Notes to Accounts of Gallantt Ispat Ltd.

Mar 31, 2025

2.11 Provisions and Contingent Liabilities

Provisions are recognized when the Company has a present obligation 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 when a reliable estimate
of the amount of the obligation can be made. Provisions are measured at the best estimate of the expenditure required to
settle the present obligation at the Balance Sheet date. The expenses 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 determined by discounting the expected future cash
flows specific to the liability. The unwinding of the discount is recognised as finance cost.

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 or a present obligation that arises from past events where it is either not probable that an outflow
of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

A contingent asset is not recognised but disclosed in the financial statements where an inflow of economic benefit
is probable.

Commitments includes the amount of purchase orders (net of advance) issued to parties for acquisition of assets.
Provisions, contingent assets, contingent liabilities and commitments are reviewed at each balance sheet date.

2.12 Revenue recognition

i) Sale of goods

Revenue from the sale of goods in the course of ordinary activities is measured at fair value of the consideration
received or receivable, net of returns, trade discounts, cash discount and quantity discount and exclusive of Goods
and Service Tax and other taxes and duties collected on behalf of the government. Sales are recognised when goods
are supplied and significant risks and rewards of ownership in the goods are transferred to the buyer as per the terms
of contract and no significant uncertainty exists regarding the amount of the consideration that will be derived from
the sale of the goods.

ii) Dividend and Interest income

Dividend income is recognised when the shareholder''s right to receive payment has been established provided that
it is probable that the economic benefits will flow to the Company and amount of income can be measured reliably.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the
Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference

to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected life of the financial asset to the asset''s net carrying amount on
initial recognition.

iii) Insurance Claims

Insurance claims are accounted for on acceptance and when there is a resonable certainty of receiving the same, on
ground of prudence.

2.13 Foreign Currencies Transactions

The financial statements of the Company are presented in Indian Rupee (''), which is Company''s functional and
presentation currency.

Transactions in currencies other than entity''s functional currency (foreign currency) are recorded at the rates of exchange
prevailing on the date of the transaction. Monetary assets and liabilities denominated in foreign currencies (other than
derivative contracts) remaining unsettled at the end of the each reporting period are remeasured at the rates of exchange
prevailing at that date. Non-monetary items carried at fair value that at denominated in foreign currency are retranslated
at the rate prevailing at the date when the fair value was determined. Non-monetary items that are measured in terms of
historical cost in a foreign currency are not retranslated. Exchange difference on monetary items are recognised in profit
and loss in the period.

2.14 Borrowing costs

Borrowing costs are interest and other costs that the Company incurs in connection with the borrowing of funds and is
measured with reference to the effective interest rate applicable to the respective borrowing. Borrowing costs that are
directly attributable to the acquisition of an asset that necessarily takes a substantial period of time to get ready for its
intended use are capitalised as part of the cost of that asset till the date it is put to use. Other borrowing costs are recognised
as an expense in the period in which they are incurred.

2.15 Employee Benefits

i) Short-term benefits

All employee benefits payable wholly within twelve months of rendering the service are classified as short term
employee benefits. Benefits such as salaries, performance incentives, etc., are recognized as an expense at the
undiscounted amount in the Statement of Profit and Loss of the year in which the employee renders the related service.

ii) Post Employment Benefit

(a) Defined Contribution Plans

Payments made to a defined contribution plan such as Provident Fund and Family Pension maintained with
Regional Provident Fund Office are charged as an expense in the Statement of Profit and Loss as they fall due.

(b) Defined Benefit Plans

The Company''s net obligation in respect of defined benefit plans is calculated separately for each plan by
estimating the amount of future benefit that employees have earned in the current and prior periods, after
discounting the same. The calculation of defined benefit obligations is performed annually by a qualified actuary
using the projected unit credit method. Re-measurement of the net defined benefit liability, which comprise
actuarial gains and losses are recognized immediately in Other Comprehensive Income (OCI). Net interest expense
(income) on the net defined liability (assets) is computed by applying the discount rate, used to measure the net
defined liability (asset). Net interest expense and other expenses related to defined benefit plans are recognized
in Statement of Profit and Loss.

2.16 Taxes on Income

i) Current tax

Current tax is payable based on taxable profit for the year. Taxable profit differs from ''profit before tax'' as reported
in the Standalone statement of profit and loss because of items of income or expense that are taxable or deductible
in other years and items that are never taxable or deductible. The current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of the reporting period.

ii) Deferred tax

Deferred tax is the tax expected to be payable or recoverable on temporary differences between the carrying value of
assets and liabilities in the Standalone financial statements and the corresponding tax bases used in the computation
of taxable profits and is accounted for using the balance sheet liability method. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Deferred tax assets are only recognised on deductible temporary
differences to the extent that is probable that taxable profits will be available against which those deductible temporary
differences can be utilised.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the
extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to
be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the
liability is settled or the asset is realised, based on tax rates (and tax laws) that have been enacted or substantially
enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority and
there are legally enforceable rights too set off current tax assets and current tax liabilities within that jurisdiction.

iii) Minimum alternate tax

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the
form of adjustment to future income tax liability, is recognised as a deferred tax asset in the balance sheet when the
asset can be measured reliably and it is probable that the Company will pay normal income tax during the specified
period and it is probable that future economic benefit associated with it will flow to the Company.

iv) Current and deferred tax are recognised in profit and loss, except when they relate to items that are recognised in
other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in
other comprehensive income or directly in equity respectively.

2.17 Earning Per Share

Basic Earnings per share is calculated by dividing the net profit / (loss) for the period attributable to the equity shareholders
by the weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted
earnings per share, the net profit / (loss) for the period attributable to the equity shareholders and the weighted average
number of equity shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

2.18 Dividend Distribution

Dividend distribution to the Company''s shareholders is recognised as a liability in the Company''s financial statements in
the period in which the dividends are approved by the Company''s shareholders.

2.19 New and amended standard

Several amendments and interpretations apply for the first time annual periods beginning on or after April 01, 2024, but
do not have an impact on the financial statements of the Company. The Company has not early adopted any standards
or amendments that have been issued but are not yet effective.

Nature and purpose of reserve

Securities Premium Account : The amount received in excess of face value of the equity shares is recognised in securities
Premium Reserve. In case of equity-settled share based payment transactions, the difference between fair value on grant date
and nominal value of share is accounted as securities premium reserve.

Capital Reserve : The excess of fair value of net assets acquired over consideration paid in a common control transaction is
recognised as capital reserve. Where the consideration transferred exceeds the fair value of the net identifiable assets acquired
and liabilities assumed, the excess is recorded as goodwill.

Retained Earnings : Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve,
dividends or other distributions paid to shareholders.

Other Comprehensive Income : The effect of the remeasurement changes (comprising actuarial gains and losses) to the asset
ceiling (if applicable) and the return on plan assets (excluding interest), is reflected in the balance sheet with a charge or credit
recognised in other comprehensive income in the period in which they occur. Other comprehensive income (OCI) includes
revenues, expenses, gains and losses that are yet to be realized and are excluded from net income on an income statement. OCI
represents the balance between net income and comprehensive income.

(ii) Defined benefit plans
Gratuity

The Company participates in the Employees'' Group Gratuity-cum-Life Assurance Scheme of SBI Life Insurance Co. Ltd. and
Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible
employees on death or on separation / termination in terms of the provisions of the Payment of Gratuity Act, 1972 (as
amended from timt to time), or as per the Company''s scheme whichever is more beneficial to the employees.

The liability for the Defined Benefit Plan is provided on the basis of a valuation, using the Projected Unit Credit Method, as
at the Balance Sheet date, carried out by an independent actuary.

Assumed discount rates are used in the measurement of the present value of the obligation.

Amount recognised as expenses

Employer''s Contribution to Provident Fund amounting to '' 294.17 Lakhs (previous year '' 238.34 Lakhs) has been included
in Note 30 Employee Benefits Expenses.

Employer''s Contribution to ESIC amounting to '' 74.42 Lakhs (previous year '' 64.87 Lakhs) has been included in Note 30
Employee Benefits Expenses.

Gratuity cost amounting to '' 224.39 Lakhs (previous year '' 271.68 Lakhs) has been included in Note 30 Employee
Benefits Expenses.

The Company manages its capital to ensure that entities will be able to continue as going concerns while maximising the return
to stakeholders through the optimisation of the debt and equity balance. The Capital structure of the Company consists of net
debt and the total equity of the Company.

The Company manages its capital structure and makes adjustments 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. The Company monitors capital using a gearing ratio,
which is net debt divided by total capital plus net debt. The Company includes within net debt, long term-term borrowings,
short-term borrowings, less cash and short-term deposits.

