Notes to Accounts of Mahamaya Steel Industries Ltd.

Mar 31, 2025

i) Provisions, Contingent Liabilities and Contingent Assets and Commitments

i) Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event, it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation. Such provisions
are determined based on management estimate of the amount required to settle the obligation at the
balance sheet date. When the Company expects some or all of a provision to be reimbursed, the
reimbursement is recognised as a standalone asset only when the reimbursement is virtually certain.

ii) If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate
that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase
in the provision due to the passage of time is recognised as a finance cost.

iii) Contingent liabilities are disclosed on the basis of judgment of management. These are reviewed at each
balance sheet date are adjusted to reflect the current management estimate.

iv) Contingent assets are not recognized but are disclosed in the financial statements when inflow of
economic benefits is probable.

h) Income Taxes

The tax expense for the period comprises current and deferred tax. Tax is recognised in Statement of Profit

and Loss, except to the extent that it relates to items recognised in the other comprehensive income or in

equity. In which case, the tax is also recognised in other comprehensive income or equity.

i) Current tax

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to
the taxation authorities, based on tax rates and laws that are enacted or substantively enacted at the
Balance sheet date.

ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable
profit.

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

i) Foreign Currency Transactions

i) Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date of
transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the
functional currency closing rates of exchange at the reporting date.

ii) Exchange differences arising on settlement or translation of monetary items are recognised in Statement
of Profit and Loss except to the extent of exchange differences which are regarded as an adjustment to
interest costs on foreign currency borrowings that are directly attributable to the acquisition or
construction of qualifying assets, are capitalized as cost of assets.

iii) Non-monetary items that are measured in terms of historical cost in a foreign currency are recorded
using the exchange rates at the date of the transaction. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value was measured.
The gain or loss arising on translation of non-monetary items measured at fair value is treated in line
with the recognition of the gain or loss on the change in fair value of the item (i.e., translation differences
on items whose fair value gain or loss is recognised in OCI or Statement of Profit and Loss are also
recognised in OCI or Statement of Profit and Loss, respectively).

j) Employee Benefits Expense
Short Term Employee Benefits

The undiscounted amount of short term employee benefits expected to he paid in exchange for the services
rendered by employees are recognised as an expense during the period when the employees render the
services.

Post-Employment Benefits

Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified
contributions to a separate entity. The Company makes specified monthly contributions towards Provident
Fund, Superannuation Fund and Pension Scheme. The Company’s contribution is recognised as an expense
in the Statement of Profit and Loss during the period in which the employee renders the related service.

Defined Benefits Plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such
obligation are determined using actuarial valuations. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These include the determination of the
discount rate, future salary increases, mortality rates and future pension increases. Due to the complexities
involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date.

The Company pays gratuity to the employees whoever has completed five years of service with the Company
at the time of resignation/superannuation. The gratuity is paid @15 days salary for every completed year of
service as per the Payment of Gratuity Act 1972.

The liability in respect of gratuity and other post-employment benefits is calculated using the Projected Unit
Credit Method and spread over the period during which the benefit is expected to be derived from employees’
services.

Re-measurement of defined benefit plans in respect of post- employment are charged to the Other
r.nmnrplipnsivp Tnmmp

Employee Separation Costs

Compensation to employees who have opted for retirement under the voluntary retirement scheme of the
Company is payable in the year of exercise of option by the employee. The Company recognises the employee
separation cost when the scheme is announced and the Company is demonstrably committed to it.

k) Revenue recognition

Revenue from sale of goods is recognised when the significant risks and rewards of ownership have been
transferred to the buyer, recovery of the consideration is probable, the associated cost can be estimated
reliably, there is no continuing effective control or managerial involvement with the goods, and the amount of
revenue can be measured reliably.

Revenue from rendering of services is recognised when the performance of agreed contractual task has been
completed.

Revenue from sale of goods is measured at the fair value of the consideration received or receivable, taking
into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the
government.

Revenue from operations includes sale of goods, services, and adjusted for discounts (net), and gain/ loss on
corresponding hedge contracts.

Interest income

Interest income from a financial asset is recognised using effective interest rate (EIR) method.

Dividends

Revenue is recognised when the Company’s right to receive the payment has been established, which is
generally when shareholders approve the dividend.

l) Insurance Claims

Insurance claims are accounted for on the basis of claims admitted/ expected to be admitted to the extent
that there is no uncertainty in receiving the claims.

m) Financial Intruments

i) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are
directly attributable to the acquisition or issue of financial assets and financial liabilities, which are
not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase
and sale of financial assets are recognised using trade date accounting.

B Subsequent measurement

Financial assets carried at amortised cost

A financial asset is measured at amortised cost if it is held within a business model whose objective is
to hold the asset 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.

Financial assets at fair value through other comprehensive income (FVTOCI1

A financial asset is measured at FVTOCI if it is held within a business model whose objective is
achieved hy 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.

Financial assets at fair value through profit or loss (FVTPLI

A financial asset not classified as either amortised cost or FVOCI, is classified as FVTPL.

C Investment in subsidiaries, Associates and Joint Ventures

The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.
On the date of transition, the fair value has been considered as deemed cost.

Investment in Equity shares & Mutual Funds etc., are classified at fair value through the profit and
loss account.

D Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of
Profit and Loss, except for those equity investments for which the Company has elected to present the
value changes in ‘Other Comprehensive Income’.

E Impairment of financial assets

In accordance with Ind AS 109, the Company uses Expected Credit Loss’ (ECL) model, for evaluating
impairment of financial assets other than those measured at fair value through profit and loss
(FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

• The 12-months expected credit losses (expected credit losses that result from those default events on
the financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument)

For trade receivables Company applies ‘simplified approach’ which requires expected lifetime losses to
be recognised from initial recognition of the receivables. The Company uses historical default rates to
determine impairment loss on the portfolio of trade receivables. At every reporting date these historical
default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no
significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

ii) Financial Liabilities

A Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost.
Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and
other payables maturing within one year from the balance sheet date, the carrying amounts
approximate fair value due to the short maturity of these instruments.

Derivative financial instruments and Hedge Accounting

The Company uses various derivative financial instruments such as interest rate swaps, currency swaps,
forwards & options and commodity contracts to mitigate the risk of changes in interest rates, exchange rates
and commodity prices. Such derivative financial instruments are initially recognised at fair value on the date on
which a derivative contract is entered into and are also subsequently measured at fair value. Derivatives are
carried as financial assets when the fair value is positive and as financial liabilities when the fair value is
negative.

Any gains or losses arising from changes in the fair value of derivatives are taken directly to Statement of Profit
and Loss, except for the effective portion of cash flow hedges which is recognised in Other Comprehensive
Income and later to Statement of Profit and Loss when the hedged item affects profit or loss or treated as basis
adjustment if a hedged forecast transaction subsequently results in the recognition of a non-financial assets or
non-financial liability.

