. The banks are
now finance at variable rate only, which is the inherent business risk.

ii Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk
through its sales and purchases from overseas suppliers in foreign currencies. The comapny measures
risk through sensitivity analysis.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with
financial liabilities that are settled by delivering cash or another financial assets.

The company''s principal source of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The Company closely monitors its liquidity position and is attempting to
enhance its sources of funding by increasing cash flow generated from its operations and realisations
from other proposed measures. The Company measures risk by forecasting cash flows.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other
party by failing to discharge an obligation. Credit risk encompasses both, the direct risk of default and
the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, cash and cash equivalent and
other financial assets.

In respect of trade receivables, credit risk is being managed by the company through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customers to which the
company grants credit terms in the normal course of business. The Company ensures that sales of
products are made to customers with appropriate creditworthiness. All trade receivables are also
reviewed and assessed for default on a regular basis.

Credit risk arising from cash and cash equivalent and other financial assets is limited as the
counterparties are banks and mainly Government companies respectively.

The Company has made assessment of Allowance for Credit Loss in respect of Trade Receivables for
the first time. The Company has analysed its trade receivables for agining analysis and grouped them
accordingly and then applied year wise percentage to calculate the amount of Allowance for Credit Loss
in respect of the same.

38 [segment Informations

38.1 Operating Segment:

a) Stainless Steel Products
Identification of Segments:

The Chief Operational decision maker monitors the operating results of its business segment
separately for the purpose of making decision. Operating segment has been identified on the basis of
nature of products and other quantative criteria specified in the Ind AS 108.

Segment revenue and results:

The expenses and income which are not directly attributable to any business segment are shown as
unallocable expenditure (net of allocable income).

Segment assets and Liabilities

Segment assets include all operating assets used by the operating segment and mainly consist of
properly, plant and equipment, trade receivables, inventories and other operating assets. Segment
liabilites primarily include trade payable and other liabilities. Common assets and liabilities which
cannot be allocated to any of the business segment are shown as unallocable assets/liabilities.

44

As stated & Confirmed by the Board of Directors ,The Company has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

45 |Lo an or Investment from Ultimate Benefici aries

As stated & Confirmed by the Board of Directors ,The Company has not received any fund from any person(s) or entity(ies),
including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

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

46 ^Working Capital

As stated and confirmed by the Board of Directors, The Company has been not been sanctioned any working capital facilities during
the year under review.

47 W illful Defaulter

As stated & Confirmed by the Board of Directors ,The company has not been declerated willful defaulter by the bank during the

48 transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The company has not under taken any transactions nor has outstanding balance
with the company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

49 jSatisfaction of Charge

As stated & Confirmed by the Board of Directors ,The compnay does not have any pending registration or satisfaction of charges
with ROC beyond the statutory period .

50 |Crypto Currency

As stated & Confirmed by the Board of Directors ,The Company has not traded or invested in Crypto Currency or Virtual Currency.

Note i: Net Profit after taxes Non-cash operating expenses Interest other adjustments like loss on sale of Fixed assets etc.

Note ii: The Company has only unsecured loans, which do not have a predetermined Principal and Interest repayment schedule, accordingly Debt Service Coverage Ratio is not applicable.

52 Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current

Significant Accounting Policies - Note 1 to 52

Note No. 5 to 51 forming Part of Standalone Financial Statements

As per our report of even date attached For and on behalfof the Board

For, ASHOK DHARIWAL & CO.

Chartered Accountants Mona Shah Dipali Shah

Firm Reg. No. 100648W Director Director

DIN - 02343194 DIN - 08845576

CA Ashok Dhariwal

Partner Narendra Sharma Hiral Patel

Membership No. 036452 Chief Financial Officer Company Secretary

UDIN: 25036452BM KTG E2965

Viral Shah

Chief Executive Officer

Place : Ahmedabad Place : Ahmedabad

Date : 06-05-2025 Date : 06-05-2025

---

Mar 31, 2024

3.9 Provisions

A provision is recognized when the company has a present obligation as a result of past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provisions are not discounted to their present value and are determined based on the best estimate required to settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

3.10 Contingent Liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but discloses its existence in the financial statements.

3.11 Contingent Asset

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the company. Contingent assets are neither recognised nor disclosed in the financial statements.

3.12 Foreign Currency a Initial recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount the exchange rate between the functional currency and the foreign currency at the date of the transaction.

b Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non-monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported using the exchange rate at the date of the transaction.

c Exchange difference

All exchange differences are recognized as income or as expenses in the year in which they arise.

3.13 Cash and cash equivalent

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank (including demand deposits) and in hand and short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

3.14 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

3.15 Inventories

Items of inventory are valued at cost or net realizable value, whichever is lower. Cost for raw materials, traded goods and stores and spares is determined on FIFO basis. Cost includes all charges in bringing the goods to their present location and condition. Net realizable value is the estimated selling price in the ordinary course of business less the estimated cost of completion and the estimated costs necessary to make the sale.

3.16 Lease

Effective April 1, 2019, the Company adopted Ind AS 116 "Leases” and applied the standard to all lease contracts existing on April 1, 2019 using the modified retrospective approach.

The effect of this adoption is insignificant on the profit before tax, profit for the year and earnings per share.

(i) As a lessee

Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards of ownership are classified as finance leases. Finance leases are capitalised at the lease''s inception at the fair value of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each lease payment is allocated between the liability and finance cost. The finance cost is charged to the Statement of Profit and Loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability for each period.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from the lessor) are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease unless the payments are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases.

(ii) As a lessor

Lease income from operating leases where the Company is a lessor is recognised in income on a straight-line basis over the lease term unless the receipts are structured to increase in line with expected general inflation to compensate for the expected inflationary cost increases. The respective leased assets are included in the balance sheet based on their nature.

3.17 Segment Reporting

An operating segment is component of the company that engages in the business activity from which the company earns revenues and incurs expenses, for which discrete financial information is available and whose operating results are regularly reviewed by the chief operating decision maker, in deciding about resources to be allocated to the segment and assess its performance. The company''s chief operating decision maker is the managing Director.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as un-allocable.

Revenue and expenses directly attributable to segments are reported under each reportable segment. All other expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses.

The company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the company as a whole.

