31*11 Provision

Provisions are recognised when the Compeny has a present obligation (legal or constructive) as a result of a past
event ft is probable that an outflow of resources embodying economic benefits will be requited to settle the
obligation and a reliable estimate can be made of the amount of the obligation. *

If the effect of the time value of money Is material, provisions are discounted using a current pre-tax rate that
reflects, when appropriate, the risks specific to the liability. When discounting Is used, the increase in the
provision due to the passage of time is recognised as a finance cost

31,12 Earning Par Share

Basic earrings per share is computed by dividing the profit / (loss) after tax by the weighted average number of
equity sbsres outstanding during the year. The weighted average number of equity shares outstanding during tha
yaar is adjusted for treasury shares, bonus issue, bonus element tn a rights Issue to existing shareholders, share
split and reverse shore split (consolidation of shares).

Diluted earnings per share is computed by dividing the profit / (loss) after tax as adjusted for dividend. Interest and
other charges to expense or income (net of any attributable taxes) relating to the dilutive potential equity shares,
by the weighted average number of equity shares considered ter deriving basic earnings per share and the
weighted average number of edulty shares which could have been issued on the conversion of alt dliutfve
potential equity shares fnciudfng the treasury shares held by the Company to satisfy the exercise of the share
options by the employees.

32. CRITICAL ESTIMATION AMD JUDGEMENTS

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom
equal the actual results. Management also needs to exercise judgement In applying the company's accounting
policies, ¹

This note provides an overview of the areas that involved a higher degree of judgement or complex^ and of
' Items which are more likely to ba materially adjusted due to estimates end assumptions turning out to be different
than those ortgina&y assessed. Detailed information about each of these estimates and judgements is included In
relevant notes together with information about the basis of calculation for each affected Jine item In the financial
statements.

The areas involving critical estimates or judgements are:

- Estimation of useful lives of property, plant and equipment - Mote 1

Proparly, plant and equipment represent a significant proportion of the asset base of the Company. The charge in
^r respect of periodic depredation Is derived after determining an estimate of an asset's expected useful life and the
expected residual value at tha end of Hs life. The useful lives and residual values of Company's assets are
determine*! by the management at the time the asset is acquired and reviewed periodically, Including at each
financial yaar end. The lives are based on historical experience with similar assets as well as anticipation of future
events, which may impact their life, such as changes In technical or commercial obsolescence arising from
changes or improvements In production or from a change in market demand of the product or service output of
the asset

* Estimation of Provisions - Mote 14

- Estimation of current tax expense and payable - Mote 23 ¹

The Company's tax jurisdiction Is India. Significant judgements are involved in determining the provision tor
Income taxes, if any, including amount expected to ba paldfrecovared for uncertain tax positions. Further,
significant judgement is exercised to ascertain amount of deferred tax asset (DTA) that could be recognised
based on the probability that future taxable profits will be available against which OTA can bo utHlzed and amount
of temperary difference In which DTA can not be recognised on want of probable taxable profits

i

Estimates and judgements are continually evaluated. They are based on historical experience and other factors.
Including expectations of future events that may have a financial impact on the company and that are believed to
be reasonable under the circumstances.

33. The Company uses an accounting software for maintaining Its books of account which did not had a feature of
recording audit trail (edit log) facility and the same was not operated throughout the year tor all relevant
transactions recorded In tha accounting software,

34. The previous period figures have been regrouped / reclassified f rearranged, wherever necessary to confirm to the
current year presentation.

36. OTHER STATUTORY INFORMATION

a. The Company does not have any ber.ami property, where any proceedings has been initiated or pending against
the Company for hording any bonaml property;

b. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year;

c. 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

00 provide any guarantee security or the like to of on behalf of the animate beneficialles

d. The Company has not received any fund from any person(s) or entityOes). including foreign entities {funding party)
with the understanding (whether recorded in writing or otherwise) that the Company 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 perty (ultimate beneficiaries) or

(If) provide any guarantee, security or the like to or on behair of the ultimate beneficiaries

e. The Company does not have any such transaction which rs not recorded in the books of accounts that has been
surrendered or discJosed as income during the year In the tax assessments under the Income Tax Act, 1991
(such as, search or survey or any other relevant provisions of the Incomo Tax Act. 1961)

f. The Company is nol declared wilful defaulter by any bank or financial Institutions on lender during the year.

g. The Company does net have any charges or eatlsfaction which Is yet to be registered with ROC beyond the

statutory period

h Quarterfy returns or statements of current assets filed by the Company with banks or financial Institutions are In
agreement with the books of accounts

L The Company has used the borrowings from banks and financial institutions for the specific purpose for which H
was oblained,

j. The title deeds of all the Jmmovahle properties disclosed in the financial statements included in property, plant
and equipment and capial work-in-progress are beta In the name of the Company as at the balance sheet date.

A* per our report of oven date attached For & ON BEHALF OF BOARD

For SANJEEV ANAND & ASSOCIATES For NfRAJ ISPAT INDUSTRIES LTD

{£ Chartered AccounLants CINLZ7106 OL1985PLCC21811

Firm Regn No 007171C ,

t -3<w. ^

ptfiWaSlSKabad (Sumit Gupta) (Val&hali Cheudhry) (Chaltanya Chaudhry)

Dated: 29.05 2024 FCA Director Director and CEO

M No. 423453 Din 01719640 Din 06813394

Kl^ fW--7 .

(Nffra/ Chaudhry) (Shadmar. khan)

CFO Company Secretary