Notes to Accounts of Alicon Castalloy Ltd.

Mar 31, 2025

q) Provisions and contingencies

A provision is 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.

When the company expects some or all of a
provision to be reimbursed, the reimbursement
is recognised as a separate asset, but only when
the reimbursement is virtually certain. The
expense relating to a provision is presented
in the statement of profit and loss net of any
reimbursement.

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
in the statement of profit and loss.

A contingent liability is a possible obligation that
arises from past events whose existence will be
confirmed by the occurrence or non-occurrence
of one or more uncertain future events beyond
the control of the Company or a present
obligation that is not recognized because it is
not probable that an outflow of resources will
be required to settle the obligation. A contingent
liability also arises where there is a liability
that cannot be recognized because it cannot
be measured reliably. The Company does not
recognize a contingent liability but discloses its
existence in the financial statements.

Contingent assets are not recognised in financial
statements, unless they are virtually certain.

However, contingent assets are disclosed where
inflow of economic benefits are probable.

Provisions, contingent liabilities and contingent
assets are reviewed at each balance sheet date.

r) Fair value measurement

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

• I n the absence of a principal market, in the
most advantageous market for the asset or
liability

The company uses valuation techniques that are
appropriate in the circumstances and for which
sufficient data are available to measure fair
value, maximising the use of relevant observable
inputs and minimising the use of unobservable
inputs.

• Level 1 — Quoted (unadjusted) market
prices in active markets for identical assets
or liabilities

• Level 2 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable

• Level 3 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is unobservable

For assets and liabilities that are recognised in
the financial statements on a recurring basis,
the company determines whether transfers have
occurred between levels in the hierarchy by re¬
assessing categorisation (based on the lowest
level input that is significant to the fair value
measurement as a whole) at the end of each
reporting period.

For the purpose of fair value disclosures, the
company has determined classes of assets and
liabilities based on the nature, characteristics
and risks of the asset or liability and the level of
the fair value hierarchy.

s) Investment in subsidiaries

The Company has elected to recognize its
investments in subsidiaries at cost in accordance
with the option available in Ind AS 27, ''Separate
Financial Statements.

t) Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity.

Initial recognition and measurement

Financial instruments are initially recognised
when the entity becomes party to the contract.

Financial instruments are measured initially
at fair value adjusted for transaction costs that
are directly attributable to the origination of the
financial instrument where financial instruments
not classified at fair value through profit or loss.
Transaction costs of financial instruments which
are classified as fair value through profit or loss
are expensed in the statement of profit and loss.
However, trade receivables that do not contain
a significant financing component are measured
at transaction price.

Subsequent measurement of financial assets

For the purposes of subsequent measurement,
the financial assets are classified in the following
categories based on the company''s business
model for managing the financial assets and the
contractual terms of cash flows:

• those to be measured subsequently at fair
value; either through OCI or through profit
or loss

• those measured at amortised cost

For assets measured at fair value, changes in fair
value will either be recorded in the statement
of profit and loss or OCI. For investments
in debt instruments, this will depend on the
business model in which investment is held.
For investments in equity instruments, this will
depend on whether the company has made
an irrevocable election at the time of initial
recognition to account for equity investment at
fair value through OCI.

The company reclassifies debt investments when
and only when its business model for managing
those assets changes.

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised
cost if both the following conditions are satisfied:

• The asset is held within a business model
whose objective is to hold assets for
collecting contractual cash flows, and

• The contractual terms of the asset give rise
on specified dates to cash flows that are
solely payments of principal and interest
(SPPI) on the principal amount outstanding.

A gain or loss on a debt investment that is
subsequently measured at amortised cost and is
not part of hedging relationship is recognised in
the statement of profit and loss when the asset
is derecognised or impaired. Interest income
from these financial assets is included in finance
income using effective interest rate (EIR) method.

Debt instruments at fair value through other
comprehensive income (FVTOCI)

Assets that are held for collection of contractual
cash flows and for selling the financial assets,
where the assets'' cash flows represent SPPI,
are measured at FVTOCI. The movements in
the carrying amount are recognised through
OCI, except for the recognition of impairment
gains and losses, interest revenue and foreign
exchange gain or losses which are recognised
in the statement of profit and loss. When the
financial asset is derecognised, the cumulative
gain or loss previously recognised in OCI is
reclassified from equity to the statement of profit
and loss and recognised in other gains/ losses.
Interest income from these financial assets is
included in other income using EIR method.

Debt instruments at fair value through profit or
loss (FVTPL)

Assets that do not meet the criteria for amortised
cost or FVTOCI are measured at FVTPL. A gain
or loss on debt instrument that is subsequently
measured at FVTPL and is not a part of hedging
relationship is recognised in the statement
of profit and loss within other gains/ losses in
the period in which it arises. Interest income

from these financial assets is included in other
income.

Equity investments

All equity investments in the scope of Ind AS
109 Financial Instruments are measured at fair
value. Equity instruments which are held for
trading are classified as at FVTPL. For all other
equity instruments, the company may make an
irrevocable election to recognise subsequent
changes in the fair value in OCI. The company
makes such election on an instrument-by¬
instrument basis. The classification is made on
initial recognition and is irrevocable.

If the company decides to classify an equity
instrument as at FVTOCI, then all fair value
changes on the instrument, excluding dividends,
are recognized in OCI. There is no recycling of
the amounts from OCI to the statement of profit
and loss, even on sale of equity instrument.

Equity instruments included within the FVTPL
category are measured at fair value with all
changes recognised in the statement of profit
and loss.

Subsequent measurement of financial liabilities

For the purposes of subsequent measurement,
the financial liabilities are classified in the
following categories:

• those to be measured subsequently at fair
value through profit or loss (FVTPL)

• those measured at amortised cost

Following financial liabilities will be classified
under FVTPL:

• Financial liabilities held for trading

• Derivative financial liabilities

• Liability designated to be measured under
FVTPL

All other financial liabilities are classified at
amortised cost.

For financial liabilities measured at fair value,
changes in fair value will recorded in the
statement of profit and loss except for the fair

value changes on account of own credit risk are
recognised in Other Comprehensive Income
(OCI).

Interest expense on financial liabilities classified
under amortised cost category are measured
using effective interest rate (EIR) method and are
recognised in statement of profit or loss.

Derecognition of financial instruments

The company derecognises a financial asset
when the contractual rights to the cash flows
from the financial asset expire, or it transfers the
rights to receive the contractual cash flows in a
transaction in which substantially all of the risks
and rewards of ownership of the financial asset
are transferred or in which the company neither
transfers nor retain substantially all of the risks
and rewards of ownership and it does not retain
control of the financial asset.

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or modification
is treated as the derecognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognised in the statement of profit and loss.

Impairment of financial assets

The company applies Expected Credit Loss
(ECL) model for measurement and recognition
of impairment loss on the financial assets
mentioned below:

• Financial assets that are debt instrument
and are measured at amortised cost

• Financial assets that are debt instruments
and are measured as at FVOCI

• Trade receivables

The impairment methodology applied depends
on whether there has been a significant increase in
credit risk. Details how the company determines
whether there has been a significant increase in
credit risk is explained in the respective notes.

For impairment of trade receivables, the
company chooses to apply practical expedient of
providing expected credit loss based on provision
matrix and does not require the Company to
track changes in credit risk. Percentage of ECL
under provision matrix is determined based on
historical data as well as futuristic information.

Derivative financial instruments

Initial measurement and subsequent

measurement

The company uses derivative financial
instruments, such as forward currency contracts
to hedge foreign currency risks. Such derivative
financial instruments are initially recognised
at fair value on the date on which a derivative
contract is entered into and are subsequently re¬
measured at fair value. Derivatives are carried as
financial assets when the fair value is positive
and as financial liabilities when the fair value
is negative. Any gains or losses arising from
changes in the fair value of derivatives are
recognised in the statement of profit or loss.

u) Cash dividend

The company recognises a liability to make
cash distributions to equity holders when the
distribution is authorised and approved by
the shareholders. A corresponding amount is
recognised directly in equity.

v) Earnings per share (EPS)

Basic EPS is calculated by dividing the profit
for the year attributable to equity holders of the
company by the weighted average number of
equity shares outstanding during the financial
year, adjusted for bonus elements in equity
shares issued during the year and excluding
treasury shares.

Diluted EPS adjust the figures used in the
determination of basic EPS to consider

• The after-income tax effect of interest
and other financing costs associated with
dilutive potential equity shares, and

• The weighted average number of additional
equity shares that would have been

outstanding assuming the conversion of all
dilutive potential equity shares.

w) Operating segments

Operating segments are reported in a manner
consistent with the internal reporting provided
to the Chief Operating Decision Maker (CODM)
of the Company. The CODM is responsible for
allocating resources and assessing performance
of the operating segments of the Company.

x) Use of accounting judgments, estimates and
assumptions

The preparation of the financial statements
in conformity with Ind AS, requires the
management to make judgments, estimates
and assumptions that affect the amounts of
revenue, expenses, current assets, non-current
assets, current liabilities, non-current liabilities,
disclosure of the contingent liabilities and notes
to accounts at the end of each reporting period.
Actuals may differ from these estimates.

Judgements

In the process of applying the Company''s
accounting policies, management have made
the following judgements, which have the most
significant effect on the amounts recognised in
the financial statements:

Operating segment

Ind AS 108 Operating Segments requires
Management to determine the reportable
segments for the purpose of disclosure in
financial statements based on the internal
reporting reviewed by Chief Operating Decision
Maker (CODM) to assess performance and
allocate resources. The standard also requires
Management to make judgments with respect to
aggregation of certain operating segments into
one or more reportable segment.

The Company has determined that the Chief
Operating Decision Maker (CODM) is the Board
of Directors (BoD). Operating segments used
to present segment information are identified
based on the internal reports used and reviewed
by the BoD to assess performance and allocate
resources.

Contingent liability

The Company has received various orders and
notices from tax authorities in respect of direct
taxes and indirect taxes. The outcome of these
matters may have a material effect on the
financial position, results of operations or cash
flows. Management regularly analyses current
information about these matters and discloses
the information of related contingent liability.
In making the decision regarding the need for
creating loss provision, management considers
the degree of probability of an unfavourable
outcome and the ability to make a sufficiently
reliable estimate of the amount of loss. The filing
of a suit or formal assertion of a claim against
the Company or the disclosure of any such suit
or assertions, does not automatically indicate
that a provision of a loss may be appropriate.

Estimates and assumptions.

The key assumptions concerning the future and
other key sources of estimation uncertainty at
the reporting date, that have a significant risk
of causing a material adjustment to the carrying
amounts of assets and liabilities within the
next financial year, are described below. The
Company based its estimates and assumptions
on parameters available when the financial
statements are prepared. Existing circumstances
and assumptions about future developments,
however, may change due to market conditions
or circumstances arising that are beyond the
control of the Company. Such changes are
reflected in the assumptions when they occur.

Defined benefit obligation

The cost of the defined benefit plans and other
post-employment benefits and the present
value of the obligations are determined using
actuarial valuation. An actuarial valuation
involves making various assumptions that may
differ from actual developments in the future.
These include the determination of the discount

rate, future salary increases, mortality rates and
future post-retirement medical benefit increase.
Due to the complexities involved in the valuation
and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at
each reporting date.

The parameter most subject to change is the
discount rate. In determining the appropriate
discount rate, management considers
the interest rates of government bonds in
currencies consistent with the currencies of
the post-employment benefit obligations and
extrapolated as needed along the yield curve
to correspond with the expected term of the
defined benefit obligation.

The mortality rate is based on publicly available
mortality tables. Those mortality tables tend
to change only at intervals in response to
demographic changes. Future salary increases
are based on the expected future inflation rates
for the country.

Further details about defined benefit obligations
are provided in the respective note prepared
elsewhere in the financial statements.

Deferred Tax

Deferred tax assets are recognised for all
deductible temporary differences including
the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are
recognised to the extent that it is probable that
taxable profit will be available against which the
deductible temporary differences, and the carry
forward of unused tax credits are unused tax
losses can be utilized.

Estimation and underlying assumptions are
reviewed on ongoing basis. Revisions to
estimates are recognised prospectively.

y) Recent accounting pronouncements
Newly adopted standards:

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.
For the year ended 31^st March, 2025, MCA has
notified Ind AS - 117 Insurance Contracts and
amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the
Group w.e.f. 01^st April, 2024. The Company has
reviewed the new pronouncements and based
on its evaluation has determined that it does
not have any significant impact in its financial
statements.

