1. Corporate Information

Rapicut Carbides Limited ("the Company") was incorporated as a Public Limited Company in April 1977, and Commercial Production Commenced in October 1979.

The Company is a public limited company domiciled end incorporated in Indie end ha vine its registered office aM19. GIDC IndustrialArea, on National Highway BOM-AHM,Ankleshwar, Gujarat, The Company’s shares ere fisted and traded on th e Bembay Stock Exchange Ltd. (BSE). The company is engageri in business of manufacturing of Tungsten Carbide products used in metat cutting, mining, wear parts and various other industries,

Gujarat DrillwOll Private Limited promoted with technical knowhow provided by RCL was merged with the company in the year 1993.

The fi n an c ia I statemer i ts of th © Co m pa n y are a pp roved by th e C om pany's B oa rd of d i rectors on M ay 6,2 024,

2. Statement of compliance

These financial statements have been prepared in accordance with Indian Accounting Standards find AS) notified under Section 133 of the Comparsies Act, 2013 (the Act) read with Companies (Indian Accounting Standands) RuIes, 2016 as amen ded a nd othe r releva nt p rovi s ions of th e Act as a m en ded from ti m e to ti in e.

3. Basis of Preparation of Financial Statements

These financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (tnd AS) as noli fie d by Min i stry of C orpo rate Aft a i rs p u r$us nt to Section 13 3 of the Compan ies Act. 2013 read wi Lh R ule 3 of the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

The fi nan cia I sta teme nts have been prepa red on the h i sto heal cost ba s is exce pt for certa i n fi na ncial in strume nts that are measured at fair values at the end of each reporting period, as explained in the material accounting policies. These accounting policies have been applied consistently io all the periods presented in the financial statements.

Histories I cost is genera 11 y based on the f arr va I ue of the oonsidcrat ion g i ven i n excha ng e fo r good s and services

Al I assets and ha bi I itie s have be en cl ass ified a s cu rrent or n o n -cu rre nt as per the Compa ny's n orm ai ope ratio g eye le a nd other criteria as set out in the Schedule 111 (Division I!) to the Com pa nies Act, 2013.

The Financial Statements are presented jn Indian Rupees (INR), which is Company’s presentation and functional cu rre ncy and a 11 anio unts a re ro u nd ed off to the nea rest la kh s (u p to t wo d ecima I s j except when othe rw ise iridi bated.

4. Operating Cycle and classification of current and non-current:

Operatin g cyolo of the Compa ny is the time between th e acquisition of assets for processing a nd the i r rea lization in cash orcash equivalents As the Company’s normal operating cycle is not dearly identifiable, the same has been assumed to have duration of twelve months, Accordingly, ail assets and liabilities are classified as current or non-currem as per the Company's operating cycle, and other criteria sei out in Ind AS-1 “Presentation of Financial Statements” and the Schedule III to the Companies Act, 2013,

(i) An as set is cu rrent whe n it is:

1. Expecte d to be re alized or intended to be sold or consumed in norma I opera ti ng cycle.

2. Hel d prima niy for th e pu rpose of trad i n g.

3. Expected to be re aEized w ith in tweive months afte r the re po rti n g pe ri od, or

4. Cash or cash equivalents unless restricted from being exchanged or used to settle a liability for at ieasl twelve months after the reporting period.

All other assets are classified as non-current.

(ii) Affability is current when it is:

1. Expected to be settled in normal operating cycle.

2. He Id prima ri!y f or t he pu rpa se of trading,

3. Due to be settled within twelve months after the reporting period, or

4. There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

Ail other liabilities are treated as non-current.

Deferred tax assets and liabilities are classified as non - current assets and liabilities. The operating cycle is the time between the acquisition of assets for processing and their realization in cash and cash equivalents.

5. Material Accounting Policy information

5.1 Basis of Measurement:

The se Fins ncia I state m ents ha ve bee n p re pared on a hi storice! cost ba s is, except for the following items:

* Ce rta i n financis I assets- mea sured at fair value (refer accou n ti n g po I icy re ga rdi n g fina ncia I i ns truments):

* N et d eft ned benefi t (assets )/l i ab i lily - m ea so red a t fa i r vaiu e of p!a n a ssets I ess presen t value of defi ned benefit obligation.

