Notes to Accounts of Vibhor Steel Tubes Ltd.

Mar 31, 2025

vi) PROVISIONS, CONTINGENT LIABILITIES AND
CONTINGENT ASSETS

(a) General

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. If the effect of the time value
of money is material, the amount of a provision shall be
the present value of expense expected to be required to
settle the obligation. Provisions are therefore
discounted, when effect is material, The discount rate
shall be pre-tax rate that reflects current market
assessment of time value of money and risk specific to
the liability. Unwinding of the discount is recognised in

the Statement of Profit and Loss as a finance cost.
Provisions are reviewed at each balance sheet date and
are adjusted to reflect the current best estimate.

(b) Contingencies

Contingent liabilities are disclosed when there is a
possible obligation arising from past events, the
existence of which will be confirmed only by the
occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the company or a present obligation that arises from
past events where it is either not probable that an
outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.
Information on contingent liability is disclosed in the
Notes to the Financial Statements.

A contingent asset is a possible asset that arises from
past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more
uncertain future events not wholly within the control of
the entity, Contingent assets are not recognised, but are
disclosed in the notes. However, when the realisation of
income is virtually certain, then the related asset is no
longer a contingent asset, but it is recognised as an
asset.

vii) SHARE CAPITAL AND SECURITIES PREMIUM

Ordinary shares are classified as Equity. Incremental costs
directly attributable to the issue of new shares are
shown in equity as a deduction, net of tax, from the
proceeds.

Par value of the equity share is recorded as share capital and
the amount received in excess of the par value is
classified as securities premium.

viii) REVENUES

(a) Sale of products/goods

Revenue from sale of product/goods is recognized at
the point in time when control of asset is transferred to
the customer, generally on the delivery of the
product/goods and there is no uncertainty in receiving
the same and there is reasonable assurance that the
Company will comply with the conditions attached to
them.

The Company considers whether there are other
promises in the contracts that are separate
performance obligations to which a portion of the
transaction price needs to be allocated. ln determining
the transaction price for the sale of products/goods, the
Company considers the effects of variable
consideration, the existence of significant financing
components, non-cash consideration, and
consideration payable to the customer (if any).

Variable consideration: lf the consideration in a
contract includes a variable amount, the Company
estimates the amount of consideration to which it will be
entitled in exchange for transferring the goods to the
customer. The variable consideration is estimated at
contract inception and constrained until it is highly
probable that a significant revenue reversal in the
amount of cumulative revenue recognized will not
occur when the associated uncertainty with the
variable consideration is subsequently resolved. Some
contracts for the sale of Products/Goods provide
customers with a right of return and volume rebates.
The rights of return and volume rebates give rise to
variable consideration.

Contract Balances: If an entity performs by transferring
goods or services to a customer before the customer
pays consideration or before payment is due, the entity
shall present the contract as a contract asset, excluding
any amounts presented as a receivable. A contract
asset is an entity''s right to consideration in exchange for
goods or services that the entity has transferred to a
customer. Similarly, an entity shall recognize contract
liability when there is an entity''s obligation to transfer
goods or services to a customer for which the entity has
received consideration (or an amount of consideration
is due) from the customer.

Trade credit: ln case of exceptional trade credit agreed
with the customers which contain a significant
financing component, the transaction price for such
trade receivables are discounted, using the rate that
would be reflected in a separate financing transaction
between the Company and its customers at transaction
inception, to take into consideration the significant
financing component.

The Company identifies contract assets when the right
to consideration in exchange for goods or services
transferred to a customer is conditioned on something
other than the passage of time and identifies contract
liabilities when there is an obligation to transfer goods
or services to a customer for which the Company has
received consideration."

(b) Sale of services

Revenue from rendering of services is recognised over
time as the customer receives the benefit of the
Company''s performance and the Company has an
enforceable right to payment for services transferred.

(c) Other Income

A. Interest income is recognised on a time proportion
basis.

B. Other items of income accounted as and when the
right to receive such income arises and it is
probable that the economic benefits will flow to the
company and the amount of income can be
measured reliably.

ix) TAXATION

(a) Current tax

Current tax is expected tax payable on the taxable
income for the year, using the tax rate enacted at the
reporting date, and any adjustment to the tax payable in
respect of the earlier periods.

