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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Steel Strips Wheels Ltd.

Mar 31, 2025

credit loss experience with forward-looking information. At every reporting date, the historical observed default rates are
updated and changes in the forwardlooking estimates are analyzed.

The assessment of the correlation between historical observed default rates, forecast economic conditions and ECLs is
a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecast economic conditions.
The Companyâs historical credit loss experience and forecast of economic conditions may also not be representative of
customerâs actual default in the future. The information about the ECLs on the Companyâs trade receivables and contract
assets is disclosed in Notes.

i) Property, Plant and Equipment, investment properties and intangible assets

Property, Plant and Equipment, investment property, and intangible assets represent significant portion of the asset base
of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of assets expected
useful life and expected value at the end of its useful life. The useful life and residual value of Companyâs assets are
determined by Management at the time asset is acquired and reviewed periodically including at the end of each year. The
useful life is based on historical experience with similar assets in anticipation of future events, which may have impact on
their life such as change in technology.

j) Leases - Estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing
rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over
a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use
asset in a similar economic environment. The IBR therefore reflects what the Company âwould have to payâ, which requires
estimation when no observable rates are available (such as for subsidiaries that do not enter into financing transactions)
or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using
observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

k) Revenue from contracts with customers

The Company applies the judgements in respect to transactions relating to tooling development, Principal versus agent
consideration that significant financing component in a contract that significantly affect the determination of the amount
and timing of revenue from contracts with customers For more details, refer accounting policy on revenue from contract
with customers.

AUDITORSâ REPORT

Certified in terms of our separate report of even date annexed.

For AKR & Associates Sanjay Garg Dheeraj Garg

Chartered Accountants Virander Kumar Arya Managing Director

ICAI Firm Registration Number: 021179N Sukhvinder Khanna

Shashi Bhushan Gupta

p^{er Kai|ash Kumar} Sanjay Surajprakash Sahni ^{Mohan Joshi}

Partner Deva Bharathi Reddy Deputy Managing Director

Membership Number : 505972 Di_rect_ors

Manohar Lal Jain
Executive Director

Date: 15th May 2025 Kanika Sapra Naveen Sorot

Place: Chandigarh Company Secretary Chief Financial Officer

Mar 31, 2024

1) The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 3 on Property, plant and equipment and Note 5 on Other Intangible Assets to the financial statements, are held in the name of the Company.

2) Land for Oragadam plant in Chennai is obtained on 99 years of lease basis from State Industrial Promotion corporation of Tamilnadu Limited (SIPCOT), a Government of Tamilnadu enterprises. The total cost of Lease hold land is amortised over a period of 99 years. Accordingly a sum of Rs. 12.06 Lacs (Previous year Rs. 12.06 Lacs) is amortised during the period.

3) There is no change in the carrying value of Assets on the account of Revaluation of Assets.

4) Capital expenditure incurred on R & D Centre:

* During the previous year 2022-23, the Company had acquired 26% stake in Clean Max Astria Pvt Ltd for a total consideration of Rs. 396.01 Lakhs. Further, the Company has also entered in a Power Purchase Agreement (âPPA'') with Clean Max to procure 100% of the output of solar energy produced for next 25 years as per the rates negotiated in the PPA. Further, in the event of termination of the contracts or completion of the PPA term, the Company will receive fair market value of its investment on the date of termination/ completion of the project. As the Company has significant influence, the investment has been accounted as investment in associate as per Ind AS 28 - Investments in associates and joint ventures.

** During the year 2023-24, pursuant to the NCLT, Ahmedabad order dated 12.10.2023 under Insolvency and Bankruptcy Code, 2016, the company has infused Rs.138.15 Crores into AACL through a mix of equity of Rs.5.00 Crores and inter corporate loan of Rs.133.15 Crores for the acquisition of AACL. By subscribing 50 Lacs equity shares of Face Value of Rs.10/- each in AACL, it became wholly owned subsidiary company of SSWL, w.e.f. 09.01.2024.

1) The Company has entered into an agreement for purchase of land admeasuring 304 kanals approx at village Bir Farozari, Distt. Panchkula, at cost of Rs. 133.00 Lacs for setting up an auto component unit. The Land has not yet been registered in the name of Company . Pending the same , the advance of Rs. 35.00 Lacs paid by the Company has been shown as advances recoverable and being under legal suit, a provision for the same has been made.

2) There are no outstanding loans/advances in nature of loan to Promoters, Key Management Personnel, Director, and Related Party (other than mentioned in Note-14) of the Company.

b) Rights, Preferences and restrictions attached to shares

The Company has issued only one class of shares i.e. equity shares of face value Rs.1/- each. All equity shares rank pari passu and carry equal rights with respect to voting and dividend. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. Further, the company has not issued any preference shares until now.

1. During the financial year 2023-24, the Company has allotted 416125 equity shares of Face Value of Rs. 1/- each under âSteel Strips Wheels Ltd-Employee Stock Option Scheme 2021 (ESOS 2021)â. Consequently, paid up equity share capital of the Company has been increased from Rs.15,65,13,200/- to Rs.15,69,29,325/-. Therefore, the % of shareholding of certain promoters has slightly reduced as on 31.03.2024. In addition to this, the % change in the shareholding of Smt. Sunena Garg, Promoter of the Company is on account of disposal of equity shares in the open market as well as aforesaid increase in the paid up equity share capital of the company.

2. **Steel Strips Ltd(SSL),promoter group company, had amalgamated into SAB Industries Ltd. as per NCLT order dt. 06.10.2021. Thus, SSL does not exist as on date. However, as at March 31,2023, the name of SSL has been shown above because as per Company''s member register SSL is holding 3000 shares of FV Rs.1/- each (before sub division 600 shares of FV Rs. 5/- each) whereas SSL has sold these shares long back and the purchaser did not lodge the same in his own name. Further, during the FY 2023-24, these shares standing in the name of SSL have been transferred to Investor Education and Protection Fund(IEPF) since dividend on these shares was unpaid/unclaimed for 7 consecutive years. As a result, its name and shares have not been shown in the table above as on 31.03.2024.

3. Munak Financiers Pvt. Ltd have originally sold 400 equity shares(after sub-division 2022: 4000 equity shares) long back, but not yet lodged by the purchasers in public category with the Company. These shares are still standing in its name in physical form in company''s member register.

Nature and purpose of Reserves(i) Securities premium

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes in accordance with the provisions of the Companies Act, 2013.

(ii) Retained earnings

Retained earnings are the profits that the Company has earned/incurred till date, less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained earnings include re-measurement loss / (gain) on defined benefit plans, net of taxes that will not be reclassified to Statement of Profit and Loss.

(iii) Share Options Outstanding reserve

The share options-based payment reserve is used to recognise the grant date fair value of options issued to employees under Employee stock option plan.

(iv) General Reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(v) Capital revaluation reserve

Cumulative gains and losses arising on revaluation of Fixed assets measured at market value are recognised in capital revaluation reserve. The reserve balance represents such changes recognised net of amounts reclassified to retained earnings on disposal of such assets.

(vi) Equity instruments through other comprehensive income

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the Equity instrument through other comprehensive income reserve within retained earnings.

Notes:

I) 1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the company. During the year the company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the books of accounts.

2nd pari-passu charge is on entire Fixed Assets of the company other than exclusively charged.

II) The Company do not have any charges or satisfaction of charges which is yet to be registered with ROC beyond the statutory period.

III) The Company has not made any default in the repayment of loans to banks and other financial institutions including interest thereon.

IV) The term loans have been used for the purpose for which they were obtained and funds raised for a short term basis have not been used for long term purposes.

Foreign Currency Loan

Buyer credit/RA Financing/Suppliers Credit loans are secured by way of lien on Non-Funds based Working Capital Limits and counter indemnity of the company.

1) 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 except the interest bearing loan given to subsidiary company. The settlement for these balances occurs through payment. The Company has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended 31st March 2024 and 31st March 2023. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

2) Inter corporate Loan of Rs.133.15 crores given to wholly owned subsidiary âAACLâ (Refer Note 6**). Interest recoverable amounting to Rs.2.41 crores (Rs.2.17 crores net of TDS) on the said loan.

3) There are no outstanding loans/advances in nature of loan to Promoters, Key Management Personnel, Director, and Related Party (other than mentioned in Point 2 above) of the Company.

Note:- 43. Post Retirement Benefits Plans (Ind AS 19)Defined Benefit Plan

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. For the funded plan the Company makes contributions to recognised funds in India. The Company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

A) PRIMARY SEGMENT (BUSINESS SEGMENT)

A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. The Company''s Operation predominantly comprise of only one segment i.e Automotive Wheels. In view of the same, separate segmental information is not required to be given as per the requirements of IND AS 108 âOperating Segmentsâ

B) SECONDARY SEGMENT (GEOGRAPHICAL SEGMENT)

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments.

F) Nature of CSR activities undertaken by the Company:

The CSR initiatives of the Company aim towards inclusive development of the communities largely around the vicinity of its plants and corporate office and at the same time ensure environmental protection through a range of structured interventions in the areas of Promotion of education, providing special life skills to mentally challenged children, sanitation and cleanliness, healthcare facilities including preventive health care, rural development, ensuring environment sustainability and Green area development, agriculture development, promotion of nationally recognized sports and Olympic sports.

G) There is no unspent amount at the end of the year to be deposited in specified fund of Schedule VII under Section 135(5) of the Companies Act, 2013.

H) Since there were no ongoing projects of the company in the FY 2023-24, no amount is required to be transferred to a special account in compliance of Section 135(6) of Companies Act, 2013.

Notes:

* During the financial year 2022-23, an amount of Rs.101.83 lakhs was spent in excess towards the Company''s CSR obligation for the FY 2022-23 which was available for set-off with the Company''s CSR obligation for the FY 2023-24. Thus, the net CSR obligation of the Company for the FY 2023-24 was Rs. 316.09 lakhs.

** During the financial year 2021-22, an amount of Rs.6.19 lakhs was spent in excess towards the Company''s CSR obligation which was available for set-off with the Company CSR obligation for the FY 2022-23. Thus, the net CSR obligation of the Company for the FY 2022-23 was Rs. 250.60 lakhs.

Note: 46. Securities and Terms of repayments for Secured Long term borrowings

I) Nature of Securities

a) Rupee Term Loans/ Foreign currency term loan/ NBFC

Term Loans from banks, financial institutions and others are secured / to be secured by equitable mortgage created/ to be created by deposit of title deeds of the Company''s immovable properties for Dappar (In Punjab),Oragadam (In Chennai) & Seraikella (In Jharkhand) in addition to the deed of hypothecation charging Company''s moveable properties, both present and future and second charge created / to be created on raw materials, semi-finished goods, consumable stores, finished goods and book debts etc on paripassu basis. However in regard to term loan taken from Banks/Financial Institutions for Mehsana (Gujarat) project, the said loan will be secured (first charge) through equitable mortgage by deposit of title deeds of the Company''s immovable properties situated at Mehsana (in Gujarat) and Second pari passu charge on all other immovable properties, movable properties and current assets situated at Dappar (In Punjab), Oragadam (In Chennai) unit, & Seraikella (In Jharkhand).

Loan of Rs.100 crores taken from HDFC Bank for acquisition of AMW Autocomponent to be secured on exclusive charge on AACL assets along with corporate guarantee issued by AACL.

All secured loans are further secured by personal guarantee of Managing Director of the Company.

Note 47. Employee stock option plan

Share Reserved for Issue under Options outstanding as at the end of the year on unissued share capital

As on 1st April, 2023, the company had 2 (two) ongoing Employee Stock Options Schemes i.e Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (ESOS 2016) and Steel Strips Wheels Limited- Employee Stock Option Scheme, 2021 (ESOS 2021).

1. Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (ESOS 2016)

The Company has implemented an Employee Stock Option Scheme (ESOS) titled as âSteel Strips Wheels Limited-Employee Stock Option Scheme 2016â (âESOS 2016â or âthe Schemeâ) in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 which was approved by the Board of Directors and subsequently by shareholders of the Company in their 30th Annual General Meeting (AGM) held on 30.09.2016, authorizing the company to create, offer, issue and grant, in one or more tranches, upto 1,00,000 options to the employees of the company. As per the terms of the scheme, all the options granted on any date shall vest not earlier than 1 (one) year and not later than a maximum of 4(four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC). Further, the Exercise Price is Rs. 200/- per share and the Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective dates of grant of options. Pursuant

to the terms of the said Scheme, the Company had granted 87350 options from time to time to employees of the Company. Each option would entitle the holder thereof to subscribe one equity share of face value (FV) Rs. 10/- each at an exercise price of Rs. 200/- per equity share of the company. As decided by the ECC, the vesting period for the said 87350 options granted was one year from the respective dates of grant. Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective dates of grant of options.

Since the inception of the scheme, a total of 43750 options have been exercised by the option holders from time to time and consequently, equivalent number of equity shares have been allotted until the close of financial year 2021-22. Further, pursuant to the approval of the shareholders at their 35th Annual General Meeting of the Company held on 30.09.2021, each equity share of FV of Rs.10/- was subdivided into 2( two) equity shares of FV of Rs. 5/- each, with effect from the record date i.e. 22.11.2021. Accordingly, the number of all outstanding stock options (vested but not exercised and unvested stock options) i.e. 43600 options, the number of stock options available for future grant(s) and the exercise price thereof were proportionately adjusted. Thus, after this adjustment, the number of all outstanding stock options (vested but not exercised and unvested stock options) were increased from 43600 options to 87200 options convertible into equal number of equity shares of FV Rs. 5/- each at an exercise price of Rs. 100/- per share.

Later, during the financial year 2022-23, 83700 options each convertible into one equity share of FV Rs. 5/- each were exercised by the option holders and consequently, equivalent number of shares of FV Rs. 5/- each have been allotted on 10.06.2022. Further, pursuant to the approval of the shareholders at their 36th Annual General Meeting of the Company held on 30.09.2022, each equity share of FV of Rs. 5/-was sub-divided into 5(five) equity shares of FV of Rs. 1/- each, with effect from the record date i.e. 11.11.2022. Accordingly, the number of all outstanding stock options (vested but not exercised and unvested stock options) i.e. 3500 options, the number of stock options available for future grant(s) and the exercise price thereof was proportionately adjusted. Thus, after this adjustment, the number of all outstanding stock options (vested but not exercised and unvested stock options) were increased from 3500 options to 17500 options convertible into equal number of equity shares of FV Rs. 1/- each at an exercise price of Rs. 20/- per share.

Furthermore, during the financial year 2023-24, all the outstanding 17500 vested stock options granted under ESOS 2016 were forfeited by the ECC in its meeting held on 16.03.2024. These outstanding vested stock options were forfeited as the employees to whom these options were granted have left the company.

In addition to above, the ECC in its meeting held on 16.03.2024 have also approved the closure of the âSteel Strips Wheels Limited-Employees Stock Option Scheme, 2016â (ESOS 2016) w.e.f. 16.03.2024.

2. Steel Strips Wheels Limited- Employee Stock Option Scheme, 2021 (ESOS 2021)

The Company also has an another Employee Stock Option Scheme (ESOS) titled as âSteel Strips Wheels Limited - Employee Stock Option Scheme, 2021â (âESOS 2021â or âthe schemeâ) in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 which was approved by the Board of Directors and subsequently by shareholders of the Company in their Annual General Meeting (AGM) held on 30.09.2021, authorizing the company to create, offer, issue and grant, in one or more tranches, up to 10,00,000 options (adjusted figure post 1st sub-division as approved in the AGM held on 30.09.2021) to the employees of the company. As per the terms of the Scheme, all the options granted on any date shall vest not earlier than 1 (one) year and not later than a maximum of 4 (four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC) and each option would entitle the holder thereof to subscribe one equity share of face value (FV) Rs. 5/- each at an exercise price as may be determined by the ECC/ Board of Directors of the Company. Further, the exercise period would commence from the date of vesting and will expire on completion of 5 years from the date of grant of options.

Further, pursuant to the approval of the shareholders at their 36th Annual General Meeting of the Company held on 30.09.2022, each equity share of FV of Rs. 5/- was sub-divided into 5(five) equity shares of FV of Re. 1/- each, with effect from the record date i.e., 11.11.2022. Till the said record date, the company had not granted any stock options under ESOS 2021. Accordingly, the number of stock options available for future grant(s) have increased from 10,00,000 to 50,00,000 options convertible into equal number of equity shares of FV Rs. 1/- each at an exercise price as may be determined by the ECC/ Board of Directors of the Company.

Furthermore, on 17.11.2022, 5,00,000 options (Tranche 1) were granted to the employees of the Company. Each option would entitle the holder thereof to subscribe one equity share of FV Re. 1/- each at an exercise price of Rs. 20/- per share of the company. As per the terms of the Scheme, all the options granted on any date shall vest not earlier than 1(one) year and not later than a maximum of 4(four) years from the respective date of grant of options as may be determined by ECC. As decided by the ECC, the vesting period for the said 5,00,000 options granted is one year from the date of grant. Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective date of grant of options.

During the financial year 2023-24, 416125 options, each convertible into one equity share of FV Rs. 1/- each, were exercised by the option holders and consequently, equivalent number of equity shares of FV Rs. 1/- each were allotted by the Allotment Committee of the Board of

Directors in its meeting held on 12.12.2023 under the ESOS 2021. Additionally, the ECC in its meeting held on 16.03.2024 have forfeited 4750 options out of total outstanding stock options granted under Tranche 1 of ESOS 2021, as the employees to whom these options were granted have left the company.

Furthermore, the ECC in its meeting held on 16.03.2024 have granted 2,00,000 (Tranche 2) stock options to eligible employees of the Company in accordance with ESOS 2021. Each option shall entitle the holder to acquire one (1) equity share of face value Re. 1/- each of the Company at an exercise price of Rs. 20/- per equity share. The Options granted shall vest after completion of one(1) year from the date of grant i.e. on 16.03.2025 and exercise period would commence from date of vesting and will expire on completion of 5 years from the date of grant.

3. Impact of fair Valuation method on Net Profit under EPS

In March 2005, the Institutes of Chartered Accountants of India had issued a guidance note on âAccounting for Employees Share based paymentsâ applicable to Employee based share plan, the grant date in respect of which falls on or after April 1,2005. The said guidance notes requires the Pro-forma Disclosures of the impact of fair value method of accounting of Employee stock Compensation accounting in the financial statements. Applying the fair value based method defined in the said guidance note the impact on the reported net profit and earning per share would be as follows:

ESOS 2021 Method of valuation-Fair value method

The Company has calculated the employee compensation cost using the fair value method of accounting to account for the options granted under and âESOS 2021â therefore there will not be any impact on profits and EPS of the company.

4. Weighted Average fair value of options granted under ESOS 2016 during the year : NA (No additional options were granted during the year).

5. Weighted Average fair value of options granted under ESOS 2021 during the year : Rs. 222.23 per stock option (convertible into each equity share of Face Value Re. 1/-).

6. The fair Value of the Options, is estimated on the date of grant using the Black-Scholes Model with the following significant assumptions.

The volatility of the options is based on the historical volatility of the share price applicable to the total expected life of each option.

7. No Shares out of the issued, subscribed and paid up Share Capital were allotted as Bonus Shares in the last five years by capitalization of Securities Premium Reserves.

8. No Shares out of the issued , subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.

Note:- 48. Financial risk management objectives and policies

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

The Company is exposed to market risk, credit risk and liquidity risk. The company''s senior management oversees the management of these risks. The company''s senior management is supported by a Business Risk Management committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This Business Risk Management committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

Market risk a) Price Risk

Fluctuation in commodity price in global market affects directly and indirectly the price of raw material and components used by the Company in its products. The key raw material for the Company''s business is HR Steel & Aluminium Ingot. The Company has arrangements with its major customers for passing on the price impact. The Company is also regularly taking initiatives like VA VE ( value addition, value engineering ) to reduce its raw material costs to meet targets set up by its customers for cost downs.

b) Interest rate risk

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

Interest rate sensitivity

For the Purpose of computing interest rate sensitivity on the above borrowings, management has estimated a reasonably possible change in interest rate as 50bps based on current as well as expected economic conditions. This analysis is based on Long Term Risk exposures outstanding at the reporting date and assumes that all other variables, in particular foreign currency exchange rates, remains constant. The period and balances are not necessarily representative of the average amounts outstanding during the periods.

d) Credit risk

The Company has developed guidelines for the management of credit risk from trade receivables. The Company''s primary customers are major Indian automobile manufacturers (OEMs) with good credit ratings. Non-OEM clients are subjected to credit assessments as a precautionary measure, and the adherence of all clients to payment due dates is monitored on an on-going basis, thereby practically eliminating the risk of default. The Company has deposited liquid funds at various banking institutions. Primary banking institutions are major Indian and foreign banks. In long term credit ratings these banking institutions are considered to be investment grade. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due

e) Liquidity risk

The liquidity risk encompasses any risk that the Company cannot fully meet its financial obligations. To manage the liquidity risk, cash flow forecasting is performed in the operating divisions of the Company and aggregated by Company finance. The Company''s finance monitors rolling forecasts of the Company''s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom in its undrawn committed borrowing facilities / overdraft facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

Note:- 49 Capital Management a) Risk Management

The Company''s objectives when managing capital is to safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and maintain an optimal capital structure to reduce the cost of capital. Consistent with peers in the industry, the Company monitors Net Debt to EBITDA ratio i.e. Net Debt (Total Borrowings net of Cash and Cash Equivalents) divided by EBITDA (Profit before tax plus depreciation and amortization expense plus Finance costs).

The Company''s strategy is to ensure that the Net Debt to EBITDA is managed at an optimal level considering the above factors. The Net Debt to EBITDA ratios were as follows:

Notes:

I) Pursuant to section 115BAA of Income Tax Act, 1961, the Company has opted for lower tax rates beginning current financial year. Consequent to this, the Company has calculated tax for the current year and re-measured its deferred tax liability basis rates prescribed in section and credited consequential impact in deferred taxes for the current year amounting to Rs 25.19 Crores. Further the Company has MAT Credit entitlement of Rs 22.58 crores as on 31st March 2023 which have been booked as Tax expense in the current year.

II) Effective tax rate has been calculated on profit before tax.

NOTE 53 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE III OF COMPANIES ACT, 2013

I) The Company does not have any Benami Property where any proceedings have been initiated or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made there under.

II) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

III) The Company do not have any balance with the companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956.

IV) The Company has complied with the number of layers prescribed under the Companies Act, 2013.

V) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

VI) The Company has not advanced or loaned or invested funds to any other person or entity, 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 group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person or entity, 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 provision of the Income Tax Act, 1961).

(VIII) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(IX) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(X) The Company does not have any charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory period.

(XI) The borrowings obtained by the Company from banks and financial institutions have been applied for the purposes for which such loans were taken.

NOTE 54-Other

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and umentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by due date as required under the law. The management is of the opinion that its transactions with the associated enterprises are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

The accompanying notes form an integral part of these financial statements (1-54)

Mar 31, 2023

a) Rights, Preferences and restrictions attached to shares

The Company has issued only one class of shares i.e. equity shares of face value Re. 1/- per share (previous year Rs. 5/- per share). All equity shares rank pari passu and carry equal rights with respect to voting and dividend. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

Summary of significant Standalone accounting policies and other explanatory information for the year ended 31st March 2023

(All amounts ''in Lakhs, unless stated otherwise)

e) Pursuant to the approval of the shareholders at the 35th Annual General Meeting of the Company held on September 30, 2021, each equity share of face value of Rs. 10/- per share was sub-divided into 2 (two) equity shares of face value of Rs. 5/- per share, with effect from the record date i.e., November 22, 2021 and during the Financial Year 2022-23, the shareholders of the company at their 36^th Annual General Meeting of the Company held on September 30, 2022, had further approved the sub-division of each equity share of face value of Rs. 5/- into 5(five) equity shares of face value of Re. 1/- per share, with effect from the record date i.e., November 11,2022.

