Notes to Accounts of Panchmahal Steel Ltd.

Mar 31, 2025

Q. Provisions, Contingent Liabilities and Contingent Assets:

Provisions:

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. When the
Company expects some or all of a provision to be reimbursed, for example, under an insurance contract,
the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually
certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any
reimbursement.

Contingent Liabilities:

Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future
events not wholly within the control of the company or (ii) Present obligations arising from past events
where it is not probable that an outflow of resources will be required to settle the obligation or a reliable
estimate of the amount of the obligation cannot be made.

Contingent Assets:

Contingent Assets are not recognised but are disclosed in the notes to the financial statements.

The Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

R. Earnings Per Share:

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

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

2.5. Recent 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. For the year ended March 31,
2025, MCA has notified Ind AS - 117 Insurance Contracts and amendments to Ind AS 116 - Leases, relating to
sale and leaseback transactions, applicable to the Company w.e.f. April 1, 2024. The Company has reviewed
the new pronouncements and based on its evaluation has determined that it does not have any significant
impact in its financial statements.

33 Disclosure as required under Ind AS 19 - Employee Benefits
[A] Defined benefit plans:

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.The
scheme is funded. The following tables summaries the components of net benefit expense recognized in the
Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity
plan.

Risks associated with defined benefit plan

Interest rate risk: A fall in the discount rate which is linked to the Government securities rate will increase the
present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark
to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future
salaries of members. As such, an increase in the salary of the members more than assumed level will increase
the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on government bonds. If
the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a
relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is
invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age
only, plan does not have any longevity risk.

Concentration Risk: Plan has a concentration risk as all the assets are invested with the insurance company and
a default will wipe out all the assets. Although probability of this is very less as insurance companies have to
follow regulatory guidelines.

The sensitivity analysis has been determined based on reasonably possible changes of the respective
assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected
benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as
some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the
present value of the projected benefit obligation has been calculated using the projected unit credit method at
the end of the reporting period, which is the same method as applied in calculating the projected benefit
obligation as recognised in the balance sheet.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity
plan and the amounts recognised in the Company''s financial statements as at balance sheet date:

There was no change in the methods and assumption used in preparing the sensitivity analysis from prior years.

Level 1: Hierarchy includes financial instruments measured using quoted prices. This includes listed equity
instruments that have quoted price. The fair value of all equity instruments which are traded in the stock
exchanges is valued using the closing price as at the reporting period.

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

Level 3: Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is
included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the
end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis (if any).

38 Financial Risk Management

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

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

(A) Credit risk

Credit risk is the risk of incurring a loss that may arise from a borrower or customer failing to make required
payments. Credit risk arises mainly from outstanding receivables from free market dealers, cash and cash
equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each
of its new clients before standard payment and delivery terms and conditions are offered.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The
demographics of the customer and including the default risk of the industry, also has an influence on credit risk
assessment. Credit risk is managed 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.

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

i) Actual or expected significant adverse changes in business;

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

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

iv) Significant increase in credit risk on other financial instruments of the same counterparty;

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

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing
to engage in a repayment plan with the Company. Where loans or receivables have been written off, the
Company continues to engage in enforcement activity to attempt to recover the receivable due. Where
recoveries are made, these are recognized as income in the statement of profit and loss.

(i) Trade Receivables

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial
Instrument, which requires expected lifetime losses to be recognized from initial recognition of the
receivables. When determining whether the credit risk of a financial asset has increased significantly
since initial recognition and when estimating expected credit Losses (ECL), the Company considers
reasonable and relevant information that is available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Company''s historical experience and
informed credit assessment and including forward looking information.

The reconciliation of ECL is as follows:

(ii) Cash and Cash Equivalents

As at the year end, the company held cash and cash equivalents of Rs. 31.64 lakhs (31.03.2024 Rs. 3.77
lakhs). The cash and cash equivalents are held with bank and financial institution counterparties with
good credit rating.