Hedges that meet the criteria for hedge accounting are accounted for as follows:

a) Cash flow hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of movement in interest rates and foreign exchange rates for foreign
exchange exposure on highly probable future cash flows attributable to a recognised asset or liability
or forecast cash transactions. When a derivative is designated as a cash flow hedging instrument, the
effective portion of changes in the fair value of the derivative is recognized in the cash flow hedging
reserve being part of other comprehensive income. Any ineffective portion of changes in the fair value
of the derivative is recognized immediately in the Statement of Profit and Loss. If the hedging
relationship no longer meets the criteria for hedge accounting, then hedge accounting is discontinued
prospectively. If the hedging instrument expires or is sold, terminated or exercised, the cumulative
gain or loss on the hedging instrument recognized in cash flow hedging reserve till the period the
hedge was effective remains in cash flow hedging reserve until the underlying transaction occurs. The
cumulative gain or loss previously recognized in the cash flow hedging reserve is transferred to the
Statement of Profit and Loss upon the occurrence of the underlying transaction. If the forecasted
transaction is no longer expected to occur, then the amount accumulated in cash flow hedging reserve
is reclassified in the Statement of Profit and Loss.

b) Fair Value Hedge

The Company designates derivative contracts or non derivative financial assets / liabilities as hedging
instruments to mitigate the risk of change in fair value of hedged item due to movement in interest
rates, foreign exchange rates and commodity prices.

Changes in the fair value of hedging instruments and hedged items that are designated and qualify as
fair value hedges are recorded in the Statement of Profit and Loss. If the hedging relationship no
longer meets the criteria for hedge accounting, the adjustment to the carrying amount of a hedged
item for which the effective interest method is used is amortised to Statement of Profit and Loss over
the period of maturity.

Derecognition of financial instruments

The Company derecognizes a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset and the transfer qualifies for derecognition
under Ind AS 109. A financial liability (or a part of a financial liability) is derecognized from the
Company''s Balance Sheet when the obligation specified in the contract is discharged or cancelled or
expires.

n) Operating Cycle

The Company presents assets and liabilities in the balance sheet based on current / non-current
classification based on operating cycle.

An asset is treated as current when it is:

a. Expected to be realized or intended to be sold or consumed in normal operating cycle;

b. Held primarily for the purpose of trading;

c. Expected to be realized within twelve months after the reporting period, or

d. Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least
twelve months after the reporting period

All other assets are classified as non-current.

A liability is current when:

a. It is expected to be settled in normal operating cycle;

b. It is held primarily for the purpose of trading;

c. It is due to be settled within twelve months after the reporting period, or

d. There is no unconditional right to defer the settlement of the liability for at least twelve months after the
reporting period

All other liabilities are classified as non-current.

Deferred tax assets and liabilities are classified as non-current assets and liabilities.

The comoanv has identified twelve months as its ooeratiner cvcle.

o) Earnings Per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by weighted average number of equity shares outstanding during the period. The weighted
average number of equity shares outstanding during the period are adjusted for events of bonus issue; bonus
element in a right issue to existing shareholders.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to
equity shareholders and the weighted average number of shares outstanding during the year are adjusted for
the effects of all dilutive potential equity shares.

p) Dividend Distribution

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

q) Statement of Cash Flows

i) Cash and Cash equivalents

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash
on hand, other short-term, highly liquid investments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of
changes in value.

ii) Statement of Cash Flows is prepared in accordance with the Indirect Method prescribed in the relevant
Accounting Standard.

2.3 CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements in conformity with the Ind AS requires management to make
judgments .estimates and assumptions that affect the application of accounting policies and the reported
amounts of assets, liabilities and disclosures as at date of the financial statements and the reported amounts of
the revenues and expenses for the years presented. The estimates and associated assumptions are based on
historical experience and other factors that are considered to be relevant. Actual results may differ from these
estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is
revised if the revision affects only that period or in the period of the revision and future periods if the revision
affects both current and future periods.

a) Depreciation / amortisation and useful lives of property plant and equipment / intangible assets

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful
lives, after taking into account estimated residual value. Management reviews the estimated useful lives and
residual values of the assets annually in order to determine the amount of depreciation / amortisation to be
recorded during any reporting period. The useful lives and residual values are based on the Company’s
historical experience with similar assets and take into account anticipated technological changes. The
depreciation / amortisation for future periods is revised if there are significant changes from previous
estimates.

b) Recoverability of trade receivable

Judgements are required in assessing the recoverability of overdue trade receivables and determining
whether a provision against those receivables is required. Factors considered include the credit rating of the
counterparty, the amount and timing of anticipated future payments and any possible actions that can be
taken to mitigate the risk of non-payment.

c) Provisions

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future
outflow of funds resulting from past operations or events and the amount of cash outflow can be reliably
estimated. The timing of recognition and quantification of the liability requires the application of judgment to
existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and
liabilities are reviewed regularly and revised to take account of changing facts and circumstances.

d) Impairment of non-flnancial assets

The Company assesses at each reporting date whether there is an indication that an asset may be
impaired. If any indication exists, the Company estimates the asset’s recoverable amount. An asset’s
recoverable amount is the higher of an asset’s or Cash Generating Units (CGU’s) fair value less costs of
disposal and its value in use. It is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or a groups of assets. Where the carrying
amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written
down to its recoverable amount.

In assessing value in use, the estimated future cash flows are discounted to their present value using
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset. In determining fair value less costs of disposal, recent market transactions are taken
into account, if no such transactions can be identified, an appropriate valuation model is used.

e) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected
cash loss rates. The Company uses judgment in making these assumptions and selecting the inputs to the
impairment calculation, based on Company’s past history, existing market conditions as well as forward
lookincr estimates at the end of each renortincr neriod c r-

As per our attached Report of even date For and on behalf of the Board

For, K P R K & ASSOCIATES LLP

Chartered Accountants

Finn Registration No. 103051W / W100965

CA. Swapnil M. Agrawal Rajesh Agrawal RekhaAgrawal

Partner Managing Director Director

Membership No. 121269 DIN: 00806417 DIN: 00597156

Date: 27.05.2025 Jaswinder Kaur Mission Suresh Raman

Place: Raipur Company Secretary Director & CFO

FCS 7489 DIN: 07562480

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Mar 31, 2024

(b) Equity Component of C ompound Financial Instrumenb-_

The Company had issued non Convertible Redeemable Preference Shares (NCRPS)-Considering the accounting principles to be followed in the line with Indian Accounting Standards, the company has computed the liability portion of NCRPS as a present value of the contiactuial obligations associated with instrument The difference between the issue amount of the NCRPS and the liability so computed has been treated as the ’Equity component of compound financial Instruments'' and grouped under the Equity''. During the year company has also redeemed NCRPS The details of NCRPS issued, subscribed, redemmed, and closing balance are given below-

15b Nature of Security :

j) Term Loan arc secured by a iirsi pan passu charge over immovable and movable assets ot the company. both present jnd future.

b) Vehicle loans Iixmii banks and financial institution are secured by hypothecation and mortgage of specific assets from various banks and Financial Institutions.

c) The cadi credit facilities and Letter of Credit trom Hanks are secured bv first pan passu charge over entire current assets Le. stocks of raw materials, finished goods, stock in process, stores £ consumables, trade receivables of the Company and second charge over the other movable assets and immovable assets of the Company.

15t Personal guarantee of directors. (1) Mr. Rajesh AgraWal (n> Mrs. Rekha Agrawal Gurantee of Relative of the Directors. (1) Mr. Kamanand Agrawal

15d a) There is no default, continuing or otherwise, as at the PalanceSheet Date, in re payment of principal as well as interest ot any of the above loan, b) Current maturities of long terms debts disc lose under the sub-head “Borrowings" of head “current liabilities".

31 a CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

As per section 135 of the Companies Act 2013 and rules therein, the company is required to spend at least 2% of average net profit of past three years towards Corporate Social Rcsponsibilitv (CSR).