Notes:

1. During the FY 2022-23, the company had sub-divided its each equity share of face value of Rs. 5/- each into 5(five) equity shares of face value of Re. 1/- each, with effect from the record date i.e., 11.11.2022. Hence, the change in shareholding of promoters and promoter group in point 18(f) at the end of the financial year is mainly on account of sub-division. Further, the change in the shareholding of Sh. R K Garg, promoter of the Company, is on account of both i.e sub-division and purchase of shares from open market during the year.

2. During the financial year 2022-23, the Company has allotted 83700 equity shares under Employee Stock Option Scheme 2016 (ESOS2016), consequently paid up capital of the Company has been increased from Rs.15,60,94,700/- to Rs.15,65,13,200/-. Therefore % of shareholding of certain promoters slightly reduced as on 31.03.2023.

3. During the FY 2021-22, the company had sub-divided its each equity share of face value of Rs. 10/- per share into 2(two) equity shares of face value of Rs. 5/- per share, with effect from the record date i.e., 22.11.2021. Hence, the change in shareholding of promoters and promoter group in point 18(f) at the end of the financial year 2021-22 is solely on account of sub-division.

4. Steel Strips Ltd. (SSL) has been amalgamated into SAB Industries Ltd. Therefore SSL does not exist as on date. However the name of SSL has been shown above because as per Company''s member register SSL is holding 3000 shares of FV Re. 1/- (before sub division 600 shares of FV Rs. 5/-) whereas SSL has sold these shares long back and the purchaser did not lodge the same in his own name.

I) 1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the company.The Company has filed quarterly returns or statements with the banks in lieu of the sanctioned working capital facilities, which are in agreement with the books of accounts.

2nd pari-passu charge is on entire Fixed Assets of the company other than exclusively charged.

II) The Company do not have any charges or satisfaction of charges which is yet to be registered with ROC beyond the statutory period.

Foreign Currency Loan

Buyer credit/RA Financing/Suppliers Credit loans are secured by way of lien on Non-Funds based Working Capital Limits and counter indemnity of the company.

All secured loans are further secured by personal guarantee of Managing Director of the Company.

Note 43 Post Retirement Benefits Plans (Ind AS 19)Defined Benefit Plan

Note 44 SEGMENT REPORTINGA) PRIMARY SEGMENT (BUSINESS SEGMENT)

B) SECONDARY SEGMENT (GEOGRAPHICAL SEGMENT)

However, against the amount contributed by the Company, the Hans Raj Trust has actually spent Rs. 166.51 lakhs and Rs. 66.96 Lakhs, for the FY 2022-23 and 2021-22 respectively and the Company has considered the actual amount spent by HRT toward CSR activities.

D) Amount earmarked for ongoing project:

However, as on 01.04.2022, the Company had a balance of Rs.23.90 Lakhs lying in the Unspent CSR Account for the year 2020-21. The same was spent towards the respective ongoing projects during the year. Thus, as on 31.03.2023, no amount is pending to be spent towards the ongoing projects of the Company.

E) Nature of cSR activities undertaken by the company:

The CSR initiatives of the Company aim towards inclusive development of the communities largely around the vicinity of its plants and registered office and at the same time ensure environmental protection through a range of structured interventions in the areas of Promotion of education, construction of modern Angwanwadi centres, providing special life skills to mentally challenged children, sanitation and cleanliness, healthcare facilities including preventive health care, emergency medical support, rural development & slum development, ensuring environment sustainability, providing support for livelihood to underprivelege women, promotion of nationally recognized sports and Olympic sports.

* Further, during the financial year 2021-22, an amount of Rs.6.19 lakhs was spent in excess towards the Company''s CSR obligation which was available for set-off with the Company CSR obligation for the FY 2022-23. Thus, the net CSR obligation of the Company for the FY 2022-23 was Rs. 250.60 lakhs.

Note 46 Securities and Terms of repayments for Secured Long term borrowings 1) nature of securities

a) Rupee term Loans/ Foreign currency term loan/ NBFc

Term Loans from banks, financial institutions and others are secured / to be secured by equitable mortgage created/ to be created by deposit of title deeds of the Company''s immovable properties for Dappar (In Punjab), Oragadam (In Chennai) & Seraikella (In Jharkhand) in addition to the deed of hypothecation charging Company''s moveable properties, both present and future and second charge created / to be created on raw materials, semi-finished goods, consumable stores, finished goods and book debts etc on paripassu basis. However in regard to term loan taken from Banks/Financial Institutions for Mehsana (Gujrat) project, the said loan will be secured (first charge) through equitable mortgage by deposit of title deeds of the Company''s immovable properties situated at Mehsana (in Gujarat) and Second pari passu charge on all other immovable properties, movable properties and current assets situated at Dappar (In Punjab), Oragadam (In Chennai) unit & Seraikella (In Jharkhand).

All secured loans are further secured by personal guarantee of Managing Director of the Company.

note 47 Employee stock option plan

share Reserved for Issue under options outstanding as at the end of the year on unissued share capital

As on 1st April, 2022, the company had two ongoing employee Stock Options scheme i.e Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (ESOS 2016) and Steel Strips Wheels Limited- Employee Stock Option Scheme, 2021 (ESOS 2021).

1. steel strips Wheels Limited- employee stock option scheme, 2016 (Esos 2016)

The Company has established an Employee Stock Option Scheme (ESOS) as âSteel Strips Wheels Limited Employee Stock Option Scheme 2016â (âESOS 2016â) in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 which was approved by the Board of Directors and subsequently by shareholders of the Company in their Annual General meeting held on 30.09.2016, authorizing the company to create, offer, issue and grant, in one or more tranches, up to 1,00,000 options to the employees of the company. Pursuant to the terms of the said Scheme, the Company had granted 87350 options from time to time to employees of the Company. Each option would entitle the holder thereof to subscribe one equity share of Rs. 10/- each at an exercise price of Rs. 200/- per share of the company. As per the terms of the Scheme, all the options granted on any date shall vest not earlier than 1(one) year and not later than a maximum of 4(four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC). As decided by the ECC, the vesting period for the said 87350 options granted is one year from the respective date of grant. Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective date of grant of options.

Since the inception of the scheme, a total of 43750 options have been exercised by the option holders from time to time and consequently, equivalent number of shares have been allotted until the close of financial year 2021-22. Further, pursuant to the approval of the shareholders at the 35th Annual General Meeting of the Company held on 30.09.2021, each equity share of face value of Rs. 10/- per share was sub-divided into 2( two) equity shares of face value of Rs. 5/- per share, with effect from the record date i.e., 22.11.2021. Accordingly, the number of all outstanding stock options (vested but not exercised and unvested stock options), the number of stock options available for future grant(s) with effect from the record date i.e. 22.11.2021 and the exercise price thereof was proportionately adjusted.

Later, during the financial year 2022-23, 83700 options each convertible into one equity share of FV Rs. 5/- each, were exercised by the option holders and consequently, equivalent number of shares of FV Rs. 5/- each have been allotted on 10.06.2022. Further, pursuant to the approval of the shareholders at the 36th Annual General Meeting of the Company held on 30.09.2022, each equity share of face value of Rs. 5/- per share was sub-divided into 5(five) equity shares of face value of Re. 1/- per share, with effect from the record date i.e., 11.11.2022 Accordingly, the number of all outstanding stock options (vested but not exercised and unvested stock options), the number of stock options available for future grant(s) with effect from the record date i.e. 11.11.2022 and the exercise price thereof was proportionately adjusted.

2. Steel Strips Wheels Limited- Employee Stock Option Scheme, 2021 (ESOS 2021)

The Company also has an another Employee Stock Option Scheme (ESOS) titled as âSteel Strips Wheels Limited - Employee Stock Option Scheme, 2021â (âESOS 2021â) in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 which was approved by the Board of Directors and subsequently by shareholders of the Company in their Annual General Meeting held on 30.09.2021, authorizing the company to create, offer, issue and grant, in one or more tranches, up to 10,00,000 options (adjusted figure post sub-division) to the employees of the company. As per the terms of the Scheme, all the options granted on any date shall vest not earlier than 1 (one) year and not later than a maximum of 4 (four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC) and each option would entitle the holder thereof to subscribe one equity share of Rs. 5/- each at an exercise price as may be determined by the Employee Compensation Committee/ Board of Directors of the Company. No options were granted under ESOS 2021 until 31.03.2022.

Further, pursuant to the approval of the shareholders at the 36th Annual General Meeting of the Company held on 30.09.2022, each equity share of face value of Rs. 5/- per share was sub-divided into 5(five) equity shares of face value of Re. 1/- per share, with effect from the record date i.e., 11.11.2022. Accordingly, the number of all outstanding stock options (vested but not exercised and unvested stock options), the number of stock options available for future grant(s) with effect from the record date i.e. 11.11.2022 and the exercise price thereof was proportionately adjusted.

Furthermore, on 17.11.2022, 5,00,000 options were granted to the employees of the Company. Each option would entitle the holder thereof to subscribe one equity share of Re. 1/- each at an exercise price of Rs. 20/- per share of the company. As per the terms of the Scheme, all the options granted on any date shall vest not earlier than 1(one) year and not later than a maximum of 4(four) years from the respective date of grant of options as may be determined by ECC. As decided by the ECC, the vesting period for the said 5,00,000 options granted is one year from the date of grant. Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective date of grant of options.

3. Impact of fair Valuation method on Net Profit under EPS

ESOS 2016 & ESOS 2021 Method of valuation-Fair value method

The Company has calculated the employee compensation cost using the fair value method of accounting to account for the options granted under âESOS 2016â, therefore there will not be any impact on profits and EPS of the company.

4. Weighted Average fair value of options granted under ESOS 2016 during the year : NA (No additional options were granted during the year)

5. Weighted Average fair value of options granted under ESOS 2021 during the year : Rs. 143.74 per stock option (convertible into each equity share of Face Value Re. 1.00)

6. The fair Value of the Options, is estimated on the date of grant using the black- scholes model with the following significant assumptions.

The volatility of the options is based on the historical volatility of the share price applicable to the total expected life of each option.

7. No Shares out of the issued, subscribed and paid up Share Capital were allotted as Bonus Shares in the last five years by capitalization of Securities Premium Reserves.

8. No Shares out of the issued, subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.

Note 48 Financial risk management objectives and policies

Market risk

a) Price Risk

Fluctuation in commodity price in global market affects directly and indirectly the price of raw material and components used by the Company in its products. The key raw material for the Company''s business is HR Steel & Aluminium Ingot. The Company has arrangements with its major customers for passing on the price impact. The Company is also regularly taking initiatives like VA VE (value addition, value engineering) to reduce its raw material costs to meet targets set up by its customers for cost downs.

b) Interest rate risk

Interest rate sensitivity

d) Credit risk

e) Liquidity risk

Note 49 Capital Management a) Risk Management

Mar 31, 2018

1) INTANGIBLE ASSETS AND AMORTIZATION

Intangible assets are stated at original cost net of tax/duty credit availed, if any, less accumulated amortization and cumulative impairment. Intangible assets are recognized when it is probable that the future economic benefits are attributable to the asset will fow to the enterprise and the cost of asset can be measured reliably. Intangible assets are amortized over their estimated useful life. The estimated useful life of an identifiable intangible asset is based on number of factors including the effects of obsolescence etc.

Intangible Assets not ready for the intended use on the date of balance sheet are disclosed as "intangible assets under development.

2) BORROWINGS

Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw down occurs.

To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a prepayment for liquidity services and amortised over the period of the facility to which it relates. Borrowings are removed from the balance sheet when the obligation specified in the contract is discharged, cancelled or expired. The difference between the carrying amount of a initial liability that has been extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or liabilities assumed, is recognised in profit or loss as other income or finance costs.

Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least 12 months after the reporting period.

3) BORROWING COST

Borrowing costs that are directly attributable to acquisition, construction or production of a qualifying asset are capitalized/inventoried as part of cost of such assets till such time the asset is ready for its intended use/or sale. Qualifying asset is one that necessarily takes substantial period of time to get ready for its intended use.

All other borrowing costs are expensed in the period in which they are incurred.

