Notes to Accounts of Investment & Precision Castings Ltd.

Mar 31, 2025

q. Provisions and contingent liabilities

The Company creates a provision when there is
present obligation (legal or constructive) as a result
of past events that probably requires an outflow of
resources and a reliable estimate can be made of the
amount of obligation.

Contingent liabilities are disclosed in respect of
possible obligations that arise from past events,
whose existence would be confirmed by the
occurrence or non-occurrence of one or more
uncertain future events. Contingent assets are
neither recognised nor disclosed in the financial
statements.

r. Impairment of non financial assets

As at each reporting date, the Company assesses
whether there is an indication that a non-financial
asset may be impaired and also whether there is an
indication of reversal of impairment loss recognised
in the previous periods. If any indication exists, or
when annual impairment testing for an asset is
required, the Company determines the recoverable
amount and impairment loss is recognised when the
carrying amount of an asset exceeds its recoverable
amount. If the amount of impairment loss
subsequently decreases and the decrease can be
related objectively to an event occurring after the
impairment was recognised, then the previously
recognised impairment loss is reversed through the
statement of profit and loss.

s. Leases

The Company, as a lessee, recognises a right-of-use
asset for its leasing arrangements, if the contract
conveys the right to control the use of an identified
asset.

The contract conveys the right to control the use of
an identified asset, if it involves the use of an
identified asset and the Company has substantially
all of the economic benefits from use of the asset and
has right to direct the use of the identified asset. The
cost of the right-of-use asset shall comprise of the
amount of the initial measurement of the lease
liability adjusted for any lease payments made at or
before the commencement date plus any initial
direct costs incurred. The right-of-use assets is
subsequently measured at cost less any accumulated
depreciation, accumulated impairment losses, if any
and adjusted for any remeasurement of the lease
liability. The right-of-use assets is depreciated using
the straight-line method from the commencement
date over the shorter of lease term or useful life of
right-of-use asset.

t. Earnings Per Share

(i) Basic earnings per share is computed by dividing the
net profit or loss for the period attributable to the
equity shareholders of the Company by the weighted
average number of equity shares outstanding during
the period. The weighted average number of equity
shares outstanding during the period and for all
periods presented is adjusted for events, such as
bonus shares, other than the conversion of potential
equity shares that have changed the number of
equity shares outstanding, without a corresponding
change in resources.

(ii) For the purpose of calculating diluted earning per
share, the net profit or 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.

u. Segment reporting

The Company publishes this financial statement
along with the consolidated financial statements. In
accordance with Ind AS 108, Operating Segments,
the Company has disclosed the segment information
in the consolidated financial statements.

e. Rights, preferences and restrictions attached to shares :

The company has one class of equity shares having a face value of Rs.10 each ranking paripasu in all respect
including voting rights and entitlement to dividend. Each holder of equity shares is entitled to one vote per share.
Dividend proposed by the board of directors and approved by the shareholders in the annual general meeting is
paid to the shareholders.

General reserve: The Company has transferred a portion of the net profit of the Company before declaring
dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to
general reserve is not required under Companies Act, 2013 and the Company can optionally transfer any amount
from the surplus of profit or loss to the General Reserve.

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

Securities Premium Account: The amount received in excess of face value of the equity shares is recognized in
Securities Premium Reserve.

Remeasurement of defined benefit plans: The Company has recognized remeasurement gains/(loss) on defined
benefit plans in OCI. These changes are accumulated within the OCI reserve within other equity. The Company
transfers amount from this reserve to retained earning when the relevant obligations are derecognized.

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

A. CREDIT RISK :

Credit risk refers to the risk of a counter party default on its contractual obligation resulting into a financial
loss to the Company. The maximum exposure of the financial assets represents trade receivables, work in
progress and other receivables.

In respect of trade receivables, the Company uses a provision matrix to compute the expected credit loss
allowances for trade receivables in accordance with the expected credit loss (ECL) policy of the Company. The
Company regularly reviews trade receivables and necessary provisions, wherever required, are made in the
financial statements.

