Notes to Accounts of Rajratan Global Wire Ltd.

Mar 31, 2025

1.9. Provisions, Contingent Liabilities & Contingent Assets and Commitments

i) Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, if it is probable that an outflow of resources embodying economic benefits will be required to settle the
obligation and a reliable estimate can be made of the amount of the obligation. Such provisions are determined
based on management estimate of the amount required to settle the obligation at the Balance Sheet date. When the
Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset
only when the reimbursement is certain. The expense relating to a provision is presented in the Statement of Profit
and Loss net of any reimbursement, if any.

ii) The amount recognised as a provision is the best estimate of the consideration required to settle the present

obligation at the balance sheet date, taking into account the risks and uncertainties surrounding the obligation.

iii) If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that

reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost.

iv) Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity
or a present obligation that arises from past events but is not recognized because; it is not probable that an outflow
of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation
cannot be measured with sufficient reliability.

v) A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by- the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The
Company does not recognize the contingent asset in its standalone financial statements since this may result in the
recognition of income that may never be realised.

vi) If it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in
the period in which the change occurs.

vii) Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

1.10. Income Taxes

The tax expense for the period comprises current and deferred tax.

Income Tax expense is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised

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

or equity respectively.

i) Current tax

Current tax is the amount of income taxes payable (recoverable) in respect of taxable profit (tax loss) for a period.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation

authorities, based on tax rates and laws that are enacted or substantively enacted by the end of the reporting period.

Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to set off the recognised
amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit for financial reporting purposes
at the reporting date. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the
period, in which, the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or
substantively enacted by the end of the reporting period. The carrying amount of deferred tax liabilities and assets are
reviewed at the end of each reporting period.

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off
current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes
levied by the same taxation authority on either the same taxable entity which intends either to settle current tax liabilities
and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which
significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off current tax assets against
current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same
taxation authority.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has
become probable that future taxable profits will allow the deferred tax asset to be recovered.

iii) Uncertain Tax Position

Accruals for uncertain tax positions require management to make judgments of potential exposures. Accruals for uncertain
tax positions are measured using either the most likely amount or the expected value amount depending on which
method the entity expects to better predict the resolution of the uncertainty. Tax benefits are not recognised unless the
management, based upon its interpretation of applicable laws and regulations and the expectation of how the tax authority
will resolve the matter, concludes that such benefits will be accepted by the authorities. Once considered probable of not
being accepted, management review each material tax benefit and reflects the effect of the uncertainty in determining the
related taxable amounts.

1.11. Foreign Currency Transactions

Transactions and balances

i) Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing
rates of exchange at the reporting date.

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

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

1.12. Employee Benefit Expense

i) Short-Term Employee Benefits

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

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave and sick/
contingency leave in the year the related service is rendered at the undiscounted amount of the benefits expected to be
paid in exchange for that service.

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term employee benefit.
The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of
the unused entitlement that has accumulated at the reporting date. The Company recognizes expected cost of short-term
employee benefit as an expense, when an employee renders the related service.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee
benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial
valuation using the projected unit credit method at the reporting date. Actuarial gains/ losses are immediately taken to the
statement of profit and loss and are not deferred. The obligations are presented as current liabilities in the balance sheet
if the entity does not have an unconditional right to defer the settlement for at least twelve months after the reporting date.

ii) Post-Employment Benefits
Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a
separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company''s contribution
is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the
related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the
contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution
already paid.

Defined Benefits Plans

The Company operates a defined benefit gratuity plan, which requires contributions to be made to a separately
administered fund.

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

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

The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the
employees. The gratuity fund has been approved by the Indian Income Tax authorities.

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

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in
net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest
on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit
to retained earnings through OCI in the period in which they occur.

Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognised in profit or loss on the earlier of:

¦ The date of the plan amendment or curtailment, and

¦ The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises
the following changes in the net defined benefit obligation as an expense in the Standalone statement of profit and loss:

¦ Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and

¦ Net interest expense or income.

1.13. Revenue from contract with customer

i) Sales of goods

The Company derives revenue primarily from sale of tyre bead wire and other ancillary products.

Revenue from contracts with customers is recognised when control of the goods is transferred to the customer at an amount
that reflects the consideration entitled in exchange for those goods. The Company is generally the principal in its revenue
arrangements as it typically controls the goods before transferring them to the customer and is exposed to inventory
and credit risks. Control is transferred upon shipment of goods to the customer or when the goods is made available to
the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks
of ownership or future obligations with respect to the goods shipped. The normal credit terms range from 0 to 120 days.

Revenue is stated net of goods and service tax and net of returns, chargebacks and rebates. These are calculated on the
basis of the specific terms in the individual contracts.

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for
transferring distinct goods to a customer as specified in the contract, excluding amounts collected on behalf of third parties
(for example taxes and duties collected on behalf of the government). Consideration is generally due upon satisfaction of
performance obligations and a receivable is recognised when it becomes unconditional.

The Company provides volume rebate to certain customers once the quantity of products purchased during the period
exceeds a threshold specified and also accrues discounts to certain customers based on customary business practices.
Consideration is determined based on its most likely amount.

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

ii) Interest Income

Interest income from a financial asset is recognised using effective interest method.

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Company
and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future
cash receipts through the expected life of the financial asset to that asset''s net carrying amount on initial recognition.

iii) Dividends

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

iv) Rental Income

Rental Income is recognised when the Company''s right to receive the payment has been established.

v) Export Incentive

Export incentives receivable are accounted for when the right to receive the credit is established and there is no significant
uncertainty regarding the ultimate collection of export proceeds.

vi) Other Operating Income
vi.a. Insurance Claims

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

vi.b. Sale of Scrap

Revenue from the sale of scrap is recognized at the point of sale when the significant risks and rewards of ownership
have transferred to the buyer. The sale proceeds are recorded under "Other Operating Income".

vii) Contract balances
Contract assets

A contract asset is the right to consideration in exchange for goods transferred to the customer. If the Company performs
by transferring goods to a customer before the customer pays consideration or before payment is due, a contract asset is
recognised for the earned consideration that is conditional.

Trade Receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the passage of
time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section (n)
(i) Financial instruments - initial recognition and subsequent measurement.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received
consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the
Company transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the
payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under
the contract.

Refund liabilities

A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and
is measured at the amount the Company ultimately expects it will have to return to the customer including volume rebates
and discounts. The Company updates its estimates of refund liabilities at the end of each reporting period.

viii) Costs to fulfil a contract i.e. freight, insurance and other selling expenses are recognised as an expense in the period in
which related revenue is recognised.

1.14. Impairment of non-financial assets

i) The Company assesses at each reporting date as to whether there is any indication that any property, plant and
equipment and intangible assets or group of assets, called Cash Generating Units (CGU) may be impaired. If any such
indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if
any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the
recoverable amount of the CGU to which the asset belongs.

ii) The goodwill on business combinations is tested for impairment annually.

iii) The recoverable amount of an asset or cash generating unit is the greater of its value in use and its fair value less
costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to
the asset or the cash-generating unit for which the estimates of future cash flows have not been adjusted.

iv) The carrying amounts of the Company''s non-financial assets are reviewed at each reporting date to determine
whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is
estimated in order to determine the extent of the impairment loss, if any.

v) An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds
its recoverable amount.

vi) The impairment loss recognised in prior accounting period is assessed at each reporting date for any indications that
the loss has decreased or no longer exists and is reversed if there has been a change in the estimate of recoverable
amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the
carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had
been recognised.

1.15. Financial Instruments

A contract is recognised as a financial instrument that gives rise to a financial asset of one entity and a financial liability
or equity instrument of another entity.

Financial assets and financial liabilities are recognised when an entity becomes a party to the contractual provisions of
the instrument.

i) Financial Assets

i.a. Initial recognition and measurement

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow
characteristics and the Company''s business model for managing them.

With the exception of trade receivables that do not contain a significant financing component or for which the
Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus,
in the case of a financial asset not at fair value through profit or loss, transaction costs.

Trade receivables that do not contain a significant financing component or for which the Company has applied the
practical expedient are measured at the transaction price determined under Ind AS 115. Refer to the accounting
policies in section (m) Revenue from contracts with customers.

Financial assets classified and measured at amortised cost are held within a business model with the objective to
hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair
value through OCI are held within a business model with the objective of both holding to collect contractual cash
flows and selling.

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

i.b. Subsequent measurement

For the purpose of subsequent measurement financial assets are classified into three categories:

¦ Financial assets at amortised cost (debt instruments)

¦ Financial assets at fair value through other comprehensive income . (FVTOCI)

¦ with recycling of cumulative gains and losses (debt instruments)

¦ with no recycling of cumulative gains and losses upon . derecognition (equity instruments)

¦ Financial assets at fair value through profit or loss

i.c. Financial assets carried at amortised cost

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the
asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective
interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition
and fees or costs that are an integral part of the EIR.

Impairment of investments

The Company reviews it carrying value of investments carried at cost annually, or more frequently when there is
indication for impairment. If the recoverable amount is less than it carrying amount, the impairment loss is recorded
in the Statement of Profit and Loss.

i.d. Financial assets at fair value through other comprehensive income (FVTOCI) and fair value through profit or loss
(FVTPL)

During the reporting period, there are no instruments under Fair Value through Other Comprehensive Income and
Fair Value through Profit or Loss. Hence, accounting policy regarding the same is not given.

i.e. Derecognition

A financial asset is primarily derecognised (i.e., removed from the Company''s balance sheet) when:

¦ The contractual rights to receive cash flows from the asset have expired, or

¦ The Company has transferred its rights to receive contractual cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through''
arrangement, and either (a) the Company has transferred substantially all the risks and rewards of the asset,
or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but
has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum
of the consideration received and receivable recognised in profit or loss.

i.f. Investment in the nature of equity in subsidiaries

A subsidiary is an entity that is controlled by another entity.

The Company''s investments in its subsidiaries are accounted at cost less impairment.

The Company has elected to measure investment in subsidiary at cost in the separate financial statements in
accordance with the option available in Ind AS 27, ''Separate Financial Statements''. On the date of transition, the
carrying amount has been considered as deemed cost.

i. g. Impairment of financial assets

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

Expected Credit loss is the difference between all contractual cash flows that are due to the Company in accordance
with the contract and all the cash flows that the Company expects to receive (i.e. all cash shortfalls). The Company
estimates cash flows by considering all contractual terms of the financial instrument.

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit
risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible
within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant
increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the
remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore,
the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs
at each reporting date. The Company has established a provision matrix that is based on its historical credit loss
experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

ii. Financial Liabilities

Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an
equity instrument.

ii. a. Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all
of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct
issue costs.

ii.b. Financial liabilities

ii.b.1 Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans
and borrowings, payables as appropriate.

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

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts
and financial guarantee contracts.

ii.b.2 Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified as:

¦ Financial liabilities at amortised cost (loans and borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings
are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit
or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit
and loss.

For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts
approximate fair value due to the short maturity of these.

ii) Effective interest method

The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating
interest income over the relevant year. The effective interest rate is the rate that exactly discounts estimated future
cash receipts through the expected life of the debt instrument, or, where appropriate, a shorter year, to the net
carrying amount on initial recognition.

ii.b.4 Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of
the original liability and the recognition of a new liability. The difference between the carrying amount of the financial
liability derecognised and the consideration paid and payable is recognised in profit or loss.

ii.c. Financial Guarantee Contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a
loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt
instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction
costs that are directly attributable to the issuance of the guarantee.

Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment
requirements of Ind AS 109 and the amount recognised less, when appropriate, the cumulative amount of income
recognised in accordance with the principles of Ind AS 115.

ii. d. Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Standalone balance sheet if
there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a
net basis, to realise the assets and settle the liabilities simultaneously.

iii. Derivative financial instruments and Hedge Accounting

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

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

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

iv. a. Cash Flow Hedge

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

iv.b. Fair Value Hedge

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

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

o) Current and Non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current / non-current classification.

ii) An asset is treated as current when it is:

¦ Expected to be realised or intended to be sold or consumed in normal operating cycle;

¦ Held primarily for the purpose of trading;

¦ Expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

iii) A liability is current when:

¦ It is expected to be settled in normal operating cycle;

¦ It is held primarily for the purpose of trading;

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

¦ There is no unconditional right to defer the settlement of the liability for at least twelve months after the

reporting period.

The Company classifies all other liabilities as non-current.

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

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash
equivalents. The Company has identified twelve months as its operating cycle.

p) Earnings Per Share

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

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

iv) The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods
presented for any share splits and bonus shares issues including for changes effected prior to the approval of the
financial statements by the Board of Directors.

q) Dividend

The Company recognises a liability to pay dividend to equity holders of the Company when the distribution is authorised,
and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

r) Cash and Cash equivalents

ii) Cash and Cash equivalents in the balance sheet comprise cash at banks and on hand, short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash
and which are subject to an insignificant risk of changes in value.

iii) Statement of Cash Flows is prepared in accordance with the Indirect Method prescribed in the Indian Accounting
Standard-7 ''Statement of Cash Flows''.

s) Operating Segments

The operating segments are identified on the basis of business activities whose operating results are regularly reviewed
by the Chief Operating Decision Maker of the Company and for which the discrete financial information is available. The
Company has only one reportable operating segment i.e. "Tyre Bead Wire".

The Board of directors of the Company has been identified as the Chief Operating Decision Maker which reviews and
assesses the financial performance and makes the strategic decisions.

t) Exceptional items

Exceptional items refer to items of income or expense, including tax items, within the statement of profit and loss from
ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is
considered necessary to explain the performance of the Company.

u) Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received, ultimate collection
of the grant/subsidy is reasonably certain and all attached conditions will be complied with. When the grant relates to
an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it
is intended to compensate, are expensed. When the grant relates to an asset, it is recognised as reduced depreciation
expense in equal amounts over the expected useful life of the related asset.

When the company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts
and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset
i.e. by equal annual instalments.

The government grants in the form of subsidy are presented in the balance sheet by deducting it from the carrying amount
of the eligible assets on a pro rata basis. The grant is recognised in the Statement of Profit and Loss over the life of a
depreciable asset as a reduced depreciation expense.

v) Acceptances

The Company enters into deferred payment arrangements (acceptances) whereby overseas lenders such as banks
and other financial institutions make payments to supplier''s banks for import of raw materials and property, plant and
equipment. The banks and financial institutions are subsequently repaid by the Company at a later date

providing working capital benefits. These arrangements are in the nature of credit extended in normal operating cycle and
these arrangements for raw materials are recognised as Acceptances and arrangements for property, plant and equipment
are recognised as borrowings. Interest borne by the company on such arrangements is accounted as finance cost. Other
financial liabilities are subsequently measured at amortised cost using the effective interest method. Payments made by
banks and financial institutions to the operating vendors are treated as a non-cash item and settlement of operational
acceptances by the Company is treated as cash flows from operating activity reflecting the substance of the payment.

2) New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2024 dated
12^th August, 2024 notifying Ind AS 117 - Insurance Contracts. The company does not have any insurance contracts to which
Ind AS 117 will apply..

3) Critical Accounting Judgments and key sources of estimation uncertainty

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

i) Key sources of estimation uncertainty

a) Revenue Recognition

The Company''s contracts with customers include promises to transfer goods to the customers. Judgement is required to
determine the transaction price for the contract.

The transaction price could be either a fixed amount of customer consideration or variable consideration with elements
such as schemes, incentives and cash discounts, among others. The estimated amount of variable consideration is
adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of
cumulative revenue recognised will not occur and is reassessed at the end of each year.

Estimates of rebates and discounts are sensitive to changes in circumstances and the Company''s past experience
regarding returns and rebate entitlements may not be representative of customers'' actual returns and rebate entitlements
in the future.