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Mar 31, 2023

(a) Equity Component of Compound Financial Instruments-_

The Company had issued non-Convertible Redeemable Preference Shares (NCRPS).Considering the accounting principles to be followed in the line with Indian Accounting Standards, the company has computed the liability portion of NCRPS as a present value of the contractural obligations associated with instrument. The difference between the issue amount of the NCRPS and the liability so computed has been treated as the ''Equity component of compound financial instruments'' and grouped under the Equity. During the year company has also redeemed NCRPS. The details of NCRPS issued, subscribed, redemmed, and closing balance are given below-

15b Nature of Security :

a) Term Loan are secured by a first pari passu charge over immovable and movable assets of the company, both present and future.

b) Vehide loans from banks and financial institution are secured by hypothecation and mortgage of specific assets from various banks and Financial Institutions.

c) The cash credit facilities and Letter of Credit from Banks are secured by first pari passu charge over entire current assets i.e. stocks of raw materials, finished goods, stock in process, stores & consumables, trade receivables of the Company and second charge over the other movable assets and immovable assets of the Company.

15c Personal guarantee of directors, (i) Mr. Rajesh Agrawal (ii) Mrs. Rekha Agrawal Gurantee of Relative of the Directors : (i) Mr. Ramanand Agrawal

15d a) There is no default continuing or otherwise, as at the Balance Sheet Date, in re-payment of principal as well as interest of any of the above loan, b) Current maturities of long terms debts disclose under the sub-head "Borrowings" of head "current liabilities".

Since the entire amount of plan obligation is unfunded, therefore change in fair value of plan assets are not given. Further the entire amount of plan obligation is unfunded, therefore categones of plan assets as a percentage of the fair value of the total plan assets and company''s expected contribution to the plan assets in the next year is not given.

The estimates of rate of escalation in salary considered in actuanal valuation, take into account inflations, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary increase and employment turnover. Hie sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. Tire result of sensitivity analysis is given below:

38	CONTINGENT LIABILITIES	( Rs In Lakhs Except Per Share Data)
	Particulars	As at 31st March 2023	As at 31st March 2022
	Income Tax Demand	134243	1123.18
	Excise duty Liability under appeal & adjudication	30.00	30.00
	Outstanding Bank Guarantees	8468	133.08

39 CAPITAL MANAGEMENT

Tire Company adheres to a robust Capital Management framework which is underpinned by tire following guiding principles;

a) Maintain financial strength to attain AAA ratings domestically and investment grade ratings internationally.

b) Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment requirements.

c) Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.

d) Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance This framer cork is adjusted based on underlying macro-economic factors affecting business environment, financial market

Foreign Currency Risk:

No Exposure to foreign currency

Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs.

The company''s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully caliberates the timing and the quantity of Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers.

The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The credit ratings/market standing of the customers are evaluated on a regular basis.

2 Guarantee Given - - - -

41 EVENTS AFTER THE REPORTING PERIOD

No events after the reporting period

42 APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the board of directors on 29.05.2023

43 OTHERS NOTES

(A) Electricity Duty exemption:

In tire Financial year 2012-13 tire company had applied for exemption of electricity duty in respect of electricity consumed in its SMS Plant. The company had been advised that under the Internal Policy of State of Chhattisgarh, it is entitled to get electricity duty exemption of an amount aggregating Rs. 1105.69 lacs. This amount pertains to accounting year 2011-1Z 2012-13, 2013-14, 201415, 2015-16, 2016-17, 2017-18 and 2018-19. The management is of tire opinion that tire same amount would be realized in the near future.

(B) Parties'' accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable, will be provided as and when confirmed.

(Q Trade Receivables, Loans & Advances and Deposits include certain over due accounts. Balances in tire accounts of certain debtors, loans and advances required to be confirmed / reconciled. However, in tire opinion of tire Board, all current assets, loans and advances would be realized in ordinary course of tire business at tire value as stated.

(D) In tire opinion of tire Board, tire provision for depreciation and all known liabilities is adequate and not in excess of tire amount reasonably necessary.

(E) Tire information required to be disclosed under the hlicro, Small and Medium Enterprises Development Act, 2006 Iras been determined to tire extent such parties have been identified on tire basis of information available with tire Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made

(F) Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, tire amount and other disclosures for preceding year are included as air integral part of current year''s financial statement and are to be read in relation to tire amount and other disclosures relating to current year. Tire figures in financial statements are rounded off to the nearest lacs rupees.

(G) Separate segment wise reporting is not called for in view of tire fact that mostly tire revenue of tire Company is from structural manufacturing and all business activities are in India only. Tire operations of Gas Plant of company are mainly for captive use and tire surplus have been sold to external parties amount of Rs. 119.27 lakhs; tire same is not fulfilling tire criteria of (Iird-AS 108 (Segment Reporting)) separate reportable segment.

(H) Tire management Iras reviewed tire impairment position of tire assets disclosed in tire financial statement for tire year; and there is no indication of impairment (Assets carry cost is less than tire recoverable value) loss for tire year.

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Mar 31, 2018

1. CORPORATE INFORMATION

Mahamaya Steel Industry a major industry in the group is a 15 years young company, manufacturing steel structures in the shape of Angles, Beams, Joist, Channels, Rounds, Flats, Railway sleepers etc. It has high capacity structural rolling mills with full fledged supportive SMS. Mahamaya has many prestigious customers ranging from BHEL, BHPV, MAHAGENCO, CSPDCL, TNEB, GETCO, MSPDCL, MPPDCL, ONGC, RAILWAYS, RELIANCE, JINDAL etc. It is also conversion agent of SAIL, JINDAL. Mahamaya is one of the few in the country who manufactures 600 MM joist and 250 MM angles. Mahamaya has kept pace with modern time, by continuously modernizing its plant and equipment so that its product confires to specification as required by different customers. The product are inspected by world renowned inspection agencies like -BIS,TUV,DNV,BUREAU VARITAS, SGS, LLOYDS, ABS, RDSO etc. The company is a public limited company incorporated and domiciled in India and has its registered office at Raipur, Chhattisgarh. The company is listed its shares on Bombay Stock Exchange Ltd (BSE) & National Stock Exchange (NSE).

1 Other Non Current Assets, under the previous GAAP includes Security deposits and Electricity duty receivable which have been classified as financial assets-Loans and Other Financial assets respectively under the Ind AS.

2 Other Current Assets, under the previous GAAP includes Other receivable from employee and Interest accrued but not due which have been classified as Other Financial assets under the Ind AS.

3 Other Current Liabilities under the previous GAAP includes Current Maturities of Long Term Debts which have been classified as Other Financial Liabilities under the IndAS.

4 Under the IndAS, Provision for Tax/Advance Tax has been shown as Current Tax Assets/Current Tax Liabilities(Net). Under the previous GAAP, Provision for Tax and Advance Tax was shown under Other Current Liabilities and Other Current Assets respectively.

Reconciliation Notes explaining IndAS Adjustments

1 As per Ind-AS 32, a preference share that provides for mandatory redemption by the issuer for a fixed or determinable amount at a fixed or determinable future date, or gives the holder the right to require the issuer to redeem the instrument at or after a particular date fora fixed or determinable amount, is a financial liability. Such financial liability being compound financial instrument is classified into debt and equity component. Consequently, there is an impact on the Share Capital, Other Equity and Long Term Borrowings.

