1. CORPORATE INFORMATION

The Company was incorporated on January 7, 1992 and is a public limited company, equity shares of which are listed on the Bombay Stock Exchange. The main object of the company is to manufacture, import, export, trade and otherwise deal in all types of metal and products thereof.

2.1 FIRST TIME ADOPTION OF IND AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016, if any. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

2.1.1 The authorised equity shares were 1,50,00,000 and the issued, subscribed and paid-up shares were 1,34,36,415 as of April 1, 2017. The company has increased its authorised capital from Rs. 1500 Lakhs to Rs. 2500 Lakhs comprising of 250 Lakhs equity shares having face value of Rs. 10 each as approved in General Meeting of the members held on March 28, 2018

2.1.2 The Company has only one class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share.

2.1.3 The details of shareholder holding more than 5% shares are set out below :

2.2.1 The inventories are valued at lower of Cost or Net Realizable Value

2.2.2 The Stores and spares having useful life greater than one year is classified under property plant & equipment as per IND AS- 16

Unpaid Dividend Account

If the dividend has not been claimed within 30 days from the date of its declaration, the Company is required to transfer the total amount of the dividend which remains unpaid or unclaimed, to a special account to be called “Unpaid Dividend Account”. The above amount includes Rs. 1792.50 as excess deposited by the company in dividend accounts. The unclaimed dividend lying in such account is required to be transferred to the Investor Education and Protection Fund (IEPF), administered by the Central Government after a period of seven years from the date of declaration.

Balances with banks held as margin money deposits

Amounts in margin money deposits represents the amount deposited with the banks/ financial institutions towards margin money under the stipulation of Sanctioned Credit Facility for issuance of Letter of Credit/ Bank Guarantees including both financial and performance guarantees, LOU/LUT etc from Banks/ financial institutions.

Deferred tax assets and deferred tax liabilities have been offset wherever the Company has a legally enforceable right to set off current tax assets against current tax liabilities and where the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

In assessing the realizability of deferred income tax assets, management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of future taxable income during the periods in which the temporary differences become deductible. Management considers the scheduled reversals of deferred income tax liabilities, projected future taxable income, and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, management believes that the Group will realize the benefits of those deductible differences. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced.

2.3.1 Capital Management

The Company’s capital management objective is to maximise the total shareholder return by optimising cost of capital through flexible capital structure that supports growth. Further, the Company ensures optimal credit risk profile to maintain/enhance Credit rating.

The Company determines the amount of capital required on the basis of annual operating plan and log-term strategic plans. The funding requirements are met throught internal accruals and long-term / short-term borrowings. The Company monitors the capital structure on the basis of Net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

2.3.2 Financial risk management objectives

The Company has adequate internal processes to assess, monitor and manage financial risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk. The company seeks to minimise the effects of these risks by using financial instruments such as foreign currency forward contracts, option contracts, interest and currency swaps to hedge risk exposures and appropriate risk management policies as detailed below. The use of these financial instruments is governed by the Company’s policies, which outlines principles foreign exchange risk, interest rate risk, credit risk and deployment of surplus funds.

2.4 Corporate Social Responsibility

The applicability of concept of Corporate Social Responsibility on the Company commenced from the Financial Year 2016-17 as the turnover of the company crossed INR 1000 Crs in the Financial Year 2015-16. Accordingly, Board of Directors constituted Corporate Social Responsibility Committee. Futher , Company had incorporated a wholly owned subsidiary RCI Skills & Social Development Private Limited towards CSR and Corporate Social Responsibility Committee had given their recommendation to incur the CSR expenses through the said subsidiary and identified the area of vocation Skills expecially among children as specified the schedule VII of the Companies Act, 2013. However, during the Financial Year 2016-17 the subsidiary company has applied various governments tender related to said vocational skills but all the tenders got rejected on technical grounds. Hence, requisite amount of CSR expenditure could not be spent. However company has committed to spend the consolidated amount of CSR for both current and previous financial year during the financial year 2017-18 in order to comply the Companies Act, 2013 in true Spirit.

Accordingly the company has spent Rs.35 Lakhs in the Financial Year 2017-2018.

2.5 Other Notes

(i) Previous Year figures are regrouped and reclassified wherever necessary to conform to current year’s presentation.

(ii) There were no dues outstanding to small, Medium and Micro Undertakings to the extent that such parties have been identified from available information by the management.

(iii) The Company has entered into operating lease agreements for certain offices premises, works and warehouses. The lease are for a period of 1-9 years and may be renewed for a further period, based on mutual agreement of the parties.

(iv) The lease agreements provide for an increase in the lease payments by 10-15% every one or two years.

(v) Lease payments of Rs. 24.04 Lakhs (LY 16.70 Lakhs) have been recognised in the statement of Profit & Loss with respect of above mentioned operating lease agreements.

(vi) Some of the balances of receivable and payables remains unconfirmed till balance sheet date.

(vii) In the opinion of the management, current assets, loans and advances have a value not less than what is stated in the accounts if realised in the ordinary course of business.