3.10 Provisions and Contingent Liabilities

Provisions are recognized when there is a present legal or constructive obligation resulting from a past event, it is
probable that an outflow of resources will be required, and a reliable estimate can be made. Contingent liabilities are
disclosed unless the possibility of an outflow is remote.

3.11 Income Taxes

Income tax expense comprises current and deferred tax. Current tax is determined as per applicable tax laws. Deferred
tax is recognized on temporary differences between the carrying amounts of assets and liabilities and the corresponding
tax bases. Deferred tax assets are recognized to the extent that it is probable that taxable profits will be available against
which the deductible temporary differences can be utilized.

3.12 Earnings Per Share

Basic EPS is computed by dividing the profit attributable to equity shareholders by the weighted average number of
equity shares outstanding. Diluted EPS reflects the potential dilution that would occur if all convertible securities were
exercised.

3.13 Events After the Reporting Period

Adjusting events after the reporting period are recognized in the financial statements. Non-adjusting events are
disclosed in the notes to the financial statements if material.

3.14 Segment Reporting (Ind AS 108)

Based on the internal reporting provided to the Chief Operating Decision Maker (CODM), the Company has
determined that it operates in a single segment of “Iron & Steel products.” Hence, separate segment disclosures are not
applicable.

3.15 Borrowing Costs (Ind AS 23)

Borrowing costs directly attributable to the acquisition or construction of qualifying assets are capitalized as part of
the cost of those assets. Other borrowing costs are recognized as an expense in the period in which they are incurred.

(No borrowing cost has been capitalized during the year.)

3.16 Fair Value Measurement (Ind AS 113)

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized into
Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurements are observable.

3.17 Capital Management

The Company’s objective for capital management is to safeguard its ability to continue as a going concern and to
maintain an optimal capital structure to reduce the cost of capital. The Company monitors capital using gearing ratio.

Notes to financial statements for the year ended 31^st March 2024

(23) In the opinion of the Board of Directors Current Assets, Loans and Advances are approximately of
the same value if realized in the ordinary course of business. The provisions for all known liabilities
are adequate and not in excess of the amount reasonably necessary.

Contingent liabilities represent possible obligations that arise from past events and whose existence will be
confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly
within the control of the Company. These are not recognized in the books but disclosed, unless the
possibility of an outflow of resources is remote.

Note: The Company has not recognized provisions for these matters as the possibility of an outflow of
resources is considered less than probable based on legal evaluation. The outcomes of the above matters
depend on the final rulings by the respective judicial authorities.

25. Management’s Response to the Emphasis of Matter Raised by Statutory Auditors

In response to the Emphasis of Matter paragraph included in the Independent Auditor’s Report for the
financial year ended March 31, 2025, the management of Gopal Iron and Steel Co. (Guj) Limited respectfully
submits the following:

1. Going Concern Assumption

The financial statements for the year ended March 31, 2025, have been prepared on a going concern basis,
despite the Company having incurred recurring operational losses and having discontinued its manufacturing
operations due to disposal of all major fixed assets.

However, the management reaffirms that:

• The Company is actively exploring strategic options, including but not limited to, revival of business
through alternative operations, asset monetization, or potential merger/acquisition avenues.

• There are no external borrowings or overdue financial obligations as at balance sheet date, and the
Company continues to honour all its statutory and regulatory compliances in a timely manner.

• The Company has adequate cash and cash equivalents and low operational overheads, allowing it to
sustain basic corporate operations for the foreseeable future.

Accordingly, the Board believes that the Company has the ability to realise its assets and discharge its
liabilities in the normal course of business and thus, the going concern basis of accounting is appropriate.

2. Tax Litigations and Contingent Liabilities

With respect to the disputed tax demands aggregating ?1,051.45 lakhs as disclosed in Note 24 to the
standalone financial statements, we clarify that:

• All the demands are contested based on strong legal grounds and supported by independent expert
legal opinions.

• A significant portion of the demands (including matters aggregating to ?969.37 lakhs) are pending
adjudication before the Hon’ble Supreme Court, with favourable precedence in similar matters.

• The Company has not accepted the liability in principle and no order requiring final payment has
been passed as on the reporting date.

• Amounts paid under protest (?36.24 lakhs towards Central Excise) have been appropriately
classified as assets in the financial statements.

Based on legal advice and assessment of current status of proceedings, the management considers the
likelihood of an outflow of economic resources as remote to possible and hence no provision has been made
_under Ind AS 37

The management remains committed to maintaining transparency and providing regular updates on the
progress of legal cases, financial sustainability measures, and any material developments that may impact
the going concern assessment.