3.18 Cash Flow Statement

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

3.19 Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

4 Use of Estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions.

These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements are:

- Useful lives of Property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Income tax and deferred tax

- Measurement of defined employee benefit obligations

- Export Incentive

- Provision for Loss Allowance using Expected Credit Loss Modle in respect of Trade Receivables

(a) Securities Premium : The amount received in excess of face value of the equity shares is recognised in Securities Premium. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

(b) General Reserve : General Reserves are free reserves of the Company which are kept aside out of Company’s profits to meet the future requirements as and when they arise. The Company had transferred a portion ofthe profit after tax (PAT) to general reserve. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

(c) Retained Earnings : Retained earnings are the accumulated profits earned by the Company till date, less transfer to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders.

14.1 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other reserves attributable to the equity holders of the Company. The Company’s objective for capital management is to maximize shareholder value and safeguard business continuity. The Company determines the capital requirement based on annual operating plans and other strategic plans. The funding requirements are met through equity and operating cash flows.

21.1 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/ authorities.

21.2 The Company''s pending litigations comprise of claims against the Company pertaining to proceedings pending with various direct tax, indirect tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements.

21.3 The Company has write off of sundry creditor''s balance of Rs.297.10 Lakhs

The Fair value of current financial assets and current financial liabilities measured at amortised cost, are considered to be the same as their carrying amount as they are of short term nature. Hence fair value hierarchy is not given for the same.

The carrying amount of non - current financial assets and non - current financial liabilities measured at amortised cost are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. Hence, fair value hierarchy is not given for the same.

The company’s activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Board of Directors oversee compliance with the Company''s risk management policies and procedures, and reviews the risk management framework.

A Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises interest rate risk and currency risk.

i Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Interest risk arises to the Company mainly from borrowings with variable rates. The Company measures risk through sensitivity analysis. The banks are now finance at variable rate only, which is the inherent business risk.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets.

The company’s principal source of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company closely monitors its liquidity position and is attempting to enhance its sources of funding by increasing cash flow generated from its operations and realisations from other proposed measures. The Company measures risk by forecasting cash flows.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, cash and cash equivalent and other financial assets.

In respect of trade receivables, credit risk is being managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company ensures that sales of products are made to customers with appropriate creditworthiness. All trade receivables are also reviewed and assessed for default on a regular basis.

Credit risk arising from cash and cash equivalent and other financial assets is limited as the counterparties are banks and mainly Government companies respectively.

The Company has made assessment of Allowance for Credit Loss in respect of Trade Receivables for the first time. The Company has analysed its trade receivables for agining analysis and grouped them accordingly and then applied year wise percentage to calculate the amount of Allowance for Credit Loss in respect of the same.

36.4 The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.

36.5 The related party balances outstanding are routine in nature as per ordinary course of business.

37 Segment Informations

37.1 Operating Segment:

a) Stainless Steel Products

b) Agricultural Products

Identification of Segments:

The Chief Operational decision maker monitors the operating results of its business segment separately for the purpose of making decision. Operating segment has been identified on the basis of nature of products and other quantative criteria specified in the Ind AS 108.

Segment revenue and results:

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure (net of allocable income). Segment assets and Liabilities

Segment assets include all operating assets used by the operating segment and mainly consist of properly, plant and equipment, trade receivables, inventories and other operating assets. Segment liabilites primarily include trade payable and other liabilities. Common assets and liabilities which cannot be allocated to any of the business segment are shown as unallocable assets/liabilities.

38.1 The Company has issue of 2,28,00,000 warrants convertible into Equity shares on a Preferntial basis against outstanding Loan at Rs.3.24 per Share and out of which 2,60,000 share warrants were converted into Equity shares during the year.

38 The financial results in relation to the amendment in the object clause of the company to include the trade of Agro products, chemicals and fertilizers. Accordingly, segmental information has been disclosed with respect to the comparative periods in accordance with Ind AS 108 Operating Segments. The Chief Executive Officer (or Chief Operating Decision Maker of the company examines the company''s performance and has identified Two segments as reportable segments of its business on the basis of nature of Product. Accordingly, During the year Company operates in 2 different Segments as per following: (1) Manufacturing and Trading of Steel & Alloys : S. S. Products (2) Trading of Agrochemical Products.

39 Corporate Social Responsibility Contribution

As the company is not covered under the provision of Section 135 of the Companies Act, 2013, details of Corporate Social Responsibility (CSR) is not required to be given.

40 The balance confirmation from the suppliers, customers as well as to various loans or advances given have been called for and received balance confirmation from top 10 suppliers and customers. In view of the same, it is to be stated that the balances of receivables, trade payables as well as loans and advances have been taken as per the books of accounts and confirmation from the respective parties

41 Certain balances of debtors ,creditors, loans and advances are non moving Since long however in view of the management same is recoverable / payable and hence no provision for the same is made in the books of accounts.

42 Undisclosed Transactions

As stated & confirmed by the Board of Directors, The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

43 Benami Transactions

As stated & confirmed by the Board of Directors ,The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

44 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

45 Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

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

46 Working Capital

As stated and confirmed by the Board of Directors, The Company has been not been sanctioned any working capital facilities during the year under review.

47 Willful Defaulter

As stated & Confirmed by the Board of Directors ,The company has not been declerated willful defaulter by the bank during the year under review.

48 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The company has not under taken any transactions nor has outstanding balance with the company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

49 Satisfaction of Charge

As stated & Confirmed by the Board of Directors ,The compnay does not have any pending registration or satisfaction of charges with ROC beyond the statutory period .

50 Crypto Currency

As stated & Confirmed by the Board of Directors ,The Company has not traded or invested in Crypto Currency or Virtual Currency.

51 Trade Receivables

In respect of Trade Receivables amounting to Rs. 5500.43 Lakhs, the management have received balance confirmations from the top ten debtors, The realisability of these amounts is doubtful and company has not made any provision for Bad and Doubtful debts in respect of these receivables, other than specified in Note no. 10.

52 Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classifications/disdosures.

Significant Accounting Policies - Note 1 to 52

Note No. 6 to 52 forming Part of Standalone Financial Statements

As per our report of even date attached For and on behalf of the Board

SHAH METACORP LIMITED

For, ASHOK DHARIWAL & CO.

Chartered Accountants Mona Shah Dipali Shah

Firm Reg. No. 100648W Director Director

DIN - 02343194 DIN - 08845576

CA Ashok Dhariwal

Partner Narendra Sharma Hiral Patel

Membership No. 036452 Chief Financial Officer Company Secretary

UDIN: 24036452BKCJKX4901

Viral Shah

Chief Executive Officer

Place : Ahmedabad Place : Ahmedabad

Date : 21-05-2024_Date : 21-05-2024

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Mar 31, 2023

Contingent Liabilities and commitments (To the extent not provided for)
Contingent Liabilities	March 31, 2023	March 31, 2022
Claims against the Company not acknowledged as Debt in respect of :- i) Disputed Income Tax matters	203.82	203.82
ii) Disputed VAT and CST matters	16,199.57	16,199.57
Total	16,403.39	16,403.39

It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgements/decisions pending with various forums/ authorities.

