Notes to Accounts of Tirupati Forge Ltd.

Mar 31, 2025

Machineries Term Loan from IOB Bank

Existing 8s Fresh Term Loan is secured against hypothecation of Plant 8s Machineries purchased 8s to be purchased from the said Term Loan. It is also

(a) secured by equitable mortgage of Land and Building situated at Hadamtala Industrial Zone, District Rajkot of the company and personal guarantee of directors.

(b) Interest rate of term loan is linked to RLLR plus 0.40% i.e. 9.75% p.a. as per last Sanction Letter.

Existing Term Loan of? 343 Lakhs is repayable in 75 monthly instalment commencing from January, 2019 and ending on September, 2026. i.e 74 monthly installment of Rs. 4,57,330/- and last installment of Rs. 4,57,580/-.

Fresh Term Loan of? 280 Lakhs is repayable in 60 monthly instalment commencing from November, 2023 and ending on November, 2028. i.e 59 monthly

(d) installment of Rs. 4,66,667/- and last installment of Rs. 4,66,647/-.

Fresh term loan disbursed of ? 258.00 Lakhs [Preceding Year - 235.36 lakhs] out of sanctioned amount of ? 280 lakhs is utilised for the purpose for which it

(e) is obtained i.e. purchase of plant 8& machineries.

- Solar Term Loan from IOB Bank

Fresh Solar term loan disbursed of ? 850.00 lakhs is secured against hypothecation of Solar Panels for which loan amount is utilised and sanctioned i.e.

(a) installations of 4.8MW of Solar Power Plant.

(b) Interest rate of term loan is linked to RLLR plus 0.50% i.e. 9.35% p.a. as per last Sanction Letter.

Term Loan repayable in 84 monthly door to door tenure. Repayment to commenced after expiry of holiday period of six month i.e. Rs. 10,89,744/- for 77

Fresh Vehicle loan disbursed of? 28.80 lakhs out of sanctioned amount of ? 28.80 lakhs is utilised for the purpose for which it is obtained i.e. purchase of

(a) New Staff Bus.

(b) Interest rate of term loan is 9.80% p.a. as per Sanction Letter.

(c) Term Loan is repayable in 36 monthly instalment of Rs. 92,860/- commencing from October 2024 and ending on September, 2027.

(a) Term loan is secured against Staff bus.

(b) Interest rate of loan is 9.00%.

Term Loan is repayable in 63 monthly instalment of Rs. 29,065/- commencing from May, 2017 and ending on October, 2023. Loan Was Fully Repaid in Preceeding Financial Year.

Term Loans from ICICI Bank for Motor Cars

(a) Term loan is secured against three vehicles.

(b) Interest rate of three vehicles loan are 7.65%, 8.20% & 9.10% respectively.

1st Vehicle Term Loan is repayable in 36 equated monthly instalment of Rs. 80,361/- commencing from August, 2021 and ending on July, 2024. 2nd

Vehicle term loan is repayable in 36 equated monthly installment of Rs. 81,410/- commentcing from September, 2022 and ending on August, 2025. 3rd

(c) Vehicle term loan is repayable in 60 equated monthly installment of Rs. 60,146/- commentcing from March, 2023 and ending on February, 2028.

Working Captial Term Loan from IOB Bank under ECLGS 1.0 extension Scheme

WCTL under ECLGS 1.0 is rank pari passu with all the existing facilities in terms of security. It is also collaterally secured by equitable mortgage of ^f Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot.

(b) Interest rate of term loan is Repo rate plus markup plus 1.00% i.e. 9.25% p.a.

Term Loan is repayable in 21 monthly instalment commencing after moratorium period of 24 months from the date of first installments i.e. January 2024 ^C i.e. 20 installment of Rs. 3,33,888/- and 21st installment of Rs. 2,42,240/-

Vehicle Term Loan from HDPC Bank

(a) Term loan is secured by exclusive first charge on the Mahindra Jayo financed by the banks.

(b) Interest rate of loan is 8.34%.

Term Loan is repayable in 36 monthly instalment of Rs. 31,240/- and Rs. 3,810/- commencing from March, 2021 and ending on February, 2024.

(c)

Cash Credit

Loan is secured against hypothecation of stock and book debts up to 90 days and with exclusive first charge on entire current assets of the present and

(a) future. It is also secured by equitable mortgage of Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot and personal guarantee of directors.

(b) Interest rate of term loan is linked to RLLR plus 0.40% i.e. 9.75% p.a. as per last Sanction Letter.

(d) It is repayable on demand.

Preshippment Packing Credit

(a) The loan is secured against hypothecation of inventories and trade receivables.

(b) Interest rate is as per circular of the bank.

