Notes to Accounts of Rapicut Carbides Ltd.

Mar 31, 2024

1) The Company has elected to continue with the carrying vaiue of its Property Plant & Equipment (PPE) recognised as of April 1, 2016 {transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AA of Ind AS 101,

2) The aggregate depreciation charge for the year has been included under depreciation and amortisation expense

in the Statement of Profit and Loss.

1) The Company has elected to continue with the carrying value of its intangible assets recognised as of April 1,2016 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AA of Ind AS 101.

2) The aggregate amortisation charge for the year has been included under depredation and amortisation expense in the Statement of Profit and Loss.

19.3 Right, Preferences and restrictions attached to Shares Equityslwes

The Company has only one class of Equity shares having a par value of 110/¦ per share. Each holder of equity shares is entitled to one vote per share. Any dividend declared by the Company shali be paid to each holder of Equity shares in proportion to the number of shares held to total equity shares outstanding as on that date. In the event of liq u id atio n of th e Compan y, the hoi ders of th e eq uity shares will be entit led to re ceive rema i nm o ass ets of the Company after distribution of all Preferential amounts. The distribution will be in proportion to the number of equity shares held by lhe shareholders.

20.2 Securities Premium : represents the amount received in excess of par value of securities i.e equity shares. Section 52 of Com panics Act 2013 specify restriction and utilisation of security premium.

20.3 Capital Reserve : represents the amount duo to remission of capital liability on one time settlement from Financial Institution during the year 2001-02.

20.4 General Reserve : represents the statutory reserve, this is in accordance with Indian Corporate Law wherein a portion of profit is apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company can declare dividend. However, under Companies Act, 2013, transfer of any a mount to General reserve is al (he discretion of the Company.

20 5 Other Comprehensive Income Reserve i represents the balance in equity forthe items to be accounted in Other Comprehensive Income, Other Comprehensive income is classified into i) items that will not be reclassified to profit and loss, ii) items that will be reclassified to profit and loss.

20.6 Reta i n ed E a rn i rigs : rep rese nts the u nd i stri b uted p rof its of the C o m pa ny.

* Cas h Cred i tfrom Stole Bank of India is secu red aga i nsl H ypol he ca lion of or e nti re cu rren y a ssets of t h e com pa ny w h i oh includes stock of raw materials, stock-in process, finished goods, receivabies/book debts, Company''s Immovable properties form part of the Collateral security and the Directors have given their Persona! Guarantee for the same.

24.1 The Company has a vailed borrowings from Slate Bank of India against security of Stocks Debtors. The Company f i I es q u a rterl y retu m s with the Bank .The q uarterly statem ents ft I ed by th e C o m pa ny with s uch b an k s a nd fin and al i nstitubons a re n ot in agree me nt wi th t h e boo ks of acco u nts of the Com pa ny a nd the d eta i I s are as fo I lows:"

Reasons of discrepancies:

1. While submitting stock statements to the bank, the Company has not considered the inventory details of stores, spares, materials in transit and non-moving inventory,

2. While submitting statements of Trade Receivables and Trade Payables, the Company has not considered outstanding balances for more than 180 days.

25.1 There are no Micro and Small Enterprises to whom Company owes dees, which are outstanding for more than 45 days as at 31 &( March, 2024.

25.2 The amount due to Micro and Small Enterprises as defined in the The Micro, Small and Medium Enterprises Development Act, 2006" has been determined to the extent such parties have been identified on the basis of i nformati o n avails ble with th e Compan y. The disclo s u res relat i n g lo M ic ro an d £ m a 11E nte rp rise s are as below:

*Based on the confirmation from Vendors.

25.3 The company has made payments to Micro and small suppliers amongst which to few suppliers are beyond the stipulated payments terms as prescribed under Micro, Small and Medium Enterprises Development Act, 2006. Since these Micro and smalt suppliers receive payments as per mutually agreed payments terms, none of the suppliers h as da i me d an y i rite re at from I he com pa ny f o r payments made beyond sti pu I ated pe riod, if a ny.

3 Contingent Liabilities and Commitment: -(Tothe extent notprovided only)

a) Contingent Liabilities not provided for t Nil (PY. ? Mil}

b) Estimated amount of contracts remaining to be executed (Net of Advances)? Nil (P.Y. ? Nil)

4, As per Ind AS 19 "Employee Benefits”, the disclosure of employee benefits as Accounting Standard (Ind AS) are given below:			defined in the Indian (T in Lakhs)
	Particulars	For the Year Ended 31st March, 2024	For the Year Ended 31st March, 2023
	Expenses recognized for defined Contribution Plan
	Company''s contribution to Provident Fund	34,16	32.59
	Company''s contribution to Super Ann uat .on Fund	11.05	11.38
	TOTAL	46.00	44.46