5.2 Use of Estimates:

The p re parati on of F i na n ciat State m ents in acco rda nee with I n d - AS req u i re s use of e stimate s and as so m pti on s for some items, which m i ght hove a n effect o n their re cogn it ion a nd me asureme nt in the B ala nee S h set an d Statem ont of Profit and Loss. The actual amounts realized may differ from these estimates. Accounting estimates could change from period to period, Actual results could differ from those estimates, Appropriate changes in estimates are made as the management becomes aware of changes in circumstances surrounding the estimates. Differences between the actual results and estimates are recognised in the period in which the results are known /mate ri aiized a n d, if mate ria I. th eir effe cts are d i sclosed in the notes to th e F i na n ciai Statements.

5.3 Fair Value Measurement:

The Compa ny me asures ft na n cia I instfli ments at fair valued each bal an ce s heel da te.

Fair value is the price that would bo received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. The fair value measuremcnl is based on the presumption that the transaction to soil the asset or transfer the liability takes place either:

* In the principal market for the asset or liability, or

* In the absence of a principal market, in the most advantageous market for the asset or liability.

The pri nci pa I or the most adva ntageou s markei must be accessIble by t he Com pa ny.

The fair value of an asset ora liability is measured using the assumptions that market participants would use when p rid n g th e a sset or I iab iiity, a s s u m i ng that ma rket partici pa nts act i n thei r best eco n o m ic i ntere st.

The Company uses vaiuaiion techniques that are appropriate in the circumstances and for which sufficient data is available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value hierarchy, described as follows, which gives highest pnority to quoted prices in active markets and the lowest priority to unobservable in puts.

Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For the purpose of fair value disclosures, the Company has determined classes of assets and iiahiliiies on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

5,4. Property, Plant and Equipment

The Company has elected to continue With the carrying value of its Property Riant & Equipment (PPEjrecognised a s of April 1,2016 ( I ran sition date} measured as per the Previous GAAP and used that ca rry ing va I ue as its dee med cost as on the transition date as per Para D7 AAof ind AS 101.

Property, Plant a Equipment (PPE) comprises of Tangible assets and Capital Work in progress. PPE are stated at cost, net of tax/duly credit availed, if any, after reducing accumulated depreciation and accumulated impairment lasses, if any, until the date of the Bala nee Sh eet. Th e cost of PP E comp ri ses of its p urchase price or its construction cost (net of ap pi i ca hie ta x cred i t, if a n y), a ny cost di rect|y attributabl e to bri n g the a sset to the loco I ion a nd condi Lion necesso ry for it to be ca pa bl e o f opera ti n g in the ma nner inte nded bythemanag eme rrt, Direct co sts a re ca pi tel i zed until the asset is ready for use and includes borrowing cost capitalized in accordance with the Company's accounting policy.

Capital work in progress includes the cost of PPE that are not yet ready for the intended use.

An item of PPE is de-reCognized upon disposal Or when no future economic benefits are expected 10 arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of PPE is determined as the difference belween the sales proceeds a nd the carry ing amount of the asset a nd is re cognized in the Statement of Profit and Loss.

Depreciation

Depreci ati on is prov id ed on t h e cost of P ro perty, Pla nt a nd E q u ip me nt loss their estimated res id ua I valu e. u s i n g th e stra ig ht- H n e m ethod ove r th e useful I ife of P PE as stated i n the Schedu I e 11 to th e Com pa nie s Act, 2013 or based on intemar technical evaluation. The management believes that the useful lives as assessed best represent the period ove r which m arcageme n t ex pe cts to u se these assets.

Useful lives of following class of PPE are as prescribed under Part C of Schedule II to the Companies Act. 2013. which are as under; -

The estimated useful lives, residua! values and depreciation method are reviewed on an annual basis and if necessary, changes in estimates are accounted for prospectively,

Depreciation on additions/delet'ons to PPE during the year is provided for on a pro-rata basis with reference to the date of add itionsf deletions.

Depreciation on subsequent expenditure on PPE arising on account of capital improvement or other factors is provided for prospectively over the remaining useful life.

