Notes to Accounts of Shree Precoated Steels Ltd.

Mar 31, 2024

2.19 Provisions, contingent assets and contingent
liabilities

Provisions are recognized only when there is
a present obligation, as a result of past events
and when a reliable estimate of the amount of
obligation can be made at the reporting date.
These estimates are reviewed at each reporting
date and adjusted to reflect the current best
estimates. Provisions are discounted to their
present values, where the time value of money
is material.

Contingent liability is disclosed for:-

• Possible obligations which will be confirmed
only by future events not wholly within the
control of the Company or

• Present obligations arising from past events
where it is not probable that an outflow
of resources will be required to settle the
obligation or a reliable estimate of the
amount of the obligation cannot be made.

Contingent assets are neither recognized nor
disclosed except when realisation of income is
virtually certain, related asset is disclosed.

2.20 Leases

Ind AS 116 supersedes Ind AS 17 Leases
including its appendices. The standard sets out
the principles for the recognition, measurement,
presentation and disclosure of leases and
requires lessees to recognise most leases on
the balance sheet.

The Company has adopted Ind AS 116 using the
modified retrospective method of adoption under
the transitional provisions of the Standards,
with the date of initial application on 1st April,
2019. The Company also elected to use the

recognition exemptions for lease contracts
that, at the commencement date, have a lease
term of 12 months or less and do not contain a
purchase option (short-term leases), and lease
contracts for which the underlying asset is of
low value (low-value assets). Adoption of Ind-
AS 116 doesn''t have any material impact on the
financial statements of the Company.

The Company assesses at contract inception
whether a contract is, or contains, a lease. That
is, if the contract conveys the right to control the
use of an identified asset for a period of time in
exchange for consideration.

Company as a lessee

The Company applies a single recognition and
measurement approach for all leases, except
for short term leases and leases of low-value
assets. The Company recognises lease liabilities
to make lease payments and right-of-use assets
representing the right-to-use the underlying
assets.

Right-of-use assets

The Company recognises right-of-use assets at
the commencement date of the lease (i.e., the
date the underlying asset is available for use).
Right-of-use assets are measured at cost, less
any accumulated depreciation and impairment
losses, and adjusted for any remeasurement
of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities
recognised, initial direct costs incurred,
and lease payments made at or before the
commencement date less any lease incentives
received. Right-of-use assets are depreciated on
a straight-line basis over the shorter of the lease
term and the estimated useful lives of the assets.

If ownership of the leased asset transfers to
the Company at the end of the lease term or
the reflects the exercise of a purchase option,
depreciation is calculated using the estimated
useful life of the asset. Right-of-use assets are
also subject to impairment.

Lease Liabilities

At the commencement date of the lease, the
Company recognises lease liabilities measured
at the present value of lease payments to be
made over the lease term. The lease payments
include fixed payments (including in substance
fixed payments) less any lease incentives
receivable, variable lease payments that depend
on an index or a rate, and amounts expected to
be paid under residual value guarantees.

In calculating the present value of lease
payments, the Company uses its incremental
borrowing rate at the lease commencement
date because the interest rate implicit in the
lease is not readily determinable. After the
commencement date, the amount of lease
liabilities is increased to reflect the accretion
of interest and reduced for the lease payments
made. In addition, the carrying amount of lease
liabilities is remeasured if there is a modification,
a change in the lease term, a change in the lease
payments (e.g., changes to future payments
resulting from a change in an index or rate used
to determine such lease payments) or a change
in the assessment of an option to purchase the
underlying asset.

Short-term leases and leases of low-value
assets

The Company applies the short-term lease
recognition exemption to its short-term leases
(i.e., those leases that have a lease term of 12
months or less from the commencement date
and do not contain a purchase option). It also
applies the lease of low-value assets recognition
exemption to leases of offices, godowns,
equipment, etc. that are of low value. Lease
payments on short-term leases and leases of
low value assets are recognised as expense on
a straight-line basis over the lease term.

Company as a lessor

Lessor accounting under Ind AS 116 is
substantially unchanged from Ind AS 17. Lessors
will continue to classify leases as either operating
or finance leases using similar principles as
in Ind AS 17. Therefore, Ind AS 116 does not
have an impact for leases where the Company
is the lessor. Leases in which the Company
does not transfer substantially all the risks and
rewards incidental to ownership of an asset are
classified as operating leases. Rental income
arising is accounted for on a straight-line basis
over the lease terms. Initial direct costs incurred
in negotiating and arranging an operating lease
are added to the carrying amount of the leased
asset and recognised over the lease term on the
same basis as rental income. Contingent rents
are recognized as revenue in the period in which
they are earned.

2.21 Financial Instruments

Initial recognition and measurement

Financial assets and financial liabilities are
recognized when the Company becomes a party
to the contractual provisions of the financial
instrument and are measured initially at fair

Value adjusted for transaction costs, except for
those carried at fair value through profit or loss
which are measured initially at fair value.

Subsequent measurement of Financial Assets

i) Financial assets carried at amortised cost - a
financial asset is measured at the amortised
cost, if both the following conditions are
met:

• The asset is held within a business
model whose objective is to hold assets
for collecting contractual cash flows,
and

• Contractual terms of the asset give rise
on specified dates to cash flows that
are solely payments of principal and
interest (SPPI) on the principal amount
outstanding.

