o) Provisions, Contingent Liabilities and Contingent Assets
Provisions involving substantial degree of estimation in measurement are recognized when there is
a legal or constructive obligation as a result of past events and it is probable that there will be an
outflow of resources and a reliable estimate can be made of the amount of obligation. Provisions are
not recognized for future operating losses. 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 into account the risks and uncertainties surrounding the obligation.
Contingent liabilities is not recognized and are disclosed by way of notes to the financial statements
when there is a possible obligation arising from past events, the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within
the control of the Company or when there is a present obligation is not recognised where it is either
not probable that an outflow of resources will be required to settle the same or a reliable estimate of
the amount payable in this respect cannot be made.
Contingent Assets are not recognised but disclosed in the financial statements by way of notes to
accounts when an inflow of economic benefits is probable.
p) Employee Benefits
i. Short term Employee Benefits:
All employee benefits payable within twelve months of rendering the service are classified as short¬
term employee benefits. Such Employee Benefits are recognized as expenses as and when it
accrues.
Post-Employment Benefits:
Defined Contribution plans
Company's contribution to Provident Fund and ESI are charged to the statement of Profit & Loss
during the period in which the employee renders the related service. The Company has no
obligations other than the contributions payable to the respective funds.
Defined Benefit plans
Gratuity: Gratuity liability is provided for based on actuarial valuation made at the end of each
financial year using the projected unit credit method in accordance with the Indian Accounting
Standard. Actuarial gain and losses are recognized immediately in the statement of Profit & Loss as
income or expenses.
Re-measurements gains and losses arising from experience adjustments and changes in actuarial
assumption are recognized in the period in which they occur, directly in other comprehensive
income, which is included in retained earnings in the statement of changes in equity and in the
balance sheet.
q) Revenue Recognition
The Company manufactures and sells Iron and Steel Products.
i. Sale of goods
The Company recognises revenue when control over the promised goods or services is
transferred to the customer at an amount that reflects the consideration to which the Company
expects to be entitled in exchange for those goods or services. The Company has generally
concluded that it is the principal in its revenue arrangements as it typically controls the goods
or services before transferring them to the customer.
Revenue is adjusted for variable consideration such as discounts, rebates, refunds, credits,
price concessions, incentives, or other similar items in a contract when they are highly
probable to be provided. The amount of revenue excludes any amount collected on behalf of
third parties. The Company recognises revenue generally at the point in time when the
products are delivered to customer or when it is delivered to a carrier for export sale, which is
when the control over product is transferred to the customer. In contracts where freight is
arranged by the Company and recovered from the customers, the same is treated as a
separate performance obligation and revenue is recognised when such freight services are
rendered In revenue arrangements with multiple performance obligations, the Company
accounts for individual products and services separately if they are distinct - i.e. if a product or
service is separately identifiable from other items in the arrangement and if a customer can
benefit from it. The consideration is allocated between separate products and services in the
arrangement based on their stand-alone selling prices. Revenue from sale of by products are
included in revenue. Revenue from sale of power is recognised when delivered and measured
based on the bilateral contractual arrangements.
r) Contract balances
i. Contract assets
A contract asset is the right to consideration in exchange for goods or services transferred to
the customer. If the Company performs by transferring goods or services to a customer before
the customer pays consideration or before payment is due, a contract asset is recognised for
the earned consideration.
ii) Trade receivables
A receivable is recognised when the goods are delivered and to the extent that it has an
unconditional contractual right to receive cash or other financial assets (i.e., only the passage
of time is required before payment of the consideration is due). Trade receivables is
derecognised when the Company transfers substantially all the risks and rewards of
ownership of the asset to another party including discounting of bills on a non-recourse basis.
iii) Contract liabilities
A contract liability is the obligation to transfer goods or services to a customer for which the
Company has received consideration (or an amount of consideration is due) from the
customer. If a customer pays consideration before the Company transfers goods or services to
the customer, a contract liability is recognised when the payment is made or the payment is due
(whichever is earlier). Contract liabilities are recognised as revenue when the Company
performs under the contract including Advance received from Customer.
vi. Refund liabilities
A refund liability is the obligation to refund some or all of the consideration received (or
receivable) from the customer and is measured at the amount the Company ultimately expects
it will have to return to the customer including volume rebates and discounts. The Company
updates its estimates of refund liabilities at the end of each reporting period.
