l) Contingent Liabilities & Contingent Assets
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is
probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable
estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the Statement of
Profit and Loss net of any reimbursement.
If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when
appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time
is recognised as a finance cost. Provisions are reviewed at each balance sheet and adjusted to reflect the current best estimates.
Contingent liabilities
A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence
or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is
not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent
liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured
reliably. The Company does not recognize a contingent liability but discloses its existence in the financial statements.
Contingent Assets
A contingent asset is not recognised unless it becomes virtually certain that an inflow of economic benefits will arise. When an
inflow of economic benefits is probable, contingent assets are disclosed in the financial statements.
Contingent liabilities and contingent assets are reviewed at each balance sheet date.
m) Employee benefits
Gratuity
The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees in accordance
with the Payment of Gratuity Act, 1972. The Gratuity Plan provides a lump sum payment to vested employees at retirement,
death, incapacitation or termination of employment, of an amount based on the respective employee's salary and the tenure
of employment. The gratuity plan in Company is Un-Funded.
The Company's Liabilities on account of Gratuity on retirement of employees are determined at the end of each financial
year on the basis of actuarial valuation certificates obtained from Registered Actuary in accordance with the measurement
procedure as per Indian Accounting Standard (Ind AS)-19 'Employee Benefits. The liability or asset recognised in the balance
sheet in respect of defined benefit gratuity plans is the present value of the defined benefit obligation at the end of the
reporting period less the fair value of plan assets. The Company's liability is actuarially determined (using the Projected Unit
Credit method) at the end of each year. The present value of the defined benefit obligation is determined by discounting
the estimated future cash outflows using interest rates of government bonds. Re-measurement gains and losses arising from
experience adjustments and changes in actuarial assumptions are charged or credited to equity through other comprehensive
income in the period in which they arise. They are included in retained earnings through OCI in the statement of changes in
equity and in the balance sheet. Past-service costs are recognised immediately in statement of profit and loss. Re-measurements
are not reclassified to profit or loss in subsequent periods.
Past service costs are recognised in profit or loss on the earlier of:
a) The date of the plan amendment or curtailment, and
b) The date that the Company recognises related restructuring costs
Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Company
recognises the following changes in the net defined benefit obligation as an expense in the statement of profit and
loss :
a) Service costs comprising current service costs, past-service costs, gains and losses on curtailments and non-routine
settlements; and
b) Net interest expense or income
Compensated Absences
Liability in respect of compensated absences becoming due or expected to be availed within one year from the reporting
date is recognized on the basis of undiscounted value of estimated amount required to be paid or estimated value of benefit
expected to be availed by the employees. Liability in respect of compensated absences becoming due or expected to be
availed more than one year after the reporting date is estimated on the basis of an actuarial valuation performed by an
independent actuary using the projected unit credit method at the year-end.
Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months
after the end of the period in which the employees render the related service are recognised in respect of employee's services
up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.
The liabilities are presented as current employee benefit obligations in the balance sheet.
n) Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument
of another entity.
Financial Assets
Initial recognition and measurement
Financial assets are classified, at initial recognition, as subsequently measured at amortised cost, fair value through other
comprehensive income (OCI), and fair value through profit or loss.
The classification of financial assets at initial recognition depends on the financial asset's contractual cash flow characteristics
and the Company's business model for managing them. With the exception of trade receivables that do not contain a
significant financing component or for which the Company has applied the practical expedient, the Company initially
measures a financial asset at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a significant financing component or for which the Company has applied the
practical expedient are measured at the transaction price determined under Ind AS 115.
In order for a financial asset to be classified and measured at amortised cost or fair value through OCI, it needs to give rise
to cash flows that are 'solely payments of principal and interest (SPPI)' on the principal amount outstanding. This assessment
is referred to as the SPPI test and is performed at an instrument level. Financial assets with cash flows that are not SPPI are
classified and measured at fair value through profit or loss, irrespective of the business model.
The Company's business model for managing financial assets refers to how it manages its financial assets in order to generate
cash flows. The business model determines whether cash flows will result from collecting contractual cash flows, selling the
financial assets, or both. Financial assets classified and measured at amortised cost are held within a business model with the
objective to hold financial assets in order to collect contractual cash flows while financial assets classified and measured at
fair value through OCI are held within a business model with the objective of both holding to collect contractual cash flows
and selling.
Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention
in the marketplace (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase
or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
Q Financial assets at amortised cost (debt instruments)
Q Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains and losses
(debt instruments)
Q Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon derecognition
(equity instruments)
Q Financial assets at fair value through profit or loss
Financial assets at amortised cost (debt instruments)
A 'financial asset' is measured at the amortised cost if both the following conditions are met:
Q The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and
Q Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and interest
(SPPI) on the principal amount outstanding.
After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest rate
(EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs
that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The losses arising from
impairment are recognised in the profit or loss. The Company's financial assets at amortised cost includes trade receivables,
and loans to employees included under financial assets.
Financial assets at fair value through OCI (FVTOCI) (debt instruments)
A 'financial asset' is classified as at the FVTOCI if both of the following criteria are met:
Q The objective of the business model is achieved both by collecting contractual cash flows and selling the financial
assets, and
Q The asset's contractual cash flows represent SPPI.
Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair value. For
debt instruments, at fair value through OCI, interest income, foreign exchange revaluation and impairment losses or reversals
are recognised in the profit or loss and computed in the same manner as for financial assets measured at amortised cost. The
remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value changes recognised in OCI
is reclassified from the equity to profit or loss.
