There is no delay in the repayment of loans & interest on the date of balance sheet.

a) Term Loan from IndusInd Bank is secured by way of first pari passu charge over entire fixed assets both moveable and immovable (present & future) of the Long Member Plant and first pari passu charge on Land & Building of Manesar Unit. Term Loan is bearing 10.50% p.a. interest rate and finally repayable by March 2026 in twenty equal quarterly instalments beginning from June 2021 end.

b) Term Loan from Indian Bank is under syndication with Indusind Bank secured by way of first pari passu charge over entire fixed assets both moveable and immovable (present & future) of the Long Member Plant and first pari passu charge on Land & Building of Manesar Unit. Term Loan is bearing 10.50% p.a. interest rate and finally repayable by June 2025 in twenty equal quarterly instalments beginning from September 2020 end.

Further loan of Rs. 337 lacs under Emergency Credit Line Guarantee Scheme 2.0 is against second charge on current assets viz stocks and book debts and second pari passu charge on Manesar Land & Building and bearing interest 8.20% ~ 9.25% p.a. This loan is repayable in 36 months, monthly instalments starting from April 2022.

c) Term Loan from Yes Bank is secured by way of exclusive charge over entire fixed assets both moveable and immovable (present and future) on upcoming New Railways project and exclusive first charge on Faridabad Land . Term Loan is bearing 10.25% ~ 11% p.a. interest rate and finally repayable by February 2026 in twenty equal quarterly instalments beginning from May 2021 end.

Further, Loan of Rs. 1019 lacs under Emergency Credit Line Guarantee Scheme 2.0 taken against second charge on entire current assets (stocks and book debts) and second charge over entire fixed assets both moveable and immovable (present and future) on upcoming New Railways Plant and second charge on Faridabad Land bearing interest 8.20% ~ 9.25% p.a repayable in 48 monthly instalments starting from March 2022 till February 2026.

d) Loan from HDFC Bank Ltd. is under Emergency Credit Line Guarantee Scheme 2.0 taken against second charge on Halol Land and second pari passu charges on current assets viz stock and receivables. Term Loan is bearing 8.20% ~ 9.25% p.a. interest rate and repayable in 48 monthly instalments beginning from April 2022 till March 2026.

e) Term Loan from Bajaj Finance Limited is secured by way of exclusive first charge on Haridwar Industrial Land. Term Loan is bearing interest 9.00% ~10% p.a. and has been fully repaid by May 2021.

f) Term Loan from The Pradeshiya Industrial & Investment Corporation of U.P. Limited (PICUP) is secured by way of first charge on Land and Building of Bawal & Binola Plant and hypothecation on the Plant and Machinery of Lucknow Plant & Bawal Plant.Term Loan is interest free under Industrial Investment Promotion Scheme (IIPS) of Government of Uttar Pradesh, and repayable after 7 years from the date of respective disbursement in single instalment. Further loan of Rs. 1920.86 lacs taken in FY 2019-20 is secured by way of long term Bank Guarantee issued by a scheduled bank.

g) Term Loan from TATA Capital Financial Services Limited is secured by way of hypothecation on identified Plant & Machineries. Term Loan is bearing 10.75% p.a. interest rate and repayable in 60 monthly instalments starting from November 2020 to October 2025. Loan of Rs. 330 lacs under Emergency Credit Line Guarantee Scheme 2.0 taken against second charge over the identified Plant & Machineries funded by Tata Capital Financial Services Limited bearing interest 9% ~ 14% and repayable in 48 monthly instalments starting from March 2022 to February 2026.

q) Financial risk management :

The Company manages the financial risks relating to the operations of the Company. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The Company seeks to minimise the effects of these risks by using credit limits to hedge risk exposures. The use of financial instruments is governed by the Company's policies on foreign exchange risk and the investment. The Company does not enter into agreements for trade financial instruments, including derivative financial instruments, for speculative purposes.

Market risk is the risk of any loss in future earnings, in realizable fair values or in future cash flows that may result from a change in the price of a financial instrument. The Company's activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates risk/ liquidity which impact returns on investments. Keeping in mind the overall small exposure, the company does not enters into derivative financial instruments to manage its exposure to foreign currency risk including export receivables and import payables. Future specific market movements cannot be normally predicted with reasonable accuracy.

Credit Risk

Credit risk is the risk that counterparty will not able to 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 (primarily trade and other receivables) and from its financing activities, including deposits with banks and other financial instruments.

Trade Receivables

The Company follows a ‘simplified approach' (i.e. based on lifetime ECL) for recognition of impairment loss allowance on its trade receivables. For the purpose of measuring lifetime ECL allowance for trade receivables, the Company estimates irrecoverable amounts based on the ageing of the receivable balances, clubbed with, historical experience with the customer and/or the industry in which the customer operates and assessment of litigation, if applicable. Receivables are written off when they are no more deemed collectable.