Working capital facilities and statements filed with bank

The Company has availed working capital facilities from banks in form of packing credit and cash credit. The Company have filed the quarterly statements with banks with regard to the securities provided against such working capital facilities on periodic basis. The statements (incl. revised statements) filed are

(a) in agreement with the books of accounts of the Company.

The Company has been sanctioned a fund based limit of? 690 Lakhs (PY ? 690 Lakhs) and non-fund based limit of ? 100 Lakhs (PY ? 100 Lakhs) in respect of working capital facilities by its bankers as at March 31, 2024.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

Bill Discounting with banks (Unsecured)

(a) The company has availed working capital facilites from bank under bill discounting arrangements for its customer. It is unsecured.

(b) There is no cost to the company for the facility except bank charges of South Indian Bank Ltd.

{c) It is repayable on demand.

Trade payables are non-interest bearing and are generally settled on 60 to 90 days terms.

Considering the Company has been extended credit period upto 45 days by its vendors and payments being released on a timely basis, there is no liability towards interest on delayed payments under The Micro, Small and Medium Enterprises Development Act 2006â during the year. There is also no amount of outstanding interest in this regard, brought forward from previous years. Information in this regard is on basis of intimation received, on requests made by the Company, with regards to registration of vendors under the said Act. The MSME classification of vendors have been regrouped as compare to figures mentioned in the financial result as per latest information available with the company. The amount of principal and interest outstanding as at 31.03.2025 is given below:

The code on Social Security, 2020 (''Code'') relating to employees benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

31 GRATUITY

Company has not created gratuity fund of its own/has not taken any policy with respect to payment of gratuity to employees at time of retirement. The Company has not taken valuation for Gratuity liability from independent actuary valuer this year. During from previous financial year, the company is paying gratuity to all employees, calculated as per provision of Payment of Gratuity Act, 1972 along-with salary payable to them. Therefore, in absence of valuer''s report for gratuity liability, figures for current year with respect to disclosures as per Ind AS 19 has not been shown. Moreover, the company has obtained opinion from labour law consultant for Compliance for payment of Gratuity as per Payment of Gratuity Act, 1972.

34 LEASE

(a) Company as lessee

The company has entered into lease agreement for land for the period of 20 years from Hiteshbhai G. Thummar, Chariman and Managing Director of the Company, used in its operations. The transaction was approved by Board of Director as well as by members of the Company. The Companyâs obligations under its leases are secured by the lessorâs title to the leased assets. Generally, the Company is restricted from assigning and subleasing the leased assets. Company has not entered into agreement for new land taken on lease from Bhargaviben Thummar, Promoter Group used in its operation from 01st January, 2024 and has paid rent for three months and company applies the ''short-term lease'' recognition exemptions for this lease.

The company has also entered into ten finance lease arrangements with Siemens Financial Services Private Limited for more than one machineries to used in its operations for period upto 3 years till 31st March, 2024. The transaction was approved by Board of Director as well as by members of the Company. The Companyâs obligations under its leases are secured by the lessorâs title to the leased assets.

The Company also has certain lease agreements related to other assets with lease terms of 12 months or less. The Company applies the âshort-term leaseâ recognition exemptions for these leases.

Below are the carrying amounts of right-of-use assets recognised and the movements during the period:

35 CONTINGENT LIABILITIES NOT ACKNOWLEDGED AS DEBT

Guarantees given by the company''s banker on behalf of the company upto Rs. 100.00 lakhs (PY - Rs. 100 Lakhs) which is issued in favour of PGVCL (O & A), Gondal and secured against fixed deposits.

36 DETAILS OF UTILISATION OF PROCEEDS OF PREFERENTIAL ALLOTMENT:-

(1) The company has issued 1,46,00,000 equity shares on preferential basis of face value of Rs. 2/- each per share along with Premium of Rs. 30/- per shares to persons belonging to Non-Promoters, Public category for cash aggregating to Rs. 4,672 Lakhs as per approved by the member of the company in extra ordinary meeting held at November 16, 2024. Company has duly complied with appliable provisions under SEBI (ICDR) regulations.

(*) Fund utilised includes amount utilised for the issue related expense incurred by the company considering general corporate purpose of Rs. 324.27 Lakhs.

Amount unutilized have been deposited in the fixed deposits of Indian Overseas Bank for period less than three months of Rs. 600 Lakhs and balance Rs. 2,476.00 Lakhs are lying in the current account of Indian Overseas Bank.

(2) The company has issued 1,17,60,000 convertible warrants on preferential basis each convertible, to the Promoters and Promoter Group and Non-Promoter Group of the Company, into one fully paid up equity shares of face value of Rs. 2/- each per share along with Premium of Rs. 30/- per shares at above price for cash aggregating to Rs. 3,763.20 Lakhs as per approved by the member of the company in extra ordinary meeting held at November 16, 2024. Company has duly complied with appliable provisions under SEBI (ICDR) regulations.

b Financial Risk Management Objectives and Policies

The Companyâs principal financial liabilities comprises borrowings, trade and other payables and other financial liabilities. The main purpose of these financial liabilities is to finance and support the operations of the Company. The Companyâs principal financial assets include trade and other receivables, loans and cash and cash equivalents that derive directly from its operations.

