Notes to Accounts of Cosmo Ferrites Ltd.

Mar 31, 2025

2.9 Earnings per Share

Basic earnings per share is calculated by dividing
the net profit for the year attributable to equity
shareholders (after deducting the redeemable
preference share dividend) by the weighted
average number of equity shares outstanding
during the year.

Diluted earnings per share is calculated by
dividing the net profits attributable to equity
shareholders (after deducting dividend on
redeemable preference shares) by the weighted
average number of equity shares outstanding
during the year (adjusted for the effects of
dilutive options).

2.10 Impairment of Non-Financial Assets

The company assesses at each reporting date
weather there is an indication that an asset may
be impaired.If an indication exists the Company
estimates the assets recoverable amount and
writes down the assets value to its recoverable
amount.

2.11 Government grants, subsidies and incentives

Government grants, subsidies and incentives are
recognised where there is reasonable assurance
that it will be received and all attached
conditions will be complied with.

* Rupee Term Loans are secured by first equitable mortgage of immovable assets both present and future and
hypothecation of moveable assets (save and except book debts) charged to rank pari-passu inter se and subject to
prior charges created for working capital loans and assets exclusively charged.

** Assets purchased under Hire Purchase Finance Schemes are hypothecated to the financers.

# Rupee Term Loan from non banking finance companies are further secured by second pari passu charge on the
entire current assets of the company and corporate guarantees from the promoter group companies.

*** Preference shares are non convertible, cumulative and redeemable at end of 20 years from the date of allotment
i.e. 29.01.2014 and 22.08.2014 or earlier at the option of the company. Dividend @ 10% is payable on these shares.

36. ADDITIONAL REGULATORY INFORMATION

i) Title Deeds of all Immovable properties are held in the name of the company

ii) The company does not have any investment property.

iii) During the year the company has not revalued its property,plant and Equipment (including right -of-Use Assets)

iv) During the year the company has not revalued its intangible assets

v) During the year the company has not granted any Loan or advance in the nature of loans to promoters, directors,

KMPs and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other
person that are:

a. repayable on demand : or

b. without specifying any terms or period of repayment,

vi) The company does not have Intangible assets under development

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

viii) The company has borrowings from banks or financial institiution on the basis of security of current assets and
quarterly returns or statement of current assets filed by the company with banks or financial institutions are in
agreement with books of accounts.

ix) The company is not declared wilful defaulter by any bank or financial Institution or other lender.

x) The company has not entered into any transaction with companies struck off under section 248 of the Companies
Act, 2013 or section 560 of Companies Act, 1956.

xi) No charges or satisfaction yet to be registered with ROC beyond the statutory period.

xii) The compnay has complied with the number of layers prescribed under clause (87) of section 2 of the act read
with companies (Restriction on number of layers) rule 2017.

xii) During the year any Scheme of Arrangements has not been approved by the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013.

xiii) Utilisation of Borrowed funds and share premium:-

A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries)
with the understanding (whether recorded in writing or otherwise) that the Intermediary shall

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

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

B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding
Party) with the understanding (whether recorded in writing or otherwise) that the company shall

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

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

37 Interest on promoter''s unsecured loan for the period 01.07.2024 to 31.03.2025 amounting to Rs 144 lakhs has been
conditionally waived by the promoters with the right to recompense if the financial position of the company allows such
payment subsequently.

38 Consequent to the amendmend of sec 112 of the income tax act, deferred tax liability in respect of re-statement of land
at fair value in FY 2016-17 has been updated resulting in an increase of Rs. 96 lacs in the deferred tax expenses in the
year ended Mar''25 and corresponding reduction of profit after tax for the year ended Mar''25.

39 Related Party Disclosure:

In accordance with the required Indian Accounting Standard (Ind As -24) on related part disclosure where control exist
and where transactions have taken place and description of the relationship as identified and certified by management
are as follows:

List of related parties and relationships:

A. Key management personnel

a) Mr. Ambrish Jaipuria, Executive Director

b) Mr. Janardhan Pralhadrao Gupta, Independent Director (ceased w.e.f. 23.05.2023)

c) Mr. Rajesh Kumar Gupta, Independent Director

d) Mrs. Himalyani Gupta, Independent Director

e) Mr. Pankaj Poddar, Non Independent Director

f) Mr. Neeraj Kumar Sharma, Independent Director (ceased w.e.f. 07.01.2025)

g) Mr. Anshuman Sood, Independent Director (w.e.f. 14.08.2023)

h) Mr. Ram Agarwal, Independent Director (w.e.f. 06.03.2025)

i) Mr. Sanjiv Jindal, Chief Financial Officer (upto 31.05.2023)

j) Mr. Rishab jain, Chief Financial Officer (w.e.f. 01.06.2023 and upto 01.11.2023)

k) Mr. Sanjay Gupta, Chief Financial Officer (w.e.f. 23.11.2023)

l) Mr. Rahul Das, Company Secretary (w.e.f. 09.02.2023 and upto 27.10.2023)

m) Ms. Ekta Verma, Company Secretary (w.e.f. 19.01.2024 and upto 17.05.2024)

n) Ms. Niharika Gupta, Company Secretary (w.e.f. 18.05.2024)

40 It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of components of
electrical & electronic products which are governed by the same set of risks and returns the same are considered to constitute a
single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered
Accountants of India.

