Not™
a) Outstanding loon amounting to Re 6162.02 Lakhs and Rs. J339.93 Lakhs as on 28-00-2021, taken Iran Flawless Holding and Industries Limited and
Evergrowing Iran and Fuvvesi Private- Limited respectively has been. Vide agreement dated 29 March 2021, Innrocably assigned, transtcrrcd and released
unto M/e Serve Balsji Steel and Metal Private Limited. Consequently, entire outstanding of Rs, 11.501.98 Lakhs has been assigned to M/s Shier Balaji
Steel and Metal Private Limited. The loan is secured by exclusive charge and sole absolute right on the iixed assets vis-a-vis land, budding and plant 4c
machinery of the company. The loan is repayable on one time payment of Ra. 300.00 Lakhs in May 2024 and thereafter monthly installments of Rs. 300.00
Lakhs each, starting from June 2024. The interest rate is 850% per annum.
b) Outstanding borrowing of Rs. 15,158.79 Lakhs (FY - Rs. 15,158.79 Lakhs) from related party id the company has been written back during the year. The
same has been shown os <ui exception item in Note No. 31A.
c) Detail of securities provided and terms of rcpavment
Secured Borrowings:
1) Loan from Shree ha lap and Metal Private Limited! Reassigned inss of Rs. 11,267,53 Latch* (PY - Ra. 11,309-21 Lakhs) vide Joan agreement dated 29
March 2024 The loan La secured by exclusive charge and sole and absolute right on the assets vls-a-rta Land, building and plant and machinery of the
company. The loan is reparable on one time payment of Rs. 3jOO,WUl(N) in May 2024 and thensaJter monthly LnatalLmerds of Ra. 300.00 Lakhs starting from
June 2021 The Interest rale U Nil wej. 24 October, 2024
Z) Loon from bMcira Investments Private Limited. The loons ore secured by, on a first charge basis, entire current assets and other receivables, both
present and future of the company, the loans are repayable on demand and carries an Interest of 9k per annum.
Utirixuflkl flotrflM'laitf
3) Tuan from Shlvalilcrirw 5 reel Trading Private limit®* The company has hem sanctioned loan ofRs 2/XTO.tX) I akhsfPY Rs. 2.000,00 lakhs) vide loan
agreement dated 01 April 2073 The loan is repayable on demand and carries an interest of 8.503 per annum.
Notes-;
a) The Company has been asked for payment of energy duty against the demand issued by Chief Electrical Inspector and Safety.
Government of Chhallisgarh of Ks. 226.89 Lakhs (principal sum) and interest of Ks. 89.04 Lakhs (computed till 30-Jun 2021). The
Company' has filed writ petition in the Hon'ble High Court of Chhallisgarh against the demand. Pursuant to direction of Hon'ble High
Court oi Chhaitisgarh dated 09-Sep-2021, the company was asked to deposit 25% of principal sum and 10% of interest amount to avoid
any coercive steps. The Company has paid Ks. 65.63 Lakhs accordingly via cheque dated 01-0ct-2021 and the same has been carried
under "amount deposited against pending disputed" under Note 10 of tire financial statements. The probability and timing of outflow
with regard to tire matter depends on the final outcome of tire dispute (VVPC 3611/2021).
b) One of the lender of the company has filed an application against the company u/s7 of the Insolvency and Bankruptcy Code,. 2016
for non-payment of borrowings by the company. The company has written back such borrowings during the current period as it
believes that the amount is time barred and not payable. The matter is pending before the NCLT
c) I be company has been accused by Serious Fraud Investigation Office (SFTO) u/s 447 of Ihe Companies Acl, 2<H3. the malter i.s sub-
judice.
d) All contingent liabilities arc net oi sum paid, if airy, against such demands.
35 Information on Irasr transactions pursuant to Ind AS 116 - Tarases
I he company h&3 taken a piece at land in the village Amen Akbari A Dagon Iehsil Heiha, District Diloapur, Chhaltisgarh comprising of an area
measuring approximately 60 acres on lease via lease deed dated 03 June, 2015 for a lease term of 80 year* commencing from 03 June 2015 to 20
August, 21195 for ib expansion project. Further, the company has taken vehicle an lease, the company has recognised such lease as an operating
lease during the current period.
