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‘ Manufacturer of Stainless Steel Strips & Coiy mu." Efi“

An ISO 9001 : 2008 Certified Company cm : L271OOGJ1990PL0014383

Read. 011.: Survey No.245-246, Village Sari, Ahmedabad - Bavla Highway, Taiuka : Sanand, Pin - 38

Ph.: +91 922800 2011/2012 | Email: [email protected] | Visit at : www.realstrips.com

RSL/19-20/140

Date: 09.09.2019

Bombay Stock Exchange Limited

Floor 25, P. J. Towers

Dalal Street,

Mumbai — 400001

Scrip Code No. 513558

Sub: 28"1 Annual Report

Dear Sir,

Pursuant to Regulation 34 of the SEBI (Listing Obligation and Disclosure Requirements)

Regulations, 2015 please find attached 28“1 Annual Report.

Kindly take the same on your record.

Thanking you,

Yours faithfully,

For Real Stri Limited

Ramchar Beriwala

Executive Director (Finance) & CFO

2 220. Dist. : Ahmedabad. Gujarat.

Scanned by CamScanner

REAL STRIPS LIMITED 28th Annual Report 2018-19

BOARD OF DIRECTORS: SHRI A. K. KATARIA CHAIRMAN

(DIN 00435496)

SHRI UGAMRAJ M. HUNDIA JOINT MANAGING DIRECTOR

(DIN 00435229)

SHRI PRAKASHRAJ. S. JAIN JOINT MANAGING DIRECTOR

(DIN 00435076)

SHRI PAWANKUMAR R. MURARKA DIRECTOR

(DIN 00123602)

SHRI AMOL DALAL INDEPENENT DIRECTOR

(DIN 00458885)

MS. ALPA ASHESH SHAH INDEPENENT DIRECTOR

(DIN 0008065503)

SHRI RAMCHARAN N. BERIWALA EXECUTIVE DIRECTOR (FINANCE) & CFO

(DIN 06821349)

BINAL DHARMESH KUMAR PATEL COMPANY SECRETARY

(PAN BFUPP0791M)

AUDITORS: M/S HITESH PRAKASH SHAH & CO.

CHARTERED ACCOUNTANTS

BANKERS: THE MEHSANA URBAN CO-OP. BANK LIMITED

AXIS BANK LIMITED

ICICI BANK LIMITED

.

REGISTERED OFFICE: SURVEY NO. 245-246,

VILLAGE: SARI, AHMEDABAD-BAVLA HIGHWAY

TAL: SANAND, DIST.: AHMEDABAD

382220, GUJARAT, INDIA.

E-Mail ID: [email protected]; [email protected]

Website: www.realstrips.com

Telephone No – +91 92280 02011, +91 92280 02012

CIN: L27100GJ1990PLC014383

WORKS: SURVEY NO.245-246,

VILLAGE: SARI

AHMEDABAD-BAVLA HIGHWAY

TALUKA: SANAND

DIST: AHMEDABAD-382220.

REGISTRAR AND SHARE

TRANSFER AGENT: M/S MCS SHARE TRANSFERAGENT LIMITED

101, SHATDAL COMPLEX

1ST

FLOOR, OPP.BATA

SHOWROOM,

ASHRAM ROAD,

AHMEDABAD-380009

CONTENTS PAGE NO.

Notice

Directors‟ Report

Management Discussion & Analysis

CEO / CFO Certificate

Auditors‟ Report ( Standalone)

Standalone Financial Statement

Auditors‟ Report ( Consolidated)

Consolidated Financial Statement

MGT-11 Form / Attendance Slip

Map of the AGM Venue

mailto:[email protected]

http://www.realstrips.com/


Page 1

NOTICE

NOTICE is hereby given that the 28th

Annual General Meeting of the members of REAL STRIPS LIMITED

will be held on Saturday the September 28, 2019 at the registered office of the company at Survey no. 245-246,

Village - Sari, Ahmedabad-Bavla Highway, Taluka – Sanand, Dist.: Ahmedabad – 382220 at 3.30 p.m. to

transact the following business:

ORDINARY BUSINESS

1. To consider and adopt the Audited Balance Sheet as on 31st March, 2019 and Statement of Profit and Loss

for the year ended on 31st March, 2019 together with Directors' and Auditors' Report thereon.

2. To appoint a Director in place of Shri Amritlal K. Kataria who retires by rotation and is eligible for

reappointment.

SPECIAL BUSINESS

3. To consider and if thought fit, to pass with or without modification(s) the following resolution as an

Ordinary Resolution

“RESOLVED THAT pursuant to the provisions of Section 148 (3) and all other applicable provisions of

the Companies Act, 2013 and the Companies (Cost Records and Audit) Rules, 2014 (including any statutory

modification(s) or re-enactment thereof, for the time being in force), M/s. N. D. Birla & Co. appointed by

the Board of Directors of the Company, to conduct the audit of the cost records of the Company for the

financial year ending 31st March, 2020, be paid the remuneration as set out in the statement annexed to the

notice convening this meeting.”

“RESOLVED FURTHER THAT the Board of Directors of the Company be and is hereby authorized to

do all acts and take all such steps as may be necessary, proper or expedient to give effect to this Resolution.”


Ordinary Resolution

“RESOLVED THAT pursuant to the provisions of Sections 149 and 152 read with Schedule IV and other

applicable provisions, if any, of the Companies Act, 2013 (“the Act”) and Rules framed thereunder and

other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and

Disclosure Requirements) Regulations, 2015 and SEBI (Listing Obligations and Disclosure Requirements)

(Amendment) Regulations, 2018 (including any statutory modification(s) and/or re-enactment(s) thereof for

the time being in force) and subject to such other laws, rules and regulations as may be applicable in this

regard, approval of the Members of the Company be and is hereby accorded to the re-appointment of

Mr.Amol Rohitbhai Dalal (DIN 00458885) as an Independent Director of the Company, not liable to retire by

rotation, for his second term of five consecutive years with effect from 17.01.2019 on the Board of the

Company.

RESOLVED FURTHER THAT the Board of Directors of the Company be and are hereby severally

authorized to do all acts, deeds and things as may be necessary or expedient to give effect to above said

resolution.”


Ordinary Resolution

“RESOLVED THAT Mr. Ramcharan Nathmal Beriwala (DIN 06821349)who was appointed as an

Additional Director of the Company by the Board of Directors with effect from 13.02.2019 and who holds

office until the date of this Annual General Meeting, in terms of Section 161 of the Companies Act, 2013

and in respect of whom the Company has received a notice in writing from a member under Section 160 of


Page 2

the Companies Act, 2013 signifying his intention to propose Mr.Ramcharan Nathmal Beriwala as a

candidate for office of a Director of the Company, be and is hereby appointed as Director of the Company.”

6. To consider and if thought fit, to pass with or without modification(s) the following resolution as an Special

Resolution

“RESOLVED THAT pursuant to the provisions of Section 196, 197, Schedule V and other applicable

provisions if any of the Companies Act, 2013 read with the Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014 (including any statutory modification(s) or re-enactment thereof, for the

time being in force), the Company hereby accords its approval to appoint Shri Ramcharan Nathmal Beriwala

as the Executive Director (Finance) & CFO of the Company for a period of Five Years w.e.f. 15th February,

2019 on an aggregate remuneration of not exceeding Rs. 15 Lacs p.a. including all perquisites. In addition

he shall be entitled such commission as may be decided by the Board from time to time subject to the limit

specified in Schedule V of the Companies Act, 2013.”

“RESOLVED FURTHER THAT in the event of any statutory amendment or modification by the Central

Government to Schedule V to the Companies Act, 2013 and Companies (Appointment and Remuneration of

Managerial Personnel) Rules, 2014, the Board of Directors be and are hereby authorized to vary and alter

the terms and of appointment including salary, commission, perquisites, allowances etc. payable to Shri

Ramcharan Nathmal Beriwala within such prescribed limit or ceiling and as agreed by and between the

Company and Shri Ramcharan Nathmal Beriwala without any further reference to the Company in General

Meeting.”

7. To consider and if thought fit, to pass with or without modification(s) the following resolution as an Special

Resolution

“RESOLVED THAT pursuant to the provisions of Sections 180 read with other applicable provisions, if

any, of the Companies Act, 2013 (“the Act”) and Rules framed thereunder and other applicable provisions

of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)

Regulations, 2015 (including any statutory modification(s) and/or re-enactment(s) thereof for the time being

in force) and subject to such other laws, rules and regulations as may be applicable in this regard, approval

of the Members of the Company be and is hereby accorded to divest entire holding of the Company in its

wholly owned subsidiary Hriday Stainless Private Limited.

“RESOLVED FURTHER THAT for the purpose of giving effect to the above resolution, the Board is

authorized on behalf of the Company to take all actions and to do all such deeds, matters and things as it

may, in its absolute discretion, deem necessary, desirable or expedient.”

By Order of the Board of Directors

Place: Ahmedabad Prakashraj S. Jain

Date: 13th

August, 2019 Joint Managing Director

DIN: 00435076

Registered Office: Survey No: 245-246, Village Sari,

Ahmedabad-Bavla Highway,

Taluka Sanand, Ahmedabad - 382220

Phone: +91 92280 02011/ +91 92280 02012

Email Id: [email protected]; [email protected]


CIN: L27100GJ1990PLC014383





Page 3

NOTES

1. A Member entitled to attend and vote at the Annual General Meeting (“Meeting/AGM”) is entitled to

appoint a proxy to attend and vote on a poll instead of himself/herself and the proxy need not be a member

of the company. A person can act as a proxy on behalf of members not exceeding 50 and holding in the

aggregate not more than 10 percent of the total share capital of the company. However, A Member holding

more than 10% of the total share capital of the company carrying voting rights may appoint a single person

as proxy and such person shall not act as proxy for any other person or member. The instrument

appointing proxy in order to be valid and effective should be lodged/ deposited with the company at its

Registered Office at least 48 (Forty Eight) hours before the commencement of the Meeting.

2. The relative Explanatory Statement, pursuant to Section 102 (2) of the Companies Act, 2013 in respect of

the special business under item No. 3 to 5 is annexed hereto.

3. Additional information pursuant to section 102 of the Companies Act, 2013, on directors recommended

for reappointment at the Annual General Meeting, is given in this notice.

4. The requirement to place the matter relating to appointment of Auditors for ratification by members at

every Annual General Meeting is done away vide notification dated May 7, 2018 issued by the Ministry of

Corporate Affairs, New Delhi. Accordingly, no resolution is proposed for ratification of appointment of

Auditors, who were appointed in the Annual General Meeting, held on September 22, 2017.

5. Mr. Amol R. Dalal and Mr. Ramcharan N. Beriwala are interested in the Ordinary Resolution set out at

Item No. 4, 5 & 6 of the Notice with regard to their appointment. Except Mr. Amol R. Dalal and Mr.

Ramcharan N. Beriwala and their relatives, none of the Directors and Key Managerial Personnel of the

Company and their respective relatives is, in any way, concerned or interested, in the Resolutions set out at

Item No. 4, 5 & 6 of this Notice.

6. The Securities and Exchange Board of India (SEBI) has mandated the submission of Permanent Account

Number (PAN) by every participant in securities market. Members holding shares in physical form can

submit their PAN details to MCS Share Transfer Agent Limited.

7. SEBI has decided that securities of listed companies can be transferred only in dematerialized form from a

cut-off date, to be notified. In view of the above and to avail various benefits of dematerialization,

members are advised to dematerialize shares held by them in physical form.

8. The Register of Beneficial Owners, Register of Members and Share Transfer Book of the Company shall

remain closed from 21st September, 2019 to 27

th September, 2019 both days inclusive.

9. Members/ proxies should bring their copy of the Annual Reports and Accounts along with Attendance Slip

(duly completed) when attending the Meeting.

10. Members who hold shares in dematerialized form are requested to write their Client – ID and DP – ID

Numbers and those who hold shares in Physical form are requested to write their Folio Number in the

Attendance Slip for attending the Meeting.

11. The Ministry of Corporate Affairs (vide circular nos. 17/2011 and 18/2011 dated April 21, 2011 and April

29, 2011 respectively) has undertaken a “Green Initiative in Corporate Governance” and allowed

companies to share documents with its shareholders through an electronic mode. A soft copy of the

Annual Report has been sent to all those shareholders who have registered their email address. Members

are requested to support this Green Initiative by registering/ updating their email address with DPs or RTA

of the Company for receiving electronic communication.


Page 4

12. Pursuant to Section 124 and 125 and other applicable provisions, if any, of the Act, all unclaimed/ unpaid

dividend and application money, remaining unclaimed/ unpaid for a period of seven years from the date

they became due for payment, have been transferred to the IEPF established by the Central Government.

No claim shall lie against the IEPF or the Company for the amounts so transferred nor shall any payment

be made in respect of such claim.

Members who have not yet en-cashed their dividend warrant(s) for the financial years 2012-13 onwards,

are requested to make their claims without any delay.

13. All documents referred to in the accompanying notice and explanatory statement is open for inspection at

the registered office of the Company on all working days, except Saturday between 11.00 a.m. to 1.00

p.m. prior to the date of AGM.

14. Members seeking any information with regard to accounts are requested to write to the Company at least

10 days before the meeting so as to enable the management to keep the information ready.

15. As per the amendment to SEBI (LODR) Regulations, 2015, all the shareholders holding shares in physical

form are hereby informed that requests for effecting transfer of shares shall not be processed by the

Registrar and Transfer Agent (MCS Share Transfer Agent Ltd) unless the shares are held in the

dematerialized form, with a depository.

16. A route map showing directions to reach the venue of the 28th

AGM is annexed.

VOTING IN ELECTRONIC FORM (E-VOTING)

17. Process and manner for members opting for voting through Electronic means:

(i). In compliance with the provisions of Section 108 of the Act read with Rule 20 of the Companies

(Management and Administration) Rules, 2014 as amended and Regulation 44 of the SEBI (Listing

Obligations and Disclosure Requirements) Regulations, 2015, the Company is pleased to offer the

facility of voting through electronic means and the business set out in the Notice above may be

transacted through such electronic voting. The facility of voting through electronic means is provided

through the e-voting platform of Central Depository Services (India) Limited (“remote e-voting”).

(ii). Members whose names are recorded in the Register of Members or in the Register of Beneficial owners

maintained by the Depositories as on the Cut-off date i.e. 21st September, 2019, shall be entitled to avail

the facility of remote e-voting as well as voting at the AGM. Any recipient of the Notice, who has no

voting rights as on the Cut-off date, shall treat this Notice as intimation only.

(iii). A person who has acquired the shares and has become a member of the Company after the dispatch of

the Notice of the AGM and prior to the Cut-off date i.e. 21st September, 2019, shall be entitled to

exercise his/her vote either electronically i.e. remote e-voting or through the Poll Paper at the AGM by

following the procedure mentioned in this part.

(iv). The remote e-voting will commence on Tuesday, September 24, 2019 at 9.00 a.m. and will end on

Friday, September 27, 2019 at 5.00 p.m. During this period, the members of the Company holding

shares either in physical form or in demat form as on the Cut-off date i.e. 21st September, 2019, may cast

their vote electronically. The members will not be able to cast their vote electronically beyond the date

and time mentioned above and the remote e-voting module shall be disabled for voting by CDSL

thereafter.

(v). Once the vote on a resolution is cast by the member, he/she shall not be allowed to change it

subsequently or cast the vote again.


Page 5

(vi). The facility for voting through Poll Paper would be made available at the AGM and the members

attending the meeting who have not already cast their votes by remote e-voting shall be able to exercise

their right at the meeting through Poll Paper. The members who have already cast their vote by remote e-

voting prior to the meeting, May also attend the Meeting, but shall not be entitled to cast their vote

again.

(vii). The voting rights of the members shall be in proportion to their share in the paid up equity share capital

of the Company as on the Cut-off date i.e. 21st September, 2019.

(viii). The Company has appointed CS Ashwin Shah, Practicing Company Secretary (Membership No. FCS:

1640; CP No: 1640), to act as the Scrutinizer for conducting the remote e-voting process as well as the

voting through Poll Paper at the AGM, in a fair and transparent manner.

(ix). The procedure and instructions for remote e-voting are, as follows:

I. The voting period begins on Tuesday, September 24, 2019 at 09.00 AM and ends on Friday, September

27, 2019 at 05.00 PM. During this period shareholders‟ of the Company, holding shares either in

physical form or in dematerialized form, as on the cut-off date (record date) of 21st September, 2019

may cast their vote electronically. The e-voting module shall be disabled by CDSL for voting thereafter.

II. The shareholders should log on to the e-voting website www.evotingindia.com.

III. Click on Shareholders.

IV. Now Enter your User ID

a. For CDSL: 16 digits beneficiary ID,

b. For NSDL: 8 Character DP ID followed by 8 Digits Client ID,

c. Members holding shares in Physical Form should enter Folio Number registered with the Company.

V. Next enter the Image Verification as displayed and Click on Login.

VI. If you are holding shares in demat form and had logged on to www.evotingindia.com and voted on an

earlier voting of any company, then your existing password is to be used.

VII. If you are a first time user follow the steps given below:

For Members holding shares in Demat Form and Physical Form

PAN Enter your 10 digit alpha-numeric PAN issued by Income Tax Department (Applicable

for both demat shareholders as well as physical shareholders)

Members who have not updated their PAN with the Company/Depository

Participant are requested to use the sequence number which is printed on Postal

Ballot/ Attendance Slip indicated in the PAN Field.

Dividend Bank

Details

OR Date of Birth

(DOB)

Enter the Dividend Bank Details or Date of Birth (in dd/mm/yyyy format) as recorded

in your demat account or in the company records in order to login.

If both the details are not recorded with the depository or company please enter the

member id / folio number in the Dividend Bank details field as mentioned in

instruction (iv).

http://www.evotingindia.com/



Page 6

VIII. After entering these details appropriately, click on “SUBMIT” tab.

IX. Members holding shares in physical form will then directly reach the Company selection screen.

However, members holding shares in demat form will now reach „Password Creation‟ menu wherein

they are required to mandatorily enter their login password in the new password field. Kindly note that

this password is to be also used by the demat holders for voting for resolutions of any other company

on which they are eligible to vote, provided that company opts for e-voting through CDSL platform. It

is strongly recommended not to share your password with any other person and take utmost care to

keep your password confidential.

X. For Members holding shares in physical form, the details can be used only for e-voting on the

resolutions contained in this Notice.

XI. Click on the EVSN for Real Strips Limited on which you choose to vote.

XII. On the voting page, you will see “RESOLUTION DESCRIPTION” and against the same the option

“YES/NO” for voting. Select the option YES or NO as desired. The option YES implies that you

assent to the Resolution and option NO implies that you dissent to the Resolution.

XIII. Click on the “RESOLUTIONS FILE LINK” if you wish to view the entire Resolution details.

XIV. After selecting the resolution you have decided to vote on, click on “SUBMIT”. A confirmation box

will be displayed. If you wish to confirm your vote, click on “OK”, else to change your vote, click on

“CANCEL” and accordingly modify your vote.

XV. Once you “CONFIRM” your vote on the resolution, you will not be allowed to modify your vote.

XVI. You can also take a print of the votes cast by clicking on “Click here to print” option on the Voting

page.

XVII. If a demat account holder has forgotten the login password then Enter the User ID and the image

verification code and click on Forgot Password & enter the details as prompted by the system.

XVIII. Shareholders can also use Mobile app - “m - Voting” for e voting. m - Voting app is available on

Apple, Android and Windows based Mobile. Shareholders may log in to m - Voting using their e

voting credentials to vote for the company resolution(s).

XIX. Note for Non – Individual Shareholders and Custodians

a. Non-Individual shareholders (i.e. other than Individuals, HUF, NRI etc.) and Custodian are required to

log on to www.evotingindia.com and register themselves as Corporates.

b. A scanned copy of the Registration Form bearing the stamp and sign of the entity should be emailed to

[email protected].

c. After receiving the login details, user would be able to link the account(s) for which they wish to vote

on.

d. The list of accounts linked in the login should be mailed to [email protected] and on

approval of the accounts they would be able to cast their vote.

e. A scanned copy of the Board Resolution and Power of Attorney (POA) which they have issued in

favor of the Custodian, if any, should be uploaded in PDF format in the system for the scrutinizer to

verify the same.





Page 7

XX. In case you have any queries or issues regarding e-voting, you may refer the Frequently Asked

Questions (“FAQs”) and e-voting manual available at www.evotingindia.com, under help section or

write an email to [email protected].

(x). The results declared along with the Scrutinizer's Report shall be placed on the Company's website

www.realstrips.com and on the website of CDSL i.e.www.cdslindia.comwithin three days of the passing

of the Resolutions at the 28th

Annual General Meeting of the Company and shall also be communicated

to the Stock Exchanges where the shares of the Company are listed.



Date: 13th


DIN: 00435076



Taluka Sanand, Ahmedabad - 382220

Phone: +91 92280 02011/ +91 92280 02012



CIN: L27100GJ1990PLC014383




http://www.cdslindia.com/





Page 8

ANNEXURE TO NOTICE

Explanatory Statement Pursuant to Section 102 (1) of the Companies Act, 2013

Item No. 3:

The Board, on the recommendation of the Audit Committee, has approved the appointment and remuneration of

M/s N.D Birla & Co., Cost Accountants as the Cost Auditors of the Company to conduct the audit of the cost

records of the Company for the financial year 2019-20, at a fee of Rs. 50,000/- plus applicable taxes and

reimbursement of out of pocket expenses, as remuneration for cost audit services for the FY 2019-20.

In accordance with the provisions of Section 148 of the Companies Act, 2013 read with the Companies (Audit

and Auditors) Rules, 2014, the remuneration payable to the Cost Auditors has to be ratified by the shareholders

of the Company.

Accordingly, consent of the members is sought for passing an Ordinary Resolution as set out at Item No. 5 of

the Notice for ratification of the remuneration payable to the Cost Auditors for the financial year ending 31st

March, 2020.

The Board of Directors recommends the above resolution for your approval.

None of the Directors, Key Managerial Persons and their relatives is interested in above resolution.

Item No. 4:

The Board of Directors of the Company had appointed Mr. Amol R. Dalal as an Additional Director of the

Company with effect from 17th

January, 2019. In accordance with the provisions of Section 161 of Companies

Act, 2013, Mr. Amol R. Dalal shall hold office up to the date of the forthcoming Annual General Meeting and is

eligible to be appointed as an Independent Director for a term up to five years. The Company has received a

notice in writing from a member under Section 160 of the Companies Act, 2013 signifying his intention to

propose Mr. Amol R. Dalal as a candidate for office of a Independent Director of the Company.

The Company has received a declaration of independence from Mr. Amol R. Dalal. In the opinion of the Board,

Mr. Amol R. Dalal fulfills the conditions specified in the Companies Act, 2013 and the SEBI Listing

Regulations for appointment as an Independent Director of the Company. A copy of the draft Letter of

Appointment for Independent Directors, setting out terms and conditions of appointment of Independent

Directors is available for inspection at the Registered Office of the Company during business hours on any

working day and is also available on the website of the Company www.realstrips.com.

None of the Directors or Key Managerial Personnel and their relatives, except Mr. Amol R. Dalal, is concerned

or interested in this Resolution.

The Board recommends the Resolution set out at Item no. 4 for approval of the Members.

Brief resume and other details of the Independent Directors whose appointment is proposed are provided in the

annexure to the Explanatory Statement attached herewith.



Page 9

Item No. 5 & 6:

Shri Ramcharan Nathmal Beriwala has been with the Company for the past 19 years and he has been looking

after Finance, Accounts, Taxation, Commercial & General Administration etc. He was liaisoning with the bank

during the several financial difficulties of the Company. Mr.Ramcharan Nathmal Beriwala has over 38 years

experience with the Companies. The Board of Directors of the Company had appointed Mr. Ramcharan

Nathmal Beriwala as an Additional Director of the Company with effect from 13th

February, 2019. In accordance

with the provisions of Section 161 of Companies Act, 2013, Mr.Ramcharan Nathmal Beriwala shall hold office

up to the date of the forthcoming Annual General Meeting and is eligible to be appointed as Director. The

Company has received a notice in writing from a member under Section 160 of the Companies Act, 2013

signifying his intention to propose Mr. Ramcharan Nathmal Beriwalaas a candidate for office of a Director of

the Company.

Mr Ramcharan Nathmal Beriwala has been appointed as Executive Director (Finance) and CFO w.e.f from 15th

February 2019.

None of the Directors or Key Managerial Personnel and their relatives, except Mr. Ramcharan Nathmal

Beriwala, is concerned or interested in this Resolution.

The Board recommends the Resolution set out at Item no. 5& 6 for approval of the Members.

Brief resume and other details of the Independent Directors whose appointment is proposed are provided in the

annexure to the Explanatory Statement attached herewith.

Details of Directors seeking re-appointment as per Item No. 2, 4, 5 &6 of the Ordinary and Special Businesses in ensuing

Annual General Meeting to be held on 28th

September, 2019 are as under:

Name Date of

Birth

Date of

Appointment Qualification

Nature of

Expertise

Directorships held in

other companies

Membership/Chairmanships of committees of other

companies (Includes only Audit committee and

Shareholder/Investor Grievance Committee) No. of Shares held in

the Company (Real

Strips Limited) Name of

company Committee Position

Shri

Amritlal K.

Kataria

15/06/1942 19/09/1990 Graduate in

Metallurgy

Technical

and

Administration

N/A N/A N/A N/A 280900

Shri Amol

R. Dalal 13/04/1956 17/01/2019 B.Com Commercial

1.Aarvee Denims and

Export Ltd.

2. Aye ess Spinning

Mills Private Limited

Aarvee

Denims

and

Export

Ltd.

Audit Committee

Shareholder/ Investor

Grievance Committee

Member

Chairman

7405

Shri

Ramcharan

Nathmal

Beriwala

25/03/1960 13/02/2019 B.Com

Finance,

Accounts,

Taxation,

Commercial

and General

Administration

1. Leading Leasing

Finance And

Investment Company

Ltd.

2.Ashtvinayak Metals

Private Limited

NA NA NA 5500



Date: 13th


DIN: 00435076



TalukaSanand, Ahmedabad - 382220

Phone: +91 92280 02011/ +91 92280 02012



CIN: L27100GJ1990PLC014383





Page 10

DIRECTOR‟S REPORT

To

The Members

Your Directors have pleasure in presenting the 28th

Annual Report together with the Audited Financial

Statements of the company for the year ended 31st March 2019.

1. FINANCIAL HIGHLIGHTS

Particulars 2018-2019

(Rs. In Lacs)

2017-2018

(Rs. In Lacs)

Income for the Year 13285.90 13609.27

Profit before interest, depreciation and tax

(PBIDT) 2299.64 (4655.51)

Less:

Financial Expenses 702.40 19.26

Depreciation 393.87 393.56

Profit / (Loss) before tax 1203.37 (5068.33)

Provision for taxation

Current Income Tax, Wealth Tax, Deferred Tax (460.89) 0.00

Profit / (Loss) after tax 1664.26 (5068.33)

Add / (Less): Prior Period / Extra Ordinary Items

Adjustment 2555.61 2.07

Profit / (Loss) available for appropriation 4219.87 (5066.26)

The Company has an adequate Internal Financial Control System, commensurate with the size, scale and

complexity of its operations.

2. Dividend

The directors do not recommend dividend for the current year.

3. Industrial Relation

Industrial relations remained cordial throughout the year. Your Directors place on record their deep

appreciation of the contribution made by the employees at all levels. Measures have been taken for

Human Resources Development.

4. Performance/ Statement of Company‟s Affairs

During the year under review company had turned in the profit after four years. The reason for dismal

performance of the steel industry in the country in general and the company in particular for the past few years

was solely due to the cheap material imported form Chine. Due to the persistent representation to the

Government, anti dumping duty was imposed on the Chinese material. Hence, the domestic manufacturers got a

lend playing field.

During the first four months of the current fiscal, Company is maintain its positive performance.


Page 11

5. Corporate Social Responsibility

Section 135 of the Companies Act, 2013 and framed Rules thereunder provides that certain Companies

are require to spend 2% of its average net profit during 3 preceding years on CSR activities. It also

provides formation of CSR committee of the Board. The Rules prescribe the activities qualify under

CSR and the manner of spending the amount.

The company is not covered under section 135 of the companies Act 2013 and the Rules framed

thereunder for the financial year under report. CSR Committee of the Board will be constituted at the

time of applicability, of section 135 of the Act. Hence CSR report is no required to be annexed.

6. Disclosure under Companies Act 2013

(i) Share Capital

The paid up equity capital as on March 31, 2019 was Rs. 598 Lakh. During the year under review,

The Company has not issued shares with differential voting rights nor granted stock options nor

sweat equity nor bonus share.

(ii) Board Meetings

A calendar of Meetings is prepared and circulated in advance to the Directors.

During the year 8(Eight) Board Meetings were convened and held. The intervening gap between the

Meetings was within the period prescribed under the Companies Act, 2013.

SR. NO. DATE SR. NO. DATE

1 May 14, 2018 5 November 14, 2018

2 May30, 2018 6 January17, 2019

3 July03, 2018 7 February 13, 2019

4 August 14, 2018 8 March26, 2019

(iii) Independent Directors‟ Meeting

The Independent Director met on 26.03.2019, without attendance of Non-Independent Directors and

members of the Management. The Directors reviewed performance of the Non-Independent

Directors and the Board as whole; the performance of the chairman of the company, taking into

account the views of Executive Directors and Non-Executive Directors and assessed the quality,

quantity and timeliness of flow of information between the Company Management and the Board

that is necessary for the Board to effectively and reasonably perform their duties.

(iv) Audit Committee Meeting

During the year under review, Audit Committee met 5 (Five) times on May 30, 2018, July 03, 2018,

August 14, 2018, November 14, 2018 and February 13, 2019. The intervening gap between two

meetings did not exceed four months.


Page 12

Name Category No. of Meetings during the year

Held Attended

Chetan Rohitbhai Dalal* Independent Director 4 4

Amol Rohitbhai Dalal** Independent Director 1 1

Prakashraj Sheshmalji Jain Joint Managing Director 5 5

Pawankumar Ridhkaran Murarka Independent Director 5 5

* Chetan Rohitbhai Dalal was appointed as Independent Director w.e.f 14.05.2018. On 18.11.2018

he ceased to be a Director of the Company due to his sad demise.

Shri Amol Rohitbhai Dalalwas appointed as Director of the Company w.e.f. 17.01.2019.

The Chief Financial Officer and representatives of Statutory Auditors are invited to the meetings of

the Audit Committee.

The Committee discharges such duties and functions generally indicated in Section 177 of the

Companies Act, 2013 and such other functions as may be specifically delegated to the Committee

by the Board from time to time.

(v) Nomination & Remuneration Committee

During the year under review Nomination & Remuneration Committee met 5 (Five) times on May

14, 2018, July 03, 2018, January 17, 2019, February 13, 2018, and March 23, 2019.

The composition of the Nomination & Remuneration Committee and details of meetings attended by

the members are given below:

Name Category No. of Meetings during the year

Held Attended



Amritlal Kisandas Kataria Director 5 5


* Shri Chetan Rohitbhai Dalal was appointed as Independent Director w.e.f 14.05.2018. On

18.11.2018 he ceased to be a Director of the Company due to his sad demise.

** Shri Amol Rohitbhai Dalal was ceased to be a director w.e.f 14.05.2018 and reappointed as

Director of the Company w.e.f. 17.01.2019

(vi) Stakeholders Grievance Committee

During the year under review Stakeholders Grievance Committee met 4 (Four) times on May 30,

2018, August 14, 2018, November 14, 2018 and February 13, 2019.

The composition of the Stakeholders Grievance Committee and details of meetings attended by the

members are given below:


Page 13

Name Category

No. of Meetings during

the year

Held Attended




Prakashraj Sheshmalji Jain Joint Managing Director 4 4

.

* Chetan Rohitbhai Dalal was appointed as Independent Director w.e.f 14.05.2018. On 18.11.2018 he

ceased to be a Director of the Company due to his sad demise.

**Shri Amol Rohitbhai Dalal was appointed as Director of the Company w.e.f. 17.01.2019.

(vii) Statement on declaration given by independent director

All independent directors have given declarations that they meet the criteria of independence as laid

down under section 149 (6) of the Companies Act, 2013 and the applicable regulations of SEBI

(Listing Obligations and Disclosure Requirements) Regulations, 2015.

(viii) Particulars of loans, guarantees or investments:

The company has neither given any loans or guarantees nor made investments covered under the

provisions of section 186 of the Companies Act, 2013.

7. Risk management

The Company has a Risk Management Committee to identify, assess, monitor and mitigate various risks

to key business objectives. Major risks identified are systematically addressed through mitigating actions

on a continuing basis. These are discussed at the meetings of the Audit Committee and the Board of

Directors of the Company.

8. Internal Control System

The Company has an Internal Control System, commensurate with the size, scale and complexity of its

operations. The scope and authority of the Internal Audit function is defined in the Internal Audit

Manual. To maintain its objectivity and independence, the Internal Audit function reports to the

Chairman of the Audit Committee of the Board & to the Chairman & Managing Director.

