RCI Industries & Technologies Ltd. के अकाउंट के लिये नोट

Mar 31, 2025

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

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

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

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

Note: 28 Employee benefit Plan Employee Benefits

The Company is required to determine and disclose its liability towards defined benefit plans in accordance with the requirements of Ind AS 19 - Employee Benefits. However, the actuarial valuation for the defined benefit obligations (such as gratuity and/or leave encashment) has not been earned out as at March 31,2025. Consequently, the liability towards such employee benefits, as well as the related disclosures including actuarial assumptions, sensitivity analyses, and reconciliation of defined benefit obligations, have not been provided in these financial statements.

Accordingly, the liability in respect of gratuity and leave encashment has been recognized on the basis of management estimates, and the impact, if any, of such non-compliance with Ind AS 19 on the financial statements is presently not ascertainable.

As a result, the impact, if any, on the Company’s financial position, performance and disclosures due to the non-availability of actuarial valuation could not be made in the financial statements.

Note: 29 Capital management

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

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

For the purpose of capital management, capital includes issued equity capital, securities premium and all other reserves. Net debt includes all long and short-term borrowings as reduced by cash and cash equivalents and margin money held with financial institutions.

(b) Fair value hierarchy

The following table provides an analysis of financial instruments that are measured subsequent to initial recognition at fair value, grouped into Level 1 to Level 3, as described below:

Quoted prices in an active market (Level 1): This level of hierarchy includes financial assets that arc measured by reference to quoted prices (unadjusted) in active markets for identical assets or liabilities. This category consists of investment in quoted equity shares, and mutual fund investments etc.

Valuation techniques with observable inputs (Level 2): This level of hierarchy includes financial assets and liabilities, measured using inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

Valuation techniques with significant unobservable inputs (Level 3): This level of hierarchy includes financial assets and liabilities measured using inputs that are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part, using a valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data. This category consists of investment in unquoted equity shares.

Note: 35 Segment Reporting

The Company''s activity during the year revolves around manufacturing and trading of all kind of metals and metal products. Considering the nature of Company''s business and operations, as well as based on review of operating results by the chief operating decision maker to make decision about resource allocation and performance measurement, there is only one reportable segment in accordance with the requirement of Ind AS 108 -"Operating Segments"

Note: 36	Contintent Liabilities and Commitments
	Particular	As at March 31,2025	As at March 31,2024
	Demand for VAT & CST assessment for the year 2009-10 to 2012-13 (Note 1)		-
	Show cause notice received from Director General of GST Intelligence (Note 2)	2,143,449,040.00	2.143.449,040.00
	Demand notice received from (Note 3) Deputy Commissioner, Goods & Service tax (Audit)- Baddi	163,028,397.00	163,028,397.00
	Demand notice received from (Note 4) Assistant Commissioner, Income Tax Act	7,955,171,800.00	7,955,171,800.00

Note 1 - The VAT authorities raised the demand on completion of assessment for the FY 2009-10 to 2012-13. The Company filed an application on 20.03.2021 for settlement of this demand under Himachal Pradesh (Legacy Cases Resolution) Scheme, 2019 and the amount already deposited with the VAT authorities in earlier years have been accepted by the Company and the amount of deposit so made has been written off INFY 20-21. The application is pending acceptance from the VAT department and as per the application and provision of the scheme there is no outstanding liability on the Company

Note 2 - Show cause notice has been received on 17.07.2020 from Director General of GST Intelligence wherein the Company has been show caused for why the demand along with penalty and interest should not be levied on the Company for GST credit amounting to Rs. 214.34 crores. The case is still pending in High Court.

Note 3- Demand notice has been issued from the Deputy Commissioner, Goods & Service tax (Audit)- Baddi, wherein demand for Rs 16.30 Crores has been raised towards various observation found during the audit. Company has submitted their replies and as per management there is no outstanding liability on the company.

Note 4- The Company has received a Demand Notice under Section 221(1) of the Income Tax Act, 1961 amounting to t7,955,171,800/- for various assessment years.The ultimate outcome of the matter is presently uncertain and accordingly, no provision has been made in the financial statements.

Note: 37 Application for starting 1BC Proceedings against the Company

During the FY 2022-23, The Application was tiled by the Standard Chartered Bank (Singapore) Limited (Operational Creditor) under section 9 of the Insolvency and Bankruptcy Code, 2016 (Code) for commencement of Corporate Insolvency Resolution Process (CHRP) in the matter of RCI Industries & Technologies Limited (‘‘Corporate Debtor” or “Company”). Hon’ble National Company Law Tribunal (NCLT) New Delhi vide its order dated November 25, 2022 in C.P (EB) No. 2688 of 2019, commenced the CIRP in the matter of Corporate Debtor and appointed Mr. Brijesh Singh Bhadauriya as Interim Resolution Professional (ERP) subsequently confirming him as the Resolution Professional ("RP") under the provisions of the Code. The said order was uploaded on the website and available to the RP on November 30,2022.

Note: 38 Assessment of going concern basis for preparation of accounts

Company faces a material uncertainty related to Going Concern because of heavy losses incurred during the current and previous periods. Further, the net worth of the Company has been fully eroded. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the Company’s ability to continue as a going concern. In our opinion, the financial statement however have been prepared by the management on a going concern basis for the reason as stated. Based on the information available, the Company is presently under the Corporate Insolvency Resolution Process (CIRP) initiated pursuant to the order of the Hon’ble National Company Law Tribunal (NCLT), New Delhi dated November 25,2022, The Resolution Professional (RP) has invited and evaluated Resolution Plans, and the plan has been approved by the Committee of Creditors (CoC) and is pending approval before the Hon’ble NCLT. In view of the ongoing CIRP and the likelihood of resolution through the approval of a Resolution Plan, the financial statements of the Company have been prepared on a going concern basis. Accordingly, we conclude that the use of the going concern assumption in the preparation of the accompanying financial statements is appropriate under the given circumstances.