s) Other Income
i. Claims receivable
The quantum of accruals in respect of claims receivable such as from insurance, customs, excise
and the like are accounted for on accrual basis to the extent there is reasonable certainty of
realization.
ii. Dividend Income from Investment
Dividend income from investments is recognised when the right to receive payment has been
established.
iii. Interest Income
Interest income is recognized on a time proportion basis taking into account the amount
outstanding and the applicable interest rate. Interest income is netted off from interest cost under
the head “Interest Cost (Net)” in the statement of profit and loss.
t) Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying
assets, which are assets that necessarily take a substantial period of time to get ready for their
intended use or sale, are added to the cost of those assets, until such time as the assets are
substantially ready for the intended use or sale.
Investment income earned on temporary investment of specific borrowings pending their
expenditure on qualifying assets is recognized in the statement of profit and loss.
Discounts or premiums and expenses on the issue of debt securities are amortized over the term of
the related securities and included within borrowing costs. Premiums payable on early redemptions
of debt securities, in lieu of future finance costs, are recognized as borrowing costs.
All other borrowing costs are recognized as expenses in the period in which it is incurred.
u) Income Tax:
Income tax expense comprises current tax and the net change in deferred tax assets and liabilities
during the year. Current and deferred tax are recognised in the Statement of Profit and Loss, except
when they relate to items that are recognised in Other Comprehensive Income (OCI) or directly in
equity, in which case the related tax is also recognised in OCI or directly in equity respectively.
Current Tax
Current tax is the amount of income tax payable on the taxable profit for the year, determined in
accordance with the provisions of the Income-tax Act, 1961. The Company has opted for the
concessional tax regime under section 115BAA of the Act, and accordingly, current tax is computed
using the tax rate prescribed under this regime. The current tax charge is measured based on tax
laws enacted or substantively enacted at the reporting date.
Deferred Tax
Deferred tax is recognised using the balance sheet approach, on temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the financial statements.
Deferred tax liabilities are generally recognised for all taxable temporary differences, and deferred
tax assets are recognised to the extent that it is probable that sufficient future taxable profits will be
available against which deductible temporary differences, unused tax credits, and unused tax
losses can be utilised.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively
enacted by the reporting date and are expected to apply when the related deferred tax asset is
realised or liability is settled, considering the Company's continued option to be taxed under section
115BAA. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced
to the extent that it is no longer probable that sufficient taxable profits will be available.
Unrecognised deferred tax assets are reassessed at each reporting date and recognised when their
recovery becomes reasonably certain.
Offsetting
Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current
tax assets against current tax liabilities, and when they relate to income taxes levied by the same
taxation authority on the same taxable entity. Current tax assets and liabilities are also offset when
the Company intends to settle them on a net basis or to realise the asset and settle the liability
simultaneously.
v) Earnings per share
Basic earnings per share is computed by dividing profit or loss for the year attributable to equity
holders by the weighted average number of shares outstanding during the year. Partly paid-up
shares are included as fully paid equivalents according to the fraction paid up.
Diluted earnings per share are computed using the weighted average number of shares and dilutive
potential shares except where the result would be anti-dilutive.
w) Segment Reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the
chief operating decision maker.
The Board of directors of the Company has been identified as the Chief Operating Decision Maker
which reviews and assesses the financial performance and makes the strategic decisions.
x) Corporate Social Responsibility ('CSR') expenditure
The Company charges its CSR expenditure during the year to the statement of profit and loss.
y) Statement of Cash Flow
Cash Flows are reported using indirect method, whereby profit for the period is adjusted for the
effects of transactions of a non-cash nature, any deferrals and accruals of past or future operating
cash receipts and payments and item of income and expenses associated with investing or
financing cash flows. The cash flows from operating, investing, and financing activities of the
company are segregated.
z) Significant Events after the Reporting Period
The Company has evaluated events occurring after the reporting date up to the date of approval of
these financial statements by the Board of Directors, May 28, 2025. There were no events that
require adjustment to, or disclosure in, these financial statements in accordance with Ind AS 10
Events after the Reporting Period.