(iii) Other Financials Assets

Others Financial Assets are considered to be of good quality and there is no significant increase in credit
risk.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with
its financial liabilities that are settled by delivering cash or another financial asset. The responsibility for
liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk
management framework for the management of the Company''s short-term, medium-term and long-term
funding and liquidity management requirements. The Company manages liquidity risk by maintaining
adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and
actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Maturities of Financial Liabilities

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

(C) Market Risk
Currency Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity
prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

The risk is measured through a forecast of foreign currency for the Company''s operations.

The Company''s exposure to foreign currency risk at the end of the reporting period expressed in Indian Rupee,
are as follows:

39 Capital Management

For the purpose of the Company''s capital management, equity includes equity share capital and all other equity
reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to
the shareholders and makes adjustments to it in light of changes in economic conditions or its business
requirements. The Company''s objectives are to safeguard continuity, maintain a strong credit rating and healthy
capital ratios in order to support its business and provide adequate return to shareholders through continuing growth
and maximise the shareholders value. The Company funds its operation through long term and short term borrowings
from holding company and cash credit and other working capital facilities from the bankers. The management and
Board of Directors monitor the return on capital.

Note 1 General Stores & spares are not included in the stock as the same are not required to be submitted to bank
Note 2 Stock Statement filed with the banks are after adjusting the Vendor Advance payment made.

Note 3 Creditors submitted to the banks are only related to the creditors for goods
(d) Others:

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

(ii) The quarterly returns and statement of current assets filled by the company with Banks are gven in Note
40(c).

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

(iv) The company have not traded or invested in Crypto currency or Virtual Currency during the period/year.

(v) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including
foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries) or

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

(vi) The company have not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vii) The company has no such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961
(such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

viii) The company is not declared as wilful defaulter by any bank or financial Institution or other lender.

ix) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to
237of the Companies Act, 2013

This proposed dividend is subject to the approval of shareholders in the ensuing annual general meeting and
therefore not recognised as liability at year end.

43 These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in
its meeting held on 23rd May, 2025. The financial statements as approved by the Board of Directors are subject to
final approval by its Shareholders.

The accompanying notes are an integral part of the financial statement For and on behalf of the Board of Directors

Panchmahal Steel Limited

As per our Report of even date.

For CNK & Associates LLP. Kalpesh Parmar Ashok Malhotra

Chartered Accountants Director Chairman & Managing Director

Firm Reg. No. 101961W/W-100036 (DIN: 00230588) (DIN: 00120198)

Pareen Shah

Partner Nilesh Shah Deepak Nagar

Membership No. 125011 Chief Financial Officer GM (Legal) & Company Secretary

Vadodara, 23rd May, 2025 Vadodara, 23rd May, 2025

---

Mar 31, 2024

Q. Provisions, Contingent Liabilities and Contingent Assets:

Provisions:

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. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement.

Contingent Liabilities:

Contingent liability is disclosed for (i) Possible obligations which will be confirmed only by the future events not wholly within the control of the company or (ii) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable

estimate of the amount of the obligation cannot be made.

Contingent Assets:

Contingent Assets are not recognised but are disclosed in the notes to the financial statements.

The Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

R. Earnings Per Share:

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

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

2.5. Recent 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. For the year ended March 31, 2024, MCA has not notified any new standards or amendments to the existing standards applicable to the Company.

33 Disclosure as required under Ind AS 19 - Employee Benefits

[A] Defined Benefit Plans:

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.The scheme is funded. The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

Risks associated with Defined Benefit Plan

Interest rate risk: A fall in the discount rate which is linked to the Government securities rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan has a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis (if any).

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

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

(A) Credit risk

Credit risk is the risk of incurring a loss that may arise from a borrower or customer failing to make required payments. Credit risk arises mainly from outstanding receivables from free market dealers, cash and cash equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment and delivery terms and conditions are offered.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed 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.

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

i) Actual or expected significant adverse changes in business;

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

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

iv) Significant increase in credit risk on other financial instruments of the same counterparty;

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

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

(i) Trade Receivables

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument, which requires expected lifetime losses to be recognized from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit Losses (ECL), the Company considers reasonable and relevant information that is available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment and including forward looking information.

