Notes to Accounts of Welcast Steels Ltd.

Mar 31, 2025

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of ?10/- each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive the 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 shareholder.

The company has neither allotted any shares by way of bonus shares nor pursuant to contract without payment being received in cash nor bought back any shares during the immediately preceding five financial years pursuant to contract without payment being received in cash.

(c ) Details of each shareholder holding more than 5% shares and Shares held by the holding company / Promoters

Note 37 : Contingent liabilities and capital commitments (? In Lakhs)
Particulars	As at 31 March, 2025	As at 31 March, 2024
A. Contingent Liabilities - Not provided
a ) In respect of claims against the company not acknowledged as debt	7.60	7.60
b) Guarantees: Outstanding bank guarantees	64.71	55.53
c) Customs duty related dispute (During the Hon. Supreme court dismissed the special leave petition filed by the department against the decision of the High Court received in favour of the Company)		1,100.84
d) Other money for which the company is contingently liable	-	-
e) Matters relating to employees: i) Illegal strike wages under dispute - workmen and casual labour	278.69	254.33
ii) Charter of demands made by one of the labour union, pending for disposal at Industrial Tribunal (labour court), Bangalore.	no reliable estimate can be made
(? In Lakhs)
B. Capital Commitments	As at 31 March, 2025	As at 31 March, 2024
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of capital advances)	_	_

B. Defined benefit plans

Gratuity: The employees'' gratuity fund scheme is a defined benefit plan managed by a Trust. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(i) Risks associated to the defined benefit plans:

a. Actuarial risk: Risks due to adverse salary growth / Variability in mortality and withdrawal rates.

b. Investment risk: Risks due to significant changes in discount rate during the inter-valuation period.

c. Liquidity risk: Risks on account of Employees resign/retire from the company and as result strain on the cash flow arises.

d. Market risk: Risks related to changes and fluctuation of the financial markets and assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

e. Legislative risk: Risks of increase in the plan liabilities or reduction in plan assets due to change in legislation.

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

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company''s policy for plan assets management.

(viii) Sensitivity analysis:

The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

C. Other long-term employee benefits

Leave encashment: The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - ''Employee Benefits'' in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

All related party transactions entered during the year were in ordinary course of the business and are on arm''s length basis. No amount has been recognised as bad or doubtful in respect of transactions with the related parties.

The Company''s transactions with its related party its holding company are at arm''s length, as per the independent accountant''s report for the year ended 31 March 2025. The management believes that the Company''s transactions with its holding company post 31 March 2025 continue to be at arm''s length and that transfer pricing legislations will not have any impact on the financial statements, particularly on the amount of tax expenses for the financial year 2024-25 and the amount of provision for taxation as at 31 March 2025.

Note No 41:

Segmental reporting:

The company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company''s operations are solely situated in India. Hence there are no reportable segments as required by Ind AS - 108 "Operating Segments" under the Companies (Indian Accounting Standards) Rules, 2015. Further sales to each customer amounting to 10% or more of the Company''s total revenue from sale of grinding media amounted to ? 1829.32 lakhs (net of tax) (previous year : ? Nil lakhs).

Note No 42:

I. Financial risk management

The Company''s business activities expose it to a variety of financial risks, namely credit risk, liquidity risk, market risk and commodity risk. The Company''s senior management has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company has constituted a Risk Management Committee which is responsible for developing and monitoring the Company''s risk management policies. The key risks and mitigating actions are also placed before the Audit Committee of the Company. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Risk Management Committee of the Company is supported by the Finance team and experts who provide assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The activities are designed to protect the Company''s financial results and position from financial risks, maintain market risks within the acceptable parameters while optimizing returns and protect the Company''s financial investments while maximizing returns. This note explains the sources of risk which the Company is exposed to and how the Company manages the risk in the financial statements.

Credit risk arises from the possibility that the counter party may not be able to settle the obligation as agreed. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. Customer wise limits are set accordingly.

The Company considers the probability of default of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwardlooking information such as:

(i) Actual or expected significant adverse changes in business

(ii) Actual or expected significant changes in the operating results of the counter party.

