Notes to Accounts of Creative Castings Ltd.

Mar 31, 2024

2.13 PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS_

fa} Provisions are recognized when the Com jinny has a present obligation (legal or constructive >, as a result of past events, and if L-t probable that an outflow of resources, Lhal can be reliably estimated, will be required to settle such an obligation.

(b) I''lie anionnt recognized as a provision is die best estimate of the consideration required to senle the present obligation at the balance si beet date, considering tire risks and Line ertam tics surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows {when the effect of the time value of money is material).

(e) When some or all die economic benefits reiMired to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that the reimbursement will be received and the amount of the receivable can be measured reliably.

(d) Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company ora present obligation that arises from past events where it is either not probable i hut an outflow of resources will he required to settle the obligation or a reliable c si i mate of the a mount cannot be tnade, Contingent liabilities and conlingent assets are not recognized but are disclosed in the notes,

2.14 EARNING FEK SHARE _

fa) Basie earnings per share is computed by dividing the pro lit ^; floss) alter lax Attributable to equity shareholders by the weighted average number of equity shares outstanding during the year The weighted average number of equity shares o util a riding during the year is adjusted for bonus issue, bonus c^j Lenient in a rights issue to existing shareholders, share split and reverse share split icon soli datum of shares).

(b) Diluted earn togs per share is computed by dividing the profit (loss) after tux attributable in equity s hare ho idem as adjusted for dividend, interest and other charges to expense or income (net of any attributable (axes) rotating to ihe dilutive potential equity shares, bv the weighted average number of equity shares considered for riming basis earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

2.13 BORROWING COSTS_

rSoiTowing costs directly attributable to the acquisition, construction nr production of qualifying assets, which are assets that necessarily tike it substantial period of time to gel ready for their intended use, arc added to the cos! of those assets, until such time as the assets are substantially ready far their intended use. All other borrowing costs arc recognized in the Statement of Profit and Loss in the period in which they are incurred.

2.16 GOVERNMENT GRANTS 4ND SUBSIDIES_

(a) Goytimmetit grants ant recognized by the company where there is reasonable assurance that the grants will he reedt/ed anti till the attached conditions will he complied with. Revenue grants are recognized in the Statement of Profit and Loss in the same period, in which the related costs are incurred are accounted tor.

(bj Government grants relating to Property, plant and equipment arc recognized ! presented as deferred income .and released to the statement of Profit and Loss over the expected useful lives of the assets concerned,

2.17 FINANCIAL INSTRUMENTS_

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

Financial Assets rind financial liabilities are initially measured at fair value. Transaction tost- that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through statement of profit and jft&s (*PV I''PL’V) are added to or deducted from the fair value of the financial assets nr financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit and loss are recognized immediately in Statement of Profit and Loss.

[Aj Financial Assets

Initial recognition and measurement.

(a) All financial assets are recognized initially at lair value. Transaction costs that are directly attributable lo the acquisition of financial assets (other than financial assets at fair value through statement of profit and loss at fair value through statement of profit and !oss(*FVTTL’) are added to (he fair value of the financial assets, on initial recognition. I''ransaetion cost directly attributable to the acquisition oT financial assets at h''VTPl. is recognized immediately in Statement of Profit and Loss. However, trade receivables that do not contain Significant financial component are measured at transaction costs.

Subsequent measurement

(b) For purposes of subsequent measurement, financial asseis are classified in four categories:

¦ Debt instruments at a mortized cost;

* Debt instruments at fair value through other comprehensive inconite (FVTpCl);

¦ Debt instruments and equity instruments at fair value through profit or loss (J-''VTPLJ;

¦ Equity instruments measured at fair value through other comprehensive income (FVTOC!),

Debt instruments at amortized cost:

(c) A ''debt instrument'' is measured at the amortized cost if both the following conditions are met;

* The contractual terms of the financial asset give rise on specified dates to cash flows that arc solely payments of principal and interest on the principal amount outstanding; and

¦ The asset is held within a business model whose objccti ve is to hold assets for collecting contractual cash flows,

(cfy After initial measurement, such financial assets are subsequently measured at amortized cost using the effective interest rate (.HR} method. Amortized cost is calculated hy taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The El R amortization is included in finance income in the profit or loss. The losses arising from impairment are recognized lit the profit or loss. This category generally applies lo trade and other receivables.