2 The transaction costs paid for the term loan borrowed have been amortised over the period of the loans, as the loans are required to be carried at amortized cost as per IndAS 109 "Financial Instruments". Also,borrowings include preference shares identified into debt components as per Ind-AS 109. Consequently, the Borrowings have increased by Rs. 2670.76 lakhs and Rs. 2825.58 lakhs as at 1st April 2016 and 31st March 2017 respectively.

3 Under the IndAS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Liabilities (Net) have been increased by Rs. 223.75 lakhs and Rs. 198.67 lakhs as at 1st April 2016 and 31st March 2017 respectively.

4 As per IndAS 8 "Accounting Policies, Changes in Accounting Estimates and Errors", an entity shall correct material prior period errors retrospectively in the first set of financial statements approved for issue after their discovery by restating the comparative amounts for the prior period(s) presented in which the error occurred or if the error occurred before the earliest prior period presented, restating the opening balances of assets, liabilities and equity for the earliest prior period presented. Accordingly, a prior period expense relating to period before FY 2016-17 has been restated in the Opening Balance Sheet as on 1st April 2016 Consequently, the Non Current Provisions increased and Other Equity decreased by Rs. 17.70 lakhs as on 1 st April 2016.

Reconciliation Notes explaining Ind AS Adjustments

1 In accordance with Ind AS 18 "Revenue", Revenue from Operations includes Excise Duty. Excise Duty has been presented separately as expenditure.

2 In accordance with Ind AS 19 "Employee Benefits", Acturial gains/losses on Remeasurement of Defined Benefit Plans have been classified under "Other Comprehensive Income". Accordingly, the Employee Benefit Expenses have increased by Rs. 22.41 lakhs. There is no impact on the Total Comprehensive Income.

3 The transaction costs paid for the term loans borrowed have been amortised over the period of the loans, as the loans are required to be carried at amortized cost as per Ind AS 109 "Financial Instruments". Also, finance cost includes interest charged on debt component of preference shares. Consequently, the Finance Costs for the year ended 31st March 2017 have been increased by Rs. 154.82 lakhs.

4 Under the Ind AS, significant components of plant and equipment which have different useful life are depreciated based on their specific useful lives. Consequently, the amount of Depreciation charge for the year ended 31st March 2017 has reduced by Rs. 55.80 lakhs.

5 The Electricity Duty Receivable of Rs 71.40 lakhs was deducted from Electricity expenses in the Statement of Profit and Loss for the year ended 31st March 2017. Under Ind AS it has been reclassified as Other Income. Accordingly, Other Income and Other Expenses have increased by Rs. 71.40 lakhs.

6 Under the Ind AS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Expenses for the year ended 31st March 2017 are lower by Rs. 25.08 lakhs.

18 (b) Nature of Security :

a) For Term Loan from Bank securities are new plant and machinaries inastalled or to be installed.

b) For LC/BG accounts securities are exclusive first charge by way of hypothecation of the companies entire stocks of raw materials and finished goods purchase out of lC and on all other companies present and future book debt outstanding, receivable claims, bills, contracts, securities, inverstments, goodwill, rights and assets etc. a raising out of the LC issued by bank.

c) In the case of Cash credit limit security in the form of (i) 1st pari- passu charge on all the current assets of the company . (ii) and collateral security in the form of 1st pari-passu charge on the residual value of movable and immovable fixed assets of the company.

18 (c) Personal guarantee of directors, (i) Mr. Rajesh Agrawal (ii) Mrs. Rekha Agrawal antee of Relative of the Directors : (i) Mr. Ramanand Agrawal

18 (d) a) There is no default, continuing or otherwise, as at the Balance Sheet Date, in re-payment of principal as well as interest of any of the above loan.

b) Current maturities of loan terms debts disclose under the sub-head "other financial liabilities" of head "current liabilities".

Since the entire amount of plan obligation is unfunded, therefore change in fair value of plan assets are not given. Further the entire amount of plan obligation is unfunded, therefore categories of plan assets as a percentage of the fair value of the total plan assets and company''s expected contribution to the plan assets in the next year is not given.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflations, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

Sensitivity Analysis

Significant Actuarial Assumptions for the determination of the defined benefit obligation are discount trade, expected salary increase and employment turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis is given below:

2. CAPITAL MANAGEMENT

The Company adheres to a robust Capital Management framework which is underpinned by the following guiding principles.

a) Maintain financial strength to attain AAA ratings domestically and investment grade ratings internationally.

b) Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment requirements.

c) Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.

d) Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance sheet.

This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and interest rates environment.

3. FINANCIAL INSTRUMENTS

All financial instruments are initially recognized and subsequently re-measured at fair value as described below:

Fair Value measurement hierarchy:

Foreign Currency Risk:

No Exposure to foreign currency

Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management frame work aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs.

The company''s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully caliberates the timing and the quantity of purchase

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers.

The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The credit ratings/market standing of the customers are evaluated on a regular basis.

Liquidity Risk

Liquidity risk arises from the Company''s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities . The Company maintains adequate cash and cash equivalents along with the need based credit limits to meet the liquidity needs.

4. EVENTS AFTER THE REPORTING PERIOD

No events after the reporting period

5. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the board of directors on May 28, 2018.

6. OTHER NOTES

(A) Electricity Duty exemption:

In the Financial year 2012-13 the company had applied for exemption of electricity duty in respect of electricity consumed in its SMS Plant. The company had been advised that under the Internal Policy of State of Chhattisgarh, it is entitled to get electricity duty exemption of an amount aggregating Rs.998.74 lacs. Out of this amount, an amount of Rs.45.08 lacs pertains to accounting year under review i.e. 2017-18 and the remaining amount i.e. Rs.953.66 lacs pertains to accounting year 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17. The management is of the opinion that the same amount would be realized in the near future.

(B) During the year under review, the company has charged interest on outstanding, where the payment was in arrears. The combined effect of interest so applied to the accounts of various Debtors is Rs. 101.57 lacs, recognized as amount due for a period less than 6 months as the recording of this interest has been done during the year. out of the above amount Rs.100.16 lacs recognized by the company from its customer against which they have got of court decree.

(C) Parties'' accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable, will be provided as and when confirmed.

D) Trade Receivables, Loans & Advances and Deposits include certain over due accounts. Balances in the accounts of certain debtors, loans and advances required to be confirmed / reconciled. However, in the opinion of the Board, all current assets, loans and advances would be realized in ordinary course of the business at the value as stated.

(E) In the opinion of the Board, the provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

(F) The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

(G) Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures for preceding year are included as an integral part of current year''s financial statement and are to be read in relation t o the amount and other disclosures relating to current year. The figures in financial statements are rounded off to the nearest lacs rupees.

(H) Separate segment wise reporting is not called for in view of the fact that mostly the revenue of the Company is from structural manufacturing and all business activities are in India only. The operations of Gas Plant of company are mainly for captive use and the surplus have been sold to external parties amount of Rs. 147.72 lakhs; the same is not fulfilling the criteria of (Ind-AS 108 (Segment Reporting)) separate reportable segment.

(I) The management has reviewed the impairment position of the assets disclosed in the financial statement for the year; and there is no indication of impairment (Assets carry cost is less than the recoverable value) loss for the year.

(J) Unclaimed dividend of earlier years aggregating to Rs 1.99 lakhs which was deposited in separate bank account in last year has been transferred to IEPF.

(M) The figures in the financial statement have been rounded off to nearest Lakhs Rupees.

