Notes to Accounts of Kridhan Infra Ltd.

Mar 31, 2024

3.13 Provisions, Contingent Liabilities and Contingent Assets_

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.

Contingent liabilities are disclosed in the Financial Statements by way of notes to accounts, __unless possibility of an outflow of resources embodying economic benefit is remote._

3.14 Financial instruments

Financial assets and financial liabilities are recognized when Company becomes a party to the contractual provisions of the instruments.

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or _ loss) are added to or deducted from the fair value of the financial assets or financial liabilities,

as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized __immediately in the Statement of Profit and Loss._

3.15 Equity instruments_

__Equity instruments issued by the Company are recorded at the proceeds received._

3.16 Financial assets_

(i) Cash and cash equivalents

The Company considers all highly liquid financial instruments, which are readily convertible into known amounts of cash that are subject to an insignificant risk of change in value and having original maturities of three months or less from the date of purchase, to be cash equivalents. Cash and cash equivalents consist of balances with banks which are unrestricted for withdrawal and usage.

(ii) Financial assets at amortised cost

Financial assets are subsequently measured at amortized cost using the effective interest method if these financial assets are held within a business whose objective is to hold these assets in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

(iii) Financial assets at fair value through other comprehensive income

Financial assets are measured at fair value through other comprehensive income if these financial assets are held within a business whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

The Company has made an irrevocable election to present in other comprehensive income subsequent changes in the fair value of equity investments not held for trading.

(iv) Financial assets at fair value through profit or loss

Financial assets are measured at fair value through profit or loss unless it is measured at amortized cost or at fair value through other comprehensive income on initial recognition.

(v) Impairment of financial assets

The Company assesses at each balance sheet date whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognizes lifetime expected losses for trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to 12 month expected credit losses or at an amount equal to lifetime expected losses, if the credit risk on the financial asset has increased significantly since initial recognition.

(vi) Derecognition of financial assets

The Company derecognizes a financial asset when the contractual rights to the cash __flows from the asset expire, or when it transfers the financial asset and substantially

all the risks and rewards of ownership of the asset to another party.

On derecognition of a financial asset in its entirety (except for equity instruments designated as FVTOCI), the difference between the asset’s carrying amount and the sum of the consideration received and receivable is recognized in the Statement of __Profit and Loss._

3.17 Financial liabilities_

a) Financial liabilities

Financial liabilities are measured at amortized cost using the effective interest method.

b) Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s obligations are discharged, cancelled or have expired. The difference between the carrying amount of the financial liability derecognized and the __consideration paid and payable is recognized in the Statement of Profit and Loss.

3.18 Earnings per share_

Basic earnings per share are computed by dividing the net profit after tax by the weighted average number of equity shares outstanding during the period. Diluted earnings per share is computed by dividing the profit after tax by the weighted average number of equity shares considered for deriving basic earnings per share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity __shares._

3.19 Cash Flow Statement_

Cash flows are reported using the indirect method, whereby profit after tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and financing

__activities._

3.20 Segment reporting

Operating segments are identified and reported taking into account the different risks and __returns, the organization structure and the internal reporting systems._

4. Critical Accounting Judgments, Assumptions and Key Sources of Estimation

__Uncertainty_

Inherent in the application of many of the accounting policies used in preparing the Financial Statements is the need for Management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual outcomes could differ from the estimates and assumptions used.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and future periods are affected.

Key source of judgments, assumptions and estimation uncertainty in the preparation of the Financial Statements which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in respect of impairment, useful lives of Property, Plant and Equipment, employee benefit obligations, impairment, provision for __income tax, measurement of deferred tax assets and contingent assets and liabilities._

4.1 Critical judgments in applying accounting policies_

The following are the critical judgements, apart from those involving estimations (Note 4.2), that the Management have made in the process of applying the Company''s accounting policies __and that have the significant effect on the amounts recognized in the Financial Statements.

(a) Determination of functional currency

Currency of the primary economic environment in which the Company operates (“the functional currency”) is Indian Rupee (Rs.) in which the Company primarily generates and expends cash. Accordingly, the Management has assessed its __functional currency to be Indian Rupee (Rs.)._

(b) Classification of investment

Judgement is required in assessing the level of control obtained in a transaction to acquire an interest in another entity; depending upon the facts and circumstances in each case, the Company may obtain control, joint control or significant influence over the entity or arrangement. Transactions which give the Company control of a business are business combinations. If the Company obtains joint control of an arrangement, judgement is also required to assess whether the arrangement is a joint operation or a joint venture. If the Company has neither control nor joint control, it may be in a position to exercise significant influence over the entity, which is then __classified as an associate._

4.2 Assumptions and key sources of estimation uncertainty_

Information about estimates and assumptions that have the significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results

__may differ from these estimates._

(a) Impairment of assets

Determination as to whether, and by how much, asset is impaired involves Management estimates on uncertain matters such as future prices, the effects of inflation on operating expenses, discount rate etc.

(b) Litigations

From time to time, the Company is subject to legal proceedings and the ultimate outcome of each being always subject to many uncertainties inherent in litigation. A provision for litigation is made when it is considered probable that a payment will be made and the amount of the loss can be reasonably estimated. Significant judgment is made when evaluating, among other factors, the probability of unfavourable outcome and the liability to make a reasonable estimate of the amount of potential loss. Provision for litigations are reviewed at the end of each accounting period and __revisions made for the changes in facts and circumstances._

33 Financial instruments

The details of significant accounting policies, including criteria for recognition, the basis of measurement and the basis on which income and expenditure are recognised, in respect of each class of financial asset, financial liability and equity instrument are disclosed below and Note 3.