The reconciliation of ECL is as follows:

(ii) Cash and Cash Equivalents

As at the year end, the company held cash and cash equivalents of Rs. 3.77 lakhs (31.03.2023 Rs. 2.12 lakhs). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

(iii) Other Financials Assets

Others Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Maturities of Financial Liabilities

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

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market Risk Currency Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The risk is measured through a forecast of foreign currency for the Company''s operations.

The Company''s exposure to foreign currency risk at the end of the reporting period expressed in Indian Rupee, are as follows:

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operation through long term and short term borrowings from holding company and cash credit and other working capital facilities from the bankers. The management and Board of Directors monitor the return on capital.

(c) Others:

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

(ii) The quarterly returns and statement of current assets filled by the company with Banks are generally in agreement with the books of account.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the period/year.

(v) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by

or on behalf of the company (Ultimate Beneficiaries) or

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

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by

or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

viii) The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

ix) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013

42 These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its meeting held on 11th May, 2024.

The accompanying notes are an integral part of the financial statement For and on behalf of the Board of Directors

Panchmahal Steel Limited

As per our Report of even date.

For CNK & Associates LLP. Kalpesh Parmar Ashok Malhotra

Chartered Accountants Director Chairman & Managing Director

Firm Reg. No. 101961W/W-100036 (DIN: 00230588) (DIN: 00120198)

Pareen Shah

Partner Nilesh Shah Deepak Nagar

Membership No. 125011 Chief Financial Officer GM (Legal) & Company Secretary

Vadodara, 11th May, 2024 Vadodara, 11th May, 2024

---

Mar 31, 2023

The Working Capital Advances from State Bank of India are secured by first charge over the inventories, receivables and other chargeable current assets and over the immovable properties situated at Plot No.117 GIDC Industrial Estate Kalol, Dist. Panchmahal and is further guaranteed by Chairman and Managing Director of the Company.

1. Earnings Per Share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

2. Disclosure as required under Ind AS 19 - Employee Benefits

[A] Defined Benefit Plans:

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.The scheme is funded. The following tables summaries the components of net benefit expense recognized in the Statement of profit and loss and the funded status and amounts recognized in the balance sheet for the gratuity plan.

Risks associated with Defined Benefit Plan

Interest rate risk: A fall in the discount rate which is linked to the Government securities rate will increase the present value of the liability requiring higher provision. A fall in the discount rate generally increases the mark to market value of the assets depending on the duration of asset.

Salary Risk: The present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan''s liability.

Investment Risk: The present value of the defined benefit plan liability is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds. If the return on plan asset is below this rate, it will create a plan deficit. Currently, for the plan in India, it has a relatively balanced mix of investments in government securities, and other debt instruments.

Asset Liability Matching Risk: The plan faces the ALM risk as to the matching cash flow. Since the plan is invested in lines of Rule 101 of Income Tax Rules, 1962, this generally reduces ALM risk.

Mortality risk: Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

Concentration Risk: Plan has a concentration risk as all the assets are invested with the insurance company and a default will wipe out all the assets. Although probability of this is very less as insurance companies have to follow regulatory guidelines.

Characteristics of Defined Benefit Plans

During the year, there were no plan amendments, curtailments and settlements.

The Company makes annual contributions to Panchmahal Steel Limited Employees'' Gratuity Fund managed by LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at 31st March, 2023

Note 1: Discount rate is determined by reference to market yields at the balance sheet date on Government bonds, where the currency and terms of the Government bonds are consistent with the currency and estimated terms for the benefit obligation.

Note 2: The estimate of future salary increase takes into account inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Note 3: 100% of the plan assets are invested in group gratuity scheme offered by LIC of India.

The sensitivity analysis has been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated. Furthermore, in presenting the above sensitivity analysis, the present value of the projected benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same method as applied in calculating the projected benefit obligation as recognised in the balance sheet.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at balance sheet date:

There was no change in the methods and assumption used in preparing the sensitivity analysis from prior years.

[B] Other long Term Benefit:

The Company''s Long Term benefits includes Leave Encashment payable at the time of retirement subject to, policy of maximum leave accumulation of company. The scheme is not funded.

* Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - Employee Benefits in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

35. Operating Segments

The Company is engaged in a single segment of manufacture and sale of Stainless Steel Long Products.

The analysis of geographical information is based on the geographical location of the customers. The geographical information considered for disclosure are as follows:

Property, Plant and Equipment(PPE) by Geographical Locations

The Company has common PPE for producing goods for domestic as well as overseas market. There are no PPE situated outside India. Hence, additional segment-wise information for PPE / additions to PPE has not been furnished.

Disclosure related to Revenue from Major Customers

For the year ended 31st March, 2023 there is no customer , revenue from whom constitutes more than 10%. In previous year i.e 31st March, 2022 , there is one customer revenue from whom constitutes more than 10% of total revenue i.e 14.24% of total sales .

(i) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value and (b) measured at amortized cost and for which fair values are disclosed in the financial statements. To provide an indication about the reliability of the inputs used in determining fair value, the Group has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis (if any).

37 Financial Risk Management

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

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

(A) Credit risk

Credit risk is the risk of incurring a loss that may arise from a borrower or customer failing to make required payments. Credit risk arises mainly from outstanding receivables from free market dealers, cash and cash equivalents, employee advances and security deposits. The Company manages and analyses the credit risk for each of its new clients before standard payment and delivery terms and conditions are offered.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the customer and including the default risk of the industry, also has an influence on credit risk assessment. Credit risk is managed 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.

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

i) Actual or expected significant adverse changes in business;

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

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

iv) Significant increase in credit risk on other financial instruments of the same counterparty;

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

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

(i) Trade Receivables

For trade receivables, the Company applies the simplified approach permitted by Ind AS 109 Financial Instrument, which requires expected lifetime losses to be recognized from initial recognition of the receivables. When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit Losses (ECL), the Company considers reasonable and relevant information that is available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment and including forward looking information.

(ii) Cash and Cash Equivalents

As at the year end, the company held cash and cash equivalents of Rs. 308.25 lakhs (31.03.2021 Rs. 82.54 lakhs). The cash and cash equivalents are held with bank and financial institution counterparties with good credit rating.

(iii) Other Financials Assets

Others Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

(B) Liquidity Risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The responsibility for liquidity risk management rests with the board of directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term, medium-term and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

Maturities of Financial Liabilities

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

The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

(C) Market Risk Currency Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

The risk is measured through a forecast of foreign currency for the Company''s operations.

The Company''s exposure to foreign currency risk at the end of the reporting period expressed in Indian Rupee, are as follows:

38 Capital Management

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operation through long term and short term borrowings from holding company and cash credit and other working capital facilities from the bankers. The management and Board of Directors monitor the return on capital.

(c) Others:

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

(ii) The quarterly returns and statement of current assets filled by the company with Banks are generally in agreement with the books of account.

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

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the period/year.

(v) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by

or on behalf of the company (Ultimate Beneficiaries) or

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

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by

or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

viii) The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

ix) There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013

43 These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its meeting held on 20th May, 2023.

44 The previous year''s figures have been regrouped / rearranged wherever necessary to make it comparable with the current year.

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Mar 31, 2018

(a) Holding Company

Honeyvick Enterprises Private Limited

(b) Key Managerial Personnel

Mr. Ashok R. Malhotra, Chairman & Managing Director

Mr. Pradip H. Gupta, Chief Financial Officer

Mr. Deepak R. Nagar, GM (Legal) & Company Secretary

(c) Whole-time Directors

Mr. Pradeep R. Sharma, Director (Operations)

Mr. Hanish A. Malhotra, Director (Marketing) (upto May 17, 2017)

(d) Non-whole-time Directors Mr. Amal Dutt Dhru

Mr. Nilesh B. Mehta

Mr. Mohanraj M. Singhi (upto July 08, 2017)

Mr. Milan P. Shah Ms. Suchita Shah

(e) Relative of Key Managerial Personnel

Mr. Vikas Malhotra, s/o Mr. Ashok Malhotra

(f) Post-employment Benefits Plans

PSL Employees Group Gratuity Scheme PSL Employees Superannuation Scheme

K. The Company has discharged all its liabilities towards the Secured Lenders of the Company as per the sanctionec modified Scheme of Compromise and/or Arrangement and orders of the Hon''ble High Court of Gujarat.