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

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking
into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets
annually in order to determine the amount of depreciation / amortisation to be recorded at each year end.

The useful lives and residual values are based on the Company''s historical experience with similar assets and take into
account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are
significant changes from previous estimates.

c) Recoverability of trade receivable

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

d) Provisions

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

e) Impairment of non-financial assets

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

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

f) Impairment of financial assets

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

g) Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Potential liabilities that are possible but not probable of crystalising or are very difficult to quantify reliably are treated
as contingent liabilities. Such liabilities are disclosed in the notes but are not recognised. The cases which have been
determined as remote by the Company are not disclosed.

Contingent assets are neither recognised nor disclosed in the financial statements unless when an inflow of economic
benefits is probable.

ii) Critical accounting judgements

a. Judgements made for Chennai Plant

The company has transferred a class of its assets previously classified under Capital Work in Progress (CWIP) to Property,
Plant, and Equipment (PPE). The determination of which assets are considered ready for use is made by management and
is a critical accounting judgement

5. Property, Plant and Equipment as at March 31,2025 Contd.

5.1 Property, Plant and Equipment are subject to charge to secure the Company''s borrowings as mentioned in Note 21.1.

5.2 During the year, the Green Field Project of the Company at Chennai was commissioned on 7^th August 2024. The plant and
machines which were technical ready in all respect for their intended use have been capitalised and those which are under
installation or testing continue to be classified as capital work in progress. The items of Property, Plant & Equipment
commissioned have been capitalised including proportionate direct costs and borrowing cost incurred till that date.

5.3 The amount of borrowing cost capitalised during the year ended March 31, 2025 was INR 1,336 Lakhs (Prevuious year: Nil)
for Green Field Project at Chennai on account of capacity expansion of plant. The rate used to determine the amount of
borrowing costs eligible for capitalisation is 8.5%, which is the effective interest rate of the borrowing.

5.4 The amount of expenditures recognised in the carrying amount of Property, Plant and Equipment in the course of its
construction is Rs. 752 Lakh (Previous Year Nil) for Green Field Project at Chennai .

5.5 The amount of contractual commitments for acquisition of Property, Plant and Equipment is INR 5,821 Lakh {Including 821
Lakh for Green Field Project at Chennai} (Previous Year INR 3,112 Lakhs {Including 3,058 Lakh for Green Field Project at
Chennai}).

5.6 The aggregate depreciation has been included under Depreciation and Amortisation Expense in the Statement of Profit and
Loss.(Refer Note 36)

5.7 Freehold land located at Survey no.124/5;126;149/1;150;151/2; Dhannad, Dist:Dhar, Madhya Pradesh, admeasuring 27,890
Sq. Mtr. (Cost INR 21 Lakh) was revalued to INR 433 Lakhs on the date of transition i.e. April 01, 2016 and has been
considered as the deemed cost in accordance with Para D5 of Ind AS 101- First-time Adoption.

5.8 On the date of transition to IND AS i.e. on 1^st April 2016, the Company had exercised the option available in Para D7AA of Ind
AS 101- First-time Adoption. Accordingly, the written down value as on April 01, 2016 was considered as the Gross Block, as
per the following details:-

5.9 Change in accounting estimates

(1) The management performed an operational review of its plant during the financial year 2023-2024. As a result, the
useful life of assets has been considered as higher than the life prescribed by Schedule II on account of proper use,
regular maintenance undertaken by the Company and the condition of the assets. The effect of this change on actual
and expected depreciation expense, is decrease in depreciation charge in financial year 2023-2024 by INR 61.29 Lakhs.

(2) The amount of the effect in future periods is not disclosed because estimating it is impracticable.

13.1 Inventories are valued at cost or net realisable value whichever is lower. The cost formulas used are Weighted Average
Cost in case of Raw Material (Wire Rods) and First-in First Out (''FIFO'') in case of Ancillary Raw Material and Stores &
Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently
recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their
present location and condition.

13.2 Carrying amount of inventory hypothecated to secure working capital facilities amounting to INR 6,978 Lakhs (previous
year INR 3,922 Lakhs)

13.3 The details of charge created on stocks, book debts and other current assets are as per Note 24.1.

13.4 Value of inventories above is stated after write down to net realisable value of Rs. 18 Lakhs (previous year Nil). These were
recognised as an expense during the year and included in changes in inventories of finished goods, work-in-progress and
stock-in-trade.

19. Equity Share Capital Contd.

19.4 Mr. Sunil Chordia and his family along with family trusts and two Companies namely Rajratan Investments Private Limited
(formerly Rajratan Investment Limited) and Rajratan Resources Private Limited hold 65.14% (Previous Year 65.14%) of the
paid up share capital and have control over the reporting entity.

19.5 Ag reegate number and class of shares alloted as fully paid-up by way of bonus shares

The Company has issued 58,02,400 equity shares as fully paid bonus shares in the ratio of 4:3 (i.e. four bonus shares of INR
10/- each for three equity shares of INR 10/- each) to every sharehoder holding equity share on September 14, 2019.

19.6 Rights, Preference and Restrictions attached to equity shares:

Equity Shares

Voting

The Company has only one class of equity shares having a par value of INR 2/- per share. Each holder of equity shares is
entitled to one vote per share.

Dividends

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject
to the approval by the shareholders of the company in the ensuing Annual General Meeting. The distribution will be in
proportion to the number of equity shares held by the shareholders.

The Board of Directors have proposed Dividend of INR 2 per share for the Financial Year 2024-25.

Liquidation

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after
distribution of all preferential amounts, in proportion to their shareholding.

20. Other equity Contd.

Nature and purpose of each reserve

20.1 Securities Premium

Where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of
the premium received on those shares is transferred to "Securities Premium Account" and the utilization thereof is in
accordance with the provisions of Section 52 of the Companies Act, 2013.

20.2 General Reserve

The General Reserves have been created out of retained earnings of the Company and are available for any purpose.

20.3 Retained Earnings

The balance in the Retained Earings represents the accumalted profit after pay

---

Mar 31, 2024

i) Provisions, Contingent Liabilities & Contingent Assets and Commitments

i) Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, if it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Such provisions are determined based on management estimate of the amount required to settle the obligation at the Balance Sheet date. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset only when the reimbursement is certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any reimbursement, if any.

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

iii) Contingent liability is a possible obligation arising from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity or a present obligation that arises from past events but is not recognized because; it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or the amount of the obligation cannot be measured with sufficient reliability.

iv) A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by- the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the entity. The Company does not recognize the contingent asset in its standalone financial statements since this may result in the recognition of income that may never be realised.

v) If it is virtually certain that an inflow of economic benefits will arise, the asset and related income are recognised in the period in which the change occurs.

vi) Provisions, contingent liabilities and contingent assets are reviewed at each reporting date.

j) Income Taxes

The tax expense for the period comprises current and deferred tax.

Income Tax expense is recognised in Statement of Profit and Loss, except to the extent that it relates to items recognised in the other comprehensive income or in equity. In which case, the tax is also recognised in other comprehensive income or equity respectively.

i) Current tax

Current tax is the amount of income taxes payable (recoverable) in respect of taxable profit (tax loss) for a period.

Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted by the end of the reporting period.

Current tax assets and tax liabilities are offset where the Company has a legally enforceable right to set off the recognised amounts and intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

ii) Deferred tax

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

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

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity which intends either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

Withholding tax arising out of payment of dividends to shareholders under the Indian Income tax regulations is not considered as tax expense for the Company and all such taxes are recognised in the statement of changes in equity as part of the associated dividend payment.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to set off current tax assets against current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

iii) Uncertain Tax Position

Accruals for uncertain tax positions require management to make judgments of potential exposures. Accruals for uncertain tax positions are measured using either the most likely amount or the expected value amount depending on which method the entity expects to better predict the resolution of the uncertainty. Tax benefits are not recognised unless the management based upon its interpretation of applicable laws and regulations and the expectation of how the tax authority will resolve the matter concludes that such benefits will be accepted by the authorities. Once considered probable of not being accepted, management review each material tax benefit and reflects the effect of the uncertainty in determining the related taxable amounts.

k) Foreign Currency Transactions Transactions and balances

i) Transactions in foreign currencies are initially recorded at the exchange rate prevailing on the date of transaction.

Monetary assets and liabilities denominated in foreign currencies are translated at the functional currency closing rates of exchange at the reporting date.

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

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

l) Employee Benefit Expense

i) Short-Term Employee Benefits

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

Accumulated leave, which is expected to be utilised within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. The Company recognizes expected cost of short-term employee benefit as an expense, when an employee renders the related service.

The Company treats accumulated leave expected to be carried forward beyond twelve months, as long-term employee benefit for measurement purposes. Such long-term compensated absences are provided for based on the actuarial valuation using the projected unit credit method at the reporting date. Actuarial gains/ losses are immediately taken to the statement of profit and loss and are not deferred. The obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer the settlement for at least twelve months after the reporting date.

ii) Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a post-employment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund. The Company''s contribution is recognised as an expense in the Statement of Profit and Loss during the period in which the employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognized as a liability after deducting the contribution already paid.

Defined Benefits Plans

The Company operates a defined benefit gratuity plan, which requires contributions to be made to a separately administered fund.

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

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

The gratuity liability amount is contributed to the approved gratuity fund formed exclusively for gratuity payment to the employees. The gratuity fund has been approved by respective Indian Income Tax authorities.

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

Remeasurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they occur.

Remeasurements are not reclassified to profit or loss in subsequent periods.

Past service costs are recognised in profit or loss on the earlier of:

¦ The date of the plan amendment or curtailment, and

¦ The date that the Company recognises related restructuring costs.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company recognises the following changes in the net defined benefit obligation as an expense in the Standalone statement of profit and loss:

¦ Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine settlements; and

¦ Net interest expense or income.

m) Revenue from contract with customer

i) Sales of goods

The Company derives revenue primarily from sale of tyre bead wire and other ancillary products.

Revenue from contracts with customers is recognised when control of the goods is transferred to the customer at an amount that reflects the consideration entitled in exchange for those goods. The Company is generally the principal in its revenue arrangements as it typically controls the goods before transferring them to the customer and is exposed to inventory and credit risks. Control is transferred upon shipment of goods to the customer or when the goods is made available to the customer, provided transfer of title to the customer occurs and the Company has not retained any significant risks of ownership or future obligations with respect to the goods shipped. The normal credit term is 90 days upon delivery.

Revenue is stated net of goods and service tax and net of returns, chargebacks and rebates. These are calculated on the basis of the specific terms in the individual contracts.

Revenue is measured at the amount of consideration which the Company expects to be entitled to in exchange for transferring distinct goods to a customer as specified in the contract, excluding amounts collected on behalf of third parties (for example taxes and duties collected on behalf of the government). Consideration is generally due upon satisfaction of performance obligations and a receivable is recognised when it becomes unconditional.

The Company provides volume rebate to certain customers once the quantity of products purchased during the period exceeds a threshold specified and also accrues discounts to certain customers based on customary business practices. Consideration is determined based on its most likely amount.

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

ii) Interest Income

Interest income from a financial asset is recognised using effective interest method.

iii) Dividends

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

iv) Rental Income

Rental Income is recognised when the Company''s right to receive the payment has been established.

v) Insurance Claims

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

vi) Other Operating Income

Export incentives receivable are accounted for when the right to receive the credit is established and there is no significant uncertainty regarding the ultimate collection of export proceeds.

vii) Contract balances Contract assets

A contract asset is the right to consideration in exchange for goods transferred to the customer. If the Company performs by transferring goods to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned consideration that is conditional.

Trade Receivables

A receivable represents the Company''s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before payment of the consideration is due). Refer to accounting policies of financial assets in section (n)(i) Financial instruments - initial recognition and subsequent measurement.

Contract Liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made, or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract.

viii) Costs to fulfil a contract i.e. freight, insurance and other selling expenses are recognised as an expense in the period in which related revenue is recognised.

n) Financial Instruments

A contract is recognised as a financial instrument that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

i) Financial Assets

Initial recognition and measurement

The classification of financial assets at initial recognition depends on the financial asset''s contractual cash flow characteristics and the Company''s business model for managing them.

With the exception of trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient, the Company initially measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs.

Trade receivables that do not contain a significant financing component or for which the Company has applied the practical expedient are measured at the transaction price determined under Ind AS 115. Refer to the accounting policies in section (m) Revenue from contracts with customers.

Financial assets classified and measured at amortised cost are held within a business model with the objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows and selling.

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

Subsequent measurement

For the purpose of subsequent measurement financial assets are classified into three categories:

¦ Financial assets at amortised cost (debt instruments)

¦ Financial assets at fair value through other comprehensive income (FVTOCI)

» with recycling of cumulative gains and losses (debt instruments)

» with no recycling of cumulative gains and losses upon derecognition (equity instruments)

¦ Financial assets at fair value through profit or loss

Financial assets carried at amortised cost

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order to collect contractual cash flows and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR.

Impairment of investments

The Company reviews its carrying value of investments carried at cost annually, or more frequently when there is indication for impairment. If the recoverable amount is less than its carrying amount, the impairment loss is recorded in the Statement of Profit and Loss.

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

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Financial assets included within the FVTOCI category are measured initially as well as at each reporting date at fair value. Fair value movements are recognised in the other comprehensive income (OCI). However, the Company recognises interest income, impairment losses & reversals and foreign exchange gain or loss in the profit or loss. On derecognition of the asset, cumulative gain or loss previously recognised in OCI is reclassified from the equity to profit or loss. Interest earned whilst holding FVTOCI instrument is reported as interest income using the EIR method.

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

A ''financial asset'' is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial assets, and

b) The asset''s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. For debt instruments, at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals are recognised in the profit or loss and computed in the same manner as for financial assets measured at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value changes recognised in OCI is reclassified from the equity to profit or loss.

Financial assets designated at fair value through OCI (equity instruments)

Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated at fair value through OCI when they meet the definition of equity under Ind AS 32 Financial Instruments: Presentation and are not held for trading. The classification is determined on an instrument-by-instrument basis. Equity instruments which are held for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are classified as at FVTPL.

Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the statement of profit and loss when the right of payment has been established, except when the Company benefits from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments designated at fair value through OCI are not subject to impairment assessment.

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

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

Financial assets included within the fair value through profit or loss category are measured at fair value with all the changes in the profit or loss.

During the reporting period, there are no instruments under Fair Value through Other Comprehensive Income and Fair Value through Profit or Loss.

Derecognition

A financial asset is primarily derecognised (i.e., removed from the Company''s balance sheet) when:

¦ The contractual rights to receive cash flows from the asset have expired, or

¦ The Company has transferred its rights to receive contractual cash flows from the asset or has assumed an obligation to pay the received cash flows in full without material delay to a third party under a ''pass-through'' arrangement, and either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control of the asset.

On derecognition of a financial asset in its entirety, the difference between the asset''s carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognised in OCI and accumulated in equity is recognised in profit or loss if such gain or loss would have otherwise been recognised in profit or loss on disposal of that financial asset.

ii) Investment in the nature of equity in subsidiaries

A subsidiary is an entity that is controlled by another entity.

The Company''s investments in its subsidiary is accounted at cost less impairment.

The Company has elected to measure investment in subsidiary at cost in the separate financial statements in accordance with the option available in Ind AS 27, ''Separate Financial Statements''. On the date of transition, the carrying amount has been considered as deemed cost. Impairment policy applicable on such investments is explained in Note 2(o).

iii) Impairment of financial assets

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

ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next 12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the timing of the default (a lifetime ECL).

For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward-looking factors specific to the debtors and the economic environment.

iv) Financial Liabilities Classification as debt or equity

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and borrowings, payables as appropriate.

