2.13 Provisions and Contingent Liabilities

Provisions are recognized when the Company has a present legal or constructive obligation. As a result of
past events, it is probable that an outflow of resources will be required to settle the obligation and the amount
can be reliably estimated. Provisions are not recognized for future operating losses.

Provisions are measured at the present value of management’s best estimate of the expenditure required to
settle the present obligation at the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to the passage of time is recognized as interest
expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their
existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events not
wholly within the control of the Company or where any present obligation cannot be measured in terms of
future outflow of resources or where a reliable estimate of the obligation cannot be made.

2.14 Employee Benefits
Short Term Obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly
within 12 months after the end of the period in which the employees render the related services are
recognized in respect of employees’ services up to the end of the reporting period and are measured at the
amounts expected to be paid when the liabilities are settled.

Post-Employment Obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund.

Gratuity Obligations

The liability or asset recognized in the Balance Sheet in respect of defined benefit gratuity plan is the present
value of the defined benefit obligation at the end of the reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by actuaries using the projected unit credit method.

The present value of the defined benefit obligation is determined by discounting the estimated future cash
outflows by reference to market yields at the end of the reporting period on government bonds that have
terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the net balance of the defined benefit
obligation and the fair value of plan assets. This cost is included in employee benefit expense in the
Statement of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments and changes in actuarial
assumptions are recognized in the period in which they occur, directly in other comprehensive income. They
are included in retained earnings in the Statement of Changes in Equity and in the Balance Sheet. Gratuity
liability of employees is not funded.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund, etc., are charged to the Statement of Profit and Loss as
incurred.

2.15 Borrowing Costs

Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds.
All borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method
except to the extent attributable to qualifying property, plant and equipment (PPE) which are capitalized to
the cost of the related assets. A qualifying PPE is an asset that necessarily takes a substantial period of time
to get ready for its intended use or sale. Borrowing cost also includes exchange differences to the extent
considered as an adjustment to the borrowing costs.

2.16 Earnings Per Share

Basic Earnings Per Share

Basic earnings per share is calculated by dividing:

• the profit attributable to owners of the Company by

• average number of equity shares outstanding during the financial year, adjusted for bonus elements in
equity shares issued during the year and excluding treasury shares.

Diluted Earnings Per Share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take
into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity
shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the
conversion of all dilutive potential equity shares.

2.17 Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds its recoverable Value. An
impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as
impaired. The impairment loss recognized in earlier accounting period is reversed if there has been a
change in the estimate of recoverable amount.

2.18 Leases

As a Lessee

The Company’s lease asset classes primarily consist of leases for buildings taken on lease for operating its
branch offices, if any. The Company assesses whether a contract contains a lease, at inception of a contract.
At the date of commencement of the lease, the Company recognizes a right-of-use asset (“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 low value leases,
the Company recognizes the lease payments as an operating expense on a straight-line basis over the term
of the lease.

Right-of-use assets are depreciated from the commencement date on a straight-line basis over the lease
term. The lease liability is initially measured at amortized cost at the present value of the future lease
payments, if any.

During the year, Company has only short-term and low value leases, therefore the Company recognizes the
lease payments as an operating expense on a straight-line basis over the term of the lease.

As a Lessor

Lease income from operating leases where the Company is a lessor is recognised 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. The respective leased assets are included in the
balance sheet based on their nature, if any.

During the year, Company has only short-term and low value leases receipt, therefore the Company
recognizes the lease receipts as an operating income in profit & loss account.

2.19 Government Grants

Government grants are recognized on systematic basis when there is reasonable certainty of realization of the
same. Revenue grants including subsidy / rebates are credited to the Statement of Profit and Loss under “Other
Income" or deducted from the related expenses for the period to which these are related. Grants which are
meant for purchase, construction or otherwise acquired through non-current assets are recognized as deferred
income and disclosed under non-current liabilities and transferred to the Statement of Profit and Loss on a
systematic basis over the useful life of the respective asset. Grants relating to non-depreciable assets are
transferred to the Statement of Profit and Loss over the periods that bear the cost of meeting the obligations
related to such grants.