Standard issued but not effective:

On 07^th May, 2025, MCA has notified the
amendments to Ind AS 21 - Effects of Changes
in Foreign Exchange Rates. These amendments
aim to provide clearer guidance on assessing
currency exchangeability and estimating
exchange rates when currencies are not readily
exchangeable. The amendments are effective
for annual periods beginning on or after
01^st April, 2025. The Company is currently
assessing the probable impact of these
amendments on its financial statements.

(i) Long-term borrowings include secured term loans at floating interest rates from State Bank of India, Bank
of Maharashtra, Bajaj Finance Ltd and IDFC Bank Ltd, Kotak Mahindra Bank and HDFC Bank Ltd. which are
repayable through monthly / Quarterly instalments.

(ii) We have sanctioned a new Term loan facility of '' 5000 Lakhs from Bank of Maharashtra, 1 year Moratorium.
We have sanctioned a new Term loan facility of '' 5000 Lakhs from IDFC Bank, 1 year Moratorium The above-
mentioned term loan are towards our capex expenditure in FY 2025-26 and New Capex for a period of 6 years
including 1 year moratorium period.

Bajaj Finance Ltd New Term Loan - 3, has sanctioned '' 2000 Lakhs Term loan. The same is secured by first parri-
passu on charge by way of registered mortgage on the existing fixed assets except Land at Khed city.

(iii) Loans availed from State Bank of India, Bank of Maharashtra, Kotak Mahindra Bank , Bajaj Finance Ltd ,HDFC
Bank and IDFC Bank Ltd are secured by a first parri-passu charge by way of registered mortgage on the existing
fixed assets except Land at Khed city. Loan availed from Bajaj Finance Ltd. is secured by exclusive charge on
lease land at Khed city. Of these, '' 6499.91 Lakhs (PY '' 5817.80 Lakhs) are classified as current liabilities being
repayable before March 31,2025.

(iv) Emergency Credit Line Guarantee Scheme 2.0 (ECLGS)-2 was launched by Government to provide additional
liquidity to meet operational liabilities and support the business after unprecedented situation emerging out
of COVID - 19 .There was 100% Credit Guarantee from National Credit Guarantee Trustee Company Limited
(NCGTC) on the additional credit facility and secondary charge on existing primary and collateral securities of
the company with the bankers. Under this scheme we have availed a total loan of '' 6503 Lakhs in FY 2020-21
and disbursement completed by 2021-22 from Existing bank & financial institution which is payable in 5 years
period including 12 months moratorium and the current balance for the same is 3516 Lakhs.

(v) There is no default, continuing or otherwise in repayment of instalment, loan, balance outstanding as the case
may be and interest as on the balance sheet date.

(vi) Borrowings are measured at amortised cost.

(i) Short-term borrowings includes cash credit facilities availed from State Bank of India, Kotak Mahindra Bank ,
Bank of Maharashtra,HDFC Bank, IDFC Bank and Bajaj Finance Ltd. These borrowings are secured in favour of
all the aforementioned banks by a first parri-passu charge by way of hypothecation of all stocks and receivables
and a second parri-passu charge by joint deed of hypothecation on all fixed assets of the Company.

(ii) There is no default, continuing or otherwise in repayment of instalment, loan, balance outstanding as the case
may be and interest as on the balance sheet date.

(iii) Borrowings are measured at amortised cost.

Notes:

(i) Above trade payable include amount due to related parties of '' 986.05 lakhs and same has been disclosed in
note no. 44.

(ii) Trade payables are measured at amortised cost.

(iii) Above balances are subject to confirmation & reconciliation if any .

(iv) Dues to Micro and Small Enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development
Act, 2006 (''MSMED Act'').

The Company has sent MSME confirmation to all the supplier & below disclosed dues to suppliers registered under
Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED Act'') to the extent confirmation received
from supplier. The disclosure pursuant to the said MSMED Act are as follows.

Fair value of financial assets and financial liabilities measured at amortised cost :

The management believes that the fair values of non-current financial assets (e.g. loans and others), current financial
assets (e.g., cash and cash equivalents, trade receivables, loans and others excluding other derivative assets) and
current financial liabilities (e.g. trade payables and other payables excluding derivative liabilities) approximate their
carrying amounts.

The Company has not performed fair valuation of its investment in unquoted equity shares as mentioned in note no.
4 which are classified as FVTPL or FVTOCI, as the Company believes that impact of change on account of fair value
is insignificant.

34.3 Financial risk management

The Company''s activities exposes it to market risks, credit risks and liquidity risks. The Company''s management
have overall responsibility for the establishment and oversight of the Company''s risk management framework.
The Company''s risks are reviewed regularly to reflect changes in market conditions and the company''s activities.
Derivatives are used for hedging of foreign currency loan and not as a trading or speculative purposes.

The Company has exposure to the following risks arising from financial instruments :

a. Credit risk

Credit risk is the risk of financial losses to the Company if a customer or counterparty to financial instruments
fails to discharge its contractual obligations. It arises primarily from the Company''s receivables from customers.
To manage this, the Company periodically assesses the key accounts receivable balances. As per Ind-AS 109 :
Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain.

The carrying amount of trade and other receivables and other financial assets represents the maximum credit
exposure.

i. Trade receivables

The management has established accounts receivable policy under which customer accounts are regularly
monitored. The Company has a dedicated sales team which is responsible for collecting dues from the
customer within stipulated period. The management reviews status of critical accounts on a regular basis.

ii. Financial instruments and Cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury
department in accordance with Company''s policy. Company monitors rating, credit spreads and financial
strength of its counter parties. Based on ongoing assessment Company adjust it''s exposure to various
counterparties.

b. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to
managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when
they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Company''s reputation.

The Company has a view of maintaining liquidity and to take minimum possible risk for which company monitors
its cash and bank balances periodically in view of its short term obligations associated with its financial liabilities.

c. Market risk

Market risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because
of changes in market prices. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimizing the return. 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 borrowings, trade and other payables, foreign exchange forward contracts, security deposit,
trade and other receivables and deposits with banks.

i. Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate
because of changes in foreign exchange rate. Company transacts business in its functional currency (INR)
and in other foreign currencies. The Company''s exposure to the risk of changes in foreign exchange rates
relates primarily to the Company''s operating activities, where revenue or expense is denominated in a
foreign currency.The Company manages its foreign currency risk by hedging foreign currency denominated
loan using foreign currency forward contracts .The Company negotiates the terms of those foreign currency
forward contracts to match the terms of the hedged exposure.

39 OTHER STATUTORY INFORMATION
Details of Benami Property held

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

Details of Loans and advances

(i) The Company has not advanced to or loaned to or invested funds in any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that such Intermediary shall:

(a) 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

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

(ii) The Company 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries
Wilful Defaulter

The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance
Sheet.

Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

Registration of charges or satisfaction with Registrar of Companies (ROC)

The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory
period.

Stock statements

There is variance in Quarterly returns or statements of current assets filed by the Company with banks and the
books of accounts as company is following the terms & conditions as mentioned in sanction letter, further reason for
material variance are mentioned below:

46 STOCK OPTION PLANS

A. Employee Stock Option Plan- 2022

This Scheme shall be called the "Alicon Castalloy Limited - Employee Stock Option Scheme 2022 ("ESOS 2022" or
"Scheme").

The objective of the ESOS 2022 is to reward the Employees of the Company for their performance and to motivate
them to contribute to the growth and profitability of the Company. The Company also intends to use this Scheme
to retain talent in the organization. The Company views Employee Stock Options as instruments that would enable
the Employees to share the value they create for the Company and align individual objectives of employees with
objectives of the Company in the years to come.

The Shareholders by way of special resolution dated 27^th September, 2022 have authorized the Board of Directors to
grant not exceeding 3,00,000 (three Lakhs) Options to the Employees under ESOS - 2022, in one or more tranches,
exercisable into not more than 3,00,000 (three Lakhs only) Equity shares of face value '' 5/- (Rupees five only) each
fully paid up with each such Option conferring a right upon the employee to apply for one Share of the Company, in
accordance with the terms and conditions as may be decided under the ESOS 2022.

Vesting period and exercise period of the options granted under ESOS 2022 shall be as mentioned in the scheme.

The options not exercised within the exercise period shall lapse and the employee shall have no right over such
lapsed or cancelled options.

51 Figures have been regrouped wherever necessary to make them comparable.

As per our report of even date attached On behalf of the Board of Directors of Alicon Castalloy Ltd.

For Kirtane & Pandit LLP

Chartered Accountants

Firm Regn No: 105215W/W100057

Milind Limaye S. Rai Rajeev Sikand

Partner Managing Director Chief Executive Officer

Membership No. 105366 DIN : 00050950

Place: Pune Vimal Gupta

Date: 12^th May, 2025 Chief Financial Officer

---

Mar 31, 2024

q) Provisions and contingencies

A provision is 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.

When the company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pretax 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 in the statement of profit and loss.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognised in financial statements, unless they are virtually certain. However, contingent assets are disclosed where inflow of economic benefits are probable.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

r) Fair value measurement

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 company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the

financial statements on a recurring basis, the company

determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the company has determined classes of assets and liabilities based on the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

s) Investment in subsidiaries

The Company has elected to recognize its investments in subsidiaries at cost in accordance with the option available in Ind AS 27, ''Separate Financial Statements.

t) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Initial recognition and measurement

Financial instruments are initially recognised when the entity becomes party to the contract.

Financial instruments are measured initially at fair value adjusted for transaction costs that are directly attributable to the origination of the financial instrument where financial instruments not classified at fair value through profit or loss. Transaction costs of financial instruments which are classified as fair value through profit or loss are expensed in the statement of profit and loss. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Subsequent measurement of financial assets

For the purposes of subsequent measurement, the financial assets are classified in the following categories based on the company''s business model for managing the financial assets and the contractual terms of cash flows:

• those to be measured subsequently at fair value; either through OCI or through profit or loss

• those measured at amortised cost

For assets measured at fair value, changes in fair value will either be recorded in the statement of profit and loss or OCI. For investments in debt instruments, this will depend on the business model

in which investment is held. For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for equity investment at fair value through OCI.

The company reclassifies debt investments when and only when its business model for managing those assets changes.

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are satisfied:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• The contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of hedging relationship is recognised in the statement of profit and loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using effective interest rate (EIR) method.

Debt instruments at fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent SPPI, are measured at FVTOCI. The movements in the carrying amount are recognised through OCI, except for the recognition of impairment gains and losses, interest revenue and foreign exchange gain or losses which are recognised in the statement of profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to the statement of profit and loss and recognised in other gains/losses. Interest income from these financial assets is included in other income using EIR method.

Debt instruments at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVTOCI are measured at FVTPL. A gain or loss on debt instrument that is subsequently measured at FVTPL and is not a part of hedging relationship is recognised in the statement of profit and loss

within other gains/losses in the period in which it arises. Interest income from these financial assets is included in other income.

Equity investments

All equity investments in the scope of Ind AS 109 Financial Instruments are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the company may make an irrevocable election to recognise subsequent changes in the fair value in OCI. The company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in OCI. There is no recycling of the amounts from OCI to the statement of profit and loss, even on sale of equity instrument.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

Subsequent measurement of financial liabilities

For the purposes of subsequent measurement, the financial liabilities are classified in the following categories:

• those to be measured subsequently at fair value through profit or loss (FVTPL)

• those measured at amortised cost

Following financial liabilities will be classified under FVTPL:

• Financial liabilities held for trading

• Derivative financial liabilities

• Liability designated to be measured under FVTPL

All other financial liabilities are classified at amortised cost.

For financial liabilities measured at fair value, changes in fair value will recorded in the statement of profit and loss except for the fair value changes on account of own credit risk are recognised in Other Comprehensive Income (OCI).

Interest expense on financial liabilities classified under amortised cost category are measured using effective interest rate (EIR) method and are recognised in statement of profit or loss.

Derecognition of financial instruments

The company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retain substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Impairment of financial assets

The company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the financial assets mentioned below:

• Financial assets that are debt instrument and are measured at amortised cost

• Financial assets that are debt instruments and are measured as at FVOCI

• Trade receivables

The impairment methodology applied depends on whether there has been a significant increase in credit risk. Details how the company determines whether there has been a significant increase in credit risk is explained in the respective notes.

For impairment of trade receivables, the company chooses to apply practical expedient of providing expected credit loss based on provision matrix and does not require the Company to track changes in credit risk. Percentage of ECL under provision matrix is determined based on historical data as well as futuristic information.

