�ARTHAK

-i ,

An ISO 9001 : 2008 Certified Co.

CIN-L51102CT1995PLC009772

Head Office :

BBC Colony, G.E. Road, P.O. : Khursipar, Bhilai - 490 011 (C.G.) Contact : +91 91 1101 5041 Landline : +91 788 2296495, 2296499 Telefax : +91 788 2225874 E-mail : info@sarthakmetals.com

Works:

17 - N, Heavy Industrial Area,

hathkhoj, Bhilai - 490 026 (C.G.) Contact: +91 91 1101 5042 Web : www.sarthakmetals.com

SARTHAK METALS LIMITED (Formerly : Sarthak Metals Marketing Private Limited)

Date: 14.09.2018

To, The SecretaryBombay Stock Exchange Limited25th Floor, Phiroz Jeejeebhoy TowersDalal StreetMumbai- 400001

Dear Sir/Madam,

Subject: Submission of Annual Report as per Regulation 34 of SEBI (Listing Obligation And Disclosure requirements) Regulations, 2015.

Ref: BSE Security Code 540393

Please find enclosed the Annual report for the Financial Year 2017-18 as required under Regulation 34 of SEBI (Listing Obligation and Disclosure requirements) Regulations, 2015 duly approved and adopted as per the provisions of the Companies Act, 2013.

This is for your information and record.

Kindly acknowledge the receipt.

Thanking You,Yours faithfully,For Sarthak Metals Limited

Itika SinghalCompliance Officer & Company Secretary

20172018ANNUAL REPORT

SarthakMetalsLimited|AnnualReport2017­18

BOARDOFDIRECTORS

Mr.AnoopKumarBansal : ChairmanandManagingDirector

Mr.MayurBhatt : WholeTimeDirector

Mr.SanjayShah : WholeTimeDirector

Mr.ChetanKumar : Non­ExecutiveIndependentDirector

Mrs.RamaKohli : Non­ExecutiveIndependentDirector

Mr.KishoreKumarBansal : Non­ExecutiveNon­IndependentDirector

CHIEFFINANCIALOFFICER

Mr.AnirudhSinghal

Mrs.ItikaSinghal

Begani&Begani

CharteredAccountants

2ndFloor,C­34/1,

TagoreNagar,

Raipur(C.G.)­492001

BANKERS

StateBankofIndia

ICICIBankLimited

AxisBank

REGISTEREDOFFICE

B.B.C.Colony,G.E.Road,Khursipar

Bhilai–490011,

Chhattisgarh,India

COMPANYSECRETARYANDCOMPLIANCEOFFICER

STATUTORYAUDITORS rd23 ANNUALGENERALMEETING

DAY,DATE,TIME

Friday,14thSeptember2018at11A.M.

ANNUALGENERALMEETIGVENUE

B.B.C.Colony,G.E.Road,Khursipar,

Bhilai–490011,Chhattisgarh,India

07thSeptember2018to

14thSeptember2018

BOOKCLOSURE

BigShareServicesPrivateLimited

1stFloor,BharatTinWorksBuilding,Opposite

VasantOasisApartments(NexttoKeysHotel),

MarolMaroshiRoad,AndheriEast,Mumbai­400059

REGISTRAR&TRANSFERAGENT

www.sarthakmetals.com

WEBSITE

SarthakMetalsLimited|AnnualReport2017­18

BOARDOFDIRECTORS

Mr.AnoopKumarBansal : ChairmanandManagingDirector

Mr.MayurBhatt : WholeTimeDirector

Mr.SanjayShah : WholeTimeDirector

Mr.ChetanKumar : Non­ExecutiveIndependentDirector

Mrs.RamaKohli : Non­ExecutiveIndependentDirector

Mr.KishoreKumarBansal : Non­ExecutiveNon­IndependentDirector

CHIEFFINANCIALOFFICER

Mr.AnirudhSinghal

Mrs.ItikaSinghal

Begani&Begani

CharteredAccountants

2ndFloor,C­34/1,

TagoreNagar,

Raipur(C.G.)­492001

BANKERS

StateBankofIndia

ICICIBankLimited

AxisBank

REGISTEREDOFFICE

B.B.C.Colony,G.E.Road,Khursipar

Bhilai–490011,

Chhattisgarh,India

COMPANYSECRETARYANDCOMPLIANCEOFFICER

STATUTORYAUDITORS rd23 ANNUALGENERALMEETING

DAY,DATE,TIME

Friday,14thSeptember2018at11A.M.

ANNUALGENERALMEETIGVENUE

B.B.C.Colony,G.E.Road,Khursipar,

Bhilai–490011,Chhattisgarh,India

07thSeptember2018to

14thSeptember2018

BOOKCLOSURE

BigShareServicesPrivateLimited

1stFloor,BharatTinWorksBuilding,Opposite

VasantOasisApartments(NexttoKeysHotel),

MarolMaroshiRoad,AndheriEast,Mumbai­400059

REGISTRAR&TRANSFERAGENT

www.sarthakmetals.com

WEBSITE

Sr.No. Particulars PageNo.

1 LettertoShareholders 1

2 NoticefortheAGM 2­4

3 DirectorsReport 5­15

4 AnnexurestoDirectorsReport 16

4a. AnnexureA 16

4b. AnnexureB 16­17

4c. FormMGT­9 18­27

4d. FormAOC–1 28­29

4e. FormAOC–2 30

5 ManagementDiscussion&Analysis 31­32

6 SecretarialReport 33­35

7 IndependentAuditorsReport 36­41

8 AuditedFinancialStatements 42­45

9 CashFlowStatement 46­47

10 NotesformingpartofFinancialStatement 48­69

11 AttendanceSlip 70

14 ProxyForm 71

15 RouteMap 72

INDEX

SarthakMetalsLimited|AnnualReport2017­18

Letter to Shareholders DearStakeholders,

WearepleasedtosharewithyoutheAnnualReportofyourCompanyfortheFinancialYear2018.Duringthe

yearyourcompanysawa12.4%growthinrevenuesfromFY2017,ahealthysignofimprovingSteelsectorin

India.Thisgrowthhasbeenfromoldplantsaswellassomegreenfieldprojectsofsteelplantscomingonlinein

FY2018.YourcompanyhasmaintainedtheEBIDTAmarginof7%whileincreasingtherevenueswhichhasled

to increase in absoluteEBITDAby16.7%.TheEPS growthhasdoubled as compared to last year growingby

20%.TheProfitAfterTaxstoodat₹4.75Croresonnetsalesof₹171.26Croresagainst₹153.87CroresinFY

2016­17.

Yourcompanyhasbeenbreakingit’sownrecordsbywayofproductionofCoredWiresandAluminumFlipping

Coil.Thisisyearhasbeentheyearofhighestproductioneverbyyourcompany.Thecompanyalsosawit’sFerro

Aluminumplant comingonline inFY2018.FerroAluminum is lookingathealthy sales inFY2019especially

fromnewcustomers.Theaveragecapacityutilizationhasbeenbelow60%.

IthasbeenmorethanayearsincethesharesofyourcompanywerelistedontheBombayStockExchange.The

company’s market capitalization has seen various highs and lows but comparing the year­ends, market has

rewardedyourcompanywitha17%increaseinmarketcapitalization.

Yourcompanyisconsistentcommittedinit’sstrategyofbackwardintegration.Thecompanyhasstartedsetting

upAluminumwirerodmillforbackwardintegratingouraluminumflippingcoilproduct.Withthehelpofthis

backwardintegrationweshallbeabletoreduceourrawmaterialcosts,addtoourgrossmarginsandleverage

ourexisting relationshipsandbrandnamewith the steelplants. Furthermore, your company shallbe able to

increaseitsmarketsharebyofferingthisproductatcompetitiveprices.Thealuminumwirerodplantshallbe

comeonlinebyOctober2018.

Your company has been delivering strong growth and performance due to hold on the domestic as well as

exportsmarket.Sarthak’sbrandgoodname,strategyofbackwardintegrationandresearchonnewproductshas

been thekey inkeepingnewentrantsatbay.Wecontinue togrowby leveragingourstrengthsandexploiting

newopportunities.

I express my thanks to all fellow Directors for their invaluable contribution through their guidance and

encouragement,whichhavebeenmomentousforthesuccessofthecompany.Iwouldalsoliketothankallour

employeesfortheirhardwork,dedicationandstrongcommitmenttowardsourcompany.

I finallythankallofyou,thestakeholders, foryourcontinuedpatronageandtrust inthemanagementofyour

company.Iassureyouthatwearecommittedtobuildingacompany,whichweallshallbeproudof.

sd/-

ANOOPKUMARBANSAL

ManagingDirector

SarthakMetalsLimited

1

SarthakMetalsLimited|AnnualReport2017­18

Sr.No. Particulars PageNo.

1 LettertoShareholders 1

2 NoticefortheAGM 2­4

3 DirectorsReport 5­15

4 AnnexurestoDirectorsReport 16

4a. AnnexureA 16

4b. AnnexureB 16­17

4c. FormMGT­9 18­27

4d. FormAOC–1 28­29

4e. FormAOC–2 30

5 ManagementDiscussion&Analysis 31­32

6 SecretarialReport 33­35

7 IndependentAuditorsReport 36­41

8 AuditedFinancialStatements 42­45

9 CashFlowStatement 46­47

10 NotesformingpartofFinancialStatement 48­69

11 AttendanceSlip 70

14 ProxyForm 71

15 RouteMap 72

INDEX

SarthakMetalsLimited|AnnualReport2017­18

Letter to Shareholders DearStakeholders,

WearepleasedtosharewithyoutheAnnualReportofyourCompanyfortheFinancialYear2018.Duringthe

yearyourcompanysawa12.4%growthinrevenuesfromFY2017,ahealthysignofimprovingSteelsectorin

India.Thisgrowthhasbeenfromoldplantsaswellassomegreenfieldprojectsofsteelplantscomingonlinein

FY2018.YourcompanyhasmaintainedtheEBIDTAmarginof7%whileincreasingtherevenueswhichhasled

to increase in absoluteEBITDAby16.7%.TheEPS growthhasdoubled as compared to last year growingby

20%.TheProfitAfterTaxstoodat₹4.75Croresonnetsalesof₹171.26Croresagainst₹153.87CroresinFY

2016­17.

Yourcompanyhasbeenbreakingit’sownrecordsbywayofproductionofCoredWiresandAluminumFlipping

Coil.Thisisyearhasbeentheyearofhighestproductioneverbyyourcompany.Thecompanyalsosawit’sFerro

Aluminumplant comingonline inFY2018.FerroAluminum is lookingathealthy sales inFY2019especially

fromnewcustomers.Theaveragecapacityutilizationhasbeenbelow60%.

IthasbeenmorethanayearsincethesharesofyourcompanywerelistedontheBombayStockExchange.The

company’s market capitalization has seen various highs and lows but comparing the year­ends, market has

rewardedyourcompanywitha17%increaseinmarketcapitalization.

Yourcompanyisconsistentcommittedinit’sstrategyofbackwardintegration.Thecompanyhasstartedsetting

upAluminumwirerodmillforbackwardintegratingouraluminumflippingcoilproduct.Withthehelpofthis

backwardintegrationweshallbeabletoreduceourrawmaterialcosts,addtoourgrossmarginsandleverage

ourexisting relationshipsandbrandnamewith the steelplants. Furthermore, your company shallbe able to

increaseitsmarketsharebyofferingthisproductatcompetitiveprices.Thealuminumwirerodplantshallbe

comeonlinebyOctober2018.

Your company has been delivering strong growth and performance due to hold on the domestic as well as

exportsmarket.Sarthak’sbrandgoodname,strategyofbackwardintegrationandresearchonnewproductshas

been thekey inkeepingnewentrantsatbay.Wecontinue togrowby leveragingourstrengthsandexploiting

newopportunities.

I express my thanks to all fellow Directors for their invaluable contribution through their guidance and

encouragement,whichhavebeenmomentousforthesuccessofthecompany.Iwouldalsoliketothankallour

employeesfortheirhardwork,dedicationandstrongcommitmenttowardsourcompany.

I finallythankallofyou,thestakeholders, foryourcontinuedpatronageandtrust inthemanagementofyour

company.Iassureyouthatwearecommittedtobuildingacompany,whichweallshallbeproudof.

sd/-

ANOOPKUMARBANSAL

ManagingDirector

SarthakMetalsLimited

1

SarthakMetalsLimited|AnnualReport2017­18

NOTICEisherebygiventhatthe23rdAnnualGeneralMeetingofthemembersofSarthakMetalsLimitedwillbeheldon

Friday,14thSeptember2018at11.A.M.attheB.B.C.Colony,Khursipar,G.E.Road,Bhilai,Chhattisgarh­490011totransact

thefollowingbusiness:

ORDINARYBUSINESS

1. To receive and adopt Audited Financial statement for the year ended 31.03.2018 with all annexure and

attachmenttheretoincludingtheAuditor’sReportandtheDirectors’Report.

2. ToappointMr.KishoreKumarBansal(DIN:03067387),whoretiresbyrotationandbeingeligibleoffershimself

forre­appointment:

“RESOLVEDTHATpursuant to theprovisionofsection152(6)of theCompaniesAct,2013andtherulesmade

there under, Mr. Kishore Kumar Bansal (DIN: 03067387) who retires by rotation and being eligible for re­

appointment,beandisherebyre­appointedastheDirectoroftheCompany.”

SPECIALBUSINESS

3. TosetlimitofborrowingsuptoRs.70croresabovethenetworthoftheCompany.

“RESOLVED THAT, pursuant to the provisions of Section 180 (1) (c) and (2) of Companies Act, 2013 or any

amendmentormodificationsthereof,approvalofmembersbeandisherebyaccordedtotheBoardofDirectorsof

the Company to borrow and raise such sum or sums ofmoney from time to time asmay be required for the

purposesofthebusinessoftheCompany,inexcessoftheaggregateofthepaid­upcapitaloftheCompanyandfree

reservesoftheCompany,thatistosay,reservesnotsetapartforanyspecificpurpose,subjecttotheprovisothat

suchborrowingshallnotexceedRs.70,00,00,000(RupeesSeventyCroresonly)overandabovetheaggregateof

thepaid­upcapitalof theCompanyand its freereservesandshallexcludeall temporary loansobtainedby the

Companyfromitsbankersintheordinarycourseofitsbusiness,onsuchtermsandconditionsastheBoardmay

considernecessaryandexpedientinthebestinterestoftheCompany.

RESOLVED FURTHER THAT for the purpose of giving effect to this resolution the Board be and is hereby

authorizedtodoallsuchacts,deeds,mattersandthingsas itmayinitsabsolutediscretionconsidernecessary,

properordesirableandtosettleanyquestion,difficultyordoubtthatmayariseinthisregard.”

NOTICEOFANNUALGENERALMEETING

2

RegisteredOffice:

B.B.C.Colony,Khursipar,G.E.Road,

Bhilai,Chhattisgarh­490011

CIN:L51102CT1995PLC009772

E­mail:cs@sarthakmetals.com,cfo@sarthakmetals.com

website:www.sarthakmetals.com

ByOrderoftheBoardofDirectors

SarthakMetalsLimited

ItikaSinghal

Sd/-

CompanySecretary

SarthakMetalsLimited|AnnualReport2017­18

3

NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TOATTENDANDVOTEONPOLLINSTEADOFHIMSELF/HERSELFANDTHEPROXYNEEDNOTBEAMEMBEROFTHECOMPANY.PROXIES,INORDERTOBEEFFECTIVE,MUSTBERECEIVEDBYTHECOMPANYNOTLESSTHAN48HOURSBEFORETHETIMEOFMEETING.

2. Apersoncanactasproxyonbehalfofmembersnotexceedingfiftyandholdinginaggregatenotmorethantenpercentofthetotalsharecapitalofthecompanycarryingvotingrights.AmemberholdingmorethantenpercentofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasproxyforanyotherpersonorshareholder.

3. TheExplanatorystatementfortheproposedresolutionsunderItemNo.3pursuanttosection102oftheCompaniesAct,2013readwithsection110oftheCompaniesAct,2013settingoutmaterialfactsareannexedherewith.

4. TheattendanceslipcumProxyFormisplacedattheendofthisAnnualReport.

5. PursuanttotheprovisionofSEBI(LODR)Regulations,2015andsection91oftheCompaniesAct,2013,RegisterofMembersandShareTransferBooksoftheCompanywillremainclosedfromFriday,07thSeptember2018toFriday,14thSeptember2017.(bothdaysinclusive).

6. CorporateMembersintendingtosendtheirauthorizedrepresentativestoattendtheMeetingarerequestedtosendtotheCompany,acertifiedcopyoftheBoardResolutionauthorizingtherepresentativetoattendandvoteontheirbehalfatthemeeting

7. Asper theapplicableprovisionsandrules thereunderanyDividendremainingunpaidandunclaimedat theendof07thyearthereaftershallbetransferredtotheInvestorEducationandProtectionFund(IEPF).

8. Members / Proxies attending the Meeting are requested to bring their copies of Annual Report together withattendanceslipdulycompletedandsignedalongwithClientIDandDPIDnumbers.

9. MembersseekinganyinformationrelatingtoAccountsarerequestedtowritetotheCompanyatleast10daysbeforethe date of the Annual GeneralMeeting to enable theManagement to keep the required information ready at themeeting.

10. TheMinistryofCorporateAffairshascomeoutwithacirculardated29thApril2011whichallowsthecompaniestosenddocumentsincludingAnnualReportsandotherintimationbyanemail.Therefore,youarerequestedtoregisteryouremailIDswiththeRegistrarandTransferAgentoftheCompany.TheCompanyisalreadyhavingemailIDofthemembersholdingtheirsharesinDEMATthroughtheirrespectiveDepositoryParticipants.ThesaidemailIDshallbeconsideredasregisteredemailIDforthesaidmembersunlessinformedotherwisetotheCompanyorRegistrarandTransferAgent.

11. Shareholders holding shares in dematerialized form should communicate the change of address, if any, to theirDepositaryParticipantandotherwhoholdsharesinphysicalformshouldcommunicatethechangeofaddress,totheRegistrarandShareTransferAgentoftheCompanyatthefollowingaddress:

BigShareServicesPrivatelimited

1stFloor,BharatTinWorksBuilding,

Opp.VasantOasisApartments(NexttoKeysHotel),

MarolMaroshiRoad,AndheriEast,Mumbai400059

12. IntermsofSection72oftheCompaniesAct,2013,nominationfacilityisavailabletotheindividualshareholder.Thesameshouldbeavailedthroughrespectivedepository.

13. The Notice of 23rd AGM along with the attendance slip and proxy form are being sent via electronic mode (toshareholdershavingtheiremailIDsregisteredwiththeCompany/DepositoryParticipants)andinphysicalmode(toshareholdersnothavingtheiremailIDsregisteredwiththeCompany/DepositoryParticipants).

14. TheCompany,beinglistedonSMEExchangeandinviewofprovisionsofRule20oftheCompanies(ManagementandAdministration)Rules,2014isnotrequiredtoprovideremotee­votingfacilitytoitsmembers.

SarthakMetalsLimited|AnnualReport2017­18

NOTICEisherebygiventhatthe23rdAnnualGeneralMeetingofthemembersofSarthakMetalsLimitedwillbeheldon

Friday,14thSeptember2018at11.A.M.attheB.B.C.Colony,Khursipar,G.E.Road,Bhilai,Chhattisgarh­490011totransact

thefollowingbusiness:

ORDINARYBUSINESS

1. To receive and adopt Audited Financial statement for the year ended 31.03.2018 with all annexure and

attachmenttheretoincludingtheAuditor’sReportandtheDirectors’Report.

2. ToappointMr.KishoreKumarBansal(DIN:03067387),whoretiresbyrotationandbeingeligibleoffershimself

forre­appointment:

“RESOLVEDTHATpursuant to theprovisionofsection152(6)of theCompaniesAct,2013andtherulesmade

there under, Mr. Kishore Kumar Bansal (DIN: 03067387) who retires by rotation and being eligible for re­

appointment,beandisherebyre­appointedastheDirectoroftheCompany.”

SPECIALBUSINESS

3. TosetlimitofborrowingsuptoRs.70croresabovethenetworthoftheCompany.

“RESOLVED THAT, pursuant to the provisions of Section 180 (1) (c) and (2) of Companies Act, 2013 or any

amendmentormodificationsthereof,approvalofmembersbeandisherebyaccordedtotheBoardofDirectorsof

the Company to borrow and raise such sum or sums ofmoney from time to time asmay be required for the

purposesofthebusinessoftheCompany,inexcessoftheaggregateofthepaid­upcapitaloftheCompanyandfree

reservesoftheCompany,thatistosay,reservesnotsetapartforanyspecificpurpose,subjecttotheprovisothat

suchborrowingshallnotexceedRs.70,00,00,000(RupeesSeventyCroresonly)overandabovetheaggregateof

thepaid­upcapitalof theCompanyand its freereservesandshallexcludeall temporary loansobtainedby the

Companyfromitsbankersintheordinarycourseofitsbusiness,onsuchtermsandconditionsastheBoardmay

considernecessaryandexpedientinthebestinterestoftheCompany.

RESOLVED FURTHER THAT for the purpose of giving effect to this resolution the Board be and is hereby

authorizedtodoallsuchacts,deeds,mattersandthingsas itmayinitsabsolutediscretionconsidernecessary,

properordesirableandtosettleanyquestion,difficultyordoubtthatmayariseinthisregard.”

NOTICEOFANNUALGENERALMEETING

2

RegisteredOffice:

B.B.C.Colony,Khursipar,G.E.Road,

Bhilai,Chhattisgarh­490011

CIN:L51102CT1995PLC009772

E­mail:cs@sarthakmetals.com,cfo@sarthakmetals.com

website:www.sarthakmetals.com

ByOrderoftheBoardofDirectors

SarthakMetalsLimited

ItikaSinghal

Sd/-

CompanySecretary

SarthakMetalsLimited|AnnualReport2017­18

3

NOTES:

1. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE MEETING IS ENTITLED TO APPOINT A PROXY TOATTENDANDVOTEONPOLLINSTEADOFHIMSELF/HERSELFANDTHEPROXYNEEDNOTBEAMEMBEROFTHECOMPANY.PROXIES,INORDERTOBEEFFECTIVE,MUSTBERECEIVEDBYTHECOMPANYNOTLESSTHAN48HOURSBEFORETHETIMEOFMEETING.

2. Apersoncanactasproxyonbehalfofmembersnotexceedingfiftyandholdinginaggregatenotmorethantenpercentofthetotalsharecapitalofthecompanycarryingvotingrights.AmemberholdingmorethantenpercentofthetotalsharecapitaloftheCompanycarryingvotingrightsmayappointasinglepersonasproxyandsuchpersonshallnotactasproxyforanyotherpersonorshareholder.

3. TheExplanatorystatementfortheproposedresolutionsunderItemNo.3pursuanttosection102oftheCompaniesAct,2013readwithsection110oftheCompaniesAct,2013settingoutmaterialfactsareannexedherewith.

4. TheattendanceslipcumProxyFormisplacedattheendofthisAnnualReport.

5. PursuanttotheprovisionofSEBI(LODR)Regulations,2015andsection91oftheCompaniesAct,2013,RegisterofMembersandShareTransferBooksoftheCompanywillremainclosedfromFriday,07thSeptember2018toFriday,14thSeptember2017.(bothdaysinclusive).

6. CorporateMembersintendingtosendtheirauthorizedrepresentativestoattendtheMeetingarerequestedtosendtotheCompany,acertifiedcopyoftheBoardResolutionauthorizingtherepresentativetoattendandvoteontheirbehalfatthemeeting

7. Asper theapplicableprovisionsandrules thereunderanyDividendremainingunpaidandunclaimedat theendof07thyearthereaftershallbetransferredtotheInvestorEducationandProtectionFund(IEPF).

8. Members / Proxies attending the Meeting are requested to bring their copies of Annual Report together withattendanceslipdulycompletedandsignedalongwithClientIDandDPIDnumbers.

9. MembersseekinganyinformationrelatingtoAccountsarerequestedtowritetotheCompanyatleast10daysbeforethe date of the Annual GeneralMeeting to enable theManagement to keep the required information ready at themeeting.

10. TheMinistryofCorporateAffairshascomeoutwithacirculardated29thApril2011whichallowsthecompaniestosenddocumentsincludingAnnualReportsandotherintimationbyanemail.Therefore,youarerequestedtoregisteryouremailIDswiththeRegistrarandTransferAgentoftheCompany.TheCompanyisalreadyhavingemailIDofthemembersholdingtheirsharesinDEMATthroughtheirrespectiveDepositoryParticipants.ThesaidemailIDshallbeconsideredasregisteredemailIDforthesaidmembersunlessinformedotherwisetotheCompanyorRegistrarandTransferAgent.

11. Shareholders holding shares in dematerialized form should communicate the change of address, if any, to theirDepositaryParticipantandotherwhoholdsharesinphysicalformshouldcommunicatethechangeofaddress,totheRegistrarandShareTransferAgentoftheCompanyatthefollowingaddress:

BigShareServicesPrivatelimited

1stFloor,BharatTinWorksBuilding,

Opp.VasantOasisApartments(NexttoKeysHotel),

MarolMaroshiRoad,AndheriEast,Mumbai400059

12. IntermsofSection72oftheCompaniesAct,2013,nominationfacilityisavailabletotheindividualshareholder.Thesameshouldbeavailedthroughrespectivedepository.

13. The Notice of 23rd AGM along with the attendance slip and proxy form are being sent via electronic mode (toshareholdershavingtheiremailIDsregisteredwiththeCompany/DepositoryParticipants)andinphysicalmode(toshareholdersnothavingtheiremailIDsregisteredwiththeCompany/DepositoryParticipants).

14. TheCompany,beinglistedonSMEExchangeandinviewofprovisionsofRule20oftheCompanies(ManagementandAdministration)Rules,2014isnotrequiredtoprovideremotee­votingfacilitytoitsmembers.

SarthakMetalsLimited|AnnualReport2017­18

4

EXPLANATORYSTATEMENTASREQUIREDUNDERSECTION102OFTHECOMPANIESACT,2013

ITEMNO.3

Section 180(1)(c) of the Companies Act, 2013 requires the consent of the Members in the General Meeting forauthorizingtheBoardofDirectorstoborrowmonies(apartfromthetemporaryloansobtainedortobeobtainedfromtheCompany’sBankersintheordinarycourseofbusiness)inexcessoftheaggregateofthepaid­upcapitalandfreereserves.

Intheviewofgrowingoperations,companymayrequireadditionalfunds.ItisthereforerecommendedtoauthorizeBoard of Directors to borrow the money subject to the provisions that such borrowing shall not exceed Rs.70,00,00,000(RupeesSeventyCroresonly)overandabovetheaggregateofthepaid­upcapitaloftheCompanyanditsfreereservesandshallexcludealltemporaryloansobtainedbytheCompanyfromitsbankersintheordinarycourseof its business, on such terms and conditions as the Boardmay consider from time to time in the interest of theCompany.

NoDirectoroftheCompanyaredeemedtobedirectlyorindirectlyinterestedinpassingthisresolution.

TheDirectorsofYourCompanyrecommendstheseresolutionsforyourapprovalasaSpecialResolution.

STATEMENTPURSUANTTOSECTION102OFTHECOMPANIESACT,2013

DETAILS OF THE DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT IN THE 23RD ANNUAL GENERAL

MEETINGOFTHECOMPANY

Mr.KishoreKumarBansal­NonExecutiveNon­independentDirector

NameofDirector Mr.KishoreKumarBansal(DIN:06359909)

DateofBirth 19/08/1968

DateofAppointmentAppointed as Director July 28, 1995 Change in designation fromExecutiveDirectortoNon­ExecutiveDirectorfromAugust16,2016

BriefResumeandNatureofExpertiseinFunctionalAreas

Qualification

Hehasover20yearsofexperienceinthemetalstradingbusinessandindustry.

UnderMatriculation

No.ofEquitySharesheldintheCompany 741000shares

ListofDirectorship/CommitteeMembershipsinotherPublicCompaniesason31stMarch,2018

OtherDirectorship­NILOtherCommitteeMembership­NIL

DisclosureofRelationshipsbetweenDirectorsinter­se Mr.AnoopKumarBansalandMr.KishoreKumarBansalarebrothers

RegisteredOffice:

B.B.C.Colony,Khursipar,G.E.Road,

Bhilai,Chhattisgarh­490011

CIN:L51102CT1995PLC009772

E­mail:cs@sarthakmetals.com,cfo@sarthakmetals.com

website:www.sarthakmetals.com

ByOrderoftheBoardofDirectors

SarthakMetalsLimited

ItikaSinghal

Sd/-

CompanySecretary

SarthakMetalsLimited|AnnualReport2017­18

DIRECTORS'REPORT

To

TheMembers,

YourDirectorshavepleasureinpresentingthe23rdAnnualReportofSARTHAKMETALSLIMITEDalongwiththeAudited

FinancialStatementsfortheyearended31stMarch2018.