B. LIQUIDITY RISK :

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

The Company manages liquidity risk by maintaining adequate reserves and banking facilities by continuously
monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and
liabilities.

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

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

(a) Interest Rate Risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. The Company''s exposure to the risk of changes in market
interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates.
The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans
and borrowings.

(b) Interest Rate Sensitivity :

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that
portion of loans and borrowings affected. With all other variables held constant, the Company''s profit
before tax is affected through the impact on floating rate borrowings, as follows:

NOTE 34 : CAPITAL MANAGEMENT :

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

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

B. The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease
agreements are duly executed in favor of the lessee), disclosed in the financial statements included under Property,
Plant and Equipment are held in the name of the Company as at the balance sheet date.

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

D. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

E. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a
willful defaulter at any time during the financial year or after the end of reporting period but before the date when
the financial statements are approved.

F. The Company does not have any transactions with struck-off companies.

G. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act
2013 read with Companies (Restrictions on number of Layers) Rules, 2017.

H. The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign
entities(intermediaries), with the understanding that the intermediary shall;

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

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

I. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party)
with the understanding (whether recorded in writing or otherwise) that the Company shall;

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

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

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

K. Quarterly returns or statements of current assets filed by the Company with banks are generally in agreement with
the books of accounts.

L. The Company has used the borrowings from banks for the specific purpose for which it was obtained.

M. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.

N. The Company is operating under ERP environment which is fully integrated financial accounting and reporting
system. The management confirms that the accounting software used by the Company for maintaining books of
account has a feature of recording audit trail (edit log) facility which has been operated throughout the year for all
transactions recorded in the software and the audit trail feature is not being tampered with.

40. Balances for trade receivables, trade payables and loans and advances are subject to confirmations from the
respective parties.

41. All the amounts are stated in Rs. in lacs, unless otherwise stated.

42. Figures of previous years have been regrouped and rearranged wherever necessary.

The accompanying notes are integral part of these financial statements.

As per our report of even date

For P A R K & COMPANY For and on behalf of Board of Directors

^{Chartered Accountants} _{HETAL KAPADIYA} PIYUSH TAMBOLI JAINAM TAMBOLI

ASHISH DAVE Company Secretary ^Chairman & ^{Whole Time} Wredm &

_Partner Managing Director CFO

DIN :00146033 DIN :07680976

Place : Bhavnagar
Date : 22^nd May,2025

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Mar 31, 2024

q. Provisions and contingent liabilities

The Company creates a provision when there is present obligation (legal or constructive) as a result of past events that probably requires an outflow of resources and a reliable estimate can be made of the amount of obligation.

Contingent liabilities are disclosed in respect of possible obligations that arise from past events, whose existence would be confirmed by the occurrence or non-occurrence of one or more uncertain future events. Contingent assets are neither recognised nor disclosed in the financial statements.

r. Impairment of non financial assets

As at each reporting date, the Company assesses whether there is an indication that a non-financial asset may be impaired and also whether there is an indication of reversal of impairment loss recognised in the previous periods. If any indication exists, or when annual impairment testing for an asset is required, the Company determines the recoverable amount and impairment loss is recognised when the carrying amount of an asset exceeds its recoverable amount. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through the statement of profit and loss.

s. Leases

The Company, as a lessee, recognises a right-of-use asset for its leasing arrangements, if the contract conveys the right to control the use of an identified asset.

The contract conveys the right to control the use of an identified asset, if it involves the use of an identified asset and the Company has substantially all of the economic benefits from use of the asset and has right to direct the use of the identified asset.

The cost of the right-of-use asset shall comprise of the amount of the initial measurement of the lease liability adjusted for any lease payments made at or before the commencement date plus any initial direct costs incurred. The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the straight-line method from the commencement date over the shorter of lease term or useful life of right-of-use asset.

t. Earnings Per Share

(i) Basic earnings per share is computed by dividing the net profit or loss for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

(ii) For the purpose of calculating diluted earning per share, the net profit or 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.

u. Segment reporting

The Company publishes this financial statement along with the consolidated financial statements. In accordance with Ind AS 108, Operating Segments, the Company has disclosed the segment information in the consolidated financial statements.

General reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to general reserve is not required under Companies Act, 2013 and the Company can optionally transfer any amount from the surplus of profit or loss to the General Reserve.

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

Securities Premium Account: The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve.

Remeasurement of defined benefit plans: The Company has recognised remeasurement gains/(loss) on defined benefit plans in OCI. These changes are accumulated within the OCI reserve within other equity. The Company transfers amount from this reserve to retained earning when the relevant obligations are derecognized.

C. Market Risk :

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

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

(a) Interest Rate Risk :

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to the Company''s long-term debt obligations with floating interest rates. The Company manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

b. The title deeds of all immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), disclosed in the financial statements included under Property, Plant and Equipment are held in the name of the Company as at the balance sheet date.

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

d. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

e. The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.

f. The Company does not have any transactions with struck-off companies.

g. The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017.

h. The company has not advanced or loaned or invested funds to any other person(s) or entity(is), including foreign entities(intermediaries), with the understanding that the intermediary shall;

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

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

i. The Company has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall;

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

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

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

k. Quarterly returns or statements of current assets filed by the Company with banks are generally in agreement with the books of accounts.

l. The Company has used the borrowings from banks for the specific purpose for which it was obtained.

m. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

n. The Company is operating under ERP environment which is fully integrated financial accounting and reporting system. The management confirms that the accounting software used by the Company for maintaining books of account has a feature of recording audit trail (edit log) facility which has been operated throughout the year for all transactions recorded in the software and the audit trail feature is not being tampered with.

40. Balances for trade receivables, trade payables and loans and advances are subject to confirmations from the respective parties.

41. All the amounts are stated in '' in lacs, unless otherwise stated.

42. Figures of previous years have been regrouped and rearranged wherever necessary.

For P A R K & COMPANY For and on behalf of Board of Directors

Chartered Accountants

ASHISH DAVE HETAL KAPADIYA PIYUSH TAMBOLI JAINAM TAMBOLI

Partner Company Secretary Chairman & W hole Time Director &

Managing Director Chief Financial Officer

^Place : ^Bhavnagar Din : 00146033 DIN : 07680976

Date : 29^th May, 2024

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Mar 31, 2018

COMPANY INFORMATION

Investment & Precision Castings Limited (the ‘Company’) is a public limited Company domiciled in India and incorporated on 3^rd April 1975 under the provisions of the Companies Act applicable in India. The Company is engaged in the production of investment castings. The registered office of the Company is located at Nari Road, Bhavnagar - 364 006. The equity shares of the Company are listed on Bombay Stock Exchange (BSE).

The standalone financial statements (‘the financial statements”) were authorized for issue in accordance with the resolution of the Board of Directors on 24^th May, 2018.

1 BASIS OF PREPARATION, MEASUREMENT AND SIGNIFICANT ACCOUNTING POLICIES

1.1 Basis of preparation and measurement:

These financial statements have been prepared in accordance with the Indian Accounting Standards (hereinafter referred to as the ‘Ind AS’) as notified by Ministry of Corporate Affairs pursuant to section 133 of the Companies Act, 2013 and the Companies (Indian Accounting Standards) Rules, 2015, as applicable.

The financial statements for the year ended 31st March, 2018 are the first financial statements prepared by the Company under Ind AS. For all periods up to and including the year ended 31st March, 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 paragraph 7 of the Companies (Accounts) Rules, 2014 (hereinafter referred to as ‘Previous GAAP’) used for its statutory reporting requirement in India immediately before adopting Ind AS. The financial statements for the year ended 31st March, 2017 and the opening Balance Sheet as at 1st April, 2016 have been restated in accordance with Ind AS for comparative information. Reconciliations and explanations of the effect of the transition from Previous GAAP to Ind AS on the Company’s balance sheet, statement of profit and loss and statement of cash flows are provided in note 1.3 c.