Gearing Ratio

The gearing ratio at end of the reporting period was as follows

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other
payables. The Company''s principal financial assets include loans, trade and other receivables, and cash and short-term deposits
that derive directly from its operations. The Company also holds FVTOCI investments and enter into derivative transactions. The
Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The
use of financial derivatives is governed by the Company''s policies approved by the board of directors, which provide written
principles on foreign exchange risks, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial
instruments. The Company does not enter into or trade financial instruments including derivative financial instruments, for
speculative purposes.

1. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in
market prices. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange
rates and interest rates. The Company enters into derivative financial instruments to manage its exposure to foreign
currency risk and interest rate risk.

Foreign currency risk management

The Company is exposed to currency risk on account of its borrowings, Receivables for Exports and Payables for Imports
in foreign currency. The functional currency of the Company is Indian Rupee. The Company manages currency exposures
within prescribed limits, through use of forward exchange contracts. Foreign exchange transactions are covered with strict
limits placed on the amount of uncovered exposure, if any, at any point in time.

Interest rate risk management

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change
in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the
company''s short-term debt obligations with floating interest rates.

Interest rate sensitivity analysis

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss.

2. Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its
contractual obligations, and arises principally from the Company''s receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer and the
geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously
monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company monitors each loans and advances given and makes any specific provision wherever required.

Based on prior experience and an assessment of the current economic environment, Management believes there is no
credit risk provision required. Also Company does not have any significant concentration of credit risk.

3. 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.

Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. This
monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The Company has access to funds from debt markets through loan from banks and other debt instrument. The Company
invests its surplus funds in bank fixed deposits.

Note - 40 Fair value measurements

Refer Note ( 2.07) for accounting policy on Financial Instruments.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in
a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimare the fair values:

Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, working
capital loan from banks approximate their carrying amounts largely due to the short term maturities of these instruments.

Financial instruments other than above are carried at amortised cost except certain assets which are carried at fair value.

The Company uses the following hierarchy for determining and disclosing the fair value of finnacial instruments by valuation
technique.

1. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are
required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect
the outcome of these proceedings to have a materially adverse effect on its financial results.

2. It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending
resolution of the respective proceedings as it is determinable only on receipt ofjudgements/decisions pending with various
forums/authorities.

Note - 43 Capital management

The Company''s Gorkhapur unit has established its unit under attraction of financial incentives and other benefits of a Scheme
of State Government of Uttar Pradesh notified vide Government Order No. 1502/77-6-2006-10 tax/04 dated 1st June, 2006 and
which have been elaborated in Government Order No. 2941/77-6-2006-10 tax/04 dated 30th November, 2006 and amended
from time to time. The said Scheme provides following financial incentives besides other benefits to the Industries established
in the State after 1st June, 2006. Company has complied with all the formalities required in this regard and has been declared an
eligible unit under the Scheme; as such the Company is entitled to get the following financial incentives:

a) Capital investment subsidy, additional capital investment subsidy and infrastructure subsidy @35% on fixed capital
investment.

b) Reimbursement of freight paid on raw materials subject to maximum of 65% of the fixed capital investment.

c) Amount of payable Commercial Taxes to State Government (VAT at that time presently GST) to be converted into interest
free loan, repayable after a period of 15 years.

State Government, after declaring the unit an eligible unit disbursed an amount of '' 24.28 Crores as part payment of the
subsidies in the year 2010, but thereafter refused to pay the balance amount of financial incentives. Having no option.
Company moved to Hon''ble High Court of Allahabad Lucknow Bench in 2011 and after a long battle in Court, finally
Hon''ble High Court vide its order dated 22.03.2018 directed State Government to pay all the incentives within three months
time. State Government instead complying with the order moved a special leave petition No. 19796 before the Hon''ble
Supreme Court which is pending for final disposal before the Hon''ble Supreme Court.

Financial Benefits to be received under the scheme are as under:

a) Company is eligible for incentives i.e. Capital investment subsidy @ 20% of fixed capital investment, infrastructure subsidy
@ 10% of total fixed capital investment and 5% additional capital subsidy being the first unit in Purvanchal region totalling
subsidy @ 35% on fixed capital investment. Company has claimed for '' 12,262.00 Lakhs against the capital investment
made upto 31st May, 2012. The incentive received of '' 2,428 Lakhs has been credited in fixed assets in the ratio of capital
investment made. No provision has been made for the unrealised claim of '' 9,834 Lakhs in the books.

b) Reimbursement of freight paid on raw materials subject to maximum of 65% of the fixed capital investment.

Company is eligible for reimbursement of freight paid on transportation of raw materials as freight subsidy on Iron Ore
equivalent to the Railway freight. The total amount of freight subsidy is restricted to 65% of the total capital investment
under the scheme that comes to '' 22,775.00 Lakhs, Since Company has already claimed '' 22,775.00 Lakhs till March, 2018
as such no amount is available to be claimed as freight subsidy during the year and onward,

c) Amount of payable Commercial Taxes to State Government (VAT at that time presently GST) to be converted into interest
free loan, repayable after a period of 15 years.

Company is eligible for interest free loan equivalent to the amount of VAT, CST & GST laibility for 15 years and which shall
be repayable after 15 year. The Company has claimed as interest free loan amounting to '' 10,828.03 Lakhs up to 30th
June, 2017 on account of VAT upto 30th June, 2017. Out of total claim of '' 10,828.03 Lakh, '' 9,255.64 Lakhs has not been
deposited to Commercial Tax Department in accordance with order of Hon''ble High Court of Allahabad in writ petiiton no.
8886/2011, however, '' 1,572.39 Lakhs have already been deposited before the said stay order.

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits
has received Presidential assent on 28th September 2020. The Code has been published in the Gazette of India. However, the
effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view
of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if
any, in the period the Code becomes effective.

Note - 50

The Income Tax Department has conducted a search operation in April, 2023. Pursuant to that, the Income Tax Department
initiated the assessment for 7 (Seven) Assessment Years and has concluded the assessment till Assessment Year 2023-24 without
any addition to the taxable income. However, assessment for the Assessment Year 2024-25 is in progress and the management
is of the view that conclusion for the Assessment Year 2024-25 will be without any addition in the taxable income in line with
the last previous years.

Note - 51

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.

Note - 52

The company do not have any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section
560 of Companies Act, 1956.

Note - 53

Figures for the previous years have been regrouped / restated wherever necessary to conform to current year''s presentation.

As per terms of our report attached For and on behalf of the Board of Directors

Chandra Prakash Agrawal

Chairman & Managing Director
DIN: 01814318

For MAROTI & ASSOCIATES Dinesh R Agarwal

Chartered Accountants Whole-time Director

Firm Registration No : 322770E DIN: 01017125

Mayank Agrawal

Komal Jain Chief Executive Officer

Partner Sandip Kumar Agarwal

Membership No. 303583 Chief Financial Officer

UDIN: 25303583BMONBI2647 Nitesh Kumar

Company Secretary

New Delhi, May 21,2025 Gorakhpur, May 21 , 2025

---

Mar 31, 2024

(c) Rights, preferences and restrictions attached to shares Equity Shares

(i) The Company has one class of equity shares having a par value of ''10 per share. Each shareholder is entitled 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, except in case of interim dividend. In the event of liquidation, the equity shareholders are entitled to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to the number of equity shares held by the shareholders.

(ii) The Company has not reserved any shares for issue under options and contracts/commitments for the sale of shares/ disinvestment.

(iii) The Company for the period of five years immediately preceding the date of Balance Sheet has following shares allotment/issue for consideration otherwise than in cash :

(a) Cancelled 6,54,96,896 no. of Equity Shares pursuant to the Scheme of Amalgamation and Slump Sale.

(b) Allotted 22,54,55,517 fully paid up Equity Shares of Face Value '' 10/- each pursuant to the Scheme of Amalgamation and Slump Sale. Post cancellation of 6,54,96,896 Equity Shares and fresh allotment of 22,54,55,517 Equity Shares, the outstanding Issued, Subscribed and Paid-up number of Eqity Shares are 24,12,80,945 of Face Value '' 10/- each.

Nature and purpose of reserve

Securities Premium Account : The amount received in excess of face value of the equity shares is recognised in securities Premium Reserve. In case of equity-settled share based payment transactions, the difference between fair value on grant date and nominal value of share is accounted as securities premium reserve.

Capital Reserve : The excess of fair value of net assets acquired over consideration paid in a common control transaction is recognised as capital reserve. Where the consideration transferred exceeds the fair value of the net identifiable assets acquired and liabilities assumed, the excess is recorded as goodwill.

Retained Earnings : Retained earnings are the profits that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

Other Comprehensive Income : The effect of the remeasurement changes (comprising actuarial gains and losses) to the asset ceiling (if applicable) and the return on plan assets (excluding interest), is reflected in the balance sheet with a charge or credit recognised in other comprehensive income in the period in which they occur. other comprehensive income (OCI) includes revenues, expenses, gains, and losses that have yet to be realized and are excluded from net income on an income statement. OCI represents the balance between net income and comprehensive income.

