1.10 Provisions, Contingent Liabilities and Contingent Assets:

Provisions are recognised when the Company has a present legal or constructive
obligation as a result of past events, it is probable that an outflow of resources
will be required to settle the obligation and the amount can be reliably estimated.
Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management’s best estimate of
the expenditure required to settle the present obligation at the end of the reporting
period. The discount rate used to determine the present value is a pre tax rate
that reflects current market assessments of the time value of money and the risks
specific to the liability. The increase in the provision due to the passage of time is
recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise
from past events but their existence will be confirmed by the occurrence or non
occurrence of one or more uncertain future events not wholly within the control of
the Company or where any present obligation cannot be measured in terms of future
outflow of resources or where a reliable estimate of the obligation cannot be made.

A contingent asset is disclosed, where an inflow of economic benefits is probable.
An entity shall not recognize contingent asset unless the recovery is virtually
certain.

1.11 Borrowing costs

General and specific borrowing costs directly attributable to the acquisition/
construction of qualifying assets, which are assets that necessarily take a
substantial period of time to get ready for their intended use, are added to the cost
of those assets, until such time the assets are substantially ready for their intended
use. All other borrowing costs are recognised as an expense in Statement of Profit
and Loss in the period in which they are incurred.

1.12 Recognition of income

Interest income from a financial asset is recognised when it is probable that the
economic benefits will flow to the Company and the amount of income can be
measured reliably. Interest income is accrued on a time basis, by reference to the
principal outstanding and at the effective interest rate applicable, which is the rate
that exactly discounts estimated future cash receipts through the expected life of
the financial asset to that asset’s net carrying amount on initial recognition.

Dividends are recognised in the Statement of Profit and Loss only when the right
to receive payment is established.

1.13 Employee benefits

a) Short term employee benefits

Short term employee benefits are recognised as expenditure at the
undiscounted value in the Statement of Profit and Loss of the year in which
the related service is rendered.

b) Post employment benefits

i) Defined contribution plan

The Company’s contribution to Provident Fund and Employees State
Insurance Scheme is determined based on a fixed percentage of the
eligible employees’ salary and charged to the Statement of Profit and
Loss on accrual basis. The Company has categorised its Provident Fund,
Labour Welfare Fund and the Employees State Insurance Scheme as a
defined contribution plan since it has no further obligations beyond these
contributions.

ii) Defined benefits plan

The Company’s liability towards gratuity, being a defined benefit plan are
accounted for on the basis of an independent ‘actuarial valuation based
on Projected Unit Credit Method.

Service cost and the net interest cost is included in employee benefit
expense in the Statement of Profit and Loss. Actuarial gains and losses
comprise experience adjustments and the effects of changes in actuarial
assumptions and are recognised immediately in ‘Other Comprehensive
Income’ as income or expense.

iii) Compensated absences

Accumulated compensated absences, which are expected to be availed
or encashed within 12 months from the end of the year are treated
as short term employee benefits. The obligation towards the same is
measured at the expected cost of accumulating compensated absences
as the additional amount expected to be paid as a result of the unused
entitlement as at the year end. The Company’s liability is actuarially
determined (using the Projected Unit Credit method).

1.14 Income Tax

Income tax expense comprises current tax, deferred tax charge or credit. The
deferred tax charge or credit and the corresponding deferred tax liability and
assets are recognized using the tax rates that have been enacted or substantially
enacted on the Balance Sheet date.

Deferred Tax assets arising from unabsorbed depreciation or carry forward losses
are recognized only if there is virtual certainty of realization of such amounts. Other
deferred tax assets are recognized only to the extent there is reasonable certainty
of realization in future. Deferred tax assets are reviewed at each Balance Sheet
date to reassess their reliability.

1.15 Cash and cash equivalents

Cash and cash equivalents includes cash in hand and deposits with any qualifying
financial institution repayable on demand or maturing within three months from the
date of acquisition and which are subject to an insignificant risk of change in value.

1.16 Earnings per share

Basic earnings per share (EPS) is calculated by dividing the net profit or loss for the
year attributable to equity shareholders by the weighted average number of equity
shares outstanding during the year. Diluted EPS is computed using the weighted
average number of equity and dilutive equity equivalent shares outstanding during
the year.