The financial statements have been prepared on accrual and going concern basis. The accounting policies are applied consistently to all the periods presented in the financial statements, including the preparation of the opening Ind AS Balance Sheet as at 1st April, 2016 being the date of transition to Ind AS. All assets and liabilities have been classified as current or non current as per the Company’s normal operating cycle and other criteria as set out in the Division II of Schedule III to the Companies Act, 2013. The Company adopts operating cycle based on the project period and accordingly, all project related assets and liabilities are classified into current and non-current. Other than project related assets and liabilities, 12 month period is considered as normal operating cycle.

1.2 First-time adoption of Ind AS:

a. Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies as set out in note no. 1.2 above have been applied in preparing the financial statements for the year ended 31^st March 2018, the comparative information presented in these financial statements for the year ended 31^st March 2017 and in the preparation of an opening Ind AS balance sheet as at 1^st April 2016 (the transition date). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in the financial statements prepared in accordance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Act. An explanation of how transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

b. Exemption and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS, which are considered to be material and significant.

(i) The Company has elected to measure items of property, plant and equipment at its carrying value as at the transition date except for certain class of assets which are measured at fair value as deemed cost.

(ii) Ind AS provides a one time option to a first-time adopter either to measure its investment in subsidiary as per previous GAAP carrying value or at fair value on the date of transition. The Company has elected to measure its investment in subsidiary as per previous GAAP carrying value.

(iii) 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 statements. 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.

(iv) Under Ind AS, remeasurements of post-employment benefit obligations, i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expenses on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the Previous GAAP, these remeasurements were forming part of the Statement of Profit and Loss for the year. There is no impact on the total equity.

(v) Under Ind AS, all items of income and expenses recognised in a period should be included in the Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expenses that are not recognised in profit or loss but are shown in the Statement of Profit and Loss as ‘other comprehensive income’ includes remeasurements of defined benefit plans and tax effects thereon. The concept of other comprehensive income did not exist under the Previous GAAP.

c. Reconciliations between previous GAAP and Ind AS

The following reconciliations provide the explanations and quantification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

(i) Reconciliation of equity as reported under previous GAAP to Ind AS;

(ii) Reconciliation of profit or loss and total comprehensive income as reported under previous GAAP to Ind AS; and

(iii) Adjustments to statement of cash flows.

Notes to reconciliation of equity and statement of profit and loss

1. The Company has considered fair value for property, viz. land as on transition date, i.e. 1^st April 2016 with impact of Rs. 4,15,95,473 in accordance with stipulations of Ind AS 101 with the resultant impact being accounted for in the reserves.

2. Under Ind AS, loans are valued at present value as compared to being carried at cost in the previous GAAP. This adjustment includes the difference between the book value and the present value of an interest free loan or loan below market rate given to a wholly owned subsidiary. The interest on the present value of this loan is recognized over the tenure of the loan using the EIR method.

3. Under Ind AS, the Company recognized the provision for expected credit loss as per the Expected Credit Loss (ECL) policy of the Company as set out in accordance with Ind AS 101. Differences in the provisions are adjusted under trade receivables.

4. The Company recognizes the cost related to its post employment defined benefit plan on an actuarial basis both under previous GAAP and Ind AS. Under previous GAAP, entire cost including actuarial gains and losses and return on planned assets are charged to profit or loss. Under Ind AS, the actuarial gains and losses and returns on planned assets are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income.

5. Consequential tax impact of the other Ind AS transitional adjustments lead to temporary timing differences. Deferred tax adjustments are recognized in correlation to the underlying transaction either in retained earnings or through comprehensive income.

6. Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements by the shareholders were considered as adjusting events. Accordingly, provision for proposed dividend was recognized as liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting. Accordingly, the liability of proposed dividend and dividend distribution tax thereon, included under provisions has been reversed with corresponding adjustment to retained earnings.

7. There are no material adjustments of transition to the statement of cash flows to conform to Ind AS presentation for the year ended 31^st March, 2017.