In compliance with order dated 27.10.2017 passed by the Hon''ble National Company Law Tribunal, Ahmedabad Bench, M/s. Asset Reconstruction Company (India) Limited (ARCIL) has issued its No Due Certificate to the Company and to the Debentures Trustees.

The Company is taking necessary steps for release of all underlying securities created under the Loan Agreement; executed with secured lenders and/or under the Scheme of Compromise and/or Arrangement as approved by the Hon''ble High Court of Gujarat including shares pledged by the guarantors.

L. The financial statements for the previous year ended March 31, 2017 prepared in accordance with accounting standards notified under Section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP) were jointly audited by the predecessor auditor and continuing auditor.

M. Previous year''s figures have been recast/ regrouped/reclassified wherever necessary to correspond with current year''s classification/disclosures.

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Mar 31, 2016

1) Freehold Land, Staff & Executive Building include shares of Rs.750/-(Previous year Rs.750/-) held in co-operative Societies , which are in the name of nominees of the Company.

The information has been given in respect of such suppliers to the extent they could be identified as ''micro, smal and medium enterprises'' on the basis of information available with the Company.

The remuneration to whole-time Directors has been paid in terms of approval of shareholders to the said appointments.

2) Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

3) Segment Disclosures :

The Company is engaged in a single segment of manufacture and sale of "Steel Products " in accordance with Accounting Standard (AS - 17). Accordingly primary and secondary reporting disclosure for business/geographical segment as envisage in AS-17 are not applicable to the company.

4) Retirement Benefits :

The table of retirement benefits as on 31st March, 2016 is as below.

Based on the favorable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (f) above therefore no provision against is considered.

5) Related Party Disclosures (As identified by the Management)

A. List of Related Parties :

i) Holding Company : Honeyvick Enterprises Private Limited

ii) Key Management Personnel : Mr. Ashok Malhotra - Chairman & Managing Director

Mr. Hanish Malhotra -Director (Marketing)

Mr. Pradeep Sharma - Director (Operations)

Mr. Pradip H.Gupta - Chief Financial Officer Mr. Deepak Nagar - G.M.Legal & Co.Secretary

B. Related Party /Key Management Personnel Transactions :

ii] Holding Company

Deposit received : Rs. 225,00,000 (Rs.235,00,000 )

Deposit repaid : Rs. Nil (Rs.235,00,000)

Interest : Rs. 3,12,250 (Rs. 27,65,918 )

ii) Key Management Personnel

Gross Remuneration : Rs. 249,15,443 (Rs.224,38,950)

Note: Figures in the brackets are for previous year.

6) Financial Restructuring :

The Company has discharged all its liabilities towards the Secured Lenders of the Company as per the sanctioned modified Scheme of Compromise and/or Arrangements and orders of the Hon''ble High Court of Gujarat.

The Company has received no due certificates from all the secured lenders covered under the Scheme except ARCIL, for which the company has moved an application under Section 392 of the erstwhile Companies Act, 1956 before the Hon''ble High Court of Gujarat, seeking directions for ARCIL to issue no due certificate to the company.

* Include Job work production 013 M.T. (Previous Year 2,633 M.T) Note: Figures in the bracket are for previous year.

7) Previous year''s figures have been recast/ regrouped/reclassified wherever necessary to correspond with current year''s classification/disclosures.

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Mar 31, 2015

1) Freehold Land, Staff & Executive Building include shares of Rs.750/-(Previous year Rs.750/-) held in co-operative Societies , which are in the name of nominees of the Company.

The information has been given in respect of such suppliers to the extent they could be identified as 'Micro, Small and Medium Enterprises' on the basis of information available with the company.

The remuneration to Managing Director has been paid in accordance with the approval of the Central Government. The Remuneration to the other whole-time Directors has been paid in terms of approval of shareholders to the said appointments.

2) Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

3) Pursuant to the provisions of the Companies Act, 2013, becoming effective from 01.04.2014, the Company has charged depreciation based on the specified useful life of Fixed Assets as per Schedule II to the Act. The written down value less residual value of its Fixed Assets amounting to Rs.79,29,100/- having Nil useful life has been adjusted against opening balance of retained earnings.

4) Segment Disclosures :

The Company is engaged in a single segment of manufacture and sale of "Steel Products" in accordance with Accounting Standard (AS-17). Accordingly primary and secondary reporting disclosure for business/geographical segment as envisage in AS-17 are not applicable to the Company.

5) Retirement Benefits :

The table of retirement benefits as on 31st March, 2015 is as below.

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (f) above therefore no provision against is considered.

*Owing to excess Plan Assets as compared to required Investment in terms of valuation report for Gratuity, no additional adjustment as mentioned above is made either in Profit and Loss Account or in Balance Sheet at the year end.

6) Related Party Disclosures (As identified by the Management)

A. List of Related Parties :

i) Associate Companies : Honeyvick Enterprises Private Limited

ii) Enterprise over which one of key : Amil Enterprises Private Limited Management Personnel exercises significant control iii) Key Management Personnel : Mr.Ashok Malhotra - Chairman & Managing Director

Mr.Hanish Malhotra - Director (Marketing) Mr.Pradeep Sharma - Director (Operations) Mr.Pradip H.Gupta - Chief Financial Officer (w.e.f. 14.11.2014) Mr.Deepak Nagar - GM (Legal) & Co.Secretary

B. Related Party /Key Management Personnel Transactions : i) Associates

Deposit received : Rs. 190,00,000 (Rs.185,00,000)

Deposit repaid : Rs. 190,00,000 (Rs.185,00,000)

Interest : Rs. 22,36,274 (Rs. 15,92,296)

ii) Enterprise over which one of key Management Personnel exercises significant control

Deposit received : Rs.45,00,000 (Rs.45,00,000)

Deposit repaid : Rs.45,00,000 (Rs.45,00,000)

Interest : Rs. 5,29,644 (Rs.3,47,671)

iii) Key Management Personnel

Gross Remuneration : Rs. 2,24,38,950 (Rs.2,01,40,446)

Note: Figures in the brackets are for previous year.

7) Financial Restructuring :

The Company has discharged all its liabilities towards the Secured Lenders of the Company as per the sanctioned modified Scheme of Compromise and/or Arrangements and orders of the Hon'ble High Court of Gujarat.

The Company has received no due certificates from all the secured lenders covered under the Scheme except ARCIL, for which the company has moved an application under section 392 of the erstwhile Companies Act, 1956 before the Hon'ble High Court of Gujarat, seeking directions for ARCIL to issue no due certificate to the company.

* Include Job work production 2,633 M.T. (Previous Year 3,175 M.T) Note: Figures in the bracket are for previous year.

8) Previous year's figures have been recast/ regrouped/reclassified wherever necessary to correspond with current year's classification/disclosures.

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Mar 31, 2014

1 Contingent Liabilities & Commitments not provided for :

Amount - Rupees

31.03.2014 31.03.2013

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances) 274,70,561 174,07,526

b) Letter of Credits Outstanding 1730,49,630 1873,33,632

c) Claims against Company not acknowledged as Debts 185,82,336 185,82,336

d) Disputed Excise, Custom, Service Tax and Gujarat VAT Liabilities 136,45,993 135,20,290

e) Disputed Income Tax Liabilities 148,76,029 148,76,029

f) Guarantee given to MGVCL by Company''s Banker 425,79,785 425,79,785

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above therefore no provision against is considered.

* Freehold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

* Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

* Segment Disclosures :

The Company is engaged in a single segment of manufacture and marketing of "Steel Products " in accordance with Accounting Standards (AS - 17).

* Financial Restructuring :

The Company has discharged all its liabilities towards the Secured Lenders of the Company as per the sanctioned modified Scheme of Compromise and/or Arrangement and orders of the Hon''ble High Court of Gujarat.

