o) Provisions and Contingencies:
A provision is recognised when:
• The Company has a present obligation as a result of a past event;
• It is probable that an outflow of resources embodying economic benefits will be required
to settle the obligation; and
• A reliable estimate can be made of the amount of the obligation.
Provisions are measured at the management's best estimate of the expenditure required
to settle the present obligation at the end of the reporting period. If the effect of the time
value of money is material, provisions are discounted using a current pre-tax rate that
reflects current market assessments of the time value of money and the risks specific to
the liability. The increase in the provision due to the passage of time is recognised as
finance costs.
The Company does not recognise contingent liabilities but it is disclosed in the financial
statements unless the possibility of an outflow of resources embodying economic benefits
is remote.
Contingent asset is not recognised in the financial statements.
p) Earnings per Share:
Basic earnings per share is calculated by dividing the profit attributable to owners of the
Company by the weighted average number of equity shares outstanding during the
financial year.
Diluted earnings per share adjusts the figures used in the determination of basic earnings
per share after considering the income tax effect of all finance costs associated with
dilutive potential equity shares, and the weighted average number of additional equity
shares that would have been outstanding assuming the conversion of all dilutive potential
equity shares.
The Company has not issued any dilutive potential equity shares.
q) Exceptional items:
Certain occasions, the size, type or incidence of an item of income or expense, pertaining
to the ordinary activities of the Company is such that its disclosure improves the
understanding of the performance of the Company, such income or expense is classified
as an exceptional item and accordingly, disclosed in the notes accompanying to the
financial statements.
3. USE OF JUDGEMENTS, ESTIMATES AND ASSUMPTIONS
While preparing financial statements in conformity with Ind AS, the management has
made certain estimates and assumptions that require subjective and complex judgments.
These judgments affect the application of accounting policies and the reported amount of
assets, liabilities, income and expenses, disclosure of contingent liabilities at the
statement of financial position date and the reported amount of income and expenses for
the reporting period. Financial reporting results rely on the management estimate of the
effect of certain matters that are inherently uncertain. Future events rarely develop
exactly as forecasted and the best estimates require adjustments, as actual results may
differ from these estimates under different assumptions or conditions. Estimates and
underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognized prospectively.
Judgment, estimates and assumptions are required in particular for:
a) Determination of the estimated useful life of tangible assets
Useful life of tangible assets is based on the life prescribed in Schedule II of the
Companies Act, 2013. In cases, where the useful life is different from that prescribed
in Schedule II, they are based on technical advice, taking into account the nature of the
asset, the estimated usage of the asset, the operating conditions of the asset, past
history of replacement, anticipated technological changes, manufacturers' warranties
and maintenance support.
b) Recognition and measurement of defined benefit obligations
The obligation arising from defined benefit plan is determined on the basis of
actuarial assumptions. Key actuarial assumptions include discount rate, trends in
salary escalation, actuarial rates and life expectancy. The discount rate is determined
by reference to market yields at the end of the reporting period on government bonds.
The period to maturity of the underlying bonds correspond to the probable maturity
of the post-employment benefit obligations. Due to complexities involved in the
valuation and its long-term nature, defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions are reviewed at each reporting period.
c) Recognition of deferred tax liabilities
Deferred tax assets and liabilities are recognized for the future tax consequences of
temporary differences between the carrying values of assets and liabilities and their
respective tax bases, and unutilized business loss and depreciation carryforwards and
tax credits. Deferred tax assets are recognized to the extent that it is probable that
future taxable income will be available against which the deductible temporary
differences, unused tax losses, depreciation carry-forwards and unused tax credits
could be utilized.
d) Discounting of financial assets / liabilities
All financial assets / liabilities are required to be measured at fair value on initial
recognition. In case of financial assets / liabilities which are required to be
subsequently measured at amortized cost, interest is accrued using the effective
interest method.
e) Recoverability of Disputed Advances and Claims
The Company exercises judgement in assessing the recoverability of disputed
advances and amounts paid under protest. Such assessments involve consideration of
legal opinions, historical experience, status of legal proceedings and other relevant
factors. Changes in these assumptions may affect the carrying amount of such assets.
