3.9 Provisions

A provision is recognized when the company has a present obligation as a result of past event and 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.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Provisions are not discounted to their present value and are determined based on the best estimate required to
settle the obligation at the reporting date. These estimates are reviewed at each reporting date and adjusted to
reflect the current best estimates.

3.10 Contingent Liability

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the company or a
present obligation that is not recognized because it is not probable that an outflow of resources will be required to
settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot
be recognized because it cannot be measured reliably. The company does not recognize a contingent liability but
discloses its existence in the financial statements.

3.11 Contingent Asset

A contingent asset is a possible asset that arises from past events and whose existence will be confirmed only by
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
company. Contingent assets are neither recognised nor disclosed in the financial statements.

3.12 Foreign Currency
a Initial recognition

Foreign currency transactions are recorded in the functional currency, by applying to the foreign currency amount
the exchange rate between the functional currency and the foreign currency at the date of the transaction.

b Conversion

Foreign currency monetary items are retranslated using the exchange rate prevailing at the reporting date. Non¬
monetary items, which are measured in terms of historical cost denominated in a foreign currency, are reported
using the exchange rate at the date of the transaction.

c Exchange difference

All exchange differences are recognized as income or as expenses in the year in which they arise.

3.13 Cash and cash equivalent

Cash and cash equivalents for the purposes of cash flow statement comprise cash at bank (including demand
deposits) and in hand and short-term, 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.

3.14 Earnings per share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding during the year.

For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity
shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects
of all dilutive potential equity shares.

3.15 Inventories

Items of inventory are valued at cost or net realizable value, whichever is lower. Cost for raw materials, traded
goods and stores and spares is determined on FIFO basis. Cost includes all charges in bringing the goods to their
present location and condition. Net realizable value is the estimated selling price in the ordinary course of
business less the estimated cost of completion and the estimated costs necessary to make the sale.

3.16 Lease

Effective April 1, 2019, the Company adopted Ind AS 116 “Leases” and applied the standard to all lease contracts
existing on April 1, 2019 using the modified retrospective approach.

The effect of this adoption is insignificant on the profit before tax, profit for the year and earnings per share.

© As a lessee

Leases of property, plant and equipment where the Company, as lessee, has substantially all the risks and rewards
of ownership are classified as finance leases. Finance leases are capitalised at the lease’s inception at the fair value
of the leased property or, if lower, the present value of the minimum lease payments. The corresponding rental
obligations, net of finance charges, are included in borrowings or other financial liabilities as appropriate. Each
lease payment is allocated between the liability and finance cost. The finance cost is charged to the Statement of
Profit and Loss over the lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period.

Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Company as
lessee are classified as operating leases. Payments made under operating leases (net of any incentives received from
the lessor) are charged to the Statement of Profit and Loss on a straight-line basis over the period of the lease
unless the payments are structured to increase in line with expected general inflation to compensate for the
lessor’s expected inflationary cost increases.

(ii) 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.

3.17 Segment Reporting

An operating segment is component of the company that engages in the business activity from which the
company earns revenues and incurs expenses, for which discrete financial information is available and whose
operating results are regularly reviewed by the chief operating decision maker, in deciding about resources to be
allocated to the segment and assess its performance. The company’s chief operating decision maker is the
managing Director.

Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable
segment. All other assets and liabilities are disclosed as un-allocable.

Revenue and expenses directly attributable to segments are reported under each reportable segment. All other
expenses which are not attributable or allocable to segments have been disclosed as un-allocable expenses.

The company prepares its segment information in conformity with the accounting policies adopted for preparing
and presenting the financial statements of the company as a whole.

3.18 Cash Flow Statement

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

3.19 Events after reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the
reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the
Balance Sheet date of material size or nature are only disclosed.

The preparation of the financial statements in conformity with Ind AS requires management to make
estimates, judgments and assumptions.

These estimates, judgments and assumptions affect the application of accounting policies and the
reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the date of
the financial statements and reported amounts of revenues and expenses during the period.

Accounting estimates could change from period to period. Actual results could differ from those
estimates. Appropriate changes in estimates are made as management becomes aware of changes in
circumstances surrounding the estimates. Changes in estimates are reflected in the financial statements in
the period in which changes are made and, if material, their effects are disclosed in the notes to the
financial statements.

