Notes to Accounts of Steel Cast Ltd.

Mar 31, 2025

R. Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an
outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision
due to the passage of time is recognised as a finance cost. Provisions are reviewed at each balance sheet date and
adjusted to reflect the current best estimates.

S. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by
the occurrence or non-occurrence of one or more uncertain future events beyond control of the Company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but
discloses its existence in the financial statements.

19 Other Equity (contd.)

Securities Premium - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the
aggregate amount of the premium received on those shares shall be transferred to "Securities Premium Reserve". The
Company may issue fully paid-up bonus shares to its members out of the securities premium reserve and the Company can
use this reserve for buy-back of shares.

Capital Reserve - It represents gain of capital nature which mainly includes gain on reissue of forfeited shares.

General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus in
the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up and
not paid-up bonus shares.

Retained Earnings - Retained Earnings are the profits that the Company has earned till date, less any transfers to General
reserve and payment of dividend.

36 Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and
assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying
disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in
outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods

Other disclosures relating to the Group''s exposure to risks and uncertainties includes:

- Financial Risk Management Objectives and Policies - Note 44

- Capital Management - Note 45

- Sensitivity analyses disclosures - Note 37 and 44
Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which
have the most significant effect on the amounts recognised in the financial statements:

Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that
have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next
financial year, are described below. The Company based its assumptions and estimates on parameters available when
the standalone financial statements were prepared. Existing circumstances and assumptions about future developments,
however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such
changes are reflected in the assumptions when they occur.

Employee Benefit Plans

The cost of defined benefit gratuity plan and other long-term employment benefit plans are determined using actuarial
valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in
the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes
in these assumptions. All assumptions are reviewed at each reporting date. The mortality rate is based on publicly available
mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes.
Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity
obligations are given in Note 37.

Taxes

Significant management judgement is required to determine the amount of deferred tax assets that can be recognised,
based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Details on
deferred taxes are disclosed in Note 21.

Useful Lives of Property, Plant & Equipment

The Company reviews the useful life of property, plant & equipment at the end of each reporting period. This reassessment
may result in change in depreciation expense in future periods.

Impairment of Financial Assets

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

Estimated impairment allowance on trade receivables is based on the ageing of the receivable balances and historical
experiences. Individual trade receivables are written off when management deems them not to be collectible.

Provisions and contingent liabilities

The Company estimates the provisions that have present obligations as a result of past events and it is probable that
outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting
period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to assess contingent liabilities. Contingent liabilities are recognised when there
is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation
that arises from past events where it is either not probable that an outflow of resources will be required to settle the
obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in
the standalone financial statements.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based
on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The
inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of
judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit
risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

37 Employee Benefit

Defined Benefit Plans

The Company has defined benefits gratuity plan. Every employee who has completed five years or more of service gets
gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed years of service. The
Company''s Gratuity Fund is managed by Life Insurance Corporation of India.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and
the funded status and amounts recognised in the balance sheet.

38 Commitments and Contingencies
a. Leases

Company as Lessee

(i) The Company has lease contracts for various lands taken from Bhavnagar Municipal Corporation (Lessor). These lease
contracts have lease terms between 25 to 99 years. Upon expiry, the Company (Lessee) also has an option to renew
the said lease for another term of lease. The consideration for the right to use these lands over the lease term is paid
upfront and these leases do not require payment of any material lease rent amount on recurring basis. Right-of-use
asset with respect to these leashold lands has been presented as part of Note 3 on Property, Plant and Equipment.
Regarding plot no. F69AB1 & F69AB3 the term of lease is expired and the company has before expiry of lease term
has applied with the lessor for the renewal of lease (carrying value Rs.11.36 Lakhs). The said renewals are under
process with the lessor. The company expects it to be approved shortly during FY 2025-26.

(ii) One plot no. 148 situated in Gujarat Industrial Development Corporation (GIDC) - Vartej was alloted to the company
by the GIDC. The possession was also given to the company. However, the lease deed is pending to be executed as
the allotment challenged in Hon''ble Gujarat High Court and matter is on stay since then.

Notes:

(i) In the year of 2010 the company purchased a plot of land having city survey no. 302, admeasuring 22,325.59 sq.
mtrs, identified in company''s record as Plot no. F-26, from a private party and acquired the lease rights thereon.
The relevant transfer of the property and lease rights thereon was accepted by Bhavnagar Municipal Corporation
(BMC) and taken on their record. Subsequently, the Collector of Bhavnagar District intervened and passed an order
holding the transfer of the property to the company to be invalid. The company then went in appeal to the High
Court of Gujarat and the Honourable High Court was pleased to stay the order of the Collector. The company is
confident of ultimately winning the case on merits and does not foresee any adverse consequences and or liability
in this regard. The matter is still pending in High Court.

(ii) The company uses energy generated from conventional sources and as per Electricity Act 2003 and Gujarat
Electricity Regulatory Commission regulations, the company is cast upon obligation to purchase Renewal Energy
Certificate(REC) for meeting renewal power purchase obligation determined in the regulations from Central
Electricity Regulatory Commission. The regulations are effective since 2015-16 and awaiting clarification from
power distribution Companies for its enforcement and applicability period. The matter is sub-judice. The REC
obligation amount of Rs 17.48 Lakhs is arrived at as per rate mentioned at Indian Energy Exchange (IEX) in the
month of March 2025. The REC obligation will be discharged upon disposal of cases from the regulators.

(iii) The Company had sold goods to Steelcast LLC (an erstwhile joint venture between the Company and Makary &
Associates for business development for Steelcast Limited) in 2015 which in turn sold the goods to its customer
i.e. LB Steel in United States of America. The LB Steel initiated bankruptcy proceeding in 2015 in United States
Bankruptcy Court of Illinois and a Committee of Creditors(CoC) was formed. The CoC initiated bankruptcy
proceedings in the said court for recovery of payment made to Steelcast Limited by LB Steel through Steelcast LLC.
The amount determined was USD 252,393 (equivalent INR 207.38 Lakhs).

The company had disclosed regarding the above matter under contingent liabilities head in Note no. 38 of Balance
Sheet of FY 2023-24. The company had during FY 2024-25, deposited an amount of USD 277,379 (equivalent INR

231.68 Lakhs) as per the assessment of the amount & direction of the district court of USA. Now the company has
received the judgment of the United States District Court for the Northern District of Illinois on 04 April 2025 in
favour of the Committee of the Creditors (LB Steel LLC).

During FY 2024-25, the Company has already written off the amount deposited USD 277,379 (equivalent INR

231.68 Lakhs) with the Court of USA. The appropriation of the deposited amount shall be decided and intimated
to us during the FY 2025-26 and the balance amount, if any, shall be refunded back to the company.

This disclosure is only for the information with reference to our previous year disclosure on this case in
contingent liability.

39 Related Party Transactions

A. Name of the related parties and nature of the related party relationship:

i Key Managerial Personnel & their Relative

Shri Chetan M Tamboli -Chairman & Managing Director

Shri RushiL C Tamboli - Son of Managing Director and Non-Executive Non-Independent Director
Mrs. Vidhi S Merchant - Daughter of Managing Director and Non-Executive Non-Independent Director
Shri Ashutosh H Shukla - Executive Director

Shri Subhash R Sharma - Executive Director and Chief Financial Officer
Shri Umesh V Bhatt - Company Secretary

ii Entities controlled by Key Managerial Personnel

Steelcast Education Trust
Shri F. P. Tamboli Charitable Trust

The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current

transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were

used to estimate the fair values:

- The fair values of quoted investments are based on price quotations at the reporting date

- The fair values of unquoted investment in equity shares and compulsory convertible debentures are based on valuation
report obtained from a Registered Valuer. In addition, the Company also made necessary inquiries with the investee
company to evaluate the changes in fair value of these investments since the date of valuation by Registered Valuer
and the reporting date and has assessed that there has been no major variation in their fair value. Hence the fair
value as at 31 March 2025 has been taken on the basis of valuation carried out by a Registered Valuer as at 31 March
2024 and necessary inquiries made with the investee company to evaluate the changes in fair value since the date of
valuation by Registered Valuer and the reporting date.

- The fair values of non-current loans have been estimated using DCF model which consider certain assumptions viz.
forecast cash flows, discount rate, credit risk and volatility.

- Fair value of non-current security deposits is cosidered same as its carrying amount as majority of these are related to
utility services and the same are repayable on demand.

- The fair values of non-current deposits with banks have been estimated using DCF model which consider certain
assumptions viz. forecast cash flows, discount rate, credit risk and volatility.