36 Disclosure related to lad AS -1
(I) Departure from the compliance from fair valuation of Investments measured at fair value through other comprehensive Income (TV IOCJ)
under Ind AS -109:
The company has not been aide to measure its investments to equity instruments at fair value through other comprehensive Income (FVTOCI). The
fair valuation ot such instruments was impracticable considering the time and cost factors.
(a) The management of the company conclude that the financial statements present a true and fair view of the entity's financial position, financial
performance and cash flows except for departure from aforesaid requirement of Ind AS.
(b) Other disclosure are as follows:
- Title of the Ind AS; Ind AS 109 "Financial Instruments’
- Nature of the departure : Fair valuation of investments in equity instruments measured at fair value through other comprehensive income
(FVTOCI)
(c) The company is not able to materially ascertain the financial effect such departure may have of its financial statements.
37 Information on segment reporting pursuant to Ind AS It®
The Company I* in the business of manufacturing steel products having similar economic characteristic*, primarily with operations In India and
regularly reviewed by the Chief Operating Decision Maker ('CODM') for assessment of Company's performance and resource allocation..
The information relating to revenue from external customers amt location of non-current asset* nf its single re|xiriable segment has lieen dimloxed
as fcsdow:
c) The carrying amount of financsai assets and financial liabilities measured at amortised cost to these standalone finandaJ statements ate a reasonable approximation
of Ihrii fair values since the Company does not anticipate that the carrying amounts would be HgiuhcarUy different from the values that would eventually be received
or settled.
d) dtnancia I averts that an* measured at fair valor fn these finanda I statement* and are grouped into tfime Irvr.l* of a fair Va lue hvvarrhy. The tfrrre I evet* are defined
based on the observability of significant inputs to the measurement, are as follow*:
Level 1: quoted prices (unadjusted) in active markets for Identical assets or liabilities;
Level 2: input* other than quoted prices included within Level 1 that are observable for the attest or liability, cither directly or indirectly; or
I evrl 3; unobservable inputs for the asset or Hability.
e) Valuation techniqui; used to ti**tctminL* lair valivf
Tbe Company has drvagnalnd its invnstments in ntpiity shams at tair vahir through othpr rnmprrhpnsivp inrnmp in terms nf Incf AS 1IW Both IhF rmrWnp rompanips
had mndortod valuation nf their rcpirty sharps under the provision* nf Ruin T11.1A of the tnrume Tax Rules, 1W2 The Company' has used such valuation reports to
arrive1 at thr lair value as at the haUnsv sheet date Thp management believes that valuation tpphmqiips under such statute am appropriate in the rhrmnstanivs.
42 FLnancUJ risk management
The Company's prindpal financial liabilities mainprise borrowings, lease liabilities. trade and other payables. The financial liabilities, truer-alia, pro* ides finance to he
Company to support lu opera Hone. The Company's principal financial assets include investments, trade and olliei receivables, and casli and cash equivalents derive
directly from Its operations
The Company la rxpoK-d lo credit risk, liquidity risk and majkct risk, Tfir Company's senior marujgrmom oversees the management of these risks The Company's
senior management ensures that the Company's financial risk activities arc governed by appropriate policies and procedures and that financial risks arc identified,
measured and manaecd in accordance with thrCorrrrwnv'; onlines and risk obscctivcs.
at Credit risk
Credit risk refute to the risk uf default on its uWigiiHun by the counter party resulting ir. a financial lias. The maximum exposure tu dm credit risk at the reporting date
in pr-mertly from loans and trade reasvubles. trade reoeivablia are typically unsecured end at* derived from revenue tssmed through LU-vttrmenc Ihe Gmtpanv has
used the expected credit loss model tu enca the Impairment loss or gain on trade receivables on case tn cose boras m termn of peroeptron or management
b) liuuidify risk
Liquidity risk is defined its the risk that the Company will not be able to settle or meet its obligations on time or a: reasonable price The Company's objective is to at all
limes maintain optimum levels of liquidity to meet its cash and liquidity requirements The Company closely monitors its liquidity position and maintains adequate
source of financing through the use of short term bank deposits, demand loans, and credit facility Procassos and policies related to such risks are overseen by senior
management.
