Notes to Accounts of Heera Ispat Ltd.

Mar 31, 2025

H. Provisions, contingent liabilities and contingent assets

Provisions are recognised only when:

a) the company has a present obligation (legal or constructive) as a result of a past event;

b) it is probable that an outflow of resources embodying economic benefits will be required to settle

the obligation; and

c) a reliable estimate can be mad e of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when
the effect of time value of money is material, the carrying amount of the provision is the present
value of those cash flows. Reimbursement expected in respect of expenditure required to settle a
provision is recognised only when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

d) a present obligation arising from past events, when it is not probable that an outflow of resources

will be required to settle the obligation; and

e) a present obligation arising from past events, when no reliable estimate is possible. Contingent

assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Department appeals, in respect of cases won by the Company, are also considered as Contingent
Liabilities.

I. Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits
with banks and other short term highly liquid investments that are readily convertible to know
amounts of cash and which are subject to an insignificant risk of changes in value where original
maturity is three months or less.

J. Employee benefits

Short-term employee benefits are measured on an undiscounted basis and expensed as the
related service is provided. A liability is recognised for the amount expected to be paid under
short-term cash bonus, if the Group has a present legal or constructive obligation to pay this
amount as a result of past service provided by the employee and the obligation can be estimated
reliably.

K. Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and
financing activities. Cash flow from operating activities is reported using indirect method,
adjusting the net profit for the effects of:

¦ changes during the period in inventories and operating receivables and payables transactions
of a non-cash nature;

¦ non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency
gains and losses, and undistributed profits of associates; and

¦ all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows
exclude items which are not available for general use as on the date of Balance Sheet.

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Mar 31, 2024

H. Provisions, contingent liabilities and contingent assets

Provisions are recognised only when:

a] the company has a present obligation (legal or constructive) as a result of a past event;

b] it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; and

c] a reliable estimate can be mad e of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect
of time value of money is material, the carrying amount of the provision is the present value of those cash
flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only
when it is virtually certain that the reimbursement will be received.

Contingent liability is disclosed in case of:

d] a present obligation arising from past events, when it is not probable that an outflow of resources
will be required to settle the obligation; and

e] a present obligation arising from past events, when no reliable estimate is possible. Contingent
assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.
Department appeals, in respect of cases won by the Company, are also considered as Contingent
Liabilities.

I. Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks
and other short term highly liquid investments that are readily convertible to know amounts of cash and
which are subject to an insignificant risk of changes in value where original maturity is three months or
less.

J. Employee benefits

Short-term employee benefits are measured on an undiscounted basis and expensed as the related
service is provided. A liability is recognised for the amount expected to be paid under short-term cash
bonus, if the Group has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.

K. Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing
activities. Cash flow from operating activities is reported using indirect method, adjusting the net profit
for the effects of:

¦ changes during the period in inventories and operating receivables and payables transactions of a
non-cash nature;

¦ non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and
losses, and undistributed profits of associates; and

¦ all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items
which are not available for general use as on the date of Balance Sheet.

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Mar 31, 2015

OTE - 1 - RELATED PARTY DISCLOSURE :

Related Parties with whom transactions have taken place during the year.

Key Managerial Personnel :

1) Ramesh Mistry

2) Dharmesh Mistry

3) Alpesh Patel

4) Dinesh Rao

5) Radheshyam Lodha

6) Ramanugrah Rambahalsingh

7) Suhag V Shah

8) Prakash N Shah

NOTE - 2 - Dues to Micro and Small Enterprises as defined under the MSMED Act , 2006 :

There are no dues to Micro & Small Enterprises as defined under the MSMED Act, 2006.

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Mar 31, 2014

1. Corporate Information

Heera Ispat Ltd. is a Public Limited Company incorporated in India under the provisions of The Companies Act, 1956. The Company is engaged in business of manufacturing and trading of steels and alloys. The Company caters to domestic market and operates all over India.

2. Basis of preparation

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

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below:

NOTE 3 - Dues to Micro and Small Enterprises as defined under the MSMED Act , 2006

There are no dues to Micro & Small Enterprises as d efined under the MSMED Act, 2006

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Jun 30, 2013

1- Corporate Information

Heera Ispat Ltd. is a Public Limited Company incorporated in India under the provisions of The Companies Act, 1956. The Company is engaged in business of manufacturing and trading of steels and alloys. The Company caters to domestic market and operates all over India.

2. Basis of preparation

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

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year, except for the change in accounting policy explained below:

NOTE 3 - EARNINGS PER SHARE

Basic earning per share is computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period.

NOTE 4 - RELATED PARTY DISCLOSURE Related Parties with whom transactions have taken place during the year

Key Managerial Personnel

1) Ramesh Mistry 5) Radheshyam Lodha

2) Hasumati Mistry 6) Ramanugrah Rambahalsingh

3) Dharmesh Mistry 4)Alpesh Patel

NOTE 5 - Dues to Micro and Small Enterprises as defined under the MSMED Act, 2006

There are no dues to Micro & Small Enterprises as defined under the MSMED Act, 2006

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Jun 30, 2011

1. As informed to us by the company, contingent liabilities not provided for Nil.(P.Y. Rs. Nil)

2. Estimated amount of contracts remaining to be executed on capital account is Rs.NIL (P.Y. Rs. NIL).

3. Balance of Sundry Debtors, Creditors, Loans & Advances and Current liabilities, and classification under the above heads, in absence of any documentary support, given and accepted as agreed by management, are subject to confirmation.