Financial assets designated at fair value through OCI (equity instruments)
Upon initial recognition, the Company can elect to classify irrevocably its equity investments as equity instruments designated
at fair value through OCI when they meet the definition of equity under 'Ind AS 32 Financial Instruments: Presentation and are
not held for trading'. The classification is determined on an instrument-by-instrument basis. Equity instruments which are held
for trading and contingent consideration recognised by an acquirer in a business combination to which Ind AS 103 applies are
classified as at FVTPL.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are recognised as other income in the
statement of profit and loss when the right to receive the payment has been established, except when the Company benefits
from such proceeds as a recovery of part of the cost of the financial asset, in which case, such gains are recorded in OCI. Equity
instruments designated at fair value through OCI are not subject to impairment assessment.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair value
recognised in the statement of profit and loss.
Dividend income is recognised when the Company's right to receive the payment has been established, which is generally
when shareholders approve the dividend.
Impairment of financial assets
The Company recognises an allowance for expected credit losses (ECLs) for all debt instruments not held at fair value through
profit or loss. ECLs are based on the difference between the contractual cash flows due in accordance with the contract and
all the cash flows that the Company expects to receive, discounted at an approximation of the original effective interest rate.
The expected cash flows will include cash flows from the sale of collateral held or other credit enhancements that are integral
to the contractual terms.
ECLs are recognised in two stages. For credit exposures for which there has not been a significant increase in credit risk
since initial recognition, ECLs are provided for credit losses that result from default events that are possible within the next
12-months (a 12-month ECL). For those credit exposures for which there has been a significant increase in credit risk since initial
recognition, a loss allowance is required for credit losses expected over the remaining life of the exposure, irrespective of the
timing of the default (a lifetime ECL).
For trade receivables and contract assets, the Company applies a simplified approach in calculating ECLs. Therefore, the
Company does not track changes in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting
date. The Company has established a provision matrix that is based on its historical credit loss experience, adjusted for forward¬
looking factors specific to the debtors and the economic environment.
For other assets, the Company uses twelve-month ECL to provide for impairment loss where there is no significant increase in
credit risk. If there is significant increase in credit risk full lifetime ECL is used.
Trade Receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business.
They are generally due for settlement within one year and therefore are all classified as current. Where the settlement is due
after one year, they are classified as on-current. Trade receivables are recognised initially at the amount of consideration that
is unconditional unless they contain significant financing components, when they are recognised at fair value. The Company
holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently
at amortised cost using the effective interest method.
Trade receivables are disclosed in Financial Statements.
Effective interest method
The effective interest method is a method of calculating the amortised cost of a debt instrument and of allocating interest
income over the relevant year. The effective interest rate is the rate that exactly discounts estimated future cash receipts
(including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the debt instrument, or, where appropriate, a shorter year, to the
net carrying amount on initial recognition.
Income is recognised on an effective interest basis for debt instruments other than those financial assets classified as at FVTPL.
Interest income is recognised in statement of profit and loss and is included in the 'Other income' line item.
Derecognition of Financial Assets:
A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is primarily
derecognised (i.e removed from the Company's balance sheet) when:
Q The rights to receive cash flows from the asset have expired, or
Q The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the
received cash flows in full without material delay to a third party under a 'pass-through' arrangement; and either
(a) the Company has transferred substantially all the risks and rewards of the asset, or
(b) the Company has neither transferred nor retained substantially all the risks and rewards of the asset but has transferred
control of the asset.
When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement,
it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither transferred nor retained
substantially all of the risks and rewards of the asset, nor transferred control of the asset, the Company continues to recognise
the transferred asset to the extent of the Company's continuing involvement. In that case, the Company also recognises
an associated liability. The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the Company has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original
carrying amount of the asset and the maximum amount of consideration that the Company could be required to repay.
Financial Liabilities
Classification as debt or equity
Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with
the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.
Equity instruments
An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its
liabilities. Equity instruments issued by the Company are recognised at the proceeds received, net of direct issue costs.
Repurchase of the Company's own equity instruments is recognised and deducted directly in equity. No gain or loss is
recognised in profit or loss on the purchase, sale, issue or cancellation of the Company's own equity instruments.
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as appropriate.
All financial liabilities are recognised initially at fair value and, in the case of loans, inter corporate deposits and borrowings and
payables, net of directly attributable transaction costs.
The Company's financial liabilities include trade and other payables, loans and borrowings including bank overdrafts.
Subsequent measurement
For purposes of subsequent measurement, financial liabilities are classified in two categories:
Q Financial liabilities at fair value through profit or loss
Q Financial liabilities at amortised cost (loans and borrowings)
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated
upon initial recognition as at fair value through profit or loss.
Financial liabilities are classified as held for trading if they are incurred for the purpose of repurchasing in the near term.
Gains or losses on liabilities held for trading are recognised in the profit or loss.
Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the initial
date of recognition, and only if the criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses
attributable to changes in own credit risk are recognized in OCI. These gains/ losses are not subsequently transferred to P&L.
However, the Company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are
recognised in the statement of profit and loss. The Company has not designated any financial liability as at fair value through
profit or loss.
For trade and other payables maturing within one year from the Balance Sheet date, the carrying amounts approximate fair
value due to the short maturity of these instruments.
Financial liabilities at amortised cost (Borrowings)
This is the category most relevant to the Company. After initial recognition, interest-bearing loans and borrowings are
subsequently measured at amortised cost using the EIR method. Gains and losses are recognised in profit or loss when the
liabilities are derecognised as well as through the EIR amortisation process.
Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.
This category generally applies to borrowings.
Derecognition of financial liabilities
A financial liability (or a part of a financial liability) is derecognised from the Company's Balance Sheet when the obligation
specified in the contract is discharged or cancelled or expires.
When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms
of an existing liability are substantially modified, such an exchange or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The difference between the carrying amount of the financial liability
derecognised and the consideration paid and payable is recognised in profit or loss.
Offsetting of financial instruments
Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the assets
and settle the liabilities simultaneously.
o) Taxes
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the
reporting date in the countries where the Company operates and generates taxable income.
Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI
or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which
applicable tax regulations are subject to interpretation and establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and
their carrying amounts for financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable temporary differences, except:
a) When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is
not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or
loss and does not give rise to equal taxable and deductible temporary differences.
b) In respect of taxable temporary differences associated with interests in subsidiaries and joint ventures, when the timing
of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not
reverse in the foreseeable future.
Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any
unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available
against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be
utilised except:
- When the deferred tax asset relating to the deductible temporary difference arises from the initial recognition of an
asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the
accounting profit nor taxable profit or loss and does not give rise to equal taxable and deductible temporary differences.
The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each reporting date and are recognised to the extent that it has become probable that
future taxable profits will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised
or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
In assessing the recoverability of deferred tax assets, the Company relies on the same forecast assumptions used elsewhere in
the financial statements and in other management reports, which, among other things, reflect the potential impact of climate-
related development on the business, such as increased cost of production as a result of measures to reduce carbon emission.
Deferred tax relating to items recognised outside Statement of Profit and Loss is recognised outside Statement of Profit and
Loss (in other comprehensive income). Deferred tax items are recognised in correlation to the underlying transaction either in
Statement of Profit and Loss or in OCI.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against
current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.
p) Borrowing Costs
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other
borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an
entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent
regarded as an adjustment to the borrowing costs.
q) Changes in accounting policies and disclosures
(a) New and amended standards and interpretations
The Ministry of Corporate Affairs has amended the Companies (Indian Accounting Standard) Rules, 2015 via notifications
dated August 12, 2024, and September 09, 2024, to introduce the new Ind AS 117 i.e., "Insurance Contracts" and amended
the Ind AS 116 i.e. Leases, respectively. Both are effective from April 01,2024.
Ind As 117 is not applicable to the Company and the amendments in Ind AS 116 did not have any material impact on the
amounts recognized and are not expected to significantly affect the current or future periods.
(b) Standards issued but not yet effective
There are no such standards or amendment issued which are not effective as on date.
17.2 Terms/rights attached to Equity Shares
(a) The company has only one class of equity shares having at par value of H10 per share. Each holder of equity shares is
entitled to one vote per share.
(b) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of
the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity
shares held by the shareholders.
17.3 During the financial year 2023-24, the Company has allotted 40,09,900 equity shares of face value of H10 each (aggregating
H40.10 millions) at a premium of H365 per equity share (aggregating H1,463.61 millions) through private placement. The share
issue expenses of H50.48 millions have been adjusted against Security premium.
17.4 Shares allotted as Fully Paid-Up pursuant to Extraordinary General Meeting (EGM) without payment being received in cash
during the year or five years immediately preceding the date of the Balance Sheet are as under:-
During the financial year 2023-2024, the company had issued 21,69,01,800 fully paid bonus shares in the ratio of 9:1 (i.e. 9
bonus shares of H10 each against 1 equity share of H10 each to every shareholder as on March 12, 2024).
(i) Rupee Term Loans from Axis bank of H82.5 millions (March 31, 2024 : H120.00 millions) secured by a First pari-passu
hypothecation charge on the entire moveable & immovable fixed assets of the borrower, including land, plant & machinery,
equipments etc., both present & future and secured by second pari-passu hypothecation charge on the entire current
assets of the borrower, both present & future charge by way of equitable mortgage in favour of the said bank and personal
guarantee provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish
Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother
of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar
Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge Iron Pvt. Ltd.,
S. Pyarelal Ispat Pvt Ltd. are repayable in 12 equal quarterly instalments which carries rate of interest for the period/year
ended March 31,2025 at the rate of 9.75% p.a. (March 31,2024 : 9.65% p.a.).
(ii) Rupee Term Loans from SBI bank of H785.23 millions (March 31, 2024 : H451.16 millions) secured by a First pari-passu
hypothecation charge on the entire moveable & immovable fixed assets of the borrower, including land, plant &
machinery, equipments, etc., both present & future and secured by second pari-passu hypothecation charge on the entire
current assets of the borrower, both present & future charge by way of equitable mortgage in favour of the said banks and
personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director),
Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal
(Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh
Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge Iron
Pvt. Ltd., S. Pyarelal Ispat Pvt Ltd. are repayable in 27 ballooning quarterly instalments, which carries rate of interest for the
period/year ended March 31,2025 at the rate of 9.80% p.a (March 31,2024 : 9.65% p.a.).
(iii) Rupee Term Loans from YES bank of H55.45 millions (March 31, 2024 : H94.59 millions) secured by a First pari-passu
hypothecation charge on the entire moveable & immovable fixed assets of the borrower, including land, plant &
machinery, equipments, etc., both present & future and secured by second pari-passu hypothecation charge on the entire
current assets of the borrower, both present & future charge by way of equitable mortgage in favour of the said banks and
personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director),
Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal
(Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh
Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge
Iron Pvt. Ltd., S. Pyarelal Ispat Pvt Ltd. are repayable in 17 equal monthly instalments, which carries rate of interest for the
period/year ended March 31,2025 from at the rate of 9.06% p.a (March 31,2024 : 9.66% p.a.).
(iv) Rupee Term Loans from HDFC Bank of Nil (March 31, 2024 : H107.20 millions) secured by a first pari passu hypothecation
charge on the entire moveable & immovable fixed assets of the borrower, including land, plant & machinery, equipment,
etc, both present & future and secured by hypothecation charge on the entire current assets of the borrower, both present
& future and also secured by way of equitable mortgage in favour of the said banks for working capital limits and for
Term loans and personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal
(Executive Director), Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal),
Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya
Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided
by Ganpati Sponge Iron Pvt. Ltd., are repayable in Nil instalments, which carries rate of interest for the period ended March
31,2025 at Nil (March 31,2024 : 9.65% p.a.)