(iii) Financial or economic conditions that are expected to cause a significant change to the counter party''s ability to meet its obligations

The Company categorizes financial assets based on the assumptions, inputs and factors specific to the class of financial asset into High-quality assets, negligible credit risk; Quality assets, low credit risk; Standard assets, moderate credit risk; Substandard assets, relatively high credit risk; Low quality assets, very high credit risk; Doubtful assets, credit impaired.

Financial assets are written off only when there are no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company considers a loan or receivable for write off review when it pasts greater than one year from due date. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in the statement of profit and loss.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

C. Market risk - Interest rates

The Company does not have any credit facilities with financial institution hence no Interest rate risk Market risk: Foreign currency risk: The company does not have exposure to foreign currency risk except for the imports which is quite small quantum. The Company monitors the market rates of foreign currency at the time of requisition of imported materials.

D. Commodity Risk

Principal raw material for Company''s products are Metal Scrap and Ferro chrome. Company sources its raw material requirement from domestic and international markets. Domestic market price generally remains in line with international market prices. Volatility in metal prices, currency fluctuation of rupee viz a viz other prominent currencies coupled with demand-supply scenario in the world market affect the effective price of scrap and ferrous metal. Company effectively manages availability of material as well as price volatility through:

(i) widening its sourcing base;

(ii) appropriate contracts with vendors and customers and commitments;

(iii) Well planned procurement and inventory strategy.

Risk committee of the Company has developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

II. Capital Management

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

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

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

- Company believes in conservative leverage policy.

Company''s capital expenditure plan over the medium term shall be largely funded through internal accruals and suppliers'' credit and does not have any long term borrowing arrangements with any one.

Company believes in conservative leverage policy. Company''s capital expenditure plan over the medium term shall be largely funded through internal accruals and suppliers'' credit.

B. Company follows the policy of dividend for every financial year as may be decided by the Board considering financial performance of the Company and other internal and external factors enumerated in the Company''s dividend policy such as reinvestment of capital business.

Note 46:

The company has not

(i) Advanced / loaned / invested funds to any other person or entity, including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend / invest in other person or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries (''UB'');

(b) provide any guarantee, security or the like to or on behalf of the UB;

(ii) received any fund from any person(s) or entity(ies), including foreign entities(Funding Party) with the

understanding that the company shall:

(a) directly or indirectly lend / invest in other person or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries (''UB'');

(b) provide any guarantee, security or the like to or on behalf of the UB;

Note 47 :

(A) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any

other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (“Intermediaries”) with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the holding Company and its subsidiaries incorporated in India (Ultimate Beneficiaries). The Company has not received any fund from any party(s) (Funding Party) with the understanding that the holding Company and its subsidiaries

incorporated in India shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the holding Company and its subsidiaries incorporated in India (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(B) Note on audit trials maintenance

In accordance with the requirements stipulated under the provisions of Companies Act, 2013 for maintenance of Audit Trail for books of accounts with effect from 01 April, 2023, the Company has enabled the Audit Trail feature at the application level of Accounting Software SAP. There has been no instance of audit trail feature being tampered with. Further, the audit trail has been preserved as per the statutory requirements for record retention.

(C) The company has not been declared wilful defaulter by any bank or financial institution or other lender Note 48:

The company has not traded or invested in Crypto or virtual currency during the year(PY Nil).

Note 49:

There are no transactions which are not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

---

Mar 31, 2024

1. Refer Note 36 B for contractual commitments with respect to property, plant and equipment.

2. The title deeds of all the immovable properties (other than the properties where the company is the lessee under the lessee agreements are duly executed in favour of the lessee) are held in the name of the Company individually/solely.

3. During the year under review the company had not made any re-valuation of its property plant and equipment.

4. The Company does not holds any Benami property and there are no proceedings against the company under the benami transaction (prohibition) Act 1988 (as amended from time to time.)

5. For the previous year out of total assets, identified assets comprising factory land, buildings and plant and machineries of the Company are mortgaged / hypothecated to Canara Bank for availing various working capital facilities to the tune of ? 900 lakhs and for the current year no charge on any assets of the Company.