FINANCIALSUMMARY/HIGHLIGHTS

OurCompany’sfinancialperformancefortheyearunderreviewhasbeenencouragingandissummarizedbelow:

(Inlakhs)

Particulars CurrentYearason31.03.2018 PreviousYearason31.03.2017

TotalIncome 17,290.17 15,387.39

Less:Expenditure&Depreciation 16,575.70 14,799.98

ProfitbeforeTax(PBT) 714.47 587.41

Less:Tax(includingdeferredtax) 227.29 192.39

ProfitAfterTax(PAT) 487.18 395.02

PERFORMANCEREVIEW

Iron&Steelsectorhasseenpositiveresultsinthepastfinancialyearaftermanyyearsofpoorperformance.Thisismainly

due to two reasons, first being higher budget allocation by Central Government on infrastructure expenditure and

measurestostopcheapsteel imports fromChina.Overall ithasbeenagoodyear foryourcompany.Ourrevenueshave

increasedby12.4%andEBIDTAincreasedby16.7%.Earningspersharehavealsoincreasedby20%.Thegrowthhasbeen

steadydespitemanyotherplayersenteringthemarket.Wehavebeenabletoshowgoodperformanceduetoourclient’s

trustinourproductandtheirreadinesstopayapremiumforthesame.

DIVIDEND

Inordertoconserveresourcesforfuturegrowthandbusinessexpansion,yourdirectorsdonotrecommendanydividend

fortheFinancialYear2017­18.

RESERVES

TheCompanyhastransferredthewholeamountofProfittoReserve&SurplusAccountasperattachedauditedBalance

Sheetfortheyearendedon31stMarch2018

SHARECAPITAL

The Paid­up Equity share capital of the Company as on 1st April, 2017was Rs. 13,68,97,500 divided into 1,36,89,750

EquitySharesofRs10/­each.Nochangewasmadeduringtheyear.Theequitysharecapitalthus,ason31/03/2018was

Rs.13,68,97,500.

EXTRACTOFTHEANNUALRETURN

TheextractoftheannualreturninFormNo.MGT–9isattachedinAnnexureAappendedtotheDirector’sReport.

5

SarthakMetalsLimited|AnnualReport2017­18

4

EXPLANATORYSTATEMENTASREQUIREDUNDERSECTION102OFTHECOMPANIESACT,2013

ITEMNO.3

Section 180(1)(c) of the Companies Act, 2013 requires the consent of the Members in the General Meeting forauthorizingtheBoardofDirectorstoborrowmonies(apartfromthetemporaryloansobtainedortobeobtainedfromtheCompany’sBankersintheordinarycourseofbusiness)inexcessoftheaggregateofthepaid­upcapitalandfreereserves.

Intheviewofgrowingoperations,companymayrequireadditionalfunds.ItisthereforerecommendedtoauthorizeBoard of Directors to borrow the money subject to the provisions that such borrowing shall not exceed Rs.70,00,00,000(RupeesSeventyCroresonly)overandabovetheaggregateofthepaid­upcapitaloftheCompanyanditsfreereservesandshallexcludealltemporaryloansobtainedbytheCompanyfromitsbankersintheordinarycourseof its business, on such terms and conditions as the Boardmay consider from time to time in the interest of theCompany.

NoDirectoroftheCompanyaredeemedtobedirectlyorindirectlyinterestedinpassingthisresolution.

TheDirectorsofYourCompanyrecommendstheseresolutionsforyourapprovalasaSpecialResolution.

STATEMENTPURSUANTTOSECTION102OFTHECOMPANIESACT,2013

DETAILS OF THE DIRECTORS SEEKING APPOINTMENT/RE-APPOINTMENT IN THE 23RD ANNUAL GENERAL

MEETINGOFTHECOMPANY

Mr.KishoreKumarBansal­NonExecutiveNon­independentDirector

NameofDirector Mr.KishoreKumarBansal(DIN:06359909)

DateofBirth 19/08/1968

DateofAppointmentAppointed as Director July 28, 1995 Change in designation fromExecutiveDirectortoNon­ExecutiveDirectorfromAugust16,2016

BriefResumeandNatureofExpertiseinFunctionalAreas

Qualification

Hehasover20yearsofexperienceinthemetalstradingbusinessandindustry.

UnderMatriculation

No.ofEquitySharesheldintheCompany 741000shares

ListofDirectorship/CommitteeMembershipsinotherPublicCompaniesason31stMarch,2018

OtherDirectorship­NILOtherCommitteeMembership­NIL

DisclosureofRelationshipsbetweenDirectorsinter­se Mr.AnoopKumarBansalandMr.KishoreKumarBansalarebrothers

RegisteredOffice:

B.B.C.Colony,Khursipar,G.E.Road,

Bhilai,Chhattisgarh­490011

CIN:L51102CT1995PLC009772

E­mail:cs@sarthakmetals.com,cfo@sarthakmetals.com

website:www.sarthakmetals.com

ByOrderoftheBoardofDirectors

SarthakMetalsLimited

ItikaSinghal

Sd/-

CompanySecretary

SarthakMetalsLimited|AnnualReport2017­18

DIRECTORS'REPORT

To

TheMembers,

YourDirectorshavepleasureinpresentingthe23rdAnnualReportofSARTHAKMETALSLIMITEDalongwiththeAudited

FinancialStatementsfortheyearended31stMarch2018.

FINANCIALSUMMARY/HIGHLIGHTS

OurCompany’sfinancialperformancefortheyearunderreviewhasbeenencouragingandissummarizedbelow:

(Inlakhs)

Particulars CurrentYearason31.03.2018 PreviousYearason31.03.2017

TotalIncome 17,290.17 15,387.39

Less:Expenditure&Depreciation 16,575.70 14,799.98

ProfitbeforeTax(PBT) 714.47 587.41

Less:Tax(includingdeferredtax) 227.29 192.39

ProfitAfterTax(PAT) 487.18 395.02

PERFORMANCEREVIEW

Iron&Steelsectorhasseenpositiveresultsinthepastfinancialyearaftermanyyearsofpoorperformance.Thisismainly

due to two reasons, first being higher budget allocation by Central Government on infrastructure expenditure and

measurestostopcheapsteel imports fromChina.Overall ithasbeenagoodyear foryourcompany.Ourrevenueshave

increasedby12.4%andEBIDTAincreasedby16.7%.Earningspersharehavealsoincreasedby20%.Thegrowthhasbeen

steadydespitemanyotherplayersenteringthemarket.Wehavebeenabletoshowgoodperformanceduetoourclient’s

trustinourproductandtheirreadinesstopayapremiumforthesame.

DIVIDEND

Inordertoconserveresourcesforfuturegrowthandbusinessexpansion,yourdirectorsdonotrecommendanydividend

fortheFinancialYear2017­18.

RESERVES

TheCompanyhastransferredthewholeamountofProfittoReserve&SurplusAccountasperattachedauditedBalance

Sheetfortheyearendedon31stMarch2018

SHARECAPITAL

The Paid­up Equity share capital of the Company as on 1st April, 2017was Rs. 13,68,97,500 divided into 1,36,89,750

EquitySharesofRs10/­each.Nochangewasmadeduringtheyear.Theequitysharecapitalthus,ason31/03/2018was

Rs.13,68,97,500.

EXTRACTOFTHEANNUALRETURN

TheextractoftheannualreturninFormNo.MGT–9isattachedinAnnexureAappendedtotheDirector’sReport.

5

SarthakMetalsLimited|AnnualReport2017­18

CHANGESINDIRECTORSANDKEYMANAGERIALPERSONNEL

ThecompositionoftheBoardisaspertheListingRegulationsandprovisionsoftheCompaniesAct,2013.Therewasno

changeinthecompositionoftheBoardduringtheyearunderreview.

Presently, thecompositionof theBoard issixDirectors, ledbyChairmanandManagingDirectorwith twoWhole­Time

Director,twoNon­ExecutiveIndependentDirectorandoneNon­ExecutiveNon­IndependentDirector.

InaccordancewiththeprovisionsofCompaniesAct,2013,Mr.KishoreKumarBansal,DirectoroftheCompany,retiresby

rotationattheensuingAnnualGeneralMeetingandoffershimselfforre­appointment.

MANAGEMENTDISCUSSIONANDANALYSIS:

As required by Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure

Requirements)Regulations,2015aManagementDiscussion&AnalysisReportformspartoftheAnnualReport.

REPORTONCORPORATEGOVERNANCE:

Sarthak Metals Limited is listed on SME Exchange of BSE, the requirement of Corporate Governance as notified in

Regulation15(2)oftheSEBI(ListingObligationandDisclosureRequirement)Regulation,2015notapplicable;therefore

itisnotrequiredtomaintainCorporateGovernanceReport.

DECLARATIONBYINDEPENDENTDIRECTORS:

The Company has received declarations from all the Independent Directors of the Company under Section 149 (7) of

CompaniesAct,2013confirmingthattheymeetwiththecriteriaof independenceasprescribedbothundersub­section

(6)of Section149of theCompaniesAct, 2013andunderRegulation16of the Securities andExchangeBoardof India

(ListingObligationsandDisclosureRequirements)Regulations,2015.

PERFORMANCEEVALUATIONOFBOARD,COMMITTEES&INDIVIDUALDIRECTOR

AformalevaluationoftheperformanceoftheBoard,itsCommittees,theChairmanandtheindividualDirectorswasledby

Nomination & Remuneration Committee, the evaluationwas done using individual interviews covering amongst other

vision, strategy and role clarity of the Board. Board dynamic and processes, contribution towards development of the

strategy, risk management, budgetary controls, receipt of regular inputs and information, functioning, performance &

structureofBoardCommittees,ethics&values,skillset,knowledge&expertiseofDirectors,leadershipetc.

Aspartoftheevaluationprocesstheperformanceofnon­independentDirectors,theChairmanandtheBoardwasdone

bytheIndependentDirectors.TheperformanceevaluationoftherespectiveCommitteesandthatofindependentandnon­

independentDirectorswasdonebytheBoardexcludingtheDirectorbeingevaluated.TheDirectorsexpressedsatisfaction

withtheevaluationprocess.

FAMILIARISATIONPROGRAMMESFORBOARDMEMBERS:

TheBoardmembers are providedwith brochures, reports and internal policies to enable them to familiarizewith the

Company’s procedures and practices. The Chairman and Managing Director had one to one discussions with newly

appointedDirectorstofamiliarizethemwiththeCompany’soperations.PeriodicpresentationsaremadeattheBoardand

BoardCommitteeMeetings,onbusinessandperformanceupdatesoftheCompany,globalbusinessenvironment,business

strategyandrisksinvolved.QuarterlyupdatesonrelevantstatutoryandregulatorychangesarecirculatedtotheDirectors.

Sitevisits tovariousplant locationsareorganized for theDirectors toenable themtounderstandtheoperationsof the

Company.

6

SarthakMetalsLimited|AnnualReport2017­18

NUMBEROFMEETINGSOFTHEBOARDOFDIRECTORS

TheBoardofDirectorsdulymet6(Six)timesinfinancialyear31stMarch,2018andaspersection173oftheCompanies

ActthetimegapbetweenanytwoMeetingshasnotbeenmorethanonehundredandtwentydays.Thedatesonwhichthe

BoardMeetingswereheldare15thApril,2017,29thMay,2017,23rdJune,2017,12thSeptember,2017,15thNovember,

2017and9thMarch,2018.

ThenameandcategoryofDirectorsontheBoard,theirattendanceattheBoardMeetingsheldduringtheyearandalsoat

theAnnual GeneralMeeting, themember ofDirectorships and CommitteeMemberships and Chairpersonships held by

theminothercompaniesason31stMarch,2018aregivenbelow.

*Represents Memberships/Chairpersonships of Audit Committee & Stakeholders’ Relationship Committee of public

companiesonly.

^DesignatesasaWomanDirectoronBoard.

Asperthedisclosurereceived,noneoftheDirectorsofyourCompanyholdmemberships/Chairmanshipsmorethanthe

prescribedlimitsacrossallcompaniesinwhichhe/sheisaDirector.

MEETINGSOFINDEPENDENTDIRECTORS:

TheCompany’sIndependentDirectorsshallmeetat leastonceineveryfinancialyearwithoutthepresenceofExecutive

Directorsormanagementpersonnel.SuchmeetingsareconductedinformallytoenableIndependentDirectorstodiscuss

matterspertainingto(i)reviewtheperformanceofNon­IndependentDirectorsandtheBoardasawhole,(ii)reviewthe

performanceoftheChairpersonoftheCompany,takingintoaccounttheviewsofExecutiveDirectorsandNon­Executive

Directors;and(iii)toassessthequality,quantityandtimelinessofflowofinformationbetweentheCompanyManagement

andtheBoard.

COMMITTEESOFTHEBOARDOFDIRECTORS

In compliance with the requirement of applicable laws and as part of the best governance practice, the Board has

7

NameofDirectors

Category No.ofBoardMeetingheld

andattendduringtheyear

No.ofDirectorshipinother

PublicCompany

No.ofCommitteespositionsheldin

otherPublicCompanies*

AttendanceatlastAGMheld

on01/08/2017

Held Attend Chairman Member

Mr.AnoopKumarBansal

Chairman&ManagingDirector

6 6 0 0 0 Yes

Mr.KishoreKumarBansal

Non­ExecutiveNon­IndependentDirector

6 6 0 0 0 Yes

Ms.RamaKohli^ Non­ExecutiveIndependentDirector

6 4 0 0 0 No

Mr.SanjayShah WholeTimeDirector 6 6 0 0 0 Yes

Mr.MayurBhatt WholeTimeDirector 6 6 0 0 0 Yes

Mr.ChetanKumar Non­ExecutiveIndependentDirector

6 2 0 0 0 Yes

SarthakMetalsLimited|AnnualReport2017­18

CHANGESINDIRECTORSANDKEYMANAGERIALPERSONNEL

ThecompositionoftheBoardisaspertheListingRegulationsandprovisionsoftheCompaniesAct,2013.Therewasno

changeinthecompositionoftheBoardduringtheyearunderreview.

Presently, thecompositionof theBoard issixDirectors, ledbyChairmanandManagingDirectorwith twoWhole­Time

Director,twoNon­ExecutiveIndependentDirectorandoneNon­ExecutiveNon­IndependentDirector.

InaccordancewiththeprovisionsofCompaniesAct,2013,Mr.KishoreKumarBansal,DirectoroftheCompany,retiresby

rotationattheensuingAnnualGeneralMeetingandoffershimselfforre­appointment.

MANAGEMENTDISCUSSIONANDANALYSIS:

As required by Regulation 34 of the Securities and Exchange Board of India (Listing Obligations and Disclosure

Requirements)Regulations,2015aManagementDiscussion&AnalysisReportformspartoftheAnnualReport.

REPORTONCORPORATEGOVERNANCE:

Sarthak Metals Limited is listed on SME Exchange of BSE, the requirement of Corporate Governance as notified in

Regulation15(2)oftheSEBI(ListingObligationandDisclosureRequirement)Regulation,2015notapplicable;therefore

itisnotrequiredtomaintainCorporateGovernanceReport.

DECLARATIONBYINDEPENDENTDIRECTORS:

The Company has received declarations from all the Independent Directors of the Company under Section 149 (7) of

CompaniesAct,2013confirmingthattheymeetwiththecriteriaof independenceasprescribedbothundersub­section

(6)of Section149of theCompaniesAct, 2013andunderRegulation16of the Securities andExchangeBoardof India

(ListingObligationsandDisclosureRequirements)Regulations,2015.

PERFORMANCEEVALUATIONOFBOARD,COMMITTEES&INDIVIDUALDIRECTOR

AformalevaluationoftheperformanceoftheBoard,itsCommittees,theChairmanandtheindividualDirectorswasledby

Nomination & Remuneration Committee, the evaluationwas done using individual interviews covering amongst other

vision, strategy and role clarity of the Board. Board dynamic and processes, contribution towards development of the

strategy, risk management, budgetary controls, receipt of regular inputs and information, functioning, performance &

structureofBoardCommittees,ethics&values,skillset,knowledge&expertiseofDirectors,leadershipetc.

Aspartoftheevaluationprocesstheperformanceofnon­independentDirectors,theChairmanandtheBoardwasdone

bytheIndependentDirectors.TheperformanceevaluationoftherespectiveCommitteesandthatofindependentandnon­

independentDirectorswasdonebytheBoardexcludingtheDirectorbeingevaluated.TheDirectorsexpressedsatisfaction

withtheevaluationprocess.

FAMILIARISATIONPROGRAMMESFORBOARDMEMBERS:

TheBoardmembers are providedwith brochures, reports and internal policies to enable them to familiarizewith the

Company’s procedures and practices. The Chairman and Managing Director had one to one discussions with newly

appointedDirectorstofamiliarizethemwiththeCompany’soperations.PeriodicpresentationsaremadeattheBoardand

BoardCommitteeMeetings,onbusinessandperformanceupdatesoftheCompany,globalbusinessenvironment,business

strategyandrisksinvolved.QuarterlyupdatesonrelevantstatutoryandregulatorychangesarecirculatedtotheDirectors.

Sitevisits tovariousplant locationsareorganized for theDirectors toenable themtounderstandtheoperationsof the

Company.

6

SarthakMetalsLimited|AnnualReport2017­18

NUMBEROFMEETINGSOFTHEBOARDOFDIRECTORS

TheBoardofDirectorsdulymet6(Six)timesinfinancialyear31stMarch,2018andaspersection173oftheCompanies

ActthetimegapbetweenanytwoMeetingshasnotbeenmorethanonehundredandtwentydays.Thedatesonwhichthe

BoardMeetingswereheldare15thApril,2017,29thMay,2017,23rdJune,2017,12thSeptember,2017,15thNovember,

2017and9thMarch,2018.

ThenameandcategoryofDirectorsontheBoard,theirattendanceattheBoardMeetingsheldduringtheyearandalsoat

theAnnual GeneralMeeting, themember ofDirectorships and CommitteeMemberships and Chairpersonships held by

theminothercompaniesason31stMarch,2018aregivenbelow.

*Represents Memberships/Chairpersonships of Audit Committee & Stakeholders’ Relationship Committee of public

companiesonly.

^DesignatesasaWomanDirectoronBoard.

Asperthedisclosurereceived,noneoftheDirectorsofyourCompanyholdmemberships/Chairmanshipsmorethanthe

prescribedlimitsacrossallcompaniesinwhichhe/sheisaDirector.

MEETINGSOFINDEPENDENTDIRECTORS:

TheCompany’sIndependentDirectorsshallmeetat leastonceineveryfinancialyearwithoutthepresenceofExecutive

Directorsormanagementpersonnel.SuchmeetingsareconductedinformallytoenableIndependentDirectorstodiscuss

matterspertainingto(i)reviewtheperformanceofNon­IndependentDirectorsandtheBoardasawhole,(ii)reviewthe

performanceoftheChairpersonoftheCompany,takingintoaccounttheviewsofExecutiveDirectorsandNon­Executive

Directors;and(iii)toassessthequality,quantityandtimelinessofflowofinformationbetweentheCompanyManagement

andtheBoard.

COMMITTEESOFTHEBOARDOFDIRECTORS

In compliance with the requirement of applicable laws and as part of the best governance practice, the Board has

7

NameofDirectors

Category No.ofBoardMeetingheld

andattendduringtheyear

No.ofDirectorshipinother

PublicCompany

No.ofCommitteespositionsheldin

otherPublicCompanies*

AttendanceatlastAGMheld

on01/08/2017

Held Attend Chairman Member

Mr.AnoopKumarBansal

Chairman&ManagingDirector

6 6 0 0 0 Yes

Mr.KishoreKumarBansal

Non­ExecutiveNon­IndependentDirector

6 6 0 0 0 Yes

Ms.RamaKohli^ Non­ExecutiveIndependentDirector

6 4 0 0 0 No

Mr.SanjayShah WholeTimeDirector 6 6 0 0 0 Yes

Mr.MayurBhatt WholeTimeDirector 6 6 0 0 0 Yes

Mr.ChetanKumar Non­ExecutiveIndependentDirector

6 2 0 0 0 Yes

SarthakMetalsLimited|AnnualReport2017­18

constituted various Committees of its members. These Committees hold meetings at such frequencies as is deemed

necessarybythemtoeffectivelyundertakeanddeliverupontheresponsibilitiesandtasksassignedtothem.Minutesof

themeetingsofeachoftheseCommitteesaretabledregularlyattheBoardMeetings.

YourCompanycurrentlyhas4(Four)Committeesviz:

(a) AUDITCOMMITTEE

TheCompanyhasformedaqualifiedandIndependentAuditCommitteewhichactsasalinkbetweentheStatutory

andInternalAuditorsandtheBoardofDirectors.ThetermsofreferenceoftheAuditCommitteecoverthematters

specifiedforAuditCommitteeintheSEBIListingRegulationsandSection177oftheCompaniesAct,2013.

Ason31stMarch,2018,theAuditCommitteecomprisesofthefollowingmembers­

1. Mr.ChetanKumar Chairman

2. Ms.RamaKohli Member

3. Mr.KishoreKumarBansal Member

TheCommitteemet4timesduringtheyearon29thMay,2017,23rdJune,2017and15thNovember2017andthe

attendanceofMembersattheMeetings.

TheCompanySecretaryoftheCompanyistheSecretaryoftheCommittee.

The Chairman of the Audit Committee of the Companywas present at the last Annual GeneralMeeting of the

Companyheldon1stAugust,2017.

(b) NOMINATION&REMUNERATIONCOMMITTEE

In compliance with Section 178 of the Companies Act, 2013 and SEBI Listing Regulations, a Nomination &

RemunerationCommitteeoftheCompanyhasbeenconstituted.

Ason31stMarch,2018,theNominationandRemunerationCommitteecomprisesofthefollowingmembers­

1. Mr.ChetanKumar Chairman

2. Ms.RamaKohli Member

3. Mr.KishoreKumarBansal Member

TheCommitteemet1timeduringtheyearon15thApril,2017andtheattendanceofMembersattheMeetingsis

asfollows:

8

NameofMember NatureofMembership No.ofMeeting(s)attended/held

Mr.ChetanKumar Chairman 3/3

Mrs.RamaKohli Member 3/3

Mr.KishoreKumarBansal Member 3/3

NameofMember NatureofMembership No.ofMeeting(s)attended/held

Mr.ChetanKumar Chairman 1/1

Mrs.RamaKohli Member 1/1

Mr.KishoreKumarBansal Member 1/1

SarthakMetalsLimited|AnnualReport2017­18

(c) STAKEHOLDERSRELATIONSHIPCOMMITTEE

TheStakeholdersRelationshipCommitteeisconstitutedaccordingtoSection178oftheCompaniesAct,2013and

SEBI Listing Regulations. The Committee ensures cordial investor relations and overseas the mechanism for

redressal of investor grievances. The Committee specifically looks into redressing shareholders and investor

complaints/grievancespertainingtosharetransfers,non­receiptsofannualreports,non­receiptofdividendand

otheralliedcomplaints.

Ason31stMarch,2018,theStakeholdersRelationshipCommitteecomprisesofthefollowingmembers­

1. Mr.ChetanKumar Chairman

2. Ms.RamaKohli Member

3. Mr.KishoreKumarBansal Member

During the period under review, Company has not received any complaint from shareholders. There is no

outstandingcomplaintason31stMarch,2018.

TheCompanySecretaryoftheCompanyalsoactsasComplianceOfficeroftheCompany.

(d) CORPORATESOCIALRESPONSIBILITYCOMMITTEE

In compliance with provision of the Companies Act, 2013 and SEBI Listing Regulations, a Corporate Social

ResponsibilityCommitteeoftheCompanyhasbeenconstituted.

Ason31stMarch,2018,theCorporateSocialResponsibilityCommitteecomprisesofthefollowingmembers­

1. Mr.ChetanKumar Chairman

2. Ms.RamaKohli Member

3. Mr.KishoreKumarBansal Member

TheCommitteemet2timesduringtheyearon29thMay,2017and15thNovember,2017andtheattendanceof

MembersattheMeetingsisasfollows:

NOMINATION&REMUNERATIONPOLICYOFTHECOMPANY:

TheBoardhas,ontherecommendationoftheNomination&RemunerationCommitteeframedapolicyforselectionand

appointmentofDirectors,SeniorManagementandtheirremuneration.

The Company’s remuneration policy is directed towards rewarding performance based on review of achievements

periodically.Theremunerationpolicyisinconsonancewiththeexistingindustrypractice.ExtractofRemunerationPolicy

fromNominationandRemunerationpolicyisattachedasAnnexure­A

ANALYSISOFREMUNERATION

ThedetailsofremunerationpaidtoDirectorsandKeyManagerialPersonnelisgiveninextractofAnnualreturnattached

withthisreport.

9

NameofMember NatureofMembership No.ofMeeting(s)attended/held

Mr.ChetanKumar Chairman 2/2

Mrs.RamaKohli Member 2/2

Mr.KishoreKumarBansal Member 2/2

SarthakMetalsLimited|AnnualReport2017­18

constituted various Committees of its members. These Committees hold meetings at such frequencies as is deemed

necessarybythemtoeffectivelyundertakeanddeliverupontheresponsibilitiesandtasksassignedtothem.Minutesof

themeetingsofeachoftheseCommitteesaretabledregularlyattheBoardMeetings.

YourCompanycurrentlyhas4(Four)Committeesviz:

(a) AUDITCOMMITTEE

TheCompanyhasformedaqualifiedandIndependentAuditCommitteewhichactsasalinkbetweentheStatutory

andInternalAuditorsandtheBoardofDirectors.ThetermsofreferenceoftheAuditCommitteecoverthematters

specifiedforAuditCommitteeintheSEBIListingRegulationsandSection177oftheCompaniesAct,2013.

Ason31stMarch,2018,theAuditCommitteecomprisesofthefollowingmembers­

1. Mr.ChetanKumar Chairman

2. Ms.RamaKohli Member

3. Mr.KishoreKumarBansal Member

TheCommitteemet4timesduringtheyearon29thMay,2017,23rdJune,2017and15thNovember2017andthe

attendanceofMembersattheMeetings.

TheCompanySecretaryoftheCompanyistheSecretaryoftheCommittee.

The Chairman of the Audit Committee of the Companywas present at the last Annual GeneralMeeting of the

Companyheldon1stAugust,2017.

(b) NOMINATION&REMUNERATIONCOMMITTEE

In compliance with Section 178 of the Companies Act, 2013 and SEBI Listing Regulations, a Nomination &

RemunerationCommitteeoftheCompanyhasbeenconstituted.

Ason31stMarch,2018,theNominationandRemunerationCommitteecomprisesofthefollowingmembers­

1. Mr.ChetanKumar Chairman

2. Ms.RamaKohli Member

3. Mr.KishoreKumarBansal Member

TheCommitteemet1timeduringtheyearon15thApril,2017andtheattendanceofMembersattheMeetingsis

asfollows:

8

NameofMember NatureofMembership No.ofMeeting(s)attended/held

Mr.ChetanKumar Chairman 3/3

Mrs.RamaKohli Member 3/3

Mr.KishoreKumarBansal Member 3/3

NameofMember NatureofMembership No.ofMeeting(s)attended/held

Mr.ChetanKumar Chairman 1/1

Mrs.RamaKohli Member 1/1

Mr.KishoreKumarBansal Member 1/1

SarthakMetalsLimited|AnnualReport2017­18

(c) STAKEHOLDERSRELATIONSHIPCOMMITTEE

TheStakeholdersRelationshipCommitteeisconstitutedaccordingtoSection178oftheCompaniesAct,2013and

SEBI Listing Regulations. The Committee ensures cordial investor relations and overseas the mechanism for

redressal of investor grievances. The Committee specifically looks into redressing shareholders and investor

complaints/grievancespertainingtosharetransfers,non­receiptsofannualreports,non­receiptofdividendand

otheralliedcomplaints.

Ason31stMarch,2018,theStakeholdersRelationshipCommitteecomprisesofthefollowingmembers­

1. Mr.ChetanKumar Chairman

2. Ms.RamaKohli Member

3. Mr.KishoreKumarBansal Member

During the period under review, Company has not received any complaint from shareholders. There is no

outstandingcomplaintason31stMarch,2018.