3. The above working capital loan from bank is secured by collateral security by pledge of Nil (P.Y. 5,10,500) equity shares of the Company held by promoters.

4. The above working capital loan is guaranteed by the personal guarantee of Sri C. P Agrawal, Sri Dinesh R Agarwal and Sri Nitin M Kandoi, Directors of the Company.

5 The above working capital loans from bank are bering interest @ 7.25% - 8.45% (P.Y. 7.80% -8.55% ) on cash credit account and @ 5.50% - 7.50% (P.Y. 5.50% - 8.00% ) on accepatnce.

6 The Company does not have any default as on the Balance Sheet date in repayment of loan or Interest.

Disclosure of outstanding dues of Micro and Small Enterprise under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. There is no undisputed amount overdue as on March 31, 2024, to Micro, Small and Medium Enterprises on account of principal or interest

(i) Defined contribution plans Provident fund

The contributions to the Provident Fund and Family Pension Fund of eligible employees are made to a Government administered Provident Fund i.e The Employees'' Provident Fund amd Miscellaneous Provision Act 1952 and there are no further obligations beyond making such contribution.

(ii) Defined benefit plans Gratuity

The Company participates in the Employees'' Group Gratuity-cum-Life Assurance Scheme of SBI Life Insurance Co. Ltd. and Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on death or on separation / termination in terms of the provisions of the Payment of Gratuity Act, 1972 (as amended from timt to time), or as per the Company''s scheme whichever is more beneficial to the employees.

The liability for the Defined Benefit Plan is provided on the basis of a valuation, using the Projected Unit Credit Method, as at the Balance Sheet date, carried out by an independent actuary.

Assumed discount rates are used in the measurement of the present value of the obligation.

Amount recognised as expenses

Employer''s Contribution to Provident Fund amounting to '' 238.34 lakhs (previous year 213.41 lakhs) has been included in Note 29 Employee Benefits Expenses.

Employer''s Contribution to ESIC amounting to '' 64.87 lakhs (previous year 51.94 lakhs) has been included in Note 29 Employee Benefits Expenses.

Gratuity cost amounting to '' 271.68 lakhs (previous year 136.84 lakhs) has been included in Note 29 Employee Benefits Expenses.

The Company manages its capital to ensure that entities will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Capital structure of the Company consists of net debt and the total equity of the Company.

The Company manages its capital structure and makes adjustments 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. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, long term-term borrowings, short-term borrowings, less cash and short-term deposits.

Note - 38 Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables. The Company''s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also holds FVTOCI investments and enter into derivative transactions. The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimise the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company''s policies approved by the board of directors, which provide written principles on foreign exchange risks, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments. The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

1 Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company enters into derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk.

Foreign currency risk management

The Company is exposed to currency risk on account of its borrowings, Receivables for Exports and Payables for Imports in foreign currency. The functional currency of the Company is Indian Rupee. The Company manages currency exposures within prescribed limits, through use of forward exchange contracts. Foreign exchange transactions are covered with strict limits placed on the amount of uncovered exposure, if any, at any point in time.

Interest rate risk management

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s short-term debt obligations with floating interest rates.

Interest rate sensitivity analysis

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

2 Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company monitors each loans and advances given and makes any specific provision wherever required.

Based on prior experience and an assessment of the current economic environment, Management believes there is no credit risk provision required. Also Company does not have any significant concentration of credit risk.

3 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.

Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The Company has access to funds from debt markets through loan from banks and other debt instrument. The Company invests its surplus funds in bank fixed deposits.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimare the fair values:

Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, working capital loan from banks approximate their carrying amounts largely due to the short term maturities of these instruments.

Financial instruments other than above are carried at amortised cost except certain assets which are carried at fair value.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level -1 : Quoted prices in active markets for identical assets or liabilities.

Level -2 : Other techniques for which all inputs which have a significants effects on the recorded fair value are observable.

forming part of the financial statements Note - 41 [Contingent liabilities		('' in lakhs)
Particulars	As at 31.03.2024		As at 31.03.2023
(i) Commissioner of Central Excise, Kutch Commissionerate issued Show Cause Notice on excise duty liability on sales tax incentive availed by the Company. We have objected and filed the reply in the year 2017 thereafter we did not get any response from them inspite of our reminder in April, 2018.	170.12		170.12
(ii) Commissioner, Central GST (Audit) issued show cause notice on wrong availment of CENVAT credit on imported coal. Hon''ble CESTAT granted the verdict in our favour, however department preferred appeal in High Court .	603.35		603.35
(iii) Disputed liability in respect of sales tax ('' 42.00 lacs has been paid against the same).	80.04		80.04
(iv) Income Tax demand raised by the department from A.Y 2006-07 to 2019-2020 that has been disputed by the Company in various forum of Income Tax department.	17.75		17.75
(v) Claim against the Company not acknowledged debt in respect of disputed liability of freight with railway. Case is pending in Hon''ble High Court, Gujarat.	161.45		161.45
(vi) Amount has not been deposited with the CommercialTax Department, Uttar Pradesh in accordance with stay order of Honorable High Court of Allahabad. Refer note no. 42.	9,255.64		9,255.64
(vii) Various SCN issued by CGST and SGST, Varanasi and Gorakhpur for wrong availment of input credit and for that reply has already been submitted by the company.			1,676.75

Notes:

1 The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

2 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt ofjudgements/decisions pending with various forums/authorities.

The Company''s Gorkhapur unit has established its unit under attraction of financial incentives and other benefits of a scheme of State Government of Uttar Pradesh notified vide Government Order No. 1502/77-6-2006-10 tax/04 dated 1^st June, 2006 and which have been elaborated in Government Order No. 2941/77-6-2006-10 tax/04 dated 30^th November, 2006 and amended from time to time. The said scheme provides following financial incentives besides other benefits to the Industries established in the State after 1^st June, 2006. Company has complied with all the formalities required in this regard and has been declared an eligible unit under the scheme; as such the Company is entitled to get the following financial incentives:

a) Capital investment subsidy, additional capital investment subsidy and infrastructure subsidy @35% on fixed capital investment.

b) Reimbursement of freight paid on raw materials subject to maximum of 65% of the fixed capital investment.

c) Amount of payable Commercial Taxes to State Government (VAT at that time presently GST) to be converted into interest free loan, repayable after a period of 15 years.

State Government, after declaring the unit an eligible unit disbursed an amount of '' 24.28 crores as part payment of the subsidies in the year 2010, but thereafter refused to pay the balance amount of financial incentives. Having no option. Company moved to Hon''ble High Court of Allahabad Lucknow Bench in 2011 and after a long battle in court, finally Hon''ble

High Court vide its order dated 22.03.2018 directed State Government to pay all the incentives within three months time.

State Government instead complying with the order moved a special leave petition No. 19796 before the Hon''ble Supreme

Court which is pending for final disposal before the Hon''ble Supreme Court.

Financial Benefits to be received under the scheme are as under:

a) Company is eligible for incentives i.e. Capital investment subsidy @ 20% of fixed capital investment, infrastructure subsidy @ 10% of total fixed capital investment and 5% additional capital subsidy being the first unit in Purvanchal region totalling subsidy @ 35% on fixed capital investment. Company has claimed for '' 12,262.00 Lakhs against the capital investment made upto 31^st May, 2012. The incentive received of '' 2,428 Lakhs has been credited in fixed assets in the ratio of capital investment made. No provision has been made for the unrealised claim of '' 9,834 Lakhs in the books.

b) Reimbursement of freight paid on raw materials subject to maximum of 65% of the fixed capital investment. Company is eligible for reimbursement of freight paid on transportation of raw materials as freight subsidy on Iron Ore equivalent to the Railway freight. The total amount of freight subsidy is restricted to 65% of the total capital investment under the scheme that comes '' 22,775.00 lakhs, Since Company has already claimed '' 22,775.00 Lakhs till March, 2018 as such no amount is available to be claimed as freight subsidy during the year and onward,

c) Amount of payable Commercial Taxes to State Government (VAT at that time presently GST) to be converted into interest free loan, repayable after a period of 15 years.

Company is eligible for interest free loan equivalent to the amount of VAT, CST & GST laibility for 15 years and which shall be repayable after 15 years. The company has claimed as interest free loan amounting to '' 10,828.03 Lakhs up to 30^th June, 2017 on account of VAT upto 30^th June, 2017 Out of total claim of '' 10,828.03 Lakh, '' 9,255.64 Lakhs has not been deposited to Commercial Tax department in accordance with order of Hon''ble High Court of Allahabad in writ petiiton no. 8886/2011, however, '' 1,572.39 Lakhs have already been deposited before the said stay order.