Current tax assets and liabilities are offset where the
company has legal enforceable right to offset and
intends either to settle on net basis, or to realize the
assets and settle the liability simultaneously.

(b) Deferred tax

Deferred tax is recognized for all taxable temporary
differences and is calculated based on the carrying
amounts of assets and liabilities for financial reporting
purposes and the amounts used for taxation purposes.

Deferred tax is measured at the tax rates that are
expected to be applied when the asset is realized or the
liability is settled, based on the laws that have been
enacted or substantively enacted at the reporting date.

Deferred tax assets are recognized only to the extent
that it is probable that future taxable profits will be
available against which the assets can be utilized.

Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer
probable that the related tax benefit will be realized.

Deferred tax assets and liabilities are offset when there
is a legally enforceable right to offset and when the
deferred tax balances relate to taxes levied by the same
tax authority on the same taxable entity, or on different
tax entities, but the company intends to settle current
tax liabilities and assets on a net basis or their tax assets
and liabilities will be realized simultaneously."

(c) Current and Deferred Tax for the Year

Current and deferred tax are recognized in the
statement of profit & loss, except when they relates to
items that are recognized in other comprehensive
income or directly in equity, in which case, the current
tax and deferred tax is recognized directly in other
comprehensive income or equity respectively.

x) EARNING PER SHARE

Basic Earnings Per Share is computed by dividing the net
profit attributable to the equity shareholders of the company
to the weighted average number of Shares outstanding
during the period & Diluted earnings per share is computed
by dividing the net profit attributable to the equity
shareholders of the company after adjusting the effect of all
dilutive potential equity shares that were outstanding during
the period. The weighted average number of shares
outstanding during the period includes the weighted
average number of equity shares that could have issued
upon conversion of all dilutive potential.

xi) COMMITMENTS

Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:

(i) estimated amount of contracts remaining to be
executed on capital account and not provided for

(ii) uncalled liability on shares and other investments partly
paid;

(iii) funding related commitment to subsidiary

xii) EMPLOYEE BENEFITS

The company provides for the various benefits plans to the
employees. These are categorized into Defined Benefits
Plans and Defined Contributions Plans. Defined contribution
plans includes the amount paid by the company towards the
liability for Provident fund to the employees provident fund
organization and Employee State Insurance fund in respect
of ESI and defined benefits plans includes the retirement
benefits, such as gratuity.

a. In respect Defined Contribution Plans, contribution
made to the specified fund based on the services
rendered by the employees are charged to Statement of
Profit & Loss in the year in which services are rendered
by the employee.

b. Liability in respect of Defined Long Term benefit plan is
determined at the present value of the amounts payable
determined using actuarial valuation techniques
performed by an independent actuarial at each balance
sheet date using the projected unit credit methods. Re¬
measurement, comprising actuarial gain and losses, the
effects of assets ceiling (if applicable) and the return on
plan assets (excluding interest), is reflected immediately in
the statement of Financial Position with a charge or credit
recognized in other comprehensive income in the period in
which they occur. Past Service cost is recognized in the
statement of profit & loss in the period of plan amendment.

c. Liabilities for short term employee benefits are
measured at undiscounted amount of the benefits
expected to be paid and charged to Statement of Profit
& Loss in the year in which the related service is
rendered such as salaries, wages, short-term
compensated absences, etc. and the expected cost of
bonus, ex-gratia

xiii) INVENTORIES

Inventories are carried in the balance sheet as follows:

Raw material, Stores & Spares: At cost where cost includes
cost of purchases and other costs incurred in bringing the
inventories to their present location and condition.

Finished goods: At lower of cost or net realizable value.

Stock in transit: At lower of cost net realizable value.

Inventories are valued at the lower of cost (First in First Out -
FIFO basis) and the net realisable value after providing for
obsolescence and other losses, where considered
necessary. Cost includes cost of purchase,all charges in
bringing the goods to the point of sale, including indirect
levies, transit insurance and receiving charges. Finished
goods include appropriate proportion of overheads and,
where applicable.

Rejection and scrap

Rejection and scrap are valued at net realisable value.

