Notes to Accounts of Shree Metalloys Ltd.

Mar 31, 2024

(g) Provisions (other than employee benefits), Contingent Liabilities and Contingent Assets

A provision is recognized when the Company has a present legal obligation as a result of past event
and it is probable that an outflow of resources will be required to settle the obligation, in respect of
which reliable estimate can be made. Provisions are determined based on best estimate required to
settle the obligation at the Balance Sheet date. These are reviewed at each Balance Sheet date and
adjusted to reflect the Current best estimates.

Contingent liabilities are not recognized but are disclosed in the notes to the Financial Statements.

A contingent asset is neither recognized nor disclosed if inflow of economic benefit is probable.

(h) Revenue Recognition
1. Sale of goods:

Revenue from the sale of goods in the course of ordinary activities is measured at the fair value of
the consideration received or receivable, net of returns, trade discounts and volume rebates. This
inter alia involves discounting of the consideration due to the present value if payment extends
beyond normal credit terms. Revenue is recognized when control of promised products are
transferred to the customers in an amount that reflects the consideration expected to be received in
exchange for those products.

The timing of transfers of risks and rewards varies depending on the individual terms of sale. For
sale of Metal, usually such transfer occurs when the product is received at the customer’s
warehouse or factory.

(i) Recognition of dividend income, interest income

Dividend on Financial Instruments is recognized as and when realized. Interest is recognized on
accrual basis.

(j) Income tax

Income tax comprises current and deferred tax. It is recognized in profit or loss except to the extent
that it relates to a business combination or to an item recognized directly in equity or in other
comprehensive income.

1. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the
year and any adjustment to the tax payable or receivable in respect of previous years. The amount
of current tax reflects the best estimate of the tax amount expected to be paid or received after
considering the uncertainty, if any, related to income taxes. It is measured using tax rates (and tax
laws) enacted or substantively enacted by the reporting date.

Current tax assets and current tax liabilities are offset only if there is a legally enforceable right to
set off the recognized amounts, and it is intended to realize the asset and settle the liability on a
net basis or simultaneously.

2. Deferred tax

Deferred tax is recognized in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used for
taxation purposes. Deferred tax is also recognized in respect of carried forward tax losses and tax
credits.

Deferred tax assets are recognized to the extent that it is probable that future taxable profits will
be available against which they can be used. Therefore, in case of a history of recent losses, the
Company recognizes a deferred tax asset only to the extent that it has sufficient taxable temporary
differences or there is convincing other evidence that sufficient taxable profit will be available
against which such deferred tax asset can be realized. Deferred tax assets - unrecognized or
recognized, are reviewed at each reporting date and are recognized / reduced to the extent that it is
probable/ no longer probable respectively that the related tax benefit will be realized.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is
realized or the liability is settled, based on the laws that have been enacted or substantively
enacted by the reporting date.

The measurement of deferred tax reflects the tax consequences that would follow from the way
the Company expects, at the reporting date, to recover or settle the carrying amount of its assets
and liabilities.

Deferred tax assets or liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the
same taxable entity, or on different taxable entities, but they intend to settle current tax liabilities
and assets on net basis or their tax assists and liabilities will be realized simultaneously.

(k) Cash and Cash Equivalents

Cash and Cash equivalents include cash and cheques in hand, bank balances, demand deposits with
banks and other short term highly liquid investments that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value where original maturity is three
months or less.

(l) Borrowing cost

Borrowing cost are interest and other costs incurred in connection with the borrowing of funds.
Borrowing costs directly attributable to acquisition or construction of asset which necessarily take a
substantial period of time to get ready for their intended use are capitalized as part of cost of asset.
Other borrowing costs are recognized as an expense in the period in which they are incurred.

(m) Earnings per share

Basic earnings per share is calculated by dividing the net profit after tax for the year attributable to
Equity Shareholders of the Company by the weighted average number of Equity Shares outstanding
during the year.

Diluted earnings per Share is calculated by dividing net profit attributable to equity Shareholders
(after adjustment for diluted earnings) by average number of weighted equity shares outstanding
during the year plus potential equity shares.

(n) Cash Flow Statement

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

Note -27. Additional Regulatory Information

(A) Ths company does not possess any immovable properties which are not held in the name of the company.

(B) The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) during the year.

(C) The company does not have any proceeding initiated or pending against the company for holding any benami property under the
Benami Transactions (Prohibition) Act, 1988 (45 of1988) and rules made thereunder.

(D) The quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement
with the books of accounts.

(E) The company is not declared wilful defaulter by any bank or financial Institution or other lender in accordance with the guidelines
on willful defaulters issued by the Reserve Bank of India.

(F) The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section
560 of Companies Act, 1956.

