Notes to Accounts of Supreme Engineering Ltd.

Mar 31, 2025

1.14 Provisions, Contingent liabilities, Contingent assets and Commitments:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, 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. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset,
but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any
reimbursement.

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

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not probable that an outflow of resources will be required to settle the obligation

- a present obligation arising from past events, when no reliable estimate is possible

- a possible obligation arising from past events, unless the probability of outflow of resources is remote. Commitments include the amount of purchase order

1.15 Current and Non-current Classification:

The Company’s presents assets and liabilities in the balance sheet are based on current/non-current classification.

An asset as current when it is:

- Expected to be realised or intended to sold or consumed in normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after the reporting period, Or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

- 10% Recovery account is created by bank to recover the borrowings which have become NPA in the current financial year. The bank as a process to recover
the outstanding dues, debits an amount of 10% of the credit received in the bank account of the company

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, Or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

Deferred tax assets / liabilities are classified as non-current.

All other liabilities are classified as non-current.

1.16 Fair Value Measurement:

The Company measures financial instruments of certain investments at fair value, at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the
measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability. The principal or the most advantageous market must be
accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that
market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant''s ability to generate economic benefits by using the asset in its highest
and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing
the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as
follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable
Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the balance sheet on a recurring basis, the Company determines whether transfers have occurred between levels
in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the
asset or liability and the level of the fair value hierarchy as explained above.

1.17 Financial instruments

Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets:

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income. For investments in equity
instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at
fair value through other comprehensive income.

Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial assets are recognized initially at
fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the
financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss.

Subsequent measurement

After initial recognition, financial assets (other than investments in subsidiaries and joint ventures) are measured either at:

i) fair value (either through other comprehensive income or through profit or loss) or,

ii) amortized cost

Measured at amortized cost:

Financial assets that are held within a business model whose objective is to hold financial assets in order to collect contractual cash flows that are solely
payments of principal and interest, are subsequently measured at amortized cost using the effective interest rate (‘EIR’) method less impairment, if any, the
amortization of EIR and loss arising from impairment, if any is recognized in the Statement of Profit and Loss.

Measured at fair value through other comprehensive income (FVOCI):

Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contractual cash flows that are
solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income. Fair value movements are recognized in
the other comprehensive income (OCI) net of taxes.

Interest income measured using the EIR method and impairment losses, if any are recognized in Profit and Loss.

In case of investment in equity instruments classified as the FVOCI, the gains or losses on de-recognition are re-classified to retained earnings.

In case of Investments in debt instruments classified as the FVOCI, the gains or losses on de-recognition are reclassified to statement of Profit and Loss.
Measured at fair value through profit or loss (FVTPL):

A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL. Such financial assets are measured at fair value with all changes in
fair value, including interest income and dividend income if any, recognized as ‘other income’ in the Statement of Profit and Loss.

The Company measures all its investments in equity (other than investments in subsidiaries and joint ventures) and mutual funds at FVTPL.

Changes in the fair value of financial assets measured at fair value through profit or loss are recognized in Profit and Loss.

Impairment losses (and reversal of impairment losses) on equity investments measured at FVTPL are recognised in Profit and Loss.

Impairment of financial assets:

The Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortized cost, FVTPL and FVOCI
and debt instruments. The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivable only, the Company applies the simplified approach permitted by Ind AS - 109 Financial Instruments, which requires expected lifetime
losses to be recognised from initial recognition of such receivables.

i) The Company has transferred the rights to receive cash flows from the financial asset or

ii) Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more
recipients.

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial
asset. In such cases, the financial asset is de-recognized.

Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognized.

1.18 Financial liabilities
Classification as debt or equity

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the
definitions of a financial liability and an equity instrument.

Initial recognition and measurement
Subsequent measurement

Financial liabilities other than those measured at fair value through profit and loss are subsequently measured at amortized cost using the effective interest rate
method. The Company measures all debt instruments at amortised.

Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in Profit and Loss.
De-recognition.

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires.

Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognized
amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be
contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or
the counterparty.

1.19 Segment Reporting - Identification of Segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating
results are regularly reviewed by the company’s chief operating decision maker to make decisions for which discrete financial information is available. Based
on the management approach as defined in Ind AS 108, the chief operating decision maker evaluates the Company’s performance and allocates resources based
on an analysis of various performance indicators by business segments and geographic segments.

