(XIII) Provisions, Contingent liabilities and Contingent assets
(i) Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of past event,
it is probable that the Company will be required to settle the obligation, and a reliable estimate can be made of the
amount of the obligation. Provisions are not recognised for future operating losses. Provisions are not discounted to
their present value are measured at the management’s best estimate of the expenditure required to settle the present
obligation at the end of the reporting period.

(ii) Contingent liabilities and assets

Contingent liability is a possible obligation that arises from past events and the existence of which will be confirmed
only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
Company, or is a present obligation that arises from past events but is not recognised because either it is not probable
that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimate
of the amount of the obligation cannot be made. Contingent liabilities are disclosed and not recognised. In the normal
course of business, contingent liabilities may arise from litigation and other claims against the company. There are
certain obligations which management has concluded, based on all available facts and circumstances, are not probable
of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and
disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance
regarding the final outcome of the legal proceedings in which the company is involved, it is not expected that such
contingencies will have a material effect on its financial position or profitability.

(XIV) Foreign exchange gain and losses

Foreign currency transactions are translated into the functional currency using the exchange rates at the dates of the
transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation of monetary assets and liabilities denominated in foreign currencies at year end exchange rates are recognised
in profit or loss.

(XV) Cash and cash equivalents

For the purpose of presentation in the statement of cash flows, Cash and cash equivalents includes cash on hand and
short term deposits with original maturities of three months or less that are readily convertible to known amounts of
cash and which are subject to an insignificant risk of changes in value.

(XVI) Trade and other payables

These amounts represent liabilities for goods and services received by the Company prior to the end of reporting period
which are unpaid. Trade and other payables are presented as current liabilities unless payment is not due within 12
months after the reporting period. They are recognised initially at their fair value and subsequently measured at
amortised cost.

(XVII) Borrowing costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of the
cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for its intended
use. All other borrowing costs are charged to Profit and Loss account.

(XVIII) Earnings per share

Basic earnings per share are computed by dividing the profit after tax before other comprehensive income by the
weighted average number of equity shares outstanding during the financial year. Diluted earnings per share are computed
by dividing the profit after tax by the weighted average number of equity and dilutive equity equivalent shares
outstanding during the year.

XIX) Events Occurring After Balance Sheet Date

Assets and liabilities are adjusted for events occurring after balance sheet date that provide additional evidence to assist
the estimation of amounts relating to condition existing at the balance sheet date.

XX) Net Profit or Loss for the Period, Prior Period Items, and Changes in Accounting Policies

Significant items of extraordinary items, and prior period incomes and expenditures, are accounted in accordance with
Accounting Standard 5.

XXI) Accounting for Government Grants

1. Grants and subsidies from the government are recognized when there is reasonable assurance that the company
will comply with the conditions attached to them and the grant / subsidy will be received.

2. When the grant or subsidy relates to revenue, it is recognised as income on a systematic basis in the statement
of profit and loss over the periods necessary to match them with the related costs, which they are intended to
compensate. Where the grants relate to an asset, it is recognized as deferred income and released to income in
equal amounts over the expected useful life of the released asset.

3. Where the company receives non-monetary grants, the asset is accounted for on the basis of its acquisition cost.
It is a non-monetary asset is given free of cost it is recognised at nominal value.

XXII) Investments

Investments ,which are readily realizable and intended to be held for not more than one year from the date on which
such investments are made, are classified as current investments. All the other investments are classified as long term
investments.

Current investments are carried in the financial statements at lower of cost and fair value determined on an individual
investment basis. Long term investments are carried at cost. However, provision for this diminution in value is made
to recognize a decline other than temporary in the value of investment.

On disposal of an investments, the difference between its carrying amount and net disposal proceeds is charged or

credited to the statement of profit and loss

a) Cash credit facility (working capital loan) is payable on demand and effective interest rate of cash credit facility is
8.85% P.A. Working capital demand loans from bank is secured by hypothecation of movable raw material, stores and
spares, book debts and other current assets. properties, finished Goods, semi Finished Goods,

b) Term Loan Included :-

(i) Rs. 4806.51 lakhs as WCDL and Rs. 850.35 lakhs as FTNL having effectice rate of Interest of 9.15% secured by
hypothecation of movable raw material, stores and spares, book debts and other current assets. properties, finished
Goods, semi Finished Goods . Repable in 84 monthly installment start from 31/10/2023.

(ii) Rs. 1024.05 lakhs as WCTL -GECL having effective rate of Interest of Rs. 8.20% secured by hypothecation of
movable raw material, stores and spares, book debts and other current assets. properties, finished Goods, semi Finished
Goods .Repable in 48 monthly installment start from 31/01/2023.

c) The Company is defalt in repayments of the term loan from Oct 2023 . Total Prenciple repayment defalt is Rs. 339.11
Lakhs & interest defalt is Rs.246.51 lakhs as on balance sheet date.

d) Since company is under CIRP, entire long term debt shown in Current maturity

The information above has been compiled to the best of knowledge and as per the information available
with the management to the extent to which parties would be identified as Micro, Small and Medium
Enterprises and relied upon by the auditors.

