Notes to Accounts of Vraj Iron & Steel Ltd.

Mar 31, 2025

C.10 Provisions, Contingent Liability and Contingent Assets

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, provisions are
discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to

the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.

Disclosure of contingent liability is made 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 embodying economic benefits will be required to settle or a reliable
estimate of amount cannot be made. Contingent liabilities are not recognized but are
disclosed in notes.

Contingent Assets are disclosed by way of a note only if inflow of economic benefits is
probable.

C.ll Government Grants

Government grants are recognised where there is reasonable assurance that the grant will
be received, and all attached conditions will be complied with. When the grant relates to
revenue, it is recognised in the Standalone Statement of Profit and Loss on a systematic basis
over the periods to which they relate. When the grant relates to an asset, it is treated as
deferred income and recognised in the Standalone Statement of Profit and Loss by way of
deduction from depreciation expense on a systematic basis over the useful life of the asset.

C.12 Cash and cash equivalents

Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and
short-term highly liquid investments (with a maturity within three months or less from the
date of purchase) that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.

C.13 Earnings per share

Basic earnings per share is computed by dividing the Net Profit or loss after tax for the year
attributable to equity holders by the weighted average number of shares outstanding during
the year. Partly paid-up shares are included as fully paid equivalents according to the fraction
paid-up. Diluted earnings per share is computed using the weighted average number of
shares and dilutive potential shares except where the result would be anti-dilutive.

C.14 Borrowing costs

Borrowings costs directly attributable to the acquisition, construction or production of
qualifying assets, assets that takes substantial period of time to get ready for their intended
use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for the intended use or sale.

C.15 Foreign currency transactions and translation

Standalone Financial statements are presented in which is the functional currency of the
Company and the presentation currency. Transactions in currencies other than the functional

currency are recorded at the rates of exchange prevailing on the date of the transaction. At
the end of each reporting period, monetary items denominated in foreign currencies are re¬
translated at the rates prevailing at the end of the reporting period. Non-monetary items
carried at fair value that are denominated in foreign currencies are re-translated at the rates
prevailing on the date when the fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency are not translated. Exchange
differences arising on the retranslation or settlement of other monetary items are included
in the Standalone Statement of Profit and Loss for the year.

Income and expense items are translated at the average exchange rates for the period.
Exchange differences arising, if any, are recognised in other comprehensive income and
accumulated in a separate component of equity. Goodwill and fair value adjustments arising
on the acquisition of a foreign operation are treated as assets and liabilities of the foreign
operation and translated at the closing rate.

C.16 Revenue recognition

Revenue from sale of goods in the course of ordinary activities is measured at the fair value
of the consideration received or receivable, net of return, trade discounts and volume
rebates. Revenue is recognized when the control over the goods have been transferred to
the buyer, recovery of the consideration is probable, the associated cost and possible return
can be estimated reliably and there is no continuing effective control or managerial
involvement with, has not retained any significant risks of ownership or future obligations
with, the goods, and the amount can be measured reliably.

Revenue from rendering of services is recognised over time by measuring the progress
towards complete satisfaction of performance obligations at the reporting year.

Revenue is measured at the amount of consideration which the Company expects to be
entitled to in exchange for transferring distinct goods or services to a customer as specified
in the contract, excluding amounts collected on behalf of third parties (for example taxes and
duties collected on behalf of the government). Consideration is generally due upon
satisfaction of performance obligations and a receivable is recognised when it becomes
unconditional. Due to the short nature of credit period given to/ advance received from
customers, the same does not require adjustment of financing component and hence not
accounted separately.

C.17 Other income

Interest income is accrued on a time basis, by reference to the principal outstanding and at
the effective interest rate applicable, which is the rate that exactly discounts estimated
future cash receipts through the expected life of the financial asset to the asset''s net carrying
amount on initial recognition. Interest income is included in other income in the standalone
statement of profit and loss. Lease payments under operating leases are recognized as an
income on a straight-line basis in the Standalone Statement of Profit and Loss over the lease
term except where the lease payments are structured to increase in line with expected
general inflation. The respective leased assets are included in the balance sheet based on
their nature. Dividend Income is recognised when the Company''s right to receive the amount
has been established.

