Notes to Accounts of Manaksia Aluminium Company Ltd.

Mar 31, 2025

IX. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal
or constructive obligation as a result of past events and it is probable that there will be an outflow of resources
and a reliable estimate can be made of the amount of obligation. Provisions are not recognized for future
operating losses. The amount recognized as a provision is the best estimate of the consideration required to
settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties
surrounding the obligation.

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that
may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be
estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of
outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial
statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of
economic benefits will arise, the asset and related income are recognized in the period in which the change
occurs.

X. Foreign Currency Transactions & Translations

The functional currency of the Company is Indian Rupee. These Financial Statements are presented in
Indian Rupee (rounded off to the nearest Lacs).

Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing
on the date of the transaction. Gains & losses arising on account of realization are accounted for in the
Statement of Profit & Loss. Monetary Assets & Liabilities in foreign currency that are outstanding at the year
end are translated at the year end exchange rates and the resultant gain/loss is accounted for in the Statement
of Profit & Loss.

XI. Cash and cash equivalents

Cash and cash equivalents include cash and cash-on deposit with banks. The Company considers all highly
liquid investments with a remaining maturity at the date of purchase of three months or less and that are
readily convertible to known amounts of cash to be cash equivalents.

XII. Employee Benefits
Defined Contribution Plan

The Company makes contributions towards provident fund to the regulatory authorities to a defined contribution
retirement benefit plan for qualifying employees, where the Company has no further obligations. Both the
employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified
percentage of the covered employee''s salary.

Defined Benefit Plan

Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The
Company''s liability is actuarially determined using the Projected Unit Credit method at the end of the year in
accordance with the provision of Ind AS 19 - Employee Benefits.

The Company recognizes the net obligation of the defined benefit plan in its balance sheet as an asset or
liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized
in other comprehensive income and are not reclassified to profit or loss in subsequent periods.

The Company recognises the changes in the net defined benefit obligation like service costs comprising
current service costs, past-service costs, gains and losses on curtailments and non-routine settlements and
net interest expense or income, as an expense in the Statement of Profit and Loss.

Short term employee benefits are charged off at the undiscounted amount in the year in which the related
services are rendered.

XIII. Borrowing costs

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency
borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection
with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset
which necessarily take a substantial period of time to get ready for their intended use are capitalized as part
of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are
incurred.

XIV. Leases

Leases under which the company assumes substantially all the risks and rewards of ownership are classified
as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum
lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases
are recognized as an expense on a straight-line basis in net profit in the Statement of Profit & Loss over the
lease term.

XV. Government Grants

The Company recognizes government grants only when there is reasonable assurance that the conditions
attached to them shall be complied with and the grants will be received. Grants related to assets are treated
as deferred income and are recognized as other income in the Statement of profit & loss on a systematic and
rational basis over the useful life of the asset. Grants related to income are recognized on a systematic basis
over the periods necessary to match them with the related costs which they are intended to compensate and
are deducted from the expense in the statement of profit & loss.

XVI. Income Taxes

Income tax expense is recognized in the Statement of Profit & Loss except to the extent that it relates to
items recognized directly in equity, in which case it is recognized in other comprehensive income. Provision
for current tax is made at the current tax rates based on assessable income.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the
tax bases of assets and liabilities and their carrying amounts in the Financial Statements except when the
deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that
is not a business combination and affects neither accounting nor taxable profit or loss at the time of the
transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is
no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted
or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years
in which those temporary differences are expected to be recovered or settled. The effect of changes in tax
rates on deferred income tax assets and liabilities is recognized as income or expense in the period that
includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the
extent that it is probable that future taxable profit will be available against which the deductible temporary
differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed
earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will
not be distributed in the foreseeable future. The company offsets current tax assets and current tax liabilities,
where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle
on a net basis, or to realize the asset and settle the liability simultaneously.

XVII. Earnings per Share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity
shareholders of the Company by the weighted average number of equity shares outstanding during the
period. The weighted average number of equity shares outstanding during the period is adjusted for events
such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of
shares) that have changed the number of equity shares outstanding, without a corresponding change in
resources.

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

XVIII. Current and non-current classification

All assets and liabilities are classified as current or non-current as per the Company''s normal operating
cycle and other criteria set out in the Schedule III to the Act.

