2.13 PROVISIONS AND CONTINGENT LIABILITIES
a) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past
event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation
and a reliable estimate can be made of the amount of the obligation. When the Company expects some or ail of a
provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a
separate asset but only when the reimbursement is virtually certain. The expense relating to a provision is presented
in the Statement of Profit and Loss net of any reimbursement Provisions are not recognised for future operating
losses.

Provisions are measured atthe present value of management's best estimate of the expenditure required tosettlethe
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 ofti me is recognised as interest expense

b) Contingent Liability

Contingent liabilities are not provided for and if material, are disclosed by way of notes to accounts. Contingent
Liability is disclosed in the case of:

i. A present obligation arising from the past events, when it is not probable that an outflow of resources will be
required to settle the obligation;

ii Apresent obligation arising fromthe past events, when no reliable estimate is possible;

iii. A possible obligation arisingfromthe past events, unless the probability ofoutflow of resources is remote

2.14 EARNING PER SHARE
Basic Earnings PerShare

Basic Earnings Per Share is calculated by dividing the profit attributable to owners of the Company by the weighted
average number of equity shares outstanding during the period. Earnings considered in ascertaining the company’s
earnings per share is the net profit for the period after deducting preference dividends, if any. and any attributable
distribution tax thereto for the period

2.15 CASHAND CASH EQUIVALENTS

Cash and Cash Equivalents comprise cash and deposits with banks. The Company considers all highly liquid investments
with a remaining maturity at the date of purchase of three months or less and that are readily convertible to known of cash to
be cash equivalents.

For the purpose of presentation in the statement of cash flows, cash and cash equivalents includes cash on hand, deposits
held at call with financial institutions and other shortterm, highly liquid investments with original maturities of three months
or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in
value.

2.16 STATEMENT OF CASH FLOWS

Cash Flows are reported using the Indirect method, whereby profit before tax is adjusted for the effects of transactions of a
non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or
expenses associated with investing or financing Cash Rows. The cash flows from operating, investing arid financing
activitiesoftheCompany are segregated.

Cash and cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances,
demand deposits with banks where the original maturity is three months or less and other short term highly liquid
investments net of bank overdrafts which are repayable on demand as these form an Integral part of the Company's cash
management.

2.17 DIVIDEND

The Company recognises a liability for dividends to equity holders of the Company when the dividend is authorised and the
dividend is no longer at the discretion of the Company. As per the corporate laws in India, a dividend is authorised when it is
approved by the shareholders. Acorresponding amount is recognised directly in equity.

2.18 ROUNDINGOFF

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs, unless otherwise
stated.

2.19 EVENTS OCCURING AFTERTHE REPORTING DATE

Adjusting events (that provides evidence of condition that existed at the balance sheet date) occurring after the balance
sheet date are recognized in the financial statements Material non adjusting events (that are inductive of conditions that
arose subsequent to the balance sheet date) occurring after the balance sheet date that represents material change and
commitmentaffectingthefinancial position aredisclosed in the Directors' Report.

2.20 EXCEPTIONAL ITEMS

Certain occasions, the size, type or incidence of an item of income or expense, pertaining to the ordinary activities of the
Company is such that its disclosure improves the understanding of the performance of the Company, such Income or
expense is classified as an exceptional item and accordingly, disclosed in the notes accompanying to the financial
statements.

2.21 OPERATING CYCLE

All assets and liabilities have been classified as current or non-current as per each Company's normal operating cycle and
othercriteria set out in the Schedule III to the Act

2.22 SEGMENTREPORTING

The company has single business segment viz. Manufactunng & Trading of Stainless Steel & Allied Products, therefore in
the context of I nd AS 108 disclosure of segment is notapplicable.

2.23 LEASES

At the inception it is assessed, whether a contract is a lease or contains a lease. Acontract is a lease or contains a lease if it
conveys the right to control the use of an identified asset, fora period of time, in exchange for consideration.

To assess whether a contract conveys the right to control the use of an identified asset, company assesses whether the
contract involves the use of an identified asset Use may be specified explicitly or implicitly.

- Use should be physicallydistinct orrepresent substantially all of the capacity of aphysically distinct asset.

- If the supplier has a substantive substitution right, then the assetis not identified.

- Company has the right to obtain substantially all of the economic benefits from use of the asset throughout the period
of use

- Company has the right to direct the use of the asset.

- In cases where the usage of the assetis predetermined the right to direct the use of the asset is determined when the
company has the right to use the asset or the company designed the asset In a way that predetermines how and for
what purpose it will be used.