Net realizable value is the estimated selling price in the
ordinary course of business, less the estimated costs of
completion and selling expenses."

ix) LEASES

At inception of a contract, the Company assesses whether a
contract is, or contains, a lease. A contract is, or contains, a
lease if the contract conveys the right to control the use of an
identified asset for a period of time in exchange for
consideration. To assess whether a contract conveys the
right to control the use of an identified asset, the company
assesses whether :

(i) the contract involves the use of an identified asset

(ii) the company has substantially all of the economic
benefits from use of the asset through the period of the
lease, and

(iii) the company has the right to direct the use of the asset.

At the date of commencement of the lease, the
Company recognizes a right of use asset and a
corresponding lease liability for all lease arrangements
in which it is a lessee, except for the leases with a term
of 12 months (short term) or less and low value leases.
For these short term and low value leases, the company
recognizes the lease payments as an operating
expenses on a staright line basis over the term of the
lease.

Right of use assets are recognised on the date of lease
commencement (i.e. the date the underlying asset is
available for use). Right of use assets are measeured at
cost, less any accumulated depreciation, impairment
losses and adjusted for any remeausurement of lease
liabilities. Right of use assets are depreciated on a
straight line basis over the lease term. Right of use
assets are evaluated for recoverability whenever events
or changes in the circumstances indicate their carrying
amounts may not be recoverable. For the purpose of
impairment testing, the recoverable amount (i.e. the
higher of the fair value less cost to sell and value in use)
is determined on an individual asset basis unless the

asset does not generate cash flows that are largely
independent of those from other assets.

The lease liability is initially measured at amortised cost
at the present value of the future payments. The lease
payments are discounted using the interest rate implicit
in the lease or, if not readily determinable, using the
incremental borrowing rates in the country of domicile
of these leases. Lease liabilities are measured with a
corresponding adjustment to the related right of use
asset if the company changes its assessment if whether
it will excercise an extension or a termination option.

Lease liability and ROU asset have been separately
presented in the balance sheet and lease paymnets
have been classified as financing cash flows."

x) FOREIGN CURRENCY REINSTATEMENT AND
TRANSLATION

a) Functional and presentation currency

Standalone financial statements have been presented
in Indian Rupees (INR), which is the Company''s
functional and presentation currency.

b) Transactions and balances

Transactions in currencies other than the entity''s
functional currency (foreign currencies) are recognized
at the rates of exchange prevailing at the dates of the
transactions. At the end of each reporting period,
monetary items denominated in foreign currencies are
retranslated at the rates prevailing at that date. Non¬
monetary items are measured in terms of historical cost
in foreign currencies and are therefore not retranslated.

xi) DERIVATIVE FINANCIAL INSTRUMENTS:

The Company uses derivative financial instruments, such as
forward contracts to hedge its foreign currency exposure.
The recognizing of the resulting gain or loss depends on
whether the derivative is designated as a hedging
instrument, and if so, on the nature of the item being hedged.
Any gains or losses arising from changes in the fair value of
derivatives are taken directly to profit or loss.

Fair value hedge

The Company designates derivative contracts or non¬
derivative financial assets/ liabilities as hedging instruments
to mitigate the risk of change in fair value of hedged item due
to movement in interest rates, foreign exchange rates and
commodity prices.

Changes in the fair value of hedging instruments and hedged
items that are designated and qualify as fair value hedges
are recorded in the Statement of Profit and Loss. If the
hedging relationship no longer meets the criteria for hedge
accounting, the adjustment to the carrying amount of a
hedged item for which the effective interest method is used
is amortized to Statement of Profit and Loss over the period
of maturity.

xii) BORROWING COSTS

a) Borrowing costs that are attributable to the acquisition,
construction, or production of a qualifying asset are
capitalized as a part of the cost of such asset till such
time the asset is ready for its intended use or sale. A
qualifying asset is an asset that necessarily requires a
substantial period of time to get ready for its intended
use or sale. Where funds are borroweed specifically to
finance a project, the amount capitalised represents the
actual borrowing costs incurred. Where surplus funds
are available out of money borrowed specifically to
finance a project, the income generated from such

short term investments is deducted from the total
capitalsed borrowing cost. Where the funds used to
finance a project form part of general borrowings, the
amount capitalsed is caluclated using a weighted
average of rates applicable to relevant general
borrowings of the company during the year.