1.17 Significant management judgements in applying accounting policies and
estimation uncertainty

When preparing the financial statements, management makes a number
of judgments, estimates and assumptions about the recognition and
measurement of assets, liabilities, income and expenses. Uncertainty about

these assumptions and estimates could result in outcomes that require a
material adjustment to the carrying amount of assets or liabilities affected in
future periods.

a) Impairment of non-financial assets

In assessing impairment, management estimates the recoverable amount
of each asset or cash-generating unit based on expected future cash flows
and uses an interest rate to discount them. Estimation uncertainty relates
to assumptions about future operating results and the determination of a
suitable discount rate.

b) Depreciation and useful lives of property, plant and equipment

Property, plant and equipment are depreciated over the estimated useful
lives of the assets, after taking into account their estimated residual value.
Management reviews the estimated useful lives and residual values of the
assets annually in order to determine the amount of depreciation to be
recorded during any reporting period. The useful lives and residual values are
based on the Company’s historical experience with similar assets and take
into account anticipated technological changes. The depreciation for future
periods is adjusted if there are significant changes from previous estimates.

c) Provisions

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 require
the application of judgment to existing facts and circumstances, which can be
subject to change. Since the cash outflows can take place many years in the
future, the carrying amounts of provisions and liabilities are reviewed regularly
and adjusted to take account of changing facts and circumstances.

d) Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying
assumptions such as standard rates of inflation, mortality, discount rate and
anticipation of future salary increases. Variation in these assumptions may
significantly impact the DBO amount and the annual defined benefit expenses

e) Material uncertainty about going concern:

In preparing financial statements, management has made an assessment of
Company’s ability to continue as a going concern. Financial statements are
prepared on a going concern basis. The Management is aware, in making
its assessment, of material uncertainties related to events or conditions that
may cast significant doubt upon the Company’s ability to continue as a going
concern.

Summary of the significant accounting policies and other explanatory information
for the period ended 31 March 2024

2 Property, Plant and Equipment (Amount in ' Lakhs)

Nature and purpose of reserves

(i) Securities premium :

The amount received in excess of face value of Equity Shares is recognised as Securities
Premium. The reserve will be utilised in accordance with the provisions of the Act.

(ii) Capital reserve:

The Capital Reserve is the capital subsidy received by the Company from the Government
of Pondicherry (now Puducherry) during the financial year 1988-89 and 1989-90.

(iii) Other Comprehensive Income:

Items of Other Comprehensive Income consists of remeasurement of defined benefit liability
/ asset.

(iv) Statement of Profit and Loss:

Retained earnings pertain to the accumulated earnings by the Company over the years.

26. M.B. Gupta HUF through Karta Mahesh Chand Gupta and others have filed C.P. No:

347/2020 and I.A. No: 701/2020 before the National Company Law Tribunal, Chennai,
against the Company and others, as and by way of re-litigation of grievances which were
already dealt with in the previous round of litigation in C.P. No. 56 of 2013 filed by Mr. Suresh
Kumar Jalan and others before the erstwhile Company Law Board, Chennai, which were
dismissed by the said judicial authority on 11 May 2015 and such dismissal having also
been confirmed in Company Appeal No: 20 of 2015 by the Hon’ble High Court, Madras on
26 August 2019

The Company and others have filed C.P. No: 248 of 2020 and I.A. No. 1177 of 2020
before the National Company Law Tribunal, Chennai, challenging the maintainability of the
aforesaid petition filed by the Petitioners viz. M.B. Gupta HUF and others, which are pending
for hearing before the Hon’ble Tribunal and these are scheduled to be heard as adjourned
to 05th July 2024.

In the meanwhile, M/s Suresh Kumar Jalan and others have filed a new petition against the
company and others before the National Company Law Tribunal, Chennai reiterating the
allegations of the petition filed by M/s M.B. Gupta and others vide reference C.P. 38 of 2023
which also stands adjourned to 05th July 2024

Mr. Sureshkumar Jalan has filed a criminal complaint too, in respect of corporate disputes
before the CB CID Police Puducherry against the company and its directors and the
Company is taking steps to defend the same in accordance with the law.

Liability if any on account of outcome of above mentioned petition are not quantifiable.

27. Fair value measurements

Financial instruments by category:

All financial assets and financial liabilities of the Company are under the amortised cost
measurement category at each of the reporting dates except mutual funds investments
which are recognised and measured at fair value through profit or loss (FVTPL) and
borrowings, which are recognised and measured at fair value through other comprehensive
income (FVOCI).

Fair value hierarchy

The following table provides the fair value measurement hierarchy of Company’s financial
assets and financial liabilities

- During the periods mentioned above, there have been no transfers amongst the level 2
and level 3 hierarchy.

Valuation process

- The Company evaluates the fair value of financial assets and financial liabilities on
periodic basis using the best and most relevant data available.

- Fair value of investments in Mutual Funds is on the basis of Net Assets Value (NAV)
declared.

- The carrying amounts of other financial assets, current borrowings, trade payables and
other current financial liabilities are considered to be approximately equal to their fair
value, since those are current in nature.

- Fair value of borrowings that are non-current in nature is calculated on the basis of
discounted future cash flows.

28 The Company has been carrying on trading operations. Hence information pursuant to
Ind-AS 108 on “Operating Segments” is not applicable to the Company.