The Companyâs business activities are exposed to a variety of risks including liquidity risk, credit risk and market risk. The Company seeks to minimize potential adverse effects of these risks on its financial performance and capital. Financial risk activities are identified, measured and managed in accordance with the Company''s policies and risk objectives which are summarized below and are reviewed by the senior management.

Credit Risk

Credit risk refers to risk of financial loss to the Company if customers or counterparties fail to meet their contractual obligations. The Company is exposed to credit risk from its operating activities (mainly trade receivables)

Credit Risk Management

(a) Trade Receivables

Customer credit risk is managed by the respective departments subject to the company''s established policies, procedures and controls relating to customer credit risk management. Customer credit risk is managed by the Company through its established policies and procedures which involve setting up credit limits based on credit profiling of individual customers, credit approvals for enhancement of limits and regular monitoring of important developments viz. payment history, change in credit rating, regulatory changes, industry outlook etc. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in refer note 6. Outstanding receivables are regularly monitored and an impairment analysis is performed at each reporting date on an individual basis for each major customer. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or reversal thereof. Expected credit losses of financial assets receivable in the next 12 months are estimated on the basis of historical data, provided the Company has reasonable and supportable data. On such an assessment the expected losses are nil or negligible, as evidenced in the table below, and hence no further provision than that already made is considered necessary.

(b) Deposits and financial assets (Other than trade receivables):

Credit risk from balances with banks and fixed deposits are managed by the Companyâs treasury department in accordance with the Companyâs policy. Company provides for expected credit losses on loans and advances other than trade receivables by assessing individual financial instruments for expectation of any credit losses.

Liquid Risk

Liquidity risk implies that the Company may not be able to meet its obligations associated with its financial liabilities. The Company manages its liquidity risk on the basis of the business plan that ensures that the funds required for financing the business operations and meeting financial liabilities are available in a timely manner and in the currency required at optimal costs. The Management regularly monitors rolling forecasts of the Companyâs liquidity position to ensure it has sufficient cash on an ongoing basis to meet operational fund requirements.

Additionally, the Company has committed fund and non-fund based credit lines from banks which may be drawn anytime based on Companyâs fund requirements. The Company endeavours to maintain a cautious liquidity strategy with positive cash balance and undrawn bank lines throuahout the year.

Market Risk

Market risk is the risk that the fair value of future cash flow of financial instruments may fluctuate because of changes in market conditions. Market risk broadly comprises three types of risks namely foreign currency risk, interest rate risk and price risk (for commodities). The above risks may affect the Companyâs income and expense and profit. The Companyâs exposure to and management of these risks are explained below. fa) Foreign currencu risk

The Company operates in international markets and therefore is exposed to foreign currency risk arising from foreign currency transactions. The exposure relates primarily to the Companyâs operating activities (when the revenue or expense is denominated in foreign currency). Majority of the Companyâs foreign currency transactions are in USD while the rest are in EURO. The major imports are only in respect of capital goods. The risk is measured through forecast of highly probable foreign currency cash flows.

In managementâs opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk as the year end exposure does not reflect the exposure during the year.

fbl Commoditu Price Risk

Commodity price risk results from changes in market prices for raw materials, mainly steel in the form of rounds and billets which forms the largest portion of Companyâs cost of sale.

The principal raw materials for the Company products are alloy and carbon steel which are purchased by the Company from the approved list of suppliers. Input materials are procured from domestic vendors. Raw material procurement is subject to price negotiation. Further, a significant portion of the Company''s volume is sold based on price adjustment mechanism which allows for recovery of the changed raw material cost from its customers.

39 CAPITAL MANAGEMENT

For the purposes of the Companyâs capital management, capital includes equity attributable to the equity holders of the Company and all other equity reserves. The primary objective of the Companyâs capital management is to ensure that it maintains an efficient capital structure and maximise 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 or issue new shares. The Company is not subject to any externally imposed capital requirements.

40 OTHER MISCELLANEOUS NOTES

Previous year figures are regrouped/ rearranged wherever necessary. The impact of such reclassification/regrouping is not material to the financial statements.

b There have been no events after the reporting date that require disclosure in these financial statements.

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company c

for holding any Benami property.

d The Company has not traded or invested in crypto currency or virtual currency during the financial year.

The Company has not granted tiny loans or advances in the nature of loans to promoters, directors, KMPs and the related e

parties (as defined under the Companies Act, 2013), either severally or jointly with any other person.