TheCompanySecretaryoftheCompanyalsoactsasComplianceOfficeroftheCompany.

(d) CORPORATESOCIALRESPONSIBILITYCOMMITTEE

In compliance with provision of the Companies Act, 2013 and SEBI Listing Regulations, a Corporate Social

ResponsibilityCommitteeoftheCompanyhasbeenconstituted.

Ason31stMarch,2018,theCorporateSocialResponsibilityCommitteecomprisesofthefollowingmembers­

1. Mr.ChetanKumar Chairman

2. Ms.RamaKohli Member

3. Mr.KishoreKumarBansal Member

TheCommitteemet2timesduringtheyearon29thMay,2017and15thNovember,2017andtheattendanceof

MembersattheMeetingsisasfollows:

NOMINATION&REMUNERATIONPOLICYOFTHECOMPANY:

TheBoardhas,ontherecommendationoftheNomination&RemunerationCommitteeframedapolicyforselectionand

appointmentofDirectors,SeniorManagementandtheirremuneration.

The Company’s remuneration policy is directed towards rewarding performance based on review of achievements

periodically.Theremunerationpolicyisinconsonancewiththeexistingindustrypractice.ExtractofRemunerationPolicy

fromNominationandRemunerationpolicyisattachedasAnnexure­A

ANALYSISOFREMUNERATION

ThedetailsofremunerationpaidtoDirectorsandKeyManagerialPersonnelisgiveninextractofAnnualreturnattached

withthisreport.

9

NameofMember NatureofMembership No.ofMeeting(s)attended/held

Mr.ChetanKumar Chairman 2/2

Mrs.RamaKohli Member 2/2

Mr.KishoreKumarBansal Member 2/2

SarthakMetalsLimited|AnnualReport2017­18

ThemedianremunerationofemployeesoftheCompanyduringthefinancialyearwasRs.1,11,091.72p.a.Pleasenotethat

onlythosepersonswhowereemployeesason31stMarch2018havebeenconsideredforthecalculationofthemedian

salary.Further,nobonuspaymentshavebeenconsideredforthesecalculations.

NamesandPositions [A]RatioofDirectors'RemunerationtothemedianRemunerationofEmployees

[B]Percentage(%)increaseinRemuneration

MR.CHETANKUMAR(INDEPENDENTDIRECTOR&CHAIRPERSON

NIL NotApplicable

MS.RAMAKOHLI(INDEPENDENTDIRECTOR)

NIL NotApplicable

MR.ANOOPKUMARBANSAL(MANAGINGDIRECTOR)

21.60Times Reductionby33%

MR.MAYURBHATT(WHOLETIMEDIRECTOR)

5.4Times Reductionby50%

MR.KISHOREKUMARBANSAL(DIRECTOR)

NIL Reductionby100%

MR.SANJAYSHAH(WHOLETIMEDIRECTOR)

21.60Times Reductionby33%

MR.ANIRUDHSINGHAL(CHIEFFINANCIALOFFICER)

21.60Times Reductionby50%

MRS.ITIKASINGHAL(COMPANYSECRETARY)

2.70Times NotApplicableasMs.ItikaSinghalwasnotemployedwith

theCompanyinFY2017

10

Disclosure/details pursuant to provisions of Section 197 (12) of the Companies Act 2013 read with the Companies

(AppointmentandRemunerationofmanagerialpersonnel)Rules,2014aregivenasfollows:

SarthakMetalsLimited|AnnualReport2017­18

[C]PercentageincreaseinthemedianRemunerationofEmployees

Declineof2.67%

[D]NumberofpermanentEmployeesontherollsofCompany

126ason31stMarch2018

[E]Explanationontherelationshipbetweenaveragei n c r e a s e i n R e m u n e r a t i o n a n d C o m p a nyperformance

SalesIncrease–12.4%EBITDAIncrease–16.7%PBTIncrease–18.15%PATIncrease–20.25%EPSIncrease–20%MedianSalaryDecline–(2.67%)

[F] Comparison of the Remuneration of the KeyManagerial Personnel against the performance oftheCompany

The Remuneration of the Key Managerial personnel haspersonnelhasdeclined33%andthecompany'sturnoverhasincreased by 12.4%. Further, the company's EPS has alsoincreasedby20%.

[G] Variations in the Market Capitalization of theCompanyasat31stMarch,2018ascomparedto31stMarch,2017

Increase in Market capitalization of company by 16.98%comparedbetween31stMarch2017and30thMarch2018

[H] Price Earning Ratio as at 31st March, 2018 ascomparedto31stMarch,2017

Increaseof20%

[I] Percentage increase or decrease in the marketquotations of the shares of the company incomparisontotherateatwhichthecompanycameoutwiththelastpublicoffer

Thecompanywaslistedason27thMarch2017atRs30perequityshare.Thepriceperequityshareon31stMarch2018atclosingbellwasRs41pershare.Thepercentage increase is36.67%.

(J)Averagepercentileincreasealreadymadeinthesalaries of employees other than the managerialpersonalinthelastfinancialyearanditscomparisonwith the percentile increase in the managerialremunerationandjustificationthereof

MedianSalaryofnonmanagerialstaffhasdeclinedby2.67%andtheaveragesalaryofmanagerialstaffhasdeclinedby33%average.

(K)ComparisonoftheeachKMPsRemunerationvis-à-vistheperformanceoftheCompany

NameofKMP RemunerationofKMP(RsinLacs)

NetProfitofCompanyaftertax(RsinLacs)

Mr.AnoopKumarBansal(ManagingDirector)

Mr.AnirudhSinghal(ChiefFinancialOfficer)

Mr.MayurBhatt(WholeTimeDirector)

Mr.SanjayShah(WholeTimeDirector)

Ms.ItikaSinghal(CompanySecretary)

24.00

6.50

6.50

24.00

3.00

475.58

(L)Thekeyparametersforanyvariablecomponentofremunerationavailedbythedirectors

No

(M)TheratiooftheremunerationofthehighestpaidDirector to that of the Employees who are notDirectorsbutreceiveremunerationinexcessofthehighestpaidDirectorduringtheyear.

HighestpaidDirectorsRemuneration(I)Rs24,00,000

RemunerationofRatioEmployeereceivingremunerationinexcessof(I)1.25

11

SarthakMetalsLimited|AnnualReport2017­18

ThemedianremunerationofemployeesoftheCompanyduringthefinancialyearwasRs.1,11,091.72p.a.Pleasenotethat

onlythosepersonswhowereemployeesason31stMarch2018havebeenconsideredforthecalculationofthemedian

salary.Further,nobonuspaymentshavebeenconsideredforthesecalculations.

NamesandPositions [A]RatioofDirectors'RemunerationtothemedianRemunerationofEmployees

[B]Percentage(%)increaseinRemuneration

MR.CHETANKUMAR(INDEPENDENTDIRECTOR&CHAIRPERSON

NIL NotApplicable

MS.RAMAKOHLI(INDEPENDENTDIRECTOR)

NIL NotApplicable

MR.ANOOPKUMARBANSAL(MANAGINGDIRECTOR)

21.60Times Reductionby33%

MR.MAYURBHATT(WHOLETIMEDIRECTOR)

5.4Times Reductionby50%

MR.KISHOREKUMARBANSAL(DIRECTOR)

NIL Reductionby100%

MR.SANJAYSHAH(WHOLETIMEDIRECTOR)

21.60Times Reductionby33%

MR.ANIRUDHSINGHAL(CHIEFFINANCIALOFFICER)

21.60Times Reductionby50%

MRS.ITIKASINGHAL(COMPANYSECRETARY)

2.70Times NotApplicableasMs.ItikaSinghalwasnotemployedwith

theCompanyinFY2017

10

Disclosure/details pursuant to provisions of Section 197 (12) of the Companies Act 2013 read with the Companies

(AppointmentandRemunerationofmanagerialpersonnel)Rules,2014aregivenasfollows:

SarthakMetalsLimited|AnnualReport2017­18

[C]PercentageincreaseinthemedianRemunerationofEmployees

Declineof2.67%

[D]NumberofpermanentEmployeesontherollsofCompany

126ason31stMarch2018

[E]Explanationontherelationshipbetweenaveragei n c r e a s e i n R e m u n e r a t i o n a n d C o m p a nyperformance

SalesIncrease–12.4%EBITDAIncrease–16.7%PBTIncrease–18.15%PATIncrease–20.25%EPSIncrease–20%MedianSalaryDecline–(2.67%)

[F] Comparison of the Remuneration of the KeyManagerial Personnel against the performance oftheCompany

The Remuneration of the Key Managerial personnel haspersonnelhasdeclined33%andthecompany'sturnoverhasincreased by 12.4%. Further, the company's EPS has alsoincreasedby20%.

[G] Variations in the Market Capitalization of theCompanyasat31stMarch,2018ascomparedto31stMarch,2017

Increase in Market capitalization of company by 16.98%comparedbetween31stMarch2017and30thMarch2018

[H] Price Earning Ratio as at 31st March, 2018 ascomparedto31stMarch,2017

Increaseof20%

[I] Percentage increase or decrease in the marketquotations of the shares of the company incomparisontotherateatwhichthecompanycameoutwiththelastpublicoffer

Thecompanywaslistedason27thMarch2017atRs30perequityshare.Thepriceperequityshareon31stMarch2018atclosingbellwasRs41pershare.Thepercentage increase is36.67%.

(J)Averagepercentileincreasealreadymadeinthesalaries of employees other than the managerialpersonalinthelastfinancialyearanditscomparisonwith the percentile increase in the managerialremunerationandjustificationthereof

MedianSalaryofnonmanagerialstaffhasdeclinedby2.67%andtheaveragesalaryofmanagerialstaffhasdeclinedby33%average.

(K)ComparisonoftheeachKMPsRemunerationvis-à-vistheperformanceoftheCompany

NameofKMP RemunerationofKMP(RsinLacs)

NetProfitofCompanyaftertax(RsinLacs)

Mr.AnoopKumarBansal(ManagingDirector)

Mr.AnirudhSinghal(ChiefFinancialOfficer)

Mr.MayurBhatt(WholeTimeDirector)

Mr.SanjayShah(WholeTimeDirector)

Ms.ItikaSinghal(CompanySecretary)

24.00

6.50

6.50

24.00

3.00

475.58

(L)Thekeyparametersforanyvariablecomponentofremunerationavailedbythedirectors

No

(M)TheratiooftheremunerationofthehighestpaidDirector to that of the Employees who are notDirectorsbutreceiveremunerationinexcessofthehighestpaidDirectorduringtheyear.

HighestpaidDirectorsRemuneration(I)Rs24,00,000

RemunerationofRatioEmployeereceivingremunerationinexcessof(I)1.25

11

SarthakMetalsLimited|AnnualReport2017­18

PARTICULARSOFEMPLOYEES

NoneoftheemployeesoftheCompanyisdrawingremuneration,requiringdisclosureofinformationundersection134of

theCompaniesAct,2013readwithRule5(2)oftheCompanies(Appointment&RemunerationofManagerialPersonnel)

Rules,2014

REGULATORYORDERS

Duringtheyeartherewasnosignificantandmaterialorderspassedbytheregulatorsorcourtsortribunalsimpactingthe

goingconcernstatusandCompany’soperationsinfuture.

WHISTLEBLOWERPOLICY:

PursuanttotheSection177(9)and(10)oftheCompaniesAct,2013andSecuritiesandExchangeBoardofIndia(Listing

ObligationsandDisclosureRequirements)Regulations,2015,theCompanyhasformulatedWhistleBlowerPolicyforvigil

mechanismforDirectorsandEmployeestoreportthemanagementabouttheunethicalbehavior,fraud,improperpractice

or violation of the Company’s Code of Conduct or complaints regarding accounting, auditing, internal controls or

disclosurepracticesoftheCompany.Itgivesaplatformtothewhistleblowertoreportanyunethicalorimproperpractice

(not necessarily violation of law) and to define processes for receiving and investigating complaints. The mechanism

provides adequate safeguards against victimization of employees and directors who use such mechanism and makes

provisionfordirectaccesstotheChairmanoftheAuditCommitteeinexceptionalcases.

STATUTORYAUDITORS

InaccordancewiththeprovisionsofSection139&142oftheCompaniesAct,2013readwiththeCompanies(Auditand

Auditors)Rules,2014,asamendedfromtimetotimeandsuchotherapplicableprovisions,M/sBegani&Begani,(FRN­

010779C),StatutoryAuditFirmwereappointedasAuditorsof theCompanytoholdoffice fromtheconclusionof22nd

AnnualGeneralMeeting(‘AGM’) till theconclusionof the27thAGMto2022,atsuchremuneration includingapplicable

taxes,asmaybemutuallyagreedbetweentheBoardofDirectorsoftheCompanyandtheAuditors.

AUDITORS'REPORT

TheBoardhasdulyreviewedtheStatutoryAuditor’sReporton theAccounts.Theobservationscommentsandnotesof

Auditorareself­explanatoryanddonotcallforanyfurtherexplanation/clarification

COSTAUDITOR-NOTAPPLICABLE

SECRETARIALAUDITORS

Pursuant to the provisions of Section 204 of Companies Act, 2013 and the rules made thereunder, the Company has

appointedM/sNILESHA. PRADHAN&CO. PracticingCompany Secretary (COP.No. 3659) to undertake the Secretarial

AuditoftheCompanyforthe31st,March,2018.

TheSecretarialAuditReport for the financialyearended31stMarch2018 is includedasAnnexureMR­3and formsan

integralpartofthisreport.

ResponsesofyourDirectorsontheobservationsmadebytheSecretarialAuditorareasfollows:­

ResponsetopointNo.1

TheCompanyhassubmittedtheAnnualReporttotheStockExchangeBEFOREDUEDATEi.e.asmentionedinRegulation

34of theSecuritiesandExchangeBoardof India (ListingObligationsandDisclosureRequirements)Regulations,2015.

The Annual Report is available on BSE website, but advertently, it was uploaded before the prescribed due date. The

companywilltakecareofitnexttimeandwillfiletoBSEontimeafterAnnualGeneralMeeting.

12

SarthakMetalsLimited|AnnualReport2017­18

ResponsetopointNo.2

Therewas1daydelayintheBoardMeetingforthequarterended30thSeptember2017,itwasheldon15thNovember,

2017 instead of 14thNovember, 2017. This delay occurred inadvertently due to somemiscalculation in estimating the

numberofdays.Themanagementensurestotakecareofitinfuture.

ResponsetopointNo.3

TheCompanyhastransferredtheDividenddeclaredon1stAugust,2017fortheyearended31.03.2017totheseparate

bankaccountaspertheprovisionssection123ofthe CompaniesAct,2013on8thAugust,2017,sincethereweretwo

holidaysinbetween.

ResponsetopointNo.4

This delay occurred as there are various Bank formalities to open Bank account with the name of Unpaid Dividend

Account­ SarthakMetals Limited inBhilai (RemoteArea). Themanagement isworking on it andwill take care of it in

future.

DETAILSOFSUBSIDIARY/JOINTVENTURES/ASSOCIATECOMPANIES

TheCompanydoesnothaveanySubsidiaryCompanyorJointVentureCompanyorAssociateCompany.

CORPORATESOCIALRESPONSIBILITY

ThedetailsoftheCorporateSocialResponsibilityPolicyframedandactivitiescarriedoutthereunderarerequiredtobe

disclosed in the format prescribed under Companies (Corporate Social Responsibility Policy) Rules, 2014 is given as

Annexure­B.

PARTICULARSOFLOANS,GUARANTEESORINVESTMENTSUNDERSECTION186

TherearenoLoans,InvestmentsorGuarantees/SecuritygivenbytheCompanyduringtheyearundersection186ofthe

CompaniesAct,2013;hencenoparticularsarerequiredtobegiven.

PARTICULARSOFCONTRACTSORARRANGEMENTSWITHRELATEDPARTIES:

AlltransactionsenteredintowiththeRelatedPartiesasdefinedundertheCompaniesAct,2013andordinarycourseof

business and on an arm’s length pricing basis. There were no materially significant transactions with related parties

duringthefinancialyearwhichwereinconflictwiththeinterestoftheCompany.

KindlynotethattheformatfordisclosuresoftransactionswithrelatedpartyarementionedinAnnexureAOC­2.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY

WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE

FINANCIALSTATEMENTSRELATEANDTHEDATEOFTHEREPORT

Managementdoesnotperceive anymaterial changesoccurred subsequent to the closeof the financial year as on31st

March, 2018 before the date of report dated 1ST August, 2018, affecting the financial position of the Company in any

substantialmanner.

ENERGYCONSERVATION,TECHNOLOGYABSORPTIONANDFOREIGNEXCHANGEEARNINGSANDOUTGO:

(A) ParticularsrelatingtoconservationofenergyandtechnologyabsorptionstipulatedintheCompanies(Accounts)

Rules, 2014 are not applicable. The Company is not energy intensive. Further, the Company’s technology is

indigenouslydevelopedandbeingconstantlyupgradedbasedonearningsofthepromotersandemployees.

13

SarthakMetalsLimited|AnnualReport2017­18

PARTICULARSOFEMPLOYEES

NoneoftheemployeesoftheCompanyisdrawingremuneration,requiringdisclosureofinformationundersection134of

theCompaniesAct,2013readwithRule5(2)oftheCompanies(Appointment&RemunerationofManagerialPersonnel)

Rules,2014

REGULATORYORDERS

Duringtheyeartherewasnosignificantandmaterialorderspassedbytheregulatorsorcourtsortribunalsimpactingthe

goingconcernstatusandCompany’soperationsinfuture.

WHISTLEBLOWERPOLICY:

PursuanttotheSection177(9)and(10)oftheCompaniesAct,2013andSecuritiesandExchangeBoardofIndia(Listing

ObligationsandDisclosureRequirements)Regulations,2015,theCompanyhasformulatedWhistleBlowerPolicyforvigil

mechanismforDirectorsandEmployeestoreportthemanagementabouttheunethicalbehavior,fraud,improperpractice

or violation of the Company’s Code of Conduct or complaints regarding accounting, auditing, internal controls or

disclosurepracticesoftheCompany.Itgivesaplatformtothewhistleblowertoreportanyunethicalorimproperpractice

(not necessarily violation of law) and to define processes for receiving and investigating complaints. The mechanism

provides adequate safeguards against victimization of employees and directors who use such mechanism and makes

provisionfordirectaccesstotheChairmanoftheAuditCommitteeinexceptionalcases.

STATUTORYAUDITORS

InaccordancewiththeprovisionsofSection139&142oftheCompaniesAct,2013readwiththeCompanies(Auditand

Auditors)Rules,2014,asamendedfromtimetotimeandsuchotherapplicableprovisions,M/sBegani&Begani,(FRN­

010779C),StatutoryAuditFirmwereappointedasAuditorsof theCompanytoholdoffice fromtheconclusionof22nd

AnnualGeneralMeeting(‘AGM’) till theconclusionof the27thAGMto2022,atsuchremuneration includingapplicable

taxes,asmaybemutuallyagreedbetweentheBoardofDirectorsoftheCompanyandtheAuditors.

AUDITORS'REPORT

TheBoardhasdulyreviewedtheStatutoryAuditor’sReporton theAccounts.Theobservationscommentsandnotesof

Auditorareself­explanatoryanddonotcallforanyfurtherexplanation/clarification

COSTAUDITOR-NOTAPPLICABLE

SECRETARIALAUDITORS

Pursuant to the provisions of Section 204 of Companies Act, 2013 and the rules made thereunder, the Company has

appointedM/sNILESHA. PRADHAN&CO. PracticingCompany Secretary (COP.No. 3659) to undertake the Secretarial

AuditoftheCompanyforthe31st,March,2018.

TheSecretarialAuditReport for the financialyearended31stMarch2018 is includedasAnnexureMR­3and formsan

integralpartofthisreport.

ResponsesofyourDirectorsontheobservationsmadebytheSecretarialAuditorareasfollows:­

ResponsetopointNo.1

TheCompanyhassubmittedtheAnnualReporttotheStockExchangeBEFOREDUEDATEi.e.asmentionedinRegulation

34of theSecuritiesandExchangeBoardof India (ListingObligationsandDisclosureRequirements)Regulations,2015.

The Annual Report is available on BSE website, but advertently, it was uploaded before the prescribed due date. The

companywilltakecareofitnexttimeandwillfiletoBSEontimeafterAnnualGeneralMeeting.

12

SarthakMetalsLimited|AnnualReport2017­18

ResponsetopointNo.2

Therewas1daydelayintheBoardMeetingforthequarterended30thSeptember2017,itwasheldon15thNovember,

2017 instead of 14thNovember, 2017. This delay occurred inadvertently due to somemiscalculation in estimating the

numberofdays.Themanagementensurestotakecareofitinfuture.

ResponsetopointNo.3

TheCompanyhastransferredtheDividenddeclaredon1stAugust,2017fortheyearended31.03.2017totheseparate

bankaccountaspertheprovisionssection123ofthe CompaniesAct,2013on8thAugust,2017,sincethereweretwo

holidaysinbetween.

ResponsetopointNo.4

This delay occurred as there are various Bank formalities to open Bank account with the name of Unpaid Dividend

Account­ SarthakMetals Limited inBhilai (RemoteArea). Themanagement isworking on it andwill take care of it in

future.

DETAILSOFSUBSIDIARY/JOINTVENTURES/ASSOCIATECOMPANIES

TheCompanydoesnothaveanySubsidiaryCompanyorJointVentureCompanyorAssociateCompany.

CORPORATESOCIALRESPONSIBILITY

ThedetailsoftheCorporateSocialResponsibilityPolicyframedandactivitiescarriedoutthereunderarerequiredtobe

disclosed in the format prescribed under Companies (Corporate Social Responsibility Policy) Rules, 2014 is given as

Annexure­B.

PARTICULARSOFLOANS,GUARANTEESORINVESTMENTSUNDERSECTION186

TherearenoLoans,InvestmentsorGuarantees/SecuritygivenbytheCompanyduringtheyearundersection186ofthe

CompaniesAct,2013;hencenoparticularsarerequiredtobegiven.

PARTICULARSOFCONTRACTSORARRANGEMENTSWITHRELATEDPARTIES:

AlltransactionsenteredintowiththeRelatedPartiesasdefinedundertheCompaniesAct,2013andordinarycourseof

business and on an arm’s length pricing basis. There were no materially significant transactions with related parties

duringthefinancialyearwhichwereinconflictwiththeinterestoftheCompany.

KindlynotethattheformatfordisclosuresoftransactionswithrelatedpartyarementionedinAnnexureAOC­2.

MATERIAL CHANGES AND COMMITMENTS, IF ANY, AFFECTING THE FINANCIAL POSITION OF THE COMPANY

WHICH HAVE OCCURRED BETWEEN THE END OF THE FINANCIAL YEAR OF THE COMPANY TO WHICH THE

FINANCIALSTATEMENTSRELATEANDTHEDATEOFTHEREPORT

Managementdoesnotperceive anymaterial changesoccurred subsequent to the closeof the financial year as on31st

March, 2018 before the date of report dated 1ST August, 2018, affecting the financial position of the Company in any

substantialmanner.

ENERGYCONSERVATION,TECHNOLOGYABSORPTIONANDFOREIGNEXCHANGEEARNINGSANDOUTGO:

(A) ParticularsrelatingtoconservationofenergyandtechnologyabsorptionstipulatedintheCompanies(Accounts)

Rules, 2014 are not applicable. The Company is not energy intensive. Further, the Company’s technology is

indigenouslydevelopedandbeingconstantlyupgradedbasedonearningsofthepromotersandemployees.

13

SarthakMetalsLimited|AnnualReport2017­18

14

(B)ForeignexchangeearningsandOutgo:

PUBLICDEPOSITS

YourCompanyhasnotaccepted,invitedand/orreceivedanydepositsfrompublicwithinthemeaningofsection73&76

oftheCompaniesAct,2013andtheCompanies(AcceptanceofDeposit)Rules,2014,asamendedfromtimetotimeduring

theyearunderreview.

ISSUE OF EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS/SWEAT EQUITY SHARES/ EMPLOYEE STOCK

OPTIONSCHEME

Atthebeginningoftheyear,therewerenoEquityshareswithdifferentialvotingrightsorsweatequitysharesoremployee

stockoptionschemeoutstanding.

Duringtheyear, theCompanyhasnot issuedanyequityshareswithdifferentialvotingrightsorsweatequitysharesor

sharesunderemployeestockoptionscheme.Hence,disclosuresregardingthesamearenotrequiredtobegiven.

DISCLOSUREONCOSTRECORDSMAINTENANANCE

TheprovisionswithrespecttomaintenanceofcostrecordsasspecifiedbytheCentralGovernmentundersub­section(1)

ofsection148oftheCompaniesAct,2013,isnotapplicabletotheCompany.

INTERNALCONTROLSYSTEMANDTHEIRADEQUACY

The Company has proper and adequate system of internal controls to ensure that all the assets are safeguarded and

protectedagainstlossesfromunauthorizeduseordispositionandthattransactionsareauthorized,recordedandreported

correctly. The Company has an effective system in place for achieving efficiency in operations, optimum and effective

utilizationofresources,monitoringthereofandcompliancewithapplicablelaws.Theauditorshavealsoexpressedtheir

satisfactionontheadequacyoftheinternalcontrolsystemsincorporatedbyyourcompany.

DISCLOSUREUNDERTHESEXUALHARASSMENTOFWOMENATWORKPLACE(PREVENTION,PROHIBITIONAND

REDRESSAL)ACT,2013:

TheCompanyhas inplaceapolicyonPrevention,ProhibitionandRedressalofSexualHarassmentatworkplace in line

with the requirements of the Sexual Harassment ofWomen atWorkplace (Prevention, Prohibition and Redressal) Act,

2013. The Company has complied with setting up of an Internal Complaints Committee (ICC) to redress complaints

received regarding sexualharassment.Thepolicyhas set guidelineson the redressal andenquiryprocess that is tobe

followed by complainants and the ICC, whilst dealing with issues related to sexual harassment at the work place. All

womenemployees(permanent,temporary,contractualandtrainees)arecoveredunderthispolicy.TheCompanyhasnot

receivedanycomplaintsduringtheyear.

DIRECTORS'RESPONSIBILITYSTATEMENT

Pursuant to the requirements under Section 134(5) of the Companies Act, 2013, with respect to the Director’s

ResponsibilitiesStatement,theDirectorsstateandherebyconfirmthat:

Particulars Ason01.04.2017(InRs.) Ason31.03.2018(InRs.)

Foreignexchangeearnings 5,71,99,953 24,21,80,995

ForeignExchangeOutgo 39,73,15,729 56,13,34,105

SarthakMetalsLimited|AnnualReport2017­18

15

(a) In the preparation of the annual accounts, the applicable accounting standards have been followed alongwith

properexplanationrelatingtomaterialdepartures;

(b) the directors have selected such accounting policies and applied them consistently and made judgments and

estimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompany

attheendofthefinancialyearandoftheprofitandlossofthecompanyforthatperiod;

(c) The directors have taken proper and sufficient care for the maintenance of adequate accounting records in

accordancewith the provisions of this Act for safeguarding the assets of the company and for preventing and

detectingfraudandotherirregularities;

(d)Thedirectorshavepreparedtheannualaccountsonagoingconcernbasis;and

(e)thedirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthat

suchsystemsareadequateandoperatingeffectively.

ACKNOWLEDGMENTS:

TheBoardofDirectorswishtoplaceonrecorditsappreciationforthecommitment,dedicationandhardworkdonebythe

employeesoftheCompanyandthecooperationextendedbyBanks,GovernmentAuthorities,Customers,Shareholdersand

looksforwardtoacontinuedmutualsupportandco­operation.

FORSARTHAKMETALSLIMITED

Sd/-

(ANOOPKUMARBANSAL)

(DINNo.01661844)

Chairman&ManagingDirector

Place:Bhilai,Chhattisgarh

Date:01.08.2018

SarthakMetalsLimited|AnnualReport2017­18

14

(B)ForeignexchangeearningsandOutgo:

PUBLICDEPOSITS

YourCompanyhasnotaccepted,invitedand/orreceivedanydepositsfrompublicwithinthemeaningofsection73&76

oftheCompaniesAct,2013andtheCompanies(AcceptanceofDeposit)Rules,2014,asamendedfromtimetotimeduring

theyearunderreview.

