L) Provisions and Contingencies
Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of
funds resulting from past operations or events and the amount of cash outflow can be reliably estimated. The timing of
recognition and quantification of the liability requires the application of judgement to existing facts and circumstances,
which can be subject to change.
Management judgment is required for estimating the possible outflow of resources, if any, in respect of contingencies/
claim/ litigations/ against the Company as it is not possible to predict the outcome of pending matters with accuracy.
The carrying amounts of provisions and liabilities and estimation for contingencies are reviewed regularly and revised to
take account of changing facts and circumstances.
M) Onerous contracts
A provision for onerous contracts is recognised when the expected benefits to be derived by the Company from a contract
are lower than the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present
value of the lower of the expected cost of terminating the contract and the expected net cost of continuing with the
contract. Before a provision is established, the Company recognises any impairment loss on the assets associated with that
contract.
N) Income taxes
Tax expense for the year comprises current and deferred tax. The tax currently payable is based on taxable profit for the
year. Taxable profit differs from net profit as reported in the statement of profit and loss because it excludes items of income
or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.
The Company's liability for current tax is calculated using tax rates and tax laws that have been enacted or substantively
enacted by the end of the reporting period.
Deferred tax is the tax expected to be payable or recoverable on differences between the carrying values of assets and
liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit and is
accounted for using the balance sheet liability method.Deferred tax liabilities are generally recognised for all taxable
temporary differences. In contrast, deferred tax assets are only recognised to the extent that it is probable that future
taxable profits will be available against which the temporary differences can be utilised.
The carrying value of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset
is realised based on the tax rates and tax laws that have been enacted or substantially enacted by the end of the reporting
period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to cover or settle the carrying value of its assets
and liabilities.
Deferred tax assets and liabilities are offset to the extent that they relate to taxes levied by the same tax authority
and there are legally enforceable rights to set off current tax assets and current tax liabilities within that jurisdiction.
Current and deferred tax are recognised as an expense or income in the statement of profit and loss, except when they
relate to items credited or debited either in other comprehensive income or directly in equity, in which case the tax is also
recognised in other comprehensive income or directly in equity.
Deferred tax assets include Minimum Alternate Tax (MAT) paid in accordance with the tax laws in India, which is likely to
give future economic benefits in the form of availability of set off against future income tax liability. MAT is recognised
as deferred tax assets in the Balance Sheet when the asset can be measured reliably and it is probable that the future
economic benefit associated with the asset will be realised.
O) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the
revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of
the consideration received or receivable net of discounts, taking into account contractually defined terms excluding taxes
or duties collected on behalf of the government.
Sale of Goods
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have been transferred to
the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the amount due, associated
costs or the possible return of goods."
Sale of Services
Revenue is recognised when it is earned and no significant uncertanity exists as to its realisation or collection.
nterest Income, Dividend and Claims
Interest income is accrued on a time proportion basis, by reference to the principal outstanding and the effective interest
rate applicable.
Dividend Income is recognised when the right to receive payment is established. Insurance Claims/ Other claims are
accounted as and when admitted/ settled.
Other Operating Revenue
Export incentive and subsidies are recognised when there is a reasonable assurance that the company will comply with the
conditions and the incentive will be received.
Revenue from the sale of By products is recognised when the significant risks and rewards of ownership have been
transferred to the buyer. No revenue is recognised if there are significant uncertainties regarding recovery of the amount
due, associated costs or the possible return of goods.
P) Foreign currency transactions and translations
The financial statements of the Company are presented in Indian rupees ('), which is the functional currency of the
Company and the presentation currency for the financial statements.
In preparing the financial statements, transactions in currencies other than the Company's functional currency are
recorded at the rates of exchange prevailing on the date of the transaction. At the end of each reporting period, monetary
items denominated in foreign currencies are re-translated at the rates prevailing at the end of the reporting period. Non¬
monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rates prevailing on
the date when the fair value was determined. Non-monetary items that are measured in terms of historical cost in a foreign
currency are not translated.
Exchange differences arising on the retranslation or settlement of other monetary items are included in the statement of
profit and loss for the period.