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

The Company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts and financial guarantee contracts.

Subsequent measurement

For purposes of subsequent measurement, financial liabilities are classified as:

¦ Financial liabilities at amortised cost (loans and borrowings)

This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair value due to the short maturity of these.

Financial Guarantee Contracts

Financial guarantee contracts are those contracts that require a payment to be made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for transaction costs that are directly attributable to the issuance of the guarantee.

Subsequently, the liability is measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognised less, when appropriate, the cumulative amount of income recognised in accordance with the principles of Ind AS 115.

Derecognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability derecognised and the consideration paid and payable is recognised in profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the Standalone balance sheet if there is a currently enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets and settle the liabilities simultaneously.

v) Derivative financial instruments and Hedge Accounting

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

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

vi) Hedges that meet the criteria for hedge accounting are accounted for as follows Cash Flow Hedge

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

Fair Value Hedge

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

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

o) Impairment of non-financial assets

i) The Company assesses at each reporting date as to whether there is any indication that any property, plant and equipment and intangible assets or group of assets, called Cash Generating Units (CGU) may be impaired. If any such indication exists the recoverable amount of an asset or CGU is estimated to determine the extent of impairment, if any. When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the CGU to which the asset belongs.

ii) The goodwill on business combinations is tested for impairment annually.

iii) The recoverable amount of an asset or cash generating unit is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset or the cash-generating unit for which the estimates of future cash flows have not been adjusted.

iv) The carrying amounts of the Company''s non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s recoverable amount is estimated in order to determine the extent of the impairment loss, if any.

v) An impairment loss is recognised in the Statement of Profit and Loss to the extent, asset''s carrying amount exceeds its recoverable amount.

vi) The impairment loss recognised in prior accounting period is assessed at each reporting date for any indications that the loss has decreased or no longer exists and is reversed if there has been a change in the estimate of recoverable amount. An impairment loss is reversed only to the extent that the asset''s carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised.

p) Current and Non-current classification

The Company presents assets and liabilities in the Balance Sheet based on current / non-current classification.

i) An asset is treated as current when it is:

¦ Expected to be realised or intended to be sold or consumed in normal operating cycle;

¦ Held primarily for the purpose of trading;

¦ Expected to be realised within twelve months after the reporting period, or

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

All other assets are classified as non-current.

ii) A liability is current when:

¦ It is expected to be settled in normal operating cycle;

¦ It is held primarily for the purpose of trading;

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

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

The Company classifies all other liabilities as non-current.

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

The operating cycle is the time between the acquisition of assets for processing and their realisation in cash and cash equivalents. The Company has identified twelve months as its operating cycle.

q) Earnings Per Share

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

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

iii) The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

r) Dividend

The Company recognises a liability to pay dividend to equity holders of the Company when the distribution is authorised, and the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

s) Cash and Cash equivalents

i) Cash and Cash equivalents in the balance sheet comprise cash at banks and on hand, short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value.

ii) Statement of Cash Flows is prepared in accordance with the Indirect Method prescribed in the Indian Accounting Standard-7 ''Statement of Cash Flows''.

t) Operating Segments

The operating segments are identified on the basis of business activities whose operating results are regularly reviewed by the Chief Operating Decision Maker of the Company and for which the discrete financial information is available. The Company has only one reportable operating segment i.e “Tyre Bead Wire”.

u) Exceptional items

Exceptional items refer to items of income or expense, including tax items, within the statement of profit and loss from ordinary activities which are non-recurring and are of such size, nature or incidence that their separate disclosure is considered necessary to explain the performance of the Company.

3) New and amended standards

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31,2023 to amend the following Ind AS which are effective for annual periods beginning on or after April 01,2023. The Company applied these amendments for the first-time during the year.

i) Definition of Accounting Estimates - Amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates.

The amendments had no impact on the Company''s standalone financial statements.

ii) Disclosure of Accounting Policies - Amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ''significant'' accounting policies with a requirement to disclose their ''material'' accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures.

The amendments have had an impact on the Company''s disclosures of accounting policies, but not on the measurement, recognition or presentation of any items in the Company''s financial statements.

iii) Deferred Tax related to Assets and Liabilities arising from a Single Transaction - Amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences such as leases.

The amendments had no impact on the Company''s standalone financial statements.

iv) Apart from these, consequential amendments and editorials have been made to other Ind AS like Ind AS 101, Ind AS 102, Ind AS 103, Ind AS 107, Ind AS 109, Ind AS 115 and Ind AS 34.

4) Critical Accounting Judgments and key sources of estimation uncertainty

The preparation of the financial statements in conformity with the Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities and the accompanying disclosures as at date of the financial statements and the reported amounts of the revenues and expenses for the years presented. The estimates and

associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates under different assumptions and conditions. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

a) Revenue Recognition

The Company''s contracts with customers include promises to transfer goods to the customers. Judgement is required to determine the transaction price for the contract.

The transaction price could be either a fixed amount of customer consideration or variable consideration with elements such as schemes, incentives and cash discounts, among others. The estimated amount of variable consideration is adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur and is reassessed at the end of each year.

Estimates of rebates and discounts are sensitive to changes in circumstances and the Company''s past experience regarding returns and rebate entitlements may not be representative of customers'' actual returns and rebate entitlements in the future.

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

Property, plant and equipment / intangible assets are depreciated / amortised over their estimated useful lives, after taking into account estimated residual value. Management reviews the estimated useful lives and residual values of the assets annually in order to determine the amount of depreciation / amortisation to be recorded at each year end.

The useful lives and residual values are based on the Company''s historical experience with similar assets and take into account anticipated technological changes. The depreciation / amortisation for future periods is revised if there are significant changes from previous estimates.

c) Recoverability of trade receivable

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

d) Provisions

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

e) Impairment of non-financial assets

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

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

f) Impairment of financial assets

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

5 Property, Plant and Equipment as at March 31,2024 (Contd.)

5.1 Property, Plant and Equipment are subject to charge to secure the Company''s borrowings as mentioned in Note 21.1.

5.2 The amount of borrowing cost capitalised during the year ended March 31,2024 was INR 631 Lakh for Green Field Project at Chennai (for the year March 31,2023: INR 302 Lakh { for Green Field Project at Chennai}) on account of capacity expansion of plant .

5.3 The rate used to determine the amount of borrowing costs eligible for capitalisation was 8.50% p.a. which is the effective interest rate of the borrowing.

5.4 The amount of expenditures recognised in the carrying amount of Property, Plant and Equipment in the course of its construction is Rs.354 Lakh (for Green Field Project at Chennai) (Previous Year INR 294 Lakh {including INR 257 Lakh for Green Field Project at Chennai}).

5.5 The amount of contractual commitments for acquisition of Property, Plant and Equipment is INR 3,112 Lakh {Including 3,058 Lakh for Green Field Project at Chennai} (Previous Year INR 8,760 Lakhs {Including 8,556 Lakh for Green Field Project at Chennai}).

5.6 The aggregate depreciation has been included under Depreciation and Amortisation Expense in the Statement of Profit and Loss.(Refer Note 36)

5.7 Freehold land located at Survey no.124/5;126;149/1;150;151/2; Dhannad, Dist:Dhar, Madhya Pradesh, admeasuring 27,890 Sq. Mtr. (Cost INR 21 Lakh) was revalued to INR 433 Lakhs on the date of transition i.e. April 01,2016 and has been considered as the deemed cost in accordance with Para D5 of Ind AS 101- First-time Adoption.

5.8 On the date of transition to IND AS i.e. on 1^st April 2016, the Company had exercised the option available in Para D7AA of Ind AS 101- First-time Adoption. Accordingly, the written down value as on April 01,2016 was considered as the Gross Block, as per the following details:-

21 Borrowings (Non-current) (Contd.)

21.1 Security:

A) On the Property, Plant and Equipment at Pithampur the following charges have been created:

1 State Bank Of India

1^st Charge for its term loans and working capital of INR 5,766 Lakhs.

2 HDFC Bank Limited

2^nd paripassu charge over entire fixed asset (immovable and movable) and 2^nd paripassu charge over current asset of the company for term Loan of INR 1,674 Lakhs on reciprocal basis.

1^st charge over fixed asset (movable and immovable) of the Company and 2^nd paripassu charge over current asset of the company for your TL limit of INR 1,718 Lakhs capex at Pithampur on reciprocal basis.

2^nd paripassu charge over entire fixed asset (immovable and movable) and 2^nd paripassu charge over current asset of the company for ECLGS term Loan of INR 1,050 Lakhs on reciprocal basis.

3 CITI Bank N.A.

1^st charge over fixed asset (movable and immovable) of the Company and 2^nd paripassu charge over current asset of the company for your TL limit of INR 1,000 Lakhs capex at Pithampur on reciprocal basis.

B) On the Property, Plant and Equipment at Chennai following charges have been created:

1 Kotak Mahindra Bank Limited

For Term Loan of Rs.2,500 Lakhs

2^nd paripassu hypothecation charge to be shared with HDFC Bank on all existing and future current assets of the company at Chennai Unit.

1^st paripassu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable Fixed Assets of the Company at Chennai Unit.

1^st pari passu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the Company.

2 HDFC Bank Limited

For Term Loan of Rs.7,500 Lakhs & Rs.3,500 Lakhs

2^nd paripassu hypothecation charge to be shared with Kotak Mahindra Bank Ltd. on all existing and future current assets of the Company at Chennai Unit.

1^st paripassu hypothecation charge to be shared with Kotak Mahindra Bank Ltd. on all existing and future Moveable Fixed Assets of the Borrower at Chennai Unit.

1^st charge of HDFC Bank on paripassu basis with Kotak Bank by way of equitable mortgage on industrial factory land and building proposed to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu

21.2 Foreign Currency Loan

During the financial year 2023-24, there are no foreign currency loan.

In the financial year 2022-23, Part of Term Loan from State Bank of India was converted into a foreign currency loan of USD 7.20 Lakh on September 07, 2022 and the said foreign currency loan was converted into Indian Currency on March 07, 2023. The said loan was hedged and premium paid for the year is charged to Statement of Profit & Loss.

24 Borrowings (Current) (Contd.)

24.1 Security:

A) On the Property, Plant & Equipment and Current Assets at Pithampur

1 State Bank of India

1^st Charge for its term loans and working capital of INR 5,766 Lakhs.

2 HDFC Bank Limited

1^st paripasu charge over entire current assets (present & future) of the company and 2^nd parripassu charge over fixed assets of the Company for INR 5,700 Lakhs for its working capital facilities.

3 Citi Bank NA

1^st paripassu charge over entire current asset (present & future) of the Company and 2^nd paripassu charge over immovable property and fixed assets of the company for INR 2500 Lakhs for its working capital facilities on reciprocal basis.

2^nd paripassu charge over immovable property and fixed assets of the company for INR 1500 Lakhs for its SBLC facilities on reciprocal basis.

4 ICICI Bank Limited

1^st paripassu charge over entire current asset (present & future) of the Company and 2^nd paripassu charge over immovable property and fixed assets of the company for INR 7500 Lakhs for its working capital facilities on reciprocal basis.

5 DBS

First paripassu charge by way of hypothecation on all the Current Assets of the Company both present and future of the Company along with other WC Lenders under Multiple Banking Arrangement for INR 500 Lakhs.

Second paripassu charge by way of hypothecation on all the Movable Fixed Assets of the Company both present and future of the Company along with other WC Lenders under Multiple Banking Arrangement.

First and exclusive charge on Fixed Deposit upto INR 5 Lakhs lien marked with the Bank placed / to be placed / renewed / to be renewed / rollover by the Company from time to time.

B) On stocks, receivables & Other current assets of Chennai the following charges have been created:

1 Kotak Mahindra Bank Limited

For Working Capital of INR 1,500 Lakhs.

1^st paripassu hypothecation charge to be shared with HDFC Bank on all existing and future current assets of the Company.

2^nd paripassu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable Fixed Assets of the Company.

2^nd paripassu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the Company.

38 Goodwill

The erstwhile Wholly Owned Subsidiary - Cee Cee Engineering Industries Private Limited was merged vide order dated January 16, 2018

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Mar 31, 2023

5.1 Property, Plant and Equipment are subject to charge to secure the Company''s borrowings as mentioned in Note 21.1.

5.2 The amount of borrowing cost capitalised during the year ended March 31,2023 was Rs. 302 Lakh for Green Field Project at Chennai (for the year March 31,2022: Rs. 18 Lakh {Including Rs. 7 lakh for Green Field Project at Chennai}) on account of capacity expansion of plant .

5.3 The rate used to determine the amount of borrowing costs eligible for capitalisation is 8.54%, which is the effective interest rate of the borrowing.

5.4 The amount of expenditures recognised in the carrying amount of Property, Plant and Equipment in the course of its construction is Rs.294 Lakh (including Rs. 257 Lakh for Green Field Project at Chennai) (Previous Year Rs. 110 Lakh {including Rs. 43 Lakh for Green Field Project at Chennai}).

5.5 The amount of contractual commitments for acquisition of Property, Plant and Equipment is Rs. 8,760 Lakh {Including 8,556 Lakh for Green Field Project at Chennai} (Previous Year Rs. 9,920 Lakhs {Including Rs. 8,819 Lakh for Green Field Project at Chennai}).

5.6 The aggregate depreciation has been included under Depreciation and Amortisation Expense in the Statement of Profit and Loss.(Refer Note 36)

5.7 Freehold land located at Serve no.124/5;126;149/1 ;150;151/2; Dhannad, District: Dhar, Madhya Pradesh, admeasuring 27,890 Square Meter (Cost Rs. 21 Lakh) was revalued to Rs. 433 Lakhs on the date of transition i.e. April 01,2016 and has been considered as the deemed cost in accordance with Para D5 of Ind AS 101- First-time Adoption.

5.8 On the date of transition to Ind AS i.e. on April 01,2016, the Company had exercised the option available in Para D7AA of Ind AS 101- First-time Adoption. Accordingly, the written down value as on April 01,2016 was considered as the Gross Block, as per the following details:-

7.1 The recoverable amount of Goodwill have been determined based on value in use calculations which uses cash flow projections covering generally a period of five years which are based on key assumptions such as margins, expected growth rates based on past experience and Management''s expectations/ extrapolation of normal increase/ steady terminal growth rate and appropriate discount rates that reflects current market assessments of time value of money. The management believes that any reasonable possible change in key assumptions on which recoverable amount is based is not expected to cause the aggregate carrying amount to exceed the aggregate recoverable amount of the cash generating unit.

13.1 Inventories are valued at cost or net realisable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material (Wire Rods) and First-in First Out (''FIFO'') in case of Ancillary Raw Material and Stores & Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition.

13.2Carrying amount of inventory hypothecated to secure working capital facilities amounting to Rs. 4,637 Lakhs (previous year Rs. 3,465 Lakhs)

14.1 The Company has used expected credit loss (ECL) model for assessing the impairment loss. For the purpose, the Company uses a provision matrix to compute the expected credit loss amount. The provision matrix takes into account risk factors and historical data of credit losses from various customers.

19.5 Mr. Sunil Chordia and his family along with family trusts and two Companies namely Rajratan Investments Private Limited (formerly Rajratan Investment Limited) and Rajratan Resources Private Limited hold 65.10% (Previous Year 65.01%) of the paid up share capital and have control over the reporting entity.

19.6 Aggregate number and class of shares allotted as fully paid-up by way of bonus shares

The Company has issued 58,02,400 equity shares as fully paid bonus shares in the ratio of 4:3 (i.e. four bonus shares ofRs. 10/- each for three equity shares of Rs. 10/- each) to every shareholder holding equity share on September 14, 2019.