ISSUE OF EQUITY SHARES WITH DIFFERENTIAL VOTING RIGHTS/SWEAT EQUITY SHARES/ EMPLOYEE STOCK

OPTIONSCHEME

Atthebeginningoftheyear,therewerenoEquityshareswithdifferentialvotingrightsorsweatequitysharesoremployee

stockoptionschemeoutstanding.

Duringtheyear, theCompanyhasnot issuedanyequityshareswithdifferentialvotingrightsorsweatequitysharesor

sharesunderemployeestockoptionscheme.Hence,disclosuresregardingthesamearenotrequiredtobegiven.

DISCLOSUREONCOSTRECORDSMAINTENANANCE

TheprovisionswithrespecttomaintenanceofcostrecordsasspecifiedbytheCentralGovernmentundersub­section(1)

ofsection148oftheCompaniesAct,2013,isnotapplicabletotheCompany.

INTERNALCONTROLSYSTEMANDTHEIRADEQUACY

The Company has proper and adequate system of internal controls to ensure that all the assets are safeguarded and

protectedagainstlossesfromunauthorizeduseordispositionandthattransactionsareauthorized,recordedandreported

correctly. The Company has an effective system in place for achieving efficiency in operations, optimum and effective

utilizationofresources,monitoringthereofandcompliancewithapplicablelaws.Theauditorshavealsoexpressedtheir

satisfactionontheadequacyoftheinternalcontrolsystemsincorporatedbyyourcompany.

DISCLOSUREUNDERTHESEXUALHARASSMENTOFWOMENATWORKPLACE(PREVENTION,PROHIBITIONAND

REDRESSAL)ACT,2013:

TheCompanyhas inplaceapolicyonPrevention,ProhibitionandRedressalofSexualHarassmentatworkplace in line

with the requirements of the Sexual Harassment ofWomen atWorkplace (Prevention, Prohibition and Redressal) Act,

2013. The Company has complied with setting up of an Internal Complaints Committee (ICC) to redress complaints

received regarding sexualharassment.Thepolicyhas set guidelineson the redressal andenquiryprocess that is tobe

followed by complainants and the ICC, whilst dealing with issues related to sexual harassment at the work place. All

womenemployees(permanent,temporary,contractualandtrainees)arecoveredunderthispolicy.TheCompanyhasnot

receivedanycomplaintsduringtheyear.

DIRECTORS'RESPONSIBILITYSTATEMENT

Pursuant to the requirements under Section 134(5) of the Companies Act, 2013, with respect to the Director’s

ResponsibilitiesStatement,theDirectorsstateandherebyconfirmthat:

Particulars Ason01.04.2017(InRs.) Ason31.03.2018(InRs.)

Foreignexchangeearnings 5,71,99,953 24,21,80,995

ForeignExchangeOutgo 39,73,15,729 56,13,34,105

SarthakMetalsLimited|AnnualReport2017­18

15

(a) In the preparation of the annual accounts, the applicable accounting standards have been followed alongwith

properexplanationrelatingtomaterialdepartures;

(b) the directors have selected such accounting policies and applied them consistently and made judgments and

estimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsofthecompany

attheendofthefinancialyearandoftheprofitandlossofthecompanyforthatperiod;

(c) The directors have taken proper and sufficient care for the maintenance of adequate accounting records in

accordancewith the provisions of this Act for safeguarding the assets of the company and for preventing and

detectingfraudandotherirregularities;

(d)Thedirectorshavepreparedtheannualaccountsonagoingconcernbasis;and

(e)thedirectorshavedevisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthat

suchsystemsareadequateandoperatingeffectively.

ACKNOWLEDGMENTS:

TheBoardofDirectorswishtoplaceonrecorditsappreciationforthecommitment,dedicationandhardworkdonebythe

employeesoftheCompanyandthecooperationextendedbyBanks,GovernmentAuthorities,Customers,Shareholdersand

looksforwardtoacontinuedmutualsupportandco­operation.

FORSARTHAKMETALSLIMITED

Sd/-

(ANOOPKUMARBANSAL)

(DINNo.01661844)

Chairman&ManagingDirector

Place:Bhilai,Chhattisgarh

Date:01.08.2018

SarthakMetalsLimited|AnnualReport2017­18

ANNEXURE:A

PROVISIONSRELATINGTOREMUNERATIONOFMANAGERIALPERSONNEL,KMPANDSENIORMANAGEMENT:

1) To grant approval for formulation of the criteria for determining qualifications, positive attributes and

independenceofadirectorandrecommendtotheBoardofDirectorsapolicyrelatingto,theremunerationofthe

directors,keymanagerialpersonnelandotheremployees.

2) To grant approval for formulation of criteria for evaluation of performance of independent Directors and the

BoardofDirectors.

3) TograntapprovalfordevisingapolicyondiversityofBoardofDirectors.

4) To approve and recommend to the Board of Directors appointment of persons who are qualified to become

directorsandwhomaybeappointedinseniormanagementinaccordancewiththecriterialaiddownaswellas

removal.

5) Tograntapprovalwhethertoextentorcontinuethetermofappointmentoftheindependentdirector,onthebasis

ofthereportofperformanceevaluationofindependentdirectors.

1. Abriefoutlineofthecompany'sCSRpolicy,includingoverview of projects or programs proposed to beundertakenandareferencetotheweb­linktotheCSRpolicyandprojectsorprograms.

Sarthak Metals Limited is keen to working towardsprovidingeducationtotheunderpriviledgedkids. Inthisendeavor, the company has associated itselfwith ShoshitSevaSanghFoundationwhichoperatesaschoolinPatnaforthe Musahar(RatEating)CommunityofBihar.Thelinkofthewebsiteishttp://sssfoundation.org.SarthakMetalsLimitedisalsocommittedtohelpinglesserprivledged people in and around Bhilai, Chhattisgarh tohave access to affordable medical facilities like dialysis.Bhagwan Mahavir Jain Relief Trust has set up a dialysiscenterforthepoorinRaipur.SMLiscommittedtowardsprovidingaffordablehealthandeductioninthestateofChhattisgarhandisworkingtowardsprovidingsustainablesolutionsforthesame.

2. ThecompositionoftheCSRcommittee CompositionoftheCSRCommittee 1. Mr. Chetan Kumar­ Chairman/ Non­ Executive &

IndependentDirector 2. Mrs. Rama Kohli­ Member/ Non­ Executive &

IndependentDirector 3. Mr. Kishore Kumar Bansal­ Member/ Non­

Executive&Non­IndependentDirector

3. Average net profit of the company for last threefinancialyears.

Rs616.03Lacs

4. Prescribed CSR Expenditure (two percent of theamountasinitem3above)

Rs12.20Lacs

5. DetailsofCSRspentduringthefinancialyear: ShoshitSevaSanghFoundation–Rs2.4LacsCRY–Rs0.12LacsBhagwanMahavirJainReliefTrust–Rs2.00Lacs

AnnualReportonCSRActivities(Annexure-B)

16

SarthakMetalsLimited|AnnualReport2017­18

(1) (2) (3) (4) (5) (6) (7) (8)

Sl.No.

CSRprojectoractivity

Identified

Sectorinwhich

theProjectiscovered

Projectorprograms

(1)Localareaor

other(2)Specifythe

Stateanddistrict

whereprojectsor

programswereundertaken

Amountoutlay

(budget)projectorprograms

wise

(AmountinRs.)

Amountspentonthe

projectsorprogramsSub-heads:(1)Direct

expenditureonprojectsor

programs(2)

Overheads

(AmountinRs.)

Cumulativeexpenditure

uptothereporting

period(ason

31.03.2017)

Amountspent:

Directorthrough

implementing

agency

1. ShoshitSevaSanghFoundation

AffordableEducation

BIHAR Rs2.40Lacs

Rs2.40lacs Rs2.40lacs Direct

2 CRY AffordableEducation

CHHATTISGARH Unplanned Rs.0.12lacs Rs.0.12lacs Direct

3 BhagwanMahavirJainReliefTrust

AffordableHealth

CHHATTISGARH Unplanned Rs.2.00lacs Rs.2.00lacs Direct

6 In case the company has failed to spend the twopercent of the average net profit of the last threefinancialyearsoranypartthereof,thecompanyshallprovidethereasonsfornotspendingtheamountinitsBoardReport.

Section135ofTheCompaniesAct2013recommendsthatCSRexpenditurebytheCompanyshouldbepreferablydoneinandaroundtheareaofit'soperations.However,SML'sCSRcommitteewasunabletofindanyworthycauseinlinewithCompaniescauses.However,SMLiscommitteedtoAffordablehealthandAffordableEducationinthestateofChhattisgarhandshallworktowardsthesame.

7. AresponsibilitystatementoftheCSRCommitteethattheimplementationandmonitoringofCSRpolicy,isincompliance with CSR objectives and Policy of thecompany.

YES

17

(a) Totalamounttobespentforthefinancialyear Rs.9.03lacs

(b) Amountunspent,ifany Rs.6.63lacs

(c) Manner in which the amount spent during thefinancialyearisdetailedbelow

Rs2.40lacs–DonationtoSSSFoundation

SarthakMetalsLimited|AnnualReport2017­18

ANNEXURE:A

PROVISIONSRELATINGTOREMUNERATIONOFMANAGERIALPERSONNEL,KMPANDSENIORMANAGEMENT:

1) To grant approval for formulation of the criteria for determining qualifications, positive attributes and

independenceofadirectorandrecommendtotheBoardofDirectorsapolicyrelatingto,theremunerationofthe

directors,keymanagerialpersonnelandotheremployees.

2) To grant approval for formulation of criteria for evaluation of performance of independent Directors and the

BoardofDirectors.

3) TograntapprovalfordevisingapolicyondiversityofBoardofDirectors.

4) To approve and recommend to the Board of Directors appointment of persons who are qualified to become

directorsandwhomaybeappointedinseniormanagementinaccordancewiththecriterialaiddownaswellas

removal.

5) Tograntapprovalwhethertoextentorcontinuethetermofappointmentoftheindependentdirector,onthebasis

ofthereportofperformanceevaluationofindependentdirectors.

1. Abriefoutlineofthecompany'sCSRpolicy,includingoverview of projects or programs proposed to beundertakenandareferencetotheweb­linktotheCSRpolicyandprojectsorprograms.

Sarthak Metals Limited is keen to working towardsprovidingeducationtotheunderpriviledgedkids. Inthisendeavor, the company has associated itselfwith ShoshitSevaSanghFoundationwhichoperatesaschoolinPatnaforthe Musahar(RatEating)CommunityofBihar.Thelinkofthewebsiteishttp://sssfoundation.org.SarthakMetalsLimitedisalsocommittedtohelpinglesserprivledged people in and around Bhilai, Chhattisgarh tohave access to affordable medical facilities like dialysis.Bhagwan Mahavir Jain Relief Trust has set up a dialysiscenterforthepoorinRaipur.SMLiscommittedtowardsprovidingaffordablehealthandeductioninthestateofChhattisgarhandisworkingtowardsprovidingsustainablesolutionsforthesame.

2. ThecompositionoftheCSRcommittee CompositionoftheCSRCommittee 1. Mr. Chetan Kumar­ Chairman/ Non­ Executive &

IndependentDirector 2. Mrs. Rama Kohli­ Member/ Non­ Executive &

IndependentDirector 3. Mr. Kishore Kumar Bansal­ Member/ Non­

Executive&Non­IndependentDirector

3. Average net profit of the company for last threefinancialyears.

Rs616.03Lacs

4. Prescribed CSR Expenditure (two percent of theamountasinitem3above)

Rs12.20Lacs

5. DetailsofCSRspentduringthefinancialyear: ShoshitSevaSanghFoundation–Rs2.4LacsCRY–Rs0.12LacsBhagwanMahavirJainReliefTrust–Rs2.00Lacs

AnnualReportonCSRActivities(Annexure-B)

16

SarthakMetalsLimited|AnnualReport2017­18

(1) (2) (3) (4) (5) (6) (7) (8)

Sl.No.

CSRprojectoractivity

Identified

Sectorinwhich

theProjectiscovered

Projectorprograms

(1)Localareaor

other(2)Specifythe

Stateanddistrict

whereprojectsor

programswereundertaken

Amountoutlay

(budget)projectorprograms

wise

(AmountinRs.)

Amountspentonthe

projectsorprogramsSub-heads:(1)Direct

expenditureonprojectsor

programs(2)

Overheads

(AmountinRs.)

Cumulativeexpenditure

uptothereporting

period(ason

31.03.2017)

Amountspent:

Directorthrough

implementing

agency

1. ShoshitSevaSanghFoundation

AffordableEducation

BIHAR Rs2.40Lacs

Rs2.40lacs Rs2.40lacs Direct

2 CRY AffordableEducation

CHHATTISGARH Unplanned Rs.0.12lacs Rs.0.12lacs Direct

3 BhagwanMahavirJainReliefTrust

AffordableHealth

CHHATTISGARH Unplanned Rs.2.00lacs Rs.2.00lacs Direct

6 In case the company has failed to spend the twopercent of the average net profit of the last threefinancialyearsoranypartthereof,thecompanyshallprovidethereasonsfornotspendingtheamountinitsBoardReport.

Section135ofTheCompaniesAct2013recommendsthatCSRexpenditurebytheCompanyshouldbepreferablydoneinandaroundtheareaofit'soperations.However,SML'sCSRcommitteewasunabletofindanyworthycauseinlinewithCompaniescauses.However,SMLiscommitteedtoAffordablehealthandAffordableEducationinthestateofChhattisgarhandshallworktowardsthesame.

7. AresponsibilitystatementoftheCSRCommitteethattheimplementationandmonitoringofCSRpolicy,isincompliance with CSR objectives and Policy of thecompany.

YES

17

(a) Totalamounttobespentforthefinancialyear Rs.9.03lacs

(b) Amountunspent,ifany Rs.6.63lacs

(c) Manner in which the amount spent during thefinancialyearisdetailedbelow

Rs2.40lacs–DonationtoSSSFoundation

SarthakMetalsLimited|AnnualReport2017­18

FormNo.MGT-9

EXTRACTOFANNUALRETURN

Asonthefinancialyearendedon31stMarch2017

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and

Administration)Rules,2014]

I.REGISTRATIONANDOTHERDETAILS:

i) CIN:­L51102CT1995PLC009772

ii) RegistrationDate:­28/07/1995

iii) NameoftheCompany:­SARTHAKMETALSLIMITED

iv) Category/Sub­Categoryof:­CompanyLimitedbyShares/IndianNon-GovernmentCompany

v) Address of the Registered office and contact details:­ B.B.C. Colony, G.E. Road, Khursipar ,Bhilai- 490011,

Chhattisgarh

vi) Whetherlistedcompany:Yes

vii)Name,AddressandContactdetailsofRegistrarandTransferAgent,ifany:

BigshareServicesPrivateLimited

1stFloor,BharatTinWorksBuilding,

Opp.VasantOasisApartments(nexttoKeysHotel)

MarolMaroshiRoad,AndheriEast,Mumbai­400059

Tel:91­22­40430200•Fax:91­22­28475207

Email:ipo@bigshareonline.com

II. PRINCIPALBUSINESSACTIVITIESOFTHECOMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:­

Sl.No. Name and Description of main products /services

NICCodeoftheProduct/Service

%tototalturnoverofthecompany

1 MANUFACTURINGOFFERROALLOYS 27110 65.02%

2 MANUFACTURING OF ALUMINUM WIREFLIPPINGCOIL

27203 31.96%

III.PRINCIPALBUSINESSACTIVITIESOFTHECOMPANY

Sr.No. NAMEANDADDRESSOFTHECOMPANY

CIN/GLN HOLDING/SUBSIDIARY/ASSOCIATE

%ofsharesheld

ApplicableSection

NIL

18

SarthakMetalsLimited|AnnualReport2017­18

IVSHAREHOLDINGPATTERN(EquityShareCapitalBreakupaspercentageofTotalEquity)

i)Category­wiseShareHolding

CategoryofShareholders

No.ofSharesheldatthebeginningoftheyeari.e.01/04/2017

No.ofSharesheldattheendoftheyeari.e.31/03/2018

%changeduringtheyear

Demat Physical Total%ofTotalShares

DematPhysical

Total%ofTotalShares

A.Promoters ­

(1)Indian

Individual/HUF

7,349,700 - 7,349,700 53.69% 7,349,700 ­7,349,70

053.69% 0

CentralGovt. ­ ­ ­ ­ ­ ­ ­ ­ ­

StateGovt(s) ­ ­ ­ ­ ­ ­ ­ ­ ­

BodiesCorp 901,250 - -901,250 6.58% 901,250 ­ 901,250 6.58% 0

Banks/FI ­ ­ ­ ­ ­ ­ ­ ­ ­

AnyOtherDIRECTORSRELATIVES

1,229,000 - 1,229,0008.98%

1,229,000 -1,229,00

08.98%

0

Sub-total(A)(1):-

9,479,950 - 9,479,950 69.25% 9,479,9509,479,95

069.25% 0

(2)Foreign

NRIs­Individuals

­ ­ ­ ­ ­ ­ ­ ­ ­

Other–Individuals

­ ­ ­ ­ ­ ­ ­ ­ ­

BodiesCorp ­ ­ ­ ­ ­ ­ ­ ­ ­

Banks/FI ­ ­ ­ ­ ­ ­ ­ ­ ­

AnyOther ­ ­ ­ ­ ­ ­ ­ ­ ­

Sub-total(A)(2):-

­ ­ ­ ­ ­ ­ ­ ­ ­

Totalshareholding(A)=(A)(1)+(A)(2)

9479950 ­ 9479950 69.25% 9479950 - 9479950 69.25% 0

1.Institutions

MutualFunds ­ ­ ­ ­ ­ ­ ­ ­ ­

Banks/FI ­ ­ ­ ­ ­ ­ ­ ­ ­

19

SarthakMetalsLimited|AnnualReport2017­18

FormNo.MGT-9

EXTRACTOFANNUALRETURN

Asonthefinancialyearendedon31stMarch2017

[Pursuant to section 92(3) of the Companies Act, 2013 and rule 12(1) of the Companies (Management and

Administration)Rules,2014]

I.REGISTRATIONANDOTHERDETAILS:

i) CIN:­L51102CT1995PLC009772

ii) RegistrationDate:­28/07/1995

iii) NameoftheCompany:­SARTHAKMETALSLIMITED

iv) Category/Sub­Categoryof:­CompanyLimitedbyShares/IndianNon-GovernmentCompany

v) Address of the Registered office and contact details:­ B.B.C. Colony, G.E. Road, Khursipar ,Bhilai- 490011,

Chhattisgarh

vi) Whetherlistedcompany:Yes

vii)Name,AddressandContactdetailsofRegistrarandTransferAgent,ifany:

BigshareServicesPrivateLimited

1stFloor,BharatTinWorksBuilding,

Opp.VasantOasisApartments(nexttoKeysHotel)

MarolMaroshiRoad,AndheriEast,Mumbai­400059

Tel:91­22­40430200•Fax:91­22­28475207

Email:ipo@bigshareonline.com

II. PRINCIPALBUSINESSACTIVITIESOFTHECOMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoverofthecompanyshallbestated:­

Sl.No. Name and Description of main products /services

NICCodeoftheProduct/Service

%tototalturnoverofthecompany

1 MANUFACTURINGOFFERROALLOYS 27110 65.02%

2 MANUFACTURING OF ALUMINUM WIREFLIPPINGCOIL

27203 31.96%

III.PRINCIPALBUSINESSACTIVITIESOFTHECOMPANY

Sr.No. NAMEANDADDRESSOFTHECOMPANY

CIN/GLN HOLDING/SUBSIDIARY/ASSOCIATE

%ofsharesheld

ApplicableSection

NIL

18

SarthakMetalsLimited|AnnualReport2017­18

IVSHAREHOLDINGPATTERN(EquityShareCapitalBreakupaspercentageofTotalEquity)

i)Category­wiseShareHolding

CategoryofShareholders

No.ofSharesheldatthebeginningoftheyeari.e.01/04/2017

No.ofSharesheldattheendoftheyeari.e.31/03/2018

%changeduringtheyear

Demat Physical Total%ofTotalShares

DematPhysical

Total%ofTotalShares

A.Promoters ­

(1)Indian

Individual/HUF

7,349,700 - 7,349,700 53.69% 7,349,700 ­7,349,70

053.69% 0

CentralGovt. ­ ­ ­ ­ ­ ­ ­ ­ ­

StateGovt(s) ­ ­ ­ ­ ­ ­ ­ ­ ­

BodiesCorp 901,250 - -901,250 6.58% 901,250 ­ 901,250 6.58% 0

Banks/FI ­ ­ ­ ­ ­ ­ ­ ­ ­

AnyOtherDIRECTORSRELATIVES

1,229,000 - 1,229,0008.98%

1,229,000 -1,229,00

08.98%

0

Sub-total(A)(1):-

9,479,950 - 9,479,950 69.25% 9,479,9509,479,95

069.25% 0

(2)Foreign

NRIs­Individuals

­ ­ ­ ­ ­ ­ ­ ­ ­

Other–Individuals

­ ­ ­ ­ ­ ­ ­ ­ ­

BodiesCorp ­ ­ ­ ­ ­ ­ ­ ­ ­

Banks/FI ­ ­ ­ ­ ­ ­ ­ ­ ­

AnyOther ­ ­ ­ ­ ­ ­ ­ ­ ­

Sub-total(A)(2):-

­ ­ ­ ­ ­ ­ ­ ­ ­

Totalshareholding(A)=(A)(1)+(A)(2)

9479950 ­ 9479950 69.25% 9479950 - 9479950 69.25% 0

1.Institutions

MutualFunds ­ ­ ­ ­ ­ ­ ­ ­ ­

Banks/FI ­ ­ ­ ­ ­ ­ ­ ­ ­

19

SarthakMetalsLimited|AnnualReport2017­18

CentralGovt. ­ ­ ­ ­ ­ ­ ­ ­ ­

StateGovt(s) ­ ­ ­ ­ ­ ­ ­ ­ ­

VentureCapitalFunds ­ ­ ­ ­ ­ ­ ­ ­ ­

InsuranceCompanies ­ ­ ­ ­ ­ ­ ­ ­ ­

FIIs ­ ­ ­ ­ ­ ­ ­ ­ ­

ForeignVentureCapitalFunds

­ ­ ­ ­ ­ ­ ­ ­ ­

Others(Specify) ­ ­ ­ ­ ­ ­ ­ ­ ­

Sub–TotalB(1) ­ ­ ­ ­ ­ ­ ­ ­ ­

2.Non-Institutions

BodiesCorporate 684000 - 684000 5.00% 886000 - 886000 6.47% 1.48%

(Overseas) 36000 ­ 36000 0.26% 16000 - 16000 0.12% (0.15)%

Individuals

i)IndividualshareholdersholdingnominalsharecapitaluptoRs.1lakhs

781838 ­ 781838 5.71% 713250 - 713250 5.21% (0.50)%

ii)IndividualshareholdersholdingnominalsharecapitalinexcessofRs1lakhs

2356550 ­ 2356550 17.21% 2560550 - 2560550 18.70% 1.49%

c)Others(CLEARINGMEMBER)

351412 - 351412 2.57% 34000 ­ 34000 0.25% (2.32)%

Sub-total(B)(2):- 4209800 - 4209800 30.75% 4209800 - 4209800 30.75% 0

TotalPublicShareholding(B)=(B)(1)+(B)(2)

4209800 - 4209800 30.75% 4209800 4209800 30.75% 0

C.SharesheldbyCustodianforGDRs&ADRs

GrandTotal(A+B+C) 1368975 - 1368975 100% 13689750 13689750 100% 0%

20

SarthakMetalsLimited|AnnualReport2017­18

(ii)ShareholdingofPromoters

Sl.No.

Shareholder'sNameShareholdingatthebeginningoftheyear

01/04/2017Shareholdingattheendofthe

year31/03/2018

No.ofShares %oftotalSharesoftheCompany

%ofSharesPledged/encumberedtototalshares

No.ofShares

%oftotalSharesof

theCompany

%ofShares

Pledged/encumberedtototalshares

%changeinshareholdingduringtheYear

1MR.ANOOPKUMARBANSAL

1145250 8.37% NA 1145250 8.37% NA 0

2MR.KISHOREKUMARBANSAL

741000 5.41% NA 741000 5.41% NA 0

3 MR.SANJAYSHAH 535950 3.91% NA 535950 3.91% NA 0

4MR.MANOJKUMARBANSAL

3782700 27.63% NA 3782700 27.63% NA 0

5 MS.SHALINISHAH 261000 1.91% NA 261000 1.91% NA 0

6 MS.CHAMPABENSHAH 277200 2.02% NA 277200 2.02% NA 0

7MANOJKUMARBANSAL(HUF)

213300 1.55% NA 213300 1.55% NA 0

8 DESHRAJBANSAL(HUF) 540000 3.94% NA 540000 3.94% NA 0

9CHAMANLALKHUSHALJISHAH(HUF)

247500 1.81% NA 247500 1.81% NA 0

10ANOOPKUMARBANSAL(HUF)

144000 1.05% NA 144000 1.05% NA 0

11 MS.SANJUBANSAL 237000 1.73% NA 237000 1.73% NA 0

12 MS.KIRTIBANSAL 231300 1.69% NA 231300 1.69% NA 0

13 MS.SIMMIBANSAL 222500 1.63% NA 222500 1.63% NA 0

14SARTHAKENERGYPRIVATELIMITED

1250 0.0091% NA 1250 0.0091% NA 0

15METALGRACEINJECTIONALLOYSPRIVATELIMITED

900000 6.57% NA 900000 6.57% NA 0

TOTAL 9479950 69.229% 9479950 69.229% 0

21

SarthakMetalsLimited|AnnualReport2017­18

CentralGovt. ­ ­ ­ ­ ­ ­ ­ ­ ­

StateGovt(s) ­ ­ ­ ­ ­ ­ ­ ­ ­

VentureCapitalFunds ­ ­ ­ ­ ­ ­ ­ ­ ­

InsuranceCompanies ­ ­ ­ ­ ­ ­ ­ ­ ­

FIIs ­ ­ ­ ­ ­ ­ ­ ­ ­

ForeignVentureCapitalFunds

­ ­ ­ ­ ­ ­ ­ ­ ­

Others(Specify) ­ ­ ­ ­ ­ ­ ­ ­ ­

Sub–TotalB(1) ­ ­ ­ ­ ­ ­ ­ ­ ­

2.Non-Institutions

BodiesCorporate 684000 - 684000 5.00% 886000 - 886000 6.47% 1.48%

(Overseas) 36000 ­ 36000 0.26% 16000 - 16000 0.12% (0.15)%

Individuals

i)IndividualshareholdersholdingnominalsharecapitaluptoRs.1lakhs

781838 ­ 781838 5.71% 713250 - 713250 5.21% (0.50)%

ii)IndividualshareholdersholdingnominalsharecapitalinexcessofRs1lakhs

2356550 ­ 2356550 17.21% 2560550 - 2560550 18.70% 1.49%

c)Others(CLEARINGMEMBER)

351412 - 351412 2.57% 34000 ­ 34000 0.25% (2.32)%

Sub-total(B)(2):- 4209800 - 4209800 30.75% 4209800 - 4209800 30.75% 0

TotalPublicShareholding(B)=(B)(1)+(B)(2)

4209800 - 4209800 30.75% 4209800 4209800 30.75% 0

C.SharesheldbyCustodianforGDRs&ADRs

GrandTotal(A+B+C) 1368975 - 1368975 100% 13689750 13689750 100% 0%

20

SarthakMetalsLimited|AnnualReport2017­18

(ii)ShareholdingofPromoters

Sl.No.

