Equity ihircs: The Company has one class of equity shares having a par value of HO per share Each shareholder is eligible for one vole per share held The dividend proposed by the Boar Dinners u subject to the approval of the shareholders in the ensuing Annual General Meeting, except in ease of interim dividend. In the cvail of liquidation, the equity shareholders are clip c to receive the remaining nmi of (he Coonpmy after distribution of all preferential amounts, in proportion to their shareholding
Nature and purpose of reserves Securities premium reserve
Securities premium reserve is used to record the premium on issue of shares The reserve is utilised m accordance with the provisions of the Companies Act Capital reserve
General reserve forms pan of the retained earnings Mid is permitted to be distributed to shareholders aspart of dividend.
Other Comprehensive Income
(i) Rrmeasurement on defined benefit obligation: Remeasuronent of defined benefit obligation composes actuarial guns and losses and such guns and losses can never be classified to
statement of profit and loss
(ii) (Losit'gain on fsir valuation of equity investments through other comprehensive income: The cumulative gains and losses arising on (he revaluation of equity instruments measured at fair v alue through other comprehensiv e income, net of taxes and such gains and losses mil never be classified to statement of profit and loss
Dunns ^ seer M23-M, Hie Company has issued 2S.OO.OOO wuranti .1. pnee «. 11951. pcs snl on preferential b»sis to poisons/ entity belonsioB to promoter grasp m „oo. pransoscf group of the Compsrty for coosidention payable through electronic means/ bunking chttnisels ssilh in option to subscribe to err equilv shsre of fane vehto omor. or o price of 1195/- pec crputy shite including premium of M IS/.pcr shsre for each .arrant »rth m the period of eighteen monlhl from the dele of allotment of warrant i.c. from Ulh December. 2025.
•Out of 28.00,000 .arrarus, the Company has convened bulencc 18,00,000 suarmnu (6,00,000 .arrrurls during the previous yenre) into eouHy share of face value of !I0 eta once oft 195/. oes equity share including premium of ? 183/- per share for each warani ut the current financial year.
•TTie company has received the demand notice from Punjab State Power Corporation Limited charging the interest to the tune of f 259.78 Lakhs out of whic Lakhs has been paid under protest during the previous year as per court order, the said interest is levied on surcharge of ! 723.06 Lakhs which was fixed an pai in pursuance of the judgement passed by the HonTrle Supreme Court. The company has filed Civil Writ Petition in the High Court of Punjab and Haryana, Chan igar agains such demand and has received stay order from the court Company based on the data available and internal assessment, believes that the demand will be quas c an e , disclosed the demand as contingent liability.
•• During die year, the Company received an Order-in-Original from the GST authorities under Section 74 of the Central Goods and Services Tax Act, demand of Input Tax Credit amounting to ?5.04 lakhs, together with applicable interest and penalty, The demand relates to Input Tax Credit availe unng certain suppliers who were subsequendy alleged by the tax authorides to have issued invoices without actual supply of goods.
Government of India has consolidated 29 existing labour legislations into a unified framework comprising four labour codes viz the Code on Wages, 2019, the Code on Security, 2020, the Industrial Relations Code, 2020, and the Occupational Safely, Health and Working Conditions Code. 2020 (collectively referred to as the Codes'). The Codes have been made effective from November 21, 2025 The Ministry of Labour & Employment published draft Central Rules and FAQs to enable assessment of the financial impact due to changes in regulations.
The incremental impact of these changes, assessed by the Company, on the basis of the information available, consistent with the guidance provided by the Chartered Accountants of India, is not material and has been recognised in the financial results of the Company for the year ended 31st March 2026. Once Cemu ^ Rules are notified by the Government on all aspects of the Codes, the Company will evaluate impact, if any. on die measurement of employee benefits an wou p appropriate accounting treatment.