- At the commencement or modification of a contract, that contains a lease component, company allocates the
consideration In the contract, to each lease component, on the basis of its relative standalone prices. For leases of
property, It is elected not to separate nonlease components and account for the lease and non-lease components as
a single I ease com ponent

a) Company as a Lessee

Company recognizes a right-of-use asset and a lease liability at the lease commencement date.
Right-of-useasset(ROU):

The right-of-use asset is initially measured at cost Cost comprises of the initial amount of the lease liability adjusted
for any lease payments made at or before the commencement date, any Initial direct costs incurred by the lessee, an
estimate of oosts to dismantle and remove the underlying asset or to restore the underlying asset or the site on which
Itis located less any lease incentives received

Right-of-use asset is depredated using straightline method from the commencement date to the end of the lease
term. If the lease transfers the ownership of the underlying asset to the company at the end of the lease term or the
cost of the right-of-use asset reflects company will exercise the purchase option. ROU will be depreciated over the
useful life of the underlying asset, which is determined based on the same basis as property, plant and equipment.
Lease liability:

Lease liability is initially measured at the present value of lease payments that are not paid at the commencement
date Discounting is done using the implicit interest rate in the lease, if that rate cannot be readily determined, then
using company's incremental borrowing rate. Incremental borrowing rate is determined based on entity's borrowing
rate adjusted for terms of the lease and type of the asset leased.

Lease payments included in the measurement of the lease liability oomprises of fixed payments (including in
substance fixed payments), variable lease payments that depends on an index ora rate, initially measured using the
index or rate at the commencement date, amount expected to be payable under a residual value guarantee, the
exercise price under a purchase option that the company is reasonably oertain to exercise, lease payments in an
optional renewal period if the company is reasonably certain to exercise an extension option, and penalties for early
termination of a lease unless thecompany is reasonably certain not to terminate early.

Lease liability is measured at amortised cost using the effective interest method. Lease liability is re-measured when
there is a change in the lease term, a change in its assessment of whether it will exercise a purchase, extension or
termination option or a revised in-substance fixed lease payment, a change in the amounts expected to be payable
under a residual value guarantee and a change in futu re lease payments arising from change in an index or rate.

When the lease liability is re-measured corresponding adjustment is made to the carrying amount of the rightof- use
asset. If the carrying amount ofthe right-of-use asset has been reducedtozero itwill be recorded in statement of profit
and loss.

Company has elected not to recognise right-of-use assets and lease liabilities for short term leases The lease
payments associated with these leases are recognised as an expense on a straight-line basis over thelease term,
b) Company as a Lessor

Leases in which the Company does nottransfer substantially all the risks and rewards of ownership of an asset are
classified as operating leases. Rental income from operating lease is recognised on a straight-line basis over the
term of therelevant lease Where the rentals are structured solely to increase in line with expected general inflation to
compensate for the Company's expected inflationary cost increases, such increases are recognised in the year in
which such benefits aocrue.

Leases are classified as Finance leases when substantially all ofthe risks and rewards of ownership transferfrom the
Company to the lessee. Amounts due from lessees under finance leases are recorded as receivables at the
Company's net investment in the leases. Finance lease income is allocated to accounting periods so as to reflect a
constant periodic rate of return on the net investment outstanding in respect ofthe lease.

2.24 STANDARDS ISSUED BUT NOT YET EFFECTIVE
Indian Accouting Standards:

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

Schedule III ofthe CompaniesAct 2013:

On March 24, 2021, the Ministry of Corporate Affairs ( MCA”) through a notification, amended Schedule III of the
CompaniesAct. 2013. The amendments revise Division I. II and III of Schedule III and areapplicable from April 1,2021.

Key amendments relating to Division II which relate to companies whose financial statements are required to comply with
Companies (Indian Accounting Standards) Rules 2015are:

Balance Sheet:

• Lease liabilities should be separately disclosed under the head ‘financial liabilities’, duly distinguished as current or
non current

• Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to
prior period errors and restated balances at the beginning ofthe currentreportingperiod,

• Specified formatfordisclosure of shareholding of promoters.

• Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible
asset under development.

• If a company has not used funds for the specific purpose for which it was borrowed from banks and financial
Institutions, then disclosure of details of where ithas been used.

• Specific disclosure under 'additional regulatory requirement' such as compliance with approved schemes of
arrangements, compliance with number of layers of companies, title deeds of immovable property not held in name of
company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties, details
of benami property held etc.

Statement of prof It and loss:

• Additional disclosures relating to Corporate Social Responsibility (CSR),undisclosed income and crypto or virtual
currency specified under the head ‘additional information^- in the notes forming part of the standalone financial
statements

The amendments are extensive and the Company will evaluate the same toglve effect tothemas required by law.

Nature and Purpose of the Reserves: -
Capital Share Redemption Reserve

Capital redemption reserve is created due to redemption of preference share capital in earlier years as per the requirement of the Companies
Act,

Securities Premium

Security premium reserve is created when shares are issue at premium.The reserve is utilised in accordance with the provisions of the
companies Act, 2013.