Derivative financial instruments

Initial measurement and subsequent measurement

The company uses derivative financial instruments, such as forward currency contracts to hedge foreign currency risks. Such derivative financial instruments are initially recognised at fair value on the date on

which a derivative contract is entered into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are recognised in the statement of profit or loss.

u) Cash dividend

The company recognises a liability to make cash distributions to equity holders when the distribution is authorised and approved by the shareholders. A corresponding amount is recognised directly in equity.

v) Earnings per share (EPS)

Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the company by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

Diluted EPS adjust the figures used in the determination of basic EPS to consider

• The after-income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

w) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company.

x) Use of accounting judgments, estimates and assumptions

The preparation of the financial statements in conformity with Ind AS, requires the management to make judgments, estimates and assumptions that affect the amounts of revenue, expenses, current assets, non-current assets, current liabilities, noncurrent liabilities, disclosure of the contingent liabilities and notes to accounts at the end of each reporting period. Actuals may differ from these estimates.

Judgements

In the process of applying the Company''s accounting policies, management have made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Operating segment

Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess performance and allocate resources. The standard also requires Management to make judgments with respect to aggregation of certain operating segments into one or more reportable segment.

The Company has determined that the Chief Operating Decision Maker (CODM) is the Board of Directors (BoD). Operating segments used to present segment information are identified based on the internal reports used and reviewed by the BoD to assess performance and allocate resources.

Contingent liability

The Company has received various orders and notices from tax authorities in respect of direct taxes and indirect taxes. The outcome of these matters may have a material effect on the financial position, results of operations or cash flows. Management regularly analyses current information about these matters and discloses the information of related contingent liability. In making the decision regarding the need for creating loss provision, management considers the degree of probability of an unfavourable outcome and the ability to make a sufficiently reliable estimate of the amount of loss.The filing of a suit or formal assertion of a claim against the Company or the disclosure of any such suit or assertions, does not automatically indicate that a provision of a loss may be appropriate.

Estimates and assumptions.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its estimates and assumptions on parameters available when the financial statements are prepared. Existing circumstances and assumptions about future developments, however, may change due to market conditions or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit obligation

The cost of the defined benefit plans and other postemployment benefits and the present value of the obligations are determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future post-retirement medical benefit increase. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligations and extrapolated as needed along the yield curve to correspond with the expected term of the defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary increases are based on the expected future inflation rates for the country.

Further details about defined benefit obligations are provided in the respective note prepared elsewhere in the financial statements.

Deferred Tax

Deferred tax assets are recognised for all deductible temporary differences including the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits are unused tax losses can be utilized.

Estimation and underlying assumptions are reviewed on ongoing basis. Revisions to estimates are recognised prospectively.

y) Recent accounting pronouncements

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. For the year ended March 31,2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

Notes:

(i) Long-term borrowings include secured term loans at floating interest rates from State Bank of India, Bank of Maharashtra, Bajaj Finance Ltd and IDFC First Bank Ltd, Kotak Mahindra Bank and HDFC Bank Ltd. which are repayable through monthly/ Quarterly installment.

(ii) During the year the Company has availed new term loan facility from HDFC Bank of '' 10000 Lakhs and Bajaj Finance Ltd 2000 Lakhs towards capital expenditure and to be repaid in 60 equated monthly installments.

As per above mentioned term loan facility from HDFC Bank Ltd the sanction amount is '' 10000 Lakhs out of which disbursed amount is INR 3500 Lakhs as on balance sheet date and remaining amount pending for utilization. In case of bajaj finance Ltd the term loan facility had been fully utilized.

Further above loans are secured by a first parri-passu charge on existing fixed assets except Leasehold Land at Khed location however the Company has not created first parri-passu charge along with lead bank (i.e. Bank of Maharashtra) and other consortium member banks/financial institution by way of registered mortgage, nor has the charge been registered with Registrar of Companies.

(iii) Except as mentioned above loans availed from State Bank of India, Bank of Maharashtra, Kotak Mahindra Bank, Bajaj Finance Ltd and IDFC Bank Ltd are secured by a first parri-passu charge by way of registered mortgage on the existing fixed assets except Land at Khed city. Loan availed from Bajaj Finance Ltd. is secured by exclusive charge on lease land at Khed city. Of these, '' 581780 Lakhs (PY '' 5021.06 Lakhs) are classified as current liabilities being repayable before March 31,2025.

(iv) The Emergency Credit Line Guarantee Scheme 2.0 (ECLGS 2.0) was launched to support businesses affected by COVID-19 by providing additional liquidity. The scheme offered 20% of total loans outstanding as of February 29, 2021, with a 100% credit guarantee from the National Credit Guarantee Trustee Company Limited (NCGTC) by creating secondary charge on existing primary and collateral securities of the company with the bankers. This scheme further offered an additional loan to the extent of 10% of the total Loans outstanding. The outstanding balance as on 31st March 2024 of loan availed as per above scheme is '' 5,170.72 Lakhs.

(v) There is no default, continuing or otherwise in repayment of installment, loan, balance outstanding as the case may be and interest as on the balance sheet date.

(vi) Borrowings are measured at amortised cost.

Fair value of financial assets and financial liabilities measured at amortised cost :

The management believes that the fair values of non-current financial assets (e.g. loans and others), current financial assets (e.g., cash and cash equivalents, trade receivables, loans and others excluding other derivative assets) and current financial liabilities (e.g. trade payables and other payables excluding derivative liabilities) approximate their carrying amounts.

The Company has not performed fair valuation of its investment in unquoted equity shares as mentioned in note no. 4 which are classified as FVTPL or FVTOCI, as the Company believes that impact of change on account of fair value is insignificant.

34.3 Financial risk management

The Company''s activities exposes it to market risks, credit risks and liquidity risks. The Company''s management have overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company''s risks are reviewed regularly to reflect changes in market conditions and the company''s activities. Derivatives are used for hedging of foreign currency loan and not as a trading or speculative purposes.

The Company has exposure to the following risks arising from financial instruments :

a. Credit risk

Credit risk is the risk of financial losses to the Company if a customer or counterparty to financial instruments fails to discharge its contractual obligations. It arises primarily from the Company''s receivables from customers. To manage this, the Company periodically assesses the key accounts receivable balances. As per Ind-AS 109 : Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain.

The carrying amount of trade and other receivables and other financial assets represents the maximum credit exposure.

i. Trade receivables

The management has established accounts receivable policy under which customer accounts are regularly monitored. The Company has a dedicated sales team which is responsible for collecting dues from the customer within stipulated period. The management reviews status of critical accounts on a regular basis.

ii. Financial instruments and Cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with Company''s policy. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment Company adjust it''s exposure to various counterparties.

b. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company has a view of maintaining liquidity and to take minimum possible risk for which company monitors its cash and bank balances periodically in view of its short term obligations associated with its financial liabilities.

c. Market risk

Market risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. 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 borrowings, trade and other payables, foreign exchange forward contracts, security deposit, trade and other receivables and deposits with banks.

(i) Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Company transacts business in its functional currency (INR) and in other foreign currencies. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities, where revenue or expense is denominated in a foreign currency. The Company manages its foreign currency risk by hedging foreign currency denominated loan using foreign currency forward contracts. The Company negotiates the terms of those foreign currency forward contracts to match the terms of the hedged exposure.

39. OTHER STATUTORY INFORMATION Details of Benami Property held

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

Details of Loans and advances

(i) The Company has not advanced to or loaned to or invested funds in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that such Intermediary shall:

(a) 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

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

(ii) The Company 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:

(a) 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

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

Wilful Defaulter

The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet.

Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

Registration of charges or satisfaction with Registrar of Companies (ROC)

The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period.

Stock statements

There is variance in Quarterly returns or statements of current assets filed by the Company with banks and the books of accounts as company is following the terms & conditions as mentioned in sanction letter, further reason for material variance are mentioned below:

Compliance with number of layers of companies

The company has complied with the provision of 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

Compliance with approved Scheme(s) of Arrangements

There are no Schemes of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

Discrepancy in utilization of borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date. There are no discrepancy in utilisation of borrowings.

Undisclosed income

The Company does not have any transaction that is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the IncomeTax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto currency or Virtual Currency.

46. STOCK OPTION PLANS

A. Employee Stock Option Plan- 2022

This Scheme shall be called the "Alicon Castalloy Limited - Employee Stock Option Scheme 2022 ("ESOS 2022" or "Scheme").

The objective of the ESOS 2022 is to reward the Employees of the Company for their performance and to motivate them to contribute to the growth and profitability of the Company. The Company also intends to use this Scheme to retain talent in the organization. The Company views Employee Stock Options as instruments that would enable the Employees to share the value they create for the Company and align individual objectives of employees with objectives of the Company in the years to come.

The Shareholders by way of special resolution dated September 27, 2022 have authorized the Board of Directors to grant not exceeding 3,00,000 (three Lakhs) Options to the Employees under ESOS - 2022, in one or more tranches, exercisable into not more than 3,00,000 (three Lakhs only) Equity shares of face value '' 5/- (Rupees five only) each fully paid up with each such Option conferring a right upon the employee to apply for one Share of the Company, in accordance with the terms and conditions as may be decided under the ESOS 2022.

Vesting period and exercise period of the options granted under ESOS 2022 shall be as mentioned in the scheme.

The options not exercised within the exercise period shall lapse and the employee shall have no right over such lapsed or cancelled options.

Under the said scheme Nomination and Remuneration Committee of the board of directors has granted following options to its eligible employees:

51. Figures have been regrouped wherever necessary to make them comparable.

As per our report of even date attached On behalf of the Board of Directors of Alicon Castalloy Ltd.

For Kirtane & Pandit LLP

Chartered Accountants

Firm Regn No: 105215W/W100057

Parag Pansare S. Rai Rajeev Sikand

Partner Managing Director Chief Executive Officer

Membership No. 117309 DIN: 00050950

Place: Pune Vimal Gupta Amruta Joshi

Date: May 16, 2024 Chief Financial Officer Company Secretary

---

Mar 31, 2023

q) Provisions and contingencies

A provision is 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.

When the company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain.The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

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 in the statement of profit and loss.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Contingent assets are not recognised in financial statements, unless they are virtually certain. However, contingent assets are disclosed where inflow of economic benefits are probable.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

r) Fair value measurement

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 company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

• Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

• Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

• Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the company has determined classes of assets and liabilities based on the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy.

s) Investment in subsidiaries

The Company has elected to recognize its investments in subsidiaries at cost in accordance with the option available in Ind AS 27, ''Separate Financial Statements.

t) Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

Initial recognition and measurement

Financial instruments are initially recognised when the entity becomes party to the contract.

Financial instruments are measured initially at fair value adjusted for transaction costs that are directly attributable to the origination of the financial instrument where financial instruments not classified at fair value through profit or loss.Transaction costs of financial instruments which are classified as fair value through profit or loss are expensed in the statement of profit and loss. However, trade receivables that do not contain a significant financing component are measured at transaction price.

Subsequent measurement of financial assets

For the purposes of subsequent measurement, the financial assets are classified in the following categories based on the company''s business model for managing the financial assets and the contractual terms of cash flows:

• those to be measured subsequently at fair value; either through OCI or through profit or loss

• those measured at amortised cost

For assets measured at fair value, changes in fair value will either be recorded in the statement of profit and loss or OCI. For investments in debt instruments, this will depend on the business model in which investment is held. For investments in equity instruments, this will depend on whether the company has made an irrevocable election at the time of initial recognition to account for equity investment at fair value through OCI.

The company reclassifies debt investments when and only when its business model for managing those assets changes.

Debt instruments at amortised cost

A ''debt instrument'' is measured at the amortised cost if both the following conditions are satisfied:

• The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

• The contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest (SPPI) on the principal amount outstanding.

A gain or loss on a debt investment that is subsequently measured at amortised cost and is not part of hedging relationship is recognised in the statement of profit and loss when the asset is derecognised or impaired. Interest income from these financial assets is included in finance income using effective interest rate (EIR) method.

Debt instruments at fair value through other comprehensive income (FVTOCI)

Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets'' cash flows represent SPPI, are measured at FVTOCI. The movements in the carrying amount are recognised through OCI, except for the recognition of impairment gains and losses, interest revenue and foreign exchange gain or losses which are recognised in the statement of profit and loss. When the financial asset is derecognised, the cumulative gain or loss previously recognised in OCI is reclassified from equity to the statement of profit and loss and recognised in other gains/ losses. Interest income from these financial assets is included in other income using EIR method.

Debt instruments at fair value through profit or loss (FVTPL)

Assets that do not meet the criteria for amortised cost or FVTOCI are measured at FVTPL. A gain or loss on debt instrument that is subsequently measured at FVTPL and is not a part of hedging relationship is recognised in the statement of profit and loss within other gains/ losses in the period in which it arises. Interest income from these financial assets is included in other income.

Equity investments

All equity investments in the scope of Ind AS 109 Financial Instruments are measured at fair value. Equity instruments which are held for trading are classified as at FVTPL. For all other equity instruments, the company may make an irrevocable election to recognise subsequent changes in the fair value in OCI. The company makes such election on an instrument-by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are recognized in OCI. There is no recycling of the amounts from OCI to the statement of profit and loss, even on sale of equity instrument.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognised in the statement of profit and loss.