4. Recent Accounting Pronouncements
New Accounting standards, amendments and interpretations adopted by the Company (wherever
applicable) effective from April 1,2023:
Recent accounting pronouncements
Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing
standards under Companies (Indian Accounting Standards) Rules as issued from time to time.
During the year ended March 31,2025, MCA has notified Ind AS 117 - Insurance Contracts and
amendments to Ind As 116 - Leases, relating to sale and lease back transactions, applicable from
April 1, 2024. The Company has assessed that there is no significant impact on its financial
statements.
On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects of Changes in Foreign
Exchange Rates. These amendments aim to provide clearer guidance on assessing currency
exchangeability and estimating exchange rates when currencies are not readily exchangeable. The
amendments are effective for annual periods beginning on or after April 1,2025. The Company is
currently assessing the probable impact of these amendments on its financial statements.
5. Critical Accounting Estimates, Judgments and Assumptions
The preparation of the financial statements in conformity with measurement principle of Ind AS
requires management to make estimates, judgments and assumptions. These estimates,
judgments and assumptions affect the application of accounting policies and the reported amounts
of assets and liabilities, the disclosures of contingent assets and liabilities at the date of the financial
statements and reported amounts of revenues and expenses during the period. Accounting
estimates could change from period to period. Actual results could differ from those estimates.
Appropriate changes in estimates are made as management becomes aware of changes in
circumstances surrounding the estimates. Differences between the actual results and estimates are
recognized in the year in which the results are known / materialized and, if material, their effects are
disclosed in the notes to the financial statements.
Application of accounting policies that require significant areas of estimation, uncertainty and critical
judgments and the use of assumptions in the financial statements have been disclosed below. The
key assumptions concerning the future and other key sources of estimation/assumptions at the
balance sheet date, that have a significant risk of causing a material adjustment to the carrying
amount of assets and liabilities and related revenue impact within the next financial year are
discussed below:
a) Depreciation/amortization and impairment loss against property, plant and equipment /
intangible assets.
Property, plant and equipment, ROU Assets and Intangible Assets are depreciated/ amortized on
straight-line basis over the estimated useful lives (or lease term if shorter) taking into account the
estimated residual value, wherever applicable. The company reviews its carrying value of its
Tangible and Intangible Assets whenever there is objective evidence that the assets are impaired.
The required level of impairment losses to be made is estimated by reference to the estimated value
in use or recoverable amount. In such situation Assets' recoverable amount is estimated which is
higher of asset's or cash generating units (CGU) fair value less cost of disposal and its value in use.
In assessing value in use the estimated future cash flows are discounted using pre-tax discount rate
which reflect the current assessment of time value of money. In determining fair value less cost of
disposal, recent market realisations are considered or otherwise in absence of such transactions
appropriate valuations are adopted. The Company reviews the estimated useful lives and residual
life of the assets regularly in order to determine the amount of depreciation / amortization and also
amount of impairment expense to be recorded and/or to be reversed during any reporting period.
Subsequent reassessment or review may result in change of estimates in future periods.
b) Arrangement contain leases and classification of leases
Ind AS 116 requires lessees to determine the lease term as the non- cancellable period of a lease
adjusted with any option to extend or terminate the lease, if the use of such option is reasonably
certain. The Company makes an assessment on the expected lease term on a lease-by-lease basis
and thereby assesses whether it is reasonably certain that any option to extend or terminate the
contract will be exercised. In evaluating the lease term, the Company considers factors such as any
significant leasehold improvements undertaken over the lease term, costs relating to the
termination of the lease and the importance of the underlying asset to the company's operations
taking into account among other things, the location of the underlying asset and the availability of
suitable alternatives. The lease terms and impact thereof are reassessed in each year to ensure that
the lease term reflects the current economic circumstances.
c) Impairment loss on trade receivables
The Company evaluates whether there is any objective evidence that trade receivables are
impaired and determines the amount of impairment loss as a result of the inability of the debtors to
make required payments. The Company bases the estimates on the ageing of the trade receivables
balance, credit-worthiness of the trade receivables and historical write-off experience.
d) Defined Benefit Obligations (DBO)
Critical estimate of the DBO involves a number of critical underlying assumptions such as standard
rates of inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by
Independent Actuary appointed for this purpose. Variation in these assumptions may significantly
impact the DBO amount and the annual defined benefit expenses.
e) 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 uses in-house and external legal professional to make judgment 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 taking into account changing facts and circumstances.
b) Terms / rights attached to equity shares:
The company has only one class of equity shares having a par value of Rs.10/- per share.