(v) Rupee Term Loan from HDFC Bank of H614.16 millions (March 31, 2024 : H625.31 millions) secured by a first pari passu
hypothecation charge on the entire moveable & immovable fixed assets of the borrower, including land, plant &
machinery, equipments, etc., both present & future and secured by hypothecation charge on the entire current assets
of the borrower, both present & future and also secured by way of equitable mortgage in favour of the said banks for
working capital limits and for Term loans and personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director),
Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of
Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar
Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate
guarantee provided by Ganpati Sponge Iron Pvt. Ltd. is repayable in 28 ballooning quarterly instalments, which carries rate
of interest for the period/year ended March 31,2025 at the rate 8.50% p.a. (March 31,2024 : 9.50% p.a.).
(vi) Rupee Term Loan from HDFC Bank of H148.00 millions (March 31, 2024 : H196.00 millions) secured by a first pari passu
hypothecation charge on the entire moveable & immovable fixed assets of the borrower, including land, plant &
machinery, equipments, etc., both present & future and secured by hypothecation charge on the entire current assets
of the borrower, both present & future and also secured by way of equitable mortgage in favour of the said banks for
working capital limits and for Term loans and personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director),
Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of
Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar
Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate
guarantee provided by Ganpati Sponge Iron Pvt. Ltd. is repayable in 27 ballooning monthly instalments, which carries rate
of interest for the period/year ended March 31,2025 at the rate 8.50% p.a. (March 31,2024 : 9.65% p.a.).
(vii) Rupee Term Loan from HDFC Bank of H129.60 millions (March 31, 2024 : H179.60 millions) secured by a first pari passu
hypothecation charge on the entire moveable & immovable fixed assets of the borrower, including land, plant &
machinery, equipments, etc., both present & future and secured by hypothecation charge on the entire current assets
of the borrower, both present & future and also secured by way of equitable mortgage in favour of the said banks for
working capital limits and for Term loans and personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director),
Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of
Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar
Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate
guarantee provided by Ganpati Sponge Iron Pvt. Ltd. is repayable in 8 ballooning quarterly instalments, which carries rate
of interest for the period/year ended March 31,2025 at the rate 8.50% p.a. (March 31,2024 : 9.65% p.a.).
(viii) Rupee Term Loan from HDFC Bank of H190.00 millions (March 31, 2024 : H190.00 millions) secured by a first pari passu
hypothecation charge on the entire moveable & immovable fixed assets of the borrower, including land, plant &
machinery, equipments, etc., both present & future and secured by hypothecation charge on the entire current assets
of the borrower, both present & future and also secured by way of equitable mortgage in favour of the said banks for
working capital limits and for Term loans and personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director),
Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of
Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar
Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate
guarantee provided by Ganpati Sponge Iron Pvt. Ltd. is repayable in 31 equal quarterly instalments, which carries rate of
interest for the period/year ended March 31,2025 at the rate 8.50% p.a. (March 31,2024 : 9.30% p.a.).
(ix) Rupee Term Loans from Axis bank of H550.00 millions (March 31,2024 : Nil) secured by a First pari-passu hypothecation
charge on the entire moveable & immovable fixed assets of the borrower, including land, plant & machinery, equipment,
etc, both present & future and secured by second pari-passu hypothecation charge on the entire current assets of the
borrower, both present & future charge by way of equitable mortgage in favour of the said banks and personal guarantee
provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal
(Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of
Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar
Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge Iron Pvt. Ltd.,
S. Pyarelal Ispat Pvt Ltd. are repayable in 93 equal monthly instalments respectively, which carries rate of interest for the
period ended March 31,2025 from at the rate of 9.35% p.a (March 31,2024 : Nil)
( x) Rupee Term Loans from HDFC Bank of H60.00 millions (March 31,2024 : Nil) secured by a first pari passu hypothecation
charge on the entire moveable & immovable fixed assets of the borrower, including land, plant & machinery, equipment,
etc, both present & future and secured by hypothecation charge on the entire current assets of the borrower, both present
& future and also secured by way of equitable mortgage in favour of the said banks for working capital limits and for
Term loans and personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal
(Executive Director), Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal),
Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya
Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided
by Ganpati Sponge Iron Pvt. Ltd., are repayable in 31 ballooning monthly instalments respectively, which carries rate of
interest for the period ended March 31,2025 at the rate of 8.50% p.a. (March 31,2024 : Nil).
(xi) Rupee Term Loans from Yes Bank of H500.00 millions (March 31, 2024 : Nil) secured by a First pari-passu hypothecation
charge on the entire moveable & immovable fixed assets of the borrower, including land, plant & machinery, equipment,
etc, both present & future and secured by second pari-passu hypothecation charge on the entire current assets of the
borrower, both present & future charge by way of equitable mortgage in favour of the said banks and personal guarantee
provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal
(Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of
Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar
Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge Iron Pvt. Ltd.,
S. Pyarelal Ispat Pvt Ltd. are repayable in 93 equal monthly instalments respectively, which carries rate of interest for the
period ended March 31,2025 from at the rate of 9.07% p.a (March 31,2024 : Nil).
(xii) Rupee Term Loans from Bajaj Finance Ltd of H183.33 millions (March 31,2024 : Nil) secured by a First pari-passu hypothecation
charge on the entire moveable & immovable fixed assets of the borrower, including land, plant & machinery, equipment,
etc, both present & future and secured by second pari-passu hypothecation charge on the entire current assets of the
borrower, both present & future charge by way of equitable mortgage in favour of the said banks and personal guarantee
provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal
(Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of
Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar
Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge Iron Pvt. Ltd.,
S. Pyarelal Ispat Pvt Ltd. are repayable in 66 equal monthly instalments respectively, which carries rate of interest for the
period ended March 31,2025 from at the rate of 9.50% p.a (March 31,2024 : Nil)
(xiii) Rupee Government emergency credit line Term Loan of H26.93 millions (March 31, 2024 : H56.30 millions) from HDFC
Bank, secured by second pari-passu hypothecation charge on the entire current assets of the Borrower, both present &
future and also secured by second pari-passu charge by way of equitable mortgage in favour of the said banks for working
capital limits and for Term loans on all that pieces and parcels of diverted Industrial land and personal guarantee provided
by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of
Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar
Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku
Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge Iron Pvt. Ltd. is repayable in
11 equal monthly instalments, which carries rate of interest for the period/year ended March 31, 2025 at the rate 9.25%
p.a.(March 31,2024 : 9.25% p.a.).