After initial measurement, such financial
assets are subsequently measured
at amortised cost using the effective
interest rate (EIR) method.

ii) Investments in equity instruments of
subsidiaries, joint ventures and associates
- Investments in equity instruments of
subsidiaries, joint ventures and associates
are accounted for at cost in accordance with
Ind AS 27Separate Financial Statements.

De-recognition of financial assets

A financial asset is primarily de-recognized
when the contractual rights to receive cash flows
from the asset have expired or the Company has
transferred its rights to receive cash flows from
the asset.

Subsequent measurement of Financial Assets

Subsequent to initial recognition, all non¬
derivative financial liabilities are measured
at amortised cost using the effective interest
method.

De-recognition of financial liabilities

A financial liability is de-recognized 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 de-recognition of the original
liability and the recognition of a new liability. The
difference in the respective carrying amounts is
recognized in the statement of profit or loss.

2.22 Earnings per share

Basic earnings per share is calculated by dividing
the net profit or loss for the period attributable to
equity shareholders (after deducting attributable
taxes) by the weighted-average number of
equity shares outstanding during the period.
The weighted-average number of equity shares
outstanding during the period is adjusted for
events including a bonus issue.

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

2.23Significant management judgement in
applying accounting policies and estimation
uncertainty

The preparation of the Company''s financial
statements requires management to make
judgments, estimates and assumptions that
affect the reported amounts of revenues,
expenses, assets and liabilities and the related
disclosures.

Significant management judgements

Recognition of deferred tax assets - The

extent to which deferred tax assets can be
recognized is based on an assessment of the
probability of the future taxable income against
which the deferred tax assets can be utilized.

Evaluation of indicators for impairment of
assets - The evaluation of applicability of
indicators of impairment of assets requires
assessment of several external and internal
factors which could result in deterioration of
recoverable amount of the assets.

Impairment of financial assets - At each
balance sheet date, based on historical
default rates observed over expected life, the
management assesses the expected credit loss
on outstanding financial assets.

Provisions - At each balance sheet date basis
the management judgment, changes in facts
and legal aspects, the Company assesses
the requirement of provisions against the
outstanding contingent liabilities. However, the
actual future outcome may be different from this
judgement.

Revenue and inventories - The Company
recognizes revenue using the percentage of
completion method. This requires forecasts
to be made of total budgeted cost with the

outcomes of underlying construction and
service contracts, which require assessments
and judgements to be made on changes in
work scopes, claims (compensation, rebates
etc.) and other payments to the extent they are
probable and they are capable of being reliably
measured. For the purpose of making estimates
for claims, the Company used the available
Contractual and historical information.

Useful lives of depreciable/ amortisable
assets -Management reviews its estimate of the
useful lives of depreciable/amortisable assets at
each reporting date, based on the expected utility
of the assets. Uncertainties in these estimates
relate to technical and economic obsolescence
that may change the utility of assets.

Defined benefit obligation (DBO) -

Management''s estimate of the DBO is based
on a number of underlying assumptions such
as standard rates of inflation, mortality, discount
rate and anticipation of future salary increases.
Variation in these assumptions may significantly
impact the DBO amount and the annual defined
benefit expenses.

Fair value measurements - Management
applies valuation techniques to determine
the fair value of financial instruments (where
active market quotes are not available). This
involves developing estimates and assumptions
consistent with how market participants
would price the instrument. The Group used
valuation techniques that are appropriate in
the circumstances and for which sufficient data
is available to measure fair value, maximizing
the use of relevant observable inputs and
minimizing the use of unobservable inputs.
All assets and liabilities for which fair value
is measured or disclosed in the financial
statements are categorized within the fair value
hierarchy, described as follows, based on the
lowest level input i.e. significant to the fair value
measurement as a whole.;

Level 1. Quoted prices(unadjusted) in active
markets for identical assets and liabilities

Level 2. Input other than quoted prices included
within level 1 that are observable for the assets
or liabilities either directly(i.e. as prices) or
indirectly (i.e. derived from prices)

Level 3. Inputs for the assets and liabilities
that are not based on observable market data
(unobservable inputs)

2.24 Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies
new standards or amendments to the existing
standards under Companies (Indian Accounting
Standards) Rules as issued from time to time.
For the year ended March 31, 2024, MCA has
not notified any new standards or amendments
to the existing standards applicable to the
Company.

26. Deferred Taxation:

(a) During the Year, the Company has not made any provision for income tax including Minimum
Alternate Tax (MAT) on account of accumulated losses as per the Income Tax Act as well as under
Companies Act.

(b) The Company has, on account of substantial unabsorbed Depreciation and Business Loss as per
the Income Tax Act 1961. However, as a prudent policy, the said Deferred Tax Asset has not been
recognized, which is in accordance with Ind AS 12.

27. Employee Benefit

Consequent to Ind AS 19 “Employee Benefits”, the company has reviewed and revised its accounting

policy in respect of employee benefits.

30. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

a) The principal amount Rs. NIL (Previous Year NIL) and the interest due thereon is NIL (Previous
Year NIL) remaining unpaid to any supplier at the end of each accounting year 2023-24.

b) The amount of interest paid by the buyer in terms of section 16 of the Micro, Small and Medium
Enterprises Development Act, 2006, along with the amount of the payment made to the supplier
beyond the appointed day during each accounting year.