A Calculation of fair values

The fair values of the financial assets and liabilities are defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The following methods and assumptions were used to estimate the fair values of financial instruments:

i The fair value of the long-term borrowings carrying floating-rate of interest is not impacted due to interest rate changes and will not be significantly different from their carrying amounts as there is no significant change in the under-lying credit risk of the Company (since the date of inception of the loans).

ii Cash and cash equivalents, trade receivables, investments in term deposits, other financial assets, trade payables, and other financial liabilities have fair values that approximate to their carrying amounts due to their short-term nature.

35 Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the company. The primary objective of the Company''s capital management is to maximise the shareholder value._

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''s policy is to keep optimum gearing ratio. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operations.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

In performing its operating, investing and financing activities, the Company is exposed to the -Credit risk;

-Market Risk;

-Interest Rate;

-Liquidity risk

A) Credit Risk_

Credit risk arises from the possibility that the value of receivables or other financial assets of the Company may be impaired because counterparties cannot meet their payment or other performance obligations.

To manage credit risks from trade receivables other than Related Party, the credit managers from Order to Cash department of the Company regularly analyse customer''s receivables, overdue and payment behaviours. Some of these receivables are collateralised and the same is used according to conditions. These could include advance payments, security deposits, postdated cheques etc. Credit limits for this trade receivables are evaluated and set in line with Company''s internal guidelines. There is no significant concentration of default risk.

Credit risks from financial transactions are managed independently by Finance department. For banks and financial institutions, the Company has policies and operating guidelines in place to ensure that financial instrument transactions are only entered into with high quality banks and financial institutions. The Company had no other financial instrument that represents a significant concentration of credit risk.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through out each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations,

iv) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectations of recovery. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in statement of profit & loss.

For other financial assets, the Company assesses and manages credit risk based on internal control and credit management system. The finance function consists of a separate team who assess and maintain an internal credit management system. Internal credit control and management is performed on a Company basis for each class of financial instruments with different characteristics.

The Company considers whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. It considers available reasonable and supportive forward-looking information.

Macroeconomic information (such as regulatory changes, market interest rate or growth rates) are also considered as part of the internal credit management system._

A default on a financial asset is when the counterparty fails to make payments as per contract. This definition of default is determined by considering the business environment in which entity operates and other macro-economic factors.

The Company measures the expected credit loss of trade receivables from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, no additional provision has been considered necessary in respect of trade receivables since the management has taken suitable measures to recover the said dues and is hopeful of recovery in due course of time. However, inresult of the best efforts made by management, some receivables which were continuing since earlier years realised due to which an amount of 712 lakhs (Previous Year -284 lakhs) has been reversed during the year and provision for bad debts for an amount of Rs. 712 lakhs (Previous Year Rs. -200 lakhs) has been reversed.

The Company maintains exposure in cash and cash equivalents, deposits with banks, investments, and other financial assets. Individual risk limits are set for each counter-party based on financial position, credit rating and past experience.

Credit limits and concentration of exposures are actively monitored by the Management of the Company.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets.

Additionally, considering the COVID 19 situation, the Company has also assessed the performance and recoverability of trade receivables. The Company believes that the current value of trade receivables reflects the fair value/ recoverable values.

Credit risk on Financial Assets

The company is primarily engaged in the business of trading in Iron and Steel. Payments by it are typically not secured by any form of credit support such as letters of credit, performance guarantees or escrow arrangements. Credit risk is the risk that counterparty will not meet its obligations under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Financial assets that are potentially subject to concentrations of credit risk and failures by counter-parties to discharge their obligations in full or in a timely manner consist principally of Trade Receivables, Loans and Advances and other assets. Credit risk on cash balances with Bank are limited because the counterparties are entities with acceptable credit ratings. The exposure to credit risk for trade receivable is low as it mainly consists of customers who are assessed by the management and the collection is received on timely basis within the credit period which is about 60 to 90 days.

The Company''s maximum exposure to credit risk for the components of the Balance Sheet at March 31, 2024 and March 31,

2023 is the carrying amounts.

The average credit period taken to settle trade payables is about 30 to 90 days. The other payables are with short-term durations. The carrying amounts are assumed to be a reasonable approximation of fair value.

B)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. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments and derivative financial instruments.

The following table summaries the carrying amount of financial assets and liabilities recorded at the end of the period by categories:

The sensitivity analysis in the following sections relate to the position as at March 31, 2024 and March 31, 2023.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and in place at March 31, 2024.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2024 and March 31, 2023.

C)Interest Rate Risk

The company does not operate in an industry that requires intense capital and hence the exposure to interest rate risk is reasonably moderate. The major component of the interest charge for the company is denominated in variable risk instruments which are basically in the form of loan from banks and FI''s. The details of the borrowings of the company is given in the respective notes on borrowings.

The interest rate risk exposure is mainly from changes in fixed and floating interest rates. The interest rate are disclosed in the respective notes to the financial statement of the Company. The following table analyse the breakdown of the financial assets

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D)''Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company''s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including debt and overdraft from banks at an optimised cost. 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.