Assets

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating
cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is expected to be realized within 12 months after the reporting date; or

(iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for
at least 12 months after the reporting date. Current assets include current portion of non-current financial
assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(i) it is expected to be settled in the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is due to be settled within 12 months after the reporting date; or

(iv) the Company does not have an unconditional right to defer settlement of the liability for at least 12
months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in
its settlement by the issue of equity instruments do not affect its classification. Current liabilities include
current portion of non-current financial liabilities. All other liabilities are classified as non-current. Deferred
tax assets and liabilities are classified as noncurrent assets and liabilities.

XIX. Dividend

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at
the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the
reporting period.

XX. Derecognition of Tangible and Intangible Assets

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise
from its use or disposal. Gain or loss arising on the disposal or retirement of an item of PPE is determined as
the difference between the sale proceeds and the carrying amount of the asset and is recognized in the
Statement of Profit and Loss.

XXI. Equity Share Capital

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting
all of its liabilities. Par value of the equity shares is recorded as share capital and the amount received in
excess of par value is classified as Securities Premium.

Costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of
any tax effects.

XXII. Statement of Cash flows

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

XXIII. Rounding of Amounts

All amounts disclosed in the Ind AS Financial Statements and notes have been rounded off to the nearest
Lacs (with two places of decimal) as per the requirement of Schedule III, unless otherwise stated.

40 Segment Reporting ('' _{in Lacs})

I) Business Segment

As the Company''s business activity falls within a single primary business segment, viz. “Metal”, the disclosure
requirements of Indian Accounting Standard-108 “Operating Reporting”, notified under Section 133 of the
Companies Act, 2013 read with Rule 7 of Companies ( Accounts ) Amendment Rules, 2014 are not applicable.

II) Geographical Segment

The Company primarily operates out of India and therefore the analysis of geographical segments is
demarcated into its Indian and Overseas Operations.

41 Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of
long term and short term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long
term and short term strategic investment and expansion plans. The funding needs are met through cash generated
from operations and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall
debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents, other
bank balances and current investments.

The table below summarises the capital, net debt and net debt to equity ratio of the Company.

II) Fair Value Hierarchy

All Financial Assets & Financial Liabilites are carried at amortised cost except Current Investments, which have
been fair valued using Level 1 Hierarchy.

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement

is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement
is unobservable

The following table represents the fair value heierarchy of Financial Assets and Financial Liabilites measured

III) Financial Risk Management

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency
exchange rates, interest rates, equity prices, liquidity, comomodity and credit risk, which may adversely
impact the fair value of its financial instruments. The Company''s focus is on foreseeing the unpredictability
of financial markets and seek to minimize potential adverse effects on its financial performance.
a) Market Risk -

Market Risk Comprises of Foreign Currency Exchange Rate Risk, Comomodity Price Risk, Interest
Rate Risk & Equity Price Risk

i) Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have a potential impact on the
Statement of Profit and Loss and Equity, where any transactions are denominated in a
currency other than the functional currency of the Company.

The Company''s Exchange Rate Risk exposure is primarily due to Trade Payables, Trade
Receivables and Borrowings in the form of Letter of Credit denominated in foreign
currencies. The Company uses foreign exchange and forward contracts primarily to hedge
_ foreign exchange exposure.

An appreciation/depreciation of the foreign currencies with respect to functional currency of
the Company would result in an decrease/increase in the Company''s Net Profit before Tax
by approximately Rs. 40.47 lacs for the year ended March 31, 2024 (March 31, 2023 : - Rs.
46.85 lacs)

ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument
will fluctuate because of changes in market interest rates. The Company constantly monitors
the credit markets and rebalances its financing strategies to achieve an optimal maturity
profile and financing cost.

iii) Commodity Price Risk

Manaksia''s operations consists of Aluminium Business. The timing mis-match risk between
the input and output price, which is linked to the same international pricing benchmark,
such as London Metal Exchange, is eliminated through use of derivatives. This off-set
hedge model (through use of derivatives) is used to manage the timing mis-match risk for
the commodity and currency risk (primarily USD/INR). A variety of factors, including the risk
appetite of the business and price view, are considered while taking hedging decisions.

iv) Equity Price Risk

Equity price risk is related to change in market reference price of investments in equity
securities held by the Company. The Company has no investments, hence the Company is
not primarily exposed to equity price risk.
b) Liquidity Risk -

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective
of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available
for use as per requirements.

The Company has obtained fund and non-fund based working capital facilities from various banks.
The Company invests its surplus funds in bank fixed deposit and in mutual funds, which carry no
or low market risk.

