05.01. Denomination

All the figures are rounded off to nearest Lakh (Indian Rupees)

05.02. Re-Grouping of Amounts

Previous year's figures have been regrouped, wherever necessary, to confirm to current year classification/ grouping.

05.03. Contingent Liabilities & Commitments

05.03.01. Claims against the company not acknowledged as debt (Amount in Rs. Lakh)

05.03.02. The Company makes the assessment of likely outcome, based on the views of internal legal counsel and in consultation with external legal counsel representing the Company. The management is of the view that the outcome the aforesaid case shall be in favour of the company. Based on the above, the management of the view that no provision is required in the books of accounts, at this stage.

05.04. Realization of the amount due to the Company

In the opinion of the management the current assets and Loans and Advances will be recovered in full, in the normal course of business.

05.05. Disclosure of amount due to MSME

05.05.01. Our company has no dealings with MSME organizations (as per Micro, Small and Medium Enterprises Development Act, 2006); and hence we have not filed MSME returns with MCA.

05.05.02. As a matter of caution, we have written to all suppliers to confirm if they would come under the classification of MSME. None of them have confirmed the same and hence we can conclude that the trade payable is not to MSME’s.

05.05.03. Accordingly, disclosure of details of amount due to in respect of Micro, Small and Medium Enterprises, vide Notification dated 11th October, 2018, issued by Ministry of Corporate Affairs, are not applicable to the Company for the year under report.

05.06. Group Gratuity Fund

The Retirement Benefit Funds towards gratuity are administered by LIC under Group Gratuity Scheme.

Notes No. 5.00, relating to other information, forming an integral part thereof

05.07. Related Party Disclosure, as per Ind AS-24

The related parties’ details are disclosed as follows:

05.08. Money due to statutory Authorities (Penalty and Interest)

Non-payment or delayed payment of statutory due (Relating to earlier years) has attracted interest and penalty. The amount of interest / late fees, has been arrived by the Management of the Company, based on the information available with them. The amount outstanding as at 31-03-2024 was Rs. Nil (Previous year Rs. 51.89 Lakh), has been provided in the books of account. The amount charged may be different from the amount, which may be demanded subsequently by the authorities concerned.

05.09. Investor Education & Protection Fund

05.09.01. Whenever the company declares dividend [or acceptance, including renewal, of Public Deposits or other nature covered thereof), it transfers the amount equivalent to an earmarked account, meant for the same, by opening an account with a bank. An unpaid amount, if any, lying in the aforesaid amount shall be transferred to Investor Education & Protection Fund, by taking Demand Draft, from the Bank.

05.09.02. In compliance of the above, the matured but unclaimed Public Deposits, relating to earlier Financial Year, amounting to Rs.3.81 Lakh, has been transferred to Investor Education & Protection Fund, during the year under report. No amount of public deposit is with the company as on the date.

05.10. Segment Reporting

The Company has two business segment (1) Manufacture and sale of steel forgings; (2) Land and Development described as "Other Operating Income" (Amount in Rs. Lakh)

The Company is engaged in the business of manufacturing of Auto Ancillary part (Manufacture and sale of steel forgings). It is one of the reportable segments, as per IND AS 108, Operating Segments. As the exports are mainly to Developed Countries, geographical risk is not different from domestic market and hence no separate secondary segment disclosure is required, in respect of the aforesaid reportable segments.

05.11. Redemption of Preference shares

(01) The company had issued 12,11,123 Number of 6% Preference Shares (Optionally convertible cumulative Redeemable preference shares-OCCRPS) of Rs 100/= each aggregating to Rs 12,11,12,300/= as a part of the Corporate Debt Restructure scheme approved by the lender banks in 2011. As per the Terms & Conditions of the issue the redemption was to be made in 3 equal instalments ending 31/3/2016, 31/3/2017 and 31/3/2018. During 2016 the company had started negotiations for one time settlement with the Bankers for settlement of all amounts including the OCCRPS. This process continued beyond 2018 and finally the company obtained no due letters from all lenders and hence the redemption was stretched beyond 2018. Later the company explored the possibility of redemption as no amount was payable on redemption. Based on legal opinion the company created the Capital Redemption Reserve by transfer of the preference share amount to Reserve as there was no repayment obligation on the preference shares. The same shall be treated at par with capital, as per the provisions of the Companies Act, 2013.