36 Segment Reporting
The Company is engaged in the business of manufacturing of Iron and Steel Products such as M.S. Round, Ingot, Billet, Wire Rod etc Accordingly, tor fa
one identiable segment reportable under Ind AS 108 "Operating Segment”. The chief operational decision maker monitors the operating results o e en purpose of making decisions about resource allocation and performance assessment
• The Company has evaluated the provisions of the Micro. Small and Medium Enterprises Development Act, 2006 ("MSMED Act") relating to interest payable on delayed payments lo Micro and Small Enterprises Based on the management s assessment, the amount of interest, if any, payable under Section 16 of the MSMED Act on outstanding dues lo Micro and Small Enterprises is nol material to the financial statements,
38 Disclosure pursuant to Ind AS-116 Leases Company as a Lessor
The rental income on assets given on operating lease to M/S Vaneera Industries Limited (Formerly known as Vaneera Industries Private Limited) was l 1.80 Lakhs for the year ended as on 31st March, 2026
•Tie Board of Dbectors of the Company, in its meeting held on 7th September 2024, and the shareholders at the Annual General Meeting held on 30th September 2024 approved the acquisition of a 5122% equity stake in Vaneera Industries Limited (formerly known as Vaneera Induslnes Private Limned) (investee company). Tie acquisition involves the purchase of 58,50,000 equity shares at *62 per share, comprising a face value of *10 and a premium of *52 per share The valuation of the investment was earned out by a registered valuer based on the unaudited financial statements of investee company as at
31st October 2024. ,
The total consideration for the acquisition is *3,627.00 lakhs. An amount of *362,70 lakhs, representing 10% of the total consideration, was paid as application money in Februaiy 2025. The balance amount of? 3,264.30 Lakhs have been paid up to 21st August 2025 and Vaneera Industries Limited became the subsidiary of the company w.ef 21.08.2025.
Considering the business model with which the company is bolding the investment and the contractual cash flow characteristics of the investment in subsidiary company, the investment is measured at amortised cost in accordance with Ind AS 109- Financial Instruments,
(i) The transactions with related parties are made in the ordinary course of business and on teims equivalent to those that prevail in arm s ten
other vendors. Outstanding balances at the year-end is unsecured and settlement occurs in cash. hares in the previous year,
•(ii) In the Board Meeting of the Company held on October 01,2024 a total number of400000 warrants were to be converted to VlJ]eOT Qarg This
due to an error additional 400000 shares were mistakenly alloned to each allotee it, the directors of the company-Devm er * m ^ preyj0iis year
error was subsequently rectified and accordingly the excess amount received from directors was shown as other paya es oy
“(iii) Long-term employee benefits for Key Managerial Personnel: . , ^ other employees of the Company
The managerial personnel are covered by Company's gratuity policy and are eligible for compensated ^ deluded m aforeroennoned
The proportionate amount of gratuity and compensated absences cost pertaining to managenal remunerao disclosures as these are not determined on individual basis
41 Financial Risk Management Derations. The financial liabilities
(a) Foreign currency risk
The company during the year is not exposed to any foreign currency risk as there are no dealings in foreign exchange
(b) Interest Rate Risk
changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.
(ii) Liquidity Risk
Liquidity risk refers to the risk that the Company will encounter difficulty to meet its financial obligations. The objective of liquidity risk management is to maintain sufficient
The company monitors ,ts risk of shortage of funds to meet the financial liabilities using a liquidity planning tool. The company plans to
obligations as and when falls due.
46 Expenditure on Corporate Social Responsibility (CSR)
As per Section 135 of the Companies Act, 2013 read with Companies (Corporate Social Responsibility Policy) Rules, 2014 (the “CSR Rules”), a company, meeting the applicability criteria requires to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities as provided in Schedule vn of the Companies Act, 2013. The CSR activities are monitored oy the CSR Committee formed by the Board of Directors in accordance with the provisions of the Section 135 of the Companies Act 2013 read wit CSR Rules.
49 Figures in bracket indicate deductions.