5.5. Intangible Assets

The Company has elected to continue with the carrying value of its Intangible assets recognized as of April 1, £016 (transition date) measured as per the Previous GAAP and used that carrying value as its deemed cost as on the transition date as per Para D7AAof IndAS 101.

Intangi ble assets with fin ite u sef u I life acq uired sepa rate I y, are recogn ized only if it is p ro ba bl e th at fut u re e conom i c benefits that are attributable to the assets will flow to the enterprise and the cost of assets can be measured reliably. The intangible assets are recorded at costand are earned at cost less accumulated amortization and accumulated imps i r ment losses, if an y.

Intangible asseis are amortized over the estimated period of benefit, not exceeding five years.

intangible asset is derecognized on disposal, or when no future economic benefits are expected from use or disposal. Gains or losses arising from derecognition of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of the asset and recognized in the Statement of Profit and Loss when the asset is derecognized.

Intangible assets are amortized an Straight Line Method from the dale they are available for use, over the useful Ii ves of the assets as estimated by the Management as under:

5.6. Impairment of non-financial assets

The Company revi ews at each re po rt i n g pe ri od wheth er the re i s any i n dicatio n tha t an asset ma y be i mpa i red. If any such ind i ca tion exists, th e Compa ny esti ma tes the recove ra ble a mount of the a sset. If s u ch recove ra bfe a m ou n t of the asset or Ihe recoverable amount of the cash generating unit to which the asset belongs is less than its carrying amount the carrying amount is reduced to ite recoverable amount. The reduction is treated as an impairment loss and is recognized iff the Statement of Profit S Loss. If at the reporting period, there is an indication that there is change in the previously assessed impairment Toss, the recoverable amount is reassessed and the asset is reflected at the l o wer of its recove rabl & a mo u nt a nd the carrying amount t h at is d etern l i ned, ne t of d ep reciation .had no impairment loss b ee n recog n i zed for the asset in pri or yea rs,

Recovers ble a moun t i s (h e hig hg r of fa i r va l Lie less cost s of d i sposol arid vatu e i n u se -1 n assessing value in use, tha estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not be en adj Listed.

An a ssessm e nt i s m ad e at th e end of each re po rti n g pe riod to se e if there a re any i n drcati o n s th at inn p airm ent losse s recognized earlier may no longer exist or may have come down. The impairment loss is reversed, if there has been a change in the estimates which has the effect of increasing the asset's recoverable amount since the previous impairment Joss was recognized. If il is so, the carrying amount of the asset is increased to the lower of its recoverable amount and the carrying amount that has been determined, net of depreciation, had no impairment loss been recog ni?ed for the asset in prior years. After a reversal, the depredation charge is adjusted in Tutu re periods to allocate the asset's revised carrying amount, less any residual value, on a systematic basis over its remaining useful life Reversals of Impairment loss a re recognized In the Statement of Profit and Loss.

S.6. Inventories

Inventories are vaiued at lower of cost and net realizable value after providing for impairment and other losses, whore considered necessary. The basis of determining the value of each class of inventory is as follows:

5,8. Employee Benefit

ft) Defined Contribution Plan

Retirement benefit in the form of Provident Fund and Superannuation fund, a defined contribution scheme a n d the contri butio ns a re cha rge d to the state m ent of profit and loss for th e yea r when the contri butio n s to th e government funds are due. The Company has no obligation other than the contribution payable to provident fund authorities and superannuation fund

Hi) Defined Benefit Plan

The employees’ gratuity fund scheme is the Company's defined benefit plan. The present value of the obligation under the said defined benefit plan is determined on the basis of actuaries valuation from an independent actuary using the Projected Unit Credit Method. The gratuity benefit of the Company is administered by a trust formed for this purpose through the group gratuity UC scheme. Re measurements comprising of actuarial gain and losses, the effect of the asset ceiling and the return on plan assets (excluding amount included in net interest on the net defined benefit liability), are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through other comprehensive income in the period i n wh ich they occ u r

Re -meas ureme n ts are not re cia ssified to the statem ent of p rofit an d ioss in s u bseq uent periods.

Pa st se rvi ce cost is recog nized in th e statement of profit A loss i n the pe riod of pi an a mend m ent.

Met in teres t is ca leu la ted by applyi ng th e discounted rate to the net d efmed ben efi 1.1 iab i I i ty o r asset.

