Notes to Accounts of SP Refractories Ltd.

Mar 31, 2025

1. COMPANY INFORMATION

Our Company SP Refractories Limited is engaged in manufacturing and supplying Refractory Material made using hydrated lime, Calcined Alumina and other raw materials. Our core focus is on refractory cement which is a niche and high margin cement widely used in iron & steel and construction industries because of its thermal conductivity, Maximum strength and Heat resistance.

Our Company began its operations in the year 2007 with manufacturing of refractory cement and castables. Before incorporation of the company, Late Sri. Prabodh Kale, was running the established business of refractory cement in a partnership firm named Shanark Industries based out of Nagpur. Post his demise, his wife, Namita Kale took the business activities forward under SP Refractories Limited as the promoter along with her daughter Shweta Kale and Prajakta Kale.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

2.1. Basis of Preparation & Use of Estimates

The financial statements have been prepared on accrual basis under the historical cost convention, in accordance with the accounting principles generally accepted in India and comply with the Accounting Standards specified under section 133 of The Companies Act, 2013 and the relevant provisions of the Companies Act, 2013 and with the relevant provisions of the Companies Act, 2013, to the extent applicable.

The preparation of the financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets, liabilities, revenue, expenses and disclosure of contingent liabilities on the date of financial statements. The recognition, measurement, classification or disclosures of an item or information in the financial statements are made relying on these estimates. Any revision to accounting estimates is recognized prospectively.

2.2 Property Plant and Equipment Tangible Assets

Tangible Assets are stated at cost net of recoverable taxes, trade discounts and rebates, less accumulated depreciation and impairment loss, if any. The cost of Tangible Assets comprises its purchase price, borrowing cost and any cost directly attributable to bringing the asset to its working condition for its intended use.

Subsequent expenditures related to an item of Tangible Asset are added to its book value only if they increase the future benefits from the existing asset beyond its previously assessed standard of performance.

Advance given towards acquisition of fixed assets and the cost of assets not ready for use as at the balance sheet date are disclosed under long term loans & advances and capital work in progress respectively.

Intangible Assets

Intangible Assets are stated at cost of acquisition net of recoverable taxes less accumulated amortization/depletion and impairment loss, if any. The cost comprises purchase price, borrowing costs, and any cost directly attributable to bringing the asset to its working condition for the intended use.

2.3 Depreciation & Amortization

Depreciation on Tangible assets purchased / disposed of during the period is provided on pro rata basis with reference to the date of additions / deductions. Depreciation on tangible assets is provided using the rates based on economic useful lives of assets as per Companies Act, 2013 and the straight-line method specified as per schedule II of the Companies Act, 2013. However, there is one addition in fixed asset named

Shed M-10 for which depreciation is charged considering useful life as 15 years as per management judgement.

2.4 Revenue Recognition

Revenue is recognized only when risks and rewards incidental to ownership are transferred to the customer, it can be reliably measured and it is reasonable to expect ultimate collection. Revenue from operations includes sale of goods, services net of discounts, goods and service tax and other duties.

Revenue from fixed-price and fixed-time frame contracts, where there is no uncertainty as to measurement or collectability of consideration, is recognized based upon the percentage of completion or proportionate efforts method depending upon the circumstances. When there is uncertainty as to measurement or ultimate collectability revenue recognition is postponed until such uncertainty is resolved.

Interest income is recognized on a time proportion basis taking into account the amount outstanding and the interest rate applicable.

2.5 Employee Benefits

Short Term Employee Benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized as an expense during the period when the employees render the services. These benefits include salaries, wages, allowances, performance incentive and compensated absences.

Long Term Employee BenefitsDefined contribution plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund, Superannuation Fund and Pension Scheme. The Company’s contribution is recognized as an expense in the

Profit and Loss Statement during the period in which the employee renders the related service.

2.6 Earnings per share

The basic earnings per share is calculated by dividing the net profit after tax by weighted average number of equity shares outstanding during the reporting period. The number of shares considered in computing basic earnings per share is the weighted average number of shares outstanding during the year.

Number of equity shares used in computing diluted earnings per share comprises the weighted average number of shares considered for basic earnings per share and also weighted average number equity shares which would have been issued on conversion of all dilutive potential preference shares / debentures. In computing diluted earnings per share only potential equity shares that are dilutive are considered.