Each holder of equity share is entitled to one vote per share.
In the event of liquidation of the company, the holders of equity shares will be entitled to
receive the assets of the company, in proportion to the number of equity shares held by the
shareholders.
1. Refer Statement of Changes in Equity for movement in balance of reserves
2. Nature of reserves
a) Securities Premium Reserve
Securities Premium Reserve represents the amount received in excess of par value of
securities and is available for utilisation as specified under Section 52 of Companies Act,
2013 .
b) General Reserve
The general reserve represents appropriation of profits at the discretion of the Company. It is
transferous from one component of equity to another. It is not an item of Other
Comprehensive Income. It will not be reclassified to Profit and Loss.
c) Retained Earnings
Retained Earnings generally represent the undistributed profits /amount of accumulated
earnings of the Company. Other Comprehensive Income of '21.98 Lakhs as at March 31,
2025 (' 25.44 Lakhs as on March 31,2024) relating to re-measurement of defined benefit
plans which cannot be reclassified to Statement of Profit and Loss.
d) Capital Redemption Reserve
Reserve is primarily created as per statutory requirement.
e) Revaluation Reserve
Revaluation Reserve was created under the erstwhile Indian GAAP to recognise the gain due
to increase in value of certain assets as on March 31,2008 and utilised in accordance with
provisions of the Companies Act 2013.
f) Capital Reserve
Capital reserve was created erstwhile under Indian GAAP on forfeiture of shares by the
company.
c) Deferred Taxes :
Based on the petition filed by the company on 21-04-2008, the Hon’ble High Court of Madras has allowed
the company on 19-08-2008 to utilize the Securities Premium account towards the Deferred Tax Liability
computed as per Ind AS 22. Accordingly an amount Nil (Previous Year Nil) adjusted against Securities
Premium account as per Directives of Hon’ble High Court Madras.
33. EMPLOYEE BENEFITS:
I. Defined contribution plans
The Company participates in a number of defined contribution plans on behalf of relevant personnel. Any
expense recognized in relation to these schemes represents the value of contributions payable during the
period by the Company at rates specified by the rules of those plans. The only amounts included in the
balance sheet are those relating to the prior months contributions that were not due to be paid until after
the end of the reporting period. The major defined contribution plans operated by the Company are as
below:
(a) Provident and pension
The Company provides provident fund benefits for eligible employees as per applicable regulations
wherein both employees and the Company make monthly contributions at a specified percentage of the
eligible employee’s salary. Contributions under such schemes are made either to a provident fund set up
as an irrevocable trust by the Company to manage the investments and distribute the amounts entitled to
employees or to state managed funds.
Benefits provided under plans wherein contributions are made to state managed funds and the Company
does not have a future obligation to make good shortfall if any, is treated as a defined contribution plan
(b) Gratuity
Contributions under the scheme for defined benefit plan under the Payment of Gratuity Act, 1972, is
determined on the basis of actuarial valuation recognized as year’s expenditure. Actuarial gain and losses
arising from experience adjustments and changes in actuarial assumptions are recognized in other
comprehensive income. Other costs recognized in the Statement of Profit or Loss.
II. Defined benefit obligation(DBO):
Critical estimate of the DBO involves a number of critical underlying assumptions such as standard rates of
inflation, mortality, discount rate, anticipation of future salary increases etc. as estimated by Independent
Actuary appointed for this purpose/ Management. Variation in these assumptions may significantly impact
the DBO amount and the annual defined benefit expenses.
III. Defined Contribution Plan :
Contribution to Defined Contribution Plans (Provident Fund) recognized as expense for the year 2024-25.
Dues to Micro and Small Enterprises have been determined to the extent such parties have been
identified on the basis of information collected by the Management. This has been relied upon by
the auditors.
37. DISCLOSURES ON FINANCIAL INSTRUMENTS
This section gives an overview of the significance of financial instruments for the Company and
provides additional information on balance sheet items that contain financial instruments.
The details of material accounting policies, including the criteria for recognition, basis of
measurement and the basis on which income and expenses are recognized in respect of each
class of financial asset, financial liability and equity instrument are disclosed in note 3(ix), to the
financial statements.