C) The amount of Interest due and payable for the period of delay in making payment but without
adding the interest specified under the Micro, Small and Medium Enterprises Development Act,
2006

d) The amount of Interest accrued and remaining unpaid at the end of each accounting year Nil

e) The amount of further interest remaining due and payable even in the succeeding years until
such date when the interest dues above are actually paid to the small enterprise, for the purpose
of disallowance of a deductible expenditure under section 23 of the Micro, Small and Medium
Enterprises Development Act, 2006 is Nil

The above information and that given in note no.13 & 15 -“Trade Payables” regarding Micro and
Small Enterprises has been determined to the extent such parties have been identified on the
basis of available with the company. This has been relied upon by the auditors.

31. The Company has re - assessed the useful life of assets for the purpose of determination of depreciation
in the manner prescribed under Schedule II of the Companies Act, 2013.

32. Capital Management Policy

For the Company''s capital management, capital includes issued equity capital, share premium and
all other equity reserves attributable to the equity holders of the Company. The primary objective of
the Company''s capital management is to maximize the shareholder value. The Company manages
its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The
Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt.

a. Credit Risk

The Company measures the expected credit loss of trade receivables based on historical trend,
industry practices and the business environment in which the entity operates. Expected Credit
Loss is based on actual credit loss experienced and past trends based on the historical data.

b. Liquidity Risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated
with its financial liabilities that are settled by delivering cash or another financial asset. The Group''s
approach to managing liquidity is to ensure as far as possible that it will have sufficient liquidity to
meet its liabilities when they are due.

Management monitors rolling forecasts of the Group''s liquidity position and cash and cash
equivalents on the basis of expected cash flows. The Group takes into account the liquidity of the
market in which the entity operates.

c. Foreign Currency Risk

The Group has international transactions and is exposed to foreign exchange risk arising from
foreign currency transactions. Foreign exchange risk arises from recognized assets and liabilities
denominated in a currency that is not the Group''s functional currency.

35. Capital and other commitments

Capital and other commitments on account of revenue as well as capital nature is Rs. NIL (Previous
Year NIL)

No proceedings have been initiated during the year or are pending against the Company as at March
31, 2024 for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (as
amended in 2016) and rules made thereunder.

36. The Company has not been declared a willful defaulter by any bank or financial institution or government
or any government authority.

37. There were no transactions relating to previously unrecorded income that have been surrendered or
disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (43 of
1961).

38. The Board of Directors is of the opinion that none of the assets other than Property, Plant and Equipment,
Intangible Assets and non-current investments have realizable value less than their carrying amount in
the ordinary course of business.

39. No funds have been advanced or loaned or invested by the company to any intermediary and no funds
have been received by the company to act as intermediary.

40. Relationship with Struck off Companies is Nil (Previous Year Nil)

41. Ratios: The following are analytical ratios for the year ended 31st March, 2024 and 31st March, 2023

42. The company has not traded or not invested in Crypto currency or Virtual currency during the financial
year.

43. Title deeds of all the immovable properties are held in the name of the company.

44. During the year the Company has not availed any borrowing from banks or financial institutions.

45. There are no charges or satisfaction of charges which is yet to be registered with Registrar of Companies
beyond the statutory period.

46. The Company has complied with Companies (Restriction of Number of Layers) Rules, 2017, and there
are no downstream companies beyond the specified layers.

47. The Company has not been sanctioned working capital limits in excess of '' 5 crore, in aggregate, at
any points of time during the year

48. The Company has not taken any funds from any entity or person on account of or to meet the obligations
of its subsidiaries, associates or joint ventures.

49. Earnings & Expenditure in Foreign Currency (accrual basis): - Expenses: Rs. NIL (Previous Year Rs. Rs.
NIL)

50. The Balance in Debtors, Creditors, few Bank Accounts balances and Advances accounts are subject
to confirmation and reconciliation, if any. However as per management opinion no material impact on
financial statements out of such reconciliation is anticipated.

51. Subsequent events

There is not any subsequent event reported after the date of financial statements.

52. Regrouping of Previous Year Figures.

The company has regrouped / rearranged and reclassified previous year figures to conform to current
year''s classification.

As per our report of even date For & on behalf of Board Of Directors of

For MANESH MEHTA & ASSOCIATES SHREE PRECOATED STEELS LIMITED
Chartered Accountants
Firm Reg. No. 115832W

MANESH MEHTA A. C. PATEL HARSH L MEHTA

PARTNER CHAIRMAN MANAGING DIRECOR

Membership No. 36032 DIN:00037870 DIN:01738989

UDIN: 24036032BKFCFX8763

SURESH N. PITALE KRISHNA AGRAWAL

CHIEF FINANCIAL COMPANY SECRETARY

OFFICER

Place : Vadodara Place : Mumbai

Dated : 09th May 2024 Dated : 09th May 2024

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Mar 31, 2014

1. Corporate Information

Shree Precoated Steels Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on one stock exchanges in India. The company engaged in the Manufacturing, Processing, Trading of Steel Products and Real Estate business.

2. Employee Benefit

Consequent to Revised Accounting Standards 15 (AS-15) "Employee Benefits" read with guidance note on implementation of AS-15 issued by Institute of Chartered Accountants of India, effective from April 1,2007, the company has reviewed and revised its accounting policy in respect of employee benefits.

