Notes to Accounts of Taparia Tools Ltd.

Mar 31, 2025

1) Fair Value of Investment Property is Rs. 945.42 lakh.

2) An external independent valuaer as definded under rule 2 of Companies (Registered Valuer and Valuation) Rules, 2017 has valued the investment Property. The fair value is based on market value, being the estimated amout for which a property could be exchanged in an arm''s length trasaction.

3) The Company had undertaken a project for setting up a new plant at Vapi (Gujarat); which was disclosed

under Capital WIP. However there has not been any progress in the project, since the past few years. Keeping in view the cost benefit and time lag of the project, Management is of the view that it may not be feasible to complete the construction. Consequently, it has been clssified under investment Property.

Terms/rights attached to equity shares

Fully paid equity shares have a par value of'' 10 each. Each holder of equity shares is entitled to one vote per share with a right to receive per share dividend declared by the Company. In the event of liquidation, the equity shareholders are entitled to receive remaining assets of the Company (after distribution of all preferential amounts) in the proportion of paid up equity shares held by the shareholders.

For the period of five years immediately preceding the date as at March 31, 2025, the Balance Sheet is prepared:

• Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in cash: Nil

• Aggregate number and class of shares allotted as fully paid up by way of bonus shares In the Financial year 2024-25 no Bonus shares are issued.

In the Financial year 2023-24, 1,21,43,000 equity shares of Rs. 10/-each were allotted as fully paid up by way of bonus shares.

• Aggregate number and class of shares bought back: Nil

General Reserve

The Company had transferred a portion of the net profit of the Company before declaring dividend to General Reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013. General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of profit or loss.

Retained Earnings

This reserve represents the cumulative profits of the company and the effects of remeasurement of defined benefit obligations. The reserve can be utilised in accordance with the provision of the Companies Act, 2013.

Securities premium

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

Capital Reserve

General Reserve

The Company had transferred a portion of the net profit of the Company before declaring dividend to General Reserve pursuant to the earlier provisions of Companies Act, 1956. Mandatory transfer to General Reserve is not required under the Companies Act, 2013. General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and is not an item of other comprehensive income, items included in the General Reserve will not be reclassified subsequently to statement of profit or loss.

Retained Earnings

This reserve represents the cumulative profits of the company and the effects of remeasurement of defined benefit obligations. The reserve can be utilised in accordance with the provision of the Companies Act, 2013.

Securities premium

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

Capital Reserve

Note : There are no material dues owed by the company to micro and small enterprises, which are outstanding for more than 45 days during the year and at March 31, 2025. This information as required under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company and has been relied upon by the auditors.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

29 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity shareholders by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

30 Contingent liability and Commitments		in lakh)
	For the year ended	For the year ended
	March 31 2025	March 31 2024
Contingent Liabilities: Claims against the Company not acknowledged as debts : a) In respect of labour matters	186.12	166.17
b) Income Tax matter under appeal for A.Y.2017-18	-	5,450.69
Commitments:
Estimated amount of contracts remaining to be executed on capital account and not provided for	73.85	81.15
Total	259.97	5,698.01

30. 1 Contingent liabilities above represent estimates made mainly for probable claims arising out of litigation and disputes pending with tax authorities. The probability and timing of outflow with regard to these matters depend on the final outcome of litigations / disputes. Hence the Company is not able to reasonably ascertain the timing of the outflow.

30.2 The Company is subject to legal proceedings and claims which arise in the ordinary course of business. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liability, where applicable. The management does not reasonably expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on the Company''s operations or financial condition.

31 The Company was set up with the objective of manufacturing Hand tools business segment. This is the only activity performed and is thus also the main source of risks and returns. Accordingly, the Company has a single reportable segment. Further, as the Company does not operate in more than one geographical segment hence the relevant disclosures as per Ind AS 108 are not applicable to the company.