The Internal Audit Department monitors and evaluates the efficacy and adequacy of internal control

system and Internal Financial control in the Company, its compliance with operating systems,

accounting procedures and policies at all locations of the Company. Based on the report of internal audit

function, process owners undertake corrective action in their respective areas and thereby strengthen the

controls. Significant audit observations and recommendations along with corrective actions thereon are

presented to the Audit Committee of the Board.


Page 14

9. Vigil Mechanism/ Whistle Blower Policy

The Company has a vigil mechanism named Fraud and Risk Management Policy to deal with instance of

fraud and mismanagement, if any.

In staying true to our values of Strength, Performance and Passion and in line with our vision of being

one of the most respected companies in India, the Company is committed to the high standards of

Corporate Governance and stakeholder responsibility.

10. Director and key managerial personnel

(i) Appointment

(a) Mr. Chetan Rohitbhai Dalal was appointed as the Director of the Company w.e.f 14.05.2018.

(b) Ms Priya Dipak Agrawal was appointed as Company Secretary of the company w.e.f.01.07.2018

(c) Mr. Amol Rohitbhai Dalal has been re-appointed as an Independent Director of the Company with

effect from 17.01.2019

(d) Mr. Ramcharan Nathmal Beriwala was appointed as Executive Director (Finance) & CFO of the

Company with effect from 15.02.2019.

(ii) Cessation

(a) Ms Priya Dipak Agrawal, Company Secretary of the company resigned w.e.f.17.01.2019. The Board

placed on record its appreciation for the valuable services rendered by Priya Dipak Agrawal.

(b) Mr.Amol Rohitbhai Dalal, Independent Director of the company resigned from the board w.e.f.

14.05.2018. The Board placed on record its appreciation for the valuable services rendered by

Mr.Amol Rohitbhai Dalal.

(c) Mr. Chetan Rohitbhai Dalal,was ceased to be the director w.e.f from 18.11.2018 due to his sad

demise.

(iii) Retirement by rotation

Shri Amritlal K. Kataria retire by rotation and, being eligible, offer themselves for re-appointment.

The Directors recommend Shri Amritlal K. Kataria for re-appointment.

(iv) Appointment of Independent Director

Independent Directors were appointed as per the requirements of section 149 of the Companies Act,

2013. Details of appointment of Independent Directors are as follows:

Sr. No. Name of Director Date of Appointment Term

1 Alpa Ashesh Shah 13/02/2018 5 Years

2 Pawankumar Ridhkaran Murarka 23/09/2014 5 Years

3 Amol Rohitbhai Dalal 17/01/2019 5 Years


Page 15

(v) Evaluation of Board Performance

Pursuant to the provisions of the Companies Act, 2013 and applicable regulations of SEBI (Listing

Obligations and Disclosures) Regulations, 2015, the Board has carried out an evaluation of its own

performance, the directors individually as well as the evaluation of the working of its Audit,

Nomination& Remuneration Committees.

(vi) Remuneration Policy

• Remuneration to Non-Executive Directors

At present the Company does not have the policy of payment of remuneration to non-executive

directors except by way of sitting fees for attending the meeting of the Board or a committee thereof.

• Remuneration to Executive Directors

The Company has credible and transparent policy in determining and accounting for the

remuneration of Executive Directors. Their remuneration is governed by external competitive

environment, track record, potential, individual performance and performance of the Company as

well as Industrial Standards. The remuneration determined for the Executive Directors is subject to

the approval of Remuneration Committee of the Board of Directors.

As a gesture of their commitment to the company Managing Director and other Executive Directors

have forgone their remuneration from October 2014 till such time the performance of the Company

improves and is in a position to pay remuneration to the Executive Directors.

11. Director responsibility Statement

In terms of Section 134 (5) of the Companies Act, 2013, the directors, to the best of their knowledge and

ability state that:

In the preparation of the annual accounts, the applicable accounting standards have been followed.

The directors have selected such accounting policies and applied them consistently and made

judgments and estimates that were reasonable and prudent so as to give a true and fair view of the

state of affairs of the Company at the end of the financial year and of the profit or loss of the

Company for the year under review.

The directors have taken proper and sufficient care for the maintenance of adequate accounting

records in accordance with the provisions of this Act for safeguarding the assets of the Company and

for preventing and detecting fraud and other irregularities.

The directors have prepared the annual accounts on a going concern basis.

The directors had laid down internal financial controls to be followed by the company and that such

internal financial controls are adequate and were operating effectively.

The directors had devised proper system to ensure compliance with the provisions of all applicable

laws and that such system were adequate and operating effectively.

12. Public Deposit

Your Company has not accepted any deposits from public within the meaning of Section 73 of the

Companies Act, 2013 and the Companies (Acceptance of Deposits) Rules, 2014 as amended from time

to time. Further details of money as on the end of financial year, not considered as deposits is given

elsewhere in this Annual Report.


Page 16

13. Related Party Transaction

No related party transactions that were entered into during the financial year. There are no materially

significant related party transactions made by the company with Promoters, Key Managerial Personnel

or other designated persons which may have potential conflict with interest of the company at large.

Accordingly the disclosure of related party transaction as require under Section 134(3)(h) of the

Companies Act, 2013 in form AOC-2 is not applicable.

14. Significant material orders passed by the Regulators/ Courts.

There are no significant material orders passed by the Regulators/ Courts which would impact the going

concern status of the Company and its future operations.

15. Subsidiary Company

The Company has incorporated one subsidiary company named Hriday Stainless Private Limited on

17.07.2017. A statement containing brief financial details of the subsidiaries is included in the Annual

Report.

As required under the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, a

consolidated financial statement of the Company and its subsidiary is attached. The consolidated

financial statements have been prepared in accordance with the relevant accounting standards as

prescribed under Section 129 (3) of the Act. These financial statements disclose the assets, liabilities,

income, expenses and other details of the Company and its subsidiary.

Pursuant to the provisions of Section 129, 134 and 136 of the Companies Act, 2013 read with rules

framed thereunder and pursuant to Clause 33 (3) of the SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015, your Company had prepared consolidated financial statements of the

company and its subsidiaries and a separate statement containing the salient features of financial

statement of subsidiaries, joint ventures and associates in Form AOC-1 forms part of the Annual Report

as Annexure “A”

16. Auditors

(i) Statutory Auditor

M/s. Hitesh Prakash Shah & Co., (Firm Registration No. 127614W), Chartered Accountants was

appointed as Statutory Auditors of your Company at the Annual General Meeting held on 22nd

September, 2017 for a term of 5 (Five) consecutive years.

The report given by the auditors on the financial statements of the company is part of Annual Report.

There has been no qualification, reservation, adverse remark of disclaimer given by the Auditor in their

Report.

(ii) Secretarial Auditor

Pursuant to provisions of section 204 of the Companies Act, 2013 and The Companies (Appointment

and Remuneration of Managerial Personnel) Rules, 2014 the company has appointed Shri Ashwin Shah,

a company Secretaries in practice to undertake the Secretarial Audit of the Company. The Secretarial

Audit report is annexed herewith as “Annexure B”.

There has been no qualification, reservation, adverse remark or disclaimer given by the Secretarial

Auditor in their Report.


Page 17

(iii) Cost Auditor

M/s N. D. Birla & Co., Cost Accountants as the Cost Auditors of the Company to conduct the audit of

the cost records of the Company for the financial year 2019-20.

17. Extract of Annual Return

The details forming part of the extract of the Annual Return in form MGT-9 is annexed herewith as

“Annexure-C”.

18. Prevention of Insider Trading

The Company has adopted a Code of Conduct for Prevention of Insider Trading with a view to regulate

trading in securities by the Directors and designated employees of the Company. The Code requires pre-

clearance for dealing in the Company‟s shares and prohibits the purchase or sale of Company shares by

the Directors and the designated employees while in possession of unpublished price sensitive

information in relation to the Company and during the period when the Trading Window is closed. The

Board is responsible for implementation of the Code.

19. Transfer to Investor education and protection fund

The Company has been transfer Rs. 83195/- (Rupees Eighty Three thousand one Hundred Ninety five

Only) in the financial year 2018-19 to the investor education and protection fund established by the

Central Government, in Compliance with Section 125 of the Companies Act, 2013 for the unpaid

dividend of the year 2010-11.

20. Energy conservation, technology absorption, foreign exchange earnings and outgo.

As required under section 134 (3) (m) of the Companies Act, 2013 and the rules made therein, the

concerned particulars related to Energy Conservation, Technology Absorption, Foreign Exchange

Earnings and Outgo are given, in “Annexure-D”, which is attached here to and forms part of the

Director‟s Report.

21. Corporate Governance & Management Discussion and Analysis Report

Corporate Governance as stipulated in regulation 15 of SEBI (Listing Obligations and Disclosure

Requirements) Regulations, 2015 is not mandatory, for time being, in respect of Companies having paid

up equity share capital not exceeding is Rs. 10 Crore and net worth not exceeding Rs. 25 Crore as on

31st March, 2019. In view of this the Company is not required to give Corporate Governance Report.

Management Discussion and Analysis Report forms part of this report and it is enclosed as “Annexure-

E”.

22. Particulars of employees

The information required pursuant to Section 197 read with rule 5 of the Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014 in respect of employees of the Company, will be

provided upon request. In terms of Section 136 of the Act, the reports and accounts are being sent to the

members and others entitled thereto, excluding the information on employees‟ particulars which is

available for inspection by the members at the Registered office of the company during business hours

on working days of the company up to the date of ensuing Annual General Meeting. If any member is

interested in inspecting the same, such member may write to the company secretary in advance.


Page 18

23. Prevention of Sexual Harassment at Workplace

As per the requirement of The Sexual Harassment of Women at Workplace (Prevention, Prohibition

&Redressal) Act, 2013 and rules made thereunder, your Company has constituted Internal Complaints

Committee (ICC) which is responsible for redressal of complaints related to sexual harassment. During

the year under review, there were no complaints pertaining to sexual harassment.

24. Acknowledgement

The directors extend their sincere thanks to the Bankers, Financial Institutions, Central Government and

State Government Authorities and all associated with the company for the co-operation. The directors

also place on record the efforts made by the employees, workers and all other associated with the

company for making their organization successful.


Place: Ahmedabad Prakashraj S. Jain Ugamraj M. Hundia

Date: 13th

August, 2019 Joint Managing Director Joint Managing Director

DIN: 00435076 DIN: 00435229


Page 19

ANNEXURE A

Form No. AOC – 1

Salient features of the financial statement of Subsidiaries as per Companies Act, 2013

PART "A": Subsidiaries

Sl.

No.

Name of

the

subsidiary

Reporting

period for the

subsidiary

Re

por

ting

cur

ren

cy

Share

capital

Reserves

& surplus Total assets

Total

Liabilities

In

ve

st

m

en

ts

Turnover

Profit

before

taxation

Provision

for

taxation

Profit after

taxation

P

r

o

p

o

s

e

d

D

iv

id

e

n

d

% of

sharehold

ing

1

Hriday

Stainless

Private

Limited

01/04/2018

to

31/03/2019

I

N

R

100,000 1014456 26793031 25678575 0 401839662 595893 124018 471875 0 99.99%


Page 20

“ANNEXURE B”

SECRETARIAL AUDIT REPORT FORM NO. MR-3

FOR THE FINANCIAL YEAR ENDED 31st March, 2019

[Pursuant to Section 204 (1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment and

Remuneration of Managerial Personnel) Rules, 2014]

To

The Members

Real Strips Limited

I have conducted the secretarial audit of the compliance of applicable statutory provisions and the adherence to

good corporate practices by Real Strips Limited (hereinafter called „the company‟). Secretarial Audit was

conducted in a manner that provided me a reasonable basis for evaluating the corporate conducts/ statutory

compliances and expressing my opinion thereon.

Based on my verification of books, papers, minute books, forms and returns filed and other records maintained

by the company and also the information provided by the Company, its officers, agents and authorized

representatives during the conduct of secretarial audit, we hereby report that in our opinion, the company has,

during the audit period covering the financial year ended on 31st March, 2019 complied with the statutory

provisions listed hereunder and also that the Company has proper Board-processes and compliance-mechanism

in place to the extent, in the manner and subject to the reporting made hereinafter:

I have examined the books, papers, minute books, forms and returns filed and other records maintained by the

Company for the financial year ended on 31st March, 2019 according to the provisions of:

i. The Companies Act, 2013 (the Act) and the rules made thereunder;

ii. The Securities Contracts (Regulation) Act, 1956 („SCRA‟) and the rules made thereunder;

iii. The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;

iv. Foreign Exchange Management Act, 1999 and the rules and regulations made thereunder to the extent of

Foreign Direct Investment, Overseas Direct Investment and External Commercial Borrowings

v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India

Act, 1992 („SEBI Act‟):-

a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers)

Regulations, 2011;

b. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;

vi. As per the explanations and clarifications given to us and the representation made by the management,

during the period under review there are no specific laws applicable to company

I have also examined compliance with the applicable clauses of the following:

i. Secretarial Standards issued by The Institute of Company Secretaries of India.

ii. The Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements)

Regulations, 2015.


Page 21

During the period under review and as per the explanations and clarification given to us and the representation

made by the company, the company has generally complied with the provisions of the Act, Rules, Regulations,

Guidelines, Standards, etc. mentioned above subject to filing of certain e-forms with additional fees.

The company was not required to comply with the provision of other regulation listed in the Form No. MR-3

prescribed under the companies Rules, 2014 as there were no instance/ events falling within the purview of

these regulations during the financial year 2018-19.

I further report that

The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-

Executive Directors and Independent Directors. The changes in the composition of the Board of Directors that

took place during the period under review were carried out in compliance with the provisions of the Act.

Adequate notice is given to all directors to schedule the Board Meetings, agenda and detailed notes on agenda

were sent at least seven days in advance, and a system exists for seeking and obtaining further information and

clarifications on the agenda items before the meeting and for meaningful participation at the meeting.

Decisions at the Board Meetings, as represented by the management, were taken unanimously.

I further report that there are adequate systems and processes in the company commensurate with the size and

operations of the company to monitor and ensure compliance with applicable laws, rules, regulations and

guidelines.

Place: Ahmedabad CS Ashwin Shah

Date: 13th

August, 2019 Company Secretary

C. P. No. 1640

Note: This report is to be read with our letter of even date which is annexed as „ANNEXURE 1‟ and forms an

integral part of this report.


Page 22

„ANNEXURE 1‟

To

The Members

Real Strips Limited

Our report of even date is to be read along with this letter.

1. Maintenance of secretarial record is the responsibility of the management of the company. Our

responsibility is to express an opinion on these secretarial records based on our audit.

2. We have followed the audit practices and processes as were appropriate to obtain reasonable assurance

about the correctness of the contents of the Secretarial records. The verification was done on test basis to

ensure that correct facts are reflected in secretarial records. We believe that the processes and practices,

we followed provide a reasonable basis for our opinion.

3. We have not verified the correctness and appropriateness of financial records and Books of Accounts of

the company.

4. Where ever required, we have obtained the Management representation about the compliance of laws,

rules and regulations and happening of events etc.

5. The compliance of the provisions of Corporate and other applicable laws, rules, regulations, standards is

the responsibility of management. Our examination was limited to the verification of procedures on test

basis.

6. The Secretarial Audit report is neither an assurance as to the future viability of the company nor of the

efficacy or effectiveness with which the management has conducted the affairs of the company.

Place: Ahmedabad CS Ashwin Shah

Date: 13th

August, 2019 Company Secretary

C. P. No. 1640


Page 23

“Annexure :C”

MGT-9

EXTRACT OF ANNUAL RETURN

As on the financial year ended 31.03.2019

[Pursuant to Section 92(3) of the Companies Act, 2013, and Rule 12(1) of the

Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS:

i CIN

L27100GJ1990PLC014383

ii Registration Date

19/09/1990

iii Name of the Company

REAL STRIPS LIMITED

iv Category / Sub-Category of the Company Company limited by shares/ Indian Non – Government Company

v Address of the Registered office and contact details Survey No: 245-246, Village Sari, Ahmedabad-Bavla Highway, Taluka- Sanand, Ahmedabad 382220

Tel: +91 92280 02011, +91 9228002012

vi Whether listed company Yes / No YES

vii Name, Address and Contact details of Registrar and Transfer Agent, if any M/s. MCS Share Transfer Agent Limited 101, Shatdal Complex, 1st Floor, Opp. Bata

Showroom, Ashram Road, Ahmedabad 380009 Tel: 079- 26580461, 26580462, 26580463

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

All the business activities contributing 10 % or more of the total turnover of the company shall be stated

Sr. No.

Name and Description of main products / services NIC Code of the Product/

service

% to total turnover of the

company

1 Cold Rolled Stainless Steel Coil/Strips 27163 96.31%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sr. No.

Name and address of the Company CIN / GLN Holding /

Subsidiary / Associate

% of shares

held

Applicable Section

1 Hriday Stainless Private Limited U51909GJ2017PTC098316 Subsidiary 99.99%


Page 24

IV.

SHARE HOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

i). Category-wise Share Holding

Category of Shareholders

No. of Shares held at the beginning of the year

No. of Shares held at the end of the year

% Chang

e during

the year

Demat Physical Total % of Total

Shares Demat

Physical

Total % of Total

Shares

A. Promoter

1. Indian

a. Individual / HUF 2284550 0 2284550 38.20 2153900 0 2153900 36.02 -2.18

b. Central Govt. 0 0 0 0.00 0 0 0 0.00 0.00

c. State Govt.(s) 0 0 0 0.00 0 0 0 0.00 0.00

d. Bodies Corporate 807891 0 807891 13.51 801200 0 801200 13.40 -0.11

e. Banks / FI 0 0 0 0.00 0 0 0 0.00 0.00

f. Any Other…. 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total (A)(1): 3092441 0 3092441 51.71 2955100 0 2955100 49.42 -2.29

2. Foreign

a. NRIs – Individuals 0 0 0 0.00 0 0 0 0.00 0.00

b. Other – Individuals 0 0 0 0.00 0 0 0 0.00 0.00

c. Bodies Corporate 0 0 0 0.00 0 0 0 0.00 0.00

d. Banks / FI 0 0 0 0.00 0 0 0 0.00 0.00

e. Any Other…. 0 0 0 0.00 0 0 0 0.00 0.00

Sub-Total (A)(2): 0 0 0 0.00 0 0 0 0.00 0.00

Total Shareholding of Promoters (A) = (A)(1)+(A)(2)

3092441 0 3092441 51.71 2955100 0 2955100 49.42 -2.29

B.

Public Shareholding

1. Institutions

a. Mutual Funds / UTI 0 0 0 0.00 0 0 0 0.00 0

b. Banks / FI 0 0 0 0.00 0 0 0 0.00 0

c. Central Govt. 0 0 0 0.00 0 0 0 0.00 0

d. State Govt.(s) 0 0 0 0.00 0 0 0 0.00 0

e. Venture Capital Funds 0 0 0 0.00 0 0 0 0.00 0

f. Insurance Companies 0 0 0 0.00 0 0 0 0.00 0

g. FIIs 0 0 0 0.00 0 0 0 0.00 0

h. Foreign Venture

Capital Funds 0 0 0 0.00 0 0 0 0.00 0

i. Others (specify) 0 0 0 0.00 0 0 0 0.00 0

Sub-Total (B)(1): 0 0 0 0.00 0 0 0 0.00 0


Page 25

2. Non-Institutions

a. Bodies Corporate

i) Indian 319881 4000 323881 5.42 272873 4000 276873 4.63 -0.79

ii) Overseas 0 0 0 0.00 0 0 0 0.00 0.00

b. Individuals

0.00

i) Individual Shareholders holding nominal share capital upto ` 2 lakh

1209565 146650 1356215 22.68 1395753 137650 1533403 25.64 2.96

ii) Individual Shareholders holding nominal share capital in excess of ` 2 lakh

1001514 0 1001514 16.75 1069133 0 1069133 17.88 1.13

c. Others (specify)

i) Shares held by Pakistani citizens vested with the Custodian of Enemy Property

0 0 0 0.00 0 0 0 0.00 0.00

ii) Other Foreign Nationals 0 0 0 0.00 0 0 0 0.00 0.00

iii) Foreign Bodies 0 0 0 0.00 0 0 0 0.00 0.00

iv) NRI / OCBs 14066 4200 18266 0.30 19629 4200 23829 0.40 0.10

v) Clearing Members / Clearing House

0 0 0 0.00

0 0.00 0.00

vi) Trusts/HUF 187683 0 187683 3.14 121662 0 121662 2.03 -1.11

vii) Limited Liability Partnership

0 0 0 0.00

0 0.00 0.00

viii) Foreign Portfolio Investor (Corporate)

0 0 0 0.00

0 0.00 0.00

ix) Qualified Foreign Investor

0 0 0 0.00

0 0.00 0.00

Sub-Total (B)(2): 2732709 154850 2887559 48.29 2879050 145850 3024900 50.58 2.29

Total Public Shareholding (B)=(B)(1)+(B)(2)

2732709 154850 2887559 48.29 2879050 145850 3024900 50.58 2.29

C. Shares held by Custodian for GDRs & ADRs

Grand Total (A+B+C) 5825150 154850 5980000 100 5834150 145850 5980000 100.00 0.00

ii) Shareholding of Promoters

Shareholders Name

Shareholding at the beginning of the year

Shareholding at the end of the year

% change in shareholding during the

year No. of Shares

% of total shares of

the Company

% of Shares Pledged /

encumbered to total shares

No. of Shares

% of total shares of the

Company

% of Shares Pledged

/encumbered to total shares

Arvind kumar D. Sanghvi 130950 2.19 1.92 0 0.00 0.00 -2.19

Raajratna Stock Holding Pvt. Ltd.

6691 0.11 0.00 0 0.00 0.00 -0.11

Kataria Metal & Alloys Pvt. Ltd. 237000 3.96 1.76 237000 3.96 1.76 0.00

Vinay Amritlal Kataria 75500 1.26 0.00 75500 1.26 0.00 0.00

Ashwin Amritlal Kataria 75000 1.25 0.00 75000 1.25 0.00 0.00

Amritlal Kisandas Kataria 280900 4.70 0.00 280900 4.70 0.00 0.00

Kataria Minaxi Amritlal 189000 3.16 0.00 189000 3.16 0.00 0.00

Amritlal Kisandas Kataria(HUF)

57000 0.95 0.92 57000 0.95 0.92 0.00


Page 26

Shareholders Name


Shareholding at the end of the year % change

in shareholding during the

year

No. of Shares


the Company



No. of Shares


Company

% of Shares Pledged

/encumbered to total shares

Sanskar Metals Pvt. Ltd. 284200 4.75 0.00 284200 4.75 0.00 0.00

Vinay Alloys Steel Pvt. Ltd. 280000 4.68 0.00 280000 4.68 0.00 0.00

Laxmi Ashwin Kataria 10000 0.17 0.00 10000 0.17 0.00 0.00

Pukhraj Seshmalji Jain 121400 2.03 0.00 121400 2.03 0.00 0.00

Romit Prakashraj Jain 97200 1.63 0.00 97200 1.63 0.00 0.00

Harshid kumar Pukhrajji Jain 93500 1.56 0.00 93500 1.56 0.00 0.00

Surajmal SeshmalJi Jain 76950 1.29 1.17 76950 1.29 1.17 0.00

Prakashraj Seshmalji Jain 53800 0.90 0.89 53800 0.90 0.89 0.00

Ganeshmal Seshmalji Jain 52200 0.87 0.00 52200 0.87 0.00 0.00

Jayantilal Seshmalji Jain 45100 0.75 0.75 45100 0.75 0.75 0.00

Shantiben Jayantilal Jain 39300 0.66 0.65 39300 0.66 0.65 0.00

Naresh Babulal Jain 52000 0.87 0.00 52300 0.88 0.00 0.01

Sunny Prakashraj Jain 18200 0.30 0.30 18200 0.30 0.30 0.00

Praful Babulal Jain 26000 0.43 0.00 26000 0.43 0.00 0.00

Atul Ganeshmalji Jain 13500 0.23 0.00 13500 0.23 0.00 0.00

Sanjay Pukhraj Jain 13500 0.23 0.00 13500 0.23 0.00 0.00

Nancy Prakashraj Jain 9700 0.16 0.00 9700 0.16 0.00 0.00

Manjulaben Ganeshmalji Jain 6700 0.11 0.00 6700 0.11 0.00 0.00

Bharatkumar GaneshmalJi Jain

5700 0.10 0.00 5700 0.10 0.00 0.00

Mitaben Harshad Jain 3500 0.06 0.00 3500 0.06 0.00 0.00

Mukesh Pukhraj Jain 3200 0.05 0.00 3200 0.05 0.00 0.00

Sarojben Surajmal Jain 1400 0.02 0.00 1400 0.02 0.00 0.00

Sarojben Prakashraj Jain 1300 0.02 0.00 1300 0.02 0.00 0.00

Ravi Hirachand Hundia 85500 1.43 0.00 85500 1.43 0.00 0.00

Deepak kumar Ugamraj Hundia

78300 1.31 0.00 78300 1.31 0.00 0.00

Narangidevi Madanlal Hundia 73000 1.22 0.00 73000 1.22 0.00 0.00

Ugamraj M. Hundia 71600 1.20 0.00 71600 1.20 0.00 0.00

Aruna Pankaj Hundia 24634 0.41 0.00 24634 0.41 0.00 0.00

Rajendra Hundia 52100 0.87 0.00 52100 0.87 0.00 0.00

Madanlal Mishrimal Hundia 45500 0.76 0.00 45500 0.76 0.00 0.00

Babulal Mishrimal Hundia 36500 0.61 0.00 36500 0.61 0.00 0.00

Hundia Kishorechand 36200 0.61 0.00 36200 0.61 0.00 0.00

Hirachand Mishrimal Hundia 31350 0.52 0.00 31350 0.52 0.00 0.00

Jitendra Madanlal Hundia 26300 0.44 0.00 26300 0.44 0.00 0.00

Kamla Hirachand Hundia 17900 0.30 0.00 17900 0.30 0.00 0.00

Sangeeta Hundia 13700 0.23 0.00 13700 0.23 0.00 0.00

Sapna Ravi Hundia 12900 0.22 0.00 12900 0.22 0.00 0.00

Hundia Sandeep Babulal (HUF)

11000 0.18 0.00 11000 0.18 0.00 0.00

Pankaj Babulal Hundia 10800 0.18 0.00 10800 0.18 0.00 0.00

Kishorchand D. Hundia(HUF) 10000 0.17 0.00 10000 0.17 0.00 0.00


Page 27

Shareholders Name



% change in shareholding

during the year

No. of Shares


the Company



No. of Shares


Company

% of Shares

Pledged /encumbered to total

shares

Vikram Babulal Hundia(HUF) 9300 0.16 0.00 9300 0.16 0.00 0.00

Vikram Babulal Hundia 22533 0.38 0.00 22533 0.38 0.00 0.00

Pradeep Madanlal Hundia 7500 0.13 0.00 7500 0.13 0.00 0.00

Hirachand Mishrimal Hundia(HUF)

7000 0.12 0.00 7000 0.12 0.00 0.00

Sunanda Hundia 6200 0.10 0.00 6200 0.10 0.00 0.00

Sandeep Babulal Hundia 20733 0.35 0.00 20733 0.35 0.00 0.00

Shantaben Babulal Hundia 5800 0.10 0.00 5800 0.10 0.00 0.00

Hundia Babulal Mishrimal (HUF)

5000 0.08 0.00 5000 0.08 0.00 0.00

Shilpa Sandeep Hundia 3700 0.06 0.00 3700 0.06 0.00 0.00

Meena V. Hundia 3600 0.06 0.00 3600 0.06 0.00 0.00

Prakash Hundia 3300 0.06 0.00 3300 0.06 0.00 0.00

Sangeeta Jitendra Hundia 100 0.00 0.00 100 0.00 0.00 0.00

Total 3092441 51.71 8.36 2955100 49.42 6.44 -2.29

iii). Change in Promoters’ Shareholding (Please specify, if there is no change)


Cumulative Shareholding during the year

No. of Shares

% of total shares of the Company

No. of Shares % of total shares of the Company

At the beginning of the year 3092241 51.71 3092441 51.71

Date wise Increase/Decrease in Promoters shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):

200 0.00 137341 2.29

At the end of the year 3092441 51.71 2955100 49.42

iv). Shareholding Pattern of Top Ten Shareholders (Other than Directors, Promoters and Holders of GDRs and ADRs)

Sr.No.

For Each of the Top 10 Shareholders



No. of Shares % of total shares of the

Company No. of Shares

% of total shares of the Company

1 Ginni Finance Private Limited 159960 2.67 159960 2.67

2 Nisha Ajay kumar Bajaj 130609 2.18 130609 2.18

3 Arvind Kumar D. Sanghvi 0 0.00 115950 1.94

4 Satish Agarwal 95000 1.59 95000 1.59

5 Uma Agarwal 95000 1.59 95000 1.59

6 Sangeetha S 85390 1.43 85390 1.43

7 Mahendra Sampat Pawar 84257 1.41 60118 1.01

8 Ghanshyam Bachubhai Wadiwala 78184 1.31 0 0.00

9 Master Capital Service Limited 54250 0.91 0 0.00

10 Arpit Agarwal 50000 0.84 50000 0.84

11 Apurva Agarwal 50000 0.84 50000 0.84

12 Madanlal Girdharilal Mehta 0 0.00 40200 0.67


Page 28

v).

Shareholding of Directors and Key Managerial Personnel

Sr. No.

Shareholding of Directors and Key Managerial Personnel


Cumulative Shareholding at the end of the year

No. of Shares % of total

shares of the Company

No. of Shares % of total

shares of the Company

1 AMRITLAL KISANDAS KATARIA


Date wise Increase/Decrease in shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc):

0 0 0 0


2 PRAKASHRAJ SHESHMALJI JAIN



0 0 0 0


3 UGAMRAJ MISHRIMAL HUNDIA

At the beginning of the year

71600 1.20 71600 1.20

Date wise Increase/Decrease in shareholding during the year specifying the reasons for increase/decrease (e.g. allotment/transfer/bonus/sweat equity etc): 0 0 0 0

At the end of the year

71600 1.20 71600 1.20

4 PAWANKUMAR R MURARKA


0 0 0 0



0 0.00 0 0.00

5 AMOL R DALAL


7405 0.12 7405 0.12


0 0 0 0


7405 0.12 7405 0.12


Page 29

6 ALPA ASHESH SHAH

At the beginning of the year 0 0 0 0


0 0 0 0


7 RAMCHARAN N BERIWALA




V. INDEBTEDNESS

Indebtedness of the Company including interest outstanding/accrued but not due for payment

Secured Loans excluding deposits

Unsecured Loans Deposits Total

Indebtedness Crores

Indebtedness at the beginning of the financial year

i). Principal Amount 101.80 4.46 0.00 106.26

ii). Interest due but not paid 0.07 0.00 0.00 0.07

iii). Interest accrued but not due 0.00 0.00 0.00 0.00

Total (i+ii+iii) 101.87 4.46 0.00 106.33

Change in Indebtedness during the financial year

Addition 0.00 73.80 0.00 73.80

Reduction 101.87 0.00 0.00 101.87

Net Change 101.87 73.80 0.00 -28.07

Indebtedness at the end of the financial year

i). Principal Amount 0.00 78.26 0.00 78.26

ii). Interest due but not paid 0.00 0.00 0.00 0.00

iii). Interest accrued but not due 0.00 0.00 0.00 0.00

Total (i+ii+iii) 0.00 78.26 0.00 78.26


Page 30

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A.

Remuneration to Managing Director, Whole-time Directors and/or Manager:

Sr. No.

Particulars of Remuneration Name of Director Total Amount

of Rs. Ugamraj Hundia Prakashraj Jain

1. Gross Salary 0 0 0

(a).

Salary as per provisions contained in Section 17(1) of the Income Tax Act, 1961

0 0 0

(b).

Value of perquisites under Section 17(2) Income Tax Act, 1961

0 0 0

(c).

Profits in lieu of salary under Section 17(3) Income Tax Act, 1961

0 0 0

2. Stock Options 0 0 0

3. Sweat Equity 0 0 0

4. Commission 0 0 0

- As % of profit 0 0 0

- Others, specify…. 0 0 0

5. Others, please specify 0 0 0

i). Retrials 0 0 0

6 Siting Fees 16000 14000 30000

Total (A) 16000 14000 30000

B. Remuneration to other Directors

Sr. No.

Particulars of Remuneration

Name of Director

Pawankumar Murarka

Alpa A. Shah

Amol R. Dalal

Chetan R. Dalal

A. K. Kataria

Total Amount of Rs.