The following table shows a maturity analysis of the Company''s Financial Liabilities on the basis
of undiscounted contractual payments :

Financial instruments that are subject to credit risk principally consist of Trade Receivables, Loans
Receivables, Investments, Cash and Cash Equivalents and Financial Guarantees provided by the
Company. None of the financial instruments of the Company result in material concentration of
credit risk.

The Company has a policy of dealing only with credit worthy counter parties as a means of mitigating
the risk of financial loss from defaults. The Company manages risks through credit approvals,
establishing credit limits and continuously monitoring the creditworthiness of customers to which
the company grants credit terms in the normal course of business.

44 Other Disclosures

(i) Balances of some parties (including of Trade receivables and Trade payables) and loans and advances are
subject to reconciliation/ confirmations from the respective parties. The management does not expect any
material differences affecting the financial statement for the year.

(ii) These financial statements have been approved by the Board of Directors of the Company on 18th May,
2024 for issue to the shareholders for their adoption.

(iii) Relationship with Struck off Companies- The Company doesnot have any transactions or relationships with
any companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act,
1956.

(iv) There are no transactions that have been surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

(v) The company does not have any benami property, where any proceeding has been initiated or pending
against the company for holding any benami property.

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

(vii) The company is not declared wilfull defaulter by any bank or financials institution or lender during the year.

(viii) Company ahs filed necessary forms with ROC for creation and sarisfaction of Charges within stipulated
time period during the financial year 2024-25.

(ix) Quarterly returns or statements of current assets filed by the company with banks or financial institutions
are in agreement with the books of accounts.

(x) The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was obtained.

45 The Company has received a demand order towards erroneous Goods and Services Tax (“GST”) amounting to
Rs.12.48 Crore and penalty amounting to Rs1.25 crores plus applicable interest with respect to Recovery of
Erroneous Refund/Excess refund under Section 73(9) of the CGST Act, 2017 for the period Oct-18 to March,21 as
notified by Rule 96(10) of the CGST Rules. The Hon''ble Kerala High Court has declared Rule 96(10) of the CGST
Rules,2017 as ultra vires of Section 16 of the IGST Act,2017 and unenforceable on account of manifestly arbitrary.
Further, Rule 96(10) of the CGST Rules, 2017, which restricted refund of IGST on exports in certain circumstances,
has been omitted vide Notification No. 20/2024-Central Tax dated 08.10.2024, considering the genuine difficulties
being faced by exporters. The Hon''ble Uttarakhand High Court in decided on 30.04.2025] squarely held that no
order can be passed under Rule 96(10) after its omission on 08.10.2024. It is respectfully submitted that in the
absence of a contrary ruling from the Hon''ble Calcutta High Court or the Hon''ble Supreme Court, the rulings of the
Hon''ble High Courts of Uttarakhand, Kerala are binding precedents under Article 141/226 on GST authorities
nationwide.

46 The Company has incorporated a new wholly owned subsidiary i.e Manaksia Aluminium Inc. at 8 The Green STE
R, DOVER D 19901, State of Delaware, USA on 30th August 2024. However, the subsidiary Company is yet to
commence its operation. The Share application money will be deposited into subsidiary bank account shortly and
hence the consolidated financials are not being prepared for the quarter and year ended 31st March 2025.

47 The previous year figures are reclassified where considered necessary to confirm to this year''s classification in
order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective 1st April,
2021.

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

For DANGI JAIN & Co

Chartered Accountants Sunil Kumar Agrawal Anirudha Agrawal

Firm Regn. No. 308108E (Managing Director) (Whole-time Director &

DIN: 00091784 Chief Executive Officer)

Honey Agarwal DIN: 06537905

(Partner)

Membership No. 304486 Ashok Agarwal Vivek Jain

UDIN : 25304486BMUJQE9067 (Chief Financial Officer) (Company Secretary)

Place : Kolkata
Dated : 20th May, 2025

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Mar 31, 2024

IX. Provisions, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a legal or constructive obligation as a result of past events and it is probable that there will be an outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are not recognized for future operating losses. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation.

A contingent liability exists when there is a possible but not probable obligation, or a present obligation that may, but probably will not, require an outflow of resources, or a present obligation whose amount cannot be estimated reliably. Contingent liabilities do not warrant provisions, but are disclosed unless the possibility of outflow of resources is remote. Contingent assets are neither recognized nor disclosed in the financial statements. However, contingent assets are assessed continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognized in the period in which the change occurs.

X. Foreign Currency Transactions & Translations

The functional currency of the Company is Indian Rupee. These Financial Statements are presented in Indian Rupee (rounded off to the nearest Lacs).