4. The company has entered into an agreement for sale of 7538 square meters of land, on 11 July, 1994 with (1) Chandulal Tribhovandas Mistry and his 4 family members (2) Upendra Chandulal Mistry and his 4 family members, (3) Smt. Kamlaben C Mistry, (4) Smt. Gitaben N Mistry, (5) Smt. Hasumati R Mistry, (6) Bharatkumar G. Mistry, (7) Smt.Ramuben T Mistry, with the condition that possession of land which the company can develop and do the construction activity for it's factory. Hence land development has been shown in Fixed asset schedule even though land is not shown, as Fixed asset due to final sale deed of purchase of land is not made. As informed by the Management final sale deed for lands is yet not executed and extends the period for final sale deed.

5 Earning Per Share

The earnings considered in ascertaining the Company's EPS comprises the net profit/(loss) after tax (and includes the post tax effect of any extra ordinary items) attributable to equity shareholder. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year .

6. According to the records available with the company, there were no dues to Micro and Small enterprises under the Micro, Small and Medium Enterprises Development Act 2006. Hence disclosures, if any, relating to amounts unpaid as at the period end together with the interest paid/payable as required under the said Act have not been given

7. In the opinion of the management, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business which includes advances given for advances given to the parties and recovery is also not received as per mutual understanding.

8. For the Current Year on review, as required by the Accounting Standard 28, Impairment of Fixed Assets, the management is of the opinion that no impairment or reversal of loss is required.

9. Previous year figures have been reclassified / regrouped whenever considered necessary to confirm to the current year figures.

10. The statement of Significant Accounting Policies and the Notes numbered 2 to 11 above form an integral part of the accounts for the year ended 30 June, 2011

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Jun 30, 2010

1. As informed to us by the company, contingent liabilities not provided for Nil.(P.Y. Rs.Nil)

2. Estimated amount of contracts remaining to be executed on capital account not provided as informed to us by the management.

3. Balance confirmation from any party / banks are not obtained by the company which are subject to adjustments if any and Bank balances are subject reconciliation.

4. The company has entered into an agreement for sale of 7538 square meters of land, on 11th July, 1994 with (1) Chandulal Tribhovandas Mistry and his 4 family members (2) Upendra Chandulal Mistry and his 4 family members, (3) Smt. Kamlaben C Mistry, (4) Smt. Gitaben N Mistry, (5) Smt. Hasumati R Mistry, (6) Bharatkumar G. Mistry, (7) Smt.Ramuben T Mistry, with the condition that possession of land which the company can develop and do the construction activity for it's factory. Hence land development has been shown in Fixed asset schedule even though land is not shown, as Fixed asset due to final sale deed if purchase of land is not made. As informed by the Management final sale deed for lands is yet not executed and extends the period for final sale deed.

5. (a) Dues to small scale Industrial Undertaking is disclosed based on the information available with the company regarding the status of the suppliers as defined under the " Interest on Delayed Payments to small Scale & Ancillary Industrial Act, 1993."

(b) Unpaid interest as on 30th June, 2010 Rs. Nil ( previous year Rs. Nil)

6. In the opinion of the management, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business which includes advances given for advances given to the parties and recovery is also not received as per mutual understanding. The Company has also not given clarification for advances given for capital expenditure and negotiation with suppliers and accordingly adequate provision should be made which is under consideration of the management and to that extent profitability will be adversely affected as when provision be made.

7. Related party disclosures:

As required by accounting standards: as 18" Related parties disclosure issued by the institute of chartered accountants of India are as under:

(a) List of Related parties with whom transaction have taken place during the year and relationship.

Sr.No. Name of Related party Relation ship

1 Chandulal T. Mistry Brother of Director

2 Hasumati R. Mistry Director

3 Ramesh T. Mistry Director

(b) There is no transaction during the year.

8. Additional information pursuant to the provision of the paragraph 3 & 4 of the part II of the schedule VI of the Companies Act, 1956.

1) Quantitative details of goods manufactured Nil

2) CIF Value of imports in respect of Nil

(a) Raw Material Nil

(b) Components & spare parts Nil

(c) Capital Goods Nil

3) Expenditure in Foreign Currency Nil

4) Earnings in Foreign Currency Nil

5) Remittance on A/c of Dividend Nil

9. For the Current Year on review, as required by the Accounting Standard 28, Impairment of Fixed Assets, the management is of the opinion that no impairment or reversal of loss is required.

10. Previous year figures have been reclassified / regrouped whenever considered necessary to confirm to the current year figures.

11. The statement of Significant Accounting Policies and the Notes numbered 2 to 11 above form an integral part of the accounts for the year ended 30th June, 2010

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Jun 30, 2009

1. As informed to us by the company, contingent liabilities not provided tor Nil.(P,Y. Rs. Nil)

2. Estimated amount of contracts remaining to be executed on capital account not provided as informed to us by the management.