Application of accounting policies that require critical accounting estimates involving complex and
subjective judgments and the use of assumptions in these financial statements are:

- Useful lives of Property, plant and equipment

- Valuation of financial instruments

- Provisions and contingencies

- Income tax and deferred tax

- Measurement of defined employee benefit obligations

- Export Incentive

- Provision for Loss Allowance using Expected Credit Loss Modle in respect of Trade Receivables

Trade receivables as at April 1, 2024 include an outstanding balance of Rs. 88.82 crore, which has been
overdue for a significant period and continues to remain unrecovered as at March 31, 2025. The
Company has been actively corresponding with the respective customers for recovery of the dues.
However, in view of the prolonged non-recovery and the absence of concrete recovery measures, there
exists significant uncertainty regarding the collectability of these receivables. Accordingly, the Company
has recognised a provision for doubtful debts amounting to Rs. 63.97 crore against the said balance. In
respect of Trade Receivables amounting to Rs. 12617.50 Lakhs, the management have received balance
confirmations from the top ten debtors.

The Company has used a practical expedient and analysed the recoverable amount of receivables on an
individual basis by computing the expected loss allowance for financial assets based on historical credit
loss experience and adjustments for forward looking information.

The Company has made assessment of Allowance for Credit Loss in respect of Trade Receivables for
the first time. The Company has analysed its trade receivables for agining analysis and grouped them
accordingly and then applied year wise percentage to calculate the amount of Allowance for Credit Loss
in respect of the same. (Also see Note No. 34)

The Company has only one class of equity shares referred to as equity shares having a par value of ' 1.
Each holder of equity share is entitled to one vote per share.

Dividends, if any, is declared and paid in Indian Rupees. The dividend, if any, proposed by the Board of
Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of
the remaining assets of the company, after distribution of all preferential amounts. However, no such
preferential amounts exist currently. The distribution will be in proportion to the number of equity
shares held by the shareholders.

The holding company has issued and allotted 2,25,40,000 Equity Shares of face value of Rs. 1 /- to
Promoters on preferential basis in conversion of warrants issued on 28.07.2023 at an issue price of Rs.
3.24/- each (including premium of Rs. 2.24/- per Equity Share).

The holding company has issued and allotted 4,45,00,000 share warrants convertible into Equity Shares
within a period of 18 months from the date allotment of warrants, carrying value of Rs. 1 /- to
Promoters, on preferential basis at an issue price of Rs. 4.02/- each (including premium of Rs. 3.02/-
per Equity Share). The holding Company has issued and allotted 90,00,000 Equity Shares of face value
of Rs.1 /- to Promoters on preferential basis in conversion of warrants issued on 01.08.2024 at as issue
price of Rs.4.02/- each (including premium of Rs.3.02/- per Equity Share)

The holding company has issued and allotted 14,30,00,000 Equity Shares of face value of Rs. 1 /- to Non
Promoters on preferntial basis at an issue price of Rs.4.02/- each (including premium of Rs.3.02/- per
Equity Share).

(a) Securities Premium : The amount received in excess of face value of the equity shares is recognised in
Securities Premium. The reserve is utilised in accordance with the provisions of the Companies Act,
2013.

(b) General Reserve : General Reserves are free reserves of the Company which are kept aside out of
Company’s profits to meet the future requirements as and when they arise. The Company had
transferred a portion of the profit after tax (PAT) to general reserve. Mandatory transfer to general
reserve is not required under the Companies Act, 2013.

(c) Retained Earnings : Retained earnings are the accumulated profits earned by the Company till date,
less transfer to general reserves, dividend (including dividend distribution tax) and other distributions
made to the shareholders.

14.1 Capital Management

For the purpose of the Company's capital management, capital includes issued equity capital, share
premium and all other reserves attributable to the equity holders of the Company. The Company’s
objective for capital management is to maximize shareholder value and safeguard business continuity.
The Company determines the capital requirement based on annual operating plans and other strategic
plans. The funding requirements are met through equity and operating cash flows.

21.1 It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the
above pending resolution of the respective proceedings as it is determinable only on receipt of
judgements/decisions pending with various forums/ authorities.

21.2 The Company’s pending litigations comprise of claims against the Company pertaining to proceedings
pending with various direct tax, indirect tax and other authorities. The Company has reviewed all its
pending litigations and proceedings and has adequately provided for where provisions are required and
disclosed as contingent liabilities where applicable, in its financial statements. The Company does not
expect the outcome of these proceedings to have a materially adverse effect on its financial statements.

21.3

There has been a Supreme Court (SC) judgement dated 28th February 2019, relating to components of
salary structure that need to be taken into account while computing the contribution to provident fund
under the EPF Act. There are interpretative aspects related to the Judgement including the effective date
of application. The Company will continue to assess any further developments in this matter for the
implications on financial statements, if any.

30.4 Risk to the Plan

Following are the risk to which the plan exposes the entity :

Other assumptions would have produced different results eg a decrease in discount rate or an increase in
salary inflation will lead to an increase in reported liability as per table of sensitivity analysis. Similarly change
in attrition rates will also impact the liability.Funded plan carries usual investment risks including asset liability
mismatch which will impact net liability / expenses and OCI if any .