2.20 Cash and Cash Equivalents

Cash and cash equivalents include cash and cheques in hand, bank balances, demand deposits with banks
and other short term highly liquid investments that are really convertible to known amounts of cash and which
are subject to an insignificant risk of changes in value where original maturity is three months or less.

2.21 Cash Flow Statement

Cash flows are reported using the indirect method whereby the profit before tax is adjusted for effect of the
transactions of a non cash nature, any deferrals or accruals of past and future operating cash receipts or
payments and items of income or expenses associated with investing or financing cash flows. The cash flows
from operating, investing and financing activities of the Company are segregated.

2.22 Share Capital

Shares are classified as equity. Incremental costs directly attributable to the issuance of new ordinary shares
and share options are recognized as a deduction from equity, net of any tax effects.

2.23 Cash Dividend

The Company recognizes a liability to make cash or non-cash distributions to equity shareholders of the
Company when the distribution is authorized and the distribution is no longer at the discretion of the Company.
As per the Companies Act, 2013, a distribution is authorized when it is approved by the shareholders. A
corresponding amount is recognized directly in equity.

12.1 There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as at
March 31,2025.

*Includes FDR of ' 284.11 Lakhs against various Bank Guarantees issued and ' 5.71 Lakhs as collateral security
at IDBI Bank for Solar Power Plant Term Loan & ' 204.51 Lakhs against the FD OD Limit of IDBI Bank as at
March 31,2025.

* Includes FDR of ' 193.18 Lakhs against various Bank Guarantees issued and ' 5.40 Lakhs as collateral security
IDBI Bank for Solar Power Plant Term Loan as at March 31,2024.

financial year 2017-18.

c) GENERAL RESERVE

Pursuant to the provisions of the Companies Act, 1956, the Company has transferred a portion of its net
profit to General Reserve before declaration of dividend. Mandatory transfer to General Reserve is not
required under the Companies Act.

d) RETAINED EARNINGS

Retained Earnings are the profits that the Company has earned till date, less any transfer to general
reserve, dividends or other distribution paid to shareholders.

e) FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME [FVTOCI] RESERVE

The Company transfers actuarial gain / (loss) arising at the time of valuation defined benefit obligation to
"Actuarial Gain / Loss" component of Other Comprehensive Income (OCI).

The Company has elected to recognize changes in the fair value of certain investments in Other
Comprehensive Income (OCI). These changes are accumulated within the FVTOCI.

*Litigation pertaining to Custom Tariff / Rate classification at Custom Department on interpretation of the respective law
and rules thereunder. The Company has filed appeals before Commissioner of Custom Appeals, Ahmedabad, against the
custom demand and according to lawyer's opinion, the Company has sufficient merit to succeed in due course of
litigation. The Company has paid duty under protest for ' 41.30 Lakhs. The Company has not provided provision for the
above since the company's management does not consider that there is any probable loss.

**Litigation pertaining to Income tax of ' 285.87 lac, the matters are in CIT (Appeal) and management is of the opinion
that, Company has filed appeals before Income Tax CIT (Appeal), against the Assessing officer's Order and according to
lawyer's opinion, Company has sufficient merit to succeed in due course of litigation. The Company has not provided
provision of expenses for the above since as the company's management does not consider that there is any probable
loss.

***Litigation pertaining to Export of goods made out of item imported under notification 78/2017-custom dated 13 October
2017, on payment of applicable IGST, further Company has claimed refund of IGST paid on Zero rated supplies made on
payment of IGST. The Company has challenged the Show Cause Notice as well as demand order before Honorable High
Court of Gujarat. Honorable High Court of Gujarat has granted Ad-interim relief against recovery and directed concerned
authority not to make any coercive recovery from the Company. According to lawyer's opinion, the Company has sufficient
merit to succeed in due course of litigation. The Company has not provided provision for the above since the company's
management does not consider that there is any probable loss.

36.SEGMENT REPORTING

In the opinion of the management, the Company is mainly engaged in a single segment of manufacturing and trading of
ferrous & non-ferrous metals and all other activities revolve around the main activity, therefore there are no separate
reportable segments as per IND AS 108 "Segment Reporting".

37. POST RETIREMENT EMPLOYEE BENEFITS

The disclosures required under Indian Accounting Standard 19 on "Employee Benefits" are given below:

b) Defined Benefit Plans

In accordance with Indian Accounting Standard 19, actuarial valuation was done in respect of the aforesaid defined
benefit plan based on the following assumptions.

