Notes to Accounts of Magna Electrocastings Ltd.

Mar 31, 2025

i) The Company has identified Land and Building at Mullipadi Village, Kinathukadavu to be in the nature of Investment property, as these are held to earn rental income.

Further, during the financial year 2024-25, the Company acquired a portion of land measuring 0.553 Acre, which is temporarily classified under Investment Property, as the management''s intention regarding its future use is currently unascertained.

ii) Fair Value of Land and Building held as Investment Property - '' 211.52 Lakhs (Previous year - '' 192.29 Lakhs)

iii) The fair value of investment property has been determined with reference to the guideline value for the year ended 31.03.2025 as determined by the Government for the location at which the property is situated and adjusted for the depreciated value of buildings. The management believes the fair value of the investment property as at the balance sheet date would not be significantly different from the guideline value.

6 Other Intangible Assetsa. Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10/- each. All these equity shares have the same rights and preferences with respect to payment of dividend, repayment of capital and carries one vote for every such class of shares held. In the event of liquidation, the excess assets shall be distributed amongst the members in proportion to the capital.

d. Details of shares held by Holding Company:

There are no shares held by Holding Company/Subsidiaries of ultimate Holding Company.

e. Details of shares issued for consideration other than cash in the immediately preceding five years:

There are no shares issued for consideration other than cash.

f. Details of share allotted by way of Bonus shares or any buy back in the immediately preceding five years:

In terms of Board Resolution dt.,18^th September, 2020 the Company bought back 3,50,096 equity shares of '' 10 each at a price of '' 175 per share from the eligible shareholders on the record date 01.10.2020 fixed for the purpose aggregating to 7.64% of the paid up capital.

As required under Section 69 read with Section 68 of the Companies Act, 2013 an amount of '' 35.01 lakhs has been transferred to Capital Redemption Reserve from the surplus in Profit & Loss A/c / General Reserve in Financial Year 2020-21. The aggregate expenses incurred for the Buy-Back was '' 44.77 lakhs. This amount is written off under Other Expenses during the Financial year 2020-21.

Term Loan facilities from Union Bank of India are primarily secured by value of Machinery (as per projected report for '' 3015 Lakhs) based on the estimation given by the company and the collateral security is same as that of working capital facilities (Refer Note No.22)

Repayable in 60 Monthly instalment of '' 25 Lakhs with initial moratorium period of 12 months from the date of first availment (9^th January 2025). Interest is payable on monthly basis (including moratorium period) and the rate of interest is EBLR 0.25%

• Working Capital Facilities from Axis Bank Limited and Union Bank of India Limited are secured by pari-passu first charge on the current assets and unencumbered fixed assets of the company.

• Working Capital Facilities are further secured by pari-passu first charge on the specific immovable properties situated at S. No. 34, 35/1 Part, 36/4 Part of Mullupadi Village,Thamaraikulam, Pollachi, Coimbatore District, Tamilnadu. Exclusive charge to Union Bank of India on land situated at S.F.No. 149/A3,Ganapathipalayam Village, Udumalpet, Tiruppur and S.F.No. 409/3, Kottathurai Village, Keeranur,Palani.

• Working Capital Facilities from Banks are repayable on demand and carries interest rates as follows: Axis Bank- REPO 4%; UBI- EBLR 3.25%

• In respect of borrowings made during the year, the charge on the assets given as security to the lender have been created on time in compliance of the regulatory requirements

The above workings are provisional computation of tax expenses and are subject to finalisation including that of tax audit.

There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

Employee Benefit Plan:

The Company has an obligation towards gratuity, a defined benefit obligation.Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, Gratuity is computed by multiplying last drawn salary [Basic salary including Dearness Allowance if any] by completed years of continuous service with part thereof in excess of six months and again by 15/26. Act provides for a vesting period of 5 years for withdrawal and retirement and a monetary ceiling on gratuity payable to an employee on separation, as may be prescribed under the Payment of Gratuity Act, 1972, from time to time. However, in cases where an enterprise has more favourable terms in this regard the same has been adopted.

The most recent actuarial valuation of the defined benefit obligation was carried out at the balance sheet date. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method. Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation as at balance sheet date:

ii. The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

(iii) Fair value hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three levels of a fair value hierarchy.

The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability

* The Company has not disclosed the fair values for short term / current financial instruments (such as short term trade receivables, short term trade payables, Current Loans and Short term borrowings etc), because their carrying amounts are a reasonable approximation of Fair value.

iv. Measurement of fair values :

The basis of measurement in respect of each class of financial assets and liabilities are disclosed in point no. (iv) Significant Accounting Judgements, Estimates And Assumptions”

42 Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

a. Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Credit risk management Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

* An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment. Historical trends showed as at 31^st March, 2025 and 31^st March, 2024 the Company had no significant credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Any subsequent recoveries made are recognised in statement of profit and loss.

b. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows 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.