Capital Reserve

The Capital reserve was created to recognised the gain due to CDR scheme to the extent of Rs.44.51 cr approved by RCIL as on 31st March
2003 and gain due to increse in the value of Tangible asstes of Rs.74.13 cr as on 31st March 2015 and same was transferred to retained
earning.

General Reserve

The Company has transferred a portion of Net Profits of the Company before declanng Dividends to General Reserve pursuant to the earlier
provision of The Companies Act, 1956. Mandatory tran sf er to General Reserve, is not required under the Companies Act, 2013.

Notes

A Loans RepayableonDemand/TermLoanfBanks)

1 Kotak Mahindra Bank Ltd & DNS Bank Ltd has sanctioned Cash Credit fadlities against the security by way of first pari passu charge on
the fixed assets of the company, hypothecation of stock and book debts of the company and perse nal guarantees of some of the p romoter
directors of the Company, This accounts have become Nor Performing Assets before & as on date of balance sheet and company has
received recall notices from the banks. Kotak Mahindra Bank Limited has taken the possession of the factory premises of the company
situated at Zenith Compound, Village Vihari, Kahalapur District, Raigad Kotak Mahindra Bank Ltd and India Steel Works Limited have
duly signed the Loan ConsentAgreement as full and final settlement on 30th Sept.2024.

2 Kotak Mahindra Bank Ltd has sanctioned Letter of Credit facilities against the security by way of first pari passu charge or the fixed
assets of the company, hypothecation of stock and book debts of the company and personal guarantees of some of the promoter directors
of the Company. This accounts have become Non Performing Assets before & as on date of balance sheet and company has received
recall notices (torn the banks. Kotak Mahindra Bank Limited has taken the possession of the factory premises of the company situated at
Zenith Compound, Village Vihari Kahalapur District, Raigad. Kotak Mahindra Bank Ltd and India Steel Works Limited have duly signed
the Loan ConsentAgreement as full and final settlement on 30th Sept,2024.

3 FITLLoan from DNS Bank @ 15.75% p.a. interest are secured against Stock and Books Debts. Plant & Machinery and Factory Land &
Building. This loan is repayable in 7 monthly installments. Said loan was to be repaid before 31.03.2021. However the company has
defaulted in repaying the same as per the agreed sanctioned terms

4 FITL Loan from Kotak Mahindra Bank Ltd @ 19.00% p.a. interest are secured against Stock and Books Debts. Plant & Machinery and
Factory Land & Building. This loan is repayable in 7 monthly installments. Said loan was to be repaid before 31 03.2021 However the
company has defaulted in repaying the same as per the agreed sanctioned terms This accounts have become Non Performing Assets
before & as on date of balance sheet and company has received recall notices from the banks. Kotak Mahindra Bank Limited has taken
the possession of the factory premises of the company situated at Zenith Compound. Village Vihari, Kahalapur District. Raigad Kotak
Mahindra Bank Ltd and India Steel Works Limited have duly signed the Loan ConsentAgreement as full and final settlement on 30th
Sept,2024.

5 The Company had availed a loan of Rs. 80 lakhs from Kotak Mahindra Bank Ltd. under the Emergency Credit Line Guarantee Scheme
(ECLGS) of National Credit Guarantee Trustee Company Ltd (NCGTC) in order to meet its working capital requirements. The tenure of
the loan is 48 months (Including the 12 month moratorium period) carryingan interest rate of 8.00% p.a. rep ayable in 48 equated monthly
installments. The said loan is secured by way of first and second charge on the entire present and future current and movable assets with
DNS Bank, first and second charge moveable fixed assets Equitable/ Registered on immovable properties, i.e. Land and Building and
structure and P&M located in Zenith Compound, Khopoli, District Raigad Maharashtra -410203 owned bythe India Steel Works Limited.
However the company has defaulted in repaying the same as per the agreed sanctioned terms This accounts have become Non
Performing Assets before & as on date of balance sheet and company has received recall notices from the banks. Kotak Mahindra Bank
Limited has taken the possession of the factory premises of the company situated at Zenith Compound. Village Vihari, Kahalapur District
Raigad. Kotak Mahindra Bank Ltd and India Steel Works Limited have duly signed the Loan ConsentAgreement as full and final
settlement on 30th Sept.2024.

NOTE 38: FINANCIAL RISK MANAGEMENT AND POLICIES

The Company's financial risk management is an integral part of how loplan and execute its business strategies The Company's financial risk
management policy is set by the managing board. The details of different types of risk and management policy to address these risks are listed
below.

(a) 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
instalment. 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 loans and borrowings. The objective of market
risk management is to avoid excessive expsoure in ourforeign currency revenues and costs.