General reserve: The Company has transferred a portion of the net profit of the Company before declaring dividend to general reserve pursuant to the earlier provisions of the Companies Act, 1956. Mandatory transfer to general reserve is not required under the Companies Act, 2013.

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

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. Remeasurement of defined benefit plans: The Company has recognised remeasurement gains/(loss) on defined benefit plans in OCI. These changes are accumalated within the OCI reserve within other equity. The Company transfers amount from this reserve to retained earning when the relevant obligations are derecognized.

In respect of trade receivables, the Company uses a provision matrix to compute the expected credit loss allowances for trade receivables in accordance with the expected credit loss (ECL) policy of the Company. The Company regularlty reviews trade receivables and necessary provisions, wherever required, are made in the financial statements.

B. Liquidity risk

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

The Company manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring forcast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

Contractual maturities of significant financial liabilities are as follows:

C. Market risk

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

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

Company’s exposure to foreign currency risk at the end of each reporting period is as under: a) Exposure in foreign currency - Hedged

The Company enters into forward exchange contracts to hedge against its foreign currency exposures relating to the underlying transactions and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purpose.

Note 2

Capital management

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

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

Note 3

Employee benefits Funded Scheme Gratuity

Liability for employee gratuity has been determined by an actuary, appointed for the purpose, in confirmity with the principles set out in the Indian Accounting Standard 19 the details of which are as hereunder. The Company makes contributions to approved gratuity fund.

Note 4

Related party transactions

A Subsidiaries 1 I&PCL Vacuum Cast Limited A wholly-owned subsidiary B Associates

1 Tamboli Foundry Supplies and Services Limited C Key management personnel and relatives

1 Shri R K Menon

2 Shri Piyush I Tamboli

3 Smt. Vishakha P Tamboli

4 Shri Jainam P Tamboli

5 Shri Girish V Shah

6 Ms. Hetal Kapadia

5 Balances with sundry debtors, sundry creditors and for advances are subject to confirmations from the respective parties. In absence of such confirmations, balances as per books have been relied upon by the Auditors.

6 Previous year’s figures are regrouped and rearranged, wherever necessary.

7 Figures of previous years have been regrouped and rearranged wherever necessary.

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Mar 31, 2017

1. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations from the respective parties. In absence of such confirmations, balances as per books have been relied upon by the Auditors

2. Deferred tax asset of Rs. 696,000 arising during the year, a major component of which Is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is credited to the profit & loss account. Details of the balance of Rs. 34,029,000 are as under:

3. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard AS-28. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

4. As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard AS-17 “Segment Reporting" are not applicable.

5. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

6. Contingent Liabilities:

7. In respect of Central Sales Tax for which C'' forms are pending for collection Rs. 95,482,000 (84.856,000)

8. In respect of disputed Value Added Tax liabilities Rs. 1,852,381 (1,975,449).

9. In respect of disputed Income Tax liabilities Rs. 755.000 (312,000)

The Board of Directors at its meeting held on May 23, 2017 has recommended a dividend of Rs. 1.25 per equity share for the year ended March 31. 2017 (March 31. 2016: Rs. 0.70 per equity share). The declaration and payment of dividend is subject to the approval of the shareholders in the Annual General Meeting.

Proposed Dividend: Rs. 6,250,000 Corporate Dividend Tax: Rs. 1.272,353

According to the revised AS 4 - ‘Contingencies and events occurring after the balance sheet date'' as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules. 2016, the Company not accounted for proposed dividend (including tax) as a liability for the year ended March 31, 2017.

10. Key Management Personnel & Relatives:

11. Shri Piyush 1 Tamboli, 2. Shri R. K. Menon, 3. Jainam P. Tamboli 4. Smt. Vishakha P. Tamboli.

12. Shri Girish V. Shah 6. Ms. Hetal Kapadia

13. Figures in the brackets are the figures for the previous year, unless otherwise stated.

14. Previous year''s figures are regrouped and rearranged, wherever necessary.

15. All the amounts are stated in Indian Rupees, unless otherwise stated.

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Mar 31, 2015

Note No. 1

1.1 Share Capital:

a. Of the total share capital, 4,650,000 equity shares were issued as fully paid up bonus shares.

b. Equity shares issued as fully paid up bonus shares or otherwise than by cash during the preceding 5 years: Nil

2 Balances with sundry debtors, sundry creditors and for advances are subject to confirmations from the respective parties. In absence of such confirmations, balances as per books have been relied upon by the Auditors.