21.2

The Company''s pending litigations comprise of claims against the Company pertaining to proceedings pending with various direct tax, indirect tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial statements.

30 The company is responsible for the governance of the plan.

30 Risk to the Plan

Following are the risk to which the plan exposes the entity :

Other assumptions would have produced different results eg a decrease in discount rate or an increase in salary inflation will lead to an increase in reported liability as per table of sensitivity analysis. Similarly change in attrition rates will also impact the liability.Funded plan carries usual investment risks including asset liability mismatch which will impact net liability / expenses and OCI if any .

The Fair value of current financial assets and current financial liabilities measured at amortised cost, are considered to be the same as their carrying amount as they are of short term nature. Hence fair value hierarchy is not given for the same.

The carrying amount of non - current financial assets and non - current financial liabilities measured at amortised cost are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. Hence, fair value hierarchy is not given for the same.

The company''s activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The company''s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company''s activities. The Board of Directors oversee compliance with the Company''s risk management policies and procedures, and reviews

A Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises interest rate risk and currency risk.

i Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Interest risk arises to the Company mainly from borrowings with variable rates. The Company measures risk through sensitivity analysis. The banks are now finance at variable rate only, which is the inherent business risk.

ii Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk through its sales and purchases from overseas suppliers in foreign currencies. The comapny measures risk through sensitivity analysis.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets.

The company''s principal source of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company closely monitors its liquidity position and is attempting to enhance its sources of funding by increasing cash flow generated from its operations and realisations from other proposed measures. The Company measures risk by forecasting cash flows.

C Credit Risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, cash and cash equivalent and other financial assets.

In respect of trade receivables, credit risk is being managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. The Company ensures that sales of products are made to customers with appropriate creditworthiness. All trade receivables are also reviewed and assessed for default on a regular basis.

Credit risk arising from cash and cash equivalent and other financial assets is limited as the counterparties are banks and mainly Government companies respectively.

The Company has made assessment of Allowance for Credit Loss in respect of Trade Receivables for the first time. The Company has analysed its trade receivables for agining analysis and grouped them accordingly and then applied year wise percentage to calculate the amount of Allowance for Credit Loss in respect of the same.

The Company has made above provision and the same has been charged to statement of profit and loss under the head of Other Expenses.

36 The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions.

37 The related party balances outstanding are routine in nature as per ordinary course of business.

37 Segment Informations

The Company identified one Primary reportable segment viz. Manufacturing of S.S. Products. As there is only one reportable segment, the company has not given segment information.

38 Details of Loan given, Investment made and Guarantee given-pursuant section 186 (4) of the Companies Act, 2013 :

Loans given and investments made are given under the respective heads. All Loans given ar to the employees of the company. There are no corporate guarantees given by the company in respect of loans as at March 31, 2023.

The financial results in relation to right issue of 17,41,03,116 equity shares at Rs.2.75 per share during the year.

The financial results in relation to the company''s inability to utilise the said right issue proceeds to pay to Omkara ARC as the funds so received in escrow account were pending SEBI clearance for further utilisation.

The financial results in relation to the change of name of the company from "Gyscoal Alloys Limited" to "Shah Metacorp Limited" which is pending for SEBI''s approval.

39 Corporate Social Responsibility Contribution

As the company is not covered under the provision of Section 135 of the Companies Act, 2013, details of Corporate Social Responsibility (CSR) is not required to be given.

40 The balance confirmation from the suppliers, customers as well as to various loans or advances given have been called for, but the same are awaited till date. In view of the same, it is to be stated that the balances of receivables, trade payables as well as loans and advances have been taken as per the books of accounts and are subject to confirmation from the respective parties

41 Certain balances of debtors ,creditors, loans and advances are non moving Since long however in view of the management same is recoverable / payable and hence no provision for the same is made in the books of accounts.

42 Undisclosed Transactions

As stated & confirmed by the Board of Directors, The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

43 Benami Transactions

As stated & confirmed by the Board of Directors ,The Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

44 Loan or Investment to Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

45 Loan or Investment from Ultimate Beneficiaries

As stated & Confirmed by the Board of Directors ,The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) 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

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

46 Working Capital

As stated and confirmed by the Board of Directors, The Company has been not been sanctioned any working capital facilities during the year under review.

47 Willful Defaulter

As stated & Confirmed by the Board of Directors ,The company has not been declerated willful defaulter by the bank during the

48 Transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The company has not under taken any transactions nor has outstanding balance with the company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

49 Satisfaction of Charge

As stated & Confirmed by the Board of Directors ,The compnay does not have any pending registration or satisfaction of charges with ROC beyond the statutory period .

50 Crypto Currency

As stated & Confirmed by the Board of Directors ,The Company has not traded or invested in Crypto Currency or Virtual Currency.

51 Trade Receivables

In respect of Trade Receivables amounting to Rs. 2,532.35 Lakhs, the management have not received balance confirmations from the debtors. The realisability of these amounts is doubtful and company has not made any provision for Bad and Doubtful debts in respect of these receivables, other than specified in Note no. 11.

52 Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classifications/disclosures.

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Mar 31, 2018

1 Company overview

Gyscoal Alloys Limited (the ‘Company’) is a public limited Company and domiciled in India and is incorporated under the provisions of the Companies Act with its registered office located at Plot No. 2/3 GIDC, Ubkhal, Kukarwada, Tal. Vijapur, Dist.: Mehsana - 382 830. The Company is listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The company is engaged in the manufacturing of SS products. The financial statements are approved for issue by the company’s Board of Directors on May 28, 2018.

2 Basis of preparation

2.1 Statement of compliance

The financial statements comply in all material aspects with Indian Accounting Standards (Ind AS) notified under section 133 of the Companies Act, 2013 read with Rule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016. These financial statements are the company’s first Ind AS financial statements. The financial statements up to year ended March 31, 2017 were prepared in accordance with the Accounting standards notified under Companies (Accounting Standards) Rules, 2006 (IGAAP) and other relevant provisions of the Act. Previous period figures in the financial statements have been restated to Ind AS. In accordance with Ind AS 101 First time Adoption of Indian Accounting Standard, the Company has presented reconciliations and explanations of the effects from IGAAP to Ind AS on financial position, financial performance and cash flows in Note No. 5.