(xiv) Rupee Government emergency credit line Term Loan of H89.32 millions (March 31, 2024 : H119.10 millions) from HDFC
Bank, secured by second pari-passu hypothecation charge on the entire current assets of the Borrower, both present &
future and also secured by second pari-passu charge by way of equitable mortgage in favour of the said banks for working
capital limits and for Term loans on all that pieces and parcels of diverted Industrial land and personal guarantee provided
by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of
Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar
Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku
Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge Iron Pvt. Ltd. is repayable in 36
equal monthly instalments, which carries rate of interest for the period/year ended March 31,2025 at the rate 9.25% p.a.
(March 31,2024 : 9.25% p.a.).
(xv) Rupee Government emergency credit line Term Loan of H11.29 millions (March 31, 2024 : H25.91 millions) from SBI Bank,
secured by second pari-passu charge by way of equitable mortgage in favour of the said banks for GECL loans granted by
SBI on all pieces and parcels of diverted Industrial land is repayable in 11 equal monthly instalments, which carries rate of
interest for the period/year ended March 31,2025 at the rate 9.25% p.a. (March 31,2024 : 9.25% p.a.).
(xvi) Rupee Government emergency credit line Term Loan of H4.54 millions (March 31, 2024 : H9.49 millions) from YES Bank,
secured by second pari-passu charge by way of equitable mortgage in favour of the said banks for GECL loans granted by
YES bank on all pieces and parcels of diverted Industrial land is repayable in 11 equal monthly instalments, which carries
rate of interest for the period ended March 31,2025 at the rate 9.25% p.a. (March 31,2024 : 9.25% p.a.).
(xvii) Rupee Term Loans from HDFC Bank of H400.00 millions (March 31,2024 : Nil) secured by a first pari passu hypothecation
charge on the entire moveable & immovable fixed assets of the borrower, including land, plant & machinery, equipment,
etc, both present & future and secured by hypothecation charge on the entire current assets of the borrower, both present
& future and also secured by way of equitable mortgage in favour of the said banks for working capital limits and for
Term loans and personal guarantee provided by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal
(Executive Director), Mr. Ashish Goyal (Brother of Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal),
Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal), Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya
Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal) and Corporate guarantee provided
by Ganpati Sponge Iron Pvt. Ltd., are repayable in 25 equal quarterly instalments respectively, which carries rate of interest
for the period ended March 31,2025 at the rate of 8.50% p.a. (March 31,2024 : Nil).
(xviii) Vehicle loan taken by the company is secured by hypothecation of the vehicle. These loans are payable in ranges from 36
months to 60 months in monthly instalments over the loan tenure which carries interest from 7.00% p.a. to 10.51% p.a.
Notes :
(i) Bill Discounting from Kotak Mahindra Bank H451.08 millions (March 31,2024: H404.60 Million) and personal guarantee provided
by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of
Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal),
Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife
of Manoj Kumar Goyal).
(ii) Bill Discounting from Federal Bank H299.24 millions (March 31, 2024: H294.31 Million) and personal guarantee provided by
Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of Suresh
Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal),
Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of Manoj Kumar Goyal).
(iii) Working capital loans secured by a First pari-passu hypothecation charge on the entire current assets of the borrower both
present & future and secured by second pari-passu hypothecation charge on the entire moveable & immovable fixed assets
of the borrower, including land, plant & machinery, equipment, etc, both present & future in favour of said banks for working
capital granted by Axis Bank, State Bank of India, HDFC Bank, Yes Bank & Bank of Baroda and personal guarantee provided
by Mr. Vikas Kumar Goyal (Managing Director), Mr. Suresh Kumar Goyal (Executive Director), Mr. Ashish Goyal (Brother of
Suresh Kumar Goyal), Mr. Brijlal Goyal (Father of Suresh Kumar Goyal), Mr. Manoj Kumar Goyal (Brother of Suresh Kumar Goyal),
Mrs. Suman Goyal (Wife of Suresh Kumar Goyal), Mrs. Kaushlya Goyal (Mother of Suresh Kumar Goyal), Mrs. Rinku Goyal (Wife of
Manoj Kumar Goyal) and Corporate guarantee provided by Ganpati Sponge Iron Pvt. Ltd., S. Pyarelal Ispat Pvt Ltd., which carries
rate of interest at the rate ranging from 8% p.a. to 9.65% p.a.
38.3 Terms and Conditions:
1. The Company's principal related parties consist of its key managerial personnel. the Company's related party transactions
and outstanding balances are with related parties with whom the Company routinely enters into transactions in the
ordinary course of business.
2. All transactions with related parties are made on terms equivalent to those that prevail in arm's length transactions and
within the ordinary course of business.
3. Details of loan given, investments made and guarantee given covered under section 186 (4) of the companies Act 2013
The company has given unsecured loans mentioned above in the ordinary course of business for general business
purpose. Further, unsecured loan given to Subsidiary is for it's principal business activity, which is repayable after 3 years
from the date of disbursement.
The Company being in a capital intensive industry, its objective is to maintain a strong credit rating, healthy capital ratios and establish
a capital structure that would maximise the return to stakeholders through optimum mix of debt and equity. The Company's objectives
when managing capital are to safeguard continuity as a going concern, provide appropriate return to shareholders and maintain a cost
efficient capital structure.
The Company's capital requirement is mainly to fund its capacity expansion, repayment of principal and interest on its borrowings
and strategic acquisitions. The principal source of funding of the Company has been, and is expected to continue to be, cash
generated from its operations supplemented by funding from bank borrowings. The Company is not subject to any externally imposed
capital requirements.