29 The Company has opted for tax rate under section 115BAA of the Income Tax Act,
1961 which has been considered to determine the current tax liabilities.

30 Related Party Disclosures:

As per Ind-AS 24 “Related Party Disclosures”, disclosure of transactions with the
related parties and their balances as at the year end are given below:

31 Earnings per share (EPS)

The amount considered in ascertaining the Company’s earnings per share constitutes
the net profit after tax and includes post tax effect of any exceptional items. The number
of shares used in computing basic earnings per share is the weighted average number
of shares outstanding during the year. The number of shares used in computing diluted
earnings per share comprises the weighted average number of shares considered for
deriving basic earnings per share and also the weighted average number of shares
which could have been issued on conversion of all dilutive potential shares.

33 Employee Benefits Obligations

As per Ind-AS 19 “Employee Benefits”, the disclosures as defined in the Indian
Accounting Standard are given below :

Defined Contribution Plans:

The Company offers its employees defined contribution plan in the form of provident
fund, family pension fund and superannuation fund. Provident fund, family pension fund
cover substantially for all regular employees. Contributions are paid during the year
into separate funds. While both the employees and the company pay predetermined

E

Defined Benefit Plans:

The Company offers its employees defined benefit plans in the form of gratuity (a lump
sum amount). Benefits under the defined benefit plans are based on years of service
and the employees last drawn salary immediately before exit. The gratuity scheme
covers substantially all regular employees. However the Company has not created
any fund in accordance with the scheme. Commitments are actuarially determined at
year end. As per Ind-AS 19 “Employee Benefits”, Actuarial valuation is done based on
“Projected Unit Credit Method”. Gains and loss of changed actuarial assumptions are
charged to Statement of Profit & Loss. The obligation for leave Encashment benefits is
recognized in the manner similar to Gratuity.

Notes:-

1) Estimates of future salaries increases are based on inflation, seniority, promotion
and other relevant factors such as demand and supply in the employment market.
This assumption has been determined in consultation with the Company.

2) Discount rate used for valuing liabilities is based on yield (as on valuation date)
of Government with a term equal to the average future working life time of the
employees.

3) Withdrawal rate used for valuing liabilities have been considered as 5% at younger
ages and reducing as per graduated scale to 1%.

4) Retirement age has been considered as 65 years.

5) The above information is certified by actuary.

These gratuity plan typically expose the Company to actuarial risks such as:
investment risk, interest risk, longevity risk and salary risk.

Investment risk

The present value of the defined benefit plan liability is calculated using a discount rate
which is determined by reference to market yields at the end of the reporting period on
government bonds. For other defined benefit plans, the discount rate is determined by
reference to market yield at the end of reporting period on high quality corporate bonds
when there is a deep market for such bonds; if the return on plan asset is below this
rate, it will create a plan deficit.

interest risk

A decrease in the bond interest rate will increase the plan liability; however, this will be
partially offset by an increase in the return on the plan debt investments.

Longevity risk

The present value of the defined benefit plan liability is calculated by reference
to the best estimate of the mortality of plan participants both during and after their
employment. An increase in the life expectancy of the plan participants will increase the
plan’s liability.

Salary risk

The present value of the defined plan liability is calculated by reference to the future
salaries of plan participants. As such, an increase in the salary of the plan participants
will increase the plan’s liability.

34 Additional Information as required under Section 186 (4) of the Companies Act, 2013
during the year

(a) No Investment made in Body Corporate.

(b) No Guarantee is given by the Company.

(c) No Loans are given by the Company to Body Corporate or person.

35 Additional regulatory information

* The ratios for the year ended 31 March 2023 and 31 March 2022 are as follows :

36 The figures of the previous year have been reworked, regrouped, rearranged and
reclassified, wherever considered necessary to conform to the current year presentation
and disclouser requirement as per schedule III (as notified by MCA dated 24th March
2021) are mentioned to that exent applicable during the year.

37 The Company had only one business segment while in operation. Since 24 April
1995, after suspension of production and closure of plant, no manufacturing activity
has been carried out. Subsequently, the plant, machinery and equipments were
disposed of, leading to the disposal of the residuary asset land in November 2020. As
reported earlier, the Company had resumed trading in Iron & steel products, including
engineering products, in the international market. Hence, the Company operates only
in single Segment i.e Trading.

As per our report of even date

For Paresh Rakesh & Associates LLP For and on behalf of the Board of Directors

(Firm Registration No. 119728W/W100743)

Chartered Accountants

Sd/- Sd/- Sd/-

Nimit Sheth P. K. R. K. Menon Sharmila S. Chitale

Partner Director & Company Secretary Director

Membership No.142645 (DIN: 00106279) (DIN: 07146530)

Sd/-

Place : Mumbai B. N. Kamath

Date : May 30, 2024 Chief Financial Officer

(PAN: AESPK5610C)