b. Rights, preferences and restrictions attached to shares

The company has only one class of equity shares having par value of Rs.2 per share. Each holder of equity share is entitled to one vote per share.The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive remaining assets of the Company, after distribution of all preferential amounts, in the proportion to their shareholding.

14.1 Term loan-IFCI of Rs 101.00 Crores was sanctioned during the FY 2014-15 and carries interest @ BR 2.80% repayable in quarterly installments of Rs 5.94 crores.

14.2 Term Loans from IFCI is/was secured by first charge ranking pari passu on the entire immovable and movable fixed assets of the company i.e. land, building, plant and machinery and other fixed assets; second charge ranking pari passu on the current assets of the company and personal guarantee of promoter director.

14.3 Unsecured loan from IFCI venture capital funds ltd carries interest @ BR 1.55% and is repayable in quarterly installment of Rs.1.25 crores , commencing from August 201 7 against personal guarantee of promoter director.

14.4 Current maturities of long term loans have been considered in financial laibilities- Short Term Borrowings in note no. 1 7

¹⁴.⁵ Default in the payment of principal & Interest of Bank and financial institutions

The overdue interest on borrowing amounts to f 2967.37 lacs as reflected in the Ind AS financial statement "Other Current Financial Liabilities" which was outstanding as at March 31,2025.

The overdue principal repayments of borrowing amounts to f 6896.48 lacs as reflected in the Ind AS financial statement "Financial Liabilities-Borrowing" which was outstanding as at March 31, 2025.

The Company offsets the tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

17.01 The working capital limit from banks are repayable on demand and carry interest @ BR 2.25%. These are secured by way of first charge ranking pari passu on entire current assets existing as well as future i.e.raw materials, finished goods, semi finished goods, stores and receivables, second pari passu

charge on all immovable and movable fixed assets of the company and personal guarantee of promoter director.

1 7.02 The unsecured loans carry interest ranging from 1 2% to 1 5.50% per annum and repayable within one year.

17.03 The company has defaulted in payment of overdraft account & cash credits account amounting to Rs. 43,999.57 lacs (Previous year: Rs. 42,560.45 lacs) as reflected in the Ind AS financial statement "Financial Liabilities- Borrowing ( Note: 1 7)" which was outstanding as at March 31, 2025.

Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average numbers of shares outstanding during the period are adjusted for the effect of all dilutive potential equity shares.

32 Segment information

The company operates within India and does not have operations in economic environment with different risk and returns. As the company's business activity falls within a single operating segment of manufacturing of " non-ferrous semis" the financial statements are reflective of the information required by Ind As 1 08 operating segment.

34

³⁴ As per the information available with the Company transactions have been entered with suppliers as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, below mentiomed disclosure are made as required under the said Act.

The Company has compiled this information based on intimations received from the suppliers of their status as Micro or Small Enterprises and / or its registration with the appropriate authority under the Micro, Small and Medium Enterprises Development Act, 2006.

36 ^The Company do not have any transactions with companies struck off under Section 248 of the Companies Act, 201 3.

37 There is no disclosure to be made in the financials of the Company w.r.t. Ind AS 116 on “Leases” which is applicable from April 01, 201 9 as there is no lease as on the balance sheet date.

38 Previous years figures have been recast, re-classified, re-grouped wherever considered necessary.

39 Figures in these financial statements are in lacs unless otherwise stated.

40 Financial risk management

Company’s business activities are exposed to a variety of financial risks, namely credit risk, interest risk, liquidity risk, market risk.

a) Credit risk

Credit risk is the risk that counterparty will not meet its obligation under financial instrument or customer contract,leading to a financial loss. The Company is exposed to credit risk primarily from trade receivables, other receivables,deposits with banks.

Credit risk management for trade receivables

The customer credit risk is managed subject to the company’s established policy, procedure and controls relating to customer credit risk management. In order to contain the business risk, prior to acceptance of an order from a customer, the creditworthiness of the customer is ensured through scrutiny of its financials, if required, market reports, past experience and other factors. The Company remains vigilant and regularly assesses the financial position of customers during execution of contracts with a view to limit risks of delays and default. In view of the industry practice, credit risks from receivables are well contained on an overall basis.

The impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets as disclosed in note 7

Provision for expected credit losses

Basis as explained above, apart from specific provisioning against impairment on an individual basis for major customers, the Company provides for expected credit losses (ECL) for other receivables based on historical data of losses, current conditions and forecasts and future economic conditions, including loss of time value of money due to delays. In view of the business model of the Company and the prescribed commercial terms, the determination of provision for expected credit loss is determined for the total trade receivables outstanding as on the reporting date. Considering all such factors, ECL for trade receivables as at year end worked out as follows:

Other receivables, deposits with banks

The management does not expect any losses from non-performance of the above assets. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note no 8,9,10.

b) Liquidity risk

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions.

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk: Foreign currency rate risk, Interest rate risk, and other price risk.

Foreign currency risk:

The Company is exposed to foreign exchange risk arising from various currency exposures. Foreign exchange risk arises from future commercial transactions, recognized assets and liabilities denominated in a currency that is not the entity’s functional currency.

The Company is not exposed to significant foreign currency risk as at the respective reporting dates.

Interest rate risk:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate due to changes in market interest rates. The Company’s exposure to the risk of changes in interest rates relates primarily to the Company’s debt obligations with floating interest rates.