Due to the dynamic nature of underlying businesses, the Company maintains flexibility in funding by maintaining availability under committed credit lines.

Management monitors rolling forecast of Company''s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. In addition, the company''s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and maintaining debt financing plans.

43 Fixed Assets and Cash balance were physically verified by the management. The Certification of the same as given by the managment has been relied upon by the auditors.

44 The current assets, loans and advances have the values at least equal to the amount at which they are stated in the Balance sheet on their realisation in ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

45 Balances of Current Assets and Current Liabilities are subject to confirmation and consequential adjustment, if any. However, based on the best estimates made by the management and as per the past trends management is of the view that the impact arising there from, if any, is not likely to be material.

46 Segment Reporting

The company operates in only one segment. Hence, there are no other reportable segment as per Ind AS - 108 issued by ICAI.

47 Events after reporting period

No subsequent events that would have a material impact on the financials were observed after the reporting period for which effect have not been considered in the financial statements. As informed earlier, the subsidiary Readymade Steels Singapore Pte Limited. is under liquidation process and a material step down subsidiary K.H.Foges Pte Limited is placed under Judicial Management at Singapore. Correspondingly, full provision towards impairment of Investments and other Loans and Advances / receivables from these entities have already been made in the books and provision for all anticipated / known liabilities have been created.

48 Gratuity as Defined contribution benefits Scheme Defined Benefit Plan

Under the said Act, an employee who has completed 5 years of service is entitled to specific benefit. The level of benefits provided depends upon the strength of service of the employees and the salary at the retirement age.

Note

a Current ratio (in times) : Current Assets / Current liabilities b Debt - Equity ratio : Total Debt divided by Equity

c Debt Service Coverage Ratio (DSCR) (no. of times) : Profit before interest, divided by Interest expense. d ROE : Net Profits after taxes - Preference Dividend (if any) / Average Shareholder''s Equity e Inventory turnover ratio: Revenue from operations / Average Inventory

f Trade receivable turnover ratio: Revenue from operations / Average (Trade receivable and contract assets) g Trade payables turnover ratio = Net Credit Purchases / Average Trade Payables h Net profit margin (in %) : profit after tax / Revenue from operation i Net capital turnover ratio = Net Sales / Working Capital

j ROCE : Earning before interest and taxes / Capital Employed (Capital Employed = Tangible Net Worth Total Debt Deferred k Return on investment (ROI) : Profit after tax / Total Equity

*As the Net-worth is negative as on March 31, 2024 & March 31,2023.

52 (A) No proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988, as amended, and rules made thereunder.

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

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

(D) There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

(E) The Company does not have any transactions with companies struck off.

(F) The Company has not advanced or loaned to or invested in 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 to 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

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

(i) directly or indirectly lend to 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 on behalf of the Ultimate Beneficiaries

53 The accounts of certain Banks, Loans & Advances given, Trade Receivables, Other Current Assets, Lenders'' liability, Trade Payables and Other liabilities are subject to confirmations, reconciliations and adjustments.

54 There are various Legal cases filed by/ against the company. Since the cases are ongoing and the management believes that they have a strong case. The Company do not foresee any material impacts on the financial statement of the Company.

55 The Company has during the year ended March 31, 2024, undertook an extensive physical verification of its fixed assets across various locations (including its factory sites). During the course of such verification, the Company have not been able to trace and identify certain assets which were either discarded from active use owing to the expiry of their useful life or have been appropriated by the Contractors at the closed sites due to non-payment of their dues. Accordingly, the Company have impaired such fixed assets aggregating to Rs. NIL (PY Rs 200 lacs) and have grouped the same under exceptional items.

56 The Company has not provided for interest liability on its Bank borrowings for the year ended March 31, 2024 since the Company have continued to remain under NPA classification.

57 The loss incurred in the current year and last year have resulted in erosion of Company''s Net worth. However, the management is of the opinion that subject to approval of settlement proposals with lenders and cost reduction measures , the Company will be able to earn profit over next few years and may be in position to repay the outstanding borrowings. Hence, the financial results are prepared assuming that it will continue as going concern.

58 The Financial statements were authorised for issue in accordance with a resolution of the Directors dated May 29, 2024.

59 The Figures have been regrouped & re-arranged where necessary to conform to current period''s classification.All figures of financial Statements has been rounded off to nearest lakhs rupees.

For and on behalf of the Board of Directors of Kridhan Infra Limited

Place: Mumbai Gautam Suri Mahdav Deshpande

Date : 29th May 2024 Managing Director Independent Director

DIN:08180233

Hemant Agarwal Bhavesh Nagda

Company Secretary CFO

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Mar 31, 2018

1 Corporate Information

Kridhan Infra Limited (‘Kridhan’ or ‘the Company’) is a public limited company domiciled and incorporated in India having its registered office at 203, Joshi Chambers, Ahmedabad Street, Carnac Bunder, Masjid. Mumbai- 400 009. The Company’s shares are listed and traded on Stock Exchanges in India. The Company is engaged in the business of trading in iron and steel and allied materials.

2. Application of new Indian Accounting Standards

2.1 All the Indian Accounting Standards issued under section 133 of the Companies Act, 2013 and notified by the Ministry of Corporate Affairs (MCA) under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the financial statements are authorized have been considered in preparation of these Financial Statements.