34 [Financial Risk Management

The company's activities expose it to variety of financial risks : 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 has overall responsibility
for the establishment and oversight of the Company's risk management framework. The Board of
Directors has established a risk management policy 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 systems are reviewed periodically to reflect changes in market conditions and the
Company’s activities. The Board of Directors oversee compliance with the Company’s risk

A Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises interest rate risk and currency risk.

i 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. The Interest risk arises to the Company mainly from
borrowings with variable rates. The Company measures risk through sensitivity analysis. The banks are
now finance at variable rate only, which is the inherent business risk.

ii Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk
through its sales and purchases from overseas suppliers in foreign currencies. The comapny measures
risk through sensitivity analysis.

Liquidity risk is the risk that an entity will encounter difficulty in meeting obligations associated with
financial liabilities that are settled by delivering cash or another financial assets.

The company's principal source of liquidity are cash and cash equivalents and the cash flow that is
generated from operations. The Company closely monitors its liquidity position and is attempting to
enhance its sources of funding by increasing cash flow generated from its operations and realisations
from other proposed measures. The Company measures risk by forecasting cash flows.

Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other
party by failing to discharge an obligation. Credit risk encompasses both, the direct risk of default and
the risk of deterioration of credit worthiness.

Credit risk arises primarily from financial assets such as trade receivables, cash and cash equivalent and
other financial assets.

In respect of trade receivables, credit risk is being managed by the company 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 ensures that sales of
products are made to customers with appropriate creditworthiness. All trade receivables are also
reviewed and assessed for default on a regular basis.

Credit risk arising from cash and cash equivalent and other financial assets is limited as the
counterparties are banks and mainly Government companies respectively.

The Company has made assessment of Allowance for Credit Loss in respect of Trade Receivables for
the first time. The Company has analysed its trade receivables for agining analysis and grouped them
accordingly and then applied year wise percentage to calculate the amount of Allowance for Credit Loss
in respect of the same.

38 [segment Informations

38.1 Operating Segment:

a) Stainless Steel Products
Identification of Segments:

The Chief Operational decision maker monitors the operating results of its business segment
separately for the purpose of making decision. Operating segment has been identified on the basis of
nature of products and other quantative criteria specified in the Ind AS 108.

Segment revenue and results:

The expenses and income which are not directly attributable to any business segment are shown as
unallocable expenditure (net of allocable income).

Segment assets and Liabilities

Segment assets include all operating assets used by the operating segment and mainly consist of
properly, plant and equipment, trade receivables, inventories and other operating assets. Segment
liabilites primarily include trade payable and other liabilities. Common assets and liabilities which
cannot be allocated to any of the business segment are shown as unallocable assets/liabilities.

44

As stated & Confirmed by the Board of Directors ,The Company has not advanced or loaned or invested funds to any other
person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) 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

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

45 |Lo an or Investment from Ultimate Benefici aries

As stated & Confirmed by the Board of Directors ,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:

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

46 ^Working Capital

As stated and confirmed by the Board of Directors, The Company has been not been sanctioned any working capital facilities during
the year under review.

47 W illful Defaulter

As stated & Confirmed by the Board of Directors ,The company has not been declerated willful defaulter by the bank during the

48 transactions with Struck off Companies

As stated & Confirmed by the Board of Directors ,The company has not under taken any transactions nor has outstanding balance
with the company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

49 jSatisfaction of Charge

As stated & Confirmed by the Board of Directors ,The compnay does not have any pending registration or satisfaction of charges
with ROC beyond the statutory period .

50 |Crypto Currency

As stated & Confirmed by the Board of Directors ,The Company has not traded or invested in Crypto Currency or Virtual Currency.

Note i: Net Profit after taxes Non-cash operating expenses Interest other adjustments like loss on sale of Fixed assets etc.

Note ii: The Company has only unsecured loans, which do not have a predetermined Principal and Interest repayment schedule, accordingly Debt Service Coverage Ratio is not applicable.

52 Previous year’s figures have been regrouped/reclassified wherever necessary to correspond with the current

Significant Accounting Policies - Note 1 to 52

Note No. 5 to 51 forming Part of Standalone Financial Statements

As per our report of even date attached For and on behalfof the Board

For, ASHOK DHARIWAL & CO.

Chartered Accountants Mona Shah Dipali Shah

Firm Reg. No. 100648W Director Director

DIN - 02343194 DIN - 08845576

CA Ashok Dhariwal

Partner Narendra Sharma Hiral Patel

Membership No. 036452 Chief Financial Officer Company Secretary

UDIN: 25036452BM KTG E2965

Viral Shah

Chief Executive Officer

Place : Ahmedabad Place : Ahmedabad

Date : 06-05-2025 Date : 06-05-2025