Computation of Earnings per Share (Basic & Diluted)	2024-25	2023-24
Net Profit (After Tax) attributable to
Shareholders	2,09,06,214.96	1,55,86,117.84
Profit after tax for the Year.
Weighted Average Number of Equity
Shares	1789500.00	1789500.00
outstanding during the period
Earnings per Share (Nominal value Rs. 10/-per share) Basic EPS	11.68	8.71
Diluted EPS	11.68	8.71

Basic Earnings per Share is Calculated by dividing the Net Profit attributable to Equity Shareholders by the weighted average number of Equity Shares Outstanding during the year.

Working for weighted average number of shares
Opening Shares	1789500	1789500
Add: Shares allotted
Total no of Shares	1789500	1789500
Total weighted shares	1789500	1789500

2.7 Taxes on Income

Provision for current income tax is made on the basis of the taxable income for the year in accordance with the Income Tax Act, 1961. Deferred tax resulting from timing differences between taxable income and accounting income is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences ae expected to crystallize.

Deferred tax assets are recognized and carried forward only if there is a virtual certainty that they will be realized and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. When there are unabsorbed depreciation and carry forward losses as per Income Tax Act, deferred tax assets are recognized only if there exist virtual certainty of their realization.

2.8 Impairment of Assets

In accordance with AS 28 on ‘Impairment of Assets’ issued by the Institute Of Chartered Accountants of India, where there is an indication of impairment of the Company’s assets related to cash generating units, the carrying amounts of such assets are reviewed at each balance sheet date to determine whether there is any impairment.

An impairment loss is realizable whenever the carrying amount of such assets exceeds its recoverable amount, impairment loss is recognized in the Statement of profit and

loss. If at the balance sheet date there is an indication that a previously assessed impairment loss no longer exists, then such loss is reversed and the asset is restated to extent of the carrying value of the asset that would have been determined (net of amortization / depreciation) had no impairment loss been recognized.

2.9 Investments

Current investments are carried at lower of cost and quoted/fair value, computed category-wise. Non-Current investments are stated at cost. Provision for diminution in the value of Non-Current investments is made only if such a decline is other than temporary.

2.10 Borrowing Cost

As per the provisions of Accounting Standard 16, Borrowing cost are recognized as expenses in the year in which they are incurred and includes interest, processing fee, premium on redemption and other charges.

2.11 Provisions, contingent liabilities and contingent assets

Provision is recognized in the accounts when there is a present obligation as a result of past event(s) and it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate can be made.

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.

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial statements.

2.12 Inventories

Cost of inventories comprises of all costs of purchase, conversion and other costs incurred in bringing the inventories to their present location and condition.

Raw material are valued at lower of cost and net realizable value. Cost is determined under the first-in, first-out method.

Work in progress and finished goods are valued at lower of cost and net realizable value. Fixed production overheads are allocated on the basis of normal capacity of production facilities.

The net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and estimated costs necessary to make the sale.

3. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ?10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

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

28. The Company has no outstanding derivatives as at 31^st March 2025 (PY - Nil). Foreign Currency exposures not hedged by derivative instrument or otherwise.

29. The company is engaged in only one business hence no information has been furnished in accordance with AS 17 on “Segment Reporting” issued by the Institute of Chartered Accountants of India.

30. The Company does not have any pending litigations as at 31^st March 2025 .

31. The Company did not have any long-term contracts including derivative contracts for which there were any material foreseeable losses.

32. There were no amounts which were required to be transferred to the Investor Education and Protection Fund by the Company during the year ended 31^st March 2025.

33. Prior year figures have been reclassified / regrouped wherever necessary to confirm to the current year’s classification.

34. The Company has borrowing (Cash Credit Limit ) from HDFC Bank on the basis of security of current assets and company is regular in submitting quarterly return or statement of current assets and submitted statements were in agreement with books of account.

35. The Company has not revalued any Property, Plant and Equipment (Including Right of use Assets) during the F.Y. 2024-25.

36. The Company has no Intangible Assets under development during the F. Y. 2024-25.

37. Neither any proceedings have been initiated nor pending against the company for holding any benami property under the “Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

38. The company is a not declared as wilful defaulter by any bank or financial institution or other lender.

39. The company does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act 1956.

40. There are no Charges or Satisfaction of charges which are yet to be registered with Registrar of Companies.

41. The provisions of clause 87 of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 with respect to restriction on number of layers of companies do not apply.

42. No Scheme of Arrangement has been approved by the Competent Authority in terms of section 230 to 237 of the companies Act, 2013, Hence, no disclosure to the effect of such Scheme of Arrangement have been accounted for in the books of account of the company ‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and deviation in this regard shall be explained.