(a) Financial assets and liabilities
The following tables present the carrying value and fair value of each category of financial assets
and liabilities as at March 31,2025 and March 31,2024.
(b) Fair Valuation Techniques
The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid
to transfer a liability in an orderly transaction between market participants at the measurement date.
The following methods and assumptions were used to estimate the fair values:
i The fair value of cash and cash equivalents, trade receivables, trade payables, current financial liabilities and
borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The
Board considers that the carrying amounts of financial assets and financial liabilities recognized in the financial
statement approximate their fair value.
ii. Long-term debt has been contracted at floating rates of interest, which are reset at short intervals. Fair value of
variable interest rate borrowings approximates their carrying value of such long-term debt approximates fair value
subject to adjustments made for transaction cost.
iii. The fair value of derivative financial instruments is determined based on observable market inputs including
currency spot and forward rates, yield curves, currency volatility etc. These derivatives are estimated by using the
pricing models, where the inputs to those models are based on readily observable market parameters basis
contractual terms, period to maturity, and maturity parameters such as foreign exchange rates and volatility. These
models do not contain a high level of subjectivity as the valuation techniques used do not require significant
judgement, and inputs thereto are readily observable from actively quoted market prices. Management has
evaluated the credit and a non-performance risk associated with the counterparties and believes them to be
insignificant and not requiring any credit adjustments.
(C) Fair value hierarchy
The Company categorizes assets and liabilities measured at fair value into one of three levels depending on the ability to
observe inputs employed in their measurement which are described as follows:
During the year ended March 31,2025 and March 31,2024, there were no transfers between Level 1 and
Level 2 fair value measurements. There is no transaction / balance under level 3.
The fair value of liquid mutual funds is based on quoted price.
Derivative financial instruments are valued based on quoted prices for similar assets and liabilities in
active markets or inputs that are directly or indirectly observable in the marketplace. The inputs used
under level II market valuation technique for forward contracts are Forward foreign currency exchange
rates and Interest rates to discount future cash flow.
38. DERIVATIVES ASSETS AND LIABILITIES:
The Company follows established risk management policies, including the use of derivatives to hedge
its exposure to foreign currency fluctuations on foreign currency assets / liabilities. The counter party in
these derivative instruments is a bank and the Company considers the risks of non-performance by the
counterparty as non-material. The following table presents the aggregate contracted principal amounts
of the Company’s derivative contracts outstanding:
(a) Category wise outstanding derivatives contracts entered for hedging as on 31st March 2025: Nil
(b) Unhedged Foreign Currency exposures as on March 31,2025 are as follows: -
(c) Financial risk management
Financial Risk Factors
The company’s activities expose it to a variety of financial risks - Market risk, Credit risk and
liquidity risk. The Company’s focus is to foresee the unpredictability of financial markets and seek
to minimise potential adverse effects on its financial performance. The primary market risk to the
company is foreign exchange risk. The company uses derivative financial instruments to mitigate
foreign exchange related risk exposures. The company’s exposure to credit risk is influenced
mainly by the individual characteristic of each customer and the concentration of risk from the top
few customers. The Company is exposed to market risk, credit risk and liquidity risk. The
Company’s senior management oversees the management of these risks. The risks 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. The Board of Directors
reviews and approves policies for managing each of these risks, which are summarized below:
i. Market Risk
Market risk is the risk or uncertainty arising from possible market price movements resulting in
fluctuation of the fair value of future cash flows of a financial instrument. The major components of
Market risks are price risk, interest rate risk and foreign currency exchange risk.
Financial instruments affected by market risk includes borrowings, investments and derivative
financial instruments
ii. Foreign Currency Risk
Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate
because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in
foreign exchange rates relates primarily to the Company’s foreign currency denominated
borrowing.
The Company evaluates exchange rate exposure arising from these transactions and enters into
foreign currency derivative instruments to mitigate such exposure. The Company follows
established risk management policies, including the use of derivatives like foreign exchange
forward / option contracts to hedge forecasted cash flows denominated in foreign currency.