Capitalsation of borrowing costs is suspended and
charged to the statement of profit and loss during the
extended periods when the active development on the
qualifying asset is suspended."

b) All other borrowing costs are recognized as expense in
the period in which they are incurred.

c) EIR is the rate that excatly discounts the estimated
future cash payments or receipts over the expected life
of the financial liability or a shorter period, where
appropraite, to the amortised cost of a financial liability.
When calculating the effective interest rate (EIR) the
company estimates the expected cash flows by
considering all the contractual terms of the financial
instrument.

xii) FAIR VALUE MEASUREMENT

The Company measures financial instruments 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.

xiii) EVENTS OCCURING AFTER REPORTING PERIOD

Events after the reporting period are those events, favorable
and unfavorable, that occur between the end of the reporting
period and the date when the financial statements are
approved by the Board of Directors in case of a Company,
and, by the corresponding approving authority in case of any
other entity for issue. Two types of events can be identified:

(a) Those that provide evidence of conditions that existed
at the end of the reporting period (adjusting events after
the reporting period); and

(b) Those that is indicative of conditions that arose after the
reporting period (non-adjusting events after the
reporting period)

2.5) CRITICAL ACCOUNTING ESTIMATES,ASSUMPTIONS AND
JUDGEMENTS

In the process of applying the company''s accounting policies,
management has made the following estimates, assumptions and
judgements, which have significant effect on the amounts
recognised in the financial statement:

(i) Property, plant and equipment

On transition to Ind AS, the company has adopted optional
exemption under IND AS 101 for fair valuation of property,
plant and equipment. and investment properties.
Management believes that the assigned fair value, useful
lives and residual value are reasonable

(ii) Income taxes

Management judgment is required for the calculation of
provision for income taxes and deferred tax assets and
liabilities. The company reviews at each balance sheet date
the carrying amount of deferred tax assets. The factors used
in estimates may differ from actual outcome which could
lead to significant adjustment to the amounts reported in the
standalone financial statements.

(iii) Contingencies

Management judgement is required for estimating the
possible outflow of resources, if any, in respect of
contingencies/claim/ litigations against the company as it is
not possible to predict the outcome of pending matters with
accuracy.

(iv) Allowance for uncollectable accounts receivable and
advances

Trade receivables do not carry any interest and are stated at
their normal value as reduced by appropriate allowances for
estimated irrecoverable amounts. Individual trade
receivables are written off when management deems them
not to be collectible. Impairment is made on the expected
credit losses, which are the present value of the cash
shortfall over the expected life of the financial assets.

2.6) STANDARDS ISSUED BUT NOT YET EFFECTIVE

The Ministry of Corporate Affairs (MCA) notifies new standards or
amendments to the existing standards under Companies (Indian
Accounting Standards) Rules as issued from time to time. The
following amendments have been issued by MCA which are
applicable for the Company but not yet effective:

Ind AS 1, Presentation of Financial Statements - This amendment
requires the entities to disclose their material accounting policies
rather than their significant accounting policies. The effective
date for adoption of this amendment is annual periods beginning
on or after April 1, 2023.

The Company has evaluated the amendment and the impact of
the amendment is insignificant in the standalone financial
statements.

Ind AS 8, Accounting Policies, Changes in Accounting Estimates
and Errors - This amendment has introduced a definition of
''accounting estimates'' and included amendments to Ind AS 8 to
help entities distinguish changes in accounting policies from
changes in accounting estimates. The effective date for adoption
of this amendment is annual periods beginning on or after April 1,
2023. The Company has evaluated the amendment and there is
no impact on its Standalone financial statements.

Companies (Indian Accounting Standards) Amendment Rules,
2025

Ind AS 21, The Effects of Changes in Foreign Exchange Rates -
This amendment provides guidance for situations where a
currency is not exchangeable into another currency. It defines
''exchangeable'' currencies and sets out the method for estimating
the spot exchange rate when a currency is not exchangeable. It
also introduces enhanced disclosure requirements in such
situations. The effective date for adoption of this amendment is
annual periods beginning on or after April 1, 2025. The Company
has evaluated the amendment and assessed that the impact is
insignificant in the standalone financial statements.

Ind AS 101, First-time Adoption of Indian Accounting Standards -
Consequential amendments have been made to Ind AS 101 in
relation to non-exchangeable currencies and changes in
functional currency under specific circumstances. The effective
date for adoption of this amendment is annual periods beginning
on or after April 1, 2025. The Company has evaluated the
amendment and assessed that there is no impact on its
standalone financial statements.