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Mar 31, 2016

NOTE 1 - EMPLOYEE BENEFITS

Defined Benefit Plan :-Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service or part thereof in excess of 6 month and its payable on retirement / termination/ resignation. The benefit vests on the employees after completion of 5 Year of service. The gratuity liability has not been externally funded.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

NOTE 2 RELATED PARTY DISCLOSURES

Disclosure of transactions with related parties, as required by Accounting Standard - 18 "Related Party Disclosures" has been set-out in a separate statement annexed to this schedule. Related parties as defined under Clause 3 of the Accounting Standard have been identified on the basis of representations made by Key Managerial Personnel and information available with the Company.

NOTE 3 NOTES ON ACCOUNTS

(A) Electricity Duty exemption:

In the Financial year 2012-13 the company had applied for exemption of electricity duty in respect of electricity consumed in its sMs Plant. The company had been advised that under the Internal Policy of State of Chhattisgarh, it is entitled to get electricity duty exemption of an amount aggregating Rs.882.26 lacs. Out of this amount, an amount of Rs.104.96 lacs pertains to accounting year under review i.e. 2015-16 and the remaining amount i.e. Rs.777.31 lacs pertains to accounting year 2011-12, 2012-13, 2013-14 and 2014-15. The management is of the opinion that the same amount would be realized in the near future.

(B) The exact impact of the earlier fraud(F.Y -2012-13) committed by one of the employee of the company is Rs. 114.56 lacs. The company had filed a legal suit against the employee and the same is subject to judicial proceedings. Considering the favorable position in the case as consulted with the legal advisor in the case the management has not make any provision in the books of accounts.

(C) During the year under review, the company has charged interest on outstanding, where the payment was in arrears. The combined effect of interest so applied to the accounts of various Debtors is Rs. 3.14 lacs, recognized as amount due for a period less than 6 months as the recording of this interest has been done during the year.

(D) Parties'' accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable, will be provided as and when confirmed.

(E) Trade Receivables, Loans & Advances and Deposits include certain overdue accounts. Balances in the accounts of certain debtors, loans and advances required to be confirmed / reconciled. However, in the opinion of the Board, all current assets, loans and advances would be realized in ordinary course of the business at the value as stated.

(F) In the opinion of the Board, the provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

(G) The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

(H) Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures for preceding year are included as an integral part of current year''s financial statement and are to be read in relation to the amount and other disclosures relating to current year. The figures in financial statements are rounded off to the nearest lacs rupees.

(I) Separate segment wise reporting is not called for in view of the fact that mostly the revenue of the Company is from structural manufacturing and all business activities are in India only. The operations of Gas Plant of company are mainly for captive use and the surplus have been sold to external parties amount of Rs. 101.78 lakhs; the same is not fulfilling the criteria of (Para 27 of AS-17 (Segment Reporting)) separate reportable segment.

(J) The management has reviewed the impairment position of the assets disclosed in the financial statement for the year; and there is no indication of impairment (Assets carry cost is less than the recoverable value) loss for the year.

(K) Unclaimed dividend of earlier years aggregating to Rs 4.61 lakhs deposited in separate bank account, an amount of Rs.2.68 lakhs which is liable to transferred to Investor Education Protection Fund(IEPF) has been duly transferred during the year . Inclusion of the said amount does not have any impact on the profitability of the company.

(L) The figures in the financial statement have been rounded off to nearest Rupees.

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Mar 31, 2015

NOTE 1 : RELATED PARTY DISCLOSURES

Disclosure of transactions with related parties, as required by Accounting Standard - 18 "Related Party Disclosures" has been set-out in a separate statement annexed to this schedule. Related parties as defined under Clause 3 of the Accounting Standard have been identified on the basis of representations made by Key Managerial Personnel and information available with the Company.

(A) Electricity Duty exemption:

During the Financial year 2012-13 the company had applied for exemption from electricity duty in respect of electricity consumed in its SMS Plant. The company had been advised that under the Internal Policy of State of Chhattisgarh, it is entitled to get electricity duty exemption of an amount aggregating Rs. 777.31 lacs. Out of this amount, an amount of Rs. 221.62 lacs pertains to accounting year under review i.e. 2014-15 and the remaining amount i.e. Rs. 555.69 lacs pertains to accounting year 2011-12, 2012-13 and 2013-14. The management is of the opinion that the same amount would be realized in the near future.

(B) The exact impact of the earlier fraud(F.Y -2012-13) committed by one of the employee of the company is Rs 114.51 lacs. The company had filed a legal suit against the employee and the same is subject to judicial proceedings. Considering the favorable position in the case as consulted with the legal advisor in the case the management has not make any provision in the books of accounts.

(C) During the year under review, the company has charged interest on outstanding, where the payment was in arrears. The combined effect of interest so applied to the accounts of various Debtors is Rs. 31.23 lacs, recognized as amount due for a period less than 6 months as the recording of this interest has been done during the year.

(D) Parties' accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable, will be provided as and when confirmed.

(E) Trade Receivables, Loans & Advances and Deposits include certain over due accounts. Balances in the accounts of certain debtors, loans and advances required to be confirmed / reconciled. However, in the opinion of the Board, all current assets, loans and advances would be realized in ordinary course of the business at the value as stated.

(F) In the opinion of the Board, the provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

(G) The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

(H) Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures for preceding year are included as an integral part of current year's financial statement and are to be read in relation to the amount and other disclosures relating to current year. The figures in financial statements are rounded off to the nearest lacs rupees.

(I) Separate segment wise reporting is not called for in view of the fact that mostly the revenue of the Company is from structural manufacturing and all business activities are in India only. The operations of Gas Plant are mainly for captive use and the surplus have been sold to external parties amount of Rs. 75.93 lakhs; the same is not fulfilling the criteria of (Para 27 of AS-17 (Segment Reporting)) separate reportable segment.

(J) The management has reviewed the impairment position of the assets disclosed in the financial statement for the year; and there is no indication of impairment (Assets carry cost is less than the recoverable value) loss for the year.

(K) Unclaimed dividend of earlier years aggregating to Rs. 7.29 lakhs deposited in separate bank account, an amount of Rs. 1.69 lakhs which is liable to transfered to Investor Education Protection Fund(IEPF) has been duly transfered during the year . Inclusion of the said amount does not have any impact on the profitability of the company.

(L) The figures in the financial statement have been rounded off to nearest Rupees.

(M) During the year the company has adopted actuarial valuation for making provision for gratuity in respect of its liability towards employees retirement benefits.

(N) During the year the company has adopted actuarial valuation for making provision for gratuity in respect of its liability towards employees retirement benefits.