The Company has received no due certificates from all the secured lenders covered under the Scheme except Arcil, for which the company has moved an application under Section 392 of the Companies Act, 1956 before the Hon''ble High Court of Gujarat, seeking directions for Arcil to issue no due certificate to the company.

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Mar 31, 2013

1) Contingent Liabilities & Commitments not provided for :

Amount - Rupees

31.03.2013 31.03.2012

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances) 174,07,526 186,88,010

b) Letter of Credits Outstanding 1873,33,632 1465,22,599

c) Claims against Company not acknowledged as debts 185,82,336 185,82,336

d) Disputed Excise, Custom, Service Tax and Gujarat VAT Liabilities 135,20,290 126,34,028

e) Disputed Income Tax Liabilities 148,76,029 272,51,851

f) Guarantee given to MGVCL by Company`s Banker 425,79,785 346,17,067

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above, therefore, no provision against is considered.

2) Free-hold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

3) Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

4) Related Party Disclosures (As identified by the Management)

A. List of Related Parties

i) Associate : AMIL Enterprises Private Limited

: Honeyvick Enterprises Private Limited

ii) Key Management Personnel : Mr. Ashok Malhotra - Chairman & Managing Director

: Mr. Hanish Malhotra - Director (Marketing)

: Mr. Pradeep Sharma - Director (Operations)

iii) Relative of Key Management Personnel : Mr. Vikas Malhotra (Relative of Director)

B. Related Party /Key Management Personnel Transactions i] Associate

Deposit received : Rs.320,00,000 (Rs.197,00,000)

Deposit paid : Rs.320,00,000 (Rs.197,00,000)

Interest : Rs. 20,50,684 (Rs. 11,57,852)

ii) Key Management Personnel

Gross Remuneration : Rs. 198,25,434 (Rs.163,54,176)

iii) Relative of Key Management Personnel* :

Gross Remuneration : Rs. 4,88,500 (Rs.3,97,933)

*Employed for part of the year in both the years

Note: Figures in the brackets are for previous year.

5) Segment Disclosures :

The Company is engaged in a single segment of manufacture and marketing of "Steel Products " in accordance with Accounting Standards (AS - 17).

6) Financial Restructuring

The Existing Loans with secured lenders under the Scheme of Compromise and/or Arrangement as approved by the Hon`ble High Court of Gujarat have been duly settled and paid to all the secured lenders. The matter related to dissenting secured lender is pending before the Hon`ble High Court of Gujarat.

The security documents, in relation to creation of charge on the assets of the Company, duly executed by the company in favour of its Secured Lenders and Debenture Trustees, as stipulated under the said Scheme are continuing to remain in full force and effect.

7) Previous year''s figures have been recast/ regrouped/reclassified wherever necessary to correspond with current year''s classification/disclosures.

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Mar 31, 2012

1) Contingent Liabilities & Commitments not provided for: Amount - Rupees

31.03.2012 31.03.2011

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances) 186,88,010 83,84,036

b) Letter of Credits Outstanding 1465,22,599 1012,35,667

c) Claims against Company not acknowledged as debts 185,82,336 185,82,336

d) Disputed Excise, Custom & Service Tax Liabilities 126,34,028 190,59,341

e) Disputed Income Tax Liabilities 272,51,851 272,51,851

f) Guarantee given to M.G.V.C.L. by Company's Banker 346,17,067 346,17,067

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above therefore no provision against is considered.

2) Free-hold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

3) Balances of the most of the Debtors, Creditors and Loans of the Company are confirmed periodically.

4) Segment Disclosures:

The Company is engaged in a single segment of manufacture and marketing of "Steel Products " in accordance with Accounting Standards (AS - 17).

5) Financial Restructuring:

The Company has fully implemented the Scheme of Compromise and/or Arrangement as approved by Hon'ble High Court of Cuiarat. The matter related to dissenting creditor is nendine before the Hon'ble High Court of Guiarat.