4) PROVISION

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that the company will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash fows estimated to settle the present obligation, its carrying amount is the present value of those cash fows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

5) CONTINGENT LIABILITIES

Contingent liabilities are disclosed when there is a possible obligation arising from past events whose existence will be confirmed 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 part events where it is not probable that an outfow 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 recognised because it cannot be measured reliably.

6) EMPLOYEE BENEFITS Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the end of the period in which the employees render the related service are recognised in respect of employees'' services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Provident Fund & Employee State Insurance

Contribution towards provident fund and employee state insurance for employees is made to the regulatory authorities, where the Company has no further obligations. Such benefits are classified as Defined Contribution Schemes as the Company does not carry any further obligations, apart from the contributions made on a monthly basis.

Superannuation fund

The Company have a superannuation plan for the benefit of its employees. Employees who are members of the defined benefit superannuation plan are entitled to benefits depending on the years of service and salary drawn. The Company contributes up to 12% of the eligible employees'' salary or ''1,00,000, whichever is lower, every year. Such contributions are recognised as an expense as and when incurred. The Company does not have any further obligations beyond this contribution.

Gratuity

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. The gratuity plan in Company is funded through annual contributions to Life Insurance Corporation of India (LIC) under its Company''s Gratuity Scheme where as others are not funded. The liability or asset recognised in the balance sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. The present value of the defined benefit obligation is determined by discounting the estimated future cash outfows using interest rates of government bonds. Re-measurement gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. They are included in retained earnings in the statement of changes inequity and in the balance sheet. Past-service costs are recognised immediately in profit or loss.

Compensated Absences

Accumulated compensated absences, which are expected to be availed or encashed within 12 months from the end of the year end are treated as short term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end. Accumulated compensated absences, which are expected to be availed or encashed beyond 12 months from the end of the year end are treated as other long term employee benefits. The Company''s liability is actuarially determined (using the Projected Unit Credit method) at the end of each year. The present value of the defined benefit obligation is determined by discounting the estimated future cash outfows using interest rates of government bonds. Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in profit or loss in the period in which they arise. Past-service costs are recognised immediately in profit or loss.

7) SHARE-BASED PAYMENT ARRANGEMENTS

Equity-settled share-based payments to employees and others providing similar services are measured at the fair value of the equity instruments at the grant date. Details regarding the determination of the fair value of equity settled share-based transactions are set out in note

8. The fair value determined at the grant date of the equity-settled share-based payments is expensed on a straight line basis over the vesting period, based on the Company''s estimate of equity instruments that will eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Company revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the original estimates, if any, is recognised in the statement of profit and loss such that the cumulative expense refects the revised estimate, with a corresponding adjustment to the equity settled share option outstanding account. Equity-settled share-based payment transactions with parties other than employees are measured at the fair value of the goods or services received, except where that fair value cannot be estimated reliably, in which case they are measured at the fair value of the equity instruments granted, measured at the date the entity obtains the goods or the counter party renders the service. For cash-settled share-based payments, a liability is recognised for the goods or services acquired, measured initially at the fair value of the liability. At the end of each reporting period until the liability is settled, and at the date of settlement, the fair value of the liability is re-measured, with any changes in fair value recognised in profit or loss for the year.

9) TRANSACTIONS IN FOREIGN CURRENCY

A) Functional and Presentation currency

The functional currency of the Company is Indian Rupee. These financial statements are presented in Indian Rupee (rounded off to lakhs).

B) Transaction and balances

The foreign currency transactions are recorded, on initial recognition in the functional currency, by applying to the foreign currency amount the spot exchange rate between the functional currency and the foreign currency at the date of the transaction.

The foreign currency monetary items are translated using the closing rate at the end of each reporting period. Non-monetary items that are measured in terms of historical cost in a foreign currency shall be translated using the exchange rate at the date of the transaction. Exchange differences arising on the settlement of monetary items or on translating monetary items at rates different from those at which they were translated on initial recognition during the period or in previous financial statements shall be recognised in profit or loss in the period in which they arise.

Foreign exchange differences recorded as an adjustment to borrowing costs are presented in the statement of profit and loss, within finance cost. All other foreign exchange gains and losses are presented in the statement of profit and loss on net basis.

10) SEGMENT REPORTING

Operating segments are reported in a manner consistent with the internal reporting to the Chief Operating Decision Maker "CODM" of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segment. The Company has monthly review and forecasting procedure in place and CODM reviews the operations of the Company as a whole.

11) EARNING PER SHARE

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders (after deducting attributable taxes and dividend on cumulative preference shares for the year) by the weighted average number of equity shares outstanding during the year. Partly paid equity shares are treated as a fraction of an equity share to the extent that they were entitled to participate in dividends relative to a fully paid equity share during the reporting period. The weighted average number of equity shares outstanding during the period is adjusted for event of bonus issue/right issue etc; bonus element in a rights issue to existing shareholders; share split; and reverse share split (consolidation of shares).

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

12) OPERATING CYCLE

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

22) SIGNIFICANT ACCOUNTING JUDGMENTS, ESTIMATES AND ASSUMPTIONS

In the process of applying the Company''s accounting policies, management has made the following estimates, assumptions and judgments which have significant effect on the amounts recognized in the financial statement:

a) Contingencies

Judgment of the Management is required for estimating the possible outfow of resources, if any, in respect of contingencies/claim/litigations against the Company as it is not possible to predict the outcome of pending matters with accuracy.

b) Allowance For Uncollected Accounts Receivable And Advances

Trade receivables do not carry any interest and are stated at their normal value as reduced by appropriate allowances for estimated irrecoverable amounts. Individual trade receivables are written off when management deems them not collectible. Impairment is made on ECL, which are the present value of the cash shortfall over the expected life of the financial assets.

c) Defined Benefit Plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in future. These includes the determination of the discount rate, future salary increases, mortality rates and attrition rate. 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.

d) 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 Discounted Cash Flow (DCF) model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments 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.

Nature of Securities Loan payable on Demand

1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the company.2nd pari-passu charge on entire moveable assets forming part of fixed/block assets of the company both present and future situated at Village Dappar Tehsil Derabassi, Distt. Mohali (Punjab), Orgadam, Chennai (Tamil Nadu) and Jamshedpur (Jharkhand).

Foreign Currency Loan

Buyer credit loans are secured by way of lien on non-funds based working capital limits and counter indemnity of the Company.

All secured loans are further secured by personal guarantee of Chairman and Managing Director of the Company.

Note:- 41 Related party disclosure

1) Related Party Disclosure

a) Key Managerial Personnel Sh. Dheeraj Garg, (Managing Director)

Sh. A.V Unnikrishnan-(Deputy Managing Director)

Sh. M.L. Jain-(Executive Director)

Sh. Naveen Sorot ( CFO)

Sh. Shaman Jindal ( Company Secretary)

b) Relatives of the KMP Sh. R.K Garg, Chairman

Smt. Sunena Garg Ms. Priya Garg Mr. Rahul Jain

c) Enterprises over which key management personnel (KMP) are able to exercise significant control:-

SAB Industries Limited, SAB Udyog Limited, Malwa Chemtex Udyog Ltd., Steel Strips Financiers Pvt. Ltd., Munak International Pvt. Ltd., S.S. Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd(Earlier known as S.A. Holding Pvt. Ltd.) ., Malwa Holdings Pvt. Ltd., Munak Investment Pvt. Ltd., Steel Strips Holding Pvt. Ltd., Chandigarh Developers Pvt. Limited , DHG Marketing Pvt. Ltd , Steel Strips Infrastructre Limited, Munak financiers P Ltd, Steel Strips Ltd & Steel Strips Industries Limited (Earlier Known as Steel Strips Leasing Limited).

Defined Benefit Plan

During the year 2017-18, the Company has granted 26500 Employee Stock Options to the employees of the Company under "Steel Strips Wheels Limited-Employee Stock Option Scheme, 2016 ("ESOS 2016").Each option would entitle the holder thereof to subscribe one equity shares of Rs. 10/- each at an exercise price of Rs. 200/- per share of the Company.

13. Steel Strips Wheels Limited , Employee Stock Option Scheme 2014

The Company has established an Employee Stock Option Scheme (ESOS) as" Steel Strips Wheels Limited Employee Stock Option Scheme 2014(EsOs 2014)" in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 which was approved by the board of Directors and subsequently by shareholders of the Company in their Extra ordinary General meeting dated 27.02.2015. The Company had granted 1,50,000 options to employees. The exercise price was Rs. 100 per share. Date of grant was 02.03.2015 and vesting period was one year from the date of grant. Exercise period for the option was within 4 years from the date of grant of the options. However during the financial year 2015-16, 50,000 options were forfeited under this "ESOS 2014" and as on 31.03.2018, 87,575 options have been exercised by the option holders and consequently equivalent number of shares have been issued and 12,425 Employee Stock Option were outstanding under "ESOS 2014".

14. Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (ESOS 2016)

"During he year 2016-17, shareholders of the company, in their Annual General Meeting held on 30.09.2016, authorized the company to create, offer, issue and grant, in one or more tranches, up to 1,00,000 options to the employees of the company under âSeel Strips Wheels Limited-Employee Stock Option Scheme, 2016 ("ESOS 2016"). Each option would entitle the holder thereof to subscribe one equity share of Rs. 10/each at an exercise price of Rs. 200/- per share of the company. All the options granted on any date shall vest not earlier than 1 (one) year and not later than a maximum of 4 (four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC). Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective date of grant of options or such other shorter period as may be decided by the ECC from time to time. During the year 2017-18, the Company has granted 26,500 options on 16.05.2017 and 73500 options are yet to be granted as on 31.03.2018.

3 Impact of fair Valuation method on Net Profit under EPS

In March 2005, the Institutes of Chartered Accountants of India has issued a guidance note on " Accounting for Employees Share based payments" applicable to Employee based share plan, the grant date in respect of which falls on or after April 1 2005. The said guidance notes requires the Pro-forma Discloser of the impact of fair value method of accounting of Employee stock Compensation accounting in the financial statements. Applying the fair value based method defined in the said guidance note the impact on the reported net profit and earning per share would be as follows:

ESOS 2016 Method of valuation -Fair value method

The Company has calculated the employee compensation cost using the fair value method of accounting to account for the options granted under ESOS 2016, therefore their will not be any impact on profits and EPS of the company.

ESOS 2014 Method of valuation -Intrinsic value method

a) Difference between the employee compensation cost so computed and the employee compensation cost that shall have been recognized if it had used the fair value of the options.

There is no effect of the above for ESOS 2014.

b) Impact of this difference on profits and on EPS of the Company There is no effect of the above for ESOS 2014.

4. Weighted Average fair value of options granted under ESOS 2016 during the year is 729.87 (Previous year NIL) per option.

The volatility of the options is based on the historical volatility of the share price applicable to the total expected life of each option.

6. No Shares out of the issued , subscribed and paid up Share Capital were allotted as Bonus Shares in the last five years by capitalization of Securities Premium Reserves.

7. No Shares out of the issued , subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.

Note:- 48. Financial risk management objectives and policies

The Company is exposed to market risk, credit risk and liquidity risk. The company''s senior management ove rsees the management of these risks. The company''s senior management is supported by a Business Risk Management committee that advises on financial risks and the appropriate financial risk governance framework for the Company. This Business Risk Management committee provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

Market risk

a) Price Risk

Fluctuation in commodity price in global market affects directly and indirectly the price of raw material and components used by the Company in its products. The key raw material for the Company''s business is HR Steel. The Company has arrangements with its major customers for passing on the price impact. The Company is also regularly taking initiatives like VA VE ( value addition, value engineering ) to reduce its raw material costs to meet targets set up by its customers for cost downs.

b) Interest rate risk

Interest rate sensitivity

c) Foreign currency risks

The company tries to manage the foreign currency risk by attaining natural hedge. The company also does selective hedging to hedge its risk associated with foreign currency and to address the timing difference in foreign currency collections & payments.

d) Credit risk

The credit risk is the risk of financial loss to the Company if a customer or counter party to a financial instrument fails to meet its contractual obligations towards the Company and arises principally from the Company''s receivables from customers and deposits with banking institutions. The maximum amount of the credit exposure is equal to the carrying amounts of these receivables. The Company has developed guidelines for the management of credit risk from trade receivables. The Company''s primary customers are major Indian automobile manufacturers (OEMs) with good credit ratings. Non-OEM clients are subjected to credit assessments as a precautionary measure, and the adherence of all clients to payment due dates is monitored on an on-going basis, thereby practically eliminating the risk of default. The Company has deposited liquid funds at various banking institutions. Primary banking institutions are major Indian and foreign banks. In long term credit ratings these banking institutions are considered to be investment grade. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due.