2.2 Standards issued but not yet effective

The MCA has notified the Companies (Indian Accounting Standards/ Ind AS) Amendment Rules, 2018 on 28 March, 2018, whereby Ind AS-115 relating to “Revenue from Contracts with Customers” and Appendix B to Ind AS 21 relating to “Foreign Currency Transactions and advance considerations” has been made applicable from financial year 2018-19 (i.e. 1 April, 2018 onwards).

Ind AS-115 relating to Revenue from Contracts with Customers

The Standard replaces the existing Ind AS 18 “Revenue” and Ind AS 11 “Construction Contracts”. Ind AS 115 establishes the principles that an entity shall apply to report useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from a contract with a customer.

Ind AS 21 - Appendix B - Foreign currency transactions and advance consideration

This Appendix applies to a foreign currency transaction (or part of it) when an entity recognises a non-monetary asset or nonmonetary liability arising from the payment or receipt of advance consideration before the entity recognises the related asset, expense or income (or part of it).

The Company has evaluated the requirements and based on its assessment it is of the view that there is no material impact on account of the same.

3. Critical Accounting Judgments, Assumptions and Key Sources of Estimation Uncertainty

Inherent in the application of many of the accounting policies used in preparing the Financial Statements is the need for Management to make judgments, estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported amounts of revenues and expenses. Actual outcomes could differ from the estimates and assumptions used.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and future periods are affected.

Key source of judgments, assumptions and estimation uncertainty in the preparation of the Financial Statements which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in respect of impairment, useful lives of Property, Plant and Equipment, employee benefit obligations, impairment, provision for income tax, measurement of deferred tax assets and contingent assets and liabilities.

3.1 Critical judgments in applying accounting policies

The following are the critical judgements, apart from those involving estimations (Note 4.2), that the Management have made in the process of applying the Company’s accounting policies and that have the significant effect on the amounts recognized in the Financial Statements.

(a) Determination of functional currency

Currency of the primary economic environment in which the Company operates (“the functional currency”) is Indian Rupee (‘) in which the Company primarily generates and expends cash. Accordingly, the Management has assessed its functional currency to be Indian Rupee (‘).

(b) Classification of investment

Judgement is required in assessing the level of control obtained in a transaction to acquire an interest in another entity; depending upon the facts and circumstances in each case, the Company may obtain control, joint control or significant influence over the entity or arrangement. Transactions which give the Company control of a business are business combinations. If the Company obtains joint control of an arrangement, judgement is also required to assess whether the arrangement is a joint operation or a joint venture. If the Company has neither control nor joint control, it may be in a position to exercise significant influence over the entity, which is then classified as an associate.

3.2 Assumptions and key sources of estimation uncertainty

Information about estimates and assumptions that have the significant effect on recognition and measurement of assets, liabilities, income and expenses is provided below. Actual results may differ from these estimates.

Impairment of assets

Determination as to whether, and by how much, asset is impaired involves Management estimates on uncertain matters such as future prices, the effects of inflation on operating expenses, discount rate etc.

4.1: The Company has elected to continue with the carrying value of its investments in subsidiaries and associates, measured as per the Previous GAAP and used that carrying value on the transition date April 1, 2016 in terms of Para D15 (b) (ii) of Ind AS 101 ‘First -time Adoption of Indian Accounting Standards’.

5.1: The average credit period on sales is 60 - 90 days. No interest is charged during this credit period. Thereafter, interest on delayed payments is charged at SBI Base rate plus 4%-6% per annum compounded each quarter on the outstanding balance.

5.2: There is no single party concentration of the receivables.

5.3: Further, based on assessement made by the management, depending on the past history, management does not expect any material loss on realisation of these receivables.

a) Shares alloted during the year includes shares allotted for consideration other wise than in cash for Rs. 153.59 Lakhs consequent to the share purchase agreement entered into with the shareholders of the Associate company for acquiring their share(s)

b) Details of amount received on allotment of shares on Qualified Institutional Placement :

During the year the company has made placement of 130,07,778 equity shares (Face Value of Rs. 2) on QIP basis at a premium of Rs. 97 per share for an aggregate of 12877.70 Lakhs. The funds raised have been utilised for the purpose as stated in the Objects of the Issue clause of the Placement Document filed with respective regulatory authorities.

Note 6.1 Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors shall be subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Security Details

i) The Term Loan facility from Banks along with interest are secured (incl additional security) by EM of Factory, Land and Building of the plant of the company at Khopoli.

ii) Further secured by Personal Guarantee of Anil Agrawal .

iii) Vehicle Loan are secured against the respective vehicles.

Terms of Repayment details

The term loan represents vehicle loan which is repayable in 63 EMI upto 2023.

Note 7 Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company’s reputation.

The Company has obtained term loans and working capital facilities from banks.

As of March 31, 2018, the Company had working capital (Total current assets - Total current liabilities) of Rs. 14,615.31 Lakhs including cash and cash equivalents of Rs. 87.59 Lakhs. As of March 31, 2017, the Company had working capital (Total current assets - Total current liabilities) of ‘4,025 Lakhs including cash and cash equivalents of Rs. 38.89 Lakhs

Exposure to liquidity risk

The table below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for all non derivative financial liabilities

Note 8 Capital management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.

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’s policy is to keep optimum gearing ratio. The Company includes within net debt, interest bearing loans and borrowings, trade and other payables, less cash and cash equivalents, excluding discontinued operation.