Subsequent measurement of financial liabilities

For the purposes of subsequent measurement, the financial liabilities are classified in the following categories:

• those to be measured subsequently at fair value through profit or loss (FVTPL)

• those measured at amortised cost

Following financial liabilities will be classified under FVTPL:

• Financial liabilities held for trading

• Derivative financial liabilities

• Liability designated to be measured under FVTPL

All other financial liabilities are classified at amortised cost.

For financial liabilities measured at fair value, changes in fair value will recorded in the statement of profit and loss except for the fair value changes on account of own credit risk are recognised in Other Comprehensive Income (OCI).

Interest expense on financial liabilities classified under amortised cost category are measured using effective interest rate (EIR) method and are recognised in statement of profit or loss.

Derecognition of financial instruments

The company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the company neither transfers nor retain substantially all of the risks and rewards of ownership and it does not retain control of the financial asset.

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability.

The difference in the respective carrying amounts is recognised in the statement of profit and loss.

Impairment of financial assets

The company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on the financial assets mentioned below;

• Financial assets that are debt instrument and are measured at amortised cost

• Financial assets that are debt instruments and are measured as at FVOCI

• Trade receivables

The impairment methodology applied depends on whether there has been a significant increase in credit risk, Details how the company determines whether there has been a significant increase in credit risk is explained in the respective notes,

For impairment of trade receivables, the company chooses to apply practical expedient of providing expected credit loss based on provision matrix and does not require the Company to track changes in credit risk, Percentage of ECL under provision matrix is determined based on historical data as well as futuristic information,

Derivative financial instruments

Initial measurement and subsequent measurement The company uses derivative financial instruments, such as forward currency contracts to hedge foreign currency risks, Such derivative financial instruments are initially recognised at fair value on the date on which a derivative contract is entered into and are subsequently re-measured at fair value, Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the fair value is negative, Any gains or losses arising from changes in the fair value of derivatives are recognised in the statement of profit or loss,

u) Cash dividend

The company recognises a liability to make cash distributions to equity holders when the distribution is authorised and approved by the shareholders, A corresponding amount is recognised directly in equity,

v) Earnings per share (EPS)

Basic EPS is calculated by dividing the profit for the year attributable to equity holders of the company

by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares,

Diluted EPS adjust the figures used in the determination of basic EPS to consider

• The after-income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• The weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares,

w) Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM) of the Company, The CODM is responsible for allocating resources and assessing performance of the operating segments of the Company,

x) Significant accounting judgments, estimates and assumptions

The preparation of the financial statements in conformity with Ind AS, requires the management to make judgments, estimates and assumptions that affect the amounts of revenue, expenses, current assets, non-current assets, current liabilities, noncurrent liabilities, disclosure of the contingent liabilities and notes to accounts at the end of each reporting period, Actuals may differ from these estimates,

Judgements

In the process of applying the Company''s accounting policies, management have made the following judgements, which have the most significant effect on the amounts recognised in the financial statements;

Operating segment

Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess performance and allocate resources, The standard also requires Management to make judgments with respect to aggregation of certain operating segments into one or more reportable segment,

The Company has determined that the Chief Operating Decision Maker (CODM) is the Board of Directors (BoD). Operating segments used to present segment information are identified based on the internal reports used and reviewed by the BoD to assess performance and allocate resources.

Contingent liability

The Company has received various orders and notices from tax authorities in respect of direct taxes and indirect taxes.The outcome of these matters may have a material effect on the financial position, results of operations or cash flows. Management regularly analyses current information about these matters and discloses the information of related contingent liability. In making the decision regarding the need for creating loss provision, management considers the degree of probability of an unfavourable outcome and the ability to make a sufficiently reliable estimate of the amount of loss. The filing of a suit or formal assertion of a claim against the Company or the disclosure of any such suit or assertions, does not automatically indicate that a provision of a loss may be appropriate.

Estimates and assumptions.

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its estimates and assumptions on parameters available when the financial statements are prepared. Existing circumstances and assumptions about future developments, however, may change due to market conditions or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit obligation

The cost of the defined benefit plans and other postemployment benefits and the present value of the obligations are determined using actuarial valuation. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and future post-retirement medical benefit increase. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligations and extrapolated as needed along the yield curve to correspond with the expected term of the defined benefit obligation.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary increases are based on the expected future inflation rates for the country.

Further details about defined benefit obligations are provided in the respective note prepared elsewhere in the financial statements.

Deferred Tax

Deferred tax assets are recognised for all deductible temporary differences including the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits are unused tax losses can be utilized.

Estimation and underlying assumptions are reviewed on ongoing basis. Revisions to estimates are recognised prospectively.

y) Recent accounting pronouncements

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 amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing 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 their 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. The Company does not expect this amendment to have any significant impact in its financial statements.

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 (recognition exemption) so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company is evaluating the impact, if any, in its 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. The Company does not expect this amendment to have any significant impact in its financial statements.

(i) Long-term borrowings include secured term loans at floating interest rates from State Bank of India, Bank of Maharashtra, Bajaj Finance Ltd and IDFC First Bank Ltd, Kotak Mahindra Bank and HDFC Bank Ltd. which are repayable through monthly / Quarterly instalments.

(ii) We have also availed a new Term loan facility of INR 2500 Lakhs from IDFC First Bank LTD towards our capex expenditure in FY 2022-23 on a period of 6 years including 1 year moratorium period. The same is secured by first parri-passu on charge by way of registered mortgage on the existing fixed assets except Land at Khed city.

(iii) Loans availed from State Bank of India, Bank of Maharashtra, Kotak Mahindra Bank, Bajaj Finance Ltd HDFC Bank Ltd and IDFC First Bank Ltd are secured by a first parri-passu charge by way of registered mortgage on the existing fixed assets except Land at Khed city. Loan availed from Bajaj Finance Ltd. is secured by exclusive charge on lease land at Khed city. Of these, '' 5021.06 Lakhs (PY '' 4092.56 Lakhs) are classified as current liabilities being repayable before March 31,2023.

(iv) Emergency Credit Line Guarantee Scheme 2.0 (ECLGS)-2 is launched by Government to provide additional liquidity to meet operational liabilities and support the business after unprecedented situation emerging out of COVID - 19. Under this scheme there was additional amount provided to the Borrower to the extent of 20% of the total Loans outstanding as on 29th Feb 21. There was 100% Credit Guarantee from National Credit Guarantee Trustee Company Limited (NCGTC) on the additional credit facility and secondary charge on existing primary and collateral securities of the company with the bankers. Under this scheme we have availed a total loan of '' 6503 Lakhs in FY 2020-21 and disbursement completed by 2021-22 from Existing bank & financial institution which is payable in 5 years period including 12 months moratorium. business after unprecedented situation

(i) Short-term borrowings includes cash credit facilities availed from State Bank of India, Kotak Mahindra Bank (Formerly known as ING Vysya Bank), Bank of Maharashtra, IDFC First Bank and Bajaj Finance Ltd. These borrowings are secured in favour of all the aforementioned banks by a first parri-passu charge by way of hypothecation of all stocks and receivables and a second parri-passu charge by joint deed of hypothecation on all fixed assets of the Company.

(ii) There is no default, continuing or otherwise in repayment of instalment, loan, balance outstanding as the case may be and interest as on the balance sheet date.

(iii) Borrowings are measured at amortised cost

(i) Above trade payable include amount due to related parties of '' 1382,38 lakhs and same has been disclosed in note no 43

(ii) Trade payables are measured at amortised cost,

(iii) Above balances are subject to confirmation & reconciliation if any,

(iv) Dues to Micro and Small Enterprises

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED Act''),

The Company has sent MSME confirmation to all the supplier & below disclosed dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (''MSMED Act'') to the extent confirmation received from supplier, The disclosure pursuant to the said MSMED Act are as follows,

Valuation technique and significant unobservable inputs:

Level 2:

(i) Derivative financial assets are valued based on inputs that are directly or indirectly observable in the market.

Significant increase in discount rates and spreads above risk free rate, in isolation would result in lower fair values, A significant increase in volatility in revenue growth rates will result in higher fair value,

Fair value of financial assets and financial liabilities measured at amortised cost :

The management believes that the fair values of non-current financial assets (e,g, loans and others), current financial assets (e,g,, cash and cash equivalents, trade receivables, loans and others excluding other derivative assets) and current financial liabilities (e,g, trade payables and other payables excluding derivative liabilities) approximate their carrying amounts,

The Company has not performed fair valuation of its investment in unquoted equity shares as mentioned in note no, 4 which are classified as FVTPL and FVTOCI, as the Company believes that impact of change on account of fair value is insignificant,

33.3 Financial risk management

The Company''s activities exposes it to market risks, credit risks and liquidity risks, The Company''s management have overall responsibility for the establishment and oversight of the Company''s risk management framework, The Company''s risks are reviewed regularly to reflect changes in market conditions and the company''s activities, Derivatives are used for hedging of foreign currency loan and not as a trading or speculative purposes,

The Company has exposure to the following risks arising from financial instruments :

a. Credit risk

Credit risk is the risk of financial losses to the Company if a customer or counterparty to financial instruments fails to discharge its contractual obligations, It arises primarily from the Company''s receivables from customers, To manage this, the Company periodically assesses the key accounts receivable balances, As per Ind-AS 109 : Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain,

The carrying amount of trade and other receivables and other financial assets represents the maximum credit exposure,

i, Trade receivables

The management has established accounts receivable policy under which customer accounts are regularly monitored, The Company has a dedicated sales team which is responsible for collecting dues from the customer within stipulated period, The management reviews status of critical accounts on a regular basis,

ii. Financial instruments and Cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with Company''s policy. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment Company adjust it''s exposure to various counterparties.

b. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company has a view of maintaining liquidity and to take minimum possible risk for which company monitors its cash and bank balances periodically in view of its short term obligations associated with its financial liabilities. The liquidity position at each reporting date is given below:

c. Market risk

Market risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. 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 borrowings, trade and other payables, foreign exchange forward contracts, security deposit, trade and other receivables and deposits with banks.

i. Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Company transacts business in its functional currency (INR) and in other foreign currencies. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities, where revenue or expense is denominated in a foreign currency.The Company manages its foreign currency risk by hedging foreign currency denominated loan using foreign currency forward contracts.The Company negotiates the terms of those foreign currency forward contracts to match the terms of the hedged exposure.

34. CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2023 and March 31, 2022.

38. OTHER STATUTORY INFORMATION

Details of Benami Property held

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

Details of Loans and advances

(i) The Company has not advanced to or loaned to or invested funds in any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that such Intermediary shall:

(a) 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

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

(ii) The Company 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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries Wilful Defaulter Wilful Defaulter

The company has not been declared as a wilful Defaulter by any Financial Institution or bank as at the date of Balance Sheet. Relationship with Struck off Companies

The Company do not have any transactions with companies struck off.

Registration of charges or satisfaction with Registrar of Companies (ROC)

The company has no pending charges or satisfaction which are yet to be registered with the ROC beyond the Statutory period.

Compliance with number of layers of companies

The company has complied with the provision of 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.

Compliance with approved Scheme(s) of Arrangements

There are no Schemes of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

Discrepancy in utilization of borrowings

The company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date. There are no discrepancy in utilisation of borrowings.

Undisclosed income

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

Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto currency or Virtual Currency.

45. STOCK OPTION PLANS

1. Employee Stock Option Plan- 2017

This Scheme shall be called the "Alicon Castalloy Limited - Employee Stock Option Scheme 2017 ("ESOS 2017" or "Scheme"),

The objective of the ESOS 2017 is to reward the Employees of the Company for their performance and to motivate them to contribute to the growth and profitability of the Company, The Company also intends to use this Scheme to retain talent in the organization, The Company views Employee Stock Options as instruments that would enable the Employees to share the value they create for the Company and align individual objectives of employees with objectives of the Company in the years to come,

The Shareholders by way of special resolution dated June 8, 2017 have authorized the Nomination and Remuneration Committee to grant not exceeding 6,75,000 (Six lacs seventy five Thousand only) Options to the Employees under the ESOS 2017, in one or more tranches, exercisable into not more than 6,75,000 (Six lacs seventy five Thousand only) Shares of face value of '' 5 (Rupees five) each fully paid-up, with each such Option conferring a right upon the Employee to apply for one Share of the Company, in accordance with the terms and conditions as may be decided under the ESOS 2017

Options granted under ESOS 2017 would Vest after 1 (one) year but not later than 4 (four) years from the date of grant of such Options

Number and weighted average exercise prices of options granted, exercised and cancelled/lapsed during the financial year

49. Figures have been regrouped wherever necessary to make them comparable.

As per our report of even date attached On behalf of the Board of Directors of Alicon Castalloy Ltd.