2.2 Basis of measurement

The Financial Statements have been prepared on the historical cost basis except for the certain financial assets and liabilities measured at fair value.

- Certain financial assets and liabilities

- defined benefit plans assets

2.3 Functional and presentation currency

Indian rupee is the functional and presentation currency.

2.4 Use of estimates

The preparation of the financial statements in conformity with Ind AS requires management to make estimates, judgments and assumptions.

These estimates, judgments and assumptions affect the application of accounting policies and the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as management becomes aware of changes in circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in the period in which changes are made and, if material, their effects are disclosed in the notes to the financial statements.

Application of accounting policies that require critical accounting estimates involving complex and subjective judgments and the use of assumptions in these financial statements are:

- Useful lives of Property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Income tax and deferred tax

- Measurement of defined employee benefit obligations

- Export Incentive

3 Recent accounting pronouncements issued but not yet effective

Appendix B to Ind AS 21, Foreign currency transactions and advance consideration: On March 28, 2018, Ministry of Corporate Affairs (““MCA”“) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency. The amendment will come into force from April 1, 2018.

The Company has evaluated the effect of this on the financial statements and the impact is not material.

Ind AS 115- Revenue from Contract with Customers: On March 28, 2018, Ministry of Corporate Affairs (““MCA”“) has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers. The amendment will come into force from April 1, 2018.

The Company has evaluated the effect of this on the financial statements and the impact is not material.

4 Transition to Ind AS

These standalone financial statements of Gyscoal Alloys Limited for the year ended March 31, 2018 have been prepared in accordance with Ind AS. For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - “First-Time Adoption of Indian Accounting Standards” with April 01, 2016 as the transition date and Indian GAAP as the IGAAP.

The transition to Ind AS has resulted in changes in presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 3 have been applied in preparing the standalone financial statements for the year ended March 31, 2018 and the comparative information.

4.1 First time adoption of Ind AS

An explanation of how transition from IGAAP to Ind AS has affected the company’s financial position, financial performance and cash flows are set hereunder:

4.1.1 Exception to the retrospective application of other Ind AS

a Estimates

Company’s estimates in accordance with Ind AS as at the date of transition to Ind AS (April 01, 2016) are consistent with the estimates made for the same date as per IGAAP.

b Classification of financial assets

The classification of financial assets to be measured at amortised cost is made on the basis of the facts and circumstances that existed on the date of transition to Ind AS.

4.1.2 Exemption from other Ind AS

Deemed cost of Property, plant and equipment and Intangible assets

Company has elected to measure all of its Property, Plant and Equipment and Intangible assets at their IGAAP carrying amount as on the date of transition to Ind AS.

Investment in subsidiary and associate

Company has elected to measure its investment in subsidiary and associate in separate financial statements at their IGAAP carrying amount as on the date of transition to Ind AS.

4.2.1 Reconciliation of statement of cash flows

There are no material adjustments to the statement of cash flows as reported under IGAAP.

5.1 Rights, preferences and restrictions attached to shares

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

Dividends, if any, is declared and paid in Indian Rupees. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

I n the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

6 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other reserves attributable to the equity holders of the Company. The Company’s objective for capital management is to maximize shareholder value and safeguard business continuity. The Company determines the capital requirement based on annual operating plans and other strategic plans. The funding requirements are met through equity and operating cash flows.

7.1.1 Details of securities

Working capital loans from Banks are secured by way of hypothecation of Raw Materials, Work-in-Process, Finished Goods, Stores & Spares, Book Debts etc., and by way of second charge on Company’s immovable properties.

Working capital loans are guaranted by some of the directors of the Company as well as corporate guarantee of other group companies.

As all the above accounts classified by bank as NPA, interest on the same is not charged by the bank in the said accounts. So, the company has made provision of interest payable on such accounts at the interest rates sanctioned by the banks and shown under the other financial liabilities.

Out of the above NPA Accounts, UCO Bank has sold its NPA A/c to M/s. Omkara Assets Reconstruction Pvt. Ltd. (ARC) and the company has acknowledge this assignment of Debt towards the said ARC vide resolution passed in board meeting held on 12th February, 2018.

7.2.1 The default was neither remedied nor the terms of the loans payable were renegotiated, before the financial statements were approved for issue.

8.1 The company is responsible for the governance of the plan.

8.2 Risk to the Plan

Following are the risk to which the plan exposes the entity :

A Actuarial Risk:

There is a risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cashflow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

C Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cashflows.

D Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is made effective.

9 Fair Value Measurement of Financial asset and Financial liabilities

The Fair value of current financial assets and current financial liabilities measured at amortised cost, are considered to be the same as their carrying amount as they are of short term nature. Hence fair value hierarchy is not given for the same.

The carrying amount of non - current financial assets and non - current financial liabilities measured at amortised cost are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled. Hence, fair value hierarchy is not given for the same.

10 Financial Risk Management

The company’s activities expose it to variety of financial risks : market risk, credit risk and liquidity risk. The company’s focus is to foresee the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Board of Directors oversee compliance with the Company’s risk management policies and procedures, and reviews the risk management framework.

A Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises interest rate risk and currency risk.

i Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Interest risk arises to the Company mainly from borrowings with variable rates. The Company measures risk through sensitivity analysis. The banks are now finance at variable rate only, which is the inherent business risk.

ii Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk through its sales and purchases from overseas suppliers in foreign currencies. The comapny measures risk through sensitivity analysis.

B Liquidity risk

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial assets.

The company’s principal source of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The Company closely monitors its liquidity position and is attempting to enhance its sources of funding by increasing cash flow generated from its operations and realisations from other proposed measures. The Company measures risk by forecasting cash flows.

C Credit risk

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Credit risk encompasses both, the direct risk of default and the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, cash and cash equivalent and other financial assets.

I n respect of trade receivables, credit risk is being managed by the company through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business. All trade receivables are also reviewed and assessed for default on a regular basis. The concentration of credit risk is limited due to the fact that the customer base is large. There is no customer representing more that 10% of total balance of trade receivables.

Credit risk arising from cash and cash equivalent and other financial assets is limited as the counterparties are banks and mainly Government companies respectively.

