17. Provisions, Contingent Liabilities and Contingent Assets:

A provision is recognised if, as a result of a past event, the Company has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will
be required to settle the obligation.

Provisions for onerous contracts are recognized when the expected benefits to be derived by the
Company from a contract are lower than the unavoidable costs of meeting the future obligations
under the contract.

A disclosure for contingent liabilities is made where there is a possible obligation or a present
obligation that may probably not require an outflow of resources or an obligation for which the
future outcome cannot be ascertained with reasonable certainty. When there is a possible or a
present obligation where the likelihood of outflow of resources is remote, no provision or disclosure
is made.

Contingent assets are neither recognized nor disclosed in financial statements.

C. 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. On August 12, 2024 and
September 09, 2024, MCA issued the Companies (Indian Accounting Standards) Amendment Rules, 2024
and Companies (Indian Accounting Standards) Second Amendment Rules, 2024 introducing following
changes:

a) Ind AS 117 - Insurance Contracts: Ind AS 117: Insurance Contracts was introduced and Ind AS 104:
Insurance Contracts was withdrawn. This was accompanied with consequent amendments in other
standards.

b) Ind AS 116 - Leases: The amendments clarify accounting treatment for a seller lessee involved in sale
and leaseback transactions and introduced some related illustrative examples.

The above standard are effective from April 01,2024. The Company has reviewed the new pronouncements
and based on its evaluation has determined that it does not have any significant impact in its financial
statements.

Nature & Purpose of the Reserve:

Securities premium account: Securities premium account is credited when shares are issued at premium. The
reserve will be utilised in accordance with the provisions of the Companies Act, 2013.

General reserve: The General reserve is created by way of transfer of profits from retained earnings for
appropriation purposes. This reserve is utilised in accordance with the provisions of the Companies Act, 2013.

Retained earnings: Retained earnings are the profits that the Company has earned till date, less any transfers
to general reserve, dividends or other distributions paid to shareholders.

Other Comprehensive income (Remeasurement gain/loss on defined benefit plans): Remeasurement of
net defined benefit obligation recognized in other comprehensive income comprises of changes in actuarial
gains and losses and any change in the effect of the asset ceiling, excluding amounts included in net interest on
the net defined benefit liability.

a) During the previous year, the Company had divested/disposed its total stake in its associate company
'Formex Private Limited". The profit on divestment amounting to Rs 187.08 lakhs had been recorded during
the year ended March 31, 2024 and shown as "Exceptional Items".

b) During the previous year, the Company had implemented a Voluntary Retirement Scheme (VRS) for all its
eligible employees. Post the closure of the Scheme, the Company had paid a sum of Rs. 53.23 lakhs to its
employees in the scheme and the same has been disclosed as "Exceptional items".

Note 37 : Segment Reporting
Business Segment

The Company's Board of Directors consisting of Managing Director together with the Chief Financial Officer
has been identified as the Chief Operating Decision Maker (CODM) as defined under Ind AS 108 "Operating
Segments". The CODM evaluates the Company's performance and allocates the resources based on an analysis of
various performance indicators. The Company is primarily engaged in the business of manufacture of Industrial
Fasteners, bolts etc. Since all these segments meet the aggregation criteria as per the requirements of Ind AS
108 on 'Operating segments; the management considers these as a single reportable segment. Accordingly,
disclosure of segment information has not been furnished.

(i) All related party transactions entered during the year were in ordinary course of the business and are on
arm's length basis.

(ii) No amounts in respect of related parties have been written off / written back during the year, nor any
provision been made for doubtful debts / receivables during the year.

(iii) * The above figures do not include payment for provident & other funds. Also, figures for provisions
of compensated expenses and gratuity are not included as separate actuarial valuations are not
available.

(iv) ** Refer Note no. 49 on Lease accounting

(v) Working Capital loan of Rs 2,574.27 lakhs (as at March 31, 2024 - Rs. 2,537.68 lakhs) is secured against the
personal guarantee of Chairman & Managing Director of the Company.

DISCLOSURE PURSUANT TO IND AS - 19 "EMPLOYEE BENEFITS"

i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit
retirement plan ("The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump
sum payment to vested employees on retirement (sublect to completion of five years of continuous
employment), death, incapacitation or termination of employment that are based on last drawn salary and
tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on
the reporting date and the Company makes annual contribution to the gratuity fund administered by Life
Insurance Corporation of India under Group Gratuity Scheme.

The sensitivity analysis above have been determined based on reasonable possible changes of the respective
assumptions occurring at the end of the reporting period and may not be representative of the actual change.
It is based on a change in the key assumption while holding all other assumptions constant. When calculating
the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance
sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not
change as compared with the previous period.