C.18 Employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange
for the services rendered by employees are recognised as an expense during the period
when the employees render the services.

The Company participates in various employee benefit plans. Post-employment benefits are
classified as either defined contribution plans or defined benefit plans. Under a defined
contribution plan, the Company''s only obligation is to pay a fixed amount with no obligation
to pay further contributions if the fund does not hold sufficient assets to pay all employee
benefits. The related actuarial and investment risks fall on the employee. The expenditure
for defined contribution plans is recognized as expense during the period when the
employee provides service. Under a defined benefit plan, it is the Company''s obligation to
provide agreed benefits to the employees. The related actuarial and investment risks fall on
the Company.

Defined Contribution Plan: Contribution to Provident fund and Employee State Insurance
are accounted for on accrual basis.

Defined Benefit Plan: Leaves cannot be carried forward to next year and the same is either
availed or encashed at the year end. Actuarial gains or losses on gratuity are recognized in
other comprehensive income. Profit or loss does shall not include expected return on plan
assets. Net interest recognized in profit or loss is calculated by applying the discount rate
used to measure the defined benefit obligation to the net defined benefit liability or asset.
The actual return on the plan assets above or below the discount rate is recognized as part of
re-measurement of net defined liability or asset through other comprehensive income.

Re-measurements comprising actuarial gains or losses and return on plan assets (excluding
amounts included in net interest on the net defined benefit liability) are not reclassified to
profit or loss in subsequent periods.

C.19 Research and Development Expenses

Research and Development Expenses of revenue nature are charged to the Standalone
Statement of Profit and Loss.

C.20 Taxes

The tax expenses for the period comprises of current tax and deferred income tax. Tax is
recognised in Standalone Statement of Profit and Loss, except to the extent that it relates to
items recognised in the Other Comprehensive Income. In which case, the tax is also
recognised in Other Comprehensive Income.

Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the Income Tax authorities, based on tax rates and laws that are enacted at the
Balance sheet date and it includes adjustment to tax payable in respect of previous years.

Deferred tax is recognised on temporary differences between the carrying amounts of assets
and liabilities in the Financial Statements and the corresponding tax bases used in the
computation of taxable profit.

Deferred tax assets are recognised to the extent it is probable that taxable profit will be
available against which the deductible temporary differences, and the carry forward of
unused tax losses can be utilised. Deferred tax liabilities and assets are measured at the tax
rates that are expected to apply in the period in which the liability is settled or the asset
realised, based on tax rates (and tax laws) that have been enacted or substantively enacted
by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets
are reviewed at the end of each reporting period.

C.21 Statement of Cash flows

Statement of Cash flows are prepared in accordance with "Indirect Method" in accordance
with Ind AS - 7 consisting of operating, investing and financing activity of the company.

C.22 Segment Reporting

Identification of Segments: The Company''s operating businesses are organized and managed
separately according to the nature of products and services provided, with each segment
representing a strategic business unit. Segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision maker.

Segment Accounting Policies: The Company prepares its segment information in conformity
with the accounting policies adopted for preparing and presenting the financial statements
of the Company as a whole.

Inter-Segment Transfers: The Company generally accounts for intersegment transfers at an
agreed transaction value.

Unallocated Items: Unallocated items include general corporate income and expense items
which are not allocated to any business segment.

C.23 Loans and borrowings

Loans and borrowings are initially recognized at fair value net of transaction costs incurred.
Subsequently, these are measured at amortized cost using the effective interest rate (''EIR'')
method. Amortized cost is calculated by taking into account any discount or premium on
acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is
included as finance costs in the Standalone Statement of Profit And Loss.

C.24 Trade and other payables

These amount represent liabilities for goods and services provided to the Company prior to
the end of the financial year which are unpaid. The amounts are unsecured. Trade and other
payables are presented as current liabilities unless payment is not due within 12 months
after the reporting period. They are recognized initially at their fair value and subsequently
measured at amortized cost using the EIR model.