(iii) Short Term Employee Benefits

Accumulated leave, which is expected to bo utilized within the next 12 months, is treated as short-term employee benefit. The Company measures the expected cost of such absences as the additional amount that it expects to pay as a result of the unused entitlement that has accumulated at the reporting date. Short -term employee benefits are expensed as the related service ss provided. A liability is recognized for the amount expected to be paid if the Company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

(iv) Other Long Term Employee Benefits

The Company treats accumulated Feove expected to be carried forward beyond 12 months, os long-term employee benefit for measurement purposes Such long-term compensated absences are provided for based on the actuarial valeation using the projected unit credit method at the year-end. ActuanaI gains/losses a re i m m ed iateiy taken to the stateme nt of p rofit a n d loss a nd a re n of deferred.

5.9. Foreign Exchange Transactions

Transactions in currencies other than the Company’s functional currency (foreign currencies) are recognized at the spot exchange rates prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are translated using closing exchange rate prevailing on the Fast day of the reporting period.

Mon-monetary items which are carried in terms of historical cost denominated in a foreign currency are reported u s i n g th e exchang e rate at the date of fra nsaction.

Exchange differences on monetary items are recognized in the Statement of Profit and Loss in the period in which they arise.

5.10 Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instru m ent of a n othe r enti ty.

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual p rovi s ions of th e i n strume n ts.

a. Initial Recognition:

F i na n d af assets and financial (iabil ifies a re in itia 11 y measured at f a i r val Lie. Tra n sa ebon costs th at a re d i recti y attributabte to the acquisition or issue of financial assets and financial liabilities (other than financial assets and tins ncial Ha hi I itie s at Fa i r Val ue th ro u gh Profit o r Loss) a re ad de d to or dedu cted from the fa ir va I u e of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recog nized in th e State ment of P rofiit a n d Loss.

b. Classffi teat ion and Subsequent Measurement: Financial Assets

The Company classifies financial assets as subsequently measured at amortized cosh fair value through other comprehensive income ("FVTOCI"} or fair value through profit or loss ("FVTPL") on the basis of following:

• the entit^ business moidel for managing tlWftna rtcial assets; and

• the cont ract Li el cash fl ow ch a racteri sti cs of fhe financia I assets.

c. Amortized Cost:

A financial asset shall be classified and measured at amortized cost, if both of the following conditions are met:

• the financial asset is held within a business model whose obiective is to hold financial assets in order to collect contractual cash flows, and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely p ay m ents of prin c i pa! a nd i nte rest on the pn n c i pa I amo u nt oirtsta n d i n g,

d. Fair Value through Other Comprehensive Income (FVTOCI):

A financial asset shall be classified and measured at FVTOCI, if both ofthe following conditions are met:

• the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets, and

Ý the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

e. Fair Value through ProfitorLoss (FVTPL):

Afinancial asset shall be classified and measured at FVTPL unless it is measured at amortized cost or at FVTOCI.

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets.

f. Impairment of financial assets:

in accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recog nit ion of impairment toss on the following financial assets and credit risk exposure:

a) Financial Asse is a ro mea s u red a I amortized cost e ,g.. d e posi is, trade re ce iva ble sand bank balance

S imp!ifled Approach

The Company follows 'simplified approach' for recognition of impairment loss allowance on Trade Receivables.

The application of simplified approach does not require the Company to track changes in cred't risk. Rather, it recognizes impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition

General Approach

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whethe r the re ha s been a si gn if ica n t i ncre ase i n the cred i t risk s i n ce in it ia I recog n it ion. I f cred i t risk ha s not increased significantly, 12-months ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used If, in a subsequent period, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12-months ECL.

L ifetime ECL are the expected cred it los se s resu I ting from all po ssi ble default events over the expected life of a financial instrument. The 12-months ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months afterthe reporting date.

g. Trade receivables

A receivab le Is classified as a 'trad e rece iva ble' if it i s in respect to th e amo unt due from customers on account of goods sold or services rendered in the ordinary course of business. Trade receivables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method, less provision for impairment. For some trade receivables the Group may obtain security in the form of guarantee, security deposit or letter of credit which can be called upon if the counter party is in default under the te rms of t h e ag reem e nt. I impairment i s m ade on t h e ex pected credit tosses, which a re the p rese nt value of the shortfalls o ver the expected life of financial assets. The estimated impairment losses are recognized in a separate provision account and the impairment losses are recognized in the Statement of Profit and Loss within otherexpenses.

