3.16 Provisions

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. If the effect of the time value of money is material, provisions are determined by
discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the
time value of money and the risks specific to the liability. Where discounting is used, the increase in the
provision due to the passage of time is recognized as a finance cost.

3.17 Contingent liabilities & contingent assets

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that
may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present
obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is
made.

Contingent assets are not recognised in the financial statements. However, contingent assets are assessed
continually and if it is virtually certain that an inflow of economic benefits will arise, the asset and related
income are recognised in the period in which the change occurs.

3.18 Financial instruments

a. Recognition and Initial recognition

The Company recognizes financial assets and financial liabilities when it becomes a party to the
contractual provisions of the instrument. All financial assets and liabilities are recognized at fair value on
initial recognition, except for trade receivables which are initially measured at transaction price.
Transaction costs that are directly attributable to the acquisition or issues 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.

A financial asset or financial liability is initially measured at fair value plus, for an item not at fair value

through profit and loss (FVTPL), transaction costs that are directly attributable to its acquisition or issue.

b. Classification and Subsequent measurement
Financial assets

On initial recognition, a financial asset is classified as measured at

- amortised cost;

- FVTPL

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the
Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated
as at FVTPL:

- the asset is held within a business model whose objective is to hold assets 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.

All financial assets not classified as measured at amortised cost as described above are measured at FVTPL.
On initial recognition, the Company may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortised cost at FVTPL if doing so eliminates or significantly reduces an
accounting mismatch that would otherwise arise.

Financial assets: Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at
a portfolio level because this best reflects the way the business is managed and information is provided to
management. The information considered includes:

- the stated policies and objectives for the portfolio and the operation of those policies in practice. These
include whether management’s strategy focuses on earning contractual interest income, maintaining a
particular interest rate profile, matching the duration of the financial assets to the duration of any related
liabilities or expected cash outflows or realising cash flows through the sale of the assets;

- how the performance of the portfolio is evaluated and reported to the Company’s management;

- the risks that affect the performance of the business model (and the financial assets held within that
business model) and how those risks are managed;

- how managers of the business are compensated - e.g. whether compensation is based on the fair value
of the assets managed or the contractual cash flows collected; and

- the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales
and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not
considered as sales for this purpose, consistent with the Company’s continuing recognition of the assets.

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value
basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest
For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on initial
recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit risk associated
with the principal amount outstanding during a particular period of time and for other basic lending risks and
costs (e.g. liquidity risk and administrative costs), as well as a profit margin.

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company
considers the contractual terms of the instrument. This includes assessing whether the financial asset
contains a contractual term that could change the timing or amount of contractual cash flows such that it would
not meet this condition. In making this assessment, the Company considers:

- contingent events that would change the amount or timing of cash flows;

- terms that may adjust the contractual coupon rate, including variable interest rate features;

- prepayment and extension features; and

- terms that limit the Company’s claim to cash flows from specified assets (e.g. non- recourse features).

A prepayment feature is consistent with the solely payments of principal and interest criterion if the
prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount
outstanding, which may include reasonable additional compensation for early termination of the contract.
Additionally, for a financial asset acquired at a significant discount or premium to its contractual par amount, a
feature that permits or requires prepayment at an amount that substantially represents the contractual par
amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional
compensation for early termination) is treated as consistent with this criterion if the fair value of the
prepayment feature is insignificant at initial recognition.

Financial assets: Subsequent measurement and gains and losses

Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses,
including any interest or dividend income, are recognised in profit or loss.

Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the
effective interest method. The amortised cost is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised in profit or loss. Any gain or loss on derecognition
is recognised in profit or loss.

Financial liabilities: Classification, Subsequent measurement and gains and losses

Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is classified as at
FVTPL if it is classified as held- for- trading, or it is a derivative or it is designated as such on initial recognition.
Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest
expense, are recognised in profit or loss. Other financial liabilities are subsequently measured at amortised
cost using the effective interest method. Interest expense and foreign exchange gains and losses are
recognised in profit or loss. Any gain or loss on derecognition is also recognised in profit or loss.

c. 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 rights to receive the contractual cash flows in a transaction in which
substantially all of the risks and rewards of ownership of the financial asset 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.