For Kirtane & Pandit LLP

Chartered Accountants

Firm Regn No: 105215W/W100057

Parag Pansare S. Rai Rajeev Sikand

Partner Managing Director Chief Executive Officer

Membership No, 117309 DIN : 00050950

Place: Pune Vimal Gupta Veena Vaidya

Date: May 16, 2023 Chief Financial Officer Company Secretary

---

Mar 31, 2019

THE CORPORATE OVERVIEW

Alicon Castalloy Limited (“the Company”) is a public limited company domiciled in India and is listed on Bombay Stock Exchange Limited and National Stock Exchange of India Limited. The Company is the manufacturer of aluminium alloy die castings mainly used in automotive segment of the industry in India. The Company’ s products also cover non-auto sector of the Industry.The Company also exports its products to the countries like U.S.A. and U.K.

1. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under Section 133 of the Companies Act, 2013 (“the Act”) [the Companies (Indian Accounting Standards) Rules, 2015, as amended] and other relevant provisions of the Act.

The financial statements were authorised for issue by the Board of Directors on April 19, 2019.

a) Basis of measurement

The financial statements have been prepared on a historical cost basis, except for the following items, which are measured on an alternative basis on each reporting date.

- Certain financial assets and liabilities (including derivative instruments) are measured at fair value.

- Defined benefit plans - plan assets are measured at fair value.

- Equity settled share-based payments -measured at grant date fair value.

b) Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current and noncurrent classification.

An asset is classified as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is classified as current when it is:

- Expected to be settled in normal operating cycle

- Held primarily for the purpose of trading

- Due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The company classifies all other liabilities as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

c) Functional and presentation currency:

The financial statements are presented in Indian Rupees (INR), which is the company’s functional currency. All amounts disclosed in the Financial Statements including notes have been rounded off to the nearest lakhs in Indian Rupee (INR) as per the requirements of Schedule III of the Companies Act, 2013; unless otherwise indicated.

The Company obtains independent valuations for its investment property at least annually. The best evidence of fair value is current prices in an active market for similar properties.

These valuations are based on valuations performed by property valuer, an accredited independent valuer. The valuer is a specialist in valuing these types of properties. All resulting fair value estimates for investment properties are included in Level 3.

The rent received from the investment property is Rs. 153.81 lakhs (Previous year : Rs. 143.08 lakhs).

No amount is due from any of the directors or officers of the Company, severally or jointly with any other person; or from firms where such director is a partner or from private companies where such director is a Member.

2.1 The Company has only one class of shares referred to as equity shares having a par value of Rs. 5/-. Each Shareholder of equity shares is entitled to one vote per share.

2.2 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive a share in the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.3 Number of equity shares held by each shareholder holding more than 5% shares in the Company are as follows:

Notes:

(i) Long-term borrowings include secured term loans at floating interest rates from State Bank of India, Bank of Maharashtra, Bajaj Finance Ltd and IDFC Bank Ltd. which are repayable through monthly / Quarterly instalments. Total number of instalments = 777

Number of instalments outstanding as at March 31, 2019 = 403 (PY = 353)

(ii) Loans availed from State Bank of India, Bank of Maharashtra, Bajaj Finance Ltd and IDFC Bank Ltd are secured by a first parri-passu charge by way of registered mortgage on the existing fixed assets except Land at Khed city. Loan availed from Bajaj Finance Ltd. is secured by exclusive charge on lease land at Khed city. Of these, Rs. 2,954.97 lakhs (PY Rs. 2 595.54 lakhs) are classified as current liabilities being repayable before March 31, 2020.

(iii) There is no default, continuing or otherwise in repayment of instalment, loan, balance outstanding as the case may be and interest as on the balance sheet date.

(iv) Borrowings are measured at amortised cost

Notes:

(i) Short-term borrowings includes cash credit facilities availed from State Bank of India, Kotak Mahindra Bank (Formerly known as ING Vysya Bank), Bank of Maharashtra, IDFC Bank and Bajaj Finance Ltd. These borrowings are secured in favour of all the aforementioned banks by a first parri-passu charge by way of hypothecation of all stocks and receivables and a second parri-passu charge by joint deed of hypothecation on all fixed assets of the Company.

(ii) Unsecured Preshipment loans are availed from Kotak Mahindra Bank for funding purchase orders and working capital demand loan. These loans, are obtained at floating interest rates repayable through weekly instalments.

(iii) There is no default, continuing or otherwise in repayment of instalment, loan, balance outstanding as the case may be and interest as on the balance sheet date.

(iv) Borrowings are measured at amortised cost

Notes:

(i) Trade payable from related parties are disclosed in note 39.

(ii) Trade payables are measured at amortised cost.

(iii) dues to Micro and Small Enterprises : The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’). The Company has sent MSME confirmation to all the supplier & below disclosed dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’) to the extent confirmation received from supplier.The disclosure pursuant to the said MSMED Act are as follows.

Revenue for operations year ended March 31, 2019 is not comparable with revenue for operations of year ended March 31, 2018, as the amount of excise duty is not included in the revenue from operations post implementation of GST effective from July 1, 2017.

The entire revenue from operations is recognised at point in time and relates to single operating segment i.e. Aluminium castings.

The information relating to trade receivables from revenue from operations is disclosed in note no.8.

Changes in significant accounting policies - Ind AS 115: Revenue from contracts with customers

The Company has applied Ind AS 115 - Revenue from contracts with customers from April 01, 2018. Ind AS 115 establishes a comprehensive framework for determining whether, how much and when revenue is recognised. It replaced Ind AS 18 - Revenue, Ind AS 11 - Construction Contracts and related interpretations. Under Ind AS 115, revenue is recognised when a customer obtains control of the goods or services.

The Company has adopted Ind AS 115 using the cumulative effect method, with the effect of applying this standard recognised at the date of application i.e. from 1st April 2018. Accordingly, the information presented for year ended March 31, 2018 has not been restated - i.e. it is presented, as previously reported, under Ind AS 18, Ind AS 11 and related interpretations. Additionally, the disclosure requirements in Ind AS 115 have not been applied to comparative information. After evaluation of all the live contracts as on 1st April, 2018 there is no material impact on application of Ind AS 115 on financial statements.

Material consumed includes material on conversion account as certified by the management.

The figures of purchases have been arrived by deducting the closing stock from the quantity/value of opening stock as increased by the consumption during the year.

3.1 Fair value hierarchy

Financial assets and liabilities include cash and cash equivalents, other balances with banks, trade receivables, loans, other financial assets, trade payables and other financial liabilities whose fair values approximate their carrying amounts largely due to the short term nature of such assets and liabilities.

The following table presents fair value hierarchy of assets and liabilities measured at fair value as on March 31, 2019 :

Valuation technique and significant unobservable inputs:

Level 2:

(i) Derivative financial assets are valued based on inputs that are directly or indirectly observable in the market.

Significant increase in discount rates and spreads above risk free rate, in isolation would result in lower fair values. A significant increase in volatility in revenue growth rates will result in higher fair value.

Fair value of financial assets and financial liabilities measured at amortised cost :

The management believes that the fair values of non-current financial assets (e.g. loans and others), current financial assets (e.g., cash and cash equivalents, trade receivables, loans and others excluding other derivative assets) and current financial liabilities (e.g. trade payables and other payables excluding derivative liabilities) approximate their carrying amounts.

The Company has not performed fair valuation of its investment in unquoted equity shares as mentioned in note no. 4 which are classified as FVTPL, as the Company believes that impact of change on account of fair value is insignificant.

3.2 Financial risk management

The Company’s activities exposes it to market risks, credit risks and liquidity risks. The Company’s management have overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risks are reviewed regularly to reflect changes in market conditions and the company’s activities. Derivatives are used for hedging of foreign currency loan and not as a trading or speculative purposes.

The Company has exposure to the following risks arising from financial instruments :

a. credit risk

Credit risk is the risk of financial losses to the Company if a customer or counterparty to financial instruments fails to discharge its contractual obligations. It arises primarily from the Company’s receivables from customers. To manage this, the Company periodically assesses the key accounts receivable balances. As per Ind-AS 109 : Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain.

The carrying amount of trade and other receivables and other financial assets represents the maximum credit exposure.

i. Trade receivables

The management has established accounts receivable policy under which customer accounts are regularly monitored. The Company has a dedicated sales team which is responsible for collecting dues from the customer within stipulated period. The management reviews status of critical accounts on a regular basis.

ii. Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with Company’s policy. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment Company adjust it’s exposure to various counterparties.

b. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company has a view of maintaining liquidity and to take minimum possible risk for which company monitors its cash and bank balances periodically in view of its short term obligations associated with its financial liabilities.

c. Market risk

Market risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. 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 borrowings, trade and other payables, foreign exchange forward contracts, security deposit, trade and other receivables and deposits with banks.

i. Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Company transacts business in its functional currency (INR) and in other foreign currencies. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities, where revenue or expense is denominated in a foreign currency.The Company manages its foreign currency risk by hedging foreign currency denominated loan using foreign currency forward contracts.The Company negotiates the terms of those foreign currency forward contracts to match the terms of the hedged exposure.

ii. 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. At the reporting date the interest rate profile of the Company’s interest bearing financial instruments are follows:

4 capital management

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2019 and March 31, 2018.”

5 details of employee benefits as required BY IND-AS 19 - “employee benefits ARE AS under”:

1 Defined contribution plan - Provident fund

The group has recognized following amounts in the profit & loss account for the year:

2 Defined benefit plan

i) The defined benefit plan comprises gratuity, which is funded.

ii) Actuarial gains and losses in respect of defined benefit plans are recognized in the Other Comprehensive Income (OCI).

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Gratuity is a benefit to an employee in India based on 15 days last drawn salary for each completed year of service with a vesting period of five years.

These defined benefit plans expose the Company to actuarial risks, such as longevity risk and interest rate risk.

a. The discount rate is based on prevailing yields of Indian Government Securities as at the Balance Sheet date for the estimated term of the obligation.

b. Salary Escalation Rate: The estimates of future salary increases takes into account the inflation, seniority, promotion and other relevant factors.

c. Assumptions regarding future mortality rates are the rates as given under Indian Assured Lives Mortality (2006-08) Ultimate.

Sensitivity Analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

6 SEGMENT INFORMATION

The Company’s operating business predominantly relates to manufacture of Aluminium Castings thereof and hence the Company has considered “Aluminium Castings” as the single reportable segment.

Note:

As the post-employment benefits is provided on an actuarial basis for the Company as a whole, the amount pertaining to key management personnel is not ascertainable and therefore not included above. The amount included above is the contribution made by company.

7 LEASE TRANSACTIONS

operating leases

Obligations towards non-cancellable operating Leases:

The Company has taken facilities and office premises on lease. The future lease payments for these facilities are as under:

8 stock option plans

1 Employee Stock option Plan- 2015

This Scheme shall be called the “Alicon Castalloy Limited - Employee Stock Option Scheme 2015 (ESOS 2015)”

The objective of the ESOS 2015 is to reward the Employees of the Company for their performance and to motivate them to contribute to the growth and profitability of the Company. The Company also intends to use this Scheme to retain talent in the organization. The Company views Employee Stock Options as instruments that would enable the Employees to share the value they create for the Company and align individual objectives of employees with objectives of the Company in the years to come.

The Shareholders in their meeting held on December 30, 2015 have resolved to authorize the Board to issue to the Employees of the Company, not more than 6,12,800 (Six Lakh Twelve Thousand Eight Hundred Only) Employee Stock Options under ESOS 2015 exercisable Equity Shares of face value of Rs. 5/- each fully paid up, being not more than 5% of the Issued Equity Share Capital of the Company as on March 31, 2015, to be issued and allotted by the Company (hereinafter referred as “Primary Shares”), in one or more tranches, with each such Option conferring a right upon the Employees to apply for one Equity Share in the Company, in accordance with the terms and conditions of ESOS 2015. The ESOS 2015 shall be administered by the Compensation Committee.

The Employee Stock Options granted may be exercised by the Option grantee at any time within a period of one year from the date of Vesting of the respective Stock Options or such other period as may be decided by the Compensation Committee from time to time. The shares issued upon exercise of options shall be freely transferable and will not be subject to any lock - in period after such exercise provided.

Number and weighted average exercise prices of options granted, exercised and cancelled/lapsed during the financial year.

No options are exercised in the current year in the ESOP Scheme 2015.The weighted average market price of the options exercised under Employees Stock Option Scheme -2015 on the date of exercise 11th August 2017 during the year was Rs. 523.32.