1 Independent Directors

Fee for attending Board/Committee Meetings 12000 8000 2000 6000 16000

44000

Commission 0 0 0 0 0 0

Others, please specify 0 0 0 0 0 0

Total (B)(1) 12000 8000 2000 6000 16000 44000

2. Other Non Executive Directors

Fee for attending Board/Committee Meetings 0 0 0 0 0

0

Commission 0 0 0 0 0 0

Others, please specify 0 0 0 0 0 0

Total (B) (2) 0 0 0 0 0 0

Total (B)= (B)(1)+ (B)(2) 12000 8000 2000 6000 16000 44000

Total Managerial Remuneration 12000 8000 2000 6000 16000 44000

Overall Ceiling as per the Act 1% of Net Profit

*Mr.Chetan R.Dalal ceased to be Director w.e.f 18.11.2018


Page 31

C. REMUNERATION TO KEY MANAGERIAL PERSONNEL OTHER THAN MD/MANAGER/WTD

Sr. No.

Particulars of Remuneration

Name of Key Managerial Personnel Total Amount

inRs. Ramcharan N. Beriwala

Priya Dipak Agarwal

1. Gross Salary 0 0 0

(a). Salary as per provisions contained in Section 17(1) of the Income Tax Act, 1961

946727 180000 1126727

(b).

Value of perquisites under Section 17(2) Income Tax Act, 1961

0 0 0

(c). Profits in lieu of salary under Section 17(3) Income Tax Act, 1961

0 0 0

2. Stock Options 0 0 0

3. Sweat Equity 0 0 0

4. Commission 0 0 0

- As % of profit 0 0 0

- Others, specify…. 0 0 0

5. Others, please specify - Retrials 0 0 0

Total (A) 946727 180000 1126727

PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES:

Type Section of the

Companies Act Brief

Description

Details of Penalty

/Punishment /Compounding fees imposed

Authority [RD / NCLT /

COURT]

Appeal made, if any (give details)

A. COMPANY

Penalty NIL NIL NIL NIL NIL

Punishment NIL NIL NIL NIL NIL

Compounding NIL NIL NIL NIL NIL

B. DIRECTORS




C. OTHER OFFICERS IN DEFAULT





Page 32

“ANNEXURE – D”

INFORMATION UNDER SECTION 134 (3) (M) OF THE COMPANIES ACT, 2013

[A] CONSERVATION OF ENERGY:

The company has Gas fired annealing furnace for annealing the stainless steel coils, whereby heat loss is reduced and

higher efficiency is achieved.

The details of total energy consumption and energy consumption per unit of production is given hereunder:

DISCLOSURE OF PARTICULARS WITH RESPECT TO CONSERVATION OF ENERGY

(a) Power & Fuel Consumption :

2018-19 2017-18

(1) Electricity :-

Unit

10145280 11023420

Total Amount Rs. 81165963 88275016

Rate/ Unit

Rs. 8.00 8.01

(2) Own Generation :-

{i} Through Diesel Generation Set:

Units

47360 94040

Diesel Consumed Ltrs. 14625 28161

Unit per/Ltrs of diesel

3.24 3.34

Diesel cost Rs. 777566 1181702

Cost per unit Rs. 16.42 12.57

{ii} Through Wind Turbine Generator:

7422186 7053133

Units

(3) Furnace Oil / Diesel:-

Consumption Ltrs. 1580260 1866855

Value

Rs. 59558253 51740214

Rate/ Unit

Rs. 37.69 27.72

(4) Gas(PNG):-

Consumption SCM 1758423 1816274

Value

Rs. 69484152 59461136

Rate/ Unit

Rs. 39.52 32.74

(b) Consumption per unit of Production:

(Standards if any)

Product- S.S.Coil (Own) M.T. 6111.092 6135.414

Product- S.S.Coil (Jobwork) M.T. 31059.128 32944.759

Total Production

37170.220 39080.173

Electricity- Consumption Per M.T. Units 272.94 282.07

Furnace Oil / Diesel- Consumption Per M.T. Ltrs. 42.51 47.77

Gas (PNG)- Consumption per M.T. SCM 47.31 46.48

[B] TECHNOLOGY ABSORPTION:

The company is using latest technology available.

[C] FOREIGN EXCHANGE EARNINGS:

Earnings

Rs. 8244108 Nil

Out Go

Rs. Nil 5221345


Page 33

“ANNEXURE-E”

MANAGEMENT DISCUSSION AND ANALYSIS REPORT

The global stainless steel market size is projected to reach USD 133.84 billion by 2025, according to this report.

It is projected to expand at a CAGR of 5.2% during the forecast period. Increasing production of automotive

and growth of construction sector are the key factors driving the growth.

Owing to high resistance to corrosion, stainless steel can be easily fabricated in building structures. Along with

aesthetic purpose, it provides strength and support to various building structures. It is used in roofing, structures,

fixings, drainage and water systems, handrails, and wall support products. Rising investment in this sector and

number of construction activities are creating a high demand for stainless steel products.

Automotive sector is expanding at a greater pace owing to easy access to credit facility and increasing the

necessity among people to own a vehicle across the world. India achieved the distinction of being the third

largest steel producer globally still the industry is going through a slowdown globally and experts from the steel

sector are saying that industry might remain tense next year as well.

The outlook for the global stainless steel market is improving, as purchasing activity has slightly improved.

Market participants have, for some time, been, cautiously, predicting some improvement in business conditions

during. However, as yet, there have been few indications of any impending pickup in the fortunes of stainless

steel-consuming industries.

COMPANY OVERVIEW

We are into the business of manufacturing cold rolled stainless steel coils/strips for more than 22 years. Since

inception, we have made efforts to place ourselves in a competitive position in the industry by proactively

responding to our customer requirements and continue to remain as one of the leading manufacturers of cold

rolled stainless steel coils/strips in India and caters to both the markets domestic as well as International. At

present the Company has customers from Tube industry, Kitchenware industry, Pumps industry, engineering

products industry.

We want to leverage our strength in order to benefit ourselves in future so as to become the topmost player in

the cold rolled stainless steel coils/strips industry. The Company has enjoyed leading position in industry for

several years, but global slowdown did not spare us either. Company incurred losses due to over dumping of

Chinese material in India, which affected the sales and profits of the company. But with good capacity and

strength to provide quantity and quality material your company contracted with Jindal Stainless Hisar Ltd for

processing their material on Job basis so as to utilize the ideal capacity lying with the company and to reduce its

overall cost and reduce its losses further. We wish to maintain to supply our products to corporate houses,

increase our market share in the industry, produce quality products at the competitive rates, adopt one of the

best human resource practices and also secure various certifications for standards and quality improvement. We

are making all efforts to streamline the utilization of manufacturing capacity and come sustain the slowdown

period so that when the time comes the company can get back on track with ease.

PRODUCTION PERFORMANCE

The company deals in a single product, i.e. cold rolled stainless steel coils/strips. The production of the

company in 2018-2019 is 37170 MT.


Page 34

SWOT ANALYSIS

STRENGTH & WEAKNESS

•The main competitive strength is high quality products, product innovation and technological development,

efficiency, and skilled manpower.

•The challenges are linked to the cost and availability of inputs i.e. raw materials, energy etc., and competition

from Chinese producers.

•The business mood is cautious yet quite buoyant. But there is a lot of hard work required since the going is

tough.

OPPORTINITIES & THREATS

• Re-instated integrated facility accredited with quality and ISO certifications.

• Acceptance of the Company products in quality-conscious markets.

• Government imposing safe-guard to save local industry.

• Sharp increase in electricity and other fuel costs.

• High cost of existing working capital finance.

• Weak price trends, coupled with slower demand growth.

RISKS AND CONCERNS

The Company is exposed to normal Industry risk factors like demand, supply constraints, Governmental policies

etc. To optimize capacity utilization cost-effectively, the Company has been trying to address working capital

concerns. Also, with increasing Government concerns on environment protection and general awareness

thereon, environment protection has to be a core focus area.

CERTIFICATION

REAL STRIPS LIMITED is an ISO 9001-2015 Certified by TUV NORD

OUT LOOK

WIND MILL DIVISION: The Company uses Green power Generation from Wind Mill. The company has its

own 5 Wind Mills, the company‟s total Installed capacity of windmills is 4.90 MW (1.25MW, 0.35MW,

0.60MW (2 Mills) and 2.10MW). The generation of Units from wind mills during the year 2018-19 is 7422186

Units..

INTERNAL CONTROLS: The Company has proper and adequate systems of internal control that provides

assurance on the efficiency of operations and security of assets. An independent Internal Auditor is in place to

check, audit and monitor the process as per the Internal Audit Plan approved by the Audit Committee of the

Company.

MATERIAL DEVELOPMENT IN HUMAN RESOURCES: In the year under review, the overall industrial

relations have been cordial and conducive to work. The Company recognizes the value and contribution of its

employees, and earnestly endeavors to create a responsive organization with emphasis on performance with

responsibility and accountability. Continuous appraisal of the competencies of the personnel in line with job

requirements is carried out to facilitate higher levels of output and productivity.

CAUTIONARY STATEMENT: This report contains projections, estimates and expectations etc. which are

just "forward-looking statements". Actual results could differ from those expressed or implied in this report.

Important factors that may have impact on Company's operations includes economic conditions affecting

demand / supply and price conditions in the domestic and overseas markets, changes in the Government

regulations / policies, tax laws and other statutes and other incidental factors. The Company assumes no

responsibility to publicly modify or revise any forward looking statements on the basis of any future events or

new information. Actual results may differ from those mentioned in the report.


Page 35

CEO / CFO CERTIFICATE

TO WHOMSOEVER IT MAY CONCERN

We Certify to the Board that:

(a) We have reviewed the financial statements and the cash flow statement of Real Strips Limited for the

year and that to the best of our knowledge and belief:

(i) these statements do not contain any materially untrue statement or omit any material fact or

contain statements that might be misleading;

(ii) These statements together present a true and fair view of the Company‟s affairs and are in

compliance with existing accounting standards, applicable laws and regulations.

(b) There are, to the best of our knowledge and belief, no transactions entered into by the Company during

the year which are fraudulent, illegal or violative of the Company‟s code of conduct.

(c) We accept responsibility for establishing and maintaining internal controls and that we have evaluated

the effectiveness of the internal control systems of the Company and we have disclosed to the auditors

and the Audit Committee, deficiencies in the design or operation of internal controls, if any, of which we

are aware and the steps we have taken or propose to take to rectify these deficiencies.

(d) We have indicated to the auditors and the Audit Committee:-

(i) There have been no significant changes in internal control during the year;

(ii) There have been no significant changes in accounting policies during the year and that the same

have been disclosed in the notes to the financial statements; and

(iii) There have been no instances of significant fraud of which we have become aware and the

involvement therein, if any of the management or an employee having a significant role in the

company‟s internal control system.

For Real Strips Limited

Date: 30th

May, 2019 Shri Ramcharan N. Beriwala Shri Prakashraj Jain

Place: Ahmedabad Executive Director (Finance) & CFO Joint Managing Director

HITESH PRAKASH SHAH & CO B-31, Ghantakaran Market, Chartered Accountants Near New Cloth Market,

Sarangpur, Ahmedabad-380002 Phone No.9998610352

E-mail: [email protected]

INDEPENDENT AUDITOR’S REPORT

TO THE MEMBERS OF REAL STRIPS LIMITED Report on the Standalone Ind AS Financial Statements Opinion We have audited the accompanying standalone Ind AS financial statements of REAL STRIPS LIMITED (“the Company”), which comprises the Balance Sheet as at 31 March 2019, the Statement of Profit and Loss (including other comprehensive income), Statement of Changes in Equity and Statement of Cash Flows for the year then ended, and notes to the standalone financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “Standalone Ind AS Financial Statements”). In our opinion and to the best of our information and according to the explanations given to us read with the notes to accounts, the aforesaid standalone Ind AS financial statements give the information required by the Companies Act, 2013 (“the Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the state of affairs of the Company as at March 31, 2019, and profit (including other comprehensive income), changes in equity and its cash flows for the year ended on that date. Basis for Opinion We conducted our audit in accordance with the Standards on Auditing (SAs) specified under Section 143(10) of the Companies Act, 2013. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the standalone Ind AS Financial Statements section of our report. We are independent of the Company in accordance with the Code of Ethics issued by the Institute of Chartered Accountants of India together with the ethical requirements that are relevant to our audit of the financial statements under the provisions of the Act and the Rules there under, and we have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the Standalone Ind AS Financial Statements. Emphasis of Matter

1. We draw attention to Note No. 36 of the accompanying Standalone Financial Statements regarding reversal

of provision of disputed charges of Rs.21,32,51,946/- in relation to supplies of material and the provision of

privilege leave and other incentive of Rs.4,23,08,615/-,made in previous year on estimate basis and which are

not payable.

2. We draw attention to Note No. 40 of the accompanying Standalone Financial Statements regarding

Settlements with Banks, their legal case and its accounting treatment in relation to its payment and waiver of

the amounts in the books of the accounts.

In respect of the above matters emphasized we do not provide any modified opinion.

Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Standalone Ind AS financial statements for the financial year ended March 31, 2019. These matters were addressed in the context of our audit of the standalone Ind AS financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Page 36

Key Audit Matters How the matter was addressed in our audit Recoverability of Trade Receivable balances - Trade receivables (as described in note 9 of the Standalone Ind AS Financial Statements)

Year-end outstanding trade receivables

represent balance outstanding from domestic

customers.

Trade receivables by nature carry certain

risks in general which include overdue

balances, customers in weaker economic and

geopolitical environment, customer’s ability

to pay, provision in relation to expected credit

loss, assessment of recovery process and

compliance with risk management controls.

Procedures to mitigate such risks includes

element of management judgment and are

important to access recoverability of trade

receivables.

Trade receivable has been considered a key

audit matter in the audit due to size of the

outstanding balance of trade receivables.

Our audit procedures among other things, included the following:

Understood and tested on a sample basis the

design and operating effectiveness of

management control over the customer

acceptance process, collection and the

assessment of the recoverability of receivables;

tested on a sample basis the ageing of trade

receivables at year end;

in respect of material trade receivables balances,

inspected relevant contracts and

correspondence with the customers;

In respect of material trade receivables balances

which are past due, additional procedures were

performed to evaluate their historical payment

trends, terms & conditions of customer

contracts, assessed whether the customers are

experiencing financial difficulties, and assessed

expected credit loss assessment provided by the

management;

Compared the collateral in the nature of bank

guarantees/letter of credits provided by

customers as applicable, and;

Evaluated the level of provisions made by

management for trade receivables.

Other Information The Company’s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report, but does not include the standalone financial statements and our auditors’ report thereon. The Other information is expected to be made available to us after the date of this auditor’s report. Our opinion on the standalone Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the standalone Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information; we are required to report that fact. We have nothing to report in this regard. Responsibilities of Management and Those Charged with Governance for the Standalone Ind AS Financial Statements The Company's Management and Board of Directors are responsible for the matters stated in Section 134(5) of the Act with respect to the preparation of these standalone Ind AS financial statements that give a true and fair view financial position, financial performance including other comprehensive income, cash flows and changes in equity of the Company in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended. This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Company and for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the standalone financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. In preparing the standalone Ind AS financial statements, management and Board of Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Page 37

Board of Directors is also responsible for overseeing the Company’s financial reporting process. Auditor’s Responsibilities for the Audit of the Standalone Ind AS Financial Statements Our objectives are to obtain reasonable assurance about whether the standalone Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these standalone Ind AS financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the standalone Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under Section 143(3) (i) of the Act, we are also responsible for expressing our opinion on whether the company has adequate internal financial controls with reference to standalone financial statements in place and the operating effectiveness of such controls.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditors' report. However, future events or conditions may cause the Company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the standalone Ind AS financial statements, including the disclosures, and whether the standalone Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the standalone Ind AS financial statements for the financial year ended 31 March 2019 and are therefore the key audit matters. We describe these matters in our auditors’ report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on Other Legal and Regulatory Requirements 1. As required by the Companies (Auditors’ Report) Order, 2016 (“the Order”) issued by the Central Government

of India in terms of Section 143(11) of the Act, we give in “Annexure A” a statement on the matters specified

in paragraphs 3 and 4 of the Order, to the extent applicable for the year under consideration.

2. As required by Section 143(3) of the Act, we broadly report that:

Page 38

a) We have sought and obtained all the information and explanations which to the best of our knowledge and

belief were necessary for the purposes of our audit;

b) In our opinion, proper books of accounts as required by law have been kept by the Company so far as it

appears from our examination of those books;

c) The balance Sheet, the statement of profit and loss (including other comprehensive income), the statement

of changes in equity and the cash flow statement dealt with by this report are in agreement with the books of

account;

d) In our opinion, the aforesaid Ind AS financial statements comply with the Accounting Standards specified

under section 133 of the Act, read with Companies (Indian Accounting Standards) Rules, 2015, as amended;

e) On the basis of the written representations received from the directors as on 31 March 2019 taken on

record by the Board of Directors, Mr. Ugamraj Mishrimal Hundia Director of the Company is disqualified as on

March 31, 2019 from being reappointed as a director in terms of Section 164(2) of the Act;

(f) With respect to the adequacy of the internal financial controls with reference to financial statements of the

Company and the operating effectiveness of such controls, refer to our separate Report in ‘Annexure B’.

(g) In our opinion, the managerial remuneration for the year ended March 31, 2019 paid / provided by the

Company to their directors is in accordance with the provisions of section 197 read with Schedule V to the

Act.

3. With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the

Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according

to the explanations given to us:

(i) The Company has disclosed the impact of pending litigations on its financial position in its

Standalone Ind AS Financial Statements- Refer Note No. 31 to the Standalone Financial Statements;

(ii) There are no long term contracts including derivative contracts and accordingly no provision is

required to be made for any loss from the same;

(iii) There is no fund which is pending to be transferred to the Investor Education and Protection Fund

by the Company.

(iv) The disclosures in the standalone financial statements regarding holdings as well as dealings in

specified bank notes during the period from 8 November 2016 to 30 December 2016 have not been

made in these standalone Ind AS financial statements since they do not pertain to the financial year

ended 31 March 2019.

FOR, HITESH PRAKASH SHAH &CO

(FIRM REGD.NO: 127614W)

CHARTERED ACCOUNTANTS

PLACE: AHMEDABAD HITESH SHAH

DATE: 30th MAY, 2019 PARTNER MEMBERSHIP NO 124095

Page 39

The Annexure A referred to in Independent Auditor’s Report to the members of REAL STRIPS LIMITED on the Standalone Financial Statements for the year ended on March 31, 2019, we broadly report that:

i. (a) The Company has maintained records showing full particulars, including quantitative details and situation of fixed assets;

(b) As informed to us, the Company has a program of physical verification of its fixed assets by which the fixed assets are verified by the Management at periodic manner. In accordance with this program fixed assets were verified during the year and as informed to us, no material discrepancies were noticed on such verification. In our opinion, the periodicity of physical verification is reasonable having regard to the size of the Company and the nature of its assets.

(c) According to the information and explanation given to us the title deeds of immovable properties (which are included under the note 3- ‘Property, plant and equipment’), are held in the name of the Company.

ii. The physical verification of inventory has been conducted at reasonable intervals by the Management during the year. As informed to us, the discrepancies noticed on physical verification of inventory as compared to book records were not material and have been appropriately dealt with in the books of accounts.

iii. The Company has not granted any loans, secured or unsecured to companies, firms, Limited liability partnership firms or other parties covered in the register maintained under section 189 of the Companies Act, 2013 (‘the Act’) and accordingly the paragraph (iii) (a), (b) and (c) of the Order are not applicable.

iv. In our opinion and according to the information and explanations given to us, there are no loans, investments, guarantees, and securities granted, except staff advance, in respect of which provision of section 185 and 186 of the Companies Act 2013 are applicable and hence not commented upon.

v. In our opinion, and according to the information and explanations given to us, during the year under consideration, the Company has not accepted any deposits (other than the exempted deposit) within the meaning of sections 73 to 76 of the Act and Companies (Acceptance of Deposits) Rules, 2014 (as amended). Accordingly, the provisions of clause 3(v) of the Order are not applicable to the Company.

vi. Pursuant to the rules made by the Central Government of India, the Company is required to maintain cost records as specified under Section 148(1) of the Act in respect of its products. We have broadly reviewed the same, and are of the opinion that, prima facie, the prescribed accounts and records have been made and maintained. We have not, however, made a detailed examination of the records with a view to determine whether they are accurate or complete.

vii. (a) According to the information and explanations given to us and the records of the Company examined by us, in our opinion, the Company is generally regular in depositing undisputed statutory dues including provident fund, employees’ state insurance, income-tax, sales-tax, duty of custom, goods and service tax, cess and other statutory dues, as applicable, with the appropriate authorities.

There are no undisputed amounts payable in respect of above dues which were in arrears as at 31st March 2019 for a period of more than six months from the date they became payable.

(b) According to the information and explanations given to us and the records of the Company examined by us, following are the details of outstanding dues in respect of Income Tax and service tax which have not been deposited/adjusted/reversed on account of any dispute:-

Name of the Statue Nature of dues Amount (In Rupees)

Period to which the amount relates

Forum Where Dispute is pending

Finance Act,1994

Service Tax 1,49,641/- Financial Year 2008-2009 &

2009-2010

Hon’ble Gujarat High Court

Service Tax 3,01,486/- Financial Year 2008-09 Hon’ble Gujarat High

Court

Service Tax 29,74,148/- Financial Year 2012-2013 &

2013-2014

Hon’ble CESTAT

Service Tax 25,636/- Financial Year 2012-13 Hon’ble CESTAT

Income Tax Act, 1961

Income Tax 67,86,540/- Financial Year 2010-11 Commissioner of

Income Tax

(Appeals)

Page 40

viii. According to the records of the Company examined by us and the information and explanation given to us, during the year the Company has not defaulted in repayment of loans or borrowings to financial institution and bank as at the balance sheet date.

ix. In our opinion, and according to the information and explanations given to us, during the year under consideration, company has not raised any money by way of initial public offer or further public offer (including debt instruments) and term loans during the year. Accordingly, the provisions of Clause 3(ix) of the Order are not applicable to the Company.

x. During the course of our examination of the books and records of the Company, carried out in accordance with the generally accepted auditing practices in India, and according to the information and explanations given to us, we have neither come across any instance of material fraud by the Company or on the Company by its officers or employees, noticed or reported during the year, nor have we been informed of any such case by the Management.

xi. According to the information and explanations given by the management, the managerial remuneration paid / provided is in accordance with the requisite approvals mandated by the provisions of section 197 read with Schedule V to the Companies Act, 2013.

xii. In our opinion and according to the information and explanation given to us, the Company is not a Nidhi Company. Accordingly paragraph 3(xii) of the Order is not applicable to the Company.

xiii. According to the information and explanations given to us and based on our examination of the records of the Company, transactions with the related parties are in compliance with sections 177 and 188 of the Act where applicable and details of such transactions have been disclosed in the Financial Statements as required by the applicable Ind AS-24, Related Party Disclosures.

xiv. According to the information and explanation given to us and on overall examination of the balance sheet, the Company has not made any preferential allotment or private placement of shares or fully or partly convertible debentures during the year under review and hence reporting requirements under clause 3(xiv) are not applicable to the Company and not commented upon.

xv. According to the information and explanation given to us, the Company has not entered into any non-cash transactions with its directors or persons connected with him. Accordingly paragraph 3(xv) of the Order is not applicable to the Company.

xvi. According to the information and explanations provided to us, the Company is not required to be registered under Section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, the paragraph 3(xvi) of the Order is not applicable to the Company.

FOR, HITESH PRAKASH SHAH &CO (FIRM REGD.NO: 127614W) CHARTERED ACCOUNTANTS

PLACE: AHMEDABAD HITESH SHAH DATE: 30th MAY, 2019 PARTNER

MEMBERSHIP NO 124095

Page 41

ANNEXURE B Referred to in paragraph 2(f) of the Independent Auditor’s Report of the even date to the members of

REAL STRIPS LIMITED on the Financial Statement for the year ended 31 March 2019. Report on the Internal Financial Controls under Clause (i) of Sub - section 3 of Section 143 of the Companies Act, 2013 (“the Act”) for the year ended on 31stMarch, 2019. We have audited the internal financial controls over financial reporting of REAL STRIPS LIMITED (“the Company”), for the year ended on 31st March 2019 in conjunction with our audit of the Standalone Ind AS Financial Statements of the Company for the year ended on that date. Management’s Responsibility for Internal Financial Controls The Company's Management is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the Company's policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Companies Act, 2013. Auditors’ Responsibility Our responsibility is to express an opinion on the Company's internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting (the “Guidance Note”) and the Standards on Auditing as specified under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal financial controls, both issued by the Institute of Chartered Accountants of India. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements and their operating effectiveness. Our audit of internal financial controls over financial reporting included obtaining an understanding of internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements. Meaning of Internal Financial Controls over Financial Reporting With Reference to these Standalone Ind AS Financial Statements A company's internal financial control over financial reporting with reference to these Standalone Ind AS Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting with reference to these Standalone Ind AS Financial Statements includes those policies and procedures that

(1) Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Page 42

Inherent Limitations of Internal Financial Controls over Financial Reporting With Reference to these Standalone Ind AS Financial Statements Because of the inherent limitations of internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these Standalone Ind AS Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, the Company has, in all material respects, except otherwise stated or reported to the Company, adequate internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements and such internal financial controls over financial reporting with reference to these Standalone Ind AS Financial Statements were operating effectively as at 31 March 2019, based on the internal control over financial reporting criteria established by the Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.



MEMBERSHIP NO 124095

Page 43

(Amount In Rupees)

ASSETS

Non-current assets

Property, plant and equipment 3 447,522,129 476,880,997

Intangible assets 4 202,561 301,119

Financial assets

(i) Investments 5 497,491 500,520

(ii) Other financial assets 6 9,793,102 9,419,306

Other non-current assets 7 1,519,380 519,380

Total non-current assets 459,534,663 487,621,322

Current assets

Inventories 8 75,802,142 86,985,337

Financial assets

(i) Trade receivables 9 126,881,321 165,568,443

(ii) Cash and cash equivalents 10 1,374,222 13,476,565 (iii) Other Bank balances 11 8,464,141 2,364,999 (iv) Loans 12 8,172,100 146,918

(v) Other financial assets 6 160,427 129,710

Other current assets 7 81,364,806 91,266,475

Total current assets 302,219,159 359,938,447

Total Assets 761,753,822 847,559,769

EQUITY AND LIABILITIES

Equity

Equity share capital 13 59,750,000 59,750,000

Other equity 14 (214,131,235) (832,871,860)

Total equity (154,381,235) (773,121,860)

LIABILITIES

Non-current liabilities

Deferred tax liabilities (net) 16 - 46,089,100

Total non-current liabilities - 46,089,100

Current liabilities

Financial liabilities

(i) Borrowings 15 782,550,653 1,003,529,763

(ii) Trade payables 17

2,299,485 -

109,932,888 477,961,119

(iii) Other financial liabilities 18 894,381 60,924,234

Other current liabilities 19 15,756,030 25,015,740

Provisions 20 4,701,620 7,161,673

Total current liabilities 916,135,057 1,574,592,529

Total Equity and Liabilities 761,753,822 847,559,769

2.1

As per our report of even date

For, Hitesh Prakash Shah & Co For & on behalf of the Board of Directors

Chartered Accountants of Real Strips Limited

Firm Registration No: 127614W

HITESH P. SHAH Prakashraj S. Jain Ugamraj M. Hundia

Partner Joint Managing Director Joint Managing Director

Membership No. 124095 DIN:- 00435076 DIN:- 00435229

Ramcharan N. Beriwala

Place : Ahmedabad Executive Director Cum Chief Financial Officer

Date : 30th May 2019 DIN:- 06821349

Page 44


Standalone Balance Sheet as at 31st March, 2019

Particulars Notes As at

31-03-2019

As at

31-03-2018

The accompanying notes are an integral part of the financial statements

Summary of significant accounting policies

Total Outstanding Dues Of :

- Micro Enterprises & Small Enterprises

- Other than Micro Enterprises & Small Enterprises

(Amount In Rupees)

Particulars NotesYear Ended

31-03-2019

Year Ended

31-03-2018

Income

Revenue from operations 21 1,292,959,691 1,332,331,745

Other income 22 35,630,686 28,595,344

Total income 1,328,590,377 1,360,927,089

Expenses

Cost of raw materials and components consumed 23 660,308,333 853,532,298

24 3,375,519 30,271,090

Excise duty on sales - 25,545,726

Employee benefits expenses 25 92,789,540 128,885,055

Finance costs 26 70,239,650 1,925,909

Depreciation and amortization expenses 27 39,387,263 39,356,271

Other expenses 28 342,152,630 788,243,395

Total expenses 1,208,252,935 1,867,759,744

120,337,442 (506,832,655)

Exceptional items 255,560,561 207,078

Profit / (loss) before tax 375,898,003 (506,625,577)

Tax expense

Current tax 29 - -

16 (46,089,100) -

Total tax expense (46,089,100) -

Net Profit / (loss) after tax 421,987,103 (506,625,577)

263,662 893,059

263,662 893,059

422,250,765 (505,732,518)

Basic earning per share [Nominal value of share Rs 10] 70.57 (84.72)

Diluted earning per share [Nominal value of share Rs 10] 70.57 (84.72)

Summary of significant accounting policies 2.1





HITESH P. SHAH Prakashraj S. Jain Ugamraj M. Hundia Joint Managing Director





Date : 30th May 2019 DIN:- 06821349

Page 45

Other comprehensive income for the year, net of tax


Statement of Standalone Profit and Loss for the Year Ended on 31st March, 2019

Changes in inventories of finished goods and work-in-progress

Profit / (loss) before exceptional items and tax

Deferred tax

Re-measurement Gain on defined benefit plans

Other comprehensive income not to be reclassified to Profit & Loss in

subsequent period

Total comprehensive income / (loss) for the year

Earnings per equity share:

33



Statement of Change in Equity for the year ended 31st March 2019

A. Equity Share Capital

Equity shares of Rs 10 each issued, subscribed and fully paid Numbers Amount In Rupees

As at 1st April, 2017 5,975,000 59,750,000

Issue of Equity Share Capital - -

As at 31st March, 2018 5,975,000 59,750,000


As at 31st March, 2019 5,975,000 59,750,000

B. Other Equity (Amount In Rupees)

As at 1st April, 2017 108,700,000 1,500,000 - 75,000,000 (512,339,342) (327,139,342)

Add:- (Loss) for the Year - - - - (506,625,577) (506,625,577)

Other Comprehensive Income (Re-measurement Gain

on defined benefit plans) - - - - 893,059 893,059

Total Comprehensive Income - - - - (505,732,518) (505,732,518)

As at 31st March, 2018 108,700,000 1,500,000 - 75,000,000 (1,018,071,860) (832,871,860)

Add:- Profit for the Year - - - - 421,987,103 421,987,103

Reduction of Loan on Settlement with Banks - - 196,489,860 - - 196,489,860



Total Comprehensive Income - - 196,489,860 - 422,250,765 618,740,625

As at 31st March, 2019 108,700,000 1,500,000 196,489,860 75,000,000 (595,821,095) (214,131,235)








Place : Ahmedabad Ramcharan N. Beriwala

Date : 30th May 2019 Executive Director Cum Chief Financial Officer

DIN:- 06821349

Page 46

Particulars

Reserves & Surplus

Securities

Premium

Capital Reserve

(Government

Subsidy)

General

Reserve

Retained

Earnings

Total

Other Equity Capital Reserve

(A) CASH FLOW FROM OPERATING ACTIVITIES :

Profit before tax and exceptional items 120,337,442 (506,832,655)

Adjustments for :

Depreciation and amortisation expense 39,387,263 39,356,271

Finance costs (inculding fair value changes in financial

instruments) 70,239,650 1,925,909

Bad debt written off (Net off reversal of provision) - 427,208,974

Loss on property, plant and equipments sold/discarded 82,019 49,932

Fair value Loss on investment 3,029 63,624

Net Gain on Sales of Investment - -

Other Income - -

Interest Income (inculding fair value changes in financial

instruments) (1,507,943) (5,886,320)

Dividend Income - (34,000)

108,204,018 462,684,390

Operating Profit/Loss before working capital changes 228,541,460 (44,148,265)

Movements in working Capital

(Increase)/decrease in financial assets and other assets 3,157,870 21,824,038

(Increase)/decrease in trade receivables 38,687,122 33,366,462

(Increase)/decrease in inventories 11,183,195 45,989,075

Increase/(decrease) in other liabilities, financial liabilities and

provisions (377,184,847) 14,564,382

(324,156,660) 115,743,957

Cash flow from operations (95,615,200) 71,595,692

Direct taxes paid (1,655,179) (9,872,866)

Cash flow before exceptional items


Net Cash Flow from operating activities (A) 158,290,182 61,929,904

(B) CASH FLOW FROM INVESTING ACTIVITIES :

Investment in Subsidiary - (99,990)

Purchase Investment / Re-investment of Dividend - (34,000)

Dividend Income - 34,000

Sale of Property Plant and Equipment 100,000 365,001

Purchase of Property Plant and Equipment and change in Capital

Work-in-progress (11,339,817) (16,162,388)

Interest Income 1,477,226 5,981,609

Net Cash used in investing activities (B) (9,762,591) (9,915,768)

(C) CASH FLOW FROM FINANCING ACITIVITIES :

Net Repayment of Borrowings (84,209,447) (53,797,162)

Interest Cost (Net of Reversal) (70,239,650) (1,925,909)

(Investment)/Maturity of bank deposits (6,180,837) 16,400,000

Net Cash flow from financing activities (C) (160,629,934) (39,323,071)

Net increase in cash and cash equivalent (A+B+C) (12,102,343) 12,691,065

Cash and cash equivalents (Opening) 13,476,565 785,500

Cash and cash equivalents (Closing) 1,374,222 13,476,565










Date : 30th May 2019 DIN:- 06821349

Page 47

As per the recent amendment by MCA in “IND AS-7 Statement of Cash Flows: Disclosure initiative” effective from 1st April, 2017 disclosure of

change in liabilities arising from financing activities, does not have any material non-cash changes.