(G) Disclosures as required under the Micro, Small and Medium Enterprises Development Act, 2006

(A) Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities, comprise loans and borrowings and trade and other payables. The main purpose of these
financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables
and cash and cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of
these risks and ensures that Company''s financial risks are identified, measured and governed in accordance with the Company''s policies
and risk objectives. The Board of Directors reviews and agrees policies for managing each of these risks which are summarized below.

(i) Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
Market risk that affects the Company comprises of one element: Interest rate risk. Financial instruments affected by market risk include
loans, borrowings and deposits.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market
interest rates. The Company''s exposure to the risk of changes in market interest rates relates primarily to short term debt obligations with
fixed interest rates.

(ii) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract leading to a financial
loss. The Company is exposed to credit risk from its operating activities and from its financing activities including deposits with banks and
other financial instruments.

Trade Receivables

Customer credit risk is managed by the Company''s policy, procedures and control relating to customer credit risk management. Credit
quality of a customer is assessed based on an extensive credit rating and individual credit limits are defined in accordance with this
assessment Outstanding customer receivables are regularly monitored. The maximum exposure to credit risk at the reporting date is the
carrying value of each class of financial asset disclosed in respective note. The Company does not hold collateral as security.

Cash deposits

Credit risk from balances with banks is managed by the Company in accordance with its policies. These policies are set to minimize
concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

(iii) Liquidity Risk

The Company manages its liquidity risk by using liquidity planning and balancing funds requirement vis-a-vis funds available. Various lines
of credit available are used to optimize funding cost and ensuring that adequate funds are available for business operations.

(B) Capital Risk Management

The Company''s objectives when managing capital are to:

- safeguard their ability to continue as a going concern so that they can continue to provide return for shareholders and benefits for
other stakeholders.

- maintain an optimal capital structure to reduce the cost of capital.

The Company monitors capital on the basis of the following debt equity ratio

For TALATI & TALATI LLP Radheshyam Kabra

Chartered Accountants Director

Firm Regn.No.110758W/W100377 (DIN: 00005997)

Anand Sharma Leena Vijayan Rihana Advani

Partner Director Company Secretary

Membership No.129033 (DIN-08551144) Membership No.A52819

Place: Ahmedabad Place: Ahmedabad

Date: 22/05/2024 Date:22/05/2024

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Mar 31, 2015

1. CC A/C 0224008700005680 - Rs.50,781,422 ( PY Rs. 58,458,595) & Buyers Credit Rs. 21,74,228 ( P Y Nil) are secured by way of hypothecation of stock and book debts and Equitable Mortgage of immovable properties of Guarantors

2. Key Managerial Personnel & Related Parties Disclosures:

S. No. Name of the Related Party Nature of Relationship

1. Pratik R Kabra Chairman & Managing Director

2. Jogesh D. Choksi Executive Director

3. Kabra Agro Farms Pvt. Ltd. Under the same Management

4. Shree Extrusions Limited Under the same Management

5. Mercury Metals Limited Associate Concern

6. Metal Alloys Corporation Dirctor's Partnership Firm

7. Ramprakash L. Kabra Director's Relative

8. Radheshyam L. Kabra Director's Relative

Details of transactions made between the company and related parties and outstanding balances as on 31st March, 2015.

The effect of Deferred Tax Liability during the year amounting to Rs. 4,75,345 (Previous Year Deferred Tax Assets Rs. 10,909) is taken as Deferred Tax in the Profit & Loss Account.

3. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated at approximate value, if realized in the ordinary course of business. The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

4. Balances of Sundry Debtors, Sundry Creditors, Unsecured loans, Loans & advances are subject to their confirmation.

5. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has been determine to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

6. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

8. Segment Reporting:

The company's primary business is trading of metals, On the basis of Accounting Standard On "Segment Reporting" [(AS-17) issued by the Institute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of AS-17 in this regard are not applicable. There being no business outside India, the entire business has been considered as single geographic segment.

9. All the assets have been physically verified by the management during the year and also there is a regular programme of verification which, in our opinion is reasonable having regards to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification; hence no provision for impairment of assets has been made in accordance to AS-28 as prescribed by the Institute of Chartered Accountants of India.

10. Due to changes for rate of depreciation in Schedule II of Companies Act 2013 over the useful life of Assets, Company has changed its method of depreciation from written down method to straight line method of depreciation. During the year, Plant and Machineries were capitalized on 19.07.2014 and manufacturing activity has been started by Company, job work has been done for Company under the same Management, Hence depreciation has been provided on pro-rata basis for straight line method for the useful lives of assets.

11. Investments in shares of listed companies have been shown under unquoted Investment, due to no transaction in the stock exchange during the year. No provision has been made for the possible diminution in the value of shares held as investment.

12. As per explanation and information provided by management, there are no transactions in bank for Bhuj Mercantile Bank Limited, hence bank statement is not available however in absence of bank statement or bank confirmation, we are unable to verify for bank transactions, if any.