Debt instrument at FVTOC1:

(e) A ‘debt instrument'' is classified as FVTOC1 if both of the following criteria are met:

* ihe objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

¦ Tile asset''s contractual cash flow represents SFPI,

(i) Debt instruments included within the FVTOCI category are measured initially as well as at each repurling date uL fair value. Fair value movements are recognized in the other comprehensive income (OCI).

Deht instillment at FVTPL:

(£) FVTPL is a residual category for debt instrument

(h) Any debi instrument Which does not meet the crilerta for categorizalion as amortized cost or ns FVTOCI, is classified as FVTPL. Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

(ij In addition,. the company may tied to designate a debt instrument, which otherwise meets amortized tost or FVTOd criteria, as FVTPL, 1 loweVet, such election is chosen only ifdoingso reduces oreliminates ti measurement or recognition inconsistency (referred to as ‘accounting mismatch" )-

Derecognition nf financial assets

(j) A financial asset [or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily de-recognized when:

* The rights to receive cash flows from the asset have expired, or

* The company has transferred its rights to receive cash flows from the asset or lias assumed an obligation to pay the received cash Dows in full whhont material delay to a third party under a ‘pass-through¹ finatigemetd and either (a) the company lias transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained substantially all the risks and rewards of the asset, hut has transferred control of the asset.

(k) When (lie company has transferred its rights to receive cash flows from an assel or has entered into a pass-through arrangement, d evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained substantially all the risks and rewards of the asset, nor transferred control of the asset, the company continues to recognized Lhe transferred asset to the extent of (he company''s continuing involvement. In that case, the company also recognizes an associated liability, ''lhe transferred asset and the associated liability are measured on a basis that re fleets the rights and obligations that lhe company has retained.

[BJ Financial liabilities and equity instruments Initial recognition mid measurement

[a) All financial liabilities are recognized initially at fair value pins transaction cost [ifany} that is attributable to Lhe acquisition of the financial liabilities Which is also adjusted,

Subsequent measurement

fb) The measurement uf financial liabilities depends on their classification, as described below:

Loans and borrowings

(c) After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cosi using the Effective Interest Rate (ElR) method. Gains and losses are recognized in profit or loss when the liabilities are de-recognised as well as through the FIR amortization pro^ss. Amortised cost is calculated by taking into account liny discount or premium on acquisition and tees or costs that are ttu integral part of the EIR. The E1R amortization is included as finance costs in the statement of profit and loss,

Trade and other pay ables

(dj These amounts represent liabilities for goods or services provided to the company which tire unpaid at the end of the reporting period. trade and other payable are presented as current liabilities when the payment is due within a period of 12 months from the end of the reporting period. For all trade and other payables classified as current, the carrying amounts approximate fair value due to the short maturity of those instruments. Oilier payables tilling due after I 2 months from the end of lhe reporting period are presented as non- current liabilities and are measured at amortized cost unites designated as fair value through profit and Joss at the inception.

Other financial liabilities at fair value through profit or hiss:

(e) Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Gain or losses on liabilities held for trading or designated as at F VTPJ. are recognized in the profit or loss.

De-recognition of financial liabilities:

(f) A financial liability is de-recognition when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another front rhe 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 tic-recognition of the original Liability and the recognition of a new liability, ''[he difference in the respective carrying amounts is recognized in the statement of profit or loss.

Offsellin-g

(g) Financial assets and financial liabilities are offsei and the net amount is reported in Lhe balance sheet if there is a currently enforceable legal right to offset rhe recognized amounts and there is an intention to settle on a net basis, to realize the assets and settle the Jiabililies simultaneously.

r in pair mcnt of financial assets

(h) The company assesses at each dale of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to lie measured through a loss allowance. The company recognized lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction, for all other financial assets, expected credit losses are measured at an amount equal in the 12-month expected credit losses or at an amount equal to the life time expeeted credit losses, if the credit risk on the financial assei has increased significantly since initial recognition.

2.1ft FA1RVALUE MEASUREMENT*_

(a) The company measures financial instruments at fair value at each balance sheet date. Fair value is the price that would lie 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 die transaction to sell the asset or transfer the liability takes place either: ^f 111 the principal market for (he asset or liability, or

¦ In the absence of a principal market, in the most advantageous market for the asset or liability.

(b| The principal or the most advantageous markcl must be accessible by (he'' company.

(c) The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the as^er or liability, assuming that market participants act in their economic best iuteresi.

fdl A fair value measurement of a noil-financial asset takes into account a market participant’s ability to generate economic benefits by using the assei in ils highest and best use or by soiling if to another market partieipant that would use the asset in its highest and best use.

fej The company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of retec am observable inputs and minimizing the use of unobservable inputs.