The preparation of the Company''s Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts
of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions
and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements, Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and
estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however,
may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when
they occur.

2.1 Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment
testing for an asset is required, the Company estimates the asset''s recoverable amount.

2.1 Estimation of Defined Benefit Obligations / Plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An
actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the
discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

2.3 Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making
these assumptions and selecting the inputs to the impairment calculation, based on Company''s history, existing market conditions as well as forward looking
estimates at the end of each reporting period.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may
have a financial impact on the company and that are believed to be reasonable under the circumstances.

Post Employement obligations
a) Defined benefit plans - Gratuity

The company provides for gratuity for employees in india as per the Payment of Gratuity Act, 1972. Employees who are in continuous
service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last
drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.

The gratuity plan is a funded plan and the company makes contributions to recognised funds in India. The company does not fully fund the
liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

b) Defined contribution plans - Provident fund

The company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of
basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of
the company is limited to the amount contributed and it has no further contractual nor any contractive obligation. The expense recognised
during the period towards defined contribution plan is INR 6.66 (March 31, 2020: INR 14.27)

(v) Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year end are
unsecured and interest free and settlement occurs by cash flows. There have been no guarantees provided or received for any related party receivables and
payables. This assessment is undertaken each financial year through examining the financial position of the related party and market in which the related party
operates.

133. SEGMENT REPORTING I

The company’s operations predominantly consist of manufacturing of steel products and heavy engineering activities. Hence there are no reportable segments
under Ind AS - 108“ Operating Segment ” during the year under report, the company has engaged in its business only within India and not in any other country.
The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

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

Level 2 - The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as
possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 - If one or more of the significant inputs are not based on observable market data, the instrument is included in level 3.

iii. Valuation technique used to determine fair value

Specific Valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of interest rate swaps is calculated as the present value of the estimated future cash flows based on observable yield curves

- the fair value of the remaining financial instruments is determined using discounted cash flow analysis

iv. Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team
reports direclty to the chief financial officer (CFO) and the audit committte. Discussions of valuation processes and results are held between the CFO, AC and the valuation team at least once every
three months, in line with the company''s quarterly reporting periods.

(A) Credit risk

Credit risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the company. The maximum exposure of the financial assets
represents trade receivables, work in progress and receivables.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Customer credit risk is managed centrally by the Company and subject to
established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and
individual credit limits defined in accordance with the assessment.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by
international and domestic credit rating agencies.

(B) Liquidity risk

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions
unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects.
The Company generates sufficient cash flow for operations, which together with the available cash and

cash equivalents and short term investments provide liquidity in the short-term and longterm. . The Company has established an appropriate liquidity risk management
framework for the management of the Company’s short, medium and long-term funding and liquidity management requirements. The Company manages liquidity risk by
maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods and its non-derivative
financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to
pay. The tables include both interest and principal cash flows.

(C) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market prices. Market risk comprises three types of
risk: foreign currency risk, interest rate risk and other price risk such as equity price risk and commodity risk.

(i) Foreign currency risk

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates.
The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign receivables.

The company evaluates the exchnage rate exposure arising from foreign currency transactions and follows established risk management policies and standard operating
procedures to mitigate the risk.

(iii) Price risk

Commodity price risk - The company is affected by the price volatility of certain commodities. Its operating activities require a continuous supply of Steel (goods-RM). Due to
the significantly increased volatility of the price of the Steel (goods-RM), the company also entered into various purchase contracts for Steel (goods-RM) for which there is an
active market.

The company''s board of directors has developed and enacted a risk management strategy regarding commodity price risk and its mitigation. The company mitigates its
commodity price risk by ordering as per the price fluctuations which is in the best interest of the company.

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders of the company. The primary objective of the Company’s capital management
is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend
payment to shareholders,

return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt
divided by total capital plus net debt. The Company’s policy is to keep the gearing ratio between 60% and 80%. The Company
includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents,
excluding discontinued operations.

For the purpose of capital management, capital includes issued equity capital, securities premium and all other revenue
reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents and other bank
balances.

a) The company has not traded or invested in crypto currency or virtual currency during the current period

The company is not required to spend any amount in terms of provisions of section 135 of the Companies Act

b) 2013 on Corporate Social Responsibility

c) There are no transactions with struck off companies under Section 248 or 560 of the Companies Act 2013

No proceedings initiated or pending against the Company for Holding any Benami Property under the Benami

d) Transactions (Prohibition) Act 1988.