41 Fig ures for the previous period have been regrouped / rearranged wherever considered necessary.

As per our report of even date annexed

For Suresh Kumar Mittal & CO., Ambrish Jaipuria Rajesh Kumar Gupta

Chartered Accountants Director Director

Reg. No. 500063N DIN: 00214687 DIN: 08615199

Ankur Bagla Sanjay Gupta

Partner Chief Financial Officer

Membership No. 521915 Membership No. 095586

Place: New Delhi
Date : May 23, 2025

---

Mar 31, 2016

Notes:-

The above preference shares are non convertible, cumulative and redeemable at end of 10 years from the date of allotment i.e. 29.01.2014 and 22.08.2014 or earlier at the option of the company. Dividend @ 10% is payable on these shares.

Details of shares in the company held by each shareholder holding more than 5% of shares is as under:

* Rupee Term Loans are secured by first equitable mortgage of immovable assets both present and future and hypothecation of moveable assets (save and except book debts) charged to rank pari-passu inter se and subject to prior charges created in favour of the company''s for working capital loans and assets exclusively charged.

** Assets purchased under Hire Purchase Finance Schemes are hypothecated to the financers.

There are no amounts due or payable towards principal and interest to suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006.

Includes liabilities of Rs. 69.33 lacs (previous period Rs. 154.43 lacs) in respect of capital goods.

Amount payable to related party Rs. 12.15 lacs (previous period Rs. 26.50 lacs).

There are no amounts due and outstanding to be credited to Investor Education and Protection Fund as on 31.03.2016. Amount payable to related party Rs. 24.79 lacs (previous period Rs. 5.72 lacs).

Addition to plant and machinery include exchange fluctuation Rs. 48.15 lacs (previous period Rs. 4.66 lacs)

* Represents additional depreciation for the period up to 31st March, 2014 on revision of useful life of fixed assets adjusted against opening balance of retained earnings.

* This pertains to long term liability only. Actual payments (under the various heads) incurred over the intervaluation period are not included.

The Estimates of rate of future salary increase takes into account inflation, seniority, promotion and other relevant factors on long term basis. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of liability. The above information is certified by the actuary.

1 Related Party Disclosure:

A Names of related parties and description of relationship

(i) Key managerial personnel

Shri Ambrish Jaipuria, Executive Director

(ii) Enterprises over which key managerial personnel of the company and their relatives have significant influence Cosmo Films Ltd.

Sterling Oxide Ltd.

Gayatri & Annapurna Super Sadiq Enterprises Pvt Ltd.

Andheri Properties & Finance Ltd.

Pravasi Enterprises Ltd.

2 It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of components of electrical & electronic products which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

3 VALUE OF IMPORTED / INDIGENOUS RAW MATERIALS, STORES & SPARES CONSUMED

4 FORWARD CONTRACTS

The company has taken forward cover for hedging the business related exposures due to imports which are not speculative in nature. As, the contracts are specific to a particular liability, the liability has been booked at the contract rate and no further profit / loss is anticipated.

5 Capital work in progress includes capital advances of Rs 2.92 lacs (previous period Rs. 0.27 lacs)

6 Figures for the previous period have been regrouped / rearranged wherever considered necessary.

---

Mar 31, 2015

1. TRADE PAYABLES

There are no amounts due or payable towards principal and interest to suppliers covered under Micro, Small andMedium Enterprises Development Act, 2006.

Includes liablities of Rs. 154.43 lacs (previous year 90.02lacs) in respect of capital goods.

Amount payable to related party Rs. 26.50 lacs (previous year Rs.11.99 lacs).

2. CONTINGENT LIABILITIES AND COMMITMENTS

(to the extent not provided for)

Amount (Rs. Lacs)

Particulars As at 31.03.2015 As at 31.03.2014

Contingent Liabilities

a) Claims against the company not 20.0017.00 acknowledged as debts

b) Taxation matters disputed in appeals/rectification against

which payments made Rs. 3.72 3.72 23.99 (previous period Rs. 13.72 lacs)

c) Bank Guarantee 36.13 34.00

d) Bill discounted with Banks 159.58 292.28

e) Arrears of dividend on cumulative preference shares and tax thereon 19.36 - Commitments

a) Estimated amount of contracts remaining to be executed on capital account 169.31 997.84 (net of advances)

b) Letter of credits opened for which the material has not yet been shipped 166.90 448.70

3. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4. RELATED PARTY DISCLOSURE:

A Names of related parties and description of relationship

(i) Key managerial personnel Shri Ambrish Jaipuria, Executive Director

(ii) Enterprises over which key managerial personnel of the company and their relatives have significant influence Cosmo Films Ltd. Sterling Oxide Ltd. Gayatri & Annapurna Super Sadiq Enterprises Pvt Ltd. Pravasi Enterprises Ltd.