(fl All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, ha cud on the lowest level input that is significant to the fair value measure merit as a whole:

* Level 1: Quoted {unadjusted) mark el prices in active markets for identical assets or liabilities;

¦ Level 2. Valuation techniques for which (he lowest level input thn( is significant to the fair value measurement is directly or indirectly observable, or

* Level .1: VjiInation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

ijjjj l-or assets and liabilities that are recognized in (he financial statements on a recurring basts, 1 lie company determines whether transfers have occurred between levels in the hierarchy by re-assessing categorizuliun (based on ihc lowest level input that is significant to the fair value measurement as a who Lei at tire end of each reporting period.

2.19 CASH & CASH EQUIVALENTS -

(a) Cash comprises cash on hand and demand deposits with banks. Cnsh equivalents are short-term balance (with an original maturity of twelvemonths or less from the dale of acquisition), highly liquid investments that arc readily convertible into known amount? of cash and wifi eh are subject to insignificant risk of changes in value,

2.20 SEGMENT-

(a) Operating segments are reported in a manner consists with the interna} reporting provided lo the management of (he company.

Identification of segments

(b) The Company''s management examines the Company''s performance both from a product and geographic perspective. The Company''s operating businesses are organized and managed separately according to die nature of products, with each segments representing a strategic business unit dial offers different products and serves different markets. The analysts of the geographical segments is based on the areas in which major operating divisions of the Company operate.

Intersegment transfers

fc) The company accounts for intersegment stiles on the basis Qf price charged for inter segment transfers.

Allocation of common cost

(d| Common allocable costs ;ire allocated to each segment according to ihe relevant contribution of each Segment to the total common cost.

Unallocated items

(e) Unallocated items include general Corporate income and expenses items which are nol allocated io ativ bus mess segment.

Segment acenunfing policies

{f) The Company prepares its segment information in con form sty wish the accounting policies adopted for preparing and presenting the financial statement of the Company as a whole.

2.21 KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGEMENTS_

faj In the course of applying die policies outlined in all note?. Linder section 2 above, the company is required to make judgment, estimates and assumptions about the* carrying amount of assets and liabilities that are not readily apparent From other sources. The estimates and associated assumptions arc based on historical experience and other factor that are considered to be relevant. Actual results may differ front these estimates,

(b) The estimates and underlying assurt^tioiis are reviewed on an ongoing basis. Revisions to amounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future period.

Useful Jives of property, plant, and equipment

(c) Management reviews the useful lives of property, ptant. and equipment at least onee a year. Such lives are dependent upon an assessment of both the technical lives of the assets and also their likely economic lives based or various internal and external factors including relative efficiency and operating Costs. Accordingly depreciable lives are reviewed annually using the best information available to the Management.

Provisions Arid (labilities

(d) Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds res Lilting front past operations or events (hot can reasonably be estimated, ''lire timing of recognition requires application of judgment to existing facts and cite urn stances which may be subject to change. The amounts are determined by discounting the expected future cash flows at a pre-tax rate rhat reflects current market assessments of the time value of money and the risks specific to the liability.

Conti ngencuH

(e) In (he normal course of business, contingent liabilities may arise from litigation and other claims against the company. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are ireaied as contingent liabilities. Such liabilities are disclosed in the notes bm are noi recognized,

Fair value measurements

(fj When the fair values of ilftaiiciii I assets or financial Liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. .[udgmenLs include coti side rat ion of inputs such as liquidity risk, credit risk And volatility”.

Taxes

(g) Deferred tax assets are recognized for unused tax losses to Lhe extent that it is probable that taxable profit will be available: against which the losses can be utilized. Significant i nun agent ent judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future, tax planning strategies.

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

For J C Ranpura &. Co. Sd.¹''- Sd/''-

F''irm Registration No, H>8b47W Rhinihhui H, Daml Rajan R. Ram tilinniii

Chartered Accountants Chairman $d/- Managing Director

Sttf- DIN; W284065 Siddharth V. Vaishnav DlN:OOI4d2||

KelmiYShcth Executive Director

panncr &j/- pnft mm sa£

M. No. 118411 Efeta It. Bhimiuli Asliok L. Sliekliat

tiDIN: 24 i 18411 RJ7.WRM.5639 Company Secretaiy Chief Financial Officer

Place: Rajkot Place: Junagadh

Date: May 25, 2024 Dale: May 25.2

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Mar 31, 2019

1. GENERAL INFORMATION

Creative Castings Limited (“the Company” ) is a public limited company domiciled in India The Company is engaged in manufacturing and selling of all types of Steel and Alloy Steel Investment Castings . The company is also engaged in generating of power from wind energy. The Casting Manufacturing unit of the Company is situated at G.I.D.C. Estate, Phase - II, Rajkot Road, Dolatpara, Junagadh - 362003. The company caters to both domestic and international markets.