3. Segment Information:

The Company primarily deals in the business of Real Estate and hence there is no Primary reportable segment in the context of Accounting Standard -17 issued by Institute of Chartered Accountants of India (ICAI).

4. Related Party Disclosures:

The related party and relationships, as identified by the Management and relied upon by the Auditors, with whom transactions have taken place during the year ended are:

a. List of related parties and their relationship:

Name of the Party Relationship

A.G. Estate Private Limited Associate

Ajmera Cement Private Limited Associate

Ajmera Realty & Infra India Ltd. Associate

Ajmera Housing Corporation Banglore Associate

Ajmera Housing Corporation Associate

Ajmera Steel Strips Limited Associate

Ajmera Water N Amusement Park Private Limited Associate

Bombay Freezco Private Limited Associate

Jolly Brothers Private Limited Associate

Vijay NagarAppartment Associate

Rushabh Investments Pvt. Ltd. Associate

Yogi Nagar Vasahat Private Limited Associate

Four Brothers Associate

Nilkanth Tech Park Private Limited Associate

b. Directors and their relatives:

Name of the Party Relationship

Shri Rajnikant S. Ajmera Relative

Shri Ra nikant S. Amera - HUF Relative

Shri Ishwarlal S. Ajmera Chairman & Managing Director

Shri Ishwarlal S. Ajmera - HUF Relative

Shri Sanjay C Ajmera Managing Director

Late Shri Bhogilal S. Ajmera Relative

Shri Natwarlal S. Ajmera Relative

Shri Shashikant S. Ajmera Relative

Late Shri Surendra I. Ajmera Relative

Shri. Manoj I. Ajmera Relative

Shri. Jayant I. Ajmera Relative

Shri. Atul C. Ajmera Relative

Smt. Bharati R Ajmera Relative

Shri. Dhaval R. Amera Director

5. Contingent Liabilities

Contingent Liabilities not provided for in respect of :

Name of Statute Nature of Dues Amount period to Forum where (Rs.in Lacs) which pending Amount relates

Service Tax GTA of Services 22.85 2005 -06 Appeal has been filed in CES TAT.

Service Tax Cenvat credit on 95.84 2006-07& Appeal has Service Tax filed in CES TAT.

Arbitration Damages for 338.71 2005-06 Mumbai High Award non Supply of Court goods

6. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

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 above information and that given in Note No. 8 regarding Micro and Small enterprises 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.

7. Extra Ordinary items:

During the year company has written back old liability which is not payable amounting to Rs 4700 lacs and the company has also written off Rs 1665.53 lacs lying as sundry balances/ export receivables , as the same is not likely to materialise . The net balance amounting to Rs 3034.47 lacs has been adjusted as extraordinary items in Profit & Loss account

8. Taxation

a) During the year, the Company has not made any provision for Income Tax including Minimum Alternate (MAT) on account of accumulated losses as per Income Tax Act as well as under Companies Act.

b) The Company has, on account of substantial unabsorbed depreciation and Business Loss as per Income Tax Act 1961. However, as a prudent policy, the said Deferred Tax Asset has not been recognized, which is in accordance with the Accounting Standard 22.

9. Value of Import Calculated on CIF Basis: - NIL- 33. Earnings & Expenditure in Foreign Currency (accrual basis): - NIL- 34. Imported and indigenous raw materials, components and spare parts consumed: - NIL- 35. Regrouping of Previous Year Figures.

The company has reclassified/regrouped/rearranged previous year figures to conform to this year''s classification/regrouping/rearrangement.

10. The balances in Debtors, Creditors, bank balances and advance accounts are subject to confirmation and reconciliation if any. However, as per the management opinion no material impact on financial statements out of such reconciliation is anticipated.

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Mar 31, 2013

1. Corporate Information

Shree Precoated Steels Limited is a public company domiciled in India and incorporated underthe provisions of the Companies Act, 1956. Its shares are listed on one stock exchanges in India. The company engaged in the Manufacturing, Processing, Trading of Steel Products and Real Estate business.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified underthe Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and underthe historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous period, except for the change in accounting policy explained below.

3. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

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 above information and that given in Note No. 8 regarding Micro and Small enterprises 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.

4. Value of Import Calculated on CIF Basis: - NIL-

5. Earnings & Expenditure in Foreign Currency (accrual basis): - NIL-

6. Imported and indigenous raw materials, components and spare parts consumed: - NIL-

7. Regrouping of Previous Year Figures.

Till the period ended 31 st March 2011, the company was using pre- revised Schedule-VI of the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year''s classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However it has significant impact on presentation and discloses made in financial statements.

8. The balances in Debtors, Creditors, Bank Balances and advance accounts are subject to confirmation and reconciliation if any. However, as per the management opinion no material impact on financial statement out of such reconciliation is anticipated.

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Mar 31, 2012

1. Corporate Information

Shree Precoated Steels Limited is a public company domiciled in India and incorporated under the provisions of the Companies Act, 1956. Its shares are listed on one stock exchanges in India. The company engaged in the Manufacturing, Processing, Trading of Steel Products and Real Estate business.

2. Basis of Preparation

The financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous period, except for the change in accounting policy explained below.

3 : SHARE CAPITAL

a. Term/rights attached to equity shares

The company has only one class of equity 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 dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended 31st March, 2012, the amount of per share dividend recognised as distributions to equity shareholders was Rs. NIL (Previous year Rs. NIL).