Defined Benefit Plan * Gratuity

Th e C ompany provi de s for g ratu ity be n efi t u n der a def i n ed b en efi t reti re m ent scheme (tfi e" G rat u i ty S cb erne" }as laid out by the Payment of Gratuity Act, 1972 of India covering eligible employees. The Gratuity Scheme provides for a I ump su m pa y ment to e m p! oyees whohavecomp leted at I ea st five ye ars of se rvice with the Grou p, based o n sa I ary and te n ure. of e m pioyme nt. Ua biliti e$ wit h rag arto the g ratu ity sche m e a re determ i n.ed by actua ri al vajj uat ion ca rri ed out using the Projected Unit Credit Method by an independent actuary. The Gratuity liability is funded by payment to the trust estblished with Life insurance Corporation of India.

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

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

Sensitivity analysis is performed by varying a single parameter while keeping all other parameters unchanged. Sensitivity analysis fails to focus on the interne I ationsti ip between underlying parameters. Hence, the results may va ry if two o r more va ria bles a re c ha n ged srmu Ita n eousl y.

The method used does not indicate anything about the likelihood of change if any parameter and the extent of the change if any.

L) Gratuity payable as per revved accounting ind AS 19 & actuanal valuation submitted by independent actuaries difference of fair market value of defined plan & present value of defined plan has been provided in other comprehensive expense amounting to Rs. 2.33 lakhs including past service cost, interest cost and liability of earlier year and difference in actuarial liability including service cost and interest cost for the year 31.03.2024.

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

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

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in I evel 3. There a re no transfers be tween I e vels 1 a nd 2 du ring the yea r The C ompany''s pci i cy is to recog ni ze transfe rs i nto a nd tra nsfe rs o u t of fair value h iera rcby leve Is at th e end of th e reporting period,

Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- The use of quoted market prices or dealer quotes for similar instruments The fsi rvalue of the remaini ng fin ancia l i nstruments i s de te mein ed usi og N AV.

- The company has invested in the equity instruments of company. The valuation exercise of unquoted equity instruments carried out by the company with the help of an estimated farr value at each reporting period based on available historical annual reports and other information in the public domain.

- Changes in Level 3 fair value are analysed at the end oFeach reporting period.

7 Financial Risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk.

- Liquidity risk, and

- Market risk

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set a pprop ri ate risk control s and to m on i tor ris ks. R i sk ma nag ament poiici e$ a n d systems a re reviewed p eriodica I ly to reflect changes in market condilions and the Company''s activities. The Company monitors compliance with the Company''s risk management policies and procedures, end reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

i) Credit risk:

Credit risk is the risk of financial loss tothe Company if a customer or counterparty to a financial instrument fails to meet its contractual obhgaiions, and arises principally from the Company''s receivables from customers, deposit and other receivables, Credit risk is managed through continuous monitoring of receivables and follow up of overdue s.

Investments:

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter parties, and does not have any significant concentration of exposures to specific industry sector or specific country risks.

Trade receivables:

The Company''s exposure to credit risk Is influenced mainly by the individual characteristics of each customer, demographics of the customer, default risk of the industry and country in which the customer operates, Credit risk is managed through credit approvals, establishing credit limits, and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company has used expected credit loss (FCL.) 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 i nto account extern at a nd i nterna I nsk fa ctors a n 0 h i sto rical d ata of cred i t losses f rom va no u s cu stom ers.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired

ir) Liquidity risk

LiquFdity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. The Company en s u res that it will have suffi c ient I i qu id ity to meet its lia bihii es wh en the y a re d ue, u n de r both n o rma I and stressed condition.

Maturities of Financial Liabilities

The table herewith analyse the Company''s Financial Liabilities into relevant maturity groupings based on their contractual maturities for:

The amount disclosed in the table are the contractual undiscountcd cash flow. Balance dues within the 12 months equal there carrying balances as the impact of discounting is not significant,

iii) Market risk:

Market risk is the risk that changes in market prices - such as foreign exchange rates_f interest rates and other price r sk such as commodity risk. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.

Price Risk:

The Company is mainly exposed to the price risk due its investment in equity instruments and equity & debi mutuaI fu n d. The p n ce ri sk a rises du e to un as cellar n ity a bo u t th e f utu re ma rket value of th es e investme nts. Management Policy:

The Company maintains its portfolio in accordance with framework set by risk management policies duly monitored by competent professionals.

8. Capital management

The Company''s capital management objectives are:

- To e nsu re the Company^rs ab i lity i o con I i n ue as g oing conee rn; and

- To p rovide a n adeq uate retu rn to shareholde rs throuq h opti m i zati on of debts an d equ ity b al a n ce.