- The management assessed that the carrying amounts of current financial assets and current financial liabilities such as
trade receivables, cash and bank balances, loans, other financial assets, borrowings, trade payables and other financial
liabilities are reasonable approximations of fair values largely due to the short-term maturities of these instruments.

44 Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, 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 loans, trade and other receivables, and cash and cash equivalents that derive directly from its
operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the
management of these risks. The Company''s financial risk activities are governed by appropriate policies and procedures
and financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The
Company''s financial risk management policies are set by the Board of Directors. All derivative activities for risk management
purposes are carried out by teams that have the appropriate skills, experience and supervision. It is the Company''s policy
that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees
policies for managing each of these risks, which are summarised below.

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 comprises three types of risk: interest rate risk, currency risk, commodity price risk and other
price risk. Financial instruments affected by market risk include borrowings, payables, receibables and equity investments.

The sensitivity analyses in the following sections relate to the position as at 31 March 2025 and 31 March 2024.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest
rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is
based on the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.

Interest Rate Risk

The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating rate debt. All
the borrowing of the Company are at floating rate of interest.

Interest Rate Sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans
and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the
impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable
market environment.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the
Company''s operating activities (when revenue or expense is denominated in a foreign currency). To mitigate the foreign
currency risk, the Company enters into foreign exchange forward contracts. These foreign exchange forward contracts,
carried at fair value, may have varying maturities varying depending upon the primary host contract requirements and risk
management strategy of the Company.

The most significant foreign currencies the Company is exposed to is the USD and EURO. The following tables sets forth
information relating to foreign currency forward contracts and unhedged foreign currency exposureas at 31 March 2025
and 31 March 2024.

Commodity price risk

The Company is exposed to the price volatility of certain commodities. Its operating activities require the ongoing
manufacture of steel castings and therefore require a continuous supply of Mild Steel, Stainless Steel and Ferro Alloys.
In order to mitigate the risk of volatility in the price of these supplies, the contracts with customers contain a clause for
recovery of the variation in the price of these supplies. Hence, there is no material impact of these price variations for
the Company.

Other Price risk

The Company''s exposure to other price risk arises from investments in equity instruments, compulsory convertible
debentures and mutual fund held by the Company and classified in the balance sheet at FVTOCI and at FVTPL. To manage
its price risk arising from investments, the Company diversifies its portfolio. Diversification of the portfolio is done in
accordance with the limits set by the Company.

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 (primarily trade receivables)
and from its financing activities, including deposits with banks and financial institutions and foreign exchange transactions.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in
several jurisdictions and industries and operate in largely independent markets.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The
Company does not hold collateral as security.

I) Trade Receivables

Customer credit risk is managed on the basis of the Company''s established policy, procedures and control relating
to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days to 145
days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer
receivables are regularly monitored.

FFor trade receivables, Expected Credit Loss (ECL) is provided as per simplified approach. The Company has applied
the practical expedient as per Ind AS 109 ''Financial Instruments'' to measure the loss allowance at lifetime ECL. The
Company determines the ECL on trade receivables by using a provision matrix, estimated based on historical credit
loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and
estimates of future economic conditions. Below table represents the reconciliation of provision made for expected
credit loss for trade receivables:

II) Financial Instruments and Cash Deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in
accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties who
meets the minimum threshold requirements under the counterparty risk assessment process. Based on its on-going
assessment of counterparty risk, the Company adjusts its exposure to various counterparties.

45 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other
equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management
is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or
its business requirements. 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. The Company includes within net debt, interest bearing borrowings
(including current maturities), trade payables, less cash and cash equivalents and other bank balances.

49 Other Statutory Information (management to assess if the Company has entered into any of
the following transactions. If yes, then necessary disclosures will have to be given).

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

(ii) The Company does not have any transactions with companies struck off.

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

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

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

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

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

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

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

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

(vii) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such
as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

1

50 Previous year figures have been recast / restated wherever necessary.

As per our report of even date.

For S S M & CO For STEELCAST LIMITED

Chartered Accountants

FRN : 129198W Subhash Sharma Umesh Bhatt

Chief Financial Officer & Director Company Secretary

For and on Behalf of the Board of Directors

M. Rafik Sheikh Rushil C Tamboli Chetan M Tamboli

Partner Director Chairman & Managing Director

M. No. 106176 DIN: 07807971 DIN: 00028421

Place: Bhavnagar Place: Bhavnagar

Date: 28^th May 2025 Date: 28^th May 2025

---

Mar 31, 2024

R. Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

S. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

Securities Premium - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium Reserve". The Company may issue fully paid-up bonus shares to its members out of the securities premium reserve and the Company can use this reserve for buy-back of shares.

Capital Reserve - It represents gain of capital nature which mainly includes gain on reissue of forfeited shares.

General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up and not paid-up bonus shares.

Retained Earnings - Retained Earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend.

36 Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Other disclosures relating to the Group''s exposure to risks and uncertainties includes:

- Financial Risk Management Objectives and Policies - Note 44

- Capital Management - Note 45

- Sensitivity analyses disclosures - Note 37 and 44 Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Employee Benefit Plans

The cost of defined benefit gratuity plan and other long-term employment benefit plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 37.

Taxes

Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Details on deferred taxes are disclosed in Note 21.

Useful Lives of Property, Plant & Equipment

The Company reviews the useful life of property, plant & equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

Impairment of Financial Assets

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

Estimated impairment allowance on trade receivables is based on the ageing of the receivable balances and historical experiences. Individual trade receivables are written off when management deems them not to be collectible.

Provisions and contingent liabilities

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to assess contingent liabilities. Contingent liabilities are recognised when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the standalone financial statements.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as

liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

37 Employee Benefit

Defined Benefit Plans

The Company has defined benefits gratuity plan. Every employee who has completed five years or more of service gets gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed years of service. The Company''s Gratuity Fund is managed by Life Insurance Corporation of India.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet.

38 Commitments and Contingencies a. Leases

Company as Lessee

(i) The Company has lease contracts for various lands taken from Bhavnagar Municipal Corporation (Lessor). These lease contracts have lease terms between 25 to 99 years. Upon expiry, the Company (Lessee) also has an option to renew the said lease for another term of lease. The consideration for the right to use these lands over the lease term is paid upfront and these leases do not require payment of any material lease rent amount on recurring basis. Right-of-use asset with respect to these leashold lands has been presented as part of Note

3 on Property, Plant and Equipment. Regarding plot no. F69AB1 & F69AB3 the term of lease is expired and the company has before expiry of lease term has applied with the lessor for the renewal of lease (carrying value Rs.11.36 Lakhs). The said renewals are under process with the lessor. The company expects it to be approved shortly during FY 2024-25.

(ii) One plot no. 148 situated in Gujarat Industrial Development Corporation (GIDC) - Vartej was alloted to the company by the GIDC. The possession was also given to the company. However, the lease deed is pending to be executed as the allotment challenged in Hon''ble Gujarat High Court and matter is on stay since then.

Note:

(i) In the year of 2010 the company purchased a plot of land having city survey no. 302, admeasuring 22,325.59 sq. mtrs, identified in company''s record as Plot no. F-26, from a private party and acquired the lease rights thereon. The relevant transfer of the property and lease rights thereon was accepted by Bhavnagar Municipal Corporation (BMC) and taken on their record. Subsequently, the Collector of Bhavnagar District intervened and passed an order holding the transfer of the property to the company to be invalid. The company then went in appeal to the High Court of Gujarat and the Honourable High Court was pleased to stay the order of the Collector. The company is confident of ultimately winning the case on merits and does not foresee any adverse consequences and or liability in this regard. The matter is still pending in High Court.

(ii) The company uses energy generated from conventional sources and as per Electricity Act 2003 and Gujarat Electricity Regulatory Commission regulations, the company is cast upon obligation to purchase Renewal Energy Certificate(REC) for meeting renewal power purchase obligation determined in the regulations from Central Electricity Regulatory Commission. The regulations are effective since 2015-16 and awaiting clarification from power distribution Companies for its enforcement and applicability period. The matter is sub-judice. The REC obligation amount of Rs 14.03 Lacs is arrived at as per rate mentioned at Indian Energy Exchange(IEX) in the month of March-2024. The REC obligation will be discharged upon disposal of cases from the regulators.

