3.13 Contingent liability and Assets :

Show-cause notices issued by various Government Authorities are generally not
considered as obligations. When the demand notices are raised against such show
cause notices and are disputed by the Company, these are classified as disputed
obligations. _:

The treatment in respect of disputed obligations are as under:

a) a provision is recognized in respect of present obligations where the outflow of
resources is probable;

b) all other cases are disclosed as contingent liabilities unless the possibility of outflow
of resources is remote.

Contingent liabilities are possible obligations that arise from past events and whose
existence will only be confirmed by the occurrence or non-occurrence of one or more
future events not wholly within the control of the Company. Where it is not probable
that an outflow of economic benefits will be required, or the amount cannot be
estimated reliably, the obligation is disclosed as a contingent liability. Contingent
liabilities are disclosed on the basis of judgment of the management/independent
experts and reviewed at each balance sheet date to reflect the current management
estimate. Contingent assets are disclosed in the Financial Statements by way of notes
to accounts when an inflow of economic benefits is probable.

(F) Terms/rights attached to equity shares

The company has only one class of equity shares having par value of 10/- per share. Each holder of
equity share is entitled to one vote per share. :

The Company has only one business segment {'Stainless steel products ’) as primary segment. In
case of geographical segment, risk and returns of the company are not affected due to customer in
India and different countries. Consequently the need for separate disclosure as required under
Accounting Standard AS 17 "Segment Reporting" notified in the Companies (Accounting Standard)
Rules, 2021 are not applicable. . . . .

NOTE : 29 Retirement benefit plan

a ) Defined Contribution Plan

The Company made contribution towards provident fund to a defined contribution retirement
benefit plan for qualifying employees.

The provident fund plan is operated by the Regional Provident Fund Commissioner. The
company Recognized Rs, 33,39,829/- (34,87,760)/- for provident fund contributions in the
profit & loss account. The contributions payable to these plans by the company are at rates
specified in the rules of the scheme.

b ) Defined Benefit Plans

The Company made provision for gratuity liability as per the provisions The payment of
Gratuity Act, 1972, The scheme provides for payment to vested employees at retirement,
death while in; employment or on termination of employment of an amount equivalent to 15
days salary payable for each completed year of service or part thereof in excess of six
months. Vesting occurs upon completion of five years of service.

The present value of the defined benefit obligation and the related current service cost Were
measured using the Projected Unit Credit method as per actuarial valuation carried out at the
balance sheet date.

The following tables sets out the status of the gratuity plan as required under AS-15 and the
amounts recognized in the company's financial statements as at 31st March, 2025.

35.1 Willful Defaulter

The company is not declared as willful defaulter (as defined under the company Act,
2013) by any bank or financial institution or other lender,

35.2 Utilisation of borrowed funds & Share Premium

The Company has not advanced or loaned or invested funds (either borrowed funds
or share premium or any other sources or kind of funds) to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding
(whether recorded in writing or otherwise) that the Intermediary shall

(i) directly or indirectly lend or invest in other persons or entities identified in any
manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate
Beneficiaries;

35.3 Registration of charges or satisfaction with Registrar of Companies (ROC)

During the year, no charge and / or satisfaction of charge are required to be
registered with ROC in respect of borrowings beyond statutory period. ’

35.4 Relationship with Struck off Companies

The Company has carried out following transactions with companies struck off under
section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956.
There is no outstanding balance as at 31st March, 2025 in case of said struck off
company.

35.5 Details of Benami Property held

The company does not hold any benami property, where any proceeding has been
initiated or pending against the company for holding any Benami property.

35.6 Utilisation of borrowed funds, share premium and other funds

The Company has not given any advance or loan or invested funds from borrowed
funds or share premium or any other sources with the understanding that
intermediary would directly or indirectly lend or invest in other person or equity
identified in any manner whatsoever by or on behalf of the company’ as ultimate
beneficiaries or provide any guarantee or security or the like to on behalf of ultimate

beneficiaries.

The Company has not received any fund from any person or entity with the
understanding that the Company would directly or indirectly lend or invest in other
person or entity identified in any manner whatsoever by or on behalf of the funding
party (ultimate beneficiary) or provided any guarantee or security or the like on
behalf of the ultimate beneficiary.

35.7 Compliance with number of layers of companies

The Company does not have any subsidiary, hence compliance in terms of Section
2(87) of Companies Act read with the Companies (Restriction on number of Layers)
Rules, 2017 does not apply.

NOTE : 36 Additional Disclosures:

36.1 Details of Crypto Currency or Virtual Currency

The company has not traded or invested in Crypto currency or Virtual Currency
during the financial year. •

36.2 Undisclosed Income

During the year under the consideration, no tax assessment under the Income Tax
Act, 1961 (sych as, Search or servey or any other relevant provisions of the Income
Taz Act, 1961) has been initiated / on going by the income tax department.

NOTE : 37 The Company has not applied for any Scheme of Arrangements under Sections 230

to 237 of the Companies Act, 2013.

NOTE ; 38 The company has been granted a Patent as at 2nd June, 2022 & 22nd Dec, 2023

related to 'Process for Recovery of Gypsum from Stainless Steel ETP Neutralized
sludge' & ’Process for Recovery of Metals from Stainless Steel ETP Neutralized
Sludge" respectively. The cost of patents includes directly attributable expenses
necessary to prepare the asset for s intended use. During the FY 2023-24, company
has recognized the cost of patent as metal loss during research and study of patent
because the metal loss waste was used for research purpose of the patent which s
recognized in current FY 2023-24. The total cost of the patents is Rs.1843.46
Lakhs in which metal loss quantity Is considered from the date application for patent
to the approval of patent is considered.

NOTE ; 39 During the Financial year 2023-24 the Company has completed the Initial Public Offer

(IPO) of 68,64,000 Equity shares of face value of Rs. 10 each at an issue price of Rs.
80 per equity share comprising offer for sale of 7,37,600 equity shares by selling
shareholders and fresh issue of 61,26,400 shares. The Equity Shares of the Company
were listed on the EMERGE Platform of National Stock Exchange of India Limited
(NSE EMERGE”) on October 4,2023. As on balance sheet date 31.03.2025 the Net
Proceeds from IPO of Rs. 4901.12 Lakhs has been utilised towards working capital
requirement of Rs. 2700.00 Lakhs, Capital expenditure for business expansion_: and
research and development of Rs. 40.13 Lakhs, general corporate purpose of Rs.
548.50 Lakhs, Rs. 443.44 Lakhs towards Issue Expenses and the balance Rs.
1169.05 Lakhs has been placed as deposits with NBFC's towards Capital Expenditure
and General corporate purposes. :