C.25 Onerous Contracts

Provisions for onerous contracts are recognized when the expected benefits to be derived by
the Company from a contract are lower than the unavoidable costs of meeting the future
obligations under the contract. The provision is measured at lower of the expected cost of
terminating/exiting the contract and the expected net cost of fulfilling the contract.

C.26 Other Accounting Polices

Accounting policies are referred to otherwise are consistent with generally accepted
accounting principles.

C.27 Ind-AS Standards issued but not yet effective

The Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the
existing standards under Companies (Indian Accounting Standards) Rules as issued from time
to time. On March 31, 2023, MCA issued the Companies (Indian Accounting Standards)
Amendment Rules, 2023, applicable from April 1, 2023, as below:-

Ind AS 1 - Presentation of Financial Statements: The amendments require companies to
disclose the material accounting policies rather than their significant accounting policies.
Accounting policy information, together with other information, is material when it can
reasonably be expected to influence decisions of primary users of general purpose financial
statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors: The

amendments will help entities to distinguish between accounting policies and accounting
estimates. The definition of a change in accounting estimates has been replaced with a
definition of accounting estimates. Under the new definition, accounting estimates are
"monetary amounts in financial statements that are subject to measurement uncertainty".
Entities develop accounting estimates if accounting policies require items in financial
statements to be measured in a way that involves measurement uncertainty.

Ind AS 12 - Income Taxes: The amendments clarify how companies account for deferred tax
on transactions such as leases and decommissioning obligations. The amendments narrowed
the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 so that it no
longer applies to transactions that, on initial recognition, give rise to equal taxable and
deductible temporary differences.

Company does not expect that these amendments shall have significant impact in its
financial statements.

38 Financial Risk Management Objectives and policies

The companies'' financial liabilities, other than derivatives, comprise borrowings, capital creditors and trade and other payables. The main
purpose of these financial liabilities is to finance the company operations. The company financial assets include trade and other
receivables, cash and cash equivalents, investments and deposits.

The management ensures that risks are identified, measured and managed in accordance with Risk Management Policy . The Board of
Directors also review these risks and related risk management policy.

The market risks, liquidity risks and credit risks are further explained 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 investments, trade payables, etc.

. Interest rate risk

0

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 group companies'' exposure to the risk of changes in market interest rates relates primarily to the debt obligations.Thc
group manages its interest rale risk by having a balanced portfolio of borrowings ;utd equity.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on loans and borrowings affected. With all
other variables held constant, the group''s profit before tax is affected through the impact on floating rate borrowings, as follows:

c Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange
rates. The group’s exposure to this risk is not there as there arc no foreign currccy transactions undertaken.

d Equity price risks

The company invests only inrclated companies which is a part of long term business planning and in strategic in nature. There is no other
investment and hence there are no equity price risks exposure to the company.

e Credit risks

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).

Trade receivables

Maximum exposure to the credit risk is on account of outstanding balances in the trade reeeiveables account. But as per experience, the
ageing of debtors is always kept less than six months and there are no bad debts encountered in past hence the risk is almost negligible.
Credit Risk is managed by the company by monitoring their credit worthiness of customers, credit oplicies and deploying efficient
resources for collection.

B Fair Values Hierarchy

Financial assets anil financial liabilities measured at fair value in the statement of financial position are classified into three Levels of a fair
value hierarchy. The three Levels are denied based on the observability of significant inputs to the measurement, as follows:

Level 1: quoted prices (unadjusted) in active markets for financial instruments.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which
maximise the use of observable market data rely as little as possible on entity specific estimates.

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

b Defined Benefit
Gratuity

The company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is
entitled to Gratuity on terms not less favourable than the provisions of The Payment of Gratuity Act, 1972. Though the
scheme is not yet funded with an insurance company.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss
and the funded status and amounts recognised in the balance sheet for the Post - retirement benefit plan i.c. Gratuity.

43 Lease Disclosure
a As lessor:

Company has not given any assets under any lease arrangement,
b As Lessee:

At inception of contract, company assesses whether the contract contains lease or not. ie it contains the right to control the use
of any specific asset for a specific period of time in exchange of consideration.