5. It is the management's opinion that since the company is exclusively engaged in the activity of manufacture of soft ferrites and pre-calcined ferrite powder which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

6. FORWARD CONTRACTS

The company has taken forward cover for hedging the business related exposures due to imports which are not speculative in nature. As, the contracts are specific to a particular liability, the liability has been booked at the contract rate and no further profit / loss is anticipated.

7. Capital work in progress includes capital advances of Rs. 0.27 lacs (previous period Rs. 61.44 lacs)

8. Effective 1st April, 2014, the company has revised its estimated useful life of fixed assets, wherever appropriate, on the basis of useful life specified in Schedule II of the Companies Act, 2013. The carrying amount as on 1st April, 2014 is depreciated over the revised remaining useful life. As a result of these changes, the depreciation charged for the period ended 31st March, 2015 is lower by Rs. 53.38 lacs and the effect relating to the period prior to 1st April, 2014 is Rs. 23.08 lacs (net of deferred tax asset of Rs. 11.09 lacs) which has been adjusted against opening balance of retained earnings.

9. Preoperative expenditure capitalised including under capital work in progress are as under:

10. Figures for the previous period have been regrouped / rearranged wherever considered necessary.

---

Mar 31, 2014

1. TRADE PAYABLES

There are no amounts due or payable towards principal and interest to suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006.

Includes liablities of Rs. 90.02 lacs (previous year Nil) in respect of capital goods.

Amount payable to related party Rs. 5.57 lacs (previous year Rs. 39.89 lacs).

There are no amounts due and outstanding to be credited to Investor Education and Protection Fund as on 31.03.2014. Amount payable to related party Rs. 6.42 lacs (previous year Rs. 3.89 lacs).

2 CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

Amount (Rs. Lacs)

Particulars As at As at 31.03.2014 31.03.2013

Contingent Liabilities

a) Claims against the company not acknowledged as debts 17.00 31.72

b) Taxation matters disputed in appeals/ rectification against which payments made Rs.10.00 lacs (previous year Rs. 13.54 lacs) 23.99 51.14

c) Bank Guarantee 34.00 20.00

d) Bill discounted with Banks 292.28 210.57

Commitments

a) Estimated amount of contracts remaining to be executed on capital account (net of advances) 997.84 -

b) Letter of credits opened for which the material has not yet been shipped 448.70 38.47

3. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

* This pertains to long term liability only. Actual payments (under the various heads) incurred over the intervaluation period are not included.

The Estimates of rate of future salary increase takes into account inflation, seniority, promotion and other relevant factors on long term basis. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of liability. The above information is certified by the actuary.

4. Related Party Disclosure:

A Names of related parties and description of relationship

(i) Key management personnel -

Shri Ambrish Jaipuria, Executive Director

(ii) Associate companies -

Cosmo Films Ltd.

Sterling Oxide Ltd.

Gayatri & Annapurna Super Sadiq Enterprises Pvt Ltd.

Pravasi Enterprises Ltd.

5 It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of soft ferrites and pre-calcined ferrite powder which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

6 FORWARD CONTRACTS

The company has taken forward cover for hedging the business related exposures due to imports which are not speculative in nature. As, the contracts are specific to a particular liability, the liability has been booked at the contract rate and no further profit / loss is anticipated.

7 Capital work in progress includes capital advances of Rs.61.44 lacs (previous year Rs. Nil)

8 Figures for the previous year have been regrouped / rearranged wherever considered necessary.

---

Mar 31, 2013

1. Related Party Disclosure:

A Names of related parties and description of relationship

(i) Key management personnel - Shri Ambrish Jaipuria, Executive Director (ii) Associate companies - Cosmo Films Ltd.

Sterling Oxide Ltd.

Super Sadiq Enterprises Pvt Ltd.

Pravasi Enterprises Ltd.

2 It is the management''s opinion that since the company is exclusively engaged in the activity of manufacture of soft ferrites and pre-calcined ferrite powder which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

3. Figures for the previous year have been regrouped / rearranged wherever considered necessary.

---

Mar 31, 2012

* Rupee Term Loans are secured by first equitable mortgage of immovable assets both present and future and hypothecation of moveable assets (save and except book debts) charged to rank pari-passu inter se and subject to prior charges created in favor of the company's for working capital loans and assets exclusively charged.