Standalone Cash Flow Statement for the Year Ended on 31st March, 2019

(Amount In Rupees)

PARTICULARSYear Ended

31-03-2019

Year Ended

31-03-2018

REAL STRIPS LIMITED 28th

Annual Report 2018-19 Notes to Standalone Financial Statements of Real Strips Limited for the year ended 31st March 2019 1. CORPORATE INFORMATION:

Real Strips Limited (the "Company") is a public Company domiciled in India and incorporated under the provisions of the Companies Act, 1956.

Its shares are listed on Bombay Stock Exchange. The registered office of the Company is located at SURVEY NO. 245-246, VILLAGE: SARI,

AHMEDABAD-BAVLA HIGHWAY TA.: SANAND, DIST.: AHMEDABAD 382220, GUJARAT, INDIA. The Company is engaged in the business of

manufacturing and Job-work of Cold rolled stainless strips/coils.

The financial statements were authorized for issue in accordance with a resolution passed in the “Board of Directors Meeting‟s” held on 30th May

2019.

2. BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the

Companies (Indian Accounting Standards) Rules, 2015(as amended from time to time)and presentation requirements of Division II of Schedule III

to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the standalone financial statements.

The financial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities which have been

measured at fair value. Refer accounting policy regarding financial instruments.

Certain comparative figures appearing in these financial statements have been regrouped and/or reclassified to better reflect the nature of those

items.

The financial statements are presented in Rupees and all values are rounded to the nearest Rupees, except where otherwise indicated.

2.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

A. CURRENT VERSUS NON-CURRENT CLASSIFICATION:

The Company presents assets and liabilities in the Balance Sheet based on current/non-current classification.

An asset is treated as current when it is;

• Expected to be realised or intended to be sold or consumed in the normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when;

• It is expected to be settled in the normal operating cycle;

• It is held primarily for trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Company classifies all other liabilities as non-current.

Deferred Tax assets and liabilities are classified as non-current.

The operating cycle is the time between acquisition of assets for processing and their realisation in cash and cash equivalents. The Company

has identified twelve months as its operating cycle.

B. FOREIGN CURRENCIES:

The Company‟s financial statements are presented in Rupees, which is also the company‟s functional currency.

Transactions and balances:

Transactions in foreign currencies are initially recorded in the Company‟s functional currency at the exchange rates prevailing on the date the

transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are restated in the functional currency at the exchange rates prevailing on the

reporting date of financial statements.

Exchange differences arising on settlement of such transactions and on translation of monetary items are recognised in the Statement of Profit

and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates on the dates of

the initial transactions.

C. FAIR VALUE MEASUREMENT:

The Company measures financial instrumentsat fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at

the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability

takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, if market participants act in their economic best interest.

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Annual Report 2018-19 Notes to Standalone Financial Statements of Real Strips Limited for the year ended 31st March 2019

A fair value measurement of a non-financial asset takes into account a market participant‟s ability to generate economic benefits by using the

asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which Sufficient data are available to measure fair

value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy,

described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly

observable.

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have

occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value

measurement as a whole) at the end of each reporting period.

The Company's Management determines the policies and procedures for both recurring fair value measurement, such as unquoted financial

assets measured at fair value, and for non-recurring fair value measurement.

External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement of external valuers is decided

upon annually by the Management after discussion with and approval by the Company‟s Audit Committee. Selection criteria include market

knowledge, reputation, independence and whether professional standards are maintained. The Management decides, after discussions with the

Company‟s external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the Management analyses the movements in the values of assets and liabilities which are required to be re measured or

re-assessed as per the Company‟s accounting policies. For this analysis, the Management verifies the major inputs applied in the latest valuation

by agreeing the information in the valuation computation to contracts and other relevant documents.

The Management, in conjunction with the Company‟s external valuers, also compares the change in the fair value of each asset and liability with

relevant external sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the company has determined classes of assets and liabilities based on the nature, characteristics and

risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value.Other fair value related disclosures are given in the relevant notes.

-Disclosures for valuation methods, significant accounting judgements, estimates and assumptions.

-Quantitative disclosures of fair value measurement hierarchy.

-Financial instruments (including those carried at amortised cost).

D. PROPERTY, PLANT AND EQUIPMENT (PPE):

PPE and Capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses, if any. The cost

comprises purchase price and borrowing costs if capitalization criteria are met, the cost of replacing part of the property, plant and equipment and

directly attributable cost of bringing the asset to its working condition for the intended use. Each part of an item of property, plant and equipment

with a cost that is significant in relation to the total cost of the item is depreciated separately. This applies mainly to components for machinery.

When significant parts of fixed assets are required to be replaced at intervals, the Company recognizes such parts as individual assets with

specific useful lives and depreciates them accordingly. Likewise, when a major overhauling is performed, its cost is recognized in the carrying

amount of the PPE as a replacement if the recognition criteria are satisfied. Any trade discounts and rebates are deducted in arriving at the

purchase price.

Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from

the existing asset beyond its previously assessed standard of performance. All other expenses on existing property, plant and equipment,

including day-to-day repair and maintenance expenditure and cost of parts replaced, are charged to the Statement of Profit and Loss for the

period during which such expenses are incurred.

An item of property, plant and equipment acquired in exchange for a non-monetary asset is measured at fair value unless (a) the exchange transaction lacks commercial substance or (b) the fair value of neither the asset received nor the asset given up is reliably measurable.

CWIP comprises of cost of PPE that are yet not installed and not ready for their intended use at the Balance Sheet date.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and

adjusted prospectively, if applicable.

The Company calculates depreciation on items of property, plant and equipment on a straight-line basis using the rates arrived at based on the

useful lives defined under Schedule II of the Companies Act, 2013, except in respect of following fixed assets:

-Building, Furniture & Fixtures and Computers are depreciated on the Written Down Method over the useful life of Assets as defined in Schedule

II of the Companies Act, 2013.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or

disposal. Any gain or loss arising on de recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying

amount of the asset) is included in the Statement of Profit and Loss when the asset is derecognised.

E. INTANGIBLE ASSETS:

Intangible Assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at

cost, less any accumulated amortisation and accumulated impairment losses, if any.

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Intangible assets in the form of software are amortised on a straight-line basis over six years. The amortisation period and the amortisation

method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful

life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or

method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is

recognised in the Statement of Profit and Loss.

Gains or losses arising from de recognition of an intangible asset are measured as the difference between the net disposal proceeds and the

carrying amount of the asset and are recognised in the Statement of profit or loss when the asset is derecognised.

F. IMPAIRMENT OF NON-FINANCIAL ASSETS:

The Company assesses at each reporting date whether there is any indication that an asset may be impaired. If any such indication exists, the

Company estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying

amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Statement of Profit and

Loss. If at the reporting date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is

reassessed, and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

G. 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.

H. LEASES:

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease.

The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the

arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Company as a lessee:

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards

incidental to ownership to the Company is classified as a finance lease. A leased asset is depreciated over the useful life of the asset.

Operating lease payments are recognised as an expense in the Statement of Profit and Loss on a straight-line basis over the lease term.

I. FINANCIAL INSTRUMENTS:

A Financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or equity instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus in the case of financial assets not recorded at fair value through Statement of Profit

and Loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in three categories:

- Debt instruments - measured at amortised cost.

- Debt instruments and equity instruments - measured at fair value through Profit or Loss (FVTPL).

- Equity instruments - measured at fair value through other comprehensive income (FVTOCI)

Debt instruments at amortised cost

A“ debt instrument ”is measured at the amortised cost if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b. 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.

This category is the most relevant to the Company. 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 Statement of Profit and Loss. The losses arising from impairment are recognised in the Statement of Profit and Loss. This category generally, applies to trade, loans and other receivables.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization at amortized cost or as FVTOCI, is classified as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and Loss.

Equity investments

Investments in subsidiaries are measured at cost as per Ind AS 27 - Separate Financial Statements. All equity investments in scope of Ind AS

109 are measured at fair value. For all other equity instruments, the Company may make an irrevocable election to present in other

comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-by-instrument basis. The

classification is made on initial recognition and is irrevocable.

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If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are

recognized in the other comprehensive income (OCI). There is no recycling of the amounts from OCI to Statement of Profit and Loss, even on

sale of investment. However, the Company may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Statement of Profit and

Loss.

De recognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e.

removed from the Company‟s Balance Sheet) when:

- The rights to receive cash flows from the asset have expired, or

- 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 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.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on

the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and

bank balance.

b) Financial guarantee contracts which are not measured at FVTPL.

The Company follows „simplified approach‟ for recognition of impairment loss allowance on Trade receivables. Under the simplified approach the

Company does not track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date,

right from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Company determines that whether there has been a

significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for

impairment loss. However, if credit risk has increased significantly, lifetime ECL is used.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that

the entity expects to receive, discounted at the original EIR. ECL impairment loss allowance (or reversal) recognized during the period is

recognized as income/ expense in the Statement of Profit and Loss. This amount is reflected under the head „other expenses‟ in the Statement of

Profit and Loss.

The Balance Sheet presentation for various financial instruments is described below:

Financial assets measured at amortised cost:

ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the Balance Sheet. The allowance reduces the

net carrying amount. Until the asset meets write-off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

For assessing increase in credit risk and impairment loss, the Company combines financial instruments based on shared credit risk

characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely

basis.



Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through Statement of Profit and Loss, loans and

borrowings, payables, as appropriate.

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through Statement of Profit and Loss, loans and

borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable

transaction costs.

The Company‟s financial liabilities include trade and other payables, loans and borrowings including cash credit facilities from banks.

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The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through Statement of Profit and Loss.

Financial liabilities at fair value through Profit or Loss include financial liabilities held for trading and financial liabilities designated upon initial

recognition at fair value through Profit and Loss. Financial liabilities are classified as held for trading if they are incurred for repurchasing in the

near term.

Gains or losses on liabilities held for trading are recognised in the Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through statement of Profit and 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. This gains/losses not subsequently transferred to Profit and Loss. 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 at FVTPL.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and

losses are recognised in Statement of profit and loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by considering 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.

Reclassification of financial assets

The Company determines classification of financial assets and liabilities on initial recognition. After initial recognition, no reclassification is made

for financial assets which are equity instruments and financial liabilities. For financial assets which are debt instruments, a reclassification is

made only if there is a change in the business model for managing those assets. Changes to the business model are expected to be infrequent.

The Company‟s senior management determines change in the business model because of external or internal changes which are significant to

the Company‟s operations. Such changes are evident to external parties. A change in the business model occurs when the Company either

begins or ceases to perform an activity that is significant to its operations. If the Company reclassifies financial assets, it applies the

reclassification prospectively from the reclassification date which is the first day of the immediately next reporting period following the change in

business model. The Company does not restate any previously recognised gains, losses (including impairment gains or losses) or interest.

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.

J. INVENTORIES:

Inventories are valued at the lower of cost and net realisable value after providing for obsolescence and other losses, wherever considered

necessary. However, materials and other items held for use in the production of inventories are not written down below cost if the finished

products in which they will be incorporated are expected to be sold at or above cost. Scrap is valued at net realisable value. Cost is determined

on a First in First out method.

Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity, incurred in bringing

them in their respective present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business less estimated cost of completion and the estimated costs

necessary to make the sale.

K. Revenue from contract with customer

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably

measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable,

taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The Company

has concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has

pricing latitude and is also exposed to inventory and credit risks.

However, sales tax/ value added tax (VAT)/ Goods and Service tax (GST) is not received by the Company on its own account. Rather, it is tax

collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue. The specific

recognition criteria described below must also be met before revenue is recognised

Sale of Goods:

Revenue is recognized when a promise in a customer contract (performance obligation) has been satisfied by transferring control over the

promised goods to the customer. Control over a promised good refers to the ability to direct the use of, and obtain substantially all of the

remaining benefits from, those goods. Control is usually transferred upon shipment, delivery to, upon receipt of goods by the customer, in

accordance with the delivery and acceptance terms agreed with the customers. The amount of revenue to be recognised (transaction price) is

based on the consideration expected to be received in exchange for goods, excluding amounts collected on behalf of third parties such as sales

tax or other taxes directly linked to sales. If a contract contains more than one performance obligation, the transaction price is allocated to each

performance obligation based on their relative stand-alone selling prices. Revenue from product sales are recorded net of allowances for

estimated rebates, cash discounts and estimates of product returns, all of which are established at the time of sale.

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Variable Consideration:

If the consideration in a contract includes a variable amount, the Company estimates the amount of consideration to which it will be entitled in

exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly

probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with

the variable consideration is subsequently resolved.

The Company accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax in the year of admission of such claims

by the concerned authorities. Benefits in respect of Export Licenses are recognised on application. Export benefits are accounted for as other

operating income in the year of export based on eligibility and when there is no uncertainty on receiving the same

Dividends:

Dividend is recognized when the Company‟s right to receive the payment is established, which is generally when shareholders approve the

dividend.

Interest income and expense:

Interest Income is recognized on time proportion basis taking into account the amounts outstanding and the rates applicable. Interest income is

included under the head “other income” in the Statement of Profit and Loss

Revenue from Windmills:

Revenue from windmills is recognised on unit generation basis, in accordance with the terms of power purchase agreements.

Contract balance

Contract assets:

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by

transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised

0for the earned consideration that is conditional.

Trade receivables:

A receivable represents the Company‟s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before

payment of the consideration is due).

Contract liabilities(Advance from customers):

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount

of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a

contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities(Advance from

customers) are recognised as revenue when the Company performs under the contract.

Refund liabilities:

A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and is measured at the

amount the Company ultimately expects it will have to return to the customer. The Company updates its estimates of refund liabilities (and the

corresponding change in the transaction price) at the end of each reporting period.

L. RETIREMENT AND OTHER EMPLOYEE BENEFITS:

Retirement benefits in the form of provident fund and superannuation fund are defined contribution plans. The Company has no obligation, other

than the contributions payable to provident fund and superannuation fund. The Company recognises contribution payable to these funds as an

expense, when an employee renders the related service.

In respect of gratuity liability, the Company operates defined benefit plan wherein contributions are made to a separately administered fund. The

costs of providing benefits under this plan are determined based on actuarial valuation at each reporting date being carried out using the

projected unit credit method.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net

defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are

recognised immediately in the Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in which they

occur. Re-measurements are not reclassified to Statement of profit and loss in subsequent periods.

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:

• Service costs comprising current service costs; and

• Net interest expense or income

The liability in respect of unused leave entitlement of the employees as at the reporting date is determined on the basis of an management

estimation carried out and the liability is recognized in the Statement of Profit and Loss. Gain and loss is recognised in full in the period in which

they occur in the Statement of Profit and Loss.

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M. TAXES:

Tax expense comprises of current income tax and deferred tax.

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.

Current income tax relating to items recognised outside the Statement of Profit and Loss is recognised outside the Statement of Profit and 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:

► 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.

► In respect of taxable temporary differences associated with investments in subsidiaries, 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 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.

► In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognised only to the

extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the

temporary differences can be utilised

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.

Deferred tax relating to items recognised outside the Statement of Profit and Loss is recognised outside the Statement of Profit and Loss (either

in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or

directly in equity.

N. PROVISIONS:

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. When the Company expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but

only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Statement of Profit and Loss net of any

reimbursement.

O. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average

number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted

average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

P. CASH AND CASH EQUIVALENT:

Cash and cash equivalents in the Balance Sheet comprise cash at banks and in hand and short-term deposits with an original maturity of three

months or less, which are subject to an insignificant risk of charges in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above.

Q. CASH DIVIDEND

The Company recognises a liability to make cash or non-cash distributions to equity holders of the Company when the distribution is authorised

and the distribution is no longer at the discretion of the Company. As per the Companies Act, 2013, a distribution is authorised when it is

approved by the shareholders. A corresponding amount is recognised directly in equity.

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R. 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.

2.2 SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS:

The preparation of the Company's financial statements requires management to make judgements, estimates and assumptions that affect the

reported amounts of revenues, expenses, assets and liabilities, and the 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 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.

Defined benefit plans (Gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuation. 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 highly 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 currencies consistent with the currencies of the post-employment benefit

obligation

The mortality rate is based on publicly available mortality tables for India. 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 for India.

Page 55


Notes to standalone financial statements for the year ended 31st March 2019

3 Property, Plant and Equipment

(Amount In Rupees)

Particulars Freehold Land Building Plant & Machinery Computer &

Peripherals Furniture & fixture Vehicles Office equipment Total

Cost

As at 1st April, 2017 943,946 76,413,976 454,248,685 315,228 2,299,498 3,416,809 35,138 537,673,280

Additions - 1,278,555 16,877,718 88,200 106,618 - - 18,351,091

Deductions / Capitalization - - - - - 901,003 - 901,003

As at 31st March, 2018 943,946 77,692,531 471,126,403 403,428 2,406,116 2,515,806 35,138 555,123,368

Additions - - 9,305,976 - 185,484 620,396 - 10,111,856


As at 31st March, 2019 943,946 77,692,531 480,432,379 403,428 2,591,600 2,546,055 35,138 564,645,077

Depreciation and Impairment

As at 1st April, 2017 - 7,396,039 30,650,307 125,976 529,995 864,930 - 39,567,247

Depreciation for the year - 6,656,897 31,363,250 110,257 408,552 622,238 - 39,161,194

Deductions - - - - - 486,070 - 486,070

As at 31st March, 2018 - 14,052,936 62,013,557 236,233 938,547 1,001,098 - 78,242,371


Deductions - - - - - 408,128 - 408,128

As at 31st March, 2019 - 20,514,802 94,076,449 282,408 1,259,739 989,550 - 117,122,948

Net Block

As at 31st March, 2018 943,946 63,639,595 409,112,846 167,195 1,467,569 1,514,708 35,138 476,880,997

As at 31st March, 2019 943,946 57,177,729 386,355,930 121,020 1,331,861 1,556,505 35,138 447,522,129

4 Intangible Assets

(Amount In Rupees)

Software

Cost

As at 1st April, 2017 789,931

Additions \ Deductions -

As at 31st March, 2018 789,931


As at 31st March, 2019 789,931

Amortization and Impairment

As at 1st April, 2017 293,735

Amortization for the year 195,077

As at 31st March, 2018 488,812


As at 31st March, 2019 587,370

Net Block

As at 31st March, 2019 202,561

As at 31st March, 2018 301,119

Page 56

(a) Cost of the Property, Plant & Equipments includes carrying value recognised as deemed cost as of 1st April 2016, measured as per previous GAAP and cost of subsequent additions.

(b) No borrowing costs are capitalised on Property Plant and Equipment during the current and previous years as the company has not borrowed fund for the purpose of acquisition of Property Plant and Equipment.

Particulars

(Amount In Rupees)

5 Investments

Investment measured at Cost

In Equity Shares of Subsidiary Company

99,990 99,990

Total Investments measured at Cost 99,990 99,990

96,460 94,846

In Mutual Funds

301,041 305,684

Total Investments measured at Fair Value Through Profit and Loss 397,501 400,530

497,491 500,520

Aggregate book value of Unquoted Investments 99,990 99,990

Aggregate book value of Quoted Investments 344,990 344,990

(Amount In Rupees)

6 Other Financial Assets

Interest accrued but not due on Margin Money Deposits & others 160,427 129,710

Security deposits 9,793,102 9,419,306 9,953,529 9,549,016

Current 160,427 129,710 Non-Current 9,793,102 9,419,306

9,953,529 9,549,016

(Amount In Rupees)

7 Other Assets Unsecured, Considered Good

Contract Assets 19,878,769 36,100,000

Capital advances 1,500,000 500,000 Investment in silver 19,380 19,380 Prepaid expense 5,619,751 4,303,335 Advance receivable in cash or kind

Advance for material and others 4,860,812 816,121 Balances with Government Authorities 16,699,939 16,909,420 Income Tax & MAT Credit 32,757,651 31,102,472 Gratuity Fund with SBI Life Insurance Company Limited 1,547,884 2,035,127

82,884,186 91,785,855

Current 81,364,806 91,266,475 Non-Current 1,519,380 519,380 Total 82,884,186 91,785,855

(Amount In Rupees)

8 Inventories

2,935,151 16,109,124 b. Work-in-progress 43,427,214 56,757,513 c. Finished goods 21,243,441 11,288,661

8,196,336 2,830,039 75,802,142 86,985,337

Page 57


Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

a. Raw materials

d. Stores and spares Total

Total

Total

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Total

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Total Investment


Unquoted, fully Paid Up

9999 (31st March 2018: 9999) Equity Shares of Hriday Stainless Private

Limited of Rs.10/- each

Investments measured at Fair Value Through Profit and Loss (Quoted)

1009 (31st March 2018: 1009 ) Equity Shares of Union Bank of India of

Rs.10/- each

22484.236 (31st March 2018: 22484.236) units of SBI Infrastructure Fund-

Regular Plan-Dividend of Rs. 10/- each

In Equity Shares of Other Companies ( Fully Paid Up)



(Amount In Rupees)

9 (A) Trade Receivables from other Parties

- Unsecured, considered good 41,189,283 6,654,354 (B) Due from Related Parties

Unsecured, considered good - Subsidiary Company 25,313,605 158,914,089

60,378,433 -

Total 126,881,321 165,568,443

Reconciliation of Allowance for doubtful debts

Balance at the beginning of the year - (95,032,420)

Add: Allowance for the year - - (Less): Reversal of the provision during the year - 95,032,420 Balance at the end of the year - -

(Amount In Rupees)

10 Cash and Cash Equivalents

Balances with Banks

- In Current accounts 785,132 12,871,892

Cash in Hand 589,090 604,673

Total 1,374,222 13,476,565

(Amount In Rupees)

11 Other Bank Balances

- Unpaid dividend accounts 183,304 264,999

Balances with Banks

8,280,837 2,100,000

Total 8,464,141 2,364,999

Current 8,464,141 2,364,999

Total 8,464,141 2,364,999

Deposit with Maturity more than 3 months but less than 12 months 8,280,837 2,100,000

Total 8,280,837 2,100,000

12 Loans

(Unsecured, Considered Good)

Staff Advance to Employees 72,100 146,918

Staff Advance to Key Managerial Personnel 7,500,000 -

Staff Advance to Relative of Key Managerial Personnel 600,000 -

8,172,100 146,918

Current 8,172,100 146,918 8,172,100 146,918

Page 58

Particulars As at

31-03-2019

As at

31-03-2018

- Enterprises owned or Significantly influenced by key management

personnel or their relative

Total

(Amount In Rupees)

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Note

No. Particulars

As at

31-03-2019

- Fixed Deposits with Banks (Given as Security against Bank guarantee

and Letter of credit)

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

As at

31-03-2018

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Total



13 Equity share capital

(A) Authorized Share Capital:

( Equity Shares of Rs. 10 Each)

At the beginning of the year 12,000,000 120,000,000 12,000,000 120,000,000

Increase/ (Decrease) during the year - - - -

Equity Shares at the end of the year 12,000,000 120,000,000 12,000,000 120,000,000

(Preference Shares of Rs. 10 Each)

At the beginning of the year 500,000 5,000,000 500,000 5,000,000


Equity Shares at the end of the year 500,000 5,000,000 500,000 5,000,000

Issued, subscribed and paid up:

(Equity Shares of Rs. 10 Each)


(Refer Note (e) below) 5,980,000 59,750,000 5,980,000 59,750,000



a

As at 31-03-2019 As at 31-03-2018 Numbers Numbers

5,980,000 5,980,000

Increase/ (Decrease) during the year - -

5,980,000 5,980,000

b

c

d

e

Page 59

The Company has call in arrears / unpaid calls of Rs. 50,000/-(31st March 2018: Rs 50,000 ) and has not forfeited any shares at balance sheet date.

Share Holders Holding more than 5% of the shares as at 31-03-2019- Nil (31-03-2018: Rs Nil )

Shares outstanding at the beginning of the year

Shares outstanding at the end of the year

Rights, preference and restriction attached to Equity Shares

The company has only one class of equity shares having a face value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share.

The company declares and pay dividends in Indian rupees. During the year ended 31st March 2019, the amount of per share dividend recognized as

distributions to equity shareholders was Rs Nil (31st March 2018: Rs Nil).

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding

beneficial interest, the above shareholding represents legal ownerships of shares.

Amount in Rupees Number of Shares

In the event of liquidation of the company, the holder 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.

There were no shares reserved at year-end for issue under options and contracts/commitments for the sale of shares/ disinvestment

A reconciliation of the number of equity shares outstanding at the beginning and at the end of the reporting year.

Particulars

Amount in Rupees Number of Shares

As at 31st March 2019 As at 31st March 2018

Particulars


14 Other equity

(i) Capital Reserve (Government Subsidy)

As at 1st April 2017 1,500,000

Increase/(decrease) during the year -

As at 31st March 2018 1,500,000


As at 31st March 2019 1,500,000

(ii) Capital Reserve (Reduction of Loan on Settlement with Banks)

As at 1st April 2017 -


As at 31st March 2018 -

Increase/(decrease) during the year 196,489,860

As at 31st March 2019 196,489,860

(iii) Securities Premium

As at 1st April 2017 108,700,000


As at 31st March 2018 108,700,000


As at 31st March 2019 108,700,000

(iv) General Reserves

As at 1st April 2017 75,000,000


As at 31st March 2018 75,000,000


As at 31st March 2019 75,000,000

(iv) Retained Earnings

As at 1st April 2017 (512,339,342)

Add:- (Loss) for the Year (506,625,577)

893,059

As at 31st March 2018 (1,018,071,860)

Add:- Profit for the Year 421,987,103

263,662

As at 31st March 2019 (595,821,095)

As at 31st March 2018 (832,871,860)

As at 31st March 2019 (214,131,235)

Nature and purpose of other equity

(i)

(ii)

(iii)

(iv) General Reserve

Page 60

Securities Premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act,

2013.

Securities Premium

Particulars Amount In Rupees

Total Other Equity

Capital Reserve (Government Subsidy)

Capital Reserve is not available for distribution of profits.

Capital Reserve (Reduction of Loan on Settlement with Banks)

General Reserve is a free reserve and is available for distribution as dividend, issue of bonus shares, buyback of the company's securities. It was

created by transfer of amounts out of distributable profits.

Other Comprehensive Income (Re-measurement Gain on defined benefit plans)

Other Comprehensive Income (Re-measurement Gain on defined benefit plans)

Capital Reserve created on account of settlement with Banks. Capital Reserve is not available for distribution of profits.



(Amount In Rupees)

15 Borrowings

Long term Borrowing from Bank

Rupee Term Loan [Refer below Note] - 59,050,532

- (59,050,532)

- -

Short term Borrowings from Bank

Working Capital Loans - [Refer below Note] - 958,899,763

Unsecured Loan (Repayable on Demand)

Deposits/Loan From Corporates (Including Interest) 770,350,653 12,430,000

Deposits/Loan From Directors 12,200,000 27,200,000

Deposits/Loan From Others - 5,000,000

782,550,653 1,003,529,763

782,550,653 1,003,529,763

Current 782,550,653 1,003,529,763

Total 782,550,653 1,003,529,763

c

Page 61

Interest on borrowings from Corporate is @ 12% p.a.

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Term Loan from State Bank of India are secured by way of First charge on Fixed Assets of the company, movable

and/or immovable, present or future situated at Survey No.244, 245 and 247 at : Village : Sari, Taluka : Sanand,

District : Ahmedabad (Gujarat) and office situated at 401-402, "Florence" Opp.Ashram Road P.O., Ashram Road,

Ahmedabad - 380009 and Wind Mill situated at Ukhrala (Dist.Bhavnagar), Gujarat and further said loans are also

secured by personal guarantees of some of the Directors of the Company. The said charges have been released by

the Bank as on 19th March, 2019 as the company have repaid entire loan to the bank as per the term and condition

of the One time Settlement.

b Working Capital facilities from Union Bank of India, State Bank of India and IDBI Bank Limited are secured by way

first Pari-Passu charges over current assets of the company and personal guarantee of some of the directors of the

company and said loan is also secured by way of Second Pari-Passu charges over fixed assets of the company. The

said charges have been released by the State Bank of India on 19th March, 2019, Union Bank of India on 28th

March, 2019 and IDBI Bank Limited on 1st April, 2019 as the company have repaid entire loan to the bank as per

the term and condition of the One time Settlement.

Less: Current maturity of Long term borrowing

Total

a



(Amount In Rupees)

16 Deferred Tax Liability*

Opening Balance 46,089,100 46,089,100

(Less):- Reversal of Deferred Tax Liability (46,089,100) -

Total - 46,089,100

Movement in deferred tax Assets (net) for the year ended 31-03-2019

Particulars

Opening

Balance As at

31-03-2018

To be Recognized

in Profit & Loss

Account*

Closing Balance As

at

31-03-2019

Tax effect of items constituting deferred tax liabilities :

-Property, plant and equipment 62,365,197 (1,325,795) 61,039,402

Total 62,365,197 (1,325,795) 61,039,402

Tax effect of items constituting deferred tax assets :

-Asset on expenses allowed in year of payment 2,137,370 (914,949) 1,222,421

-Unabsorbed Depreciation / Carried Forward Losses

under TAX Laws & MAT Credit 345,683,589 (151,106,608) 194,576,981

Total 347,820,959 (152,021,557) 195,799,402

Net Deferred Tax Assets 285,455,762 (150,695,762) 134,760,000

Movement in deferred tax Assets (net) for the year ended 31-03-2018

Particulars

Opening

Balance As at

31-03-2017

To be Recognized

in Profit & Loss

Account*

Closing Balance As

at

31-03-2018


-Property, plant and equipment 60,241,493 2,123,704 62,365,197

Total 60,241,493 2,123,704 62,365,197


-Asset on expenses allowed in year of payment 1,256,598 880,772 2,137,370


under TAX Laws & MAT Credit 223,882,010 121,801,579 345,683,589

-Other adjustments 29,365,018 (29,365,018) -

Total 254,503,626 93,317,333 347,820,959

Net Deferred Tax Assets 194,262,133 91,193,629 285,455,762

Page 62

*Deferred tax assets have not been recognized, as it is not probable that sufficient taxable income will be available

in the future against which such deferred tax assets can be realized in the normal course of business of the

company and hence deferred tax liability has been reversed.

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018



(Amount In Rupees)

17 Trade Payables

2,299,485 -

- 203,947

70,700 -

48,726 92,459

109,813,462 477,664,713

Total 112,232,373 477,961,119

Current 112,232,373 477,961,119

Total 112,232,373 477,961,119

Note (i)

As at

31-03-2019

As at

31-03-2018

a

- Principal 2,299,485 -

- Interest - -

b

- -

c

- -

d - -

e

- -

18 Other Current Financial Liabilities

Current maturity of Long term borrowings - 59,050,532

Interest Accrued and due on Borrowings - 669,665

Creditors for Capital expenditure 711,077 939,038

Unpaid Dividend# 183,304 264,999

894,381 60,924,234

19 Other Current Liabilities

Contract Liability (Advance from Customers) 725,956 3,694,079

Statutory dues payable 15,030,074 21,321,661

15,756,030 25,015,740

20 Provisions - Provision for Employee Benefits

- Bonus 1,555,346 1,411,045

- Leave Encashment 3,146,274 5,750,628

Total 4,701,620 7,161,673

Current 4,701,620 7,161,673

4,701,620 7,161,673

Page 63

(Amount In Rupees)

(Amount In Rupees)

-Due to key managerial personnel

-Due to key relative of key managerial personnel

Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprise Development Act,

2006 (MSMED Act) for the year ended 31st March 2019 and year ended 31st March 2018 is given below. This information

has been determined to the extent such parties have been identified on the basis of information available with the

Company.

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Particulars

Principal amount and interest due thereon remaining unpaid to any supplier

covered under MSMED Act:

The amount of Interest paid by the buyer in terms of section 16, of the MSMED

Act, 2006 along with the amounts of the payment made to the supplier beyond

the appointed day during the each accounting year.

The amount of interest due and payable for the period of delay in making

payment (which have been paid but beyond the appointed day during the year)

but without adding the interest specified under MSMED Act.

The amount of interest accrued and remaining unpaid at the end of the each

accounting year

The amount of further interest remaining due and payable even in the

succeeding years, until such date when the interest dues as above are actually

paid to the small enterprise for the purpose of disallowance as a deductible

expenditure under section 23 of the MSMED Act, 2006

-Due to other

Total Outstanding dues of Micro and Small Enterprises (Refer Note i)

Total Outstanding dues of Creditors other than micro and small enterprises

-Due to enterprises owned or significantly influenced by key management

personnel or their relative

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

# not due for credit to "Investors Education and Protection Fund"

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Total

Total

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

(Amount In Rupees)

Total


Notes to standalone financial statements for the year ended 31st March 2019(Amount In Rupees)

Note

No.