ft) Maturities profile of financial liabilities
Tluc table below provides details regarding the contractual maturities at significant finandnl liabilities:
c) Market risk
Market risk Is the rtsk Out Ihe fair value of future cash (lows of a financial instrument win fluctuate because of changes in market prices. Market prices comprises three
types of risk: currency rate risk, interest rate nsk and other price risks, such as equity price risk and commodity price nak. Financial instruments affected by market
risks include borrowings The sensitivity analysis m the following sections relate to the position as ai March 31.2023. The analyses exdude the impact of movements In
market variables on the carrying values of gratuity, pension obligation and other post-retlremert obligations; provisions, and the nonflnandal assets and liabilities.
The seneduvity of the relevant Profit and Loss item is the effect of the assumed changes in the respective market risks. This Is based on the financial assets and financial
liabilities held as of March 312023.
(il Interest rare risk
Interest rate nskit the risk that the fair value or future cash flows of a financial Instrument will fluctuate becanseof changes tn market interest rates There Company is
exposed to risk of changes in borrowing rales. The Board oonttnunuslr monitors the prevailing interest rants in the market
Interest rate rink exposure
The racpcwOTurrf the group's borrowing to interest rate rhanryis at the end nf The reporting period areas foTlowsc
43 Capital maniacmcn<
fa) Sisk management
Km the pnrpi-s,-. of the Company's L-a|ntel management. Capital tncludea equity attributable In the equity holders <f the Company and ail other equity reserve*. The
primary nbjtr tier of the Company's capital management la tu ensure that it maintains an efficient capital structure and maximize shareholder value. The Company
manage* its capita I structure and maxes adjustments in light of change* in economic conditions and the requirements of the financial covenants, To mairtain nr adjust
the capital structure, the Company may adjust the dividend payment tn shareholders or issue new share*. The Company la not subject tn any externally imposed
capital requirements. No changes were made in the objectives, policies or processes tor managing capital during the year ended March 31,21JZ1 and March 31,21522.
45 Other statutory information
(a) Details, of revaluation of property, plant and equipment including right-of-use assets and intangible assets
The company has not revalued its property, plant and equipment including right-of-use assets and intangible assets
(b) Relationship with struck-off companies
The company has no transactions with companies struck-off under section 248 and section 560 n( the Companies Art, 21)15 and Companies
Act, 1956 respectively.
(c) Details of benami property held
Nu proceedings have been initiated or pending against the company lor holding any benami property under the Benami Transactions
(Prohibition) Act, 1988 (45 ol 1988) and rules made thereunder.
(d) Wilful defaulter
The company has not boon declared as wilful defaulter by any bank or financial institution or other lender.
(e) Undisclosed income
The company has not surrendered or disclosed any transaction as income during the year In the tax assessments under the Income Tax Act.
1981.
(0 Utilisation of borrowed funds
(A) The company has nut advanced, loaned or invested funds to any otitcr peraon(s) or entity(ies), including foreign entities (intermediary)
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 beneficiary) or
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
(B) The company has not received from any fund from any perstm(s) or entity (ies) including foreign entities (Funding Party) with the
understanding that the company shall:
(a) directly or indirectly lend or invest in other personfs) or entities identified in any manner whatsoever by or on behalf of the funding party
(ultimate beneficiaries) nr
(b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
46 Although the Company's net worth is negative as at balance sheet date, the management is of the view that the company is generating cash
profits from its operations. This is evident from current year's financial position of the company. Accordingly, loss making scenario is
unlikely to continue in days ahead. Consequently, the company has prepared its financial statements on going concern basis.
47.01 The statutory returns under Income Tax Act, 1961 cr other laws and regulations may be subject to revision so as to reconcile them with the
particulars of the books of aernunt,
47.02 The previous year figures have been regrouped, reclassified as and where required.
47.05 The figures related to trade receivables, trade payables, borrowings, advances to suppliers and advances from customers are subject to
confirmations and reconciliations, if any.
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