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Mar 31, 2014

1. CONINGENT LIABILITY As at 31st As at 31st Particulars March, 2014 March,2013 ( Rs in Lacs) ( Rs in Lacs)

Income Tax Demand* 2,132.04 134.70

Sales Tax Demands under apecaf 4. 98 4.98

Excise Duty liabilities under appeal & adjudlralloh; 219.73 168.86

Estimated amount of contracts remaing to be execued of capital etc. 10.06 93.97

Outstanding Bank Guarantees 202.67 136.02

2. During heyurufflfar leview. htoOire tit eyirtinwiitA wem conduded Fry Ihe firriuGiSl yrai ZM5-Q6 Ii>i011-12aiid IhA aMte denia/il o r! P.1 J? £M Iks fcr rh$ sad year; by I he Inwms Ten Pepertment nenren apcmlmn earned dlt by Ihc Income Tap: Dcpnrirrc/il. The ccmpnnr/ had fied an aapoo bcAarc Ihc Ccnvnisdicnar uf liicciha Tax (APiiealil- Raipur dunns Ilia year under review has been iiaoe in ihe books cFactiiura In res p dnrrairl rased agnlnsl 1he CDmanry ns Ihe ennyanny : hopnIU In- go: cerviDhile rtijed In Ihc aapcllnlc praueed nys Tiurufou. Iliedeinauil has radieu as uantirpeiiLliabilk

3. RELATED PARTY DlSOLOSURES

Dtiktosune of Inansactione wdth lilaled parlies, as required by Accounting 51arxlard -15 'Related Party Disclosures' has bfrsn eel-out n a separate itttenienl annexed to ttlb schedule. Related part be. as defined under Clause 3 of the Accounting Standard have been identified on 1he bas s of iep«s#nlalions made by Key Managerial Personnel and information available with the Company.

A) Name of the deleted parly and iialuxe or relationship where ooiiteol exists:

Nature of Relationship Name of Related Party

A. Associate Concems 1 Raipur Ferro Alloyd Limimited ( under merger with another Company)

2, Rajesh Rc-rollers Limited (under merger with another Company)

3. Devi iron and Power Private Limited

4. Mahamaya Charitable Fduhdaion

9 Key managerial persons 1, Shp Remangrte Agrar^gf

2. Shri Rajesh Agawal

C Relative of Key Mangerial Persons 1. Rajesh Agrawal HUP 2. Shri Aland Agrawal 3. Smt, Rekha Agrwel 4. Smt, Asha Dev Agrawafl

D. Enterpirse over which Key Management and their reoatives exercise significant influence with whom transaction have taken place durng the year

1. Ahhiyhrtk Steel Industries Limited 2. Shree Shyani Sponge power Limited 3. Antidksh Commerce Private Limited 4. CaJlidura Traders PrivateLimited 5. klaK Vision Mum Services Private Ltd 6. EscdiI Traders Private Limited 7. Adepl IT StilUtflhS ((P)Ltd) 8. Timpsii Steel Traders {Prep. Mahamaya Miires (P)Ltd) 9. JSR Networ Private Limited

4. Electricity Duly exemption:

During the Financial year 2C12-13 the company had applied for exemption from electricity duly ih rdSpcct Of electricity Consumed in its SMS Plant. The company had Dfrert athn-Stid lhal under the lndu$thal Policy of Slate af Chhatlisyam It is enmlert ra gel electricity duty exemption.The company has so far recorded 7 555.69 lacs tovrards electricity duty receivable. Out pf thlsemnum.an amounlof f 254.35 lacs pertains tn accouoimg year under rwiew i.o, 2013-14 and the remaining amount i.e, ?$01 ,34 lacs porlains to accounting year 2p11-til15&79 faesjand 3642-13(141,55 lacs) 6s In earlier years during the year uider review also entire amount of ¥ 254.36 lacs pertain ng to financial year 13-14 has been accounted forasredncliori from expenses

5. Fraud:

Afterend oftheiinancia1year20f2-13, the management had came to know that during 2£iOS to 2C13 one of the employee working in Accounts Department oF the Company, had committed fraud by fabricated tuns end Good Receipt Mote In respect of Stores aggregating Rs 114.51 tacs. The company has lodged first information report wilh Police Department. The company is hopeful for recovery of the amount. In vew of whucn the management has decided to treat this 114.51 : acs as amount reccve:able from the sa id person. C tiring the year under nev.ew the expenses so booked in earlier years have been reversed anc corresponding amount has been rdloclcd us receivables.

6. During the year under review, line company has changed interest on all culstand ng. where the payrncrit was hi arrears. The combined effect or interest se applied Lo ihe aceounls of various Debtors ist 62 33 lacs, recognised asamovntdue Fora ported less than 5 months as tlie recording of this interest has been done at the fag end of the year.

7. Parties' accounts are subject 10 confirmation Consequential effects adjustment, presently u nascertainahle, will he provided as a nd when crmfimied

8.) Trade Race vables, Loans £ Advances and Deposits include certain over due accounts. Balances. n the accounts at cerla' n debtors, loans and adva nces req uired to be con'inned reconciled. I lowevcr, In the opinion of the Board, all current assets, loans and advances would be realized in ordinary course of die business at the value as stated.

9. In me opinior of the Board, trie provision tor depreciation a nd all known liabil ties is adequate and nol in excess of the amount reasonably necessary

10. The- information required to bo disclosed under the Micro, Small and Medium Enterprises DevekipmentAct, 2006 h-itsbeeri determined to the extent such parties havebeer identified on the basis of Infann&tton (roaltabtownh the Company, There am no ever dues to parties on account of principal amount ar.dVor inierest and accordingly no acditional disclosures have been made.

11. Figures at Ihe previous year have been reworked, rearrangad.^egrouped and reclassified whoever considered necessary, Accordingly, the amount and other disclosures for preoed ng year are included as ail imegra' pari of current year's financia I slatament and are to be read in relation Ca tha amount and other disclosures relating ta current year. Tha Fgures in financial statomcnlsarc rounded offto the nearest lacs rupees,

12. Sepo rate segment wise repartiny is net coi ed for in view oi ihe fad that entire revenue of the Company is from s1rudu:al juianufactucng and a I business activities are in India only. The operations of Gas Plant and SMS are mainly for captive use barring insignificant gross T 1361.53lacs from sale of Blooms,' Billets to outsde pal es.

13. Unclaimed dividend of earlier years- agg regaling to 7 3.9$ lakhs rtepc-sded In separate ba nk account, has been accounted for in Hie books of account of Ihe ctjrre.nt year.. for befler understanding of financial statement. Inclusion nfthesaid amount does net have any impact on the prtffilabil ity of the company.

14. The figures in Ihe financia' statement haw beer rounded off to nca rest Rupees.

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Mar 31, 2013

NOTE : CONTING E NT LIABILITY

As at 31 As at 31 Particular March,2013 March, 2012 (? In Lacs) (Rs. In Lacs)

Income Tax Demand 134.70

Sales Tax Demands under appeal 4.98 4.98

Excise Duty liabilities under appeal &. adjudication 168.86 38.21

Estimated amount ol contracts remaining to be execued on capital ace. 93 97 21000

Oul sta ndi ng Ban k Guarantees 136.02 65.09

NOTE 1 DELATED PARTY DISCLOSURES

Disclosure of transactions with related parties, as required by Accounting Standard - IB "Related Parly Disclosures'' has been set-out in a separate statement annexed to tfiis schedule. Relaled parties as defined under Clause 3 ol trie Accounting Standard have been identified on the basis of representations made by

Key Managerial Personnel and inlormation available with the Company.

NOTE 2: NOTES ON ACCOUNTS

(A) Search operations by Exc ise Depa rtroe it:

During the financial year, on 13'''' July 2012, search operations were conducted by the Central Excise Department, excess inventory ol 994,06 MT of finished goods and 291.12 MT of raw material of do mbi ned value of 7 4&6 .69 lacs was noted. th e same has been duly accepted in Ihe books ol accou nls along with s hortage ol raw material ol SMS Division to Ihe tune ol 1590.000 MT,

(B) Electricity Duty exemption:

During the year under review the company has applied for exemption ''ram electricity duty in respect of electricity consumed in its S M S Plant. The company has advi sed that under the I nte mal Policy of State of Chhatti sgarh, it is entitled to g et electricity duty exemption of an amou nt agg legating * 301.34 lacs. Out of this amount, an amount of I 144.54 lacs pertains to accounting year under review i.e. 3013-13 and Ihe remaining amount i.e. ? 159.79 lacs pertains to accounting year 2011-12. During the year under review entire amount of ? 301.34 lacs has been accounted lor as income lor the year under review.