The Company regularly considers other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and
elongate the maturity of its debt portfolio, and closely monitors its judicious allocation amongst competing capital expansion projects
and strategic acquisitions, to capture market opportunities at minimum risk. Majorly Company raise long term loan for it's CAPEX
requirement and based on the working capital requirement utilise the working capital loans.
The Company monitors its capital using gearing ratio, which is net debt, divided to total equity. Net debt includes, interest bearing loans
and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents and current investments.
The carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, other bank balances, other
financial assets and other financial liabilities (other than those specifically disclosed) are considered to be the same as their fair
values, due to their short term nature.
(ii) Fair value hierarchy
This section explains the judgements 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 Company has classified its financial
instruments into the three levels prescribed under the accounting standard which are as below:
Level 1 : This hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments that
have quoted price. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price
as at the reporting period.
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 is not based on observable market data, the instrument is included in level 3.
The company doesn't have any instrument which was value as FVTPL or FVTOCI as at March 31,2025 and March 31,2024.
(iii) Valuation technique used to determine fair value
Specific valuation techniques used to value financial instruments include:
a) the fair values of the FVTOCI investments are derived from quoted market prices in active markets.
b) the fair value of forward foreign exchange contracts and principal swap is determined using forward exchange rates at the
balance sheet date.
c) the fair values of the interest-bearing borrowings and loans are determined by using discounted cash flow method using
discount rate that reflects the issuer's borrowing rate as at the end of the reporting period. The own non-performance risk was
assessed to be insignificant.
The Company's principal financial liabilities, other than derivatives, comprise borrowings and trade payables. The main purpose of
these financial liabilities is to finance the Company's working capital requirements. The Company has various financial assets such
as trade receivable, short term deposits and cash & cash equivalents, which arise directly from its operations.
The Company is exposed to market risk, credit risk and liquidity risk. The Company's Board of Directors oversees the management of
these risks and also ensures that financial risk activities are governed by appropriate policies and procedures and that financial risks
are identified, measured and managed in accordance with the Company's policies and risk objectives.
43.1 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 risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and
commodity risk. Financial instruments affected by market risk include loans and borrowings, debt and equity investments and
derivative financial instruments. The sensitivity analyses in the following sections relate to the position as at March 31, 2025
and March 31,2024.
(i) Foreign exchange risk:
The Company's foreign exchange risk arises from foreign currency revenues and expenses, (primarily in US Dollars and
Euros). The Company's functional currency is Indian Rupees (H). The Company undertakes transactions denominated
in foreign currencies; consequently, exposure to exchange rate fluctuations arise. Volatility in exchange rates affects
the Company's revenue from export markets and the costs of imports, primarily in relation to raw materials & Capital
Purchases. The Company is exposed to exchange rate risk under its trade portfolio.
Adverse movements in the exchange rate between the Rupee and any relevant foreign currency result's in increase in the
Company's overall debt position in Rupee terms without the Company having incurred additional debt and favourable
movements in the exchange rates will conversely result in reduction in the Company's receivables in foreign currency.
The exchange rate between the Indian rupee and these foreign currencies have changed substantially in recent periods
and may continue to fluctuate substantially in the future.
Significant foreign currency risk exposure relating to trade receivables, other receivables, cash and cash equivalents,
borrowings and trade payables:
Sensitivity
The following table details the Company's sensitivity to a 1% increase and decrease in the H against the relevant foreign
currencies on profit/loss before tax. 1% is the sensitivity rate used when reporting foreign currency risk internally to
key management personnel and represents management's assessment of the reasonably possible change in foreign
exchange rates. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and
adjusts their translation at the year-end for a 1% change in foreign currency rates, with all other variables held constant.
A positive number below indicates an increase in profit or equity where H strengthens 1% against the relevant currency.
For a 1% weakening of H against the relevant currency, there would be a comparable impact on profit or equity, and the
balances below would be negative.
(ii) Commodity price risk:
The Company's revenue is exposed to the market risk of price fluctuations related to the sale of its steel products. Market
forces generally determine prices for the steel products sold by the Company. These prices may be influenced by factors
such as supply and demand, production costs (including the costs of raw material inputs) and global and regional
economic conditions and growth. Adverse changes in any of these factors may reduce the revenue that the Company
earns from the sale of its steel products.
The Company is subject to fluctuations in prices for the purchase of Iron ore & Pellet, Coal. The Company purchased
primarily all of its iron ore and coal requirements at prevailing market rates during the year ended March 31, 2025.The
Company aims to sell the products at prevailing market prices. Similarly, the Company procures key raw materials like iron
43.2 Credit Risk
Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading
to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its
financing activities, including deposits with banks and financial institutions, and other financial instruments
Receivables are deemed to be past due or impaired with reference to the Company's normal terms and conditions of business.
These terms and conditions are determined on a case to case basis with reference to the customer's credit quality and
prevailing market conditions. The Company based on past experiences and hence provision is deemed necessary on account
of expected credit loss ('ECL').
The credit quality of the Company's customers is monitored on an ongoing basis and assessed for impairment where indicators
of such impairment exist. The Company uses simplified approach (i.e. lifetime expected credit loss model) for impairment of
trade receivables/ contract assets. The solvency of the debtor and their ability to repay the receivable is considered in assessing
receivables for impairment. Where receivables have been impaired, the Company actively seeks to recover the amounts in
question and enforce compliance with credit terms. For all other financial assets, if credit risk has not increased significantly,
12-month expected credit loss is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime
expected credit loss is used.
43.3 Liquidity Risk Management:
Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial assets. The Company's approach to manage liquidity is to
have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed circumstances, without
incurring unacceptable losses or risking damage to the Company's reputation. Management manages the liquidity risk by
monitoring cash flow forecasts on a yearly basis and maturity profiles of financial assets and liabilities. This monitoring takes
into account the accessibility of cash and cash equivalents and additional undrawn financing facilities. The Company will
continue to consider various borrowings options to maximise liquidity and supplement cash requirements as necessary. The
Company's objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
cash credit facilities and buyers' credit facilities.