Q) Borrowing Costs
Borrowing cost comprises of interest and other costs incurred in connection with the borrowing of the funds. All
borrowing costs are recognized in the Statement of Profit and Loss using the effective interest method except to the extent
attributable to qualifying Property Plant Equipment (PPE) which are capitalized to the cost of the related assets. A qualifying
PPE is an asset, that necessarily takes a substantial period of time to get ready for its intended use or sale. Borrowing cost
also includes exchange differences to the extent considered as an adjustment to the borrowing costs.
R) Cash and Cash Equivalents
Cash and cash equivalents as indicated in cash flow statement comprise cash at bank and in hand and short-term
investments with an original maturity of three months or less.
S) Segment Reporting
Identification of Segments
The Company has identified Iron & Steel products as its sole operating segment and the same has been treated as primary
segment. The Company's secondary geographical segments have been identified based on the location of customers and
then demarcated into Indian and overseas revenue earnings.
T) Earnings Per Share
Basic earnings per share is calculated by dividing the net profit or loss for the period attributable to equity shareholders by
the weighted average number of equity shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.
(i) Term Loan are secured by way of:
(a) Pari Passu first charge on immovable and movable fixed assets related to factory at Raturia, Angadpur, Durgapur
(except assets purchased on lease or hire purchase basis).
(b) Pari passu second charge by way of hypothecation on stock, book debts and other current assets of the company
related to factory at Raturia, Angadpur, Durgapur.
(ii) Cash credits from banks are secured by way of:
(a) Pari passu first charge by way of hypothecation on stock, book debts and other current assets of the company related
to factory at Raturia, Angadpur, Durgapur.
(b) Pari Passu first charge on immovable and movable fixed assets related to factory at Raturia, Angadpur, Durgapur.
(c) Guarantee have been provided by the Promoters and their relative in their personal capacity.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the man¬
agement of these risks. The Company's senior management is supported by the Board that advises on financial risks and the
appropriate financial risk governance framework for the Company. The Board provides assurance to the Company's senior man¬
agement that the Company's financial risk activities are governed by appropriate policies and procedures and that financial risks
are identified, measured and managed in accordance with the Company's policies and risk objectives. All derivative activities for
risk management purposes are carried out by specialist personnel's that have the appropriate skills, experience and supervision.
The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.
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 loans and borrowings, deposits and derivative financial
instruments.
The sensitivity analysis in the following sections relate to the position as at 31 March 2025 and 31 March 2024.
The sensitivity analysis have been prepared on the basis that the amount of debt and derivatives.
The following assumptions have been made in calculating the sensitivity analysis:
The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on
the financial assets and financial liabilities held at 31 March 2025 and 31 March 2024.
The sensitivity of equity is calculated by considering the effect of any associated derivatives at 31 March 2025 and 31 March
2024 for the effects of the assumed changes of the underlying risk.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's
long-term debt obligations with floating interest rates.
The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company's interest rate exposure
is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the
liquidity and fund requirements for its day to day operations like short term loans.
The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also
assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at
that date. The period end balances are not necessarily representative of the average debt outstanding during the period.
The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and
borrowings affected, after the impact of derivative instruments. With all other variables held constant, the Company's profit
before tax is affected through the impact on floating rate borrowings, as follows:
primarily to hedge foreign exchange exposure. Any weakening of the functional currency may impact the Company's cost of
imports and cost of borrowings and consequently may increase the cost of financing the Company's capital expenditures.
The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It
hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.
Foreign currency sensitivity
The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables
held constant. The impact on the Company's profit before tax is due to changes in the fair value of monetary assets and liabili¬
ties. The Company's exposure to foreign currency changes for all currencies other than US Dollars is not material.
The movement in the post-tax effect is a result of a change in the fair value of derivative financial instruments not designated
in a hedge relationship and monetary assets and liabilities denominated in ', where the functional currency of the entity is
a currency other than '. Although the derivatives have not been designated in a hedge relationship, they act as an economic
hedge and will offset the underlying transactions when they occur.
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 (primarily trade receivables) and from its
financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial
instruments.
Customer credit risk is managed by each divisions subject to the Company's established policy, procedures and control relating
to customer credit risk management. Outstanding customer receivables are regularly monitored and any shipments to major
customers are generally covered by letters of credit or other forms of credit insurance.