The bank cash credit facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity of 1 year.

d. Financial Currency Risk

The Company''s functional currency is Indian Rupees (INR). The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects the Company''s revenue from export markets and the costs of imports.

Adverse movements in the exchange rate between the Rupee and any relevant foreign currency results in increase in the Company''s overall debt position in Rupee terms without the Company having incurred additional debt and favourable movements in the exchange rates will conversely result in reduction in the Company''s receivables in foreign currency. In order to hedge exchange rate risk, the Company has a policy to hedge cash flows (either using natural hedge or an artificial hedge) upto a specific tenure using forward exchange contracts and hedges based on their Internal Foreign Curreny Exposure and risk management policy as approved by the management and in accordance with the applicable regulations where the Company operates.

The following table details the Company''s sensitivity to a 5% increase and decrease in the INR against the relevant foreign currencies net of hedge accounting impact. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 5% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where INR strengthens 5% against the relevant currency. For a 5% weakening of INR against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

43 Capital management (a) Risk management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2025 and March 31,2024.

(b) Dividends

In respect of the year ended 31^st March 2025, the Directors propose that a dividend of '' 6.00/- per share (60% of face value) be paid on fully paid Equity Shares. The Equity Dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is '' 253.93 Lakhs.

Particulars	31.03.2025	31.03.2024
53 Contingent Liabilities and Commitments (to the extent not provided for) i) Contingent Liabilities On Account of Pending Litigations(Excluding Interest)	40.70	40.70
ii) Commitments On Account of Capital Expenditure	372.69	2,783.37

54 Leasing arrangements

The Company had taken one property on lease for operating purposes, which was recognized as a Right-of-Use (RoU) asset and corresponding lease liability as per Ind AS 116. The lease term of the said arrangement ended on 31^st March 2025 and accordingly, the related lease liability and RoU asset have been derecognized as at the year end.

A new lease agreement for the same property has been entered into, commencing from 1^st April 2025, and will be accounted for in accordance with the provisions of Ind AS 116 in the next financial year.

55 Capitalisation of Borrowing Cost:

The borrowing cost capitalised during the year amounts to '' 9.51 lakhs (Previous year: Rs. Nil), in respect of specific borrowings obtained for the acquisition and installation of plant and machinery for an additional moulding line.

56 Relationship with Struck off companies:

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

57 Utilisation of Borrowed Funds and Share Premium:

(a) The company has not advanced or loaned or invested any fund, which are material either individually or in aggregate (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The company has not received any fund, which are material either individually or in aggregate, from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries; Further, the loan funds borrowed for the capital project have been utilised solely for the intended project purposes.

58 Details of Crypto Currency or Virtual Currency:

The company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

59 Title Deeds of Immovable Properties:

All the immovable properties are held in the name of the company.

60 Details of Benami property:

No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) (45 of 1988) and the rules made thereunder.

61 Compliance with number of layers of companies:

The Company is not a holding company of any company and hence the provisions of this rule is not applicable to it.

62 Undisclosed Income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

63 Revaluation of Property, Plant and Equipment and Intangible Assets:

The Company has not revalued its property, plant and equipment (including Right of Use Assets) or intangible assets or both during the current or previous year.

64 Loans to Related Parties and others:

The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMP''s and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that:

a) are repayable on demand or

b) without specifying any terms or period of repayment.

65 Wilful Defaulter:

The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

66 Registration of Charges or Satisfaction with Registrar of Companies (ROC):

The Company does not have any charges which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period. Due to technical issues, the company is unable to file the required forms

to complete satisfaction of charges with respect to a charge created in 1999. However, the loan for which the charge was created was repaid in full.

67 Income tax assessment has been completed upto the Assessment year 2024-25.

68 The VAT refund of Rs . 43,97,047 in respect of F.Y 2013-14 and 2014-15 was due, but not accepted by Asst. Commissioner (CT), PN.Palayam Circle, Coimbatore. The Company has filed a writ petition with Hon''ble High Court of Judicature, Madras (Numbered W.P 11695 and 11698 of 2022). High Court disposed off the writ on 29-06-2022 in favour of the company. Consequent upon Hon''ble High Court of Judicature, Madras order dated 29-06-2022, VAT Re-assessment order has been passed by Asst. Commissioner (CT) vide order dated 10-08-2022 towards refund of VAT amount claimed by us. Refund is awaited and company is following up with Commercial Taxes Department.