Reason for difference

Statement of inventory submitted to the bank on the basis of estimated cost whereas the actual valuation of the same has been done afterwards at the time of quartelry result submitted to the Bank

Note - 46 11 Segment Reporting_

As per Ind AS 108 operating segment specified under section 133 of the companies Act 2013, the Company is predominately engaged in single reprting segment of Iron and Steel.

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post employment benefits has received Presidential assent on 28^th September 2020. The Code has been published in the Gazette of India. However, the effective date of the Code is yet to be notified and final rules for quantifying the financial impact are also yet to be issued. In view of this, the Company will assess the impact of the Code when relevant provisions are notified and will record related impact, if any, in the period the Code becomes effective.

During the year the Income Tax Department has conducted a search operation. The Company has not disclosed or surrendered any income during the year in the tax assessment under the Income Tax Act, 1961.

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.

The company do not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

Figures for the previous years have been regrouped / restated wherever necessary to conform to current year''s presentation.

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Mar 31, 2023

Provisions and Contingent Liabilities

Provisions are recognized when the Company has
a present obligation 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 when a reliable estimate of the
amount of the obligation can be made. Provisions
are measured at the best estimate of the expenditure
required to settle the present obligation at the
Balance Sheet date. The expenses 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 determined by discounting the
expected future cash flows specific to the liability.
The unwinding of the discount is recognised as
finance cost.

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 or a present obligation that arises
from past events where it is either not probable that
an outflow of resources will be required to settle
the obligation or a reliable estimate of the amount
cannot be made.

A contingent asset is not recognised but disclosed
in the financial statements where an inflow of
economic benefit is probable.

Commitments includes the amount of purchase
orders (net of advance) issued to parties for
acquisition of assets.

2.12 Revenue recognition

i) Sale of goods

Revenue from the sale of goods in the course
of ordinary activities is measured at fair value
of the consideration received or receivable,
net of returns, trade discounts, cash discount
and quantity discount and exclusive of Goods
and Service Tax and other taxes and duties
collected on behalf of the government. Sales
are recognised when goods are supplied and
significant risks and rewards of ownership
in the goods are transferred to the buyer as
per the terms of contract and no significant
uncertainty exists regarding the amount of the
consideration that will be derived from the sale
of the goods.

ii) Dividend and Interest income

Dividend income is recognised when the
shareholder''s right to receive payment has
been established (provided that it is probable
that the economic benefits will flow to the
Company and amount of income can be
measured reliably.

Interest income from a financial asset is
recognised when it is probable that the
economic benefits will flow to the Company
and the amount of income can be measured
reliably. Interest income is accrued on a time
basis, by reference to the principal outstanding
and at the effective interest rate applicable,
which is the rate that exactly discounts
estimated future cash receipts through the
expected life of the financial asset to the asset''s
net carrying amount on initial recognition.

iii) Insurance Claims

Insurance claims are accounted for on
acceptance and when there is a resonable
certainty of receiving the same, on ground of
prudence.

2.13 Foreign Currencies Transactions

The financial statements of the Company are
presented in Indian Rupee ("''"), which is Company''s
functional and presentation currency.

Transactions in currencies other than entity''s
functional currency (foreign currency) are recorded

at the rates of exchange prevailing on the date
of the transaction. Monetary assets and liabilities
denominated in foreign currencies (other than
derivative contracts) remaining unsettled at the
end of the each reporting period are remeasured
at the rates of exchange prevailing at that date.
Non-monetary items carried at fair value that at
denominated in foreign currency are retranslated
at the rate prevailing at the date when the fair
value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign
currency are not retranslated. Exchange difference
on monetary items are recognised in profit and loss
in the period.

2.14 Borrowing costs

Borrowing costs are interest and other costs
that the Company incurs in connection with the
borrowing of funds and is measured with reference
to the effective interest rate applicable to the
respective borrowing. Borrowing costs that are
directly attributable to the acquisition of an asset
that necessarily takes a substantial period of time
to get ready for its intended use are capitalised as
part of the cost of that asset till the date it is put to
use. Other borrowing costs are recognised as an
expense in the period in which they are incurred.

2.15 Employee Benefits

i) Short-term benefits

All employee benefits payable wholly within
twelve months of rendering the service are
classified as short term employee benefits.
Benefits such as salaries, performance
incentives, etc., are recognized as an expense
at the undiscounted amount in the Statement
of Profit and Loss of the year in which the
employee renders the related service.

ii) Post Employment Benefit

(a) Defined Contribution Plans

Payments made to a defined contribution
plan such as Provident Fund and Family
Pension maintained with Regional Provident
Fund Office are charged as an expense in the
Statement of Profit and Loss as they fall due.

(b) Defined Benefit Plans

The Company''s net obligation in respect of
defined benefit plans is calculated separately
for each plan by estimating the amount of
future benefit that employees have earned in

the current and prior periods, after discounting
the same. The calculation of defined benefit
obligations is performed annually by a
qualified actuary using the projected unit credit
method. Re-measurement of the net defined
benefit liability, which comprise actuarial
gains and losses are recognized immediately
in Other Comprehensive Income (OCI). Net
interest expense (income) on the net defined
liability (assets) is computed by applying the
discount rate, used to measure the net defined
liability (asset). Net interest expense and other
expenses related to defined benefit plans are
recognized in Statement of Profit and Loss.

2.16 Taxes on Income

i) Current tax

Current tax is payable based on taxable profit
for the year. Taxable profit differs from ''profit
before tax'' as reported in the standalone
statement of profit and loss because of items
of income or expense that are taxable or
deductible in other years and items that are
never taxable or deductible. The current tax
is calculated using tax rates that have been
enacted or substantively enacted by the end of
the reporting period.

ii) Deferred tax

Deferred tax is the tax expected to be payable
or recoverable on temporary differences
between the carrying value of assets and
liabilities in the standalone financial statements
and the corresponding tax bases used in the
computation of taxable profits and is accounted
for using the balance sheet liability method.
Deferred tax liabilities are generally recognised
for all taxable temporary differences. Deferred
tax assets are only recognised on deductible
temporary differences to the extent that is
probable that taxable profits will be available
against which those deductible temporary
differences can be utilised.

The carrying amount of deferred tax assets is
reviewed at the end of each reporting period
and reduced to the extent that it is no longer
probable that sufficient taxable profits will be
available to allow all or part of the asset to be
recovered.

Deferred tax liabilities and assets are measured
at the tax rates that are expected to apply in
the period in which the liability is settled or

the asset is realised, based on tax rates (and tax
laws) that have been enacted or substantially
enacted by the end of the reporting period.

Deferred tax assets and liabilities are offset to
the extent that they relate to taxes levied by
the same tax authority and there are legally
enforceable rights too set off current tax
assets and current tax liabilities within that
jurisdiction.

iii) Minimum alternate tax

Minimum Alternate Tax (MAT) paid in
accordance with the tax laws, which gives
future economic benefits in the form of
adjustment to future income tax liability, is
recognised as a deferred tax asset in the balance
sheet when the asset can be measured reliably
and it is probable that the Company will pay
normal income tax during the specified period
and it is probable that future economic benefit
associated with it will flow to the Company.

iv) Current and deferred tax are recognised in
profit and loss, except when they relate to items
that are recognised in other comprehensive
income or directly in equity, in which case, the
current and deferred tax are also recognised
in other comprehensive income or directly in
equity respectively.

2.17 Earning Per Share

Basic Earnings per share is calculated by dividing
the net profit / (loss) for the period attributable to
the equity shareholders by the weighted average
number of equity shares outstanding during the
period. For the purpose of calculating diluted
earnings per share, the net profit / (loss) for the
period attributable to the equity shareholders and
the weighted average number of equity shares
outstanding during the period is adjusted for the
effects of all dilutive potential equity shares.

2A Recent Indian Accounting Standard (Ind
AS)

2A.1 Recent accouting pronouncements which
are not yet effective

The amendments to standards that are issued,
but not yet effective, up to the date of issuance
of the Company''s Financial Statements are
disclosed below. The Company intends to adopt
these standards, if applicable, as and when they
become effective. The Ministry of Corporate Affairs
(MCA) has notified certain amendments to Ind AS,

through Companies (Indian Accounting Standards)
Amendment Rules, 2022 on March 23, 2022. These
amendments maintain convergence with IFRS by
incorporating amendments issued by International
Accounting Standards Board (IASB) into Ind AS and
has amended the following standards:

1. Ind AS 101 - First-time adoption of Ind AS

2. Ind AS 103 - Business Combinations

3. Ind AS 109 - Financial Instruments

4. Ind AS 16 - Property, Plant and Equipment

5. Ind AS 37 - Provisions, Contingent Liabilities
and Contingent Assets

6. Ind AS 41 - Agriculture

These amendments shall come into force with effect
from April 01,2022.