3. A. Critical accounting judgments and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements,
estimates and assumptions about the reported amounts of assets and liabilities, and
income and expenses that are not readily apparent from other sources. Such judgments,
estimates and associated assumptions are evaluated based on historical experience and
various other factors, including estimation of the effects of uncertain future events,
which are believed to be reasonable under the circumstances. Actual results may differ
from these estimates. The estimates and underlying assumptions are reviewed on an on¬
going basis. Revisions to accounting estimates are recognised in the period in which the
estimate is revised if the revision affects only that period or in the period of the revision
and future periods if the revision affects both current and future periods.
The following are the critical judgements and estimations that have been made by the
management in the process of applying the Company's accounting policies and that have
the most significant effect on the amount recognized in the financial statements and/or
key sources of estimation uncertainty that may have a significant risk of causing a
material adjustment to the carrying amounts of assets and liabilities within the next
financial year
a) Inventories:
The Company assesses inventories at each reporting date for indicators of obsolescence,
slow-moving, non-moving, damaged or excess stock. An allowance for inventory
obsolescence is recognised based on management's estimate of the inventories' net
realisable value, considering factors such as ageing, historical consumption patterns,
technological changes, physical condition and expected future demand.
Inventory shrinkage identified during physical verification, including losses arising from
handling, storage, pilferage, evaporation and other inventory count variances, is
recognised in the Statement of Profit and Loss in the period in which such shortages are
identified.
The allowance for inventory obsolescence and shrinkage is reviewed at each reporting
date and adjusted to reflect the best estimate of the recoverable value of inventories.
(vi) Estimation of fair value
The fair values of the investment properties have been carried out by an independent valuer. The best evidence of fair value is current prices
in an active market for similar properties. The investment properties have been fair valued using the sales comparison method in which due
weightage has been given to property rates as evident from sales instances of comparable land and building found upon market enquiry,
area, location, nearby civic amenities available etc. This is a Level 2 measurement as per the fair value hierarchy set out in fair value
measurement disclosures.
*Advances to vendors amounting to ^122.90 Lakhs are under dispute and are subject to legal proceedings initiated by the Company. Based on legal advice
and management's assessment of the facts and circumstances, the Company expects the amount to be recoverable and accordingly no impairment
provision has been recognised.
The Companymade a payment ofRs. 39.80/- Lakhs to Dakshin Gujarat Vij CompanyLimited (DGVCl) under protest. This payment relates to disputed claim
.The Company disputes the validity and/or amount of the payment to DGVCl and has initiated legal proceedings and/or discussions to contest the same.
The payment was made under protest to preserve the Company's rights pending resolution of the dispute. As of the reporting date, the outcome of these
proceedings is uncertain, and therefore, no provision for this payment has been made in the financial statements.
(a) The Company has one class of equity shares having a par value of ^10 each. Each holder of equity shares is entitled to one vote per share. The
equity shares rank pari passu in all respects, including entitlement to dividend and repayment of capital in the event of liquidation of the Company.
(b) There are no shares reserved for issue under options or contracts, including pursuant to the exercise of options or conversion of other securities.
(c) No equity shares have been issued during the current year or the preceding five years for consideration other than cash.
(d) The Company has neither issued any bonus shares nor bought back any of its equity shares during the period of five years immediately preceding
the reporting date.
(e ) There are no calls unpaid and no shares have been forfeited as at 31 March 2026.
(f) No equity shares have been issued pursuant to any scheme of arrangement during the year.
Nature and purpose of other reserves
Capital reserve
Capital reserve represents amounts recognised from transactions of a capital nature and is not available for distribution as dividend to the
shareholders.
Retained earnings
Retained earnings represent the accumulated profits/losses made by the company over the years.
Revaluation surplus
Revaluation surplus represents the surplus arising from the revaluation of Property, Plant and Equipment carried out in earlier years in
accordance with Ind AS 16 - Property, Plant and Equipment.
The revaluation surplus is transferred to retained earnings over the remaining useful lives of the related assets, to the extent of the additional
depreciation arising from revaluation. During the year, ^91.03 lakhs (previous year: ^91.43 lakhs) was transferred from revaluation surplus
to retained earnings within equity, representing the additional depreciation arising from revaluation.