Note 9 Details of dues to micro and small enterprises as per MSMED Act, 2006

There are no Micro and Small Enterprises as defined in the Micro and Small Enterprises Development Act, 2006 to whom the company owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made. The above information regarding Micro and Small Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company.

Note 10 Fair Values

The carrying values of financials instruments of the Company are reasonable and approximations of fair values.

The management assessed that cash and cash equivalents, trade receivables, trade payables, bank overdrafts and other current liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

Note 11 Financial instruments - Fair values and risk management Risk management framework

The Company’s activities expose it to a variety of financial risks, including revenue risk,market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of revenue risk. The Company’s risk management assessment and policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee is responsible for overseeing the Company’s risk assessment and management policies and processes.

Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers. The company’s primary business is dealing in Iron and Steel products which is on credit to parties and are subjected to assessment of creditworthiness. The creditworthiness is periodically reviewed for any high credit risk receivable. Based on such assessment the management is of the view that there is a moderate credit risk in respect of its trade receivables.

Trade and other receivables

The company’s primary business is trading and providing services. There are certain receivables arising from the same for which required assessment of credit worthiness is being carried out by the company on a recurring basis based on which the company is of the view that there are no significant expected losses on account of its trade receivables. The age-wise breakup of the receivables is as under:

Summary of the Company’s exposure to credit risk by age of the outstanding from its customers is as follows:

Expected credit loss assessment for customers as at 1st April, 2016, 31st March, 2017 and 31st March, 2018

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue. Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. Hence, the company has not recognized any provision for expected credit loss till date.

Cash and cash equivalents: Out of total Cash and Cash equivalent of Rs. 87.59 Lakhs; 38.89 Lakhs and Rs. 40.07 Lakhs as at March 31, 2018, March 31, 2017 and April 1, 2016 respectively, the Company held cash and cash equivalents with credit worthy banks and financial institutions of Rs. 78.81 Lakhs, Rs. 23.17 Lakhs and Rs. 17.55 Lakhs 31st March 2018, 31st March 2017 and April 1, 2016 respectively. The credit worthiness of such banks and financial institutions is evaluated by the management on an ongoing basis and is considered to be good.

Guarantees

The Company has provided the following financial guarantees:

Corporate guarantees have been given to assist subsidiaries in availing banking facilities.

Bank guarantees are performance bank guarantees given to customers.

Security deposits given to lessors

The Company has not taken any premises on lease basis hence, the said disclosure is not applicable.

Loans, investments in group companies

The Company has given unsecured loans to its subsidiary / associates companies and their Directors / KMP (including step down subsidiaries) of Rs. 9434.17 Lakhs; Rs. 1284.83 Lakhs and Rs. 92.89 Lakhs as at 31 March 2018, 31 March 2017 and April 1, 2016 respectively. The Company does not perceive any credit risk pertaining to loans provided to its subsidiaries /associate companies.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired. Note 37 Financial risk management objectives and policies

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities.

The Board of Directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

In performing its operating, investing and financing activities, the Company is exposed to the Credit risk, Liquidity risk and Currency risk.

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. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments and derivative financial instruments.

The following table summaries the carrying amount of financial assets and liabilities recorded at the end of the period by categories:

The sensitivity analyses in the following sections relate to the position as at March 31, 2018, March 31, 2017 and April 01, 2016.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and in place at March 31, 2018.

The following assumptions have been made in calculating the sensitivity analyses:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31,2018, March 31, 2017 and as at April 01, 2016.

Credit risk on Financial Assets

The company is engaged in the business of trading in Iron and Steel. Payments by it are typically not secured by any form of credit support such as letters of credit, performance guarantees or escrow arrangements. Credit risk is the risk that counterparty will not meet its obligations under a financial instrument, leading to a financial loss. The Company is exposed to credit risk from its operating activities and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments.

Financial assets that are potentially subject to concentrations of credit risk and failures by counter-parties to discharge their obligations in full or in a timely manner consist principally of Trade Receivables, Loans and Advances and other assets. Credit risk on cash balances with Bank are limited because the counterparties are entities with acceptable credit ratings. The exposure to credit risk for trade receivable is low as it mainly consists of customers who are assessed by the management and the collection is received on timely basis within the credit period which is about 60 to 90 days.

Ageing analysis of the age of trade receivable amounts that are past due as at the end of reporting year but not impaired:

The liquidity risk is managed on the basis of expected maturity dates of the financial liabilities.

The average credit period taken to settle trade payables is about 30 to 90 days. The other payables are with short-term durations. The carrying amounts are assumed to be a reasonable approximation of fair value.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s top management in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the top management on an annual basis, and may be updated throughout the year subject to approval of the Company’s Board of Directors. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments.

The Company’s maximum exposure to credit risk for the components of the Balance Sheet at March 31, 2018, March 31, 2017 and as at April 01, 2016 is the carrying amounts as illustrated in Note 12 & 14. The Group’s maximum exposure relating to financial guarantees and financial derivative instruments is noted in notes and the liquidity table below.

Interest Rate

The company does not operate in an industry that requires intense capital and hence the expsoure to interest rate risk is reasonably moderate. The major component of the interest charge for the company is denominated in variable risk instruments which are basically in the form of loan from banks and FI’s. The details of the borrowings of the company is given in the respective notes on borrowings.