32 The company has taken certain warehouse / building premises under cancellable operating leases. In the rent agreements there are no terms for purchase option or any restriction such as those concerning dividend and additional debts. Lease agreements of the company do not contain any variable lease payment or any residual value guarantees. The company has not entered into any sublease agreement.

(i) Defined benefit plan - Gratuity

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 and dearness allowance per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is an unfunded plan.

Assumptions regarding future mortality rates are based on Indian Assured Lives Mortality (2012-14 Urban) Ultimate as published by Insurance Regulatory and Development Authority (IRDA).

The actuarial valuation is carried out yearly by an independent actuary. The discount rate used for determining the present value of obligation under the defined benefit plan is determined by reference to market yields at the end of the reporting period on Indian Government Bonds. The currency and the term of the government bonds is consistent with the currency and term of the defined benefit obligation.

The above sensitivity analysis are based on a change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period

(ii) Defined contribution plan

The Company also has certain defined contribution plan. Contributions are made to provident fund and employee state insurance scheme for employees at the specified rate as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the year towards defined contribution plan is '' 149.53 lakhs. (31 March 2024: Rs 166.31 lakhs).

34 Corporate Social Responsibility

During the year, the amount required to be spent on corporate social responsibility activities amounted to '' 211.67 Lakhs (31 March 2024 Rs'' 165.70 Lakhs) in accordance with Section 135 of the Companies Act,2013. The following amounts were spent during the current and previous years:

The fair value of the assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in forced or liquidation sale. The following methods and assumptions were used to estimate the fair value:

1 Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilties, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.

2 Financial instruments with fixed and variable interest rates are evaluted by the company based on parameters such as interest rate and individual credit worthiness of the counterparty. Based on this evaluation, allowance are taken to the account for the expected losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2 : Other techniques for which all units which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3 : Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The Following table shows the company amounts and fair values of financial assets and financial liabilities, incuding their levels of in the fair value hierachy :

The Company''s management has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company conduct yearly risk assessment activities to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company has a system in place to ensure risk identification and ongoing periodic risk assessment is carried out. The Board of directors periodically monitors the risk assessment.

i) Credit risk

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract,leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily trade receivables and deposits to landlords) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The company generally doesn''t have collateral.

The carrying amounts of financial assets represent the maximum credit risk exposure. The maximum exposure to credit risk at the reporting date was:

Trade receivables

Customer credit risk is managed as per Company''s established policy, procedures and control relating to customer credit risk management. Credit risk has always been managed by the Company through credit approvals, estabilishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

An impairment analysis is performed for all major customers at each reporting date on an individual basis. In addition, a large number of minor receivables are grouped into homogenous group and assessed for impairment collectively. The calculation is based on historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 8. The company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several industries and operate in largely independent markets.

Bank balances and deposits with banks

Credit riskfrom balances with banks is managed by the company''s finance department as per Company''s policy. Investment of surplus funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits are reviewed by the Company''s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of the Company''s Board of directors. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behaviour and extensive analysisof customer credit risk. During the current year the Company has provided for impairement loss of Rs 92,33,436.50 related to trade receivables.

ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

iii) Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows a rising out of change in the price of a financial instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loans and borrowing.The company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification of risk factors with the object of governing/mitigating them accordingly to company''s objectives and declared policies in specific context of impact thereof on various segments of financial instruments.

- Foreign Currency

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which purchases are denominated and the functional currency of Company. The functional currency of the Company is Indian Rupees. However the Company is exposed to foreign currency fluctuation between the foreign currency and Indian Rupees.

39 Other regulatory notes

i) The Company did not have any material transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the current year and previous year.

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

(a) directly or indirectly lend or invest in other persons or entites identfied in any manner whatsoever by or on behalf of the Company (Ultmate Beneficiaries) or

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

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

(a) directly or indirectly lend or invest in other persons or entites 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.

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

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

vi) Company does not have any subsidiary, joint ventures or Associate.

vii) The Company is not covered under Section 8 of the Companies Act, thus related disclosure is not applicable.