6. Satisfaction of charge is pending to be filed in respect of loan obtained and repaid by the company from First National City Bank with a limit of ? 45 Lakhs.

7. Quarterly returns of current assets filed by the company with bank is in agreement with the books of accounts

8. The company has not been declared wilful defaulter by any bank or financial institution or other lender

(b) Terms/Rights attached to equity shares

The Company has only one class of equity shares having par value of ? 10/- each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive the 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 shareholder.

The company has neither allotted any shares by way of bonus shares nor pursuant to contract without payment being received in cash nor bought back any shares during the immediately preceding five financial years pursuant to contract without payment being received in cash.

# Disclosure under the Micro, Small and Medium Enterprises Development Act, 2006 as at 31 March 2024 (31 March 2023) is provided as under, to the extent the Company has received intimation from the “Suppliers” regarding their status under the Act.

NOTE :

The Company had sought confirmation from its vendors on their status under Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act”) which came into force from 2 October 2006. Dues to micro and small enterprises have been determined based on confirmations received by the Company from its vendors.

B. Defined benefit plans

Gratuity: The employees'' gratuity fund scheme is a defined benefit plan managed by a Trust. The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

(i) Risks associated to the defined benefit plans:

a. Actuarial risk: Risks due to adverse salary growth / Variability in mortality and withdrawal rates.

b. Investment risk: Risks due to significant changes in discount rate during the inter-valuation period.

c. Liquidity risk: Risks on account of Employees resign/retire from the company and as result strain on the cash flow arises.

d. Market risk: Risks related to changes and fluctuation of the financial markets and assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

e. Legislative risk: Risks of increase in the plan liabilities or reduction in plan assets due to change in legislation.

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

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.

(viii) Sensitivity analysis:

The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

C. Other long-term employee benefits

Leave encashment: The present value of obligation is determined based on actuarial valuation using the projected unit credit method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Key Managerial Personnel who are under the employment of the Company are entitled to post employment benefits and other long term employee benefits recognised as per Ind AS 19 - ‘Employee Benefits'' in the financial statements. As these employee benefits are lump sum amounts provided on the basis of actuarial valuation, the same is not included above.

All related party transactions entered during the year were in ordinary course of the business and are on arm''s length basis. No amount has been recognised as bad or doubtful in respect of transactions with the related parties.

The Company''s transactions with its related party its holding company are at arm''s length, as per the independent accountant''s report for the year ended 31 March 2024. The management believes that the Company''s transactions with its holding company post 31 March 2024 continue to be at arm''s length and that transfer pricing legislations will not have any impact on the financial statements, particularly on the amount of tax expenses for the financial year 2023-24 and the amount of provision for taxation as at 31 March 2024.

Note No 40

Segmental reporting :

The company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company''s operations are solely situated in India. Hence there are no reportable segments as required by Ind AS - 108 "Operating Segments" under the Companies (Indian Accounting Standards) Rules, 2015. Further sales to a single customer amounting to 10% or more of the Company''s revenue from sale of grinding media amounted to ? Nil lakhs (net of tax) (previous year : ? 4445.03 lakhs).

Note No 41:

I. Financial risk management

The Company''s business activities expose it to a variety of financial risks, namely credit risk, liquidity risk, market risk and commodity risk. The Company''s senior management has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company has constituted a Risk Management Committee which is responsible for developing and monitoring the Company''s risk management policies. The key risks and mitigating actions are also placed before the Audit Committee of the Company. The Company''s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

The Risk Management Committee of the Company is supported by the Finance team and experts who provide assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The activities are designed to protect the Company''s financial results and position from financial risks, maintain market risks within the acceptable parameters while optimizing returns and protect the Company''s financial investments while maximizing returns. This note explains the sources of risk which the Company is exposed to and how the Company manages the risk in the financial statements.

Credit risk arises from the possibility that the counter party may not be able to settle the obligation as agreed. To manage this, the Company periodically assesses financial reliability of customers, taking into account the financial condition, current economic trends and analysis of historical bad debts and ageing of accounts receivable. Customer wise limits are set accordingly.