Transactions in foreign currencies entered into by the company are accounted at the exchange rates prevailing on the date of the transaction. Gains & losses arising on account of realization are accounted for in the Statement of Profit & Loss. Monetary Assets & Liabilities in foreign currency that are outstanding at the year end are translated at the year end exchange rates and the resultant gain/loss is accounted for in the Statement of Profit & Loss.

XI. Cash and cash equivalents

Cash and cash equivalents include cash and cash-on deposit with banks. The Company considers all highly liquid investments with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known amounts of cash to be cash equivalents.

XII. Employee Benefits Defined Contribution Plan

The Company makes contributions towards provident fund to the regulatory authorities to a defined contribution retirement benefit plan for qualifying employees, where the Company has no further obligations. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.

Defined Benefit Plan

Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The Company''s liability is actuarially determined using the Projected Unit Credit method at the end of the year in accordance with the provision of Ind AS 19 - Employee Benefits.

The Company recognizes the net obligation of the defined benefit plan in its balance sheet as an asset or liability. Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income and are not reclassified to profit or loss in subsequent periods.

The Company recognises the changes in the net defined benefit obligation like service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements and net interest expense or income, as an expense in the Statement of Profit and Loss.

Short term employee benefits are charged off at the undiscounted amount in the year in which the related services are rendered.

XIII. Borrowing costs

Borrowing costs are interest and other costs (including exchange differences relating to foreign currency borrowings to the extent that they are regarded as an adjustment to interest costs) incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalized as part of the cost of that asset. Other borrowing costs are recognized as an expense in the period in which they are incurred.

XIV. Leases

Leases under which the company assumes substantially all the risks and rewards of ownership are classified as finance leases. When acquired, such assets are capitalized at fair value or present value of the minimum lease payments at the inception of the lease, whichever is lower. Lease payments under operating leases are recognized as an expense on a straight-line basis in net profit in the Statement of Profit & Loss over the lease term.

XV. Government Grants

The Company recognizes government grants only when there is reasonable assurance that the conditions attached to them shall be complied with and the grants will be received. Grants related to assets are treated as deferred income and are recognized as other income in the Statement of profit & loss on a systematic and rational basis over the useful life of the asset. Grants related to income are recognized on a systematic basis over the periods necessary to match them with the related costs which they are intended to compensate and are deducted from the expense in the statement of profit & loss.

XVI. Income Taxes

Income tax expense is recognized in the Statement of Profit & Loss except to the extent that it relates to items recognized directly in equity, in which case it is recognized in other comprehensive income. Provision for current tax is made at the current tax rates based on assessable income.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the Financial Statements except when the deferred income tax arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and affects neither accounting nor taxable profit or loss at the time of the transaction. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realized.

Deferred income tax assets and liabilities are measured using tax rates and tax laws that have been enacted or substantively enacted by the Balance Sheet date and are expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect of changes in tax rates on deferred income tax assets and liabilities is recognized as income or expense in the period that includes the enactment or the substantive enactment date. A deferred income tax asset is recognized to the extent that it is probable that future taxable profit will be available against which the deductible temporary differences and tax losses can be utilized. Deferred income taxes are not provided on the undistributed earnings of subsidiaries and branches where it is expected that the earnings of the subsidiary or branch will not be distributed in the foreseeable future. The company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realize the asset and settle the liability simultaneously.

XVII. Earnings per Share

Basic earnings per share is computed by dividing the net profit for the period attributable to the equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue, bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number of equity shares outstanding, without a corresponding change in resources.

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

XVIII. Current and non-current classification

All assets and liabilities are classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Act.

Assets

An asset is classified as current when it satisfies any of the following criteria:

(i) it is expected to be realized in, or is intended for sale or consumption in, the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is expected to be realized within 12 months after the reporting date; or

(iv) it is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least 12 months after the reporting date. Current assets include current portion of non-current financial assets. All other assets are classified as non-current.

Liabilities

A liability is classified as current when it satisfies any of the following criteria:

(i) it is expected to be settled in the Company''s normal operating cycle;

(ii) it is held primarily for the purpose of being traded;

(iii) it is due to be settled within 12 months after the reporting date; or

(iv) the Company does not have an unconditional right to defer settlement of the liability for at least 12 months after the reporting date. Terms of a liability that could, at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification. Current liabilities include current portion of non-current financial liabilities. All other liabilities are classified as non-current. Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.

XIX. Dividend

Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion of the entity, on or before the end of the reporting period but not distributed at the end of the reporting period.