(a) (i) Market Risk • Interest Rate Risk

I rite nest rale risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest
rates. The company's exposure to the ri sk of changes in ma rket interest rates primarily to the Company’s borrow: ngs, both short term a nd long
termobligations with floating interest rates.

Thecompany is also exposed to Interest rate risk on its financial assets that indude fixed deposits (which are part of cash and cash equivalents)
since all these are generally for short durations, there is no significant interest rate risks pertaining to thesedeposits

Sensitivity analysis to interest rate risk

Thecompany doesn't account for any fixed rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in
interest ratesatthe reporting date would not affect profit or loss.

(a)(H) Market Risk - Price Risk

The Company has no surplus for investment in debt mutual funds, deposits etc The Company does make deposit with the banks to provide
security against gurantee issued by bank to companys trade payables. Deposit is made In fixed rate instrument. In view of this it is not
susceptible to market price risk, ansing from changes in interest rates or market yields which may Impact the return and value of Ihe
investments.

(a)(iii) Market Risk -Currency Risk

The fluctuation in foreign currency exchange rates may have a potential impact on the statement of profit and loss and equity, where any
transaction references more than one currency or where assets/liabilities are denominated in a currency other than the functional currency of
the Company. The company is exposed to currency risk on account of its trade payables in foreign currency. The functional currency of trie
company is Indian Rupees The Company follows a natural hedge driven currency risk mitigation policyto the extentpossible.

Exposure to Currency risk

The summary quantitative data about the Company’s exposure to currency risk are reported to management of the company are as follows:-

(b) Credit Risk

Credit Risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual
obligations, and arises principally from the Company’s receivables from customers The carrying amount of Financial Assets represents the
maximum credit exposure

Trade Receivables

The Company has established a credit policy under which each new customer is analysed individually for creditworthiness before the payment
and delivery terms and conditions are offered. The Company's review includes external ratings, if they are available, financial statements,
industry information, business intelligence andin some cases bank references.

Trade Receivables of the Company are typically unsecured .except to the extent of the security deposits received from the customers or
financial guarantees provided by the market organizers in the business. Credit Risk is managed through credit approvals and periodic
monitoring of the creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company
performs ongoing credit evaluations of its customers'financial condition and monitors the creditworthiness of its customers to which K grants
credit terms in the normal course of business. The Company has no concentration of Credit Risk as the customer base is geographically
distributed in India.

Expected credit loss for trade receivable:

The diowance for impairment of Trade receivables is created to the extent and as and whe n required, based upon the expected collectability of
accounts receivables. On account of adoption of Ind AS 109, the Company uses lifetime Expected Credit Loss (ECL) model for assessing the
impariment toss. For this purpose, the Company uses a provision matrix tocompute the expected credit loss amount for trade receivables. Loss
rates are based on actual credit loss experience and past trends. The provision matrix takes into account external and internal credit risk factors
and historical experience/current facts avail able in relation to defaults and delaysin collection thereof.

The movement of the expected loss provision (allowanoe for bad and doubtful loans and receivables etc.) made by the company are as under

Other Financial Assets

The company maintains its Cash and Cash equivalents and Bank deposits with banks having good reputation, good past track record and high
quality creditrating and also reviews their credit-worthiness on an on-going basis.

Expected credit loss on financial assets other than trade receivable:

With regards to all financial assets with contractual cash flows other than trade receivable, management believes these to be high quality
assets with negligible credit risk. The management believes that the parties from whom these financial assets are recoverable, have strong
capacity to meet the obligations and where the risk of default is negligible and accordingly no provision for expected credit loss has been
provided on such financial assets. Break up of financial assets other than trade receivables have been disclosed on balance sheet

The Company 's maximum exposure to credit risk as at 31st March, 2025 and 31st March, 2024 is the carrying value of each class of financial
assets.

43 Segment Reporting :

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker, The
chief operating decisbn maker of the Company is responsible for allocating resources and assessing performance of the operating
segments.

45 Balances of Trade Receivables, Trade Payables, Advances and Deposits received / given, from/lo customers are subject to confirmation
and subsequent recondlation

46 Figures in Brackets indicate previous years Figures Previous periods figure have been regrouped, rearranged, reclassified wherever
necessary to correspond with those of the current period

As per Our Report of Even Date Attached For and on behalf of the Board of Directors of

For Laxmikant Kabra & Co LLP INDIA STEEL WORKS LIMITED

Chartered Accountants

Firm Registration No. 117183W / W100736 Sudhirkurnar H Gupta Varun S. Gupta

Executive Chairman Managing Director

CA Laxmikant Kabra DIN: 00010853 DIN: 02938137

Partner

Membership No.101839 Dilip Maharana Nilesh Matkar

Company Secretary Chief Financial Officer

Place: MUMBAI ACS: 23014

Date :21st May 2025