The Company’s shares are listed with BSE.

a) No Shareholders holding more than 5 % shares in the company.

b) No Change in Equity shares and Equity Share Capital during the financial years 2017-18 and 2018-19.

c) The company has only one class of equity shares having a par value of Rs. 10/- per share.

Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian Rupees.

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

d) For the period of five years immediately preceding the date of Balance Sheet,

- The Company has not allotted any shares as fully paid up without receipt of cash,

- The Company has not brought back any shares,

- The Company has not issued any shares by way of bonus shares

* The Company has not received information from vendors regarding their status under the Micro, small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given .

* Trade payables includes amount due to Directors for Remuneration Rs. 315,000/-.(Previous year Rs. 285,000/-) .

Disclosure in respect of Defined Benefit Plans in respect of Gratuity .

The present value of obligation and defined benefit plan is determined based on actuarial valuation report.

The Company has funded the gratuity liability ascertained on actuarial basis, wherein every employee who has completed five years or more of service is entitled to gratuity on retirement or resignation or death calculated at 15 days salary for each completed year of service, subject to maximum of Rs. 20 lakhs per employee. The vesting period for gratuity as payable under The Payment of Gratuity Act is 5 years.

Valuation are performed on certain basic set of pre- determined assumptions which may vary over time. Thus , the company is exposed to various risks in providing the above benefit which are as follows :

Interest Rate risk : The plan exposes the Company to the risk of fall in interest risk. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability ( as shown in financial statements ).

Liquidity Risk : This is the risk that the Company is not able to meet the short term gratuity payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Demographic Risk : The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to.

Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the Payent of Gratuity Act, 1972 ( as amended from time to time ). There is a risk of change in regulation requiring higher gratuity payouts ( e.g. increase in the maximum limit on gratuity of Rs. 20,00,000).

Asset Liability mismatching or Market Risk : The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities / fall in interest rate.

Investment Risk : The probability or likelihood of occurance of losses relative to the expected return on any particular investment.

SENSITIVITY ANALYSIS

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensivity analysis is given below :

Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated.

There is no change in the method of valuation for the prior period._

B. Financial Risk Management

The Company has established the risk management policies to ensure timely identification and evaluation of risks, settings acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency.

The Company’s activities expose it to credit risk, liquidity risk and market risk .

The Board provides guiding principles for overall risk management as well as policies covering specific areas such as foreign exchange risk, credit risk and investment of surplus liquidity

(a) Credit risk

Credit risk refers to the risk of a counter party default on its contractual obligation resulting into a financial loss to the Company. The maximum exposure of the Financial assets represents trade receivables, work in progress and other receivables. In respect of trade receivables, the Company used a provision matrix to compute the expected credit loss allowances for trade receivables in accordance with the expected credit loss ( ECL ) policy of the Company. The Company regularly reviews trade receivables and necessary provisions, wherever required are made in the financial statements.

(b) Liquidity risk

Liquidity risk is that the Company will encounter difficulty in raising funds to meet its commitments associated with financial instruments. Liquidity risk may result from an inability to sell as financial asset quickly at close to its fair value.

The Company manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring for cast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. Contractual maturities of significant financial liabilities are as follows :

(c) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

The Company is earning in foreign currency and consequently, the company is exposed to foreign exchange risk. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

(d) Capital management

The Company’s capital management objective is to maximise the total shareholders’ return by optimising cost of capital through flexible capital structure that supports growth. Further, the Company ensure optimal credit risk profile to maintain / enhance credit rating.

The Company determined the amount of capital required on the basis of annual operating plan and long term strategic plans. The funding requirements are met through internal accruals and long term / short term borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

2. In the opinion of the Board of Directors, Current assets and other non current assets have a value on realisation in ordinary course of business at least equal to the amount at which they are stated.

3. Confirmation of debit / credit balances have not been received and hence these balances are subject to adjustment if any.

4. Previous year figures :

The company has regrouped / rearranged previous year figures whenever necessary in view of easy comparison with current year figures.