Company recognises Right to Use assets and Lease liabilities at the inception of lease agreement. The right of use (ROU) is
measured at cost which comprises of the initial amount of lease liability adjusted for any lease paymentsmade at or alter
commencement date. The Right of use is subsequently amortised at straight line basis over the term of the lease.

I .ease liability is initially measured at the present value of the lease payments that are not paid at commencement date,
discounted using the company''s incremental borrowing rate.

Company has elected not to recognise lease of less than 12 months and also of cases wherein monthly lease payment is of less
than l 0.01 million.

Incremental borrow ing rale applied to lease liability is 10%.

The outstanding balance at the year end in respect of Sundry Creditors. Loans and Advances. Deposits and certain Bank Accounts are subject to
confirmation / reconciliation from the respective parties and the same have been reckoned in these accounts as per the balances appearing in the books. Any
further adjustments arising out of reconciliation will be accounted for as and when such reconciliation is completed. The company however does not
expect any material effect in a particular year or in future years.

The title deeds of all immovable properties are held in the name of the company itself. Further.the the company has not carried out revaluation of items of
52 Properly. Plant & Equipment during the year and accordingly the disclosure as to whether the revaluation is basal on the valuation by a registered valuer is
not applicable.

No proceedings have hocn initialed or pending against the company for holding any benatni property under the Benami Transactions (Prohibition) Act.
1988 (45 of 1988) and the rules made thereunder.

^ The consolidated financial Statements are presented in million and hence the totals in this report may appear to be different from apparent total, but such
anomaly is merely due to presentation of figures in million. However figures (in rupees ) is tallied with books of accounts.

^ The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during
the year in the tax assessments under the Income Tax Act. 1961.

The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of

56 the security of current assets at any point of time during the year. The quarterly returns/statements filed by the Company with such banks and financial
institutions arc in agreement with the books of account of the Company.

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

The Company has duly complied with the number of layers prescribes! under clause (87) of section 2 of the Act read with Companies (Restriction on
number of I .ayers) Rules. 2017

59 Company was not required to comply with any Compliance with Scheme(s) of Arrangements.

''ITic Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities with the understanding that the
^ Intermediary shall;

1) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or

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

61 There has been no default in Repayment of any borrowings by the Company.

62 The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

The Company has not received any fund from any person or entity, including foreign entities w ith the understanding that the Company shall:

65 (1) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party or
(2) provide any guarantee, security or the like provided to or on behalf of the Ultimate beneficiaries.

64 Tile Company have not traded or invested in Crypto currency or Viitual Currency during the year covered under this report.

Tile Company do not have ;uiy transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act,

⁶⁵ 1956

66 The comparative figures have l>een regrouped / reclassified wherever necessary, to make them comparable.

Additional regulatory inl''ormation/disclosures as required by general instructions to Division-ll of Schedule III to the Companies Act, 2013 are furnished to
the extent applicable to the Company

68 ''ITic financial statements for the Financial year ended March 31.2025 were approved for issue by the Board of Directors on May 27. 2025.

As per our report of even date attached For and on behalf of the Board of Directors of

VRAJ IRON AND STEEL LIMITED

For AMI1ABH AGRAWAL AND CO. C1N : L27101CT2004PLC016701

CHARTERED ACCOUNTANTS
FIRM REGISTRATION NO: 006620C

Y''UAY ANAND J HAN WAR PRASANT KUMAR MOHTA

MANAGING DIRECTOR WHOLE TIME DIRECTOR
AMAR SINHA DIN: 00826103 DIN : 06668452

PARTNER

MEMBERSHIP NO.: 451734

PLACE: RAIPUR PRIYA NAMDEO SHRIRAM VERMA

DATE: 27-05-2025 COMPANY SECRETARY CHIEF FINANCIAL OFFICER

MEMBERSHIP NO: A50205 PAN : ADIPV4463B

---

Mar 31, 2024

C.10 Provisions, Contingent Liability and Contingent Assets

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

Disclosure of contingent liability is made 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 embodying economic benefits will be required to settle or a reliable estimate of amount cannot be made. Contingent liabilities are not recognized but are disclosed in notes.