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

44. The figures stated in financials have been rounded off to the nearest decimal (in Lakhs) wherever required. Signature to the notes No 1-42 forming part of the accounts

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Mar 31, 2024

2.11 Provisions, contingent liabilities and contingent assets

Provision is recognized in the accounts when there is a present obligation as a
result of past event(s) and it is probable that an outflow of resources will be
required to settle the obligation and a reliable estimate can be made.

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.

Contingent liabilities are disclosed unless the possibility of outflow of resources is
remote. Contingent assets are neither recognized nor disclosed in the financial
statements.

2.12 Inventories

Cost of inventories comprises of all costs of purchase, conversion and other costs
incurred in bringing the inventories to their present location and condition.

Raw material are valued at lower of cost and net realizable value. Cost is
determined under the first-in, first-out method.

Work in progress and finished goods are valued at lower of cost and net realizable
value. Fixed production overheads are allocated on the basis of normal capacity of
production facilities.

The net realizable value is the estimated selling price in the ordinary course of
business less the estimated costs of completion and estimated costs necessary to
make the sale.

3. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ?10/- per
share. Each holder of equity shares is entitled to one vote per share. The company
declares and pays dividends in Indian rupees. The holders of the equity shares are
entitled to receive dividends as declared from time to time, and are entitled to voting
rights proportionate to their share holding at the meetings of shareholders.

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

25. Related Party Disclosure

(a) List of Related Party And Nature Of Relationship
Name of related Party Relationship

26. The Company has no outstanding derivatives as at 31^st March 2024 (PY - Nil). Foreign
Currency exposures not hedged by derivative instrument or otherwise.

27. The company is engaged in only one business hence no information has been furnished
in accordance with AS 17 on “Segment Reporting” issued by the Institute of Chartered
Accountants of India.

28. The Company does not have any pending litigations as at 31^st March 2024.

29. The Company did not have any long-term contracts including derivative contracts for
which there were any material foreseeable losses.

30. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company during the year ended 31^st March
2024.

31. Prior year figures have been reclassified / regrouped wherever necessary to confirm to
the current year’s classification.

32. The Company has borrowing (Cash Credit Limit ) from HDFC Bank on the basis of
security of current assets and company is regular in submitting quarterly return or
statement of current assets and submitted statements were in agreement with books of
account.

33. The Company has not revalued any Property, Plant and Equipment (Including Right of
use Assets) during the F.Y. 2023-24.

34. The Company has no Intangible Assets under development during the F. Y. 2023-24.

35. Neither any proceedings have been initiated nor pending against the company for holding
any benami property under the “Benami Transactions (Prohibition) Act, 1988 (45 of 1988)
and the rules made thereunder.

36. The company is a not declared as willful defaulter by any bank or financial institution or
other lender.

37. The company does not have any transaction with companies struck off under section 248
of the Companies Act, 2013or section 560 of the Companies Act 1956.

38. There are no Charges or Satisfaction of charges which are yet to be registered with
Registrar of Companies.

39. The provisions of clause 87 of section 2 of the Act read with Companies (Restriction on
number of Layers) Rules, 2017 with respect to restriction on number of layers of
companies do not apply.

40. No Scheme of Arrangement has been approved by the Competent Authority in terms of
section 230 to 237 of the companies Act, 2013, Hence, no disclosure to the effect of such
Scheme of Arrangement have been accounted for in the books of account of the company
‘in accordance with the Scheme’ and ‘in accordance with accounting standards’ and
deviation in this regard shall be explained.

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

42. The figures stated in financials have been rounded off to the nearest decimal (in Lakhs)
wherever required. Signature to the notes no 1-42 forming part of the accounts

For Zoeb Anwar & Co. For and on behalf of the Board of

Chartered Accountants SP Refractories Limited

Sd/-

Zoeb I Anwar Sd/- Sd/-

(Proprietor ) Name: Namita Kale N am e: Shweta Kale

M No.: 101496 Whole-Time Director Director/CFO

UDIN No: 24101496BK ADNQ7188 DIN: 01586375 DIN: 01586321

Place : Nagpur
Date : 15-05-2024

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Mar 31, 2023

2.11 Provisions, contingent liabilities and contingent assets

Provision is recognized in the accounts when there is a present obligation as a result of past
event(s) and it is probable that an outflow of resources will be required to settle the
obligation and a reliable estimate can be made.

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

Contingent liabilities are disclosed unless the possibility of outflow of resources is remote.
Contingent assets are neither recognized nor disclosed in the financial statements.

2.12 Inventories

Cost of inventories comprises of all costs of purchase, conversion and other costs incurred
in bringingthe inventories to their present location and condition.

Raw material are valued at lower of cost and net realizable value. Cost is determined under
the first-in, first-out method.