No options are granted in the current year.The fair value of each option granted during the last year is estimated on the date of grant using Black and Scholes option pricing model with the following assumptions:

The expected price volatility is based on the historic volatility, adjusted for any changes to future volatility due to publicly available information.

The Company recorded an employee compensation cost of Rs. 94.92 lakhs (Previous year Rs. 496.08) in the Statement of Profit and Loss.

2 Employee Stock option Plan- 2017

This Scheme shall be called the “Alicon Castalloy Limited - Employee Stock Option Scheme 2017 (“ESOS 2017” or “Scheme”).

The objective of the ESOS 2017 is to reward the Employees of the Company for their performance and to motivate them to contribute to the growth and profitability of the Company. The Company also intends to use this Scheme to retain talent in the organization. The Company views Employee Stock Options as instruments that would enable the Employees to share the value they create for the Company and align individual objectives of employees with objectives of the Company in the years to come.

The Shareholders by way of special resolution dated June 08, 2017 have authorized the Nomination and Remuneration Committee to grant not exceeding 6,75,000 (Six lacs seventy five Thousand only) Options to the Employees under the ESOS 2017, in one or more tranches, exercisable into not more than 6,75,000 (Six lacs seventy five Thousand only) Shares of face value of Rs. 5 (Rupees five) each fully paid-up, with each such Option conferring a right upon the Employee to apply for one Share of the Company, in accordance with the terms and conditions as may be decided under the ESOS 2017

Options granted under ESOS 2017 would Vest after 1 (one) year but not later than 4 (four) years from the date of grant of such Options.

Number and weighted average exercise prices of options granted, exercised and cancelled/lapsed during the financial year.

The weighted average market price of the options exercised under Employees Stock Option Scheme -2017 on the date of exercise November 15, 2018 during the year was Rs. 576.90. (Previous year - Nil).

No options granted in the current year. The fair value of each option granted during the last year is estimated on the date of grant using Black and Scholes option pricing model with the following assumptions:

The expected price volatility is based on the historic volatility, adjusted for any changes to future volatility due to publicly available information.

The Company recorded an employee compensation cost of Rs. 1232.28 lakhs (Previous year Rs. 1232.13 lakhs) in the Statement of Profit and Loss.

9 research and development

The Company has separate in-house research & development set-up which is involved in new product development, new process development etc. The details of R&D expenditure are as under:

On February 28, 2019, the Supreme Court has passed a judgment on inclusion of certain allowances in basic wages for the purposes of deduction and contribution to the Employees Provident and Pension funds. Due to ambiguity and the divergent views on the application of the said judgment, the company has not made any provision. The company will take necessary steps, on receiving further clarity on the subject.

10 INCOME TAXES

The income tax expense consists of following:

The deferred tax relates to origination/reversal of temporary differences.

The reconciliation of estimated income tax expense at Indian statutory income tax rate to income tax expense reported in Statement of Profit or Loss is as follows:

11 During the year company has alloted 4,611 shares which were not alloted due to technical problem in last year.

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Mar 31, 2018

THE CORPORATE OVERVIEW

Alicon Castalloy Limited (“the Company”) is a public limited company domiciled in India and is listed on both-Bombay Stock Exchange and National Stock Exchange. The Company is the manufacturer of aluminium alloy die castings mainly used in automotive segment of the industry in India. The Company’ s products also cover nonauto sector of the Industry. The Company also exports its products to the countries like U.S.A. and U.K.

1. BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under Section 133 of the Companies Act, 2013 [the Companies (Indian Accounting Standards) Rules, 2015, as amended] and other relevant provisions of the Act.

The Financial Statements up to the year ended 31 March 2017 were prepared in accordance with the Accounting Standards notified under the Companies (Accounting Standard) Rules, 2006 (as amended) and other relevant provisions of the Act (“Previous GAAP”). The financial statements for the year ended 31 March 2018 are the first financial statements of the Company prepared in accordance with Ind AS. An explanation of how the transition to Ind AS has affected the reported balance sheet, statement of profit or loss and cash flows of the company is provided in note 50.

The financial statements were authorised for issue by the Board of Directors on 30 April 2018.

a) Basis of measurement

The financial statements have been prepared on a historical cost basis, except for the following items, which are measured on an alternative basis on each reporting date.

- Certain financial assets and liabilities (including derivative instruments) are measured at fair value.

- Defined benefit plans - plan assets are measured at fair value.

- Equity settled share-based payments -measured at grant date fair value.

b) Current versus non-current classification

The company presents assets and liabilities in the balance sheet based on current and non-current classification.

An asset is classified as current when it is:

- Expected to be realised or intended to be sold or consumed in normal operating cycle

- Held primarily for the purpose of trading

- Expected to be realised within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period

All other assets are classified as non-current.

A liability is classified as current when it is:

- Expected to be settled in normal operating cycle

- Held primarily for the purpose of trading

- Due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period

The company classifies all other liabilities as noncurrent.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

c) Functional and presentation currency:

The financial statements are presented in Indian Rupees (INR), which is the company’s functional currency. All amounts disclosed in the Financial Statements including notes have been rounded off to the nearest lakhs in Indian Rupee (INR) as per the requirements of Schedule III of the Companies Act, 2013; unless otherwise indicated.

2.1 The Company has only one class of shares referred to as equity shares having a par value of Rs. 5. Each shareholder of equity shares is entitled to one vote per share.

2.2 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive a share in the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.3 Number of equity shares held by each shareholder holding more than 5% shares in the Company are as follows:

Notes:

(i) Long-term borrowings include secured term loans at floating interest rates from State Bank of India, Bank of Maharashtra, Bajaj Finance Ltd and IDFC Bank Ltd. which are repayable through monthly / Quarterly installments.

Total number of installments = 682

Number of installments outstanding as at March 31, 2018 = 353 (PY = 365)

(ii) Loans availed from State Bank of India, Bank of Maharashtra, Bajaj Finance Ltd and IDFC Bank Ltd are secured by a first parri-passu charge by way of registered mortgage on the existing fixed assets except Land at Khed city. Loan availed from Bajaj Finance Ltd. is secured by exclusive charge on lease land at Khed city. Of these, Rs. 2,619.01 lakhs (PY Rs. 2,206.02 lakhs) are classified as current liabilities being repayable before March 31,2019.

(iii) There is no default, continuing or otherwise in repayment of installment, loan, balance outstanding as the case may be and interest as on the balance sheet date.

(iv) Borrowings are measured at amortised cost

Notes:

(i) Short-term borrowings includes cash credit facilities availed from State Bank of India, Kotak Mahindra Bank (Formerly known as ING Vysya Bank), Bank of Maharashtra, IDFC Bank and Bajaj Finance Ltd. These borrowings are secured in favour of all the aforementioned banks by a first parri-passu charge by way of hypothecation of all stocks and receivables and a second parri-passu charge by joint deed of hypothecation on all fixed assets of the Company.

(ii) Unsecured Preshipment loans are availed from Kotak Mahindra Bank for funding purchase orders and working capital demand loan. These loans, are obtained at floating interest rates repayable through weekly instalments.

(iii) There is no default, continuing or otherwise in repayment of instalment, loan, balance outstanding as the case may be and interest as on the balance sheet date.

(iv) Borrowings are measured at amortised cost

Notes:

(i) Trade payable from related parties are disclosed in note 41.

(ii) Trade payables are measured at amortised cost.

(iii) Dues to Micro and Small Enterprises

Revenue for operations year ended 31 March 2018 is not comparable with revenue for operations of year ended 31 March 2017, as the amount of excise duty is not included in the revenue from operations post implementation of GST effective from 1 July 2017.

Material consumed includes material on conversion account as certified by the management.

The figures of purchases have been arrived by deducting the closing stock from the quantity/value of opening stock as increased by the consumption during the year.

3.1 Fair value hierarchy

Financial assets and liabilities include cash and cash equivalents, other balances with banks, trade receivables, loans, other financial assets, trade payables and other financial liabilities whose fair values approximate their carrying amounts largely due to the short term nature of such assets and liabilities.

The following table presents fair value hierarchy of assets and liabilities measured at fair value as on 31 March 2018:

Valuation technique and significant unobservable inputs:

Level 2:

(i) Derivative financial assets are valued based on inputs that are directly or indirectly observable in the market.

Significant increase in discount rates and spreads above risk free rate, in isolation would result in lower fair values. A significant increase in volatility in revenue growth rates will result in higher fair value.

Fair value of financial assets and financial liabilities measured at amortised cost :

The management believes that the fair values of non-current financial assets (e.g. loans and others), current financial assets (e.g., cash and cash equivalents, trade receivables, loans and others excluding other derivative assets) and current financial liabilities (e.g. trade payables and other payables excluding derivative liabilities) approximate their carrying amounts.

The Company has not performed fair valuation of its investment in unquoted equity shares as mentioned in note no. 4 which are classified as FVTPL, as the Company believes that impact of change on account of fair value is insignificant.

3.2 Financial risk management

The Company’s activities exposes it to market risks, credit risks and liquidity risks. The Company’s management have overall responsibility for the establishment and oversight of the Company’s risk management framework. The Company’s risks are reviewed regularly to reflect changes in market conditions and the company’s activities. Derivatives are used for hedging of foreign currency loan and not as a trading or speculative purposes.

The Company has exposure to the following risks arising from financial instruments :

a. Credit risk

Credit risk is the risk of financial losses to the Company if a customer or counterparty to financial instruments fails to discharge its contractual obligations. It arises primarily from the Company’s receivables from customers. To manage this, the Company periodically assesses the key accounts receivable balances. As per Ind-AS 109 : Financial Instruments, the Company uses expected credit loss model to assess the impairment loss or gain.

The carrying amount of trade and other receivables and other financial assets represents the maximum credit exposure.

i. Trade receivables

The management has established accounts receivable policy under which customer accounts are regularly monitored. The Company has a dedicated sales team which is responsible for collecting dues from the customer within stipulated period. The management reviews status of critical accounts on a regular basis.

ii. Financial instruments and Cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with Company’s policy. Company monitors rating, credit spreads and financial strength of its counter parties. Based on ongoing assessment Company adjust it’s exposure to various counterparties.

b. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company has a view of maintaining liquidity and to take minimum possible risk for which company monitors its cash and bank balances periodically in view of its short term obligations associated with its financial liabilities.

The liquidity position at each reporting date is given below:

c. Market risk

Market risk is a risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. 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 borrowings, trade and other payables, foreign exchange forward contracts, security deposit, trade and other receivables and deposits with banks.

i. Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Company transacts business in its functional currency (INR) and in other foreign currencies. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities, where revenue or expense is denominated in a foreign currency.The Company manages its foreign currency risk by hedging foreign currency denominated loan using foreign currency forward contracts .The Company negotiates the terms of those foreign currency forward contracts to match the terms of the hedged exposure.

The following foreign currency exposures have not been hedged by derivative instruments at the Balance Sheet date:

ii. 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. At the reporting date the interest rate profile of the Company’s interest bearing financial instruments are follows:

4 CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2018, 31 March, 2017 and 1 April 2016.

5 DETAILS OF EMPLOYEE BENEFITS AS REQUIRED BY IND-AS 19 - “EMPLOYEE BENEFITS ARE AS UNDER”:

1 Defined contribution plan - Provident fund

The group has recognized following amounts in the profit & loss account for the year:

2 Defined benefit plan

i) The defined benefit plan comprises gratuity, which is funded.

ii) Actuarial gains and losses in respect of defined benefit plans are recognized in the Other Comprehensive Income (OCI).

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Gratuity is a benefit to an employee in India based on 15 days last drawn salary for each completed year of service with a vesting period of five years.

a. The discount rate is based on prevailing yields of Indian Government Securities as at the Balance Sheet date for the estimated term of the obligation.

b. Salary Escalation Rate: The estimates of future salary increases takes into account the inflation, seniority, promotion and other relevant factors.

c. Assumptions regarding future mortality rates are the rates as given under Indian Assured Lives Mortality (2006-08) Ultimate.

Sensitivity Analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

6 SEGMENT INFORMATION

The Company’s operating business predominantly relates to manufacture of Aluminium Castings thereof and hence the Company has considered “Aluminium Castings” as the single reportable segment.

7 NET DEBT RECONCILIATION

Position of net debt

8 DISCLOSURE AS PER CLAUSE 32 OF THE LISTING AGREEMENTS WITH THE STOCK EXCHANGES

Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in share application money (in transit) refer note 4 and 6 for the PY 70.19 lakhs of the Company by such parties.