(25) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

The information regarding suppliers holding permanent registration certificate as a small-scale industrial undertaking
or as an ancillary industrial undertaking issued by the Directorate of Industries of the state is not available. In the
absence of such information, the amount and interest due as per the Interest on delayed payments to Small and Ancillary
Industries Act, 2006 is not ascertainable. There is no claim for payment of interest under the law above.

Disclosures under Section 22 of Micro, Small and Ancillary Industries Act, 2006 can be considered on receiving
relevant information from suppliers who are covered under the act is received.

(27) Gratuity and other post-employment benefit plan

The Company has various schemes for Long-term benefits such as Provident Fund, Pension Fund,
Gratuity and Leave Encashment. In case of funded schemes, the funds are recognized by the Tax
authorities and administered through separate trust. The company’s defined contribution plans are
Provident Fund and Pension Scheme since the company has no further obligation beyond making the
contributions. The company’s defined benefit plans include Gratuity and Leave Encashment.

The company operates defined benefit plan, viz., gratuity, for its employees. Under the gratuity plan,
every employee who has completed at least five years of service gets a gratuity on departure @ 15
days of last drawn salary for each completed year of service. As actuarial valuation using the projected
unit method is not received yet for the year end, the company has made provision for gratuity based
on the premium demanded by LIC of India, which accordingly to the company is more or less
adequate. Adjustments, if any will be made on receipt of the valuation report.

(28) Segment information

Based on the guiding principle given in Accounting Standard - 17 on Segment Reporting (issued by
the Institute of Chartered Accountants of India) the Company's Primary Business is manufacturing of
SS / MS Bars, MS Section, ERW Pipers and other Iron & Steel Items, which have similar risks and
returns. Accordingly, there are no separate reportable segments as primary segment is concerned.

(29) Balances of Sundry Creditors, Sundry Debtors, Advances, Deposits, Secured and Unsecured Loans
are as per the book and subject to confirmation and reconciliation from respective parties.

(30) Disclosure in respect of Related Parties Pursuant to AS - 18

(31) There are no amounts due to be credited to Investor Education and Protection Fund.

(32) Earning in Foreign Exchange at F.O.B. Value: Rs. Nil (Rs. Nil).

(33) Expenses in Foreign Currency at CIF Value: Rs. Nil (Rs. Nil).

(34) Value of Imports on CIF basis accounted for during the year: Rs. Nil (Rs. Nil).

(A) The Carrying value and fair value of financial assets/liability by each category are as follows

The Management assessed fair value of Cash and Cash equivalent, trade receivables, trade payables, borrowings and
other current and non-current assets and liabilities approximate their carrying amounts largely due to the short term
maturity of these instruments.

(35) Financial risk management:

The Company has exposure to the following risks arising from financial instruments: -

• Credit risk;

• Liquidity risk;

• Market risk

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has established the Risk Management Committee, which is responsible
for developing and monitoring the Company’s risk management policies. The committee reports to the board of
directors on its activities.

The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to
set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and
systems are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company,
through its training, standards and procedures, aims to maintain a disciplined and constructive control environment in
which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company’s risk management policies
and procedures and reviews the adequacy of the risk management framework about the risks faced by the Company.
The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc
reviews of risk management controls and procedures, the results of which are reported to the audit committee.

a) 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 and investment
securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The
Company establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in
respect of trade and other receivables and investments. Trade receivables The Company’s exposure to credit risk is

influenced mainly by the individual characteristics of each customer. The demographics of the customer, including the
default risk of the industry and country in which the customer operates, also influence credit risk assessment. Credit
risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness
of customers to which the Company grants credit terms in the normal course of business

Expected credit loss assessment The Company allocates each exposure to a credit risk grade based on a variety of
data that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information
etc.) and applying experienced credit judgment.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant
credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone any
substantial change, the Company expects the historical trend of minimal credit losses to continue

Cash and cash equivalents

As at the year end, the Company held cash and cash equivalents of ' 2,01,765/- (previous year ' 2,10,000/-).

The cash equivalents are held with banks.

Other financial assets

Other financial assets are neither past due nor impaired.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its
financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing
liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due,
under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’
san reputation. The Company enjoys an overdraft limit from the bank.