(iii) The Company had sold goods to Steelcast LLC (an erstwhile joint venture between the Company and Makary & Associates for business development for Steelcast Limited) in 2015 which in turn sold the goods to its customer i.e. LB Steel in United States of America. That ultimate customer then initiated bankruptcy proceeding in 2015 in United States Bankruptcy Court of Illinois and a Committee of Creditors was formed. The Committee of Creditors sent a notice to Steelcast Limited demanding USD 252,393 (equivalent INR 207.38 Lakhs) saying that LB Steel who bought material from Steelcast LLC has initiated bankruptcy proceeding and that LB Steel had made payments for the purchase of goods during the preference period. Hence they are seeking avoidance and recovery of the equivalent amount from Steelcast Limited. The Company refuted the charges and court proceeding initiated in United States Bankruptcy Court of Illinois. The said court decided in favour of the Committee of Creditors of LB Steel without giving due weightage to the representations made by the Company. The Company has appealed against the order there in the higher court. The matter is sub-judice as on date. During the year the the Company is confident of ultimately winning the case on merits and does not foresee any adverse consequences and or liability in this regard.

39 Related Party Transactions A. Name of Related Parties Relation

i Key Managerial Personnel & their Relative

Shri Chetan M Tamboli -Chairman & Managing Director

Shri Rushil C Tamboli - Son of Managing Director and Non-Executive Non-Independent Director @

Ms. Vidhi S Merchant - Daughter of Managing Director and Non-Executive Non-Independent Director Shri Ashutosh H Shukla - Executive Director #

Shri Subhash R Sharma - Executive Director and Chief Financial Officer $

Shri Umesh V Bhatt - Company Secretary

ii Entities controlled by Key Managerial Personnel

Steelcast Education Trust Shri F. P. Tamboli Charitable Trust

40 Segment Information: a Basis for Segmentation

The Company''s senior management consisting of Chief Executive Officer, Directors, Chief Financial Officer, Company Secretary and Managers one level below the Director, examines the company''s performance on the basis of single segment namely Castings Manufacturing business. Hence, the Company has only one operating segment under Ind AS 108 ''Operating Segments'' i.e. Castings Manufacturing business.

b Geographical Information

The geographical information have been identified based on revenue within India (sales to customers with in India) and revenue outside India (sales to customers located outside India). The following table presents geographical information regarding the Company''s revenue:

44 Financial Risk Management Objectives and Policies

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, 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 loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s financial risk activities are governed by appropriate policies and procedures and financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives.

The Company''s financial risk management policies are set by the Board of Directors. AH derivative activities for risk management purposes are carried out by teams that have the appropriate skills, experience and supervision. It is the Company''s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

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 comprises three types of risk: interest rate risk, currency risk, commodity price risk and other price risk. Financial instruments affected by market risk include borrowings, payables, receibables and equity investments.

The sensitivity analyses in the following sections relate to the position as at 31 March 2024 and 31 March 2023.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2024 and 31 March 2023.

Interest Rate Risk

The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating rate debt. All the borrowing of the Company are at floating rate of interest.

Interest Rate Sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company''s profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). To mitigate the foreign currency risk, the Company enters into foreign exchange forward contracts. These foreign exchange forward contracts, carried at fair value, may have varying maturities varying depending upon the primary host contract requirements and risk management strategy of the Company.

The most significant foreign currencies the Company is exposed to is the USD and EURO. The following tables sets forth information relating to foreign currency forward contracts and unhedged foreign currency exposureas at 31 March 2024 and 31 March 2023.

(a) Forward Contracts Outstanding as at the Reporting Date (in respective currency)

The company did not execute any forward contracts during the FY 2023-24 (previous year: INR Nil).

The Company is exposed to the price volatility of certain commodities. Its operating activities require the ongoing manufacture of steel castings and therefore require a continuous supply of Mild Steel, Stainless Steel and Ferro Alloys. In order to mitigate the risk of volatility in the price of these supplies, the contracts with customers contain a clause for recovery of the variation in the price of these supplies. Hence, there is no material impact of these price variations for the Company.

Other Price risk

The Company''s exposure to other price risk arises from investments in equity instruments, compulsory convertible debentures and mutual fund held by the Company and classified in the balance sheet at FVTOCI and at FVTPL. To manage its price risk arising from investments, the Company diversifies its portfolio. Diversification of the portfolio is done in accordance with the limits set by the Company.

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 (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and foreign exchange transactions.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

I) Trade Receivables

Customer credit risk is managed on the basis of the Company''s established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days to 145 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

For trade receivables, Expected Credit Loss (ECL) is provided as per simplified approach. The Company has applied the practical expedient as per Ind AS 109 ''Financial Instruments'' to measure the loss allowance at lifetime ECL. The Company determines the ECL on trade receivables by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions. Below table represents the reconciliation of provision made for expected credit loss for trade receivables:

II) Financial Instruments and Cash Deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s finance department in accordance with the Company''s policy. Investments of surplus funds are made only with approved counterparties who meets the minimum threshold requirements under the counterparty risk assessment process. Based on its ongoing assessment of counterparty risk, the Company adjusts its exposure to various counterparties.

Liquidity risk is defiined as the risk that the Company will not be able to settle or meet its obligation on time or at a reasonable price. Processes and policies related to such risks are overseen by senior management. The Company regularly monitors the rolling forecasts and actual cashflows, to ensure it has sufficient funds to meet the operational needs.

45 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements. 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. The Company includes within net debt, interest bearing borrowings (including current maturities), trade payables, less cash and cash equivalents and other bank balances.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024 and 31 March 2023.

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

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

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

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

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

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

(vii) The Company does not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

50 Previous year figures have been recast / restated wherever necessary.

The accompanying notes are integral part of the financial statements As per our report of even date.

For S S M & CO For STEELCAST LIMITED

Chartered Accountants

FRN : 129198W Subhash Sharma Umesh Bhatt

Chief Financial Officer & Director Company Secretary For and on Behalf of the Board of Directors

CA Sarju Mehta Rushil C Tamboli Chetan M Tamboli

Partner Director Chairman & Managing Director

M. No. 106804 DIN: 07807971 DIN: 00028421

Place: Bhavnagar Place: Bhavnagar

Date: 30^th May 2024 Date: 30^th May 2024

---

Mar 31, 2023

R. Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimates.

S. Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.

36 Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Employee Benefit Plans

The cost of defined benefit gratuity plan and other long-term employment benefit plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 37.

Taxes

Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Details on deferred taxes are disclosed in Note 20.

Useful Lives of Property, Plant & Equipment

The Company reviews the useful life of property, plant & equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

Impairment of Financial Assets

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

Provisions and contingent liabilities

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to assess contingent liabilities. Contingent liabilities are recognised when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the standalone financial statements.

Fair value measurement of financial instruments

When the fair values of financial assets and financial liabilities recorded in the balance sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

37 Employee Benefit Defined Benefit Plans

The Company has defined benefits gratuity plan. Every employee who has completed five years or more of service gets gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed years of service. The Company’s Gratuity Fund is managed by Life Insurance Corporation of India.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet.

51 Other Statutory Information (management to assess if the Company has entered into any of the following transactions. If yes, then necessary disclosures will have to be given).

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

(ii) The Company does not have any transactions with companies struck off.

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

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

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

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

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

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

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

(vii) The Company does not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

52 Previous year figures have been recast/restated wherever necessary.

As per our report on even date.

For S S M & CO For STEELCAST LIMITED

Chartered Accountants FRN: 129198W

Subhash Sharma Umesh Bhatt

Chief Financial Officer Company Secretary

CA Sarju Mehta For and on Behalf of the Board of Directors

Partner

M. No. 106804 Rushil C Tamboli Chetan M Tamboli

Place: Bhavnagar Director Chairman & Managing

Date: 23 May 2023 DIN: 07807971 Director

Place: Bhavnagar DIN: 00028421

Date: 23 May 2023

---

Mar 31, 2022

During the year ended 31st March 2022, the Company paid the final dividend of INR 27,324,000 (INR 1.35 per Equity Share) for the year ended 31st March 2021 and the Company also paid the Interim dividend of INR 27,324,000 (INR 1.35 per Equity Share) for the financial year 2021-22.

On 18th May 2022, the Board of Directors has recommended the final dividend of INR 1.80 per Equity Share on the Fully Paid Share Capital for the year ended 31st March 2022 subject to approval from Shareholders. On approval, the total dividend payment based on number of shares outstanding as on 31st March 2022 is expected to be INR 364.32 Lakhs.

Securities Premium - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to "Securities Premium Reserve”. The Company may issue fully paid-up bonus shares to its members out of the securities premium reserve and the Company can use this reserve for buy-back of shares.

Capital Reserve - It represents gain of capital nature which mainly includes gain on reissue of forfeited shares.

General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up and not paid-up bonus shares.