The Company has evaluated the amendment and the impact of
the amendment is insignificant in the standalone financial
statements.

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to
occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant
actuarial assumptions the same method i.e. projected unit credit method has been applied as that used for calculating the defined benefit liability
recognised in the balance sheet.

v) Risk Expsoure

The defined benefit obligations have the undermentioned risk exposures :

Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined
benefit obligation will tend to increase.

Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal ,
disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the
combination of salary increase, discount rate and vesting criteria.

Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to high
quality corporate bond yields; if the return on plan asset is below this rate, it will create a plan deficit.

vi) Defined benefit liability and employer contributions

The weighted average duration of the defined benefit obligation is 32.32 years (March 31, 2024 : 33.17 years ).

The expected maturity analysis of undiscounted gratuity is as follows:

Note 43

A) FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise loans, borrowings and trade and other payables. The main purpose of these financial
liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and
cash and cash equivalents that derive directly from its operations. The Company also holds investments.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of
these risks. The Company''s senior management ensures that the Company''s financial risk activities are governed by appropriate policies and
procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All
derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and
supervision. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price
risk. Financial instruments affected by market risk include loans and borrowings.

The Company has no direct exposure to foreign currency risk.

-Interest rate risk

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''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt
obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable
rate loans and borrowings. The Company''s policy is to borrow funds at fixed and floating rate of interest.

(b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing
activities, including investments, deposits with banks and financial institutions and other financial instruments.

(i) Trade receivables

Customer credit risk is managed by the Company''s established policies, procedures and controls relating to customer credit risk
management. Credit quality of a customer is assessed based on an individual credit limits and are defined in accordance with
management''s assessment of the customer. Outstanding customer receivables are regularly monitored. The concentration of credit
risk is limited due to the fact that the customer base is large. An impairment analysis is performed at each reporting date using a
provision matrix to measure expected credit losses. The Company uses ageing buckets and provision matrix for the purpose of
computation of expected credit loss. The provision rates are based on past trend of recoverability. The calculation reflects the
probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting
date about past events, current conditions and forecasts of future economic conditions.

(ii) Financial instruments and bank deposits

Credit risk from balances with banks is managed by the management in accordance with the Company''s policy. Investments of
surplus funds are made only with approved counterparties based on limits defined by the management. The limits are set
to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make
payments.

(c) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with financial
liabilities that are required to be settled by delivering cash or another financial asset. The Company''s objective is to maintain a balance
between continuity of funding and flexibility through the use of bank overdrafts, bank loans and finance leases. The Company closely
monitors its liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash
flows from its current operations, which in addition to the available cash and cash equivalents and sufficient committed fund facilities, will
provide liquidity.The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities. The carrying
amounts are assumed to be reasonable approximation of fair value.

B) Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity attributable to the equity
holders. 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. 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 0% and 25%. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

Note 46: ADDITIONAL REGULATORY INFORMATION

(i) The title deeds of the Immovable Properties are held in the name of the Company.

(ii) The company does not have any Investment Property; hence disclosure not applicable.

(iii) The Company has not revalued its Property, Plant and Equipment, hence the disclosure regarding valuation not applicable.

(iv) The Company has not revalued its Intangible Assets, hence the disclosure regarding valuation not applicable.

(v) No loans or advances has been granted to the promoters, directors, KMP''s and the related parties (as defined under Companies Act, 2013),
hence disclosure not applicable.

(vi) The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 and no proceeding has been initiated
or is pending against the Company for holding any benami property.

(vii) Borrowings from banks or finacial institutions on the basis of security of current assets:

(a) the quaterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with books
of accounts.

(viii) The company has not been declared as a wilful defaulter by any bank or financial Institution or other lender.

(ix) The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of
Companies Act, 1956.

(x) Neither charges nor satisfaction is yet to be registered with ROC beyond the statutory period.

(xi) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction
on number of Layers) Rules, 2017.

(xii) The company has not applied for any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

(xiii) Utilization of Borrowed Funds and Share Premium:

(a) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of
funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).

(b) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

(xv) The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961.

(xvi) The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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Mar 31, 2024

Other Disclosures:

The Company has only one class of equity shares having a par value of INR 10.00 per share. Each Shareholder is eligible for one vote per share. In the event of liquidation, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all preferential amount, in proportion of their shareholding.