The Company considers the probability of default of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forward-looking information such as:

(i) Actual or expected significant adverse changes in business

(ii) Actual or expected significant changes in the operating results of the counter party.

(iii) Financial or economic conditions that are expected to cause a significant change to the counter party''s ability to meet its obligations

The Company categorizes financial assets based on the assumptions, inputs and factors specific to the class of financial asset into High-quality assets, negligible credit risk; Quality assets, low credit risk; Standard assets, moderate credit risk; Substandard assets, relatively high credit risk; Low quality assets, very high credit risk; Doubtful assets, credit impaired.

Financial assets are written off only when there are no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company considers a loan or receivable for write off review when it pasts greater than one year from due date. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in the statement of profit and loss.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. The Company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risks are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

C. Market Risk - Interest Rates

The Company does not have any credit facilities with financial institution hence no Interest rate risk.

Market risk: Foreign currency risk: The company does not have exposure to foreign currency risk except for the imports which is quite small quantum. The Company monitors the market rates of foreign currency at the time of requisition of imported materials.

D. Commodity Risk

Principal raw material for Company''s products are Metal Scrap and Ferro chrome. Company sources its raw material requirement from domestic and international markets. Domestic market price generally remains in line with international market prices. Volatility in metal prices, currency fluctuation of rupee viz a viz other prominent currencies coupled with demand-supply scenario in the world market affect the effective price of scrap and ferrous metal. Company effectively manages availability of material as well as price volatility through:

(i) widening its sourcing base;

(ii) appropriate contracts with vendors and customers and commitments;

(iii) Well planned procurement and inventory strategy.

Risk committee of the Company has developed and enacted a risk management strategy regarding commodity price risk and its mitigation.

II. Capital Management

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

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

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

- Company believes in conservative leverage policy.

Company''s capital expenditure plan over the medium term shall be largely funded through internal accruals and suppliers'' credit and does not have any long term borrowing arrangements with any one.

Company believes in conservative leverage policy. Company''s capital expenditure plan over the medium term shall be largely funded through internal accruals and suppliers'' credit.

B. Company follows the policy of dividend for every financial year as may be decided by the Board considering financial performance of the Company and other internal and external factors enumerated in the Company''s dividend policy such as reinvestment of capital business.

Note -42 : Fair value measurements

Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows:

Note 43:

The financial statements are approved by Board of Directors in their meeting held on dated 13 May 2024 by Video Conferencing.

Note 44:

The Provisions of Corporate Social Responsibility under Section 135 of the Companies Act, 2013 are not applicable to the Company for the year.

Note 45:

The company has not

(i) Advanced / loaned / invested funds to any other person or entity, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend / invest in other person or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries (‘UB''));

(b) provide any guarantee, security or the like to or on behalf of the UB;

(ii) received any fund from any person(s) or entity(ies), including foreign entities(Funding Party) with the understanding that the company shall:

(a) directly or indirectly lend / invest in other person or entities identified in any manner whatsoever by or on behalf of the funding party (Ultimate Beneficiaries (‘UB''));

(b) provide any guarantee, security or the like to or on behalf of the UB;

Note 46 :

The company has had no transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

Note 47:

The company has not traded or invested in Crypto or virtual currency during the year(PY Nil).

Note 48:

There are no transactions which are not recorded in the books of accounts that have been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

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Mar 31, 2018

2 Balance Confirmations

Request for confirmation of balance were sent to Trade receivables and Trade creditors. Responses from some of the parties are yet to be received. In certain cases confirmed balances differ from the company''s book balances which are under reconciliations. Management is confident that there will not be any impact on the financials on completion of the reconciliations.

3 Estimated amount of contracts remaining to be executed and not provided for a. On capital account-?. 16.11 lakhs (previous year: Nil)

b. On revenue account (Material contracts for purchase of Raw Materials, stores & service contracts) - 24.50 lakhs (Previous Year: Nil Lakhs)

4 The company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company''s operations are solely situated in India. Hence there are no reportable segments as required by Ind AS - 108 "Operating Segments" under the Companies (Indian Accounting Standards) Rules, 2015.