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

40 The figures for the year ended March 31, 2024, included in these financial statements, have been audited by predecessor Auditor, who expressed an unmodified opinion on those statements vide their report dated May 21, 2024

41 Previous period / year figures have been regrouped and reclassified wherever considered necessary.

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Mar 31, 2024

f. Provisions and contingent liabilities

A provision is recognized if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will
be required to settle the obligation. Provisions are determined by discounting the expected future
cash flows at a pre-tax rate that reflects current market assumptions of the time value of money and
the risks specific to the liability. The unwinding of discount is recognized as finance cost.

The amount recognized as a provision is the best estimate of the consideration required to settle
the present obligation at reporting date, taking into account the risks and uncertainties surrounding
the obligation.

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

A provision for onerous contract is measured at the present value of the lower of the expected
cost of terminating the contract and the expected net cost of continuing with the contract.

Contingent liabilities are possible obligations that arise from past events and whose existence
will only be confirmed by the occurrence or non-occurrence of one or more future events not
wholly within the control of the Company. Where it is not probable that an outflow of economic
benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed
as a contingent liability, unless the probability of outflow of economic benefits is remote,

g. Leases
As a lessee

In the statement of profit and loss for the year, instead of rent expenses (as accounted under previous
periods), amortisation of right of use has been accounted under depreciation and amortisation
expenses and unwinding of discount on lease liabilities has been accounted under finance cost.

The Company''s leases primarily consist of leases of land and office premises. The Company
assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains,
a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration.

At the date of commencement of the lease, the Company recognizes a ROU and a corresponding
lease liability for all lease arrangements in which it is a lessee, except for leases with a term of
twelve months or less (short-term leases) and low value leases. For these short-term and/or low
value leases, the Company recognises the lease payments as an operating expense on a straight¬
line basis over the term of the lease. Certain lease arrangements include the options to extend
or terminate the lease before the end of the lease term. ROU assets and lease liabilities includes
these options when it is reasonably certain that they will be exercised.

The ROU assets are initially recognized at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or prior to the commencement date of the lease
plus any initial direct costs less any lease incentives. They are subsequently measured at cost less
accumulated depreciation and impairment losses. Currently, ROU assets are being amortised over
a period of 3-5 years based on lease term being lower of lease term and estimated useful life of
underlying assets.

Lease liability and ROU asset have been separately presented in the Balance Sheet and lease
payments have been classified as financing activities in statement of cash flows.

As a lessor

Lease income from operating leases where the Company is a lessor is recognized in income on a
straight-line basis over the lease term unless the receipts are structured to increase in line with
expected general inflation to compensate for the expected inflationary cost increases,

h. Borrowing costs

Borrowing costs directly attributable to the acquisition or construction of those property, plant
and equipment which necessarily takes a substantial period of time to get ready for their intended
use are capitalised. All other borrowing costs are expensed in the period in which they incur in the
statement of profit and loss.

I. Revenue

Revenue from sale of goods is recognised when control of the products being sold is transferred
to our customer and when there are no longer any unfulfilled obligations. The Performance
Obligations in our contracts are fulfilled at the time of dispatch, delivery or upon formal customer
acceptance depending on customer terms. Revenue is measured on the basis of contracted /
transaction price, after deduction of any trade discounts, volume rebates and any taxes or duties
collected on behalf of the Government such as goods and services tax, etc. Accumulated experience
is used to estimate the provision for such discounts and rebates. Revenue is only recognised to
the extent that it is highly probable a significant reversal will not occur. Our customers have the
contractual right to return goods only when authorised by the Company. An estimate is made
of goods that will be returned and a liability is recognised for this amount using a best estimate
based on accumulated experience.

Income from services rendered is recognised based on agreements/arrangements with the
customers as the service is performed and there are no unfulfilled obligations.

Interest income is recognised using the effective interest rate (EIR) method.

j. Foreign currency transactions

Transactions in foreign currencies are initially recorded by the company at their functional currency
spot rates at the date of the transaction.