1. The company has not defaulted in the repayment of loans, interest as at balance sheet date.

2. Bank Loans availed by the company are subject to certain covenants relating to Debt Service Coverage ratio, total outside liabilities to total networth and fixed assets coverage ratio. The company has complied with the covenants as per the terms of loan agreements.

3. 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(s) or entity(ies), including foreign entities ("Intermediaries"), 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 ("Ultimate Beneficiaries") 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(s) or entity(ies), including foreign entities ("Funding Parties"), 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 ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note : *Term Loan Facilities are secured by first pari passu charges through equitable mortage of the company land and building situated at Gut No 69 and 71, Gut No 86/1 & 2, Gut No 86/2, Gut no. 69/1(Part) & 66, Vill Sukeli Tehsil- Roha Dist. Raigarh, Flat No. 1801, adm. 1362 sq. ft carpet area along with adm, 316 sq. ft. of Terrace and flower bed area 18^th Floor, E wing, Building known as The Springs situated at Plot No.4, Sector -20, village kalamboli, Panvel, constructed on land bearing Plot No.4, Sector- 20, Village Kalamboli, Survey No. 513, 515, 516, situated at Udithyal Village, Balanagar Mandal, Mahaboob Nagar District, current assets and movable assets.

* Working capital Facilities of Vibhor Steel Tubes Limited from bank are secured by first pari passu charges on entire present and future current assets and second charge on presend and future movable fixed asset of the company situated at Gut No 69 and 71, Gut No 86/1 & 2, Gut No 86/2, Gut no. 69/1(Part) & 66, Vill Sukeli Tehsil- Roha Dist. Raigarh, Flat No. 1801, adm. 1362 sq. ft carpet area along with adm, 316 sq. ft. of Terrace and flower bed area 18^th Floor, E wing, Building known as The Springs situated at Plot No.4, Sector -20, village kalamboli, Panvel, constructed on land bearing Plot No.4, Sector- 20, Village Kalamboli, Survey No. 513, 515, 516, situated at Udithyal Village, Balanagar Mandal, Mahaboob Nagar District, current assets and movable assets.

** Repayable on demand.

Note 37: SEGMENT INFORMATION

The company is engaged in the business of steel ERW Black and Galvanised Pipes & Tubes. Information is reported to and evaluated regularly by the Coperational Decision Maker (CODM) i.e. Managing Director for the purpose of resource allocation and assessing performance focuses on the business as whole. The CODM reviews the Company''s performance focuses on the analysis of profit before tax at an overall entity level. Accordingly, there is no other separate reportable segment as defined by IND AS 108 "Operating Segments".

Note 38: CONTINGENT LIABILITIES
Particulars	As at March 31, 2024	As at March 31, 2023
A) Disputed claims/levies in respect of Value Added Tax / Sales Tax:
- Reversal of input tax credit	-	-
- Regular / Provisional Assessment	-	404.55
(The dispute is regarding rate of tax on GI and ERW Pipes and Tubes and enhancement of turnover and taxable turnover on account of allegation of sales suppression for the AY 2016-17 and April 2016 to June 2016 however, the case was finalized in the favor of the assessee on 31.07.2023 by MVATAppeallate Authority)
B) Bank Guarantee issued to :
- Maharashtra State Electricity Distribution	85.85	-
- The Executive Engineer Raigad	0.65	-
- Maharashtra Pollution Control Board	14.50	-
Total	101.00	404.55

(a) Defined Benefit Plans Gratuity

The Company operates a defined benefit gratuity plan for its employees. The gratuity scheme provides for lump sum payment to vested employees at retirement/death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months subject to a limit of INR 20.00 lakhs (March 31,2024: INR 20.00 lakhs and March 31, 2023: IN R 20.00 lakhs)

The above sensitivity analyses are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method i.e. projected unit credit method has been applied as that used for calculating the defined benefit liability recognised in the balance sheet.

v) Risk Expsoure

The defined benefit obligations have the undermentioned risk exposures :

Interest rate risk : The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yields fall, the defined benefit obligation will tend to increase.

Salary Inflation risk : Higher than expected increases in salary will increase the defined benefit obligation.

Demographic risk : This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria.

Investment risk : The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to high quality corporate bond yields; if the return on plan asset is below this rate, it will create a plan deficit.