9 Use of Estimates and Judgments

The preparation of the Company''s Financial Statements requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompa nying d iscl osures. and the disclosure of conti ng ent iia bifiti es. Actual res uits m ay d iff er from t h ese est i mates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the Financial Statements is included in these notes.

10 The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benamt property,

11 The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the sialutory period.

12 The Compa ny ha ve not trad ed or inve sted in Cry pio ctirre ncy orVirt u al Co rre ncy do ring the pe riod tye ar.

13 The Com pa ny have not ad vanced o r I oa ned o r i nvested fu n ds to a ny othe r perso n (s) or entityf i es), i nctud i ng fore ign ent iti es (f ntermed ia ne s} with th & u nd ersta n d i n g the t th e tn termedia ry shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behaif of the Company {Ultimate Beneficiaries)or

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

14 The Company have not received any fund from any personfsjorentityfies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) thm the Company shelf

(a) directly or in directly I end or i nvest in oth er persons or e ntities id entifi ed i n any ma n ne r wh ats oeve r by or on beha If of (tie Fundi ng Party (Ultimate B eneficia rie s) or

(b) p rovide a ny gg arantee, seenr ity o r the I i ke o n n eha I f of the U Itima te Ba n efi cia he s.

15 The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1951 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

1G The Company does not have any Immovable Property whose title deeds are not held in the name of Company.

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

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

19 The Company has sought balance confirmations from trade receivables and trade payables, wherever such balance confirmations are received by the Company, the same are reconciled and appropriate adjustments if required, are made in the books of account.

20 The Company does not have any transaction with siruck-off Companies.

21 Approval of Financial Statements

The Financial Statements were approved for issue by the Board of Directors on 06th May, 2024

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Mar 31, 2018

Note No. 1.

STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES:

1. Company Overview

Rapicut Carbides Limited (RCL) was incorporated as a Public Limited Company in April 1977 and an integrated unit was set up at Ankleshwar, Gujarat for manufacturing of Tungsten Carbide Tips, Inserts and other Carbide products from ore stage. Commercial Production Commenced in October 1979.

Gujarat Drillwell Pvt. Ltd was merged with the Company in the year 1993.

The Company has listed its equity shares with Bombay Stock Exchange in the year 1980.

2. Basis of Preparation of Financial Statements

Ministry of Corporate Affairs notified roadmap to implement Indian Accounting Standards (‘Ind AS’) notified under the Companies (Indian Accounting Standards) Rules, 2015 as amended by the companies (Indian Accounting Standards) (amendment) Rules, 2016. As per the said roadmap, the Company is required to apply Ind AS for the year ended 31st March, 2018. The company has adopted Ind AS from the year 1st April, 2017 with 1st April, 2016 being the date of transition. The comparative figures in the Balance Sheet as at 31st March, 2017 and 1stApril2016and the Statement of Profit and Loss and the Cash Flow Statement for the year ended 31st March, 2017 has to be restated accordingly. The Company has adopted all applicable Ind AS standards and the adoption was carried out in-accordance with Ind AS 101 ‘First Time Adoption of Indian Accounting Standards’.

a. Statement of Compliance

The Comparative Financial Statements comprising Balance Sheet, Statement of Profit and Loss, Statement of Changes in Equity, Cash Flow Statement, together with the Notes to accounts along with a summary of the significant accounting policies and other explanatory information for the year ended 31st March 2018 have been prepared in accordance with the Ind AS notified above. For all periods up to and including the year ended 31st March, 2017, the Company prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

b. Basis of Measurement - Historic Cost Convention

These Financial statements have been prepared on a historical cost basis, except for the following:

Certain financial assets and liabilities that is measured at fair value (refer accounting policy regarding financial instruments);

Assets held for sale - measured at fair value less cost to sale;

Defined benefit plans - plan assets measured at fair value All assets and liabilities has been classified as current or noncurrent as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the CompaniesAct, 2013.

c. Functional and Presentation Currency

Items included in the Financial Statements of the entity are measured using the currency of the primary economic environment in which the entity operates (“the functional currency”). Indian Rupee is the Functional currency of the Company. The Financial statements are presented in Indian Rupees, which is the Company’s presentation currency.

d. Use of Estimates

The preparation of Financial Statements in accordance with Ind - AS requires use of estimates and assumptions for some items, which might have an effect on their recognition and measurement in the Balance Sheet and Statement of Profit and Loss. The actual amounts realized may differ from these estimates. Accounting estimates could change from period to period. Actual results could differ from those estimates. Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognized in the period in which the results are known / materialized and, if material, their effects are disclosed in the notes to the Financial Statements.

Estimates and assumptions are required in particular for:

(i) Determination of the estimated useful life of tangible assets and the assessment as to which components of the cost may be capitalized.