3 Depreciation for the year has been aligned to comply with requirement of Part C of Schedule II of the Companies Act, 2013. Consequently, depreciation for the year is lower by Rs. 42.64 lacs. Further, Rs. 2.11 lacs (net of deferred tax Rs. 1.01 lacs) in the respect of the fixed assets where the useful lives as specified in Schedule II is already expired, has been adjusted to the opening balances of the Retained Earnings.

4 Deferred tax liabilities of Rs. 1,884,290 arising during the year, a major component of which is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is credited to the profit & loss account. Details of the balance of Rs. 31,559,000 are as under:

5 The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard AS-28 issued by the Institute of Chartered Accountants of India. Based on the judgement of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

6 As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

7 In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realised in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

8 Contingent Liabilities:

(i) In respect of Central Sales Tax for which ''C'' forms are pending for collection Rs. 76,239,000 (79,839,000)

(ii) In respect of disputed Value Added Tax liabilities Rs. 1,193,604 (1,193,604).

(iii) In respect of disputed Income Tax liabilities Rs. 312,000 (312,000)

8.1 Key Management Personnel & Relatives :

- Shri Piyush I. Tamboli

- Shri R. K. Menon

- Smt. Vishakha P. Tamboli

9. Figures in the brackets are the figures for the previous year, unless otherwise stated.

10. All the amounts are stated in Indian Rupees, unless otherwise stated.

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Mar 31, 2014

1. Share Capital

a) Of the total share capital, 4,650,000 equity shares were issued as fully paid up bonus shares.

b) Equity shares issued as fully paid up bonus shares or otherwise than by cash during the preceding five years Nil.

2. Long Term Borrowings

Term loans from Bank of Baroda are secured by hypothecation of plant and mortgage of land, buildings and vehicle and further secured by personal guarantee of one of the directors.

3. Short term Borrowings

Working Capital from Bank of B aroda are secured by hypothecation of inventories, book debts, and all movable properties and mortgage of all immovable properties and further secured by personal guarantee of one of the directors.

4 Balances with sundry debtors, sundry creditors and for advances are subject to confirmations from the respective parties. In absence of such confirmations, balances as per books have been relied upon by the Auditors.

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

6 Deferred tax asset of Rs. 1,314,000 arising during the year, a major component of which is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is credited to the profit & loss account.

7 The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard AS-28 notified under the Companies (Accounting Standard) Rules, 2006. Based on the judgement of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

8 As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard AS-17 "Segment Reporting" notified under the Companies (Accounting Standard) Rules, 2006 are not applicable.

9 In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realised in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

10 Contingent Liabilities:

(i) In respect of Central Sales Tax for which ''C'' forms are pending for collection Rs. 79,839,000 (137,670,000)

(ii) In respect of disputed Value Added Tax liabilities Rs. 1,193,604 (1,193,604).

(iii) In respect of disputed Income Tax liabilities Rs. 312,000 (312,000)

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Mar 31, 2013

1 Balances with Sundry Debtors, Sundry Creditors and for Advances are subject to confirmations from the respective parties. In absence of such confirmations, balances as per books have been relied upon by the Auditors.