No funds have been advanced or loaned or invested either from borrowed funds or share premium or any other sources or kind of funds by the Company to or in any other person or entity, including foreign entities (Intermediariesâ), with the f understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate

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

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

The Company has performed the assessment to identify transactions with struck off companies as at 31 March 2025 & 31 i

March 2024 and identified no company with any transactions.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except j in respect of other softwares from which inputs has been taken into accounting software, audit trail feature is not enabled at database level to log aby direct changes to data when using certain access rights. Further, audit trail feature has not been tampered with in respect of accounting software.

The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or k 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).

Significant increase in ratio is on account of unutilised amount from shares & convertible warrant issued on preferential basis lying in special account for the issue and temporary fixed deposits with IOB Bank for Rs. 3243.62 Lakhs, advance paid to suppliers for capital goods and materials, unutilised 1 GST ITC availed on account of expanision carried by the company as compared to previous year.

Decrease in ratio is due to increase in shareholder''s equity on account of issue of equity shares on preferential basis & money received against issue of warrants during the year and not on account of decrease in profit margins.

Decrease in ratio is due to decrease in annual purchase of raw materials and semi-finished materials on account of decrease in consumption of

3 material cost and transaction with some of suppliers for Rs.289.00 Lakhs have taken place during last fifteen days of the FY and are not due for payment as at 31 March, 2025 and payment to them were made subsequently after the reporting date.

Decrease in ratio is majorly on account of significant increase in current ratio as explained above and increase in turnover of manufactured goods by ?

⁴ 588.86 Lakhs.

Decrease in ratio is due to increase in shareholder''s equity on account of issue of equity shares on preferential basis & money received against issue of

5 warrants during the year and disbursement of fresh term loan for Solar Project of Rs. 850.00 Lakhs and not on account of decrease in profit margins.

Mar 31, 2024

(q) Provision. Contingent Liabilities and Contingent Assets:

Provision is recognised 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 reliable estimate can be made. If the effect of 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 recognized as a finance cost. These estimates reviewed at each reporting date and adjusted to reflect the current best estimate.

A disclosure for a contingent liability is made when there is a possible obligation or a present k obligation that may, but probably will not, require an outflow of resources. When the likelihood of outflow of resources is remote, no provision or disclosure is made. Contingent assets are not recognised in the financial statements.

(r) 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.

2.3 Application of new and revised Indian Accounting Standard (Ind AS):

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

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Standards issued but not effective

The Ministry of Corporate Affairs ("MCA") vide its notification dated March 31, 2023 has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 to further amend the Companies (Indian Accounting Standards) Rules, 2015. Amendments have been made to the following standards:

Amendment to Ind AS 12 and Ind AS 101

Now the Initial Recognition Exemption (IRE) does not apply to transactions that give rise to equal and offsetting temporary differences. Narrowed the scope of IRE (with regard to leases and decommissioning obligations). Accordingly, companies will need to recognise a deferred tax asset and a deferred tax liability for temporary differences arising on transactions such as initial recognition of a lease and a decommissioning provision. The amendments apply to transactions that occur on or after the beginning of the earliest comparative period presented

The application of this amendment is not expected to have a material impact on the Companyâs financial statements

Amendment to Ind AS 1 and Ind AS 34 and Ind AS 107

Companies should now disclose material accounting policies rather than their significant accounting policies.

The application of this amendment is not expected to have a material impact on the Companyâs financial statements.

Amendment to Ind AS 8

Definition of âchange in account estimateâ has been replaced by revised definition of âaccounting estimateâ. As per revised definition, accounting estimates are monetary amounts in the financial statements that are subject to measurement uncertainty.

The amendments listed above will be effective on or after April 1, 2023 and are not expected to significantly affect the current or future periods.

Machineries Term Loan from IOB Bank

Existing & Fresh Term Loan is secured against hypothecation of Plant & Machineries purchased & to be purchased from the said

(a) Term Loan. It is also secured by equitable mortgage of Land and Building situated at Hadamtala Industrial Zone, District Rajkot of the company and personal guarantee of directors.

(b) Interest rate of term loan is linked to RLLR plus 0.40% i.e. 9.75% p.a. as per last Sanction Letter.

Existing Term Loan of? 343 Lakhs is repayable in 75 monthly instalment commencing from January, 2019 and ending on ^C September, 2026. i.e 74 monthly installment of Rs. 4,57,330/- and last installment of Rs. 4,57,580/-.

Fresh Term Loan of ? 280 Lakhs is repayable in 60 monthly instalment commencing from November, 2023 and ending on November,

(d) 2028. i.e 59 monthly installment of Rs. 4,66,667/- and last installment of Rs. 4,66,647/-.