B) Defined Contribution Plan

The Company has a defined contribution plan in respect of provident fund. Contributions are made to provident fund and employees state insurance in India for employees at the rate as prescribed in the regulations.The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

Note 42: FINANCIAL INSTRUMENTS Fair value of financial assets and liabilities

The fair value of the financial assets and liabilities are included at the amount at which the instruments could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Comparison by class of the carrying amounts and fair value of the Company''s financial instruments that are recognised in the financial statements are set out below.

The following methods and assumptions were used to estimate the fair values:

1. The carrying amount of Trade receivables, Trade payables and Cash & cash equivalent are considered to be their fair values due to their short term nature.

2. The carrying amount of the financial assets and liabilities carried at amortised cost is considered a reasonable approximation of fair value.

3. The Investment in Mutual Fund and Non Convertible Debentures is measured at NAV, being the fair value as on reporting date.

4. Lease Liabilities are measured at Amortised Cost, the carrying amount approximate to Fair Value, as lease liabilities are recognized based on the present value of the remianing lease payments.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets and liabilities

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable either directly or indirectly

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data

Note 43:

A) FINANCIAL RISK MANAGEMENT

The Company''s principal financial liabilities comprise loans, borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds investments.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management ensures that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

(a) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings.

The Company has no direct exposure to foreign currency risk.

-Interest rate risk

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''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings. The Company''s policy is to borrow funds at fixed and floating rate of interest.

(b) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including investments, deposits with banks and financial institutions and other financial instruments.

(i) Trade receivables

Customer credit risk is managed by the Company''s established policies, procedures and controls relating to customer credit risk management. Credit quality of a customer is assessed based on an individual credit limits and are defined in accordance with management''s assessment of the customer. Outstanding

customer receivables are regularly monitored. The concentration of credit risk is limited due to the fact that the customer base is large. An impairment analysis is performed at each reporting date using a provision matrix to measure expected credit losses. The Company uses ageing buckets and provision matrix for the purpose of computation of expected credit loss. The provision rates are based on past trend of recoverability. The calculation reflects the probability-weighted outcome, the time value of money and reasonable and supportable information that is available at the reporting date about past events, current conditions and forecasts of future economic conditions.

(ii) Financial instruments and bank deposits

Credit risk from balances with banks is managed by the management in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties based on limits defined by the management. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

(c) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its present and future obligations associated with financial liabilities that are required to be settled by delivering cash or another financial asset. The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans and finance leases. The Company closely monitors its liquidity position and deploys a robust cash management system. It aims to minimise these risks by generating sufficient cash flows from its current operations, which in addition to the available cash and cash equivalents and sufficient committed fund facilities, will provide liquidity.The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities. The carrying amounts are assumed to be reasonable approximation of fair value.

B) CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity attributable to the equity holders. 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. 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 0% and 25%. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

Note 46: ADDITIONAL REGULATORY INFORMATION

(i) The title deeds of the Immovable Properties are held in the name of the Company.

(ii) The company does not have any Investment Property; hence disclosure not applicable.

(iii) The Company has not revalued its Property, Plant and Equipment, hence the disclosure regarding valuation not applicable.

(iv) The Company has not revalued its Intangible Assets, hence the disclosure regarding valuation not applicable.

(v) No loans or advances has been granted to the promoters, directors, KMP''s and the related parties (as defined under Companies Act, 2013), hence disclosure not applicable.

(vi) The Company does not hold any benami property under the Benami Transactions (Prohibition) Act, 1988 and no proceeding has been initiated or is pending against the Company for holding any benami property.

(vii) Borrowings from banks or finacial institutions on the basis of security of current assets:

(a) the quaterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with books of accounts.

(viii) The company has not been declared as a wilful defaulter by any bank or financial Institution or other lender.

(ix) The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

(x) Neither charges nor satisfaction is yet to be registered with ROC beyond the statutory period.

(xi) The company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017.

(xii) The company has not applied for any Scheme of Arrangements in terms of sections 230 to 237 of the Companies Act, 2013.

(xiii) Utilization of Borrowed Funds and Share Premium:

(a) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries).

(b) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party).

(xv) The Company has not surrendered or disclosed any income during the year in the tax assessments under the Income Tax Act, 1961.

(xvi) The company has not traded or invested in Crypto currency or Virtual Currency during the financial year.