6) The revised schedule VI has become effective from April 1 st, 2011 for the preparation of financial statements. This significantly impacted the disclosures and presentation made in the financial statements. Previous year's figures have been recast/ regrouped/reclassified wherever necessary to correspond with current year's classification/ disclosures.

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Mar 31, 2011

1) Micro, Small and Medium Enterprises Development Act, 2006 :

The information has been given in respect of such vendors to the extent they could be identified as 'micro, small and medium enterprises' on the basis of information available with the company.

2) (A) Managerial Remuneration :

Remuneration to the Managing Director and Whole time Directors has been paid in terms of approval of shareholders/ Central Government to the said appointments.

3) Contingent Liabilities not provided for :

Amount - Rs. in Lacs 31.03.2011 31.03.2010

a) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of Advances) 83.84 121.94

b) Letter of Credits Outstanding 1012.36 278.00

c) Claims against Company not acknowledged as debts 185.82 185.82

d) Disputed Excise, Custom & Service Tax Liabilities 190.59 187.02

e) Disputed Income Tax Liabilities 246.06 269.68

f) Guarantee given to MCVCL by Company's Banker 346.17 Nil

Based on the favourable decision in similar cases and in the opinion of lawyers, the Management believes that it has good cause in respect of all the items listed under (c) to (e) above therefore no provision against is considered.

4) Free-hold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

5) Balances of some of the Debtors, Creditors and Loans of the Company are subject to confirmation and Company is in the process of obtaining the same.

6) Related Party Disclosures (As identified by the Management)

A. List of Related Parties

i) Associate Companies : AMIL Enterprises Private Limited

: Honeyvick Enterprises Private Limited

ii) Key Management Personnel : Mr. Ashok Malhotra - Chairman & Managing Director

: Mr. Hanish Malhotra - Director (Marketing)

: Mr. Pradeep Sharma - Director (Operations)

iii) Relative of Key Management Personnel : Mr. Vikas Malhotra (Relative of Director) (up to 30.04.2010)

7) Segment Disclosures:

The Company is engaged in a single segment of manufacture and marketing of "Steel Products" in accordance with Accounting Standards (AS -17).

8) Financial Restructuring

The Company has fully implemented the Scheme of Compromise and/or Arrangement as approved by Hon'ble High Court of Gujarat.

The matter related to dissenting creditor is pending before the Hon'ble High Court of Gujarat.

9) Previous year's figures have been recast and regrouped wherever necessary to conform to current year's classification.

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Mar 31, 2010

1) Free-hold Land & Staff Executive Building include shares of Rs.750/- (Previous year Rs.750/-) held in Co-operative Societies, which are in the name of nominees of the Company.

2) Balances of some of the Debtors, Creditors and Loans of the Company are subject to confirmation and Company is in the process of obtaining the same.

3) Related Party Disclosures (As identified by the Management) A. List of Related Parties

i) Associate Companies

AMIL Enterprises Private Limited Honeyvick Enterprises Private Limited

ii) Key Management Personnel

Mr. Ashok Malhotra - Chairman & Managing Director Mr. Hanish Malhotra - Director (Marketing) Mr. Pradeep Sharma - Director (Operations)

iii) Relative of Key Management Personnel

Mr. Vikas Malhotra (Relative of Director)

B. Related Party /Key Management Personnel Transactions

i] Associate

Deposit received : Rs. Nil ( 75.00) lacs

Deposit paid : Rs. Nil (335.00) lacs

Interest : Rs. Nil ( 15.19 ) lacs

ii) Key Management Personnel

Gross Remuneration : Rs.161.04 (144.96) lacs

iii) Relative of Key Management Personnel :

Gross Remuneration : Rs. 4.54 (4.49) lacs

4) Segment Disclosures :

The Company is engaged in a single segment of manufacture and marketing of "Steel Products " in accordance with Accounting Standards (AS - 17).

5) Financial Restructuring

The Company has fully implemented the Scheme of Compromise and/or Arrangement as approved by Hon`ble High Court of Gujarat.

The matter related to dissenting creditor is pending before the Honble High Court of Gujarat.

6) Previous years figures have been recast and regrouped wherever necessary to conform to current years classification.