Further sales to a single customer amounting to 10 percent or more of the company’s revenue from sale of grinding media amounted to 22617.15 Lakhs (PY. 20834.74 Lakhs) excluding GST/CST.

5 The company has not entered into any non-cancellable lease arrangement.

6 Related party disclosures:

Parties where control exists:

Related Party Relationship__

AlA Engineering Ltd. Holding Company

__(Controlled By Mr Bhadresh K. Shah - Director)_

_Vee ConnectTravels Pvt Ltd__Associate_

_PradipRShah&Co__Associate_

_Key Managerial Personnel:__Mr. Bhadresh K. Shah_

__MrVinod Narain_

__MrD.P.Dhanuka_

__MrPradip RShah_

__MrRaiendraS Shah_

__Mr Sanjay S Majmudar_

__MrAshokANichani_

Mrs Khushali S Solanki

Note: This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

9 Figures for the previous reporting period have been recast in line with current year’s presentation.

10 As per Ind AS 19 "Employee Benefits", the disclosures of Employee Benefits as defined in the Accounting standard are given below and this disclosure Employee benefits:

Place : Bengaluru

Date : 07-05-2018

Notes: 1. Cash flow statement has been prepared under the indirect method as set out in Ind AS 7 notified under Companies (Indian Accounting Standards) Rules, 2015.

2. Purchase of fixed assets includes movements of capital work-in-progress between the beginning and the end of the year.

3. Previous year figure regrouped/recasted wherever necessary.

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Mar 31, 2017

1. Contingent liability to the extent not provided for:

7 laM I

2 . Balance Confirmations

Request for confirmation of balance were sent to Banks, Trade receivables and Trade creditors. Responses from some of the parties are yet to be received. In certain cases confirmed balances differ from the company''s book balances which are under reconciliations. Management is confident that there will not be any impact on the financials on completion of the reconciliations.

3. Estimated amount of contracts remaining to be executed and not provided for a. On capital account-Rs.. Nil (previous year: Nil)

b. On revenue account (Material contracts for purchase of Raw Materials, stores & service contracts) - Nil lacs (Previous Year: Rs.206.83Lacs)

4 The company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company''s operations are solely situated in India. Hence there are no reportable segments as required by Ind AS - 108 "Operating Segments" under the Companies (Indian Accounting Standards) Rules, 2015.

Further sales to a single customer amounting to 10 percent or more of the company''s revenue from sale of grinding media amounted to 20835.75 Lacs (PY 12410.13 Lacs).

5 The company has not entered into any non cancellable lease arrangement.

6 Related party disclosures:

Footnotes to the reconciliation of equity as at 1 April 2015 and 31 March 2016 and profit or loss for the year ended 31st March 2016

7. Proposed Dividend

As per Indian GAAP, Proposed dividends shall be recognized as a liability in the books of accounts based in the period to which such dividends are related. However as per Ind AS, Dividend provision/ recognition shall be made the period in which it is declared. Proposed Dividend Rs 12.76 Lacs and Dividend Distribution Tax Rs 2.59 Lacs as on 01.04.2015 is de-recognized.

8. De-recognition of Prior Period Expense:

As per Ind AS prior period expenses are to be accounted in the financial year to which the relate to. Accordingly the prior period expenses Rs 2.44 Lacs during the year 2015-16 are de-recognized and adjusted in Retained Earnings.

9. Capitalization of Stores as per Ind AS 16.

As per Ind AS, stores which meet the definition of Property, Plant and Equipment are to be capitalized. Accordingly Stores amounting to Rs 17.29 Lacs. Correspondingly depreciation charge for the FY 2015-16 is increased by Rs 7.79 Lacs.

10. Withdrawl of Revaluation Reserve:

As per Ind AS the company has to chose to adopt either the cost model or revaluation model for Property, Plant & Equipment. The company has adopted the cost model and accordingly Revaluation reserve as on 01.04.2015 Rs 9.11 Lacs. Depreciation charge on revaluation component Rs 1.13 Lacs has been reversed during the year 2015-16.

11. Changes in Deferred Tax on Account of Change in PPE:

As change made in Property Plant & Equipment, deferred tax as on 31.03.2016 has undergone change, net impact Rs3.02 Lacs.