Retained Earnings - Retained Earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend.

b) Nature of security

i. Term loans from Tata Capital Financial Services Ltd were secured against first pari passu charge on gross block of the fixed assets (excluding Plant & Machinery charged to Caterpillar India Pvt. Ltd) and second charge on current assets of the Company and further guaranteed by one of the directors.

ii. Term loan form Aditya Birla Finance Limited was exclusively secured through mortgage on certain residential properties.

iii. Working capital term loans under the Emergency Credit Line Guarantee Scheme (ECLGS 2.0) from Standard Chartered Bank were secured against second pari passu charge on gross block of the fixed assets (excluding Plant & Machinery charged to Caterpillar India Pvt. Ltd & residential flats of the company) and on current assets of the Company.

iv. There is no term lender as on 31.03.2022 to claim 1st pari pasu charge on gross block of the fixed assets.

(1) Working Capital Finance (in Rupee Accounts) is secured against first pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed by one of the Directors. These loans are repayable on demand. These working capital borrowings carry interest rate ranging from 2.40% (considering interest subvention/subsidy) to 9.75%.

(2) The quarterly returns and statements of current assets filed by the Company with banks with respect to the working capital loan taken from banks are in agreement with the books of accounts.

DUES TO MICRO AND SMALL ENTERPRISES

The Company does not have dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (‘MSMED Act’). There are no disclosures pursuant to the said MSMED Act to mention herein.

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.

Trade receivables are non-interest bearing and are generally on terms of 30 to 145 days. The increase / decrease in trade receivables is on account of realisation of previous year outstanding of receivables and unrealised amount of current year outstanding of receivables against new sales.

Contract liabilities include advances received from customer for suppply of goods. The increase / decrease in trade receivables is on account of supply of goods against previous year advances received and receipt of new advances during the year for supply of goods.

Performance obligation

Revenue from sale of goods is recognised at the point in time when control of the assets is transferred to the customer, generall on the delivery of the equipment. Some contract provides customers with a right of return and rebate which gives right to variable considerations subject to constraint.

40 Significant Accounting Judgements, Estimates and Assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Estimates and Assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Employee Benefit Plans

The cost of defined benefit gratuity plan and other long-term employment benefit plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 41.

Taxes

Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Details on current taxes are disclosed in Note 22.

Useful Lives of Property, Plant & Equipment

The Company reviews the useful life of property, plant & equipment at the end of each reporting period. This reassessment may result in change in depreciation expense in future periods.

Impairment of Financial Assets

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

Estimated impairment allowance on trade receivables is based on the ageing of the receivable balances and historical experiences. Individual trade receivables are written off when management deems them not to be collectible.

Provisions and contingent liabilities

The Company estimates the provisions that have present obligations as a result of past events and it is probable that outflow of resources will be required to settle the obligations. These provisions are reviewed at the end of each reporting period and are adjusted to reflect the current best estimates.

The Company uses significant judgements to assess contingent liabilities. Contingent liabilities are recognised when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made. Contingent assets are neither recognised nor disclosed in the standalone financial statements.

41 Employee Benefit Defined Benefit Plans

The Company has defined benefits gratuity plan. Every employee who has completed five years or more of service gets gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed years of service. The Company’s Gratuity Fund is managed by Life Insurance Corporation of India.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet.

42 Commitments and Contingencies

a. Leases

Company as Lessee

The Company has taken land for its Bhavnagar factory on lease for 30 years. Upon expiry, the Company also has an option to renew the said lease for another period of 30 years.

b. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for:

The Company has entered into various contracts with suppliers and contractors for the acquisition of plant and machinery, equipment and various civil contracts of capital nature amounting to INR 221.61 Lakhs, (202021: INR 345.35 lakhs).

c. Contingent Liabilities

(to the extent not provided for)		(INR in Lakhs)
Particulars	31st March, 2022	31st March, 2021
Renewal Power Purchase Obligation (Note No. ii)	65.40	37.83
In respect of other matters	1.80	1.80
Total	67.20	39.63

Note:

(i) In the year of 2010 the company purchased a plot of land having city survey no. 302, admeasuring 22,325.59 sq. mtrs, identified in company’s record as Plot no. F-26, from a private party and acquired the lease rights thereon. The relevant transfer of the property and lease rights thereon was accepted by Bhavnagar Municipal Corporation (BMC) and taken on their record. Subsequently, the Collector of Bhavnagar District intervened and passed an order holding the transfer of the property to the company to be invalid. The company then went in appeal to the High Court of Gujarat and the Honourable High Court was pleased to stay the order of the Collector. The company is confident of ultimately winning the case on merits and does not foresee any adverse consequences and or liability in this regard. There have been no progress for disposal of the case in High Court due to COVID-19 during last 2 years.

(ii) The company uses energy generated from conventional sources and as per Electricity Act 2003 and Gujarat Electricity Regulatory Commission regulations, the company is cast upon obligation to purchase Renewal Energy Certificate(REC) for meeting renewal power purchase obligation determined in the regulations from Central Electricity Regulatory Commission. The regulations are effective since 2015-16 and matter is sub-judice and awaiting clarification from power distribution Companies for its enforcement and applicability period. The amount of Rs 65.40 Lacs is arrived at as per rate mentioned at Indian Energy Exchange(IEX) in the month of March-2022.

44 Segment Information: a Basis for Segmentation

The Company’s senior management consisting of Chief Executive Officer, Directors, Chief Financial Officer, Company Secretary and Managers one level below the Director, examines the company’s performance on the basis of single segment namely Castings Manufacturing business. Hence, the Company has only one operating segment under Ind AS 108 ''Operating Segments'' i.e. Castings Manufacturing business.

46 Fair Values

The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The management assessed that the carrying amounts of its financial instruments are reasonable approximations of fair values.

47 Financial Risk Management Objectives and Policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, 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 loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s financial risk activities are governed by appropriate policies and procedures and financial risks are identified, measured and managed in accordance with the

Company’s policies and risk objectives. The Company’s financial risk management policies are set by the Board of Directors. All derivative activities for risk management purposes are carried out by teams that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Previous year figures have been recast/restated wherever necessary.

The sensitivity analyses in the following sections relate to the position as at 31st March, 2022 and 31st March, 2021.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31st March, 2022 and 31st March, 2021.

Interest Rate Risk

The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. All the borrowing of the Company are at floating rate of interest.

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency). To mitigate the foreign currency risk, the Company enters into foreign exchange forward contracts. These foreign exchange forward contracts, carried at fair value, may have varying maturities varying depending upon the primary host contract requirements and risk management strategy of the Company.

The most significant foreign currencies the Company is exposed to is the USD and EURO. The following tables sets forth information relating to foreign currency forward contracts and unhedged foreign currency exposureas at 31st March, 2022 and 31st March, 2021.

(a) Forward Contracts Outstanding as at the Reporting Date (in respective currency)

The company did not execute any forward contracts during the FY 2021-22.(previous year: INR Nil lakhs).

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 (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and foreign exchange transactions.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

I) Trade Receivables

Customer credit risk is managed on the basis of the Company’s established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days to 145 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

For trade receivables, Expected Credit Loss (ECL) is provided as per simplified approach. The Company has applied the practical expedient as per Ind AS 109 ‘Financial Instruments’ to measure the loss allowance at lifetime ECL. The Company determines the ECL on trade receivables by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions. Below table represents the reconciliation of provision made for expected credit loss for trade receivables:

II) Financial Instruments and Cash Deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties who meets the minimum threshold requirements under the counterparty risk assessment process. Based on its on-going assessment of counterparty risk, the Company adjusts its exposure to various counterparties.

Liquidity Risk

Liquidity risk is defiined as the risk that the Company will not be able to settle or meet its obligation on time or at a reasonable price. Processes and policies related to such risks are overseen by senior management. The Company regularly monitors the rolling forecasts and actual cashflows, to ensure it has sufficient funds to meet the operational needs.

48 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements. 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. The Company includes within net debt, interest bearing borrowings (including current maturities), trade payables, less cash and cash equivalents and other bank balances.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31st March, 2022 and 31st March, 2021.

49 Research & Development Expenditure

The total amount of Research & Development Expenditure charged to profit and loss during the year is INR 291.10 lakhs (previous year: INR 203.04 lakhs).

52 Other Statutory Information

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

(ii) The Company does not have any transactions with companies struck off.