Year ended

31-03-2019

Year ended

31-03-2018

21 Revenue from operations

Revenue from contracts with customers

Sale of Products

- Cold Rolled Stainless Strips/Coils 833,947,881 822,249,147

- Power generated from Wind Mills 47,770,752 48,257,120

Total Sale of products 881,718,633 870,506,267

- Job Work Income 411,241,058 461,825,478

1,292,959,691 1,332,331,745

i.

ii Disaggregate revenue information

a

1,284,715,583 1,332,331,745

8,244,108 -

Total revenue form contracts with customers 1,292,959,691 1,332,331,745

b Timing of revenue recognition

1,292,959,691 1,332,331,745

1,292,959,691 1,332,331,745

iii.

Year ended

31-03-2019

Year ended

31-03-2018

1,294,312,681 1,333,308,014

1,352,990 976,269

1,292,959,691 1,332,331,745

iv. Contract Balances: As at 31-03-2019 As at 31-03-2018

Trade Receivable 126,881,321 165,568,443

Contract Liabilities 725,956 3,694,079

Contract Assets 19,878,769 36,100,000

v. Performance Obligation:-

Particulars As at 31-03-2019 As at 31-03-2018

Within One Year 57,500,000 66,100,000

vi. Set Out below is the amount of revenue recognized from:-

As at 31-03-2019 As at 31-03-2018

3,694,079 3,147,983

1,828,977 1,196,665

vii.

viii.

ix. Impact of Ind AS 115

Page 64

- Outside India

Total revenue form contracts with customers

Goods and Services transferred at a point of time

Amount of Contract Liability (Including Advance From Customers) at the beginning

of the year

Particulars

Contract assets are initially recognized for revenue earned from job work services as receipt of consideration is conditional on

successful completion of the contract of job work lot. Upon completion of job work lot contract and acceptance by the customer,

the amounts recognized as contract assets are reclassified to trade receivable.

Ind AS 115 "Revenue from Contracts with Customers" is mandatory for reporting periods beginning on or after 1st April 2018 and

has replaced existing Ind AS related thereon. The Company has adopted the modified retrospective approach under the

standard. Under this approach, no adjustments were required to be made to the retained earning as at 1st April 2018. Also the

application of Ind AS 115 did not have significant impact on recognition and measurement of revenue and related items in the

financial results for the year 31st March 2019.

Performance obligation satisfied during the Previous year

Particulars

Total Revenue from operations

Revenue Reconciliation

Revenue as per contracted price

Less: Adjustments for Discounts & Rebates

Revenue from Contract with customers

The Revenue from contracts with customers for the part of Financial Year ended 31st March, 2018 (Up to 30th June, 2017) are

inclusive of Excise Duty. As the Goods and Service Tax ("GST") has been implemented with effect from 1st July, 2017 and which

replaced excise duty and other input taxes. The company collects GST on behalf of the Government. Hence GST is not Included in

revenue from operations. In view of the aforesaid change in indirect taxes, the revenue from operations for the year ended on

31st March, 2019 is not comparable with 31st March, 2018.

Total revenue from contracts with customers

- India

Reconciliation the amount of Revenue recognized in the statement of Profit and Loss with the contract price:-

Trade receivables are non-interest bearing and are generally on term of 45 days.


Notes to standalone financial statements for the year ended 31st March 2019(Amount In Rupees)

Note

No.

Year ended

31-03-2019

Year ended

31-03-2018

22 Other Income

Interest income on

Bank Deposits 460,004 602,753

Others 1,047,939 5,256,427

Other non-operating income

Bad debts recovered 24,970,958 19,315,023

Lease Rental Income 3,902,456 3,360,000


Other Income* 1,552,087 27,141

Duty Draw Back & Import Claim 147,921 -

Interest Income on Security Deposit (Indian AS) 30,398

Foreign Exchange Rate Flutation 39,268 -

Insurance Claim Received 1,334,500 -

Sundry Balances Written Back (Net) 3,697,242 -

Total 35,630,686 28,595,344

(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

23

- Opening Inventory 16,109,124 13,324,024

- Add: Purchases and Other Expenses 647,134,360 856,317,398

663,243,484 869,641,422

- Less: Closing Inventory 2,935,151 16,109,124

660,308,333 853,532,298

(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

24

Inventories at the end of the year

-Work in Progress 43,427,214 56,757,513

-Finished Goods 21,243,441 11,288,661

64,670,655 68,046,174

Inventories at the beginning of the year

-Work in Progress 56,757,513 83,993,089

-Finished Goods 11,288,661 14,324,175

68,046,174 98,317,264

(Increase)/Decrease In Inventories

-Work in Progress 13,330,299 27,235,576

- Finished Goods (9,954,780) 3,035,514

3,375,519 30,271,090

(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

25 Employee Benefits Expenses

Salaries, wages and bonus 83,904,107 120,620,955

Contribution to provident and other funds (Refer Note 30) 5,303,057 4,842,364

Gratuity expense (Refer Note 30) 1,210,450 1,160,768

Staff welfare expenses 2,371,926 2,260,968

92,789,540 128,885,055

(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

26 Finance Cost

Bank & Other Loan Interest 69,890,156 608,347

Other Borrowings Cost & Charges 349,494 1,317,562

70,239,650 1,925,909

(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

27 Depreciation and amortization expenses

- Depreciation of tangible assets (Refer Note 3) 39,288,705 39,161,194

- Amortization of intangible assets (Refer Note 4) 98,558 195,077

Total 39,387,263 39,356,271

Page 65

Total


Particulars

Cost of raw material consumed and components consumed

Cost of raw materials, other charges and components consumed

*Other Income Includes Insurance claim received, Exchange difference and other miscellaneous income.

Total

Total



(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

28 Other Expense

Consumption of Stores & Spares 88,242,451 120,367,026

Freight & Transport Charges 3,544,170 2,169,406

Power & Fuel 210,985,934 200,658,068

Job work Charges 186,929 852,184

Testing Charges 43,527 218,675

Repairs and Maintenance:

Plant and machineries 4,009,308 4,705,477

Buildings 685,697 430,261

Others 1,117,292 2,548,579

Effluent Treatment Expense 5,592,855 5,820,468

Legal & Consultancy Charges 4,881,419 4,005,822

Travelling & Conveyance Expenses 1,086,081 479,683

Insurance 631,919 618,771

Rates & Taxes 196,023 349,676

Auditors' Remuneration (Refer Note No. a) 510,000 549,000

Advertisement & Other Expenses 33,751 60,426

Director's Sitting Fees 74,000 106,000

Postage Telegram & Telephone Expenses 310,128 445,926

Loss on Sale of Plant, Property and Equipment (Net) 82,019 49,932

Increase/(Decrease) in excise duty on finished good - (1,591,575)

Conveyance Expenses 236,359 188,562

Printing & Stationery Expenses 509,721 463,136

Charity and Donations 95,000 93,875

Commission on Sales 2,681,848 2,122,527

Vehicle Expenses 1,794,903 1,899,994

Wind Mill Expenses 11,170,441 10,245,211

Rent Expenses 22,408 22,408

Fair value loss on financial instruments at fair value through profit and loss 3,029 63,624

Bad Debt /Sundry Balance Written Off - 522,241,394

Provision/(Reversal) for Doubtful Debt - (95,032,420)

Miscellaneous Expenses# 3,425,418 3,091,279

342,152,630 788,243,395

a) Auditors' Remuneration

As Auditor:

- Audit Fee 400,000 400,000

- Other Services 110,000 149,000

510,000 549,000

Page 66

# Miscellaneous Expenses includes Office electricity Expenses, Service Charges paid for services received and maintenance

expenses

Total

Total



29 INCOME TAX (Amount In Rupees)

i. The Major component of income tax expense for the year ended 31st

March, 2019 & 31st March, 2018 are:

As at

31st March, 2019

As at

31st March, 2018

Current Tax

Current Income Tax - -

Deferred Tax

Deferred Tax Expenses/(Benefit) (46,089,100) -

Income tax recognised in the Statement of Profit & Loss (46,089,100) -

Other Comprehensive Income (OCI)

Deferred tax related to items recognised in OCI during the year

Re-measurement loss on defined benefit Plans - -

Deferred Tax credited to OCI - -

ii.

(Amount In Rupees)

Profit / (Loss) before Income Tax Expenses 375,898,003 (506,625,577)

Enacted income tax rate in India applicable to the company 26.00% 30.90%

Tax using the Company's domestic tax rate 97,733,481 (156,547,303)

Tax effects of:

Exempt Income - (10,506)

Income Tax allowances (13,062,493) (46,191,310)

Non-Deductible expenses 11,548,640 14,456,492

Unused Tax Loss (96,289,470) 188,034,869

Deferred Tax Expenses/(Benefit) (46,089,100)

Others 69,842 257,758

Income tax recognised in the Statement of Profit & Loss (46,089,100) -

iii.

Page 67

Details of carry forward losses and unused credit

Unabsorbed depreciation can be carried forward indefinitely. Business loss can be carried forward for a period of 8

years from the year in which losses arose. MAT credit can be carried forward up to a period of 15 years. The company

has incurred loss in all the consecutive years starting from Financial Year 2014-15 till 2017-18.

Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate for the year ended 31st

March, 2019 & 31st March, 2018:

ParticularsYear Ended

31st March 2019

Year Ended

31st March 2018

As there is unused Tax Loss, Income Tax liability, for the year under consideration is Rs Nil (Previous Year Rs Nil)



30 EMPLOYEE BENEFIT OBLIGATIONS

A

(Amount In Rupees)

31st March, 2019 31st March, 2018

Employers’ Contribution to Provident Fund (including contribution to Employees'

Pension Scheme & State Insurance) 5,293,637 4,833,268

Employer's Contribution to Gujarat Labour Welfare 9,420 9,096

B DEFINED BENEFIT PLAN - AS PER ACTUARIAL VALUATION

i. The significant actuarial assumptions were as follows:

Particulars

As at

31 March, 2019

As at

31 March, 2018

Discount rate 8.00% 8.00%

Salary escalation rate 5.00% 5.00%

Mortality rate (as Indian Assured Lives Mortality (2012-14) Ultimate Morality Table) 100.00% 100.00%

Attrition rate 2.00% 2.00%

Average Expected Future Service 25 Years 24.59 Years

ii. The amounts recognized in balance sheet and movements in the net benefit obligation over the year are as follows:

(Amount In Rupees)

ParticularsPresent value of

obligation (A)

Fair value of plan

assets (B)

Net amount

(A-B)

As at 31st March, 2017 6,490,709 8,216,160 (1,725,451)

Current service cost 764,906 - 764,906

Interest expense/(income) 475,769 657,293 (181,524)

Total amount recognized in Profit or Loss 1,240,675 657,293 583,382

(Gain)/loss from change in Demographic assumption - experience changes (547,543) - (547,543)

(Gain)/loss from change in financial assumptions (487,257) - (487,257)

(Gain)/loss from change in Experience assumptions (28,233) - (28,233)

Total amount recognized in Other Comprehensive Income (1,063,033) - (1,063,033)

Remeasurement return on assets(Ex. Interest income) - (169,975) 169,975

As at 31st March, 2018 6,668,351 8,703,478 (2,035,127)

(Amount In Rupees)


obligation (A)

Fair value of plan

assets (B)

Net amount

(A-B)

As at 31st March, 2018 6,668,351 8,703,478 (2,035,127)





Total amount recognized in Other Comprehensive Income (254,236) - (254,236)

Remeasurement return on assets(Ex. Interest income) - 9,426 (9,426)

As at 31st March 2019 7,861,298 9,409,182 (1,547,884)

Present Value of Obligation


Gratuity

Current 1,431,532 1,015,081

Non-Current 6,429,766 5,653,270

Total 7,861,298 6,668,351

Categories of Assets


SBI Life Insurance Company Limited 9,409,182 8,703,478

The major categories of plan assets as a percentage 100% (31st March, 2018 100%)

Page 68

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant

factors, such as supply and demand in the employment market.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the

period over which the obligation is to be settled. There has been significant change in expected rate of return on assets due to

change in the market scenario.

The Company operates a defined benefit plan viz. gratuity for its employees. Under the gratuity plan, every employees who has completed at least

five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The Scheme is funded with an

insurance company in the form of qualifying insurance policy.

The following table summarize the components of net benefit expenses recognized in the statement of profit and loss in Note No. 25 "Employee

Benefit Expenses" :-

Particulars

For the year ended


iii. The net liability disclosed above relates to funded plans are as follows:

Particulars


Present value of funded obligation 7,861,298 6,668,351

Less: Fair value of plan assets 9,409,182 8,703,478

Surplus of funded plan (1,547,884) (2,035,127)

iv. Sensitivity analysis

Summary of Financial & Demographic Assumptions

Scenario DBO Percentage change

Under Base Scenario 7,861,300 0.00%

Salary Escalation-Up by 1% 8,779,265 11.70%

Salary Escalation-Down by 1% 7,079,966 -9.90%

Withdrawal Rates -Up by 1% 8,093,746 3.00%

Withdrawal Rates -Down by 1% 7,593,182 -3.40%

Discount Rates-Up by 1% 7,144,682 -9.10%

Discount Rates-Down by 1% 8,715,435 10.90%

v. Maturity Analysis of benefits payable (Amount In Rupees)

Projected benefits payable in future years from the date of reporting:


1st Following Year 1,431,532 1,015,081

2nd Following Year 423,959 483,024

3rd Following Year 307,754 375,909

4th Following Year 504,715 275,530







Page 69

The above sensitivity analysis is based on a change in assumption while holding all other assumptions constant. In practice, this

is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined

benefit obligation to significant actuarial assumptions the same method (present value of defined benefit obligation calculated

with the Projected Unit Credit Method at the end of the reporting period) has been applied as when calculating the defined

benefit liability recognized in the balance sheet. The method and types of assumptions used in preparing the sensitivity analysis

did not change compared to the prior period.



31 Contingent Liabilities and Other Commitments

Claims against the Company not acknowledged as debts towards :

(Amount In Rupees)

As at As at


i) Income Tax Matters 6,786,540 -

ii) Service Tax / Excise Matters 3,450,911 3,450,911

8,280,837 8,280,837

Page 70

Particulars

iii) Guarantees / Counter Guarantees (including un-

utilized Letters of Credit)



32 Related Party Transactions- (As identified by management)

a) List of Related Parties

(A) Subsidiary Company

Hriday Stainless Private Limited

(B) Key Managerial Personnel

Name of the Related Parties Nature of Relationship

(i) Mr. Amritlal K. Kataria Chairman

(ii) Mr. Ugamraj M. Hundia Joint Managing Director

(iii) Mr. Prakashraj S. Jain Joint Managing Director

(iv) Mr. Pawankumar R. Murarka Director

(v) Ms. Alpa Ashesh Shah Director

(vi) Mr. Amol R. Dalal* Director

(vii) Mr. Chetan R. Dalal# Director

(viii) Mr. Ramcharan N. Beriwala@ Executive Director- Finance

(C) Enterprises owned or Significantly influenced by key management personnel or their relative

(i) S P S Tube Industries

(ii) S P S Autotubes Private Limited

(iii) Platinum Bio Green Energy Limited

(D) Relative of Key Managerial Personnel


(i) Mr. Deepak U. Hundia Son of Joint Managing Director

(ii) Mr. Romitraj P. Jain Son of Joint Managing Director

Page 71

*Mr. Amol R. Dalal ceases to be director with effect from 14th May, 2018 and reappointed as a director with effect from 17th January, 2019.

# Mr.Chetan R. Dalal appointed as a Director with effect from 14th May, 2018 and ceases to be director with effect from 18th November, 2018.

@ Mr.Ramcharan N. Beriwala appointed as a Director with effect from 13th February, 2019.


b) Details of Transactions with Related Parties (Amount In Rupees)

Particulars

Transactions During the Year

(i) Sales

-Hriday Stainless Private Limited 401,080,383 497,814,291

-S P S Tube Industries 6,799,590 2,150,378

-S P S Autotubes Private Limited 2,151,653 -

-Platinum Bio Green Energy Limited 74,612,492 -

(ii) Purchases

-S P S Tube Industries 1,462,911 360,326


(iii) Salary

-Mr. Deepak U.Hundia 907,000 907,000

-Mr. Romitraj P. Jain 1,107,000 1,107,000

(iv) Director Remuneration (Salary)

-Mr. Ramcharan N. Beriwala 151,500 -

(v) Director Sitting Fees

-Mr.Amritlal K. Kataria 16,000 20,000

-Mr. Ugamraj M. Hundia 16,000 20,000

-Mr. Prakashraj S. Jain 14,000 20,000

- Mr.Pawankumar R. Murarka 12,000 12,000

-Ms. Alpa Ashesh Shah 8,000 2,000

-Mr. Amol R. Dalal 2,000 16,000

-Mr. Chetan R. Dalal 6,000 -

-Mr. Pukhraj S. Jain - 10,000

-Mr. Ashish Shah - 6,000

(vi) Staff Advance Paid

-Mr. Deepak U.Hundia 900,000 -

-Mr. Romitraj P. Jain 7,000,000 -

-Mr. Ramcharan N. Beriwala - -

(vii) Staff Advance Recovered

-Mr. Deepak U.Hundia 300,000 -

-Mr. Romitraj P. Jain 7,000,000 -

-Mr. Ramcharan N. Beriwala 4,500,000 -

Outstanding Balances as at year end 31st March, 2019 31st March, 2018

(i) Salary Payable

-Mr. Deepak U. Hundia 18,863 69,882

-Mr. Romitraj P. Jain 29,863 22,577


(ii) Unsecured Loan

-Mr.Amritlal K. Kataria 12,200,000 12,200,000

-Mr. Prakashraj S. Jain - 15,000,000

(iii) Trade Receivable

-Hriday Stainless Private Limited 25,313,605 158,914,089

-S P S Tube Industries 187,275 -

-S P S Autotubes Private Limited 398,213 -


(iv) Trade Payables

-S P S Tube Industries - 203,947

(v) Staff Advance Receivable

-Mr. Deepak U. Hundia 600,000 -


c) Maximum amount of Staff advance outstanding at any time during the year ended with related parties (Amount In Rupees)

ParticularsAs at

31st March, 2019

As at

31st March, 2018

Loan to

Key Managerial personnel - Mr. Ramcharan N. Beriwala 12,000,000 -

Relative of Key Managerial personnel - Mr. Deepak U. Hundia 900,000 -

Relative of Key Managerial personnel - Mr. Romitraj P. Jain 7,000,000 -

Page 72

2. Outstanding balances at the year end are unsecured and settlement occures in cash. There have been no guarantees provided or received for any

related party receivables or payables. The company has not recorded impairment of receivables relating to amounts owned by related parties. This

assessment is undertaken at each financial year through examining the financial possition of the related party and the market in which the related

party operates.

Ended

31-03-2019

Ended

31-03-2018

Note: 1. The company has given staff advance to Mr Ramcharan N Bariwala prior to his appointment as Director and the outstanding balance as on

the date of his appointment i.e on 13th February 2019 was Rs 1,20,00,000/-.



33 Earning Per Share (EPS)

i) Profit/(loss) of the year (Amount In Rupees) 421,987,103 (506,625,577)

ii)Total No. of Shares for EPS Computation for Basic &

Diluted(Nos.) 5,980,000 5,980,000

iii) Earning Per Share (Basic & Diluted) (in Rs.) 70.57 (84.72)

iv) Nominal Value of Share (in Rs.) 10 10

Page 73

Particulars 2018-19 2017-18



34 Segment Information

35

36

37

38

39

40 Settlements with Bank, their legal case and its accounting treatment

41

Page 74

The management was of the opinion that Trade receivable of Rs. NIL for 31st March, 2019 (As at 31st March, 2018: 522,241,394/- )

are irrecoverable and hence written off in the books of accounts.

As permitted by paragraph 4 of Ind AS-108, 'Operating Segments', if a single financial report contains both consolidated financial

statements and the separate financial statements of the parent, segment information need to be presented only on the basis of the

consolidated financial statements. Thus, disclosures required by Ind AS-108 are given in consolidated financial statements.

In the opinion of the Board of Directors, the current assets are approximately of the value stated, if realized in the ordinary course of

the business. There is no contingent liability other than stated above and provisions for all known liabilities are adequate. Few of the

accounts of trade payables, trade receivables and Income Tax Receivable are subject to confirmation from the respective parties

and necessary adjustments and/or proper classification thereof, if any, will be made on its reconciliation and/or settlement. The

classification / grouping of items of the accounts are made by the management, on the basis of the available data with the company

and which has been relied upon by the auditors. Accounts of Receivables / Payables in respect of Goods and Service Tax, Service Tax,

CENVAT, and Vat are subject to reconciliation, submission of its return for its claim and/or its Audit/ Assessment, if any.

During the year company has reversed the provision made in previous year pertaining to disputed charges in relation to supplies of

the material of Rs. 213,251,946/- and provision of privilege leave and other Incentives for an amount of Rs. 42,308,615/- as the

management of the company is of the opinion that the same is not payable. The reversed amount has been treated as "Exceptional

Items" by the Company.

The closing amount of inventory has been taken by the management on the basis of information available with the company and

without conducting physical verification of the slow moving inventory.

Company Secretary has resigned w.e.f 17th January, 2019 and hence, Company is in process of filling the vacancy.

At the end of the year, completed job work of Rs. 19,878,769/- (Previous Year Rs. 36,100,000 /-) for which job work bills have not

been raised on account of non completion of complete order are shown as contract assets.

(A) The Company has entered into One Time Settlement (OTS) for the borrowing taken from State Bank of India, Union Bank of India

& IDBI Bank which have been classified as Non-performing assets by the bankers in the earlier years. All the terms & conditions of

the OTS have been complied with by the company and its payments have been fully made and "No Due Certificate" has been

received. The amount of waiver, as per the books of accounts has been considered as Other Equity (Capital Reserve).

(B) During the year, State Bank of India and IDBI Bank have withdrawn the application instituted under section 19 of The Recovery of

Debts Due to Banks & Financial Institutions Act, 1993, filed before the Hon'ble Debt Recovery Tribunal Ahmedabad.

(C) IDBI Bank, Union Bank Of India and State Bank of India have served Notice under section 13(2) and 13(4) of Chapter III of the

Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002). The

symbolic possession of the property of the company was taken on 13th December, 2017. The Banks have withdrawn the notice

under section 13(2) and 13(4) and the hon’ble Chief Metropolitan Magistrate Court, Ahmedabad has passed the order dated 16th

June, 2018 for the withdrawal of the symbolic possession of the property of the company.



42

42.1 Financial risk management

42.2 Credit risk

Trade receivables

42.3 Market risk

i) Interest Rate Risk:

ii) Foreign currency risk

iii) Price Risk

Page 75

Market risk is the risk that the fair value of the 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, foreign currency risk and other price risk. Financial instruments

affected by market risk includes borrowings, deposits, investments, trade & other receivables and trade and other payables.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the market

rates. During the year the company had repaid the loan taken from the bank as per the settlement agreements and therefore the

company is not exposed to Interest Rate risk on the Bank Loan. However the Company has taken Loan from the Corporate at Fixed Rate of

Interest and therefore the company is no expose to interest rate risk on such loan.

Other price risk is the risk that the fair value of the financial instrument will fluctuate due to change in market traded price. Price risk

arises from financial assets such as investments in equity instruments and mutual funds. The Company is exposed to price risk arising

mainly from investment in mutual funds and listed equity share recognized at FVTPL. As at 31st March 2019 the carrying value of such

instruments recognized at FVTPL amounts to Rs 397,501 ( 31st March 2018 Rs 400,530). The details of such investments in mutual funds

and equity share are given in note no 5.

The Management expects that the exposure to risk of changes in market rates of these mutual funds and equity shares is minimal.

Financial Instrument Risk, Management, Objectives & Policies

The Company's principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables. The

main purpose of these financial liabilities is to finance the Company's operations and to provide guarantees to support its operations. The

Company's principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its

operations.

The Company is exposed to credit, liquidity and market risks (foreign currency risk, interest rate risk and price risk) during the course of

ordinary activities. The Company's senior management oversees the managements of these risks. The Company's senior management

focus is to foresee the unpredictability and minimize potential adverse effects on the Company's financial performance. The Company's

overall risk management procedures to minimize the potential adverse effects of financial market on the Company's performance areas

follows:-

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities,

including deposits with banks and other financial instruments. Balances with banks and security deposits are subject to low credit risk

since the counter-party has strong capacity to meet the obligations and where the risk of default is negligible or nil. Hence, no provision

has been created for expected credit loss for credit risk arising from these financial assets.

Credit risk arises from the possibility that customer/borrowers will not be able to settle their obligations as and when agreed. To manage

this, the Company periodically assesses the financial reliability of customers and the borrowers, taking into account the financial

condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.

Concentrations of Credit risk from part of Credit risk

During the year ended 31st March, 2019, sales to two major customer Rs. 801,577,607 or 62.00% (31st March 2018: Rs. 957,422,572 or

71.86%) of net revenue. Account receivable from such customers Rs. 25,313,605 (31st March 2018: Rs. 158,914,089). A loss of these

customers could adversely affect the operating results or cash flows of the Company.

The provision on trade receivables for expected credit loss is recognized on the basis of life-time expected credit losses (simplified

approach). Trade receivables are evaluated separately for balances towards progress billings. An expected loss rate is calculated at each

year-end, based on combination of rate of default and rate of delay. The Company considers the rate of default and delay upon initial

recognition of asset, based on the past experience and forward-looking information, wherever available.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign

exchange rates. The Company has no exposure to foreign currency risk at the end of reporting year.



42.4 Liquidity risk

Maturities of financial liabilities

(Amount In Rupees)

31st March, 2019Upto 1 year/ repayable

on demand1 to 3 years More than 3 years

Trade Payables 112,232,373 - -

Borrowings 782,550,653 - -

Other Financial liabilities 894,381 - -

Total 895,677,407 - -

31st March, 2018Upto 1 year/ repayable


Trade Payables 477,961,119 -

Borrowings 1,003,529,763 - -

Other Financial liabilities 60,924,234 - -

Total 1,542,415,116 - -

Page 76

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company’s

approach in managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring

unacceptable losses. In doing this, management considers both normal and stressed conditions.

The Company maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2019 and

31st March, 2018. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

The Company regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs.

Any short term surplus cash generated, over and above the amount required for working capital management and other operational

requirements, is retained as cash and cash equivalents (to the extent required) and any excess will be used to repay interest bearing

borrowings.

The following table shows the maturity analysis of the Company’s financial liabilities based on contractually agreed undiscounted cash

flows along with its carrying value as at the Balance Sheet date.

The table below analyze the Company's financial liabilities into relevant maturity groupings based on their contractual maturities:



43

i. Financial Instruments by Category (Amount In Rupees)

FVTPL Amortized Cost FVTPL Amortized Cost

(A) Financial assets

I Investments

a Equity Instruments 96,460 - 94,846 -

b Units of Mutual Funds 301,041 - 305,684 -

c Investment In Subsidiary - 99,990 - 99,990

Sub Total (I) 397,501 99,990 400,530 99,990

II Loans - 8,172,100 - 146,918

III Trade Receivables - 126,881,321 - 165,568,443

IV Cash and cash equivalents - 1,374,222 - 13,476,565

V Other Bank Balances - 8,464,141 - 2,364,999

VI Other Financial Asset - 9,953,529 - 9,549,016

Total (I+II+III+IV+V+VI) 397,501 154,945,303 400,530 191,205,931

Note:

(Amount In Rupees)


(B) Financial Liabilities

I Borrowings - 782,550,653 - 1,003,529,763

II Trade payables - 112,232,373 - 477,961,119

III Other financial liabilities - 894,381 - 60,924,234

Total - 895,677,407 - 1,542,415,116

Page 77

Investments in subsidiary companies have been accounted at Cost in line with option available in Ind AS 101.

ParticularsAs at 31st March, 2019 As at 31st March, 2018

Fair Value Measurements


The following table provides the fair value measurements hierarchy of the Company's assets and liabilities.



ii. Fair value hierarchy

(Amount In Rupees)

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

I Financial Asset and Liabilities

measured at Fair value

A Financial Asset

i Financial Investments at FVTPL 5 397,501 - - 400,530 - -

II

Financial Asset and Liabilities

Which are measured at Amortized

Cost.

Page 78

The hierarchy levels used for Fair Value measurements of Financial instruments wherever applicable is given below

No separate Fair value is disclosed as the Carrying value of

these Assets and Liabilities represents their Fair Value

Level 2: The fair value of financial instruments that are not traded in an active market is determined using

valuation techniques which maximize 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.

Level 1:Level 1 hierarchy includes financial instruments measured using quoted prices.

Note




44 Capital Management:

(Amount In Rupees)

Particular 31st March, 2019 31st March, 2018

Equity share capital 59,750,000 59,750,000

Other Equity (214,131,235) (832,871,860)

Total Equity (154,381,235) (773,121,860)

Page 79

The Company's objectives when managing capital are to:

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and

benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the Company's capital management, capital includes issued equity capital, securities premium and all

other equity reserves attributable to the equity holders of the Company. The primary objective of the Company's capital

management is to maximize the shareholders value. The Company manages its capital structure and makes adjustments in

light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend

payment to shareholders, return capital to shareholders or issue new shares. The Capital structure of the Company is as

follows:

In order to achieve this overall objectives, the Company's capital managements, amongst other things, aims to ensure that

it meets financial convenants attached to the interest-bearing loans and borrowing that define capital structure

requirements.

1



45

Name of Entity Relationship - Place of BusinessOwnership in %

as at March 31, 2019

Ownership in %

as at March 31, 2018

Hriday Stainless Private Limited Domestic Subsidiary - India 99.99% 99.99%

46 Events occurred after the Balance Sheet Date

47 Standards Issued but not effective

48 Other










Date : 30th May, 2019 DIN:- 06821349

Page 80

Disclosure of Significant Interest in Subsidiaries as per Paragraph 17 of IND AS 27

The Company evaluates events and transactions that occur subsequent to the Balance Sheet date but prior to the approval of the financial statements

to determine the necessity for recognition and/or reporting of any of these events and transactions in the financial statements. As of 30th May 2019,

there were no subsequent events to be recognized or reported that are not already disclosed elsewhere in these financial statements.

Figures relating to previous year has been regrouped wherever necessary to make them comparable with the current year figures.

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the Company’s

financial statements are disclosed below. The Company intends to adopt these standards, if applicable, when they become effective.

Ind AS 116 Leases was notified in October 2018 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116 is effective for annual

periods beginning on or after 1 April 2019. Ind AS 116 sets out the principles for the recognition, measurement, presentation and disclosure of leases

and requires lessees to account for all leases under a single on-balance sheet model similar to the accounting for finance leases under Ind AS 17. The

standard includes two recognition exemptions for lessees – leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases

with a lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease payments (i.e., the lease

liability) and an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-use asset). Lessees will be required to

separately recognise the interest expense on the lease liability and the depreciation expense on the right-of-use asset.

Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the lease term, a change in future

lease payments resulting from a change in an index or rate used to determine those payments). The lessee will generally recognise the amount of the

remeasurement of the lease liability as an adjustment to the right-of-use asset.

Lessor accounting under Ind AS 116 is substantially unchanged from today’s accounting under Ind AS 17. Lessors will continue to classify all leases

using the same classification principle as in Ind AS 17 and distinguish between two types of leases: operating and finance leases.

The Company intends to adopt these standards, as applicable, and they become effective. As the Company does not have any material leases,

therefore the adoption of this standard is not likely to have a material impact in its Financial Statements.

HITESH PRAKASH SHAH & CO B-31 Ghantakaran Market, Chartered Accountant Near New Cloth Market,

Sarangpur, Ahmedabad 380002 Phone No.9998610352

Email: [email protected]

INDEPENDENT AUDITOR’S REPORT

To the Members of Real Strips Limited, Report on the Audit of Consolidated Ind AS Financial Statements

Opinion

We have audited the accompanying Consolidated Ind AS financial statements of Real Strips Limited(hereinafter referred to as “the Holding Company”), its subsidiary (the Holding Company and its subsidiary together referred to as “the Group”), comprising of the Consolidated Balance sheet as at March 31, 2019, the Consolidated Statement of Profit and Loss, including consolidated other comprehensive income, the Consolidated Cash Flow Statement, the Consolidated Statement of Changes in Equity for the year then ended and notes to the Consolidated Ind AS financial statements, including a summary of significant accounting policies and other explanatory information (hereinafter referred to as “the Consolidated Ind AS financial statements”).