12. Re-measurements of Acturial Valuation on Gratuity

In terms of Ind AS the re-measurement adjustments are to be accounted through Other Comprehensive Income, hence corresponding adjustments done in employee benefit expenses, Rs 18.65 Lacs (Deferred Tax Rs 5.76 Lacs).

13. Re-classification between Cash and Cash equivalents and Other Bank Balances , Current Assets and Non Current

Assets In terms of Ind AS few items has been re-classified between Cash and Cash Equivalents Rs 5.04 Lacs and Current and Non-Current Assets Rs 95.24 Lacs.

14. Excise Duty Collected

In terms of excise duty collected on Sales during the FY 2015-16 Rs 1015.67 Lacs has been reduced from Total Revenue and shown separately as expenses.

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Mar 31, 2016

Diluted earnings per share is calculated on the same basis as basic earnings per share after adjusting for the effects of potential dilutive equity shares.

1. Estimated amount of contracts remaining to be executed and not provided for

a. On capital account - Nil (previous year: Nil)

b. On revenue account (Material contracts for purchase of Raw Materials, stores & service contracts) - 206.83 lacs (Previous Year: 17.46 Lacs)

(This information pertains to the non-resident shareholders, however dividend is remitted in INR to their NRO Accounts)

2. The company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company''s operations are solely situated in India. Hence there are no reportable segments as required by AS - 17 "Segment Reporting" prescribed under the Companies (Accounting Standards) Rules, 2006

3. The company has not entered into any non cancelable lease arrangement.

4. Related party disclosures:

Parties where control exists:

Related Party__ Relationship_

AIA Engineering Ltd. Holding Company

(Controlled By

__Mr. Bhadresh K. Shah - Director)_

Vee Connect Travels Pvt Ltd Associate

Key Managerial Personnel: Mr. Bhadresh K. Shah

5. Disclosure pursuant to Section 22 of "The Micro, Small & Medium Enterprises Development Act 2006" is as follows:

The company has identified micro and small enterprises to whom the company owes the dues which are outstanding as at the yearend:

Note: This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Figures for the previous reporting period have been recast in line with current year''s presentation.

7. As per revised Accounting Standard 15 "Employee Benefits", the disclosures of Employee Benefits as defined in the Accounting standard are given below:

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Mar 31, 2015

1. Estimated amount of contracts remaining to be executed and not provided for- a. On capital account - Rs.0.00 lacs (previous year: Rs. 0.07 lacs)

b. On revenue account (Material contracts for purchase of Raw Materials, stores & service contracts) - Rs. 17.46 lacs (Previous Year: Rs. 315.11Lacs)

(This information pertains to the non-resident shareholders, however dividend is remitted in INR to their NRO Accounts)

2. In the opinion of the Board, any of the assets other than fixed assets have a value on realization in the ordinary course of business atleast equal to the amount at which they are stated.

3. The company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company's operations are solely situated in India. Hence there are no reportable segments as required by AS - 17 "Segment Reporting" prescribed under the Companies (Accounting Standards) Rules, 2006

4. The company has not entered into any non cancelable lease arrangement.

5. Figures for the previous reporting period have been recast in line with current year's presentation.

6. As per revised Accounting Standard 15 "Employee Benefits", the disclosures of Employee Benefits as defined in the Accounting standard are given below:

The above disclosures are based on information certified by the independent actuary and relied upon by the auditors.

7. Consequent to the requirement of Schedule II of The Companies Act, 2013, the company has revised the estimated useful life of assets which has resulted in additional depreciation charges of Rs.50.44 lacs compared to the depreciation calculation based on erstwhile Companies Act and the same has been considered as an exceptional item.

8. Based on transitional provision provided in Note 7 (b) of Schedule II, the net book value (after retaining the residual value) in respect of those assets where remaining useful life is nil, amounting to Rs 12.27 lakhs (Net of Deferred Tax) has been charged to retained earnings.

