*During the year ended 31st March,2023 the Company has allotted 9,87,500 equity shares of face value Rs. 10 each pursuant to conversion of the balance 50% of Compulsorily Convertible debentures issued to Miba Sinter Holding GmbH & CO KG on 3rd March 2021.

Terms/rights attached to equity shares

The company has only one class of share having par value of Rs 10. Each holder of equity share is entitled to one vote per share. In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company after distribution of preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

Description of Components of the other equity Securities Premium:

Premium received on equity shares are recognised in the securities premium and is utilised in accordance with provisions of the Act.

Retained Earnings:

Retained earnings are profits that the Company has earned till date, less any transfer to General Reserve, dividends, other distributions paid to shareholders. It also includes remeasurement gain/loss of defined benefit plan.

Other Comprehensive Income (OCI):

Actuarial gain/loss on the retirement benefits of employees are recorded in OCI.

Note:

Working Capital loans repayable on demand from the banks are secured by hypothecation of inventories, book debts and receivable. Further, the above mentioned working capital limits are secured by personal guarantee of Mr. Jignesh Raval, Managing Director.

Monthly/quarterly statements of current assets filed by the Company with banks are in agreement with the books of accounts

34 Disclosure pursuant to Ind-AS 19 Employee Benefits:Defined contribution plans Provident fund:

Contribution towards provident fund for certain employees is made to the regulatory authorities, same is in line with the Provident Fund and Miscellaneous Provisions Act, 1952. The plan guarantees interest at the rate notified by the provident fund authorities. The contribution by the employer and employee together with the interest accumulated thereon are payable to employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vest immediately on rendering of the services by the employee.

Defined benefit plans

Gratuity:

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

a Debt Service coverage ratio (times): Increase in the ratio by 159% is mainly on account of increase in EBIDTA margin in current FY 22-23 and reduction in finance charges, as compared to previous year.

b Return on Equity Ratio (times): Increase in the ratio by 100% is mainly on account of decrease in

net loss during the year due to increased sales and higher capacity utilisations as compared to previous year.

c Trade Receivables Turonover Ratio: Increase in the ratio by 27% due to improved customer recoveries during the year as compared to previous year.

d Net Profit/(Loss) Margin (%): Decrease by 100% in the current year due to improvement in profitability during the year due to increase in sales and capacity utilisations during the year as compared to previous year.

e Return on Capital employed (%): Increase in the ratio is on account of the increase in the EBITDA

during the current FY22-23 as compared to the previous year.

37 Capital management

For the purpose of the Company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company's capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value and to ensure Company's ability to continue as going concern.

The Company manages its capital structure and makes adjustments to it in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, during the financial year ended March 2021, the Company has carried out prefrential issue of 13,50,000 Equity Shares & 19,75,000 4% Compulsorily Convertible Debentures.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2023

38 Earnings/(loss) per share

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted earnings /(loss) per share amounts are calculated by dividing the profit/loss attributable to

equity holders by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Fair value hierarchy

The following table presents the fair value measurement hierarchy of financial assets and liabilities measured at fair value on a recurring basis as at 31st March 2023, 31st March 2022.

Fair value of financial assets and financial liabilities measured at amortised cost :

The management believes that the fair values of non-current financial assets (e.g. loans and others), current financial assets (e.g., cash and cash equivalents, trade receivables, loans) and current financial liabilities (e.g. trade payables and other payables) approximate their carrying amounts.

40 Balance confirmations

In respect of the balance confirmations sought for by the Company from its debtors and creditors, few parties have responded to the request. As such, balances in the accounts of debtors, creditors, advances and deposits are taken as appearing in the accounts and subject to confirmation and reconciliations if any.

The Company has sent communication for balance confirmations from trade creditors to confirm their status under Small Medium & Micro Enterprises Development Act 2006. The Company has provided interest as applicable, wherever the trade creditor has confirmed the status under the act.