Shareholder'sNameShareholdingatthebeginningoftheyear

01/04/2017Shareholdingattheendofthe

year31/03/2018

No.ofShares %oftotalSharesoftheCompany

%ofSharesPledged/encumberedtototalshares

No.ofShares

%oftotalSharesof

theCompany

%ofShares

Pledged/encumberedtototalshares

%changeinshareholdingduringtheYear

1MR.ANOOPKUMARBANSAL

1145250 8.37% NA 1145250 8.37% NA 0

2MR.KISHOREKUMARBANSAL

741000 5.41% NA 741000 5.41% NA 0

3 MR.SANJAYSHAH 535950 3.91% NA 535950 3.91% NA 0

4MR.MANOJKUMARBANSAL

3782700 27.63% NA 3782700 27.63% NA 0

5 MS.SHALINISHAH 261000 1.91% NA 261000 1.91% NA 0

6 MS.CHAMPABENSHAH 277200 2.02% NA 277200 2.02% NA 0

7MANOJKUMARBANSAL(HUF)

213300 1.55% NA 213300 1.55% NA 0

8 DESHRAJBANSAL(HUF) 540000 3.94% NA 540000 3.94% NA 0

9CHAMANLALKHUSHALJISHAH(HUF)

247500 1.81% NA 247500 1.81% NA 0

10ANOOPKUMARBANSAL(HUF)

144000 1.05% NA 144000 1.05% NA 0

11 MS.SANJUBANSAL 237000 1.73% NA 237000 1.73% NA 0

12 MS.KIRTIBANSAL 231300 1.69% NA 231300 1.69% NA 0

13 MS.SIMMIBANSAL 222500 1.63% NA 222500 1.63% NA 0

14SARTHAKENERGYPRIVATELIMITED

1250 0.0091% NA 1250 0.0091% NA 0

15METALGRACEINJECTIONALLOYSPRIVATELIMITED

900000 6.57% NA 900000 6.57% NA 0

TOTAL 9479950 69.229% 9479950 69.229% 0

21

SarthakMetalsLimited|AnnualReport2017­18

(iii)ChangeinPromotersShareholding(pleasespecify,ifthereisnochange):

Sl.No.

ParticularsShareholdingatthebeginningofthe

year01/04/2017CumulativeShareholdingduring

theyear31/03/2018

No.ofshares%oftotal

sharesofthecompany

No.ofshares%oftotal

sharesofthecompany

1 MR.ANOOPKUMARBANSAL (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

2 MR.KISHOREKUMAR (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

3 MR.SANJAYSHAH (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

4 MR.MANOJKUMARBANSAL

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

5 MS.SHALINISHAH (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

6 MS.CHAMPABENSHAH (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

7MANOJKUMARBANSAL(HUF)

(NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

22

SarthakMetalsLimited|AnnualReport2017­18

23

8 DESHRAJBANSAL(HUF) (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

9CHAMANLALKHUSHALJISHAH(HUF)

(NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

10ANOOPKUMARBANSAL(HUF)

(NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

11 MS.SANJUBANSAL (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

12 MS.KIRTIBANSAL (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

13 MS.SIMMIBANSAL (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

14SARTHAKENERGYPRIVATELIMITED

Atthebeginningoftheyear ­ ­ ­ ­

Decreaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

15METALGRACEINJECTIONALLOYSPRIVATELIMITED

(NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

SarthakMetalsLimited|AnnualReport2017­18

(iii)ChangeinPromotersShareholding(pleasespecify,ifthereisnochange):

Sl.No.

ParticularsShareholdingatthebeginningofthe

year01/04/2017CumulativeShareholdingduring

theyear31/03/2018

No.ofshares%oftotal

sharesofthecompany

No.ofshares%oftotal

sharesofthecompany

1 MR.ANOOPKUMARBANSAL (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

2 MR.KISHOREKUMAR (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

3 MR.SANJAYSHAH (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

4 MR.MANOJKUMARBANSAL

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

5 MS.SHALINISHAH (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

6 MS.CHAMPABENSHAH (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

7MANOJKUMARBANSAL(HUF)

(NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

22

SarthakMetalsLimited|AnnualReport2017­18

23

8 DESHRAJBANSAL(HUF) (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

9CHAMANLALKHUSHALJISHAH(HUF)

(NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

10ANOOPKUMARBANSAL(HUF)

(NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

11 MS.SANJUBANSAL (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

12 MS.KIRTIBANSAL (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

13 MS.SIMMIBANSAL (NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

14SARTHAKENERGYPRIVATELIMITED

Atthebeginningoftheyear ­ ­ ­ ­

Decreaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

15METALGRACEINJECTIONALLOYSPRIVATELIMITED

(NOCHANGE)

Atthebeginningoftheyear ­ ­ ­ ­

Increaseinshareholding ­ ­ ­ ­

AttheEndoftheyear ­ ­ ­ ­

SarthakMetalsLimited|AnnualReport2017­18

(iv)ShareholdingPatternoftoptenShareholders(otherthanDirectors,PromotersandHoldersofGDRsandADRs):

Sl.No.

Particulars

Shareholdingatthebeginningoftheyear

01/04/2017

CumulativeShareholdingduringtheyear31/03/2018

Increase/DecreaseinShareholding

No.ofshares

%oftotalsharesofthe

company

No.ofshares

%oftotalsharesofthe

company

1. GUINESSSECURITIESLTD. 280000 2.05% 309000 2.26%Increase

29000(0.21%)

2. MR.SANJAYPOPATLALJAIN 232000 1.69% 228000 1.67%Decrease

4000(0.02%)

3. BAHUBALIFINANCIALSERVICESLTD. 164000 1.20% ­ ­Decrease

164000(1.20%)

4. BHILAITECHNOPRIVATELIMITED 164000 1.20% 324000 2.37%Increase

160000(1.17%)

5.MR.PARASRAMHOLDINGSPRIVATELIMITED

160000 1.17% 2000 0.01%

Decrease

158000(1.16%)

6. MR.GOPALAGARWAL 160000 1.17% 160000 1.17%0

7.MR.SUNILKUMARPYAREYLALAGARWAL

160000 1.17% 320000 2.34%

Increase

160000(0.17%)

8. MR.PRAKASHCHANDRABHATT 80000 0.58% 104000 0.76%Increase

24000(0.18%)

9. MR.HARSHSARAWGI 144000 1.05% 144000 1.05%0

10. MRS.JAYABHATT 118500 0.87% 118500 0.87%0

11.ILANDFSSECURITIESSERVICESLIMITED

­ ­ 167700 1.23%

Increase

167700(1.23%)

24

SarthakMetalsLimited|AnnualReport2017­18

(v)ShareholdingofDirectorsandKeyManagerialPersonnel:

Sl.No.

ParticularsShareholdingatthebeginningof

theyear01/04/2017CumulativeShareholdingduring

theyear31/03/2018

ForeachoftheDirectorsandKMP No.ofshares%oftotal

sharesofthecompany

No.ofshares%oftotal

sharesofthecompany

1.MR.ANOOPKUMARBANSAL(MANAGINGDIRECTOR)

1145250 8.37% 1145250 8.37%

2.MR.CHETANKUMAR(INDEPENDENTDIRECTOR)

NIL NIL NIL NIL

3. MR.MAYURBHATT(WHOLETIMEDIRECTOR)

454050 3.32% 454050 3.32%

4. MR.SANJAYSHAH(WHOLETIMEDIRECTOR)

535950 3.92% 535950 3.91%

5. MS.RAMAKOHLI(INDEPENDENTDIRECTOR)

NIL NIL NIL NIL

6. MR.KISHOREKUMARBANSAL(DIRECTOR)

741000 5.41% 741000 5.41%

7. MR.ANIRUDHSINGHAL(CHIEFFINANCIALOFFICER)

56000 0.41% 56000 0.41%

8. MRS.ITIKASINGHAL(COMPANYSECRETARY)

NIL NIL NIL NIL

(v)INDEBTEDNESS:

IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment

SecuredLoansexcludingdeposits

UnsecuredLoans

DepositsTotal

Indebtedness

Indebtednessatthebeginningofthefinancialyear

I) PrincipalAmount 20,23,43,291 7,01,00,000 ­ 27,24,43,291

II) Interestduebutnotpaid ­ ­ ­ ­

III)Interestaccruedbutnotdue ­ ­ ­ ­

Total(i+ii+iii) 20,23,43,291 7,01,00,000 ­ 27,24,43,291

ChangeinIndebtednessduringthefinancialyear*Addition*Reduction (4,25,51,752

­2,87,89,356

­­

­(1,37,62,396)

NetChange (4,25,51,752) 2,87,89,356 ­ (1,37,62,396)

Indebtednessattheendofthefinancialyear

I) PrincipalAmount 15,97,91,539 9,88,89,356 ­ 25,86,80,895.00

II)Interestduebutnotpaid ­ ­ ­ ­

III)Interestaccruedbutnotdue ­ ­ ­ ­

Total(i+ii+iii) 15,97,91,539 3,24,618 ­ 25,86,80,895.00

25

(InRupees)

SarthakMetalsLimited|AnnualReport2017­18

(iv)ShareholdingPatternoftoptenShareholders(otherthanDirectors,PromotersandHoldersofGDRsandADRs):

Sl.No.

Particulars

Shareholdingatthebeginningoftheyear

01/04/2017

CumulativeShareholdingduringtheyear31/03/2018

Increase/DecreaseinShareholding

No.ofshares

%oftotalsharesofthe

company

No.ofshares

%oftotalsharesofthe

company

1. GUINESSSECURITIESLTD. 280000 2.05% 309000 2.26%Increase

29000(0.21%)

2. MR.SANJAYPOPATLALJAIN 232000 1.69% 228000 1.67%Decrease

4000(0.02%)

3. BAHUBALIFINANCIALSERVICESLTD. 164000 1.20% ­ ­Decrease

164000(1.20%)

4. BHILAITECHNOPRIVATELIMITED 164000 1.20% 324000 2.37%Increase

160000(1.17%)

5.MR.PARASRAMHOLDINGSPRIVATELIMITED

160000 1.17% 2000 0.01%

Decrease

158000(1.16%)

6. MR.GOPALAGARWAL 160000 1.17% 160000 1.17%0

7.MR.SUNILKUMARPYAREYLALAGARWAL

160000 1.17% 320000 2.34%

Increase

160000(0.17%)

8. MR.PRAKASHCHANDRABHATT 80000 0.58% 104000 0.76%Increase

24000(0.18%)

9. MR.HARSHSARAWGI 144000 1.05% 144000 1.05%0

10. MRS.JAYABHATT 118500 0.87% 118500 0.87%0

11.ILANDFSSECURITIESSERVICESLIMITED

­ ­ 167700 1.23%

Increase

167700(1.23%)

24

SarthakMetalsLimited|AnnualReport2017­18

(v)ShareholdingofDirectorsandKeyManagerialPersonnel:

Sl.No.

ParticularsShareholdingatthebeginningof

theyear01/04/2017CumulativeShareholdingduring

theyear31/03/2018

ForeachoftheDirectorsandKMP No.ofshares%oftotal

sharesofthecompany

No.ofshares%oftotal

sharesofthecompany

1.MR.ANOOPKUMARBANSAL(MANAGINGDIRECTOR)

1145250 8.37% 1145250 8.37%

2.MR.CHETANKUMAR(INDEPENDENTDIRECTOR)

NIL NIL NIL NIL

3. MR.MAYURBHATT(WHOLETIMEDIRECTOR)

454050 3.32% 454050 3.32%

4. MR.SANJAYSHAH(WHOLETIMEDIRECTOR)

535950 3.92% 535950 3.91%

5. MS.RAMAKOHLI(INDEPENDENTDIRECTOR)

NIL NIL NIL NIL

6. MR.KISHOREKUMARBANSAL(DIRECTOR)

741000 5.41% 741000 5.41%

7. MR.ANIRUDHSINGHAL(CHIEFFINANCIALOFFICER)

56000 0.41% 56000 0.41%

8. MRS.ITIKASINGHAL(COMPANYSECRETARY)

NIL NIL NIL NIL

(v)INDEBTEDNESS:

IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment

SecuredLoansexcludingdeposits

UnsecuredLoans

DepositsTotal

Indebtedness

Indebtednessatthebeginningofthefinancialyear

I) PrincipalAmount 20,23,43,291 7,01,00,000 ­ 27,24,43,291

II) Interestduebutnotpaid ­ ­ ­ ­

III)Interestaccruedbutnotdue ­ ­ ­ ­

Total(i+ii+iii) 20,23,43,291 7,01,00,000 ­ 27,24,43,291

ChangeinIndebtednessduringthefinancialyear*Addition*Reduction (4,25,51,752

­2,87,89,356

­­

­(1,37,62,396)

NetChange (4,25,51,752) 2,87,89,356 ­ (1,37,62,396)

Indebtednessattheendofthefinancialyear

I) PrincipalAmount 15,97,91,539 9,88,89,356 ­ 25,86,80,895.00

II)Interestduebutnotpaid ­ ­ ­ ­

III)Interestaccruedbutnotdue ­ ­ ­ ­

Total(i+ii+iii) 15,97,91,539 3,24,618 ­ 25,86,80,895.00

25

(InRupees)

SarthakMetalsLimited|AnnualReport2017­18

Sl.No. ParticularsofRemuneration NameofMD/WTD/Manager TotalAmount

MR.ANOOPKUMARBANSAL

MR.MAYIURBHATT

MR.SANJAYSHAH

1.

GrossSalary

(a) SalaryasperprovisionscontainedinSection17(1)oftheIncomeTaxAct,1961

24,00,000 6,50,000 24,00,000 54,50,000

(b) Valueofperquisitesu/s17(2)oftheIncomeTaxAct,1961

NIL NIL NIL NIL

(c) ProfitsinlieuofsalaryunderSection17(3)oftheIncomeTaxAct,1961

NIL NIL NIL NIL

2 StockOption NIL NIL NIL NIL

3 SweatEquity NIL NIL NIL NIL

4CommissionAs%ofprofitOthers,specify

NIL NIL NIL NIL

5 Others,specify NIL NIL NIL NIL

Total(A) 24,00,000 6,50,000 24,00,000 54,50,000

OverallCeilingaspertheAct 42,00,000 42,00,000 42,00,000

(vi)VI.REMUNERATIONOFDIRECTORSANDKEYMANAGERIALPERSONNEL

A.RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager:

Sl.No. ParticularsofRemuneration NameofDirectors TotalAmount

MR.CHETANKUMAR

MRS.RAMAKOHLI

MR.KISHOREKUMARBANSAL

1. IndependentDirectors*Feeforattendingboardcommitteemeetings*Commission*Other,Salary

NIL NIL NIL NIL

Total(1) NIL NIL NIL NIL

2. OtherNon­ExecutiveDirectors*Feeforattendingboardcommitteemeetings*Commission*Others,pleasespecify

NIL NIL NIL NIL

Total(2) NIL NIL NIL NIL

Total(B)=(1+2) NIL NIL NIL NIL

TotalManagerialRemuneration NIL NIL NIL NIL

OverallCeilingaspertheAct withintheCeilingLimit

withintheCeilingLimit

withintheCeilingLimit

B.Remunerationtootherdirectors:

26

(InRupees)

(InRupees)

SarthakMetalsLimited|AnnualReport2017­18

Sl.No. ParticularsofRemuneration KeyManagerialPersonnel

CompanySecretary

CFO TOTAL

1.GrossSalary(a) SalaryasperprovisionscontainedinSection17(1)oftheIncomeTaxAct,1961

300,000 6,50,000 9,50,000

(b) Valueofperquisitesu/s17(2)oftheIncomeTaxAct,1961 NIL NIL NIL

(c) ProfitsinlieuofsalaryunderSection17(3)oftheIncomeTaxAct,1961

NIL NIL NIL

2 StockOption NIL NIL NIL

3 SweatEquity NIL NIL NIL

4CommissionAs%ofprofitOthers,specify

NIL NIL NIL

5 Others,specify NIL NIL NIL

Total(A) 300,000 6,50,000 9,50,000

OverallCeilingaspertheActwithintheCeilingLimit

withintheCeilingLimit

C.REMUNERATIONTOKEYMANAGERIALPERSONNELOTHERTHANMD/MANAGER/WTD

TypeSectionofthe

CompaniesActBrief

Description

DetailsofPenalty/punishment/Compounding

feesimposed

Authority[RD/NCLT/

COURT]

Appealmade,ifany(giveDetails)

A.COMPANY

Penalty

Punishment

Compounding

B.DIRECTORS

Penalty

Punishment

Compounding

C.OTHEROFFICERSINDEFAULT

Penalty

Punishment

Compounding

VII.PENALTIES/PUNISHMENT/COMPOUNDINGOFOFFENCES:NIL

FORSARTHAKMETALSLIMITED

Sd/-

ANOOPKUMARBANSAL

ManagingDirector

01661844

MAYURBHATT

Director

07586457

Place:Bhilai,Chhattisgrah

Date:01.08.2018

27

(InRupees)

SarthakMetalsLimited|AnnualReport2017­18

Sl.No. ParticularsofRemuneration NameofMD/WTD/Manager TotalAmount

MR.ANOOPKUMARBANSAL

MR.MAYIURBHATT

MR.SANJAYSHAH

1.

GrossSalary

(a) SalaryasperprovisionscontainedinSection17(1)oftheIncomeTaxAct,1961

24,00,000 6,50,000 24,00,000 54,50,000

(b) Valueofperquisitesu/s17(2)oftheIncomeTaxAct,1961

NIL NIL NIL NIL

(c) ProfitsinlieuofsalaryunderSection17(3)oftheIncomeTaxAct,1961

NIL NIL NIL NIL

2 StockOption NIL NIL NIL NIL

3 SweatEquity NIL NIL NIL NIL

4CommissionAs%ofprofitOthers,specify

NIL NIL NIL NIL

5 Others,specify NIL NIL NIL NIL

Total(A) 24,00,000 6,50,000 24,00,000 54,50,000

OverallCeilingaspertheAct 42,00,000 42,00,000 42,00,000

(vi)VI.REMUNERATIONOFDIRECTORSANDKEYMANAGERIALPERSONNEL

A.RemunerationtoManagingDirector,Whole-timeDirectorsand/orManager:

Sl.No. ParticularsofRemuneration NameofDirectors TotalAmount

MR.CHETANKUMAR

MRS.RAMAKOHLI

MR.KISHOREKUMARBANSAL

1. IndependentDirectors*Feeforattendingboardcommitteemeetings*Commission*Other,Salary

NIL NIL NIL NIL

Total(1) NIL NIL NIL NIL

2. OtherNon­ExecutiveDirectors*Feeforattendingboardcommitteemeetings*Commission*Others,pleasespecify

NIL NIL NIL NIL

Total(2) NIL NIL NIL NIL

Total(B)=(1+2) NIL NIL NIL NIL

TotalManagerialRemuneration NIL NIL NIL NIL

OverallCeilingaspertheAct withintheCeilingLimit

withintheCeilingLimit

withintheCeilingLimit

B.Remunerationtootherdirectors:

26

(InRupees)

(InRupees)

SarthakMetalsLimited|AnnualReport2017­18

Sl.No. ParticularsofRemuneration KeyManagerialPersonnel

CompanySecretary

CFO TOTAL

1.GrossSalary(a) SalaryasperprovisionscontainedinSection17(1)oftheIncomeTaxAct,1961

300,000 6,50,000 9,50,000

(b) Valueofperquisitesu/s17(2)oftheIncomeTaxAct,1961 NIL NIL NIL

(c) ProfitsinlieuofsalaryunderSection17(3)oftheIncomeTaxAct,1961

NIL NIL NIL

2 StockOption NIL NIL NIL

3 SweatEquity NIL NIL NIL

4CommissionAs%ofprofitOthers,specify

NIL NIL NIL

5 Others,specify NIL NIL NIL

Total(A) 300,000 6,50,000 9,50,000

OverallCeilingaspertheActwithintheCeilingLimit

withintheCeilingLimit

C.REMUNERATIONTOKEYMANAGERIALPERSONNELOTHERTHANMD/MANAGER/WTD

TypeSectionofthe

CompaniesActBrief

Description

DetailsofPenalty/punishment/Compounding

feesimposed

Authority[RD/NCLT/

COURT]

Appealmade,ifany(giveDetails)

A.COMPANY

Penalty

Punishment

Compounding

B.DIRECTORS

Penalty

Punishment

Compounding

C.OTHEROFFICERSINDEFAULT

Penalty

Punishment

Compounding

VII.PENALTIES/PUNISHMENT/COMPOUNDINGOFOFFENCES:NIL

FORSARTHAKMETALSLIMITED

Sd/-

ANOOPKUMARBANSAL

ManagingDirector

01661844

MAYURBHATT

Director

07586457

Place:Bhilai,Chhattisgrah

Date:01.08.2018

27

(InRupees)

SarthakMetalsLimited|AnnualReport2017­18

FormAOC-1

(Pursuanttofirstprovisotosub­section(3)ofsection129readwithrule5ofCompanies(Accounts)Rules,2014)

Statementcontainingsalientfeaturesofthefinancialstatementof

subsidiaries/associatecompanies/jointventures

Part“A”:Subsidiaries

(InformationinrespectofeachsubsidiarytobepresentedwithamountsinRs.)

Sl.No.

Particulars Details

1. Nameofthesubsidiary NOTAPPLICABLE

2. Reportingperiodforthesubsidiaryconcerned,ifdifferentfromtheholdingcompany'sreportingperiod

3. ReportingcurrencyandExchangerateasonthelastdateoftherelevantFinancialyearinthecaseofforeignsubsidiaries

4. Sharecapital

5. Reserves&surplus

6. Totalassets

7. TotalLiabilities

8. Investments

9. Turnover

10. Profitbeforetaxation

11. Provisionfortaxation

12. Profitaftertaxation

13. ProposedDividend

14. %ofshareholding

Notes:Thefollowinginformationshallbefurnishedattheendofthestatement:

1.Namesofsubsidiarieswhichareyettocommenceoperations

2.Namesofsubsidiarieswhichhavebeenliquidatedorsoldduringtheyear.

28

SarthakMetalsLimited|AnnualReport2017­18

Part“B”:AssociatesandJointVentures

StatementpursuanttoSection129(3)oftheCompaniesAct,2013

relatedtoAssociateCompaniesandJointVentures

Sl.No. Particulars Name1 Name2

NameofAssociates/JointVentures

1. LatestauditedBalanceSheetDate

2. SharesofAssociate/JointVenturesheldbythecompanyontheyearend

No.

AmountofInvestmentinAssociates/JointVenture

ExtendofHolding%

3 Descriptionofhowthereissignificantinfluence

4 Reasonwhytheassociate/jointventureisnotconsolidated

5 NetworthattributabletoShareholdingasperlatestauditedBalanceSheet

6 Profit/Lossfortheyear

i.ConsideredinConsolidation

ii.NotConsideredinConsolidation

1.Namesofassociatesorjointventureswhichareyettocommenceoperations

2.Namesofassociatesorjointventureswhichhavebeenliquidatedorsoldduringtheyear.

Note:ThisFormistobecertifiedinthesamemannerinwhichtheBalanceSheetistobecertified.

29

SarthakMetalsLimited|AnnualReport2017­18

FormAOC-1

(Pursuanttofirstprovisotosub­section(3)ofsection129readwithrule5ofCompanies(Accounts)Rules,2014)

Statementcontainingsalientfeaturesofthefinancialstatementof

subsidiaries/associatecompanies/jointventures

Part“A”:Subsidiaries

(InformationinrespectofeachsubsidiarytobepresentedwithamountsinRs.)

Sl.No.

Particulars Details

1. Nameofthesubsidiary NOTAPPLICABLE

2. Reportingperiodforthesubsidiaryconcerned,ifdifferentfromtheholdingcompany'sreportingperiod

3. ReportingcurrencyandExchangerateasonthelastdateoftherelevantFinancialyearinthecaseofforeignsubsidiaries

4. Sharecapital

5. Reserves&surplus

6. Totalassets

7. TotalLiabilities

8. Investments

9. Turnover

10. Profitbeforetaxation

11. Provisionfortaxation

12. Profitaftertaxation

13. ProposedDividend

14. %ofshareholding

Notes:Thefollowinginformationshallbefurnishedattheendofthestatement:

1.Namesofsubsidiarieswhichareyettocommenceoperations

2.Namesofsubsidiarieswhichhavebeenliquidatedorsoldduringtheyear.

28

SarthakMetalsLimited|AnnualReport2017­18

Part“B”:AssociatesandJointVentures

StatementpursuanttoSection129(3)oftheCompaniesAct,2013

relatedtoAssociateCompaniesandJointVentures

Sl.No. Particulars Name1 Name2

NameofAssociates/JointVentures

1. LatestauditedBalanceSheetDate

2. SharesofAssociate/JointVenturesheldbythecompanyontheyearend

No.

AmountofInvestmentinAssociates/JointVenture

ExtendofHolding%

3 Descriptionofhowthereissignificantinfluence

4 Reasonwhytheassociate/jointventureisnotconsolidated

5 NetworthattributabletoShareholdingasperlatestauditedBalanceSheet

6 Profit/Lossfortheyear

i.ConsideredinConsolidation

ii.NotConsideredinConsolidation

1.Namesofassociatesorjointventureswhichareyettocommenceoperations

2.Namesofassociatesorjointventureswhichhavebeenliquidatedorsoldduringtheyear.

Note:ThisFormistobecertifiedinthesamemannerinwhichtheBalanceSheetistobecertified.

29

SarthakMetalsLimited|AnnualReport2017­18

(Pursuanttoclause(h)ofsub­section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,2014)

Formfordisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredto

in sub­section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third

provisothereto

1. Detailsofcontractsorarrangementsortransactionsnotatarm'slengthbasi:NIL

(a) Name(s)oftherelatedpartyandnatureofrelationship

(b) Natureofcontracts/arrangements/transactions

(c) Durationofthecontracts/arrangements/transactions

(d) Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany

(e) Justificationforenteringintosuchcontractsorarrangementsortransactions

(f) date(s)ofapprovalbytheBoard

(g) Amountpaidasadvances,ifany:

(h) Dateonwhichthespecialresolutionwaspassedingeneralmeetingasrequiredunderfirstprovisotosection188

2. Detailsofmaterialcontractsorarrangementortransactionsatarm'slengthbasis:

AnnexureI:FormNo.AOC-2

(Ref.:Board'sReport,Itemno.11)

Name(s)oftherelatedpartyandnatureofrelationship

Natureofcontracts/arrangements/transactions

Durationofthecontractsarrangements/transactions

Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany

Date(s)ofapprovalbytheBoard,ifany

Amountpaidasadvances,ifany

1) METAL GRACE INJECTION ALLOYS PRIVATE LIMITED

ENTERPRISEOVERWHICHSIGNIFICANTINFLUENCE

RentPaid ANNUALY Rentpaid­1,44,000.00 N/A NIL

2) M/S BANSAL BROTHERS (TRADING DIV.)

ENTERPRISEOVERWHICHSIGNIFICANTINFLUENCE

PurchaseRawMaterial,PurchaseofPackingMaterial,PurchaseofConsumableGoods,FactoryShed&Building,Repair&MaintenanceMachine

ANNUALY 1.PurchaseRawMaterial­1,56,48,0772.PurchaseofPackingMaterial­1,47,6463.PurchaseofConsumableGoods­1,64,5894.FactoryShed&Building­3.43.707Repair&MaintenanceMachine­3,349

N/A NIL

3) M/S BANSAL BROTHERS (FAD)

ENTERPRISEOVER WHICHSIGNIFICANTINFLUENCE

PurchaserawMaterial

ANNUALY PurchaseRawMaterial­7,87,43,564

N/A NIL

30

SarthakMetalsLimited|AnnualReport2017­18

OverallIndianEconomyOutlook

Theyear2017wasmarkedbyanumberofkeystructuralinitiativestobuildstrengthacrossmacro­economicparameters

forsustainablegrowthinthefuture.Thegrowthinthefirsthalfoftheyearsuffereddespiteglobaltailwinds.However,the

weaknessseenatthebeginningof2017,seemstohavebottomedoutas2018setin.Currently,theeconomyseemstobe

onthepathtorecovery,withindicatorsofindustrialproduction,stockmarketindex,autosalesandexportshavingshown

uptick.

The Indian economy is expected to grow at an annual rate of 7.4% in 2018 and 7.8% in 2019, according to a

recentlyreleasedIMF Economic Outlook. India’s economy is “lifted by strong private consumption as well as fading

transitoryeffectsofthecurrencyexchangeinitiativeandimplementationofthenationalgoodsandservicestax,”notesthe

report.“Overthemediumterm,growthisexpectedtograduallyrisewithcontinuedimplementationofstructuralreforms

thatraiseproductivityandincentivizeprivateinvestment.”

SteelSectorOutlook

Indiahasmaintainedit’spositionasthethirdlargestproducerofSeelintheworld.InFY18,Indiaproduced104.98million

tonnes(MT)offinishedsteel.CrudeSteelproductionduring2017­18stoodat102.34MT.Steelconsumptionisexpectedto

grow5.7percentyear­on­year to92.1MT in2018. India’s steelproduction isexpected to increase from102.34MT in

FY18to128.6MTby2021.India’spercapitaconsumptionofsteelgrewataCAGRof3.96percentfrom46kgsinFY08to

65.25kgsinFY17.Thefigurestoodat68kgsduringApril­February2017­18.NationalSteelPolicy2017seekstoincrease

percapitasteelconsumptiontothelevelof160kgs.