XX. Derecognition of Tangible and Intangible Assets

An item of PPE is de-recognised upon disposal or when no future economic benefits are expected to arise from its use or disposal. Gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference between the sale proceeds and the carrying amount of the asset and is recognized in the Statement of Profit and Loss.

XXI. Equity Share Capital

An equity instrument is a contract that evidences residual interest in the assets of the company after deducting all of its liabilities. Par value of the equity shares is recorded as share capital and the amount received in excess of par value is classified as Securities Premium.

Costs directly attributable to the issue of ordinary shares are recognized as a deduction from equity, net of any tax effects.

XXII. Statement of Cash flows

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

XXIII. Rounding of Amounts

All amounts disclosed in the Ind AS Financial Statements and notes have been rounded off to the nearest Lacs (with two places of decimal) as per the requirement of Schedule III, unless otherwise stated.

XXIII. Recent Accounting Pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of ‘accounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its financial statements.

Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and there is no impact on its financial statement.

41 Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion plans. The funding needs are met through cash generated from operations and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances and current investments.

The table below summarises the capital, net debt and net debt to equity ratio of the Company.

III) Financial Risk Management

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity, comomodity and credit risk, which may adversely impact the fair value of its financial instruments. The Company''s focus is on foreseeing the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance. a) Market Risk -

Market Risk Comprises of Foreign Currency Exchange Rate Risk, Comomodity Price Risk, Interest Rate Risk & Equity Price Risk

i) Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have a potential impact on the Statement of Profit and Loss and Equity, where any transactions are denominated in a currency other than the functional currency of the Company.

The Company''s Exchange Rate Risk exposure is primarily due to Trade Payables, Trade Receivables and Borrowings in the form of Letter of Credit denominated in foreign

currencies. The Company uses foreign exchange and forward contracts primarily to hedge foreign exchange exposure.

An appreciation/depreciation of the foreign currencies with respect to functional currency of the Company would result in an decrease/increase in the Company''s Net Profit before Tax by approximately Rs. 40.47 lacs for the year ended March 31, 2024 (March 31, 2023 : - Rs. 46.85 lacs)

ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

iii) Commodity Price Risk

Manaksia''s operations consists of Aluminium Business. The timing mis-match risk between the input and output price, which is linked to the same international pricing benchmark, such as London Metal Exchange, is eliminated through use of derivatives. This off-set hedge model (through use of derivatives) is used to manage the timing mis-match risk for the commodity and currency risk (primarily USD/INR). A variety of factors, including the risk appetite of the business and price view, are considered while taking hedging decisions.

iv) Equity Price Risk

Equity price risk is related to change in market reference price of investments in equity securities held by the Company. The Company has no investments, hence the Company is not primarily exposed to equity price risk.

b) Liquidity Risk -

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital facilities from various banks. The Company invests its surplus funds in bank fixed deposit and in mutual funds, which carry no or low market risk.

Financial instruments that are subject to credit risk principally consist of Trade Receivables, Loans Receivables, Investments, Cash and Cash Equivalents and Financial Guarantees provided by the Company. None of the financial instruments of the Company result in material concentration of credit risk.

The Company has a policy of dealing only with credit worthy counter parties as a means of mitigating the risk of financial loss from defaults. The Company manages risks through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business.

44 Other Disclosures

(i) Balances of some parties (including of Trade receivables and Trade payables) and loans and advances are subject to reconciliation/ confirmations from the respective parties. The management does not expect any material differences affecting the financial statement for the year.

(ii) These financial statements have been approved by the Board of Directors of the Company on 18th May, 2024 for issue to the shareholders for their adoption.

(iii) Relationship with Struck off Companies- The Company doesnot have any transactions or relationships with any companies struck off under Section 248 of Companies Act, 2013 or Section 560 of Companies Act, 1956.

(iv) There are no transactions that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 which have not been recorded in the books of account.

(v) The company does not have any benami property, where any proceeding has been initiated or pending against the company for holding any benami property.

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

(vii) The company is not declared wilfull defaulter by any bank or financials institution or lender during the year.

(viii) Company ahs filed necessary forms with ROC for creation and sarisfaction of Charges within stipulated time period during the financial year 2023-24.

(ix) Quarterly returns or statements of current assets filed by the company with banks or financial institutions are in agreement with the books of accounts.

(x) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

45 Previous year figures :

The previous year figures are reclassified where considered necessary to confirm to this year''s classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective 1st April, 2021.