4. Related Party Disclosures:

The related party and relationships, as identified by the Management and relied upon by the Auditors, with whom transactions have taken place during the year ended are:

a. List of related parties and their relationship:

Name of the Party Relationship

A. G. Estate Private Limited Associate

Ajmera Cement Private Limited Associate

Ajmera Realty & Infra India Ltd. Associate

Ajmera Housing Corporation Banglore Associate

Ajmera Housing Corporation Associate

Ajmera Steel Strips Limited Associate

Ajmera Water N Amusement Park Private Limited Associate

Bombay Freezco Private Limited Associate

Jolly Brothers Private Limited Associate

Vijay Nagar Apartment Associate

Rushabh Investments Pvt. Ltd. Associate

Yogi NagarVasahat Private Limited Associate

Four Brothers Associate

Nilkanth Tech Park Private Limited Associate

b. Directors and their relatives:

Name of the Party Relationship

Shri Chhotalal S. Ajmera* Chairman & Managing Director

Shri Chhotalal S. Ajmera - HUF Relative

Shri Rajnikant S. Ajmera** Managing Director

Shri Rajnikant S. Ajmera - HUF Relative

Shri Ishwarlal S. Ajmera*** Chairman & Managing Director

Shri Ishwarlal S. Ajmera -HUF Relative

Shri Sanjay C. Ajmera**** Managing Director

Shri Bhogilal S. Ajmera Relative

Shri Natwarlal S. Ajmera Relative

Shri Shashikant S. Ajmera Relative

Shri Surendra I. Ajmera Relative

Shri. Manoj I. Ajmera Relative

Shri Jayant I. Ajmera Relative

Smt. Veena C. Ajmera Relative

Shri. Atul C. Ajmera Relative

Smt. Bharati R. Ajmera Relative

Smt. Hasumati I. Ajmera Relative

Shri Chhaganlal S. Ajmera Relative

Shri Dhaval R. Ajmera**** Director

* Ceased to be Chairman and Managing Director w.e.f 24th March, 2012 on account of his sad demise.

**Resigned w.e.f 24th April, 2012

*** Change in designation w.e.f 24th April, 2012

****Appointed w.e.f 24th April, 2012

5. Contingent Liabilities

Contingent Liabilities not provided for in respect of:

Name of Nature of Dues Amount Period Forum where Statute (Rs. in to which pending Lacs) amount relates

Service Tax GTA of Services 22.85 2005-06 Appeal has been filed in CESTAT.

Service Tax Cenvat credit 95.84 2006-07 & Appeal has on Service Tax 2007-08 been filed in CESTAT.

Custom Act Fine 15.00 2006-07 Appeal has Penalty 5.00 been filed in CESTAT.

6. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

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 above information and that given in Note No. 8 regarding Micro and Small enterprises 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.

7. In the Previous period, the Company has transferred its Steel business as a going concern to Essar Steel Limited (ESL) under Business Transfer Agreement (BTA) w.e.f. 30th October 2009. The Company had obtained the requisite approval of its Shareholders under Section 293(1) (a) of the Companies Act 1956. After adjusting the gain on Sale of Undertaking of Rs. 4802.41 lacs, the net loss of Rs. 15694.95 lacs arising mainly out of diminishing in value of Current Assets relating to the transfer of Steel Unit have been shown as Extra Ordinary Losses in Statement of Profit & Loss and as per the direction of Honorable Bombay High Court, an equivalent amount has been transferred from General Reserve.

8. Regrouping of Previous period Figures.

Till the period ended 31st March, 2011, the company was using pre- revised Schedule-VI of the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified previous period figures to conform to this year's classification. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However it has significant impact on presentation and discloses made in financial statements.

9. The accounts are drawn for the period of:

(a) Previous period from 1st October, 2009 to 31st March, 2011 (18 months).

(b) Current year from 01st April, 2011 to 31st March, 2012 (12 months). Hence the figures for the previous period is not comparable.

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Mar 31, 2011

1 The company was incorporated on 17th September 2007 as AJMERA REALITY PRIVATE LIMTIED. On 23rd July 2008 company was converted from Private Limited to Public Limited and the name was changed to AJMER APRECOATEDHPSTEELS LIMITED.

2. After the completion of demerger procedure the name of the company has been changed with effect from 17th April, 2009 (Effective date) from AJMERA

PRECOATED STEELS LIMITED to SHREE PRECOATED STEELS LIMITED (SPSL).

3. The accounts are drawn forHPthe period of:

(a) Previous Period from 1st April 2008 to 30th September 2009

(I) Current Period from 1st October 2009 to 31st March 2011

4. In the previous period, the Company has filed Composite scheme of arrangement under section 391 to 394 read with section 100 to 103 of the Companies Act, 1956 with Honorable High Court of Bombay. Pursuant to the said scheme duly approved by Honorable High Court of Bombay dated 21st March 2009, the steel business ofHPARIIL has been demerged & vested with the company with effect from 1st April 2008 (appointed date) and initial capital of the company stand cancelled. Since the company was informed only in 2007 and had no material activities, the previous year figures are not comparable.

The Salient features of demerger scheme are:

(a) Witheffectfrom theAppointed Date:

I. the whole of the Steel Division of Ajmera Realty & Infra India Limited (ARIIL), stands transferred to and vested in the Company at their book values as at the close of the business on the day immediately preceding the Appointed Date.