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
the new financial liability with modified terms is recognised in profit

d. 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 to realise the asset and settle the liability simultaneously.

e. Impairment

The Company recognises loss allowances for expected credit losses on financial assets measured at
amortised cost;

At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt
securities at fair value through other comprehensive income (FVOCI) are credit impaired. A financial asset is
‘credit- impaired’ when one or more events that have a detrimental impact on the estimated future cash flows of
the financial asset have occurred.

Evidence that a financial asset is credit- impaired includes the following observable data:

- significant financial difficulty of the borrower or issuer;

- the restructuring of a loan or advance by the Company on terms that the Company would not consider
otherwise;

- it is probable that the borrower will enter bankruptcy or other financial reorganisation; or

- the disappearance of an active market for a security because of financial difficulties.

The Company measures loss allowances at an amount equal to lifetime expected credit losses, except for the
following, which are measured as 12 month expected credit losses:

- debt securities that are determined to have low credit risk at the reporting date; and

- other debt securities and bank balances for which credit risk (i.e. the risk of default occurring over the
expected life of the financial instrument) has not increased significantly since initial recognition.

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit
losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over
the expected life of a financial instrument.

12-month expected credit losses are the portion of expected credit losses that result from default events that
are possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument
is less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the maximum
contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial
recognition and when estimating expected credit losses, the Company considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both quantitative and
qualitative information and analysis, based on the Company’s historical experience and informed credit
assessment and including forward- looking information.

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the Company in
accordance with the contract and the cash flows that the Company expects to receive).

Presentation of allowance for expected credit losses in the balance sheet

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount
of the assets.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is
no realistic prospect of recovery. This is generally the case when the Company determines that the trade
receivable does not have assets or sources of income that could generate sufficient cash flows to repay the
amounts subject to the write- off. However, financial assets that are written off could still be subject to
enforcement activities in order to comply with the Company’s procedures for recovery of amounts due.

i) This is an all-inclusive heading, which incorporates current assets that do not fit into any other asset
categories as stated in the above.

ii) No advances were paid to directors or other officers of the company or any of them either severally or jointly
with any other persons or advances to firms or private companies respectively in which any director is a
partner or a director or a member.

iii) The above current loans of Rs. 62.01 lakhs (Rs. 78.89 in March 25) represents the rental deposits kept
with the land lords against the leased premises and earnest money deposits kept with the Government
authorities. Further all the deposits are secured and considered good.

iv) As on March 31, 2026 the Company has ourstanding supplier and capital advances amounting to Rs.
6301.92 Lakhs. This Includes advances aggregating to Rs. 5995.33 Lakhs Paid to Three Major Parties for
Execution of Projects.

vi) The prepaid expenses of Rs.26.16 lakhs (March 31,2025 Rs.47.42 lakhs) represents the expenses like BG
commission charges, loan processing charges Insurance and licence renewal charges etc...

(b) Terms / rights attached to the equity shares

Equity shares of the Company have a par value of ? 10 per share. Each holder of equity shares is entitled to
one vote per share. The Company declares and pays dividend in Indian rupees. In the event of liquidation of
the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after
distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.

g) Terms and conditions of transactions with related parties:

The transactions with related parties are made on terms equivalent to those that prevail in arm’s length
transactions. Outstanding balances at the year-end are unsecured and interest free.

30 Segment Information

Ind AS 108 “Operating Segment” (“Ind AS 108”) establishes standards for the way that public business
enterprises report information about operating and geographical segments and related disclosures about
products and services, geographic areas, and major customers. Based on the “management approach” as
defined in Ind AS 108, Operating segments and geographical segments are to be reported in a manner
consistent with the internal reporting provided to the Chief Operating Decision Maker (CODM).The CODM
evaluates the Company’s performance and allocates resources on overall basis. The Company’s sole
operating segment is therefore Steel Products and the sole geographical segment is ‘India”. Accordingly, there
are no additional disclosure to be provided under Ind AS 108, other than those already provided in the financial
statements.

31 Employee benefits

I) Defined contribution plan

The Company’s contribution to Provident Fund, superannuation Fund and other funds recognised in the
Statement of Profit or Loss under the head Employee Benefits Expense.

ii) Defined benefit plan
Gratuity

"The Company provides its employees with benefits under a defined benefit plan, referred to as the “Gratuity
Plan". The Gratuity Plan entitles an employee, who has rendered at least five years of continuous service, to
receive 15 days salary for each year of completed service (service of six months and above is rounded off as
one year) at the time of retirement/exit, restricted to a sum of ? 20,00,000.