For foreign currency trade receivable_r impalrment is assessed after reinsiatement at closing rates.

Subsequent changes in assessment of impairment are recognized in provision for impairment and changes in impairment losses are recognized in the Statement of profit and Loss within otherexpenses.

individual receivables which are known to be uncollectible are written off by reducing the carrying amount of trade receivable and the amount of the loss is recognized in the Statement of Profit and Loss within other expenses.

h. Derecognition of financial assets:

The Company derecognizes a financial asset when the contractual right to receive the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of th e asset to a nother party. If the Com pa ny neither Ira n sfe rs n o r reta i ns su bsta nti ally a 11 the nsks and rewa rd s of ownership and continues to control the transferred asset, the Company recognizes its retained interest in the asset and an associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards of ownership of a transferred financial asset, the Company continues fo recognize the financial asset and a I so re cognizes a collateralized borrowing for the proceeds received.

On derecognition of a financial asset in its entirety, the difference between the asset's carrying amount and the sum of the consideration received and receivable and the cumulative gain or loss that had been recognized in other comprehensive income and accumulated in equity is recognized in profit or toss if such g a in o r I oss would have oth erwise bee n recog nized i n profit or loss on d i s posa I of that f inancia I as set.

On derecognition of a financial asset other than in its entirety (e.g__; when the Company retains an option to repurchase part of a transferred asset), the Company allocates the previous carrying amount of the financial asset between the part it continues to recognize under continuing involvement, and the part it no longer recognizes on the basis of the relative fair values of those parts on the date of the transfer. The difference between the carrying amount allocated to the part that is no longer recognized and the sum of the consideration received for the part no longer recognized and any cumulative gain or loss allocated to it that h ad been recog n ize d in ot h er co m prehensi ve i ncome is recog n i ze d i n p rofit or loss if such g ain or l oss wo u Id h ave ot h erw ise bee n re cog n i ze d in profit o r I oss on d i sp osa! of that frna nd ai a sset. A cumu lative ga i n o r loss that had been recognized m other comprehensive income is allocated between the part that continues to be recog nized a nd the part tha t i s no I onge r recog n i z ed on th e basi s of the re I ati ve fair val ue s of those pa rts.

5.11. Classification and Subsequent Measurement:

Financial liabilities:

Financial liabilitiesare classified aseither financial liabilities at FVTPL or'other financial liabilities', a Financial Liabilities at FVTPL:

Financial liabilities are classified as at FVTPL when the financial trability is held for trading or are designated upon initial recognition as FVTPL

G a i n s or Losses o n lia bi I i ti es he I d f o r tra ding a re re cogn ized in th e State m ent of Profit a n d Lo ss.

b. Other Financial Liabilities at amortized cost:

Other financial liabilities (including borrowings and trade and oiher payables) are subsequently measured at amortized cost using the effective interest method.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period, The effective interest rate is the r&te that exactly discounts estimated future cash payments (including ail fees and points paid or received that form an integral pari of the effective interest rale, Iransaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition,

c. Financial liabilities and equity instruments:

• Classification as debt or equity.

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

* ^Fquittfjo St.rum e n]s:

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deduclingall of its liabilities.

Equity instruments issued by a Company are recognized at the proceeds received.

d. Derecognition of Financial Liabilities:

A financial liability is derecognized when the obligation under the liability is discharged or canceled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and the recognition of a new liability. The d ifference i n the res peeti ve carryi ng amo unts is re cog n izcd i n the Stateme n t of Profit a nd Loss.

e. Offsetting:

F i na n c ial as sets and financial liabil itie s are offset, a nd the n et a mo u nt is re ported i n th e 8 ala nee S h eet whe re there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously.

5.12. Leases

As a lessee

The Company's lease assets primanly consist of leases for land. The Company assesses whether a contract contains a lease, at inception of a contract. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period in exchange for consideration. To assess whether a contract conve ys the rig ht to co n tro 11 h e u s e of an id e ntifle d a sset, the Compa ny a ssess es wheth er:

-the contract involves the use of an identified asset.