41 MAT Credit Entitlement

Section 115JAA of the Income Tax Act, 1961 provides for tax credit in respect of MAT paid under section 115JA (hereinafter referred to as 'MAT Credit') which could be carried forward for set-off for fifteen succeeding years, in accordance with the provisions of the Income Tax Act 1961. The amount of MAT credit would be equal to the excess of MAT over normal income tax for the assessment year for which MAT is paid. The said MAT credit can be set off only in the year in which the Company is liable to pay tax as per the normal provisions of the act and such tax is in excess of MAT for that year.

The Company has paid MAT over and above normal tax assessment & such credit of Rs. 3,67,63,342 has been recognised as an asset in the books.

42 Financial instruments risk management objectives and policies

The Company's activities expose it to market risks, credit risks and liquidity risks. This note explains the source of risk which the entity is exposed to and how entity manages the risk in the financial statements

A. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk interest rate risk, currency risk and other price risk such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings, trade and other payables, security deposit, trade and other receivables, deposits with banks.

The sensitivity analysis in the following sections relate to the position as at 31st March 2023 and 31st March 2022. The sensitivity of the relevant income statement item is the effect of the assumed changes in respective market risks. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post retirement obligations and provisions.

Company's activities expose it to variety of market risks, including effect of changes in foreign currency exchange rate and interest rate.

II) Foreign currency risk

Foreign currency risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Company transacts business in its functional currency, INR and in different foreign currencies. The Company's exposure to the risk of changes in foreign exchange rates relates primarily to the Company's operating activities,

where revenue or expense is denominated in a foreign currency. As exposure to the Foreign exchange risk is not significant, the Company has decided not to manage it separately.

B. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities such as primarily trade receivables and from its investing activities, including deposits with banks and financial institutions, cash and cash equivalent and other financial instruments.

Trade receivables

Customer credit risk is managed by the Company's established policy, procedures and control relating to customer credit risk management. Credit exposure risk is mainly influenced by class or type of customers, depending upon their characteristics. Credit risk is managed through credit approval process by establishing credit limits along with continuous monitoring of credit worthiness of customers to whom credit terms are granted. Outstanding customer receivables are regularly monitored.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company in accordance with Company's policy.

Liquidity risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash flow and collateral obligations without incurring unacceptable losses. Company's objective is to, at all time maintain optimum levels of liquidity to meet its cash and collateral requirements. Company closely monitors its liquidity position and deploys a robust cash management system. It maintains adequate sources of financing including overdraft & debt from domestic at optimised cost.

The table below summarises the maturity profile of the Company's financial liabilities based on contractual undiscounted payments.

46 Details of Crypto Currency or Virtual Currency

"The Company has not traded or invested any amount in Crypto currency or Virtual Currency during the financial year ended 31st March 2023. The company does not hold any Crypto or Virtual currency as at the reporting date.

47 As per Section 248 of the Companies Act, 2013, there are no balances outstanding with struck off companies.

48 During the year the Company is not declared wilful defaulter by any bank or financial institution or other lender.

49 The Company does not have any charges or satisfaction of which is yet to be registered with ROC beyond the statutory period.

50 Utilisation of Borrowed funds and share premium:

(I) 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"

(ii) 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,"

51 Details of benami property held

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

52 Compliance with number of layers of companies

The Company does not have any subsidiaries. Hence compliance with the number of layers of companies as prescribed under section 2(87) of Companies Act, 2013 and Companies (Restriction on Number of Layers) Rules, 2017 are not applicable to the Company.

53 Compliance with approved scheme(s) of arrangements

The Company has not entered into any approved scheme of arrangement which has an accounting impact in current or previous financial year.

54 Undisclosed income

The Company does not have any undisclosed income which is not recorded in the books of account that has been surrendered or disclosed as income during the year (previous year) in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

55 Long Term & Derivative Contracts

There are no long-term contracts including derivative contracts for which provision is required to be made for material foreseeable losses in the financial statements, as per the applicable law or accounting standards.

56 Valuation of PP&E, intangible asset and investment property

The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year. The Company does not have investment property.

57 Information about business segments

The Company is operating in one segment only i.e. Sintered Metal Components & Auto Components.

58 Previous Year Figures

The previous year figures have also been reclassified to conform to this year's classification.