(02) The notes to the earlier years Financial Statements contain the details regarding the Preference Shares.

(03) The statutory auditor has relied upon the legal opinion, in this regard.

05.13.02. Financial risk management

The Company has exposure to the following risks from its use of financial instruments, namely Credit risk and Market risk

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The Board of Directors has established a risk management policy to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Audit Committee oversees how management monitors compliance with the Company’s risk management policies and procedures and reviews the risk management framework. The Audit Committee is assisted the Finance Department Finance Department undertakes reviews of risk management controls and procedures, the results of which are reported to the Audit Committee.

(01) Credit risk:

(a) Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company’s trade receivables, treasury operations and other activities that are in the nature of leases."

(b) Exposure to credit risk

The gross carrying amount of financial assets, net of any impairment losses recognized represents the maximum credit exposure. The maximum exposure to credit risk as at 31-03-2024 and 31-03-2023 was as follows:( Amount Rs. In lakhs)

(c) Financial assets that are past due but not impaired

There is no other class of financial assets that is past due but not impaired other than trade receivables. The age analysis of trade receivables has been considered from the date of invoice. The ageing of trade receivables, net of allowances that are past due, is given below: (Amount Rs. In lakhs)

(d) Financial assets that are neither past due nor impaired

Cash and cash equivalents, other assets and other receivables are neither past due nor impaired. The total trade receivables that are not past due as at 31-03-2024 amounts to ? 544.23 Lakh (31-03-2023: ? 378.32 Lakh) and impairment has not been recorded on the same.

The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding the impact of netting agreements:

(02) Market risk:

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to foreign exchange rate risk (currency risk), interest rate risk and the market value of its investments. Thus, the Company’s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

05.13.03. Capital management

The Company's capital comprises equity share capital, share premium, retained earnings and other equity attributable to equity holders. The primary objective of Company's capital management is to maximise shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The Company does so by adjusting dividend paid to shareholders. The total capital as on 31-03-2024 is ? 2247.97 Lakh (Previous Year: ? -6080.44 Lakh)

The Company monitors capital using gearing ratio, which is net debt divided by total capital plus net debt. Net debt comprises of long term and short-term borrowings less cash and bank balances. Equity includes equity share capital and reserves that are managed as capital. The gearing at the end of the reporting period was as follows: (Amount Rs. In lakhs)

No changes were made in the objectives, policies or processes for managing capital of the Company during the current and previous year.

05.14. Contribution towards Corporate Social Responsibility

Our company does not fall under the criteria laid for Corporate Social Responsibility under section 135 of the Companies Act, 2013 and hence the section is not applicable to the Company for the year under audit report.

05.15. Extraordinary item

During the Financial Year, 2018-19 the company had entered into a Memorandum of Understanding (MOU) with a Domestic Company (Buyer), for Slump Sale of Apuur Unit of the Company, near Chennai. As per the terms of the MOU, the total consideration for the aforesaid the slump sale has been fixed, mutually, for an amount of Rs.9500.00 lakhs (Rupees Nine Thousand and Five Hundred Lakhs only) and such consideration should be fully paid or settled on or before 30th April,2018.

The Buyer has not honoured, in full, their commitment till 30th April, 2018, by paying the aforesaid consideration agreed upon between the Company and the Buyer. Hence, the Company has given further time, without prejudice to the company’s interest, till October, 2019. Despite an extended time of nearly One and Half year, the Buyer has paid or settled to the Company an amount to the extent of Rs. 7,056.02 Lakh (Rupees Seven Thousand Fifty Six point Zero Two Lakh only). The full consideration has not been received by the Company, despite the company’s efforts to receive the full consideration.

Considering the failure of the Buyer to honour their commitment, the Board had dropped the Slump sale and intimated the same to the buyer and BSE Ltd. There has been no response from the Buyer in respect of the aforesaid communication.

As there had been no developments in the matter, the company has analysed the legal implications and based on the legal opinion which clearly stated that there is has been no subsisting obligation under the MOU to return the amounts to the Buyer and it is would not be necessary to reflect these amounts as liabilities in the books of account of the Company. Hence the amount of Rs.7056.02 Lakhs (Rupees Seven Thousand Fifty Six point Zero Two Lakh only) was written back as this would be in the best interest of all stakeholders.