5. Figures rounded off to nearest rupee.

All the figures including previous year figures have been rounded off to nearest rupee.

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Mar 31, 2018

1. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGEMENTS

In the course of applying the policies outlined in all notes under section 2 above, the company is required to make judgment, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factor that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future period.

(i) Useful lives of property, plant and equipment

Management reviews the useful lives of property, plant and equipment at least once a year. Such lives are dependent upon an assessment of both the technical lives of the assets and also their likely economic lives based on various internal and external factors including relative efficiency and operating costs. Accordingly depreciable lives are reviewed annually using the best information available to the Management.

(ii) Provisions and liabilities

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events that can reasonably be estimated. The timing of recognition requires application of judgment to existing facts and circumstances which may be subject to change. The amounts are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

(iii)Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the company. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

(iv)Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include consideration of inputs such as liquidity risk, credit risk and volatility”.

(v) Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

a) No Shareholders holding more than 5 % shares in the company.

b) No Change in Equity shares and Equity Share Capital during the financial years 2016-17 and 2017-18.

c) The company has only one class of equity shares having a par value of Rs. 10/- per share.

Each holder of equity shares is entitled to one vote per share.

The Company declares and pays dividends in Indian Rupees.

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

d) For the period of five years immediately preceding the date of Balance Sheet,

- The Company has not allotted any shares as fully paid up without receipt of cash,

- The Company has not brought back any shares,

- The Company has not issued any shares by way of bonus shares

Disclosure in respect of Defined Benefit Plans in respect of Gratuity .

The present value of obligation and defined benefit plan is determined based on actuarial valuation report.

The Company has funded the gratuity liability ascertained on actuarial basis, wherein every employee who has completed five years or more of service is entitled to gratuity on retirement or resignation or death calculated at 15 days salary for each completed year of service, subject to maximum of Rs. 20 lakhs per employee. The vesting period for gratuity as payable under The Payment of Gratuity Act is 5 years.

Valuation are performed on certail basic set of pre- determined assumptions which may vary over time. Thus , the company is exposed to various risks in providing the above benefit which are as follows :

Interest Rate risk : The plan exposes the Company to the risk of fall in interest risk. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in an increase in the value of the liability ( as shown in financial statements ).

Liquidity Risk : This is the risk that the Company is not able to meet the short term gratuity payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Demographic Risk : The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to.

Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the Payent of Gratuity Act,

1972 ( as amended from time to time ). There is a risk of change in regulation requiring higher gratuity payouts ( e.g. increase in the maximum limit on gratuity of Rs. 20,00,000).

Asset Liability mismatching or Market Risk : The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities / fall in interest rate.

Investment Risk : The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

2. RELATED PARTY DISCLOSURES

(1) Names of Related parties and nature of relationship

(a) Key Management Personnel

(i) Shri Rajan R. Bambhania (ii) Shri Vishal D. Patel

(iii) Shri Sidhdharth V. Vaishnav (iv) Shri Ashok L. Shekhat

(v) Shri Dharmesh A. Chauhan (vi) Ms. Ekta . H. Bhimani

(upto 30.06.2017) (from 12.08.2017)

(b) Relative of Key Management Personnel

(1) Smt. Kokilaben D. Dand (ii) Smt. Heena V. Patel

(iii) Smt. Dipti S. Vaishnav (iv) Ms. Dhirubhai Dand & Co.

Note:Related party relationship is as identified by the company and relied upon by the auditors.

(2) Transaction with Related Parties

B. Financial Risk Management

The Company has established the risk management policies to ensure timely identification and evaluation of risks, settings acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency.

The Company’s activities expose it to credit risk, liquidity risk and market risk .

The Board provides guiding principles for overall risk management as well as policies covering specific areas such as foreign exchange risk, credit risk and investment of surplus liquidity

(a) Credit risk

Credit risk refers to the risk of a counter party default on its contractual obligation resulting into a financial loss to the Company. The maximum exposure of the Financial assets represents trade receivables, work in progress and other receivables. In respect of trade receivables, the Company used a provision matrix to compute the expected credit loss allowances for trade receivables in accordance with the expected credit loss ( ECL ) policy of the Company. The Company regularly reviews trade receivables and necessary provisions, wherever required are made in the financial statements.

(b) Liquidity risk

Liquidity risk is that the Company will encounter difficulty in raising funds to meet its commitments associated with financial instruments. Liquidity risk may result from an inability to sell as financial asset quckly at close to its fair value.