The company’s interest rate risk arises due to debt obligation and restricted deposit with bank. The exposure to interest risk is between 1 1% to 15.50% p.a. and in relation to restricted deposits is between 6% to 7%. These deposits are earnest money deposit issued by bank on behalf of the company. Restriction on such deposits is realized on the expiry of terms of respective arrangements.

The Company is not exposed to significant interest rate risk as at the respective reporting dates.

Price risk

The Company is mainly exposed to the price risk due to its investment in mutual funds. The price risk arises due to uncertainties about the future market values of these investments.

The Company is not exposed to significant price risk as at the respective reporting dates.

d) Capital management

The Company’s objectives when managing capital is to provide maximum returns to shareholders, benefits to other stakeholders and to maintain an optimal capital structure to reduce the cost of capital. The Company manages its capital structure and makes adjustments in light of changes in economic conditions.

The gearing ratio is calculated as net debt divided by total capital. Net debt is calculated as total borrowings less cash and cash equivalents.Total capital is calculated as equity as shown in the balance sheet plus all other equity reserves attributable to equity holders of the Company.

The management assessed that cash and cash equivalents, trade receivables, trade payables and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.

(ii) Fair value hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are recognised and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

(iii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the fair value of the mutual funds is determined using daily NAV as declared for the particular scheme by the Asset Management Company. The fair value estimates are included in Level 2.

42 Other statutory information for the year ended March 31,2025 and March 31, 2024

(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 under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

(b) The Company do not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(c) The Company have not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(d) 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:

(e) (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) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(f) (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) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

The Company does not have any such transaction which is not recorded in the books of account that has been surrendered or disclosed as income 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, 1 961.

(g) The Company has not been declared wilful defaulter by any bank or financial institution or Government or any Government authority or other lender, in accordance with the guidelines on wilful defaulters issued by the Reserve Bank of India.

(h) The Company has complied with the number of layers prescribed under Clause (87) of Section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 from the date of their implementation.

43 The restructuring of the company's business is under consideration by the lenders. In view of the management's expectation of successful outcome of above proposals and revival of its business based on its discussion with the lenders and feasible TEV(techno economic viability) reports, the financial statement has been prepared on a going concern basis. However, certain lenders of the company have filed applications/issued notices including in NCLT, DRT and SARFAESI. The management expects these to be resolved on the implementation of the restructuring. The TEV report conducted by the outside agency, which was appointed by the lenders, has envisaged certain reliefs/concessions primarily in the interest rates and payment tenures. The relief is envisaged from 01.11.2018 and accordingly the company is providing interest as per the envisaged restructuring plan. Therefore unprovided interest during the current financial year amounts to Rs. 3925.53 lakhs (Net of tax of Rs.2553.95 lakhs).

The company is in the process of settling the dues with the lenders towards which an amount of Rs. 705.00 lacs has been deposited with the bankers and financial institutions, for which final approval from some of the lenders is still awaited.

44 Company, its directors and key management personnel have received show cause notice from SEBI under section 11, 15 of SEBI Act, 1992 for which the company is in the process of filing its reply for the same.

46 Employee Benefit Plans 1 Defined benefits plans

The Company has a defined benefit gratuity plan . The Company’s defined benefit gratuity plan is a final salary plan for employees, which requires contributions to be made to a separately administered fund.

The gratuity plan is governed by the Payment of Gratuity Act, 1 972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member’s length of service and salary at retirement age.

Risk exposure:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

Salary Increases: Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

Investment Risk: If Plan is funded then assets liabilities mismatch & actual investment return on assets lower than the discount rate assumed at the last valuation date can impact the liability.

Discount Rate: Reduction in discount rate in subsequent valuations can increase the plan’s liability.

Mortality & disability: Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities. Withdrawals: Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

2 Defined contribution plans

The Company makes contribution towards provident fund and employees’ state insurance plan scheme for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes.

II. Audit Qualification (each audit qualification separately):

a. Details of Audit Qualification:

The restructuring of the company’s business is under consideration by the lenders. Consequent to the filing of restructuring proposal with lenders, feasible TEV (techno economic viability) study/reports of the operations of the Company was conducted by outside agency where in certain reliefs/ concessions have been envisaged to make the project viable. Included in there is relief in interest rates effective from 01.1 1.2018. The company has provided interest at the rates mentioned in TEV. This along with other unprovided interest amounts to Rs. 2,553.95 lakhs (net of tax) for the current financial year. The company is in the process of settling the dues with the lenders towards which an amount of Rs. 705.00 lacs has been deposited with the bankers and financial institutions, for which final approval from a lender is still awaited.

b. Type of Audit Qualification : Qualified Opinion

c. Frequency of qualification: Repetitive (appeared fifth time)

d. For Audit Qualification(s) where the impact is quantified by the auditor, Management's Views:

The management is of the view that the accounts of the company will be restructured accordingly the company and its bankers conducted TEV (techno economic viability) study. The company has considered its interest liabilities as per this restructuring plan.The company is in the process of settling the dues with the lenders towards which an amount of Rs. 705.00 lacs has been deposited with the bankers and financial institutions, for which final approval from a lender is still __awaited._

Note: Company has appointed Mr. Radhanath Pattanayak (DIN: 01189370) as its Whole Time Director (WTD) as per requirements of Section 203 of Companies Act, 201 3 and therefore, Statement of Impact is signed by WTD in place of CEO /MD.