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Mar 31, 2014

I. As required by section 227(3) of theAct, we report that:

a. We have obtained all the information and explanations, which to the best of our knowledge and belief were necessary for the purposes of our audit;

b. In our opinion, proper books of account as required by law have been kept by the company so far as appears from ourexamination ofthose books;

c. The Balance Sheet, Statement of Profit & Loss and Cash Flow Statement referred to in this report are in agreement with the books of account;

d. In our opinion, the Balance sheet, Statement of Profit & loss and Cash Flow statement generally comply with theAccounting Standards referred to in sub-section (3C) of section 211 of the CompaniesAct, 1956 read with the General Circular 15/2013 dated 13 September 2013 of the Ministry of Corporate Affairs in respect of Section 133 of the CompaniesAct, 2013.;

e. On the basis of written representations received from the directors, as on 31st March 2014 and taken on record by the Board of Directors, we report that none of the directors is disqualified as on 31st March 2014 from being appointed as a director in terms of clause (g) of sub-section (1) of section 274 of the CompaniesAct, 1956;

1. Share Capital

E TERMS/RIGHTS ATTACHED TO EQUITY SHARES

The Company has only one class of equity shares having par value of 10/- each. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the equity shares held by the share holder.

F The company has not allotted any shares pursuant to contract without payment being received in cash, nor by way of bonus shares nor bought back any shares during the immediately preceding five financial years.

1 Contingent liability to the extent not provided for

Rs. in Lacs

Particulars 31.03.2014 31.03.2013

In respect of claims against the company not acknowledged as debt 7.60 7.60

In respect of disputed Service Tax 116.64 116.64

In respect of disputed Custom duty* 556.37 -

In respect of disputed Income tax 1.22 1.22

* Excluding Penalty, Rs. 35 Lakhs has been deposited against the above.

2 Estimated amount of contracts remaining to be executed and not provided for- a. On capital account - Rs.0.07 lacs (previous year: Rs. 5.45 lacs)

b. On revenue account (Material contracts for purchase of Raw Materials, stores & service contracts) - Rs. 315.11 lacs (Previous Year: Rs.84.74Lacs)

4 In the opinion of the Board, any of the assets other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

5 The company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company''s operations are solely situated in India. Hence there are no reportable segments as required by AS - 17 "Segment Reporting" prescribed under the Companies (Accounting Standards) Rules, 2006

6 The company has not entered into any non cancelable lease arrangement.

7 Figures for the previous reporting period have been recast in line with current year''s presentation.

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Mar 31, 2013

1 Contingent liability to the extent not provided for

Rs. in Lacs

Particulars 31.03.2013 31.03.2012

In respect of claims against the company not acknowledged as debt 7.60 7.60

In respect of disputed Service Tax 116.64 116.64

In respect of disputed Income tax 1.22

2 Estimated amount of contracts remaining to be executed and not provided for- a. On capital account - Rs..5.45 lacs /- (previous year: Rs.. 3,72 lacs)

b. On revenue account (Material contracts for purchase of Raw Materials, stores & service contracts) - Rs.. 84.74 lacs (Previous Year : Rs..67.40 lacs)

3 In the opinion of the Board, any of the assets, other than fixed assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4 The company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company''s operations are solely situated in India. Hence there are no reportable segments as required by AS - 17 "Segment Reporting" prescribed under the Companies (Accounting Standards) Rules, 2006

5 The company has not entered into any non cancelable lease arrangement.

6 Figures for the previous reporting period have been recast in line with current year''s presentation.

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Mar 31, 2012

1 Contingent liability to the extent not provided for Rs. in Lacs

Particulars 31.03.2012 31.03.2011

In respect of disputed customs duty - 556.37

In respect of disputed Income Tax - 3.82

In respect of claims against the company not acknowledged as debt 7.60 7.60

In respect of disputed Service Tax 116.64 116.64

2 Estimated amount of contracts remaining to be executed and not provided for-

a. On capital account - Rs. 3.71/- lacs (previous year: Nil)

b. On revenue account (Material contracts for purchase of Raw Materials, stores & service contracts) - Rs. 674.00/- lacs

(This information pertains to the non-resident shareholders, however dividend is remitted in INR to their NRO Accounts)

3 In the opinion of the Board, all assets have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

4 The Company manufactures and deals with a single product, Alloy steel Cast Grinding Media. Also Company's operations are solely situated in India. Hence there are no reportable segments as required by AS - 17 "Segment Reporting" prescribed under the Companies (Accounting Standards) Rules, 2006

5 The Company has not entered into any non cancelable lease arrangement.

Note: This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

6 These financial statements have been prepared in accordance with Revised Schedule VI to the Companies Act, 1956, which has significant implications in presentation as compared to the presentation as per erstwhile Schedule VI. Figures for the previous reporting period have been recast in line with current year's presentation.

