Notes to Accounts of Super Iron Foundry Ltd.

Mar 31, 2025

iii) The Board of Directors of the Company in the Board meeting dated July 03, 2024 and Shareholders of the company in the Extra Ordinary General Meeting dated July 03, 2024 have approved the increase of Authorized Share Capital of the Company from existing Rs. 1,650.00 Lakhs divided into 1,65,00,000 equity shares of Rs. 10/- each to Rs. 1,800.00 Lakhs divided into 1,80,00,000 equity shares Rs. 10/- each ranking pari passu in all respect with the existing equity shares of the Company as per the Memorandum and Articles of Association of the Company.

iv) The Board of Directors of the Company in the Board meeting dated July 13, 2024 and Shareholders of the company in the Extra Ordinary General Meeting dated July 13, 2024 have approved to create, offer, issue and allot on private placement of 5,53,000 of equity shares of the company of face value of Rs. 10/- each at a Premium of Rs. 66/- each aggregating to a value Rs. 420.28 Lakhs.

v) The Board of Directors of the Company in the Board meeting dated August 1,2024 and Shareholders of the company in the Extra Ordinary General Meeting dated August 1, 2024 have approved to create, offer, issue and allot on private placement of 40,000 of equity shares of the company of face value of Rs. 10/- each at a Premium of Rs. 66/- each aggregating to a value Rs. 30.40 Lakhs.

vi) The Board of Directors of the Company in the Board meeting dated September 13, 2024 and Shareholders of the company in the Extra Ordinary General Meeting dated September, 2024 have approved the increase of Authorized Share Capital of the Company from existing Rs. 1,800.00 Lakhs/- divided into 1,80,00,000 equity shares of Rs. 10/- each to Rs. 2,400.00 Lakhs/- divided into 2,40,00,000 equity shares Rs. 10/- each ranking pari passu in all respect with the existing equity shares of the Company as per the Memorandum and Articles of Association of the Company.

vii) The Company has completed its initial public offer (IPO) of 63,01,200 Equity shares of face value of Rs 10 each at an issue price of Rs 108/- per share amounting to Rs 6,805.30/- Lakhs. The equity shares of the company were listed on BSE SME Platform of Bombay Stock Exchange (India Limited ("BSE SME”) on 16th March, 2025.

f) Rights, Preferences and Restrictions attaching to each class of shares

The Company has only 1 Class of Equity Shares having a par value of Rs 10/- per share. Each holder of Equity Share 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 remaining assets of the company, after distribution of all preferential amounts. The distribution will be in the proportion to the No. of shares held by the shareholder.

The above amount represents the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of different legal processes which have been invoked by the company or the claimants as the case may be, and therefore, cannot be estimated accurately. The Company does not expect any reimbursements in respect of the above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above, on the grounds that there are fair chances of successful outcome of appeals.

Note - 28 Disclosures under Accounting Standards28.1 Employee Benefit Plans Defined Contribution Plans

The Company makes contribution towards provident fund and Employee''s State Insurance Corporation (ESIC) to a defined contribution retirement benefit plan for qualifying employees. The Provident Fund plan and ESIC are operated by concerned Government agencies created for the purpose. Under the said schemes the company is required to contribute a specific percentage of pay roll costs in respect of eligible employees to the Scheme to fund the benefits. The contribution payable to these plans by the company is at the rates specified in the rules of the scheme. The contributions payable to these plans by the Company are at the rates specified in the rules of the scheme.

28.2 Defined Benefit Plan:

The following are the types of defined benefit plans:

a) Gratuity Plan

15 days salary for every completed year of service. Vesting period is 5 years and payment is restricted to Rs. 10 lacs. The present value of defined obligation and related current cost are measured using the Projected Credit Method with actuarial valuation being carried out at each balance sheet date.

b) Risk Exposure

Through its defined benefit plans, the company is exposed to a number of risks, the most significant of which are detailed below:

Interest Rates Risk	The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.
Salary Inflation Risk	Higher than expected increases in salary will increase the defined benefit obligation.
Demographic Risks	This is the risk of volatility of results due to unexpected nature of decrements that include mortality attrition, disability and retirement. The effects of these decrement on the DBO depends upon the combination salary increase, discount rate, and vesting criteria and therefore not very straight forward. It is important not to overstate withdrawal rate because the cost of retirement benefit of a short caring employees will be less compared to long service employees.

Actuarial Risk	It is the 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 cash flow 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.
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 cash flows.
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.

The company operates in one vertical only and the criteria for segment as specified in AS-17 is not satisfied. Therefore,segment reporting is not done.

No other operating segments have been aggregrated to form the above reportable operating segments as per the criteria specified in the AS-17.

Note - 32

The information regarding amounts due to creditors registered under the Micro, Small and Medium Enterprises Development Act, 2006, has been given to the extent available with the Company. The required disclosures of outstanding dues of micro, small & medium enterprises are as under:

i) Balance of Debtors & Creditors & Loans & advances Taken & giving are subject to confirmation and subject to consequential adjustments, if any. Debtors & creditors balance has been shown separately and the advances received and paid from/ to the parties is shown as advance from customer and advance to suppliers.

ii) The Company has borrowed from Banks and Financial Institutions during the Year.

iii) The Company has borrowed funds from banks / Financial Institutions (being current assets as collateral security) during the year under review (Refer Note 7).

iv) The company is not covered under section 135 of the companies act, hence no disclosure has been provided with regard to CSR activities.

v) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

vi) As per the information & detail available on records and the disclosure given by the management, the company has complied with the number of layers prescribed under clause (87) of section 2 of the companies act read with the Companies (Restriction on number of layers) Rules 2017.

vii) The company has registered all the charges which are required to be registered under the terms of the loan and liabilities and submitted Documents with ROC within the period as required by Companies Act, 2013. The company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

viii) The Company has not traded or invested in crypto currency or virtual currency for the financial year 2024-25 & 2023-24.

ix) The Company has not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

x) The Company do not have any such transactions 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.

xi) The company do not have any transactions during the financial year 2024-25 & 2023-24 with struck off companies under Section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

xii) "The Company has not received any fund from any person or entity, 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 Company (Ultimate Benificiaries); or

b) provide any guarantee, security or the like on behalf of the Company.”

xiii) The Company has revalued its Property, Plant and Equipment as of 31^st March 2025, resulting in a revaluation surplus of Rs. 4,293.76 lakhs. This revaluation was carried out based on the valuation report dated 15^th May 2025, prepared by an independent registered valuer.

xiv) The company has not given any loans or advances in the nature of loans to promoters, directors, KMP''s and their related parties either severally or jointly with any other person(s) or entity(ies).

Note - 35

(i) Previous year figures have been regrouped/rearranged/ reclassified where necessary to correspond with current year figures.

(ii) Figures representing 0.00 Lakhs are below Rs. 500.