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

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

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

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

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

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

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

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

(vii) The Company does not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

Recent pronouncements

Ministry of Corporate Affairs ("MCA”) notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA issued the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as below:

a. Ind AS 103 - Reference to Conceptual Framework

The amendments specifiy that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103. The Company does not expect the amendment to have any significant impact in its financial statements.

b. Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss. The Company does not expect the amendments to have any impact in its recognition of its property, plant and equipment in its financial statements.

c. Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ‘cost of fulfilling’ a contract comprises the ‘costs that relate directly to the contract’. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts. The amendment is essentially a clarification and the Company does not expect the amendment to have any significant impact in its financial statements.

d. Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ‘10 percent’ test of Ind AS 109 in assessing whether to derecognise a financial liability. The Company does not expect the amendment to have any significant impact in its financial statements.

e. Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration. The Company does not expect the amendment to have any significant impact in its financial statements.

54 Impact of COVID-19

The Company has taken into account all the possible impacts of COVID-19 in preparation of these standalone financial statements. The Company has carried out this assessment based on available internal and external sources of information upto the date of approval of these standalone financial statements and believes that the impact of COVID-19 is not material to these standalone financial statements and expects to recover the carrying amount of its assets. The impact of COVID-19 on the standalone financial statements may differ from that estimated as at the date of approval of these standalone financial statements owing to the nature and duration of COVID-19.

55 Previous year figures have been recast/restated wherever necessary.

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Mar 31, 2018

NOTE: 1 CORPORATE INFORMATION

The financial statements are of Steelcast Limited (‘the Company’) for the year ended March 31, 2018. The Company was incorporated on 11.02.1972. The Company is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. The Company is engaged in casting manufacturing business.

The registered office of the Company is located at Ruvapari Road, Bhavnagar, Gujarat - 364005.

The financial statements were authorised for issue in accordance with a resolution of the directors on May 30, 2018.

NOTE: 2 BASIS OF PREPARATiON

The financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) notified under the Companies (Indian Accounting Standards) Rules, 2015 (as amended from time to time). For all periods up to and including the year ended March 31, 2017, the Company has prepared these financial statements in accordance with the recognition and measurement principles laid down in the Accounting Standards specified under Section 133 of the Companies Act, 2013 read with Rule 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India (Indian GAAP). These financial statements for the year ended March 31, 2018 are the first financial statements which the Company has prepared in accordance with Ind AS. Refer Note no. 48 on how the Company adopted Ind AS.

The financial statements have been prepared on an accrual basis and under the historical cost convention basis except for the following:

- Derivative financial instruments

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

- Defined benefit plans - plan assets measured at fair value.

A Terms/ rights attached to equity shares

The Company has one class of shares referred to as equity shares having a par value of Rs. 5 each. Each shareholder is entitled to one vote per share held. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

B Of the total share capital 1,31,16,000 Equity shares were issued as fully paid up bonus shares.

C Equity shares issued as fully paid up bonus shares or otherwise than by cash during the period of five years immediately preceding March 31, 2018: 396,000

D During the year ended March 31, 2018, the Company paid the final dividend of Rs. 1.21 crores (f 0.60 per equity share) and dividend distribution tax of f 0.25 crores for the year ended March 31, 2017.

E On May 30, 2018, the Board of Directors has recommended the final dividend of Rs. 1.35 per equity share on the share capital for the year ended March 31, 2018 subject to approval from shareholders. On approval, the total dividend payment based on number of shares outstanding as on March 31, 2018 is expected to be Rs. 2.73 crore and the payment of dividend distribution tax is expected to be f 0.56 crores.

Securities premium account - Where the Company issues shares at a premium, whether for cash or otherwise, a sum equal to the aggregate amount of the premium received on those shares shall be transferred to “Securities Premium Reserve’. The Company may issue fully paid-up bonus shares to its members out of the securities premium reserve and the Company can use this reserve for buy-back of shares.

Capital Reserve - It represents gain of capital nature which mainly includes gain on reissue of forfeited shares.

General Reserve - General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend and issue of fully paid-up and not paid-up bonus shares.

Retained earnings - Retained earnings are the profits that the Company has earned till date, less any transfers to General reserve and payment of dividend.

3 deferred tax liabilities (net)

The major components of income tax expense for the years ended March 31, 2018 and March 31, 2017 are:

The Company has tax losses which arose in India of f Nil (March 31, 2017: Rs. 73,604,268, April 1, 2016: Rs. 112,258,418) that are available for offsetting for eight years against future taxable profits of the Company. These losses expired in March, 2018. The Company also has unabsorbed depreciation of Rs. 133,145,659 (March 31, 2017: Rs. 285,551,182, April 1, 2016: Rs. 285,551,182).

Notes:

(1) Working capital finance (in foreign currency accounts) is secured against first pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed by one of the director. These loans are repayable on demand. This carries interest rate of LIBOR 3%.

(2) Working capital finance (in rupee accounts) is secured against first pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed by one of the director. These loans are repayable on demand. This carries interest rate ranging from 7.25% to 13.10%.

Revenue from operations includes excise duty collected from customers of Rs. 215.14 Lacs (previous year: Rs. 749.95 Lacs). Revenue from operations net of excise duty is Rs. 23,124.32 Lacs (previous year: Rs. 13,395.15 Lacs). Revenue from operations for periods up to 30 June 2017 includes excise duty. From 1 July 2017 onwards the excise duty and most indirect taxes in India have been replaced by Goods and Servicc Tax (GST). The Company collects GST on behalf of the Government. Hence, GST is not included in Revenue from operations. In view of the aforesaid change in indirect taxes, Revenue from operations for the year ended March 31, 2018 is not comparable with March 31, 2017.

4 significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Assessment of control / joint control

The Company had entered into a partnership agreement in October 2010 in order to form a partnership firm ‘Steelcast LLC However, the operations of that entity were closed on 1 June 2015. Since the closure of the operations of that entity, the Company is not able to exercise any of the agreed rights under the agreement and it is not expecting to receive any significant benefit from the exercise of its rights over the entity. Hence, the Company determined that it does not have control / joint control over the entity

Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the standalone financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Employee benefit plans

The cost of defined benefit gratuity plan and other long-term employment benefit plans are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date. The mortality rate is based on publicly available mortality tables for India. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates. Further details about gratuity obligations are given in Note 39.

Taxes

Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and the level of future taxable profits together with future tax planning strategies. Details on current taxes are disclosed in Note 21. Impairment of financial assets

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

Estimated impairment allowance on trade receivables is based on the aging of the receivable balances and historical experiences. Individual trade receivables are written off when management deems them not to be collectible.

5 EMpLOYEE BENEFiT Defined Benefit plans

The Company has defined benefits gratuity plan. Every employee who has completed five years or more of service gets gratuity on death or resignation or retirement at 15 days salary (last drawn salary) for each completed years of service. The Company’s Gratuity Fund is managed by Life Insurance Corporation of India.

The following tables summaries the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet.

6 coMMitMeNts AND CONTiNGENCiES

a. Leases

Finance lease - Company as lessee

The Company has taken land for its Bhavnagar factory on lease for 30 years and the said lease has been classified as finance lease. Upon expiry, the Company also has an option to renew the said lease for another period oRs. 30 years.

b. Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for:

At March 31, 2018, the Company had commitments of f Nil (March 31, 2017: Rs. 21.00 Lacs, April 1, 2016: f Nil).

c. Contingent liabilities

Note:

Some retrenched employees of the Company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. the Company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy. Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

Terms and conditions of transactions with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables.

$ This do not include the provisions made for gratuity as it is determined on an actuarial basis for the Company as a whole. Similarly, provision for leave encashment are not included in the above table as the same is also determined on an actuarial basis for the Company as a whole.

7 sEGMENT INFoRMATIoN:

A. Basis for segmentation

The Company’s senior management consisting of the chief executive, the chief financial officer and the directors, examines the company’s performance on the basis of single segment namely Castings Manufacturing business. Hence, the Company has only one operating segment under Ind AS 108 ‘Operating Segments’ i.e. Castings Manufacturing business.

B. Geographical information

The geographical information have been identified based on revenue within India (sales to customers with in India) and revenue outside India (sales to customers located outside India). The following table presents geographical information regarding the

C Major customer

Following is the details of customers which individually contribute more than 10% of Company’s revenue.

8 FAiR vALuES

The fair value of the financial assets and liabilities is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The management assessed that the carrying amounts of its financial instruments are reasonable approximations of fair values.

9 FiNANCiAL RiSk MANAGEMENT OBJECTivES AND pOLICIES

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, 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 loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds FVTOCI investments and enters into derivative transactions.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s financial risk activities are governed by appropriate policies and procedures and financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. The Company’s financial risk management policies are set by the Board of Directors. All derivative activities for risk management purposes are carried out by teams that have the appropriate skills, experience and supervision. It is the Company’s policy that no trading in derivatives for speculative purposes may be undertaken. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

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 mainly comprises interest rate risk and currency risk.