The following tables summarize the components of net benefit expense recognised in the statement of profit
or loss and the amounts recognised in the Balance Sheet for the plan:

33 Dues to Micro, small and medium enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which
recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the
Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect
of the amounts payable to such enterprises as at March 31, 2026 has been made in the financial statements based on
information received and available with the Company. Further in view of the management, the impact of interest, if any, that
may be payable in accordance with the provisions of the Micro, Small and Medium Enterprises Development Act, 2006
(‘The MSMED Act') is not expected to be material. The Company has not received any claim for interest from any supplier.

34 Earnings per share

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 holders 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."

The following table sets out the computation of basic and diluted earnings per share:

35 Financial risk management objectives and policies

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

The Company is exposed to Credit risk and liquidity risk. The Company’s senior management oversees the
management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks,
which are summarized below.

a) Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract,
leading to a financial loss. The credit risk arises principally from its operating activities (primarily trade receivables)
and from its investing activities, including deposits with banks and financial institutions and other financial
instruments.

Credit risk is controlled by analysing credit limits and creditworthiness of customers on a continuous basis to whom
credit has been granted after obtaining necessary approvals for credit. The collection from the trade receivables are
monitored on a continuous basis by the receivables team.

The Company establishes an allowance for credit loss that represents its estimate of expected losses in respect of
trade and other receivables based on the past and the recent collection trend. The maximum exposure to credit risk
as at reporting date is primarily from trade receivables. The movement in allowance for credit loss in respect of trade
and other receivables during the year was as follows:

Credit risk on cash and cash equivalent is limited as the Company generally transacts with banks and
financial institutions with high credit ratings assigned by international and domestic credit rating agencies.
Liquidity Risk

The Company's objective is to maintain a balance between continuity of funding and flexibility through the
use of bank deposits and loans.

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

36 Capital management

The Company’s policy is to maintain a stable capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business. Management monitors capital on the basis of
return on capital employed as well as the debt to total equity ratio. For the purpose of debt to total equity ratio,
debt considered is long-term and short-term borrowings. Total equity comprise of issued share capital and all
other equity reserves.

37 CSR (Corporate Social Responsibility)

Section 135 of the Companies Act, 2013 and Rules made thereunder prescribe that every company having a
networth of Rs.500 cr or more, or turnover of Rs.1000 cr or more or a netprofit of Rs.5 cr or more during any
financial year shall ensure that the company spends, in every financial year, atleast 2% of the average net
profits made during the three immediately preceeding finacial years, in pursuance of its corporate social

39 Explanation on transition to Ind AS

As stated in Note 2.1, these are the standalone financial statements prepared in accordance with Ind AS for the year
ended March 31,2026. The accounting policies set out in Note 3 have been applied in preparing these financial
statements for the year ended March 31,2026 and in presenting the comparative information for the year ended
March 31,2025.

40 Other Statutory Information

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

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

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

iv) The company has not traded or invested in Crypto currency or virtual currency during the financial year.

v) The company has not been declared as willful defaulter by any bank or financial institution or Govt. or any Govt.
authority

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

a) Directly or indirectly lend or invested in other person or entities idenfied in any manner whatsoever by or on behalf
of the company (ultimate beneficiaries) or

b) Provide any guarnatee, security or the like to or any behalf of the ultimate beneficaries.

vii) 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 writting or otherwise) that the group shall:

a) Directly or indirectly lend or invested in other person or entities idenfied in any manner whatsoever by or on behalf
of the funding party (ultimate beneficiaries) or

b) Provide any guarnatee, security or the like to or any behalf of the ultimate beneficaries.

viii) The company has not any such transaction which is not recorded in the books of account that has been surndered
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 relavent provisions of the Income Tax Act, 1961).

ix) Title deeds of Immovable Property not held in name of the Company-NA

x) The Company shall disclose as to whether the fair value of investment property (as measured for disclosure
purposes in the financial statements) is based on the valuation by a registered valuer as defined under rule 2 of
Companies (Registered Valuers and Valuation) Rules, 2017.

41 Recent Indian Accounting Standards

Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards. There is no
such notification which would have been applicable from April 1,2021.

42 Prior year comparatives

The figures of the previous year have been regrouped/reclassified, where necessary, to conform with the current
year’s classification.