- the Company has substantially all the economio benefits from use of the asset through the period of the lease and Ý t h e Co m pa n y hasjflfa right to direct th e u so ofjlje ass fit

At the date of commencement of the tease, the Company recognizes a lease liability for all lease arrangements in which it is a lessee, except for leases with a term of twelve months or less (short-term leases} and low value leases and corresponding Right-of-use Asset. For these short-term and low value leases, the Company recognizes the lease payments as an operating expense on a straighl-line basis over the term of the lease,

The Right-of-use Assets are initially recognized at cost, which comprises the initial amount of the lease liability adjusted for any tease payments made at or prior to the commencement dote of the lease plus any initial direct costs less any lease incentives. They are subsequently measured at cost less accumulated depreciation and impai rment losses a nd adj u sted fo r a ny re m ea s u re m ent of the I ease I i ab i I ity

Right-of-use Assets are depreciated on a straight-line basis over the shorter of the tease term and useful life of the underlying asset.

The lease liability is initially measured at amortized cost at the present value of the future lease payments. The lease payments are discounted using the interest rate implicit in the lease or, if not readily determinable, using the incremental borrowing rales In the country of domicile of these leases. Lease liabilities are remeasured with a correspond i ng adjusim ent to th e re lated rig ht of u se a sset if the C ompany c h an ges its assessme nt if whethe r it wi 11 exercise an extension ora termination option.

Asa lessor

The Leases for which the Company is a lessor is classified as a finance or operating lease. Whenever the terms of the lease transfer substantially alt the risks and rewards of ownership to the lessee, the contract is classified as a finance lease. Another leases are classified as operating leases.

Lease income from operating lease is recognized in the statement of profit and loss on straight Sine basis over ihe Lease term.

5.13. Borrowing Costs

B o rrow in g costs are inte re st a nd ancilla ry costs incu rred i n con ne cti on with th e arran ge m ent of borrowi n gs.

General and specific borrowing costs attributable to acquisition and construction of qualifying assets is added to the cost of the assets upto the date the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes a substantial period to get ready for its intended use Capitalization of borrowing costs is suspended and charged to the Statement of Profit and Loss during extended periods when active development activity on the qualifying assets is interrupted. All other borrowing costs are recognized sn the Statement of Profit and Loss in the period in which they are incurred.

5.14. Statement of Cash Flows

Statement of Cash flows a re reported using the indirect method, whereby profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows are segregated into operating, investing and financing activities.

5.15. Income Taxes

J ncome tax expense re presents Ihe su m o f th e cu rre nl tax a n d d efe rred ta x.

a. Current Tax

The tax currently payable is based on taxable profit for the year. Taxable profri differs from 'profit before tax'as reported in the Statement of Profit and Lose because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Company's current tax is calculated using tax rates and laws that have been enacted or substantively enacted by the end of the reporting period.

b. Deferred Tax

De Ferred tax is racogn ized on tamp orary dif fe re n cos b etwee n the ca rrying amo u nts of assets a nd li a b i I i L ie s in the Financial Statements arid the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized.

The carryi ng amount of d efe rre d ta x assets i s rev iewed at th e end of ea ch reporting p eriod an d reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the defe rred ta x asset to b e utilized

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in wh i Ch the liabil iiy is settled o r the asset re a li zed, ba se d o n ta x ra tes (and tax laws) that ha ve been e na cted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets rejects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

c. Current and Deferred Tax Expense for the Year

Current and deferred tax expense is recognized in the Statement of Profit and Loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

5.16. Revenue Recognition

The Company derives Revenue primarily from sale of manufactured and traded products being "Tungsten Carbides Products .

Revenues from sale of goods or services are recognized upon transfer of control of the goods or services to the customer m an amount that reflects the consideration which the Company expects to receive in exchange for those goods or services.

Revenue is measured at the transaction price of the consideration received or receivable duly adjusted for variable consideration & customer’s right to return the goods and the same represents amounts receivable for goods and services provided in the normal course of business. Revenue also excludes taxes collected from customers. Any retrospective revision in prices is accounted for in the year of such revision.