II. all assets (both movable and immovable), properties, debts, liabilities, duties,& obligations, contracts, agreements, permits, licenses, approvals, permissions, etc relating to the Steel Division of ARIIL stand transferred and vested to the Company.

III. all staff, workmen and employees of the Steel Division of ARIIL in service on the Effective Date have become staff, workmen and employees of the Company

(b) The steel division is transferred to the company as a going concern.

(c) As a consideration, the Company has issued and allotted 7 (Seven) fully paid up equity shares of Rs.10/- each to the shareholders of ARIIL for every 10 (Ten) equity shares of Rs 10/- each held in ARIIL.

(d) The ratio of allotment of equity shares of SPSL and reorganization of equity share capital of ARIIL, on demerger, is based on the desired capital structure of ARIIL and SPSL (post-demerger) rather than the value of the Real Estate Division and Steel Division.

(e) The shareholding of SPSL pursuant to the demerger of the Steel Division of ARIIL is the mirror image of the shareholding of ARIIL (pre-demerger) as on the record date as the new shares of SPSL are issued to the existing shareholders of ARIIL in proportion to their shareholding in ARIIL.

(f) After the allotment of new equity shares by Company, the Old Equity Shares of the Company stand cancelled.

5. Based on the scheme approved by the Honorable High Court of Bombay all assets and liabilities and capital reserve pertaining to steel division taken at the book value and 8,27,98,042 shares of Rs.10 each fully paid up issued to the share holders of ARIIL and balance amount transfer to General ReserveHPAccount.

6. The Company has transferred its Steel business as a going concern to Essar Steel Limited (ESL) under Business Transfer Agreement (BTA) w.e.f. 30th October 2009. The Company had obtained the requisite approval of its Shareholders under Section 293(1) (a) of the Companies Act 1956. After adjusting the gain on Sale of Undertaking pf Rs. 4802.41 lacs, the net loss of Rs. 15694.95 lacs arising mainly out of diminishing in value of Current Assets relating to the transfer of Steel Unit have been shown as Extra Ordinary Losses in Profit & Loss account and as per the direction of Honorable Bombay High Court, an equivalent amount has been transferred from General Reserve.

7. Contingent liabilities not provided for in respect of:

a) Estimated amount of contracts remaining to be executed on capital account & not provided for (net of advances) is Rs. NIL (Previous Period Rs 873 Lacs)

I) Bank Guarantees provided to third parties aggregate Rs. NIL (Previous Period Rs. 809 Lacs)

c) Letters of Credit aggregating to Rs. NIL (Previous Period Rs 12,615 Lacs)

d) Bills discounted with Banks amounting to Rs. NIL (Previous Period Rs 13,738 Lacs)

e) Demand from Sales Tax Recovery Officer-Kolkatta for Rs. NIL (Previous Period RslLac)

f) Suit filed against the Company not acknowledged as debts of Rs Nil (Previous Period 239 Lacs)

8 Secured loans:

In the Previous Period:

a. The Term Loans from Financial Institutions and Banks are secured by a first charge on the present and future immovable properties of the Company and on plant and machinery present and future, and a second charge on all the current assets of the Company, present and future, and are collaterally secured by personal guarantees of Shri C. S. Ajmera, Shri R. S. Ajmera and Shri I. S. Ajmera, Promoter Directors of the Company. The Company has availed fresh loan from Dena Bank and Exim bank during the period which is secured by charge on fixed assets and additional security provided by Directors, Relatives and Third Parties.

I. Dues payable to financial institutions as per scheme of rehabilitation of BIFR are further secured by pledge of Promoter Directors shareholding in the Company.

c. The Working Capital limits from consortium of banks are secured by a first charge on all the current assets of the Company, present and future, book debts and receivables and second charge on the fixed assets of the Company.

d. The Working Capital from Banks excludes Bills Discounting.

e. Hire Purchase Loans are secured by Hypothecation of specific assets.

9. In the Previous Period:

The ARIIL Company under which unit of this company was granted the new Entitlement Certificate bearing No. 27490293346 V/R-81/1478, dated 12th May 2006 for deferral mode of paying the Sales Tax with effect from 1st April 2005 from exemption availed till 31st March 2005.

The ARIIL Company was permitted in terms of Rule 81 of the Maharashtra Value Added Tax Rules 2005 (MVAT Rules) to defer the Sales Tax Liabilities for the period covered by eligibility Certificate No. FINC/l/1988/Deferral/EC-3552, dated 24th January 2006.

During the Previous period ended net Sales Tax Collected of Rs. 853 Lacs has been considered as unsecured loan, the total amount outstanding of Rs.3010 Lacs as on 30th September 2009 is repayable in five equal annual installments commencing from the June 2015. However the same is transferred along with Steel undertaking at present value.

10. Exchange Fluctuation:

Materials consumed and Sales Turnover includes exchange rate difference of Rs. 92 lacs (Adverse) (Previous Period Rs. 1554 Lacs-Adverse)^ and Rs. 402 iacs favourable (Previous Period 2284 Lacs (Adverse)respectively.

11 Managerial remuneration (excluding provision for Gratuity and provision for leave encashment on retirement) paid/payable to Directors:

No commission is payable to Whole time Directors in view of waiver of commission by them for the current period under review and also in view of loss during the current year under review. The Company has been advised that the computation of the net profit for the purpose of remuneration to Director under Section 349 & 350 of the Act need not be enumerated.