Disclosures required under Section 22 the Micro, Small and Medium Enterprises Development Act, 2006:

The Company is in the process of identifying the suppliers, who would be covered under the Micro, Small and
Medium Enterprises Development Act, 2006. In this process the Company has given notice to its
vendor/suppliers to inform about whether any of them are registered under the said Act. The Company has
not yet received any information about such registration from the vendors. Since no information received
from their side, we have considered all the outstanding supplier as non MSME.

31.02. There are no amounts that are due to be transferred to the Investor Education and Protection Fund in
accordance with the relevant provisions in Companies Act 2013, and accordance with Rule 11 of the
Companies (Audit and Auditors) Rules, 2014 made there under.

31.03. Details of Benami Property held:-The company does not any Benami Property upto the end of financial
year ended 31.03.2024 and no proceeding has been initiated or pending against the company for
holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and
rules made thereunder.

31.04. Company has not been traded or invested in Crypto currency or Virtual Currency during the financial
year.

31.05. The company is having single reporting segment hence disclosure as require by the Ind-AS 108 is not
applicable.

31.06. Disclosures of Loans or Advances in the nature of loans granted to promoters, directors, KMPs and the
related parties (as defined under Companies Act 2013 is repayable on demand)

31.07. The company has not been declared as a wilful defaulter by any bank of financial institution or other
lender till the Financial Year 2023-24.

31.08. As per the information available with the management, the company has not entered into any
transactions with the companies who have been struck off under section 248 of the Companies Act
2013 or section 560 of the Companies Act, 1956.

31.09. No Undisclosed Income has been recorded in the Books of Account for Financial Year 2023-24.

31.10. 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 the number of Layers) Rules 201 7.

1. Current ratio: - reduced due to increase current maturities of short term borrowing and reduce in
current assets

2. Debt Equity ratio:- Increase due to reduction in equity (loss of the company) and increase in loans
due provision for interest

3. Debt Service Coverage Ratio/ Return on Equity / EBITDA Margin/ Net profit ratio/ Return on capital
employed is improved because company have not made provision for interest from Sep 2023 and last
year company incurred heavy loss due to bad debts written off.

4. Inventory Turnover Ratio : Due to reduction in holding period of inventory

5. Trade Receivable turnover ratio : Due to reduction in turnover

6. Net capital turnover ratio : Due to reduction of working capital

Note 34: Registration of charges or satisfaction with registrar of companies

No charges or satisfaction yet to be registered with the Registrar of the Companies beyond the statutory
period.

Note 35: Going Concern

An application was filed against M/s AANCHAL ISPAT LIMITED under Section 9 of Insolvency and Bankruptcy
Code, 2016 read with Rule 6 of the Insolvency and Bankruptcy (Application to Adjudicating Authority) Rules,
2016 before the Hon'ble NCLT Kolkata with a prayer to commence the Corporate Insolvency Resolution
Process (CIRP). The said application for initiation of Corporate Insolvency Resolution Process (CIRP) has been
admitted by Hon'ble Nation Company Law Tribunal (NCLT), Kolkata Bench, (Hon'ble NCLT/ Hon'ble
Adjudicating Authority) vide its order dated 12-09-2023 where in Mr. Sriram Mittal was appointed Interim
Resolution Professional (IRP) of the company . The committee of Creditors has appointed CA. Santanu Brahma
appointed as Resolution Professional(RP) of the company in place of Mr. Sriram Mittal and the same has been
also approved by the Hon'ble NCLT Kolkata vide order dated 17/11/2023. Currently power of the power of
the Board were suspended and such powers are now vested with RP. The NCLT order also provided for a
moratorium with effect from 12-09-2023 till the completion of the Corporate Insolvency Resolution Process
(CIRP) or untill it approves the resolution plan under section 31(1) or passes an order for liquidation of the
company under section 33, whichever is earlier. Currently, the CIRP process in respect of the company is in
process. In terms of section 20 of Insolvency code, the management and operations of the Company are
being managed by Resolution Professional (RP). The RP as on date is undertaking and will endeavour to take
all possible steps to run the company as a going concern.

Note 36:

During the Year ended, March 2024, three Prospective Resolution Applicants (PRAs) has shown their interest
for acquiring the company and deposited the EMD of Rs. 2.00 Cr. Each. The Name of PRAs are as follows:

a) Mukesh Goel (MSME promoter of Aanchal Ispat Limited)

b) M/s Agravanshi Pvt. Limited

c) M/s Shree Ramdoot Rollers Pvt. Limited.

The Resolution plans submitted by the aforesaid PRAs are pending before the Committee of Creditors
(CoC) for its approvals.

Note 37:

During the period the position of whole time company secretary were vacant in the company and such
vacancy was not yet filled by the company. Company is in the process of finding a Company Secretary &
Compliance Officer of the company but due to ongoing CIRP process suitable candidates are not turning
up and hence the process is getting delayed.

During the year the company has made 76.91 % of purchase and 77.45% of sales with its sister concern Maina
International Ltd.(formerly known as Anchal International Ltd) for optimum utilization of production capacity
at arm's length price with the approval of Committee of creditors (CoC).

Note 39:

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the
Current year's classification / disclosures