** Assets purchased under Hire Purchase Finance schemes are hypothecated to the financiers.

1. TRADE AVAILABLES

There are no amounts due or payable towards principal and interest to suppliers covered under Micro, Small and Medium Enterprises Development Act, 2006.

Amount payable to related party Rs. 1 16.59 lacs (Previous year Rs. 6l.26lacs).

2. CAPITAL WORK IN PROGRESS

Opening Capital work in progress of Rs 525.48 lacs along with expenditure incurred during the year has been capitalized on completion of expansion project.

3. CONTINGENT LIABILITIES AND COMMITMENTS

(to the extent not provided for)

Particulars Amount (Rs. Lacs)

As at 31.03.2012 As at 31.03.2011

Contingent Liabilities

a) Claims against the company not acknowledged as debts 31.97 31.97

b) Income Tax & Excise duty demands disputed in appeals and against which payments made Rs. 10.00 lacs (previous year 16.21 lacs) 30.27 57.57

Bank Guarantee 20.00 9.75

d) Bill discounted with Banks 75.85 231.71 Commitments

a) Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for - 147.99

b) Letter of credits opened for which the material has not yet been shipped 150.55 19.57

4. In the opinion of the board the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

* This pertains to long term liability only. Actual payments (under the various heads) incurred over the intercalate on period are not i included.

The Estimates of rate of future salary increase takes into account inflation, seniority, promotion and other relevant factors on long term basis. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that at matches that of liability. The above information is certified by the actuary.

5. It is the management's opinion that since the company is exclusively engaged in the activity of manufacture of soft ferrites and proclaimed ferrite powder which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on ''Segment Reporting" issued by the Institute of Chartered Accountants of India.

6. FORWARD CONTRACTS

The company has entered into forward contracts for hedging the business related exposures due to imports which are not speculative in nature. As, the contracts are specific to a particular liability, the liable ity has been booked at the contract rate and no further profit/ loss is anticipated.

---

Mar 31, 2010

Current Year Previous Year

Rs. 000 Rs. 000

1. Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for 9503 161

2. Contingent Liabilities not provided for in respect of

a) Claims not acknowledged

by the company 75 60

b) Income Tax & Excise

duty demands disputed in

appeals and against

which payments made 4136 4144

Rs. 1621 thousand (Previous

Year 2953 thousand)

c) Bank Guarantee 4097 4097

d) Dividend on cumulative

redeemable preference shares Nil 1721

3. (i) New cumulative redeemable preference shares (CRPS)

carry dividend @ 10%

(ii) CRPS shall be redeemed within 5 year, from the date of allotment or earlier than that as the company may deem fit.

(iii) The company has redeemed 15% redeemable preference share capital amounting to Rs. 58850 Thousands upto 31-03-2010

4. In respect of investment in share capital of Cosmo Films Limited (CFL) by International Finance Corporation (IFC), the company has given an undertaking to IFC to not to dispose off or create any lien, pledge or encumber its investment in the share capital of CFL as along as monies are due by CFL to IFC and as long as IFC holds any shares in the share capital of CFL without obtaining prior written consent of IFC.

5. a) The company has given an undertaking to Exim Bank not to dispose off its investment in Cosmo Films Ltd., without their prior approval.

b) Secured loans include Term loans/vehicle loans repayable within one year Rs. 42701 Thosands (Previous year Rs.15248 Thousands)

6. There are no amounts due or payable towards principal and interest to suppliers covered under Micro,Small and Medium Enterprises Development Act,2006.

The Estimates of rate of future salary increase takes account of inflation, seniority, promotion and other relevant factors on long term basis.

The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of liability. The above information is certified by the actuary.

7. There is no amount due and outstanding to be credited to Investor Education and Protection Fund as on 31.03.2010

8. It is the managements perception that since the company is exclusively engaged in the activity of manufacture of soft ferrites and pre-calcined ferrite powder which are governed by the same set of risks and returns the same are considered to constitute a single reportable segment in the context of Accounting Standard on "Segment Reporting" issued by the Institute of Chartered Accountants of India.

9. Managerial remuneration:

Salary & Perquisites Rs.1500 Thousand (Previous Year

Rs. 1500 thouosand) Contribution to Provident Rs. 447 thousand (Previous Year

Fund & Other Funds Rs. 447 thousand)

* Includes Companys Contribution to Gratuity Fund and Super Annuation fund.

Note: In the absence of profits, the above remuneration has been paid as minimum remuneration in terms of Schedule XIII of Companies Act 1956.

10. Figures for the previous year have been regrouped/rearranged wherever considered necessary.

11. Figures have been expressed in lacs

12. Production includes captive consumption of intermediary product, Ferrite Powder 1947 MT (previous year 1670 MT)

13. Information pursuant to the provisions of part II and part IV of Schedule VI of the Companies Act, 1956.