Liquidity risk

The liquidity risk encompasses any risk that the Company cannot fully meet its financial obligations. To manage the liquidity risk, cash flow forecasting is performed in the operating divisions of the Company and aggregated by Company finance. The Company''s finance monitors rolling forecasts of the Company''s liquidity requirements to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed borrowing facilities / overdraft facilities at all times so that the Company does not breach borrowing limits or covenants (where applicable) on any of its borrowing facilities.

b) Loan covenants

Under the terms of the major borrowing facilities, the Company is required to comply with certain financial covenants and the Company has complied with those covenants throughout the reporting period.

Note:- 50 First Time Adoption as per Ind AS

These a re the Company''s first financial statements prepared in accordance with Ind A S.

These financial statements, for the year ended 31 March 2018, are the first financial statements, the Company has prepared in accordance with Ind AS. For periods up to and including the year ended 31 March 2016, 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 (Indian GAAP). Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on 31 March 2018, together with the comparative period data as at and for the year ended 31 March 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 1 April 2016, the Company''s date of transition to Ind AS. An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and exceptions availed

Set out below are the applicable I nd AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to I nd AS.

A. Ind AS Optional exemptions availed.

Deemed Cost

Under Ind AS paragraph D7 AA of Ind AS 101 permits a first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and for Investment properties covered by Ind AS 40 Investment Properties.

Accordingly, the Company has elected to measure all of its properties, plant and equipment, Investment property and intangible assets at their previous GAAP carrying values.

B. Ind AS Mandatory exceptions Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1st April, 2016 and 31st March, 2017 are consistent with the estimates as at the same date made in the conformity with previous GAAP . The Company made estimates for the following in accordance with Ind AS at the date of transition as these were not required under previous GAAP.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

1) Reconciliation of Balance sheet as at 1st April, 2016 (refer note 51)

2) (a) Reconciliation of Balance sheet as at 31st March, 2017 (refer note 51)

(b) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017 (refer note 52)

3) Reconciliation of Equity as at 1st April, 2016 and as at 31st March, 2017(refer note 53)

4) Reconciliation of Income statement as at 31st March, 2017(refer note 54)

Note:- 15 Effect of Ind AS adoption on the balance sheet as at 01 April, 2016 and 31 March, 2017

The presentation requirements under Previous GAAP differs from Ind AS, and hence, Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.

Mar 31, 2017

1.1 The Company has issued only one class of shares i.e. equity shares of Rs. 10/- per share. All equity shares rank pari passu and carry equal rights with respect to voting and dividend. The dividend proposed by the board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in pro portion to the number of equity shares held by the shareholders.

1.2 The details of Shareholders holding more than 5% shares.

1.3 Share Reserved for Issue under Options outstanding as at the end of the year on unissued share capital

As on 31st March 2017, 35175 (Previous Year 100,000), Employee Stock Options were outstanding under the âSteel Strips wheels Limited Employee Stock Option Scheme 2014â of the Company. Each option would entitle the holder thereof to subscribe one equity share of Rs. 10/- each at an exercise price of Rs. 100/- per share of the company.

During the year 2016-17, Shareholders of the Company , in their Annual General Meeting held on 30.09.2016, authorized the Company to create, offer, issue and grant, in one or more tranches, upto 1,00,000 options to the employees of the Company under âSteel Strips Wheels Limited-Employee Stock Option Scheme,2016 (âESOS 2016â).Each option would entitle the holder thereof to subscribe one equity shares of Rs. 10/- each at an exercise price of Rs. 200/- per share of the Company. The said options are yet to be granted till 31st march 2017.

Steel Strips Wheels Limited , Employee Stock Option Scheme 2014

The Company has established an Employee Stock Option Scheme (ESOS) asâ Steel Strips Wheels Limited Employee Stock Option Scheme 2014(ESOS 2014)â in accordance withthe Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 which was approved by the board of Directors and subsequently by shareholders of the Company in their Extra ordinary General meeting dated 27.02.2015. The Company had granted 1,50,000 options to employees. The exercise price was Rs.100 per share. Date of grant was 02.03.2015 and vesting period was one year from the date of grant.

Exercise period for the option was within 4 years from the date of grant of the options. However during the financial year 2015-16, 50,000 options were forfeited under this âESOS 2014â and 64825 options have been exercised by the option holders and consequently equivalent number of shares have been issued in 2016-17. As on 31st March 2017, 35,175 Employee Stock Option were outstanding under âESOS 2014â.

Steel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (ESOS 2016)

During the year 2016-17, shareholders of the company, in their Annual General Meeting held on 30.09.2016, authorized the company to create, offer, issue and grant, in one or more tranches, up to 1,00,000 options to the employees of the company under âSteel Strips Wheels Limited- Employee Stock Option Scheme, 2016 (âESOS 2016â). Each option would entitle the holder thereof to subscribe one equity share of Rs. 10/- each at an exercise price of Rs. 200/- per share of the company. All the options granted on any date shall vest not earlier than 1 (one) year and not later than a maximum of 4 (four) years from the respective date of grant of options as may be determined by Employee Compensation Committee (ECC). Exercise period would commence from the date of vesting and will expire on completion of 5 years from the respective date of grant of options or such other shorter period as may be decided by the ECC from time to time The said options are not yet granted till 31st March, 2017.

1. Impact of Fair Valuation Method on Net Profit under EPS

In March 2005, the Institute of Chartered Accountants of India has issued a guidance note on â Accounting for Employees Share based paymentsâ applicable to Employee based share plan, the grant date in respect of which falls on or after April 1, 2005. The said guidance notes requires the Pro-forma Disclosers of the impact of fair value method of accounting of Employee Stock Compensation accounting in the financial statements. Applying the fair value based method defined in the said guidance note the impact on the reported net profit and earning per share would be as follows:

2 Weighted Average fair value of options granted during the year is NIL. (Previous year NIL) per option.

3 The fair Value of the Options, is estimated on the date of grant using the black- scholes model with the following significant assumptions

1.5 No Shares out of the issued , subscribed and paid up Share Capital were allotted as Bonus Shares in the last five years by capitalization of Securities Premium Reserves

1.6 No Shares out of the issued , subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.

Securities and Terms of Repayments for Secured Long Term Borrowings

1) Nature of Securities

a) Rupee Term Loans/ Foreign Currency Term Loan/ NBFC

Term Loans from banks, financial institutions and others are secured / to be secured by equitable mortgage created/ to be created by deposit of title deeds of the Companyâs immovable properties for Dappar( In Punjab),Oragadam( In Chennai) & Seraikella(In Jharkhand) in addition to the deed of hypothecation charging Companyâs moveable properties, both present and future and second charge created / to be created on raw materials, semi-finished goods, consumable stores, finished goods and book debts etc on paripassu basis. However in regard to loan taken from HDFC Bank for Mehsana (Gujarat) project, the said loan will be secured (first charge) through equitable mortgage by deposit of title deeds of the Companyâs immovable properties situated at Mehsana (in Gujarat) and Second pari passu charge on all other immovable properties , movable properties and current assets situated at Dappar( In Punjab),Oragadam( In Chennai) unit, & Seraikella (In Jharkhand).

All secured loans are further secured by personal guarantee of Chairman & Director and/ or Managing Director of the Company.

b) Vehicle loans are secured against the Hypothecation of vehicle to lender

2) Terms of Repayments

Maturity Profile of Secured Term Loans are as below :

In compliance with AS 22 on Accounting for the Taxes on Income, a sum of r1 111.66 lacs (previous Year r 1424.83 lacs) has been considered as Net deferred tax liabilities in respect of timing difference for the year under consideration.

Deferred tax Assets will likely to be recovered from future taxable income.

During the year Company has made a provision for accrued liability on account of Gratuity and leave encashment on the basis of actuarial valuation based on projected unit method as required by AS 15 (Revised 2005).

Nature of Securities Loan payable on Demand

1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the Company. 2nd pari-passu charge on entire moveable assets forming part of fixed/block assets of the Company both present and future situated at Village Dappar, Tehsil Derabassi, Distt. Mohali (Punjab), Orgadam, Chennai (Tamil Nadu) and Jamshedpur (Jharkhand)

Foreign Currency Loan

Buyer credit loans are secured by way of lien on non-funds based working capital limits and counter indemnity of the Company. All secured loans are further secured by personal guarantee of Chairman and Managing Director of the Company.

Note 2(1)

- Land for Oragadam plant in Chennai is obtained on 99 years of lease basis from State Industrial Promotion corporation of Tamilnadu Limited(SIPCOT), a Government of Tamilnadu enterprises. The total cost of Lease hold land is amortised over a period of 99 years.

Accordingly a sum of Rs. 12.06 Lacs ( Previous year Rs. 12.09 Lacs) is amortised during the period.

Note 2 (2)

Preoperative Expenses/ Interest pending capitalization consist of expenses incurred /being incurred during implementation of project under installation of new fixed Assets. These will be capitalized with other fixed assets when project /fixed assets shall commence commercial production. Interest on term Loan of Rs. 1119.95 Lacs (Previous year 33.69 Lacs) has been captalised during the year.

Note 2 (3)

No Assets of the Company is given on lease hold basis to outsiders.

Note 2 (4)

Addition in assets during the year also includes the reinstatement of Foreign currency term Loans.

Note 5 (5)

Addition in Intangible Assets mainly represents installation of SAP software in the Company & Others softwares.

Note 5 (6)

(i) Pursuant to applicability of Schedule II, of Companies Act 2013, with effect from 1st April 2014, Management has reassessed the useful life of tangible assets based on the internal and external technical evaluation. The Depreciation on fixed assets is provided on straight line method in accordance with applicable Schedule of the Companies Act, 2013.

(ii) Residual values of assets have been considered at 5% of the original cost of the assets.

iii) Depreciation on assets carried at carrying amount as on 01.04.2014 and is depreciated as per Straight line method over the remaining useful life of the assets. Further the assets whose remaining useful life are nil, has been recognized in the opening balance of retained earnings. Refer the same as transitional provision of the Companies Act.

(iv) The depreciation calculation is based on the balance useful lives of assets and shift working. Depreciation on assets used on double shift basis have been increase by 50% for that period and Depreciation on assets used in triple shift basis have been calculated on the basis of 100% for that period, Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C of the schedule).

v) Management has reassessed the useful life of plant and machineries based on the internal and external technical evaluation which is different from useful life prescribed under the act. The reassessed useful life is tabulated as:

The Income Tax Assessment of the Company has been completed upto the Assessment year 2014-15 .There is no demand on Company. Therefore no provision has been made by the Company.

The Company has entered into an agreement for purchase of land admeasuring 304 kanals approx at village Bir Farozari, Distt. Panchkula, at cost of Rs.133.00 Lacs for setting up an auto component unit. The Land has not yet been registered in the name of Company . Pending the same , the advance of Rs. 35.00 Lacs paid by the Company has been shown as advances recoverable and being under legal suit, a provision for the same has been made.

150000 No. of options exercisable into equivalent nos of equity shares of the face value of Rs 10 /- per share was granted under ESOS Scheme in FY 2014-15. The date of grant was 02.03.2015. Out of these options, 50000 options have been forfeited during FY 2015-16. Accordingly proportionate shares expenses have been booked for the period as Expenses.

The Company has a defined benefit gratuity and Earned Leave plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service and accumulation of EL for Staff is upto 60days and for Workers is 90 Days.

The Employeeâs gratuity fund scheme managed by a Trust (Life insurance corporation of India) is defined benefit plan. The Present Value of obligation is determined based on acturial valuation using the projected unit credit method which recognises each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

Net employee benefit expenses (recognised in Employee Cost).

The following tables summarize the components of net benefit expense recognised in the Profit and Loss Account and the amounts recognised in the balance sheet.