3. Balance confirmation from any party / banks are not obtained by the company which are subject of adjustments if any and Bank balances are subject reconciliation.

4. The company has entered into an agreement for sale of 7538 square meters of land, on 11 July, 1994 with (1) Chandulal Tribhovandas Mistry and his 4 family members (2) Upendra Chandulal Mistry and his 4 family members, (3) Smt. Kamiaben C Mistry, (4) Smt. Gltaben N Mistry, (5) Smt. Hasumati R Mistry, (6) Bharatkumar G. Mistry, (7) Smt Raniuben T Mistry, with the condition that possession of land which the company can develop and do the construction activity for its factory. Hence land development has been shown in Fixed asset schedule even though land is not shown, as Fixed asset due to final sale deed if purchase of land is not made. As informed by the Management final sale deed for lands is yet not executed and extends the period for final sale deed.

5 Earnings Per Share

The earnings considered in ascertaining the Company's EPS comprises the net profit/(loss) after tax (and includes the post tax effect of any extra ordinary items) attributable to equity shareholder. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the year,

6. (a) Dues to small scale Industrial Undertaking is disclosed based on the information available with the company regarding the status of the suppliers as defined under the " Interest on Delayed Payments to small Scale &. Ancillary Industrial Act. 1993."

(b) Unpaid interest as on 30lU June, 2009 Rs. Nil ( previous year Rs. Nil)

7. In the opinion of the management, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of the business which includes advances given for advances given to the parties and recovery is also not received as per mutual understanding. The Company has also not given clarification for advances given for capital expenditure and negotiation with suppliers and accordingly adequate provision should be made which is under consideration of the management and to that extent profitability will be adversely affected as when provision be made.

8.Related party disclosures;

As required by accounting standards: as 18" Related parties disclosure issued by the institute of chartered accountants of India are as under:

(a) List of Related parties with whom transaction have taken place during the year and relationship.

(b) There is no transaction during the year.

(c) Outstanding balance as on 30,06,2009

9 Additional information pursuant to the provision of the paragraph 3 & 4 of the part 11 of the schedule VI of the Companies Act, 1956.

10. For the Current Year on review, as required by the Accounting Standard 28, Impairment of Fixed Assets, the management is of the opinion that no impairment or reversal of loss is required.

11. Previous year figures have been reclassified / regrouped whenever considered necessary to confirm to the current year figures.

12. The statement of Significant Accounting Policies and the Notes numbered 2 to 11 above form an integral part of the accounts for the year ended 30!h June 2009

13. During the year management has decided to write off opening balance of preliminary expenses

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Jun 30, 2008

1. As informed to us by the company, Contingent liabilities not provided for Rs.1 Estimated, amount of contracts remaining, to be executed on Capital account and not provided as informed; to us by the management

2 Preliminary and public issue expenses are not written off during the year under review by Rs. 431331/- and to that extent loss is lower in profit & loss a/c. As per policy of the company it should be written off over a period ten years in equal amount.

3 Balance Confirmations from any party banks are not obtained by the company, which are subject to adjustments if any and Bank balances are subject reconciliation.

4, Depreciation as per straight-line method is not provided during the year o: fixed assets for Rs 12951202/- as decided by the management due to no: activity of the company during the year.

5 The company has entered into an agreement for sale of. 7538 Square Meters Lan on 11th' July, 1994 with

(1) Chandulal Tribhovandas Mistry and his 4 family members

(2) Upendra Chandulal Mistry and his 4 family members,

(3) Smt Kamlaben C Mistry,

(4) Smt. Gitaben N Mistry,

(5) Smt. Hasumati R Mistry,

(6) Bharat kumar G Mistry,

6 Smt. Reuben T Mistry with the condition possession of land which the company can develop and do the construction activity for its factory. Hence Land Development shown in Fixed Asset schedule even though Land is not shown, as Fixed Asset due to final sale deed purchase of land is not made. As informed by the Management final sale the for lands is yet not executed and extends the period for final' sale deed.

7 The directors have waived their remuneration voluntarily from the amount determined in the Annual General meeting.

8. The opinion of the management, the Current Assets, loans and Advances are approximately of the value stated if realized in the ordinary course of the business which includes advances given for advances given to the parties an recovery is also not received as per mutual understanding. The company has also not given clarification for. advances given for capital expenditure and negotiation with suppliers and accordingly adequate provision should be made which is - under consideration of the management and to that extent profitability will be adversely affected as when provision be' made.

9. As Inform to us, the company has not claimed depreciation on fixed assets and loss carried forward in income tax, hence no deferred tax liability/asset; provision is made in books of accounts as per accounting standard norms.

10.The company has incurred loss and hence calculation of basic and Dil. Earnings per Share is not given.

11.Related Party Disclosures;

As required by accounting Standards; AS 18 " Belated Parties Disclosure issued' by: The Institute of Chartered' Accountants of India: are asunder;

12. The figures of the previous year have been regarded/rearranged wherever necessary.