The sensitivity analysis in the following sections relate to the position as at March 31, 2018 and March 31, 2017

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant.

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2018 and March 31, 2017.

interest rate risk

The Company’s exposure to changes in interest rates relates primarily to the Company’s outstanding floating rate debt. All the borrowing of the Company are at floating rate of interest.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

The assumed movement in basis points for the interest rate sensitivity analysis is based on the currently observable market environment.

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency). To mitigate the foreign currency risk, the Company enters into foreign exchange forward contracts. These foreign exchange forward contracts, carried at fair value, may have varying maturities varying depending upon the primary host contract requirements and risk management strategy of the Company

The most significant foreign currencies the Company is exposed to is the USD, EURO and AUD. The following tables sets forth information relating to foreign currency forward contracts and unhedged foreign currency exposures at March 31, 2018, March 31, 2017 and April 1, 2016.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD, EURO and AUD exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of unhedged foreign currency monetary assets and liabilities. The Company’s exposure to foreign currency changes for all other currencies is not material.

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 (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and foreign exchange transactions.

The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets. The Company does not hold collateral as security.

I) Trade receivables

Customer credit risk is managed on the basis of the Company’s established policy, procedures and control relating to customer credit risk management. Trade receivables are non-interest bearing and are generally on 30 days to 145 days credit term. Credit limits are established for all customers based on internal rating criteria. Outstanding customer receivables are regularly monitored.

For trade receivables, expected credit loss (ECL) is provided as per simplified approach. The Company has applied the practical expedient as per Ind AS 109 ‘Financial Instruments’ to measure the loss allowance at lifetime ECL. The Company determines the ECL on trade receivables by using a provision matrix, estimated based on historical credit loss experience based on the past due status of the debtors, adjusted as appropriate to reflect current conditions and estimates of future economic conditions. Below table represents the reconciliation of provision made for expected credit loss for trade receivables:

II) Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s finance department in accordance with the Company’s policy. Investments of surplus funds are made only with approved counterparties who meets the minimum threshold requirements under the counterparty risk assessment process. Based on its on-going assessment of counterparty risk, the Company adjusts its exposure to various counterparties.

Liquidity risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligation on time or at a reasonable price. Processes and policies related to such risks are overseen by senior management. The Company regularly monitors the rolling forecasts and actual cashflows, to ensure it has sufficient funds to meet the operational needs.

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

10 CApITAL management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the parent. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions or its business requirements. 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. The Company includes within net debt, interest bearing borrowings (including current maturities), trade payables, less cash and cash equivalents and other bank balances.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current period.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2018 and March 31, 2017.

11 RESEARCH & DEvELopMENT ExpENDITuRE

The total amount of Research & Development Expenditure charged to profit and loss during the year is Rs. 219.05 Lacs (previous year: Rs. 152.13 Lacs).

12 details of expenditure incurred on corporate social responsibility (csr) activities:

Total CSR expenditure incurred during the year by way of donation to various trusts is Rs. 1.81 Lacs (previous year: f 0.77 Lacs).

13 FIRST-TIME ADOpTION OF IND AS

These financial statements, for the year ended March 31, 2018, are the first the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 and other accounting principles generally accepted in India (Indian GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company’s opening balance sheet was prepared as at April 1, 2016, the Company’s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 1, 2016 and the financial statements as at and for the year ended March 31, 2017 Exemptions applied Ind AS 101 “First-time adoption of Indian Accounting Standards” allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

- The Company has elected to continue with the carrying value for all of its property, plant and equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and used that as its deemed cost as at the date of transition.

- The Company has elected to continue the policy adopted for accounting for exchange differences arising from translation of long-term foreign currency monetary items recognised in the financial statements for the period ending immediately before the beginning of the first Ind AS financial reporting period as per the previous GAAP.

Estimates

The estimates at April 1, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the estimates for following where application of Indian GAAP did not require estimation.

i. Investment in equity instruments carried at FVTOCI

ii. Impairment of financial assets based on expected credit loss model

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 1, 2016, the date of transition to Ind AS and as of March 31, 2017

Reconciliation between previously reported Indian GAAp and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliation from erstwhile Indian GAAP to Ind AS.

Footnotes to the reconciliation of equity as at april 1, 2016 and march 31, 2017 and profit or loss for the year ended march 31, 2017

1. Fair valuation of derivatives not designated as hedge

Under Ind AS, all derivative contracts are measured at fair value through profit and loss at each reporting date. Under Indian GAAP, the premium or discount arising at the inception of forward exchange contracts (other than for firm commitments and highly probable forecast transactions) was amortised as expense or income over the life of the contracts.

Under Indian GAAP, the long-term investments were measured at cost less permanent diminution in value, if any. Ind AS requires all investments to be measured at fair value at the reporting date and all changes in the fair value subsequent to the transition date to be recognised either in the Statement of profit and loss or Other Comprehensive Income (based on the category in which they are classified).

2. impairment allowance on trade receivables

Under Ind AS, impairment allowance on trade receivables has been determined based on ECL model. This model considers the delay risk (i.e. delayed receipts of payments) and the default risk (i.e. non receipt of payments) for calculating the impairment loss on financial assets.

3. prior period items

Under Ind AS, prior period error identified during the any financial year is recorded by restating the comparative amounts of the prior period(s) presented in which the error was occurred or if the error occurred before the earliest period presented, by restating the opening Balance Sheet. Under Indian GAAP, prior period error was recorded in the financial year in which such error was discovered.

4. amortisation of processing charges

Under Ind AS, transaction costs attributable to the issue of a financial liability is reduced from the carrying amount of the financial liability. These costs are recognised in the profit or loss over the tenure of the financial liability as part of the interest expense by applying the effective interest method. Under Indian GAAP, these transaction costs were charged to profit or loss as and when incurred.

5. impact on the employee benefit expenses

Net liability towards defined benefit plan has been restated as per actuarial valuation in accordance with Ind AS 19 ‘Employee Benefits’

6. Remeasurement gains / (loss) on defined benefit plan

Under Ind AS, remeasurement i.e. actuarial gain loss and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the Indian GAAP, these remeasurements were forming part of the profit or loss for the year.

7. tax impacts on ind As adjustments

Tax adjustments include deferred tax impact on account of Ind AS adjustments done on transition to Ind AS.

8. other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the Statement of profit and loss as “other comprehensive income’ include fair value gain / loss on FVTOCI equity instruments and remeasurement of defined benefit plans. The concept of other comprehensive income did not exist under Indian GAAP

9. other adjustments

Other adjustments mainly includes adjustments due to the GAAP differences related to recognition and measurement of export incentives.

10. classification and presentation

The previous year Indian GAAP numbers have been reclassified/regrouped to make them comparable with Ind AS presentation.

11. statement of cash flows

The impact of transition from Indian GAAP to Ind AS on the statement of cash flows is due to various reclassification adjustments recorded under Ind AS in Balance Sheet and Statement of profit and loss.

14 STANDARDS ISSuED BuT NoT YET EFFECTivE

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s financial statements are disclosed below. The Company intends to adopt these standards, when they become effective.

The Ministry of Corporate Affairs (MCA) has issued the Companies (Indian Accounting Standards) Amendment Rules, 2017 and Companies (Indian Accounting Standards) Amendment Rules, 2018 amending the following standard:

ind AS 115 “Revenue from Contract with Customers”

Ind AS 115 “Revenue from Contract with Customers” was notified on March 28, 2018 and will come into force from accounting periods commencing on or after April 1, 2018. The standard establishes a five-step model to account for revenue arising from contract with customers. Under Ind AS 115 revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to the customers. The new revenue standard will supersede all current revenue recognition requirements under Ind AS. Ind AS 115 provides two transition options: (i) retrospectively to each prior reporting period presented in accordance with Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors, with the option to elect certain practical expedients as defined within Ind AS 115 (the full retrospective method); or (ii) retrospectively with the cumulative effect of initially applying Ind AS 115 recognised at the date of initial application (April 1, 2018) and providing certain additional disclosures as defined in Ind AS 115 (the modified retrospective method).

The Company has commenced its impact assessment, which involves carrying out a systematic review of all existing major contracts to ensure that the impact and effect of the new revenue standard is fully understood and changes to the current accounting procedures are highlighted and acted upon. The results of this assessment will drive the Company’s choice of transition option. Currently, it is expected that changes in total revenue to be recognised from a customer contract will be very limited. Based on the analysis performed, the Company expects that for the vast majority of contracts, revenue recognition would occur at a point in time when control of the asset is transferred to the customer, generally on delivery of the goods.