As per the hedging policy of the Company, all foreign currency exposures that are due in the next 12
months are either hedged or based on the technical assessment of foreign currency movement
against the INR and the premium charged for the hedging, the same might be left un-hedged so as
to avail maximum financial benefit to the company. The carrying amount of the Non-Derivative
financial instruments in foreign currency as of the end of the reporting period is Nil (Previous year
Nil)
The company is principally exposed to foreign currency risk against USD. Sensitivity of profit or loss
arises mainly from USD denominated receivables and payables are as follows:
iii. Commodity price risk
The company uses scrap metals which exposes it to be price risk on account of procurement of
commodities. The management monitors commodities / raw materials whose prices are volatile
and suitable steps are taken accordingly to minimise the risk on the same. The company enter into
contract for procurement of material, most of the transactions are short term fixed price contract
and a few transactions are long term fixed price contracts.
iv. Interest rate risk
Interest rate risk primarily arises from floating rate borrowing with banks and financial institutions.
As of March 31,2025, substantially all of the Company borrowings were subject to floating interest
rates, which are reset at short intervals.
v. 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). To manage this, the management has a credit
policy in place and the exposure to credit risk is monitored on an on-going basis. The Company
periodically assesses the financial reliability of customers, taking into account the financial
condition, current economic trends and ageing of accounts receivable. Individual risk limits are set
accordingly.
The Company establishes an allowance for impairment that represents its estimate of incurred
losses in respect of trade and other receivables. Receivables from customers are
reviewed/evaluated periodically by the management and appropriate provisions are made to the
extent recovery there against has been considered to be remote.
The carrying amount of respective financial assets recognized in the financial statements, (net of
impairment losses) represents the Company’s maximum exposure to credit risk.
The Company is exposed to credit risk from its operating activities (primarily trade receivables).
The Company generally deals with parties which have good credit rating / worthiness given by
external rating agencies or based on Company’s internal assessment as listed below:
Refer note no.38(c) for credit risk and other information in respect of trade receivables
Cash and cash equivalents, investment and deposits with banks are neither past due nor impaired.
Cash and cash equivalents with banks are held with reputed and credit worthy banking
institutions.
vi. Counter-party risk
Counterparty risk encompasses settlement risk on derivative and money market contracts and
credit risk on demand and time deposits. Settlement and credit risk is reduced by the policy of
entering transactions with counterparties that are usually banks or financial institutions with
acceptable credit ratings. Exposure to these risks are closely monitored and maintained within
predetermined parameters. There are limits on credit exposure to any financial institution. The
limits are regularly assessed and determined based upon credit analysis including financial
statements and capital adequacy ratio reviews. In addition, net settlement agreements are
contracted with significant counterparties.
vii. Liquidity risk
Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations
on time or at a reasonable price. The Company is responsible for liquidity, funding as well as
settlement management. In addition, processes and policies related to such risks are overseen by
senior management. The Company monitors its liquidity risk and maintains a level of cash and
cash equivalents deemed adequate by management to finance the Company’s operations and to
mitigate the effects of fluctuations in cash flows.
The company relies on mix of borrowings, capital infusion and excess operating cash flows to
meet its need for funds. The current committed limits are sufficient to meet its short and medium-
term requirements. The company ensures that it does not breach any financial covenants
stipulated by the lender. In the event of breach of covenants the Company may be liable to pay
additional interest. The Company also ensures that it has sufficient cash on demand to meet
expected operational expenses. As of March 31,2025, the cash and cash equivalents are held with
major banks.
39. CAPITAL MANAGEMENT:
The primary objective of the Company’s capital management is to ensure that it maintains a
healthy capital ratio in order to support its business and maximise shareholder value. The
Company’s objective when managing capital is to safeguard their ability to continue as a going
concern so that they can continue to provide returns for shareholders and benefits for other stake
holders. The Company focused on keeping strong total equity base to ensure independence,
security, as well as a high financial flexibility for potential future borrowings, if required without
impacting the risk profile of the Company.
The Company manages its capital structure and makes adjustments in light of changes in
economic conditions and the requirements of the financial covenants. In order to achieve this
overall objective, the Company’s capital management, amongst other things, aims to ensure that it
meets financial covenants attached to the interest-bearing and borrowings that define capital
structure requirements. Breaches in meeting the financial covenants would thereby permit the
banks/financial institutions to immediately call loans and borrowings. The Company has complied
with these covenants and there have been no breaches in the financial covenants of any interest¬
bearing loans and borrowings in the current period.