The Company manages liquidity risk by maintaining adequte reserves and banking facilities by continuously monitoring forcast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. Contractual maturities of significant financial liabilities are as follows :

(c) Market risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

The Company is earning in foreign currency and consequently, the company is exposed to foreing exchange risk. The Company evalutes exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

(d) Capital management

The Company''s capital management objective is to maximize the total shareholders'' return by optimizing cost of capital through flexible capital structure that supports growth. Further, the Company ensure optimal credit risk profile to maintain / enhance credit rating.

The Company determined the amount of capital required on the basis of annual operating plan and long term

strategic plans. The funding requirements are met through internal accruals and long term / short term borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

The following table summarizes the capital of the Company.

3. In the opinion of the Board of Directors, Current assets and other noncurrent assets have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

4. Confirmation of debit / credit balances have not been received and hence these balances are subject to adjustment if any.

5. Previous year figures :

The company has regrouped / rearranged previous year figures in veiw of easy comparison with current year figures.

6. Figures rounded off to nearest rupee. All the figures including previous year figures have been rounded off to nearest rupee.

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Mar 31, 2015

1. Corporate Information :

CREATIVE CASTINGS LIMITED is a public limited company domiciled in India and incorporate under the provisions of the Companies Act, 1956, Its shares are listed in one stock exchange in India (OTC). The company is engaged in manufacturing of steel and alloy steel investment castings. The company is also engaged in generating of Power from wind energy. The Casting Manufacturing unit of the company is situated at G.I.D.C. Estate, Phase - II Rajkot Road, Dolatpara Junagadh - 362 003. The company caters to both domestic and international markets.

2. Basis of Preparation.

The financial statement of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) including accounting standards notified under the relevant provisions of the Companies Act, 2013. The Financial statements have been prepared on an accrual basis and under the historical cost convention except where specifically stated.

3. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

* Terms / rights attached to shares : The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.The company declare and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the Share holders in the ensuing Annual General Meeting .

In the event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company after distribution of all preferential amounts. The distribution will be in propotion to the numbers of equity shares held by the shareholders.

* Term Loan from bank is Secured against Hypothecation of Wind energy generator and Equitable Mortgage of all Land & Building of the company and against the personal guarantees of all the directors.

4. Contingent liabilities not provided for in respect of:

[i] Bank guarantees outstanding as at 31st March, 2015 for which the Company has given counter guarantees amounting to Rs. 90,000/- (Previous year Rs. 180,000/-).

5. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc, under the Income tax Act / Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

6. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of business.

7. The provision for all known liabilities is adequate and not in excess of the amount reasonably required.

8. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment, if any.

9. Value of Raw materials and Components consumed.

10. Information in regard to expenditure in foreign currency : For Traveling Expenses Rs. 139,133/- (previous Year Rs. 80,844/-) For Participation fee Rs. 178,968/-( previous year Rs. Nil).

11. SEGMENT INFORMATION : The company has identified two Reportable Segments viz. Investment Casting and Power.

12. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessment made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

13. RELATED PARTY INFORMATION

Disclosure in respect of related parties ( as defined in Accounting Standard 18), with whom transaction have taken place during the year are given below:

(1) RELATIONSHIP:

(a) Key Management Personnel

(i) Rajan R. Bambhania

(ii) Vishal D. Patel

(iii) Siddharth V. Vaishnav

(b) Relatives of Key Management Personnel

(i) Kokilaben D. Dand

(ii) Hina V. Patel

(iii) Dipti S. Vaishnav ( Upto 30.09.2014)

Note : Related Party relationship is as identified by the company and relied upon by the auditors.

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Mar 31, 2014

1. Corporate Information:

CREATIVE CASTINGS LIMITED is a public limited company domiciled in India and incorporate under the provisions of the Companies Act, 1956, Its shares are listed in one stock exchange in India (OTC). The company ,s engaged in manufacturing of steel and alloy steel investment castings. The company is also engaged in manufacturing of Power from wind energy. The Casting Manufacturing unit of the company is situated at G.T.D.C Estate, Phase - II Rajkot Road, Dolatpara Junagadh - 362 003. The company caters to both domestic and international markets.

2. Basis of Praparation:

The financial statement of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting standards) Rules, 2006, (as respects with the relevant provisions of the Companies Act,1956 and the provisions of the Companies Act, 2013 (to the extent notified) and guidelines issued by the Institute of Chartered Accountants of India ( regulatory authority The Financial statements have been prepared on an accrual basis and under the historical cost convention, except where specifically stated.