Fresh term loan disbursed of? 235.36 lakhs out of sanctioned amount of? 280 lakhs is utilised for the purpose for which it is

(e) obtained i.e. purchase of plant & machineries.

Term Loan from ICICI Bank for Staff bus

(a) Term loan is secured against Staff bus.

(b) Interest rate of loan is 9.00%.

(c) Term Loan is repayable in 63 monthly instalment of Rs. 29,065/- commencing from May, 2017 and ending on October, 2023.

Term Loans from ICICI Bank for Motor Cars

(a) Term loan is secured against three vehicles.

(b) Interest rate of three vehicles loan are 7.65%, 8.20% & 9.10% respectively.

1st Vehicle Term Loan is repayable in 36 equated monthly instalment of Rs. 80,361/- commencing from August, 2021 and ending on July, 2024. 2nd Vehicle term loan is repayable in 36 equated monthly installment of Rs. 81,410/- commentcing from September, 2022 and ending on August, 2025. 3rd Vehicle term loan is repayable in 60 equated monthly installment of Rs. 60,146/-

Working Captial Term Loan from IOB Bank under ECLGS 1.0 extension Scheme

WCTL under ECLGS 1.0 is rank pari passu with all the existing facilities in terms of security. It is also collaterally secured by equitable mortgage of Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot.

(b) Interest rate of term loan is Repo rate plus markup plus 1.00% i.e. 9.25% p.a.

Term Loan is repayable in 21 monthly instalment commencing after moratorium period of 24 months from the date of Erst installments i.e. January 2024 i.e. 20 installment of Rs. 3,33,888/- and 21st installment of Rs. 2,42,240/-

Vehicle Term Loan from HDFC Bank

(a) Term loan is secured by exclusive Erst charge on the Mahindra Jayo financed by the banks.

(b) Interest rate of loan is 8.34%.

Term Loan is repayable in 36 monthly instalment of Rs. 31,240/- and Rs. 3,810/- commencing from March, 2021 and ending on ^ February, 2024.

Cash Credit

Loan is secured against hypothecation of stock and book debts up to 90 days and with exclusive first charge on entire current assets

(a) of the present and future. It is also secured by equitable mortgage of Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot and personal guarantee of directors.

(b) Interest rate of term loan is linked to RLLR plus 0.40% i.e. 9.75% p.a. as per last Sanction Letter.

Preshippment Packing Credit

(a) The loan is secured against hypothecation of inventories and trade receivables.

(b) Interest rate is as per circular of the bank.

Working capital facilities and statements filed with bank

(a) statements filed are in agreement with the books of accounts of the Company.

The Company has been sanctioned a fund based limit of? 690 Lakhs (PY ? 690 Lakhs) and non-fund based limit of? 100 Lakhs (PY ? 100 Lakhs) in respect of working capital facilities by its bankers as at March 31, 2024.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

Bill Discounting with banks (Unsecured!

(a) The company has availed working capital facilites from bank under bill discounting arrangements for its customer. It is unsecured.

(b) There is no cost to the company for the facility except bank charges of South Indian Bank Ltd.

34 LEASE

(a) Company as lessee

The Company also has certain lease agreements related to other assets with lease terms of 12 months or less. The Company applies the âshort-term leaseâ recognition exemptions for these leases.

Below are the carrying amounts of right-of-use assets recognised and the movements during the period:

b Financial Risk Management Objectives and Policies

Credit Risk

(a) Trade Receivables

Expected credit losses of financial assets receivable in the next 12 months are estimated on the basis of historical data, provided the Company has reasonable and supportable data. On such an assessment the expected losses are nil or negligible, as evidenced in the table below, and hence no further provision than that

(b) Deposits and financial assets (Other than trade receivables):

Liquid Risk

Market Risk

Oven Exposure

The Companyâs exposure to foreign currency risk at the end of the reporting period is as follows

fb) Commoditu Price Risk

Commodity price risk results from changes in market prices for raw materials, mainly steel in the form of rounds and billets which forms the largest portion of Companyâs cost of sale.

39 CAPITAL MANAGEMENT

The Company monitors capital using net debt to equity ratio, which is net debt (as reduced by cash and cash equivalent) divided by total equity.

40 OTHER MISCELLANEOUS NOTES

Previous year figures are regrouped/ rearranged wherever necessary. The impact of such reclassification/regrouping is not material to the financial statements, b There have been no events after the reporting date that require disclosure in these financial statements.

The Company does not have any Benami property, where any proceeding has been initiated or pending against

the Company for holding any Benami property.

d The Company has not traded or invested in crypto currency or virtual currency during the financial year.