Useful life of tangible assets is based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful life is different from that prescribed in Schedule II, it is based on technical advice, taking into account the nature of the asset, estimated usage and operating conditions of the asset, past history of replacement and maintenance support. An assumption also needs to be made, when the Company assesses, whether an asset may be capitalized and which components of the cost of the asset may be capitalized.

(ii) Recognition and measurement of defined benefit obligations

The obligation arising from the defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation and vested future benefits and life expectancy. The discount rate is determined with reference to market yields at the end of the reporting period on the government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.

(iii) Recognition of deferred tax assets

A Deferred tax asset is recognized for all the deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. The management assumes that taxable profits will be available while recognizing deferred tax assets.

(iv) Recognition and measurement of other provisions

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the figure included in other provisions.

(v) Discounting of long-term financial liabilities

All financial liabilities are required to be measured at fair value on initial recognition. In case of financial liabilities, which are required to be subsequently measured at amortized cost, interest is accrued using the effective interest method.

(vi) Determining whether an arrangement contains a lease

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At the inception or on reassessment of an arrangement that contains a lease, the Company separates payments and other consideration required by the arrangement into those for the lease and those for the other elements based on their relative fair values. If the Company concludes for a finance lease that, it is impracticable to separate the payments reliably, then an asset and a liability are recognized at an amount equal to the fair value of the underlying asset; subsequently, the liability is reduced as payments are made and an imputed finance cost on the liability is recognized using the Company’s incremental borrowing rate. In case of operating lease, the Company treats all payments underthe arrangement as lease payments.

3 Standards Issued but not yet effective

Ind - AS 115 “Revenue from Contract with Customers: The MCA had notified Ind - AS 115 “Revenue from Contract with Customers” in February, 2015. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to the customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further, the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers.

4 Current verses Non Current Classification:

(i) The assets and liabilities in the Balance Sheet are based on current/ non - current classification. An asset as current when it is:

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

2. Held primarily forthe purpose of trading.

3. Expected to be realized within twelve months afterthe reporting period, or

4. Cash or cash equivalents 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:

1. Expected to be settled in normal operating cycle

2. Held primarily for the purpose of trading

3. Due to be settled within twelve months after the reporting period, or

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

All other liabilities are treated 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 realization in cash and cash equivalents.

Notes

5.1 On transition to Ind AS, Property, Plant and Equipment are carried at net block. As it is deemed cost as per Ind AS 101.

5.2 In accordance with the Ind AS 36 “Impairment of Assets”, the management has during the year carried out and exercise of identifying the assets that would have been impaired in respect of each unit. On the basis of this review carried out by the Management, impairment loss on Fixed Assets has been accounted in profit & loss account during the year.

Note

6.1 The said shares have devolved on the company in lieu of 17,500 equity shares of Gujarat Drilwell Pvt. Ltd. pursuant to Gujarat High Court order and are held in Trust on behalf of the Company. These Shares have been disposed off.

Note 7.1 All trade receivable are non interest bearing and receivable are settled within normal credit period approved by the company.

Note

Nature of Reserves

8.1 Capital Reserve: represents the amount due to remission of capital liability on onetime setlement from financial institution during the year 2001-2002.

8.2 Securities Premium Reserve : represents the amount received in excess of par value of securities i.e equity shares. Section 52 of Companies Act, 2013 specify restriction and utilisation of security premium.

8.3 General Reserve : represents the statutory reserve, this is in accordance with Indian Corporate law wherein a portion of profit is apportioned to general reserve. Under Companies Act, 1956 it was mandatory to transfer amount before a Company can declare dividend, however under Companies Act, 2013 transfer of any amount to General reserve is at the discretion of the Company.

8.4 Retained Earnings: represent the undistributed profits of the Company

8.5 Other Comprehensive Income Reserve : represent the balance in equity for items to be accounted in Other Comprehensive Income.

Other Comprehensive Income is classified into i) items that will not be reclassified to profit and loss, ii) items that will be reclassified to profit and loss.

Note

Secured Loan

Term Loan from State Bank of India is secured against Hypothecation of Inventories & book debts.

Company’s Immovable properties form part of the Collateral security and the working Directors have given their Personal Guarantee for the same.

Unsecured Loan

Term loan facilities availed from State Bank of India is secured against hypothication of vehicle.

Note :-9.1

There are no Micro and Small Enterprises to whom Company owes dues, which are outstanding for more than 45 days as at 31st March, 2018. This 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

Note :-9.2

All Trade Payables are non-interest bearing and payable or settled within normal operating cycle of the Company.

Note-10.1

Unclaimed dividend do not indue any amount, due & outstanding, to be credited to Investors Education and Protection Fund.