3. Terms / rights attached to shares :

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.The company declare and pays dividends in Indian Rupees. The dividend proposedby the Board of Directorsis subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company after distribution of all preferential amounts. The distribution will be in propotionto the numbers of equity shares held by the shareholders.

4. Contingent liabilities not provided for in respect of:

[i] Bank guarantees outstanding as at 31st March, 2014 for which the Company has given counter guarantees amounting to Rs. 180,000/- (Previous year Rs. 180,000/-).

5. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc. under the Income tax Act / Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

6. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of business.

7. The provision for all known liabilities is adequate and not in excess of the amount reasonably required.

8. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment, if any.

9. Value of Raw materials and Components consumed.

10. Information in regard to expenditure in foreign currency: for Traveling Expenses Rs. 80,844/- (previous Year Rs. 556,021/-)

11. SEGMENT INFORMATION : The company has identified two Reportable Segments viz. Investment Casting and Power.

12. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessment made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

13. RELATED PARTY INFORMATION

Disclosure in respect of related parties (as defined in Accounting Standard 18), with whom transaction have taken place during the year are given below:

(1) RELATIONSHIP:

(a) Key Management Personnel

(i) Rajan R. Bambhania

(ii) Vishal D. Patel

(iii) Sidhdharth V. Vaishnav

(b) Relatives of Key Management Personnel

(i) Kokilaben D. Dand

(ii) Hina V. Patel

(iii) Dipti S. Vaishnav

Note: Related Party relationship is as identified by the company and relied upon by the auditors.

14. Previous year figures

The company has regrouped / rearranged previous year figures in view of the easy comparison With current year figures.

15. All the figures including previous year figures have been rounded off to nearest rupee.

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Mar 31, 2013

1. Corporate Information :

CREATIVE CASTINGS LIMITED is a public limited company domiciled in India and incorporate under the provisions of the Companies Act, 1956, Its shares are listed in one stock exchange in India.(OTC) The company is engaged in manufacturing of steel and alloy steel investment castings. The company is also engaged in manufacturing of Power from wind energy. The Casting Manufacturing unit of the company is situated at G.I.D.C. Estate, Phase—II Rajkot Road, Dolatpara Junagadh - 362 003. The company caters to both domestic and international markets.

2. Basis of Preparation.

The financial statement of the company have been prepared in accordance with generally accepted accounting principles in India ( Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The Financial statements have been prepared on an accrual basis and under the historical cost convention, except where specifically stated.

* No Shareholders holding more than 5% shares in the company.

* Terms / rights attached to shares:

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.The company declare and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company after distribution of all preferential amounts. The distribution will be in propotion to the numbers of equity shares held by the shareholders.

* The Company has not received information from vendors regarding their status under the Micro, small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given .

* Trade payables includes amount due to Directors of Rs. 180000/-.(Previous year Rs. 166500/-).

3. Contingent liabilities not provided for in respect of:

[i] Bank guarantees outstanding as at 31st March,2013 for which the Company has given counter guarantees amounting to Rs. 1,80,000/- (Previous year Rs. 1,80,000/-).

4. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc. under the Income tax Act /Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

5. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of business.

6. The provision for all known liabilities is adequate and not in excess of the amount reasonably required.

7. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment, if any.

8. Value of Raw materials and Components consumed.

9. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessment made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

10. RELATED PARTY INFORMATION

Disclosure in respect of related parties ( as defined in Accounting Standard 18), with whom transaction have taken place during the year are given below:

(1) RELATIONSHIP:

(a) Key Management Personnel

(i) Rajan R. Bambhania (ii) Vishal D. Patel (iii) Sidhdharth V. Vaishnav

(b) Relatives of Key Management Personnel

(i) Kokilaben D. Dand (ii) Hina V. Patel (iii) Dipti S. Vaishnav

Note: Related Party relationship is as identified by the company and relied upon by the auditors.

11. Previous year figures

The company has regrouped / rearranged previous year figures in view of the easy comparison With current year figures.

12. Figures rounded off to nearest All the figures including previous year, gores have teen rounded off to nearest rupee.

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Mar 31, 2012

1. Corporate Information :

CREATIVE CASTINGS LIMITED is a public limited company domiciled in India and incorporate under the provisions of the Companies Act, 1956, Its shares are listed in one stock exchange in India. ( OTC ) The company is engaged in manufacturing of steel and alloy steel investment castings. The company is also engaged in manufacturing of Power from wind energy. The Casting Manufacturing unit of the company is situated at G.I.D.C. Estate, Phase - II Rajkot Road, Dolatpara Junagadh - 362 003. The company caters to both domestic and international markets.