The following tables detail the Company's remaining contractual maturity for its financial liabilities with agreed repayment
years and its financial assets. The tables have been drawn up based on the undiscounted cash flows of financial liabilities based
on the earliest date on which the Company can be required to pay.
The tables include both interest and principal cash flows.
To the extent that interest flows are floating rate, the undiscounted amount is derived from interest rate curves at the end
of the reporting year. The contractual maturity is based on the earliest date on which the Company may be required to pay.
Employee benefit plans:
The Company sponsors funded defined benefit plans for all qualifying employees. The level of benefits provided depends on the
member's length of service and salary at retirement age.
The gratuity plan is covered by The Payment of Gratuity Act, 1972. Under the gratuity plan, the eligible employees are entitled to
post-retirement benefit at the rate of 15 days' salary for each year of service until the retirement age of 60, without any payment
ceiling. The Gratuity is unfunded.
The level of benefit provided depends on the member's length of service and salary at the time of retirement/termination age.
Risks
These plans typically expose the Company to actuarial risks such as: investment risk, interest rate risk, longevity risk and salary risk.
i) Investment risk -
The present value of the defined benefit plan liability is calculated using a discount rate determined by reference to the market
yields on government bonds denominated in H. If the actual return on plan asset is below this rate, it will create a plan deficit.
44 Employee benefit: (contd.)
ii) Interest rate 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's debt investments.
iii) 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.
iv) Salary risk -
The present value of the defined benefit 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.
No other post-retirement benefits are provided to these employees.
The most recent actuarial valuation of the plan assets and the present value of the defined benefit obligation were carried out at
March 31, 2025 by Independent, Qualified Actuary. The present value of the defined benefit obligation, and the related current
service cost and past service cost, were measured using the projected unit credit method.
Each year, the Company reviews the level of funding in gratuity fund and decides its contribution.
The Company aims to keep annual contributions relatively stable at a level such that the fund assets meets the requirements of
gratuity payments in short to medium term.
46 Other Statutory Information:-
i. No proceedings have been initiated or pending against company for holding any benami property under prohibitions of Benami
Transactions Act,1988 (earlier titled as Benami Transactions (Prohibitions) Act,1988
ii. Relationship with Struck off Companies
There are no transactions with struck-off companies. The Company has no transaction with Companies which are stuck off under
section 248 of the Companies Act,2013 or under section 560 of Companies Act,1956.
iii. No charges of satisfaction are pending for registration with the Registrar of Companies (ROC) beyond statutory period.
iv. The Company has not traded or invested in crypto Currency or virtual currency during the year
v. The company has not advanced or loaned or invested funds to any other persons or entities including the foreign entities (
intermediaries) with the understanding that the intermediary shall :
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever or on behalf of the
Company ( ultimate beneficiaries) or
b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
vi The Company has not received any funds from any persons or entities including the foreign entities ( intermediaries) with the
understanding (whether recorded in the writing or not) that the intermediary shall :
a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever or on behalf of the Funding
Party ( ultimate beneficiaries) or
b) Provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.
vii. The Company did not have any transaction which was not recorded in the books of accounts that was 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.
viii. There has been no amount which is required to be transferred to Investor Education and Protection Fund by the Company.
ix. The quarterly returns/statement of current assets filed by Company with Banks for Borrowings are in agreement with the books
of accounts.
x. The Company is not declared a wilful defaulter by any Bank or Financial Institution or any other lender.
xi. 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.
xii. The Company has not granted any loans or advances in the nature of loans to promoters, directors and KMPs, either severally or
jointly with any other person.
xiii. During the current reporting year no scheme of arrangement has been formulated by the Company/pending with
competent authority.
xiv. Title deeds of immovable properties are held in the name of Company.
xv. There are no investment properties in the company.
xvi. The Company has not revalued its Property, Plant and Equipment during the current reporting year.
xvii. The Company has not revalued its intangible assets during the year
b. Revenue from major customers: There is no customer having revenue amounting to 10% or more of Company's total revenue.
c. Non-current assets: All non-current assets of the Company are located in India.
48 Events occurring after the reporting year
i. Adjusting events : Nil
ii. Non adjusting events:
a. As per the Board of Directors Meeting held On May 21,2025, wherein a resolution was passed to divest the Company's interest
in Clean Max Opia Pvt. Ltd. ("CMOPL"). This decision was taken due to CMOPL's non-fulfilment of its obligations under Article 3
of the Energy Supply Agreement dated September 20, 2024, specifically its failure to acquire the requisite land and to obtain
Stage II connectivity approval for the project. Pursuant to the above resolution, the Company entered into a Share Purchase
Agreement on May 27, 2025, with Clean Max Enviro Energy Solutions Pvt. Ltd. ("Clean Max") and CMOPL for the sale of its entire
shareholding in CMOPL back to Clean Max. Consequently, CMOPL shall cease to be classified as an associate of the Company
with effect from May 30, 2025.
b. Subsequent to the year ended March 31, 2025, the Company has completed Initial Public Offer (""IPO"") of 6,58,64,549 equity
shares of face value of H10 each, aggregating to H5,400.00 million, comprising of fresh issue of 5,36,69,429 shares, out of which
5,34,46,115 equity shares were issued at an offer price of H82 per equity share to all the allottees and 2,23,314 equity shares
were issued at an offer price of H78 per equity share, after a discount of H4 per equity share to employees, which aggregates
to H4,400.00 million and offer for sale of 1,21,95,120 equity shares by the selling shareholders aggregating to H1,000.00 million.
Pursuant to the IPO, the equity shares of the Company were listed on the National Stock Exchange (""NSE"") and Bombay Stock
Exchange (""BSE"") on July 2, 2025.
These events arose after the balance sheet date and does not reflect conditions existing at the balance sheet date and therefore
do not impact the financial position as of the balance sheet date.