12. Deferred Taxation:

There is no Deferred Tax Liability which needs to be accounted for in the books of accounts as per Accounting Standard 22, on Accounting for Taxes on Income issued by the Institute of Chartered Accountants of India. The directors are of the opinion that the Deferred Tax Asset has not been recognized in the books during the period owing to virtual uncertainty of realization of the same in the forseeable future. Accordingly during the period the Deferred Tax Asset up to 30th September 2009 of Rs. 2339.32 lacs has been adjusted in the Profit and Loss account.

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Sep 30, 2009

1 The company was incorporated on 17th September 2007 as AJMERA REALITY PRIVATE LIMTIED. On 23rd July 2008 company was converted from Private Limited to Public Limited and the name was changed to AJMERAPRECOATED STEELS LIMITED.

2. After the completion of demerger procedure the name of the company has been changed w.e.f. 17th April, 2009 (effective date) from AJMERA PRECOATED STEELS LIMITED TO SHREE PRECOATED STEELS LIMITED (SPSL).

3. The current period accounts are drawn for the period of 18 Months from 1 st April 2008 to 30th September 2009.

4. The Company has filed Composite scheme of arrangement under section 391 To 394 read with section 100 to 103 of the companies Act 1956 with Honorable High Court of Bombay. Pursuant to the said scheme duly approved by Honorable High Court of Bombay dated 21st March 2009, the steel business of Ajmera Realty & Infra India Limited (ARIIL) has been vested with the company w.e.f. 1 st April 2008 (appointed date) and initial capital of the company stand cancelled. Since the company was formed only in 2007 and had no material activities, the previous year figures are not comparable.

The Salient features of demerger scheme are:

(a) With effect from the Appointed Date:

I. the whole of the Steel Division of Ajmera Realty & Infra India Limited (ARIIL), stands transferred to and vested in the Company at their book values as at the close of the business on the day immediately preceding the Appointed Date.

II. all assets (both movable and immovable), properties, debts, liabilities, duties, obligations, contracts, agreements, permits, licenses, approvals, permissions, etc relating to the Steel Division of ARIIL stand transferred and vested to the Company.

III. all staff, workmen and employees of the Steel Division of ARIIL in service on the Effective Date have become staff, workmen and employees of the Company

b) The steel division is transferred to the company as a going concern.

c) As a consideration, the Company has issued and allotted 7 (Seven) fully paid up equity shares of Rs.10/- each to the shareholders of ARIIL for every 10 (Ten) equity shares of Rs 10/- each held in ARI IL.

d) The ratio of allotment of equity shares of SPSL and reorganization of equity share capital of ARIIL, on demerger, is based on the desired capital structure of ARIIL and SPSL (post-demerger) rather than the value of the Real Estate Division and Steel Division.

e) The shareholding of SPSL pursuant to the demerger of the Steel Division of ARIIL is the mirror image of the shareholding of ARIIL (pre-demerger) as on the record date as the new shares of SPSL are issued to the exiting shareholders of ARIIL in proportion to their shareholding inARIIL.

f) After the allotment of new equity shares by Company, the Old Equity Shares of the Company stand cancelled.

5. Based on the scheme approved by the Honorable High Court of Bombay all assets and liabilities and capital reserve pertaining to steel division taken at the book value and 8,27,98,042 shares of Rs. 10 each fully paid up issued to the share holders of ARIIL and balance amount transfer to General Reserved Account.

6. Contingent liabilities not provided for in respect of:

a) Estimated amount of contracts remaining to be executed on capital account & not provided for (net of advances) is Rs.873 Lacs

b) Bank Guarantees provided to third parties aggregate Rs.809 Lacs

c) Letters of Credit aggregating to Rs12,615 Lacs

d) Bills discounted with Banks amounting to Rs. 13,738 Lacs

e) Demand from Sales Tax Recovery Officer- Kolkatta for Rs.1 Lac

f) Suit filed against the Company not acknowledged as debts of Rs. 239 Lacs

7. Secured loans:

a. The Term Loans from Financial Institutions and Banks are secured by a first charge on the present and future immovable properties of the Company and on plant and machinery present and future, and a second charge on all the current assets of the Company, present and future, and are collaterally secured by personal guarantees of Shri C. S. Ajmera, Shri R. S. Ajmera and Shri I. S. Ajmera, Promoter Directors of the Company. The Company has availed fresh loan from Dena Bank and Exim bank during the period which is secured by charge on fixed assets and additional security provided by Directors, Relatives and Third Parties.

b. Dues payable to financial institutions as per scheme of rehabilitation of BIFR are further secured by pledge of Promoter Directors shareholding in the Company.

c. The Working Capital limits from consortium of banks are secured by a first charge on all the current assets of the Company, present and future, book debts and receivables and second charge on the fixed assets of the Company.

d. The Working Capital from Banks excludes Bills Discounting.

e. Hire Purchase Loans are secured by Hypothecation of specific assets.

8. The ARIIL Company under which unit of this company was granted the new Entitlement Certificate bearing No. 27490293346 V/R-81/1478, dated 12th May 2006 for deferral mode of paying the Sales Tax with effect from 1st April 2005 from exemption availed till 31st March 2005.