43. The previous year figures have been regrouped/ reclassified wherever necessary to make them comparable to current year figures.

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Mar 31, 2014

1. Contingent Liability

There is no contingent liability arised/ accrued during the year, in the opinion of management,

2. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated at approximate value, if realized in the ordinary courseof business. The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

3. Balances of Sundry Debtors, Sundry Creditors, Unsecured loans, Loans & advances are subject to their confirmation.

4. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has been determineto the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

5. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

6. Segment Reporting:

The company''s primary business is trading of metals, On the basis ofAccounting Standard On"Segment Reporting" [(AS-17) issued by thelnstitute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of AS-17 in this regard are not applicable.There being no business outside India, the entire business has been considered as single geographic segment.

7. All the assets have been physically verified by the management during the year and also there is a regular programme of verification which, in our opinion is reasonable having regards to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification; hence no provision for impairment of assets has been made in accordance to AS-28 as prescribed by the Institute of Chartered Accountants of India.

8. Investmentsin Equity Shares of Gujarat State Financial Corporation Ltd Rs. 10.48 Lacshas been written off during the financial year, as the same is not recoverable due to partly paid up and forfeited by GSFC.

9. Investments in shares of listed companies have been shown under unquoted investment, due to no transaction in the stock exchange during the year.Noprovision has been made for the possible diminution in the value of shares held asinvestment.

10. Advancesof Rs.3.25 lacs with Ahmedabad Stock Exchange and Rs.20.50 lacs with Vadodara Stock Exchange Ltd have been written off during the year, as these are not recoverable.

11. Minimum electricity charges of Rs. 19,44,808/- charged by PGVCL in earlier years, has been written back in current year as Company won legal case against PGVCL.

12. Inspite of capitalization of Plant & Machineries in the year 2009-10, Company has notprovided Depreciation on Plant &Machinery during the year also, as production has not been started yet,Management has initiated to re-start plant operations and Rs. 5,13,525/- has been incurred during the year, which has been shown as capital work in progress. Advances has been given for Rs. 1.40 lacs for capital expenditure, and approximately Rs. 20.00 lacswill be incurred for capital expenditure to start the manufacturing activity.

13. The previous year figures have been regrouped/ reclassified wherever necessary to make them comparable to current year figures.

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Mar 31, 2013

1. Contingent Liability

There is no contingent liability arised/ accrued during the year, in the opinion of management,

2. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated at approximate value, if realized in the ordinary course of business. The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

3. Balances of Sundry Debtors, Sundry Creditors, Unsecured loans, Loans & advances are subject to their confirmation.

4. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has been determine to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

5. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

6. Segment Reporting:

The company''s primary business is trading of metals, On the basis of Accounting Standard On "Segment Reporting" [(AS-17) issued by the Institute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of AS-17 in this regard are not applicable. There being no business outside India, the entire business has been considered as single geographic segment.

7. All the assets have been physically verified by the management during the year and also there is a regular programme of verification which, in our opinion is reasonable having regards to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification; hence no provision for impairment of assets has been made in accordance to AS-28 as prescribed by the Institute of Chartered Accountants of India.

8. Investments in Equity Shares of Gujarat State Financial Corporation Ltd are considered at cost. These shares (Face Value Rs.10) are partly paid up shares and allotment money of Rs. 5 /- per shares has not been paid. Further these shares are not in the name of the company. No provision has been made for possible diminution in the value of shares.

9. Certain investments in shares of listed companies have been shown under unquoted investment, due to no transaction in the stock exchange during the year. No provision has been made for the possible diminution in the value of shares held as investment.

10. Advances include a sum of Rs.3.25 lacs with Ahmedabad Stock Exchange and Rs.20.50 lacs with Vadodara Stock Exchange Ltd have been treated as deposits since long. The nature and justification of such deposits are not available, however according to management these are recoverable/realizable.

11. Company has started its production on 24.03.2010 for job work on D G Set, which was stopped immediately due to some technical fault in production through D G Set and non release of power by Paschim Gujarat Vij Company Limited (PGVCL), There is dispute with Paschim Gujarat Vij Company Limited for the release order of 550 KVA HT Electricity Connection. Company has not received release order for power and PGVCL has started raising its minimum charges bill on the connection, Company has approached to Consumer Grievances Redressal Forum, to challenge the validity of minimum charge bill and not receipt of release order for power, and got decision in the favor, however PGVCL has approached to Hon''ble High Court of Gujarat against the said order, and Hon''ble High Court of Gujarat has remanded back the matter to Electricity Ombudsman for detail reasoned order, now matter is pending with Electricity Ombudsman, Gujarat, However Company has shown liability for electricity expenses for minimum charges as per PGVCL''s Electricity Bill due to non-payment being disputed matter.