The interest rate risk exposure is mainly from changes in fixed and floating interest rates. The interest rates are disclosed in the respective notes to the financial statement of the Company. The following table analyse the breakdown of the financial assets and liabilities by type of interest rate:

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, after excluding the credit exposure for which interest rate swap has been taken and hence the interest rate is fixed. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including debt and overdraft from banks at an optimised cost.

The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31,2018, March 31, 2017 and as at April 01, 2016 is the carrying amounts as illustrated in Note 18. The Company’s maximum exposure relating to financial guarantees are noted in the liquidity table below .

Note 12

During the year the company has received the amounts for allotment of share warrants, to be converted into shares of the company on 05-Jun-2019. The company has received the 25% value of such warrants aggregating to Rs. 506.25 Lakhs

Note 13

The company has one subsidiary each in Singapore namely Readymade Steel Singapore Pte Ltd. and in India namely Kridhan Infrasolutions Pvt. Ltd. The company has made long term investment in the equity of these companies.

Note 14

Fixed Assets, Stocks and Cash balance were physically verified by the management. The Certification of the same given by the managment has been relied upon by the auditors.

Note 15

The current assets, loans and advances have the values at least equal to the amount at which they are stated in the Balance sheet on their realisation in ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

Note 16

Balances of Current Assets and Current Liabilities are subject to confirmation and consequential adjustment, if any. During the year, the managemet has done assignment of some of its receivables / payables as per mutual discussions with the respective parties. The necessary documentation in respect of the same are under execution.

Note 17

In absence of the parties registered as micro and small as defined under the Micro Small & Medium Enterprise Development (MSMED) Act 2006, the relevant information has been considered as NIL. Hence, the required disclosure under the MSMED Act are not given.

Note 18 Segment Reporting

The company operates in only one segment. Hence, there are no other reportable segment as per AS - 17 issued by ICAI. Note 48 First-time adoption of lnd AS

These financial statements, for the year ended March 31, 2018 and March 31, 2017 are prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for the year ending on March 31, 2018, together with the comparative period data as at and for the year ending on March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 1, 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2018 and year ended March 31, 2017.

Since, there is no change in the functional currency, the company has elected to continue with the carrying value for all of its Property, Plant and Equipment (PPE) as recognised in its previous GAAP financial as deemed cost at the transition date except in respect of land which has been carried at fair value as on the transition date.

Note 19 Events after reporting period

No subsequent events that would have a material impact on the financials were observed after the reporting period.

Note 20 Gratuity as Defined contribution benefits Scheme

Defined Benefit Plan

Under the said Act, employee who has completed 5 years of service is entitled to specific benefit. The level of benefits provided depends upon the strength of service of the employees and the salary at the retirement age.

Following table summarises the components of net benefit expenses recognised in the statement of Profit and Loss and amounts recognised in the balance sheet for the gratuity plan:

The company has carried out an Actuarial Valuation for the first time during the year to evaluate the likely liability on account of terminal benefits of its employees. Till the previous year ended March 31, 2017, the company has estimated the amount of liability and hence the previous period figures are not strictly comparable.

Note 21

The Financial statements were authorised for issue in accordance with a resolution of the Directors dated May 29, 2018.

Note 22

Previous years’ figures have been regrouped / reclassified wherever necessary to confirm to current classification.

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Mar 31, 2016

a) Security Details

i) The Term Loan facility from Banks along with interest are secured (incl additional security) by EM of Factory, Land and Building of the plant of the company at Khopoli.

ii) Further secured by Personal Guarantee of Anil Agrawal.

b) Repayment Schedule

The term loans are repayable in 72 EMI commencing from April 2009

1. Fixed Assets, Stocks and Cash balance were physically verified by the management. The Certification of the same given by the management has been relied upon by the auditors.

2. The current assets, loans and advances have the values at least equal to the amount at which they are stated in the Balance sheet on their realization in ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

3. Balances of Current Assets and Current Liabilities are subject to confirmation and consequential adjustment, if any. During the year, the management has done assignment of some of its receivables / payables as per mutual discussions with the respective parties. The necessary documentation in respect of the same are under execution.

4. In absence of the parties registered as micro, small or medium as defined under the Micro Small & Medium Enterprise Development (MSMED) Act 2002, the relevant information has been considered as NIL. Hence, the required discloses under the MSMED Act are not given.

5. In view of the nature of the business of the company being as per the specification of the customers, the quantitative details are given to the extent available and are not of comparable items.

6 The company has accounted for liability on account of Employee retirement benefits on accrual basis but the same is not on actuarial basis as the amount of the same is not material. However, the actuarial valuation for the same shall be done in the coming year.

7 The company has one subsidiary each in Singapore namely Readymade Steel Singapore Pte Ltd. and in India namely Kridhan Infrasolutions Pvt. Ltd. The company has made long term investment in the equity of these companies.

The company has received notices of demand from Office of Income Tax for '' 68.76 lacs for which it has filed / represented at appropriate forums and are pending at these forums. Based on the progress made and as per the best estimates made by the company, based on legal opinion obtained, the company will not be required to pay any material amount in respect of the same.

8. During the year, the company has converted its share warrants into capital, in tranches, for which full amount of the consideration had been received. In respect of some share warrants, the amount payable had not been received and accordingly, after due approval and in compliance with required formalities, these warrants had been forfeited. The amount already received, being in the nature of capital receipt has been credited to Capital Reserve.