Note-10.2

Current maturities of long term debt to the extent of Rs. 22,03,387 are secured by way of charge on company assets and guarantee of working directors and balance Rs. 2,92,610 are unsecured.

Secured Loan

Cash Credit from State Bank of India is secured against Hypothecation of Inventories & book debts.

Company’s Immovable properties form part of the Collateral security and the Working Directors have given their Personal Guarantee for the same. Loan is repayable on demand.

With effect from 1 st July,2017,Goods and Service Tax(GST) was Introduced and hence, the revenue from operation for the period 01.07.2017 to 31.03.2018 is net of GST.However for the period 01.04.17to 30.06.2017 is inclusive of excise duty amounting to Rs.74,98,625/-

Note No. 11

NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 31ST MARCH, 2018

1. As per opinion of the Board of Directors the Current Assets, Loans and Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realize to become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs and acceptance of rejection claims.

3. Exchange difference amounting to Rs.6,55,261/- (P.Y. Rs. 12,07,658/-) has been adjusted in the cost of corresponding raw materials/consumables, Rs.657/- (P.Y. Rs. .6,239/-) has been adjusted in export sales

4. Micro Small and Medium Enterprise Development Act, 2006

As per requirement of Section 22 of Micro, Small & Medium Enterprises Development Act,2006 following information disclosed to the extent identifiable

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. Segment Reporting. The Company has only one business segment “Tungsten and Tungsten Carbide Products” as primary segment as required by Ind AS 108 “Operating Segment” under the companies (Indian accounting standard) Rules 2015. The secondary segment is geographical which is given as under:

7. Contingent Liabilities and Commitment (To the extent not provided only)

a) Company’s Income Tax Assessments have been completed up to the Assessment year 2016-17. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

b) Company’s VAT Assessments have been completed up to the Financial Year 2013-14.

c) Show Cause Notices / Demands for Excise / Service Tax / Income Tax claims raised by Department and contested by the Company are Rs.8.00 lakhs (P.Y. Rs. 12.75 lakhs). The Company has paid Rs.2.97 lakhs (P.Y. Rs. 3.00 lakhs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to coverthe liabilities

All Permanent Employees having served from the 1st day of their employment are entitled to the benefits of the contribution to Provident Fund. The Company contributes specified percentage of the salary paid to Employees to the Defined Fund.

Defined Benefit Plan - Gratuity

All Employees who have completed five years or more of service are entitled to benefits of Gratuity.

The Company has the Employee’s Group Gratuity Scheme managed by Life Insurance Corporation of India which is a Defined Benefit Plan. The Employees Leave Encashment scheme, which is unfunded. Below table sets forth the changes in the projected benefit obligation and plan assets and amounts recognized in the Balance Sheet as at 31st March, 2018 and 31 st March, 2017 being the respective Measurement dates:

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. Same assumptions were considered for comparative period i.e. 2016-17 as considered in previous GAAP on transition to Ind As.

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

Sensitivity analysis is performed by varying a single parameter while keeping all other parameters unchanged. Sensitivity analysis falls to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the Projected Unit Credit method has been applied as when calculating the defined benefit obligation recognized within the Balance Sheet. The method used does not indicate anything about the likelihood of change if any parameter and the extent of the change if any.

L) Gratuity payable as per revised accounting Ind AS 19 & actuarial valuation submitted by independent actuaries difference of fair market value of defined plan & present value of defined plan has been provided in other comprehensive income amounting to Rs. 57,00,170/- including past service cost, interest cost and liability of earlier year and difference in actuarial liability including service cost and interest cost forthe year 31.03.2018 of Rs. 10,88,035/- is Recognized in Profit & loss account

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. Same assumptions were considered for comparative period i.e. 2016-17 as considered in previous GAAP on transition to Ind As.

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

Sensitivity analysis is performed by varying a single parameter while keeping all other parameters unchanged. Sensitivity analysis falls to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the Projected Unit Credit method has been applied as when calculating the defined benefit obligation recognized within the Balance Sheet. The method used does not indicate anything about the likelihood of change if any parameter and the extent of the change if any.

8. Operating Lease Commitments (Company is a Lessee)

The Company does not have any operating leasing arrangement in respect of vehicles and there are no commitment with respect to lease rental payable.

9. Events Occurring after Balance Sheet

a) The financial statements were approved for issue by the board of directors on May 26,2018.

b) Dividend proposed to be distributed

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

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

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

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

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

ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

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

- The fair value of the remaining financial instruments is determined using NAV.

- Valuation of unquoted equity shares is done by external valuation agency.

- Changes in Level 2 fair value are analysed at the end of each reporting period.

12. Financial Risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk.

- Liquidity risk, and

- Market risk

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk controls and to monitor risks. Risk management policies and systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company.

i) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers, deposit and other receivables. Credit risk is managed through continuous monitoring of receivables and follow up of overdues.