Liquidity risk

The Company's principal sources of liquidity are ‘Cash and Cash Equivalents' and cash flows that are generated from operations. The Liquidity risk represents the inability of the Company to meet its financial obligations within stipulated time. To mitigate this risk, the Company maintains sufficient liquidity by way of readily convertible instruments and working capital limits from banks.

r) The company is into the business of manufacturing and selling sheet metal components related to automobile and Railways, having its manufacturing units in the state of Uttar Pradesh and Haryana. To maximise its revenue, the company is also developing various other products for Railways and commercial vehicle business and exploring the oppourtunities to increase its customer base.

During the year, the company for the purpose of maximising the profits had decided and closed its two units operations based at Bangalore & Bawal after assessing the viability of its products the board had approved to dispose off all assets of these manufacturing units except Land & Building of Bawal Unit. Consequently, Company had sold its Banglore unit L&B which resulting profit on sale of Land and Building amounting to Rs. 4529.41 lac which has shown as exceptional items in profit and loss account.

Further, plant and equipment of closed units were valued at cost and these were classified as ‘Assets Held for Sale'.

s) During the year, the Company has started commercial production at one of its location on January 13th, 2021 under the "Awadh Project". The other location is expected to be operational in the financial year of 2021-22 which got delayed due to adverse impact of Covid-19 pandemic and consequent lockdown.

t) The Company had entered in to fully hedged fixed rate currency transactions with Indusind Bank related to the one new location i.e. Long Member under Awadh Project. The outstanding exposure amount as on 31st March 2021 is Rs. 4059.58 lac (Previous year was Rs. 3971.19 lacs). Mark to Market (MTM) net gain is Rs. 83.71 lacs as on 31st March 2021 (Previous Year net loss was Rs. 37.13 lacs) which has been accounted in profit and loss account under the head Comprehensive Income.

u) The operational activities of the company could not take place in the month of April 2020 and partially in May 2020 due to Covid -19 restrictions and lockdown. Covid-19 pandemic posed several challenges to industrial and economic activities of the company. The plant resumed operations gradually with reduced capacity at the end of May 2020.

The Company's operations for the financial year 2020-21 have been adversely impacted by the outbreak of COVID-19 pandemic and consequent lockdown due to that operations of passenger trains also suspended for substantial part of the year by Indian Railways effected our Rly business also. The operations of the company have now resumed to some extent due to improved scenario, but the company is still facing challenges as most of passenger trains are still not in operation because of the pandemic. So, after assessing the business situation, the Board of Directors for the purpose of infusing liquidity in the Company/ reduce losses allowed sale of Bangalore plant, accordingly land and building of said plant has been sold which has resulted in a gain of Rs. 4529.41 lacs in current quarter under review. Further, company has written back the excess provisions of Rs. 251.49 lac towards closed plants vendors which altogether has been shown under the exceptional items.

v) The amount of borrowing costs capitalized during the year ended 31 March 2021 was Rs. 1292.11 lacs (Previous years Rs. 1,016.65 lac). The interest rate charged by bank used to determine the amount of borrowing Costs eligible for capitalization.

w) The Company has re-assessed its embedded lease arrangements and is reasonably certain that the lease agreement with TATA Motors Limited will be further extended on existing terms for a period of 15 years. Accordingly impact of Ind AS 116 has been computed considering such extended period. Consequently, the impact of cumulative adjustment due to extension of lease period amounting to Rs. 2,417.19 lacs has been adjusted in retained earnings (Other equity).

x) As per Ind AS, the financial liability of interest free loan from PICUP is to be measured at fair value and the difference between disbursed interest free loan amount and fair value is to be recognised as Government grant. The Company has availed mandatory exception under Ind AS 101 and accordingly, change done in accounting treatment on the amount carried forward on the date of transition. After transition date, the difference between interest free loan and fair value has been recognised as Government grant as at Balance Sheet date. Also Government grant has been recognised in the Statement of Profit and Loss as an income on a internal rate of return basis spread over the period of grant and interest on fair value of Government grant on its inception has been recognised as finance cost.

y) As per Ind AS, the financial liability of interest free loan from PICUP is to be measured at fair value and the difference between disbursed interest free loan amount and fair value is to be recognised as Government grant. The Company has availed mandatory exception under Ind AS 101 and accordingly, change done in accounting treatment on the amount carried forward on the date of transition. After transition date, the difference between interest free loan and fair value has been recognised as Government grant as at Balance Sheet date. Also Government grant has been recognised in the Statement of Profit and Loss as an income on a internal rate of return basis spread over the period of grant and interest on fair value of Government grant on its inception has been recognised as finance cost.

z) As per Ind AS, all items of income and expense recognised in a period should be included in the Statement of Profit and Loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are recognised in profit or loss and also shown in the Statement of Profit and Loss as ‘other comprehensive income' includes re-measurements of defined benefit plans.

zc) Previous year figures had been reclassified, regrouped, rearranged wherever necessary.