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

For DANGI JAIN & Co

Chartered Accountants Sunil Kumar Agrawal Anirudha Agrawal

Firm Regn. No. 308108E (Managing Director) (Whole-time Director &

DIN: 00091784 Chief Executive Officer)

Honey Agarwal DIN: 06537905

(Partner)

Membership No. 304486 Ashok Agarwal Vivek Jain

UDIN : 24304486BKGBTC2950 (Chief Financial Officer) (Company Secretary)

Place : Kolkata Dated : 18th May, 2024

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Mar 31, 2018

1 Company Overview

Manaksia Aluminium Company Limited (“the Company”) is a public limited company incorporated in India having its registered office situated at 8/1, Lal Bazar Street, Bikaner Building, Kolkata - 700 001. The Company has its shares listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The Company is primarily engaged in the manufacture of value-added secondary aluminium products like Aluminium Rolled Sheets / Coils. The manufacturing units of the Company are located at Haldia & Bankura (West Bengal).

a) Rights, preferences and restrictions attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.1/-. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

2.1 The Current part of Long Term Borrowings, as above, have been shown under Current Borrowings (Note No.20), as Current Maturities of long term borrowings.

2.2 Rupee Term Loan:

The above loan is secured by First Charge on all Fixed Asset (Movable and Immovable) and is further secured by second charge on current assets of the Company. The loan is repayable in 11 quarterly installments of Rs. 200 Lakhs each. The Rate of Interest on the Rupee Term Loan is 10.80% p.a. The Company had re-paid the term loan fully by December 31st, 2017.

2.3 Hire purchase obligations are secured by hypothecation of vehicles purchased under the respective agreement.

Disclosure of payables to MSME vendors as defined under the “Micro, Small and Medium Enterprise Development Act, 2006” is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company.

There are no overdue principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

3. Employee Benefits

I) Defined Contribution Plan

Contribution to defined contribution plan, recognized are charged off during the year as follows :

II) Defined Benefit Plan

Gratuity is paid to employees under the Payment of Gratuity Act 1972 through unfunded scheme. The present value of obligation is determined based on actuarial valuation using 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.

f) Sensitivity Analysis

Significant actuarial assumptions for the determination of the define benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have 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 :

4. Segment Reporting

I) Business Segment

As the Company’s business activity falls within a single primary business segment, viz. “Metal”, the disclosure requirements of Indian Accounting Standard-108 “Operating Segment”, notified under Section 133 of the Companies Act, 2013 read with Rule 7 of Companies ( Accounts ) Amendment Rules, 2014 are not applicable.

II) Geographical Segment

The Company primarily operates out of India and therefore the analysis of geographical segments is demarcated into its Indian and Overseas Operations.

5. Capital Management

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long term and short term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long term and short term strategic investment and expansion plans. The funding needs are met through cash generated from operations and short term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company. Net debt includes interest bearing borrowings less cash and cash equivalents, other bank balances and current investments.

The table below summarises the capital, net debt and net debt to equity ratio of the Company.

II) Fair Value Hierarchy

All Financial Assets & Financial Liabilities are carried at amortised cost except Current Investments, which have been fair valued using Level 1 Hierarchy.

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

The following table represents the fair value heierarchy of Financial Assets and Financial Liabilities measured at Fair Value on a recurring basis :

III) Financial Risk Management

In the course of its business, the Company is exposed primarily to fluctuations in foreign currency exchange rates, interest rates, equity prices, liquidity and credit risk, which may adversely impact the fair value of its financial instruments. The Company’s focus is on foreseeing the unpredictability of financial markets and seek to minimize potential adverse effects on its financial performance.

a) Market Risk -

Market Risk Comprises of Foreign Currency Exchange Rate Risk, Interest Rate Risk & Equity Price Risk

i) Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have a potential impact on the Statement of Profit and Loss and Equity, where any transactions are denominated in a currency other than the functional currency of the Company.

The Company’s Exchange Rate Risk exposure is primarily due to Trade Payables, Trade Receivables and Borrowings in the form of Buyers’ Credit denominated in foreign currencies. The Company uses foreign exchange and forward contracts primarily to hedge foreign exchange exposure.

An appreciation/depreciation of the foreign currencies with respect to functional currency of the Company by 1% would result in an decrease/increase in the Company’s Net Profit before Tax by approximately Rs. 30.10 lacs for the year ended 31st March, 2018 (31st March, 2017 : - ‘27.02 lacs)

ii) Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company constantly monitors the credit markets and rebalances its financing strategies to achieve an optimal maturity profile and financing cost.

iii) Equity Price Risk

Equity price risk is related to change in market reference price of investments in equity securities held by the Company. The Company has no investments, hence the Company is not primarily exposed to equity price risk.

b) Liquidity Risk -

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital facilities from various banks. The Company invests its surplus funds in bank fixed deposit and in mutual funds, which carry no or low market risk.