No changes were made in the objectives, policies or processes for managing capital during the
years ended March 31,2025 and March 31,2024.
The Company’s audit committee reviews the capital structure of the Company on periodic basis.
As part of this review, the committee considers the cost of capital and the risks associated with the
same.
The company also manages its capital to meet financial covenants, if any attached to the
borrowings. Non-compliances may result in levy of higher rate of interest on Loans charged by the
lenders. At present the company has generally been complying with the financial covenants of the
borrowings during the reported period.
40. SEGMENT REPORTING:
The Company’s activities during the year revolve around Steel and Steel Products.
Considering the nature of Company’s business and operations, as well as based on reviews of
operating results by the chief operating decision maker to make decisions about resource
allocation and performance measurement, there is only one reportable segment in accordance
with the requirements of Ind AS - 108 - '‘Operating Segments’', prescribed under Companies
(Indian Accounting Standards) Rules, 2016
Figures shown in the bracket represent the previous year i.e., 31 March 2024.
Notes :
a) Remuneration to Key Management Personnel is '52.87 Lakhs
b) Sitting Fees to Directors is ' 0.56 Lakhs
c) Related Party relationship is as identified by the Company and relied upon by the Auditors.
d) All transactions from related parties are made in ordinary course of business. For the year
ended March 31 2025, the Company has not recorded any impairment of receivables relating
to amounts owed by related parties. This assessment is undertaken each financial year by
reviewing the financial position of the related party and the market in which the related party
operates.
e) In respect of above parties, there is no provision for doubtful debts as on March 31,2025 and
no amount has been written back or written off during the year in respect of debts due from/ to
them.
f) Previous year figures have been re-casted/re-stated wherever necessary.
Notes:
1. Changes in the Debt-Equity ratio is on account of repayment of term lo
2. Increase in Net Profit is due to profit on sale of PPE.
3. Change in Inventory turnover ratio is due to higher inventory at the end of the year.
4. Increase in Inventory and marginal reduction in Turnover resulted in lower Net capital turnover ratio.
5. Significant investments held by the company is for the compliance of Electricity Act 2002. Therefore benchmarking the
return on annual basis will not reflect yield from such investments.
44. OTHER STATUTORY INFORMATION
a. The Company does not have any Benami property, where any proceeding has been initiated or pending
against the Company for holding any Benami property.
b. There are no transactions and / or balance outstanding with companies struck off under section 248 of
the Companies Act, 2013.
c. The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond
the statutory period.
d. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.
e. 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:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
f. 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 Group shall:
i) 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
ii) provided any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries
g. The Company does not any transactions which are not recorded in the books of accounts that have
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)
h. The company does not have any investments through more than two layers of investment companies
as per section 2(87) (cd) and section 186 of Companies Act, 2013.
i. The Company has not been declared as willful defaulter by any bank or financial institution or other
lender.
j. The Company has entered into any scheme of arrangement which has an accounting impact on current or
previous financial year.
44A - USAGE OF ACCOUNTING SOFTWARE BY THE COMPANY:
The Company has used accounting software for maintaining its books of accounts which has a feature of
recording audit trail (edit log) facility of each and every transaction, creating an edit log of each change made
in books of account, 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.
Note: During the previous year, windmill assets amounting to '4,181.00 lakhs were classified as
assets held for sale and presented under Current Assets. During the current year, out of these,
assets amounting '4,166.48 lakhs have been disposed of. The balance of '14.52 lakhs, which is
expected to be realised beyond twelve months, has been regrouped and presented under non¬
current assets held for sale in accordance with Ind AS 105 - Non-current Assets Held for Sale and
Discontinued Operations.
As per the report of event date annexed For and on behalf of the Board of Directors
For CHATURVEDI & PARTNERS KANISHK STEEL INDUSTRIES LIMITED
Chartered Accountants
FRN 307068E
VISHAL KEYAL ASHOK BOHRA
M MAHESWARI, FCA Chairman & Managing Director Whole-time Director & CFO
Partner DIN No. 00092651 DIN No. 00187115
M. No.241814
Date : 28-05-2025 HENA SINGH
Place : Chennai Company Secretary
Membership No. A26868
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