Note: 39 Disclosure mandated by SEBI through their leHer dated November 12,2021

Securities Exchange Board of India (SEBI) vide its letter no. SEBI/HO/CFED/CFED 4/0W/2021/32366/1 dated 12th November, 2021, advised the Company to make complete disclosure in respect of non-compliance with requirements of AS 9 & AS 26 in the Financial Statements of2014-15.

Non Compliance Nature

1. The amount of listing expense and excess provision of Income Tax/Income written off and TDS receivable for previous year should be routed through statement of profit and loss and should not be directly adjusted with reserve and surplus. Non Compliance with AS 26 "Intangible Assets"

Note: 40 Additional regulatory information required by Schedule 111 of Companies Act, 2013

(i) Details of Benami property: No proceedings have been initiated or are pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) Utilisation of borrowed funds and share premium: The Company has not advanced or loaned or invested funds to any other person(s) or entity(ias), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries

The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries

(iii) Compliance with number of layers of companies: The Company has complied with the number of layers prescribed under the Companies Act, 2013

(iv) Compliance with approved scheme(s) of arrangements: The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

(v) Undisclosed income: There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

(vi) Details of crypto currency or virtual currency: The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(vii) Valuation of PP&E, intangible asset and investment property: The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(viii) The company has not granted any loans or advances in the nature of loans either repayable on demand.

Note: 41 Other Notes

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

(ii) In the opinion of the Board of Directors and Management, all the assets other than, Property, Plant and Equipment, Intangible assets and non- current investments have a value on realisation in the ordinary course of business which is at least equal to the amount at which they are stated.

Note 42 As per the Provision to Rule 3(1) of the Companies (Accounts) Rules, 2014, the audit trail (edit log) feature should be enabled In the accounting software used for maintaining its books of account throughout the financial year

commencing on or after April 1,2023. Based on the assessment carried out by the management, the, audit trail feature is available in the accounting software used for maintaining the books of account during the year ended March 31,2025 as well.

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Mar 31, 2018

1. CORPORATE INFORMATION

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

2.1 FIRST TIME ADOPTION OF IND AS

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

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

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

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

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

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

Unpaid Dividend Account

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

Balances with banks held as margin money deposits

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

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

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

2.3.1 Capital Management

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

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

2.3.2 Financial risk management objectives

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

2.4 Corporate Social Responsibility

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

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

2.5 Other Notes

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

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

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

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

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

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

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

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Mar 31, 2015

1. Reconciliation of the shares Outstanding but the beginning and at the end of the reporting period

2. forms/ rights attached to equity shares

a. The company has only one class of equity Snares having a par value of Us. 10 per share. Each sell holder of equity shares is entitled to one volt per share.

b. The company has not declared or paid any divident to the shareholder at any rime since inception of the company

c. During the 2013-14 the Companyp has 28,80,000 40 per share including premium in of Rs. 30 per share to public via IPO and the company is listed on BSE SME. platform

3. ICICI bank Car Loan

* The loan is taken twin ICICI Bank carrying an interest rate of I l.Q8% per annum and is secured against leased assets - Principal repayment of Rs. 3.41 lakhs due within next 12 months has been shown as Other Current Liabilities

4. Secured Logins from hanks

* Working Capital Ijoans are .secured by hypothecation oJ'present and inventories, outstandings and receivables

5. DETAILS OND ERIVATIVE INSTRt MENTS AND UNHEDGED TO REIGNN CURRENCY EXPOSURES

a. The Company have Nil derivative positions as at 31st March, 20 15

b. The year end foreign currency exposures. that have not been hedget by a derivativceierivative -instrument or otherwise are Payable In USD - 8 49,66.879 (Rs. 3 1.08.80,931) and Keel tables in USD - S 13 1,57,055 (Rs. 82,35,10.575)

6. Related party transactions

Details of related parties:

Description of relationship Names of related parties

Key Management Personel {KMP} Mr. Rajiv Gupta

Relatives of KMP (Relation with KMP) Mr. Ramesh chand Father, Mrs. Satywali Gupta Mother Mrs. Mamta Gupta(wife) Ms. Ritoka Gupta (Daughter) Mr Pradeep Gupta Brother)

Subsidiaries RCI World Trade Link DMCC (Dubai). RCI Skills & Davelopment Pvt Ltd

Investment Partnership Firm Salya Metals l

Enterprices in which KMP / Ace MaL-nx &. Salulions Ltd, Relatives of KMP can exercise Manila Q oh pvt Ltd, AlI Heavens Significant inlluerce Reslauranl Pvt Ltd, Metalrod Ltd

7. Contingent Liabilities and Commitments As at As at Particulars 31 March 2015 31 March 2014 Rs. Rs.

Contingent Liabilities

(A) Claims against the company-/ disputed liabilities not acknowledged as ilebt.s *

in reaped of statutory dues 374,845 236,497

(B) Guarantees to Banks and b'innneiul Institutions against credit facilities extended to

Satya Metals ** 130,000,,000

(Partnership firm in which the company is a partner)

* The company has been advised that the demand is Irkety to be either deleted or substantially reduced anti accordingly no provision is considered necessary.

* * The firm 'Satya Metals was taken over by company wef 01-04-2014 and is now a proprietorship unit of the company in the name of RCI Copper. Consequently the credit limits to the extent utilised has been shown in short term borrowings