49 Audit Trail:
The Ministry of Corporate Affairs (MCA) has prescribed a requirement for companies under the proviso to Rule 3(1) of the Companies
(Accounts) Rules, 2014 inserted by Companies (Accounts) Amendment Rules, 2021 requiring companies, which uses accounting
software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of
each and every transaction, creating and edit log of each change made in the books of account along with the date when such changes
were made and ensuring that the audit trail cannot be disabled.
The Company has enabled the audit trail(edit logs) facility of the accounting software used for maintenance of all accounting records.
However, audit trail (edit logs) are enabled at application level and not at database level because enabling this facility will severely
impacts ERP performance due to direct impact on space utilisation.
Additionatly, the audit trail has been preserved by the company as per the statutory requirements for record retention.
50 Significant estimates, judgements and assumptions
The preparation of the Company's financial statements requires management to make estimates and assumptions that affect the
reported amounts of revenues, expenses, assets and liabilities, accompanying disclosures, and the disclosure of contingent liabilities.
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.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant
risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below.
The Company based its assumptions and estimates on parameters available when the separate financial statements were prepared.
Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances
arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur. "
Contingent liabilities
Contingent liabilities may arise from the ordinary course of business in relation to claims against the Company, including legal and
other claims. By their nature, contingencies will be resolved only when one or more uncertain future events occur or fail to occur. The
assessment of the existence, and potential quantum, of contingencies inherently involves the exercise of significant judgement and the
use of estimates regarding the outcome of future events.
Taxes
There are many transactions and calculations undertaken during the ordinary course of business for which the ultimate tax determination
is uncertain. Where the final tax outcome of these matters is different from the amounts initially recorded, such differences will impact
the current and deferred tax provisions in the period in which the tax determination is made. The assessment of probability involves
estimation of a number of factors including future taxable income.
Impairment of financial assets
The Company assesses impairment based on expected credit losses (ECL) model on trade receivables.
The Company uses a provision matrix to determine impairment loss allowance on the portfolio of trade receivables. The provision
matrix is based on its historically observed default rates over the expected life of the trade receivable and is adjusted for forward looking
estimates. At every reporting date, the historical observed default rates are updated and changes in the forward-looking estimates are
analysed."
Impairment of non-financial assets
The Company assesses at each reporting date whether there is an indication that an asset may be impaired. If any indication exists, or
when annual impairment testing for an asset is required, the Company estimates the asset's recoverable amount. An asset's recoverable
amount is the higher of an asset's fair value less costs of disposal and its value in use. It is determined for an individual asset, unless the
asset does not generate cash inflows that are largely independent of those from other assets or group of assets. Where the carrying
amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In
assessing value in use, the estimated future cash flows are discounted to their present value using a pre- tax discount rate that reflects
current market assessment of the time value of money and the risk specific to the asset. In determining fair value less cost of disposal,
recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used.
These calculations are corroborated by valuation multiples or other available fair value indicators.
Defined benefit plans (gratuity)
The cost of the defined benefit gratuity plan and other post-employment benefits and the present value of the gratuity obligation
are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual
developments in the future. These include the determination of the discount rate, future salary increases and mortality rates. Due to the
complexities involved in the valuation and its long-term nature, a defined benefit obligation is sensitive to changes in these assumptions.
All assumptions are reviewed at each reporting date.
The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the
management considers the interest rates of government bonds in India.
The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at
interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates
in India. Further details about gratuity obligations are given in the financials statements.
Determining the lease term of contracts with renewal and termination options - Company as lessee
The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to
extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably
certain not to be exercised.
The Company has several lease contracts that include extension and termination options. The Company applies judgement in
evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all
relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date,
the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its
ability to exercise or not to exercise the option to renew or to terminate.
Leases - Estimating the incremental borrowing rate
Where the Company cannot readily determine the interest rate implicit in the lease, it uses its incremental borrowing rate (IBR) to
measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a
similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The
IBR therefore reflects what the Company 'would have to pay, which requires estimation when no observable rates are available or when
they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such
as market interest rates) when available and is required to make certain entity-specific estimates.
Revenue recognition - Estimating variable consideration for returns and volume rebates
The Company's contracts with customers include promises to transfer goods to the customers. Judgement is required to determine
the transaction price for the contract. The transaction price could be either a fixed amount of customer consideration or variable
consideration with elements such as rebates, incentives and cash discounts etc. The estimated amount of variable consideration is
adjusted in the transaction price only to the extent that it is highly probable that a significant reversal in the amount of cumulative
revenue recognised will not occur and is reassessed at the end of each reporting period.
The amount of revenue recognised depends on whether the Company act as an agent or as a principal in an arrangement with a
customer. The Company act as a principal if the Company controls a promised goods or service before the Company transfers the goods
or service to a customer and act as an agent if the Company's performance obligation is to arrange for the provision of goods or service
by another party."
As per our report of even date attached For and on behalf of Board of Directors of Sambhv Steel Tubes Limited
For S S Kothari Mehta & Co. LLP (Formerly known as Sambhv Steel Tubes Private Limited and Sambhv Sponge Power
Private Limited)
Chartered Accountants Sd/- Sd/-
Firm Registration No. : 000756N/N500441 Suresh Kumar Goyal Vikas Kumar Goyal
Director Managing Director
DIN - 00318141 DIN - 00318182
Place: Raipur Place: Raipur
Date: July 14, 2025 Date: July 14, 2025
Sd/- Sd/- Sd/-
Vijay Kumar Anu Garg Niraj Shrivastava
Partner Chief Financial Officer Company Secretary & Compliance Officer
Membership Number: 092671 PAN: BRBPG4465Q Membership Number: F8459
Place: New Delhi Place: Raipur Place: Raipur
Date: July 14, 2025 Date: July 14, 2025 Date: July 14, 2025
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