The maximum exposure to the credit risk at the reporting date from trade recievables is as under :

11.1 The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions.

11.2 The related party balances outstanding are routine in nature as per ordinary course of business.

12 Segment Informations

12.1 The Company is engaged in the business of manufacturing of S.S. Products. As there is only one reportable segment, the company has not given segment information.

12.2 Information about major customers

There are no major customers which individually accounted for revenue more than 10% of total revenue of the company.

13 Details of Loan given, Investment made and Guarantee given pursuant section 186 (4) of the Companies Act, 2013 :

Loans given and investments made are given under the respective heads. Loans have been utilized by the recipients for their business purpose. There are no corporate guarantees given by the company in respect of loans as at March 31, 2018.

14 As the company is not covered under the provision of Section 135 of the Companies Act, 2013, details of CSR is not required to be given.

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Mar 31, 2016

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.

Contingent assets are neither recognized nor disclosed in the financial statements.

1. Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a face value of ''10/- per share. Each equity shareholder is entitled to one vote per share.

2 Shares held by holding/ultimate holding company and/or their subsidiaries/associates : - Nil

3. Details of Term Loans are as under :

Auto Loans from HDFC Bank carries interest @ 10.13% p.a. The loan is repayable in 60 equated monthly installments total amounting to Rs,294820/- including interest.

Auto Loans from Tata Capital Financial Services Ltd. carries interest @ 11.52% p.a. The loan is repayable in 60 equated monthly installments total amounting to Rs,100100/- including interest.

Auto Loans from Volkswagen Finance Private Limited carries interest @ 10.16% p.a. The loan is repayable in

60 equated monthly installments total amounting to Rs,117704/- including interest.

4. Details of Security of the Term Loans are as under :

Term Loans from State Bank of Patiala of Rs,Nil/- (Previous Year Rs,1961251/-) was secured by way of Pari Pasu Charge over the Land & Building, Plant & Machinery and other immovable & movable Fixed assets of the company both present and future and personal guarantee of some of the Directors of the Company as well as corporate guarantee of other group companies.

Auto Loans from HDFC Bank of Rs,7784928/- (Previous Year Rs,10389301/-) are secured by way of hypothecation of respective vehicles.

Auto Loans from Tata Capital Financial Services Ltd. of Rs,3108997/- (Previous Year Rs,3903762/-) are secured by way of hypothecation of respective vehicles.

Auto Loans from Volkswagen Finance Private Limited of Rs,6263086/- (Previous Year Rs,6998128/-) are secured by way of hypothecation of respective vehicles.

Working Capital loan from Bank is secured by way of hypothecation of Raw Materials, Work-in-Process, Finished Goods, Stores & Spares, Book Debts etc., and by way of second charge on Company''s immovable properties, and also personal guarantee of some of the Directors of the Company as well as corporate guarantee of other group companies.

During the year, the company has made default in repayment of working capital loan repayable on demand from the banks, details of which are as under :

Note : As both the above Accounts classified by bank as NPA, interest on the same is not charged by the bank in the said accounts. So, the company has made provision of interest payable on such accounts at the interest rates sanctioned by the banks and shown under the Other Current Liabilities in Balance Sheet.

Details of dues to Micro, Small and Medium Enterprise as defined under MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure regarding :

a) Amount due and outstanding to suppliers at the end of accounting year,

b) Interest paid during the year,

c) Interest payable at the end of accounting year,

d) Interest accrued and unpaid at the end of the accounting year, have not been given.

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

* Income from investment in mutual fund made from the proceed of IPO of Rs, 19121150/- is deducted from the total figure of WIP as the same is treated as project pre-completion income and the same is adjusted against the cost of the project.

5. From the last year, pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortized carrying value is being depreciated / amortized over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted in the opening balance of Profit and Loss Account amounting to Rs, 740793.

Defined Benefit Plans

At present, the company has not any Defined Benefit Plans which are managed by other third party like LIC etc. However, the company is making provision for the present value of gratuity payable based on actuarial valuation using Projected Unit Credit Method. The company has not made any provision for leave encashment , but the same is recognized as expenses on actual payment basis.

6. SAGMENT REPORTING :

The Company is mainly engaged in the business of manufacturing of S.S. Products. Considering the nature of business and financial reporting of company, the company has only one segment, viz. S.S. Products as reportable segment. The company operates in local / export segment geographically of which the export has amounted to Rs,589914848/- out of total turnover of Rs,1582250332/- but due to nature of the business, the assets / liabilities and expenses for these activities cannot be bifurcated separately.

(Net of amount paid to statutory authorities and provided in to accounts)

* Claims against the Company not acknowledgement as debt includes demand from the Gujarat VAT Authority for payment of VAT and CST of Rs,390090807/- and from the Indian Income Tax Authority for payment of tax of Rs,5614730/- The Company has filed appeal with higher authorities and the Company has been legally advised that the additional demands raised are likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

7. During the financial year 2010-11, the Company has completed its Initial Public Offer (IPO) comprising of 77,00,000 equity shares at a price of Rs,71 per share aggregating to Rs,5467.00 lacs. The share premium of Rs,61 per share amounting to Rs,4697.00 lacs has been credited to Share Premium Account. The share issue expenses amounting to Rs,510.69 lacs have been adjusted to Share Premium Account.

* It includes advances given to various parties for Land and Plant & Machinery for New Project.

Plant & Machineries for Phase -I of new IPO project has been installed and Phase-II of the same is still under process.

8. In the opinion of Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all liabilities is adequate and not in excess of the amounts considered reasonably necessary.

9. Outstanding Balance of unsecured loans, trade receivables, trade payables, loans and advances and any other outstanding balances including all squared up accounts are subject to confirmation and reconciliation.

10. The figures for the corresponding previous period have been restated /regrouped wherever necessary, to make them comparable.

---

Mar 31, 2015

1. Terms / Rights attached to Equity Shares

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

2. Shares held by holding/ultimate holding company and/or their subsidiaries/associates : - Nil

3. Details of Term Loans are as under :

Term Loan from State Bank of PatiyaLa carries interest @ 15.50% p.a. The loan is repayable in 16 quarterly installments of Rs. 3200000/- each along with interest.

Auto Loans from HDFC Bank carries interest @ 10.13% p.a. The loan is repayable in 60 equated monthly installments total amounting to Rs. 2948200/- including interest.

Auto Loans from Tata Capital Fanincial Services Ltd. carries interest @ 11.52% p.a. The loan is repayable in 60 equated monthly installments total amounting to Rs. 100100/- including interest.