Contingent Assets are disclosed by way of a note only if inflow of economic benefits is probable.

C.11 Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received, and all attached conditions will be complied with. When the grant relates to revenue, it is recognised in the StandaloneStatement of Profit and Loss on a systematic basis over the periods to which they relate. When the grant relates to an asset, it is treated as deferred income and recognised in the StandaloneStatement of Profit and Loss by way of deduction from depreciation expense on a systematic basis over the useful life of the asset.

C.12 Cash and cash equivalents

Cash and cash equivalents comprise of cash on hand, cash at banks, short-term deposits and short-term highly liquid investments (with a maturity within three months or less from the date of purchase) that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

C.13 Earnings per share

Basic earnings per share is computed by dividing the Net Profit or loss after tax for the year attributable to equity holders by the weighted average number of shares outstanding during the year. Partly paid-up shares are included as fully paid equivalents according to the fraction paid-up.Diluted earnings per share is computed using the weighted average number of shares and dilutive potential shares except where the result would be anti-dilutive.

C.14 Borrowing costs

Borrowings costs directly attributable to the acquisition, construction or production of qualifying assets, assets that takes substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for the intended use or sale.

C.15 Foreign currency transactions and translation

Standalone Financial statements are presented inRs, which is the functional currency of the Company and the presentation currency. Transactions in currencies other than the functional currency are recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Non-monetary items carried at fair value that are denominated in foreign currencies are re-translated at the rates prevailing on the date when the fair value was determined. Nonmonetary items that are measured in terms of historical cost in a foreign currency are not translated. Exchange differences arising on the retranslation or settlement of other monetary items are included in the Standalone Statement of Profit and Loss for the year.

Income and expense items are translated at the average exchange rates for the period. Exchange differences arising, if any, are recognised in other comprehensive income and accumulated in a separate component of equity. Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.

C.16 Revenue recognition

Revenue from sale of goods in the course of ordinary activities is measured at the fair value of the consideration received or receivable, net of return, trade discounts and volume rebates. Revenue is recognized when the control over the goods have been transferred to the buyer, recovery of the consideration is probable, the associated cost and possible return can be estimated reliably and there is no continuing effective control or managerial involvement with, has not retained any significant risks of ownership or future obligations with, the goods, and the amount can be measured reliably.

Revenue from rendering of services is recognised over time by measuring the progress towards complete satisfaction of performance obligations at the reporting year.

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods or services to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes and duties collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a receivable is recognised when it becomes unconditional. Due to the short nature of credit period given to/ advance received from customers, the same does not require adjustment of financing component and hence not accounted separately.

C.17 Other income

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the asset''s net carrying amount on initial recognition. Interest income is included in other income in the standalone statement of profit and loss. Lease payments under operating leases are recognized as an income on a straight-line basis in the Standalone Statement of Profit and Loss over the lease term except where the lease payments are structured to increase in line with expected general inflation. The respective leased assets are included in the balance sheet based on their nature. Dividend Income is recognised when the Company’s right to receive the amount has been established.

C.18 Employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognised as an expense during the period when the employees render the services.

The Company participates in various employee benefit plans. Post-employment benefits are classified as either defined contribution plans or defined benefit plans. Under a defined contribution plan, the Company’s only obligation is to pay a fixed amount with no obligation to pay further contributions if the fund does not hold sufficient assets to pay all employee benefits. The related actuarial and investment risks fall on the employee. The expenditure for defined contribution plans is recognized as expense during the period when the employee provides service. Under a defined benefit plan, it is the Company’s obligation to provide agreed benefits to the employees. The related actuarial and investment risks fall on the Company.

Defined Contribution Plan: Contribution to Provident fund and Employee State Insurance are accounted for on accrual basis.

Defined Benefit Plan:Leaves cannot be carried forward to next year and the same is either availed or encashed at the year end. Actuarial gains or losses on gratuity are recognized in other comprehensive income. Profit or loss does shall not include expected return on plan assets. Net interest recognized in profit or loss is calculated by applying the discount rate used to measure the defined benefit obligation to the net defined benefit liability or asset. The actual return on the plan assets above or below the discount rate is recognized as part of re-measurement of net defined liability or asset through other comprehensive income.