9 LEASE TRANSACTIONS OPERATING LEASES

Obligations towards non-cancellable operating Leases:

The Company has taken facilities and office premises on lease. The future lease payments for these facilities are as under:

10 STOCK OPTION PLANS

1 Employee Stock Option Plan- 2015

This Scheme shall be called the “Alicon Castalloy Limited - Employee Stock Option Scheme 2015 (ESOS 2015)”

The objective of the ESOS 2015 is to reward the Employees of the Company for their performance and to motivate them to contribute to the growth and profitability of the Company. The Company also intends to use this Scheme to retain talent in the organization. The Company views Employee Stock Options as instruments that would enable the Employees to share the value they create for the Company and align individual objectives of employees with objectives of the Company in the years to come.

The Shareholders in their meeting held on 30th December 2015 have resolved to authorize the Board to issue to the Employees of the Company, not more than 6,12,800 (Six Lakh Twelve Thousand Eight Hundred Only) Employee Stock Options under ESOS 2015 exercisable Equity Shares of face value of Rs. 5/- each fully paid up, being not more than 5% of the Issued Equity Share Capital of the Company as on March 31, 2015, to be issued and allotted by the Company (hereinafter referred as “Primary Shares”), in one or more tranches, with each such Option conferring a right upon the Employees to apply for one Equity Share in the Company, in accordance with the terms and conditions of ESOS 2015. The ESOS 2015 shall be administered by the Compensation Committee.

The Employee Stock Options granted may be exercised by the Option grantee at any time within a period of one year from the date of Vesting of the respective Stock Options or such other period as may be decided by the Compensation Committee from time to time. The shares issued upon exercise of options shall be freely transferable and will not be subject to any lock - in period after such exercise provided.

Number and weighted average exercise prices of options granted, exercised and cancelled/lapsed during the financial year

The weighted average market price of the options exercised under Employees Stock Option Scheme -2015 on the date of exercise 11th August 2018 during the year was Rs. 523.32 (Previous year ‘ Nil)

The fair value of each option granted during the year is estimated on the date of grant using Black and Scholes option pricing model with the following assumptions:

The expected price volatility is based on the historic volatility, adjusted for any changes to future volatility due to publicly available information.

The Company recorded an employee compensation cost of Rs. 496.08 lakhs (Previous year Rs. 493.51) in the Statement of Profit and Loss.

2 Employee Stock Option Plan- 2017

This Scheme shall be called the “Alicon Castalloy Limited - Employee Stock Option Scheme 2017 (“ESOS 2017” or “Scheme”).

The objective of the ESOS 2017 is to reward the Employees of the Company for their performance and to motivate them to contribute to the growth and profitability of the Company. The Company also intends to use this Scheme to retain talent in the organization. The Company views Employee Stock Options as instruments that would enable the Employees to share the value they create for the Company and align individual objectives of employees with objectives of the Company in the years to come.

The Shareholders by way of special resolution dated June 08, 2017 have authorized the Nomination and Remuneration Committee to grant not exceeding 6,75,000 (Six lacs seventy five Thousand only) Options to the Employees under the ESOS 2017, in one or more tranches, exercisable into not more than 6,75,000 (Six lacs seventy five Thousand only) Shares of face value of Rs. 5 (Rupees five) each fully paid-up, with each such Option conferring a right upon the Employee to apply for one Share of the Company, in accordance with the terms and conditions as may be decided under the ESOS 2017

Options granted under ESOS 2017 would Vest after 1 (one) year but not later than 4 (four) years from the date of grant of such Options

Number and weighted average exercise prices of options granted, exercised and cancelled/lapsed during the financial year

The expected price volatility is based on the historic volatility, adjusted for any changes to future volatility due to publicly available information.

The Company recorded an employee compensation cost of Rs. 1232.13 lakhs (Previous year ‘ Nil) in the Statement of Profit and Loss.

11 RESEARCH AND DEVELOPMENT

The Company has separate in-house research & development set up which is involved in new product development, new process development etc. The details of R&D expenditure are as under:

12 I) Consequent to implementation of SAP, the method of valuation of inventories of raw material has to change from First In First Out to Moving Average Price. Impact of such change in method of valuation has not been ascertained and previous year’s financials has not been restated for the same.

II) During the year company has received share application money under ESOS scheme but the company has not been able to allot 4611 shares out of 253899 shares within the prescribed time limit of the Companies Act, 2013 due to technical problem in the respect this transaction, further the company decided to allot these shares during the upcoming vesting in financial year 2018-19.

13 EXPLANATION OF TRANSITION TO IND AS

These financial statements, for the year ended 31 March 2018, are the first financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with Indian GAAP

Accordingly, the Company has prepared financial statements which comply with IndAs applicable for periods ending 31 March 2018, together with the comparative period data as at and for the year ended 31 March 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening Balance Sheet was prepared as at 1 April 2016, the Company’s date of transition to IndAS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the Balance Sheet as at 1 April 2016 and the financial statement as at and for the year ended 31 March 2017.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has elected to apply the following exemptions:

1. investment in subsidiaries to be carried at cost

The Company has elected to carry the investment in subsidiaries at cost as at the transition date.

Exceptions applied 1. Estimates

Upon an assessment of the estimates made under Indian GAAP, the Company has concluded that there was no necessity to revise such estimates under Ind AS, except where estimates were required by Ind AS and not required by Indian GAAP

Explanation of transition to ind AS

An explanation of how the transition from Indian GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flow is set out in the following tables and notes that accompany the tables. The reconciliations include- equity reconciliation as at 1 April 2016;

- equity reconciliation as at 31 March 2017;

- profit reconciliation for the year ended 31 March 2017; and There are no material adjustments to the cash flow statements

EXPLANATION (RECONCILIATION) OF TRANSITION TO INDIAN ACCOUNTING STANDARDS (IND AS)

(a) Under Indian GAAP, Provision for proposed dividend is accounted by debiting reserves and surplus in the year for which dividend is declared. Under Ind AS, Entity shall not recognise dividend declared after reporting period as liability. Accordingly provision for proposed dividend is reversed.

(b) Under Indian GAAP, long term liability is stated at historical cost. Under Ind AS, long term liability is fair valued on initial recognition and subsequently measured at amortised cost.

(c) Under Indian GAAP, financial liabilities are initially recognised at cost. Also,the transaction cost incurred to originate the loan is expensed out immediately.Under Ind AS, transaction costs incurred, in connection with interest bearing loans and borrowings, are netted off against the intial recognition of financial liability and charged to statement of profit and loss using effective interest rate.

(d) Under Indian GAAP, actuarial gains and losses and return on plan assets on post-employment defined benefit plans are recognised immediately in statement of profit and loss. Under Ind AS, remeasurements which comprise of actuarial gains and losses, return on plan assets and changes in the effect of asset ceiling, if any, with respect to post-employment defined benefit plans are recognised immediately in other comprehensive income (OCI). Further, remeasurements recognised in OCI are never reclassified to statement of profit and loss.

(e) Under Indian GAAP, the company had measured hedged foreign currency loan liability at a foreign exchange rate fixed by the company’s bank. Under Ind AS, foreign currency loan liability is measured at closing foreign exchange rate as on the reporting date with unrealised/ realised foreign exchange differences recognised in the statement of profit and loss. Further, derivative instrument is separately recorded and measured at fair value through profit and loss.

(f) Under Indian GAAP, a company uses intrinsic value approach to measure the cost of share based payments. Under Ind AS, costs of share based payments are recorded based on the fair value of employee stock option.

(g) Under Indian GAAP, long term investments are carried at cost less provision for diminution in value, if any. Under Ind AS, investment in equity shares classified as ‘Fair value through other comprehensive income’ are measured at fair value at each reporting date. The subsequent changes in fair value of such investments are recognised in other comprehensive income. Further, gains or losses recognised in other comprehensive income are never reclassified from equity to Statement of Profit or Loss.

(h) On transition to Ind AS, the Company has recognised provision of loss allowance on trade receivables measured at amortised cost based on the expected credit loss model as required by Ind AS 109. Consequently, trade receivables measured at amortised cost reduced with a corresponding decrease in retained earnings on the date of transition.

(i) ”Under Indian GAAP, the deferred tax is recognised using the income statement / balance sheet approach i.e. reflecting the tax effects of timing differences between accounting income and taxable income for the period. Under Ind AS, the Company has recognised deferred taxes using the balance sheet approach i.e. reflecting the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. Also, deferred taxes is recognised on account of the above mentioned changes explained in notes.”

(j) Other reclassification adjustments:

1 Under Indian GAAP, excise duty is reduced from gross revenues to report revenues net of excise duty. Under Ind AS, revenue includes gross inflows of economic benefits received by a company for its own account. Excise duty collected, which is a duty on manufacture and a primary obligation of the manufacturer is considered as revenue with the corresponding payments to Government as expenditure. This adjustment does not have any impact on statement of profit and loss.

2 Under Indian GAAP, cash discounts and certain customer incentives are often reported as a separate expenditure in Statement of Profit and Loss.Under Ind AS, revenue is measured at the fair value of the consideration received or receivable taking into account the amount of any cash discounts and volume rebates allowed by the company.

3 Under Indian GAAP, dividend proposed after the date of the financial statements but prior to the approval of financial statements is considered as an adjusting event, and a provision for dividend is recognised in the financial statements of the period to which the dividend relates. Under Ind AS, dividend declaration is considered as a non-adjusting event and provision for dividend is recognised only in the period when the dividend is approved by the shareholders in annual general meeting.

14 Previous year figures have been regrouped whereever considered necessary to make them comparable to those of current year.

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Mar 31, 2015

(a) Rights, preferences and restrictions attached to shares Equity Shares of Rs, 5/- each:

The Company has one class of equity shares having a par value of Rs, 5/- per share. Each shareholder is eligible for one vote per share held.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Notes

(a) Long-term borrowings include secured term loans at floating interest rates from State Bank of India, Bank of India, Bank of Maharashtra & Bajaj Finance Ltd which are repayable through monthly/ quarterly installments. State Bank of India & Bank of Maharashtra loans are secured by a first parri-passu charge by way of equitable mortgage on the existing fixed assets except Khed land which has exclusive charge of Bajaj Finance Ltd. Of these, Rs, 151,292,065/- (PY Rs, 6,23,00,000/-) are classified as current liabilities being repayable before March 31, 2016.

Total number of installments = 231

Number of installments outstanding as at March 31, 2015 = 200 (PY = 62)

Notes

(a) Short-term borrowings includes cash credit facilities availed from State Bank of India, Bank of India, Kotak Mahindra Bank and Bank of Maharashtra. These loans are secured in favour of all the aforementioned banks by a first parri-passu charge by way of hypothecation of all stocks and receivables and a second parri-passu charge by joint Deed of Hypothecation on all fixed assets of the Company.

(b) Unsecured term loans from banks includes loans obtained from Kotak Mahindra Bank for funding purchase orders. These loans, obtained at floating interest rates, are repayable through weekly instalments.

Number of installments outstanding as at March 31, 2015 = 1 (PY = 8)

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management

1. Related Party Disclosure

Atlas Castalloy Limited Associates Company Associates Company

Silicon Meadows Engineering Ltd. Associates Company Associates Company

Alicon Holding - GmbH Wholly Owned Subsidiary Wholly Owned Subsidiary

lllichmann Castalloy - GmbH Wholly Owned Subsidiary Wholly Owned Subsidiary

lllichmann Castalloy - sro Wholly Owned Subsidiary Wholly Owned Subsidiary

Shailendrajit Rai - Managing Director Key Managerial Peronnal Key Managerial Peronnal

Rajeev Sikand - Group Chief Executive Officer Key Managerial Peronnal Key Managerial Peronnal

Vimal Gupta - Group Chief Financial Officer Key Managerial Peronnal Key Managerial Peronnal

P S Rao - Company Secretary Key Managerial Peronnal Key Managerial Peronnal

*** Revenue expenditure comprises of Cost to R&D employees, material cost, travelling expenses and utilities.

PARTB

1. Segment Reporting

The Company has single business segment viz. that of aluminum castings. Accordingly, disclosure requirements as per Accounting Standard 17 "Segment Reporting" specified in the Companies (Accounting Standard) Rules 2006 are not strictly applicable to the Company so far as standalone financial statements of the Company are concerned. However, in accordance with paragraph 4 of Accounting Standard 17 (Segment Reporting), details of segment report have been included in Consolidated Financial Statements.

2. Excise Duty

Excise Duty being recovered from the customers through sales invoices raised on them during the year, have been reported separately as a deduction from 'Income from Operations' in the statement of Profit and Loss.

3. Borrowing

Of total borrowing cost of Rs, 1,715.28 Lacs (PYRs, 1,021.78 Lacs) incurred during the year, Rs, 73.16 Lacs (FYRs, Nil) have been capitalized, as identified/relatable to the particular qualifying assets.