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Mar 31, 2011

Rs. in Lakhs

Particulars 31.3.2011 31.3.2010

1. Contingent liability to the extent not provided for in respect of

Disputed customs duty 556.37 556.37

Disputed Income Tax 3.82 3.82

Claims against the company not acknowledged as debt 7.60 7.60

Disputed Service Tax 116.64 Nil

2. Amount remitted in foreign currency on account of Dividend:

Number of non resident share holders 2 2

Number of shares held by them 59,880 59,880

Amount of dividend 1.20 1.20

Year for which dividend was remitted 2009-2010 2008-2009

(This information pertains to the non-resident shareholders by direct remittance)

3. The company manufactures and deals with a single product, Alloy Steel Cast Grinding Media. Also Company's operations are solely situated in India. Hence there are no reportable segments as required by AS - 17 "Segment Reporting" prescribed under the Companies (Accounting Standards) Rules, 2006.

4. The company has not entered into any non cancelable lease arrangement.

5. Figures for the previous year have been re-grouped and rearranged wherever necessary.

6. Schedules A to Q form an integral part of the accounts and have duly been authenticated.

7. Information pursuant to part IV of schedule VI to theCompanies Act 1956

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Mar 31, 2010

Rs. in Lakhs

Particulars 31.3.2010 31.3.2009

1. Contingent liability to the extent not provided for In respect of Disputed customs duty 556.37 556.37

Disputed Income Tax 3.82 6.04

Claims against the company not acknowledged as debt 7.60 7.60

2. Estimated amount of contracts remaining to be executed on account of capital expenditure to the extent not provided for Nil 150.48

3. Expenditure in foreign currency: Travelling expenses Nil 0.54

4. The value of import on CIF basis: Raw materials Nil Nil

Plant & Machinery Nil Nil

5. Amount remitted in foreign currency on account of Dividend:

Number of non resident share holders 2 2

Number of shares held by them 59,880 59,880

Amount of dividend 1.20 1.20

Year for which dividend was remitted 2008-2009 2007-2008

(This information pertains to the non-resident shareholders by direct remittance)

6. a. The method of determination of cost for the purpose of valuation of raw materials and stores and spares has been changed during the year from First - In - First Out method hitherto followed to weighted average cost method. Consequent to this change, the closing stock value of Raw materials and profit for the year is increase by Rs.3.67 lakhs. The consequential impact due to this change with regard to stores and spares is not ascertainable, however such impact on the profit for the year would not be material in the opinion of the management.

b. The basis of valuation of stores and spares has been changed from cost hither to followed to cost or net realizable value whichever is lower. However impact due to this change is nil, since these materials are not written down below cost in view of finished products in which these are inputs used in or in relation to the manufacture of final products which is realizable above cost.

7. The company manufactures and deals with a single product, Alloy Steel Cast Grinding Media. Also Companys operations are solely situated in India. Hence there are no reportable segments as required by AS - 17 "Segment Reporting" prescribed under the Companies (Accounting Standards) Rules, 2006.

8. The company has not entered into any non cancelable lease arrangement.

9. Related party disclosures: Rupees in Lakhs

Parties where control exists:

Related Party Relationship

Holding Company :

AIA Engineering Limited Controlled By Bhadresh K. Shah -Director

Key Managerial Personnel:

Bhadresh K. Shah Director

Pradip .R. Shah Director

9. Figures for the previous year have been re-grouped and rearranged wherever necessary.

10. Schedules A to Q form an integral part of the accounts and have duly been authenticated.

11. Information pursuant to part IV of schedule VI to the Companies Act 1956