Accordingly, the revaluation surplus stood at ^7,983.09 lakhs as at 31 March 2026 (31 March 2025: ^8,074.12 lakhs).
(i) Loan from corporate (Security details )
(a) Primary : Hypothecation of entire current assets including Raw Raw Material, Work in process, Finished goods, spares and consumables and receivables etc on pari-passu basis.
Extension of Hypothecation of entire current assets (present and future on pari- passu basis).
(b) Collateral: Equitable Mortgage(EM) over the entire fixed assets rankingpan passu. First pari - passu charge on factory building and plant and machinery Pari- passu first charge
over the entire existing fixed assets of the Company including EM over leasehold right (leased by GIDC palej) over factory and admeasuring 241775 SQ MTR in Palej Industrial area
consisting of13,14,15,16,18,2 0,21,2 2, 24tp, 25,26,27, 28tp, 35tp, 36/p. 37.38,39, 40tp, 43 44 45 46, 47and factorybuildingpremises situated thereon within the Village limitof
Palej, Baruch , Gujarat Lease period is 99 years. residual period ot lease 79 years.
(ii) Non Convertible Debenture (Security details )
The Companyhas issued 16,000 Listed Secured Redeemable Non-Convertible Debentures ("NCDs”) of ^87,500 each, partlypaid-up, having a face value of ^1,00,000 each, aggregatingto
^14,000 lakhs (ISIN: INE629B07013). The NCDs are secured, inter alia, by way of:
(i) first-ranking mortgage over the mortgaged properties of Goddard Builders & Constructions Private Limited, Sanish Developers Private Limited and Eesan Estate Developers Private
Limited;
(ii) first-ranking exclusive mortgage over the Steelco Mortgaged Properties of the Company;
(iii) first-ranking hypothecation over the hypothecated properties of Goddard Builders & Constructions Private Limited, Sanish Developers Private Limited and Eesan Estate Developers
Private Limited;
(iv) first-ranking exclusive hypothecation over the hypothecated properties of the Company, including its fixed assets, current assets, trademarks, intellectual property and bank
accounts;
(v) first-ranking pledge over the securities of the Company, Urjah Metallics Private Limited and Goddard Builders & Constructions Private Limited;
(vi) personal guarantees provided by Mr. Alok Jain, Mr. Ankur Saraf and Mr. Yash Aggarwal; and
(vii) corporate guarantees provided by Goddard Builders & Constructions Private Limited, Sanish Developers Private Limited, Eesan Estate Developers Private Limited, Teras Hotels &
Resorts Private Limited, Urjah Metallics Private Limited, Ultimate Investofin Private Limited and Sainaisha Traders Private Limited,
together with demand promissory notes, undated cheques and such other security as stipulated under the transaction documents and the Debenture Trust Deed.
In addition, the Company has proposed to create a first-ranking exclusive mortgage in favour of Vistra ITCL (India) Limited, acting in its capacity as the Debenture Trustee, over the
leasehold land situated at Plot No. 2, GIDC Estate, Palej, District Bharuch, Gujarat, as part of the security for the aforesaid NCDs.
As at 31 March 2 02 6,the aforesaid mortgage over the leasehold land had not been created, as the requisite approval/permission from the Gujarat Industrial Development Corporation
(GIDC) for creation ofthe mortgage was awaited. The Company has represented that the requisite applications and documents have been submitted toGIDC and thatthe mortgage will
be created upon receipt of the requisite approval/permission from GIDC.
For the purpose of the Security Cover Statement, the value of the aforesaid leasehold land has been considered based on the valuation report dated 26 November 2 02 5 issued by R K
Patel, and the land is proposed to form part ofthe exclusive security to be charged in favour ofthe Debenture Trustee. However, since the requisite approval from GIDC had not been
received and the mortgage had not been created as at 31 March 2 02 6, the aforesaid leasehold land did not constitute security actually created in favour of the Debenture Trustee as at
the reporting date.