69 The Code on Social Security,2020 (‘Code'') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However,the date on which the Code will come into effect has not been notified.The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

70 All figures are in Lakhs unless otherwise stated.

71 Previous year''s figures are reclassified wherever necessary to conform to the current year''s classification.

---

Mar 31, 2024

i) Fair Value of Land and Building held as Investment Property - '' 192.29 Lakhs (Previous year - '' 192.29 Lakhs)

ii) The fair value of investment property has been determined with reference to the guideline value for the year ended 31.03.2024 as determined by the Government for the location at which the property is situated and adjusted for the depreciated value of buildings.The management believes the fair value of the investment property as at the balance sheet date would not be significantly different from the guideline value.

iv) The quarterly returns or statements comprising (stock statements, book debt statements, statements on ageing analysis of the debtors/other receivables, and other stipulated financial information) filed by the Company with banks or financial institutions are in agreement with the unaudited books of account of the Company of the respective quarters and no material discrepancies have been observed.

i) The Company''s exposure to credit and currency risk and loss allowances related to Trade Receivables are disclosed in Note No 41

ii) Trade Receivables with the above mentioned carrying amount have been pledged as security against bank borrowings of the Company (Refer Note: 21)

Note: The percentage change has been computed with respect to the number of shares held by Promoter and Promoter group at the beginning of the year

*Promoter here means Promoter as defined in the Companies Act, 2013. a. Terms and rights attached to equity shares

The Company has only one class of equity shares having a par value of '' 10/- each. All these equity shares have the same rights and preferences with respect to payment of dividend, repayment of capital and carries one vote for every such class of shares held. In the event of liquidation, the excess assets shall be distributed amongst the members in proportion to the capital.

d. Details of shares held by Holding Company:

There are no shares held by Holding Company/Subsidiaries of ultimate Holding Company.

e. Details of shares issued for consideration other than cash in the immediately preceding five years:

There are no shares issued for consideration other than cash.

f. Details of share allotted by way of Bonus shares or any buy back in the immediately preceding five years:

In terms of Board Resolution dt.,18th September, 2020 the Company bought back 3,50,096 equity shares of Rs.10 each at a price of Rs. 175 per share from the eligible shareholders on the record date 01.10.2020 fixed for the purpose aggregating to 7.64% of the paid up capital.

As required under Section 69 read with Section 68 of the Companies Act, 2013 an amount of Rs. 35.01 lakhs has been transferred to Capital Redemption Reserve from the surplus in Profit & Loss A/c / General Reserve in Financial Year 2020-21. The aggregate expenses incurred for the Buy-Back was Rs. 44.77 lakhs. This amount is written off under Other Expenses during the Financial year 2020-21.

Working Capital Facilities from Axis Bank Limited and Union Bank of India Limited are secured by pari-passu first charge on the current assets and unencumbered fixed assets of the company.

Working Capital Facilities are further secured by pari-passu first charge on the specific immovable properties situated at S. No. 34, 35/1 Part, 36/4 Part of Mullupadi Village,Thamaraikulam, Pollachi, Coimbatore District, Tamilnadu. Exclusive charge to Union Bank of India on land situated at S.F.No.149 A3,Ganapathipalayam Village, Udumalpet, Tiruppur and S.F.No. 409/3, Kottathurai Village, Keeranur,Palani. Working Capital Facilities from Banks are repayable on demand and carries interest rates as follows:

Axis Bank- REPO 4%; UBI- EBLR 3.25%

In respect of borrowings made during the year, the charge on the assets given as security to the lender have been created on time in compliance of the regulatory requirements

The above workings are provisional computation of tax expenses and are subject to finalisation including that of tax audit.

There were no transactions relating to previously unrecorded income that were surrendered or disclosed as income in the tax assessments under the Income Tax Act, 1961 (43 of 1961) during the year.

39 Employee Contribution Plan

The Company''s contribution to provident fund and superannuation fund are considered as defined contribution plans and are charged as an expense based on the amount of contribution required to be made and when services are rendered by the employees.

Employee Benefit Plan:

The Company has an obligation towards gratuity, a defined benefit obligation.Gratuity is payable as per Payment of Gratuity Act, 1972. In terms of the same, Gratuity is computed by multiplying last drawn salary [Basic salary including Dearness Allowance if any] by completed years of continuous service with part thereof in excess of six months and again by 15/26. Act provides for a vesting period of 5 years for withdrawal and retirement and a monetary ceiling on gratuity payable to an employee on separation, as may be prescribed under the Payment of Gratuity Act, 1972, from time to time. However, in cases where an enterprise has more favourable terms in this regard the same has been adopted.

The most recent actuarial valuation of the defined benefit obligation was carried out at the balance sheet date. The present value of the defined benefit obligations and the related current service cost and past service cost were measured using the Projected Unit Credit Method. Based on the actuarial valuation obtained in this respect, the following table sets out the details of the employee benefit obligation as at balance sheet date:

ii. The management assessed that the fair value of cash and cash equivalents, trade receivables, loans, other financial assets, trade payables and other financial liabilities approximate the carrying amount largely due to short-term maturity of these instruments. The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

(iii) Fair value hierarchy

Financial assets and financial liabilities are measured at fair value in the financial statement and are grouped into three levels of a fair value hierarchy.

The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for financial instruments.

Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3: Unobservable inputs for the asset or liability

* The Company has not disclosed the fair values for short term / current financial instruments (such as short term trade receivables, short term trade payables, Current Loans and Short term borrowings etc), because their carrying amounts are a reasonable approximation of Fair value.

iv. Measurement of fair values :

The basis of measurement in respect of each class of financial assets and liabilities are disclosed in point no. (iv) “Significant Accounting Judgements, Estimates And Assumptions” in Other Accounting Policy.