Work in progress and finished goods are valued at lower of cost and net realizable value.
Fixed production overheads are allocated on the basis of normal capacity of production
facilities.

The net realizable value is the estimated selling price in the ordinary course of business less
theestimated costs of completion and estimated costs necessary to make the sale.

3. Terms/rights attached to equity shares

The Company has only one class of equity shares having a par value of ?10/- per share. Each holder
of equity shares is entitled to one vote per share. The company declares and pays dividends in
Indian rupees. The holders of the equity shares are entitled to receive dividends as declared from
time to time, and are entitled to voting rights proportionate to their share holding at the meetings of
shareholders.

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

The Company has issued shares to public through initial public offer in the previous year, Details
regarding the issue of equity shares in market is as under:

14,91,900 Equity Shares
of face value of ?10 each

Equity shares outstanding prior to the

Issue:

Up to 17,89,500 Equity
Equity shares outstanding after the Issue: Shares of face value of

?10 each

Face Value Per
Share:?10

Fresh Issue (Approx):

Share Premium: ? 80
Issue Price: ? 90

25. Related Party Disclosure

(a) List of Related Party And Nature Of Relationship

Name of related Party Relationship

Namita P Kale Director

Shweta P Kale Director

Praj akta P Kale Director

(b) Transaction With Related Parties

List of related parties with whom transactions took place during the year:

Sr. No	Name of Related Party	Nature of Relationship	Nature of Transaction	Amount of Transaction
1	Namita Kale	Director	Remuneration	19,44,000/-
2	Shweta Kale	Director	Remuneration	12,00,000/-
3	Shweta Kale	Director	Sitting Fees	72,000/-
4	Namita Kale	Director	Rent	30,000/-
5	Prajakta Kale	Director	Sales Commission	6,36,000/-
6	Shweta Kale	Director	Rent	1,32,000/-

26. The Company has no outstanding derivatives as at 31^st March 2023 (PY - Nil) . Foreign
Currency exposures not hedged by derivative instrument or otherwise.

27. The company is engaged in only one business hence no information has been furnished in
accordance with AS 17 on “Segment Reporting” issued by the Institute Of Chartered
Accountants Of India.

28. The Company does not have any pending litigations as at 31^st March 2023.

29. The Company did not have any long-term contracts including derivative contracts for which there
were any material foreseeable losses.

30. There were no amounts which were required to be transferred to the Investor
Education and Protection Fund by the Company during the year ended 31^st March 2023.

31. Prior year figures have been reclassified / regrouped wherever necessary to confirm to the current
year’s classification.

32. The Company has borrowing (Cash Credit Limit ) from HDFC Bank on the basis of
security of current assets and company is regular in submitting quarterly return or statement of current
assets and submitted statements were in agreement with books of account.

33. The Share Premium amount arises in the process of IPO in previous year was utilized for working
capital for which it was raised.

34. The Company has not revalued any Property, Plant and Equipment (Including Right of
use Assets) during the F.Y. 2022-23.

35. The Company has no Intangible Assets under development during the F. Y. 2022-23.

36. Neither any proceedings have been initiated nor pending against the company for
holding any benami property under the “Benami Transactions (Prohibition) Act, 1988 (45
of 1988) and the rules made thereunder.

37. The company is a not declared as willful defaulter by any bank or financial institution or
other lender.

38. The company does not have any transaction with companies struck off under section 248 of the

Companies Act, 2013or section 560 of the Companies Act 1956.

39. There are no Charges or Satisfaction of charges which are yet to be registered with
Registrar of Companies.

40. The provisions of clause 87 of section 2 of the Act read with Companies (Restriction on
number of Layers) Rules, 2017 with respect to restriction on number of layers of
companies do not apply.

41. . No Scheme of Arrangement has been approved by the Competent Authority in terms of

section 230 to 237 of the companies Act, 2013, Hence, no disclosure to the effect of sucl
Scheme of Arrangement have been accounted for in the books of account of the company ii
accordance with the Scheme'' and ''in accordance with accounting standards'' and deviation ii
this regard shall be explained.

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

43. The figures stated in financials have been rounded off to the nearest decimal (in Lakhs)
wherever required

Signature to the notes no 1 - 43 forming part of the accounts

FOR ZOEB ANWAR & CO
CHARTERED ACCOUNTANTS

Sd/-

ZOEB I. ANWAR Sd/- Sd/-

(Proprietor ) NAMITA KALE SHWETA KALE

M NO 101496 WHOLE TIME IRECTOR DIRECTOR

UDIN NO:23101496BGPUSU3320 DIN: 01586375 DIN: 01586321

Place : Nagpur
Date : 23/05/2023