19.7 Rights, Preference and Restrictions attached to equity shares:

Equity Shares

Voting

The Company has only one class of equity shares having a par value of Rs. 2/- per share. Each holder of equity shares is entitled to one vote per share.

Dividends

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Board of Directors have proposed Dividend of Rs. 2 per share for the Financial Year 2022-23 (Previous Year Rs. 2 per share). Liquidation

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Nature and purpose of each reserve

20.1 Securities Premium

Where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares is transferred to "Securities Premium Account" and the utilization thereof is in accordance with the provisions of Section 52 of the Companies Act, 2013.

20.2 General Reserve

The General Reserves have been created out of retained earnings of the Company and are available for any purpose.

20.3 Retained Earnings

The balance in the Retained Earnings represents the accumulated profit after payment of dividends, transfer to General Reserve and adjustments of actuarial gains/(losses) on Defined Benefit Plans.

20.4 Other Reserves (Revaluation Surplus as on the date of transition to IndAS)

Revaluation Reserve is the amount ascertained due to revaluation of land carried out on the date of transition to Ind AS and has been recognised as a separate category of the equity and not as part of retained earnings.

21.1 Security:

A) On the Property, Plant and Equipment at Pithampur:

1 State Bank Of India

1st Charge for its term loans and working capital of Rs. 5,766 Lakhs.

2 HDFC Bank Limited

2nd pari passu charge over entire fixed asset (immovable and movable) and 2nd pari passu charge over current asset of the Company for Term Loan of Rs. 1,674 Lakhs on reciprocal basis.

1st charge over fixed asset (movable and immovable) of the Company and 2nd pari passu charge over current asset of the company for your Term Loan of Rs. 1,718 Lakhs capex at Pithampur on reciprocal basis.

2nd pari passu charge over entire fixed asset (immovable and movable) and 2nd pari passu charge over current asset of the company for ECLGS Term Loan of Rs. 1,050 Lakhs on reciprocal basis.

3 CITI Bank N.A.

1st charge over fixed asset (movable and immovable) of the Company and 2nd pari passu charge over current asset of the company for Term Loan of Rs. 1,000 Lakhs capex at Pithampur on reciprocal basis.

B) On the Property, Plant and Equipment at Chennai:

1 Kotak Mahindra Bank Limited For Term Loan of Rs.2,500 Lakhs

2nd pari passu hypothecation charge to be shared with HDFC Bank on all existing and future current assets of the Company at Chennai Unit.

1st pari passu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable Fixed Assets of the Company at Chennai Unit.

1st pari passu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the Company.

2 HDFC Bank Limited

For Term Loan of Rs.7,500 Lakhs

2nd pari passu hypothecation charge to be shared with Kotak Mahindra Bank Ltd. on all existing and future current assets of the Company at Chennai Unit.

1st pari passu hypothecation charge to be shared with Kotak Mahindra Bank Ltd. on all existing and future Moveable Fixed Assets of the Borrower at Chennai Unit.

1st charge of HDFC Bank on pari passu basis with Kotak Bank by way of equitable mortgage on industrial factory land and building proposed to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu.

21.2 Foreign Currency Loan

Part of Term Loan from State Bank of India was converted into a foreign currency loan of USD 7.20 Lakh on Spetember 07, 2022 and the said foreign currency loan was converted into Indian Currency on March 07, 2023. The said loan was hedged and premium paid for the year is charged to Statement of Profit & Loss.

24.1 Security:

A) On the Property, Plant & Equipment and Current Assets at Pithampur:

1 State Bank of India

1st Charge for its term loans and working capital of Rs. 5,766 Lakhs.

2 HDFC Bank Limited

1st pari passu charge over entire current assets (present & future) of the company and 2nd pari passu charge over fixed assets of the Company for Rs. 5,700 Lakhs for its working capital facilities.

3 Citi Bank NA

1st pari passu charge over entire current asset (present & future) of the Company and 2nd pari passu charge over immovable property and fixed assets of the company for Rs. 2500 Lakhs for its working capital facilities on reciprocal basis.

2nd pari passu charge over immovable property and fixed assets of the company for Rs. 1500 Lakhs for its SBLC facilities on reciprocal basis.

4 ICICI Bank Limited

1st pari passu charge over entire current asset (present & future) of the Company and 2nd pari passu charge over immovable property and fixed assets of the company for Rs. 7500 Lakhs for its working capital facilities on reciprocal basis.

5 DBS

First pari passu charge by way of hypothecation on all the Current Assets of the Company both present and future of the Company along with other WC Lenders under Multiple Banking Arrangement for Rs. 500 Lakhs.

Second pari passu charge by way of hypothecation on all the Movable Fixed Assets of the Company both present and future of the Company along with other WC Lenders under Multiple Banking Arrangement.

First and exclusive charge on Fixed Deposit up to Rs. 5 Lakhs lien marked with the Bank placed / to be placed / renewed / to be renewed / rollover by the Company from time to time.

B) On stocks, receivables & Other current assets of Chennai:

1 Kotak Mahindra Bank Limited

For Working Capital of Rs. 1,500 Lakhs.

1st pari passu hypothecation charge to be shared with HDFC Bank on all existing and future current assets of the Company.

2nd pari passu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable Fixed Assets of the Company.

2nd pari passu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the Company.

24.2 Other Loans

Other loans payable on demand and advances received from related parties/directors are unsecured.

38 Goodwill

The erstwhile Wholly Owned Subsidiary - Cee Cee Engineering Industries Private Limited was merged vide order dated January 16, 2018 of the Hon''ble National Company Law Tribunal, Ahmedabad Bench with April 01,2017 as the Appointed Date. As per the approved scheme all the assets and liabilities of the Wholly Owned Subsidiary appearing in the Balance Sheet as at March 31,2017, drawn up as per Indian Accounting Standards (Ind AS), have been merged with the Holding Company as on April 01, 2017. The Goodwill on amalgamation is carried in the financial statements and is tested for impairment at each reporting date. No impairment has been recognised till date.

39 Subsidy

39.1 Madhya Pradesh Industrial Development Corporation Limited (MPIDCL), a Government of Madhya Pradesh Undertaking, has approved a sum of Rs. 1,974 Lakhs (Rs. One Thousand Nine Hundred Seventy Four Lakhs Only) as Investment Promotion Assistance against eligible investment of Rs. 5,235 Lakhs (Rs. Five Thousand Two Hundred Thirty Five Lakhs Only). A sum of Rs. 318 Lakhs (Rs. Three Hundred Eighteen Lakhs Only) was further sanctioned on additional investment of Rs. 1,790 Lakhs (Rs. One Thousand Seven Hundred Ninety Lakhs Only) made within one year from the date of start of commercial production. The total amount sanctioned is, thus Rs. 2,292 Lakhs (Rs. Two Thousand Two Hundred Ninety Two Lakhs Only). The total assistance is to be spread over a period of seven years, subject to compliance with the terms and conditions. The subsidy sanctioned in an accounting year is reduced from the carrying cost of the eligible assets (Plant & Machinery and Factory Building on pro-rata basis) and such reduced cost of the assets are depreciated over their useful life. No amount was sanctioned during the year. The total amount of subsidy sanctioned and reduced from the cost of the Property, Plant & Equipment up to March 31,2023 is Rs. 1,081 Lakhs (Rs. One Thousand Eighty One Lakhs Only).

39.2 Madhya Pradesh Industrial Development Corporation Limited, a Government of Madhya Pradesh Undertaking, has sanctioned Capital Subsidy of 50% of Investment Rs. 275 Lakhs (Rs. Two Hundred Seventy Five Lakhs) (restricted to Rs. 100 Lakhs (Rs. One Hundred Lakhs Only) for setting up of Effluent Treatment Plant (ETP) by the Company. The Capital Subsidy of Rs. 100 Lakhs (Rs. One Hundred Lakhs Only) was reduced from the carrying cost of the ETP in the preceding previous year and such reduced cost of the assets is depreciated over it''s useful life.

41 Dividend:

During the year ended March 31,2023, on account of the final dividend for FY 2021-22, the Company has incurred a net cash outflow of Rs. 1,015 Lakhs (Previous Year Rs. 812 Lakhs).

The Board of Directors have proposed dividend of Rs. 2/- per equity share subject to approval by the shareholders in the general meeting. If approved, this will result in payment of dividend of Rs. 1,015 Lakhs.

42 Related Parties Disclosures

As per Ind AS 24, the disclosures of transactions with the related parties are given below:

42.1 Names of related parties where there are transactions and description of relationships:

44.3 Particulars	As at March 31, 2023	(D in Lakhs) As at March 31, 2022
Other Money for which the Company is contingently liable
Liability in respect of bills discounted with Banks (including third party bills discounting)	Nil	Nil

44 Contingent Liabilities And Commitments

44.1 Claims against the Company/disputed liabilities not acknowledged as debts

Madhya Pradesh Paschim Kshetra Vidyut Vitaran Company Limited (MPPKVVCL) during the Financial Year 2018-19 raised a supplementary bill on the Company for Rs. 226 Lakhs for non-adjustment of solar units in Time Of Day (TOD) manner. The Company has not accepted the demand and is contesting the same. The case is sub-judice before Division Bench of MP High Court, Indore.

During 2020-21 a sum of Rs. 66 Lakhs and during 2019-20 a sum of Rs. 160 Lakhs was deposited with MPPKVVCL. Out of the aforesaid total demand raised, the Company has agreements with the suppliers of the solar power to reimburse Rs. 190 Lakhs. Accordingly, the sum of Rs. 190 Lakhs is classified as current asset. The balance amount of Rs. 36 Lakhs was charged to Statement of Profit & Loss in the Financial Year 2020-21.

44.2 Particulars	As at March 31, 2023	(D in Lakhs) As at March 31, 2022
Guarantees excluding financial guarantees
a Guarantees issued by Banks extended to third parties and other Guarantees	NIL	Rs. 15 Lakhs
Corporate Guarantee for the credit facilities availed by Rajratan Thai Wire Company Limited.
b Standby Letter of Credit issued to Rajratan Thai Wire Company Limited under Clean Credit facilities sanctioned to company by Citibank NA.	Rs. 2,000 Lakhs	Rs. 1,500 Lakhs
c Corporate Guarantee issued to United Overseas Bank (Thai) Public Company Limited, Thailand for credit facilities sanctioned to Rajratan Thai Wire Company Limited.	THB 256 Million (Rs. 6,166 Lakh)	THB 256 Million (Rs. 5,839 Lakh)
d Corporate Guarantee issued to Cleanmax Energy (Thailand) Company Limited for Power Purchase agreement executed by them with Rajratan Thai Wire Company Limited.	THB 40 Million (Rs.963 Lakh)	THB 40 Million (Rs.912 Lakh)

44.4 Contingent Liabilities Particulars	As at March 31, 2023	(D in Lakhs) As at March 31, 2022
a MP VAT Act, 2006
2017-2018	1	1
Additional CCT(A), Indore
b The Income Tax Act, 1961
A Y 2018-2019	1	16
Assistant Commissioner of I.T.
A Y 2015-2016	8	-
Commissioner of Income Tax (Appeals) (NFAC)
A Y 2020-2021	7	-
Commissioner of Income Tax (Appeals) (NFAC)
c Service Tax , Act
April 01,2014 - December, 2015	47	47
Additional /Joint Commissioner, Indore
d Central Excise and Customs
October 01,2010 - August 01,2011	1	1
Adjucating Authority. Indore
44.5 Commitments Particulars	As at March 31, 2023	(D in Lakhs) As at March 31, 2022
Estimated amount of contracts remaining to be executed on capital account and not provided for and (Advances paid)	8,760	9,920

45 Capital Management

45.1 The Company’s capital management objectives are:

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

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

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

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

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

The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents, bank balances (excluding earmarked balances with banks).

47 Financial Risk Management:

47.1 Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to meet its contractual obligations causing financial loss to the company.

Credit risk arises mainly from the outstanding receivables from customers.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of counterparty to which the Company grants credit terms in the normal course of business.

The Company has used expected credit loss (ECL) model for assessing the impairment loss.

For the purpose, the Company uses a provision matrix to compute the expected credit loss amount.

46.2 The fair value of Forward Foreign Exchange contracts and is determined using forward exchange rates at the Balance Sheet date.

46.3 All monetary foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

47 Financial Risk Management:

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk.

The Company''s risk management assessment and policies and processes are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same.

Risk assessment and management policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities.

47.2Liquidity Risk

Liquidity risk arises from the Company''s inability to meet its financial obligation as it becomes due.

The Company manages its liquidity risk by ensuring, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risk to the Company''s reputation.

47.3Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from adverse changes in market rates and prices (such as interest rates and foreign currency exchange rates) or in the price of market risk-sensitive instruments as a result of such adverse changes in market rates and prices.

Market risk is attributable to all market risk-sensitive financial instruments, all foreign currency receivables and payables and all short term and long term debt.

The Company is exposed to market risk primarily related to foreign exchange rate risk.

Thus, the Company''s exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currencies.

47.4 Foreign Currency risk:

The Company''s foreign exchange risk arises from its foreign operations, foreign currency revenues and expenses, (primarily in US Dollars and Euros).

As a result, if the value of the Indian rupee appreciates relative to these foreign currencies, the Company''s revenues and expenses measured in Indian rupees may decrease or increase and vice-versa.

The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent periods and may continue to fluctuate substantially in the future.

Consequently, the Company uses both derivative and non-derivative financial instruments, such as foreign exchange forward contracts, option contracts, currency swap contracts and foreign currency financial liabilities, to mitigate the risk of changes in foreign currency exchange rates in respect of its highly probable forecasted transactions and recognised assets and liabilities.

a Significant foreign currency risk exposure relating to trade receivables, other receivables, cash and cash equivalents, borrowings and trade payables:

The exposure to foreign currency for all other currencies are not material.

The net exposures have natural hedges in the form of future foreign currency earnings and earnings linked to foreign currency.

b Sensitivity

For the years ended March 31,2023 and March 31,2022, every 1% strengthening of the Indian rupee against foreign currency (US Dollar) for the above mentioned financial assets/liabilities would decrease the Company''s profit and equity approximately Rs. 3 Lakhs and decrease the Company''s profit & equity by approximately Rs. 10 Lakhs respectively.

For the years ended March 31,2023 and March 31,2022, every 1% strengthening of the Indian rupee against foreign currency (Euro) for the above mentioned financial assets/liabilities would decrease the Company''s profit and equity approximately Rs. 0.46 Lakhs and decrease the Company''s profit & equity NIL respectively.

A 1% weakening of the Indian rupee and the respective currencies would lead to an equal but opposite effect.

While both the employees and the Company make predetermined contributions to the Provident Fund and ESIC, contribution to the Family Pension Fund and other Statutory Funds are made only by the Company.

The contributions are normally based on a certain percentage of the employee''s salary.

For the years ended March 31,2023 and March 31,2022, every 1% change in interest rate for the above mentioned financial liabilities would decrease the Company''s profit equity by approximately Rs. 112 Lakhs and decrease the Company''s profit & equity by approximately Rs. 84 Lakhs respectively.

A 1% increase in interest rate would lead to an equal but opposite effect.

47.6Commodity rate risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchases of raw materials. These are commodity products, whose prices may fluctuate significantly over short periods of time.

The prices of the Company''s raw materials generally fluctuate in line with commodity cycles, although the prices of raw materials used in the Company''s business are generally more volatile.

Cost of raw materials forms the largest portion of the Company''s cost of revenues.

Commodity price risk exposure is evaluated and managed through operating procedures and sourcing policies.

The company''s commodity risk is managed through well-established trading operations and control processes.

In accordance with the risk management policy, the Company carefully calibrates the timing and the quantity of purchase.

As of March 31,2023 and March 31,2022, the Company had not entered into any material derivative contracts to hedge exposure to fluctuations in commodity prices.