Opportunities

Steeldemandiscurrentlygoingstrongmimickingpreviousyear’strend.WithcomingofGoods&ServiceTax,costofmany

productshascomedownmakingIndiamorecompetitive intheexportsmarket.Further,strongpushbygovernmenton

MakeinIndiaandvariousinfrastructureinvestmentshasaddedtothedemandofsteelinIndia.FollowingpoliciesofGoI

areaddinglustertothesector:

• Government of India’s focus on infrastructure and restarting roadprojects is aiding the boost in demand for steel.

Also,furtherlikelyaccelerationinruraleconomyandinfrastructureisexpectedtoleadtogrowthindemandforsteel.

• TheUnionCabinet,Governmentof Indiahasapproved theNationalSteelPolicy (NSP)2017,as it seeks to createa

globallycompetitivesteel industryinIndia.NSP2017targets300milliontonnes(MT)steel­makingincapacityand

160kgspercapitasteelconsumptionby2030.

Theon­going tradewarbetweenEU,USAandChinaaddsaslewofopportunities for Indiansteelaswellas Indianraw

materials. Indiaexpects tokeep itsMFNstatuswithUS therebyboostingexports.With thecurrent increase incapacity

additionsbyvarioussteelplantsgoingonlineIndiaispoisedtoovertakeJapanasthesecondlargeststeelproducerbyFY

2020behindonlyChinawhichisprojectingadeclineinSteelconsumptionby2%in2019fiscal.

Threats

Themain threat to the Indian steel industry is fromcheap steel importswhich theChinese companies aredumping in

India.WiththeChinesesteelfacingcloseddoorsinUSA,theyonlyhaveIndiatolooktowardsinlightofwaningdomestic

steeldemand.Thecurrentgovernmenthasputsafeguarddutiesforthesameandprotectedthelocalindustries.However,

itisnotclearforhowlongthesedutiesshallprevail.

Further,USA andEUmight impose tariffs on Indian steel as they have onChinese steel if the situations for their local

industriesdonot improve.Theonlycase inpoint fortheseeconomiesmaybethattheIndiansteelstillmakeseconomic

senseforthedownstreamindustries.

ManagementDiscussion&Analysis

31

SarthakMetalsLimited|AnnualReport2017­18

(Pursuanttoclause(h)ofsub­section(3)ofsection134oftheActandRule8(2)oftheCompanies(Accounts)Rules,2014)

Formfordisclosureofparticularsofcontracts/arrangementsenteredintobythecompanywithrelatedpartiesreferredto

in sub­section (1) of section 188 of the Companies Act, 2013 including certain arms length transactions under third

provisothereto

1. Detailsofcontractsorarrangementsortransactionsnotatarm'slengthbasi:NIL

(a) Name(s)oftherelatedpartyandnatureofrelationship

(b) Natureofcontracts/arrangements/transactions

(c) Durationofthecontracts/arrangements/transactions

(d) Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany

(e) Justificationforenteringintosuchcontractsorarrangementsortransactions

(f) date(s)ofapprovalbytheBoard

(g) Amountpaidasadvances,ifany:

(h) Dateonwhichthespecialresolutionwaspassedingeneralmeetingasrequiredunderfirstprovisotosection188

2. Detailsofmaterialcontractsorarrangementortransactionsatarm'slengthbasis:

AnnexureI:FormNo.AOC-2

(Ref.:Board'sReport,Itemno.11)

Name(s)oftherelatedpartyandnatureofrelationship

Natureofcontracts/arrangements/transactions

Durationofthecontractsarrangements/transactions

Salienttermsofthecontractsorarrangementsortransactionsincludingthevalue,ifany

Date(s)ofapprovalbytheBoard,ifany

Amountpaidasadvances,ifany

1) METAL GRACE INJECTION ALLOYS PRIVATE LIMITED

ENTERPRISEOVERWHICHSIGNIFICANTINFLUENCE

RentPaid ANNUALY Rentpaid­1,44,000.00 N/A NIL

2) M/S BANSAL BROTHERS (TRADING DIV.)

ENTERPRISEOVERWHICHSIGNIFICANTINFLUENCE

PurchaseRawMaterial,PurchaseofPackingMaterial,PurchaseofConsumableGoods,FactoryShed&Building,Repair&MaintenanceMachine

ANNUALY 1.PurchaseRawMaterial­1,56,48,0772.PurchaseofPackingMaterial­1,47,6463.PurchaseofConsumableGoods­1,64,5894.FactoryShed&Building­3.43.707Repair&MaintenanceMachine­3,349

N/A NIL

3) M/S BANSAL BROTHERS (FAD)

ENTERPRISEOVER WHICHSIGNIFICANTINFLUENCE

PurchaserawMaterial

ANNUALY PurchaseRawMaterial­7,87,43,564

N/A NIL

30

SarthakMetalsLimited|AnnualReport2017­18

OverallIndianEconomyOutlook

Theyear2017wasmarkedbyanumberofkeystructuralinitiativestobuildstrengthacrossmacro­economicparameters

forsustainablegrowthinthefuture.Thegrowthinthefirsthalfoftheyearsuffereddespiteglobaltailwinds.However,the

weaknessseenatthebeginningof2017,seemstohavebottomedoutas2018setin.Currently,theeconomyseemstobe

onthepathtorecovery,withindicatorsofindustrialproduction,stockmarketindex,autosalesandexportshavingshown

uptick.

The Indian economy is expected to grow at an annual rate of 7.4% in 2018 and 7.8% in 2019, according to a

recentlyreleasedIMF Economic Outlook. India’s economy is “lifted by strong private consumption as well as fading

transitoryeffectsofthecurrencyexchangeinitiativeandimplementationofthenationalgoodsandservicestax,”notesthe

report.“Overthemediumterm,growthisexpectedtograduallyrisewithcontinuedimplementationofstructuralreforms

thatraiseproductivityandincentivizeprivateinvestment.”

SteelSectorOutlook

Indiahasmaintainedit’spositionasthethirdlargestproducerofSeelintheworld.InFY18,Indiaproduced104.98million

tonnes(MT)offinishedsteel.CrudeSteelproductionduring2017­18stoodat102.34MT.Steelconsumptionisexpectedto

grow5.7percentyear­on­year to92.1MT in2018. India’s steelproduction isexpected to increase from102.34MT in

FY18to128.6MTby2021.India’spercapitaconsumptionofsteelgrewataCAGRof3.96percentfrom46kgsinFY08to

65.25kgsinFY17.Thefigurestoodat68kgsduringApril­February2017­18.NationalSteelPolicy2017seekstoincrease

percapitasteelconsumptiontothelevelof160kgs.

Opportunities

Steeldemandiscurrentlygoingstrongmimickingpreviousyear’strend.WithcomingofGoods&ServiceTax,costofmany

productshascomedownmakingIndiamorecompetitive intheexportsmarket.Further,strongpushbygovernmenton

MakeinIndiaandvariousinfrastructureinvestmentshasaddedtothedemandofsteelinIndia.FollowingpoliciesofGoI

areaddinglustertothesector:

• Government of India’s focus on infrastructure and restarting roadprojects is aiding the boost in demand for steel.

Also,furtherlikelyaccelerationinruraleconomyandinfrastructureisexpectedtoleadtogrowthindemandforsteel.

• TheUnionCabinet,Governmentof Indiahasapproved theNationalSteelPolicy (NSP)2017,as it seeks to createa

globallycompetitivesteel industryinIndia.NSP2017targets300milliontonnes(MT)steel­makingincapacityand

160kgspercapitasteelconsumptionby2030.

Theon­going tradewarbetweenEU,USAandChinaaddsaslewofopportunities for Indiansteelaswellas Indianraw

materials. Indiaexpects tokeep itsMFNstatuswithUS therebyboostingexports.With thecurrent increase incapacity

additionsbyvarioussteelplantsgoingonlineIndiaispoisedtoovertakeJapanasthesecondlargeststeelproducerbyFY

2020behindonlyChinawhichisprojectingadeclineinSteelconsumptionby2%in2019fiscal.

Threats

Themain threat to the Indian steel industry is fromcheap steel importswhich theChinese companies aredumping in

India.WiththeChinesesteelfacingcloseddoorsinUSA,theyonlyhaveIndiatolooktowardsinlightofwaningdomestic

steeldemand.Thecurrentgovernmenthasputsafeguarddutiesforthesameandprotectedthelocalindustries.However,

itisnotclearforhowlongthesedutiesshallprevail.

Further,USA andEUmight impose tariffs on Indian steel as they have onChinese steel if the situations for their local

industriesdonot improve.Theonlycase inpoint fortheseeconomiesmaybethattheIndiansteelstillmakeseconomic

senseforthedownstreamindustries.

ManagementDiscussion&Analysis

31

SarthakMetalsLimited|AnnualReport2017­18

TheGoI’s IBChasbeeneffective inresolving thestressedassetsofBanks in theBhushanSteelandMonnet Ispatcases.

However,decisionsonassets likeEssarandBPSLstill remain in limbo.TataSteel& JSWSteel thecompanieswhohave

acquired the stressed assets mentioned earlier have also stretched their balance sheets to buy these assets making

situationsquestionablefortheonlytwoprofitablesteelplantsinIndia.IndiansteelcompanieslikeJSPLandJSLcontinue

to facepressure frombanks, asmost of themare still overleveraged.TheFY2018 results ofmost steel companies are

definitelyabreathoffreshairbutcontinuousachievementofsuchperformanceisquestionable.

ProductWisePerformance

SarthakMetals Limitedhas threemanufacturingdivisions as on31stMarch2018 i.e. industrial oxygenmanufacturing,

coredwiremanufacturingplant andFerroAluminummanufacturingplant. The industrial oxygenplant is of 200Cubic

Meterperhourcapacity. Ithasbeengivingsteadyperformanceandcateringtonearbysteel fabricationcompanies.The

coredwiredivisionof the companymanufacturesvarious coredwiresandaluminum flipping coils for the Iron&Steel

companies. Your company has commissioned the Ferro Aluminum and Iron Powder plants in FY 2019. Further, your

companyhasalsostartedthecommissioningofAluminumwirerodmanufacturingplant,whichshallbetherawmaterial

forAluminumflippingcoil.WearehopefulofbringingthealuminiumwirerodplantonlinebyOctober2018.

Theproductwiseperformanceofthebothcoredwires,aluminumflippingcoilandFerroAluminiumhasbeenbriefedin

thetablebelow:

Outlook

Recovering fundamentals of steel companies and strong domestic demand of steel shall be amajor contributor to the

company'sgrowthinthecomingfiscals.Thetwofactors,whichshallkeepourcompanycompetitive, isqualityandcost

control.Thereseemstobenoreasonfornotgrowingifwelivebythesetwocovenants.

CautionaryStatement

Statementsmade in thisManagementDiscussionsandAnalysisdescribingcompany'sobjectiveandpredictionsmaybe

"Forwardlookingstatements"withinthemeaningofapplicablelawsandregulations.Actualresultsmaydifferfromthose

expressed therein. Important factors that couldmakedifference to the operations includeGovernment regulations, tax

structuresandcountry'seconomicdevelopment,availabilityofinputandtheirpricesandotherincidentalfactors.

ProductName ContributiontoTurnover(RsinCrores)

Quantity(inMetricTonnes)

CapacityUtilisation

CoredWires 107.71 5951.393 60%

AluminumFlippingCoil 53.97 3170.097 64%

FerroAluminum 4.96 1569.535 32.70%

32

Table:CapacityUtilisationforPrimaryProducts

SarthakMetalsLimited|AnnualReport2017­18

FormNo.MR-3

SECRETARIALAUDITREPORT

REPORTFORTHEFINANCIALYEARENDED31stMARCH,2018

[Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.9oftheCompanies(AppointmentandRemuneration

Personnel)Rules,2014]

To,

TheMembers,

SARTHAKMETALSLIMITED

B.B.C.Colony,G.E.Road,Khurspar,

Bhilai–490011

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

corporatepracticesbySARTHAKMETALSLIMITED(hereinaftercalledtheCompany).SecretarialAuditwasconductedina

mannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressing

myopinionthereon.

Based on my verification of the Company’s 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

representativesduringtheconductofsecretarialaudit, Iherebyreportthat inmyopinion,thecompanyhas,duringthe

auditperiodcoveringthefinancialyearendedon31stMarch,2018(‘AuditPeriod’)compliedwiththestatutoryprovisions

listed hereunder and also that the Companyhas adequateBoard­processes and compliance­mechanism in place to the

extent,inthemannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbyCompanyfor

thefinancialyearendedon31stMarch,2018accordingtotheprovisionsof:

i. TheCompaniesAct,2013(theAct)andtherulesmadethereunder;

ii. TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;

iii. TheDepositoriesAct,1996andtheRegulationsandBye­lawsframedthereunder;

iv. Foreign ExchangeManagement Act, 1999 and the rules and regulationsmade thereunder to the extent of Foreign

DirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings;

v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992

(‘SEBIAct’):­

a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

c) TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015;

d) The Securities and Exchange Board of India (Issue of Capital andDisclosure Requirements) Regulations, 2009

(NotApplicableastheCompanyhasnotissuedanyfurthersharecapitalduringtheyear;

e) TheSecuritiesandExchangeBoardofIndia(SharebasedEmployeeBenefits)Regulations,2014(NotApplicable);

f) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not

Applicable);

33

SarthakMetalsLimited|AnnualReport2017­18

TheGoI’s IBChasbeeneffective inresolving thestressedassetsofBanks in theBhushanSteelandMonnet Ispatcases.

However,decisionsonassets likeEssarandBPSLstill remain in limbo.TataSteel& JSWSteel thecompanieswhohave

acquired the stressed assets mentioned earlier have also stretched their balance sheets to buy these assets making

situationsquestionablefortheonlytwoprofitablesteelplantsinIndia.IndiansteelcompanieslikeJSPLandJSLcontinue

to facepressure frombanks, asmost of themare still overleveraged.TheFY2018 results ofmost steel companies are

definitelyabreathoffreshairbutcontinuousachievementofsuchperformanceisquestionable.

ProductWisePerformance

SarthakMetals Limitedhas threemanufacturingdivisions as on31stMarch2018 i.e. industrial oxygenmanufacturing,

coredwiremanufacturingplant andFerroAluminummanufacturingplant. The industrial oxygenplant is of 200Cubic

Meterperhourcapacity. Ithasbeengivingsteadyperformanceandcateringtonearbysteel fabricationcompanies.The

coredwiredivisionof the companymanufacturesvarious coredwiresandaluminum flipping coils for the Iron&Steel

companies. Your company has commissioned the Ferro Aluminum and Iron Powder plants in FY 2019. Further, your

companyhasalsostartedthecommissioningofAluminumwirerodmanufacturingplant,whichshallbetherawmaterial

forAluminumflippingcoil.WearehopefulofbringingthealuminiumwirerodplantonlinebyOctober2018.

Theproductwiseperformanceofthebothcoredwires,aluminumflippingcoilandFerroAluminiumhasbeenbriefedin

thetablebelow:

Outlook

Recovering fundamentals of steel companies and strong domestic demand of steel shall be amajor contributor to the

company'sgrowthinthecomingfiscals.Thetwofactors,whichshallkeepourcompanycompetitive, isqualityandcost

control.Thereseemstobenoreasonfornotgrowingifwelivebythesetwocovenants.

CautionaryStatement

Statementsmade in thisManagementDiscussionsandAnalysisdescribingcompany'sobjectiveandpredictionsmaybe

"Forwardlookingstatements"withinthemeaningofapplicablelawsandregulations.Actualresultsmaydifferfromthose

expressed therein. Important factors that couldmakedifference to the operations includeGovernment regulations, tax

structuresandcountry'seconomicdevelopment,availabilityofinputandtheirpricesandotherincidentalfactors.

ProductName ContributiontoTurnover(RsinCrores)

Quantity(inMetricTonnes)

CapacityUtilisation

CoredWires 107.71 5951.393 60%

AluminumFlippingCoil 53.97 3170.097 64%

FerroAluminum 4.96 1569.535 32.70%

32

Table:CapacityUtilisationforPrimaryProducts

SarthakMetalsLimited|AnnualReport2017­18

FormNo.MR-3

SECRETARIALAUDITREPORT

REPORTFORTHEFINANCIALYEARENDED31stMARCH,2018

[Pursuanttosection204(1)oftheCompaniesAct,2013andruleNo.9oftheCompanies(AppointmentandRemuneration

Personnel)Rules,2014]

To,

TheMembers,

SARTHAKMETALSLIMITED

B.B.C.Colony,G.E.Road,Khurspar,

Bhilai–490011

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

corporatepracticesbySARTHAKMETALSLIMITED(hereinaftercalledtheCompany).SecretarialAuditwasconductedina

mannerthatprovidedmeareasonablebasisforevaluatingthecorporateconducts/statutorycompliancesandexpressing

myopinionthereon.

Based on my verification of the Company’s 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

representativesduringtheconductofsecretarialaudit, Iherebyreportthat inmyopinion,thecompanyhas,duringthe

auditperiodcoveringthefinancialyearendedon31stMarch,2018(‘AuditPeriod’)compliedwiththestatutoryprovisions

listed hereunder and also that the Companyhas adequateBoard­processes and compliance­mechanism in place to the

extent,inthemannerandsubjecttothereportingmadehereinafter:

Ihaveexaminedthebooks,papers,minutebooks,formsandreturnsfiledandotherrecordsmaintainedbyCompanyfor

thefinancialyearendedon31stMarch,2018accordingtotheprovisionsof:

i. TheCompaniesAct,2013(theAct)andtherulesmadethereunder;

ii. TheSecuritiesContracts(Regulation)Act,1956(‘SCRA’)andtherulesmadethereunder;

iii. TheDepositoriesAct,1996andtheRegulationsandBye­lawsframedthereunder;

iv. Foreign ExchangeManagement Act, 1999 and the rules and regulationsmade thereunder to the extent of Foreign

DirectInvestment,OverseasDirectInvestmentandExternalCommercialBorrowings;

v. The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992

(‘SEBIAct’):­

a) TheSecuritiesandExchangeBoardofIndia(SubstantialAcquisitionofSharesandTakeovers)Regulations,2011;

b) TheSecuritiesandExchangeBoardofIndia(ProhibitionofInsiderTrading)Regulations,2015;

c) TheSecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015;

d) The Securities and Exchange Board of India (Issue of Capital andDisclosure Requirements) Regulations, 2009

(NotApplicableastheCompanyhasnotissuedanyfurthersharecapitalduringtheyear;

e) TheSecuritiesandExchangeBoardofIndia(SharebasedEmployeeBenefits)Regulations,2014(NotApplicable);

f) The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not

Applicable);

33

SarthakMetalsLimited|AnnualReport2017­18

g) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993

regardingtheCompaniesActanddealingwithclient(NotApplicable);

h) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009(Notapplicableasthe

Companyhasnotdelisted/proposetodelistanyofitssecuritiesduringthefinancialyearunderreview.);and

i) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998(Not applicable as the

Companyhasnotboughtback/proposetobuybackanyofitssecuritiesduringthefinancialyearunderreview).;

Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

(i) SecretarialStandardswithregardtoMeetingofBoardofDirectors(SS­1)andGeneralMeetings(SS­2)issuedby

TheInstituteofCompanySecretariesofIndia.

(ii)TheListingAgreemententeredintobytheCompanywithStockExchange.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,

Guidelines,Standards,etc.mentionedabovesubjecttothefollowingobservations:.

1. TheCompanyhasnotsubmittedtheAnnualReporttotheStockExchangeasmentionedinRegulation34ofthe

SecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.

2. TheBoardMeetingforthequarterended30thSeptember,2017washeldon15thNovember,2017andsubmitted

thesametotheStockExchangeon15thNovember,2017.

3. TheCompanyhas transferred thedividenddeclaredon1stAugust,2017 for theyearended31.03.2017 to the

separatebankaccountaspertheprovisionsSection123oftheCompaniesAct,2013on08thAugust,2017.

4. TheCompanyhasnottransferredtheunpaiddividendtothespecialaccountwithin7daysfromthedateofexpiry

ofthe30daysofdeclarationaspertheprovisionsSection124oftheCompaniesAct,2013.

IfurtherreportthatTheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,

Non­ExecutiveDirectorsandIndependentDirectors.TherewaschangeinthecompositionoftheBoardofDirectorsduring

theperiodunderreview.

AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentat

leastsevendays inadvance,andasystemexists forseekingandobtaining further informationandclarificationsonthe

agendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

AllthedecisionsatBoardMeetingsandCommitteeMeetingsarecarriedoutunanimouslyasrecordedintheminutesof

themeetingsoftheBoardofDirectorsoftheBoardasthecasemaybe.

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

operationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Ifurtherreportthatduringtheauditperiodtherewerenoinstancesof:

i) RightIssue|Preferentialissueofshares|issueofdebentures|issueofsweatEquity.

ii) Redemption|Buy­backofsecurities.

iii) MajordecisionstakenbytheMembersinpursuancetoSection180oftheAct.

iv) ForeignTechnicalCollaborations.

34

SarthakMetalsLimited|AnnualReport2017­18

IfurtherreportthatduringtheauditperiodtheCompanyhasnotundertakenevents/actionshavingamajorbearingon

theCompany’saffairsinpursuanceoftheabovereferredlaws,rules,regulations,guidelines,standards,etc.

Place:Mumbai ForNileshA.Pradhan&Co.

Date:1stAugust,2018 PracticingCompanySecretary

Sd/­

NileshA.Pradhan

Proprietor

FCS:5445

CP:3659

Note:ThisreportshouldbereadwithmyletterwhichisannexedasAnnexureIandformsintegralpartofthisreport.

ANNEXURE–I

To,

TheMembers,

SARTHAKMETALSLIMITED

B.B.C.Colony,G.E.Road,Khurspar,

Bhilai–490011

Myreportofevendateistobereadalongwiththisletter

1. Maintenance of Secretarial record is the responsibility of themanagement of the Company.My responsibility is to

expressanopiniononthesesecretarialrecordsbasedonmyaudit.

2. I have followed the audit practices and processes aswere appropriate to obtain reasonable assurance about the

correctnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrect

facts are reflected in secretarial records. I believed that the processes and practices that I followed provide a

reasonablebasisformyopinion.

3. IhavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsofthecompany.

4. Where ever required, I have obtained the Management representation about the compliance of laws, rules and

regulationsandhappeningofeventsetc.

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

responsibilityofmanagement.Myexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAudit report isneitheranassuranceas to the futureviabilityof thecompanynorof theefficacyor

effectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

ForNileshA.Pradhan&Co,

PracticingCompanySecretaries

Sd/­

NileshA.Pradhan

Proprietor

Place:Mumbai FCS:5445

Date:01.08.2018 COP:3659

35

SarthakMetalsLimited|AnnualReport2017­18

g) TheSecuritiesandExchangeBoardofIndia(RegistrarstoanIssueandShareTransferAgents)Regulations,1993

regardingtheCompaniesActanddealingwithclient(NotApplicable);

h) TheSecuritiesandExchangeBoardofIndia(DelistingofEquityShares)Regulations,2009(Notapplicableasthe

Companyhasnotdelisted/proposetodelistanyofitssecuritiesduringthefinancialyearunderreview.);and

i) The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998(Not applicable as the

Companyhasnotboughtback/proposetobuybackanyofitssecuritiesduringthefinancialyearunderreview).;

Ihavealsoexaminedcompliancewiththeapplicableclausesofthefollowing:

(i) SecretarialStandardswithregardtoMeetingofBoardofDirectors(SS­1)andGeneralMeetings(SS­2)issuedby

TheInstituteofCompanySecretariesofIndia.

(ii)TheListingAgreemententeredintobytheCompanywithStockExchange.

During the period under review the Company has complied with the provisions of the Act, Rules, Regulations,

Guidelines,Standards,etc.mentionedabovesubjecttothefollowingobservations:.

1. TheCompanyhasnotsubmittedtheAnnualReporttotheStockExchangeasmentionedinRegulation34ofthe

SecuritiesandExchangeBoardofIndia(ListingObligationsandDisclosureRequirements)Regulations,2015.

2. TheBoardMeetingforthequarterended30thSeptember,2017washeldon15thNovember,2017andsubmitted

thesametotheStockExchangeon15thNovember,2017.

3. TheCompanyhas transferred thedividenddeclaredon1stAugust,2017 for theyearended31.03.2017 to the

separatebankaccountaspertheprovisionsSection123oftheCompaniesAct,2013on08thAugust,2017.

4. TheCompanyhasnottransferredtheunpaiddividendtothespecialaccountwithin7daysfromthedateofexpiry

ofthe30daysofdeclarationaspertheprovisionsSection124oftheCompaniesAct,2013.

IfurtherreportthatTheBoardofDirectorsoftheCompanyisdulyconstitutedwithproperbalanceofExecutiveDirectors,

Non­ExecutiveDirectorsandIndependentDirectors.TherewaschangeinthecompositionoftheBoardofDirectorsduring

theperiodunderreview.

AdequatenoticeisgiventoalldirectorstoscheduletheBoardMeetings,agendaanddetailednotesonagendaweresentat

leastsevendays inadvance,andasystemexists forseekingandobtaining further informationandclarificationsonthe

agendaitemsbeforethemeetingandformeaningfulparticipationatthemeeting.

AllthedecisionsatBoardMeetingsandCommitteeMeetingsarecarriedoutunanimouslyasrecordedintheminutesof

themeetingsoftheBoardofDirectorsoftheBoardasthecasemaybe.

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

operationsofthecompanytomonitorandensurecompliancewithapplicablelaws,rules,regulationsandguidelines.

Ifurtherreportthatduringtheauditperiodtherewerenoinstancesof:

i) RightIssue|Preferentialissueofshares|issueofdebentures|issueofsweatEquity.

ii) Redemption|Buy­backofsecurities.

iii) MajordecisionstakenbytheMembersinpursuancetoSection180oftheAct.

iv) ForeignTechnicalCollaborations.

34

SarthakMetalsLimited|AnnualReport2017­18

IfurtherreportthatduringtheauditperiodtheCompanyhasnotundertakenevents/actionshavingamajorbearingon

theCompany’saffairsinpursuanceoftheabovereferredlaws,rules,regulations,guidelines,standards,etc.

Place:Mumbai ForNileshA.Pradhan&Co.

Date:1stAugust,2018 PracticingCompanySecretary

Sd/­

NileshA.Pradhan

Proprietor

FCS:5445

CP:3659

Note:ThisreportshouldbereadwithmyletterwhichisannexedasAnnexureIandformsintegralpartofthisreport.

ANNEXURE–I

To,

TheMembers,

SARTHAKMETALSLIMITED

B.B.C.Colony,G.E.Road,Khurspar,

Bhilai–490011

Myreportofevendateistobereadalongwiththisletter

1. Maintenance of Secretarial record is the responsibility of themanagement of the Company.My responsibility is to

expressanopiniononthesesecretarialrecordsbasedonmyaudit.

2. I have followed the audit practices and processes aswere appropriate to obtain reasonable assurance about the

correctnessofthecontentsoftheSecretarialrecords.Theverificationwasdoneontestbasistoensurethatcorrect

facts are reflected in secretarial records. I believed that the processes and practices that I followed provide a

reasonablebasisformyopinion.

3. IhavenotverifiedthecorrectnessandappropriatenessoffinancialrecordsandBooksofAccountsofthecompany.

4. Where ever required, I have obtained the Management representation about the compliance of laws, rules and

regulationsandhappeningofeventsetc.

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

responsibilityofmanagement.Myexaminationwaslimitedtotheverificationofproceduresontestbasis.

6. TheSecretarialAudit report isneitheranassuranceas to the futureviabilityof thecompanynorof theefficacyor

effectivenesswithwhichthemanagementhasconductedtheaffairsofthecompany.

ForNileshA.Pradhan&Co,

PracticingCompanySecretaries

Sd/­

NileshA.Pradhan

Proprietor

Place:Mumbai FCS:5445

Date:01.08.2018 COP:3659

35

SarthakMetalsLimited|AnnualReport2017­18

INDEPENDENTAUDITORS’REPORT

TOTHEMEMBERSOF

M/sSARTHAKMETALSLIMITED

(FormerlyknownasSarthakMetalsMarketingPrivateLimited)

ReportontheFinancialStatements

We have audited the accompanying financial statements of M/s SARTHAK METALS LIMITED (“the company”) which

comprisetheBalanceSheetasat31stMarch2018,theStatementofProfitandLoss,theCashFlowStatementfortheyear

thenendedandasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management'sResponsibilityfortheFinancialStatements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheCompaniesAct,2013(“the

Act”)withrespecttothepreparationandpresentationofthesefinancialstatementsthatgiveatrueandfairviewofthe

financial position, financial performance and cash flows of the Company in accordancewith the accounting principles

generallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7of

theCompanies(Accounts)Rules,2014.Thisresponsibilityalsoincludesthemaintenanceofadequateaccountingrecords

inaccordancewiththeprovisionoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetecting

the fraudsandother irregularities; selectionandapplicationofappropriateaccountingpolicies;making judgmentsand

estimates thatarereasonableandprudent;anddesign, implementationandmaintenanceofadequate internal financial

control,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevantto

the preparation and presentation of the financial statements that give a true and fair view and are free frommaterial

misstatement,whetherduetofraudorerror.