In our opinion and to the best of our information and according to the explanations given to us read with the notes to accounts and based on the consideration of reports of other auditor on separate financial statements and on the other financial information of the subsidiary, the aforesaid consolidated Ind AS Financial Statements give the information required by the Companies Act, 2013, as amended (the “Act”) in the manner so required and give a true and fair view in conformity with the accounting principles generally accepted in India, of the consolidated state of affairs of the Group as at March 31, 2019, their consolidated profit including consolidated other comprehensive income, their consolidated cash flows and the consolidated statement of changes in equity for the year ended on that date.

Basis for Opinion

We conducted our audit in accordance with Standards on Auditing (SAs) specified under section 143(10) of the Companies Act, 2013. Our responsibilities under those SAs are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the Consolidated financial statements in India in terms of the Code of Ethics issued by the Institute of Chartered Accountants of India and the relevant provisions of the Companies Act, 2013, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Emphasis of Matter

1. We draw attention to Note No. 37 of the accompanying Consolidated Ind AS Financial Statements regarding reversal of provision of disputed charges of Rs.21,32,51,946/- in relation to supplies of material and the provision of privilege leave and other incentive of Rs.4,23,08,615/- ,made in previous year on estimate basis and which are not payable.

2. We draw attention to Note No. 41 of the accompanying Consolidated Ind AS Financial Statements regarding Settlements with Bank, their legal case and its accounting treatment in relation to its payment and waiver of the amounts in the books of accounts.

In respect of the above matters emphasized we do not provide any modified opinion.

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Key Audit Matters Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the Consolidated Ind AS financial statements for the financial year ended March 31, 2019. These matters were addressed in the context of our audit of the Consolidated Ind AS financial statement as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. We have determined the matters described below to be the key audit matters to be communicated in our report.

Key Audit Matters How the matter was addressed in our audit Recoverability of Trade Receivable balances - Trade receivables (as described in note 9 of the Consolidated Ind AS Financial Statements)

Year-end outstanding trade receivables represent balance outstanding from domestic and export customers.

Trade receivables by nature carry certain risks in general which include overdue balances, customers in weaker economic and geopolitical environment, customer’s ability to pay, provision in relation to expected credit loss, assessment of recovery process and compliance with risk management controls.

Procedures to mitigate such risks includes element of management judgment and are important to access recoverability of trade receivables.

Trade receivable has been considered a key audit matter in the audit due to size of the outstanding balance of trade receivables.

Our audit procedures among other things, included the following:

Understood and tested on a sample basis the design and operating effectiveness of management control over the customer acceptance process, collection and the assessment of the recoverability of receivables;

tested on a sample basis the ageing of trade receivables at year end;

in respect of material trade receivables balances, inspected relevant contracts and correspondence with the customers;

In respect of material trade receivables balances which are past due, additional procedures were performed to evaluate their historical payment trends, terms & conditions of customer contracts, assessed whether the customers are experiencing financial difficulties, and assessed expected credit loss assessment provided by the management;

Compared the collateral in the nature of bank guarantees/letter of credits provided by customers as applicable, and;

Evaluated the level of provisions made by management for trade receivables.

Other Information The Holding Company’s management and Board of Directors are responsible for the other information. The other information comprises the information included in the Holding Company’s Annual Report but does not include the Consolidated Ind AS financial statements and our auditors' report thereon. The Other information is expected to be made available to us after the date of this auditor’s report. Our opinion on the Consolidated Ind AS financial statements does not cover the other information and we do not express any form of assurance conclusion thereon. In connection with our audit of the Consolidated Ind AS financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the Consolidated Ind AS financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. Responsibilities of Management and Those Charged with Governance for the Consolidated Financial Statements

The Holding Company’s management and Board of Directors are responsible for the preparation and presentation of these Consolidated Ind AS financial statements in terms of the requirements of the Act that give a true and fair view of the consolidated financial position, consolidated financial performance including consolidated other comprehensive income, consolidated cash flows and consolidated statement of changes in equity of the Group in accordance with the accounting principles generally accepted in India, including the Indian Accounting Standards (Ind AS) specified under Section 133 of the Act read with the Companies (Indian Accounting Standards) Rules, 2015, as amended.

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The respective Board of Directors of the company included in the Group are responsible for maintenance of adequate accounting records in accordance with the provisions of the Act for safeguarding of the assets of the Group for preventing and detecting frauds and other irregularities; selection and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent; and the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the accuracy and completeness of the accounting records, relevant to the preparation and presentation of the Consolidated Ind AS financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error, which have been used for the purpose of preparation of the Consolidated Ind AS financial statements by the Directors of the Holding Company, as aforesaid. In preparing the Consolidated Ind AS financial statements, the management and Board of Directors of the company included in the Group are responsible for assessing the ability of the Group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Group or to cease operations, or has no realistic alternative but to do so. The Board of Directors of the company included in the Group is responsible for overseeing the financial reporting process of each entity. Auditor’s Responsibilities for the Audit of the Consolidated Ind AS Financial Statements

Our objectives are to obtain reasonable assurance about whether the Consolidated Ind AS financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Consolidated Ind AS financial statements. As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement of the Consolidated Ind AS financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances. Under section 143(3)(i) of the Act, we are also responsible for expressing our opinion on whether the Holding Company has adequate internal financial controls system in place and the operating effectiveness of such controls.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the ability of the Group to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the Consolidated Ind AS financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the Consolidated Ind AS financial statements, including the disclosures, and whether the Consolidated Ind AS financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group of which we are the independent auditors and whose financial information we have audited, to express an opinion on the Consolidated Ind AS financial statements. We are responsible for the direction, supervision and performance of the audit of the financial statements of such entities included in the Consolidated Ind AS Financial Statements of which we are the independent auditors. For the other company included in the Consolidated Ind AS financial statements, which have been audited by other auditor, such other auditor remains responsible for the direction, supervision and performance of the audits carried out by them. We remain solely responsible for our audit opinion.

We communicate with those charged with governance of the Holding Company Ind AS Financial Statements of which we are the independent auditors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards. From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the Consolidated Ind AS financial statements for the financial year ended March 31, 2019 and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Other Matter We did not audit the Financial Statement and other financial information, in respect of its Subsidiary Company included in the Consolidated Financial Statements which constitute total assets of Rs. 2,67,93,031/-, total revenue of Rs. 40,18,39,662/-, Net Profit of Rs. 5,95,873/- and Net cash inflow amounting to Rs. 5,95,893/- for the year ended on March 31, 2019. These Financial Statement and other financial information have been audited by other auditor whose reports have been furnished to us, and our opinion on the Consolidated Ind AS Financial Statements to the extent they have been derived from such Financial Statement is based solely on the report of such auditor. Our opinion on the Consolidated Ind AS financial statements, and our report on Other Legal and Regulatory Requirements below, is not modified in respect of the above matters with respect to our reliance on the work done and the reports of the other auditor and the financial statements certified by the Management.

Report on Other Legal and Regulatory Requirements

1. As required by Section 143(3) of the Act, based on our audit and on the consideration of report of the other auditor on

separate financial statements and information of other subsidiary incorporated in India as noted in the ‘Other Matters’

paragraph, we broadly report, to the extent applicable on the Consolidated Financial Statement, that:

(a) We / the other auditor whose reports we have relied upon have sought and obtained all the information and

explanations which to the best of our knowledge and belief were necessary for the purpose of our audit of the

aforesaid Consolidated Ind AS Financial Statements.

(b) In our opinion proper books of account as required by law relating to preparation of the aforesaid Consolidation of

the Financial Statements have been kept so far as it appears from our examination of those books and reports of the

other auditors;

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(c) The Consolidated Balance Sheet, the Consolidated Statement of Profit and Loss including the Consolidated Other

Comprehensive Income, the Consolidated Cash Flow Statement and Consolidated Statement of Changes in Equity

dealt with by this Report are in agreement with the books of account maintained for the purpose of preparation of

the Consolidated Ind AS Financial Statements;

(d) In our opinion, the aforesaid Consolidated Ind AS financial statements comply with the Accounting Standards

specified under section 133 of the Act, read with the Companies (Indian Accounting Standard) Rules, 2015, as

amended;

(e) On the basis of the written representations received from the directors of the Company as on March 31, 2019 taken

on record by the Board of Directors of the Company and the reports of the statutory auditor of its subsidiary

company, Mr Ugamraj Mishrimal Hundia Director of the Company is disqualified as on March 31, 2019 from being

reappointed as a director in terms of Section 164(2) of the Act.

(f) With respect to the adequacy and the operating effectiveness of the internal financial controls over financial

reporting with reference to these Consolidated Ind AS Financial Statements of the Holding Company, refer to our

separate Report in “Annexure A” to this report;

(g) In our opinion, the managerial remuneration for the year ended March 31, 2019 paid / provided by the Group to

their directors is in accordance with the provisions of section 197 read with Schedule V to the Act.

2. With respect to the other matters to be included in the Auditors’ Report in accordance with Rule 11 of the Companies

(Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according to the explanations

given to us:

(a) The Consolidated Ind AS Financial Statements disclose the impact of pending litigations on its Consolidated

financial position of the Group – Refer Note 32 to the Consolidated Ind AS Financial Statements;

(b) The Group did not have any material foreseeable losses in long-term contracts including derivative contracts

during the year ended March 31, 2019;

(c) There are no amounts which are required to be transferred to the Investor Education and Protection Fund by the

Holding Company or its subsidiary company incorporated in India during the year ended March 31, 2019.

(d) The disclosures in the Consolidated financial statements regarding holdings as well as dealings in specified bank

notes during the period from 8 November 2016 to 30 December 2016 have not been made in these Consolidated

Ind AS financial statements since they do not pertain to the financial year ended 31 March 2019.



MEMBERSHIP NO. 124095

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ANNEXURE A TO THE AUDITOR’S REPORT [REFERRED TO IN PARAGRAPH (f) OF REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENT OF OUR REPORT OF EVEN DATE FOR THE YEAR ENDED ON MARCH 31, 2019] REPORT ON THE INTERNAL FINANCIAL CONTROLS UNDER CLAUSE (i) OF SUB-SECTION 3 OF SECTION 143 OF THE COMPANIES ACT, 2013 (“the Act”) In conjunction with our audit of the Consolidated Ind AS Financial Statements of Real Strips Limited as of and for the year

ended March 31, 2019, we have audited the internal financial controls over financial reporting of Real Strips Limited

(hereinafter referred to as the “Holding Company”) as of that date.

Management’s Responsibility for Internal Financial Controls The respective Board of Directors of the Holding Company is responsible for establishing and maintaining internal financial controls based on the internal control over financial reporting criteria established by the Holding Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India. These responsibilities include the design, implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the orderly and efficient conduct of its business, including adherence to the respective company’s policies, the safeguarding of its assets, the prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely preparation of reliable financial information, as required under the Act. Auditors’ Responsibility Our responsibility is to express an opinion on the company's internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements based on our audit. We conducted our audit in accordance with the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance Note”) and the Standards on Auditing, both issued by Institute of Chartered Accountants of India, and deemed to be prescribed under section 143(10) of the Act, to the extent applicable to an audit of internal financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether adequate internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements was established and maintained and if such controls operated effectively in all material respects. Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements and their operating effectiveness. Our audit of internal financial controls over financial report in included obtaining an understanding of internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion on the internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements. Meaning of Internal Financial Controls Over Financial Reporting With Reference to these Consolidated Ind AS Financial Statements A company's internal financial control over financial reporting with reference to these Consolidated Ind AS Financial Statements is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company's internal financial control over financial reporting with reference to these Consolidated Ind AS Financial Statements includes those policies and procedures that

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(1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition of the company's assets that could have a material effect on the financial statements.

Inherent Limitations of Internal Financial Controls Over Financial Reporting With Reference to these Consolidated Ind AS Financial Statements Because of the inherent limitations of internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements, including the possibility of collusion or improper management override of controls, material misstatements due to error or fraud may occur and not be detected. Also, projections of any evaluation of the internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements to future periods are subject to the risk that the internal financial control over financial reporting with reference to these Consolidated Ind AS Financial Statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Opinion In our opinion, the Holding Company has maintained in all material respects, except stated otherwise or reported to the company, adequate internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements and such internal financial controls over financial reporting with reference to these Consolidated Ind AS Financial Statements were operating effectively as at March31,2019, based on the internal control over financial reporting criteria established by the Holding Company considering the essential components of internal control stated in the Guidance Note on Audit of Internal Financial Controls Over Financial Reporting issued by the Institute of Chartered Accountants of India.



MEMBERSHIP NO. 124095

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ASSETS

Non-current assets

Property, plant and equipment 3 447,522,129 476,880,997

Intangible assets 4 202,561 301,119

Financial assets

(i) Investments 5 397,501 400,530

(ii) Other financial assets 6 9,793,102 9,419,306

Deferred Tax Asset 16 6,380 -

Other non-current assets 7 1,519,380 519,380

Total non-current assets 459,441,053 487,521,332

Current assets

Inventories 8 75,802,142 86,985,337

Financial assets

(i) Trade receivables 9 128,256,785 162,352,460

(ii) Cash and cash equivalents 10 1,447,288 18,717,340 (iii) Bank balances other than (ii) above 11 8,464,141 2,364,999 (iv) Loans 12 8,172,100 146,918

(v) Other financial assets 6 160,427 129,710

Other current assets 7 81,389,322 91,266,705

Total current assets 303,692,205 361,963,469

Total Assets 763,133,258 849,484,801

EQUITY AND LIABILITIES

Equity

Equity share capital 13 59,750,000 59,750,000

Other equity 14 (213,116,881) (832,329,333)

Non Controlling Interest 111 64

Total equity (153,366,770) (772,579,269)

Liabilities

Non-current liabilities

Deferred tax liabilities (net) 16 - 46,089,100

Total non-current liabilities - 46,089,100

Current liabilities


(i) Borrowings 15 782,650,653 1,003,629,761

(ii) Trade payables 17

2,299,485 -

109,997,689 477,965,710

(iii) Other financial liabilities 18 894,381 60,924,234

Other current liabilities 19 15,787,030 26,007,500

Provisions 20 4,701,620 7,161,673

Current tax liabilities 21 169,170 286,092

Total current liabilities 916,500,028 1,575,974,970

Total Equity and Liabilities 763,133,258 849,484,801







Partner Joint Managing Director Joint Managing Director Membership No. 124095 DIN:- 00435076 DIN:- 00435229

- Place : Ahmedabad Ramcharan N. Beriwala

Date : 30th May 2019 Executive Director Cum Chief Financial Officer

DIN:- 06821349

Page 88


Particulars Notes As at

31-03-2019

Consolidated Balance Sheet as at 31st March 2019


(Amount In Rupees)

Total Outstanding Dues Of :

- Other than Micro Enterprises & Small Enterprises

- Micro Enterprises & Small Enterprises

As at

31-03-2018

(Amount In Rupees)

Particulars NotesYear Ended

31-03-2019

Year Ended

31-03-2018

Revenue from operations 22 1,293,718,970 1,333,303,845

Other income 23 35,630,686 28,595,343

Total income 1,329,349,656 1,361,899,188

Expenses

Cost of raw materials and components consumed 24 660,308,333 853,532,298

25 3,375,519 30,271,090

Excise duty on sales - 25,545,726

Employee benefits expenses 26 92,789,540 128,885,055

Finance costs 27 70,241,039 1,927,019

Depreciation and amortisation expenses 28 39,387,263 39,356,271

Other expenses 29 342,314,628 788,385,711

Total expenses 1,208,416,322 1,867,903,170

120,933,334 (506,003,982)


Profit / (loss) before tax 376,493,895 (505,796,904)

Tax expense

Current tax 30 169,170 286,092

(38,772) -

(46,095,480) -

Total tax expense (45,965,082) 286,092

Profit / (loss) after tax 422,458,977 (506,082,996)

Other comprehensive income

263,662 893,059

- -

263,662 893,059 422,722,639 (505,189,937)

Profit / (loss) for the year attributable to:

Owners of the Company 422,458,930 (506,083,050)

Non- Controlling Interest 47 54

422,458,977 (506,082,996)

Other comprehensive income/(loss) for the year attributable to:

Owners of the Company 263,662 893,059

Non- Controlling Interest - -

263,662 893,059

Total comprehensive income/(loss) for the year attributable to:

Owners of the Company 422,722,592 (505,189,991)

Non- Controlling Interest 47 54

422,722,639 (505,189,937)

Basic earning per share [Nominal value of share Rs 10] 70.65 (84.63)

Diluted earning per share [Nominal value of share Rs 10] 70.65 (84.63)











Date : 30th May 2019 DIN:- 06821349

-

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Earnings per share:

34


Other comprehensive income/(loss) for the year, net of tax


Consolidated statement of profit and loss for the year ended 31st March 2019

Total comprehensive income/(loss) for the year


Profit / (loss) before exceptional items and tax

Excess provision for current tax of earlier years

Deferred tax

Items that will not be reclassified to profit or loss:

Re-measurement Gain on defined benefit plans

Income tax effect

Consolidated Statement of Change in Equity for the year ended 31st March 2019

A. Equity Share Capital

Equity shares of Rs 10 each issued, subscribed and fully paid Numbers (Amount In Rupees)

As at 1st April, 2017 5,975,000 59,750,000


As at 31st March, 2018 5,975,000 59,750,000


As at 31st March, 2019 5,975,000 59,750,000

B. Other Equity (Amount In Rupees)

Capital

Reserve

(Government

Subsidy)

Capital

Reserve

As at 1 April 2017 108,700,000 1,500,000 - 75,000,000 (512,339,342) (327,139,342)

Add:- (Loss) for the Year - - - - (506,083,050) (506,083,050) Other Comprehensive Income (Re-measurement Gain


Total Comprehensive Income - - - - (505,189,991) (505,189,991)

As at 31st March, 2018 108,700,000 1,500,000 - 75,000,000 (1,017,529,333) (832,329,333)

Add:- Profit for the Year - - - - 422,458,930 422,458,930

Reduction of Loan on Settlement with Banks - - 196,489,860 - - 196,489,860



Total Comprehensive Income - - 196,489,860 - 422,722,592 619,212,452

As at 31st March, 2019 108,700,000 1,500,000 196,489,860 75,000,000 (594,806,741) (213,116,881)










Date : 30th May 2019 DIN:- 06821349

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Particulars

Reserves & Surplus

Securities

Premium

General

Reserve

Retained

Earnings

Total

Other Equity

(A) CASH FLOW FROM OPERATING ACTIVITIES :

Profit/(Loss) before tax and exceptional items 120,933,334 (506,003,982)

Adjustments for :

Depreciation and amortisation expense 39,387,263 39,356,271

Finance costs (inculding fair value changes in financial instruments) 70,241,039 1,927,019

Bad debt written off (Net off reversal of provision) - 427,208,974

Fair value Loss on investment 3,029 63,624

Loss on property, plant and equipments sold/discarded 82,019 49,932

Interest Income (inculding fair value changes in financial instruments) (1,507,943) (5,886,320)

Dividend Income - (34,000)

108,205,407 462,685,500

Operating Profit/Loss before working capital changes 229,138,741 (43,318,482)

Movements in working Capital

(Increase)/decrease in financial assets and other assets 3,133,584 21,823,818

(Increase)/decrease in trade receivables 34,095,675 (122,331,644)

(Increase)/decrease in inventories 11,183,195 45,989,075

Increase/(decrease) in other liabilities, financial liabilities and provisions (378,085,395) 174,574,820

(329,672,941) 120,056,069

Cash generated from operations (100,534,200) 76,737,587

Direct taxes paid/payable (1,902,499) (9,872,866)

Cash flow before exceptional items

Exceptional items - 255,560,561 - 207,078

Net Cash (used in)/generated from operating activities (A) 153,123,862 67,071,799

(B) CASH FLOW FROM INVESTING ACTIVITIES :

Purchase Investment / Re-investment of Dividend - (34,000)


Sale of Fixed Asset 100,000 365,001

Purchase of Fixed Assets and change in Capital Work-in-progress (11,339,817) (16,162,388)

Interest Income 1,477,226 5,981,609

Net Cash (used in)/generated from investing activities (B) (9,762,591) (9,815,778)

(C) CASH FLOW FROM FINANCING ACITIVITIES :

Proceeds/Repayment of Short Term Borrwings (84,209,447) (53,797,162)

Interest Cost (Net of Reversal) (70,241,039) (1,927,019)

(Investment)/Maturity of bank deposits (6,180,837) 16,400,000

Net Cash flow from financing activities (C) (160,631,323) (39,324,181)

Net increase in cash and cash equivalent (A+B+C) (17,270,052) 17,931,840

Cash and cash equivalents (Opening) 18,717,340 785,500

Cash and cash equivalents (Closing) 1,447,288 18,717,340








-



Date : 30th May 2019 DIN:- 06821349

Page 91

As per the recent amendment by MCA in “IND AS-7 Statement of Cash Flows: Disclosure initiative” effective from 1st April, 2017 disclosure of change in liabilities

arising from financing activities, does not have any material non-cash changes.

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 31ST MARCH 2019

All amounts in Rupees, unless otherwise stated

PARTICULARSYear Ended

31-03-2019

Year Ended

31-03-2018



Annual Report 2018-19 Notes to Consolidated Financial Statements of Real Strips Limited for the year ended 31

st March, 2019

1. CORPORATE INFORMATION:

The consolidated financial statements compriseconsolidated financial statements of Real Strips Limited (the "Company") and its

subsidiary(collectively the "Group") for the year ended 31st March, 2019. Its shares are listed on Bombay Stock Exchange.The Company is a

publicGroup domiciled in India and incorporated under the provisions of the Companies Act, 1956. The Group is engaged in the business of

manufacturing,Job-work and trading of Cold rolled stainless strips/coils.

The consolidated financial statements were authorized for issue in accordance with a resolution passed in Board Meeting held on 30th May 2019.

2. BASIS OF PREPARATION:

The consolidated financial statements of the Grouphave been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under

the Companies (Indian Accounting Standards) Rules, 2015, (as amended from time to time) and presentation requirements of Division II of

Schedule III to the Companies Act, 2013, (Ind AS compliant Schedule III), as applicable to the consolidated financial statements.

The consolidatedfinancial statements have been prepared on a historical cost basis, except for certain financial assets and liabilities which have

been measured at fair value. Refer accounting policy regarding financial instruments.

Certain comparative figures appearing in these financial statements have been regrouped and/or reclassified to better reflect the nature of those

items.

The consolidated financial statements are presented in Rupees and all values are rounded to the nearest Rupees, except where otherwise

indicated.

2.1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:

A. PRINCIPLES OF CONSOLIDATION

The consolidated financial statements comprise the consolidated financial statements of the Company and its subsidiary company i.e. Hriday

Stainless Private Limited (domestic Company), for the year ended 31st March, 2019. In the preparation of consolidated financial statements,

investment in subsidiary has been accounted for in accordance with Ind AS 110 on 'Consolidated financial statements (CFSs)'. Consolidated

financial statementshave been prepared on the following basis:

i) Subsidiary is fully consolidated from the date of incorporation, being the date on which the Company obtains control, and continues to

be consolidated until the date that such control ceases (including through voting rights). Subsidiary has been consolidated on a line-

by-line basis by adding together the book values of the like items of assets, liabilities, income and expenses after eliminating all

significant intra-group balances and intra-group transactions. The unrealized profits resulting from intra-group transactions that are

included in the carrying amount of assets are eliminated in full.

ii) Financial statements of the subsidiary are prepared for the same reporting year as the parent company, using consistent accounting

policies. As far as possible, the consolidated financial statements have been prepared using uniform accounting policies, consistent

with the Company‟s stand-alone financial statements for like transactions and other events in similar circumstances and are

presented, to the extent possible, in the same manner as the Company's standalone financial statements. Any deviation in accounting

policies is disclosed separately.

iii) The subsidiary considered in the consolidated financial statements is:

Name of the Group Country of Incorporation % of Ownership Interest as at 31st March, 2019

Hriday Stainless Private Limited India 99.99%

B. CURRENT VERSUS NON-CURRENT CLASSIFICATION:

The Group presents assets and liabilities in the Consolidated Balance Sheet based on current/non-current classification.

An asset is treated as current when it is:

• Expected to be realised or intended to be sold or consumed in the normal operating cycle;

• Held primarily for the purpose of trading;

• Expected to be realised within twelve months after the reporting period; or

• Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

• It is expected to be settled in the normal operating cycle;

• It is held primarily for the purpose of trading;

• It is due to be settled within twelve months after the reporting period; or

• There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period.

The Group classifies all other liabilities as non-current.

Deferred Tax assets and liabilities are classified as non-current.

The operating cycle is the time between acquisition of assets for processing and their realisation in cash and cash equivalents. The Group has

identified twelve months as its operating cycle.

C. FOREIGN CURRENCIES:

The Group‟s consolidated financial statements are presented in Rupees, which is also the Group‟s functional currency.

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Transactions and balances

Transactions in foreign currencies are initially recorded in the Group‟s functional currency at the exchange rates prevailing on the date the

transaction first qualifies for recognition.

Monetary assets and liabilities denominated in foreign currencies are restated in the functional currency at the exchange rates prevailing on the

reporting date of financial statements.

Exchange differences arising on settlement of such transactions and on translation of monetary items are recognised in the Consolidated

Statement of Profit and Loss.

Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange rates on the dates of

the initial transactions.

D. FAIR VALUE MEASUREMENT:

The Group measures financial instruments, at fair value at each Balance Sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at

the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability

takes place either:

- In the principal market for the asset or liability, or

- In the absence of a principal market, in the most advantageous market for the asset or liability

The principal or the most advantageous market must be accessible by the Group.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability,

assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant‟s ability to generate economic benefits by using the

asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use.

The Group uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value,

maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statementsare categorised within the fair value hierarchy,

described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

- Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly

observable.

- Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Group determines whether transfers have

occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value

measurement as a whole) at the end of each reporting period.

The Group's Management determines the policies and procedures for both recurring fair value measurement, such as unquoted financial assets

measured at fair value, and for non-recurring fair value measurement.

External valuers are involved for valuation of significant assets, such as properties and unquoted financial assets, and significant liabilities, such

as contingent consideration. Involvement of external valuers is decided upon annually by the Management after discussion with and approval by

the Group‟s Audit Committee. Selection criteria include market knowledge, reputation, independence and whether professional standards are

maintained. The Management decides, after discussions with the Group‟s external valuers, which valuation techniques and inputs to use for each

case.

At each reporting date, the Management analyses the movements in the values of assets and liabilities which are required to be remeasured or

re-assessed as per the Group‟s accounting policies. For this analysis, the Management verifies the major inputs applied in the latest valuation by

agreeing the information in the valuation computation to contracts and other relevant documents.

The Management, in conjunction with the Group‟s external valuers, also compares the change in the fair value of each asset and liability with

relevant external sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Group has determined classes of assets and liabilities on the basis of the nature, characteristics

and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarises accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

-Disclosures for valuation methods, significant accounting judgements, estimates and assumptions.

-Quantitative disclosures of fair value measurement hierarchy.

-Financial instruments (including those carried at amortised cost).

E. PROPERTY, PLANT AND EQUIPMENT (PPE):

Property Plant Equipment and Capital work in progress are stated at cost, net of accumulated depreciation and accumulated impairment losses,

if any. The cost comprises purchase price and borrowing costs if capitalization criteria are met, the cost of replacing part of the fixed assets and

directly attributable cost of bringing the asset to its working condition for the intended use. Each part of an item of property, plant and equipment

with a cost that is significant in relation to the total cost of the item is depreciated separately. This applies mainly to components for machinery.

When significant parts of fixed assets are required to be replaced at intervals, the Group recognizes such parts as individual assets with specific

useful lives and depreciates them accordingly. Likewise, when a major overhauling is performed, its cost is recognized in the carrying amount of

the PPE as a replacement if the recognition criteria are satisfied. Any trade discounts and rebates are deducted in arriving at the purchase price.

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Subsequent expenditure related to an item of property, plant and equipment is added to its book value only if it increases the future benefits from

the existing asset beyond its previously assessed standard of performance. All other expenses on existing property, plant and equipment,

including day-to-day repair and maintenance expenditure and cost of parts replaced, are charged to the Consolidated Statement of Profit and

Loss for the period during which such expenses are incurred.

An item of property, plant and equipment acquired inexchange for a non-monetary asset is measured at fair value unless (a) the exchange transaction lacks commercial substance or (b) the fair value of neither the asset received nor the asset given up is reliably measurable.

CWIP comprises of cost of property, plant and equipment that are yet not installed and not ready for their intended use at the Balance Sheet date.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and

adjusted prospectively, if applicable.

The Group calculates depreciation on items of property, plant and equipment on a straight-line basis, using the rates arrived at based on the

useful lives defined under Schedule II of the Companies Act, 2013, except in respect of following fixed assets:

- Building, Furniture & Fixtures and Computers are depreciated on the Written Down Method over the useful life of Assets as defined in Schedule

II of the Companies Act, 2013.

An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected from its use or

disposal. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying

amount of the asset) is included in the Consolidated Statement of Profit and Loss when the asset is derecognised.

F. INTANGIBLE ASSETS:

Intangible Assets acquired separately are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at

cost, less any accumulated amortisation and accumulated impairment losses, if any.

Intangible assets in the form of software are amortised on a straight-line basis over six years. The amortisation period and the amortisation

method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful

life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortisation period or

method, as appropriate, and are treated as changes in accounting estimates. The amortisation expense on intangible assets with finite lives is

recognised in the Consolidated Statement of Profit and Loss.

Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds and the

carrying amount of the asset and are recognised in the Consolidated Statement of profit or loss when the asset is derecognised.

G. IMPAIRMENT OF NON-FINANCIAL ASSETS:

The Group assesses at each reporting date whether there is any indication that an asset may be impaired. If any such indication exists, the

Group estimates the recoverable amount of the asset. If such recoverable amount of the asset is less than its carrying amount, the carrying

amount is reduced to its recoverable amount. The reduction is treated as an impairment loss and is recognized in the Consolidated Statement of

Profit and Loss. If at the reporting date there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount

is reassessed and the asset is reflected at the recoverable amount subject to a maximum of depreciated historical cost.

H. 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.

I. LEASES:

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease.

The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the

arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

Group as a lessee:

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards

incidental to ownership to the Group is classified as a finance lease. A leased asset is depreciated over the useful life of the asset.

Operating lease payments are recognised as an expense in the Consolidated Statement of Profit and Loss on a straight-line basis over the lease

term.

J. FINANCIAL INSTRUMENTS:

A Financial instrument is any contract that gives rise to a financial asset of one entity and financial liability or equity instrument of another entity.

Financial assets


All financial assets are recognised initially at fair value plus in the case of financial assets not recorded at fair value through Consolidated

Statement of Profit and Loss, transaction costs that are attributable to the acquisition of the financial asset.


For purposes of subsequent measurement, financial assets are classified in three categories:

- Debt instruments - measured at amortised cost.

- Debt instruments, and equity instruments - measured at fair value through Consolidated Statement of Profit and Loss (FVTPL).

- Equity instruments - measured at fair value through other comprehensive income (FVTOCI).

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Debt instruments at amortised cost

A“debt instrument”is measured at the amortised cost if both the following conditions are met:

a. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows, and

b. 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.

This category is the most relevant to the Group. 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 Consolidated Statement of Profit and Loss. The losses arising from impairment are recognised in the Consolidated Statement of Profit and Loss. This category generally, applies to trade, loans and other receivables.

Debt instrument at FVTPL

FVTPL is a residual category for debt instruments. Any debt instrument, which does not meet the criteria for categorization at amortized cost or as FVTOCI, is classified as at FVTPL.

Debt instruments included within the FVTPL category are measured at fair value with all changes recognized in the Consolidated Statement of Profit and Loss.

Equity investments

All equity investments in scope of Ind AS 109 are measured at fair value. For all other equity instruments, the Group may make an irrevocable

election to present in other comprehensive income subsequent changes in the fair value. The Group makes such election on an instrument-by

instrument basis. The classification is made on initial recognition and is irrevocable

If the Group decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument, excluding dividends, are

recognized in the other comprehensive income (OCI). There is no recycling of the amounts from OCI to Consolidated Statement of Profit and

Loss, even on sale of investment. However, the Group may transfer the cumulative gain or loss within equity.

Equity instruments included within the FVTPL category are measured at fair value with all changes recognized in the Consolidated Statement of

Profit and Loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial assets) is primarily derecognised (i.e.

removed from the Group‟s Balance Sheet) when:

- The rights to receive cash flows from the asset have expired, or

- The Group 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 Group has transferred substantially all the risks and

rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred

control of the asset.

When the Group 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 Group continues to recognise the transferred asset to the extent of the Group‟s

continuing involvement. In that case, the Group 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 Group 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 Group could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109, the Group applies expected credit loss (ECL) model for measurement and recognition of impairment loss on the

following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits, trade receivables and

bank balance.

b) Financial guarantee contracts which are not measured at FVTPL.

The Group follows „simplified approach‟ for recognition of impairment loss allowance on Trade receivables. Under the simplified approach the

Group does not track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right

from its initial recognition.

For recognition of impairment loss on other financial assets and risk exposure, the Group determines that whether there has been a significant

increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment

loss. However, if credit risk has increased significantly, lifetime ECL is used.