2. Basis of Preparation.

The financial statement of the company have been prepared in accordance with generally accepted accounting principles in India ( Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting standards ) Rules, 2006, ( as amended ) and the relevant provisions of the Companies Act, 1956. The Financial statements have been prepared on an accrual basis and under the historical cost convention, except where specifically stated.

* No Shareholders holding more than 5 % shares in the company.

* Terms / rights attached to shares :

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declare and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting .

In the event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company after distribution of all preferential amounts. The distribution will be in propotion to the numbers of equity shares held by the shareholders.

3. Contingent liabilities not provided for in respect of:

[i] Bank guarantees outstanding as at 31st March,2012 for which the Company has given counter guarantees amounting to Rs. 180 Thousands (Previous year Rs. 180 Thousands ).

[ii] Income Tax demand of Rs. 17779 Thousands (Previous year Rs. NIL ) raised by the Income Tax department at the time of Assessment. The said demand is disputed by the company. The company has paid Rs.6026 Thousands (Previous year Rs. NIL) against the said demand.

4. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc. under the Income tax Act / Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

5. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of business.

6. The provision for all known liabilities is adequate and not in excess of the amount reasonably required.

7. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment, if any.

8. Information in regard to expenditure in foreign currency : for Traveling Expenses Rs. -Nil- ( P. Y. Rs. -Nil-)

9. SEGMENT INFORMATION : The company has identified two Reportable Segments viz. Investment Casting and Power.

10. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessment made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

11. RELATED PARTY INFORMATION

Disclosure in respect of related parties ( as defined in Accounting Standard 18), with whom transaction have taken place during the year are given below:

(1) RELATIONSHIP:

(a) Key Management Personnel

(i) Rajan R. Bambhania (ii) Vishal D. Patel wef. 01.07.2011 (iii) Sidhdharth V. Vaishnav w.e.f. 01.07.2011.

(b) Relatives of Key Management Personnel

(i) Kokilaben D. Dand (ii) Hina V. Patel (iii) Dipti S. Vaishnav

Note : Related Party relationship is as identified by the company and relied upon by the auditors.

12. Previous year figures

Till the year ended 31st March, 2011, the company was using pre-revised Schedule VI to the Companies act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012 , the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification. The adoption f revised Schedule VI dose not impact recognition and measurement principles followed preparation of Financial statements. However, it significantly impacts presentation and disclosures made in the financial statements particularly presentation of balance sheet.

13. Figures rounded off to nearest thousand. All the figures including previous year figures have been rounded off to nearest thousand. Where the rounding off has become zero, actual figures have been shown in brackets.

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Mar 31, 2011

1. CONTINGENT LIABILITIES

(i) Bank guarantees outstanding as at 31st March, 2011, for which the company has given counter guarantees amounting to Rs. 100000/- (Previous year Rs.180000/-)

2. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc. under the Income tax Act / Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognised on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

3. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realised in the ordinary course of business.

4. The provision tor all known liabilities is adequate and not in excess of the amount reasonably required.

5 Tire remuneration paid to the Managing Director of the Company including bonus and perquisites amounts to Rs. 730385/- ( Previous year Rs.655269/-)

6. Depreciation on the assets has been provided on Straight Lino Method as per the revised guidelines and rates proscribed by the Company Law Board in Schedule XIV of the companies act. 1956 by the Ministry of Law, Justice & Company affairs, Department of the Company affairs, New Delhi, The Provision of Depreciation for multiple shifts wherever applicable as per records and as advised has been made on the basis of actual shift wise utilisation of the respective eligible assets,

7. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment,it any.

8. Additional information pursuant of paragraph 3(i),(ii). 4B, 4C and 4D of Part-H of Schedule IV of the Companies Act.1956.

9. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessmen made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

10. RELATED PARTY INFORMATION

Disclosure in respect of related parties ( as defined in Accounting Standard 18), with whom transaction have taken place'during the year are given below:

(1) RELATIONSHIP: (a) Key Management Personnel (I) Shri Rajan R. Bambhania

Note : Related Party relationship is as identified by the company and relied upon by the auditors.

11. The figures of the Previous year have been re-grouped in view of the easy comparison with current year figures

12. The paises have been .eliminated to the nearest rupee for convenience.