The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including

e) foreign entities (Intermediaries) with the understanding that the Intermediary shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the company (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding

f) Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on
behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company has no 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

g) or survey or any other relevant provisions of the Income T ax Act, 1961.

The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the

h) statutory period.

i) The Company has not declared/ paid any interim/final dividend during the year.

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Mar 31, 2024

I N Provisions. Contingent liabilities, Contingent assets and Commitments:

r^nrr*^{nS ai}*''^ccogn''^{sed whcjl ,hc} Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits wiU be required to settle the obligation and a reliable estimate can be made of the amount of the obligation When the but nnlv JLJ! ^S°^me ^ ^a ° ^{3 provislon to} ^^reiniCursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, reimbursement * ^re''^{m ursemcnl IS virtual,y certa}''ⁿ The expense relating to a provision is presented in the statement of profit and loss net of any

the liability* \vh™ h”!^{6 Va}!^Ue °^rnion^^{y ,s mater}''^a1, P^rov,sions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability When discounting ,s used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liability is disclosed in the case of:

- a oresent ***'' ^WhC" "^{,S n0}''^probab,e *¦* ^an «**»" of resources will be required to settle the obligation

a present obligation arising from past events, when no reliable estimate is possible

- a possible obligation arising from past events, unless the probability of outflow of resources is remote Commitments include the amount of purchase order

1.15 Current and Non-current Classification:

The Company’s presen.s asse

- Expected to be realised or intended to sold or consumed in normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realised within twelve months after the reporting period, Or

- Cash or cash equ. valent unless rcsiriced from being exchanged or used .0 settle a habiliiy for a, leas, twelve months after the reporting period.

- 10% Recovery account is created by bank to recover the borrowings which have become NPA in the rnrram *-.«« i ™

the outstanding dues, debits an amount of 10% of the credit received in the bank account of the company ***'' ^ ^ ^{3S 3 pr}°^{cess t0 rccover}

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, Or

- There is no uncond.tional right .0 defer tire seitlement of foe liability''''for a. leas, twelve months after foe rcoortinv ne„ ,

Deferred tax assets / liabilities are classified as non-current. porting period.

All other liabilities are classified as non-current

1.16 Fair V.l» Mt..urrmcnt: _ofccrtIlin ,_nvestments fair value, a. each balance sheet date

TVCompaty measures fmancia . an orderly transaction between marie, panic,pants a, the

IT ZZZ* « the —non to sen the asset or transfer the hability taies p,ace either

¦XttTjSttZZ advantageous -* for the asset or hahthty The prtnepa, or the most advantage marie, must be

accessible by the Company

The fair value of an asset or a liability is measured using the assumptions that marie, participants would use when pricing the asset or liability, assuming a market participants act in their economic best interest

«___—- - - *_r-’SSST* “* “ ~" ”

highest and best use or by selling it to another market participant that would use the as gh

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data arc available to measure fair the use of relevant observable inputs and minimizing the use of unobserv able inputs

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value follows, based on the lowest level input that is significant to the fair value measurement as a whole

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value measurement is For assets and liabilities that are recognised in the balance sheet on a recurring basis, the Company determines whether

in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fan value measurement as a whole) at the reporting period

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

1.17 Financial instruments

Financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(i) Financial assets:

The classification depends on the Company''s business model for managing the financial assets and the contractual terms of the cash flows.

For assets measured at fair value, gains and losses will either be recorded in profit or loss or other comprehensive income For investments in equity instruments, this will depend on whether the Company has made an irrevocable election at the time of initial recognition to account for the equity investment at fair value through other comprehensive income.

Initial recognition and measurement

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument Financial assets are recognized initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset Transaction costs of financial assets carried at fair value through profit or loss are expensed in the Statement of Profit and Loss

Subsequent measurement

Afle, initial rccognnion. financal assets (other Utan mvcstntents ,n subsidiariesandI join. ventures) are measured either a.

fair value (ctoer through other comprchens.ve income or through profit or loss) or, ii) amortized cost

Measured at amortized cost:

Financial assets that are held with,,, a business model whose objective ,s to hold financial assets in order to collect «>ntractual cash flows that are solely payments of principal and interest, arc subsequently measured at amortized cost using the effective interest rate ( EIR ) method less impairment, ,f any, the amortization of EIR and loss arising from impairment, if any is recognized in the Statement of Profit and Loss.