While taking the aforesaid action, the Board has noted that the matter might be subject to the adjudication of any legal claims in future by the Buyer. In that eventuality, the Company may make a counter claim or a fresh negotiation.

The notes to the earlier years Financial Statements contain the details regarding the Slump Sales

The statutory auditor has relied upon the legal opinion, in this regard.

05.16. Deferral tax

The company has no need to pay any tax under normal provision or under MAT (minimum Alternate Tax). Major part of the Income is due to exceptional Items. In view of the above, the company has not considered the deferral tax. The company shall consider the Deferral tax in the coming financial years, considering the operating results.

05.17. Corporate Social Responsibility

Since the business income for the financial year 2023-24 (excluding the Exceptional Items) has been less than Rs. 500.00 Lakhs, the company is of the view that Corporate Social Responsibility is not applicable, in respect of the profit for the year 2023-24.

05.18. Non-Disclosure of the details under Employees Benefits, Ind AS-19

(01) The Company has opened a Gratuity Scheme with Life Insurance Corporation of India (LIC), for settling any amount due on account of Gratuity. Under the aforesaid Scheme, the company has to contribute annual premium, based on the amount arrived by LIC. The Company has made the payment of all the outstanding (as at 31-03-2024) Gratuity Premium to Life Insurance Corporation of India (LIC), during the current year.

(02) Due to aforesaid fact, the estimated return from the fund or scheme may not be ascertained or determined in respect of the previous year. Accordingly, no disclosure has been made, in terms of Ind AS-19. The Company is taking sincere steps of adopting Ind AS-19, any implications arising there from including the valuation of future liability on actual basis and determination of plan assets will be done during the next year.

05.19. Re-Paying of liabilities Written off previously

During the earlier year, an amount of Rs. 517.19 Lakh payable to a creditor, has been written off and shown as income, since the same was not required to be payable. However, during the current year, the aforesaid creditor, demanded the payment and agreed to settle the same for an amount of Rs.200.00 Lakh, which is required to be paid on monthly installment with effect from November 2022. Accordingly, an amount of Rs.50.00 Lakhs has been charged in Statement of Profit & Loss, during the year, in respect of the period from Nov., 2022 to March, 2023.

05.20. Code on Social Security, 2020

The Code on Social Security, 2020 relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact of the Code and the associated rules when it comes into effect and will record any related impact in the period the Code becomes effective.

05.21. Security offered

05.21.01. The secured Loan, shown as liability in the Notes on Financial Statement under the grouping “Other Long-Term Liabilities”, amounting to Rs.468.98 Lakh (previous year Rs. 468.93 Lakh), is secured by first charges on Plant and Machineries of the Company.

05.21.02. The company has created charges against the assets and filed the relevant forms with MCA/ ROC

Notes No. 5.00, relating to other information, forming an integral part thereof

05.22. Additional Regulatory information/ details, as per the Companies Act 2013

05.22.01. Following Additional Regulatory Information, relating to disclosure in the Balance sheet

(01) Title deeds of Immovable Property not held in name of the Company The Title Deed of the company is held in the name of the Company.

(02) Revaluation of the Property

During the Financial Year under report, the Company has not revalued its Property, Plant and Equipment. Disclosure relating to “whether the revaluation is based on the valuation by a registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017” is not applicable.

(03) Loans or Advances to Promoters

During the year, the company has not made (or granted) any Loans or Advances in the nature of loans to promoters, Directors, Key Managerial Personnel (KMP) and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person. Accordingly, no disclosure has been made.

(04) Intangible assets under development: Nil (Disclosure not applicable)

(05) Benami Property

The Company, for the current year as well as previous year, does not have any Benami property and 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 there under. Accordingly, the company has not made any disclosure in the above regard.

(06) Willful defaulter

The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India

(07) Relationship with Struck off Companies

The Company has not made, or entered into, any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956. No disclosure is required under this paragraph.

(08) Registration of charges or satisfaction with Registrar of Companies (ROC) : Not Applicable

(09) Compliance with number of layers of companies

The Company has not made any investments in any other company or body corporate. Hence, the compliance of the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on number of Layers) Rules, 2017 for the financial years ended March 31, 2022 and March 31,2021 is not applicable to the company for the year under report.