Economic Assumptions

The discount rate and salary increases assumed are the key financial assumptions and should be considered
together. It is the difference or gap between these rates which is more important than the individual rates in isolation.

Discount Rate

The discounting rate is based on the gross redemption yield on medium to long term risk free investments. The
estimated term of the benefits / obligations works out to zero years. For the current valuation a discount rate of 7.25%
p.a. (Previous Year 7.50% p.a.) compound has been used.

Salary Escalation Rate

The salary escalation rate usually consists of at least three components, viz. regular increments, price inflation and
promotional increases. In addition to this any commitments by the management regarding future salary increases
and the Company's philosophy towards employee remuneration are also to be taken into account. Again a long-term
view as to trend in salary increase rates has to be taken rather than be guided by the escalation rates experienced in

38. CORPORATE SOCIAL RESPONSIBILITY

Pursuant to the provisions of Section 135(5) of the Companies Act, 2013 (the Act), the Company has formed
its Corporate Social Responsibility (CSR) Committee. As per the relevant provisions of the Act read with Rule
2(1)(f) of the Companies (Corporate Social Responsibility Policy) Rules, 2014, the Company is required to
spend at least 2% of the average net profits (determined under Section 198 of the Companies Act, 2013)
made during the immediately three preceding financial years. The Company has incurred the following
expenditure on CSR activities during the Financial Year 2024-25:

42. FINANCIAL INSTRUMENTS - ACCOUNTING CLASSIFICATIONS AND FAIR VALUE MEASUREMENTS

The fair values of the financial 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 a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

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

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counter party. Based on the
evaluation, allowances are taken to account for the expected losses of these receivables.

The Company uses the following hierarchy for determining and disclosing the fair values 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 inputs which have a significant effects on the recorded fair value are
observable, either directly or indirectly.

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

During the reporting periods ended March 31,2025 and March 31,2024, there were no transfers between
Level 1 and Level 2 fair value measurements.

The carrying amounts of financial assets and financial liabilities measured at amortized cost in the financial
statements are a reasonable approximation of their fair values since the Group does not anticipate that the
carrying amounts would be significantly different from the values that would eventually be received or
settled.

43. During the year, interest cost of ' 12.45 (Previous Year ? NIL) has been capitalized by way of addition to
Plant and Equipments up to the date of put to use of assets.

44. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's activities are exposed to variety of financial risks. The key financial risks include market
risk, credit risk and liquidity risk. The Company's focus is to foresee the unpredictability of financial markets
and seek to minimize potential adverse effects on its financial performance. The Board of Directors
reviews and approves policies for managing risks. The risks are governed by appropriate policies and
procedures and accordingly financial risks are identified, measured and managed in accordance with the
Company's policies and risk objectives.

MARKET RISK

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a
change in the price of a financial instrument. The value of a financial instrument may 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 loan
borrowings.

The Company manages market risk through it's treasury department, which evaluates and exercises
independent control over the entire process of market risk management. The treasury department
recommends risk management objectives and policies, which are approved by the Senior Management.
The activities of this department include management of cash resources, implementing hedging
strategies for foreign currency exposures, borrowing strategies and ensuring compliance with market risk
limits and policies.

Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate
because of changes in market interest rates. In order to optimize the company's position with regards to
the interest income and interest expenses and to manage the interest rate risk, treasury performs a
comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and
floating rate financial instruments in its total portfolio.

Refer Note 18 and 21 for interest rate profile of the Company's interest-bearing financial instrument at the
reporting date.

Other Price Risk

The Company is not exposed to any kind of price risk arising as at March 31,2025.

CREDIT RISK

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To
manage this, the Company periodically assesses the financial reliability of customers, taking into account the
financial condition, current economic trends and analysis of historical bad debts and ageing of accounts
receivable (Refer note no. 10.2). Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a
significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there
is significant increase in credit risk, the company compares the risk of a default occurring on the asset at the
reporting date with the risk of default on 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 counterparty,

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's
ability to mere its obligation.

(iv) Significant increase in credit risk on other financial instruments of the same counterparty, and

(v) Significant changes in the value of the collateral supporting the obligation or in the quality of third-party
guarantees or credit enhancements.