41 Financial risk management

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements.

a. Credit risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration risks. The Company has adopted a policy of only dealing with creditworthy counterparties and obtaining sufficient collateral, where appropriate, as a means of mitigating the risk of financial loss from defaults.

Credit risk management Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk B: Moderate credit risk C: High credit risk

* An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment. Historical trends showed as at 31st March, 2024 and 31st March, 2023 the Company had no significant credit risk.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counterparty fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Any subsequent recoveries made are recognised in statement of profit and loss.

b. Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Due to the nature of the business, the Company maintains flexibility in funding by maintaining availability under committed facilities. Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows 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.

The bank cash credit facilities may be drawn at any time and may be terminated by the bank without notice. Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity of 1 year.

d. Financial Currency Risk

The Company''s functional currency is Indian Rupees (INR). The Company undertakes transactions denominated in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects the Company''s revenue from export markets and the costs of imports.

Adverse movements in the exchange rate between the Rupee and any relevant foreign currency results in increase in the Company''s overall debt position in Rupee terms without the Company having incurred additional debt and favourable movements in the exchange rates will conversely result in reduction in the Company''s receivables in foreign currency. In order to hedge exchange rate risk, the Company has a policy to hedge cash flows (either using natural hedge or an artificial hedge) upto a specific tenure using forward exchange contracts and hedges based on their Internal Foreign Curreny Exposure and risk management policy as approved by the management and in accordance with the applicable regulations where the Company operates.

The carrying amounts of the Company''s monetary assets and monetary liabilities at the end of the reporting period are as follows:

The following table details the Company''s sensitivity to a 5% increase and decrease in the INR against the relevant foreign currencies net of hedge accounting impact. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the year-end for a 5% change in foreign currency rates, with all other variables held constant. A positive number below indicates an increase in profit or equity where INR strengthens 5% against the relevant currency. For a 5% weakening of INR against the relevant currency, there would be a comparable impact on profit or equity, and the balances below would be negative.

42 Capital management (a) Risk management

For the purpose of the Company''s capital management, capital includes issued equity capital and all other equity reserves. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total equity. The Company includes within net debt, interest bearing loans and borrowings, less cash and cash equivalents.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31,2024 and March 31,2023.

(b) Dividends

In respect of the year ended 31st March 2024, the Directors propose that a dividend of Rs. 5.00/-per share (50% of face value) be paid on fully paid Equity Shares. The Equity Dividend is subject to approval by shareholders at the Annual General Meeting and has not been included as liability in these financial statements. The proposed equity dividend is payable to all holders of fully paid equity shares. The total estimated equity dividend to be paid is Rs. 211.61 Lakhs

49 Power & Fuel is net off Wind Power and Solar Power of Rs. 741.57 Lakhs (Previous year - Rs. 479.54 Lakhs) representing units supplied to the grid against which equivalent consumption was made in-house.

50 Disclosure relating to Suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006. The disclosure in respect of the amounts payable to such enterprises as at the end of the year has been made in the financial statements based on information received and available with the Company.

NOTES TO THE FINANCIAL STATEMENTS:		('' in lakhs)
Particulars	31.03.2024	31.03.2023
52 Contingent Liabilities and Commitments (to the extent not provided for)
i) Contingent Liabilities On Account of Pending Litigations(Excluding Interest) ii) Commitments	40.70	40.70
On Account of Capital Expenditure	2,783.37	76.00
53 Leasing arrangements
The Company holds one property on lease for operating purposes and the future minimum lease payments are as under:
a) Not later than one year	9.20	7.12
b) Later than one year and not later than five years	-	8.09
c) Later than five years	-	-
d) Lease payments recognised in the statement of profit and loss	1.72	4.98

54 Relationship with Struck off companies:

The company does not have any transactions with companies struck off under Section 248 of the Companies

Act, 2013 or Section 560 of Companies Act, 1956.

55 Utilisation of Borrowed Funds and Share Premium:

(a) The company has not advanced or loaned or invested any fund, which are material either individually or in aggregate (either from borrowed funds or share premium or any other sources or kind of funds) to or in any other person or entity, including foreign entities (“Intermediaries”), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

(b) The company has not received any fund, which are material either individually or in aggregate, from any person or entity, including foreign entities (“Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries;

56 Details of Crypto Currency or Virtual Currency:

The company has not traded or invested in Crypto Currency or Virtual Currency during the financial

year.

57 Title Deeds of Immovable Properties:

All the immovable properties are held in the name of the company.

58 Details of Benami property:

No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (as amended in 2016) (45 of 1988) and the rules made thereunder.

59 Compliance with number of layers of companies:

The Company is not a holding company of any company and hence the provisions of this rule is not applicable to it.