C) After end of the financial year, the management has came to know that one of the employee working in Accounts Department of the Company, has committed forgery by fabricated bills and Good Receipt Note in respect of Stores. The company broadly estimate the amount of this forgery to the tune of * 1.15 crones. The matter has already been given to Ihe Police Authorities and investigation is going on. The exact impact of this fraud committed by one of the employee ol the company will be fully known once the investigation are fully completed. In view of which the management has decided not to account for any i mpacl of this fraud on the financial state merits ol the company.

(D) During the year under review, the company has charged Interest on all oustandings, where the payment was in arrears The combined eflect of interest so applied to the accounts of various Debtors is 7 1.14 crores. recognized as amount due lor a period less than 6 months as the recording ol this interest has been done at the fag end ol the year

(E) Parties'' accounts are subject to confirmation. Consequential effects adjustment, presently unasce rtainable, will be provided as and when confirmed.

(F) Trade Receivables. Loans & Advances and Deposits include certain over due accounts. Balances in the accou nts of certain do blors, loans and advances required to be conf i rmad / reconciled. However, in the opi nion of the Board, all current assets, loans and advances would be realized in ordinary cou rse of the business at the value as stated.

(G) In Ihe opinion of the Board, the provision for depreciation and al I known liabilities is adeq uate and not in excess of the amount reasonably necessary.

(H) The information requi red to be di sc los&d under the M icro, Smai I and Medium Enterprise''s Development Act, 2006 has been determined to the extent such parties have been identiliad on the basis ot information available with the Company. There are no over dues to parties on account of principal amount and i or interest and accordingly no additional disclosures have been made.

(I) Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures lor preceding year are included as an integ ral pa rtol current yea rslmancial statement and a re to oe read in relation to the amount and other disclosures relating lo current year. The figures in financial statements are rounded off to the nearest lacs njpaes.

(J) Separate segment wise reporting is nol called for in view ol the fact that enti re revenue of the Company is from structural manufacturing and all business activities are in India only. The operations of Gas Plant and SMS are mainly for captive use barring insignificant gross 1265.49 lacs from sale of Blooms/ Billets to outside parties

(K) The figures in the financial statement have been rounded oft lo nearest Rupees.

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Mar 31, 2012

NOTE 1 CONTINGENT LIABILITY

As at As at Particulars 31st March, 2012 31st March, 2011 (Rs. In Lacs) (Rs. In Lacs)

Sales Tax Demands under appeal 4.98 38.27

Central Sales Tax Demands under appeal - 10.07

Excise Duty liabilities under appeal & adjudication 38.21 55.92

Est. amount of contracts repairing to be executed on cap acc 210.00 200.00

Corporate Guarantees given for advances of a body corporate 0.00 910.00

Outstanding Bank Guarantees 65.09 150.00

NOTE 2 RELATED PARTY DISCLOSURES

Disclosure of transactions with related parties, as required by Accounting Standard-18 'Related Party Disclosures" has been set-out In a separate statement annexed to this schedule. Related parties as defined under Clause 3 of the Accounting Standard have been identified on the basis of representations made by Key Managerial Personnel and information available with the Company.

(A) Income Tax Search:

During the financial year under review on 21/22.06.2011. Search operations were conducted by the Income Tax Department. During the course of which. documents pertaining to accounts and financial matters were seized in hard copy as well as softcopy. Verification and valuation of some inventory items was earned out by the Department, which concluded in arriving shortage of 267.290 MT of inventory i.e. Finished goods and Raw material. The company has not accepted the variation aforesaid and as such no effect in books of accounts has been given. During the course of search, an amount of Rs. 13.00 lacs was also seized by the Department. This has been offered for taxation by the Company by Incorporating it the regular books of accounts. The same has been treated as advance tax by the company.

(B) Excise Search:

During the financial year, on 13th March 2012. search operations were conducted by the Central Excise Department, shortage of 19.290 MT of finished goods and 162.578 MT of raw material of combined value of Rs.SS.32 lacs was noted.

Detailed explanations on the said variance were given by the Company to the Search team and applicable excise duty of Rs.5.69 lacs was paid under protest and variation has been duly accounted in books of accounts No show cause note has been served on the company in date and the Management is not expecting any other ability on this account, hence, no provision has been made

(C) On 13.07.2012, i.e. after the Balance sheet date. Excise Department conducted another search operations and concluded excess inventory of 1285.196 MT of finished goods and Raw material with a combined value of Rs 466.69 lacs. The management is of the view that variation posited out gets off set with inventory of Raw Material of its SMS Division which was not measured by the Excise Department.

(D) Parties' accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable. will be provided as and when confirmed.

(E) Trade Receivables. Loans & Advances and Deposits include certain overdue accounts. Balances in the accounts of certain debtors, loans and advances required to be confirmed / reconciled However m the option of the Board, all current assets, loans and advances would be reached ordinary course of the business at the value as stated.

(F) In the opinion of the Board, the provision for depreciation and a known laities is adequate and not in excess of the amount reasonably necessary

(G) The information required to be disclosed under the Micro. Small and Medium Enterprises Development Act. 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made

(H) Figures of the previous year have been reworked, rearranged, regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures for preceding year are mudded as an integral part of current year's financial statement and are to be read in relation to the amount and other disclosures retime to current year. The figures n financial statements are rounded off to the nearest lacs rupees.

(I) Separate segment wise reporting is not caked for m view of the fad that entire revenue of the Company is from structural manufacturing and all business activities are in India only. The operations of Gas Plant and SMS are mainly for captive use barring insignificant gross Rs. 555.12 lacs from sale of Blooms/ Billets to outside parties

(J) Unclaimed dividend of eater years aggregating to Rs. 9.01 lakhs deposited separate bank account, has been accounted for the books to account of the current year, for better understand of financial statement Inclusion of the said amount does not have any impact on the profitability of the company.

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Mar 31, 2011

1. CONTINGENT LIABILITIES:

SI. Particulars 31.3.2011 31.3.2010 No. (Rs. In lacs) (Rs. In lacs)

(i) Outstanding Bank guarantees 150.00 350.00

(ii) Sales Tax demand under appeal 38.27 38.27

(iii) Central Sales Tax demand under 10.07 10.07 appeal

(iv) Excise Duty liabilities under appeal 55.92 34.21

(v) Estimated amount of contracts 200.00 300.00 remaining to be executed on capital account (net of advances)

(vi)Entry tax not paid on account of 57.46 57.46 exemption from Govt, of Chhattisgarh. However certificate of exemption yet not received.

(vii)Corporate guarantee given for a loan 910.00 3025.00 of a body corporate

2. Parties' accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable, will be provided as and when confirmed.

3. Sundry Debtors, Loans & Advances and Deposits include certain over due accounts. Balances in the accounts of certain debtors, loans and advances required to be confirmed / reconciled. However, in the opinion of the Board, all current assets, loans and advances would be realized in ordinary course of the business at the value as stated.