Revenue is recognized at 3 point in lime on accrual basis as per the terms of the contract, when there is no uncertainty as to measurement or collectability of consideration. When there is uncertainty as to measurement or ultimate collectability, revenue recognition is postponed until such uncertainty is resolved.

The contract as set o r a co n tract liability is recogn ize d wh en e ither pa rty to a contra ct ha s pe rform ed_; de pe n ding on the relationship between the entity's performance and the customer's payment. When the Company has a present unconditional right to consideration, it is recognized separately as a receivable.

Sale of products exc I u de s amo unts of in direct taxe s on sa I es.

interest Income

I nterest o n inve stme nts i s booked o n a ti me proportio n basi s taki ng into accou n t the a mou nts invested and th e rate of interest.

Dividend Income

D iv id end incom e i s recog nrzed wh en th e ri g h t to receive the same i s estab I ishe d.

Other Income

Other income is recognized on accrual basrs except when realization of such income is uncertain.

5.17. Earnings PerShare

tiasic earnings per share is computed by dividing the profit / (los$jaftertax with the weighted average number of eq u ity s h a res o utsta ndingduringfhe year. Diluted e arn ing s pe r sha re i s com puted by divi ding the profit7 (loss) after tax as adjusted for dividend, interest and other charges to expense or income (net of any attributable taxes) relating to the dilutive po te ntS u i eq u i ly S h a res, wi th the a gg reg ate of we ig hted a vere ge n u mbe r 0 f equ i ty Sti ares con S id ered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on the conversion of all dilutive potential equity shares.

5.18 Segment Reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal organization and management structure. The operating segments are the segments for which separate finanda- information is available and for which operating profit I loss amounts are evaluated regularly by the Chief O perati ng Decisio n Ma king Body (CO DM) i n d ecsd i n g h ow to a 11 ocate re source s and i n asse ssing perfo rma n ce.

Th e Co m pany operates i n one re po rtab le fa u s i ness s eg m ents i. e., "Tungsten Ca rb id es Prod u cts".

5.19.Provision, Contingent Liabilities and Contingent Assets

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event it is probable that an outflow of resources embodying economic benefits will be required to settle the obli gation, and is rella bl e estimate can be mad e of the amo u nt of th e obiigati on.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking inti account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, it carrying a mou nt is t h e p resent va lue oft h ose cash f I ows (wh en the effect of th e ti me va I ue of money is ma ferial). If the ti me value of money is material. Provisions are discounted using pre-tax discount rate and when discounting is used, increase i r> the p rovis i on wIth the pa ssag e of ti me is recog n i zed as a fin ance cost i n the s ta teme n t of Profit and Loss account.

A contingent liability is (a) a possible obligation that arises from past events and whose existence will be confirmed o n l y by the occurre nee or non -occurre nee of on e or m ore U ncerta in future eve nts not whol I y with i n the con trol of I he entity or (to) a present obligation that arises from past events but is not recognized because (i) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation or (ii) the amount of the obligation cannot be measured with sufficient re liability.

Contingent liabilities are disclosed in the Financial Statements by way of notes to accounts, unless possibility of an outflow of resources embodying economic benefit is remote.

A contmgo n t a ssot i s a possible a sset that a ri ses from th e past ove nts a nd whose exi stc n ce will be confi rme d o n I y by the occu rrence o r non- occu rrence of one or more of u needs i n futu re eve nfg not w h oily within th a control of the entity.

Contingent assets are disclosed in the Financial Statements by way of notes to accounts when an inflow of economic benefits is probable.

5.20 Critical accounting judgments, assumptions and Kay sources of estimation uncertainty:

The preparation of the Company's financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities at the date of the financial statements. Estimates and assumptions are continuously evaluated and are based on management's experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances, Uncertainly a bout these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or I i ah i I it ie s affected fn fut u re period s.

Key source of judgments, assumptions and estimates in the preparation ot the Financial Statements which may cause a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in respect of useful lives of Property, Plant and Equipment, impairment, employee benefit obligations, provisions, p revision for i n come tax_f measu rente nt of d efe rred tax assets a nd conti ng ent a s sets & lia biliti

Information about estimates and assumptions that have the significant effect on recognition and measurement of assets, llab ilili es, i ncomo andexpensos.is provid ed b alow. Aetna I results may differ from these esti m ates.