The Company invests its surplus funds in bank fixed deposit which carry no/low mark to market risks. The Company
monitors funding options available in the debt and capital markets to maintain financial flexibility.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are
gross and undiscounted and include estimated interest payments and exclude the impact of netting agreements.

c) Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices
- will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to
all market risk sensitive financial instruments including foreign currency receivables and payables and long-term debt.
We are exposed to market risk primarily related to interest rate change. However, it does not constitute a significant
risk. Hence, sensitive analysis is not given

(i) Currency risk

The Company is exposed to currency risk on account of its operations with other countries. The functional currency
of the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed
substantially in recent periods and may continue to vary in the future. However, the overall impact of foreign
currency risk on the financial statement is not significant.

Exposure to Currency risk Following is the currency profile of non-derivative financial assets and financial
liabilities:

Sensitivity analysis

A possible strengthening (weakening) of the Indian Rupee against US dollars at March 31 would have affected the
measurement of financial instruments denominated in US dollars and affected equity and profit or loss by the amounts
shown below. This analysis assumes that al,l other variables, in particular, interest rates, remain constant and ignores
any impact of forecast sales and purchases.

d) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is
the risk of changes in fair values of fixed interest-bearing financial assets or borrowings because of fluctuations in
the interest rates if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate
risk is the risk that the future cash flows of floating interest-bearing borrowings will fluctuate because of fluctuations
in the interest rates. Exposure to interest rate risk Company’s interest rate risk arises from borrowings and finance
lease obligations. The interest rate profile of the Company’s interest-bearing borrowings is as follows:

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate borrowings at fair value through profit or loss. Therefore, a change
in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

A possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or
loss by the amounts shown below. This analysis assumes that all other variables, in particular, foreign currency
exchange rates, remain constant.

The risk estimates provided assume a change of 100 basis points interest rate for the interest rate benchmark as
applicable to the borrowings summarized above. This calculation also assumes that the change occurs at the balance
sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not
necessarily representative of the average debt outstanding during the period.

(e) Commodity rate risk

The Company's operating activities involve the purchase and sale of Iron and Steel, whose prices are exposed to the
risk of fluctuation over short periods. Commodity price risk exposure is evaluated and managed through procurement
and other related operations, policies. As of March 31, 2025, and March 31, 2024, the Company had not entered into
any material derivative contracts to hedge exposure to fluctuations in commodity prices.

(36) Capital Management

For the Company’s capital management, capital includes issued capital and all other equity capital and all other equity
reserves attributable to the equity holders of the company. The primary objective of the capital policy of the company
to safeguard the Company’s ability to remain a going concern and maximise the shareholder value.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions,
annual operating plans and long term and other strategic investment plans. To maintain or adjust the capital structure,
the Company may adjust the amount of dividend paid to the shareholders, return capital to shareholders or issue new
shares. The current capital structure is through equity with no financing through borrowings. The company is not
subject to any externally imposed capital requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended on 31
March 2025 and 31 March 2024.

32. no immovable properties whose title deeds are not held in the name of company.

33. The Company has not revalued it’s revalued its Property, Plant and Equipments during the year.

34. No Loans and Advances are granted to Directors, KMPs, Promoters and related parties as defined under Companies
Act, 2013.

35. There is no capital in progress during the year.

36. There is no intangible assets during the development.

37. There are no proceedings being initiated or pending against the Company for holding any Benami property under
the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

_38. The Quarterly statements filed by the Company with Bank for current assets agree with books of accounts. No_

Disclosure Notes:

• The company has not issued any potential equity shares; hence, basic and diluted EPS are the same.

• Weighted average number of equity shares and EPS figures will be updated based on your actual share capital
structure. You can provide:

o Number of equity shares outstanding throughout the year
o Face value per share (^10/^100 etc.)

45. There is no scheme has been approved under section 230 to 237 of Companies Act, 2013 during the year.

46. 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 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;

47. 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 writing or otherwise) that the company shall (i) directly or
indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the
Funding Party (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries

As per attached report of even date

For, Krutesh Patel & Associates For Gopal Iron & Steel Co (Guj) Limited

Chartered Accountants

SD/- SD/- SD/-

Krutesh Patel Kundanben Patel Prabhubhai Laxmanbhai Patel

Partner Mgt. Director Director

Membership No - 140047 DIN - 03063504 DIN - 00287615

Firm Reg No - 100865W

SD/- SD/-

POOJA MEHTA Baldevbhai Patel

Company Secretary CFO

Date: 7 June 2025 Date: 29 May 2025

Place: Ahmedabad