Auto Loans from Volkswagen Finance Private Limited carries interest @ 10.16% p.a. The loan is repayable in 60 equated monthly installments total amounting to Rs. 117704/- including interest.

4. Details of Security of the Term Loans are as under :

Term Loans from State Bank of Patiyala of Rs. 1961251/- (Previous Year Rs. 18227229/-) is secured by way of Pari Pasu Charge over the Land & Building, Plant & Machinery and other immovable & movable Fixed assets of the company both present and future and personal guarantee of some of the Directors of the Company as well as corporate guarantee of other group companies.

Auto Loans from HDFC Bank of Rs. 10389301/- (Previous Year Rs. 12743838/-) are secured by way of hypothecation of respective vehicles.

Auto Loans from Tata Capital Financial Services Ltd. of Rs. 3903762/- (Previous Year Rs. Nil) are secured by way of hypothecation of respective vehicles.

Auto Loans from Volkswagen Finance Ptivate Limited of Rs. 6998128/- (Previous Year Rs. Nil) are secured by way of hypothecation of respective vehicles.

Details of dues to Micro, Small and Medium Enterprise as defined under MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure regarding :

a) Amount due and outstanding to suppliers at the end of accounting year,

b) Interest paid during the year,

c) Interest payable at the end of accounting year,

d) Interest accrued and unpaid at the end of the accounting year, have not been given.

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

5. Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated / amortised over the revised/ remaining useful lives. The written down value of Fixed Assets whose lives have expired as at 1st April 2014 have been adjusted in the opening balance of Profit and Loss Account amounting to ' 740793.

6. Defined Benefit Plans

At present, the company has not any Defined Benefit Plans which are managed by other third party like LIC etc. However, the company is making provision for the present value of gratuity payable based on actuarial valuation using Projected Unit Credit Method. The company has not made any provision for leave encashment , but the same is recognised as expenses on actual payment basis.

7. SAGMENT REPORTING :

The Company is mainly engaged in the business of manufacturing of S.S. Products. Considering the nature of business and financial reporting of company, the company has only one segment, viz. S.S. Products as reportable segment. The company operates in local / export segment geographically of which the export has amounted to Rs. 285118054/- out of total turnover of Rs. 1757994715/- but due to nature of the business, the assets / liabilities and expenses for these activities can not be bifurcated separately.

8. CONTIGENT LIABILITIES :

2014-15 2013-14

* Claims against the Company not acknowledged as debt (Amount in Rs. 402846192 144321107

(Net of amount paid to statutory authorities and provided in to accounts)

* Claims against the Company not acknowledgement as debt includes demand from the Gujarat VAT Authority for payment of VAT and CST of Rs. 395090807/- and from the Indian Income Tax Authority for payment of tax of Rs. 3355385/- The Company has filed appeal with higher authorities and the Company has been legally advised that the additional demands raised are likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

9. During the financial year 2010-11, the Company has completed its Initial Public Offer (IPO) comprising of 77,00,000 equity shares at a price of Rs. 71 per share aggregating to Rs. 5467.00 lacs. The share premium of Rs. 61 per share amounting to Rs. 4697.00 lacs has been credited to Share Premium Account. The share issue expenses amounting to Rs. 510.69 lacs have been adjusted to Share Premium Account.

* It includes advances given to various parties for Land and Plant & Machinery for New Project.

* As on 31st March, 2015 unutilized funds have been temporarily invested in interest bearing liquid instruments including deposits with banks.

Plant & Machineries for Phase -I of new IPO project has been installed and Phase-II of the same is still under process.

10. In the opinion of Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all liabilities is adequate and not in excess of the amounts considered reasonably necessary.

11. Outstanding Balance of unsecured loans, trade receivalbes, trade payables, loans and advances and any other outstanding balances including all squared up accounts are subject to confirmation and reconciliation.

---

Mar 31, 2014

1. Terms / Rights attached to Equity Shares :

The Company has only one class of equity shares having a face value of R 10/- per share. Each equity shareholder is entitled to one vote per share. In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts.

2. Details of Term Loans are as under :

Term Loan from State Bank of Patiyala carries interest @ 12.75% p.a. The loan is repayable in 16 quarterly installments of Rs. 3200000/- each along with interest.

Auto Loans from ICICI Bank carries interest @ 10.12% p.a. The loan is repayable in 60 equated monthly installments total amounting to Rs. 87610/- along with interest.

Auto Loans from HDFC Bank carries interest @ 10.13% p.a. The loan is repayable in 60 equated monthly installments total amounting to Rs. 294280/- along with interest.

3. Details of Security of the Term Loans are as under :

Term Loans from State Bank of Patiyala and UCO Banks of Rs. 18227229/- (Previous Year Rs. 31370629/-) are secured by way of Pari Pasu Charge over the Land & Building, Plant & Machinery and other immovable & movable Fixed assets of the company both present and future and personal guarantee of some of the Directors of the Company as well as corporate guarantee of other group companies Auto Loans from ICICI Bank of Rs. 3317302/- (Previous Year r 3995196/-) are secured by way of hypothecation of respective vehicles.

Auto Loans from HDFC Bank of Rs. 12743838/- (Previous Year Rs. Nil) are secured by way of hypothecation of respective vehicles.

Working Capital loan from Bank is secured by way of hypothecation of Raw Materials, Work-in- Process, Finished Goods, Stores & Spares, Book Debts etc., and by way of second charge on Company''s immovable properties, and also personal guarantee of some of the Directors of the Company as well as corporate guarantee of other group companies.

Details of dues to Micro, Small and Medium Enterprise as defined under MSMED Act, 2006.

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure regarding :

a) Amount due and outstanding to suppliers at the end of accounting year,

b) Interest paid during the year,

c) Interest payable at the end of accounting year,

d) Interest accrued and unpaid at the end of the accounting year, have not been given.

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

* Fixed Deposit with banks includes deposits of Rs. 52331631/- (Previous Year Rs. 48805612/-) given as margin money for Letter of Credit issued by the bank in the favour of the Company.

All Fixed Deposits are with maturity of more than 12 months.

4. SEGMENT REPORTING :

The Company is mainly engaged in the business of manufacturing of S.S. Products. Considering the nature of business and financial reporting of company, the company has only one segment, viz. S.S. Products as reportable segment. The company operates in local/export segment geographically of which the export has amounted to Rs. 451214205/- out of total turnover of Rs. 2754537280/-. but due to nature of the business, the assets / liabilities and expenses for these activities can not be bifurcated separately.