Basic earnings per share is calculated by dividing the net profit/ (loss) for the year available for equity shareholders (after deducting
preference dividends and attributable taxes) by the weighted average number of equity shares outstanding during the year. For the
purpose of calculating diluted earnings per share, the net profit/ (loss) for the year available for equity shareholders and the weighted
average numbers of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.
(B) Fair value of the assets measured at amortised cost:
Financial assets and financial liabilities measured at amortised cost for which fair valued are disclosed:
Financial Assets:
The carrying value of trade receivables, loans and advances and other financial assets, cash and cash equivalents, other bank balances etc. are
considered to be approximately equal to the fair values.
Financial Liabilities:
Fair values of Loans from banks and others, other financial liabilities, trade payables, etc. are considered to be approximately equal to the carrying values.
32. Financial Risk Management
Risk Management framework
The Company is exposed to various risks in relation to financial instruments. The Company's financial assets and liabilities are summarised by category in note 35. The main types of risks
to which the Company is exposed are market risk, credit risk, and liquidity risk. The Company's risk management is coordinated at its headquarters, in close cooperation with the board
of directors, and focuses on actively securing the Company's short to medium-term cash flows by minimizing exposure to volatile financial markets. The Company does not actively
engage in the trading of financial assets for speculative purposes nor does it write options. The most significant financial risks to which the Company is exposed are described below.
(A) Credit risk
Credit risk is the risk that a counterparty fails to discharge an obligation to the Company. The Company is exposed to this risk for various financial assets such as trade receivables,
security deposits, other receivables, etc. The Company's maximum exposure to credit risk is limited to the carrying amount of the following types of financial assets.
-Trade receivables
-Fixed deposits with banks
-Cash and cash equivalents
-Other financial assets measured at amortised cost
The Company continuously monitors defaults of customers and other counterparties, identified either individually or by the Company, and incorporates this 'information into its credit
risk controls. Where available at reasonable cost, external credit ratings and/or reports on customers and other counterparties are obtained and used. The Company's policy is to deal
only with credit-worthy counterparties.
a) Credit risk management
Cash and cash equivalent and Fixed deposits with banks
Credit risk related to cash and cash equivalents is managed by selecting highly rated banks and diversifying bank deposits and accounts in different banks across the country.
Trade receivables
In the case of export sales, credit risk related to trade receivables is mitigated by taking letters of credit from overseas customers or making sales against advances where credit risk is
high. The Company closely monitors the credit-worthiness of the customers and only sells goods to credit-worthy parties.
Other financial assets measured at amortized cost
Other financial assets measured at amortized cost include security deposits, export incentives receivables, and others. The Company does not see any credit risks from export incentives
receivables since the counterparty involved is government authorities. Credit risk related to other financial assets is managed by 'monitoring the recoverability of such amounts
continuously, while at the same time, internal control systems in place ensure the amounts are within defined limits.
b) Expected credit losses
Company provides expected credit losses based on the following
Trade receivables
The Company recognizes lifetime expected credit losses on trade receivables using a simplified approach and uses historical information to arrive at loss relevant to each category of
trade receivables:
(B) Liquidity risk
Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities
to meet obligations when due. Management monitors rolling forecasts of the Company's liquidity position and cash and cash equivalents on the basis of expected cash flows. The
Company takes into account the liquidity of the market in which it operates. In addition, the Company's liquidity management policy involves projecting cash flows in major currencies
and considering the level ofliquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements, and maintaining debt
financing plans.
Sensitivity analysis
Since the Company did not have any variable-rate financial assets as at 31 March 2 02 6 or 31 March 2025, no separate sensitivity analysis has been presented.
33. Capital management
The Company's capital management objectives are to maintain an appropriate capital structure and sufficient liquidity to support its operations and meet its financial obligations as they
fall due. The Company also seeks to maintain an appropriate balance between debt and equity having regard to its business requirements, financial position and prevailing economic
conditions.
The Company monitors its capital structure on the basis of net debt and shareholders' funds. Net debt comprises borrowings less cash and cash equivalents.
The Company's capital structure is influenced by its operating requirements, availability of financing and the need to meet its debt servicing and other financial obligations. The Company
manages its capital structure through various measures, including raising or repayment of borrowings, issue of equity shares and management of its operating cash flows, as considered
appropriate.