Financial assets are written off when there is no reasonable expectation of recovery, such as a debtor failing to
engage in a repayment plan with the Company. The Company categorizes a loan or receivable for write off when a
debtor fails to make contractual payments greater than 2 years past due. Where loans or receivables have been
written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due.
Where recoveries are made, these are recognised in profit or loss.

LIQUIDITY RISK

Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at
reasonable price. The company's treasury department is responsible for liquidity, funding as well as settlement
management. In addition, processes and policies related to such risks are overseen by the senior management.
Management monitors the company's net liquidity position through rolling forecast on the basis of expected cash
flows.

Capital Management

For the purposes of the Company capital management, capital includes issued capital and all other equity
reserves. The primary objective of the Company Capital Management is to maximize shareholders' value.
The Company manages its capital structure and makes adjustments in the light of changes in economic
environment and the requirement of the financial covenants.

45. In the opinion of the Board of Director, current assets, non-current loans and advances are realizable in the
ordinary course of business, at the value at which they are stated. The provision for all known liabilities are
adequate and not in excess of the amount reasonably necessary.

46. The Company has incurred premium expenses of ' 5.11 Lakhs during the year ( '8.88 Lakhs during previous
year 2023-24) on Key Man Insurance Policy of Managing Director, which is included in Insurance Expenses.

47. Sale of Services contain total management service of steel production on behalf of JSW Steel Limited, Dolvi
Plant. This service covers the feeding of raw materials viz; CaFeAl, Pure Calcium Cored Wire, Ferro Boron
Cored Wire and Ferro Titanium Cored Wire products and manpower required for the same during production
of liquid steel.

48. During the financial year 2024-25, Pursuant to approval of the members through Extraordinary General
meeting by way of electronic means on April 11,2024, The company issued 97,98,432 Equity Shares on a
preferential allotment basis at an issue price of ' 53.58 aggregating to ' 52,49,99,986.56 to JFE Shoji India
Private Limited (Non-Promoter Category). The said amount of ' 52,49,99,986.56 were fully received on 16
April, 2024 and allotment of 97,98,432 Equity Shares was completed and said equity shares were credited in
demat of JFE Shoji India Private Limited on completion of corporate action on 10 May, 2024.

49. During the year, the Company has been sanctioned working capital limits at points of time during the year, from
banks or financial institutions on the basis of security of current assets. The quarterly returns and statements
comprising (stock statements, book debt statements) filed by the Company with such banks or financial
institutions are in agreement with the audited books of account of the Company, of the respective quarters,
except for the following:

50. The Company has neither made any investments nor has it given loans or provided guarantee to promoters,
directors, KMPs and the related parties during the year, except loans of ' 3.05 lacs given to wholly owned
subsidiary company-Arfin Titanium And Speciality Alloys Limited.

51. During the year, borrowed term loans were applied for the purpose for which the loans were obtained. During
the year, no funds raised on short-term basis have been used for long-term purposes by the Company.

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

53. The new Wholly Owned Subsidiary (WOS) company, Arfin Titanium And Speciality Alloys Limited is
incorporated under the Companies Act, 2013 on 14th January, 2025.

54. During the year, the Company has not made any transactions with companies struck off under section 248 of
the Companies Act, 2013.

56. The Company has not traded or invested in crypto currency or virtual currency during the year.

57. Balance of Trade receivables, Trade payables, loans and advances are subject to confirmation from the
respective parties.

58. Previous year’s figures have been regrouped, reclassified and rearranged wherever considered necessary to
confirm to current year presentation.

As per our Report of even date attached

For Raman M. Jain & Co., For and on Behalf of Board of Directors

Chartered Accountants

Firm Registration No.: 113290W

Mahendra R. Shah Jatin M. Shah

(Chairman & Whole (Managing Director)

Time Director)

Raman M. Jain

^(Partner) Pushpa M. Shah Shubham P. Jain

^(Me^mbe^{rship N}o.^{: 045790)} (Executive Director) (Chief Financial Officer)

UDIN: 25045790BMLLZV7347

^{Place: Chh}a^tral Natanya Kasaudhan

^Date: ^23-05-2025 (Company Secretary)