12. Company has not provided any Depreciation on Plant & Machinery during the year, as production has not started yet, inspite of capitalization of Plant & Machinery in the year 2009-10, Depreciation charged in the year 2009- 10 was reversed back in next year i.e. 2010-11.

13. The previous year figures have been regrouped/ reclassified wherever necessary to make them comparable to current year figures.

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Mar 31, 2012

I. Balances of Sundry Debtors, Sundry Creditors, Loans and Advances are subject to their confirmation.

ii. Managerial Remuneration paid or payable during the financial year is as under.

iii. Investments in Equity Shares of Gujarat State Financial Corporation Ltd are considered at cost. These shares (Face Value Rs.10) are partly paid up shares and allotment money of Rs. 5 /- per shares has not been paid. Further these shares are not in the name of the company. No provision has been made for possible diminution in the value of shares.

iv. Certain investments in shares of listed companies have been shown under unquoted investment, due to no transaction in the stock exchange during the year. No provision has been made for the possible diminution in the value of shares held as investment.

v. Advances include a sum of Rs.3.25 lacs with Ahmedabad Stock Exchange and Rs.20.50 lacs with Vadodara Stock Exchange Ltd have been treated as deposits since long. The nature and justification of such deposits are not available, however according to management these are recoverable/realizable.

vi. Company has started its commercial production on 24.03.2010 in previous year on job work basis on D G Set, as power connection was not released,however power bills for connection load has been issued by PGVCL, Company has written to PGVCL, since no matter has been resolved, Company filed a case in Consumer forum at Rajkot for the disputed amount between them. Due to non release of Power and some technical fault in production thorugh D G Set, Company stops its production activity. Changes in configuaration of machines has been done during the year, however due to non release of power, management decided to kept plant idle until power release and settlement of dispute with PGVCL of Rs 7,52,453/- (upto March 2011) Company has not provided any depreciation during the year on the plant & machinery, Inspite of dispute, expenses for electiricity expenses has been accounted and shown as liability of the Company.

vii. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

viii. Segment Reporting :

The company's primary business is trading of metals, On the basis of Accounting Standard On " Segment Reporting" [(AS-17) issued by the institute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of As-17 in this regard are not applicable.

There being no business outside India, the entire business has been considered as single geographic segment.

ix. All the Assets have been verified by the management during the year. There is a regular program of verification. No material discrepancies were noticed on such verification. Provision for impairment of assets has not been made in accordance to AS -28 as prescribed by the Institute of Chartered Accountants of India. In the opinion of Management, it was not possible to ascertain impairment, if any.

x. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated approximate value, if realized in the ordinary course of business .The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

xi. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

xii. The previous year's figure have been regrouped/ reclassified wherever necessary to make them comparable to current year's figure.

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Mar 31, 2010

I. Balances of Sundry Debtors, Sundry Creditors, Loans and Advances are subject to their confirmation.

v. Investments in Equity Shares of Gujarat State Financial Corporation Ltd are considered at cost. These shares (Face Value Rs.10) are partly paid up shares and allotment money of Rs. 5 /- per shares has not been paid. Further these shares are not in the name of the company. No provision has been made for possible diminution in the value of shares.

vi. Certain investments in shares of listed companies have been shown under unquoted investment, due to no transaction in the stock exchange during the year. No provision has been made for the possible diminution in the value of shares held as investment.

vii. Advances include a sum of Rs.3.25 lacs with Ahmedabad Stock Exchange and Rs.20.50 lacs with Vadodara Stock Exchange Ltd have been treated as deposits since long. The nature and justification of such deposits are not available, however according to management these are recoverable/realizable.

viii. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

ix. Segment Reporting :

The companys primary business is trading of metals, and during the year company started production activity, however based on the guiding principal given in Accounting Standard On " Segment Reporting" [(AS- 17) issued by the institute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of As-17 in this regard are not applicable. There being no business outside India, the entire business has been considered as single geographic segment

x. Related Parties Disclosures : Accounting Standard-18

Particulars of related Parties

S. No. Name of the Related Nature of Relationship Party

1. Pratik R Kabra Director

2. Ramprasad M Kabra Director

3. Kapil G Kabra Director

4. Kabra Agro Farms Pvt. Ltd. Under the same Management

5. Shree Extrusions Limited Associate Concern

6. Mercury Metals Limited Associate Concern

xiii. All the Assets have been verified by the management during the year. There is a regular program of verification. No material discrepancies were noticed on such verification. Provision for impairment of assets has not been made in accordance to AS -28 as prescribed by the Institute of Chartered Accountants of India. In the opinion of Management, it was not possible to ascertain impairment, if any.

xiv. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated approximate value, if realized in the ordinary course of business The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

xv. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

xvi. The previous years figure have been regrouped/ reclassified wherever necessary to make them comparable to current years figure.