60 Undisclosed Income:

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

61 Revaluation of Property, Plant and Equipment and Intangible Assets:

The Company has not revalued its property, plant and equipment (including Right of Use Assets) or intangible assets or both during the current or previous year.

62 Loans to Related Parties and others:

The Company had not granted any loans or advances in the nature of loans to promoters, directors, KMP''s and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person that:

a) are repayable on demand or

b) without specifying any terms or period of repayment.

63 Wilful Defaulter:

The Company had not been declared a wilful defaulter by any bank or financial institution or other lender (as defined under the Companies Act, 2013) or consortium thereof, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

64 Registration of Charges or Satisfaction with Registrar of Companies (ROC):

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

65 Income tax assessment has been completed upto the Assessment year 2023-24.

66 Sl.No. 60 The VAT refund of Rs . 43,97,047 in respect of F.Y 2013-14 and 2014-15 was due, but not accepted by Asst. Commissioner (CT), RN.Palayam Circle, Coimbatore. The Company has filed a writ petition with Hon''ble High Court of Judicature, Madras (Numbered W.P 11695 and 11698 of 2022). High Court disposed off the writ on 29-06-2022 in favour of the company. Consequent upon Hon''ble High Court of Judicature, Madras order dated 29-06-2022, VAT Re-assessment order has been passed by Asst. Commissioner (CT) vide order dated 10-08-2022 towards refund of VAT amount claimed by us. Refund is awaited and company is following up with Commercial Taxes Department.

67 The Code on Social Security,2020 (‘Code'') relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However,the date on which the Code will come into effect has not been notified.The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

68 All figures are in Lakhs unless otherwise stated.

69 Previous year''s figures are reclassified wherever necessary to conform to the current year''s classification.

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Mar 31, 2018

1. Company overview Corporate Information:

Magna Electro Castings Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. The address of its registered office and principal place of business are disclosed in the introduction to the Annual report. Its shares are listed on the Bombay Stock Exchange- BSE Limited. The Company is engaged in the manufacturing and selling of Cast Iron Components. The Company caters to both domestic and international markets. The financial statements are approved for issue bythe Company’s Board of Directors on 30th May, 2018.

New Amendments issued yet not effective:

1) Ind AS 115, Revenue from contracts with customers

a. It deals with revenue recognition and establishes principles for reporting useful information to users of financial statements about the nature, amount, timing and uncertainty of revenue and cash flows arising from an entity’s contracts with customers. The standard replaces Ind AS 18 Revenue and Ind AS 11 Construction contracts and related appendices. The new standard is mandatory for financial years commencing on or after 1st April, 2018 and early application is not permitted. The standard permits either a full retrospective or a modified retrospective approach for the adoption.

b. The Company is in the process of evaluating the impact ofthe standard.

2) Amendments to Ind AS 40 Investment property-Transfers of investment property

a. The amendments clarify that transfers to, or from, investment property can only be made if there has been a change in use that is supported by evidence. A change in use occurs when the property meets, or ceases to meet, the definition of investment property.

b. The Company doesn’t have any investment property. Accordingly no impact is envisaged.

3) Amendments to Ind AS 12 Income taxes regarding recognition of deferred tax assets on unrealised losses

a. The amendments clarify the accounting for deferred taxes where an asset is measured at fair value and that fair value is below the asset’s tax base.

b. The Company is in the process of evaluating the impact of the standard.

4) Notification of Appendix B to Ind AS 21 Foreign currency transactions and advance consideration

a. The MCA has notified Appendix B to Ind AS 21, Foreign currency transactions and advance consideration. The appendix clarifies how to determine the date of transaction for the exchange rate to be used on initial recognition of a related asset, expense or income where an entity pays or receives consideration in advance for foreign currency-denominated contracts.

b. The Company has assessed the impact of the above the notification and concluded there will be no impact on the above.

In Financial Year 2017-18on September 2017, a dividend of Rs.2.00 per share (total dividend Rs. 110.30 Lakhs) was paid toholdersof fullypaidequityshares. In Financial Year 2016-17onSeptember 2016,adividendof Rs.2.00 per share (total dividend Rs.110.30 Lakhs) was paid to holders of fully paid equity shares.

In respect of the year ended March 31, 2018, the Directors propose that a dividend of Rs.2.00 per share be paid on fully paid equity shares. The equity dividend is subject to approval of shareholders at the ensuing Annual General Meeting. The total estimated equity dividend to be paid is Rs. 110.48 Lakhs.

(i) Fairvalue hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2 : The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no investments in equity instruments.

There are no transfers between levels 1 and 2 during the year. The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the reporting period.

(ii) Fair value of financial assets and liabilities measured at amortised cost

The carrying amounts of trade receivables, trade payables, cash and cash equivalents and other current financial liabilities are considered to be the same as their fair values, due to their short-term nature.

Financial risk management

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

(a) Credit risk

Companyfaces credit riskfrom cash and cash equivalents, deposits with banks and financial institutions and unsecured trade receivables. The Company doesn’t face any credit risk with other financial assets.