Measured at fair value through other comprehensive income (FVOCI): . „ . ^ „ _{c fKaf}

Financial assets that are held within a business model whose objective is achieved by both, selling financial assets and collecting contracUial cash flows that are solely payments of principal and interest, are subsequently measured at fair value through other comprehensive income Fair value movements are recognized in the other comprehensive income (OC1) net of taxes

Interest income measured using the EIR method and impairment losses, if any are recognized in Profit and Loss.

In case of investment in equity instruments classified as the FVOCI, the gains or losses on de-recognition are re-classified to retained earnings

In case of Investments in debt instruments classified as the FVOCI, the gains or losses on de-recognition are reclassified to statement of Profit and Loss.

Measured at fair value through profit or loss (FVTPL):

A financial asset not classified as either amortized cost or FVOCI, is classified as FVTPL, Such financial assets are measured at fair value with all changes in fair value, including interest income and dividend income if any. recognized as ‘other income’ in the Statement of Profit and Loss

The Company measures all its investments in equity (other than investments in subsidiaries and joint ventures) and mutual funds at FVTPL.

Changes in the fair value of financial assets measured at fair value through profit or loss are recognized in Profit and Loss Impairment losses (and reversal of impairment losses) on equity investments measured at FVTPL are recognised in Profit and Loss.

Impairment of financial assets:

The Company assesses on a forward looking basis the expected credit losses associated with its financial assets carried at amortized cost, FVTPL and FVOCI and debt instruments The impairment methodology applied depends on whether there has been a significant increase in credit risk.

For trade receivable only, the Company applies the simplified approach permitted by Ind AS - 109 Financial Instruments, which requires expected lifetime losses to be recognised from initial recognition of such receivables

i) The Company has transferred the rights to receive cash flows from the financial asset or

ii) Retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients

Where the entity has transferred an asset, the Company evaluates whether it has transferred substantially all risks and rewards of ownership of the financial asset. In such cases, the financial asset is de-recognized. ^

Where the entity has not transferred substantially all risks and rewards of ownership of the financial asset, the financial asset is not de-recognized

1.18 Financial liabilities

Classification as debt or equity ..... .. . . . .

Financial liabilities and equity instruments issued by the Company are classified according to the substance of the contractual arrangements entered into and the definitions of a financial liability and an equity instrument

Initial recognition and measurement Subsequent measurement

Financial liabilities other than those measured at fair value through profit and loss arc subsequently measured at amortized cost using the effective interest rate method The Company measures all debt instruments at amortised

Financial liabilities earned at fair value through profit or loss arc measured at fair value with all changes in fair value recognized in Profit and Loss De-recognition.

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires.

Offsetting financial instruments:

Financial assets and liabilities are offset and the net amount is reported in the Balance Sheet where there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty

1.19 Segment Reporting - Identification of Segments

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, whose operating results are regularly reviewed by the company''s chief operating decision maker to make decisions for which discrete financial information is available Based on the management approach as defined in Ind AS 108, the chief operating decision maker evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by business segments and geographic segments.

The preparation of the Company’s Financial Statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements, Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below The Company based its assumptions and estimates on parameters available when the financial statements were prepared Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company Such changes are reflected in the assumptions when they occur.

2.1 Impairment of non-financial assets

The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset''s recoverable amount

2.1 Estimation of Defined Benefit Obligations / Plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date

2.3 Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about nsk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on Company''s history, existing market conditions as well as forward looking estimates at the end of each reporting period

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company and that are believed to be reasonable under the circumstances

The Valuation of this property is done by using Sales Comparison Method of Market Approach using composite rate of said assets.

This method is applicable to all properties which are capable of being bought and sold in the market. A comparison is made for the purpose of valuation with similar properties that have recently been sold in the market and thus have a transaction price. The sales comparison approach is the preferred approach when sales data are available.

Sales prices of comparable properties are usually considered the best evidence of Market Value of the property being valued. Sales Comparison Method models the behaviour of the market by comparing the property being appraised with similar properties that have recently been sold or for which offers to purchase have been made. Comparable properties are selected for similarity to the subject property considering attributes like age, size, shape, quality of construction, building features, condition, design, gentry, etc.

Their sale prices are then adjusted for their difference from the subject property. Finally, a Fair Value for the subject property is estimated from the adjusted sales price of the comparable properties.