ECL is the difference between all contractual cash flows that are due to the Group in accordance with the contract and all the cash flows that the

entity expects to receive, discounted at the original EIR. ECL impairment loss allowance (or reversal) recognized during the period is recognized

as income/ expense in the Consolidated Statement of Profit and Loss. This amount is reflected under the head „other expenses‟ in the

Consolidated Statement of Profit and Loss.

The Balance Sheet presentation for various financial instruments is described below:

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Financial assets measured at amortised cost:

ECL is presented as an allowance, i.e., as an integral part of the measurement of those assets in the Consolidated Balance Sheet. The

allowance reduces the net carrying amount. Until the asset meets write-off criteria, the Group does not reduce impairment allowance from the

gross carrying amount.

For assessing increase in credit risk and impairment loss, the Group combines financial instruments on the basis of shared credit risk

characteristics with the objective of facilitating an analysis that is designed to enable significant increases in credit risk to be identified on a timely

basis.



Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through Consolidated Statement of Profit and Loss, loans

and borrowings, payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable

transaction costs.

The Group‟s financial liabilities include trade and other payables, loans and borrowings including cash credit facilities from banks.


The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through Consolidated Statement of Profit and Loss.

Financial liabilities at fair value through Profit and Loss include financial liabilities held for trading and financial liabilities designated upon initial

recognition 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. This category also includes derivative financial instruments entered into by the Group that are not designated as

hedging instruments in hedge relationships as defined by Ind AS 109.

Gains or losses on liabilities held for trading are recognised in the Consolidated Statement of Profit and Loss.

Financial liabilities designated upon initial recognition at fair value through Consolidated Statement of Profit and 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 is recognized in OCI. This gains/ loss is not subsequently transferred to Consolidated Profit and Loss.

However, the Group may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are recognised in the

Consolidated Statement of Profit and Loss. The Group has not designated any financial liability at FVTPL.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR method. Gains and

losses are recognised in Consolidated Statement of profit and 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 Consolidated Statement of Profit and Loss.

This category generally applies to borrowings.

K. INVENTORIES:

Inventories are valued at the lower of cost and net realisable value after providing for obsolescence and other losses, wherever considered

necessary. However, materials and other items held for use in the production of inventories are not written down below cost if the finished

products in which they will be incorporated are expected to be sold at or above cost. Scrap is valued at net realisable value. Cost is determined

on a First-in-First-Out method.

Cost includes direct materials and labour and a proportion of manufacturing overheads based on normal operating capacity, incurred in bringing

them in their respective present location and condition.

Net realizable value is the estimated selling price in the ordinary course of business less estimated cost of completion and the estimated costs

necessary to make the sale.

L. REVENUE FROM CONTRACT WITH CUSTOMERS:

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the group and the revenue can be reliably

measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable,

taking into account contractually defined terms of payment and excluding taxes or duties collected on behalf of the government. The group has

concluded that it is the principal in all of its revenue arrangements since it is the primary obligor in all the revenue arrangements as it has pricing

latitude and is also exposed to inventory and credit risks.

However, sales tax/ value added tax (VAT)/ Goods and Service tax (GST) is not received by the group on its own account. Rather, it is tax

collected on value added to the commodity by the seller on behalf of the government. Accordingly, it is excluded from revenue. The specific

recognition criteria described below must also be met before revenue is recognised

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Sale of Goods:

Revenue is recognized when a promise in a customer contract (performance obligation) has been satisfied by transferring control over the

promised goods to the customer. Control over a promised good refers to the ability to direct the use of, and obtain substantially all of the

remaining benefits from, those goods. Control is usually transferred upon shipment, delivery to, upon receipt of goods by the customer, in

accordance with the delivery and acceptance terms agreed with the customers. The amount of revenue to be recognised (transaction price) is

based on the consideration expected to be received in exchange for goods, excluding amounts collected on behalf of third parties such as sales

tax or other taxes directly linked to sales. If a contract contains more than one performance obligation, the transaction price is allocated to each

performance obligation based on their relative stand-alone selling prices. Revenue from product sales are recorded net of allowances for

estimated rebates, cash discounts and estimates of product returns, all of which are established at the time of sale.

Variable Consideration:

If the consideration in a contract includes a variable amount, the Group estimates the amount of consideration to which it will be entitled in

exchange for transferring the goods to the customer. The variable consideration is estimated at contract inception and constrained until it is highly

probable that a significant revenue reversal in the amount of cumulative revenue recognised will not occur when the associated uncertainty with

the variable consideration is subsequently resolved.

The Group accounts for pro forma credits, refunds of duty of customs or excise, or refunds of sales tax in the year of admission of such claims by

the concerned authorities. Benefits in respect of Export Licenses are recognised on application. Export benefits are accounted for as other

operating income in the year of export based on eligibility and when there is no uncertainty on receiving the same.

Dividends:

Dividend is recognized when the Group‟s right to receive the payment is established, which is generally when shareholders approve the dividend.

Interest income and expense:

Interest Income is recognized on time proportion basis taking into account the amounts outstanding and the rates applicable. Interest income is

included under the head “other income” in the Statement of Profit and Loss

Revenue from Windmills

Revenue from windmills is recognised on unit generation basis, in accordance with the terms of power purchase agreements.

Contract balance

Contract assets:

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the group performs by transferring

goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognised for the earned

consideration that is conditional.

Trade receivables:

A receivable represents the Group‟s right to an amount of consideration that is unconditional (i.e., only the passage of time is required before

payment of the consideration is due).

Contract liabilities(Advance from customers):

A contract liability is the obligation to transfer goods or services to a customer for which the group has received consideration (or an amount of

consideration is due) from the customer. If a customer pays consideration before the group transfers goods or services to the customer, a

contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities(Advance from

customers)are recognised as revenue when the group performs under the contract.

Refund liabilities:

A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and is measured at the

amount the group ultimately expects it will have to return to the customer. The group updates its estimates of refund liabilities (and the

corresponding change in the transaction price) at the end of each reporting period.

M. RETIREMENT AND OTHER EMPLOYEE BENEFITS:

Retirement benefits in the form of provident fund and superannuation fund are defined contribution plans. The Group has no obligation, other

than the contributions payable to provident fund and superannuation fund. The Group recognises contribution payable to these funds as an

expense, when an employee renders the related service.

In respect of gratuity liability, the Group operates defined benefit plan wherein contributions are made to a separately administered fund. The

costs of providing benefits under this plan are determined on the basis of actuarial valuation at each reporting date being carried out using the

projected unit credit method.

Re-measurements, comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net

defined benefit liability and the return on plan assets (excluding amounts included in net interest on the net defined benefit liability), are

recognised immediately in the Consolidated Balance Sheet with a corresponding debit or credit to retained earnings through OCI in the period in

which they occur. Re-measurements are not reclassified to Consolidated Statement of profit and loss in subsequent periods.

Net interest is calculated by applying the discount rate to the net defined benefit liability or asset. The Group recognises the following changes in

the net defined benefit obligation as an expense in the Consolidated Statement of Profit and Loss:

• Service costs comprising current service costs; and

• Net interest expense or income

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The liability in respect of unused leave entitlement of the employees as at the reporting date is determined on the basis of a management

estimation carried out and the liability is recognized in the Consolidated Statement of Profit and Loss. The Gain and loss is recognised in full in

the period in which they occur in the Consolidated Statement of Profit and Loss.

N. TAXES:

Tax expense comprises of current income tax and deferred tax.

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.

Current income tax relating to items recognised outside the Consolidated Statement of Profit and Loss is recognised outside the Consolidated

Statement of Profit and 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:

► 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.

► In respect of taxable temporary differences associated with investments in subsidiaries, 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 recognized 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 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.

► In respect of deductible temporary differences associated with investments in subsidiaries, deferred tax assets are recognised only to the

extent that it is probable that the temporary differences will reverse in the foreseeable future and taxable profit will be available against which the

temporary differences can be utilised.

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.

Deferred tax relating to items recognised outside the Consolidated Statement of Profit and Loss is recognised outside the Consolidated

Statement of Profit and Loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the

underlying transaction either in OCI or directly in equity.

O. PROVISIONS:

Provisions are recognised when the Group 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. When the Group expects some or all of a provision to be reimbursed, the reimbursement is recognised as a separate asset, but

only when the reimbursement is virtually certain. The expense relating to a provision is presented in the Consolidated Statement of Profit and

Loss net of any reimbursement.

P. EARNINGS PER SHARE

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average

number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the net profit for the period attributable to equity shareholders and the weighted

average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares, if any.

Q. CASH AND CASH EQUIVALENT:

Cash and cash equivalents in the Consolidated Balance Sheet comprise cash at banks and in hand and short-term deposits with an original

maturity of three months or less, which are subject to an insignificant risk of charges in value.

For the purpose of the consolidated statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined

above.

R. CASH DIVIDEND

The Group recognises a liability to make cash or non-cash distributions to equity holders of the Group when the distribution is authorised and the

distribution is no longer at the discretion of the Group. As per the Companies Act, 2013, a distribution is authorised when it is approved by the

shareholders. A corresponding amount is recognised directly in equity.

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S. 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 group 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 group does not recognize a contingent liability but discloses its

existence in the financial statements.

2.2 SIGNIFICANT ACCOUNTING ESTIMATES AND ASSUMPTIONS:

The preparation of the Group's financial statements requires management to make judgements, estimates and assumptions that affect the

reported amounts of revenues, expenses, assets and liabilities, and the 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 Group

based its assumptions and estimates on parameters available when the consolidated 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 Group. Such changes are reflected in the assumptions when they occur.

Defined benefit plans (gratuity benefits)

The cost of the defined benefit gratuity plan and the present value of the gratuity obligation are determined using actuarial valuation. 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 highly 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 currencies consistent with the currencies of the post-employment benefit

obligation.

The mortality rate is based on publicly available mortality tables for India. 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 for India.

Page 99

3 Property, Plant and Equipment

(Amount In Rupees)

Particulars Freehold Land Building Plant &

Machinery

Computer &

Peripherals

Furniture &

fixture Vehicles

Office

equipment Total

As at 1st April, 2017 943,946 76,413,976 454,248,685 315,228 2,299,498 3,416,809 35,138 537,673,280

Additions - 1,278,555 16,877,718 88,200 106,618 - - 18,351,091


As at 31st March, 2018 943,946 77,692,531 471,126,403 403,428 2,406,116 2,515,806 35,138 555,123,368

Additions - - 9,305,976 - 185,484 620,396 - 10,111,856


As at 31st March, 2019 943,946 77,692,531 480,432,379 403,428 2,591,600 2,546,055 35,138 564,645,077

Depreciation and Impairment

As at 1st April, 2017 - 7,396,039 30,650,307 125,976 529,995 864,930 - 39,567,247


Deductions - - - - - 486,070 - 486,070

As at 31st March, 2018 - 14,052,936 62,013,557 236,233 938,547 1,001,098 - 78,242,371


Deductions - - - - - 408,128 - 408,128

As at 31st March, 2019 - 20,514,802 94,076,449 282,408 1,259,739 989,550 - 117,122,948

Net Block

As at 31st March, 2019 943,946 57,177,729 386,355,930 121,020 1,331,861 1,556,505 35,138 447,522,129

As at 31st March, 2018 943,946 63,639,595 409,112,846 167,195 1,467,569 1,514,708 35,138 476,880,997

4 Intangible Assets

(Amount In Rupees)

Particulars Software

Cost

As at 1st April, 2017 789,931


As at 31st March, 2018 789,931


As at 31st March, 2019 789,931

Amortization and Impairment

As at 1st April, 2017 293,735


As at 31st March, 2018 488,812


As at 31st March, 2019 587,370

Net Block

As at 31st March, 2019 202,561

As at 31st March, 2018 301,119

Page 100

Cost

(a) Cost of the Property, Plant & Equipments includes carrying value recognised as deemed cost as of 1st April 2016, measured as per previous GAAP and cost of subsequent

additions.

(b) No borrowing costs are capitalised on Property Plant and Equipment during the current and previous years as the company has not borrowed fund for the purpose of

acquisition of Property Plant and Equipment.

Notes to Consolidated financial statements for the year ended 31st March`2019


(Amount In Rupees)

5

96,460 94,846

301,041 305,684

397,501 400,530

344,990 344,990

(Amount In Rupees)

6

160,427 129,710

9,793,102 9,419,306

9,953,529 9,549,016

Current 160,427 129,710

Non-Current 9,793,102 9,419,306

9,953,529 9,549,016

(Amount In Rupees)

7 Other Assets

Unsecured, Considered Good

Contract Assets 19,878,769 36,100,000

Capital advances 1,500,000 500,000

Investment in silver 19,380 19,380

Prepaid expense 5,619,751 4,303,335

Advance receivable in cash or kind

Advance for material and others 4,860,812 816,121

Balances with Government Authorities 16,724,455 16,909,650

Income Tax & MAT Credit 32,757,651 31,102,472

Gratuity Fund with SBI Life Insurance Company Limited 1,547,884 2,035,127 82,908,702 91,786,085

Current 81,389,322 91,266,705

Non-Current 1,519,380 519,380

82,908,702 91,786,085

(Amount In Rupees)

8 Inventories

2,935,151 16,109,124

43,427,214 56,757,513

21,243,441 11,288,661

8,196,336 2,830,039

75,802,142 86,985,337

Page 101

REAL STRIPS LIMITED Annual Report 2018-19


Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

1009 (31st March 2018: 1009 ) Equity Shares of Union Bank of India of Rs.10/- each

22484.236 (31st March 2018: 22484.236) units of SBI Infrastructure Fund-Regular Plan-

Dividend of Rs. 10/- each

Total Investments measured at Fair Value Through Profit and Loss

In Equity Shares of Other Companies ( Fully Paid Up)

In Mutual Funds

Investments

Aggregate book value of Quoted Investments

a. Raw materials

As at

31-03-2019

Note

No. Particulars

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

As at

31-03-2018

Investments measured at Fair Value Through Profit and Loss (Quoted)

d. Stores and spares

As at

31-03-2018

Total

Note

No. Particulars

As at

31-03-2019

b. Work-in-progress

c. Finished goods

Total

Total

Other Financial Assets

Interest acrrued but not due on Margin Money Deposits & others

Security deposits

Total

Total

(Amount In Rupees)

9 (A) Trade Receivables from other Parties

- Unsecured, considered good 67,878,352 162,352,460

(B) Due from Related Parties

Unsecured, considered good

60,378,433 -

128,256,785 162,352,460

Reconciliation of Allowance for doubtful debts (Amount In Rupees)

Balance at the beginning of the year - (95,032,420)

Add: Allowance for the year - -

(Less): Reversal of the provision during the year - 95,032,420

Balance at the end of the year - -

(Amount In Rupees)

10 Cash and Cash Equivalents

Balances with Banks

- In Current accounts 847,618 18,060,287

Cash in Hand 599,670 657,053

1,447,288 18,717,340

(Amount In Rupees)

11 Other Bank Balances

- Unpaid dividend accounts 183,304 264,999

Balances with Banks

8,280,837 2,100,000

8,464,141 2,364,999

Current 8,464,141 2,364,999 8,464,141 2,364,999

Deposit with Maturity more than 3 months but less than 12 months 8,280,837 2,100,000

Total 8,280,837 2,100,000

(Amount In Rupees)

12 Loans

(Unsecured, Considered Good)

Current

Staff Advance to Employees 72,100 146,918

Staff Advance to Key Managerial Personnel 7,500,000 -

Staff Advance to Relative of Key Managerial Personnel 600,000 -

8,172,100 146,918

Page 102


Note

No. Particulars

Note

No. Particulars

As at

31-03-2019

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

- Enterprises owned or Significantly influenced by key management personnel or their

relative

Particulars As at

31-03-2019

As at

31-03-2018

Total

As at

31-03-2018

As at

31-03-2018

As at

31-03-2019

As at

31-03-2018

Note

No. Particulars

As at

31-03-2019

Total

Total

- Fixed Deposits with Banks (Given as Security against Bank guarantee and Letter of credit)

Total

Total



13 Equity share capital

(A) Authorized Share Capital:

( Equity Shares of Rs. 10 Each)

At the beginning of the year 12,000,000 120,000,000 12,000,000 120,000,000



(Preference Shares of Rs. 10 Each)

At the beginning of the year 500,000 5,000,000 500,000 5,000,000


Equity Shares at the end of the year 500,000 5,000,000 500,000 5,000,000

Issued, subscribed and paid up:

(Equity Shares of Rs. 10 Each)At the beginning of the year

(Refer Note (e) below) 5,980,000 59,750,000 5,980,000 59,750,000



a

5,980,000 5,980,000

- -

5,980,000 5,980,000

b

c

d

e

14

(i) Capital Reserve (Government Subsidy)

As at 1st April 2017 1,500,000


As at 31st March 2018 1,500,000


As at 31st March 2019 1,500,000

(ii) Capital Reserve (Reduction of Loan on Settlement with Banks)

As at 1st April 2017 -


As at 31st March 2018 -

Increase/(decrease) during the year 196,489,860

As at 31st March 2019 196,489,860

(iii) Securities Premium

As at 1st April 2017 108,700,000


As at 31st March 2018 108,700,000


As at 31st March 2019 108,700,000

(iv) General Reserves

As at 1st April 2017 75,000,000


As at 31st March 2018 75,000,000


As at 31st March 2019 75,000,000

(v) Retained Earnings

As at 1st April 2017 (512,339,342)

Add:- (Loss) for the Year (506,083,050)

Other Comprehensive Income (Re-measurement Gain on defined

benefit plans)

893,059

As at 31st March 2018 (1,017,529,333)

Add:- Profit for the Year 422,458,930

Other Comprehensive Income (Re-measurement Gain on defined

benefit plans)

263,662

As at 31st March 2019 (594,806,741)

Total Other Equity

As at 31st March 2018 (832,329,333)

As at 31st March 2019 (213,116,881)

Nature and purpose of other equity

(i)

(ii)

(iii)

(iv) General Reserve

Page 103

Other equity

Capital Reserve (Reduction of Loan on Settlement with Banks)

Increase/ (Decrease) during the year

In the event of liquidation of the company, the holder 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.

There were no shares reserved at year-end for issue under options and contracts/commitments for the sale of shares/ disinvestment

As per records of the Company, including its register of shareholders/ members and other declarations received from shareholders regarding beneficial interest, the above shareholding

represents legal ownerships of shares.The Company has call in arrears / unpaid calls of Rs. 50,000/-(31st March 2018: Rs 50,000 ) and has not forfeited any shares at balance sheet date.

The company has only one class of equity shares having a face value of Rs 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pay

dividends in Indian rupees. During the year ended 31st March 2019, the amount of per share dividend recognized as distributions to equity shareholders was Rs Nil (31st March 2018: Rs

Nil).

Share Holders Holding more than 5% of the shares as at 31-03-2019- Nil (31-03-2018: Rs Nil )

Particulars

A reconciliation of the number of equity shares outstanding at the beginning and at the end of the reporting Year.

As at 31-03-2019

Numbers

As at 31-03-2018

Numbers

Rights, preference and restriction attached to Equity Shares

Particulars

Shares outstanding at the beginning of the year

Shares outstanding at the end of the year

Amount in RupeesNumber of SharesAmount in RupeesNumber of Shares


Securities Premium is used to record the premium on issue of shares. The reserve is utilized in accordance with the provisions of the Companies Act, 2013.

General Reserve is a free reserve and is available for distribution as dividend, issue of bonus shares, buyback of the company's securities. It was created by transfer of amounts out of

distributable profits.

Particulars Amount in Rupees

Capital Reserve (Government Subsidy)

Capital Reserve is not available for distribution of profits.

Capital Reserve created on account of settlement with Banks. Capital Reserve is not available for distribution of profits.

Securities Premium


(Amount In Rupees)

15 Borrowings

Long term Borrowing from Bank

Rupee Term Loan [Refer below Note] - 59,050,532

- (59,050,532)

- -

Short term Borrowings from Bank

Working Capital Loans - [Refer below Note] - 958,899,761

Unsecured Loan (Repayable on Demand)

Deposits/Loan From Corporates (Including Interest) 770,350,653 12,430,000

Deposits/Loan From Directors 12,300,000 27,300,000

Deposits/Loan From Others - 5,000,000

Total 782,650,653 1,003,629,761

Current 782,650,653 1,003,629,761

782,650,653 1,003,629,761

a

b

c

(Amount In Rupees)

16 Deferred Tax Liability/ (Deferred Tax Assets)*

Opening Balance 46,089,100 46,089,100

Add: Deferred tax assets 6,380 -

(Less):- Reversal of Deferred Tax Liability -46,089,100 -

6,380 46,089,100

a)

i) Movement in deferred tax Assets (Net) for the year ended 31-03-2019

Particulars

Opening Balance

As at

31-03-2018

To be Recognized

in Profit & Loss

Account*

Closing Balance

As at

31-03-2019


-Property, plant and equipment 62,365,197 (1,325,795) 61,039,402

Total 62,365,197 (1,325,795) 61,039,402


-Asset on expenses allowed in year of payment 2,137,370 (914,949) 1,222,421


under TAX Laws & MAT Credit 345,683,589 (151,106,608) 194,576,981

-Other Adjustments - 6,390 6,390

Total 347,820,959 -152,015,167 195,805,792

Net Deferred Tax Assets 285,455,762 (150,689,372) 134,766,390

ii) Movement in deferred tax Assets (net) for the year ended 31-03-2018

Particulars

Opening Balance

As at

31-03-2017

To be Recognized

in Profit & Loss

Account*

Closing Balance

As at

31-03-2018


-Property, plant and equipment 60,241,493 2,123,704 62,365,197

Total 60,241,493 2,123,704 62,365,197


-Asset on expenses allowed in year of payment 1,256,598 880,772 2,137,370


under TAX Laws & MAT Credit 223,882,010 121,801,579 345,683,589

-Other adjustments 29,365,018 (29,365,018) -

Total 254,503,626 93,317,333 347,820,959

Net Deferred Tax Assets 194,262,133 91,193,629 285,455,762

Page 104


Working Capital facilities from Union Bank of India, State Bank of India and IDBI Bank Limited are secured by way first Pari-Passu charges

over current assets of the company and personal guarantee of some of the directors of the company and said loan is also secured by way of

Second Pari-Passu charges over fixed assets of the company. The said charges have been released by the State Bank of India on 19th March,

2019, Union Bank of India on 28th March, 2019 and IDBI Bank Limited on 1st April, 2019 as the company have repaid entire loan to the

bank as per the term and condition of the One time Settlement.

Term Loan from State Bank of India are secured by way of First charge on Fixed Assets of the company, movable and/or immovable,

present or future situated at Survey No.244, 245 and 247 at : Village : Sari, Taluka : Sanand, District : Ahmedabad (Gujarat) and office

situated at 401-402, "Florence" Opp.Ashram Road P.O., Ashram Road, Ahmedabad - 380009 and Wind Mill situated at Ukhrala

(Dist.Bhavnagar), Gujarat and further said loans are also secured by personal guarantees of some of the Directors of the Company. The said

charges have been released by the Bank as on 19th March, 2019 as the company have repaid entire loan to the bank as per the term and

condition of the One time Settlement.

Less: Current maturity of Long term borrowing

Total

Particulars As at

31-03-2019

As at

31-03-2018 Note

No.

Note

No. Particulars

As at

31-03-2019

Total

As at

31-03-2018

The group offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities

and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Interest on borrowings from Corporate is @ 12% p.a.

Movement in deferred tax Assets working for the year ended are as under:-

*Deferred tax assets have not been recognized, as it is not probable that sufficient taxable income will be available in the future against

which such deferred tax assets can be realized in the normal course of business of the Group and hence deferred tax liability has been

reversed.

Notes to Consolidated financial statements for the year ended 31st March`2019(Amount In Rupees)

17 Trade Payables

Total Outstanding dues of Micro and Small Enterprises (Refer Note i) 2,299,485 -

Total Outstanding dues of Creditors other than micro and small enterprises

64,800 203,947

-Due to key managerial personnel 70,700 -

-Due to key relative of key managerial personnel 48,726 92,459

-Due to other 109,813,463 477,669,304

112,297,174 477,965,710

Current 112,297,174 477,965,710

Total 112,297,174 477,965,710

Note (i)

As at

31-03-2019

As at

31-03-2018

2,299,485 -

- -

b

- -

c

- -

d - -

e

- -

(Amount In Rupees)

18 Other Current Financial Liabilities

Current maturity of Long term borrowings - 59,050,532

Interest Accrued and due on Borrowings - 669,665

Creditors for Capital expenditure 711,077 939,038

Unpaid Dividend# 183,304 264,999

894,381 60,924,234

(Amount In Rupees)

19 Other Current Liabilities

Contract Liability (Advance from Customers) 725,956 4,643,712

Statutory dues payable 15,036,074 21,338,788

Others 25,000 25,000

15,787,030 26,007,500

(Amount In Rupees)

20 Provisions - Provision for Employee Benefits

- Bonus 1,555,346 1,411,045

- Leave Encashment 3,146,274 5,750,628

4,701,620 7,161,673

(Amount In Rupees)

21 Current Tax Liabilities

Provision for Income tax (Refer Note 30) 169,170 286,092

169,170 286,092

Current 169,170 286,092

Total 169,170 286,092

Page 105


a

# not due for credit to "Investors Education and Protection Fund"

Particulars

Principal amount and interest due thereon remaining unpaid to any supplier covered under

MSMED Act:

- Principal

- Interest

The amount of Interest paid by the buyer in terms of section 16, of the MSMED Act, 2006 along

with the amounts of the payment made to the supplier beyond the appointed day during the

each accounting year.

The amount of interest due and payable for the period of delay in making payment (which have

been paid but beyond the appointed day during the year) but without adding the interest

specified under MSMED Act.

The amount of interest accrued and remaining unpaid at the end of the each accounting year

The amount of further interest remaining due and payable even in the succeeding years, until

such date when the interest dues as above are actually paid to the small enterprise for the

purpose of disallowance as a deductible expenditure under section 23 of the MSMED Act, 2006

As at

31-03-2018 Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

As at

31-03-2018

Total

Note

No. Particulars

As at

31-03-2019

As at

31-03-2018

Total

Note

No. Particulars

As at

31-03-2019

Note

No. Particulars

As at

31-03-2019

Note

No. Particulars

As at

31-03-2019

Total

As at

31-03-2018

Total

Total

-Due to enterprises owned or significantly influenced by key management personnel or

their relative

Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprise Development Act, 2006 (MSMED Act)

for the year ended 31st March 2019 and year ended 31st March 2018 is given below. This information has been determined to the extent

such parties have been identified on the basis of information available with the Company.

(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

22 Revenue from operations Revenue from contracts with customers

Sale of Products

- Cold Rolled Stainless Strips/Coils 834,707,160 823,221,247

- Power generated from Wind Mills 47,770,752 48,257,120

Total Sale of products 882,477,912 871,478,367

- Job Work Income 411,241,058 461,825,478

Total Revenue from operations 1,293,718,970 1,333,303,845

i.

ii Disaggregate revenue information

a Total revenue from contracts with customers

- India 1,285,474,862 1,333,303,845

- Outside India 8,244,108 -


b

Goods and Services transferred at a point of time 1,293,718,970 1,333,303,845


iii.

Revenue Reconciliation Year ended

31-03-2019

Year ended

31-03-2018

Revenue as per contracted price 1,295,071,960 1,334,280,114

Less: Adjustments for Discounts & Rebates 1,352,990 976,269

Revenue from Contract with customers 1,293,718,970 1,333,303,845

iv.Contract Balances:

As at

31-03-2019

As at

31-03-2018

Trade Receivable 128,256,785 162,352,460

Contract Liabilities 725,956 4,643,712

Contract Assets 19,878,769 36,100,000

v.

Particulars As at

31-03-2019

As at

31-03-2018

Within One Year 57,500,000 66,100,000

vi.

Particulars Year ended

31-03-2019

Year ended

31-03-2018

Amount of Contract Liability (Including Advance From

Customers) at the beginning of the year

4,643,712 3,147,983

Performance obligation satisfied during the Previous year 1,828,977 1,196,665

vii.

viii.

ix.

Page 106

Set Out below is the amount of revenue recognized from:-



The revenue from operations for part of the financial year ended 31st March 2018 (upto 30 June 2017) are

inclusive of excise duty. As the Goods and Service Tax (“GST”) has been implemented with effect from 1st July

2017 and which replaced excise duty and other input taxes. In view of the said fact the revenue for the part of

the year ended 31st March 2018 is reported net of GST.

Trade receivables are non-interest bearing and are generally on term of 45 days.

Contract assets are initially recognized for revenue earned from job work services as receipt of consideration is

conditional on successful completion of the contract of job work lot. Upon completion of job work lot contract

and acceptance by the customer, the amounts recognized as contract assets are reclassified to trade receivable.

Impact of Ind AS 115

Ind AS 115 "Revenue from Contracts with Customers" is mandatory for reporting periods beginning on or after

1st April 2018 and has replaced existing Ind AS related thereon. The Company has adopted the modified

retrospective approach under the standard. Under this approach, no adjustments were required to be made to

the retained earning as at 1st April 2018. Also the application of Ind AS 115 did not have significant impact on

recognition and measurement of revenue and related items in the financial results for the year 31st March

2019.

Timing of revenue recognition

Reconciliation the amount of Revenue recognized in the statement of Profit and Loss with the contract price:-

Performance Obligation:-


(Amount In Rupees)

Note

No.

Particulars Year ended

31-03-2019

Year ended

31-03-2018

23 Other Income

Interest income on

Bank Deposits 460,004 602,753

Others 1,047,939 5,256,427

Other non-operating income

Bad debts recovered 24,970,958 19,315,022

Lease Rental Income 3,902,456 3,360,000


Other Income* 1,552,087 27,141

Sundry Balances Written Back (Net) 3,697,242 -

Total 35,630,686 28,595,343

(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

24

- Opening Inventory 16,109,124 13,324,024

- Add: Purchases and Other Expenses 647,134,360 856,317,398

663,243,484 869,641,422

- Less: Closing Inventory 2,935,151 16,109,124

Cost of raw materials and components consumed 660,308,333 853,532,298

(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

25 Changes in inventories of finished goods and work-in-

progress

Inventories at the end of the year

-Work in Progress 43,427,214 56,757,513

-Finished Goods 21,243,441 11,288,661

64,670,655 68,046,174

Inventories at the beginning of the year

-Work in Progress 56,757,513 83,993,089

-Finished Goods 11,288,661 14,324,175

68,046,174 98,317,264

(Increase)/Decrease In Inventories

-Work in Progress 13,330,299 27,235,576

-Finished Goods -9,954,780 3,035,514 Total 3,375,519 30,271,090

(Amount In Rupees)

Note

No.

Year ended

31-03-2019

Year ended

31-03-2018

26 Employee Benefits Expenses

Salaries, wages and bonus 83,904,107 120,620,955 Contribution to provident and other funds (Refer Note 31) 5,303,057 4,842,364

Gratuity expense (Refer Note 31) 1,210,450 1,160,768

Staff welfare expenses 2,371,926 2,260,968 Total 92,789,540 128,885,055

Page 107

*Other Income Includes Insurance claim received, Exchange difference and other miscellaneous income.


Cost of raw material consumed and components consumed

Particulars


(Amount In Rupees)

Note

No. Particulars

Year ended

31-03-2019

Year ended

31-03-2018

27 Finance Cost

Bank & Other Loan Interest 69,890,156 608,347

Other Borrowings Cost & Charges 350,883 1,318,672 Total 70,241,039 1,927,019

(Amount In Rupees)

Note

No.

Year ended

31-03-2019

Year ended

31-03-2018

28 Depreciation and amortization expenses

- Depreciation of tangible assets (Refer Note 3) 39,288,705 39,161,194

- Amortization of intangible assets (Refer Note 4) 98,558 195,077 Total 39,387,263 39,356,271

(Amount In Rupees)

Note

No.

