Note No: 1 Corporate Informations

ASHIRWAD STEELS & INDUSTRIES LIMITED (“the Company”) (CIN:
L67100WB1986PLC040201) is a public limited company incorporated and domiciled in India.
The registered office of the Company is situated at 6, Waterloo Street, 5th Floor, Room No.
506, Kolkata- 700 069, West Bengal, India. The Company’s shares are listed on the BSE Ltd.,
(Bombay Stock Exchange).

As reported in Director's Report for the previous financial year 2023-2024; the company's
main business for a very long time had been to manufacture and produce sponge iron at its
own plants located at Jamshedpur and at Nalgonda (Telengana). However, pursuant to sale of
said plants by the Company during the financial year 2021-2022 and FY 2018-19
respectively; the company is now completely out of the business of Sponge Iron. Besides
above; the company had two LPG bottling plants located at Uluberia Industrial Growth
Centre, Howrah, West Bengal and the second one at Raigarh in the state of Chattisgarh. The
former was also sold out during the financial year 2022-23. The second bottling plant at
Raigarh is lying inoperative for last several years as being economically unviable. Thus, the
company was left with no trading or industrial business and the board of directors in their
wisdom and in the interest of the company adopted the new business of Investments and
lending (besides others) by adopting the new memorandum of association of the company and
with the approval and consent of the same by shareholders through postal ballot process.
However the company's boards of directors are continuously trying to identify and develop
some new economically viable trading or industrial business for the company. The Company
during the Financial year 2023-2024 has carried out the business of lending of funds and
investments in shares and securities and it continues to carried the business of lending of
funds and investments in shares and securities during Financial year ended March 31, 2025.
The Management and the Board of Directors have assessed the impact of such events and
transactions including its new business of lending and investments and firmly believes the
Company's ability to continue as a going concern

The financial statements for the year ended 31st March, 2025 were approved for issue by the
Board of Directors of the Company in their meeting held on May 07, 2025 and is subject to
the adoption and approval by the shareholders in the ensuing 39th Annual General Meeting.

Note No.: 2 Summary of basis of compliance, basis of preparation and presentation,
Critical accounting estimates, assumptions and judgments and significant accounting
policies

2.1 Basis of compliance

The financial statements comply, in all material aspects, with Indian Accounting Standards
('Ind AS') notified under Section 133 of the Companies Act, 2013 (“Act”) read with Rule 3 of
the Companies (Indian Accounting Standards) Rules, 2015 (as amended) and other relevant
provisions of the Act to the extent applicable and applicable guidelines issued by the
Securities and Exchange Board of India ('SEBI').

2.2 Basis of preparation and presentation

These financial statements have been prepared in accordance with Ind AS on the historical
cost basis except for Certain financial instruments which are measured at fair value at the
end of each reporting period. Historical cost is generally based on the fair value of the
consideration in exchange for goods and services. 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. All assets and liabilities have been classified
as current or non-current as per the Company’s normal operating cycle and other criteria set
out in Schedule III to the Companies Act, 2013. The Company has ascertained its operating
cycle as 12 months for the purpose of current and non-current classification of assets and
liabilities. The financial statements including notes thereon are presented in Indian Rupees
(“Rupees”or “Rs.”), which is the Company’s functional and presentation currency. All
amounts disclosed in the financial statements including notes thereon have been rounded off
to the nearest lacs and thousands as per the requirement of Schedule III to the Act, unless
stated otherwise.

2.3 Critical accounting estimates, assumptions and judgements

The preparation of the financial statements requires management to make estimates,
assumptions and judgments that effect the reported balances of assets and liabilities and
disclosures as at the date of the financial statements and the reported amounts of income
and expenses for the periods presented. The estimates and associated assumptions are
based on historical experience and other factors that are considered to be relevant. Actual
results may differ from these estimates considering different assumptions and conditions.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimates are revised and
future periods are affected. The estimates and assumptions that have a significant risk of
causing a material adjustment to the carrying values of assets and liabilities within the next
financial year are discussed below: -

2.3.1 Deferred income tax assets and liabilities

Significant management judgment is required to determine the amount of deferred tax assets
that can be recognised, based upon the likely timing and the level of future taxable profits.
The amount of total deferred tax assets and liabilities could change if management estimates
of projected future taxable income or if tax regulations undergo a change.

2.3.2 Useful lives of property, plant and equipment ('PPE')

PPE represent a significant proportion of the asset base of the Company. The charge in
respect of periodic depreciation is derived after determining an estimate of an asset’s
expected useful life and the expected residual value at the end of its life. The useful lives and
residual value of the asset are determined by the management when the asset is acquired
and reviewed periodically including at each financial year end. The lives are based on
historical experience with similar assets as well as anticipation of future events, which may
impact their lives, such as change in technology.

2.3.3 Estimated fair value of unlisted securities

The fair values of financial instruments that are not traded in an active market and cannot
be measured based on quoted prices Management uses its judgement to select a variety of
method / methods and make assumptions that are mainly based on market conditions
existing at the end of each financial year. The inputs to these models are taken from
observable markets where possible, but where this is not feasible, a degree of judgement is
required in establishing fair values. Judgements include considerations of inputs such as
liquidity risk, credit risk and volatility. Changes in assumptions about these factors could
effect the reported fair value of financial instruments.