The fair values of the financial assets and liabilities are included at the amount at which the instrument could
be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables,
other current liabilities, short term loans from banks and other financial institutions approximate
their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on
parameters such as interest rates and individual credit worthiness of the counterparty. Based on this
evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair
value of such instruments is not materially different from their carrying amounts.

The Company uses the following hierarchy for determining and disclosing the fair value of financial
instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not
based on observable market data.

C. Fair value estimation

For financial instruments measured at fair value in the Balance Sheet, a three level fair value hierarchy is used
that reflects the significance of inputs used in the measurements. The hierarchy gives the highest priority to
unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest
priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

• Level 1: quoted prices for identical instruments

• Level 2: directly or indirectly observable market inputs, other than Level 1 inputs; and

• Level 3: inputs which are not based on observable market data.

There were no significant changes in classification and no significant movements between the fair value
hierarchy classifications of financial assets and financial liabilities during the years.

Note 46 : Financial risk factors

The Company's principal financial liabilities comprise of loans, borrowings, trade and other payables. The
purpose of these financial liabilities is to finance the Company's operations and to provide support its operations.
The Company's principal financial assets, trade and other receivables and cash & cash equivalents derive their
value directly from its operations.

The Company's activities exposes it to Liquidity Risk, Market Risk and Credit risk. The Board of Directors reviews
and approves policies for managing each of these risks, which are summarised as below

a) Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are
settled by delivering cash or another financial asset. Liquidity risk management implies maintaining sufficient
cash including availability of funding through an adequate amount of committed credit facilities to meet the
obligations as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet
its short tem and long term liabilities as and when due. Anticipated future cash flows, undrawn committed
credit facilities are expected to be sufficient to meet the liquidity requirements of the Company.

(iii) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate
because of changes in market interest rates. The Company's long term borrowings have fixed rate of interest
and are carried at amortised costs. The interest rate risk exposure is mainly from changes in fixed and floating
interest rates. The interest rate are disclosed in the respective notes to the financial statement of the Company.
The following table analyse the breakdown of the financial liabilities by type of interest rate:

(c) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual
obligations. The Company is exposed to credit risks from its operating activities, primarily trade receivables, cash
and cash equivalents, deposits with banks and other financial instruments.

To manage the credit risk from trade receivables, the Company periodically assess financial reliability of
customers, taking into account the financial condition, current economic trends, and analysis of historical bad
debts and ageing of trade receivable. Individual risk limits are set accordingly. The Company considers the
probability of default upon initial recognition of asset and whether there has been a significant increase in credit
risk on an ongoing basis through each reporting period.

Trade and other receivables

The Company considers the probability of default upon initial recognition of assets and whether there has been
a significant increase in credit risks on an ongoing basis throughout each reporting period. The average credit
period allowed to the customers is in the range of 45-90 days.

To assess whether there is a significant change increase in credit risk the Company compares the risks of default
occurring on the assets as at the reporting date with the risk of default as at the date of initial recognition. It
considers the reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty's
ability to meet its obligations

(iv) Significant increase in credit risk on other financial instruments of same counterparty

Note 48 : Capital risk management

The Company's objectives when managing capital are to :

♦ safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders, and

♦ maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount of
dividends paid to shareholders etc.

Note 50

The Company has been maintaining its books of accounts in the SAP which has feature of recording audit trail of
each and every transaction, creating an edit log of each change made in books of account along with the date
when such changes were made and ensuring that the audit trail cannot be disabled, 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.

Additionally, The Company is in compliance with the preservation of audit trail as per the statutory requirements
for record retention.

Note51: 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) The Company does not have any transactions with companies struck off.

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) provide 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 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 party (ultimate beneficiaries) or

ii) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

g) The Company does not have any such transaction which is not recorded in the books of accounts that has
been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

h) The Company has complied with the number of layers prescribed under clause (87) of Section 2 of the Act
read with the Companies (Restriction on number of Layers) Rules, 2017.

i) The quarterly returns or statements of current assets filed by the Company with banks or financial
institutions are in agreement with the books of accounts.

j) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

k) The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was taken as at Balance sheet date.

Note 52

Certain financial assets and financial liabilities are subject to formal confirmations and reconciliations, if any. The
Management, however, is confident that the impact whereof for the year on the financial statements will not be
material.

Note 53:

Previous year's figures have been regrouped / rearranged wherever necessary to conform to the current year's
classification.

Note 54 :

The financial statements were approved for issue by the Board of Directors on May 26, 2025.

Signature to Notes 1 to 54

For and on behalf of the Board of Directors

I M PANJU N S MARSHALL

Whole time Director Managing Director

DIN:00121748 DIN:00085754

DHRUV PANDYA S KHANDELWAL

Chief Financial Officer Company Secretary

Membership No.: ACA 132013 Membership No.: ACS 48860

Place: Mumbai
Date: May 26, 2025