Investments

The Company limits its exposure to credit risk by generally investing in liquid securities and only with counterparties that have a good credit rating. The Company does not expect any losses from non-performance by these counter parties, and does not have any significant concentration of exposures to specific industry sector or specific country risks.

Trade receivables

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer, demographics of the customer, default risk of the industry and country in which the customer operates, Credit risk is managed through credit approvals, establishing credit limits, and continuously monitoring the creditworthiness of customers to which the Company grants credit terms in the normal course of business.

The Company 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 external and internal risk factors and historical data of credit losses from various customers.

Other than trade and other receivables, the Company has no other financial assets that are past due but not impaired

ii) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligation as they fall due. The Company’s ensure that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed condition.

Maturities of Financial Liabilities

The table herewith analyse the Company’s Financial Liabilities into relevant maturity groupings based on their contractual maturities for:

The amount disclosed in the table are the contractual undiscounted cash flow, Balance dues within the 12 months equal there carrying balances as the impact of discounting is not significant.

iii) Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and other price risk such as commodity risk, Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.

Price Risk

The Company is mainly exposed to the price risk due its investment in equity instruments and equity & debt mutual fund. The price riskarises due to unascertainity about the future market value of these investments.

Management Policy

The Company maintains its portfolio in accordance with framework set by risk management policies duly monitored by competent professionals.

13. Capital management

The Company’s capital management objectives are:

- To ensure the Company’s ability to continue as going concern; and

- To provide an adequate return to shareholders through optimization of debts and equity balance.

The Company monitors capital on the basis of the carrying amount of debt less cash and cash equivalents as presented on the face of the financial statements. The Company’s objective for capital management is to maintain an optimum overall financial structure.

14. Use of Estimates and Judgments

The preparation of the Company’s financial statements requires the management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected. In particular, information about significant areas of estimation uncertainty and critical judgments in applying accounting policies that have the most significant effect on the amounts recognized in the financial statements is included in these notes.

15. Details of Hypothecation of Assets

Inventory and Debtors are Hypothecated as security for working capital borrowings.

16. Commission to Non-Executive Director

Remuneration of Rs 4.84 Lacs to the Non-Executive Director is subject to approval of shareholders in the ensuing Annual General Meeting.

17. Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year’s classification as per Schedule III of the companies Act, 2013.

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Mar 31, 2016

Note No. 28 NOTES FORMING PART OF ACCOUNTS FOR THE YEAR ENDED 2015-16

1. In the opinion of the Board of Directors the Current Assets, Loans and Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realize or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs and acceptance of rejection claims.

3. Exchange difference amounting to Rs.10,97,168/- (P.Y. Rs.13,49,088/-) has been adjusted in the cost of corresponding raw materials/consumables, Rs.3,255 (P.Y. Rs.NIL/-) has been adjusted in export sales.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On these bases amount over due to such unit is exceeding Rs .ONE LAKH is “NIL”and outstanding balance from such parties is Rs.Nil at the yearend.(P.Y. Rs.NIL).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. Segment Reporting .The Company has only one business segment “Tungsten and Tungsten Carbides Products” as primary segment. The secondary segment is geographical which is given as under:

9. Contingent Liabilities:

a) Company’s Income Tax Assessments have been completed uptotheAssessmentyear2013-2014. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

b) Company’s Sales Tax Assessments have been completed up to the Financial year 2011-12.

c) Show Cause Notices/Demands for Excise/Customs duty/income Tax claims raised by Department and contested by the Company are Rs.12.69 lacs (Rs.8.52 lacs). The Company has paid Rs. 3.13 lacs (P.Y. Rs. 2.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

d) Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs. 36,21,885/- (P.Y. Rs. 44,66,155/-) was not provided for, as per management’s explanation & opinion same is contingent in nature, as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate, & Salary escalation of service etc. for the year.

10. Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year’s classification as per Revised schedule VI of the companies Act, 2013.

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Mar 31, 2015

1. In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Exchange difference amounting to Rs.13,49,088/- (P.Y. Rs.5,32,564/-) has been adjusted in the cost of corresponding raw materials/consumables, Rs. NIL (P.Y. Rs. NIL /-) has been adjusted in export sales and Rs. NIL (P.Y. Rs. 27,736/-) has been adjusted in Fixed Assets.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On these bases amount over due to such unit is exceeding Rs. ONE LAC is "NIL"and outstanding balance from such parties is Rs. Nil at the year end.(P.Y. Rs. NIL).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. Segment Reporting : The Company has only one business segment "Tungsten & Tungsten Carbides Products" as primary segment. The secondary segment is geographical which is given as under:

7. Contingent Liabilities:

a) Company's Income Tax Assessments have been completed up to the Assessment year 2012-2013. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

b) Company's Sales Tax Assessments have been completed up to the Financial year 2010-11.

c) Show Cause Notices/Demands for Excise/Customs duty/Income Tax claims raised by Department and contested by the Company are Rs.8.52 lacs (Rs.16.44 lacs). The Company has paid Rs.2.85 lacs (P.Y. Rs.5.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

d) Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs.44,66,155/-(P.Y. Rs.61,32,947-) was not provided for, as per management's explanation & opinion same is contingent in nature , as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate, & Salary escalation of service etc. for the year.