Monetary assets and liabilities denominated in foreign currency are translated at the functional
currency spot rates of exchange at the reporting date. Exchange differences that arise on settlement
of monetary items or on reporting at each balance sheet date of the Company''s monetary items at the
closing rates are recognised as income or expenses in the period in which they arise. Non-monetary
items which are carried at historical cost denominated in a foreign currency are reported using the
exchange rates at the date of transaction. Non-monetary items measured at fair value in a foreign
currency are translated using the exchange rates at the date when the fair value is determined.

k. Recognition of interest income or expense

For all debt instruments measured at amortised cost, interest income is recorded using the effective
interest rate (EIR). EIR is the rate that exactly discounts the estimated future cash payments or
receipts over the expected life of the financial instrument or a shorter period, where appropriate,
to the gross carrying amount of the financial asset or to the amortised cost of a financial liability.
When calculating the effective interest rate, the Company estimates the expected cash flows
by considering all the contractual terms of the financial instrument (for example, prepayment,
extension, similar options) but does not consider the expected credit losses. Interest income is
included in finance income in the statement of profit and loss.

l. Government grant

Government grants are recognised where there is reasonable assurance that the grant will be
received and all attached conditions will be complied with. When the grant relates to revenue, it
is recognised in the statement of profit and loss on a systematic basis over the periods to which
they relate. When the grant relates to an asset, it is treated as deferred income and recognised in
the statement of profit and loss on a systematic basis over the useful life of the asset.

m. Income tax

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

I. Current tax

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

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

II. Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation
purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits.
Deferred tax assets are recognised to the extent that it is probable that future taxable profits will
be available against which they can be used.

Deferred tax assets recognised or unrecognised are reviewed at each reporting date and are
recognised / reduced to the extent that it is probable / no longer probable respectively that the
related tax benefit will be realised.

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

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

The Company offsets, the current tax assets and liabilities (on a year on year basis) and deferred
tax assets and liabilities, where it has a legally enforceable right and where it intends to settle such
assets and liabilities on a net basis.

n. Earnings per share

The Company presents basic and diluted earnings per share (EPS) data for its ordinary shares.
Basic EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the
Company by the weighted average number of ordinary shares outstanding during the period.
Diluted EPS is determined by adjusting the profit or loss attributable to ordinary shareholders and
the weighted average number of ordinary shares outstanding after adjusting for the effects of all
potential dilutive ordinary shares.

o. Cash flow statement

Cash Flows are reported using indirect method, where by profit /loss before tax is adjusted for the
effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts
or payments. Cash flow for the year are classified by operating, investing and financing activities.

p. Financial instruments

i. Recognition and initial measurement

The Company initially recognises financial assets and financial liabilities when it becomes a party
to the contractual provisions of the instrument. All financial assets and liabilities are measured at
fair value on initial recognition. Transaction costs that are directly attributable to the acquisition or
issue of financial assets and financial liabilities that are not at fair value through profit or loss are
added to the fair value on initial recognition. Regular way purchase and sale of financial assets are
accounted for at trade date.

ii. Classification and subsequent measurement
Financial assets

Financial assets carried at amortised cost

A financial asset is subsequently measured at amortised cost if it is held within a business model
whose objective is to hold the asset in order to collect contractual cash flows and the contractual
terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

Financial assets at fair value through other comprehensive income

A financial asset is subsequently measured at fair value through other comprehensive income
if it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets and the contractual terms of the financial asset give rise on
specified dates to cash flows that are solely payments of principal and interest on the principal
amount outstanding.

Financial assets at fair value through profit or loss

A financial asset which is not classified in any of the above categories are subsequently fair valued
through profit or loss.

Financial liabilities

Financial liabilities are subsequently carried at amortised cost using the effective interest method.
For trade and other payables maturing within one year from the balance sheet date, the carrying
amounts approximate fair value due to the short maturity of these instruments.

iii. Derecognition
Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from
the financial asset expire, or it transfers the right to receive the contractual cash flows in a
transaction in which substantially all of the risks and rewards of ownership of the financial assets
are transferred or in which the Company neither transfers nor retains substantially all of the risks
and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance
sheet but retains either all or substantially all of the risks and rewards of the transferred assets,
the transferred assets are not derecognised.