47.7Hedge Accounting:

The Company avails Foreign Currency Demand Loans from banks from time to time to reduce the interest cost.

The Company takes forward cover to hedge against the foreign currency risks.

47.8 Interest rate benchmark reforms

The Company does not have any financial instruments which are subject to benchmark reforms.

Therefore, the Company does not have any risk of being exposed to interest rate benchmark reforms.

48 Employee benefit:

48.1 Defined contribution plan

Contributions are made to Regional Provident Fund (RPF), Family Pension Fund, Employees State Insurance Scheme (ESIC) and other Funds which covers all regular employees.

48.2 Employee benefit plans:

Defined benefit plan Gratuity

In respect of Gratuity, a defined benefit plan, contributions are made to LIC''s Recognised Group Gratuity Fund Scheme.

It is governed by the Payment of Gratuity Act, 1972.

Under the Gratuity Act, employees are entitled to specific benefit at the time of retirement or termination of the employment on completion of five years or death while in employment.

The level of benefit provided depends on the member''s length of service and salary at the time of retirement/termination age.

Provision for gratuity is based on actuarial valuation done by an independent actuary as at the year end.

Each year, the Company reviews the level of funding in gratuity fund and decides its contribution.

The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of gratuity payments in short to medium term.

Risks

These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.

i) Investment risk - The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market yields on government bonds denominated in Indian Rupees.

If the actual return on plan asset is below this rate, it will create a plan deficit.

ii) Interest rate risk - A decrease in the bond interest rate will increase the plan liability. However, this will be partially offset by an increase in the return on the plan''s debt investments.

iii) Longevity risk - The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment.

An increase in the life expectancy of the plan participants will increase the plan''s liability.

iv) Salary risk - The present value of the defined benefit plan liability is calculated by reference to the future salaries of plan participants.

3 The Company is not declared a wilful defaulter by any Bank or Financial Institution or any other lender.

4 The Company has no transaction with Companies which are stuck off under section 248 of the Companies Act,2013 or under section 530 of Companies Act,1956.

5 No charges of satisfaction are pending for registration with the Registrar of Companies (ROC).

6 The Company has only one subsidiary which is wholly owned subsidiary. The clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on Number of Layers) Rules, 2017 is complied with.

7 The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or jointly with any other person.

8 During the year no Scheme of Arrangement has been formulated by the Company/pending with competent authority.

9 No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

10 No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

12 Title deeds of immovable properties are held in the name of Company.

13 There are no investment in properties

14 The Company has not revalued its Property, Plant and Equipment during the year.

15 The Company has not revalued its intangible assets during the year.

16 During the year, the Company has not issued any securities.

17 The amount borrowed from Banks and Financial Institution have been used for the specific purpose for which it was sanctioned.

51 Operating Segments

In accordance with Ind AS 108 "Operating Segments", segment information has been given in the consolidated Ind AS financial statements, and therefore, no separate disclosure on segment information is given in these financial statements.

52 Rounding off

The figures appearing in financial statements haves been rounded off to the nearest Lakhs, as required by General Instructions for preparation of Financial Statements in Division II Schedule III to the Companies Act, 2013.

53 Approval of Financial Statements

The Financial Statements were approved for issue by Board of directors in its meeting held on April 21,2023.

---

Mar 31, 2022

4 PROPERTY, PLANT AND EQUIPMENT (Contd.)

4.1 Property, Plant and Equipment are subject to charge to secure the Company''s borrowings as mentioned in Note 21.1.

4.2 The amount of borrowing cost capitalised during the year ended March 31, 2022 was Rs. 18 Lakhs {Including Rs. 7 Lakhs for Green Field Project at Chennai} (for the year March 31, 2021: Rs. 52 Lakhs) on account of capacity expansion of plant .

4.3 The rate used to determine the amount of borrowing costs eligble for capitalisation was 8.25%, which is the effective interest rate of the borrowing.

4.4 The amount of expenditures recognised in the carrying amount of Property, Plant and Equipment in the course of its construction is Rs.110 Lakhs {including Rs. 43 Lakhs for Green Field Project at Chennai} (Previous Year Rs. 70 Lakhs).

4.5 The amount of contractual commitments for acquisition of Property, Plant and Equipment is Rs. 9,920 Lakhs {Including Rs. 8,819 Lakhs for Green Field Project at Chennai} (Previous Year Rs.382 Lakhs).

4.6 The aggregate deprciation and amortisation has been included under Depreciation and Amortisation Expenses in the Statement of Profit and Loss.

4.7 Freehold land located at Survey no.124/5;126;149/1;150;151/2; Dhannad, Dist:Dhar, Madhya Pradesh, admeasuring 27,890 Sq. Mtr. (Cost Rs. 21 Lakhs) was revalued to Rs. 433 Lakhs on the date of transition i.e. 01.04.2016 and has been considered as the deemed cost in accordance with Para D5 of Ind AS 101- First-time Adoption.

(d) Pursuant to the approval of the shareholders accorded on 3rd March, 2022 vide postal ballot conducted by the Company, each equity share of face value of Rs. 10/- per share was sub-divided into five equity shares of face value of Rs. 2/- per share, with effect from 16th March, 2022.

(e) Mr. Sunil Chordia and his family along with family trusts and two Companies namely Rajratan Investments Private Limited (Formerly Rajratan Investment Limited) and Rajratan Resources Private Limited hold 65.00% (Previous Year 65.00%) of the paid up share capital and have control over the reporting entity.

(g) Agreegate number and class of shares alloted as fully paidup by way of bonus shares

The Company has issued 5,802,400 equity shares as fully paid bonus shares in the ratio of 4:3 (i.e. four bonus shares of Rs. 10/- each for three equity shares of Rs. 10/- each) to every sharehoder holding equity share on 14.09.2019.

(h) Terms / Rights to Shareholders

Equity Shares

(i) Voting

The Company has only one class of equity shares having a par value of Rs. 2/- per share. Each holder of equity shares is entitled to one vote per share.

(ii) Dividends

The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Annual General Meeting. The distribution will be in proportion to the number of equity shares held by the shareholders.

(iii) The Board of Directors have proposed Dividend of Rs. 2/- per share for the financial year 2021-22.

(iv) Liquidation

In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

20.2General Reserve

The General Reserves have been created out of retained earnings of the Company and are available for any purpose.

20.3 Retained Earnings

The balance in the Retained Earings represents the accumalted profit after payment of dividens, transrfer to General Reseve and adjustments of acturial gains/(losses) on Defined Benfit Plans.

20.4 Other Reserves (Revaluation Surplus as on the date of transation to IndAS)

Revaluation Reserve is the amount ascertained due to revaluation of land carried out on the date of transition to Ind AS and has been recognised as a separate category of the equity and not as part of retained earnings.

Purpose of Each Reserve within Equity

20.1Securities Premium

Where a company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares is transferred to “Securities Premium Account” and the utilisation thereof is in accordance with the provisions of Section 52 of the Companies Act, 2013.

21.1 SECURITY:

On the Property, Plant and Equipment at Pithampur the following charges have been created:

A) STATE BANK OF INDIA

1st Charge for its term loans and working capital of Rs. 5,766 Lakhs.

B) HDFC Bank Limited

2nd pari-passu charge over fixed assets of the Company for Rs. 5,700 Lakhs for its working capital facilities.

2nd pari-passu charge over entire fixed asset (immovable and movable) and 2nd pari-passu charge over current asset of the Company for term Loan of Rs. 1,674 Lakhs.

1st charge over fixed asset (movable and immovable) of the Company and 2nd pari-passu charge over current asset of the Company for Term Loan of Rs. 1,718 Lakhs for ongoing capex at Pithampur.

2nd pari-passu charge over entire fixed asset (immovable and movable) and 2nd pari-passu charge over current asset of the Company for ECLGS Term Loan of Rs. 1,050 Lakhs on reciprocal Basis.

C) Citi Bank NA

2nd pari-passu charge over immovable property and fixed assets of the Company for Rs. 1,000 Lakhs for its working capital facilities on reciprocal basis.

2nd pari-passu charge over immovable property and fixed assets of the Company for Rs. 1,500 Lakhs for its SBLC facilities.

D) ICICI Bank Ltd.

2nd pari-passu charge over immovable property and fixed assets of the Company for Rs. 5,000 Lakhs for its working capital facilities on reciprocal basis.

E) Facilities were also secured by way of personal guarantee of the Chairman and Managing Director upto 31st March 2021.

On the Property, Plant and Equipment at Chennai following charges have been created:

21 BORROWINGS (NON CURRENT) Contd.)

F) Kotak Mahindra Bank Ltd.

First pari-passu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable Fixed Assets of the Company at Chennai Unit for Term Loan of Rs. 2,500 Lakhs.

First pari-passu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the Company for Term Loan of Rs. 2,500 Lakhs.

Second pari-passu hypothecation charge to be shared with HDFC Bank on all existing and future Moveable Fixed Assets of the Company at Chennai Unit for working capital limits of Rs. 1,500 Lakhs .

Second pari-passu Equitable/ Registered mortgage charge with HDFC Bank on immoveable properties being land and building situated at Plot no. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu belonging to the Company for working Capital limits of Rs. 1,500 Lakhs.

G) HDFC Bank Ltd.

First charge of HDFC Bank on pari pasu basis with Kotak Bank by way of equitable mortgage on industrial factory land and building proposed to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu for Term Loan of Rs. 7,500 Lakhs.

First charge of HDFC Bank on pari pasu basis with Kotak Bank by way of hypothecation on plant and machinery proposed to be installed at factory and land and building to be set up at lease hold Plot No. D-1/2, SIPCOT industrial Park, Vallam Vadagal (phase II), (underdeveloped) Kanchipuram District, Tamil Nadu for Term Loan of Rs. 7,500 Lakhs.

Foreign Currency Loan disclosure

21.2 Part of Term Loan from State Bank of India was converted into a foreign currency loan of USD 15.74 Lakhs. The said foreign currency loan was coverted into Indian Currency on 18.06.2021. The said loan was hedged and premium paid for the year is charged to Statement of Profit & Loss.

23.1 Security

1) State Bank of India

1st Charge for its term loans and working capital of Rs. 5,766 Lakhs for its working captial facilities.

2) HDFC Bank Limited

1st pari-passu charge over entire current assets of the Company for Rs. 5,700 Lakhs for its working capital facilites.

2nd pari-passu charge over current asset of the Company for Term Loan of Rs. 1,674 Lakhs.

2nd pari-passu charge over current asset of the Company for Term Loan of Rs. 1,718 Lakhs for ongoing capex at Pithampur on reciprocal Basis.

2nd pari-passu charge over current asset of the Company for ECLGS term Loan of Rs. 1,050 Lakhs.

3) Citi Bank NA

1st pari-passu charge over entire current asset (present & future) of the Company for Rs. 1,000 Lakhs for its working capital facilities

4) ICICI Bank Ltd

1st pari-passu charge over entire current asset (present & future) of the Company for Rs. 5,000 Lakhs for its working capital facilities on reciprocal basis.

On stocks, receivables and other current assets of Chennai the following charges have been created:

5) Kotak Mahindra Bank Limited

Second pari-passu hypothecation charge to be shared with HDFC Bank on all existing and future current assets of the Company at Chennai Unit for Term Loan of Rs. 2,500 Lakhs.

First pari-passu hypothecation charge to be shared with HDFC Bank on all existing and future current assets of the Company at Chennai Unit for Working Capital Limites of Rs. 1,500 Lakhs.

28 CONTINGENT LIABILITIES AND COMMITMENTS (To the extent not provided for)

28.1 Contingent Liabilities

(A) Claims against the Company/disputed liabilities not acknowledged as debts

(i) Madhya Pradesh Paschim Khestra Vidhyut Vitran Company Ltd. (MPPKVVCL) raised a supplementary bill on the Company for Rs. 226 Lakhs for non-adjustment of solar units in Time Of Day (TOD) manner. The Company has not accepted the demand and is contesting the same. The case is sub-judice before Division Bench of MP High Court, Indore. During the year, a sum of Rs. 66 Lakhs (Previous Year Rs. 160Lakhs) was deposited with MPPKVVCL. Out of the aforesaid total demand raised, the Company has agreements with the suppliers of the solar power to reimburse Rs. 190Lakhs. Accordingly. the sum of Rs. 190 Lakhs is classified as current asset. The balance amount of Rs. 36 Lakhs was charged to Statement of Profit & Loss in the previous year itself.

						(Rs. in Lakhs)
	Particulars			1	31.03.2022	31.03.2021
	(B) Guarantees excluding financial gurantees
	(i) Guarantees issued by Banks extended to third parties and other Guarantees				Rs. 15 Lakhs	Rs. 14 Lakhs
	(ii) Standby Letter of Credit issued to M/s Rajratan Thai Wire Co. Ltd., Thailand (Wholly Owned Subsidiary) under Clean Credit facilities sanctioned to company by CitiBank NA.				Rs. 1,500 Lakhs	Rs. 1,500 Lakhs
	(iii) Corporate Guarantee issued to United Overseas Bank (Thai) Public Company Limited, Thailand for credit facilities sanctioned to M/s Rajratan Thai Wire Co. Ltd., Thailand (Wholly Owned Subsidiary).				THB 2560 Lakhs (Rs. 5,839 Lakhs)	NIL
(iv) Corporate Guarantee issued to Cleanmax Energy (Thailand) Co. Ltd. for Power Purchase agreement executed by them with M/s Rajratan Thai Wire Co. Ltd., Thailand (Wholly Owned Subsidiary).					THB 400 Lakhs (Rs.912 Lakhs)	NIL
(C) Other Money for which the Company is contingently liable
(i) Liability in respect of bills discounted with Banks (including third party bills discounting)					NIL	NIL
(ii) Appeal for which no provision is considered required as the company is hopeful of successful outcome in the appeals. There are uncertainties about the amount or timing of those outflows as it depend on completion of the appellate process.There is no assumption made and the amount is based on demand raised by the Departments.
Particulars		Financial year	(Rs. in Lakhs)		Forum Where dispute is pending
MP VAT Act,2006		2017-18	1		Additional CCT(A), Indore
Income Tax Act		2018-19	16		National Faceless Appeal Centre
Service Tax Act		April 2014 to Dec 2015	47		Additional /Joint Commissioner Indore
Central Excise and Customs		Oct 2010 to Aug 2011	1		Adjucating Authority Indore
28.2						(Rs. in Lakhs)
Particulars				1	31.03.2022	31.03.2021
Commitments
(A) Estimated amount of contracts remaining to be executed on capital account and not provided for:					9,920	382
(B) Other Commitments					NIL	NIL

31 ADDITIONAL REGULATORY INFORMATION:-

31.1 Title deeds of immovable properties not held in the name of Company. Details of all the immovable properties (other than properties where the Company is the leesee of and the lease agreements are duly executed in favour of the leesee) whose deeds are held in the name of the Company.

NIL

31.2 There are no investment in properties

31.3 The Company has not revalued its Property,Plant and Equipment during the year.

31.4 The Company has not revalued its intangible assets during the year.

31.5 The Company had granted salary advance of Rs. 10 Lakhs repayable within a period of 3 months to the Managing Director in accordance with scheme of loans to employees as approved by its Board of Directors. The loan was repaid within one month and there is no outstanding as on the Balance Sheet date.

31.6 No procedings have been initiated or pending against Company for holding any Benami Property under Prohibitions of Benami Transactions Act,1988(Earliers titled as Benami transactions (Prohibitions) Act,1988.

31.7 The quarterly returns/statement of current assets filed by Company with Banks for Borrowings are in agreement with the books of accounts.