(i) Credit risk management

Credit risk on deposit is mitigated by depositing the funds in reputed scheduled bank.

For trade receivables, the primary source of credit risk is that these are unsecured.The Company sells the products to customers only when the collection of trade receivables is certain and whether there has been a significant increase in the credit risk on an on-going basis is monitored throughout each reporting period. As at the balance sheet date, based on the credit assessment the historical trend of low default is expected to continue. An impairment analysis is performed at each reporting date on an individual basis for major clients. Any recoverability of receivables is provided for based on the impairment assessment. Historical trends showed as atthe transition date, 31st March, 2017 and 31st March, 2018 Company had no significant credit risk.

(b) Liquidity risk

Objective of liquidity risk management is to maintain sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows. The company’s liquidity management policy involves projecting cash flows in major currencies and considering the level of liquid assets necessary to meet these balance sheet liquidity ratios against internal requirements.

(i) Financing Arrangements

The Company had access to the following undrawn borrowing facilities atthe end of the reporting period:

Subject to the continuance of satisfactory credit ratings, the bank loan facilities may be drawn at any time in INR and have an average maturity of 1 year.

(ii) Maturities offinancial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

a) all non-derivativefinancial liabilities, and

b) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of the timing of the cash flows.

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is immaterial.

(c) Market Risk

(i) Foreign currency risk

The company activities exposes it to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD and EURO. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). The risk is measured through a forecast of highly probable foreign currency cash flows.

2 Capital management (a) Risk management

The Company’s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.

Consistent with others in the industry, the Company monitors capital on the basis of the following gearing ratio: Net debt (total borrowings net of cash and cash equivalents) divided by Total ‘equity’ (as shown in the balance sheet).

Proposed Dividend

The Board of Directors has recommended to pay 12/- per share final dividend for the year ended March 31, 2018 subject to approval of shareholders in Annual General Meeting and has not been included as a liability in these financial statements.

3 Related Party Disclosures:

A. Related Party Relationships:

1. Key Managerial Personnel Sri- N. Krishna Samaraj- Managing Director

2. Relatives of Key Managerial Personnel ®mt- Muthulakshmi- Mother

3. Other Related Parties 1- Samrajyaa & Company

2. Magna Digitech India LLP

(erstwhile Magna Digitech India Private Limited)

3. Elgi Equipments Limited

4 Disclosure on dues to Micro, Small and Medium Enterprises:

As defined under Micro, Small and Medium Enterprises Development Act, 2006, the disclosure in respect of the amounts payable to such enterprises as at the end of the year has been made in the financial statements based on information received and available with the Company.

5 Segment Information:

A. Opening Segment

The Company is organised into two main reportable segments viz.,

(1) Manufacture and Sale of Castings Division-Foundry (2) Wind Energy Division

6 First-time adoption of Ind AS Transition to Ind AS

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

The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March, 2018,the comparative information presented in these financial statements for the year ended 31 March,2017 and in the preparation of an opening Ind AS balance sheet at 1 April,2016 (The Company’sdate of transition). In preparing its opening Ind AS balance sheet. The Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant.

An explanation of how the 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.

A. Exemptions and exceptions availed

Set out beloware the applicable Ind AS 101 optional exemptionsand mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A.1 Ind AS optional exemptions A.1.1 Deemedcost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for decommissioning liabilities.

Accordingly, The Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their previous GAAP carrying value.

A.1.2 Designation of previously recognised financial instruments

Ind AS 101 allows an entity to designate investments in equity instruments at FVOCI on the basis of the facts and circumstances at the date of transition to Ind AS. The Company has elected to apply this exemption for its investment in equity investments.

A.2 Ind AS mandatory exceptions

A.2.1 Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP The Company made estimates for certain items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

B: Notes to first-time adoption:

Note 1: Investment Property

Under the previous GAAF; investment properties were presented as part of non-current investments. Under Ind AS, investment properties are required to be separately presented on the face ofthe balance sheet. There is no impact on the total equity or profit as a result of this adjustment.

Note 2: Revenue

On adoption on Ind AS, Company has reassessed it revenue recognition and has de-recognised where it had continuing managerial involvement post the sale. Consequently, the total equity as at 31 March, 2017 decreased by Rs. 32. 29 (1 April, 2016Rs.s14.71) and profit for theyear ended31 March, 2017 decreased by Rs.19.51.

Note 3: Proposed Dividend

Under the previous GAAR dividends proposed by the board of directors after the balance sheet date but before the approval ofthe financial statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting. Accordingly, the liability for proposed dividend as at 1 April, 2016- Rs. 110.30 included under provisions has been reversed with corresponding adjustment to retained earnings. Consequently, the total equity increased by an equivalent amount.

Note 4: Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAR these remeasurements were forming part of the profit or loss for the year.

Under IGAAP Company has not recognised net asset position in gratuity, On adoption of Ind-AS group has recognised net asset position as on 1 April, 2016which has resulted in increase of retained earnings by Rs. 8.80 and retained earnings by Rs. 11.89as at 31 March, 2017 and profit for the year ended 31 March, 2017 increased by Rs. 3.09.