The principal assumptions used by LIC in determining valuation.

8. Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year's classification as per Revised schedule VI of the companies Act, 2013.

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Mar 31, 2014

1. In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Exchange difference amounting to Rs.5,32,564/- (P.Y. Rs.7,42,325/-) has been adjusted in the cost of corresponding raw materials/consumables, Rs.NIL (P.Y. Rs. 732/-) has been adjusted in export sales and Rs. 27,763/- (P.Y. Rs. 864/-) has been adjusted in Fixed Assets.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On these bases amount over due to such unit is exceeding Rs .ONE LAC is "NIL"and outstanding balance from such parties is Rs.Nil at the year end(P.Y. Rs.NIL).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. CONTINGENT LIABILITIES :

a) Company''s Income Tax Assessments have been completed up to the Assessment year 2011-2012. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

b) Company''s Sales Tax Assessments have been completed up to the Assessment year 2009-10.

c) Show Cause Notices/Demands for Excise/Customs duty/Income Tax claims raised by Department and contested by the Company are Rs.16.44 lacs (Rs.15.40 lacs). The Company has paid Rs. 5.85 lacs (P.Y. Rs.5.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

d) Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs.61,32,947/- (P.Y. Rs.56,77,287/-) was not provided for, as per management''s explanation & opinion same is contingent in nature as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate, & Salary escalation of service etc. for the year.

The principal assumptions used by LIC in determining valuation.

(1) Withdrawal Rate : 1% to 3% depending on age

Discounting Rate : 8% p.a.

Salary Escalation : 7% p.a.

2013-14 (Rs.) 2012-13 (Rs.)

(2) Accrued Gratuity : 1,35,93,343/- 1,24,88,831/-

Fund value as on : 74,60,396/- 68,11,544/-

Net Unfunded Gratuity Liability : 61,32,947/- 56,77,287/-

(3) Defined Benefit obligation plan :

Opening Balance : 68,11,544/- 61,72,827/- Add : Amount credited during the year : 8,63,856/- 9,60,780/-

Less : Amount paid during the year : 8,22,547/- 9,10,743/-

Add : Interest credited during the year : 6,07,543/- 5,88,680/-

Closing Balance : 74,60,396/- 68,11,544/-

(4) Present value of past defined obligation plan : 1,28,78,387/- 1,17,89,281/-

Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year''s classification as per Revised schedule VI of the companies Act, 2013.

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Mar 31, 2013

1. In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Exchange difference amounting to Rs.7,42,325/- (P.Y. Rs. 17,80,879/-) has been adjusted in the cost of corresponding raw materials/consumables, Rs.732 (P.Y. Rs. NIL) has been adjusted in export sales and Rs.864/-(P.Y. Rs. NIL) has been adjusted in Fixed Assets.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On this basis amount overdue to such units exceeding Rs .ONE LAC is "NIL''and outstanding balance from such parties is Rs.Nil at the year end(P.Y. Rs.NIL).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. Contingent Liabilities:

a) Company''s Income Tax Assessments have been completed up to the Assessment year 2010-2011. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

b) Company''s Sales Tax Assessments have been completed up to the Assessment year 2008-09.

c) Show Cause Notices/Demands for Excise/Customs duty claims raised by Department and contested by the Company are Rs. 15.40 lacs (P.Y. Rs. 15.40 lacs). The Company has paid Rs. 5.85 lacs (RY. Rs.5.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

d) Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs.56,77,287/- (RY. Rs.49,78,888/-) was not provided for, as per management''s explanation & opinion same is contingent in nature, as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate & Salary escalation of service etc. for the year.

7. Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year''s classification as per Revised schedule VI of the companies Act, 1956.

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Mar 31, 2012

1. In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. We have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Exchange difference amounting to Rs. 17,80,879/- (P.Y. Rs. 8,50,659/-) has been adjusted in the cost of corresponding raw materials/consumables purchased and Rs Nil (P.Y. Rs. 297/-) has been adjusted in export sales.