The following table shows a maturity analysis of the Company’s Financial Liabilities on the basis of undiscounted contractual payments :

c) Credit Risk -

Credit risk is the risk of financial loss arising from counter-party failure to repay or service debt according to the contractual terms or obligations. Credit risk encompasses both the direct risk of default and the risk of deterioration of creditworthiness.

Financial instruments that are subject to credit risk principally consist of Trade Receivables, Loans Receivables, Investments, Cash and Cash Equivalents and Financial Guarantees provided by the Company. None of the financial instruments of the Company result in material concentration of credit risk.

The Company has a policy of dealing only with credit worthy counter parties as a means of mitigating the risk of financial loss from defaults. The Company manages risks through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the company grants credit terms in the normal course of business.

6. First Time Adoption of Indian Accounting Standards (Ind AS)

These Financial Statements of Company for the year ended March 31, 2018 have been prepared in accordance with Indian Accounting Standards (Ind AS). For the purposes of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101-First Time Adoption of Indian Accounting Standard, with April 1, 2016 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 2 have been applied in preparing the standalone financial statements for the year ended March 31, 2018 and the comparative information. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 41.1 below. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance Sheet, Statement of Profit and Loss, is set out in note 41.2 and 41.3.

6.1 Exemptions availed on First Time Adoption of Indian Accounting Standards (Ind AS)

Ind AS 101 “First time Adoption of Indian Accounting Standards” permits Companies adopting Ind AS for the first time to take certain exemptions from the full retrospective application of Ind AS during the transition. The Company has accordingly on transition to Ind AS availed the following key exemptions :

I. Business Combination

In accordance with Ind AS 101, the Company has elected not to restate business combinations that occurred before the date of transition i.e. 1st April 2016. In view of the same, the Indian GAAP carrying amounts of assets and liabilities, that are required to be recognized under Ind AS, is their deemed cost at the date of the acquisition. After the date of the acquisition, measurement is in accordance with respective Ind AS.

II. Property, Plant & Equipment

In accordance with Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP as deemed cost at the transition date i.e. 1st April 2016 for all the items of property, plant and equipment.

Notes :

1. Under Ind AS, revenue from sale of goods is inclusive of excise duty . Under previous GAAP, sales was shown net of excise duty.

2. Under Ind AS, Acturial Gain/Loss on Gratuity is routed through Other Comprehensive Income instead of profit & loss.

3. Under Ind AS, derivative instruments have been measured at Fair Value Through Profit & Loss (FVTPL).

7. Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary to conform to the current year presentation.

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Mar 31, 2016

1. Terms/rights attached to each class of shares Equity Shares:

The Company has only one class of equity shares having a par value of Rs.1/-. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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

2. The Current part of Long Term Borrowings, as above, have been shown under Other Current Liabilities (Note No.9), as Current Maturities of long term debt.

3. Rupee Term Loan:

The above loan is secured by First Charge on all Fixed Asset (Movable and Immovable) and is further secured by second charge on current assets of the Company. The loan is repayable in 11 quarterly installments of Rs. 200 Lakhs each. The Current Rate of Interest on the Rupee Term Loan is 10.60% p.a.

4. The Company''s Working Capital facilities are secured by First Charge on the current assets and second charge on Immovable Fixed Assets ranking pari passu with the respective Working Capital Bankers.

5. Effective from 1^st April 2014, the company had charged depreciation based on the revised remaining useful lives of the assets as per the requirement of Schedule II to the Companies Act 2013. Due to above an amount of Rs. 57.04 Lakhs (net of deferred tax) has been recognized in the opening balance of retained earnings for the Financial year 2014-15, for the assets where remaining useful life as per Schedule II is Nil.

6. Segment Reporting

7. Business Segment - As the Company''s business activity falls within a single primary business segment, viz “Metal”, the disclosure requirements of Accounting Standard-17 "Segment Reporting" is not applicable.