Note:

The retirement age has been uniformly taken as 60 years( PY 60years).

The discount rates have been determined by reference to market yields as on 31st march 2016 on CG-Secs of currency and term consistent with those of liability obligations.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Level of price neutralization likely to be affected through periodic wages increase over the next 5 to 10 years.

NOTE 3(7)

SEGMENT REPORTING

A) PRIMARY SEGMENT (BUSINESS SEGMENT)

A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. The Companyâs Operation predominantly comprise of only one segment i.e Automotive Wheels. In view of the same, separate segmental information is not required to be given as per the requirements of Accounting Standard 17.

B) SECONDARY SEGMENT (GEOGRAPHICAL SEGMENT)

NOTE 4 (1) & (2). Significant Accounting Policies

1) CORPORATE INFORMATION

Steel Strips Wheels Limited (the Company) is a public limited Company registered in India under the Companies Act 2013 (Erstwhile Companies Act 1956). Its Shares are listed on both BSE Limited and National Stock Exchange of India Limited. The Company is a leading manufacturer of Automotive Wheel rims.

2) BASIS OF PREPARATION

The financial statements have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) and mandatory Accounting Standards of Companies Act, 2013 as amended from time to time. Further, the guidance notes/announcements issued by the Institute of Chartered Accountants of India (ICAI) are also considered wherever applicable except to the extent where compliance with other statutory promulgations overrides the same requiring a different treatment. The financial statements have been prepared under the historical cost convention on accrual basis.

The accounting policies have been consistently applied by the Company and except for the changes in accounting policy discussed more fully below, are consistent with those used in the previous year.

Mar 31, 2016

The previous year figures have been regrouped / reclassified wherever necessary to confirm the current year presentation.

1. The Company has issued only one class of shares i.e. equity shares of Rs. 10/- per share. All equity shares rank pari passu and carry equal rights with respect to voting and dividend. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company , after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. The details of Shareholders holding more than 5% shares.

3. a) Share Reserved for Issue under Options outstanding as at the end of the year on unissued share capital

As on 31st March 2016, 1, 00,000 (Previous Year 1, 50,000), Employee Stock Options were outstanding under the Steel Strips Wheels Limited Employee Stock Option Scheme 2014 of the Company. Each option would entitle the holder thereof to subscribe to one equity share of r10/- each at an exercise price of r 100/- per share of the Company,

b) Steel Strips Wheels Limited, Employee Stock Option Scheme 2014

The Company has established an Employee Stock Option Scheme (ESOS) as" Steel Strips Wheels Limited Employee Stock Option Scheme 2014 ("ESOS 2014") in accordance with the Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 which was approved by the Board of Directors and shareholders. The Company had granted 1, 50,000 options to employees. The exercise price was r 100 per share. Date of grant was 02.03.2015 and vesting period was one year. Exercise period for the option was within 4 years from the date of grant of the options. However during the financial year 2015-16, 50,000 options have been forfeited under this ESOS Scheme 2014.

4) The Number and Weighted average exercise price of Stock Options are as follows:

5. Impact of Fair Valuation Method on Net Profit under EPS

In March 2005, the Institute of Chartered Accountants of India has issued a guidance note on " Accounting for Employees Share based payments" applicable to Employee based share plan, the grant date in respect of which falls on or after April 1, 2005. The said guidance notes require the Pro-forma Disclosers of the impact of fair value method of accounting of Employee Stock Compensation accounting in the financial statements. Applying the fair value based method defined in the said guidance note the impact on the reported net profit and earning per share would be as follows:

6 Weighted Average fair value of options granted during the year is : N. A. (Previous year r 252.36) per option.

7 The fair Value of the Options, is estimated on the date of grant using the black- scholes model with the following significant assumptions

8 No Shares out of the issued, subscribed and paid up Share Capital were allotted as Bonus Shares in the last five years by capitalization of Securities Premium Reserves

9 No Shares out of the issued, subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.

Securities and Terms of Repayments for Secured Long Term Borrowings

10) Nature of Securities

a) Rupee Term Loans/ Foreign Currency Term Loan/ NBFC

Term Loans from banks, financial institutions and others are secured / to be secured by equitable mortgage created/ to be created by deposit of title deeds of the Company''s immovable properties for Dappar( In Punjab),Oragadam( In Chennai) & Seraikella(In Jharkhand) in addition to the deed of hypothecation charging Company''s moveable properties, both present and future and second charge created / to be created on raw materials, semi-finished goods, consumable stores, finished goods and book debts etc on paripassu basis. However in regard to loan taken from HDFC Bank for Mehsana (Gujarat) project, the said loan will be secured (first charge) through equitable mortgage by deposit of title deeds of the Company''s immovable properties situated at Mehsana (in Gujarat) and Second pari passu charge on all other immovable properties, movable properties and current assets situated at Dappar( In Punjab),Oragadam( In Chennai) unit, & Seraikella(In Jharkhand).

All secured loans are further secured by personal guarantee of Chairman & Director and/ or Managing Director of the Company.

Nature of Securities Loan payable on Demand

"1st pari passu charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean outstanding monies, receivables both present and future of the Company.2nd pari-passu charge on entire moveable assets forming part of fixed/block assets of the Company both present and future situated at Village Dappar Tehsil Derabassi, Distt. Mohali (Punjab), Orgadam, Chennai (Tamil Nadu) and Jamshedpur (Jharkhand)"

Foreign Currency Loan

Note 11(1)

-Land for Oragadam plant in Chennai is obtained on 99 years of lease basis from State Industrial Promotion Corporation of Tamilnadu Limited(SIPCOT), a Government of Tamilnadu enterprises. The total cost of Lease hold land is amortized over a period of 99 years. Accordingly a sum of Rs. 12.09 Lacs ( Previous year Rs. 12.19 Lacs) is amortized during the period.

-Addition in Land includes procurement of lands in Seraikella (in Jharkhand) as well as in Mehsana( in Gujarat) for its new upcoming projects of Hot Rolling mills & Alloy wheels. Projects are under implementation stage.

Note 12 (2)

Preoperative Expenses/ Interest pending capitalization consist of expenses incurred /being incurred during implementation of project under installation of new fixed assets. These will be capitalized with other fixed assets when project /fixed assets shall commence commercial production. Interest on term Loan of r 33.69 Lacs (Previous year 68.69 Lacs) has been capitalized during the year.

Note 13 (3)

No Assets of the Company is given on lease hold basis to outsiders.

Note 14 (4)

Addition in assets during the year also includes the reinstatement of Foreign Currency Term Loans.

Note 15 (5)

Addition in Intangible Assets mainly represents installation of SAP software in the Company & others softwares.

Note 16 (6)

(i) Pursuant to applicability of Schedule II, of Companies Act, 2013, with effect from 1st April 2014, Management has reassessed the useful life of tangible assets based on the internal and external technical evaluation. The Depreciation on fixed assets is provided on straight line method in accordance with applicable Schedule of the Companies Act, 2013.

(ii) Residual values of assets have been considered at 5% of the original cost of the assets.

(iv) The depreciation calculation is based on the balance useful lives of assets and shift working. Depreciation on assets used on double shift basis have been increase by 50% for that period and Depreciation on assets used in triple shift basis have be calculated on the basis of 100% for that period, Except for assets in respect of which no extra shift depreciation is permitted (indicated by NESD in Part C of the schedule).

The Income Tax Assessment of the Company has been completed up to the Assessment year 2013-14 .There is no demand on Company. Therefore no provision has been made by the Company.

The Company has entered into an agreement for purchase of land admeasuring 304 kanals approx at village Bir Farozari, Distt. Panchkula, at cost of Rs. 133.00 Lacs for setting up and auto component unit. The Land has not yet been registered in the name of Company . Pending the same , the advance of Rs. 35.00 Lacs paid by the Company has been shown as advances recoverable and being under legal suit, a provision for the same has been made.

NOTE 17

1) Related Party Disclosure

a) Key Managerial Personnel Sh. Dheeraj Garg,(Managing Director)

Sh. A.V Unnikrishnan-(Deputy Managing Director)

Sh. M.L. Jain-(Executive Director)

Sh. Naveen Sorot ( CFO)

Sh. Shaman Jindal ( Company Secretary)

b) Relatives of the KMP Sh. R.K Garg, Chairman

Smt. Sunena Garg

Ms. Priya Garg

Mr. Rahul Jain

c) Enterprises over which key management personnel SAB Industries Limited, SAB Udyog Limited,, Malwa Chemtex Udyog (KMP) are able to exercise significant control Ltd., Steel Strips Financial Pvt. Ltd., Munak International Pvt. Ltd.

S.S. Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd (Earlier known as S.A.,

Holding Pvt. Ltd.) ., Malwa Holdings Pvt. Ltd., Munak Investments

Pvt. Ltd., Steel Strips Holding Pvt. Ltd. Chandigarh Developer Pvt. Ltd.

DHG Marketing Pvt. Ltd & Hans Raj Trust, Steel Strips Infrastructures

Limited, Munak Financiers P Ltd, Steel Strips Ltd , Steel Strips Ltd.

Industries Limited ( Earlier Known as Steel Strips Leasing Limited)

NOTE 18 (6)

SEGMENT REPORTING

A) PRIMARY SEGMENT (BUSINESS SEGMENT)

B) SECONDARY SEGMENT (GEOGRAPHICAL SEGMENT)

"The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments. "

Mar 31, 2015

1. The Company has issued only one class of shares i.e. equity shares of Rs. 10/- per share. All equity shares rank pari passu and carry equal rights with respect to voting and dividend. The dividend proposed by the board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting,except in the case of interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company , after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. a)Share Reserved for Issue under Options outstanding as at the end of the Year on unissued share capital Ason31st March 2015, 1,50,000, Employee Stock Options were Outstanding under the Steel Strips wheels Limited Employee Stock Option Scheme 2014of the Company. Each option Wooden title the holder there of to subscribe to one equity share of Rs. 10/-each tan exercise price of Rs. 100/- per share of the company.

51000 options, outstanding as on 31st march 2014 under the Deputy Managing Director employee stock option 2013,have been fully exercised on 02.01.2015 and accordingly 51000 equity sharesofRs.10/- each as fully paid-up have been allotted at an exercisepriceofRs.10per share.(Date of grant was 01.01.2014 and vesting period was1year).

(b) Steel Strips wheels Limited ,employee Stock OptionScheme2014

The Company has established an employee Stock Option scheme (ESOS)in accordance with the Securities and Exchange Board of India(Share Based Employee Benefits)Regulations, 2014 which has been approved by the Board of Directors and Shareholders. All Options under ESOS are Exercisable for Equity shares. The Company has granted 1,50,000 options to employees. Each option is exercisable for one equity shares of Rs. 10/- each fully paid up on a payment of exercise price. The exercise price is Rs. 100 per share. Date of grant is 02.03.2015 and vesting period is one year. Exercise period for the option is within 4yearsfromthe date of grant of the options.

The volatility of the options is based on the historical volatility of the share price applicable to the total expected life of each option.

3. No Shares out of the issued , subscribed and paid up Share Capital were alamedas Bonus Shares in the last five years by capitalization of Securities Premium Reserves.

4. No Shares out of the issued , subscribed and paid up Share Capital were allotted in the last five years pursuant to the various scheme of amalgamation without payment being received in cash.

Securities and Terms of repayments for Secured Long-term borrowings 1) Nature of Securities

a) Rupee Term Loans/Foreign currency loan/Term loans from NBFC

Term Loans from banks, financial institutions and others are secured / to be secured by equitable mortgage created/ to be created by deposit of title deeds of the Company's immovable properties for Dappar and Or Agawam units in addition to the deed of hypothecation charging Company's moveable properties, both present and future and Second charge created /to be created on raw materials, semi-finished goods, consumable stores, finished goods and book debts etc. All secured loans are further secured by personal guarantee of Chairman Director and/or Managing Director of the Company.

During the Year Company has made a provision for accrued liability on account of Gratuity and leave encashment on the basis of actuarial valuation based on projected unit method as required by AS 15 (Revised 2005).