Impairment of financial assets

The company assesses impairment based on expected credit losses (ECL) model at an amount equal to:

• 12 months expected credit losses, or

• Lifetime expected credit losses

depending upon whether there has been a significant increase in credit risk since initial recognition.
However, for trade receivables, the company does not track the changes in credit risk. Rather, it
recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its
initial recognition.

Financial liabilities

The Company derecognises a financial liability when its contractual obligations are discharged or
cancelled or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows
under the modified terms are substantially different. In this case, a new financial liability based on
the modified terms is recognised at fair value. The difference between the carrying amount of the
financial liability extinguished and a new financial liability with modified terms is recognised in the
statement of profit and loss.

IV. Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet
when, and only when, the Company currently has a legally enforceable right to set off the amounts and it
intends either to settle them on a net basis or realise the asset and settle the liability simultaneously.

Note:

i) Fair Value of Investment Property is Rs.945.42 Lakh.

ii) An external independent valuer as defined under rule 2 of Companies(Registered Valuer and valuation) Rules,
2017 has valued the Investment Property. The fair value is based on market value, being the estimated amount
for which a property could be exchanged in an arm''s length transaction.

The Company had undertaken a project for setting up a new plant at Vapi (Gujarat), which was disclosed under
Capital WIP. However there has not been any progress in the project, since the past few years. Keeping in view
the cost benefit and time lag of the project, management is of the view that it may not be feasible to complete
the construction. Consequently it has been classified under Investment property during the year.

29.1 Contingent liabilities above represent estimates made mainly for probable claims arising out of litigation and disputes pending with
tax authorities. The probability and timing of outflow with regard to these matters depend on the final outcome of litigations /
disputes. Hence the Company is not able to reasonably ascertain the timing of the outflow.

29.2 The Company is subject to legal proceedings and claims which arise in the ordinary course of business. The Company has reviewed
all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent
liability, where applicable. The management does not reasonably expect that these legal actions, when ultimately concluded and
determined, will have a material and adverse effect on the Company''s operations or financial condition.

30 The Company was set up with the objective of manufacturing Handtools business segment. This is the only activity performed and is
thus also the main source of risks and returns. Accordingly, the Company has a single reportable segment. Further, as the Company
does not operate in more than one geographical segment hence the relevant disclosures as per Ind AS 108 are not applicable to the
company.

31 The company has taken certain building premises under cancellable operating leases. In the rent agreements there are no terms for
purchase option or any restriction such as those concerning dividend and additional debts. Lease agreements of the company do
not contain any variable lease payment or any residual value guarantees. The company has not entered inti any sublease agreement.

Information in respect of leases for which right-of-use assets and corresponding lease liabilities have been recognised are as follows:

35 Financial Instrument - Accounting classifications and fair values measurements

The fair value of the assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in forced or liquidation sale. The following methods and assumptions were used to
estimate the fair value:

1 Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilties, short
term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities
of these instruments.

2 Financial instruments with fixed and variable interest rates are evaluted by the company based on parametes such as interest rate
and individual credit worthiness of the counterparty. Based on this evaluation, allowance are taken to the account for the expected
losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:
Level 1: Quoted (unadjusted) prices In active markets for identical assets or liabilities

Level 2 : other techniques for which all inuts which have a significant effect on the recorded fair value are observable, either directly
or indirectly.