The Company is assessing the potential effect
of the amendments on its financial statements.
The Company will adopt these amendments, if
applicable, from applicability date.

2A.2 Business Combination

Business combinations are accounted for using the
acquistion method of accounting.

The consideration transferred in each business
combination is measured at the aggregate of the

acquisition date fair values of assets given, liabilities
incurred by the Company to the former owners
of the acquiree and equity interests issued by the
Company in exchange for control of the acquiree.

Acquisition related costs are recognised in profit or
loss as incurred.

The acquiree''s identifiable assets, liabilities and
contingent liabilities that meet the conditions
for recognition are recognised at their fair value
at the acquisition date, except certain assets and
liabilities that are required to be measured as per
the applicable standard.

Any contingent consideration to be transferred
by the acquirer is recognized at fair value at the
acquisition date. Contingent consideration classified
as financial liability is measured at fair value with
changes in fair value recognized in the statement of
profit and loss.

Purchase consideration in excess of the Company''s
interest in the acquiree''s net fair value of identifiable
assets, liabilities and contingent liabilities is
recognised as goodwill. Excess of the Company''s
interest in the net fair value of the acquiree''s
identifiable assets, liabilities and contingent
liabilities over the purchase consideration is
recognised, after reassessment of fair value of net
assets acquired, in the capital reserve.

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Mar 31, 2018

1 The company has availed the deemed cost exemption in relation to the Property Plant and Equipment on the date of transition as at 1 April 2016 and hence the net block carrying amount has been considered as the gross block carrying amount on transition date i.e. 1 April, 2016. The carrying value as at 1 April 2016 amounting to ? 20,548.11 lakhs represents gross cost of? 34,048.58 lakhs net of accumulated depreciation of? 13,500.47 lakhs as at 1 April, 2016.

2 All property plant and equipment are given as collateral security to the bank for working capital loans by way of hypothecation on movable fixed assets including plant and machinery both present and future and equitable mortgage over immovable properties of the company viz. land and building situated in Kutch, Gujarat.

3 Depreciation is provided, under the Straight Line Method, pro rata to the period of use, based on useful lives specified in Schedule II to the Companies Act, 2013.

4. Employee Benefit plans

(i) Defined contribution plans Provident fund

The contributions to the Provident Fund and Family Pension Fund of eligible employees are made to a Government administered Provident Fund i.e The Employees'' Provident Fund amd Miscellaneous Provision Act 1952 and there are no further obligations beyond making such contribution.

(ii) Defined benefit plans Gratuity

The Company participates in the Employees'' Group Gratuity-cum-Life Assurance Scheme of SBI Life Insurance Co. Ltd., a funded defined benefit plan for qualifying employees. Gratuity is payable to all eligible employees on death or on separation / termination in terms of the provisions of the Payment of Gratuity Act, 1972 (as amended from timt to time), or as per the Company''s scheme whichever is more beneficial to the employees.

The liability for the Defined Benefit Plan is provided on the basis of a valuation, using the Projected Unit Credit Method, as at the Balance Sheet date, carried out by an independent actuary.

Assumed discount rates are used in the measurement of the present value of the obligation.

Amount recognized as expenses

Employer''s Contribution to Provident Fund amounting to Rs, 52.70 lakhs (previous year Rs, 26.93 lakhs) has been included in Note 26 Employee Benefits Expenses.

Gratuity cost amounting to Rs, 41.80 lakhs (previous year Rs, 46.87 lakhs) has been included in Note 26 Employee Benefits Expenses.

5. Related Party Disclosures

(i) Related parties where control exists_

Subsidiary Company_

GL Steel and Power Limited

(ii) Related parties with whom transactions have taken place during the year_

Gallantt Ispat Limited (Associte company)

Ganesh Laxmi Processors Private Ltd (Company under common control)

__Gallantt Foundation__(Trust under common control)_

(iii) Key Management personnel_

Mr. Chandra Prakash Agrawal,_Chairman and Managing Director_

Mr. Dinesh R Agarwal_Wholtime Director_

Mr. Prashnat Jalan__Director_

Mr. Sandip Kumar Agarwal_Chief Financial Officer_

Mr. Rajesh Upadhaya Company Secretary

(iv) Relative of key management personnel

Mr. Akash agarwal__(Son of Mr. Dinesh R Agarwal)_

__Mrs. Ritu Agarwal__(Wife of Mr. Sandip Kumar Agarwal)_

6. Capital management

The Company manages its capital to ensure that entities will be able to continue as going concerns while maximising the return to stakeholders through the optimisation of the debt and equity balance. The Capital structure of the Company consists of net debt and the total equity of the Company.

The Company manages its capital structure and makes adjustments 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. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, long term-term borrowings, short-term borrowings, less cash and short-term deposits.

7. Financial risk management objectives and policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables. The Company''s principal financial assets include loans, trade and other receivables, and cash and short-term deposits that derive directly from its operations. The Company also holds FVTOCI investments and enter into derivative transactions. The Company is exposed to market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company seeks to minimize the effects of these risks by using derivative financial instruments to hedge risk exposures. The use of financial derivatives is governed by the Company''s policies approved by the board of directors, which provide written principles on foreign exchange risks, interest rate risk, credit risk, the use of financial derivatives and non-derivative financial instruments. The Company does not enter into or trade financial instruments including derivative financial instruments, for speculative purposes.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates. The Company enters into derivative financial instruments to manage its exposure to foreign currency risk and interest rate risk.

Foreign currency risk management

The Company is exposed to currency risk on account of its borrowings, Receivables for Exports and Payables for Imports in foreign currency. The functional currency of the Company is Indian Rupee. The Company manages currency exposures within prescribed limits, through use of forward exchange contracts. Foreign exchange transactions are covered with strict limits placed on the amount of uncovered exposure, if any, at any point in time.

Interest rate risk management

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of change in market interest rates. The company''s exposure to the risk of changes in market interest rates relates primarily to the company''s short-term debt obligations with floating interest rates.

Interest rate sensitivity analysis

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

(ii) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and loans and advances.

The carrying amount of following financial assets represents the maximum credit exposure:

Trade receivables and loans and advances.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer and the geography in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company monitors each loans and advances given and makes any specific provision wherever required.

Based on prior experience and an assessment of the current economic environment, Management believes there is no credit risk provision required. Also Company does not have any significant concentration of credit risk.

(iii) 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.

Management monitors rolling forecasts of the Company''s liquidity position on the basis of expected cash flows. This monitoring includes financial ratios and takes into account the accessibility of cash and cash equivalents.

The Company has access to funds from debt markets through loan from banks and other Debt instrument. The Company invests its surplus funds in bank fixed deposits.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities as at the Balance Sheet dates

8. Fair value measurements

Refer Note (2.07) for accounting policy on Financial Instruments.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. the following methods and assumptions were used to estimate the fair values:

Fair value of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, working capital loan from banks approximate their carrying amounts largely due to the short term maturities of these instruments.

Financial instruments other than above are carried at amortized cost except certain assets which are carried at fair value.

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique.

Level -1 : Quoted prices in active markets for identical assets or liabilities.

Level -2 : Other techniques for which all inputs which have a significant effects on the recorded fair value are observable.

Level -3 : Techniques using inputs having significant effect on the recorded fair value that are not based on observable market data.

Notes:

1 The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

2 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above pending resolution of the respective proceedings as it is determinable only on receipt of judgments/ decisions pending with various forums/authorities.

41 First Time Adoption of IND AS

41.1 Transition to IND AS

The Company has adopted Indian Accounting Standards (Ind AS) as notified by the Ministry of Corporate Affairs with effect from April 01, 2017, with a transition date of April 01, 2016. These financial statements for the year ended March 31, 2018 are the first financial statements the Company has prepared under Ind AS. For all periods up to and including the year ended March 31, 2017 , the Company prepared its financial statements in accordance with the accounting standards notified under the Section 133 of the Companies Act 2013, read together with the relevant Rules thereunder (''Previous GAAP'').

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Ind AS 101 requires that all Ind AS standards and interpretations that are issued and Effective for the first Ind AS financial statements be applied retrospectively and consistently for all financial years presented. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended March 31, 2018, together with the comparative information as at and for the year ended March 31, 2017 and the opening Ind AS Balance Sheet as at April 01, 2016, the date of transition to Ind AS.

In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP and have been recognized directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its financial statements prepared under previous GAAP, including the Balance Sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.

9 Optional Exemption Availed

(i) Deemed Cost

The Company has elected to continue with the carrying value for (written down value) all of its property, plant and equipment, intangible assets and investment property as recognized in the financial statements as the deemed cost at the date of transition to Ind AS, measured as per the previous GAAP

(ii) Deemed cost for investments in Associates

The Company has elected to continue with the carrying value of its investments in associates as recognized

in the financial statements as at the date of transition to Ind AS. Accordingly, the Company has measured all its investments in associates at their previous GAAP carrying value.