9. Previous year’s figures have been regrouped, rearranged and reclassified wherever necessary to conform to current year’s presentation.

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Mar 31, 2015

1. Fixed Assets, Stocks and Cash balance were physically verified by the management. The Certification of the same given by the management has been relied upon by the auditors.

The current assets, loans and advances have the values at least equal to the amount at which they are stated in the Balance sheet on their realization in ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2. Balances of Current assets and current liabilities are subject to confirmation and consequential adjustment, if any. During the year, the management has done assignment of some of its receivables/payables as per mutual discussions with the respective parties. The necessary documentation in respect of the same are under execution.

3. In absence of the parties registered as micro, small or medium as defined under the Micro Small & Medium Enterprise Development Act 2002, the relevant information has been considered as NIL. Hence, the required disclosure under the MSMED Act are not provided.

4. In view of the nature of the business of the company being as per the specification of the customers, the quantitative details are given to the extent available and are not of comparable items.

The company has two subsidiaries Readymade Steel Singapore Pte Ltd. and Kridhan Infra Solution Private Limited. The company has made long term investment in the equity of these companies.

5. Contingent liabilities not provided for: Amount in Rs. Lacs Corporate Guarantees issued to parties 17.43 (17.43] Income tax and VAT liabilities in respect of pending/ ongoing assessments Not Ascertainable

6. During the year the company, pursuant to necessary approval, the company has split its share of face value of Rs. 10 each to face value of Rs. 2. each

7. The company has during the year converted share warrants aggregating to Rs. 124.50 Lacs. As at the reporting date the company carries the balance amount of share warrant money which shall be converted after necessary approval / formalities in this regard.

8. Previous year figures have been regrouped, rearranged and reclassified wherever necessary to conform to current years presentation.

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Mar 31, 2014

A) Rights and Preference attached

The company has only one class of equity shares having par value of `10 per share.Each share holder of equity shares is entitled to one vote per share. In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

1.1 : LONG TERM BORROWINGS

a) Security Details

i) The Term Loan facility from Banks are along with interest are secured (incl additional security) by EM of Factory, Land and Building of the plant of the company at Khopoli

ii) Further secured by Personal Guarantee of Anil Agarwal

b) Repayment Schedule

The term loans are repayable in 72 EMI commencing from April 2009

1.2 : TRADE PAYABLES

There is no supplier covered under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). This information and the information given above has been determined based on the details regarding the status of the suppliers obtained by the Company. This has been relied upon by the auditors.

1.3 Fixed Assets, Stocks and Cash balance were physically verified by the management. The Certification of the same given by the managment has been relied upon by the auditors.

1.4 The current assets, loans and advances have the values at least equal to the amount at which they are stated in the Balance sheet on their realisation in ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

1.5 Balances of Current assets and current liabilities are subject to confirmation and consequential adjustment, if any. During the year, the managemet has done assignment of some of its receivables / payables as per mutual discussions with the respective parties. The necessary documentation in respect of the same are under execution.

1.6 In absence of the parties registered as micro, small or medium as defined under the Micro Small & Medium Enterprise Development Act 2002, the relevant information has been considered as NIL. Hence, the required discloses under the MSMED Act are not given.

1.7 In view of the nature of the business of the company being as per the specification of the customers, the quanititaive details are given to the extent available and are not of comparable items.

1.8 Segment Reporting

The company operates in only one segment. Hence, there are no other reportable segment as per AS - 17 issued by ICAI.

1.9 The company has two subsidiaries Readymade Steel Singapore Pte Ltd. and Readymade Steel Hongkong Ltd. The company has made long term investment in the equity of these companies. There are no material transaction in Readymade Steel Hongkong Ltd. however, there has been considerable business in Readymade Steel Singapore Pte Ltd. which has acquired KH Foges Pte Ltd., a leading foundation engineering company in Singapore. The company has invested significant amount in Readymade Steel Singapore Pte Ltd. as long term equity investments for these activities. During the year the company has also acquired the business of Kridhan Infra solutions (P) Ltd. for availing the benefits of operational synergy.

1.10 Contingent liabilities not provided for:

Amount in Rs. Lacs Corporate Guarantees issued to parties 17.43 (35.57) Income Tax Demand Recd 17.09 (amount deposited under protest Rs. 8.55 Lacs)

Income tax and VAT liabilities in respect of pending / ongoing assessments Not Ascertainable

1.11 Previous year figures have been regrouped, rearranged and reclassified wherever necessary to conform to current years presentation.

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Mar 31, 2013

1.1 Fixed Assets, Stocks and Cash balance were physically verifed by the management. The Certifcation of the same given by the managment has been relied upon by the auditors.

1.2 The current assets, loans and advances have the values at least equal to the amount at which they are stated in the Balance sheet on their realisation in ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

1.3 Balances of Current assets and current liabilities are subject to confrmation and consequential adjustment, if any.

1.4 In absence of none of the parties are registered as micro, small or medium as defned under the Micro Small & Medium Enterprise Development Act 2002, the relevant information has been considered as NIL. Hence, the required discloses under the MSMED Act are not given.

1.5 In view of the nature of the business of the company being as per the specifcation of the customers, the quanititaive details are given to the etxent available and are not of comparable items.

1.6 Segment Reporting

The company operates in only one segment. Hence, there are no other reportable segment as per AS - 17 issued by ICAI.

