Security and terms & conditions for above loans Repayable on Demand: #

Cash Credit facility is secured by hypothecation of stocks of Raw Materials, Stock of consumable stores, Stock-in-Transit, finished goods, Book debts and Personal Guarantee by Mr. Anand Goel.

1. Working Capital Facilities, granted from HDFC Bank Limited, Emerging corporate group branch, Devendra Nagar, Raipur are secured by hypothecation of entire stocks of raw material, finished goods, stocks in trade, Stores and spares, Book Debts and advance to suppliers of raw materials and 1 st charge on entire current assets (BOTH present and future) of the company, Movable Fixed Assets and Immovable Fixed Asset being Land Factory and Building bearing Kh No. 372/1, 372/4 at village Sarora new plot no. 519, 520, 521 and 522 Urla Raipur at measuring 217700 Sqft and property situated ahead of Shri Bajrang Power and Ispat Limited, opposite Balaji Carbon bearing Kh. No. 151/4, 151/5, 150 & 151/1 part. P. Ha. No. 101/29, Borjhara Guma Road Raipur of the company.

2. Quarterly Returns filed by company with bank are in agreement with books of accounts.

Unsecured loan from Corporate Body

The loan amount shall be repayable on the expiration of the term or such extended term as the case may be. The entire loan can be repayable before the expiration of the term at the option of the borrower. The agreement continued for a period from 01.04.2023 to 31.03.2028.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflations, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of Plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.

Leave encashment

The obligation for leave encashment is recognised during the year of Rs. 16.60 Lakhs (P.Y.Rs. 15.04 Lakhs), is equivalent to one-month salary and charged to Profit & Loss Statement.

37 CAPITAL MANAGEMENT

The Company adheres to a robust Capital Management framework which is underpinned by the following guiding principles;

a) Maintain financial strength to attain AAA (Presently rating BBB) ratings domestically and investment grade ratings internationally.

b) Ensure financial flexibility and diversify sources of financing and their maturities to minimize liquidity risk while meeting investment requirements.

c) Proactively manage group exposure in forex, interest and commodities to mitigate risk to earnings.

d) Leverage optimally in order to maximize shareholder returns while maintaining strength and flexibility of the Balance sheet.

This framework is adjusted based on underlying macro-economic factors affecting business environment, financial market conditions and interest rates environment.

38 FINANCIAL INSTRUMENTS

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to the short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counter party. Based on this evaluation, allowances are taken to account for the expected losses of these receivables.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data

The net exposures have natural hedges in the form of future foreign currency earnings and earnings linked to foreign currency for which the company may follow hedge accounting.

Interest Rate Risk

The exposure of the company’s borrowing and derivatives to interest rate changes at the end of the reporting period are as follows

Commodity Price Risk

Commodity price risk arises due to fluctuation in prices of raw material. The company has a risk management framework aimed at prudently managing the risk arising from the volatility in raw material prices and freight costs.

The company’s commodity risk is managed centrally through well-established trading operations and control processes. In accordance with the risk management policy, the Company carefully calibrates the timing and the quantity of purchase.

Credit Risk

Credit risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit risk arises mainly from the outstanding receivables from customers.

The company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The credit ratings/market standing of the customers are evaluated on a regular basis.

Bank, Cash and cash equivalents

Bank, Cash and cash equivalents comprise cash in hand and deposits which are readily convertible to cash. These are subject to insignificant risk of change in value or credit risk.

No significant changes in estimation techniques or assumptions were made during the reporting period Liquidity Risk

Liquidity risk arises from the Company’s inability to meet its cash flow commitments on time. Prudent liquidity risk management implies maintaining sufficient stock of cash and marketable securities. The Company maintains adequate cash and cash equivalents along with the need-based credit limits to meet the liquidity needs.

40 The Company is in the business of manufacturing steel and frozen food products having similar economic characteristics, primarily

with operations in India and regularly reviewed by the Chief Operating Decision Maker for assessment of Company’s performance and resource allocation. The Company has two primary segments i.e. Structural Rolling Mill and ready to cook frozen food. The information relating to domestic and export revenue from its reportable segment has been disclosed as below:

41 i) The company is entitled to receive grants under Chhattisgarh State Food Processing Mission, Scheme of Chhattisgarh State Govt approved by implementation committee letter no. CSIDC/IPPD/2021/511 dated 26-03-2021. The terms and conditions of grants stated in the scheme has been duly complied.

ii) Grants Related to capital assets of Rs. 500 lakhs which has been received in three instalments i.e. 25%, 50% and 25% during FY 2021 -22, 2022-23 and 2023-24 respectively. It is shown as deferred income in note no 13 and to be recognised in the Statement of Profit and Loss on a systematic basis over the useful life of the asset.

42 Balances of the trade receivables, trade payables, loans and advances etc. are subject to confirmation and reconciliation.

46 In opinion of the Board, the value of realization of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the financial statement.

47 In accordance with the Indian Accounting Standard (IND AS-36) on "Impairment of Assets" issued by the Institute of Chartered Accountants of India, the Company during the year carried out an exercise of identifying the assets that may have been impaired in respect of each cash generating unit in accordance with the said Accounting Standard. The Company has not identified any Fixed Assets to be materially impaired mainly on account of economic performance and alternative viability of such assets and accordingly no amount has been charged as impairment loss to the Profit & Loss Account at the year end.

48 Inventories and consumption of stores materials have been taken as valued and certified by the management.

50 Amounts have been rounded off to the nearest Lakhs and previous years figures have been regrouped, rearranged and reclassified whenever considered necessary to confirm to the current presentation.

51 APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the board of directors on May 30th 2024.

52 The previous year figures have been regrouped and/or rearranged wherever necessary.