(iii) Business Combination

Ind AS 101 provided the option to apply Ind AS 103 prospectively from the transition date or specific date prior to the transition date. The Company has elected to apply Ind AS 103 prospectively to business combination occurring after its transition date. Business combination prior to the transition date have not been restated.

10.Mandatory Exceptions from retrospective application

(i) Estimates

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

(ii) De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions.

(iii) Classification and measurement of financial assets

The Company has classified and measured the financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

11. There were no material differences between the Statement of Cash Flows presented under Ind AS and the

Previous GAAP.

12. Notes to the Reconciliations:

(i) Deferred tax asset/liability: Indian GAAP requires deferred tax accounting using the income statement Approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of the balance sheet approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

(ii) Derivative contracts: Under Indian GAAP, the premium and discount on forward contracts were amortized over the contract period. For other derivative contracts only mark to market losses were recognized based on prudence. However, under Ind AS all derivatives are measured at fair value at each reporting period and changes therein are recognized in Statement of Profit and Loss.

(iii) Employee benefit: Both under Indian GAAP and Ind AS the Company recognized costs related to postemployment defined benefit plan on an actuarial basis. Under Indian GAAP, actuarial gains and losses are charged to Statement of Profit or Loss, however in Ind AS the actuarial gains and losses are recognized through other comprehensive income.

13. Subsequent Events

There are no significant subsequent events that would require adjustments or disclosures in the financial statements as on the balance sheet date.

14. Balances under Trade receivables, Trade Payables, Loans and Advances payable or receivable are subject to confirmation to be received from some of the parties.

15. Figures for the previous years have been regrouped / restated wherever necessary to conform to current year''s presentation.

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Mar 31, 2016

a Terms/ Rights attached to Equity Shares

The company has only one class of equity shares having a par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders except in the case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amount in proportion of their shareholding. b. Details of Shareholders holding more than 5% Shares in the Company

(a) The above working capital loan from bank is secured by first charge by hypothecation over all the current assets including stocks of raw materials, Stock in process, Finished Goods and book debts- present and future bearing interest @ 11.30% P.A (P.Y. 12.00% ) on Cash Credit Account and @ 9.30% P.A. (P.Y. 10% ) on e-VFS Account at the end of the year.

(b) The above working capital loan from bank is secured by collateral security by way of hypothecation on fixed assets including plant & machinery - both present and future and equitable mortage over immovable properties of the company viz. land and building situated in Kutch, Gujarat.

(c) The above working capital loan from bank is secured by collateral security by pledge of 5,10,500 (P.Y. 5,10,500) equity share of the company held by promoters.

(d) The above working capital loans is guaranteed by the corporate guarantee of M/s Hipoline Commerce Pvt. Ltd.

(e) The above working capital loan is guaranteed by the personal guarantee of Sri C. P. Agrawal, Sri Dinesh R Agarwal and Sri Nitin Kandoi, Directors of the company.

Notes:

(i) Depreciation amount to Rs. 0.02 lacs has been transfererd to preoperative expenses;

(ii) Useful life of the Rolls is consideerd for on year, since the management consider it prudent that the actual usefule life of the Rolls shall not be more than one year.

Note: M/s. Gallantt Udyog Ltd has since been amalgamated with M/s. Gallantt Ispat Ltd. vide order passed by the Hon''orable High Court, Kolkata and hence, on the basis of erstwhile scheme of amalgamation, M/s. Gallantt Ispat Ltd. has issued 17,50,000 equity shares to the company in liue of 21,00,000 shares held by the company in M/s. Gallantt Udyog Ltd.

* Includes interest Rs. 3.31 Lacs (P.Y. Nil ) accrued (net of taxes) on Loans.

** Includes interest Rs. 5.01 Lacs (P.Y. Rs. 18.18 Lacs) accrued (net of taxes) on Fixed Deposits with Banks.

* Interest from others includes Rs. 17.33 Lacs (P.Y Rs. 44.35 Lacs) late payment charges.

** Other Income includes provision no longer required Rs. 49.05 Lacs (P.Y. Rs. 4.73 Lacs).

* Prior period expenses includes Rs. Rs..48 Lacs (P.Y Rs. Nil) in respective head of accounts.

** (Increase) / Decrease of excise duty on inventory shown under expenditure represents differential excise duty on opening and closing stock of finished goods.

*** Miscellaneous Expenses includes Rs. Nil (P.Y. Rs. 45.48 Lacs) on account of Sundry Balance written off

(i) Trade Payable includes (i) Rs. Nil (P.Y. Nil) due to Micro and Small Enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME) and (ii) Rs. 398.03 Lacs (P.Y. Rs. 69.66 Lacs ) due to other parties.

(ii) No interest is paid /payable during the year to any enterprise registered under the MSME.

(iii) The above information has been determined to the extent such parties could be indentified on the basis of the information available with the company regarding status of suppliers under the MSME.

The Company is engaged in the business of production of Iron, Steel & Power. The Company has two reportable business segments i.e. Steel and Power which have been identified in line with the Accounting Standard-17 on "Segment Reporting". Information about Primary Segment is as follows:

(2) Secondary Segment (By Geographical Segment)

The secondary segment is based on geographical demarcation i.e. India & Rest of the World. There is no reportable segment under above category.

1. Previous year figures have been regrouped and rearranged wherever considered necessary.

2. The company has made provision for the payment of '' 264.94 Lacs on account of differential duty of coal for the demand raised by Department of Custom. However the same has been disputed before the CEGAT by the company.

3. Balance of some of the Sundry Debtors, Sundry Creditors, Loans & Advances are subject to confirmation from the respective parties.

4. Based on the profitability projection, the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".

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Mar 31, 2015

1 TRADE PAYABLES

(i) Trade Payable includes (i) Rs. Nil (P.Y. Nil) due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act 2006 (MSME) and (ii) Rs. 69.66 lacs (P.Y Rs. 845.45 lacs ) due to other parties.

(ii) No interest is paid /payable during the year to any enterprise registered under the MSME.

(iii) The above information has been determined to the extent such parties could be indentified on the basis of the information available with the company regarding status of suppliers under the MSME.

2 Previous year figures have been regrouped and rearranged wherever considered necessary.

3 During the year the company has revised the estimated useful life of its fixed assets to align with the useful life as provided in schedule II of the Company's Act, 2013. The retained earnings after completition of useful life of the fixed assets are adjusted with the depreciation and amortisation in terms of the provision of the Act

4 Balance of some of the sundry debtors, sundry creditors, loans & advances are subject to confirmation from the respective parties.

5 Based on the profitability projection, the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".

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Mar 31, 2014

(i) Current portion of the loan have been grouped under "Current maturity of long term debt" (refer note - 7 ).

(ii) Terms of repayment for secured borrowings

(a) Term Loan amounting to Rs. 2152.38 Lacs (P.Y. Rs. 3161.00 Lacs) is repayable in 14 quarterly installments commencing from June 2012. Last installment is due in September 2015. Rate of interest 13.25% P.A as at the year end (P.Y. 12.95% P.A). (iii) Nature of Security for secured borrowing

(a) The above term loans are secured by first pari pasu charge on all the fixed assets (present and future) and second pari pasu charge on current assets of the plant situated in Kutch, Gujarat.

(b) The above term loans are secured by equitable mortgage of house property of Sri S.K. Agrawal, relative of director and collateral security by pledge of 5,10,500 (P.Y. 5,10,500) equity share of the company held by promoters.

(c) The above term loans has been guaranteed by the corporate guarantee of M/s. Gallantt Udyog Ltd. to the extent of shares pledged aggregating 1,46,50,000 equity shares of Rs. 10/- each and corporate guarantee of M/s Hipoline Commerce Pvt. Ltd.

(d) The above term loans has been guaranteed by the personal guarantee of Sri C.P. Agrawal, Sri Dinesh R Agarwal, Sri Nitin Kandoi Director of the company and Mr. S.K.Agrawal relative of the director.

(e) Deffered sales tax loan is interest free and payable in 6 equal yearly installment of Rs. 4.89 Lacs payable from 2011-12.

(i) The above working capital loan from bank is secured by first charge on all the current assets and second charge on fixed assets of the plant situated in Kutch, Gujarat bearing interest @ 11.70% P.A (P.Y. 10.20% ) on Cash Credit Account and @ 10% P.A. (P.Y. Nil ) on e-VFS Account at the end of the year. (ii) The above working capital loan from bank is secured by equitable mortgage of house property of Sri S.K.Agrawal, relative of director and collateral security by pledge of 5,10,500 (P.Y. 5,10,500) equity share of the company held by promoters.