Re-measurements comprising actuarial gains or losses and return on plan assets (excluding amounts included in net interest on the net defined benefit liability) are not reclassified to profit or loss in subsequent periods.

C.19 Research and Development Expenses

Research and Development Expenses of revenue nature are charged to the Standalone Statement of Profit and Loss.

C.20 Taxes

The tax expenses for the period comprises of current tax and deferred income tax. Tax is recognised in Standalone Statement of Profit and Loss, except to the extent that it relates to items recognised in the Other Comprehensive Income. In which case, the tax is also recognised in Other Comprehensive Income.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the Income Tax authorities, based on tax rates and laws that are enacted at the Balance sheet date and it includes adjustment to tax payable in respect of previous years.

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the Financial Statements and the corresponding tax bases used in the computation of taxable profit.

Deferred tax assets are recognised to the extent it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax losses can be utilised. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period. The carrying amount of Deferred tax liabilities and assets are reviewed at the end of each reporting period.

C.21 Statement of Cash flows

Statement of Cash flows are prepared in accordance with “Indirect Method” in accordance with Ind AS - 7 consisting of operating, investing and financing activity of the company.

C.22 Segment Reporting

Identification of Segments: The Company’s operating businesses are organized and managed separately according to the nature of products and services provided, with each segment representing a strategic business unit. Segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

Segment Accounting Policies: The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements of the Company as a whole.

Inter-Segment Transfers: The Company generally accounts for intersegment transfers at an agreed transaction value.

Unallocated Items: Unallocated items include general corporate income and expense items which are not allocated to any business segment.

C.23 Loans and borrowings

Loans and borrowings are initially recognized at fair value net of transaction costs incurred. Subsequently, these are measured at amortized cost using the effective interest rate (‘EIR’) method. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Standalone Statement of Profit And Loss.

C.24 Trade and other payables

These amount represent liabilities for goods and services provided to the Company prior to the end of the financial year which are unpaid. The amounts are unsecured. Trade and other payables are presented as current liabilities unless payment is not due within 12 months after the reporting period. They are recognized initially at their fair value and subsequently measured at amortized cost using the EIR model.

C.25 Onerous Contracts

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Company from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at lower of the expected cost of terminating/exiting the contract and the expected net cost of fulfilling the contract.

C.26 Other Accounting Polices

Accounting policies are referred to otherwise are consistent with generally accepted accounting principles.

C.27 Ind-AS Standards issued but not yet effective

The Ministry of Corporate Affairs (“MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA issued the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:-

Ind AS 1 - Presentation of Financial Statements: The amendments require companies to disclose the material accounting policies rather than their significant accounting policies. Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of primary users of general purpose financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors: The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates are “monetary amounts in financial statements that are subject to measurement uncertainty”. Entities develop accounting estimates if accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty.

Ind AS 12 - Income Taxes: The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences.

Company does not expect that these amendments shall have significant impact in its financial statements.

First Time Adoption of Ind AS

The Company has adopted Ind AS with effect from 1st April, 2023 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April, 2022.

The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

a) Exemptions from retrospective application

i) Deemed cost for property, plant and equipment and intangible assets

The Company has elected to measure all its property, plant and equipment and intangible assets at the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

ii) Investments in subsidiaries, joint ventures and associates

The Company has elected to measure investment in subsidiaries, joint venture and associate at cost if any.

b) Transition to Ind AS - Reconciliations

The following reconciliations provide the explanations and quantification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

i) Reconciliation of Balance Sheetas at 1st April, 2022 and 31st March, 2023. Refer Note-1.1.

ii) Reconciliation of Statement of Profit and Loss for the year ended 31st March, 2016. Refer Note-1.2.

iii) Reconciliation of Equity as at 1st April, 2022 and 31st March, 2023. Refer Note-1.3.