Level 3 : techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

The Following table shows thw company amounts and fair values of financial assets and financial liabilities, incuding their levels of in
the fair value hierachy :

Financial risk management objectives and policies

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

- Credit risk

- Liquidity risk

- Market risk

- Interest risk

Risk management framework

The Company''s management has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company conduct yearly risk assessment activities to identify and analyse the risks faced by the Company, to set appropriate risk limits
and controls and to monitor risks and adherence to limits. Risk management systems are reviewed regularly to reflect changes in market
conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a
disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company has a system in place to ensure risk identification and ongoing periodic risk assessment is carried out. The Board of directors
periodically monitors the risk assessment.

i) Credit risk

Credit risk is the risk that counterparty will not meet its obligation under a financial instrument or customer contract,leading to a financial
loss. The company is exposed to credit risk from its operating activities (primarily trade receivables and deposits to landlords) and from its
financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.
The company generally doesn''t have collateral.

The carrying amounts of financial assets represent the maximum credit risk exposure. The maximum exposure to credit risk at the report¬
ing date was:

Trade receivables

Customer credit risk is managed as per Company''s established policy, procedures and control relating to customer credit risk management.
Credit risk has always been managed by the Company through credit approvals, estabilishing credit limits and continuously monitoring the
credit worthiness of customers to which the Company grants credit terms in the normal course of business.

An impairment analysis is performed for all major customers at each reporting date on an individual basis. In addition, a large number of
minor receivables are grouped into homogenous group and assessed for impairment collectively. The calculation is based on historical
data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note
8. The company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several
industries and operate in largely independent markets.

Bank balances and deposits with banks

Credit risk from balances with banks is managed by the company''s finance department as per Company''s policy. Investment of surplus
funds are made only with approved counterparties and within credit limits assigned to each counterparty. Counterparty credit limits
are reviewed by the Company''s Board of Directors on an annual basis, and may be updated throughout the year subject to approval of
the Company''s Board of directors. The limits are set to minimise the concentration of risks and therefore mitigate financial loss through
counterparty''s potential failure to make payments.

Management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical
payment behaviour and extensive analysis of customer credit risk. During the current year the Company has provided for impairement
loss of Rs 30.99 related to trade receivables,

ii) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that
are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible,
that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring
unacceptable losses or risking damage to the Company’s reputation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undis¬
counted, and include estimated interest payments and exclude the impact of netting agreements.

iii) Market risk

Market risk is the risk of loss of future earnings, fair value or future cash flows arising out of change in the price of a financial
instrument. These include change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and
other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial
instruments including investments and deposits, foreign currency receivables, payables and loans and borrowing.

The company manages market risk through a risk management committee engaged in, inter alia, evaluation and identification of risk
factors with the object of governing/mitigation them accordingly to company''s objectives and declared policies in specific context of
impact thereof on various segments of financial instruments.

Currency risk

The Company is exposed to currency risk to the extent that there is a mismatch between the currencies in which purchases are
denominated and the functional currency of Company. The functional currency of the Company is Indian Rupees. However the
Company is not exposed to foreign currency fluctuation between the foreign currency and Indian Rupees.

37 No transactions to report against the following disclosure requirements as notified by MCA pursuant to amendment in Schedule III

i) Crypto Currency or Virtual Currency

ii) Benami property held under Prohibition of Benami Transactions Act, 1988 and rules made there under

iii) Registration of Charges or satisfaction with Registrar of Companies

iv) Related to borrowed funds:

a) Wilful defaulter

b) Utilisation of borrowed fund & share premium

c) Borrowings obtained on the basis of security of current assets

d) discrepancies in utilsation of borrowings

e) Current maturiy of long term borrowings

38 Previous period figures have been regrouped / re-classified to confirm to requirements of the amended Schedule III to the
Companies Act, 2013 effective 1st April 2023

As per our report of even date attached

For and on behalf of Board of Directors

For Harshil Shah & Co V.S. Datey D. P. Taparia

Chartered Accountants Company Secretary Managing Director

(Firm Reg.No.l41179W) (DIN : 00126892)

Harshil Shah S. R. Bagad Sivaramakrishnan Palaniappan Pillai

Partner Chief Financial Officer Whole-Time Director-Operations

Membership No. 124146 (DIN : 06436717)

Mumbai, May 21, 2024

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Mar 31, 2014

1) Provisions and contingencies

Contingent Liabilities as on 31-03-2014 not provided for in respect of:

a) Estimated amount of contract remaining to be executed on capital account is Nil (Nil).

b) Claims against the Company not acknowledged as Debts are Rs. 67.56 lakhs ( Rs. 52.68 lakhs).