8. Geographical Segment - The company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and overseas operations as under:

9. In terms of the scheme of arrangement under section 391 to 394 of the Companies Act, 1956 (“the Scheme”) between Manaksia Limited, Manaksia Aluminium Company Limited (“the Company”) and other three transferee Companies, Manaksia Limited had demerged its business and undertakings namely; Aluminium Undertaking, Steel Undertaking, CMMC Undertaking and Packaging Undertaking to four separate transferee Companies. Pursuant to the Scheme as approved by Hon''ble High Court of Calcutta vide order dated 24^th March 2014, received on 19^th November 2014, the Aluminium undertaking of Manaksia Limited has been demerged into the company on a going concern basis with effect from 1st October 2013 being the appointed date.

In terms of the Scheme 65,534,050 equity shares of Rs. 1/- each, fully paid-up, of the Company have been issued to the holders of equity shares of Manaksia Limited, whose names were registered in the register of members on the record date, without payment being received in cash, in the ratio of 1 (one) fully paid-up equity share of Rs. 1/- each of the Company for every equity share held in Manaksia Limited. Further, in terms of the Scheme, Share Capital of Rs. 5 lacs prior to allotment of the above shares, has been transferred to Capital Reserve Account.

10. Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary to confirm to the current year presentation.

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Mar 31, 2015

1. Effective from 1st April 2014, the company has charged depreciation based on the revised remaining useful lives of the assets as per the requirement of Schedule II to the Companies Act 2013. Due to above, depreciation charged for the year ended March 2015, is lower and profit after tax is higher by Rs 88.48 Lakhs. An amount of Rs 57.03 Lakhs (net of deferred tax) has been recognized in the opening balance of retained earnings for the assets where remaining useful life as per Schedule II is Nil.

2. Segment Reporting

a) Business Segment - As the Company's business activity falls within a single primary business segment, viz "Metal", the disclosure requirements of Accounting Standard-17 "Segment Reporting" is not applicable.

b) Geographical Segment - The company primarily operates in India and therefore the analysis of geographical segments is demarcated into its Indian and overseas operations as under:

3.1 In terms of the scheme of arrangement under Section 391 to 394 of the Companies Act, 1956 ("the Scheme") between Manaksia Limited, Manaksia Aluminium Company Limited ("the Company") and other three transferee Companies, Manaksia Limited has demerged its business and undertakings namely; Aluminium Undertaking, Steel Undertaking, CMMC Undertaking and Packaging Undertaking to four separate transferee Companies. Pursuant to the Scheme as approved by Hon'ble High Court of Calcuta vide order dated 24th March 2014, received on 19th November 2014, the Aluminium undertaking of Manaksia Limited has been demerged into the company on a going concern basis with effect from 1st October 2013 being the appointed date. The certified copy of the said order of the high court has been filed with the Registrar of Companies, West Bengal on 23rd November, 2014 and as such the Scheme has become operational form that date.

3.2 The said transfer has been affected at the values appearing in the books of Manaksia Limited as at 30th September, 2013 and recorded as such in book of accounts of the Company. The book value of such assets and liabilities as on that date are detailed out below:

3.3 In terms of the Scheme 65,534,050 equity shares of Rs. 1/- each, fully paid-up, of the Company have been issued to the holders of equity shares of Manaksia Limited, whose names were registered in the register of members on the record date, without payment being received in cash, in the ratio of 1 (one) fully paid-up equity share of Rs. 1/- each of the Company for every equity share held in Manaksia Limited. Consequent to allotment, "Share Suspense Account" amounting to Rs. 655.34 Lacs has been transferred to "Share Capital". Further, in terms of the Scheme, Share Capital of Rs. 5 lacs prior to allotment of the above shares, has been transferred to Capital Reserve Account.

3.4 In terms of the scheme, excess of net assets so recorded, over the amount of share capital to be issued amounting to Rs. 10,509.16 lacs is recognised in these financial statements, as Reserves in the sequence hereunder:

- Firstly, as Security Premium

- The balance as General Reserves

3.5 In terms of the Scheme, Security Premium Account of the Manaksia Limited shall be apportioned among Manaksia Limited, the Company and the other three transferee Companies in proportion of the net assets of all the Companies.

4. The Company has made a provision of Rs. 108.62 Lacs (Previous Year Rs. 145.24 Lacs) towards Entry Tax in relation to mater under litigation/dispute as shown below:

5. Corresponding comparative figures for the previous year have been regrouped and readjusted wherever considered necessary to confirm to the current year presentation.

Current period figures are for 12 months ended 31st March 2015 and previous period figures include the results of Aluminium business of Manaksia Ltd from appointed date of demerger (i.e 1st October 2013) to the end of relevant financial year. Since the reporting period of operational units are not same, these figures are not comparable.