4. Sundry Creditors

Sundry Creditors include a sum of Rs, 1,645.40 Lacs (PYRs, 1,645.40 Lacs) as payables which are not expected to be settled in medium term. During the year, the Company was able to procure confirmation from some of its suppliers for goods and services as to their status and classification for each of them under the Micro, Small and Medium Enterprises Act, 2006 (Act). The principal amount remaining unpaid to the suppliers covered under the Act as at the end of the year have been, to the extent information available, shown and classified separately under schedule 11 of Current Liabilities. Also, disclosed below are the amount due to the suppliers beyond the appointed date and amount of interest accrued and remaining unpaid as at the end of the year.

5. All current assets, loans and advances are stated at values realizable in the ordinary course of business and all known liabilities are adequately provided for in the opinion of the board.

6. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been include in the Consolidated Financial Statements.

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Mar 31, 2013

1. Employee Benefits

The Company has adopted Accounting Standard 15 "Employee Benefits". The disclosures required by the Standard are given below:

2. Commitment and Contingent Liabilities

Commitments

Estimated amount of contracts remaining to be executed on capital 152.21 336.09

Contingent Liabilities

a) Letters of Credit issued by the bank against purchase of goods 282.82 1,401.16

b) Performance and Financial Guarantees issued by the banks 344.40 296.62

c) Customs and related duties for non fulfillment of Export Obligation 418.52 744.20

d) Pending Case in local Civil Court 349.67 353.63

Total 1,395.41 2,795.61

3. Disclosure as per Clause 32 of the Listing Agreements with the Stock Exchanges Loans and advances in the nature of loans given to subsidiaries, associates and others and investment in shares of the Company by such parties:

PART B

1. Segment Reporting

The Company has single business segment viz. that of aluminium castings. Accordingly, disclosure requirements as per Accounting Standard 17 "Segment Reporting" specified in the Companies (Accounting Standard) Rules 2006 are not strictly not applicable to the Company so far as standalone financial statements of the Company are concerned. However, in accordance with paragraph 4 of Accounting Standard 17 (Segment Reporting), details of segment report have been included in Consolidated Financial Statements.

2. Excise Duty

Excise Duty being recovered from the customers through sales invoices raised on them during the year, have been reported separately as a deduction from ''Income from Operations'' in the statement of Profit and Loss.

3. Borrowing Cost

Of total borrowing cost of Rs. 1,042.63 Lacs (PY Rs. 1,230.03 Lacs) incurred during the year, Rs. 106.71 Lacs (PY Rs. 23.82) have been capitalized, as identified/relatable to the particular qualifying assets.

4. Sundry Creditors

Sundry Creditors include a sum of Rs. 1,645.40 Lacs (PY Rs. 1,675.75 Lacs) as payables which are not expected to be settled in medium term. During the year, the Company was able to procure confirmation from some of its suppliers for goods and services as to their status and classification for each of them under the Micro, Small and Medium Enterprises Act, 2006. The principal amount remaining unpaid to the suppliers covered under the Act as at the end of the year have been, to the extent information available, shown and classified separately under schedule 9 of Current Liabilities. Also, disclosed below are the amount due to the suppliers beyond the appointed date and amount of interest accrued and remaining unpaid as at the end of the year.

5. All current assets, loans and advances are stated at values realisable in the ordinary course of business and all known liabilities are adequately provided for in the opinion of the board.

6. The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

CORPORATE INFORMATION

Alicon Castalloy Limited (the Company) is listed on the Bombay Stock Exchange and National Stock Exchange. It is engaged in the manufacturing and selling of aluminium die castings.

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Mar 31, 2012

A. RIGHTS, PREFERENCES AND RESTRICTIONS ATTACHED TO SHARES Equity Shares of Rs 5.00 each:

The Company has one class of equity shares having a par value of Rs.5.00 per share. Each shareholder is eligible for one vote per share held.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Notes

a. Long-term borrowings includes secured term loans at floating interest rates from Axis Bank and State Bank of India which are repayable through monthly/ quarterly installments. As per repayment schedule, these loans will be repaid in F.Y. 2013-14 and F.Y. 2015-16. These loans are secured by a first parri-passu charge by way of equitable mortgage on the existing fixed asset s. Of these, Rs. 123,514,788 (PY Rs. 120,810,762) are classified as current liabilities being repayable before March 31, 2013.

b. Long-term borrowings includes unsecured term loans from Bajaj Finance Limited repayable through monthly instalments. Of the above loans, two loans are borrowed at fixed interest rates of 12.50% and one loan is at at a floating interest rate. Repayment of these loans are due in 2012-13 and 2013-14. Of these, Rs. 33,652,274 (PY Rs. 49,470,320) are classified as current liabilities being repayable before March 31, 2013.

Notes

a. Short-term borrowings includes cash credit facilities availed from State Bank of India, ING Vysya Bank and Bank of Maharashtra. These loans are secured in favour of all the aforementioned banks by a first parri-passu charge by way of hypothecation of all stocks and receivables and a second parri-passu charge by joint Deed of Hypothecation on all fixed assets of the Company.

b. Unsecured term loans from banks includes loans obtained from Kotak Mahindra Bank for funding purchase orders. These loans, obtained at floating interest rates, are repayable through weekly instalments. Repayment of this loan is due in 2012-13.

Notes:

i. The Company has no dues to suppliers registered under Micro,Small and Medium Enterprises Development Act, 2006 ('MSMED Act')

ii. Sundry Creditors includes amounts payable to related parties Rs. 136,866,917 (PY: Rs. 148,703,576)

VIII, COMMITMENT & Contingent LIABILITIES Rs. (In Lacs) Rs. (In Lacs)

COMMITMENT

a. Estimated amount of contracts remaining to be executed on capital accounts 336.09 640.15

CONTINGENT LIABILITIES

b. L/C issued by the bank for the import of Machinery & Goods 1,401.16 232.28

c. Customs and related duties for non fulfillment of Export Obligation 748.90 575.14

d. Pending Case in local Civil Court 353.63 353.63

TOTAL 2,503.69 2,366.31

i. segment reporting

The Company has a single business segment viz. that of aluminium castings. Accordingly, disclosure requirements as per Accounting Standard 17 "Segment Reporting” specified in the Companies (Accounting Standard) Rules 2006 are not applicable to the standalone financial statements of the Company. However, in accordance with paragraph 4 of Accounting Standard 17 (Segment Reporting), segment disclosures have been included in the consolidated financial statements of the Company.

ii. excise duty

Excise Duty being recovered from the customers through sales invoices raised on them during the year, have been reported separately as a deduction from 'Rev- enue from Operations' in the Statement of Profit and Loss.

iii. borrowing costs

Of total borrowing cost of Rs. 1230.03 Lacs (PY: Rs. 867.28 Lacs) incurred during the year, Rs. 23.82 Lacs (PY: Rs. Nil) have been capitalized, as identified/relatable to the particular qualifying assets.

iv. sundry creditors

During the year, the Company was able to procure confirmation from some of its suppliers for goods and services as to their status and classification for each of them under the Micro, Small and Medium Enterprises Act, 2006 (Act). The principal amount remaining unpaid to the suppliers covered under the Act as at the end of the year have been, to the extent information available, shown and classified separately under Note 8 "Trade Payables”. Also, disclosed below are the amount due to the suppliers beyond the appointed date and amount of interest accrued and remaining unpaid as at the end of the year.

v.

Bank Balances includes unclaimed dividends of Rs. 2.32 Lacs [PY: Rs. 2.85 Lacs]. The Company does not have any balances with non-scheduled banks.

vi.

All current assets, loans and advances are stated at values realisable in the ordinary course of business and all known liabilities are adequately provided for in the opinion of the board.

vii.

The financial statements for the year ended March 31, 2011 were prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Con- sequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements

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Mar 31, 2010

1. Intangible Assets

Intangible Assets are recognized only if it is probable that the future economic benefits that are attributable to the assets will flow to the enterprises and the cost of the assets can be measured reliably. The intangible assets are recorded at cost and are carried at cost less accumulated amortisation and accumulated impairment losses ascertained, if any.

2. Impairment of Assets

An asset is treated as impaired when identified and when the carrying amount of the asset exceeds it recoverable amount. An impairment loss is charged to the Profit and Loss Account in the year in which an asset is identified as impaired. The impairment loss recognised in prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

However, post demerger, various assets have been identified as impaired and impairment joss, being excess of the carrying amount over fair values of the assets have been written of to Business Construction Reserve.

3. investments

All Long-term investments, which are unquoted, are stated at cost.

4. Inventories

i. Raw Materials

Inventory of Raw materials are valued at cost. Cost represents purchase price, net of recoverable taxes, determined with reference to last purchases.

ii. Semi - Finished Goods

Inventory of Semi-finished goods are valued at lower of cost of net realisable value. Cost comprises of material cost and conversion cost.

Conversion cost includes cost of consumables, direct labour, and variable overheads in proportion to direct labour and fixed cost in respect of production facilities.

During the year, the Company has changed its policy and method of valuation of inventories of all items of semi-finshed to lesser of cost or net realizable value. The change in policy is as required by the statue and thus is in compliance of the policy and method of valuation prescribed under the Accounting Standard (AS-2) Valuation of Inventories

Had there been no change in the accounting policy in respect of valuation of inventories, the Companys profit before taxes would have been more by Rs. 43.79 lakhs.

iii. Consumables, Stores and Spares

Consumables Stores and Spares are valued at cost. Cost represents purchase price, net of recoverable taxes, and is determined on FIFO basis.

iv. Dies and Moulds

The expenditure on development of Dies and Moulds commissioned on behalf of the customers is carried in the books at the appropriate cost of development, as Current Assets, subject to such cost not exceeding the maximum value contracted to be paid by the customer. Income from development and development cost of such dies is accounted for in the year in which they are completed and invoiced.

The unfunded cost of such dies, if any, is written off to the revenue in the event of their commercial obsolescence.

v. Inter-division Transfers

Interdivisional transfers are valued, either at ex-factory cost of the transfer or unit/division, net of recoverable taxes and are recorded on physical receipt.

5. Transactions in Foreign Currencies

Foreign currency transactions are recorded at the exchange rate prevailing as at the date of transaction except sales which are recorded at a rate notified for a month, by the customs, for invoice purposes.

All exchange differences arising on restatement of all monetary foreign currency assets and liabilities are credited or debited, as the case may be, to the Profit and Loss Account.

6, Derivative instruments

Derivative contracts are entered into by the company only based on underlying transaction.

Forward and Options contract are fair valued at each reporting date and the resulting gain or loss from these transaction are recognized in the Profit and Loss Account of such reporting period.

7. Taxes on income

Income tax expense comprises current tax and deferred tax charge /credit.

Current tax is the amount of tax worked out on the taxable income for the year determined in accordance with the relevant provisions of the Income Tax act, 3961 in force and is on an estimate basis.

Deferred tax is recognised subject to the consideration of prudence, on timing differences between accounting income and taxable income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets, if any, are recognised, only when there is virtual certainty that sufficient future taxable income will be available against which such deferred tax assets can be realised.

8. Employee Benefits Defined contribution plans

Contributions to defined contribution approved Provident Fund and Pension Fund, defined contribution schemes, are made at pre-determined rates and charged to the Profit and Loss Account, as incurred. Post-employment benefit plans Contributions to defined contribution retirement benefit schemes are recognised as an expense when employees have rendered services entitling them to contributions using Projected Unit Credit Method, with actuarial valuations being carried out by an independent valuer. Actuarial gains and losses have been recognised in full in the profit and loss account for the year. Past service cost has also been recognised to the extent that the benefits are already vested. The retirement benefit obligation recognised in the balance sheet represents the present value of the defined benefit obligation as adjusted for as reduced by the fair value of scheme assets. Short-term employee benefits

The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees is recognised during the period when the employee renders the service. These benefits include compensated absences such as paid leave, performance incentives, bonus, ex-gratia etc.

Long-term employee benefits

Compensated absences which are not expected to occur within twelve months after the end of the period in which the employee renders the related services are recognised as an actuarial liability determined by an independent valuer being the present value of the defined benefit obligation at the balance sheet date.

The liability towards Workmen Compensation is also funded with New India Insurance and contribution made towards this is charged to the Profit and Loss Account.

9. Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalised as a part of the cost of such assets. All other borrowing costs incurred and which are not identified to the particular qualifying assets is charged to revenue.

10. Leases

The Companys rental/hire arrangements are in respect of operating leases for guest-houses and a few machineries. The arrangements normally range between eleven months to twenty- two months renewable by mutual consent on agreed terms and thus are short term nature and no significant obligations are attached thereto.

11. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognised when there is a present obligation as a result of past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognised but are disclosed in the notes to accounts. Contingent Assets are neither recognised nor disclosed in the financial statements.