4. In the opinion of the Board, the provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

5. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

6. Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures for preceding year are included as an integral part of current year's financial statement and are to be read in relation to the amount and other disclosures relating to current year. The figures in financial statements are rounded off to the nearest lacs rupees.

7. The turnover of the company, during the year includes 258.020 MT, of finished goods of Rs.92.20 lacs (excluding VAT) sent to the consignment agent in the fag end of March 2011 but remained unsold to the third party. The amount has been included in the turnover to reflect correct position as the arrangement with the consignment agent is such that the consignment goods sent on consignment, if remained unsold would get converted into sale to the agent itself after stipulated period. The company has received confirmation from its consignment agent that the entire stock has been subsequently sold by the agent in the month of April 2011. Had this been not done, the turnover and profit for the year would have been lower by Rs.92.20 lacs and Rs. 15.01 lacs respectively

8. (a) Imported Raw Material, Stores and spares consumed - Rs. 64.32 lacs (Rs. 21.46 lacs)

(b) FOB value of Exports to Nepal was Rs. 30.88 lacs in INR(including Excise Duty)- (Rs.151.03lacs)

(c) Expenditure in foreign currency- Rs. 64.32 lacs - (Rs. 21.46 Lacs)

(d) Earning in foreign currency-NIL- (NIL)

(e) Value of Imports calculated on CIF basis - Rs. 64.32 lacs - (Rs. 21.46 Lacs) (Bracket represent previous year)

9. Separate segment wise reporting is not called for in view of the fact that entire revenue of the Company is from structural manufacturing and all business activities are in Indiaonly.The operations of Gas Plant and SMS are mainly for captive use barring insignificant gross receipts of Rs. 43.76 lacs from sale of gas and Rs. 167.98 lacs from sale of Blooms/ Billets to outside parties.

10. Related party disclosure as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India:

A. List of Related Parties and Relationships:-

a) Associate concerns:

1. Raipur Ferro Alloys Limited (Under merger with another Company)

2. Rajesh Re-rollers Limited (Under merger with another Company)

3. Devi Iron and Power Pvt. Ltd.

4. Mahamaya Charitable Foundation

b) Key Management Personnel

1. Shri Ramanand Agrawal

2. Shri Rajesh Agrawal

3. Smt. GulabBai Agrawal

4. Shri D. K. Porwal

c) Relative of key management personnel

1. Rajesh Agrawal (HUF)

2. ShriAnandAgrawal

3. Ramanand Agrawal (HUF) 4 Smt. Asha Devi Agrawal

5. Smt. RekhaAgrawaL

d) Enterprises over which key Management Personnel and their relatives exercise significant influence with whom transactions have taken place during the year:

1. Abhishek Steel Industries Limited

2. ShreeShyam Sponge & Power Limited

3. Antriksh Commerce Pvt. Ltd.

4. Callidora Traders Private Limited

5. Mark Vision Multi Services Pvt. Ltd.

6. Escort Finvest Pvt. Ltd.

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Mar 31, 2010

1. CONTINGENT LIABILITIES:

Sl. Particulars 31.3.2010 31.3.2009

No (Rs. In lacs) (Rs. In lacs)

(I) Outstanding Bank guarantees 350.00 250.00

(ii) Sales Tax demand under appeal 38.27 58.40

(iii) Central Sales Tax demand under appeal 10.07 30.13

Excise Duty liabilities under appeal 34.21 26.92

(iv) Estimated amount of contracts remaining 300.00 400.00

To be executed on capital account ( net of advances)

(V) Entry tax not paid on account of exemption 57.46 57.46

from Govt, of Chhattisgarh. However certificate of exemption yet not received.

(vi) Corporate guarantee given for a loan of 3025.00 3025.00 a body corporate

2. Parties accounts are subject to confirmation. Consequential effects adjustment, presently unascertainable, will be provided as and when confirmed.

3. Sundry Debtors, Loans & Advances and Deposits include certain over due accounts. Balances in the accounts of certain debtors, loans and advances required to be confirmed / reconciled. However, in the opinion of the Board, all current assets, loans and advances would be realized in ordinary course of the business at the value as stated.

4. In the opinion of the Board, the provision for depreciation and all known liabilities is adequate and not in excess of the amount reasonably necessary.

5. The information required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. There are no over dues to parties on account of principal amount and / or interest and accordingly no additional disclosures have been made.

6. The breakup of Deferred Tax liabilities/(assets) at the year end in two major components of the respective balances are as follows:

7. Figures of the previous year have been reworked, rearranged/regrouped and reclassified wherever considered necessary. Accordingly, the amount and other disclosures for preceding year are included as an integral part of current years financial statement and are to be read in relation to the amount and other disclosures relating to current year. The figures in financial statements are rounded off to the nearest lacs rupees.

8 (a) Imported Raw Material, Stores and spares consumed Rs. 21.46 lacs (Rs. 91.06 lacs)

(b) FOB value of Exports to Nepal was Rs. 151.03 lacs in INR- (Rs. 117.83 lacs)

(c) Expenditure in foreign currency Rs. 21.46 lacs - (Rs. 80.05 Lacs)

(d) Earning in foreign currency NIL- (NIL)

(E) Value of Imports calculated on CIF basis Rs. 21.46 lacs - (Rs. 80.05 Lacs) (Bracket represent previous year)

9 Separate segment wise reporting is not called for in view of the fact that entire revenue of the Company is from structural manufacturing and all business activities are in India only. The operations of Gas Plant and SMS are mainly for captive use barring insignificant gross receipts of Rs. 53.90 lacs from sale of gas and Rs. 769.98 lacs from sale of Blooms/ Billets to outside parties.

10. Related party disclosure as required by Accounting Standard 18 issued by the Institute of Chartered Accountants of India:

A. List of Related Parties and Relationships:-

a) Associate concerns:

1. RaipurFerro Alloys Limited (Under merger with another Company)

2. Rajesh Re-rollers Limited (Under mergerwith another Company)

3. Devi Iron and Power Pvt. Ltd.

b) Key Management Personnel

1. ShriRamanandAgrawal

2. Shri Rajesh Agrawal

3. Smt. GulabBai Agrawal

4. Shri D. K. Porwal

5. Shri Neeraj Kansal

6. Shri Gitesh Agrawal

7. ShriSuryakantSharma (Resigned w.e.f. 30.01.2010)

8. Shri Anil Kumar Sharma (Resigned w.e.f. 30.01.2010)

c) Relative of key management personnel

1. Rajesh Agrawal (HUF)

2. Shri Anand Agrawal

3. Ramanand Agrawal (HUF)

4. Smt.AshaDeviAgrawal

5. Smt. Rekha Agrawal

d) Enterprises over which key Management Personnel and their relatives exercise significant influence with whom transactions have taken place during the year:

1. Abhishek Steel Industries Limited

2. Shree Shyam Sponge & Power Limited

3. Antriksh Commerce Pvt. Ltd.

4. Callidora Traders Private Limited

5. Mark Vision Multi Services Pvt. Ltd.

Note:

(1) It includes captive consumption of blooms of 101772.165 MT (P.Y. 50378.025 MT) and conversion material 43880.880 MT (P.Y. 32514.920 MT)

(2) It includes captive consumption of 5620.77 MT (P.Y. 7457.645) end cutting and scrap transferred from Rolling Mill.

* Amount does not include any notional value for stock transfer from SMS and of conversion stock.