31.8 The Company is not declared a wilfull defaulter by any Bank or Financial Institution or any other lender.

31.9 The Company has no transaction with Companies which are stuck off under section 248 of the Companies Act,2013 or under section 530 of Companies Act,1956.

28.3 During the year ended 31st March, 2022, on account of the final dividend for FY 20-21, the Company has incurred a net cash outflow of Rs. 812 Lakhs.

The Board of Directors have proposed dividen of Rs. 2/- per equity share subject to approval by the shareholders in the general meeting. If approved, this will result in payment of dividend Rs. 1,015 Lakhs.

29 During the year, the Company has not issued any securitites.

30 The amount borrowed from Banks and Financial Institution have been used for the specific purpose it was taken.

49 CAPITAL MANAGEMENT

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

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

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

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

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

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

50.5 Commodity Price Risk

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

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

50.6 Credit Risk

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

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

50.7 Liquidity Risk

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

53 The research and development expenditure for the year ended March 2022 is Rs. 90 Lakhs (Previous year Rs. 73 Lakhs), which is charged to Statement of Profit & Loss.

54 GOODWILL

The erstwhile Wholly Owned Subsidiary M/s Cee Cee Engineering Industries Private Limited was merged vide order dated 16th January 2018 of the Hon''ble National Company Law Tribunal, Ahmedabad Bench with 1st April 2017 as the Appointed Date. As per the approved scheme all the assets and liabilities of the Wholly Owned Subsidiary appearing in the Balance Sheet as at 31st March 2017, drawn up as per IND AS, have been merged with the Holding Company as on 1st April 2017. The Goodwill on amalgamation is carried in the financial statements and is tested for impairment at each reporting date. No impairment has been recognised till date.

55 SUBSIDY

Madhya Pradesh Industrial Development Corporation Limited, a Government of Madhya Pradesh Undertaking, has approved a sum of Rs. 1,974 Lakhs (Rs. One Thousand Nine Hundred Seventy Four Lakhs Only) as Investment Promotion Assistance against eligible investment of Rs. 5,235 Lakhs (Rs. Five Thousand Two Hundred Thirty Five Lakhs Only). The total assistance is to be spread over a period of seven years, subject to compliance with the terms and conditions. During the year, a sum of Rs. 318 Lakhs (Rs. Three Hundred Eighteen Lakhs Only) has further being sanctioned on additional investment of Rs. 1,790 Lakhs (Rs. One Thousand Seven Hundred Ninety Lakhs Only) made within one year from the date of start of commercial production. Accordingly a sum of Rs. 699 Lakhs (Rs. Six Hundred Ninety Nine Lakhs Only) was sanctioned and received by the Company during the year. The same has been reduced from the carrying cost of the eligible assets (Plant & Machinery and Factory Building on prorata basis) and such reduced cost of the assets are depreciated over their useful life.

Madhya Pradesh Industrial Development Corporation Limited, a Government of Madhya Pradesh Undertaking, has sanctioned Capital Subsidy of 50% of Investment Rs. 275 Lakhs (Rs. Two Hundred Seventy Five Lakhs) (restricted to Rs. 100 Lakhs (Rs. One Hundred Lakhs Only) for setting up of Effluent Treatment Plant (ETP) by the Company. The Capital Subsidy of Rs. 100 Lakhs (Rs. One Hundred Lakhs Only) has been reduced from the carrying cost of the ETP and such reduced cost of the assets is depreciated over it''s useful life.

56 ESTIMATION OF UNCERTAINTIES RELATING TO THE GLOBAL HEALTH PANDEMIC COVID-19

(I) The Company has been regularly assessing the market conditions as most of its customers being primarily into manufacturing tyres for two wheelers, passenger cars and other transport vehicles and being vulnerable to a disruption in supply chain and demand erosion. The Company has considered such impact to the extent known and available. However, the impact assessment of COVID-19 is a continuing process given the uncertainties associated with its nature and duration.

(II) The leases that the Company entered with lessors towards properties used as industrial land are long-term in nature and no significant changes in the terms of those leases are expected due to the COVID-19. Other leases for office premises are for the short-term and not involving any material amounts.

57 ROUNDING OFF

The figures appearing in financial statements have been rounded off to the nearest Lakhs, as required by General Instructions for

preparation of Financial Statements in Divisiona II Schedule III to the Companies Act, 2013.

58 APPROVAL OF FINANCIAL STATEMENTS

The financial statements are approved for issue by the Board of Directors in their meeting held on 21st April , 2022.

The accompanying notes are an integral part of the standalone financial statements.

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Mar 31, 2018

1. CORPORATE INFORMATION

(a) Rajratan Global Wire Limited (the Company) alongwith its wholly owned subsidiary, M/s Rajratan Thai Wire Company Limited, is engaged in the business of manufacturing and sale of Tyre Bead wire. M/s Cee Cee Engineering Industries Pvt Ltd, acquired as a subsidiary on 15/08/2016 and merged with effect from 01.04.2017, is engaged in manufacturing of material handling equipments, industrial machinery and spare parts there of made of steel, iron, stainless stel or any material or alloys. The Company was holding 68% equity in M/s Swaraj Technocrafts Pvt Ltd., which was divested in August 2017. This erstwhile subsidiary was engaged in manufacturing of Wire Drawing Machinery and Tools. In addition, the Company has a windmill located in India for generation of electricity, which is not considered as a separate reportable segment.

(b) BASIS OF PREPARATION AND PRESENTATION

The standalone financial statements have been prepared on a historical cost basis, except for the following assets and liabilities which have been measured at fair value:

- Certain financial assets and liabilities (including derivative instruments) and

- Defined benefit plans - plan assets

The financial statements of the Company have been prepared to comply with the Indian Accounting Standards (‘Ind AS’), including the rules notified under the relevant provisions of the Companies Act, 2013.

Upto the year ended 31st March 2017, the Company has prepared its financial statements in accordance with the requirement of Indian Generally Accepted Accounting Principles (GAAP), which include Standards notified under the Companies (Accounting Standards) Rules, 2006 and considered as “Previous GAAP”.

These financial statements are the Company’s first Ind AS standalone financial statements.

Company’s financial statements are presented in Indian Rupees (INR), which is also its functional currency.

2.1 CRITICAL ACCOUNTING JUDGMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

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

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

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

b) Recoverability of trade receivable

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

c) Provisions

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

d) Impairment of non-financial assets

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

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

e) Impairment of financial assets

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

2.2 First Time adoption of Ind AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Retained Earnings as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

a) Exemptions from retrospective application

i) Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, “Business Combinations” to business combinations consummated prior to 1st April 2016 (the “Transition Date”), pursuant to which goodwill/capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint ventures consummated prior to the Transition Date

ii) Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value, except in the case of Freehold Land which has been revalued on the transition date.

iii) Cumulative translation differences

The Company has elected to apply Ind AS 21 - The Effects of Changes in Foreign Exchange Rate prospectively. Accordingly all cumulative gains and losses recognised are reset to zero by transferring it to retained earnings.

iv) Investments in Subsidiaries, Joint Ventures and Associates

The Company has elected to measure investment in subsidiaries, joint venture and associate at cost.

Reconciliation Notes explaining Reclassification Adjustments

1 Loans and Advances and Security Deposits in the nature of financial assets have been reclassified as Financial Assets- Loans. Under the previous GAAP, such loans and security deposits were classified as Other NonCurrent assets.

2 Other Current Assets, under the previous GAAP includes Loans to Subsidiaries and Interest accrued on Fixed Deposits which have been classified as financial assets- Loans and Other Financial assets respectively under the Ind AS.

3 Other Current Liabilities under the previous GAAP includes Current Maturities of Long Term Debts, Interest accrued and due on borrowings, Interest accrued but not due on borrowings and Unpaid Dividends which have been classified as Other Financial Liabilities under the Ind AS.

Reconciliation Notes explaining Ind AS Adjustments

1 The company has exercised the option of carrying the Freehold Land at its fair value on the date of transition.

This has resulted in increase in Property, Plant and Equipment and Revaluation Reserve by Rs. 41,229,022/

2 In accordance with Ind AS 109, the Company uses Expected Credit Loss (ECL) model for evaluating impairment of financial assets other than those measured at Fair Value through Profit and Loss (FVTPL). Accordingly, the Provision for Doubtful Debts for the year ended 31st March 2017 and on 1st April 2016 has been increased by Rs. 9,93,800/- and Rs. 8,17,075/- respectively.

3 The transaction costs paid for the term loan borrowed have been amortised over the period of the loans, as the loans are required to be carried at amortized cost as per Ind AS 109 “Financial Instruments”. Consequently, the Borrowings have reduced by Rs. 44,50,421/- and Rs. 26,56,847/- as at 1st April 2016 and 31st March 2017 respectively.

4 Under the Ind AS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Liabilities (Net) have been reduced by Rs. 29,91,462/- and Rs. 35,33,627/- as at 1st April 2016 and 31st March 2017 respectively.

5 The Proposed Dividend as on 31st March 2016 amounting to Rs. 62,85,287/- has not been recognized as a liability as on the date of transition and has been written back to the Retained Earnings as on that date.

6 In accordance with Ind AS 19 “Employee Benefits”,Acturial gains/losses on remeasurement of Defined Benefit Plans have been classified under “Other Comprehensive Income”. Accordingly, the Provision for Employee Benefits as at 31st March 2017 has been reduced by Rs. 2,61,839/-

Reconciliation Notes explaining Ind AS Adjustments

Merger of M/s. Cee Cee Engineering Industries (P) Ltd.

1 The Profit and Loss account of M/s. Cee Cee Engineering Industries (P) Ltd. For the period from 15.08.2016 to 31.03.2017 has been merged with M/s. Rajratan Global Wire Ltd. (see note no. 42) resulting in loss of Rs. 30,544/-.

Ind AS adjustments of M/s. Rajratan Global Wire Ltd.

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

3 In accordance with Ind AS 19 “Employee Benefits”,Acturial gains/losses on remeasurement of Defined Benefit Plans have been classified under “Other Comprehensive Income”. Accordingly, the Employee Benefit Expenses have been reduced by Rs. 35,15,266/

4 The transaction costs paid for the term loan borrowed have been amortised over the period of the loans, as the loans are required to be carried at amortized cost as per Ind AS 109 “Financial Instruments”. Consequently, the Finance Costs for the year ended 31st March 2017 have been increased by Rs. 17,93,575/

5 In accordance with Ind AS 109, the Company uses Expected Credit Loss (ECL) model for evaluating impairment of financial assets other than those measured at Fair Value through Profit and Loss (FVTPL). Accordingly, Other Expenses include Rs. 1,76,725/- for the year ended 31st March 2017 on account of provision for bad and doubtful trade receivables.

6 Under the Ind AS, the Deferred Tax is calculated on the basis of the Balance Sheet approach and not the Income approach. Consequently, the Deferred Tax Expenses for the year ended 31st March 2017 are lower by Rs. 5,42,165/-

Inventories are valued at cost or net realisable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material (Wire Rods) and First-in First Out (‘FIFO’) in case of Ancillary Raw Material and Stores & Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty was included in the value of finished goods inventory till 30th June 2017.

(d) Rajratan Investments Limited together with Rajratan Resources Private Limited, Mr. Sunil Chordia and his family holds 59.26% (Previous Year 58.25%) have control over the company as defined in IndAS-110 Consolidated Financial Statements. Accordingly Rajratan Investments Ltd is considered as the Holding company.

(f) Terms / Rights to Shareholders (i) Equity Shares

(A) Voting

(i) The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held.

Dividends

(ii) The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company in the ensuing Anuual 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. The total dividend Paid for the year ended 31st March 2017 amounts to Rs. 6,527,700/- including Corporate Dividend Distribution Tax of Rs.1,328,886 /-(Previous Year Rs.6,285,287/-) including Coprorate Dividend Distribution Tax Rs.1,063,085/-)

Liquidation

(iii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

SECURITY:

A. Term loans are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu with other working capital lenders and by a first charge by way of equitable mortgage of leased hold land situated at Plot no. 199, 200A & 200 B, Sector-1 Pithampur and hypothecation of all the company’s movable machinery, present and future, subject to prior charges created in favour of Company’s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

Security

A. Loans repayable on demand from State Bank of India, Indore and HDFC Bank Ltd.,Indore are Working Capital Loans and are secured by hypothecation of entire current assets of the company ranking pari passu and by way of second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

B. Loans and advances from related parties are unsecured.

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

Since the scheme funds are invested with LIC of India Expected Rate of Return is based on rate of return declared by fund managers.

Sensitivity Analysis

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

Certification and Consultation fees primarily includes certification fees paid to auditors. Statues and regulation require auditors to certify export documentation, quarterly fillings, XBRL fillings, transfer pricing and bond issuances among others.

3. Corporate Social Responsibility (CSR)

(a) CSR amount required to be spent as per section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs.2,417,140/- (Previous Year Rs.2,304,846/-)

(b) Expenditure related to Corporate Social Responsibility is Rs. 2,549,606/- (Previous Year Rs.1,253,000/-)

(c) Out of note (b) above Rs. 1,250,000/- (Previous Year Rs.550,000/-) is spent through Rajratan Foundation

(d) The balance unspent amount for previous year towards CSR as on balance sheet date is Rs.3,701,318/-

4. M/s Rajratan Global Wire Limited (the Holidng Company) acquired all the shares of M/s Cee Cee Engineers Private Limited on 15th August 2016 making it a Wholly Owned Subsidiary(WOS). The WOS has been merged with the Holding Company vide order dated 16th January 2018 of the Hon’ble National Company Law Tribunal, Ahmedabad Bench with 1st April 2017 as the Appointed Date. As per the approved Scheme all the assets and liabilities of the WOS appearing in the Balance Sheet as at 31st March 2017, drawn up as per Ind AS, have been merged with the Holding Company as on 1st April 2017. The Method of Accounting is Pooling of Interest Method, in acccordance with Ind AS 103 Business Combinations, Appendix C - Business Combination of Entities under Common Control. However the Revaluation Reseve appearing in the Balance Sheet of the WOS has been adjusted against the goodwill on amalgamation as the price paid for the shares in August 2016 was for the fair value of the land which is appearing in the balance sheet at revlaued amount with corresponding credit to the Revaluation Reserve. Further as per para 9(iii) of the said Appendix, the financial information of the previous year have been restated with effect from 15th August 2016, as if the Business Combination had occurred on that date. Accordingly the financial performance from 15th August 2016 to 31st March 2017 and the financial position as on 31st March 2017 have been included in the standalone financial statements of the Holding Company and not in the Consolidated Financial Statements of the Rajratan Group.

5. The leasehold land at plot no 199 Industrial Area No 1, Pithampur District Dhar was originally leased to M/s Cee Cee Engineering Industries Private Limited, which stands merged with M/s Rajratan Global Wire Limited with effect from 1st April 2017. Till the last year it was expected that the leased land will be available to the company for a period of 99 years from 2017 i.e. the lease will be available till 2116. Accordingly the amortisation period for land was considered till 31st March 2116. However, it is now evident that the lease will be executed for an initial period of 30years with a right to renew it for a further period of 30 years. Therefore the company has revised the estimated period of lease amortisation from the year 2116 to 2078. The lease hold premium amortised during the year is Rs.4,42,425/- as against Rs.2,72,376/- amortised in FY 2016-17, based on the earlier estimates. The leasedeed has not been executed till date. In case the actual terms of the lease are different from those expected now, the lease amortisation will be changed prospectively.