2) Depreciation

Depreciation for the year on revised future life as ascertained by Valuers and revalued figures of fixed assets and that on the original cost of the fixed assets work out to Rs. 66,64,907 and Rs. 61,02,511 respectively. The transfer of Rs. 5,62,396 from Fixed Assets Revaluation Reserve to statement of profit & loss represents difference between depreciation on revalued figures and that on original cost.

3) Segment reporting

The Company is exclusively in the hand tools business segment.

4) Related Party Disclosures

Disclosures as required by Accounting Standard - 18 "Related Party Disclosures" are given below:

a) List of Related Parties/Associates/Subsidiary Companies : Nil

b) Key Management Personnel (KMP) : Shri H. N. Taparia (Chairman and Managing Director)

D r. M. G. Nathani (Executive Director) (Up to 29/03/2014) Shri Sivaramakrishnan (Director – Operations) Shri V. S. Datey (Company Secretary)

c) Details of transactions relating to KMP as referred to in item (b) above : Remuneration : Rs. 112.51 lakhs (Refer Note No. 30)

5) Balances of certain Debtors, Creditors and advances for which confirmations have not been received, are subject to reconciliations.

6) Lease

The Company has taken certain office/factory premises on operating lease basis. Lease payments in respect of such leases recognized in statement of Profit & Loss Rs. 23.20 lakhs (previous year Rs. 17.58 lakhs)

7) Retirement Benefit Plans

a) Defined Contribution Plans:

Contribution to Defined contribution Plans is recognized as expense in the statement of Profit and Loss, as they are incurred.

b) Defined Benefit Plan:

The Company makes annual contributions to employees'' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The present value of the defined benefit obligation and the related current service cost were measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a 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 employees benefit entitlement and measures each unit separately to build up the final obligation.

8) Research and Development Expenses

Expenditure on Research and Development is as under:

Capital -

Recurring Rs. 76.24 Lakhs

Total Rs. 76.24 Lakhs

Total R & D Expenditure as percentage of Total Turnover 0.29%

Note : Figures in brackets are of previous year

9) Previous Year''s figures have been recast/regrouped wherever necessary.

---

Mar 31, 2013

1) Provisions and contingencies

Contingent Liabilities as on 31-03-2013 not provided for in respect of:

a) Estimated amount of contract remaining to be executed on capital account is Nil (Nil).

b) Claims against the Company not acknowledged as Debts are Rs. 52.68 lakhs (Rs. 45.41 lakhs).

2) Depreciation

Depreciation for the year on revised future life as ascertained by Valuers and revalued figures of fixed assets and that on the original cost of the fixed assets work out to Rs. 72,27,303 and Rs. 66,64,907 respectively. The transfer ofRs. 5,62,396 from Fixed Assets Revaluation Reserve to statement of profit & loss represents difference between depreciation on revalued figures and that on original cost.

3) Segment reporting

The Company is exclusively in the hand tools business segment.

4) Related Party Disclosures

Disclosures as required by Accounting Standard - 18 "Related Party Disclosures" are given below:

a) List of Related Parties/Associates/Subsidiary Companies : Nil

b) Key Management Personnel (KMP) : Shri H. N. Taparia (Chairman and Managing Director)

Dr. M. G. Nathani (Executive Director) Shri P.S. Krishnan (Director - Operations)

c) Details of transactions relating to KMP

as referred to in item (b) above : Remuneration : Rs. 88.21 lakhs (Refer Note No. 30)

5) Balances of certain Debtors, Creditors and Advances for which confirmations have not been received, are subject to reconciliations.