The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and e

the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person. No funds have been advanced or loaned or invested either from borrowed funds or share premium or any other sources or kind of funds by the Company to or in any other person or entity, including foreign entities (âIntermediariesâ), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person or entity, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, g directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

h The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the The Company has performed the assessment to identify transactions with struck off companies as at 31 March 2024&31 March 2023 and identified no company with any transactions.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant . transactions recorded in the software except in respect of other softwares from which inputs has been taken into ^ accounting software, audit trail feature is not enabled at database level to log aby direct changes to data when using certain access rights. Further, audit trail feature has not been tampered with in respect of accounting software.

The Company does not have any transaction which is not recorded in the books of accounts that has been k 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).

Mar 31, 2023

(a) The Company has not revalued any property, plant and equipment during the year.

(b) There are no Plant, Property and equipments which are under construcitons or production during the current and previous year. Hence there is no delayed and overrun project.

(c) In respect of land taken on lease from related parties on which factory building has been constructed and disclosed as right-of-use assets in the financial statements, the title deeds of immovable properties taken on lease arrangements are in the name of the company. Building (gross block) amounting? 245.93 Lakhs (31 March 2022: ? 245.93 Lakhs), net block ? 168.48 Lakhs (31 March 2022: ? 185.08 Lakhs) is constructed on leasehold land.

(d) Refer note 43 for disclosure of contractual commitments for the acquisition of property, plant and equipment.

^eJJiefernote^^SJbrjnfbrmationmiproper^jalantjin^

(*) Rs. 8,43,909/- ( March 31, 2022 : Rs. 8,04,396/-) in non-current portion are against bank guarantee provided to PGVCL.

(#) Company had temporaiy parked the unutilised amount in the fixed deposits lying with Ashish Credit Co-operative Society Ltd. Fixed Deposits are now overdue for maturity since November, 2020. However, the company during the year the company has filed case under Negotiable Instruments Act, 1881 against the âAshish Credit Co-Op Society Ltd for default in making repayment against maturity due for Fixed deposit of Rs. 120 Lakshs held by the company and case is under litigation. Company has made provision for expected credit loss of Rs. 108 Lakhs as at 31st March, 2023 for the same as estimated by management of the company.

Note:

During the previous financial year 2021-22, one equity share of face value of Rs. 10/- each was splited into 5 equity shares of Rs. 2/- each fully paid up i.e. in ratio of 1:5 to existing shareholders after passing ordinary resolution by members of the company on 28th September, 2021 which was issued on the record date i.e. 09th October, 2021.

The Company has completed process of alloting 11,88,000 equity shares against convertible warrants issued on preferential basis as per terms and conditions approved by the members on 15th March, 2019. The issue was made in accordance with SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018. Funds raised by Preferential issue have been utilized for the purpose mentioned in the objects of the issue in the offer documents (Note No 36).

The company has only one class of equity shares having a par value of Rs. 2/- per share. Each holder of equity shares 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 proportion to the number of equity shares held by the shareholders.

(a) Securities Premium:

Securities premium is used to record the premium on issue of shares. The reserve can be utilised in accordance with the provisions of the Companies Act, 2013.

(b) Retained Earnings:

Retained earnings are created from the profits of the Company, as adjusted for distribution to owners, transfer to other reserve, etc.

Machineries Term Loan from IOB Bank

Loan is secured against hypothecation of Plant & Machineries purchased & to be purchased from the said Term Loan. It is also secured by

(a) equitable mortgage of Land and Building situated at Hadamtala Industrial Zone, District Rajkot of the company and personal guarantee of directors.

(b) Interest rate of term loan is linked to RLLR plus 2.00% i.e. 11.35% p.a.

Term Loan is repayable in 75 monthly instalment commencing from January, 2019 and ending on September, 2026. i.e 74 monthly

Term Loan from ICICI Bank for Staff bus

(a) Term loan is secured against Staff bus.

(b) Interest rate of loan is 9.00%.

(c) Term Loan is repayable in 63 monthly instalment of Rs. 29,065/- commencing from May, 2017 and ending on October, 2023.

Term Loans from ICICI Bank for Motor Car

(a) Term loan is secured against three vehicles.

(b) Interest rate of three vehicles loan are 7.65%, 8.20% & 9.10% respectively.

Working Captial Term Loan from IOB Bank under GECL Scheme

WCTL under GECL is secured against hypothecation of stock and book debts and with exclusive first charge on entire current assets of the

(a) present and future. It is also secured by equitable mortgage of Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot and personal guarantee of directors.

(b) Interest rate of term loan is Repo rate plus markup plus 1.00% i.e. 9.25% p.a.

Term Loan is repayable in 35 monthly instalment of Rs. 2,38,444/- and 36^th installment of Rs. 2,35,796/- commencing after moratorium

(c) period of 12 months from the date of first installments i.e. March 2022. However loan has been fully repaid during the current financial year. Working Captial Term Loan from IOB Bank under ECLGS 1.0 extension Scheme

WCTL under ECLGS 1.0 is rank pari passu with all the existing facilities in terms of security. It is also collaterally secured by equitable '' mortgage of Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot and pledge of equity shares of promoters.

