(a) Includes:

(i) Rs. 0.01 lakh (31 March 2021: Rs. 0.01 lakh) being the aggregate value of shares in Co-operative housing societies.

(ii) Rs. 4 lakhs (31 March 2021: Rs. 4 lakhs) for tenements in an association of apartment owners.

(b) During the financial year 2021-22, a flat at silvassa is classified from "Property, plant and equipment" (Gross carrying amount Rs. 9 lakhs and Accumulated depreciation of Rs. 2 lakhs till 31 March 2022) is classified as "Asset held for sale".

(c) During the year the company has sold Narayana property situated at Delhi having gross block of Rs. 153 lakhs and accumulated depreciation of Rs 25 lakhs under "Property, Plant and Equipment", Rs 55 lakh shown under the head " Investment Property" and Rs 22 lakh shown under "Right of use of assets" for a consideration of Rs. 900 lakhs.

(d) During the previous year, the Company had entered into a Memorandum of Understanding for the sale/transfer of its right in Ahmednagar property admeasuring 66,108 square meters. Gross carrying amount (Land Rs. 1 lakh and building Rs. 406 lakhs) and Accumulated depreciation on building of Rs. 301 lakhs has been classified from "Property, plant and equipment" to “Asset classified as held for sale".

(e) The Company has pledged certain assets against borrowing limits (refer note 57 for details).

(a) The Company incurred Rs. 220 lakhs in the year ended 31 March 2022 (31 March 2021: Rs. 10 lakhs) towards expenses relating to short-term leases and leases of low-value assets. The total cash outflow for leases is Rs. 250 lakhs for the year ended 31 March 2022 (31 March 2021: Rs. 31 lakhs), including cash outflow of shortterm leases and leases of low-value assets. Interest on lease liabilities is Rs. 13 lakhs for the year 31 March 2022 (31 March 2021: Rs. 11 lakhs). [Refer note 40 and note 47]

(b) During the year the Company has sold Narayana property at Delhi having gross block of Rs. 153 lakhs and accumulated depreciation of Rs 25 lakhs under "Property, Plant and Equipment", Rs 55 lakh shown under the head " Investment Property" and Rs 15 lakh shown under "Right of use of assets" for a consideration of Rs. 900 lakhs.

*Estimation of fair value

During the year, valuations of the Investment properties is performed by a registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. During the previous year, valuations of the Investment properties is performed by a independent valuer and not by registered valuer as defined under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017. The fair value measurement is based on comparable sales approach (Previous year : rental yield approach). The fair value measurement is categorised in level 3 of fair value hierarchy.

The fair valuation is based on current prices in the active market of similar properties. The main inputs used for valuation are quantum, area, location, demand, quality of construction, age of building and trend of fair market etc.

(c) The Company has no restrictions on the reliability of its investment property and no contractual obligations to purchase, construct or develop investment property or for repairs, maintenance and enhancements.

(d) During the year the company has sold Narayana property at Delhi having gross block of Rs. 153 lakhs and accumulated depreciation of Rs 25 lakhs under "Property, Plant and Equipment", Rs 55 lakh shown under the head " Investment Property" and Rs 22 lakh shown under "Right of use of assets" for a consideration of Rs. 900 lakhs.

Inventory write downs are accounted, considering the nature of inventory, ageing, and net realisable value. Write-downs of inventories to net realisable value amounted to Rs. 38 lakhs (31 March 2021: 100 lakhs). These write down were recognised as an expense during the year and included in the 'Changes in inventories of finished goods, work-in-progress, and stock-in-trade' in the Statement of Profit and Loss.

* Certain imported inventory amounting to Rs. 336 lakhs, which has been detained by the Bureau of Indian Standards (BIS), while the Company's application for License was pending BIS approval, as BIS is alleging that the said imported inventory doesn't meet the standards as specified in the notification issued by BIS. The matter is still pending before BIS and Company is awaiting for the outcome of the same.

(a) During the Current year, the Company has sold/transfered its right in Ahmednagar property admeasuring 66,108 square meters, as is where basis, for a consideration of Rs. 1,462 lakhs which has been duly approved by Board.

(b) During the Current year, the Company has entered into an agreement for the sale of one flat at Silvassa , for a consideration of Rs. 20 lakhs which has been duly approved by Board. The Company has received Rs. 14 lakhs as advance against the transactions. The transactions is likely to be completed in FY 2022-23 hence same has been classified as 'Assets classified as held for sale'.

Note 23 b- Rights, preferences and restrictions

The Company has only one class of shares referred to as equity shares having a par (face) value of Rs. 10 per share. Each and every shareholder is eligible for one vote per share held.

In the event of liquidation of the Company, the equity shareholders will be entitled to receive the remaining assets of the Company, after distribution of all the preferential amounts, in proportion to their shareholding.