Auditor’sResponsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Wehavetakenintoaccount

theprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheaudit

reportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct.Those

Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable

assuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterial

misstatementof the financial statements,whetherdue to fraudorerror. Inmaking those riskassessments, theauditor

considers internal financialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgivetrueand

fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of

expressinganopiniononwhethertheCompanyhasinplaceanadequateinternalfinancialcontrolssystemoverfinancial

reportingandoperatingeffectivenessofsuchcontrols.Anauditalsoincludesevaluatingtheappropriatenessofaccounting

policiesusedandthereasonablenessoftheaccountingestimatesmadebyCompany’sDirectors,aswellasevaluatingthe

overallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion

onthefinancialstatements.

36

SarthakMetalsLimited|AnnualReport2017­18

Opinion

Inouropinionand to thebestofour informationandaccording to theexplanationsgiven tous, theaforesaid financial

statementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformity

withtheaccountingprinciplesgenerallyacceptedinIndiaofthestateofaffairsoftheCompanyasat31stMarch2018,its

Profit,itsCashFlowsandchangesinEquityfortheyearendedonthatdate.

ReportonotherLegalandRegulatoryRequirements

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”)issuedbytheCentralGovernmentofIndia

intermsofsub­section(11)ofsection143oftheAct,wegiveintheAnnexureAastatementonthemattersSpecified

inparagraphs3and4oftheOrder,totheextentapplicable.

2. Asrequiredbysection143(3)oftheAct,wereportthat:

a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbelief

werenecessaryforthepurposesofouraudit.

b) InouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofaras itappears

fromourexaminationofthosebooks.

c) theBalance Sheet, the Statement of Profit and Loss andCash Flow Statement dealtwith by thisReport are in

agreementwiththebooksofaccount.

d) Inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection

133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e) Onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31stMarch,2018takenonrecordbythe

BoardofDirectors,noneofthedirectorsisdisqualifiedason31stMarch,2018frombeingappointedasadirector

intermsofSection164(2)oftheAct.

f) WithRespecttotheadequacyoftheInternalFinancialControlsoverfinancialreportingoftheCompanyandthe

OperatingEffectivenessofsuchcontrols,refertoourseparatereportinAnnexureB.

g) In our opinion and to the best of our information and according to the explanations given to us,we report as

underwith respect to othermatters to be included in the Auditor’s Report in accordancewith Rule 11 of the

Companies(AuditandAuditors)Rules,2014:

i. TheCompanydoesnothaveanypendinglitigationswhichwouldimpactitsfinancialposition.

ii. TheCompanydoesnothaveanylong­termcontractsincludingderivativescontractsforwhichtherewereany

materialforeseeablelosses.

iii. TherewerenoamountswhicharerequiredtobetransferredbytheCompanytotheInvestorEducationand

ProtectionFund.

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Place:RAIPUR(C.G.)

Date:29/05/2018Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

37

SarthakMetalsLimited|AnnualReport2017­18

INDEPENDENTAUDITORS’REPORT

TOTHEMEMBERSOF

M/sSARTHAKMETALSLIMITED

(FormerlyknownasSarthakMetalsMarketingPrivateLimited)

ReportontheFinancialStatements

We have audited the accompanying financial statements of M/s SARTHAK METALS LIMITED (“the company”) which

comprisetheBalanceSheetasat31stMarch2018,theStatementofProfitandLoss,theCashFlowStatementfortheyear

thenendedandasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management'sResponsibilityfortheFinancialStatements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinsection134(5)oftheCompaniesAct,2013(“the

Act”)withrespecttothepreparationandpresentationofthesefinancialstatementsthatgiveatrueandfairviewofthe

financial position, financial performance and cash flows of the Company in accordancewith the accounting principles

generallyacceptedinIndia,includingtheAccountingStandardsspecifiedunderSection133oftheAct,readwithRule7of

theCompanies(Accounts)Rules,2014.Thisresponsibilityalsoincludesthemaintenanceofadequateaccountingrecords

inaccordancewiththeprovisionoftheActforsafeguardingoftheassetsoftheCompanyandforpreventinganddetecting

the fraudsandother irregularities; selectionandapplicationofappropriateaccountingpolicies;making judgmentsand

estimates thatarereasonableandprudent;anddesign, implementationandmaintenanceofadequate internal financial

control,thatwereoperatingeffectivelyforensuringtheaccuracyandcompletenessoftheaccountingrecords,relevantto

the preparation and presentation of the financial statements that give a true and fair view and are free frommaterial

misstatement,whetherduetofraudorerror.

Auditor’sResponsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.Wehavetakenintoaccount

theprovisionsoftheAct,theaccountingandauditingstandardsandmatterswhicharerequiredtobeincludedintheaudit

reportundertheprovisionsoftheActandtheRulesmadethereunder.

WeconductedourauditinaccordancewiththeStandardsonAuditingspecifiedundersection143(10)oftheAct.Those

Standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable

assuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial

statements.Theproceduresselecteddependontheauditor’sjudgment,includingtheassessmentoftherisksofmaterial

misstatementof the financial statements,whetherdue to fraudorerror. Inmaking those riskassessments, theauditor

considers internal financialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgivetrueand

fair view, in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of

expressinganopiniononwhethertheCompanyhasinplaceanadequateinternalfinancialcontrolssystemoverfinancial

reportingandoperatingeffectivenessofsuchcontrols.Anauditalsoincludesevaluatingtheappropriatenessofaccounting

policiesusedandthereasonablenessoftheaccountingestimatesmadebyCompany’sDirectors,aswellasevaluatingthe

overallpresentationofthefinancialstatements.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion

onthefinancialstatements.

36

SarthakMetalsLimited|AnnualReport2017­18

Opinion

Inouropinionand to thebestofour informationandaccording to theexplanationsgiven tous, theaforesaid financial

statementsgivetheinformationrequiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformity

withtheaccountingprinciplesgenerallyacceptedinIndiaofthestateofaffairsoftheCompanyasat31stMarch2018,its

Profit,itsCashFlowsandchangesinEquityfortheyearendedonthatdate.

ReportonotherLegalandRegulatoryRequirements

1. AsrequiredbytheCompanies(Auditor’sReport)Order,2016(“theOrder”)issuedbytheCentralGovernmentofIndia

intermsofsub­section(11)ofsection143oftheAct,wegiveintheAnnexureAastatementonthemattersSpecified

inparagraphs3and4oftheOrder,totheextentapplicable.

2. Asrequiredbysection143(3)oftheAct,wereportthat:

a) Wehavesoughtandobtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbelief

werenecessaryforthepurposesofouraudit.

b) InouropinionproperbooksofaccountasrequiredbylawhavebeenkeptbytheCompanysofaras itappears

fromourexaminationofthosebooks.

c) theBalance Sheet, the Statement of Profit and Loss andCash Flow Statement dealtwith by thisReport are in

agreementwiththebooksofaccount.

d) Inouropinion,theaforesaidfinancialstatementscomplywiththeAccountingStandardsspecifiedunderSection

133oftheAct,readwithRule7oftheCompanies(Accounts)Rules,2014.

e) Onthebasisofwrittenrepresentationsreceivedfromthedirectorsason31stMarch,2018takenonrecordbythe

BoardofDirectors,noneofthedirectorsisdisqualifiedason31stMarch,2018frombeingappointedasadirector

intermsofSection164(2)oftheAct.

f) WithRespecttotheadequacyoftheInternalFinancialControlsoverfinancialreportingoftheCompanyandthe

OperatingEffectivenessofsuchcontrols,refertoourseparatereportinAnnexureB.

g) In our opinion and to the best of our information and according to the explanations given to us,we report as

underwith respect to othermatters to be included in the Auditor’s Report in accordancewith Rule 11 of the

Companies(AuditandAuditors)Rules,2014:

i. TheCompanydoesnothaveanypendinglitigationswhichwouldimpactitsfinancialposition.

ii. TheCompanydoesnothaveanylong­termcontractsincludingderivativescontractsforwhichtherewereany

materialforeseeablelosses.

iii. TherewerenoamountswhicharerequiredtobetransferredbytheCompanytotheInvestorEducationand

ProtectionFund.

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Place:RAIPUR(C.G.)

Date:29/05/2018Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

37

SarthakMetalsLimited|AnnualReport2017­18

Annexure-‘A’totheAuditors’Report

Intermsoftheinformationandexplanationssoughtbyusandgivenbythecompanyandthebooksandrecordsexamined

byusinthenormalcourseofauditandtothebestofourknowledgeandbelief,westatethat:­:

(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsand

situationoffixedassets.

(b) Asexplained&Informedtous,theCompanyhasaregularprogrammeofphysicalverificationofitsfixed

assetsbywhichfixedassetsareverifiedinaphasedmanneroveraperiodofthreeyears.Inaccordance

with this programme, certain fixed assetswere verifiedduring the year andnomaterial discrepancies

werenoticedon suchverification. Inouropinion, thisperiodicityofphysical verification is reasonable

havingregardtothesizeoftheCompanyandthenatureofitsassets.

(c) As explained & Informed to us, the title deeds of immoveable properties are held in the name of the

company.

(ii) As explained to us, physical verification of inventory has been conducted at reasonable intervals by the

managementandthereisnomaterialdiscrepancy.

(iii) Asattheyearend,thereisnoloanoutstandinggivenbythecompany,whichiscoveredintheregistermaintained

undersection189ofthecompaniesAct,2013

(iv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhascompliedwiththe

provisionsofsection185and186oftheAct,withrespecttotheloansandinvestmentsmade.

(v) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotacceptedany

depositsincontraventionofDirectivesissuedbyReserveBankofIndiaandtheprovisionsofsection73to76or

any other relevant provisions of the Act and the rules framed there under. No order has been passed by the

Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other

tribunal.

(vi) AsExplained&Informedtousmaintenanceofcostrecordsfortheitemsmanufactured/dealtbythecompanyin

itsdifferentundertakingisnotapplicable.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the

recordsof theCompany,amountsdeducted/accrued in thebooksofaccount inrespectofundisputed

statutory dues including income tax, service tax, cess and other material statutory dues have been

regularlydepositedduringtheyearbytheCompanywiththeappropriateauthorities.Asexplainedtous,

the Company did not have any dues on account of employees' state insurance and duty of excise.

Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectof

incometax,servicetax,cessandothermaterialstatutorydueswereinarrearsasat31stMarch2018for

aperiodofmorethansixmonthsfromthedatetheybecamepayable.

(b) According to the information and explanations given to us and on the basis of our examination of the

recordsoftheCompany,thecompanydidnothaveanyundisputedamountpayableinrespectofIncome

Tax ,Wealth Tax ,Custom Duty, Excise Duty, Sales Tax VAT, Cess and other material statutory due in

arrears/wereoutstandingasat31stMarch2018foraperiodofmorethansixmonthsfromthedatethey

becamepayable.

(viii) Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotdefaultedinrepaymentofloans

orborrowingtoafinancialinstitutionorbanks.

38

SarthakMetalsLimited|AnnualReport2017­18

(ix) DuringtheyeartheCompanyhasnotraisedanyfreshmoneybywayofinitialpublicoffer,furtherpublicofferand

termloans.

(x) Basedupon theauditproceduresperformedandaccording to the informationandexplanationsgiven tous,no

fraudby the companyor any fraudon the companyby its officers or employeeshasbeennoticedor reported

duringthecourseofouraudit,thatcausesthefinancialstatementstobemateriallymisstated.

(xi) According to the informationandexplanationsgiven tousandbasedonourexaminationof the recordsof the

company, the company has paid/provided for managerial remuneration in accordance with the requisite

approvalsmandatedbytheprovisionsofdection197readwithscheduleVtotheact.

(xii) ThecompanyisnotaNidhiCompanyhencethisclauseisnotapplicable.

(xiii) Basedupontheauditproceduresperformedandaccordingto the informationandexplanationsgiventous,All

transactionswith related parties are in compliancewith sections 177 and 188 of Companies Act, 2013where

applicable and the details have been disclosed in the Financial statements etc. as required by the applicable

accountingstandards.

(xiv) Thecompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertible

debenturesduringtheyearunderreview.

(xv) Thecompanyhasnotenteredintoanynon­cashtransactionswithdirectorsorpersonsconnectedwithhim.

(xvi) TheCompanyisnotrequiredtoberegisteredundersection45­IAoftheReserveBankofIndiaAct,1934.

39

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Place:RAIPUR(C.G.)

Date:29/05/2018Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

SarthakMetalsLimited|AnnualReport2017­18

Annexure-‘A’totheAuditors’Report

Intermsoftheinformationandexplanationssoughtbyusandgivenbythecompanyandthebooksandrecordsexamined

byusinthenormalcourseofauditandtothebestofourknowledgeandbelief,westatethat:­:

(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsand

situationoffixedassets.

(b) Asexplained&Informedtous,theCompanyhasaregularprogrammeofphysicalverificationofitsfixed

assetsbywhichfixedassetsareverifiedinaphasedmanneroveraperiodofthreeyears.Inaccordance

with this programme, certain fixed assetswere verifiedduring the year andnomaterial discrepancies

werenoticedon suchverification. Inouropinion, thisperiodicityofphysical verification is reasonable

havingregardtothesizeoftheCompanyandthenatureofitsassets.

(c) As explained & Informed to us, the title deeds of immoveable properties are held in the name of the

company.

(ii) As explained to us, physical verification of inventory has been conducted at reasonable intervals by the

managementandthereisnomaterialdiscrepancy.

(iii) Asattheyearend,thereisnoloanoutstandinggivenbythecompany,whichiscoveredintheregistermaintained

undersection189ofthecompaniesAct,2013

(iv) Inouropinionandaccordingtotheinformationandexplanationsgiventous,thecompanyhascompliedwiththe

provisionsofsection185and186oftheAct,withrespecttotheloansandinvestmentsmade.

(v) Inouropinionandaccordingtotheinformationandexplanationsgiventous,theCompanyhasnotacceptedany

depositsincontraventionofDirectivesissuedbyReserveBankofIndiaandtheprovisionsofsection73to76or

any other relevant provisions of the Act and the rules framed there under. No order has been passed by the

Company Law Board or National Company Law Tribunal or Reserve Bank of India or any court or any other

tribunal.

(vi) AsExplained&Informedtousmaintenanceofcostrecordsfortheitemsmanufactured/dealtbythecompanyin

itsdifferentundertakingisnotapplicable.

(vii) (a) According to the information and explanations given to us and on the basis of our examination of the

recordsof theCompany,amountsdeducted/accrued in thebooksofaccount inrespectofundisputed

statutory dues including income tax, service tax, cess and other material statutory dues have been

regularlydepositedduringtheyearbytheCompanywiththeappropriateauthorities.Asexplainedtous,

the Company did not have any dues on account of employees' state insurance and duty of excise.

Accordingtotheinformationandexplanationsgiventous,noundisputedamountspayableinrespectof

incometax,servicetax,cessandothermaterialstatutorydueswereinarrearsasat31stMarch2018for

aperiodofmorethansixmonthsfromthedatetheybecamepayable.

(b) According to the information and explanations given to us and on the basis of our examination of the

recordsoftheCompany,thecompanydidnothaveanyundisputedamountpayableinrespectofIncome

Tax ,Wealth Tax ,Custom Duty, Excise Duty, Sales Tax VAT, Cess and other material statutory due in

arrears/wereoutstandingasat31stMarch2018foraperiodofmorethansixmonthsfromthedatethey

becamepayable.

(viii) Accordingtotheinformationandexplanationsgiventous,theCompanyhasnotdefaultedinrepaymentofloans

orborrowingtoafinancialinstitutionorbanks.

38

SarthakMetalsLimited|AnnualReport2017­18

(ix) DuringtheyeartheCompanyhasnotraisedanyfreshmoneybywayofinitialpublicoffer,furtherpublicofferand

termloans.

(x) Basedupon theauditproceduresperformedandaccording to the informationandexplanationsgiven tous,no

fraudby the companyor any fraudon the companyby its officers or employeeshasbeennoticedor reported

duringthecourseofouraudit,thatcausesthefinancialstatementstobemateriallymisstated.

(xi) According to the informationandexplanationsgiven tousandbasedonourexaminationof the recordsof the

company, the company has paid/provided for managerial remuneration in accordance with the requisite

approvalsmandatedbytheprovisionsofdection197readwithscheduleVtotheact.

(xii) ThecompanyisnotaNidhiCompanyhencethisclauseisnotapplicable.

(xiii) Basedupontheauditproceduresperformedandaccordingto the informationandexplanationsgiventous,All

transactionswith related parties are in compliancewith sections 177 and 188 of Companies Act, 2013where

applicable and the details have been disclosed in the Financial statements etc. as required by the applicable

accountingstandards.

(xiv) Thecompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertible

debenturesduringtheyearunderreview.

(xv) Thecompanyhasnotenteredintoanynon­cashtransactionswithdirectorsorpersonsconnectedwithhim.

(xvi) TheCompanyisnotrequiredtoberegisteredundersection45­IAoftheReserveBankofIndiaAct,1934.

39

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Place:RAIPUR(C.G.)

Date:29/05/2018Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

SarthakMetalsLimited|AnnualReport2017­18

Annexure-‘B’totheAuditor’sReport

ReportontheInternalFinancialControlsunderClause(i)ofSub-section3ofSection143oftheCompaniesAct,

2013("theAct")

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofM/sSARTHAKMETALSLIMITED(Formerly

knownasSarthakMetalsMarketingPrivateLimited)("theCompany")asof31stMarch2018inconjunctionwithour

auditofthefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management'sResponsibilityforInternalFinancialControls

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

internalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbythe

Institute of Chartered Accountants of India (`ICAI'). These responsibilities include the design, implementation and

maintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficient

conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and

detectionof fraudsanderrors, theaccuracyandcompletenessof theaccountingrecords,and the timelypreparationof

reliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’Responsibility

OurresponsibilityistoexpressanopinionontheCompany'sinternalfinancialcontrolsoverfinancialreportingbasedon

our audit.We conducted our audit in accordancewith the GuidanceNote on Audit of Internal Financial Controls over

FinancialReporting (the "GuidanceNote") and theStandardsonAuditing, issuedby ICAIanddeemed tobeprescribed

undersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,both

applicabletoanauditof InternalFinancialControlsand,both issuedbytheInstituteofCharteredAccountantsof India.

ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudit

to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was

establishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ouraudit involvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrols

systemover financial reporting and their operating effectiveness.Our audit of internal financial controls over financial

reporting includedobtaininganunderstandingof internal financial controlsover financial reporting, assessing the risk

thatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbased

ontheassessedrisk.Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksof

materialmisstatementofthefinancialstatements,whetherduetofraudorerror.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion

ontheCompany'sinternalfinancialcontrolssystemoverfinancialreporting.

MeaningofInternalFinancialControlsOverFinancialReporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes in

accordancewithgenerallyacceptedaccountingprinciples.Acompany'sinternalfinancialcontroloverfinancialreporting

includesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accurately

and fairly reflect the transactionsanddispositionsof theassetsof thecompany; (2)provide reasonableassurance that

transactions are recorded as necessary to permit preparation of financial statements in accordance with generally

accepted accountingprinciples, and that receipts and expenditures of the company arebeingmadeonly in accordance

with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding

preventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany'sassetsthatcouldhavea

40

SarthakMetalsLimited|AnnualReport2017­18

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Place:RAIPUR(C.G.)

Date:29/05/2018Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

materialeffectonthefinancialstatements.

InherentLimitationsofInternalFinancialControlsOverFinancialReporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of

collusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnot

bedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiods

are subject to the risk that the internal financial control over financial reporting may become inadequate because of

changesinconditionsorthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

In ouropinion, theCompanyhas, in allmaterial respects, an adequate internal financial controls systemover financial

reportingandsuch internal financial controlsover financial reportingwereoperatingeffectivelyasat31stMarch2018

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

ReportingissuedbytheInstituteofCharteredAccountantsofIndia.

41

SarthakMetalsLimited|AnnualReport2017­18

Annexure-‘B’totheAuditor’sReport

ReportontheInternalFinancialControlsunderClause(i)ofSub-section3ofSection143oftheCompaniesAct,

2013("theAct")

WehaveauditedtheinternalfinancialcontrolsoverfinancialreportingofM/sSARTHAKMETALSLIMITED(Formerly

knownasSarthakMetalsMarketingPrivateLimited)("theCompany")asof31stMarch2018inconjunctionwithour

auditofthefinancialstatementsoftheCompanyfortheyearendedonthatdate.

Management'sResponsibilityforInternalFinancialControls

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

internalcontrolstatedintheGuidanceNoteonAuditofInternalFinancialControlsoverFinancialReportingissuedbythe

Institute of Chartered Accountants of India (`ICAI'). These responsibilities include the design, implementation and

maintenanceofadequateinternalfinancialcontrolsthatwereoperatingeffectivelyforensuringtheorderlyandefficient

conduct of its business, including adherence to company's policies, the safeguarding of its assets, the prevention and

detectionof fraudsanderrors, theaccuracyandcompletenessof theaccountingrecords,and the timelypreparationof

reliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditors’Responsibility

OurresponsibilityistoexpressanopinionontheCompany'sinternalfinancialcontrolsoverfinancialreportingbasedon

our audit.We conducted our audit in accordancewith the GuidanceNote on Audit of Internal Financial Controls over

FinancialReporting (the "GuidanceNote") and theStandardsonAuditing, issuedby ICAIanddeemed tobeprescribed

undersection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternalfinancialcontrols,both

applicabletoanauditof InternalFinancialControlsand,both issuedbytheInstituteofCharteredAccountantsof India.

ThoseStandardsandtheGuidanceNoterequirethatwecomplywithethicalrequirementsandplanandperformtheaudit

to obtain reasonable assurance about whether adequate internal financial controls over financial reporting was

establishedandmaintainedandifsuchcontrolsoperatedeffectivelyinallmaterialrespects.

Ouraudit involvesperformingprocedurestoobtainauditevidenceabouttheadequacyoftheinternalfinancialcontrols

systemover financial reporting and their operating effectiveness.Our audit of internal financial controls over financial

reporting includedobtaininganunderstandingof internal financial controlsover financial reporting, assessing the risk

thatamaterialweaknessexists,andtestingandevaluatingthedesignandoperatingeffectivenessofinternalcontrolbased

ontheassessedrisk.Theproceduresselecteddependontheauditor'sjudgment,includingtheassessmentoftherisksof

materialmisstatementofthefinancialstatements,whetherduetofraudorerror.

Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforourauditopinion

ontheCompany'sinternalfinancialcontrolssystemoverfinancialreporting.

MeaningofInternalFinancialControlsOverFinancialReporting

A company's internal financial control over financial reporting is a process designed to provide reasonable assurance

regarding the reliability of financial reporting and the preparation of financial statements for external purposes in

accordancewithgenerallyacceptedaccountingprinciples.Acompany'sinternalfinancialcontroloverfinancialreporting

includesthosepoliciesandproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail,accurately

and fairly reflect the transactionsanddispositionsof theassetsof thecompany; (2)provide reasonableassurance that

transactions are recorded as necessary to permit preparation of financial statements in accordance with generally

accepted accountingprinciples, and that receipts and expenditures of the company arebeingmadeonly in accordance

with authorisations of management and directors of the company; and (3) provide reasonable assurance regarding

preventionortimelydetectionofunauthorisedacquisition,use,ordispositionofthecompany'sassetsthatcouldhavea

40

SarthakMetalsLimited|AnnualReport2017­18

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Place:RAIPUR(C.G.)

Date:29/05/2018Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

materialeffectonthefinancialstatements.

InherentLimitationsofInternalFinancialControlsOverFinancialReporting

Because of the inherent limitations of internal financial controls over financial reporting, including the possibility of

collusionorimpropermanagementoverrideofcontrols,materialmisstatementsduetoerrororfraudmayoccurandnot

bedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancialreportingtofutureperiods

are subject to the risk that the internal financial control over financial reporting may become inadequate because of

changesinconditionsorthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

In ouropinion, theCompanyhas, in allmaterial respects, an adequate internal financial controls systemover financial

reportingandsuch internal financial controlsover financial reportingwereoperatingeffectivelyasat31stMarch2018

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

ReportingissuedbytheInstituteofCharteredAccountantsofIndia.

41

SarthakMetalsLimited|AnnualReport2017­18

SARTHAKMETALSLIMITED

(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

BALANCESHEETASAT31stMARCH2018

42

EQUITYANDLIABILITIES

Shareholders’funds

(a)Sharecapital

(b)Reservesandsurplus

(c)Moneyreceivedagainstsharewarrants

Shareapplicationmoneypendingallotment

Non-currentliabilities

(a)Long­termborrowings

(b)Deferredtaxliabilities(Net)

(c)OtherLongtermliabilities

(d)Long­termprovisions(Gratuity)

Currentliabilities

(a)Short­termborrowings

(b)Tradepayables

(c)Othercurrentliabilities

(d)Short­termprovisions

TOTAL

ASSETS

Non-currentassets

(a)Fixedassets

(i)Tangibleassets

(ii)Intangibleassets

(iii)Capitalwork­in­progress

(iv)Intangibleassetsunderdevelopment

(b)Non­currentinvestments

(c)Deferredtaxassets(net)

(d)Long­termloansandadvances

(e)Othernon­currentassets

Currentassets

(a)Currentinvestments

(b)Inventories

(c)Tradereceivables

(d)CashandCashequivalents

(e)Short­termloansandadvances

(f)Othercurrentassets

TOTAL

1

ParticularsAsat31.03.2018 Asat31.03.2017

` `

NoteNo.

2

I.

4

3

II.

1

2

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

136,897,500

229,173,611

­

­

22,777,255

356,401

­

2,169,765

235,903,640

9,257,818

12,558,683

2,319,845

651,414,517

87,291,627

1,944,461

5,742,578

­

7,500,000

­

3,653,160

1,225,003

­

155,516,553

291,285,186

16,323,493

28,682,089

52,250,366

651,414,517

136,897,500

189,853,764

­

­

10,046,022

1,651,201

­

1,219,035

262,397,269

3,451,870

20,716,230

1,174,354

627,407,245

70,326,683

3,203,594

19,367,834

­

7,500,000

4,920,279

1,465,000

­

101,517,850

297,734,583

89,004,791

32,366,630

­

627,407,245

(AmountinRs.)

SarthakMetalsLimited|AnnualReport2017­18

Summaryofsignificantaccountingpolicies 1&25

TheaccompanyingNotesareanintegralpartofthefinancialstatements.

FORANDONBEHALFOFBOARDOFDIRECTOROFSARTHAKMETALSLTD.

43

AsperourReportofevendate

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

Sd/­

(ANOOPKUMARBANSAL)

DIRECTOR

DIN:01661844

Sd/­

(MAYURBHATT)

DIRECTOR

DIN:07586457

Sd/­

(ITIKASINGHAL)

COMPANYSECRETARY

Sd/­

(ANIRUDHSINGHAL)

CHIEFFINANCIALOFFICER

Place:RAIPUR(C.G.)

Date:29/05/2018

SarthakMetalsLimited|AnnualReport2017­18

SARTHAKMETALSLIMITED

(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

BALANCESHEETASAT31stMARCH2018

42

EQUITYANDLIABILITIES

Shareholders’funds

(a)Sharecapital

(b)Reservesandsurplus

(c)Moneyreceivedagainstsharewarrants

Shareapplicationmoneypendingallotment

Non-currentliabilities

(a)Long­termborrowings

(b)Deferredtaxliabilities(Net)

(c)OtherLongtermliabilities

(d)Long­termprovisions(Gratuity)

Currentliabilities

(a)Short­termborrowings

(b)Tradepayables

(c)Othercurrentliabilities

(d)Short­termprovisions

TOTAL

ASSETS

Non-currentassets

(a)Fixedassets

(i)Tangibleassets

(ii)Intangibleassets

(iii)Capitalwork­in­progress

(iv)Intangibleassetsunderdevelopment

(b)Non­currentinvestments

(c)Deferredtaxassets(net)

(d)Long­termloansandadvances

(e)Othernon­currentassets

Currentassets

(a)Currentinvestments

(b)Inventories

(c)Tradereceivables

(d)CashandCashequivalents

(e)Short­termloansandadvances

(f)Othercurrentassets

TOTAL

1

ParticularsAsat31.03.2018 Asat31.03.2017

` `

NoteNo.