Nature of Securities

Loan payable on Demand

1st pair passÃ© charge by way of hypothecation of entire current asset constituted of raw materials, stock in process, finished goods, consumable stores, book debts, bills whether documentary or clean out standing monies, receivables both present and future of the company.

2nd pair- pass charge on entire moveable assets forming part of fixed/block assets of the company both present and future situated at Village Dappar Tensile Database, Distt. Mohali(Punjab),Orgadam, Chennai (TamilNadu)and Jamshedpur(Jharkhand).

Foreign Currency Loan

Buyer credit loans are secured by way of linen non-funds based working capital limits and counter indemnity the Company. All secured loans are further Secured by personal guarantee of Chairman and Managing Director of the Company.

- Land for Oragadam plantinChennaiisobtainedon99years of lease basis from State Industrial Promotion corporation of Tamilnadu Limited(SIPCOT),a Government of Tamilnadu enterprises. The total cost of Lease hold land is amortized over a period of 99 years. Accordingly a sum of Rs. 12.19 Lacs ( Previous year Rs.12.19 Lacs is amortised during the period).

Preoperative Expenses/Interest pending capitalization consist of expenses incurred /being incurred during implementation of project under installation of new fixed Assets. These will be capitalized with other fixed assets when project/ fixed assets shall commencecommecial production. Interest onterm Loan of Rs.68.69 Lacs (Previous year 78.59 Lacs) has been capitalized during the year.

No Assets of the Company is given on leasehold basis to outsiders.

Addition in assets during the year also includes there instatement of Foreign currency term Loans.

Note 5.

Intangible Assets under Development represents installation of SAP Software in the Company.

Note 6.

(i) Pursuant to applicability of Schedule II, of Companies Act 2013, with effect from 1st April 2014, Management has reassessed the useful life of tangible assets based on the internal and external technical evaluation. The Depreciation on fixed assets is provided on straight line method in accordance with applicable Schedule of the CompaniesAct,2013.

(ii Residual value so assets have been considered at 5% of the Original cost of the assets.

iii) Depreciation on assets carried At carrying amount as on 01.04.2014 and is depreciated as per Straight line method over the remaining useful life of The assets. Further the assets whose remaining useful life are nil, has been recognized in the opening balance of retained earnings. Refer the same as transitional provision of the Companies Act.

(iv) The depreciation calculation is based on the balance useful lives of Assets and shift working. Depreciation on assets used on double shift Basis have been increase by 50% for that period and Depreciation on assets used in triple shift basis have been calculate don the basis of100% for that period, Except for assets in respect of which no extra shift depreciation is permitted (indicated by Neasden Part C of the schedule).

v) Management has reassessed the useful life of plant and machineries based on the internal and external technical evaluation which is different from use full life prescribed under the act.The reassessed use ful lifeis tabulatedas:

As per the provision of Section 115JAA, MAT Credit receivable has-been recognized as an asset tithe extent there is convincing evidence that the Company will pay normal Income tax during the specified period. MAT credit is recognized as an assets in accordance with the recommendation contained in guidance note issued by Institute of Chartered Accountants of India. The said assets is created by the way of credit to the Profit and Loss account and shown as MAT credit Entitlement. The Company will Review the same at each balance sheet date and write down the carrying amount of MAT credit Entitlement to the extent there is no longer convincing evidence to the effect that the company will pay normal Income Tax during the specified period.

In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount considered reasonably necessary.

150000 No. of options exercisable into equivalent nose of equity shares of the face value of Rs 10 /- per share have been granted under ESOS Scheme.

The date of grants 02.03.2015 and proportionate shares expenses have been booked for the period as Expenses.Further out standing Options of 51000 shares, which were granted under "DMD ESOS 2013"have been fully exercised during the financial year 2014-15 &proportionate expenses have been accounted for the period as expenses.

The Company has a defined benefit gratuity and Earned Leave plan. Every employee who has completed five years or more of service gets gratuity on departure at15 days salary (last drawn salary) for each completed year of service. And accumulation of EL for Staffisupto60days and for Workers is 90 Days.

The Employee's gratuity fund scheme managed by a Trust (Life Insurance corporation of India is defined benefit plan. The Present Value of obligation is determined based on actuarial valuation using the projected unit credit method which recognize search period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Net employee benefit expenses(recognized in Employee Cost).

The Following table summarizes components of net benefit expenses recognized in the profit and loss account and amount recognized in the balance sheet.

Note: 7

The retirement age has been uniformly taken as 60 years( PY58years).

The discount rates have been determined by reference to market yields as On 31st march 2015 on CG-Secs of currency and term consistent with those of liability obligations.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Level of price neutralization likely to be affected through periodic wages increase over thenext5 to 10 years.

Pursuant to SEBI (Share based employee benefits) Regulation, 2014 the Board of Directors of the Company had approved to issue up to 150,000 Options exercisable into equivalent nos. of Equity Shares of the face value of Rs. 10/- each at Rs 100/- each Date of grant is02.03.2015. For Diluted EPS, the effect of this 150,000Option have been considered.

NOTE 8

A) Related Party Disclosure

a) Key Managerial Personnel Sh. Dheeraj Garg, (Managing Director)

Sh. Andra Veetil Unnikrishnan-(Deputy Managing Director)

Sh. Naveen Sorot ( CFO)

Sh. Shaman Jindal ( Company Secretary)

Sh. Rajender Kumar Garg, Chairman

b) Relatives of the KMP

Smt. Sunena Garg Ms. Priya Garg

SAB Industries Limited, SAB Udyog Limited, Malwa Chemtex

c) Enterprises over which key management

personnel (KMP) are able to exercise Udyog Ltd., Steel Strips Financial Pvt. Ltd., Munak International

significant control

Pvt. Ltd., S.S. Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd., Malwa

Holdings Pvt. Ltd., Munak Investment Pvt. Ltd., Steel Strips Holdings Pvt. Limited, Chandigarh Developers Pvt. Limited, DHG Marketing Pvt. Ltd & Hans Raj Trust.

NOTE 9.

SEGMENT REPORTING

A)PRIMARY SEGMENT(BUSINESS SEGMENT)

A business segment is a distinguishable component of an enterprise that is engaged in providing an individual product or service or a group of related products or services and that is subject to risks and returns that are different from those of other business segments. The Company's Operation predominately comprise of only one segment i.e Automotive Wheels. In view of the same, separate segmental information is not Required to be given as per the requirements of Accounting Standard 17.

Mar 31, 2014

Note 1(1)

- Land for Oragadam plant in Chennai is obtained on 99 years of lease basis from State Industrial Promotion corporation of Tamilnadu Limited (SIPCOT), a Governmentof Tamilnadu enterprises. The total cost of Lease hold land is amortised over a period of 99years. Accordingly a sum of Rs. 12.19 Lacs (Previous year Rs.12.19Lacs) is amortised during the period.

Note 1(2)

Preoperative Expenses/ Interest pending capitalizationconsist of expenses incurred/being incurred during implementation of project under installation of new fixedAssets. These will be capitalized with other fixed assets when project /fixed assets shall commence commercial production. Interest on term Loan of Rs. 78.59 Lacs (Previous year 191.52 Lacs) has been captalised during the year.

Note 1(3)

No Assets of the Company is given on lease hold basis to out siders.

Note 1(4)

Addition in assets during the year also includes there in statement of Foreign Currency Term Loans.

Note 1(5)

Intangible Assets under Development represents installation of SAP software in the Company.

Note 1(6)

Straight Line Method of Depreciation on Plant and Machineries is provided as under:

- In case of Oragadam ( Tamilnadu) unit on double shift basis exceptmachineries of Phase IInd, which is on single shift basis.

- Incase of Dappar (Punjab) unit on tripple shift basis.

- Incaseof Jamshedpur( Jharkhand)unit on Double Shiftbasis exceptutility plant and paint plantwhichis on single shift basis.

Note 1(7)

Depriciation ofassetsCosting Rs.5000 or Lessis provided 100%on proratabasis fordaysput in use.

The Income Tax Assessment of the Company has been completed upto the Assessment year 2006-07. There is no demand on company. Therefore no provision has been made by the company.

The Company has entered intoanagreement for purchaseof land admeasuring 304 kanals approxatvillage Bir Farozari, Distt. Panchkula, at costof Rs. 133.00 Lacs for settingupa auto component unit. The land has not yet been registeredinthe name of Company .Pending the same,the advance ofRs.35.00 Lacspaid bythe Companyhas beenshown asadvances recoverable and being under legal suit, a provisionforthe same has been made. The lower court has passed decree in favour of company and now the appeal have been filedinHigh Court byboth the parties.

Note :

a) Key Managerial Personnel :

Sh R.K Garg, Chairman & Sh. Dheeraj Garg, Managing Director, Ms. Ute Mayr, WholeTime Director, Sh. A.V. Unnikrishnan, Deputy Managing Director.

b) Enterprises over which key management personnel (KMP) are able to exercise significant control with which transactions have taken place duringtheyear.

SAB Industries Limited, SAB Udyog Limited, Malwa Chemtex Udyog Ltd., Steel Strips Financial Pvt. Ltd., Munak International Pvt. Ltd., S.S. Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd., Malwa Holdings Pvt. Ltd., Munak Investment Pvt. Ltd., Steel Strips Holding Pvt. Ltd. & Chandigarh Developer Pvt. Limited, DHG Marketing Pvt. Ltd. & Hans Raj Trust.

c) Relatives of the KMP with whom transactions have taken place :Smt. Sunena Garg and Ms. Priya Garg.

NOTE 2

CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF : Rs. in Lacs

PARTICULARS AS AT March31,2014 AS AT March 31, 2013

A. Letter of Credit/ Bank of Guarantee Outstanding for Import/ 2,565.22 885.12 Purchase of Raw Materials, Spares and Plant and Machinery

B. Estimated amount of Contracts remaining to be executed 1,953.87 1,325.25 on account of Capital account and not provided for (net of advances)

Mar 31, 2013

Note 1(1)

- Land for Oragadam plant is obtained on 99 years of lease basis from State Industrial Promotion corporation of Tamilnadu Limited(SIPCOT), a Government of Tamilnadu enterprises. The total cost of Lease hold land is mortised overa period of99 years. Accordingly a sum of Rs. 12.19 Lacs( Previous year Rs. 12.19 Lacs) is amortized during the period.

Note 1 (2)

Preoperative Expenses/ Interest pending capitalization consist of expenses incurred /being incurred during implementation of project under installation of new fixed Assets. These will be capitalized with other fixed assets when project /fixed assets shall commence commercial production. Interest on term Loan of Rs. 191.52 Lacs (Previous year 295.97 Lacs) has been capitalized during the year.

Note 1 (3)

No Company is given on lease hold basis to outsiders.

Note 1 (4)

Addition in assets during the year also includes the reinstatement of Foreign Currency Term Loans.

Note 1 (5)

Intangible Assets under Development represents installation of SAP software in the Company.

Note 1 (6)

Straight Line Method of Depreciation on Plant and Machineries is provided as under:

- In case of Oragadam (Tamilnadu) uniton double shift basis except machineries of Phase llnd, which is on single shift basis.

- In case of Dappar ( Punjab) unit on tripple shift basis.

- In case of Jamshedpur (Jharkhand) uniton Double Shift basis except utility plant and paint plant which is on single shift basis.

The Income Tax Assessment of the Company has been completed up to the Assessment year 2009-10. The Income tax Demand of Rs. 23.09 Lac has been raised on the Company for the Assessment Year 2010-11 under Summary Assessment. The company had filed an appeal before CIT (A) as well as a rectification application against the aforesaid demand which is pending to be disposed. Therefore no provision has been made by the company.

The Company has entered into an agreement for purchase of land admeasuring 304 kanals approx at village Bir Farozari, Distt. Panchkula, at cost of Rs. 133.00 Lacs for setting up and auto component unit. The land has not yet been registered in the name of Company . Pending the same , the advance of Rs. 35.00 Lacs paid by the Company has been shown as advances recoverable and being under legal suit, a provision for the same has been made. The lower court has given decree in favour of company and now the appeal have been filed in High Court.