(i) Nature of Security and terms of repayment for short term secured borrowings of Company:

Working capital loan from a bank, balance outstanding amount as at 31 March 2022 is Rs. Nil (31 March 2021: Rs 2,800 lakhs) is secured first pari passu charge by way of hypothecation of Company's entire stocks and book debts, both present and future, exclusive charge on the entire plant and machinery and other movable fixed assets of the Company and on the land and building of the Company located at survey no. 59/11/1,59/11/2, 59/11/3, 59/12 and 59/13 situated at village Masat, Silvassa Dadra and Nagar Haveli. Working capital loan repayable on demand, Rate of interest 7% p.a. (31 March 2021: 7.20% p.a.)

(ii) Guarantees given by banks to third parties amounting to Rs. 2,657 lakhs (31 March 2021: Rs. 2,202 lakhs) on behalf of the Company are secured against securities mentioned in (i) above.

Future cash outflows in respect of above matters are determinable only on receipt of judgments/decisions pending at various forums/authorities. The management does not expect these claims to succeed and accordingly, no provision for the contingent liability has been recognised in the financial statements.

a) The Bank returns were prepared and filed before the completion of all financial statements closure activities including Ind AS related adjustments / reclassifications, as applicable, which led to these differences between the final books of accounts and the bank returns which were based on provisional books of accounts.

b) Difference is due to restatement as entry was passed in the month of April 21 during closing of Mar 21.

c) Figures reported to bank were before considering provision of Rs.400 lakhs (Penalty for delay in office site Mobilization & Non Maintance of adequate Manpower).

d) Figures reported to bank were before considering provision of Rs.1,400 lakhs of receivable from Binyam International Company for General Trading & Contracting WLL.

The Group recognized right-of-use assets and lease liabilities amounting to Rs. 400 lakhs (31 March 2021: Rs. 11 lakhs) and Rs. 43 lakhs (31 March 2021: Rs. 11 lakhs) respectively. During the year ended, the Company had recognized interest expense on lease amounting to Rs. 13 lakhs (31 March 2021: Rs. 11 lakhs) and depreciation on right-of-use assets amounting to Rs. 26 lakhs (31 March 2021: Rs. 16 lakhs).

a. The aggregate depreciation expense on Right-of-use assetss is included under ""Depreciation and amortization expense"" in the statement of Profit and Loss.

b. During the current year 2021-22 in Right-of-use assets and lease liabilities, there is addition of Rs 43 lakhs towards laptops taken on rental basis.

c. The accrued finance cost on lease liabilities is included under "Finance cost" in the statement of Profit and Loss.

Lease payments not recognised as a liability

The Company has opted not to recognise a lease liability for short term leases (leases of expected term of 12 months or less). The Company has taken short term leases with a lease term of 12 months or less and the aggregate amount of operating lease rent debited to statement of profit and loss during the year is Rs. 220 lakhs (31 March 2021: Rs 10 lakhs). [Refer note 41]

Note 49- In the current year, Company operations are at normalcy and there is no impact of pandemic on the Company's financials for the year ended 31 March 2022. However, the Management is continuously monitoring the current COVID-19 developments and possible effects that may result from the current pandemic on it's financial conditions, liquidity, operations and actively working to minimise the impact of this unprecedented situation.

Note 50 - Employee benefits

As per Indian Accounting Standard-19 'Employee Benefits', the disclosure of Employee benefits as defined in the Standard are given below:

Brief description of the plans:

The Company has various schemes for employee benefits such as provident fund, superannuation and gratuity. In case of funded schemes, the funds are administered through trustees/ appropriate authorities. The Company's defined contribution plans are superannuation, employees state insurance and provident fund as the Company has no further obligation beyond making the contributions. The Company's defined benefit plans consists of gratuity only. The employees of the Company are entitled to compensated absences as per the Company's policy.

I. Defined Contribution Plan:

(i) Superannuation fund

(ii) Provident fund

(iii) Employees State Insurance fund

During the year, the Company has recognised the following amounts in the Statement of profit and loss*:

(viii) Sensitivity Analysis:

Gratuity is a lump sum plan and the cost of providing these benefits is typically less sensitive to small changes in demographic assumptions. The key actuarial assumptions to which the benefit obligation results are particularly sensitive to discount rate and future salary escalation rate. The following table summarizes the impact in percentage terms on the reported defined benefit obligation at the end of the reporting period arising on account of an increase or decrease in the reported assumption by 50 basis points.

These sensitivities have been calculated to show the movement in defined benefit obligation in isolation and assuming there are no other changes in market conditions at the accounting date. There have been no changes from the previous periods in the methods and assumptions used in preparing the sensitivity analyses.