5. CONTIGENT LIABILITIES :

2013-14 2012-13

Claims against the Company not

acknowledged as debt (Amount in Rs.) 0 0

Buyer''s Credit Outstanding (Amount in US$) 0 169463

6. During the financial year 2010-11, the Company has completed its Initial Public Offer (IPO) comprising of 77,00,000 equity shares at a price of Rs. 71 per share aggregating to Rs. 5467.00 lacs. The share premium of Rs. 61 per share amounting to Rs. 4697.00 lacs has been credited to Share Premium Account. The share issue expenses amounting to Rs. 510.69 lacs have been adjusted to Share Premium Account.

* It includes advances given to various parties for Land and Plant & Machinery for New Project.

# As on 31st March, 2014 unutilized funds have been temporarily invested in interest bearing liquid instruments including deposits with banks.

The Company has shifted the IPO project to the new land located at Kukarwada as approved by the shareholders in the Annual General Meeting of the Company held on 30th September, 2013. The process of land acquicition is completed, procedure of Land Development is started. The order of plants & machineries have been placed for which advances are given to various parties.

7. In the opinion of Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all liabilities is adequate and not in excess of the amounts considered reasonably necessary.

8. Outstanding Balance of unsecured loans, sundry debtors, sundry creditors, loans and advances and any other outstanding balances including all squared up accounts are subject to confirmation and reconciliation.

9. Expenditure related to and incurred during implementation of capital projects is included under "Capital Work in Progress" which will be allocated to the respective fixed assets on completion of construction / erection of the capital project / fixed assets. Dividend income from Mutual fund (Net of Redumption Loss) of Rs. 19121150/- received out of the investment of IPO proceed is deducted from "Capital Work in Progress".

10. The Subsidiary companies considered in the consolidated financial statements are :

Name of the Subsidiary Country of the Incorporation Date on which it became Subsidiary Effective Ownership in subsidiaries as at 2013-14 2012-13 Thai Indo Steel Co. Ltd. Thailand 12/11/2013 51.00% 0

11. Reasons for consolidation based on Management Accounts :

a) The Company has a holding of 51% in its subsidiary Company namely Thai Indo Steel Limited. In the absence of availability of the Audited financials for the purposes of this consolidated financial statement, Consolidated Financial Statement for the year 2013-14 was prepared with considering the Management Accounts of this subsidiaries.

b) Pursuant to the Securities Exchange Board of India circular no. CIR/CFD/DIL/7/2011 dated October 5, 2011, all listed companies are required to submit their Standalone and Consolidated annual audited results within 60 days from the end of the financial year. In respect of one of the subsidiairy namely Thai indo steel Limited it was not practicable to draw up the financial statements upto March 31, 2014 within the stipulated period. Accordingly, the management has considered unaudited financial statements of that subsidiary for the year ended November 30, 2013. Further, no material transactions and other events were found between December 1, 2013 and March 31, 2014 which required financial adjustments as per the requirements of AS 21.

12. Necessary adjustments are normally made in the CFS to align the accounting policy of all the group concerns with that of the company. However in respect of the following components of the consolidated financial statements, the accounting policies followed by the subsidiary is different from that of the company :-

Components of Consolidated Financial Statements Particulars Amount as at March 31, 2014 (in Rs.) Proportion of the component % Depreciation (Post Acquisition) The Subsidiary has provided Depreciation on Straight Line Method as against Written Down Value followed by the Company. -- 0.00% Accumulated Depreciation 5524.36 0.00%

13. SEGMENT REPORTING :

The Company is mainly engaged in the business of manufacturing of S.S. Products. Considering the nature of business and financial reporting of company, the company has only one segment, viz. S.S. Products as reportable segment. The company operates in local / export segment geographically of which the export has amounted to R 451214205/- out of total turnover of R 2754537280/- but due to nature of the business, the assets / liabilities and expenses for these activities can not be bifurcated separately.

14. CONTIGENT LIABILITIES :

2013-14 2012-13

Claims against the Company not

acknowledged as debt (Amount in Rs.) 0 0

Buyer''s Credit Outstanding 0 169463 (Amount in US$)

15. During the financial year 2010-11, the Company has completed its Initial Public Offer (IPO) comprising of 77,00,000 equity shares at a price of Rs. 71 per share aggregating to Rs. 5467.00 lacs. The share premium of Rs. 61 per share amounting to Rs. 4697.00 lacs has been credited to Share Premium Account. The share issue expenses amounting to Rs. 510.69 lacs have been adjusted to Share Premium Account.

---

Mar 31, 2013

1.1 Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a face value of Rs. 10/- per share. Each equity shareholder is entitled to one vote per share.In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts.

1.2 Shares held by holding/ultimate holding company and/or their subsidiaries/associates : - Nil

2.1 Details of Term Loans are as under :

Term Loan from State Bank of Patiyala carries interest @ 12.75% p.a. The loan is repayable in 16 quarterly installments of Rs. 3200000/- each along with interest.

Term Loan from UCO Bank carries interest @ 13.75% p.a. The loan is repayable in 20 quarterly installments of Rs. 3125000/- each along with interest.

Auto Loans from ICICI Bank carries interest @ 10.12% p.a. The loan is repayable in 60 equated monthly installments of Rs. 87610/- each along with interest.

2.2 Details of Security of the Term Loans are as under :

Term Loans from State Bank of Patiyala and UCO Banks of Rs. 31370629/- (Previous Year Rs. 54662761/-) are secured by way of Pari Pasu Charge over the Land & Building, Plant & Machinery and other immovable & movable Fixed assets of the company both present and future and personal guarantee of some of the Directors of the Company as well as corporate guarantee of other group companies. Auto Loans from ICICI Bank of Rs. 3995196/- (Previous Year Rs. NIL/-) are secured by way of hypothecation of respective vehicles.

Details of dues to Micro, Small and Medium Enterprise as defined under MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure regarding :

a) Amount due and outstanding to suppliers at the end of accounting year,

b) Interest paid during the year,

c) Interest payable at the end of accounting year,

d) Interest accrued and unpaid at the end of the accounting year, have not been given. The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

3.1 As per Accounting Standard 15 "Employee Benefits", the disclosures of Employee benefits as defined in the Accounting Standard are given below:

Defined Contribution Plans

4. SEGMENT REPORTING :

The Company is mainly engaged in the business of manufacturing of S.S. Products. Considering the nature of business and financial reporting of company, the company has only one segment, viz. S.S. Products as reportable segment. The company operates in local / export segment geographically of which the export has amounted to Rs. 302555673/- out of total turnover of Rs. 2864400816/-. but due to nature of the business, the assets / liabilities and expenses for these activities can not be bifurcated separately.