Note 5: Deferred Taxes

Deferred tax have been recognised on the adjustments made on transition to Ind AS and adoption of balance sheet approach.

Note 6: Other adjustments

Foreign curreny balance were restated. The total equity as at 31 March, 2017 decreased byRs.23.26(1April, 2016Rs.M7.19) and profit for the year ended 31 March, 2017 decreased by Rs. 6.07.

7 Previous years’ figures have been restated to comply with IND AS to make them comparable with the current period. Further, previous years’ figures have been regrouped / reclassified, wherever necessary, to conform with the current period presentation.

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Mar 31, 2016

Deferred income taxes reflects the impact of current year timing difference between taxable income and accounting income for the year and reversal of timing difference for the earlier years. Deferred tax is measured using the tax rates as at the reporting date.

Minimum Alternate tax (MAT) paid in a year is charged to the statement of Profit and Loss as current tax. MAT credit is recognized as an asset only to the extent that the Company will pay normal income tax during the specified period. The said asset is created by way of a credit to the statement of Profit and loss and shown as MAT credit Entitlement. The Company reviews the MAT credit entitlement asset every year and writes down the asset to the extent the Company does not have convincing evidence that it will pay normal tax during the specified period.

(i) Segment reporting:

Identification of segments

The Company''s operating businesses are organized and managed separately according to the nature of business. The Company at present has two operating segments namely Foundry division and Wind Energy division.

Inter segment transfers

The Company generally accounts for intersegment transfers at cost.

(j) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the period by the weighted average number of equity shares outstanding during the period.

a. The Income Tax Department has raised demand for Rs.4,32,198/- for the year 2007-08. The Company has gone on appeal disputing of the above demands. No Provision has been made in the books of account as the Company is confident of getting a verdict in its favour on the basis of legal advice.

1. Depreciation :

Depreciation has been charged under the Straight Line method at the rates prescribed under Schedule II of the Companies Act, 2013 and on the same basis as in the previous year.

2. Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the Company)

Pursuant to Section135 of the Companies Act, 2013, the Company''s CSR Committee has formulated a policy for undertaking CSR activities by the Company. The prescribed CSR Expenditure @ 2% of the average net profits of the Company for the last three financial years is Rs.15.45 Lakhs, as against this, the Company has incurred an expenditure of Rs.15.80 Lakhs during the year as stated in the Directors Report.

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Mar 31, 2015

1. Contingent Liabilities :

The Income Tax Department has raised demand for Rs.4,32,198/- for the year 2007-08 and a demand for Rs.20,65,720/- for the the Assessment year 2008-09. The Company has gone on appeal disputing of the above demands. No Provision has been made in the books of account as the Company is confident of getting a verdict in its favour on the basis of legal advice.

2. Depreciation :

Consequent upon the change in the method of providing depreciation in accordance with Schedule II to the Companies Act, 2013, the depreciation charge for the year is lower by Rs.253.97 Lakhs when compared to the amount arrived at on the same basis as in earlier years.

3. The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

4. Related party disclosures:

A. Names of the related parties and Descriptions of relationship

1. Key management personnel Sri. N. Krishna Samaraj, Managing Director

2. Relatives of Key Management personnel Smt. N.Muthulakshmi - Mother

3. Other related parties 1. Samrajyaa and Company

2. Magna Digitech India Private Limited

3. Elgi Equipments Ltd.

5. Pursuant to Sec.135 of the Companies Act, 2013, the Company's CSR Committee has formulated a policy for undertaking CSR activities by the Company. The prescribed CSR Expenditure @ 2% of the average net profits of the Company for the last three financial years is Rs.11.96 Lakhs, as against the Company has incurred an expenditure of Rs.12.56 Lakhs during the year.

6. The Company has not entered into any foreign exchange derivative transactions.

7. Figures for the previous year have been reclassified / regrouped wherever necessary.

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Mar 31, 2014

1. Contingent Liabilities :

For the Assessement year 2007-08, the Income Tax Department has raised demand for Rs.4,32,198/- and a penalty of Rs.4,03,920/-. For the Assessment year 2008-09 the department has also raised a demand for Rs.20,65,720/-. For the Assessment year 2009-10 the department has raised a demand of Rs.68,48,860/- . The Company has gone on appeal in respect of the above demands. No Provision has been made in the books of accounts as the Company is confident of getting a favorable verdict in its favour.

2. The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

3. Related party disclosures:

A. Names of the related parties and Descriptions of relationship

1. Key management personnel Mr. N. Krishna Samaraj, Managing Director

2. Relatives of Key Management personnel Smt. N.Muthulakshmi - Mother

3. Other related parties 1. Samrajyaa and company

2. Magna Digitech India Pvt. Ltd.

3. Elgi Equipments Ltd.

4. Ranba Castings Ltd.

4. The Company has not entered into any foreign exchange derivative transactions.

5. Figures for the previous year have been reclassified / regrouped wherever necessary.

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Mar 31, 2013

1. Basis of preparation

The financial statements of the Company have been prepared under the historical cost convention and on mercantile basis as a going concern in accordance with the applicable accounting standards notified under the Companies (Accounting Standards) and the relevant provisions of the Companies Act, 1956.