Some revenue contracts provide a right of return and / or cash discounts to customers. The new revenue standard requires such type of variable considerations to be constrained to prevent over-recognition of revenue. The Company continues to assess individual contracts to determine the estimated variable consideration and related constraint. The Company expects that application of the constraint may result in more revenue being deferred than under current Ind AS.

Further, the presentation and disclosure requirements in Ind AS 115 are more detailed than under current Ind AS. The presentation requirements represent a significant change from current practice and significantly increases the volume of disclosures required in the Company’s financial statements. Examples include information about nature of goods and services, significant payment terms, methods, inputs and assumptions related to transaction price and other quantitative and qualitative disclosures.

Appendix B to ind AS 21 Foreign Currency Transactions and Advance Consideration

The Appendix clarifies that, in determining the spot exchange rate to use on initial recognition of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset or non-monetary liability relating to advance consideration, the date of the transaction is the date on which an entity initially recognises the non-monetary asset or non-monetary liability arising from the advance consideration. If there are multiple payments or receipts in advance, then the entity must determine the transaction date for each payment or receipt of advance consideration.

Entities may apply the Appendix requirements on a fully retrospective basis. Alternatively, an entity may apply these requirements prospectively to all assets, expenses and income in its scope that are initially recognised on or after:

(i) The beginning of the reporting period in which the entity first applies the Appendix, or

(ii) The beginning of a prior reporting period presented as comparative information in the financial statements of the reporting period in which the entity first applies the Appendix.

The Appendix is effective for annual periods beginning on or after April 1, 2018. The Company will apply the amendment prospectively to all assets, expenses and income in its scope that are initially recognised on or after April 1, 2018. The effect of this amendment on the financial statements of the Company is being evaluated.

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Mar 31, 2017

1. No financial statements or other information are received during the year from a partnership firm, Steelcast LLC -USA. As informed to the Auditors by the Management, the firm is closed down and no transactions have been carried out during the year.

As a matter of prudence, the Company has made provision for impairment of '' 1,143,864 towards the investment in the said partnership firm and has also provided '' 5,884,886 for doubtful debts receivable from the said partnership firm.

2. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations.

3. As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS) - 17 “Segment Reporting” are not applicable.

4. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

5. Contingent Liabilities:

6. In respect of Central Sales Tax in respect of non collection of C forms: Rs.22,698,254 (Rs.10,922,470)

7. Some retrenched employees of the company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. The company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy. Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

8. Disputed Income Tax Liabilities Rs.592,729 (30,170).

9. In respect of land revenue charges: Rs.1,965,018 (2,129,906)

10. In respect of other matters: Rs.1,702,925 (1,522,925)

11. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) - 28. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

12. Extra-ordinary items Rs.9,633,525 relates to profit on sale of vacant land during the year.

13. Proposed Dividend:

The Board of Directors at its meeting held on May 22, 2017 has recommended a dividend of Rs.0.60 per equity share for the year ended March 31, 2017. The declaration and payment of dividend is subject to the approval of the shareholders in the Annual General Meeting.

Proposed Dividend: Rs.12,144,000 Corporate Dividend Tax: Rs.2,472,233

According to the revised AS 4 - ''Contingencies and events occurring after the balance sheet date'' as notified by the Ministry of Corporate Affairs through amendments to Companies (Accounting Standards) Amendment Rules, 2016, the Company has not accounted for proposed dividend (including tax) as a liability for the year ended March 31, 2017.

14. Related Party Disclosures:

15. Associates:

- Steelcast LLC - USA

- Rushil Industries

- Rushil Industries Limited

- Rushil Global Trade Limited

- Dynamic Ship Recyclers Private Limited

16. Key Management Personnel and their Relatives:

- Mr. T Kumar

- Mr. C M Tamboli

- Mr. M F Tamboli *

- Mrs. M C Tamboli

- Mr. R C Tamboli

- Ms. Neelam Ahuja

- Mr. S R Sharma

17. Figures in the brackets are the figures for the previous year, unless otherwise stated.

18. All the amounts are stated in Indian Rupees, unless otherwise stated.

19. Previous year''s figures are regrouped and rearranged, wherever necessary.

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Mar 31, 2016

a. Of the Total share capital 13,116,000 Equity shares were issued as fully paid up bonus shares

b. Equity shares issued as fully paid up bonus shares or otherwise than by cash during the preceding five years : 9,108,000

1 Rights, preferences and restrictions attached to shares

Equity Shares: The company has one class of equity shares having a face value of '' 5 each ranking pari passu in all respects including voting rights and entitlement to dividend.

Notes :

2. Term loans (in indian rupee accounts) are from Bank of India and HDFC Bank against first pari pasu charge on gross block of the fixed assets and second charge on current assets of the Company and further guaranteed by one of the directors.

3. Term loans (in foreign currency accounts) are from Standard Chartered Bank against first pari passu charge on gross block of fixed assets and second charge on current assets of the Company and further guaranteed by one of the directors.

4. Term loans from others are against hypothication of plant & equipment purchased from the interest free finance from one of the customer Caterpillar India Private Limited (Rs. 191,457,749) and against mortgage of a residential property.

5. Working capital finance (Indian rupees accounts) from Banks Bank of India, HDFC Bank and Standard Chartered Bank is against first pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed by one of the directors.

6. Working capital finance (foreign currency accounts) from Standard Chartered Bank and HDFC Bank is against pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed but one of the directors.

7 Company''s share of profit from a partnership firm, Steelcast LLC USA is accounted for from the unaudited financial statements received for the accounting year ended on 31st December, 2015.

8. During the financial year 2015-2016, the company has issued and allotted 2,024,000 equity shares of '' 5 each to non-promoter investors on preferential basis at a premium of '' 55 per equity shares. Accordingly, share capital of the Company has been increased to that extent.

9. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations.

10. As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS) - 17 “Segment Reporting” are not applicable.

11. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

12. Contingent Liabilities:

i. In respect of Central Sales Tax in respect of non collection of C forms: Rs. 10,922,470 (Rs. 10,370,998)

ii. Some retrenched employees of the company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. The company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy. Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

iii. Disputed Income Tax Liabilities Rs.30,170 (30,170).

iv. In respect of land revenue charges: Rs.2,129,906 (2,129,906)

v. In respect of other matters: Rs.1,778,916 (1,522,925)

13. Deferred tax liabilities of Rs.2,860,000 (Rs. 39,725,907) arising during the year, a major component of which is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is debited to the profit & loss account. Details of the balance of Rs.67,360,000 (Rs.64,500,000) are as under:

14. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) - 28 as prescribed under the Companies (Accounting Standards) Rules, 2006. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

15. Figures in the brackets are the figures for the previous year, unless otherwise stated.

16. All the amounts are stated in Indian Rupees, unless otherwise stated.

17. Previous year''s figures are regrouped and rearranged, wherever necessary.

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Mar 31, 2015

1.1 Rights, preferences and restrictions attached to shares

Equity Shares: The company has one class of equity shares having a face value of Rs. 5 each ranking pari passu in all respects including voting rights and entitlement to dividend.

Notes:

1. Term loans (in indian rupee accounts) are from Bank of India and HDFC Bank against first pari pasu charge on gross block of the fixed assets and second charge on current assets of the Company and further guaranteed by one of the directors.

2. Term loans (in foreign currency accounts) are from Standard Chartered Bank against first pari passu charge on gross block of fixed assets and second charge on current assets of the Company and further guaranteed by one of the directors.

3. Term loans from others are against hypothication of plant & equipment purchased from the said finance and against mortgage of a residential property.

1. Working capital finance (indian rupees accounts) from Banks Bank of India, HDFC Bank and Standard Chartered Bank is against first pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed by one of the directors.

2. Working capital finance (foreign currency accounts) from Standard Chartered Bank and HDFC Bank is against pari passu charge on inventory and book debts and second charge on gross block of fixed assets of the Company and further guaranteed bt one of the directors.

2. Company's share of loss from a joint venture overseas company, Steelcast LLC USA is accounted for from the unaudited financial statements received for the accounting year ended on 31st December, 2014.

3. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations.

4. As the company's business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS) - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

5. Depreciation for the year has been aligned to comply with requirement of Part C of Schedule II of the Companies Act, 2013. Consequently, depreciation for the year is lower by Rs. 92.29 lacs. Further, Rs. 66.23 lacs (net of deferred tax Rs. 34.10 lacs) in the respect of the fixed assets where the useful lives as specified in Schedule II is already expired, has been adjusted to the opening balances of the Retained Earnings.

6. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

7. Contingent Liabilities:

i. In respect of Central Sales Tax in respect of non collection of C forms: Rs. 10,370,998 (Rs. 27,212,171)

ii. Some retrenched employees of the company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. The company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

iii. Disputed Income Tax Liabilities Rs. 30,170 (1,054,000).

iv. In respect of land revenue charges: Rs. 2,129,906 (Nil)

v. In respect of other matters: Rs. 1,522,925 (Nil)

8. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) - 28 as prescribed under the Companies (Accounting Standards) Rules, 2006. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

9. Related Party Disclosures:

a. Associates:

- Steelcast LLC - USA

- Steelcast Education Trust

- F P Tamboli Charitable Trust

- Rushil Global Trade Limited

b. Key Management Personnel and their Relatives:

- Mr. T Kumar

- Mr. C M Tamboli

- Mr. M F Tamboli

- Mrs. M C Tamboli

- Mr. R C Tamboli

- Mr. V W Makary

10. Figures in the brackets are the figures for the previous year, unless otherwise stated.

11. All the amounts are stated in Indian Rupees, unless otherwise stated.

12. Previous year's figures are regrouped and rearranged, wherever necessary.

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Mar 31, 2013

1. During the financial year 2011-12, the Company had issued 594,000 convertible equity warrants ofRs. 10/- each to M/s. Rushil Industries Limited, a Body Corporate under the Promoters'' Group on preferential basis at a premium of Rs. 98 per warrant. Against the said warrants, 198,000 shares (face value of Rs. 10) were allotted during the financial year 2011-12 and 792,000 shares (adjusted to face value of Rs. 5 and bonus issue) were allotted during the financial year 2012-13. Accordingly, share capital of the Company has been increased to that extent.

2. Companies'' share of profit from a joint venture oversees company, Steelcast LLC USA is accounted for from the unaudited financial statements received for the accounting year ended i.e. 31 December, 2012.

3. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations.

4. As the company''s business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS) - 17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

5. The company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year-end together with interest paid/payable under this account have not been given.

6. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

7. Contingent Liabilities:

(i) In respect of Central Sales Tax in respect of non collection of C forms:Rs. 20,201,691 (13,197,369)

(ii) Some retrenched employees of the company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. The company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

8. Deferred tax liabilities of Rs.18,700,000 (40,000,000) arising during the year, a major component of which is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is debited to the profit & loss account. Details of the balance of Rs. 107,100,000 are as under:

9. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) - 28 as prescribed under the Companies (Accounting Standards) Rules, 2006. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

10. Related Party Disclosures:

a. Associates:

- Steelcast LLC - USA

- Steelcast Education Trust

- F P Tamboli Charitable Trust

b. (i) Key Management Personnel and Their Relatives:

- Mr. T Kumar

Mr. C M Tamboli

- Mr. M F Tamboli

- Mrs. M C Tamboli Mr. R C Tamboli

- Mr. V W Makary

11. Figures in the brackets are the figures for the previous year, unless otherwise stated.

12. All the amounts are stated in Indian Rupees, unless otherwise stated.

13. Previous year''s figures are regrouped and rearranged, wherever necessary.

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Mar 31, 2012

1. During the financial year 2011-12, the Company had issued 594,000 convertible equity warrants of Rs 10/- each to M/s. Rushil Industries Limited, a Body Corporate under the Promoters' Group on preferential basis at a premium of Rs 98 per warrant. Against the said warrants, 198,000 shares have been allotted during the current financial year 2011-12 and share capital of the Company has been increased to that extent.

2. Pursuant to the Companies (Accounting Standards) (Second Amendment) Rules, 2011, the Company has, w.e.f. 1st April 2011 exercised the option of deferring the charge to the profit & loss account arising on exchange rate differences in respect of long-tem monetary items. As a result of such exchange rate differences, so far as they relate to the acquisition of depreciable assets, have been adjusted to the cost of such assets and would be adjusted over the balance life of the assets. Accordingly, the Company has capitalized exchange rate difference gain of Rs 176,567 pertaining to the current financial year in respect of its foreign currency loans.

This change in accounting policy has resulted in the profit for the year as well as fixed assets as at the balance sheet date being lower by Rs 176,567.

3. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations.

4. As the company's business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS)-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

5. The company has not received information from vendors regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures relating to amounts unpaid as at the year-end together with interest paid/payable under this account have not been given.

6. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

7. Contingent Liabilities:

(i) In respect of Service tax: Rs 75,000 (75,000)

(ii) In respect of disputed stamp duty: Rs 24,551 (24,551)

(iii) In respect of Central Sales Tax in respect of non collection of C forms: Rs 13,197,369 (3,686,641).

(iv) Some retrenched employees of the company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. The company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

(v) In respect of disputed Value Added Tax Liabilities: Rs 605,580 (605,580).

8. Deferred tax liabilities of Rs 40,000,000 (8,500,000) arising during the year, a major component of which is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is debited to the profit & loss account. Details of the balance of Rs 88,400,000 are as

9. The management of the Company has, during the year, carried out technological evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) - 28 issued by the Institute of Chartered Accountants of India. Based on the judgment of the management and as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

10. Related Party Disclosures:

a. Associates:

- Steelcast LLC - USA

b. (i) Key Management Personnel and Their Relatives:

- Mr. T Kumar

- Mr. C M Tamboli

- Mr. M F Tamboli

- Mrs. M C Tamboli

- Mr. R C Tamboli

- Mr. V W Makary

11. Figures in the brackets are the figures for the previous year, unless otherwise stated.

12. All the amounts are stated in Indian Rupees, unless otherwise stated.

13. Previous year's figures are regrouped and rearranged, wherever necessary.

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Mar 31, 2010

1. During the year, the Company issued 360,000 convertible equity warrants of Rs. 10/- each to M/s. Tamboli Investments Private Limited, a Body Corporate under the Promoters Group on preferential basis at a premium of Rs. 56.50 per warrant. Against the said warrants, 180,000 shares have been allotted during the year and the share capital of the Company has increased to that extent. The amount received in respect of balance 180,000 convertible equity warrants is shown as Share Application Money.

2. Balances with sundry debtors, sundry creditors and for advances are subject to confirmations.

3. Interest on Term Loans and to banks as stated in Schedule-M is net of interest receipts from others Rs. 3,434,905(4,068,999).

4. As the companys business activity, in the opinion of the management, falls within a single primary segment subject to the same risks and returns, the disclosure requirements of Accounting Standard (AS)-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India are not applicable.

5. Based on the information available with the company, there are no overdue amounts outstanding as at the balance sheet date due to the vendors falling under the Micro, Small and Medium Enterprises Development Act, 2006.

6. In the opinion of the Directors, the current assets, loans and advances are approximately of the value as stated in the balance sheet, if realized in the ordinary course of the business. The provision of all known liabilities is adequate and not in excess of the amount reasonably required.

7. Advance payments of income tax are shown net of provisions of Rs. 71,494,941 including current years advance tax payments of Rs. 17,382,566 (107,025,260).

8. Contingent Liabilities

(i) Guarantees given by the bank and counter guaranteed by the company: Rs. 20,762,608, (11,891,529).

(ii) In respect of Service tax: Rs. 75,000 (75,000)

(iii) In respect of disputed stamp duty: Rs. 24,551(24,551)

(iv) Claims against the Company, not acknowledged as debt: Rs. 1,059,897 (893,263)

(v) In respect of Central Sales Tax in respect of non collection of C forms: Rs. 17,052,268(16,944,237).

(vi) Some retrenched employees of the company have preferred an appeal for their reinstatement, liability of which is unascertainable pending decision of the higher court. The company, however, does not expect any liability to arise on this account as the said retrenchment was lawfully made as per the order of the Dy Commissioner of Labour, Government of Gujarat and Gujarat Industrial Tribunal.

9. Deferred tax liabilities of Rs. 400,000 (476,216) arising during the year, a major component of which is due to timing difference related to depreciation charged in the accounts and as claimed under the Income Tax Act, is debited to the profit & loss account. Details of the balance of Rs. 39,900,000 are as under:

10. The management of the Company has, during the year, carried out technical evaluation for identification of impairment of assets, if any, in accordance with the Accounting Standard (AS) 28 issued by the Institute of Chartered Accountants of India. Based on thejudgmentofthemanagementand as certified by the Directors, no provision for impairment is found to be necessary in respect of any of the assets.

11. Related Party Disclosures:

a. Associates:

- Shri F P Tamboli Charitable Trust

- Janus Cyberserve Limited

b. (i) Key Management Personnel:

- Mr. T Kumar

- Mr. C M Tamboli

(ii) Relatives:

- Mr. M. F. Tamboli (related to Mr. C M Tamboli)

- Mrs. M. C. Tamboli (related to Mr. C M Tamboli)