6. Disclosure required as per Ind AS 103 Business Combinations, Appendix C - Business Combination of Entities under Common Control on account of merger of M/s Cee Cee Engineers Private Limited (Wholly Owned Subsidiary) with M/s Rjaratan Global Wire Limited (Holding Company):-

a) M/s Rajratan Global Wire Limited (the Holidng Company) is engaged in the business of manufacturing and sale of Tyre Bead Wire. M/s Cee Cee Engineering Industries Pvt. Ltd.( a wholly owned subsidiary), engaged in manufacturing of material handling equipment, industrial machinery and spare parts thereof made of steel, iron stainless steel or any other metals or alloys, has been merged with the Holding Company vide order dated 16th January 2018 of the Hon’ble National Company Law Tribunal, Ahmedabad Bench with 1st April 2017 as the Appointed Date.

b) No equity shares of either companies have been exchanged to effect the business combination.

c) The holding company has obtained the control of the subsidiary on 15th August 2016.

d) The holding company has paid total consideration of Rs. 3,00,00,000/- against net identifiable assets acquired amounting to Rs. 2,88,97,604/-, the difference of Rs. 11,02,396/- being recognized as Goodwill on Consolidation in the books of the holding company as on the date of acquisation.

7. CAPITAL MANAGEMENT

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

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

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

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

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

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

The gearing ratio at end of the reporting period was as follows.

8. FINANCIAL INSTRUMENTS

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

(a) The fair value of investment in Equity Shares of Co-Operative Bank is measured at market repurchase price which is the best available fair value.

(b) The fair value of Forward Foreign Exchange contracts and is determind using forward exchange rates at the balance sheet date.

(c) All foreign currency denominated assets and liabilities are translated using exchange rate at reporting date.

Commodity Price Risk

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

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

Credit Risk

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

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

Liquidity Risk

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

Hedge Accounting

The Company avails Foreign Currency Demand Loans from bank time to time to reduce the interest cost. The Company takes forward cover to hedge against the foreign currency risks. The amount of foreign currency risks and forward cover are as under:

Operating Leases

a) the total of future minimum lease payments under non-cancellable operating leases for each of the following periods:

(i) not later than one year; 5,76,000

(ii) later than one year and not later than five years; NIL

(iii) later than five years. NIL

b) the total of future minimum sublease payments expected to be received under non-cancellable subleases at the end of the reporting period. NIL

c) lease and sublease payments recognised as an expense in the period, with separate amounts for minimum lease payments, contingent rents, and sublease payments. 5,76,000

d) The Company pays rent for office premises at Indore and Mumbai. The lease period is for 11 months with option to renew. The payments for office premises at Indore are to related parties. None of the lease agreements have any restrictions concerning dividend, additional debt and further leases.

9. As per Ind AS 108-”Operating Segment”, segment information has been provided under the Notes to Consolidated Financial Statement. Please refer note no. 48 for revenue from sale of products.

#Out of the unsecured inter corporate loan of Rs. 19.00 Crore given during the year to various parties. The outstanding balance as on 31st March 2018 is Rs. 1.98 Crore.

10. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of Rs.1.5 Per fully paid up equity share of Rs.10/- each, aggregating Rs. 7,869,488/- Including Rs. 1,341,788/- dividend distribution tax for the financial year 2017-18, which is based on relevant share capital as on 31st March 2018. The actual dividend amount will be dependent on the relevant share capital outstanding as on the record date/book closure.

11 APPROVAL OF FINANCIAL STATEMENTS

The financial statements are approved for issue by the Board of Directors in their meeting held on 10th May 2018.

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Mar 31, 2017

1. The company has only one class of shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company 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. During the year ended 31st March, 2017, the amount of per share dividend proposed as distributions to equity share holders is Rs. 1.5 per Share (Previous Year Rs. 1.2 per Share). The total dividend proposed for the year ended March 31, 2017 amounts to Rs. 6,527,700/- including Corporate Dividend Distribution Tax of Rs.1,328,886 /-(Previous Year Rs. 6,285,287/-) including Corporate Dividend Distribution Tax Rs. 1,063,085/-) [Refer note 34(b) regarding change in Accounting Policies].

2. SECURITY:

3. Term loans outstanding Rs. 129,000,000/- (Rs. 82,000,000/- classified as Non-Current and Rs. 47,000,000/- classified as Current Liability) (Previous year Rs. 138,000,000/-) are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company''s movable machinery, present and future, subject to prior charges created in favour of Company''s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

4. M/s Cee Cee Engineering Industries Pvt. Ltd. (Subsidiary Company) has also provided collateral security by way of first charge on the entire fixed assets of (by way of equitable mortgage of leased land (lease agreement dated 17.10.1997 with MP Audoyogik Vikas Nigam) & building & hypothecation of other fixed assets) (both present & future) situated at the company''s premises at Plot No. 199, Sector-1, Pithampur Industrial area, District-Dhar (MP) and /or any other places.

5. Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd., Indore are Working Capital Loans and are secured by hypothecation of company’s stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

6. M/s Cee Cee Engineering Industries Pvt. Ltd. (Subsidiary Company) has also provided collateral security by way of first charge on the entire fixed assets of (by way of equitable mortgage of leased land (lease agreement dated 17.10.1997 with MP Audoyogik Vikas Nigam) & building & hypothecation of other fixed assets) (both present & future) situated at the company''s premises at Plot No. 199, Sector-1, Pithampur Industrial area, District-Dhar (MP) and/or any other places. For Credit facilities sanctioned by State Bank of India.

7. Details of expenses on Corporate Social Responsibility

The Company has incurred a sum of Rs. 1,253,472/- on expenses related to Corporate Social Responsibility. However the Company has not spent the total amount of Rs.. 2,304,846 /- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs. 1,051,374/- for the year to be spent on CSR activities. The total shortfall as on Balance Sheet date is Rs. 3,833,784/-. The Management is in the process of identifying projects that can be supported by the Company.

8. Change in Accounting Policies

The Ministry of Corporate Affairs, Government of India has vide Notification No. G.S.R. 364 (E) dated 30.03.2016 amended Accounting Standard (AS-4)-“Contingencies and Events Occurring After the Balance sheet Date” and has substituted Accounting Standard (AS-10)- Equipment” in place of the existing Accounting Standard (AS-10)-“Fixed Assets”, together with consequential amendments in other Accounting Standards. These amended/substituted Accounting Standards have become mandatory for accounting periods commencing from 01.04.2016.

In view of the Revised Accounting Standards AS 10 - “Property, Plant & Equipment” and AS 4- Contingencies and Events Occurring After the Balance Sheet Date”, the Company has made following changes to its Accounting Policies;

9. AS 10- “Property, Plant & Equipment”

On the date of Accounting Standard AS-10 (Revised) becoming mandatory, the Spare Parts, which hitherto were being treated as inventory, have been capitalized in accordance with the requirement of AS-10 at their respective carrying amounts. The Spare Parts amounting to Rs. 1,366,262/- so capitalized have been depreciated over their remaining useful life prospectively. The depreciation charged on such Spare Parts is Rs. 22,909/- for the year. Due to the said change in the Accounting Policy, the Fixed Assets are overstated and the inventories are understated to that extent.

10. AS 4- Contingencies and Events Occurring After the Balance Sheet Date

No provision has been made for Dividend proposed for the year ended on 31st March, 2017 amounting to Rs. 6,527,700/including Corporate Dividend Tax of Rs. 1,328,886/- (Previous Year Rs. 6,285,287/- including Corporate Dividend Tax of Rs. 1,063,085/-). Due to the said change in the Accounting Policy, the Reserves & Surplus is overstated and the Short Term Provisions are understated to that extent.

11. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

12. In accordance with the Accounting Standard (AS) 17 “Segment Reporting” issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 the Company has only one reportable segment “Bead Wire” for the current year.

13. In accordance with the Accounting Standard (AS)18 “Related Party Disclosures” issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014 the names of the related parties and the relevant disclosure is as under:-

14. Name of the related party and description of relationship:

15. Key Management Personnel:

16. Mr. Sunil Chordia - Managing Director

17. Mrs. Sangita Chordia - Whole Time Director

18. Relatives of Key Managerial Personnel

19. Mrs. Shantadevi Chordia Mother of Mr. Sunil Chordia

20. Mr. Yashovardhan Chordia S/o Mr. Sunil and Mrs. Sangita Chordia

21. Companies/entities under the control of Key Management personnel

22. M/s. Rajratan Resources Pvt. Ltd.,

23. M/s. Rajratan Investment Ltd.,

24. Subsidiary

25. M/s. Rajratan Thai Wire Company Ltd., Thailand

26 M/s. Swaraj Technocraft Pvt. Ltd.

27. M/s. Cee Cee Engineering Pvt. Ltd. (wef. 16.08.2016)

*Out of the unsecured inter corporate loan of Rs. 14.05 Crores given during the year to various parties the outstanding balance as on 31.03.2017 is 0.89 Crore.

# The opening amount of corporate guarantee given in favour of wholly owned subsidiary as on 01.04.2016 was USD 10.70 Million, however the same was reduced to USD 8.30 Million during the year.

28. The Central Government has made amendments to Schedule III to the Companies Act vide circular No. F.No. 17/62/2015-CL-V(Vol.I)-G.S.R. 308 (E)-Dated 30-03-2017 regarding the disclosure to be made about the Specified Bank Notes (SBN) held and Transacted during the period from 8th November, 2016 to 30th December, 2016. The details of which are provided in the table below:-

29. Previous Year’s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year’s figures.

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Mar 31, 2016

1. The company has only one class of shares having a par value of '' 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company 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. During the year ended 31st March 2016, the amount of per share dividend recognized as distributions to equity share holders is Re. 1.2/- per Share (Previous Year Re. 1/- per Share). The total dividend appropriation for the year ended March 31, 2016 amounts to Rs.6,285,287/- including Corporate Dividend Distribution Tax of Rs.1,063,127/- ( Previous Year Rs.5,222,049/- including Corporate Dividend Distribution Tax Rs. 870,249/-).

2 SECURITY:

A. Term loans outstanding Rs.138,000,000/- (Previous year Rs.175,000,000/-) are secured by way of an equitable mortgage of immovable properties with State Bank of India, Indore ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company''s movable machinery, present and future, subject to prior charges created in favour of Company''s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

B. Vehicle loan outstanding Rs.NIL/- (Previous Year 981,590/-) is secured by hypothecation of Motor Car.

3. Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd.Indore are Working Capital Loans and are secured by hypothecation of company’s stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

B. Loans and advances from related parties and other loans and advances are unsecured.

4 TRADE PAYABLES

5 Inventories are valued at cost or net realizable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material and First-in First Out (''FIFO'') in case of Ancillary Raw Material and Consumable Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty is included in the value of finished goods inventory.

6. Details of expenses on Corporate Social Responsibility

The Company has incurred a sum of Rs.699,600/- on expenses related to Corporate Social Responsibility. However the Company has not spent the total amount of Rs.1,985,628/- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs.1,286,928/- for the year to be spent on CSR activities. The total shortfall as on Balance Sheet date is Rs.2,782,410/-. The Management is in the process of identifying some good projects that can be supported by the Company.

7. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

8. Micro, Small and Medium Enterprises Development Act, 2006

Under the Micro, Small and Medium Enterprises Development Act, 2006 which came into force from 2nd October 2006. Certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed that none of the suppliers have confirmed that they are registered under the provisions of this Act. In view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.

9. In accordance with the Accounting Standard (AS) 17 “Segment Reporting” issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rule, 2014 the Company has only one reportable segment “Bead Wire” for the current year.

10. In accordance with the Accounting Standard (AS)18 “Related Party Disclosures” issued by The Institute of Chartered Accountants

11. Previous Year’s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year’s figures.

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Mar 31, 2015

Overview

Rajratan Global Wire Company Limited (''the Company'') alongwith its wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. The Company is having 68% holding in Swaraj Technocrafts Pvt. Ltd. which is engaged in manufacturing of Wire-drawing Machinery and Tools. In addition, the Company has a Wind Mill located in India for generation of electricity. .

2.1 The company has only one class of shares having a par value of '' 10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company 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. During the year ended 31st March 2015, the amount of per share dividend recognized as distributions to equity share holders is Re. 1/- per Share (Previous Year Re. 1/- per Share). The total dividend appropriation for the year ended March 31, 2015 amounts to Rs. 5,222,049/- including Corporate Dividend Distribution Tax of Rs. 870,249/- ( Previous Year Rs. 5,091,388/- including Corporate Dividend Distribution Tax Rs. 739,588/-)

The Outstanding of Long Term Borrowings are net of installment due within next 12 months aggregating to Rs. 55,861,157/-

(Previous year Rs. 50,827,279/-) which are classified as current liabilities.

2.2 SECURITY:

A. Term loans outstanding Rs. 175,000,000/- (Previous year Rs. 45,000,000/-) are secured by way of an equitable mortgage of immovable properties ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company''s movable machinery, present and future, subject to prior charges created in favor of Company''s Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee ofthe Managing Director.

B. Vehicle loan outstanding Rs. 981,590/- (Previous Year 2,342,747/-) is secured by hypothecation of Motor Car.

2.3 Security: A. Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd.,Indore are Working Capital Loans and are secured by hypothecation of companyRs.s stock and book debts, present & future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees ofthe Managing Director.

B. Loans and advances from related parties and other loans and advances are unsecured.

2.4 Inventories are valued at cost or net realizable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material and First-in First Out (''FIFO'') in case of Ancillary Raw Material and Consumable Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty is included in the value of finished goods inventory.

3. CONTINGENT LIABILITIES AND COMMITMENTS

3.1 Contingent Liabilities

(a) Claims against the company not acknowledged as debt; Nil Nil

(b) Guarantees;

(i) Bank Guarantee 1,000,000 11,000,000

(ii) Corporate Guarantee for the credit facilities availed by M/s. Rajratan Thai Wire Co. Ltd., Thailand the Wholly Owned subsidiary of the company. US$ 17.50 Million US$ 17.50 Million

(c) 5,400,000 equity shares of M/s. Rajratan Thai Wire Co., Ltd. (RTWL),

Thailand have been pledged each with State Bank of India and ICICI Bank Ltd, against loans sanctioned by them to RTWL

(d) Other money for which the company is contingently liable Income Tax & Excise appeals for which no provision is considered required as the company is hopeful of successful outcome in the appeals Income Tax appeals pending before CIT (Appeals) for F.Y. 2009-10 & 2010-11 pertain to an issue which has been decided by the Hon''ble Income Tax Appellate Tribunal, Indore in favor ofthe Company for earlier Years. There are no pending litigation other than those mentioned above. The total impact on the financial statements of pending litigation is Rs. 40,37,738/- (Previous year Rs. 1,566,480/-), if decided against the Company. The Management is confident that all pending Litigation will be decided in favor of the Company and there is no expected outflow of resources on this account.

4. Details of expenses on Corporate Social Responsibility

The Company has incurred a sum of Rs. 424,944/- on expenses related to corporate social responsibility. However the Company has not spent the total amount of Rs. 1,930,426/- being 2% of average Profit of last three year. Therefore there is a shortfall of Rs. 1,495,482/- to be spent on CSR activities. The Management is in the process of identifying some good projects that can be supported by the Company.

5. The carrying value of the assets whose useful life is already exhausted as on 01.04.2014, amount to Rs. 1,30,24,797/- and deferred tax credit of Rs. 40,24,662/- there on has been recognized in the opening balance of retained earnings.

6. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

7. Micro, Small and Medium Enterprises Development Act, 2006

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The outstanding amount as at Balance Sheet date is given below:

8. In accordance with the Accounting Standard (AS) 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India (ICAI) and specified u/s 133 of the Act read with Rule 7 of the Companies (Accounts) Rule, 2014 the Company has only one reportable segment "Bead Wire" for the current year. "Windmill" is not a reportable segment. As the power generated by windmill is exclusively used for captive consumption in bead wire, the financial result of "Windmill" segment have been included in "Bead Wire" segment.

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Mar 31, 2014

Overview

Rajratan Global Wire Company Limited (''the Company'') alongwith its wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. In addition, the Company has a Wind Mill located in India for generation of electricity.