Notes No. 5.00, relating to other information, forming an integral part thereof

(10) Compliance with approved Scheme(s) of Arrangements

During the financial year, neither the Company nor its Board of Directors has entered into any Arrangement or Agreement either to amalgamate or acquire any company. Accordingly, compliance with approved Scheme(s) of Arrangements does not applicable to the Company for the year under report

(11) Utilization of Borrowed funds and share premium

(a) The Company, for the current year as well as previous year, has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

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

(b) The Company, for the current year as well as previous year, has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall

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

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

(12) Borrowings from banks against Current Assets of the company

No disclosure required under this item is applicable to company, since no borrowings have been availed based on security of current assets of the Company.

(13) Borrowings against Current Assets of same group companies/ entities

No disclosure required under this item is applicable to company, since no borrowings have been availed based on security of current assets of other entities (The Company does not have any company as a group company) within the same Group

05.22.02. Additional regulatory information, relating to Statement of Profit and Loss (Not Applicable items, only)

(01) Transaction not recorded in the books:

The Company has not surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961), relating to any transaction not recorded in the books of accounts. Accordingly, no disclosure is required to be given by the Company, in the above regard.

Notes No. 5.00, relating to other information, forming an integral part thereof

(02) Corporate Social Responsibility (CSR)

During the financial year the Company has not covered under section 135 of the Companies Act, 2013. Accordingly, no disclosure is required to be given by the Company, in the above regard.

(03) Investment Crypto Currency

The Company, for the current year as well as previous year, has not traded or invested in Crypto currency or Virtual Currency. Accordingly, no disclosure is required to be given by the Company, in the above regard.

05.22.03. Explanation to Accounting Ratios

(01) Numerator and Denominator

Whenever two numbers are to be divided and the dividing symbol (Y) is used; the numerical value left hand side of the symbol is numerator and the numerical value right hand side of the symbol is denominator; if slash (/) is used the numerical value left hand side of the symbol is numerator and the numerical value right hand side of the symbol is denominator; or if horizontal line (—) is used the numerical value above the line is numerator and the numerical value below the line is the denominator.

(02) Quotient

A quotient is the result obtained, while dividing divide one number (i.e., numerator) by another number (Denominator).

(03) Percentage (or Per Cent)

The word per cent means per 100. It is represented by the symbol “%”; percentage is obtained by multiplying the quotient by 100 (One Hundred)

(04) Change in Ratio in % (Based CY as basis)

The above implies difference is arrived taking CY figure (Quient or percentage) reducing the FY Figure; aforesaid difference is divided by CY figure and multipied by 100, to arrive the percenrage

(05) All the above is relevant, wherever Ratio and its formula are referred;

(06) Earning for available for debt service is the sum of the followings

(a) Net Profit after taxes

(b) Non-cash operating expenses like depreciation and other amortizations

(c) Interest

(d) Other adjustments like loss on sale of Fixed assets etc.

(07) Debt service = Interest & Lease Payments Principal Repayments

(08) Average inventory = (Opening inventory balance Closing inventory balance) / 2

(09) Net credit sales = Net credit sales consist of gross credit sales minus sales return

(10) Average trade receivables = (Opening trade receivables balance Closing trade receivables balance) / 2

(11) Net credit purchases = Net credit purchases consist of gross credit purchases minus purchase return

(12) Average trade payables = (Opening trade payables balance Closing trade payables balance) / 2

(13) Working capital = Current assets - Current liabilities.

(14) Earnings before interest and taxes = Profit before exceptional items and tax Finance costs - Other Income

(15) Capital Employed = Tangible Net Worth Total Debt Deferred Tax Liability

(16) Return on Investment: various contains of the formula are as follows:

(i) T1 = End of time period

(ii) T0 = Beginning of time period

(iii) t = Specific date falling between T1 and T0

(iv) MV(T1) = Market Value at T1

(v) MV(T0) = Market Value at T0

(vi) C(t) = Cash inflow, cash outflow on specific date

(vii) W(t) = Weight of the net cash flow (i.e. either net inflow or net outflow) on day ‘t’, calculated as [T1 - t] / T1

05.22.04. Accounting Ratios

Accounting Ratios are given in the separate Note Number 06, enclosed herewith Signatories to all Notes on Financial Statements (Standalone)