1. The estimate of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

III. Compensated absences

(i) An amount of Rs. 73 lakhs (31 March 2021: Rs 15 lakhs) has been recognised as an expense in the statement of profit and loss account and included in "Salaries, wages and bonus" under Note 39 "Employee benefits expenses".

Risk Exposure - Asset Volatility

The plan is of a final salary defined benefit in nature which is sponsored by the Company and hence it underwrites all the risks pertaining to the plan. In particular, there is a risk for the Company that any adverse salary growth or demographic experience or inadequate returns on underlying plan assets can result in an increase in cost of providing these benefits to employees in future. Since the benefits are lump sum in nature the plan is not subject to any longevity risks.

1. Mr. S. M. Bhat (DIN:05168265) had resigned from the office of / position of the Managing Director/ Employee/ Director of the Company with effect from 7 September 2020. The Board of Directors accepted his resignation with immediate effect and relieved him from his duties as the Managing Director.

2. Mr. Aditya T. Malkani (DIN:01585637) has been appointed as the Managing Director of the Company with effect from 14 September 2020 for a period of three (3) years by the Board of Directors of the Company.

3. Mr. Girish Anant Patkar had resigned from the office of / position of the Chief Financial Officer & Key Managerial Personnel of the Company with effect from 9 September 2020.

4. Mr. Surya kant Sethia was appointed as Chief Financial Officer & Key Managerial Personnel of the Company with effect from 8 February 2021.

5. All the above transactions with related parties are net of Goods and Service Tax.

Note 52 - Segment reporting

The Company's chief operating decision maker (CODM) examines the Company's performance and has

identified three reportable segments of its business instead of two segment as reported earlier:

(i) Consumables

(ii) Equipment and automation

(iii) Flares & Process Equipment Division*

The above operating segments have been identified considering:

(i) The internal financial reporting systems

(ii) The nature of the products/ process

(iii) The organisation structure as well as differential risks and returns of these segments.

Revenue and expenses have been accounted on the basis of their relationship to the operating activities of the segment. Expenses, which related to the Company as a whole and are not allocable to segments on a reasonable basis, have been included under "unallocable Income" and "unallocable Expenses" respectively. Assets and Liabilities, which related to the enterprise as a whole and are not allocable to segments on a reasonable basis, have been included under "Unallocable Assets / Liabilities". Inter-segment transfers are accounted for at competitive market prices charged to unaffiliated customers for similar goods.

C) Other disclosures

1. The Company is currently focused on three business segments : Consumables, Equipment and Automation and Flares & Process Equipment Division*. The Company's organisational structure and governance processes are designed to support effective management of multiple businesses while retaining focus on each one of them.

2. The Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segment and amounts allocated on a reasonable basis.

3. The geographical information considered for disclosure are :

(i) Sales within India

(ii) Sales outside India

4. No single external customer represents 10% or more of the Company's revenue from operations for the year ended 31 March 2022 and 31 March 2021.

* Earlier known as "Projects".

Note 53 - Fair value measurements Financial assets and liabilities

All the above amounts are net of provisions for impairments.

I. Fair value hierarchy

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. This section explains the judgments and estimates made in determining the fair values of the financial instruments that are

(a) recognised and measured at fair value and,

(b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the group 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. For example, listed equity instruments that have quoted market price.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the- counter derivatives) 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 are not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

II. Valuation techniques used to determine fair value

Significant valuation techniques used to value financial instruments include:

• the fair value of forward foreign exchange contracts is determined using forward exchange rates at the balance sheet date.

The fair values for Security deposits, loan to employees and deposits are based on discounted cash flows using a discount rate determined considering the borrowing rate charged by the bank on the loan facility availed.

During the years mentioned above, there have been no transfers amongst the levels of hierarchy.

The carrying amounts of trade receivables, cash and bank balances, current loans, other current financial assets, current borrowings, other current financial liabilities and trade payables are considered to be approximately equal to the fair value.

The fair values computed above for assets measured at amortised cost are based on discounted cash flows using a current borrowing rate. They have been classified at level 2 in fair value hierarchy due to the use of valuation techniques which measure the use of observable market data.

Note 54- Financial risk management

The company is exposed primarily to fluctuations in foreign currency exchange rates, credit quality and liquidity management which may adversely impact the fair value of its financial assets and liabilities. The Company has a risk management policy which covers risk associated with the financial assets and liabilities. The risk management policy is approved by the Board of Directors. The focus of the management is to assess the unpredictability of the financial environment and to mitigate potential adverse effect on the financial performance of the company. The Company's principal financial assets include loans, investments, trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company also holds investments in mutual funds and bonds.