4. The identification of suppliers as small scale industrial undertaking has been done on the bases of information to the extent provided by the suppliers to the company. On these bases amount over due to such unit exceeding Rs. ONE LAC is "NIL" and outstanding balance from such parties is Rs. Nil at the year end (P.Y. Rs. 6601/-).

5. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

6. Contingent Liabilities:

I. Company's Income Tax Assessments have been completed up to the Assessment year 2009-2010. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

II. Company's Sales Tax Assessments have been completed up to the Assessment year 2008-09.

III. Show Cause Notices/Demands for Excise/Customs duty claims raised by Department and contested by the Company are Rs.15.40 lacs (Rs.21.15 lacs). The Company has paid Rs. 5.85 lacs (P.Y. Rs. 5.85 lacs) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

IV. Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs. 49,78,888/- (P.Y. Rs. 43,82,523/-) was not provided for, as per management's explanation & opinion same is contingent in nature, as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate & Salary escalation of service etc. for the year.

7. Figures of the previous year have been re-grouped/re-arranged wherever necessary to conform to this year's classification.

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Mar 31, 2010

1 In the opinion of the Board of Directors the Current Assets, Loans & Advances and Current Liabilities as reflected in the Balance Sheet represent the value they would realise or become payable as the case may be in the ordinary course of business.

2. Sundry Debtors include debts outstanding for more than 5 years Rs. 14.63 lacs (P.Y. Rs. 7.97 lacs) approx. The management is hopeful of their recovery to the best of the efforts being put in and as such no provision for doubtful debts is made. Further we have relied on the management representation in respect of determining reuse / sale of T.C. scrap, worn out Cylpebs & acceptance of rejection claims.

3. Sundry Creditors for goods & services are net of advances given to various parties.

4. Exchange difference amounting to Rs. 25,76,382/- (P.Y. Rs. 12,93,848/-) has been adjusted in the cost of corresponding raw materials/consumables purchased/resale of materials.

5. The identification of suppliers as small scale industrial undertaking has been done on the basis of information to the extent provided by the suppliers to the company. On this basis amount overdue to such unit exceeding Rs. ONE LAC is "NIL".

6. Provision for taxation has been made during the year as per completed Income Tax Assessment of the Company.

7. Company had filed petition in the Honble High Court of Gujarat for reduction of paid up share capital from Rs. 2,67,05,680/- divided into 26,70,568/- equity shares of Rs. 10/- each to Rs. 2,14,84,980/- divided into 21,48,498 Equity shares of Rs. 10/- each. Honble High Court of Gujarat has vide its order dated 13.07.2009 sanctioned the reduction in share capital as per companys petition. All the necessary formalities in this regard with Registrar of Companies, Gujarat, Ministry of Company Affairs have been complied. Formalities with BSE are in process as on date.

8. Contingent Liabilities:

I Counter Guarantee to State Bank of India in respect of guarantees given by Bank to third parties Rs. 17,08,796/- (Rs. 20,56,681/-).

II Outstanding Letters of Credit Rs. 1,29,64,800/- (Rs. 1,58,22,005/-).

III Capital commitment remaining to be executed & not provided Rs. 9,48.,880/- (P.Y. Rs. 1,25,000/-).

IV Companys Income Tax Assessments have been completed up to the Assessment year 2008-2009. In the opinion of the management, provision made in books is sufficient to cover liabilities in respect of pending assessments.

V. Companys Sales Tax Assessments have been completed up to the Assessment year 2006-2007.

V. Show Cause Notices/Demands for Excise/Customs duty claims raised by Department and contested by the Company are Rs. 15.40 lacs (Rs. 15.40 lacs). The Company has paid Rs. 5.85 lacs (RY. 5.85 las) under protest. Management has taken legal opinion that the provision made in the books is sufficient to cover the liabilities.

VII. Gratuity payable as per revised accounting standard & actuarial valuation submitted by LIC of India amounting to Rs. 34,89,520/- (P.Y. 36,52,440) was not provided for, as per managements explanation & opinion same is contingent in nature, as the valuation is based on assumption of Mortality rate, Withdrawal rate, Discounted rate, & Salary escalation of service etc. for the year.

The principal assumptions used by LIC in determining valuation.

(01) Withdrawal Rate 1% to 3% depending on age. Discounting Rate 8% p.a.

Salary Escalation 7% p.a.

(02) Accrued Gratuity 82,22,492 Fund value as on : 47,32.972

Net Unfunded Gratuity Liability : 34,89,520

(03) Defined Benefit obligation plan Opening Balance 39,41,404

Add: Amount credited during the year 7,45,351

Less: Amount paid during the year 3,29,977

Add: Interest credited during the year 3,76,194

Closing Balance 47,32,972

(04) Present value, of defined obligation plan 75,87,112

9 Figures of the previous year have been re-grouped/re-arranged wherever necessary to confirm to this years classification.