The ARIIL Company was permitted in terms of Rule 81 of the Maharashtra Value Added Tax Rules 2005 (MVAT Rules) to defer the Sales Tax Liabilities for the period covered by eligibility Certificate No. FINC/l/1988/Deferral/EC-3552, dated 24th January 2006.

During the period ended net Sales Tax Collected of Rs. 853 Lacs has been considered as unsecured loan. The total amount outstanding of Rs. 3,410 Lacs as on 30th September 2009 is repayable in five equal annual installments commencing from the June 2015.

9. Exchange Fluctuation:

Materials consumed and Sales Turnover includes exchange rate difference of Rs. 1554 Lacs (Adverse) and Rs. 2284 Lacs (Adverse) respectively.

10.The company was claiming Export Benefits under Duty Entitlement Pass-Book (DEPB) scheme. From 1st November 2006, the company opted export benefit under Duty Free Import Authorization (DFIA) scheme, Focus Market, Target Plus and also Advance License Scheme and the amount receivable from all the schemes are grouped under the head "Sundry Debtors" and classified under the subhead in "Others considered good".

11.Managerial remuneration (excluding provision for Gratuity and provision for leave encashment on retirement) paid/payable to Directors:

No commission is payable to Wholetime Directors in view of waiver of commission by them for the current period under review and also in view of loss during the current period under review. The Company has been advised that the computation of the net profit for the purpose of remuneration to Director under Section 349 & 350 of the Act need not be enumerated.

12 The company has transferred its steel business as a going concern to Essar Steel Limited (ESL) under Business Transfer Agreement w.e.f. from 29th October 2009. The Company had obtained the requisite approval of its Shareholders under Section 293 (1) (a) of the Companies Act, 1956.

13 The Effect of post sale of Steel Business will be recorded by the company in the year of transaction concluded pending valuation of assets retained by the Company.

14 The accounts of the company have been prepared on the basis of going concern concept in view of future business plans of the company and accordingly Deferred Tax Assets/Liability have been recognized.

15 Deferred Taxation:

The Company has net Deferred Tax Asset of Rs.2,339.32 lacs as on 30th September 2009 which is in accordance with the Accounting Standard - 22 issued by the Institute of Chartered Accountants of India.

16. Employee Benefit:

Consequent to Revised Accounting Standards 15 (AS-15) "Employee Benefits" read with guidance note on implementation of AS-15 issued by Institute of Chartered Accountants of India, effective from April 1,2007, the company has reviewed and revised its accounting policy in respect of employee benefits.

17. Segment Information:

The Companys Division is only deals in Steel Products hence there is no Primary reportable segment in the context of Accounting Standard AS -17 issued by ICAI. As the Companys export turnover is significant in the context of the total turnover, geographical segment is considered as the Secondary Segment and are being reported.

18. Related Party Disclosures:

The related party and relationships, as identified by the Management and relied upon by the Auditors, with whom transactions have taken place during the period ended are:

a. List of related parties and their relationship:

Name of the Party Relationship

A.G. Estate Private Limited Associate

Ajmera Realty & Infra India Limited Associate

Ajmera Cement Private Limited Associate

Ajmera Housing Corporation Banglore Associate

Ajmera Housing Corporation Associate

Ajmera Steel Stripes Limited Associate

Ajmera Water N Amusement Park Private Limited Associate

Bombay Freeezco Private Limited Associate

Jolly Brotheres Private Limited Associate

Kunnuj Investment Private Limited Associate

Vijay NagarAppartment Associate

Rushabh Investments Pvt. Ltd. Associate

Yogi Nagar Vasahat Private Limited Associate

Nilkanth Tech Park Private Limited Associate

b. Directors and their relatives:

Name of the Party Relationship

Shri Chhotalal S. Ajmera Chairman & Managing Director

Shri Chhotalal S. Ajmera - HUF Relative Shri Rajnikant S. Ajmera Managing Director

Shri Rajnikant S. Ajmera - HUF Relative

Shri Ishwarlal S. Ajmera Director

Shri Ishwarlal S. Ajmera - HUF Relative

Shri Sanjay C Ajmera Relative

Shri Bhogilal S. Ajmera Relative

Shri Natwarlal S. Ajmera Relative

Shri Shashikant S. Ajmera Relative

Shri Surendra I. Ajmera Relative

Shri. Manoj I. Ajmera Relative

Shri. Jayant I. Ajmera Relative

Smt. Veena C. Ajmera Relative

Shri. Atul C. Ajmera Relative

Smt. Bharati R. Ajmera Relative

Shri. Dhaval R. Ajmera Relative

19. Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

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 above information and that given in schedule 11 -"Current Liabilities" regarding Micro and Small enterprises 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.

20. Sundry Debtors balances in the Balance Sheet includes Rs.28 lacs receivable from Rushabh Investments Private Limited, the Management of which are related to the Directors of the Company.

21. The Loans and advances includes Rs 650.08 Lacs recoverable from Government Authorities as Custom and Excise Duty refundable.

22. The payment to Auditors of Rs. 15.62 lacs includes the following : Audit Fees - Rs.6.75 lacs Tax Audit Fess - Rs. 1.12 lacs Certification & Other matters - Rs. 1.13 lacs Interim Audit-Rs. 1.12 lacs Audit under Other Acts - Rs.2.25 lacs Out of Pocket Expenses - Rs.3.25 lacs