The accounting policies adopted in the preparation of the financial statements are consistent with the those of the previous year.

2. Machinery spares imported and consumed has been charged to Repairs to Machinery account.

3. Contingent Liabilities:

ii. On account of Capital Contracts to be executed Rs. 158.52 Lakhs

iii. The Income Tax Department has raised demand for Rs.4,32,198/- for the Assessment year 2007-08 and penalty of Rs.4,03,920/- for the Assessment year 2007-08. For the Assessment year 2008-09 the Department has a raised a demand for Rs.68,48,860/-. For the Assessment year 2009-10 the Department ; has raised a demand of Rs. 20,65,720/-. The Company has gone on appeal in respect of the above demands. No Provision has been made in the books of accounts as the Company is confident of getting a favorable verdict in its favour.

iv. The Cental Excise Department has adjusted a sum of Rs.8,07,267/- from the rebate claimed towards penalty I for alleged wrong availment of Cenvat credit, after our appeal before the Commissioner Appeals ; Coimbatore was rejected. The Company has disputed this and has preferred an appeal before the Central , Excise Tribunal at Chennai.

4. The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

5. Related party disclosures:

A. Names of the related parties and Descriptions of relationship

1. Key management personnel Mr. N. Krishna Samaraj, Managing Director

2. Relatives of Key Management personnel Smt. N.Muthulakshmi - Mother

3. Other related parties 1. Samrajyaa and company

2. Magna Digitech India Pvt. Ltd.

3. Elgi Equipments Ltd.

4. Ranba Castings Ltd.

6. The Company as not entered into any foreign exchange derivative transactions.

7. Figures for the previous year have been reclassified / regrouped wherever necessary.

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Mar 31, 2012

1.1 Corporate Information:

Magna Electro Castings Limited is a Public Limtied Company domiciled in India and incoporated under the provisions of the Companies Act, 1956. The equity shares of theCompnay are listed on the BSE and Coimbatore (no longer functional) stock exchanges. The Company is engaged in the manufacture and selling of ductile , grey and SiMo castings in the weight range of 800 grams to 500 kgs per piece. The Company also supplies machined castings. The Company caters to both the domestic as well as the export markets.

1.2 Basis of preparation

The financial statements of the Company have been prepared under the historical cost convention and on mercantile basis as a going concern in accordance with the applicable accounting standards notified under the Companies (Accounting Standards) and the relevant provisions of the Companies Act,1956.

The accounting policies adopted in the preparation of the financial statements are consistent with the those of the previous year.

2. Contingent Liabilities :

i. Bills Discounted and outstanding as on 31.03.2012 amounts to Rs.8,90,49,698/- (Prev. year Rs.6,59,39,465/-)

ii. On account of Capital Contracts to be executed Rs.474 Lakhs

iii. The Income Tax Department has raised demand for Rs.4,32,198/- for the Assessment year 2007-08 and penalty of Rs.4,03,920/- for the Assessment year 2007-08. The Department has also raised a demand for Rs.20,65,720/- for the Assessment year 2008-09 and Rs.68,48,860/- for the Assessment year 2009-10.The Company has gone on appeal in respect of the above demands. No Provision has been made in the books of accounts, as the Company is confident of getting a favorable verdict in its favour.

iv. The Central Excise Department has raised a demand for Rs.4,03,633/- towards penalty for alleged wrong availment of Cenvat Credit. The Company has gone on appeal disputing the claim of the department. No provision has been made in the books of accounts.

3. The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

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Mar 31, 2010

1. Interest payments includes interest on Term loan from Bank Rs.65,03,663/- (Previous year Rs. 94,22,064/-)

2. Bills Discounted and outstanding as on 31.03.2010 amounts to Rs.5,88,20,784/- (Previous year Rs.4,98,31,895/-)

3.The Company has carried out an exercise to ascertain the impairment, if any, in the carrying values of its fixed assets. This has not revealed any impairment during the year.

4. Related party disclosures:

A. Names of the related parties and Descriptions of relationship

1. Key management personnel Mr.N. Krishna Samaraj, Managing Director

2. Relatives of Key Management personnel Mrs.N.Muthulakshmi - Mother

3. Other related parties 1. Samrajyaa and company

2. Elgi Electric and Industries Ltd

3. Elgi Equipments Ltd.

5. The Company has not entered into any foreign exchange derivative transactions.

6. The Company has not opted to exercise the option in terms of notification dt.31.03.2009 issued by the Ministry of Corporate Affairs in respect of the amendment in AS 11 and is following a consistent policy in this regard.

7. Figures for the previous year have been reclassified/regrouped wherever necessary.