(iii) The above working capital loans is guaranteed by the corporate guarantee of M/s. Gallantt Udyog Ltd. to the extent of shares pledged aggregating 1,46,50,000 equity shares of Rs. 10/- each and corporate guarantee of M/s Hipoline Commerce Pvt. Ltd.

(iv) The above working capital loan is guaranteed by the personal guarantee of Sri C.P. Agrawal, Sri Dinesh R Agarwal, Sri Nitin Kandoi director of the company and Mr. S.K.Agrawal relative of the director.

2 TRADE PAYABLES

(i) Trade Payable includes (i) Rs. Nil (P.Y. Nil) due to micro and small enterprises registered under the Micro, Small and Medium

Enterprises Development Act 2006(MSME) and (ii) Rs. 845.45 Lacs (P.Y Rs. 7405.89 Lacs) due to other parties. (ii) No interest is paid/payable during the year to any enterprise registered under the MSME.

(iii) The above information has been determined to the extent such parties could be indentified on the basis of the information available with the company regarding status of suppliers under the MSME.

3 RELATED PARTY DISCLOSURES

(i) Associate Company Gallantt Ispat Ltd Ganesh Laxmi Processors Pvt. Ltd.

(ii) Key Managerial Personnel Mr. Chandra Prakash Agrawal Mr. Dinesh R. Agarwal Mr. Prashant Jalan

4 SEGMENT REPORTING

(1) Primary Segment (By Business Segment) :

The Company is engaged in the business of production of Iron, Steel & Power. The Company has two reportable business segments i.e. Steel and Power which have been identified in line with the Accounting Standard-17 on "Segment Reporting". Information about Primary Segment is as follows :

5 Previous year figures have been regrouped and rearranged wherever considered necessary.

6 The Company has assessed its fixed assets for impairment at the end of the year and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts.

7 Balance of some of the sundry debtors, sundry creditors, loans & advances are subject to confirmation from the respective parties.

8 Based on the profitability projection, the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".

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Mar 31, 2013

1 SEGMENT REPORTING

(1) Primary Segment (By Business Segment):

The Company is engaged in the business of production of Iron'' Steel & Power. The Company has two reportable business segments i.e. Steel and Power which have been identified in line with the Accounting Standard-17 on "Segment Reporting". Information about Primary Segment is as follows :

2 Previous year figures have been regrouped and rearranged wherever considered necessary.

3 The Company has assessed its fixed assets for impairment at the end of the year and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts.

4 Balance of some of the sundry debtors'' sundry creditors'' loans & advances are subject to confirmation from the respective parties.

5 Based on the profitability projection'' the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".

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Mar 31, 2012

(a) Terms/rights attached to equity shares

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 dividend proposed by the Board of Directors is subject to the approval of the shareholders except in the case of interim dividend. In the event of liquidation, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amount in proportion of their shareholding.

(i) Term loan includes corporate loan of Rs. 13.10 crores.

(ii) Current portion of the loan have been grouped under "Current maturity of long term debt"(refer note - 7).

(iii) Terms of repayment for secured borrowings

(a) Term loan amounting to Rs. 572.50 lacs (P.Y. Rs. 2862.50 lacs) is repayable in 20 quarterly installments commencing from July 2007. Last installment is due in April 2012. Rate of interest 13.25 ACU- P.A as at the year end (P.Y. 11.75 ACU- P.A).

(b) Term loan amounting to Rs. 282.50 lacs (P.Y. Rs. 742.50 lacs) is repayable in 20 quarterly installments commencing from January 2008. Last installment due is in October 2012. Rate of interest 13.25 ACU- P.A as at the year end (P.Y. 11.75 ACU- P.A).

(c) Term loan amounting to Rs. 3780.00 lacs (P.Y. Rs. 3780.00 lacs) is repayable in 14 quarterly installments commencing from June 2012. Last installment is due in September 2015. Rate of interest 13.25 ACU- P.A as at the year end (P.Y. 11.75 ACU- P.A).

(d) Corporate loan amounting to Rs. 1310.00 lacs (P.Y. Rs. 1310.00 lacs) is repayable in 8 quarterly installments commencing from June 2012. Last installment is due in March 2014. Rate of interest 13.25 ACU- P.A as at the year end (P.Y. 11.75 ACU- P.A).

(iv) Nature of Security for secured borrowing

(a) All the above term loans are secured by first pari pasu charge on all the fixed assets (present and future) and second paripasu charge on current assets of the plant situated in Kutch, Gujarat.

(b) All the above term loans are secured by equitable mortgage of house property of Sri S.K.Agarwal, relative of director and collateral security by pledge of equity share of the Company held by promoters.

(c ) Further the above term loans has been guaranteed by the corporated guarantee of M/s. Gallantt Udyog Ltd. to the extent of shares pledged aggregating 146.50 lacs equity shares of Rs. 10/- each and M/s Hipoline Commerce Pvt. Ltd.

(d) Further the above term loans has been guaranteed by the personal guarantee of Sri C.P. Agarwal, Sri Dinesh R Agarwal, Sri Nitin Kandoi director of the company and Mr. S.K.Agarwal relative of the director.

(v) Vehicle loan is secured by hypothecation of respective vehicles.

(vi) Deffered sales tax loan is interest free and payable in 6 equal yearly installment of Rs. 4.89 lacs payable from 2011-12.

(i) Working capital loan includes working capital term loan of Rs. 2018.68 lacs bearing interest AEA-11 ACU- P.A (P.Y. Nil) and repayable in May 2012.

(ii) Working capital loan from bank is secured by first charge on all the current assets and second charge on fixed assets of the plant situated in Kutch, Gujarat bearing interest AEA- 13.75 ACU- P.A (P.Y. 12 ACU-) at the end of the year.

(i) Trade Payable includes (i) Rs. Nil (P.Y. Nil) due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act 2006 (MSME) and (ii) Rs. 3260.41 lacs (P.Y. Rs. 2630.01 lacs ) due to other parties.

(ii) No interest is paid/payable during the year to any enterprise registered under the MSME.

(iii) The above information has been determined to the extent such parties could be indentified on the basis of the information available with the company regarding status of suppliers under the MSME.

(i) Associate Company

Gallantt Udyog Ltd

Gallantt Ispat Ltd

Ganesh Laxmi Processors Pvt. Ltd.

Hipoline Commerce Pvt. Ltd.

(ii) Key Managerial Personnel Mr. Chandra Prakash Agrawal Mr. Dinesh R. Agarwal

1 SEGMENT REPORTING (1) Primary Segment (By Business Segment):

The Company is engaged in the business of production of Iron, Steel & Power. The Company has two reportable business segments i.e. Steel and Power which have been identified in line with the Accounting Standard-17 on "Segment Reporting". Information about Primary Segment is as follows :

(2) Secondary Segment (By Geographical Segment):

The secondary segment is based on geographical demarcation i.e. India & Rest of the World. There is no reportable segment under above category.

2011-12 2010-11

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

(i) Curtailing the assured benefit of exemption granted to New Industrial unit in Kutch, Gujarat. The Company is entitled to exemption for 100 ACU- of the duty paid in Cash after utilization of CENVAT Credit for 5 years from the date of Commercial Production. Hon'ble High Court of Gujarat has granted the verdict in favor of Company, Department preferred appeal in Supreme Court. 1040.44 1040.44

(ii) Custom/Excise duty on Capital Goods imported/purchased under EPCG Scheme, against which export obligation is to be full filled. 198.50 470.97

(iii) Disputed liability in respect of sales tax (out of which Rs. 42.00 lacs has already been paid. 80.04 80.04

(iv) Wealth tax demand from A.Y 2006-07 to 07-08. 3.04 -

(v) Input VAT Credit on coal purchases taken by the company and not Agreed to by the Department. 40.33 40.33

(vi) Claim against the company not acknowledged debt in respect of disputed liability of freight with railway. Case is pending in Hon'ble High court, Gujarat. 161.45 -

3 The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre- revised Schedule VI to the companies Act, 1956. Consequent to the notification under the Companies Act, 1956 the financial statements for the year ended 31st March 2012 are prepared under revised schedule VI. Accordingly the previous year figures have also been reclassified to conform to this year classification.

4 The Company has assessed its fixed assets for impairment at the end of the year and concluded that there has been no significant impaired fixed assets that needs to be recognised in the books of accounts.

5 The remission scheme on sales tax charged on sales for a period of ten years subject to sales tax collected and refund of VAT on material purchased up to Rs. 91.09 Crore has been exhausted during the financial year ending on March, 2011.

6 The Scheme of remission of excise duty provided by the department of Central Excise for five years from the date of production by way of refund of excise duty paid has been completed during the financial year ending on March, 2011.

7 Balance of some of the sundry debtors, sundry creditors, loans & advances are subject to confirmation from the respective parties.

8 Based on the profitability projection, the Company is certain that there would be sufficient taxable income in the future to claim the "MAT credit Entitlement".