(b) Interest rate of term loan is Repo rate plus markup plus 1.00% i.e. 9.25% p.a.

Term Loan is repayable in 21 monthly instalment commencing after moratorium period of 24 months from the date of first installments i.e. ^C January 2024 i.e. 20 installment of Rs. 3,33,888/- and 21st installment of Rs. 2,42,240/-

During the previous financial year ended March 31, 2022, the Company has availed fresh Working Capital term loans. Proceeds from it have

(d) been utilised for the intended purpose.

Vehicle Term Loan from HDFC Bank

(a) Term loan is secured by exclusive first charge on the Mahindra Jayo financed by the banks.

(b) Interest rate of loan is 8.34%.

Term Loan is repayable in 36 monthly instalment of Rs. 31,240/- and Rs. 3,810/- commencing from March, 2021 and ending on February, l^c) 2024.

Cash Credit

Loan is secured against hypothecation of stock and book debts and with exclusive first charge on entire current assets of the present and

(a) future. It is also secured by equitable mortgage of Industrial Land and Building situated at Hadamtala Industrial Zone, District Rajkot and personal guarantee of directors.

(b) Interest rate of term loan is linked to RLLR plus 2.00% i.e. 11.35% p.a. as per last Sanction Letter.

(d) It is repayable on demand.

Preshippment Packing Credit

(a) The loan is secured against hypothecation of inventories and trade receivables.

(b) Interest rate is as per circular of the bank.

Working capital facilities and statements filed with bank

(a) in agreement with the books of accounts of the Company.

The Company has been sanctioned a fund based limit of ? 690 Lakhs (PY ? 690 Lakhs) and non-fund based limit of ? 100 Lakhs (PY ? 100 Lakhs) in respect of working capital facilities by its bankers as at March 31, 2023.

(b) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

Diluted earning per share is calculated condering amount rececived against partly paid share warrants alloted as potential equity share as per Ind AS-33 "Earning Per Share". The current year diluted EPS is not calculated since there was no potential equity shares outstanding at the end of the financial year as all warrants are converted into equity shares.

31 GRATUITY

34 LEASE

(a) Company as lessee

The company has also entered into finance lease arrangement with Siemens Financial Services Private Limited for more than one machineries to used in its operations The transaction was approved by Board of Director as well as by members of the Company. The Companyâs obligations under its leases are secured by the lessorâs title to the leased assets.

The Company also has certain lease agreements related to other assets with lease terms of 12 months or less. The Company applies the âshort-term leaseâ recognition exemptions for these leases.

Below are the carrying amounts of right-of-use assets recognised and the movements during the period:

35 CONTINGENT LIABILITIES WOT ACKNOWLEDGED AS DEBT

Bank has sanctioned bank guarantee upto Rs. 100.00 lakhs (PY - Rs. 100 Lakhs) which is issued in favour of PGVCL (O & A), Gondal.

36 DETAILS OF UTILISATION OF PROCEEDS OF PREFERENTIAL ALLOTMENT OF CONVERTIBLE SHARE WARRANTS

The Company has completed the process of alloting equity shares against total 11,88,000 convertible warrants issued on preferential basis as per terms and conditions approved by the members on 15th March, 2019. Utilization of the same as at 31.03.2023 is as mentioned below :

b Financial Risk Management Objectives and Policies

The Companyâs business activities are exposed to a variety of risks including liquidity risk, credit risk and market risk. The Company seeks to minimize potential adverse effects of these risks on its financial performance and capital. Financial risk activities are identified, measured and managed in accordance with the Companyâs policies and risk objectives which are summarized below and are reviewed by the senior management.

Credit Risk

Credit Risk Management

(a) Trade Receivables

(b) Deposits and financial assets (Other than trade receivables):

Liquid Risk

Liquidity risk implies that the Company may not be able to meet its obligations associated with its financial liabilities. The Company manages its liquidity risk on the basis of the business plan that ensures that the funds required for Financing the business operations and meeting financial liabilities are available in a timely manner and in the currency required at optimal costs. The Management regularly monitors rolling forecasts of the Companyâs liquidity position to ensure it has sufficient cash on an ongoing basis to meet operational fund requirements.

The following are the remaining contractual maturities of financial liabilities at the reporting date

Market Risk

(a) Foreign currency risk

(b) Commodity Price Risk

Commodity price risk results from changes in market prices for raw materials, mainly steel in the form of rounds and billets which forms the largest portion of Companyâs cost of sale.

39 CAPITAL MANAGEMENT

The Company monitors capital using net debt to equity ratio, which is net debt (as reduced by cash and cash equivalent) divided by total equity.