5. CONTIGENT LIABILITIES :

2012-13 2011-12

Claims against the Company not acknowledged as debt (Amount in Rs.) 0 0

Buyer''s Credit Outstanding (Amount in US$) 169463 649995

6. During the financial year 2010-11, the Company has completed its Initial Public Offer (IPO) comprising of 77,00,000 equity shares at a price of Rs. 71 per share aggregating to Rs. 5467.00 lacs. The share premium of Rs. 61 per share amounting to Rs. 4697.00 lacs has been credited to Share Premium Account. The share issue expenses amounting to Rs. 510.69 lacs have been adjusted to Share Premium Account.

* It includes advances given to various parties for Land and Plant & Machinery for New Project.

# As on 31st March, 2013 unutilized funds have been temporarily invested in interest bearing liquid instruments including deposits with banks and investments in mutual funds.

As Company has not received the NA permission of land located at Magodi from the Government for its IPO Project the Board of Directors have decided to shift the IPO project to the new land already acquired by the company, located at Kukarwada and the same will be subject to approval and ratification of shareholders in the ensuing Annual General Meeting of the Company. The statutory approvals of new land is still under process, consequently procedure of Land Development, Civil Works and setup of new Plant is not started. However, the order of plants & machineries have been placed for which advances are given to various parties.

7. In the opinion of Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all liabilities is adequate and not in excess of the amounts considered reasonably necessary.

8. Outstanding Balance of unsecured loans, sundry debtors, sundry creditors, loans and advances and any other outstanding balances including all squared up accounts are subject to confirmation and reconciliation.

9. Expenditure related to and incurred during implementation of capital projects is included under "Capital Work in Progress" which will be allocated to the respective fixed assets on completion of construction / erection of the capital project / fixed assets. Dividend income from Mutual fund of Rs. 19500920/- received out of the investment of IPO proceed is deducted from "Capital Work in Progress".

---

Mar 31, 2012

1.1 2275520 Equity Shares out of the issued, subscribed and paid up share capital were alotted as Bonus Shares in last five years by utilisation of General Reserve Account.

1.2 Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a face value of Rs. 10/- per share. Each equity shareholder is entitled to one vote per share.In the event of liquidation of the company, the holders of equity shares will be entitled to receive the remaining assets of the company, after distribution of all preferential amounts.

1.3 Shares held by holding/ultimate holding company and/or their subsidiaries/associates : - Nil

2.1 Details of Term Loans are as under :

Term Loan from State Bank of Patiyala carries interest @ 12.75% p.a. The loan is repayable in 16 quarterly installments of Rs. 3200000/- each along with interest.

Term Loan from UCO Bank carries interest @ 13.75% p.a. The loan is repayable in 20 quarterly installments of Rs. 3125000/- each along with interest.

2.2 Details of Security of the Term Loans are as under :

Term Loans from State Bank of Patiyala and UCO Banks of Rs. 54662761/- (Previous Year Rs. 58645603/-) are secured by way of Pari Pasu Charge over the Land & Building, Plant & Machinery and other immovable & movable Fixed assets of the company both present and future and personal guarantee of some of the Directors of the Company as well as corporate guarantee of other group companies.

Working Capital loan from Bank is secured by way of hypothecation of Raw Materials, Work-in-Process, Finished Goods, Stores & Spares, Book Debts etc., and by way of second charge on Company's immovable properties, and also personal guarantee of some of the Directors of the Company as well as corporate guarantee of other group companies.

Details of dues to Micro, Small and Medium Enterprise as defined under MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure regarding :

a) Amount due and outstanding to suppliers at the end of accounting year,

b) Interest paid during the year,

c) Interest payable at the end of accounting year,

d) Interest accrued and unpaid at the end of the accounting year, have not been given.

The Company is making efforts to get the confirmation from the suppliers as regards their status under the Act.

* Fixed Deposit with banks includes deposits of Rs. 49454453/- (Previous Year Rs. 42167000/-) given as margin money for Letter of Credit issued by the bank in the favour of the Company.All Fixed Deposits are with maturity of more than 12 months.

Defined Benefit Plans

At present, the company has not any Defined Benefit Plans which are managed by other third party like LIC etc. However, the company is making provision for the present value of gratuity payable based on actuarial valuation using Projected Unit Credit Method. The company has not made any provision for leave encashment , but the same is recognised as expenses on actual payment basis.

* Excise Duty shown under Expenditure represents the aggregate of excise duty borne by the Company and difference between excise duty on opening stock and closing stock of finished goods.

3. SAGMENT REPORTING :

The Company is mainly engaged in the business of manufacturing of S.S. Products. Considering the nature of business and financial reporting of company, the company has only one segment, viz. S.S. Products as reportable segment. The company operates in local / export segment geographically of which the export has amounted to Rs. 76401586/- out of total turnover of Rs. 2124185022/- But due to nature of the business, the assets / liabilities and expenses for these activities can not be bifurcated separately.

4. CONTIGENT LIABILITIES :

2011-12 2010-11

Claims against the Company not acknowledged as debt (Amount in Rs.) 0 0

Buyer's Credit Outstanding (Amount in US$) 649995 825273

5. During the previous financial year, the Company has completed its Initial Public Offer (IPO) comprising of 77,00,000 equity shares at a price of Rs. 71 per share aggregating to Rs. 5467.00 lacs. The share premium of Rs. 61 per share amounting to Rs. 4697.00 lacs has been credited to Share Premium Account. The share issue expenses amounting to Rs. 510.69 lacs have been adjusted to Share Premium Account.

* It includes advances given to various parties for Land and Plant & Machinery for New Project.

# As on 31st March, 2012 unutilized funds have been temporarily invested in interest bearing liquid instruments including deposits with banks and investments in mutual funds.

6. In the opinion of Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business. The provision for all liabilities is adequate and not in excess of the amounts considered reasonably necessary.

7. Outstanding Balance of unsecured loans, sundry debtors, sundry creditors, loans and advances and any other outstanding balances including all squared up accounts are subject to confirmation.

8. Expenditure related to and incurred during implementation of capital projects is included under "Capital Work in Progress" which will be allocated to the respective fixed assets on completion of construction / erection of the capital project / fixed assets. Dividend income from Mutual fund of Rs. 9819780/- received out of the investment of IPO proceed is deducted from "Capital Work in Progress".