A) Credit risk

Credit risk is the risk of financial loss arising from counterparty failure to repay or service debt according to the contractual terms and obligations. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and credit worthiness of the customer on continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. The financial instruments that are subject to concentration of credit risk principally consist of trade receivables, loans, cash and bank balances and bank deposits.

To manage credit risk, the Company follows a policy of advance payment or credit period upto 30 days to reputed customers. In case of foreign receivables, majority of the sales are made either against advance payments or by way of letter of credit. The credit limit policy is established considering the current economic trends of the industry in which the company is operating. Also, the trade receivables are monitored on a periodic basis for assessing any significant risk of non-recoverability of dues and provision is created accordingly.

Bank balances are held with only high rated banks and majority of other security deposits are placed majorly with government agencies.

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company's objective is to maintain optimum levels of liquidity and to ensure that funds are available for use as per requirement. The liquidity risk principally arises from obligations on account of following financial liabilities viz. borrowings, trade payables and other financial liabilities.

The Company's corporate finance department is responsible for liquidity and funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Company's net liquidity position through rolling forecasts on the basis of expected cash flows.

The maturity profile of the Company's financial liabilities based on contractual undiscounted payment at each reporting date is :

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 risk comprises three types of risk: Foreign currency risk, interest rate risk and price risk. The company's exposure to market risk is primarily on account of foreign currency risk and price risk.

(i) Foreign currency risk

The Company is exposed to foreign exchange risk on their receivables, payables and bank balances which are held in uSD, AED, KWD and EuR. The fluctuation in the exchange rate of INR relative to uSD, AED, KWD and EuR may have a material impact on the Company's assets and liabilities.

In respect of the foreign currency transactions, the Company manages the exchange rate exposure by entering into forward contracts where the exposure is significant. Further, some of the exposures are kept open since the management believes the same will be offsetted by the corresponding receivables and payables which will be in the nature of natural hedge.

(ii) Price Risk

The Company is exposed to price risk from its investment in mutual fund and bonds classified in the balance sheet at fair value through profit or loss.

To manage its price risk arising from the investment, the Company has invested in the mutual funds and bonds after considering the risk and return profile of the said investments i.e. the debt profile of the investments indicates that the debt has been given to creditworthy banks and other institutional parties and equity investment is made after considering the performance of the stock.

Note 55 - Capital 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 to shareholders and benefits to 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 adjust the amount of dividends paid to shareholders.

The Company monitors its capital by using gearing ratio, which is net debt divided by total equity. Net debt includes interest bearing loans. Total equity comprises of Equity share capital, General reserve, Capital redemption reserve and Retained earnings.

Note 60- Revenue from contracts with customers: Ind AS 115

The Company is engaged in providing welding Products Technologies and Services, customized solutions for multi-disciplinary projects and contracts related to refineries, oil and gas, petrochemicals, fertilizers, steel plants, pharma, water and other chemical process industries.

The Company determines revenue recognition through the following steps:

1. Identification of the contract, or contracts, with a customer.

2. Identification of the performance obligations in the contract.

3. Determination of the transaction price.

4. Allocation of the transaction price to the performance obligations in the contract.

5. Recognition of revenue when, or as, we satisfy a performance obligation.

a) Disaggregated revenue information

The Company has three reportable segments of its business :

(i) Consumables

(ii) Equipment and automation

(iii) Flares & Process Equipment Division*

(ii) Significant changes in the contract assets and the contract liabilities balances during the year are as follows:

1. The significant changes in contract Assets includes contracts are billed during the year for an amount of Rs. 186 lakhs (31 March 2021: Rs. 3,787 lakhs) and unbilled revenue written off during the year Rs. 3 lakhs (Previous year : 1,320 lakhs).

2. The significant changes in contract liabilities includes customer and distributors advance during the year increased by Rs. 298 lakhs (31 March 2021 increased by Rs. 111 lakhs).

Note 63- Corporate Social Responsibility :

The Company has formed a Corporate Social Responsibility (CSR) Committee as required under Section 135 of the Companies Act, 2013. The Company is required to spend Rs. 48.46 lakhs as per Section 135(5). However, the Company has spent Rs. 47.36 lakhs on the activities mentioned in Schedule VII to the Companies Act, 2013. The Company had spent Rs. 1.10 lakh excess in previous financial year and hence eligible for set off, against current financial year obligation.

Note 65 - The Board has recommended a final dividend for the financial year 2021-22 @ Rs.12.5 per share, i.e. 125% of the face value of Rs.10 each.

Note 66 - The Company evaluated subsequent events from the balance sheet date to 20 May 2022, the date at which the financial statement were available to be issued and determined that there are no item to report.

Note 67 - Amounts below Rs 0.50 lakh have been rounded off.

The accompanying notes form an integral part of the standalone financial statements

This is a summary of significant accounting policies and other explanatory information referred to in our other report of even date.