As per the provision of Section 115JAA, MAT Credit receivable has been recognized as an asset to the extent there is convincing evidence that the Company will pay normal Income tax during the specified period. MAT credit is recognized as an assets in accordance with the recommendation contained in guidance note issued by Institute of Chartered Accountants of India. The said assets is created by the way of credit to the Profit and Loss account and shown as MAT credit Entitlement. The Company will review the same at each balance sheet date and write down the carrying amount of MAT credit Entitlement to the extent there is no longer convincing evidence to the effect that the company will pay normal Income Tax during the specified period.

In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount considered reasonably necessary.

The Company has a defined benefit gratuity and Earned Leave plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. And accumulation of EL for Staff is up to 60days andforWorkersis90Days

The following tables summarize the components of net benefit expense recognized in the Profit and Loss Account and the amounts recognized in the balance sheet.

The Employee''s gratuity fund scheme managed bya Trust (Life insurance corporation of India) is defined benefit plan. The Present Value of obligation is determined based on actuarial valuation using the projected unit credit method which recognizes each period of service as giving rise to additional unit of employee benefits entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

Note : The estimates of future salary increases, considered in actuarial valuation take account of inflation, seniority promotion and other relevant factors such as supply and demand in the employment market. The discount rates have been determined by reference to market yields as on 31st March 2013onCG Secs of currency and terms consistent with those of liability obligations.

Note:

a) Key Managerial Personnel: Sh R.K Garg, Chairman & Sh. Dheeraj Garg, Managing Director, Ms. Ute Mayr, Whole Time Director, Sh. A.V. Unnikrishnan, Deputy Managing Director.

b) Enterprises over which key management personnel (KMP) are able to exercise significant control with which transactions have taken place during the year.

SAB Industries Limited, SAB Udyog Limited, Malwa Chemtex Udyog Ltd., Steel Strips Financial Pvt. Ltd., Munak International Pvt. Ltd., S.S. Credits Pvt. Ltd., S.J. Mercantile Pvt. Ltd., Malwa Holdings Pvt. Ltd., Munak Investment Pvt. Ltd., Steel Strips Holding Pvt. Ltd. & Chandigarh Developer Pvt. Limited .

c) Relatives of the KMP with whom transactions have taken place: Smt. SunenaGarg and Ms. PriyaGarg.

Mar 31, 2012

NOTE 1

CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF :

Rs. in Lacs

March 31,2012 March 31,2011

A. Letter of Credit Outstanding for Import/Purchase of 2,532.61 1,444.78 Raw Materials, Spares and Plant and Machinery

B. Estimated amount of Contracts remaining to be executed 1,708.16 4,582.68 on account of Capital account and not provided for (net of advances)

Mar 31, 2011

CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF:

(Rupees in Lacs)

31.03.2011 31.03.2010 b) Estimated amount of 4,582.68 5,108.39 executed oZ3 account and not provided for (net or advances)

2. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary.

3. Depreciation on plant and machineries is provided as under

a. In case of Oragadam (Tamil Nadu) unit on double shift basis as the unit functioned on double shift.

b. In case of Dappar unit on triple shift basis as the unit functioned on triple shift.

c. In case of Jamshedpur (Jharkhand) unit on single shift basis as the unitfunctioned on single shift.

4. Debit and Credit Balances in the accounts of suppliers and others are subject to confirmation and reconciliation.

5. The Income Tax assessment of the Company has been completed upto Assmt Year 2008-09. The Income Tax demand of Rs.99.56 lakhs for the Assmt. Year 2008-09, out of which Rs.25.00 Lacs has been deposited and Rs.74.56 Lacs is pending, the same has been stayed by Chief Commissioner of Income Tax. The appeal of the Company is pending before Commissioner of Income Tax (Appeals), Chandigarh. In the opinion of the Company the demand is likely to be deleted in view of the decision of various appellate authorities and interpretation of other relevant provisions of the Income Tax Act, 1961. Accordingly, no provision has been made.

6. The Company had been granted exemption from Sales Tax under the Punjab Industrial Policies, 1989 and 1996 for its Dappar unit. The said exemption is available upto March, 2012 orsuch period when amount of exemption is fully utilized, whichever is earlier. From 01.06.2010 part of VAT liability is being set off under exemption and part is being paid as per applicable rules and regulations of the Punjab VAT Act, 2005. In respect of Chennai & Jamshedpur unit all sales tax liabilities are being paid as per applicable rules and provisions. Any liability on account of Sales Tax, if arises, shall be accounted for at the time of assessment.

7. Sundry Creditors include a sum of Rs. 367.45 Lakhs (Previous year 209.27 lakhs) due to Micro and Small Scale Undertakings. This information is required to be disclosed under the Micro, Small and Medium Enterprises development Act 2006, as determined to the extent the parties have been identified on the basis of information with the company.

8. During the year the Company has made a provision for accrued liability on account of Gratuity and leave encashment on the basis actuarial valuation based on projected unit method as required by AS 15 (Revised 2005) - Employee Benefits issued by The Institute of Chartered Accountant of India, New Delhi.

9. In compliance with AS 22 issued by ICAI on Accounting for the Taxes on Income, a sum of Rs. 541.50 lakhs (Previous Year Rs. 51.70 lakhs) has been considered as deferred tax liability in respect of timing difference for the year under consideration and the same has been charged to profit & loss account.

10. The company had entered into an agreement for purchase of land admeasuring 304 kanals approx at village Bir Farozari, Distt. Panchkula, at a cost of Rs. 133.00 lacs for setting up an auto component unit. The land has not yet been registered in the name of the company. Pending the same, the advance of Rs. 35.00 lacs paid by the company has been shown as 'Advances Recoverable' in the Schedule of 'Loans & Advances' and being Under Legal suit, a provision for the same has been made.

11. Related Party Disclosures

Detail of transactions entered into with related parties during the year as required by Accounting Standard 18 on "Related Party Disclosures" issued by the Institute of Chartered Accountants of India are as under:-

12. As per the provision of Section 115JAA, MAT Credit receivable has been recognized as an asset to the extent there is convincing evidence that the Company will pay normal Income Tax during the specified period. MAT credit is recognized as an asset in accordance with the recommendation contained in guidance note issued by the Institute of Chartered Accountants of India. The said assets is created by the way of credit to the Profit and Loss Account and shown as MAT Credit Entitlement. The company will review the same at each balance sheet date and write down the carrying amount of MAT credit entitlement to the extent there is no longer convincing evidence to the effect that the company will pay normal Income Tax during the specified period.

13. Pre-operative expenses pending capitalization (as per schedule 25) consists of expenses incurred/ being incurred during implementation of project or installation of new fixed assets. These will be capitalized with other fixed assets when project/ fixed assets shall commence commercial production.

14. Previous year figures have been re-grouped and rearranged wherever considered necessary to make them comparable with those of current year. Figures have been rounded off to the nearest rupee.

15. The company is in the business of manufacture and sale of wheel rims and there is no other segment as per Accounting Standard (AS -17) dealing with the segment reporting.

16. Land for Oragadam plant is obtained on 99 years lease basis from State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT), a Govt of Tamilnadu enterprise. Total cost of leasehold land is amortized over a period of 99 years. Accordingly a sum of Rs. 12.19 lakh (previous year Rs. 42.68 lakh) is amortized during the year.

17. Schedule 1 to 26 form an integral part of the Balance Sheet, Profit & Loss Account and Cash Flow Statement.

Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR ON ACCOUNT OF:

(Rupees in Lacs)

As at As at 31.03.2010 31.03.2009

a) Letters of Credit 1,556.88 2145.00 outstanding for import/Purchase of Raw Material, Spares and Plant & Machinery.

b) Estimated amount of 5,108.39 4334.51 contracts remaining to be executed on capital account and not provided for (net of advances)

2. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary.

3. Depreciation on plant and machineries is provided as under:

a. In case of Oragadam (Tamil Nadu) unit on single shift basis as the unit functioned on single shift.

b. In case of Dappar unit

- Paint plant, except for Truck line, on double shift basis upto 30/09/2009 and triple shift basis after that as the plant functioned accordingly.

- Paint plant for Truck line on single shift basis as the plant functioned on single shift basis.

- Other plant and machineries on double and/ or triple shift basis depending on use.

4. Debit and Credit Balances in the accounts of a few suppliers and others are subject to confirmation and reconciliation.

5. The Income Tax assessment of the Company has been completed upto Asstt Year 2007-08. The Income Tax demand of Rs. 99.44 lakhs for the Asstt. Year 2007-08 is pending and the same has been stayed by Chief Commissioner of Income Tax. The appeal of the Company is pending before Commissioner of Income Tax (Appeals), Chandigarh. In the opinion of the Company the demand is likely To be deleted in view of the decision of various appellate authorities and interpretation of other relevant provisions of the Income Tax Act, 1961. Accordingly, no provision has been made.

6. The Company had been granted exemption from Sales Tax under the Punjab Industrial Policies, 1989 and 1996 for its Dappar unit. The said exemption is available upto March, 2012 or such period when amount of exemption is fully utilized, whichever is earlier. In respect of Chennai unit all sales tax liabilities are being paid as per applicable rules and provisions. Any liability on account of Sales Tax, if arises, shall be accounted for at the time of assessment.

7. Sundry Creditors include a sum of Rs. 209.27 Lakhs (Previous year 91.72 lakhs) due to Micro and Small Scale Undertakings. This information is required to be disclosed under the Micro, Small and Medium Enterprises development Act 2006, as determined to the extent the parties have been identified on the basis of information with the company.

8. During the year the Company has made a provision for accrued liability on account of Gratuity and leave encashment on the basis actuarial valuation as required by AS 15 (Revised 2005) - Employee Benefits issued by The Institute of Chartered Accountant of India, New Delhi.

9. In compliance with AS 22 issued by ICAI on Accounting for the Taxes on Income, a sum of Rs. 51.70 lakhs (Previous Y ear Rs. 318.00 lakhs) has been considered as deferred tax liability in respect of timing difference for the year under consideration and the same has been charged to profit & loss account.

10. The company had entered into an agreement for purchase of land admeasuring 304 kanals approx at village Bir Farozari, Distt. Panchkula, at a cost of Rs. 133.00 lacs for setting up an auto component unit. The land has not yet been registered in the name of the company. Pending the same, the advance of Rs. 35.00 lacs paid by the company has been shown as Advances Recoverable in the Schedule of Loans & Advances and being Under Legal suit, a provision for the same has been made.

Note:

a) Key Management personnel: Sh. Dheeraj Garg, Managing Director

b) Enterprises over which Key Management Personnel (KMP) are able to exercise significant control with whom transactions have taken place during the year: SAB Industries Ltd.

c) Relatives of the Key Management Personnel (with whom transactions have taken place):

Sh. R. K. Garg, Chairman ana Director

11. Events after Balance Sheet date

The company issued and allotted 5,50,000 Equity Shares of Rs. 10/- each for cash, at a price of Rs. 105/- (Rupees One hundred five only) per equity shares i.e. at a premium of Rs. 95/- each per share to Sh. Dheeraj Garg on Preferential allotment basis on 6 April, 2010.

12. Pre-operative expenses pending capitalization (as per schedule 25) consists of expenses incurred/ being incurred during implementation of project or installation of new fixed assets. These will be capitalized with other fixed assets when project/ fixed assets shall commence commercial production. During the year the Company incurred such expenses on implementation of Jamshedpur project which shall be capitalized on commencement of commercial production. Accordingly these are carried to Capital work-in-process.

13. Previous year figures have been re-grouped and rearranged wherever considered necessary to make them comparable with those of current year. Figures have been rounded off to the nearest rupee.

14. The company is in the business of manufacture and sale of wheel rims and there is no other segment as per Accounting Standard (AS -17) dealing with the segment reporting.

15. Land for Oragadam plant is obtained on 99 years lease basis from State Industries Promotion Corporation of Tamilnadu Limited (SIPCOT), a Govt of Tamilnadu enterprise. Total cost of leasehold land is amortized over a period of 99 years. Accordingly a sum of Rs. 42.68 lakh is amortized during the year.

16. Schedule 1 to 26 form an integral part of the Balance Sheet, Profit & Loss Account and Cash Flow Statement.

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