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Mar 31, 2011

1. Contingent Liabilities

Contingent Liabilities not provided for in respect of

Description 2010-2011 2009-2010

Guarantees given by the bank on behalf of the Company 381.92 236.33 (margin money kept by way of fixed deposit of Rs. 244.67 lacs (Previous year - Rs. 245.12 lacs)

Curtailing the assured benefit of exemption granted to New Industrial unit in Kutch, 1,040.44 1,026.34 Gujarat. The Company is entitled to exemption for 100% of the duty paid in Cash after utilisation of CENVAT Credit for 5 years from the date of Commercial Production. Hon'able High Court of Gujarat has granted the verdict in favor of Company, Department preferred appeal in Supreme Court

Custom / Excise duty on Capital Goods imported / purchased under 470.97 470.97 EPCG Scheme, against which export obligation is to be fulfilled

Dispute liability in respect of sales tax 80.04 - (out of which Rs. 42.00 lacs has already been paid)

Input VAT Credit on coal puchases taken by the 40.33 - company and not agreed to by the Department

2.1. (a) Primary Securities: i) Term Loans:

(a) First Pari pasu charge over all the borrower's fixed assets (Present & Future).

(b) Second Pari pasu charge over all the borrowers' current assets including cash & Bank balances, Stock etc.

ii) Working Capital Facilities:

First charge on all the current assets of the company (Present & Future) and the second charge on the fixedassets of the company.

(iii) Vehicle loan received from bank is secured against hypothecation of respective vehicles.

(b) Collateral Securities:

(i) Equitable mortgage of house property of Sri S.K Agrawal, relative of director. (ii) Collateral Security by pledge of equity shares of the company held by promoters.

(c) Corpoarte& Personal Guarantee:

(i) M/s Gallantt Udyog Ltd. to the extent of shares pledged aggregating 1,46,50,000 equity shares having face value of Rs. 10/-each.

(ii) M/s Hipoline Commerce Pvt. Ltd. (on account of merger of erstwhile M/s Ganesh Laxmi Steel Pvt. Ltd.).

(iii) Personal Guarantee of Sri C. P. Agarwal, Sri Dinesh R. Agarwal, Sri Nitin M. Kandoi and Sri S. K. Agarwal to the extent of mortgaged created.

3. Impairment of Assets

Pursuant to Accounting Standard (AS 28) Impairment of Assets issued by Institute of Chartered Accountant of India, the Company assessed its fixed assets for impairment as at March 31, 2011 and concluded that there has been no significant impaired fixed asset that needs to be recognised in the books of accounts.

4. Excise duty and cess on stock represents differential excise duty and cess on opening and closing stock of finished goods.

5. Disclosure as per Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 :

The Company has not received any intimation from "suppliers" regarding status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amount unpaid as at the year end together with the interest paid/payable as required under the said act have not been furnished.

6. Sundry Creditors include Rs. Nil (Previous Year Rs. Nil) due to Small Scale industrial undertaking to the extent such parties have been identified from the available documents / information.

7. Balance of some of the Sundry Debtors, Creditors, Loans and Advances are subject to confirmation from respective parties.

8. Other Receivable under the head Loans & Advances includes Excise Duty Rs. 1040.44 lacs and Sales Tax Rs. 419.64 lacs (Previous Year Rs. 1260.42 lacs and Rs.444.92 lacs respectively)

9. Current liabilities include Rs. 29.34 lacs (Previous Year Rs. 29.34 lacs) payable to Gujarat Sales Tax after 10 year from the year 2005-06 under Sales Tax incentive scheme enjoying by the company.

10. The remission scheme on Sales Tax charged on sales for a period of ten year subject to sales tax collected and refund of VAT on material purchased upto Rs. 91.09 crore has been exhausted during the year.

11. The scheme of remission of excise duty provided by the Department of Central Excise for five year from the date of production by way of refund of the excise duty paid has been completed during the year.

12. Related Party Disclosures (As identified by the Management)

(a) Name of Related Parties and Description of Relationship

I. Associate Company

Gallantt Udyog Ltd. GallanttlspatLtd. GaneshLaxmi Processors Pvt. Ltd. Hipoline Commerce Pvt. Ltd.

II. Key Managerial Personnel

Mr. Chandra Prakash Agarwal Mr. DineshR. Agarwal Mr. Nitin M. Kandoi

13. Employee Benefits:

Gratuity - Defined Benefit Plant - Provision made as per actuarial valuation. The Company has covered its gratuity liability by a group gratuity policy with SBI Life Insurance Company Ltd.

14. Previous year figures have been regrouped and reclassified wherever necessary to facilitate comparison with Current year figures.

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Mar 31, 2010

1. Contingent Liabilities

Contingent Liabilities not provided for in respect of

(Rs. in lacs)

Description 2009-2010 2008-2009

i) Guarantees given by the bank on behalf of the Company 236.33 236.33

(margin money kept by way of fixed deposit of Rs. 245.12 lacs (Previous year - Rs. 229.87 lacs)

ii) Curtailing the assured benefit of exemption granted to 1,026.34 1,107.45

New Industrial unit in Kutch, Gujarat. The Company is entitled to exemption for 100% of the duty paid in Cash after utilisation of CENVAT Credit for 5 years from the date of Commercial Production. Honable High Court of Gujarat has granted the verdict in favor of Company, however the amount is yet to be received

iii) Custom / Excise duty on Capital Goods imported / purchased under 470.97 441.91

EPCG Scheme, against which export obligation is to be fullfilled

iv) Demand of export duties on goods expoted as per FOB price as the - 56.56

cum duty price (demand and appeal is pending)

2.1. (a) Primary Securities

i) Term Loans

(a) First Pari pasu charge over all the borrower’s fixed assets (Present & Future).

(b) Second Pari pasu charge over all the borrowers’ current assets including Cash & Bank balances, Stock etc.

ii) Working Capital Facilities

First charge on all the current assets of the company (Present & Future) and the second charge on the fixed assets of the company.

iii) Vehicle loan received from bank is secured against hypothecation of respective vehicles.

(b) Collateral Securities

i) Equitable mortgage of house property of Sri S. K. Agrawal, relative of director.

ii) Collateral Security by pledge of equity shares of the company held by promoters.

(c) Corpoarte & Personal Guarantee

i) M/S Gallantt Udyog Ltd. to the extent of shares pledged aggregating 1,46,50,000 equity shares having face value of Rs. 10/- each ii) M/S. Hipoline Commerce Pvt. Ltd. (on account of merger of erstwhile M/s. Ganesh Laxmi Steel Pvt. Ltd.). iii) Personal Guarantee of the Sri C. P. Agarwal, Sri Dinesh Kumar Agarwal, Sri Nitin M. Kandoi and Sri S. K. Agarwal to the extent of mortgaged created.

3. Impairment of Assets

Pursuant to Accounting Standard (AS 28) Impairment of Assets issued by Institute of Chartered Accountant of India, the Company assessed its fixed assets for impairment as at March 31, 2010 and concluded that there has been no significant impaired fixed asset that needs to be recognised in the books of accounts.

4. Excise duty and cess on stock represents differential excise duty and cess on opening and closing stock of finished goods.

5. During the year company has valued the closing stock of finished goods without considering the interest on borrowed fund charges to revenue, whereas in the preceding previous year interest on borrowed fund was included in the valuation of closing stock. Due to the aforesaid change in accounting policy the value of closing stock as at year end has been decreased by Rs. 17.56 lacs.

6. Disclosure as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 :

The company has not received any intimation from "suppliers" regarding status under the Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures, if any, relating to amount unpaid as at the year end together with the interest paid/payable as required under the said act have not been furnished.

7. Sundry Creditors include Rs. Nil (Previous Year Rs. Nil) due to Small Scale industrial undertaking to the extent such parties have been identified from the available documents / information.

8. Balance of some of the Sundry Debtors, Creditors, Loans and advances are subject to confirmation from respective parties.

9. Other Receivable under the head Loans & Advances includes Excise duty Rs. 1260.42 lacs and Sales Tax Rs. 444.92 lacs.

10. Current liabilities include Rs. 29.34 lacs payable to Gujarat Sales Tax after 10 year from the year 2005-06 under Sales Tax incentive scheme enjoying by the company.

11. Related Party Disclosures (As identified by the Management)

(A) Name of Related Parties and Description of Relationship.

I. Associate Company Gallantt Udyog Ltd. Gallantt Ispat Ltd.

Ganesh Laxmi Processors Pvt. Ltd. Hipoline Commerce Pvt. Ltd.

II. Key Managerial Personnel Mr. Chandra Prakash Agarwal, Mr. Dinesh R. Agarwal

Mr. Nitin M. Kandoi, Mr. Mahesh H Gupta

12. Previous year figures have been regrouped and reclassified wherever necessary to facilitate comparison with Current year figures.