(i) Determination of the estimated useful Fife of tangible assets and the assessment as to which components of the cost may be capitalized.

Useful life of tangible assets is based on the life prescribed in Schedule I) of the Companies Act. 2013. In cases, where the useful life is different from that prescribed in Schedule II, it is based on technical advice, taking into account the nature of the asset, estimated usage and operating conditions; of (Fie asset, past history of replacement and maintenance support. An assumption also needs to be made, when the Company assesses, whether an asset ma y be ca pitalized and which co m po ne nts of th e cost of th e a sset m ay be cap ita I ize d.

(iij Recognition and measurement of defined benefit obligations:

The cost ot the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuations being carried out at reporting date. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate. Salary escalation rate, expected rate of return on asset and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate, the management con aiders the inters st rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates for the respective countries.

(Ilf) Recognition of income taxes:

Si g n i rica n t jud g mente a re invbIved i n de te rrnin i ng the p rovi sion for inco m e ta xes, i nd ud i ng a mou n t e xpected to be paid/recovered for uncertain lax positions as also to determine the amount of deferred tax that can be recognized, ba s ed upon t h e likely ti mi ng a n d the levs I of f utu re ta xa ble profits.

(iv) Recognition of Deferred tax assets:

Deferred Tax Assets (DTA) are recognized for all the deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilized. Ma nag erne nt j ud gme nt i s req uired to d eterm i ne th e a mou n t of defe rred tax assets t h at can be recog n i zed .based UpOht ho likoly timingand the level Of Fu tu re tax ab le p refits.

(vj R eco g n iti on a n d meas u rente nt of provisions:

Provisions and liabilities are recognized in the period whan it becomes probebte 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 judgment to existing facts and circumstances, which can be subject to change. The carrying amounts of provisions and liabilities are reviewed regu I arly a nd rev ised to ta ke accou n t of cha ng i n g fa cts a n d circu m sta n ces.

(vfj Determining whether anarrangementcontainsa lease:

At the inception of an arrangement, the Company determines whether the arrangement is or contains a lease. At the inception or on reassessment of an arrangement that contains a lease, the Company separates payments and other consi do re (ion req uired by the arrange men t into th ose for the lease and tbu se for i he other el aments ba sod on their relative fair values. If the Company concludes far a finance Tease that, it is impracticable to separate the

pa y m ents reisa bly, th p n a ri asset an d a! la bility a re recogn ized at a n a m ou n t equa I to the f a i r va I ue of th e und e rl yi n g asset' subsequently, the liability is reduced as payments are made and an imputed finance cost on the liability is recognized using the Company's incremental borrowing rate. In case of operating lease, the Company treats all payments under the arrangement as lease payments.

{vfi) C ont ingont Liabi I itie s a nd A sset s:

Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal, contractual, land access and other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail lo occur. The assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgment and the use of estimates rega rd i n g t h e outcome of future c vents.

<vi i i) Al fowa nc e f or i m pa frme nt of trade re ce iva b I e: The expected credit loss is ma i n I y ba sed on the ag ei n g of th e

receivable balances and historical experience. The receivables are assessed on an individual basis assessed for impairment colleclively, depending on their significance. Moreover, bade receivables are written off on a casedo-case basts if deemed noi lo be co lie ctib le o n the assess ment of t h e u nd erlying fads and ci rcumstance s,

fix) Impairment of non-fingngial assets:

Evaluation for impairm ent req uires use of jud gment, esti m ates a nd assu mption s,

The evaluation of applicability of indicators of impairment of assets requires assessment of external factors (significant decline in asset's value, economic or legal environment, market interest rates etc.) and internal factors (obsolescence or physical damage ot an asset, poor economic performance of the idle assets etc.) which could result in significant change to recoverable amount of the Property, Plant and Equipment and such assessment is based on estimates, future plans as envisaged by Company.

5.21 Recen t prono u n ce ments

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under C ornp an ies (I nd i an Account irig Sta n da rd s) R u I es a s i ssued from time to time. For th e year ended 31st March 2024 MCAhas not notified any new standards or amendments toihe existing standards applicable to the Company.