The Company obtains independent valuations for its investment properties at least annually. The best evidence of fair value is current prices in an active market for similar properties. Where such information is not available, the company consider information from a variety of sources including:

- current prices in an active market for properties of different nature or recent prices of similar properties in less active markets, adjusted to reflect those differences

(v) Terms and conditions of transactions with related parties

Thetransactionswith related parties are made onterms equivalents those thatprevail in arm''s lengthtransactions. Outstandingbalances at the yearend are unsecuredand interest free and settlement occurs by cash flows. There have been no guarantees provided or received for any related party receivables andpayables. This assessmentis undertakeneach financialyear throughexaminingthe financial positionof the related party andmarket in which the related party operates.

|33. SEGMENT REPORTING |

The company’s operations predominantly consist of manufacturing of steel products and heavy engineering activities. Hence there are no reportable segments under Ind AS -108 “ Operating Segment ” during the yearunder report, the companyhas engaged in its business onlywithin India and not in any other country. The condition prevailing in India being uniform, no separate geographical disclosures are considered necessary.

35 |35. FINANCIAL RISK MANAGEMENT |

The company''s activity expose it to market risk, liquidity risk and credit risk. The company’s focus is to foresee the unpredictability of financial risk and to address the issue to minimize the potential adverse effects of its financial performance. In order to minimise any adverse effects on the financial performance of the company, derivative financial instruments, such as interest rate swaps to hedge variable interest rate exposures. Derivatives are used exclusively for hedging purposes and not as trading or speculative instruments. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the impact of hedge accounting in the financial statements.

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. The Company’s financial risk management policy is set by the company’s management.

(A) Credit risk

Credit risk refers to the risk for a counter party default on its contractual obligation resulting a financial loss to the company. The maximum exposure of the financial assets represents trade receivables, work in progress and receivables.

The maximum exposure to the credit risk at the reporting date is primarily from trade receivables. Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits defined in accordance with the assessment.

Credit risk on cash and cash equivalents is limited as the Company generally invest in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

(B) Liquidity risk

Liquidity risk refers to the risk of financial distress or extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for short term operational needs as well as for long term capital expenditure growth projects. The Company generates sufficient cash flow for operations, which together with the available cash and cash equivalents and short term investments provide liquidity in the short-term and longterm. .

The following tables detail the Company’s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods and its non-derivative financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows.

Foreign currency risk is the risk of impact related to fair value or future cash flows of an exposure in foreign currency, which fluctuate due to changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the foreign receivables.

The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies and standard operating procedures to mitigate the risks.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk because funds are borrowed at both fixed and floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees with a mix of fixed and floating rates of interest. The Company has exposure to interest rate risk, arising principally on changes in base lending rate. The Company uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day-to-day operations. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings.

Commodity price risk - The company is affected by the price volatility of certain commodities. Its operating activities require a continuous supply of Steel (goods-RM). Due to the significantly increased volatility of the price of the Steel (goods-RM), the company also entered into various purchase contracts for Steel (goods-RM) for which there is an active market.

The company''s board of directors has developed and enacted a risk management strategy regarding commodity price risk and its mitigation. The company mitigates its commodity price risk by ordering as per the price fluctuations which is in the best interest of the company.

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Mar 31, 2018

NOTES TO ACCOUNTS:

25.15 In the opinion of the Board, the of current assets, loans and advances stated in the Balance Sheet will be realized in the ordinary course of business, that the provision for the depreciation on the fixed assets is adequate and that all known have been provided for in the accounts.

25.16 Directors Remuneration: (Amount in Rupees)

	Year ended March 31, 2018	Year ended March 31, 2017
Salaries & Perquisites	3,120,000	16,39,000
Total	3,120,000	16,39,000

25.17 Auditors Remuneration: (Amount in Rupees)

	Year ended March 31, 2018	Year ended March 31, 2017
a. Audit Fees	1,50,000	3,00,000
b. Tax Audit Fees	50,000	1,00,000
Total	2,00,000	4,00,000

25.18 Earnings per Share:

(Amount in Rupees)

		Year ended March 31, 2018	March 31, 2017
Profit after tax attributable to shareholders	A	50,053,612	24,226,825
Weighted average number of equity shares outstanding during the year.
- Basic	B	15,401,203	2,00,000
- Diluted	C	15,401,203	2,00,000
Earnings Per Share (Rs.)
- Basic	A/B	3.25	121.13
- Diluted	A/C	3.25	121.13
Nominal Value of Shares		10	100