40 OTHER NOTES

Previous year figures are regrouped/ rearranged wherever necessary. The impact of such reclassification/regrouping is not material to a the financial statements

b There have been no events after the reporting date that require disclosure in these financial statements.

The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

d The Company has not traded or invested in crypto currency or virtual currency during the financial year.

The Company has not granted any loans or advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person.

No funds have been advanced or loaned or invested either from borrowed funds or share premium or any other sources or kind of funds by the Company to or in any other person or entity, including foreign entities (âIntermediariesâ), with the understanding, whether f recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (TJltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds have been received by the Company from any person or entity, including foreign entities (âFunding Partiesâ), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other ^ persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (âUltimate Beneficiariesâ) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

1 Improvement in the ratio is due to substantial decrease in trade payable and provisions for current liabilities and income tax liability._

Improvement in the ratio is attributable to repayment of working capital term loan prior than its repayment schedules and increase in networth/shareholders'' fund due to increase in net profit during the year.

Transaction with most of the trade payable have taken place during last month of the last FY and are not due for payment as at 31 March, 2022 and payment to them were made in current financial year. Hence, the ratio has decreased compared to previous year.

4 Decrease in the ratio is due to increase in average working capital as compared to previous year by 60%.

1. Improvement in this ratio is attributable to change in Sales mix of products sold with higher margin products sold during the FY compared to last FY.

5 2. There is favourable price variance for products sold in export market which lead to improvement in ratio.

3. Fixed cost remains stable as compared to last FY.

4. There is increase in foreign currency fluctuation gain by 56%.

Segment Revenue comprises of Revenue from operations from forgings and machined components for automotive and industrial sector, and Other Operating Revenues.

Segment wise analysis has been made on the above basis and amounts allocated on a reasonable basis.

Mar 31, 2018

1. Corporate Information:

Tirupati Forge Limited was incorporated in 2012 under Companies Act, 1956. The Company is situated at Hadamtala Industrial Area in district of Rajkot. The Company is engaged in business of manufacturing of Carbon Steel Forged Flanges, Forged Components and other automotive components. The Company was converted into a public limited company with effect from 11 August, 2017.

2. Basis of Preparation:

The financial statements have been prepared to comply in all material respects with the standards specified under Section 133 of the Companies Act, 2013 ("Act"), read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Act. The financial statements have been prepared under historical cost convention on an accrual basis except in case of assets for which provision for impairment is made. The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed below, are consistent with those used in the previous year.

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

As per records of the company, including its register of shareholders/members and other declaration received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

Term Loan from IOB

(a) Loan is secured against hypothecation of Plant & Machineries purchased from the said Term Loan. It is also secured by equitable mortgage of Leasehold Factory Land and Building situated at Hadamtala Industrial Zone, District Rajkot and personal guarantee of directors.

(b) Interest rate of term loan is 10.90% p.a. (i.e. 2.50% over One Year MCLR 8.40% presently)

(d) However, the above term loan is repaid fully on 16.10.2017.

Term Loan from ICICI

(a) Term loan is secured against accent car.

(b) Interest rate of loan is 8.5%.

Inter Corporate deposits

(a) Inter Corporate deposits are unsecured.

(b) It is repayable on demand. However, all Intercorporate Deposits are repaid fully in current year.

Cash Credit

(a) Loan is secured against hypothecation of stock, book debt and with exclusive first charge on entire current assets. It is also secured by equitable mortgage of Industrial Land and Building situated at Hadamtal Industrial Zone, District Rajkot and personal guarantee of directors.

(b) Rate of interest is One Year MCLR 2.50%, Presently One Year MCLR is 8.40%. Hence effective rate is 10.90%.

Export Packing Credit

(b) Rate of interest is 11.40%.

3. GRATUITY

Every employee who has completed five years or more service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The Following table summaries the components of net benefit expense recognized in the statement of profit and loss and amounts recognized in the balance sheet for the respective plans.

4. Contingent Liabilities not acknowledged as debt

Bank has sanctioned bank guarantee upto Rs. 25.50 lakhs which is issued in favour of PGVCL (O & A), Gondal

5. Details of utilisation of proceeds of IPO

During the year, the Company has completed the initial public offer (IPO) and raised a total capital of Rs. 5,22,00,000 by issuing 18,00,000 equity shares of Rs 10 each at a premium of Rs 19 per share. The equity shares of the Company were listed on the National Stock Exchange (EMERGE Platform) effective from 12th October, 2017. The proceeds from IPO is Rs. 4,66,04,927 (net of issue expenses).

As per objects of the public issue mentioned on page no. 83-87 of final prospectus, management of the company in accordance with the policies of the Board, will have flexibility in utilizing any surplus amounts for other objects.

6. Other Notes

Previous year figures are regrouped, re arranged & re casted wherever necessary.

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