Year ended

31-03-2019

Year ended

31-03-2018

29 Other Expense

Consumption of Stores & Spares 88,242,451 120,367,026

Freight & Transport Charges 3,545,070 2,194,375

Power & Fuel 210,985,934 200,658,068

Jobwork Charges 186,929 852,184

Testing Charges 43,527 218,675

Repairs and Maintenance:

Plant and machineries 4,009,308 4,705,477

Buildings 685,697 430,261

Others 1,117,292 2,548,579

Effluent Treatment Expense 5,592,855 5,820,468

Legal & Consultancy Charges 4,897,619 4,005,822

Travelling & Conveyance Expenses 1,086,081 479,683

Insurance 631,919 618,771

Rates & Taxes 216,778 352,076

Auditors' Remuneration (Refer Note No. a) 570,000 574,000

Advertisement & Other Expenses 33,751 60,426

Director's Sitting Fees 74,000 106,000

Postage Telegram & Telephone Expenses 310,128 445,926

Loss on Sale of Plant, Property and Equipment (Net) 82,019 49,932

Increase/(Decrease) in excise duty on finished good - (1,591,575)

Conveyance Expenses 236,359 188,562

Printing & Stationery Expenses 509,721 463,136

Charity and Donations 95,000 97,375

Commission on Sales 2,681,848 2,122,527

Vehicle Expenses 1,794,903 1,899,994

Wind Mill Expesnes 11,170,441 10,245,211

Rent Expesnes 82,408 65,741

Fair value loss on financial instruments at fair value through

profit and loss 3,029 63,624

Bad Debt /Sundry Balance Written Off 522,241,394

Provision/(Reversal) of Doubtful Debt - -95,032,420

Miscelleneous Expesnes 3,429,561 3,093,498

Preliminary Expenses - 40,895

342,314,628 788,385,711

a) Auditors' Remuneration

As Auditor:

- Audit Fee 425,000 425,000

- Other Services* 145,000 149,000

570,000 574,000

*Inculdes Fees of Previous auditor

Page 108

Particulars


Total

Total

Particulars


30 INCOME TAX

i. The Major component of income tax expense for the year ended 31st

March, 2019 & 31st March, 2018 are:

As at

31st March, 2019

As at

31st March, 2018

Current Tax

Current Income Tax 169,170 286,092

Excess provision for current tax of earlier years (38,772) -

Total Current Tax 130,398 286,092

Deferred Tax


Income tax recognised in the Statement of Profit & Loss (45,965,082) 286,092

Other Comprehensive Income (OCI) - -

Deferred tax related to items recognised in OCI during the year

Re-measurement loss on defined benefit Plans - -

Deferred Tax credited to OCI - -

ii.

Profit / (Loss) before Income Tax Expenses 376,493,895 (505,796,904)

Enacted income tax rate in India applicable to the company 26.00% 30.90%

Tax using the Company's domestic tax rate 97,888,413 (156,291,243)

Exempt Income - (10,506)

Income Tax allowances (13,062,493) (46,191,310)

Non-Deductible expenses 11,549,556 14,467,683

Adjustment for Unused Tax Loss (96,289,470) 188,034,869

Adjustment Related to earlier year (38,772) -

Others Adjustment 83,164 276,599


Income tax recognised in the Statement of Profit & Loss (45,965,082) 286,092

Page 109

ParticularsYear Ended

31st March 2019

Reconciliation of tax expense and the accounting profit multiplied by domestic tax rate for the year ended 31st

March, 2019 & 31st March, 2018:

Year Ended

31st March 2018




31 EMPLOYEE BENEFIT OBLIGATIONS

(Amount In Rupees)

31st March, 2019 31st March, 2018Employers’ Contribution to Provident Fund (including contribution to Employees' Pension

Scheme & State Insurance)

5,293,637 4,833,268

Employer's Contribution to Gujarat Labour Welfare 9,420 9,096

B DEFINED BENEFIT PLAN - AS PER ACTUARIAL VALUATION

i. The significant actuarial assumptions were as follows:

Particulars

As at

31 March, 2019

As at

31 March, 2018

Discount rate 8.00% 8.00%

Salary escalation rate 5.00% 5.00%

Mortality rate (as Indian Assured Lives Mortality (2012-14) Ultimate Morality Table) 100.00% 100.00%

Attrition rate 2.00% 2.00%

Average Expected Future Service 25 Years 24.59 Years

ii. The amounts recognized in balance sheet and movements in the net benefit obligation over the year are as follows:(Amount In Rupees)


obligation (A)

Fair value of plan

assets (B)

Net amount

(A-B)

As at 31st March, 2017 6,490,709 8,216,160 (1,725,451) Current service cost 764,906 - 764,906



(Gain)/loss from change in Demographic assumption - experience changes (547,543) - (547,543)

(Gain)/loss from change in financial assumptions (487,257) - (487,257)


Total amount recognized in Other Comprehensive Income (1,063,033) - (1,063,033)

Remeasurement return on assets(Ex. Interest income) - (169,975) 169,975

As at 31st March, 2018 6,668,351 8,703,478 (2,035,127)

(Amount In Rupees)


obligation (A)

Fair value of plan

assets (B)

Net amount

(A-B)

As at 31st March, 2018 6,668,351 8,703,478 (2,035,127)





Total amount recognized in Other Comprehensive Income (254,236) - (254,236)

Remeasurement return on assets(Ex. Interest income) - 9,426 (9,426)

As at 31st March 2019 7,861,298 9,409,182 (1,547,884)

Page 110

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as

supply and demand in the employment market.

The Company operates a defined benefit plan viz. gratuity for its employees. Under the gratuity plan, every employees who has completed at least five years

of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. The Scheme is funded with an insurance company in

the form of qualifying insurance policy. As their are no employee in its subsidiary no provision for gratuity is made.

The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which the

obligation is to be settled. There has been significant change in expected rate of return on assets due to change in the market scenario.

The following table summarize the components of net benefit expenses recognized in the statement of profit and loss in Note No. 26 "Employee Benefit Expenses" :-

ParticularsFor the year ended



(Amount In Rupees)

Present Value of Obligation


Gratuity

Current 1,431,532 1,015,081

Non-Current 6,429,766 5,653,270

Total 7,861,298 6,668,351

Categories of Assets


SBI Life Insurance Company Limited 9,409,182 8,703,478

The major categories of plan assets as a percentage 100% (31st March, 2018 100%)

iii. The net liability disclosed above relates to funded plans are as follows:

Particulars


Present value of funded obligation 7,861,298 6,668,351

Less: Fair value of plan assets 9,409,182 8,703,478

Surplus of funded plan (1,547,884) (2,035,127)

iv. Sensitivity analysis

Summary of Financial & Demographic Assumptions

Scenario DBO Percentage change

Under Base Scenario 7,861,300 0.00%

Salary Escalation-Up by 1% 8,779,265 11.70%

Salary Escalation-Down by 1% 7,079,966 -9.90%

Withdrawal Rates -Up by 1% 8,093,746 3.00%

Withdrawal Rates -Down by 1% 7,593,182 -3.40%

Discount Rates-Up by 1% 7,144,682 -9.10%

Discount Rates-Down by 1% 8,715,435 10.90%

v. Maturity Analysis of benefits payable (Amount In Rupees)

Projected benefits payable in future years from the date of reporting:


1st Following Year 1,431,532 1,015,081

2nd Following Year 423,959 483,024

3rd Following Year 307,754 375,909








Page 111

The above sensitivity analysis is based on a change in assumption while holding all other assumptions constant. In practice, this is

unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit

obligation to significant actuarial assumptions the same method (present value of defined benefit obligation calculated with the

Projected Unit Credit Method at the end of the reporting period) has been applied as when calculating the defined benefit liability

recognized in the balance sheet. The method and types of assumptions used in preparing the sensitivity analysis did not change

compared to the prior period.



32 Contingent Liabilities and Other Commitments

Claims against the group not acknowledged as debts towards:

(Amount In Rupees)

i) Income Tax Matters 6,786,540 -

ii) Service Tax / Excise Matters 3,450,911 3,450,911

iii) Guarantees / Counter Guarantees (including un-

utilized Letters of Credit) 8,280,837 8,280,837

Page 112

ParticularsAs at

31st March, 2019

As at

31st March, 2018



33

a. List of Related Parties

(A) Key Managerial Personnel


(i) Mr. Amritlal K. Kataria Chairman

(ii) Mr. Ugamraj M. Hundia Joint Managing Director

(iii) Mr. Prakashraj S. Jain Joint Managing Director

(iv) Mr. Pawankumar R. Murarka Director

(v) Ms. Alpa Ashesh Shah Director

(vi) Mr. Amol R. Dalal* Director

(vii) Mr. Chetan R. Dalal# Director

(viii) Mr. Ramcharan N. Beriwala@ Executive Director- Finance

(ix) Mr. Pankaj N. Maheshwari Director of Subsidiary Company

(x) Ms. Vinita P. Maheshwari Director of Subsidiary Company

(B) Enterprises owned or Significantly influenced by key management personnel or their relative

(i) S P S Tube Industries

(ii) S P S Autotubes Private Limited

(iii) Platinum Bio Green Energy Limited

(iv) Platinum Spaces

(C) Relative of Key Managerial Personnel


(i) Mr. Deepak U. Hundia Son of Joint Managing Director

(ii) Mr. Romitraj P. Jain Son of Joint Managing Director

Page 113

Related Party Transactions- (As identified by management)

*Mr. Amol R. Dalal ceases to be director with effect from 14th May, 2018 and reappointed as a director with

effect from 17th January, 2019.

# Mr.Chetan R. Dalal appointed as a Director with effect from 14th May, 2018 and ceases to be director with

effect from 18th November, 2018.

@ Mr.Ramcharan N. Beriwala appointed as a Director with effect from 13th February, 2019.



b. Details of Transactions with Related Parties (Amount In Rupees)

Particulars

Transactions During the Year

(i) Sales

-S P S Tube Industries 6,799,590 2,150,378



(ii) Purchases - -

-S P S Tube Industries 1,462,911 360,326


(iii) Salary

-Mr. Deepak U.Hundia 907,000 907,000

-Mr. Romitraj P. Jain 1,107,000 1,107,000

(iv) Director Remuneration (Salary)


(v) Director Sitting Fees

-Mr.Amritlal K. Kataria 16,000 20,000

-Mr. Ugamraj M. Hundia 16,000 20,000

-Mr. Prakashraj S. Jain 14,000 20,000

- Mr.Pawankumar R. Murarka 12,000 12,000

-Ms. Alpa Ashesh Shah 8,000 2,000

-Mr. Amol R. Dalal 2,000 16,000

-Mr. Chetan R. Dalal 6,000 -

-Mr. Pukhraj S. Jain - 10,000

-Mr. Ashish Shah - 6,000

(v) Rent Expenses

-Platinum Spaces 60,000 43,333

(vi) Staff Advance Paid

-Mr. Deepak U.Hundia 900,000

-Mr. Romitraj P. Jain 7,000,000

-Mr. Ramcharan N. Beriwala -

(vii) Staff Advance Recovered

-Mr. Deepak U.Hundia 300,000

-Mr. Romitraj P. Jain 7,000,000

-Mr. Ramcharan N. Beriwala 4,500,000

Outstanding Balances as at year end As at 31st March, 2019 As at 31st March, 2018

(i) Salary Payable

-Mr. Deepak U. Hundia 18,863 69,882

-Mr. Romitraj P. Jain 29,863 22,577


(ii) Unsecured Loan

-Mr.Amritlal K. Kataria 12,200,000 12,200,000

-Mr. Prakashraj S. Jain - 15,000,000

-Mr. Pankaj N. Maheshwari 100,000 100,000

(iii) Trade Receivable

-S P S Tube Industries 187,275 -

-S P S Autotubes Private Limited 398,213 -


(iv) Trade Payables

-S P S Tube Industries - 203,947

-Platinum Spaces 64,800 -

(v) Staff Advance Receivable

-Mr. Deepak U. Hundia 600,000 -


Maximum amount of Staff advance outstanding at any time during the year ended with related parties (Amount In Rupees)

Particulars As at

31st March, 2019

As at

31st March, 2018

Staff Advance to

Key Managerial personnel - Mr. Ramcharan N. Beriwala 12,000,000 -

Relative of Key Managerial personnel - Mr. Deepak U. Hundia 900,000 -

Relative of Key Managerial personnel - Mr. Romitraj P. Jain 7,000,000 -

Page 114

Note: 1. The company has given staff advance to Mr Ramcharan N Bariwala prior to his appointment as Director and the outstanding balance as on

the date of his appointment i.e on 13th February 2019 was Rs 1,20,00,000/-.

2. Outstanding balances at the year end are unsecured and settlement occures in cash. There have been no guarantees provided or received for any

related party receivables or payables. The company has not recorded impairment of receivables relating to amounts owned by related parties. This

assessment is undertaken at each financial year through examining the financial possition of the related party and the market in which the related

party operates.

Ended 31-03-2018Ended 31-03-2019



34 Earning Per Share (EPS)

i) Profit/(loss) of the year (Amount In Rupees) 422,458,977 (506,082,996)

Total No. of Shares for EPS Computation for Basic & Diluted (Nos.) 5,980,000 5,980,000

Earning Per Share (Basic & Diluted) (in Rs.) 70.65 (84.63)

Nominal Value of Share (in Rs.) 10 10

Page 115

Particulars 2018-19 2017-18



35

Summary of segment information is given below:

Primary Reportable Segment (Business Segment)

(Amount In Rupees) (Amount In Rupees)

Sr. No. Particulars 2018-19 2017-18

1 Segment Revenue

(a) Cold Rolled Stainless Strips / Coils 1,245,948,218 1,285,046,725

(b) Windmill 47,770,752 48,257,120

Total 1,293,718,970 1,333,303,845

Less: Inter Segment Revenue 44,424,210 46,986,772

Net Sales / Income from Operations 1,249,294,760 1,286,317,073

2

Segment Results Profit / (Loss) Before Finance Cost, Interest & Other Income and Tax

(a) Cold Rolled Stainless Strips / Coils 413,305,206 (542,185,184)

(b) Windmill 28,159,469 29,530,255

Total 441,464,675 (512,654,929)

Add: Interest & Un-allocable Other Income net off Unallocable Expenditure 5,270,259 8,577,966

Less: Interest & Finance Charges 70,241,039 1,927,019

Profit /(Loss) Before Tax 376,493,895 (506,003,982)

3 Segment Assets

(a) Cold Rolled Stainless Strips / Coils 588,733,577 659,648,038

(b) Windmill 126,909,183 134,303,700

(c ) Un-allocable 47,490,498 55,533,063

Total Assets 763,133,258 849,484,801

4 Segment Liabilities


(b) Windmill 1,582,930 48,118,848

(c ) Un-allocable 783,003,127 1,064,052,950

Total Liabilities 916,500,028 1,622,064,070

5 Segment Depreciation


(b) Windmill 8,418,434 8,381,185

(c ) Un-allocable 137,111 144,100

Total Depreciation 39,387,263 39,356,271

6 Other Non Cash Expenses/(Income)

(a) Cold Rolled Stainless Strips / Coils (254,600,561) 427,208,974

(b) Windmill - -

(c ) Un-allocable - -

Total (254,600,561) 427,208,974

7 Segement Capital Expenditure


(b) Windmill - -

(c ) Un-allocable - -

Total Capital Expenditure 11,339,817 16,162,388

Secondary Reportable Segment (Geographically Segment)

Segment Revenue 2018-19 2017-18

Within India 1,285,474,862 1,333,303,845

Outside India 8,244,108 -

Total Revenue 1,293,718,970 1,333,303,845

Segment Asset As at 31st March 2019 As at 31st March 2018

Within India 763,133,258 849,484,801

Outside India - -

Total Assets 763,133,258 849,484,801

Page 116

SEGMENT WISE REVENUE, RESULTS, ASSETS & LIABILITIES

Operating Segments:

The Group is engaged in the business of manufacturing of Cold Rolled Stainless Strips/coils and generation of power by Windmills. In

accordance with the requirements of Ind AS 108 "Operating Segments" Group has identified these two segments as reportable segments.

Identification of Segments:

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision

about resource allocation and performance assessment. Segment performance is evaluated based on profit or loss and is measured

consistently with profit or loss in the financial statements, Operating segment have been identified on the basis of nature of products and

other quantitative criteria specified in the Ind AS 108.



36

37

38

39

40

41 Settlements with Bank, their legal case and its accounting treatment

42

Page 117

(B) During the year, State Bank of India and IDBI Bank have withdrawn the application instituted under section 19 of The

Recovery of Debts Due to Banks & Financial Institutions Act, 1993, filed before the Hon'ble Debt Recovery Tribunal Ahmedabad.

(C) IDBI Bank, Union Bank Of India and State Bank of India have served Notice under section 13(2) and 13(4) of Chapter III of the

Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002). The

symbolic possession of the property of the company was taken on 13th December, 2017. The Banks have withdrawn the notice

under section 13(2) and 13(4) and the hon’ble Chief Metropolitan Magistrate Court, Ahmedabad has passed the order dated

16th June, 2018 for the withdrawal of the symbolic possession of the property of the company.

Holding company secretary has resigned w.e.f 17th January, 2019 and hence, Company is in process of filling the vacancy.

In the opinion of the Board of Directors, the current assets are approximately of the value stated, if realized in the ordinary

course of the business. There is no contingent liability other than stated above and provisions for all known liabilities are

adequate. Few of the accounts of trade payables, trade receivables and Income Tax Receivable are subject to confirmation

from the respective parties and necessary adjustments and/or proper classification thereof, if any, will be made on its

reconciliation and/or settlement. The classification / grouping of items of the accounts are made by the management, on the

basis of the available data with the group and which has been relied upon by the auditors. Accounts of Receivables / Payables in

respect of Goods and Service Tax, Service Tax, CENVAT, and Vat are subject to reconciliation, submission of its return for its

claim and/or its Audit/ Assessment, if any.

During the year group has reversed the provision made in previous year pertaining to disputed charges in related to supplies of

the material of Rs. 213,251,946/- and provision of privilege leave and other Incentives for an amount of Rs. 42,308,615/- as the

management of the company is of the opinion that the same is not payable. The reversed amount has been treated as

"Exceptional Items" by the Company.

The closing amount of inventory has been taken by the management on the basis of information available with the group and

without conducting physical verification of the slow moving inventory.

The management was of the opinion that Trade receivable of Rs. NIL for 31st March, 2019 (As at 31st March, 2018:

522,241,394/- ) are irrecoverable and hence written off in the books of accounts.

At the end of the year, completed job work of Rs. 19,878,769/- (Previous Year Rs. 36,100,000 /-) for which job work bills have

not been raised on account of non completion of complete order are shown as contract assets.

(A) The group has entered into One Time Settlement (OTS) for the borrowing taken from State Bank of India, Union Bank of

India & IDBI Bank which have been classified as Non-performing assets by the bankers in the earlier years. All the terms &

conditions of the OTS have been complied with by the group and its payments have been fully made and "No Due Certificate"

has been received. The amount of waiver, as per the books of accounts has been transferred to Other Equity (Capital Reserve).



43

43.1 Financial risk management

43.2 Credit risk

Trade receivables

43.3 Market risk

i) Interest Rate Risk:

ii) Foreign currency risk

iii) Price Risk

Page 118

Concentrations of Credit risk from part of Credit risk

Financial Instrument Risk, Management, Objectives & Policies

The Group's principal financial liabilities, other than derivatives, comprise loans and borrowings and trade and other payables. The main

purpose of these financial liabilities is to finance the group's operations and to provide guarantees to support its operations. The group's

principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its

operations.

The group is exposed to credit, liquidity and market risks (foreign currency risk, interest rate risk and price risk) during the course of

ordinary activities. The group's senior management oversees the managements of these risks. The group's senior management focus is

to foresee the unpredictability and minimize potential adverse effects on the group's financial performance. The group's overall risk

management procedures to minimize the potential adverse effects of financial market on the group's performance areas follows:-

The group is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including

deposits with banks and other financial instruments. Balances with banks and security deposits are subject to low credit risk since the

counter-party has strong capacity to meet the obligations and where the risk of default is negligible or nil. Hence, no provision has been

created for expected credit loss for credit risk arising from these financial assets.

Credit risk arises from the possibility that customer/borrowers will not be able to settle their obligations as and when agreed. To

manage this, the group periodically assesses the financial reliability of customers and the borrowers, taking into account the financial

condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.

Other price risk is the risk that the fair value of the financial instrument will fluctuate due to change in market traded price. Price risk

arises from financial assets such as investments in equity instruments and mutual funds. The group is exposed to price risk arising mainly

from investment in mutual funds and listed equity share recognized at FVTPL. As at 31st March 2019 the carrying value of such

instruments recognized at FVTPL amounts to Rs 397,501 ( 31st March 2018 Rs 400,530). The details of such investments in mutual funds

and equity share are given in note no 5.

The Management expects that the exposure to risk of changes in market rates of these mutual funds and equity shares is minimal.

During the year ended 31st March, 2019, sales to two major customer Rs. 75,78,02,512 or 58.58% (31st March 2018: Rs. 89,57,20,211 or

67.18%) of net revenue. Account receivable from such customers Rs. 2,22,94,416 (31st March 2018: Rs. 14,38,31,297). A loss of these

customers could adversely affect the operating results or cash flows of the group.

The provision on trade receivables for expected credit loss is recognized on the basis of life-time expected credit losses (simplified

approach). Trade receivables are evaluated separately for balances towards progress billings. An expected loss rate is calculated at

each year-end, based on combination of rate of default and rate of delay. The group considers the rate of default and delay upon initial

recognition of asset, based on the past experience and forward-looking information, wherever available.

Market risk is the risk that the fair value of the 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, foreign currency risk and other price risk. Financial instruments

affected by market risk includes borrowings, deposits, investments, trade & other receivables and trade and other payables.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in the

market rates. During the year the group had repaid the loan taken from the bank as per the settlement agreements and therefore the

group is not exposed to Interest Rate risk on the Bank Loan. However the group has taken Loan from the Corporate at Fixed Rate of

Interest and therefore the group is no expose to interest rate risk on such loan.

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign

exchange rates. The group has no exposure to foreign currency risk at the end of reporting year.



43.4 Liquidity risk

Maturities of financial liabilities

(Amount In Rupees)

31st March, 2019Up to 1 year/ repayable


Trade Payables 112,297,174 - -

Borrowings 782,650,653 - -

Other Financial liabilities 894,381 - -

Total 895,842,208 - -

31st March, 2018Up to 1 year/ repayable


Trade Payables 477,965,710 -

Borrowings 1,003,629,761 - -

Other Financial liabilities 60,924,234 - -

Total 1,542,519,705 - -

Page 119

Liquidity risk is the risk that the group will face in meeting its obligations associated with its financial liabilities. The group’s approach in

managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In

doing this, management considers both normal and stressed conditions.

The group maintained a cautious liquidity strategy, with a positive cash balance throughout the year ended 31st March, 2019 and 31st

March, 2018. Cash flow from operating activities provides the funds to service the financial liabilities on a day-to-day basis.

The group regularly monitors the rolling forecasts to ensure it has sufficient cash on an on-going basis to meet operational needs. Any

short term surplus cash generated, over and above the amount required for working capital management and other operational

requirements, is retained as cash and cash equivalents (to the extent required) and any excess will be used to repay interest bearing

borrowings.

The following table shows the maturity analysis of the group’s financial liabilities based on contractually agreed undiscounted cash

flows along with its carrying value as at the Balance Sheet date.

The table below analyse the group's financial liabilities into relevant maturity groupings based on their contractual maturities:



44

i. Financial Instruments by Category (Amount In Rupees)


(A) Financial assets

I Investment

a Equity Instruments 96,460 - 94,846 -

b Units of Mutual Funds 301,041 - 305,684 -

Sub Total (I) 397,501 - 400,530 -

II Loans - 8,172,100 - 146,918

III Trade Receivables - 128,256,785 - 162,352,460

IV Cash and cash equivalents - 1,447,288 - 18,717,340

V Other Bank Balances - 8,464,141 - 2,364,999

VI Other Financial Asset - 9,953,529 - 9,549,016

Total (I+II+III+IV+V+VI) 397,501 156,293,843 400,530 193,130,733

Note:

(Amount In Rupees)


(B) Financial Liabilities

I Borrowings - 782,650,653 - 1,003,629,761

II Trade payables - 112,297,174 - 477,965,710

III Other financial liabilities - 894,381 - 60,924,234

Total - 895,842,208 - 1,542,519,705

Page 120


Fair Value Measurements

The following table provides the fair value measurements hierarchy of the Group's assets and liabilities.


Investments in subsidiary companies have been accounted at Cost in line with option available in Ind AS 101.



ii. Fair value hierarchy

(Amount In Rupees)

Level 1 Level 2 Level 3 Level 1 Level 2 Level 3

I Financial Asset and Liabilities

measured at Fair value

A Financial Asset

i Financial Investments at FVTPL 5 397,501 - - 400,530 - -

II

Financial Asset and Liabilities

Which are measured at Amortized

Cost.

Page 121

No separate Fair value is disclosed as the Carrying value of

these Assets and Liabilities represents their Fair Value

The hierarchy levels used for Fair Value measurements of Financial instruments wherever applicable is given below

Note


Level 1:Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation

techniques which maximize 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.



45 Capital Management:

(Amount In Rupees)

Particular 31st March, 2019 31st March, 2018

Equity share capital 59,750,000 59,750,000

Other Equity (213,116,881) (832,329,333)

Total Equity (153,366,881) (772,579,333)

Page 122

The group's objectives when managing capital are to:

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders

and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the group's capital management, capital includes issued equity capital, securities premium and all

other equity reserves attributable to the equity holders of the group. The primary objective of the Company's capital

management is to maximize the shareholders value. The group manages its capital structure and makes adjustments in

light of changes in economic conditions. To maintain or adjust the capital structure, the group may adjust the dividend

payment to shareholders, return capital to shareholders or issue new shares. The Capital structure of the group is as

follows:

In order to achieve this overall objectives, the group's capital managements, amongst other things, aims to ensure that it

meets financial covenants attached to the interest-bearing loans and borrowing that define capital structure

requirements.



46 STATUTORY GROUP INFORMATION

As % of

consolidated

net assets

Amount in

Rupees

As % of

consolidated

net assets

Amount in

Rupees

As % of

consolidated

net assets

Amount in

Rupees

As % of

consolidated

net assets

Amount in

Rupees

Parent Company

Real Strips Limited

Balance as at 31st March 2019 (100.66) (154,381,235) 99.89 421,987,103 100.00 263,662 99.89 422,250,765

Balance as at 31st March 2018 (100.07) (773,121,860) (100.11) (506,625,577) 100.00 893,059 (100.11) (505,732,518)

Indian Subsidiary Company

Hriday Stainless Private Limited

Balance as at 31st March 2019 0.66 1,014,465 0.11 471,874 - - 0.11 471,874

Balance as at 31st March 2018 0.07 542,591 0.11 542,581 - - 0.11 542,581

Total

Balance as at 31st March 2019 100.00 (153,366,770) 100.00 422,458,977 100.00 263,662 100.00 422,722,639

Balance as at 31st March 2018 100.00 (772,579,269) 100.00 (506,082,996) 100.00 893,059 100.00 (505,189,937)

Page 123

Net Assets (i.e. total assets

minus total liabilities)Share in profit / (loss)

Share in other

Comprehensive income

Share in total Comprehensive

income

Name of the entity in the Group

1



47 Events occurred after the Balance Sheet Date

48

49 Other










Date : 30th May, 2019 DIN:- 06821349

Page 124

The group evaluates events and transactions that occur subsequent to the Balance Sheet date but prior to the approval of

the financial statements to determine the necessity for recognition and/or reporting of any of these events and

transactions in the financial statements. As of 30th May 2019, there were no subsequent events to be recognized or

reported that are not already disclosed elsewhere in these financial statements.

Standards Issued but not effective

The amendments to standards that are issued, but not yet effective, up to the date of issuance of the group’s financial

statements are disclosed below. The group intends to adopt these standards, if applicable, when they become effective.

Ind AS 116 Leases was notified in October 2018 and it replaces Ind AS 17 Leases, including appendices thereto. Ind AS 116 is

effective for annual periods beginning on or after 1 April 2019. Ind AS 116 sets out the principles for the recognition,

measurement, presentation and disclosure of leases and requires lessees to account for all leases under a single on-balance

sheet model similar to the accounting for finance leases under Ind AS 17. The standard includes two recognition

exemptions for lessees – leases of ‘low-value’ assets (e.g., personal computers) and short-term leases (i.e., leases with a

lease term of 12 months or less). At the commencement date of a lease, a lessee will recognise a liability to make lease

payments (i.e., the lease liability) and an asset representing the right to use the underlying asset during the lease term (i.e.,

the right-of-use asset). Lessees will be required to separately recognise the interest expense on the lease liability and the

depreciation expense on the right-of-use asset.

Lessees will be also required to remeasure the lease liability upon the occurrence of certain events (e.g., a change in the

lease term, a change in future lease payments resulting from a change in an index or rate used to determine those

payments). The lessee will generally recognise the amount of the remeasurement of the lease liability as an adjustment to

the right-of-use asset.

Lessor accounting under Ind AS 116 is substantially unchanged from today’s accounting under Ind AS 17. Lessors will

continue to classify all leases using the same classification principle as in Ind AS 17 and distinguish between two types of

leases: operating and finance leases.

The group intends to adopt these standards, as applicable, and they become effective. As the group does not have any

material leases, therefore the adoption of this standard is not likely to have a material impact in its Financial Statements.

Figures relating to previous year has been regrouped wherever necessary to make them comparable with the current

period figures.

REAL STRIPS LIMITED Regd. Office: Survey No. 245-246, Village: Sari, Ahmedabad-Bavla Highway, Taluka-Sanand, Dist.: Ahmedabad – 382220, Gujarat, India.

Phone No:+91 92280 02011, 92280 02012

Email Id: [email protected], Website: www.realstrips.com CIN: L27100GJ1990PLC014383

Form No. MGT-11

Proxy form [Pursuant to section 105(6) of the Companies Act, 2013 and rule 19(3) of the Companies (Management and Administration) Rules, 2014]

CIN: ______________________________________________________________________________________ Name of the company: ________________________________________________________________________

Registered office: ____________________________________________________________________________

Name of the member (s):_______________________________________________________________________ Registered address:____________________________________________________________________________

E-mail Id:___________________________________________________________________________________

Folio No/ Client Id:____________________________________________________________________________

DP ID:______________________________________________________________________________________

I/We, being the member (s) of _________ shares of the above named company, hereby appoint

1. Name :_________________________________________________________________________________

Address :________________________________________________________________________________

E-mail Id :_______________________________________________________________________________

Signature :________________________________, or failing him

2. Name :_________________________________________________________________________________

Address :________________________________________________________________________________

E-mail Id :_______________________________________________________________________________

Signature :________________________________, or failing him

3. Name :_________________________________________________________________________________

Address :________________________________________________________________________________

E-mail Id :_______________________________________________________________________________

Signature :________________________________________________________________________________

As my/our proxy to attend and vote (on a poll) for me/us and on my/our behalf at the 28th Annual General Meeting of the company, to be held on the Saturday the

September 28, 2019 at 03.30 p.m. at Survey no. 245-246, Village - Sari, Ahmedabad-Bavla Highway, Taluka – Sanand, Dist.: Ahmedabad – 382220 (place) and at

any adjournment thereof in respect of such resolutions as are indicated below:

Ordinary Business:

1. Adoption of the audited Balance Sheet and Profit & Loss Account for the year ended March 31, 2019 and the reports of the Board of Directors and Auditors

thereon (Ordinary resolution).

2. To appoint a Director in place of Shri Amritlal K. Kataria who retires by rotation and is eligible for reappointment (Ordinary resolution).

Special Business:

3. Appointment of Cost Auditors and fixing of their remuneration (Ordinary resolution).

4. Appointment of Shri Amol R. Dalal as Independent Director of the company (Ordinary resolution).

5. Appointment of Shri.Ramcharan N. Beriwala as Director of the company (Ordinary resolution).

6. Approval to appoint Shri Ramcharan Beriwala as the Executive Director (Finance) & CFO (Special resolution).

7. Divest entire holding of the Company in its wholly owned subsidiary Hriday Stainless Private Limited (Special resolution).

Signed this…… day of………………………… 2019

Signature of shareholder _________________

Signature of Proxy holder(s) ______________

Note: This form of proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours

before the commencement of the Meeting.

Affix

Revenue Stamp

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REAL STRIPS LIMITED

Registered Office: Survey No.245-246, Village-Sari, Ahmedabad-Bavla Highway, Taluka-Sanand, Dist.: Ahmedabad –

382220, Gujarat, India.

ATTENDANCE SLIP

Please complete this Attendance Slip and hand it over at the entrance of the Hall. Joint holders may take additional slip on

request. (Folio No., DP ID*, Client ID* & Name of the Shareholder/ Joint holders/ Proxy IN BLOCK LETTERS is to be

furnished below.)

Shareholder’s Name DP ID* Client ID* Folio No. of shares held

Proxy’s Name

I hereby record my presence at this 28th ANNUAL GENERAL MEETING of the company to be held on Saturday the

September 28, 2019 at 03.30 P.M. at Survey no. 245-246, Village - Sari, Ahmedabad-Bavla Highway, Taluka – Sanand,

Dist.: Ahmedabad – 382220 and at any adjournment thereof.

Signature of the Shareholder or Proxy _________________________

Notes:

1. Only Shareholder of the company or their Proxies will be allowed to attend the Meeting.

2. Shareholders/Proxy holders are requested to bring the Attendance Slip with them when they come to the Meeting and

hand it over at the entrance after affixing their signature on it.

3. Shareholders are requested to advice, indicating their Folio Nos. DP ID*, Client ID*, the change in their address, if any,

to the Registrar & Share Transfer Agents, M/s MCS Share Transfer Agent Limited, 101, Shatdal Complex, 1st Floor, Opp.

Bata Show Room, Ashram Road, Ahmedabad – 380 009.

* Applicable for the investors holding their shares in Electronic (Demat) Form.

Page 126

ROUTE MAP OF VENUE OF 28TH AGM

———W RcaL: I RIP: LIUNKAIIVEIII‘AS 95 of Coiy Efi“...rotation, for his second term of five...

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