A. Defined Contribution Plans
The Company makes provident fund contributions, which are defined contribution plans, for qualifying employees. Under the scheme, the Company is required to
contribute a specified percentage of payroll costs to fund the benefits. The Company recognised an expense of Rs. 11.47 Lakhs during the year ended March 31, 2026
(March 31, 2025: Rs. 9.11 Lakhs) towards provident fund contributions in the Statement of Profit and Loss.
The contributions payable by the Company are at rates specified under the applicable rules of the schemes. The Company's obligation is limited to the amount
contributed and it has no further contractual or constructive obligation.
B. Defined Benefit Plans
The Company has the following employee benefit obligations: (i) Gratuity, being a post-employment defined benefit plan; and (ii) Leave Encashment / Privilege Leave,
being an other long-term employee benefit.
The obligations have been actuarially valued as at March 31, 2026 using the Projected Unit Credit Method in accordance with Ind AS 19, Employee Benefits.
36.1 Characteristics of Plans and Risks
Gratuity
The Company provides gratuity benefits to eligible employees in accordance with applicable statutory provisions and the Company's scheme. The gratuity benefit is
based on qualifying salary and completed period of service. The actuarial valuation as at March 31, 2026 covers 58 employees.
Leave Encashment
The Company's leave encashment plan is classified as an Other Long Term Employee Benefit - Privilege Leave. The benefit is based on accumulated earned leave and
applicable wages. The valuation covers 58 employees.
Risks associated with the plans
The Company's employee benefit obligations expose it to salary/wage escalation risk, discount rate/interest rate risk, attrition/withdrawal risk, mortality/longevity risk
and experience risk. Changes in these assumptions may materially affect the present value of the obligations. There are no plan assets and hence no investment-related
risk.
37.Segment Reporting
Ind AS 108 Operating Segments requires Management to determine the reportable segments for the purpose of disclosure
in financial statements based on the internal reporting reviewed by Chief Operating Decision Maker (CODM) to assess
performance and allocate resources.
Operating segments are defined as 'Business Units' of the Company about which separate financial information is available
that is evaluated regularly by the Chief Operating Decision Maker or decision making group in deciding how to allocate
resources and in assessing performance.
The Company is engaged in only one business segment. The Company is operating in a single geographical segment i.e.
India. The management considers that these business units have similar economic characteristic nature of the product,
nature of the regulatory environment etc. Based on the management analysis, the Company has only one operating segment,
so no separate segment report is given. The principle geographical areas in which company the Company operates is India.
38.In the opinion of the Board of Directors, Current Assets, Loans & Advances have value at which they are stated in the
Balance Sheet, if realized in the ordinary course of business. The provision for depreciation and for all know liabilities is
adequate and not in excess of the amount reasonably necessary.
39. The company has no any transactions with companies struck off under section 248 of the Companies Act, 2013 or
section 560 of Companies Act, 1956 in Financial Year 2025-2026.
40. The Company do not have any Benami property, where any proceeding has been initiated or pending against the
Company for holding any Benami property.
41. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory
period.
42. The Company has not traded or invested in Crypto currency or Virtual Currency during the year.
43. 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: 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 provide
any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
44. 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.
45. The Company do not have any such transaction which is not recorded in the books of accounts and that has been
surrendered or disclosed as income during the 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).
46. The Company has paid / provided for excess remuneration to the managing director during FY: 2016-17, 2017-18 and
2018-19 without obtaining the approvals in accordance with Section 197 of the Act. The excess remuneration reversed is
shown as recoverable from the Managing Director. The matter is disclosed under report on other legal and regulatory
requirements section of independent auditor's audit report. The Company has filed suit against the Managing Director for
the recovery of the excess amount of remuneration.
47. The company holds all the title deeds of immovable property in its name.
48. There is no Scheme of Arrangements approved by the Competent Authority in terms of sections 230 to 237 of the
Companies Act, 2013.
49. The company is not declared as wilful defaulter by any bank or financial Institution or other lender.
50. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's
classification / disclosure.
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