1 CONTINGENT LIABILITIES AND COMMITMENTS

1.1 Contingent Liabilities

Particulars As at As at 31 March 2014 31 March 2013

(a) Claims against the company Nil Nil not acknowledged as debt;

(b) Bank Guarantees;

(i) Bank Guarantee with 11,000,000 11,000,000 State Bank of India, Specialised Mid Corporate Branch, Pithampur for Rajratan Global Wire Limited

(ii) Bank Guarantee with local bank for 2.63 2.63 letter of guarantee issued by said Million Million banks Bhat Bhat

(iii) Bank Guarantee with State Bank 1.217.394 1.217.394 of India, Germantara Complex Branch, Pithampur for Swaraj Technocrafts Pvt. Ltd

(c) The Company has given the US$ 17.50 US$ 17.50 Corporate Guarantee for the credit Million Million facilities availed by M/s. Rajratan Thai Wire Co. Ltd., Thailand the Wholly Owned subsidiary of the company.

(d) 5,400,000 equity shares of M/s. Rajratan Thai Wire Co.Ltd.(RTWL), Thailand have been pledged each with State Bank of India and ICICI Bank Ltd, against loans sanctioned by them to RTWL

(e) Other money for which the company is contingently liable Income Tax & Excise appeals for which no provision is considered required as the company is hopeful of successful outcome in the appeals

2 Till the previous year the leasehold land, for 99 year lease with an option to renew for a further period of 30 years, has been in substance considered as equivalent to ownership of land. Accordingly the premium on land acquisition was not amortized.

However, the management has now decided to amortize the leasehold land over the period of lease. During the year, the management has decided to change the accounting policy with respect to amortization of leasehold land. A sum of Rs. 4,65,390/-which includes Rs. 4,45,156/- being the amount till 31.03.2013, has been charged to Statement of Profit and Loss. Accordingly the profits for the year and the Reserves & Surplus are understated to that extent.

3 In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4 Micro, Small and Medium Enterprises Development Act, 2006

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company. The outstanding amount as at Balance Sheet date is given below:

5 In accordance with the Accounting Standard (AS) 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the Company has only one reportable segment "Bead Wire" for the current year. "Windmill" is not a reportable segment. As the power generated by windmill is exclusively used for captive consumption in bead wire, the financial result of "Windmill" segment have been included in "Bead Wire" segment.

6 In accordance with the Accounting Standard (AS)18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

7 The Company has an investment of Rs. 33.60 Crore (Previous Year Rs. 23.35 crore) in equity shares of M/s. Rajratan Thai Wire Company Limited (RTWL) a wholly owned subsidiary. The Company has outstanding balances of loans amounting to NIL (Previous Year Rs. 3.67 crore) and amount receivable on account of sales, Rs.12.93 crore (Previous Year 7.33 crore), (collectively referred to as ''Exposures''). Although the Net worth of RTWL has eroded to the extent of more than 85%, the management considers it appropriate not to recognise diminution in value of investments. Management, barring any significant uncertainties in future, relies upon the RTWL management''s anticipation of future profits. The management considers the ''Exposures'' to be ''Good'' at the close of the year and adequately covered, and expects full realisability of the same in future, upon which, the Auditors, being unable to make an informed judgment, have placed their reliance.

8 Previous Year''s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year''s figures.

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Mar 31, 2013

Overview

Rajratan Global Wire Company Limited (''the Company'') alongwith its wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. In addition, the Company has a Wind Mill located in India for generation of electricity.

1 In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2 Under the Micro, Small and Medium Enterprises Development Act,2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed that none of the suppliers have confirmed that they are registered under the provisions of this Act. In view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.

3 The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report issued by Life Insurance Corporation of India (LIC) is as under:-

(a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC which is a defined benefit plan.

4 In accordance with the Accounting Standard (AS) 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the Company has only one reportable segment "Bead Wire" for the current year. "Windmill" is not a reportable segment. As the power generated by windmill is exclusively used for captive consumption in bead wire, the financial result of "Windmill" segment have been included in "Bead Wire" segment.

5 In accordance with the Accounting Standard (AS)18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

(a) Name of the related party and description of relationship: i. Key Management Personnel:

1) Mr.SunilChordia - Managing Director

2) Mr.DeepeshTrivedi - Executive Director

3) SmtSangitaChordia - Whole Time Director ii. Relatives of Key Managerial Personnel

1) Smt. Shantadevi Chordia W/o Shri Chandanmal Chordia iii. Companies/entities under the control of Key Management personnel

1) M/s.Rajratan Resources Pvt. Ltd.,

2) M/s.Rajratan Investment Ltd,

3) M/s. Cee Cee Engineering Industries Pvt. Ltd. iv. Subsidiary

1) M/s. Rajratan Thai Wire Company Ltd., Thailand

2) M/s. Swaraj Technocraft Pvt. Ltd.

6 The Company has an investment of Rs. 23.35 crore (Previous Year Rs. 23.35 crore) in equity shares of M/s. Rajratan Thai Wire Company Limited (RTWL) a wholly owned subsidiary. The Company has outstanding balances of loans amounting to Rs. 3.67 crore (Previous Year Rs. 3.15 crore) and amount receivable on account of sales, Rs. 7.33 crore (Previous Year 4.14 crore), (collectively referred to as ''Exposures''). Although the Net Worth of RTWL has eroded to the extent of more than 80%, the management considers it appropriate not to recognize diminution in value of investments. Management, barring any significant uncertainties in future, relies upon the RTWL management''s anticipation of future profits. The management considers the ''Exposures'' to be ''Good'' at the close of the year and adequately covered, and expects full reusability of the same in future, upon which, the Auditors, being unable to make an informed judgement, have placed their reliance.

7 Previous Year''s figures have been regrouped and recast wherever considered necessary to make them comparable with the current year''s figures.

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Mar 31, 2012

Over view

Rajratan Global Wire Company Limited ('the Company') along with its wholly owned subsidiary, M/s. Rajratan Thai Wire Company Limited is engaged in the business of manufacturing and sale of Tyre Bead Wire. In addition, the Company has a Wind Mill located in India for generation of electricity.

1.1 The company has only one class of shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval by the shareholders of the company 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. During the year ended 31st March 2012, the amount of per share dividend recognised as distributions to equity share holders is Rs. 1.2 per Share (Previous Year Rs.

1.2 per Share). The total dividend appropriation for the year ended March 31, 2012 amounts to Rs. 61,09,666 including Corporate Dividend Distribution Tax of Rs. 8,87,506 (Previous YearRs. 76,37,083 including Corporate Dividend Distribution Tax Rs. 11,09,383)

2.1 SECURITY:

A. Term loans outstanding Rs. 7,38,81,349/- (Previous year Rs.8,26,82,477/-) are secured by way of an equitable mortgage of immovable properties ranking pari passu amongst the lenders and by a first charge by way of hypothecation of all the company's movable machinery, present and future, subject to prior charges created in favour of Company's Bankers on the stock of raw materials, goods in process, finished and manufactured goods and Book Debts towards security for working capital facilities. Term loans are also secured by personal guarantee of the Managing Director.

B. Sales Tax Deferment Loan outstanding Nil (Previous year Rs. 60,49,270/-) is secured by way of charge created in favour of Madhya Pradesh State Industrial Development Corporation Ltd. ranking pari-passu on fixed assets with other banks.

C. Vehicle Loan outstanding Nil (Previous year 1,39,326/-) is secured by hypothecation of vehicle.

3.1 Security: Loans repayable on demand from State Bank of India, Indore and IDBI Bank Ltd.,Indore are Working Capital Loans and are secured by hypothecation of company's stock and book debts, present and future and by a second charge on all the immovable properties of the company and plant and machinery, machinery spares, tools and accessories and other movables both present and future. Such advances are also secured by personal guarantees of the Managing Director.

4.1 Inventories are valued at cost or net realisable value whichever is lower. The cost formulas used are Weighted Average Cost in case of Raw Material and First-in First Out ('FIFO') in case of Ancillary Raw Material and Consumable Spares. The cost of inventories comprises all cost of purchase including duties and taxes (other than those subsequently recoverable from the taxing authorities), conversion cost and other costs incurred in bringing the inventories to their present location and condition. Excise Duty is included in the value of finished goods inventory.

5 CONTINGENT LIABILITIES AND COMMITMENTS

5.1 Contingent Liabilities

(a) Claims against the company not acknowledged as debt; Nil Nil

(b) Guarantees;

(i) Bank Guarantee 84,55,099 53,55,538

(ii) Corporate Guarantee for the credit facilities availed by

M/s, Rajratan Thai wire co. Ltd. Thailand the Wholly Owned subsidiary ofthe company. US$ 17.50 Million US$12.30 Million

(c) Other money for which the company is contingently liable Income Tax & Excise appeals for which no provision is considered required as the company is hopeful of successful out come in the appeals 5,84,233 7,16,114

6 In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

7 Under the Micro, Small and Medium Enterprises Development Act,2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed that none of the suppliers have confirmed that they are registered under the provisions of this Act. In view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.

8 The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report issued by Life Insurance Corporation of India (LIC) is as under:-

9. In accordance with the Accounting Standard (AS) 17 "Segment Reporting" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the company has only one reportable segment "Bead Wire" for the current year. "Windmill" is not a reportable segment. As the power generated by windmill is exclusively used for captive consumption in bead wire, the financial result of "Windmill" segment have been included in "Bead Wire" segment.

10. In accordance with the Accounting Standard (AS)18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevant disclosure is as under:-

11. Earning Per Share :

The Company's share capital consists of equity share. The basic and diluted earning per share is calculated as under:

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Mar 31, 2011

1. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2. The estimated amount of contract remaining to be executed on capital account and not provided for Rs. 1,50,000/- (Previous Year Rs. 1,40,57,871/-) Advances paid to suppliers of capital goods is Rs. 1,87,928/- are (Previous Year 47,01,065/-) included in the Capital Work in progress.

3. Contingent liabilities

a) The company has given the Corporate Guarantee for the credit facilities availed by M/s Rajratan Thai Wire Co.Ltd, Thailand the wholly owned subsidiary of the company: USD 12.30 Million (Previous Year USD 12.30 Million).

b) The Demands have been raised by the Income Tax department against the company after assessment for the following years though the company has filed appeals before the appropriate authorities against such assessment orders.

AY.2007-08 Rs. 1,34,891/-

4. Installments of term loans from financial institutions falling due within one year are Rs. 5,22,00,000/- (Previous year Rs. 4,32,00,000/-) and Sales Tax Deferment Loan Rs. 59,77,724/- (Previous Year Rs. 1,72,23,072/-)

5. Quantitative Information as required under Clause 3(i) (a), 3(h), 4-C, 4-D of Part II of Schedule VI to the Companies Act, 1956.

6. During the year the dividend received from Subsidiary M/s Swaraj Technocrafts Pvt. Ltd. is X 87,500/- (Previous Year X 87,500/-).

7. Under the Micro, Small and Medium Enterprises Development Act,2006 which came into force from 2nd October 2006, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises. The Management has confirmed to us that none of the suppliers have confirmed that they are registered under the Provisions of this Act. in view of this, the liability of the interest and disclosures are not required to be disclosed in the financial statement.

8. During the year the commission on sales paid to Selling Agents is Rs. 31,41,085/- ( Previous Year Rs. 4,95,031/-).

9. The amount of Foreign Exchange difference included in the profit & loss account is Rs. 1,22,906 /- (Previous Year Rs. (-) 21,39,237/-).

10. The disclosure required as per Accounting Standard (AS) 15 "Employees Benefit" issued by the Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 and based on the report issued by Life Insurance Corporation of India (LIC) is as under:-

(a) The company has taken Group Gratuity and Cash Accumulation Policy issued by the LIC which is a defined benefit plan.

11. In accordance with the Accounting Standard (AS)18 "Related Party Disclosures" issued by The Institute of Chartered Accountants of India (ICAI) and notified under the Companies Accounting Standards Rules, 2006 the names of the related parties and the relevantdisclosureisasunder:-

(a) Name of the related party and description of relationship: i. Key Management Personnel:

1) Mr.ChandanmalChordia - Chairman (Till 5th May 2010)

2) Mr.SunilChordia - Managing Director

3) Mr.DeepeshTrivedi - Executive Director

ii. Relatives of Key Managerial Personnel

1) Smt. Shantadevi Chordia W/o Shri Chandanmal Chordia

2) Smt. Sangita Chordia W/o Shri Sunil Chordia

iii. Companies/entities under the control of Key Management personnel

1) M/s.Rajratan Resources Pvt. Ltd.,

2) M/s.Rajratan Investment Ltd,

3) M/s. Cee Cee Engineering Industries Pvt.Ltd. iv Subsidiary

1) M/s. Rajratan Thai Wire Company Ltd., Thailand

2) M/s. Swaraj Technocraft Pvt Ltd .

12. Debit/Credit balances written off during the year amounting to Rs. 10,66,592/- includes:-

(a) Advance paid to raw material suppliers of Rs. 5,00,000/- against which no supplies are received.

(b) Bad debts written off during the year amounting to Rs. 51,31,778/-

(c) Credit balance of one of the supplier of Rs. 45,45,758/- is written back which in the opinion of the management is not payable.

13. Previous Year's figures have been regrouped and recast wherever considered necessary to make them comparable with the current year's figures.

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Mar 31, 2010

1. In the opinion of the Board of Directors of the Company, the Current Assets, Loans and Advances have a value realizable in the ordinary course of business at least equal to the amount at which they are stated and provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

2. The estimated amount of contract remaining to be executed on capital account and not provided for Rs 1,40,57,871/- (Previous Year Rs. 50,10,663/-) Advances paid to suppliers of capital goods is Rs.47,01,065/- are (Previous Year 12,26,453/-) included in the Capital Work in progress.

3. Contingent liabilities

a) Bank Guarantees given by Bank Rs. NIL (Previous Year Rs.6,76,000/-).

b) The company has given the Corporate Guarantee for the credit facilities availed by M/s Rajratan Thai Wire Co.Ltd, Thailand the wholly owned subsidiary of the company: USD 12.30 Million (Previous Year USD 12.30 Million)

c) The Demands have been raised by the Income Tax department against the company after assessment for the following years though the company has filed appeals before the appropriate authorities against such assessment orders.

A.Y.2007-08 Rs. 1,34,891/-

4. Installments of term loans from financial institutions falling due within one year are Rs.4,32,00,000/- (Previous year Rs.5,43,33,233/-) and Sales Tax Deferment Loan Rs. 1,72,23,072/- (Previous Year Rs. 1,42,09,904/-)

5. Quantitative Information as required under Clause 3(i) (a), 3(ii), 4-C, 4-D of Part II of Schedule VI to the Companies Act, 1956.

6. During the year the dividend received from Joint Venture in M/s Swaraj Technocrafts Pvt. Ltd. is Rs.87,500/- (Previous Year Rs. 1,31,250/-).

7. The suppliers of the company have not informed about the status of their Registration under Micro, Small and Medium Enterprises Act, there for the information in this regard could not be compiled with. The total outstanding dues of micro and small enterprises have been considered as NIL.

8. During the year the commission on sales paid to Selling Agents is Rs. 4,95,031/-( Previous Year Rs.38,24,428/-).

9. The amount of Foreign Exchange difference included in the profit & loss account is Rs. (-)21,39,237/- (Previous Year Rs. (-) 11,23,486/-).

Notes:- i. The basis of inter segments transfers is the rate of power decided by MP State Electricity Board. ii. There are no changes is segment accounting policies. iii. Type of products and services in business segment is as under:-

Steel Wire - Tyre Bead Wire

Wind Mill - Generation of Electrical Energy