Liquidity risk
Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk manage¬
ment is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.
The Company has obtained fund and non-fund based working capital limits from various banks. The Company's objective is to
maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, buyer's credit
and other means of borrowings. The company invests its surplus funds in liquid schemes of mutual funds, which carry no/low
mark to market risk.
The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company
has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing
lenders.
Fair value hierarchy:
The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable
or unobservable and consists of the following three levels:
Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at
the measurement date;
Level 2 inputs are inputs, other than quoted prices included within Level 1, that are observable for the asset or liability, either
directly or indirectly; and
Level 3 inputs are unobservable inputs for the asset or liability.
The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar assets and liabil¬
ities in the active market. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach
to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a range of possible fair
value measurements and the cost represents estimate of fair value within that range
The following table summarises financial assets and liabilities measured at fair value on a recurring basis and financial assets that
are not measured at fair value on a recurring basis (but fair value disclosure are required):
$ Debt service coverage ratio increased due to increase in profit and reduction in borrowings and interest thereon.
A Return on equity is increased in line with increase in profitability of the Company.
* Net profit ratio increased due to better margin during the year.
b. Others
Other than in the normal and ordinary course of business there are no funds that have been advanced or loaned or invested
(either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other per¬
sons or entities, including foreign entities ("Intermediaries”), with the understanding, whether recorded in writing or otherwise,
that the Intermediary shall directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
("Ultimate Beneficiaries”) by or on behalf of the Company; or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries. There have been no funds that have been received by the Company from any persons or entities, including foreign
entities ("Funding Parties”), with the understanding, whether recorded in writing or otherwise, that the Company shall directly
or indirectly, lend or invest in other persons or entities identified in any manner whatsoever ("Ultimate Beneficiaries”) by or on
behalf of the Funding Party or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
43. The Company did not have any long term contracts including derivative contracts for which there were any material
foreseeable losses.
44. The Company has a system of obtaining periodic confirmation of balances from banks and other parties. Further, some
balances of Trade and other receivables, Trade and other payables and Loans are subject to confirmation/reconciliation.
Adjustments, if any, will be accounted for on confirmation/reconciliation of the same, which will not have a material impact.
45. In the opinion of the management, leave is meant to be availed of and the employees has been advised to plan their leave
in advance while in service and also immediately before superannuation. Accordingly, leave encashment liability for the
year has been recognised and provided for only when such encashment was allowed.
46. The Company has a system of physical verification of Inventory on regular intervals and Property, Plant & Equipment in a
phased manner to cover all items over a period of three years.
47. With effect from April 1,2023, the Ministry of Corporate Affairs (MCA) has made it mandatory for every company incorporated
in India, which uses accounting software for maintaining its books of account, to use only such accounting software which
has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of
account along with the date when such changes were made and ensuring that the audit trail cannot be disabled.
The Company has been maintaining its books of accounts in the Improvar Enterprise Resources Planning (ERP) which has
feature of recording audit trail of each and every transaction, creating an edit log of each change made in books of account
along with the date when such changes were made and ensuring that the audit trail cannot be disabled, throughout the
year as required by proviso to sub rule (1) of rule 3 of The Companies (Accounts) Rules, 2014 known as the Companies
(Accounts) Amendment Rules, 2021.
Further, the audit trail, to the extent maintained in prior year, has been preserved by the Company as per the statutory
requirements for record retention.
48. Previous year figures have been regrouped, wherever necessary, to confirm to the current year grouping.
Signatories to Schedules 1 to 48.
As per our report of even date
For R Gopal & Associates For and on behalf of the Board of Directors
Firm Regn No: 000846C
Chartered Accountants Sd/- Sd/-
Rama Shankar Gupta Sanjay Kaloya
Sd/- Chairman & Managing Director Director
CA. Sandeep Kumar Sawaria DIN : 07843716 DIN : 07970640
(Partner)
Membership No. 061771 Sd/- Sd/-
Place: Kolkata Amit Agrawal Bharat Agarwal
Date: The 28th Day of May 2025 Chief Financial Officer Company Secretary
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