2.12) Provisions for Contingent liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present
obligation as a result of past event and it is probable that there will be outflow of resources. Contingent liabilities
are disclosed by way of notes.

2.13) Earning Per Share

Basic earning per share is computed by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. Diluted earning
per share is computed by taking into the account the aggregate of the weighted average number of equity
shares outstanding during the period and weighted average number of equity shares which would be issued on
conversion of all the dilutive potential equity shares into equity shares.

2.14) Cash Flow Statement

The cash flow statement has been in accordance with the Ind AS-7 on “Cash Flow Statements” issued by the
Companies (Accounting Standard) Rules, 2013.

2.15) Accounting policies not specifically referred to above are consistent with Ind Accounting Standards.

b) Rights, Preferences, restricions attached to equity shareholders:-

“The company has two classes of shares refferred to as Equity Shares having par value of Rs.10/- each and 9.5%
Reedemable cumulative Preference Shares of Rs.100/- each.

The Company has issued equity shares only. Hence rights / preferences applicable for Reedemable cumulative
Preference capital are not disclosed seperately.

Each Equity Shareholder is entitled to one vote per share.

The Company declares and pays dividend in Indian Rupees. In respect to Equity Shares, the dividend if any,
proposed by the Board Of Directors will be subject to approval of shareholders in Annual General Meeting.

In the event of liquidation of company, the holders of Equity Shares will be entitled to receive remaining assets of
the company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number
of Equity Shares held by the shareholders.

c) Share held by holding Company or its ultimate holding company or subsidiary or associates of the holding company
or the ultimate holding in aggregate Nil (Nil).

d) Aggregate number and class of shares allotted as fully paid up pursuant to contarct(s) without being received in
cash Nil(Nil), bonus shares and shares back for the period of five years immediately preceding the reporting date
Nil (Nil).

NOTE: XXI SEGMENT REPORTING

The Company is engaged only in the business of Steel Manufacturing which is the reportable segment in
accordance with the requirements of Indian Accounting Standards (IndAS) - 108 on operating segments
as prescribed under the Companies (Indian Accounting Standards) rules 2015 as prescribed under
section 133 of The Companies Act 2013.

NOTE: XXII In the opinion of the Board of Directors, Current Assets, Loan and Advances have value on realization in the
ordinary course of business at least equal to the amounts at which they are stated and provision for all known
liabilities have been made in accounts.

NOTE: XXIII As per the Ind AS - 24 issued by the Institute of Chartered Accountants of India “Related Party Disclosure”.
In view of this the company has given the following disclosures for the year.

The company has identified the related parties having transactions during the year, as per detail given
below. No provision for doubtful debts is required to be made & no amount was written off during the year.
A) Related Party and their relationship

Key Management Personnel Enterprises over which KMP and relatives of such personnel are able to

exercise significant influence

Mr. Krishan Kumar Goyal Smile Finvest Pvt. Ltd.

Ms. Deepa Mala Builders Pvt. Ltd.

Mr. Suresh Kumar Puri

NOTE: XXIV GOING CONCERN

The company has sold its both manufacturing facilities to M/s Arjas Steel Pvt. Ltd under Business
transfer agreement. Hence going concern is not applicable.

NOTE: XXV Figures for the previous year have been regrouped, rearranged and reclassified wherever considered
necessary.

For APT & CO LLP For MODERN STEELS LIMITED

Chartered Accountants

Firm Registration No. 014621C/N500088

KRISHAN KUMAR GOYAL SATISH KUMAR KAPOOR

Chairman & Managing Director. Director

(DIN:00482035) (DIN: 00009122)

CA Amrit Pal Singh DEEPA SURESH KUMAR PURI

Partner Company Secretary Chief Financial Officer

M. No. 508134

Place: Chandigarh
Dated: 18^th May, 2024