37 Financial Risk Management Objectives and policies

The companies'' financial liabilities, other than derivatives, comprise borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the company operations. The company financial assets include trade and other receivables, cash and cash equivalents, investments and deposits.

The management ensures that risks are identified, measured and managed in accordance with Risk Management Policy . The Board of Directors also review these risks and related risk management policy.

The market risks, liquidity risks and credit risk s are further explained 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 investments, trade payables, etc. b 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 group companies'' exposure to the risk of changes in market interest rates relates primarily to the debt obligations. The group manages its interest rate risk by having a balanced portfolio of borrowings and equity.

_c Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The group’s exposure to this risk is not there as there are no foreign currecy transactions undertaken.

d Equity price risks

The company invests only inrelated companies which is a part of long term business planning and in strategic in nature. There is no other investment and hence there are no equity price risks exposure to the company. e Credit risks

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).

^b As Lessee:

At inception of contract, company assesses whether the contract contains lease or not, ie it contains the right to control the use of any specific asset for a specific period of time in exchange of consideration.

Company recognises Right to Use assets and Lease liabilities at the inception of lease agreement. The right of use (ROU) is measured at cost which comprises of the initial amount of lease liability adjusted for any lease paymentsmade at or after commencement date. The Right of use is subsequently amortised at straight line basis over the term of the lease.

Lease liability is initially measured at the present value of the lease payments that are not paid at commencement date, discounted using the company''s incremental borrowing rate.

49 The outstanding balance at the year end in respect of Sundry Creditors, Loans and Advances, Deposits and certain Bank Accounts are subject to confirmation / reconciliation from the respective parties and the same have been reckoned in these accounts as per the balances appearing in the books. Any further adjustments arising out of reconciliation will be accounted for as and when such reconciliation is completed. The group however does not expect any material effect in a particular year or in future years.

50 The title deeds of all immovable properties are held in the name of the company itself. Further,the the company has not carried out revaluation of items of Property, Plant & Equipment during the year and accordingly the disclosure as to whether the revaluation is based on the valuation by a registered valuer is not applicable.

51 No proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

52 The standalone financial Statements are presented in million and hence the totals in this report may appear to be different from apparent total, but such anomaly is merely due to presentation of figures in million. However figures (in rupees) is tallied with books of accounts.

53 The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

54 The Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate, from banks or financial institutions on the basis of the security of current assets at any point of time during the year. The quarterly returns/statements filed by the Company with such banks and financial institutions are in agreement with the books of account of the Company.

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

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

57 Company was not required to comply with any Compliance with Scheme(s) of Arrangements.

58 The Company has not advanced or loaned or invested funds to any other person or entity, including foreign entities with the understanding that the Intermediary shall:

1) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company or

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

59 There has been no default in Repayment of any borrowings by the Company.

60 The Company has not been declared as wilful defaulter by any bank or financial institutions or other lenders.

61 The Company has not received any fund from any person or entity, including foreign entities with the understanding that the Company shall:

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

(2) provide any guarantee, security or the like provided to or on behalf of the Ultimate beneficiaries.

62 The Company have not traded or invested in Crypto currency or Virtual Currency during the year covered under this report.

63 The Company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956

64 The comparative figures have been regrouped / reclassified wherever necessary, to make them comparable.

65 Additional regulatory information/disclosures as required by general instructions to Division-II of Schedule III to the Companies Act, 2013 are furnished to the extent applicable to the Group Companies

66 The financial statements for the Financial year ended March 31,2024 were approved for issue by the Board of Directors on July 18, 2024.

For Amitabh Agrawal & Co. For and on behalf of the Board of Directors of

Chartered Accountants VRAJ IRON AND STEEL LIMITED

FRN : 006620C CIN : U27101CT2004PLC016701

Vijay Anand Jhanwar Prasant Kumar Mohta

Amar Sinha Managing Director Whole Time Director

Partner DIN : 00826103 DIN : 06668452

M No.: 451734

Priya Namdeo Shriram Verma

Place : Raipur Company Secretary Chief Financial Officer

Date : July 18, 2024 M NO: A50205 PAN : ADIPV4463B