25.19 List of related parties:

(a) Other related parties where control exists and Relatives of key management personnel and their enterprises where transactions have taken place:

o ASC Engineers Pvt. Ltd.

o Economic Forge Pvt. Ltd.

o Profile Steel Bars

o Slim Instant(Proprietary)

o R.P. Chowdhri

o R.P. Chowdhri (HUF)

o Sumitra Chowdhri

o Sanjay Chowdhri (HUF)

(b) Key Management Personnel

1) Sanjay Chowdhri (Managing Director)

2) Lalita Sanjay Chowdhri (Director)

3) Prakash Vithalrao Deshmukh (Director) w.e.f07/12/2017

4) Abhinav Sanjay Chowdhary (Director )w.e.f07/12/2017

5) Pranav Sanjay Chowdhri CEO(KMP) w.e.f 01/12/2017

6) Krupali Thakkar ( Company Secretary) w.e.f. 08/01/2018

Details of Related Party Transactions

The Company has identified the following related party transactions as per Accounting Standard 18 Details of revenue transaction entered during the year

(Amount in Rupees)
Sr. No.	Name	Relationship	Nature of Transaction	March 31, 2018	March 31, 2017
1	Economic Forge Pvt. Ltd.	Associate Company	Job Work Purchase & Purchase of Goods Job Work Sale	2,249,123 107,014,764	1,65,87,22 4 24,99,524
3	Sanjay Chowdhri	Director	Director''s Remuneration Interest on Loan	2,310,000 4,445,000	11,59,000 58,11,000
4	ASC Engineers Pvt. Ltd.	Associate Company	Purchase	753,822	-
5	R.P. Chowdhri	Father of Sanjay Chowdhri	Professional Fees Interest on Loan	516,000	5,16,000 2,80,000
6	Lalita Chowdhri	Director	Director''s Remuneration	360,000	4,80,000
7.	Abhinav Chowdhary	Director	Director''s Remuneration	4,50,000	-

Unsecured Loan transaction entered during the year

Sr. No.	Particulars	ASC Engineers Pvt. Ltd.	Sanjay Chowdhri	Lalita Chowdhri	Abhinav Chowdhari	Pranav Sanjay Chowdhri
		10,80,16,653	10,05,57,548	32,42,222	30252	0.00
	Opening Balance	(114041653)	(8,69,57,548)	(0.00)	(0.00)
	Loan Taken	14,00,000	7,25,44,276	1,04,437	1,50,000	2,50,000 (0.00)
		(0.00)	(1,41,00,000)	(0.00)	(0.00)
	Loan Repay	9,01,34,443	2,31,45,680	1,46,660	1,36,000	0.00
		(6025000)	(5,00,000)	(0.00)	(0.00)	(0.00)
	Conversion of loan into Equity share		2,73,00,000	32,00,000	-	0.00
			(0.00)	(0.00)	(0.00)	(0.00)
		1,92,82,210	12,26,56,144	_		2,50,000
	Outstanding as on 31.03.2018	(108016653)	(100557548)	(32 42 222)	44,252	(000)
					(0.00)

25.20 Other Information Pursuant to Schedule III of the Companies Act, 2013:

	March 31, 2018	March 31, 2017
GIF Value of Imports:	39,900,447	90,48,984
Earnings in Foreign Exchange (Export Sales)	8,275,667	1,77,88,949

25.21. The balances under Other Long Term Liabilities, Trade Payables, Trade Receivables, Other Current Liabilities, Other Non-Current Assets, Long Term Loans and Advances, Short term loans and advances and Other Current Assets are subject to reconciliation and confirmation

25.22 Contingent Liabilities - Disputed Liability of Sales Tax are Rs. 8,22,65,905 ( PY Rs.8,22,65,905)

25.22 Previous year''s figures have been reclassified, regrouped, rearranged, and reworked wherever necessary to conform to the classification adopted in these accounts. All figures have been rounded off to the nearest Rupee.

For H L Saini & Co.	For and on behalf of Board of Directors
Chartered Accountants	Supreme Engineering Limited
(Partner)	Sanjay Chowdhri	Abhinav Chowdhary
Membership No. 128301	DIN: 00095990	DIN: 07121484
Place: Mumbai
Date: 26.04.2018