1.7 The company has accounted for liability on account of Employee retirement benefts on accrual basis but the same is not on actuarial basis as the amount of the same is not material. However, the actuarial valuation for the same shall be done in the coming year.

1.8 The company has two subsidiaries Readymade Steel Singapore Pte Ltd. and Readymade Steel Hongkong Ltd. The company has made long term investment in the equity of these companies. There are no material transaction in Readymade Steel Hongkong Ltd. however, there has been considerable business in Readymade Steel Singapore Pte Ltd. which has acquired KH Foges Pte Ltd., a leading foundation engineering company in Singapore. The company has invested signifcant amount in Readymade Steel Singapore Pte Ltd. as long term equity investments for these activities.

1.9 Contingent liabilities not provided for: Amount in Rs. Lacs

Corporate Guarantees issued to parties 35.57 (69.92)

Income tax and VAT liabilities in respect of pending / ongoing assessments Not Ascertainable

1.10 Long term borrowings include the instalments due and payable within one year amounting to Rs. 420 Lacs

1.11 Previous year fgures have been regrouped, rearranged and reclassifed wherever necessary to conform to current years presentation.

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Mar 31, 2012

A) Security Details

i) The Term Loan facility from Banks are along with interest are secured (incl additional security) by EM of Factory, Land and Building of the plant of the company at Khopoli having value of 395.00 Lacs

ii) Further secured by Personal Guarantee of Anil Agrawal and Smt. Krishna Devi Agarwal

b) Repayment Schedule

The term loans are repayable in 72 EMI commencing from April 2009

There is no supplier covered under the Micro, Small and Medium Enterprises Development Act, 2006 (the Act). This information and the information given above has been determined based on the details regarding the status of the suppliers obtained by the Company. This has been relied upon by the auditors.

1 Fixed Assets, Stocks and Cash balance were physically verified by the management. The Certification of the same given by the managment has been relied upon by the auditors.

2 The current assets, loans and advances have the values at least equal to the amount at which they are stated in the Balance sheet on their realisation in ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

3 Balances of Current assets and current liabilities are subject to confirmation and consequential adjustment, if any.

4 In absence of none of the parties are registered as micro, small or medium as defined under the Micro Small & Medium Enterprise Development Act 2002, the relevant information has been considered as NIL. Hence, the required discloses under the MSMED Act are not given.

5 In view of the nature of the business of the company being as per the specification of the customers, the quanititaive details are given to the etxent available and are not of comparable items.

6 The company has accounted for liability on account of Employee retirement benefits on accrual basis but the same is not on actuarial basis as the amount of the same is not material. However, the actuarial valuation for the same shall be done in the coming year.

7 During the year the revised Schedule VI of the companies Act, has become applicable. Pursuant to which the company has made the requisite discosure for the same in compliance thereof. Accordingly, the previous years figures have been regrouped for the purpose of comparison as also for compliance with the requirement of Revised Schedule VI.

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Mar 31, 2011

1) Contingent Liabilities not provided for; (Rs. In lacs)

Counter guarantees in respect of Bank Guarantees given to the parties 147.58

Corporate Guarnatees issued to parties 60.00

Income tax and sales tax liabilities in respect of pending assessments, remain unprovided. Not Ascertainable

2) Fixed Assets, Stocks and Cash balance have been physically verified by the management.

3) Current Assets, Loans and Advances have a values at least equal to the amount at which they are stated in the Balance sheet on their realisation in the ordinary course of business. Provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4) Balances of Current Assets and Current Liabilities are subject to confirmation and consequential adjustment, if any.

5) As of March 2011, the Company has not received any information as to the status as a Micro, Small & Medium Enterprises from any of the suppliers , with a copy of the Memorandum filed as per the Provision of section 8 of the Micro, Small & Medium Enteprises Development Act 2006.

6) The company had incurred a sum of Rs. 11,57,153 towards preliminary expenses and other legal expenses including stamp duty and fee for increase in the authorised capital, which are amortised over a period of ten years from the date the same are being incurred. The unamortised balance of Rs. 928,579 is being carried forward as on 31st March 2011. The company has incurred a sum of Rs 1,03,31,545 towards Public Issue Expenses.

7) In view of the nature of the business of the company being as per the specification of the customers, the quanititaive details are given to the etxent available and are not of comparable items.

8) SEGMENT REPORTING

The company operates in only one segment. Hence, there are no other reportable segment as per AS - 17 issued by the Institute of Chartered Accountants of India.

9) The company was accoutning for gratuity on cash basis. During the period the company has carried out an actuarial valuation and based upon the same provision for gratuity has been accounted for. The cumulative provision as on March 31, 2010 amounting to Rs. 1.20 lacs has been adjusted against the opening balance of reserves as per AS - 15 and the provision for the year ended March 31, 2011 amounting to Rs.1.13 lacs has been charged to expenses in the year.

Other Disclosures as required under AS - 15 are as under Defined Benefit Plan - Gratuity

10) During the period under audit the company has vested a scheme of Employee Stock Option under which 116000 shares are / will be offered to the employees over a period of five years at defined prices. The option is excersicable by the employee starting from the year 2011-12.

11) Figures have been rounded off to a nearest rupee. Previous year''s figures have been regrouped, reclassified and rearranged wherever necessary. Figures in the brackets are for the year ended March 31, 2010.