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

3 Deferred tax asset of Rs. 5.10 Lacs arising during the year, a major component of which is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is credited to the profit & loss account. Details of the balance of Rs. 31,090,000 are as under:

4 The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard AS-28 issued by the Institute of Chartered Accountants of India. Based on the judgement of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

5 As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard AS–17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

6 In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realised in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

7 Contingent Liabilities:

(i) In respect of Central Sales Tax for which ‘C'' forms are pending for collection Rs. 137,670,000 (92,098,000)

(ii) In respect of disputed Value Added Tax liabilities Rs. 1,193,604 (2,886,053)

(iii) In respect of disputed Income Tax liabilities Rs. 312,000 (15,862,000)

8. Figures in the brackets are the figures for the previous year, unless otherwise stated. All the amounts are stated in Indian Rupees, unless otherwise stated.

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Mar 31, 2012

Term loans from Bank of Baroda are secured by hypothecation of plant and equipment and mortgage of land, buildings and vehicle and further secured by personal guarantee of one of the directors.

Working Capital from Bank of Baroda are secured by hypothecation of inventories, book debts, and all movable properties and mortgage of all immovable properties and further secured by personal guarantee of one of the directors.

1 Balances with Sundry Debtors, Sundry Creditors and for Advances are subject to confirmations from the respective parties. In absence of such confirmations, balances as per books have been relied upon by the Auditors.

2 The Company has not received information from its vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year end together with interests paid/payable under this act have not been given.

3 The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard AS-28 issued by the Institute of Chartered Accountants of India. Based on the judgement of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

4 As the company's business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

5 In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realised in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

6 Contingent Liabilities:

(i) In respect of Central Sales Tax for which 'C forms are pending for collection Rs. 92,098,000(35,250,000)

(iii) In respect of disputed Value Added Tax liabilities Rs. 1,193,604 (2,886,053).

(iv) In respect of disputed Income Tax liabilities Rs. 15,862,000 (312,169)

7. Figures in the brackets are the figures for the previous year, unless otherwise stated. All the amounts are stated in Indian Rupees, unless otherwise stated.

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Mar 31, 2011

Figures in the brackets are the figures for the previous year, unless otherwise stated.

All the amounts are stated in Indian Rupees, unless otherwise stated.

Notes forming part of the accounts for the year ended 31st March, 2011

1.0 Contingent Liabilities:

(i) Guarantees given by the bank and counter guaranteed by the company: Rs. 9,502,153 (90,000)

(ii) In respect of Central Sales Tax for which 'C' forms are pending for collection Rs. 35,250,000 (24,358,000)

(iii) In respect of disputed Value Added Tax liabilities Rs. 2,886,053 (894,939).

(iv) In respect of disputed Income Tax liabilities Rs. 312,169. (15,069,963)

2.0 Figures of the previous year have been regrouped and rearranged wherever necessary.

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Mar 31, 2010

1. Advance payment of Taxes is shown net of provision for taxes Rs. 1479.40 (2054.62) Lacs including current years provision of Rs. 217.00 (252.00) Lacs.

2. Balances with Sundry Debtors, Sundry Creditors and for Advances are subject to confirmations from the respective parties. In absence of such confirmations, balances as per books have been relied upon by the Auditors.

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

4. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard AS-28 issued by the Institute of Chartered Accountants of India. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

5. As the companys business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS) -17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

6. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realised in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

7. Contingent Liabilities:

Guarantees given by the bank and counter guaranteed by the company: Rs. 90,000 (Nil)

In respect of Central Sales Tax for which C forms are pending for collection Rs. 24,358,000 (10,834,000)

In respect of disputed Sales Tax liabilities Rs. 1,194,660(1,194,660).

Income Tax related exposures Rs. 15,069,963 (16,524,044) includes:

Income Tax demand of Rs. 12,601,433 (previous year 12,601,433) relating to assessment years 2003-04 and 2004-05. CIT (Appeals) has ruled in favour of the company and deleted demand of Rs. 7,127,438 from the said demand. However, the Company or the income tax department has preferred appeals before the ITAT against the said orders of CIT (Appeals).

Income Tax demand of Rs. 2,468,530 for which the company has preferred an appeal before CIT(Appeals)

8. Related Party Disclosures:

Associates:

a) Meche Private Limited

b) Tamboli Exim Limited,

c) Mebhav Investment Private Limited,

d) Tamboli Castings Limited