6) Lease

The Company has taken certain office/factory premises on operating lease basis. Lease payments in respect of such leases recognized in statement of Profit & Loss Rs. 17.58 lakhs (previous year Rs. 15.04 lakhs)

7) Retirement Benefit Plans

a) Defined Contribution Plans:

Contribution to Defined contribution Plans is recognized as expense in the statement of Profit and Loss, as they are incurred.

b) Defined Benefit Plan:

The Company makes annual contributions to employees'' group gratuity-cum-life assurance scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The present value of the defined benefit obligation and the related current service cost were measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a 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 employees benefit entitlement and measures each unit separately to build up the final obligation.

8) Previous Year''s figures have been recast/regrouped wherever necessary.

---

Mar 31, 2010

1. Contingent Liabilities not provided for in respect of

[a] Estimated amount of contract remaining to be executed on capital account is Nil [Rs. 15,71,794/-].

[b] Claims against the Company not acknowledged as Debts are Rs. 45,41,795 [Rs. 45,41,795].

2. Depreciation for the year on revised future life as ascertained by Valuers and revalued figures of fixed assets and that on the original cost of the fixed assets work out to Rs. 61,53,633/- and Rs. 59,00,049/-respectively. The,transfer of Rs. 2,53,584/- from Fixed Assets Revaluation Reserve" to Profit S. Loss Account represents difference between depreciation on revalued figures and that on original cost.

3. Other income includes MVAT Receivable - Rs. 91,58,336/- and Refund on MVAT of earlier years Rs. 54,44,596.

4. Segment Reporting

The Company is exclusively in the hand tools business segment.

5. Related Party Disclosures

Disclosures as required by the Accounting Standard -18 "Related Party Disclosures" are given below:

a] List of Related Parties/Associates/Subsidiary Companies:

Nil.

b] Key Management Personnel:

Shri H.N. Taparia (Chairman S, Managing Director] Dr. M.G. Nathani (Executive Director]

c] i] Transactions with Associate Company Nil

ii] Outstanding balance of Associate Company Nil

d] Details of transactions relating to Key Management Personnel as referred to in item b] above Remuneration : Rs. 22.62 lakhs (Refer Note No.10)

6. Impairment of Assets

The carrying amounts of assets are reviewed at each balance sheet date if there is an indication of impairment based on the internal and external factors.

An asset is treated as impaired when the carrying cost of the asset exceeds its recoverable amount. An impairment loss, if any, is charged to the Profit and Loss Account in the year in which the asset is identified as impaired. Reversal of impairment loss recognized in prior years is recorded when there is an indication that impairment loss recognised for the asset no longer exists or has been decreased.

7. Income tax assessment is completed upto assessment year 2006-2007. The Honourable High Court, Mumbai confirmed the appeals for the assessment years 1996-97, 1997-98 and 1998-99 as per the Appellate Orders issued by ITAT, Pune Bench and now they are pending in the Honourable Supreme Court of India, New Delhi.

8. Some of the Debit & Credit Balances on the Debtors account and Loans and Advances remain unconfirmed.

9. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

10. Retirement Benefit Plans

The Company adopted the Accounting Standard-15 "Employees Benefits" (AS-15) effective from April 1st, 2007 consequent upon the change in accounting policy. The necessary details have been disclosed in the Defined Benefit Plan.

A. Defined Contribution Plans:

Contribution to Defined contribution Plans is recognized as expense in the Profit & Loss Account, as they are incurred.

B. Defined Benefit Plan:

The Company makes annual contributions to employees group gratuity- cum-life assurance scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees.

The present value of the defined benefit obligation and the related current service cost were measured using the projected unit credit method with actuarial valuation being carried out at each balance sheet date.

The employees gratuity fund scheme managed by Life Insurance Corporation of India is a 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 employees benefit entitlement and measures each unit separately to build up the final obligation.

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

11. Previous years figures have been recast or regrouped wherever necessary.

12. Additional information pursuant to the provisions of paragraph 3,4C S. 4D of part II of Schedule VI to The Companies Act, 1956.