2

I.

4

3

II.

1

2

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

136,897,500

229,173,611

­

­

22,777,255

356,401

­

2,169,765

235,903,640

9,257,818

12,558,683

2,319,845

651,414,517

87,291,627

1,944,461

5,742,578

­

7,500,000

­

3,653,160

1,225,003

­

155,516,553

291,285,186

16,323,493

28,682,089

52,250,366

651,414,517

136,897,500

189,853,764

­

­

10,046,022

1,651,201

­

1,219,035

262,397,269

3,451,870

20,716,230

1,174,354

627,407,245

70,326,683

3,203,594

19,367,834

­

7,500,000

4,920,279

1,465,000

­

101,517,850

297,734,583

89,004,791

32,366,630

­

627,407,245

(AmountinRs.)

SarthakMetalsLimited|AnnualReport2017­18

Summaryofsignificantaccountingpolicies 1&25

TheaccompanyingNotesareanintegralpartofthefinancialstatements.

FORANDONBEHALFOFBOARDOFDIRECTOROFSARTHAKMETALSLTD.

43

AsperourReportofevendate

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

Sd/­

(ANOOPKUMARBANSAL)

DIRECTOR

DIN:01661844

Sd/­

(MAYURBHATT)

DIRECTOR

DIN:07586457

Sd/­

(ITIKASINGHAL)

COMPANYSECRETARY

Sd/­

(ANIRUDHSINGHAL)

CHIEFFINANCIALOFFICER

Place:RAIPUR(C.G.)

Date:29/05/2018

SarthakMetalsLimited|AnnualReport2017­18

44

SARTHAKMETALSLIMITED

(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

STATEMENTOFPROFIT&LOSSACCOUNTFORTHEYEARENDED31stMARCH2018

Revenuefromoperations

Otherincome

TotalRevenue(I+II)

Expenses:

Costofmaterialsconsumed

PurchasesofStock­in­Trade

Changesininventoriesoffinishedgoodswork­in­progressandStock­in­Trade

Employeebenefitsexpense

Financecosts

Depreciationandamortizationexpense

Otherexpenses

Totalexpenses

Profitbeforeexceptionalandextraordinaryitemsandtax(III-IV)

Divdend

Exceptionalitems

Profitbeforeextraordinaryitemsandtax(V-VI)

ExtraordinaryItems

Profitbeforetax(VII­VIII)

Taxexpense:

(1)Currenttax

(2)Deferredtax

Profit(Loss)fortheperiodfromcontinuingoperations(VII-VIII)

Profit/(loss)fromdiscontinuingoperations

Taxexpenseofdiscontinuingoperations

Profit/(loss)fromDiscontinuingoperations(aftertax)(XII-XIII)

Profit(Loss)fortheperiod(XI+XIV)

Earningsperequityshare:

(1)Basic

(2)Diluted

ParticularsAsat31.03.2018 Asat31.03.2017

` `

NoteNo.

I.

X.

(AmountinRs.)

17

18

19

20

21

22

8

23

24

II.

III.

IV.

V.

VI.

VII.

VIII.

IX.

XI.

XII.

XIII.

XIV.

XV.

XVI.

1,712,608,633

16,408,005

1,729,016,638

1,469,825,041

10,158,084

(14,345,282)

44,083,088

34,576,868

13,500,289

99,772,267

1,657,570,354

71,446,284

1,158,120

70,288,164

­

70,288,164

24,024,789

(1,294,800)

47,558,175

­

­

­

47,558,175

3.47

-

1,521,783,800

16,954,743

1,538,738,544

1,282,935,272

1,083,600

3,935,173

41,895,817

33,783,126

10,082,255

106,282,763

1,479,998,006

58,740,538

(766,009)

59,506,547

­

59,506,547

19,598,587

406,268

39,501,692

­

­

­

39,501,692

2.89

-

SarthakMetalsLimited|AnnualReport2017­18

FORANDONBEHALFOFBOARDOFDIRECTOROFSARTHAKMETALSLTD.

AsperourReportofevendate

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

Sd/­

(ANOOPKUMARBANSAL)

DIRECTOR

DIN:01661844

Sd/­

(MAYURBHATT)

DIRECTOR

DIN:07586457

Sd/­

(ITIKASINGHAL)

COMPANYSECRETARY

Sd/­

(ANIRUDHSINGHAL)

CHIEFFINANCIALOFFICER

Place:RAIPUR(C.G.)

Date:29/05/2018

45

SarthakMetalsLimited|AnnualReport2017­18

44

SARTHAKMETALSLIMITED

(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

STATEMENTOFPROFIT&LOSSACCOUNTFORTHEYEARENDED31stMARCH2018

Revenuefromoperations

Otherincome

TotalRevenue(I+II)

Expenses:

Costofmaterialsconsumed

PurchasesofStock­in­Trade

Changesininventoriesoffinishedgoodswork­in­progressandStock­in­Trade

Employeebenefitsexpense

Financecosts

Depreciationandamortizationexpense

Otherexpenses

Totalexpenses

Profitbeforeexceptionalandextraordinaryitemsandtax(III-IV)

Divdend

Exceptionalitems

Profitbeforeextraordinaryitemsandtax(V-VI)

ExtraordinaryItems

Profitbeforetax(VII­VIII)

Taxexpense:

(1)Currenttax

(2)Deferredtax

Profit(Loss)fortheperiodfromcontinuingoperations(VII-VIII)

Profit/(loss)fromdiscontinuingoperations

Taxexpenseofdiscontinuingoperations

Profit/(loss)fromDiscontinuingoperations(aftertax)(XII-XIII)

Profit(Loss)fortheperiod(XI+XIV)

Earningsperequityshare:

(1)Basic

(2)Diluted

ParticularsAsat31.03.2018 Asat31.03.2017

` `

NoteNo.

I.

X.

(AmountinRs.)

17

18

19

20

21

22

8

23

24

II.

III.

IV.

V.

VI.

VII.

VIII.

IX.

XI.

XII.

XIII.

XIV.

XV.

XVI.

1,712,608,633

16,408,005

1,729,016,638

1,469,825,041

10,158,084

(14,345,282)

44,083,088

34,576,868

13,500,289

99,772,267

1,657,570,354

71,446,284

1,158,120

70,288,164

­

70,288,164

24,024,789

(1,294,800)

47,558,175

­

­

­

47,558,175

3.47

-

1,521,783,800

16,954,743

1,538,738,544

1,282,935,272

1,083,600

3,935,173

41,895,817

33,783,126

10,082,255

106,282,763

1,479,998,006

58,740,538

(766,009)

59,506,547

­

59,506,547

19,598,587

406,268

39,501,692

­

­

­

39,501,692

2.89

-

SarthakMetalsLimited|AnnualReport2017­18

FORANDONBEHALFOFBOARDOFDIRECTOROFSARTHAKMETALSLTD.

AsperourReportofevendate

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

Sd/­

(ANOOPKUMARBANSAL)

DIRECTOR

DIN:01661844

Sd/­

(MAYURBHATT)

DIRECTOR

DIN:07586457

Sd/­

(ITIKASINGHAL)

COMPANYSECRETARY

Sd/­

(ANIRUDHSINGHAL)

CHIEFFINANCIALOFFICER

Place:RAIPUR(C.G.)

Date:29/05/2018

45

SarthakMetalsLimited|AnnualReport2017­18

146

SARTHAKMETALSLIMITED

(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

CASHFLOWSTATEMENTFORTHEYEARENDED31stMARCH2018

CASHFLOWFROMOPERATINGACTIVITIES:

NetProfitbeforetaxasperProfit&LossAccount

Adjustmentfor:

Depreciation

Interest(Net)

AmortazationOfPreliminaryExps

Loss/(profit)onsaleoffixedassets

OperatingProfitbeforeWorkingCapitalchanges

Adjustmentfor:

Inventories

Tradeandotherreceivable

ShortTermLoansandAdvances

LongTermLoansandAdvances

TradePayable

OtherCurrentAssets

LongtermLaiblites

OtherCurrentLiabilities

CashgeneratedfromOperations

DirectTaxes(Net)

NetCashfromOperatingActivities

CASHFLOWFROMINVESTINGACTIVITIES:

InvestmentinFixedAssetsincludingCapitalWIP

Proceedsfromsaleoffixedassets

InvestmentinNonCurrentInvestments

InterestReceived

NetCashusedinInvestingActivities

CASHFLOWFROMFINANCINGACTIVITIES:

ProceedFromLongTermBorrowing

OtherShortTermBorrowings

InterestPaid

DividendPaid

NetCashfromfinancingActivities

NetIncrease/(decrease)inCashandCashequivalents(A+B+C)

CASHANDCASHEQUIVALENTSASAT01/04/2017(asperNote-'13')

CASHANDCASHEQUIVALENTSASAT31/03/2018(asperNote-'13')

Increase/(decrease)inCashandCashequivalents

ParticularsAsat31.03.2018 Asat31.03.2017

` `

I.

(AmountinRs.)

702.88

135.00

276.11

2.40

(2.58)

410.93

1,113.81

(539.99)

64.49

36.85

12.67

58.06

(522.50)

9.51

(8.41)

(889.32)

224.49

(220.88)

3.61

(159.12)

5.89

­

1.26

(151.97)

46.24

(264.94)

(277.37)

(82.38)

(578.46)

(726.82)

890.04

163.23

(726.81)

587.40

100.82

337.83

(0.67)

437.98

1,025.38

54.58

(481.49)

12.92

(98.47)

19.99

­

76.71

(415.76)

609.62

(199.28)

410.34

(225.09)

3.67

­

­

(221.42)

539.43

348.35

(337.83)

­

549.95

738.87

151.17

890.04

738.87

SarthakMetalsLimited|AnnualReport2017­18

47

Notes:

(a)Cashandcashequivalentincludethefollowing:

CashonHand

BalancewithBanks(IncludingFixedDeposits)

(b)Figuresinbracketsrepresentoutflows.

5.58

157.66

163.23

3.82

886.22

890.04

(c)Previousyearfigureshavebeenrecast/restatedwherevernecessary.

FORANDONBEHALFOFBOARDOFDIRECTOROFSARTHAKMETALSLTD.

AsperourReportofevendate

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

Sd/­

(ANOOPKUMARBANSAL)

DIRECTOR

DIN:01661844

Sd/­

(MAYURBHATT)

DIRECTOR

DIN:07586457

Sd/­

(ITIKASINGHAL)

COMPANYSECRETARY

Sd/­

(ANIRUDHSINGHAL)

CHIEFFINANCIALOFFICER

Place:RAIPUR(C.G.)

Date:29/05/2018

SarthakMetalsLimited|AnnualReport2017­18

146

SARTHAKMETALSLIMITED

(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

CASHFLOWSTATEMENTFORTHEYEARENDED31stMARCH2018

CASHFLOWFROMOPERATINGACTIVITIES:

NetProfitbeforetaxasperProfit&LossAccount

Adjustmentfor:

Depreciation

Interest(Net)

AmortazationOfPreliminaryExps

Loss/(profit)onsaleoffixedassets

OperatingProfitbeforeWorkingCapitalchanges

Adjustmentfor:

Inventories

Tradeandotherreceivable

ShortTermLoansandAdvances

LongTermLoansandAdvances

TradePayable

OtherCurrentAssets

LongtermLaiblites

OtherCurrentLiabilities

CashgeneratedfromOperations

DirectTaxes(Net)

NetCashfromOperatingActivities

CASHFLOWFROMINVESTINGACTIVITIES:

InvestmentinFixedAssetsincludingCapitalWIP

Proceedsfromsaleoffixedassets

InvestmentinNonCurrentInvestments

InterestReceived

NetCashusedinInvestingActivities

CASHFLOWFROMFINANCINGACTIVITIES:

ProceedFromLongTermBorrowing

OtherShortTermBorrowings

InterestPaid

DividendPaid

NetCashfromfinancingActivities

NetIncrease/(decrease)inCashandCashequivalents(A+B+C)

CASHANDCASHEQUIVALENTSASAT01/04/2017(asperNote-'13')

CASHANDCASHEQUIVALENTSASAT31/03/2018(asperNote-'13')

Increase/(decrease)inCashandCashequivalents

ParticularsAsat31.03.2018 Asat31.03.2017

` `

I.

(AmountinRs.)

702.88

135.00

276.11

2.40

(2.58)

410.93

1,113.81

(539.99)

64.49

36.85

12.67

58.06

(522.50)

9.51

(8.41)

(889.32)

224.49

(220.88)

3.61

(159.12)

5.89

­

1.26

(151.97)

46.24

(264.94)

(277.37)

(82.38)

(578.46)

(726.82)

890.04

163.23

(726.81)

587.40

100.82

337.83

(0.67)

437.98

1,025.38

54.58

(481.49)

12.92

(98.47)

19.99

­

76.71

(415.76)

609.62

(199.28)

410.34

(225.09)

3.67

­

­

(221.42)

539.43

348.35

(337.83)

­

549.95

738.87

151.17

890.04

738.87

SarthakMetalsLimited|AnnualReport2017­18

47

Notes:

(a)Cashandcashequivalentincludethefollowing:

CashonHand

BalancewithBanks(IncludingFixedDeposits)

(b)Figuresinbracketsrepresentoutflows.

5.58

157.66

163.23

3.82

886.22

890.04

(c)Previousyearfigureshavebeenrecast/restatedwherevernecessary.

FORANDONBEHALFOFBOARDOFDIRECTOROFSARTHAKMETALSLTD.

AsperourReportofevendate

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

Sd/­

(ANOOPKUMARBANSAL)

DIRECTOR

DIN:01661844

Sd/­

(MAYURBHATT)

DIRECTOR

DIN:07586457

Sd/­

(ITIKASINGHAL)

COMPANYSECRETARY

Sd/­

(ANIRUDHSINGHAL)

CHIEFFINANCIALOFFICER

Place:RAIPUR(C.G.)

Date:29/05/2018

SarthakMetalsLimited|AnnualReport2017­18

48

SARTHAKMETALSLIMITED

(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

NotestofinancialstatementsfortheyearendedMarch31,2018

Note1

1. SIGNIFICANTACCOUNTINGPOLICIES

1.1 CorporateInformation

SarthakMetalsLimited(hereinafterreferredtoas'theCompany')isapubliccompanydomiciledinIndia.

Earlier,theCompanywasknownasSarthakMetalsMarketingPrivateLimited.ItssharesarelistedonBES

SMEStockExchange.Thecompanyisengagedinthemanufacturingandsellingcoredwires,ferroalloys,

aluminiumwire,industrialgasesandrelateditems.

2. BASISOFPREPARATION

ThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewithgenerallyacceptedaccounting

principlesinIndia(IndianGAAP).TheCompanyhaspreparedthesefinancialstatementstocomplyinallmaterial

respectswiththeaccountingstandardsnotifiedunderSection133oftheCompaniesAct2013,readtogetherwith

paragraph7oftheCompanies(Accounts)Rules2014andCompanies(AccountingStandards)AmendmentRules,

2016.Thefinancialstatementshavebeenpreparedonanaccrualbasisandunderthehistoricalcostconvention.

TheaccountingpolicieshavebeenconsistentlyappliedbytheCompanyandareconsistentwiththoseofprevious

year.

2.1 Useofestimates

The preparation of financial statements in conformitywith Indian GAAP requires themanagement to

make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,

assetsandliabilitiesandthedisclosureofcontingentliabilities,attheendofthereportingyear.Although

these estimates are based on the management’s best knowledge of current events and actions,

uncertainty about these assumptions and estimates could result in the outcomes requiring amaterial

adjustmenttothecarryingamountsofassetsorliabilitiesinfutureyears.

2.2 Fixedassets

TangibleFixedAssets

"Tangiblefixedassetsarestatedatcostofacquisitionorconstructionlessaccumulateddepreciationand

impairmentloss,ifany.Thecostofanassetcomprisesofitspurchasepriceandanydirectlyattributable

costofbringingtheassetstoworkingconditionforitsintendeduse.Subsequentexpenditurerelatedto

anitemoffixedassetisaddedtoitsbookvalueonlyifitincreasesthefuturebenefitsfromtheexisting

assetbeyonditspreviouslyassessedstandardofperformance.Allotherexpensesonexistingfixedassets,

includingday­to­dayrepairandmaintenanceexpenditureandcostofreplacingparts,arechargedtothe

statementofprofitandlossfortheyearduringwhichsuchexpensesareincurred.”

Intangiblefixedassets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial

recognition, intangible assets are carried at cost less accumulated amortization and accumulated

impairmentlosses,ifany.

SarthakMetalsLimited|AnnualReport2017­18

49

2.4 Depreciation

Depreciation on fixed assets is calculated on a written down valuemethod using the rates arrived at

basedon theuseful livesestimatedby themanagement,asprescribed inSchedule II to theCompanies

Act,2013,onapro­ratabasisfromthedatetheassetisreadytoputtouse.

The appropriateness of depreciation/amortisation period and depreciation/amortisation method is

reviewedbythemanagementineachfinancialyear.

2.5 Impairmentoftangibleandintangibleassets

TheCompanyreviewsthecarryingamountsofassetsateachbalancesheetdatetoascertainif thereis

any indicationof impairment. If any indication exists, the asset’s recoverable amount is estimated. For

assets that are not available for use, the recoverable amount is estimated at each reporting date. An

impairment loss is recognised wherever the carrying amount of an asset or its cash generating unit

exceedsitsrecoverableamountandisrecognisedintheStatementofProfitandLoss.Afterimpairment,

depreciation isprovidedontherevisedcarryingamountof theassetover itsremaininguseful life.The

impairmentlossrecognisedintheprioraccountingperiodisreversedifthereischangeintheestimate

used todetermine the recoverable amount.However, the carryingvalue after reversal isnot increased

beyond the carrying value that would have prevailed by charging usual depreciation if there was no

impairment.

2.6Inventories

"Raw materials, components, stores and spares are valued at lower of cost and net realizable value.

However,materialsandother itemsheld foruse in theproductionof inventoriesarenotwrittendown

belowcostifthefinishedproductsinwhichtheywillbeincorporatedareexpectedtobesoldatorabove

cost. Cost of rawmaterials, components and stores and spares is determined on FIFO basis. Finished

goodsarevaluedatlowerofcostandnetrealizablevalue.Costincludesdirectmaterials.Costoffinished

goodsincludesexciseduty.CostisdeterminedonFIFObasis.Tradedgoodsarevaluedatestimatedcost

basedonthesellingpriceof thestock,basedonthepastpractice.Netrealizablevalue is theestimated

sellingprice in theordinarycourseofbusiness, lessestimatedcostsofcompletionandestimatedcosts

necessarytomakethesale.”

2.7 IncomeTax

"Taxexpensecomprisescurrentanddeferredtax.Currenttaxisprovidedforonthetaxableprofitsofthe

yearatapplicabletaxrates.Deferredincometaxesreflectthe impactofcurrentyeartimingdifferences

betweentaxableincomeandaccountingincomefortheyearandreversaloftimingdifferencesofearlier

years.Deferredtaxismeasuredbasedonthetaxratesandthetaxlawsenactedorsubstantivelyenacted

atthebalancesheetdate.Deferredtaxassetsarerecognisedonlytotheextentthatthereisreasonable

certaintythatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscan

be realised. Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax

lossesonlyifthereisvirtualcertaintythatsuchdeferredtaxassetscanberealisedagainstfuturetaxable

profits.The carryingamountofdeferred taxassets are reviewedat each reportingdate.TheCompany

writes­downthecarryingamountofdeferredtaxassettotheextentthatitisnolongerreasonablycertain

or virtually certain, as the casemay be, that sufficient future taxable incomewill be available against

whichdeferredtaxassetcanberealized.Anysuchwrite­downisreversedtotheextentthatitbecomes

reasonablycertainorvirtuallycertain,as thecasemaybe, thatsufficient future taxable incomewillbe

available.”

SarthakMetalsLimited|AnnualReport2017­18

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SARTHAKMETALSLIMITED

(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

NotestofinancialstatementsfortheyearendedMarch31,2018

Note1

1. SIGNIFICANTACCOUNTINGPOLICIES

1.1 CorporateInformation

SarthakMetalsLimited(hereinafterreferredtoas'theCompany')isapubliccompanydomiciledinIndia.

Earlier,theCompanywasknownasSarthakMetalsMarketingPrivateLimited.ItssharesarelistedonBES

SMEStockExchange.Thecompanyisengagedinthemanufacturingandsellingcoredwires,ferroalloys,

aluminiumwire,industrialgasesandrelateditems.

2. BASISOFPREPARATION

ThefinancialstatementsoftheCompanyhavebeenpreparedinaccordancewithgenerallyacceptedaccounting

principlesinIndia(IndianGAAP).TheCompanyhaspreparedthesefinancialstatementstocomplyinallmaterial

respectswiththeaccountingstandardsnotifiedunderSection133oftheCompaniesAct2013,readtogetherwith

paragraph7oftheCompanies(Accounts)Rules2014andCompanies(AccountingStandards)AmendmentRules,

2016.Thefinancialstatementshavebeenpreparedonanaccrualbasisandunderthehistoricalcostconvention.

TheaccountingpolicieshavebeenconsistentlyappliedbytheCompanyandareconsistentwiththoseofprevious

year.

2.1 Useofestimates

The preparation of financial statements in conformitywith Indian GAAP requires themanagement to

make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses,

assetsandliabilitiesandthedisclosureofcontingentliabilities,attheendofthereportingyear.Although

these estimates are based on the management’s best knowledge of current events and actions,

uncertainty about these assumptions and estimates could result in the outcomes requiring amaterial

adjustmenttothecarryingamountsofassetsorliabilitiesinfutureyears.

2.2 Fixedassets

TangibleFixedAssets

"Tangiblefixedassetsarestatedatcostofacquisitionorconstructionlessaccumulateddepreciationand

impairmentloss,ifany.Thecostofanassetcomprisesofitspurchasepriceandanydirectlyattributable

costofbringingtheassetstoworkingconditionforitsintendeduse.Subsequentexpenditurerelatedto

anitemoffixedassetisaddedtoitsbookvalueonlyifitincreasesthefuturebenefitsfromtheexisting

assetbeyonditspreviouslyassessedstandardofperformance.Allotherexpensesonexistingfixedassets,

includingday­to­dayrepairandmaintenanceexpenditureandcostofreplacingparts,arechargedtothe

statementofprofitandlossfortheyearduringwhichsuchexpensesareincurred.”

Intangiblefixedassets

Intangible assets acquired separately are measured on initial recognition at cost. Following initial

recognition, intangible assets are carried at cost less accumulated amortization and accumulated

impairmentlosses,ifany.

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2.4 Depreciation

Depreciation on fixed assets is calculated on a written down valuemethod using the rates arrived at

basedon theuseful livesestimatedby themanagement,asprescribed inSchedule II to theCompanies

Act,2013,onapro­ratabasisfromthedatetheassetisreadytoputtouse.

The appropriateness of depreciation/amortisation period and depreciation/amortisation method is

reviewedbythemanagementineachfinancialyear.

2.5 Impairmentoftangibleandintangibleassets

TheCompanyreviewsthecarryingamountsofassetsateachbalancesheetdatetoascertainif thereis

any indicationof impairment. If any indication exists, the asset’s recoverable amount is estimated. For

assets that are not available for use, the recoverable amount is estimated at each reporting date. An

impairment loss is recognised wherever the carrying amount of an asset or its cash generating unit

exceedsitsrecoverableamountandisrecognisedintheStatementofProfitandLoss.Afterimpairment,

depreciation isprovidedontherevisedcarryingamountof theassetover itsremaininguseful life.The

impairmentlossrecognisedintheprioraccountingperiodisreversedifthereischangeintheestimate

used todetermine the recoverable amount.However, the carryingvalue after reversal isnot increased

beyond the carrying value that would have prevailed by charging usual depreciation if there was no

impairment.

2.6Inventories

"Raw materials, components, stores and spares are valued at lower of cost and net realizable value.

However,materialsandother itemsheld foruse in theproductionof inventoriesarenotwrittendown

belowcostifthefinishedproductsinwhichtheywillbeincorporatedareexpectedtobesoldatorabove

cost. Cost of rawmaterials, components and stores and spares is determined on FIFO basis. Finished

goodsarevaluedatlowerofcostandnetrealizablevalue.Costincludesdirectmaterials.Costoffinished

goodsincludesexciseduty.CostisdeterminedonFIFObasis.Tradedgoodsarevaluedatestimatedcost

basedonthesellingpriceof thestock,basedonthepastpractice.Netrealizablevalue is theestimated

sellingprice in theordinarycourseofbusiness, lessestimatedcostsofcompletionandestimatedcosts

necessarytomakethesale.”

2.7 IncomeTax

"Taxexpensecomprisescurrentanddeferredtax.Currenttaxisprovidedforonthetaxableprofitsofthe

yearatapplicabletaxrates.Deferredincometaxesreflectthe impactofcurrentyeartimingdifferences

betweentaxableincomeandaccountingincomefortheyearandreversaloftimingdifferencesofearlier

years.Deferredtaxismeasuredbasedonthetaxratesandthetaxlawsenactedorsubstantivelyenacted

atthebalancesheetdate.Deferredtaxassetsarerecognisedonlytotheextentthatthereisreasonable

certaintythatsufficientfuturetaxableincomewillbeavailableagainstwhichsuchdeferredtaxassetscan

be realised. Deferred tax assets are recognised on carry forward of unabsorbed depreciation and tax

lossesonlyifthereisvirtualcertaintythatsuchdeferredtaxassetscanberealisedagainstfuturetaxable

profits.The carryingamountofdeferred taxassets are reviewedat each reportingdate.TheCompany

writes­downthecarryingamountofdeferredtaxassettotheextentthatitisnolongerreasonablycertain

or virtually certain, as the casemay be, that sufficient future taxable incomewill be available against

whichdeferredtaxassetcanberealized.Anysuchwrite­downisreversedtotheextentthatitbecomes

reasonablycertainorvirtuallycertain,as thecasemaybe, thatsufficient future taxable incomewillbe

available.”

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2.8 Revenuerecognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the

Companyandtherevenuecanbereliablymeasured.Thefollowingspecificrecognitioncriteriamustalso

bemetbeforerevenueisrecognized:

Saleoftradedgoods

Revenuefromsaleofgoodsisrecognizedwhenallthesignificantrisksandrewardsofownershipofthe

goodshavebeenpassedtothebuyer.TheCompanycollectssalestaxesandvalueaddedtaxes(VAT)on

behalfofthegovernmentand,therefore,thesearenoteconomicbenefitsflowingtotheCompany.Hence,

theyareexcludedfromrevenue.Excisedutydeductedfromrevenue(gross)istheamountthatisincluded

intherevenue(gross)andnottheentireamountofliabilityarisingduringtheyear.

Otheroperatingincome

Revenuefromothersourceshavebeenrecognizedonaccrualbasis.

InterestIncome

Interestincomeisrecognizedonatimeproportionbasistakingintoaccounttheamountoutstandingand

theapplicableinterestrate.Interestincomeisincludedunderthehead“otherincome”inthestatementof

profitandloss.

2.9 Investments

"Investments,whicharereadilyrealizableand intendedtobeheld fornotmorethanoneyear fromthe

dateonwhichsuchinvestmentsaremade,areclassifiedascurrentinvestments.Allotherinvestmentsare

classifiedaslong­terminvestments.Currentinvestmentsarecarriedinthefinancialstatementsatlower

ofcostandfairvaluedeterminedonanindividualinvestmentbasis.Long­terminvestmentsarecarriedat

cost.However,provisionfordiminutioninvalueismadetorecognizeadeclineotherthantemporaryin

thevalueof the investments.Ondisposalof an investment, thedifferencebetween its carryingamount

andnetdisposalproceedsischargedorcreditedtothestatementofprofitandloss.”

2.10 Foreigncurrencytranslation-Foreigncurrencytransactionsandbalances

Initialrecognition

Foreigncurrencytransactionsarerecordedinthereportingcurrency,byapplyingtotheforeigncurrency

amount the exchange rate between the reporting currency and the foreign currency at the date of the

transaction.

Conversion

Foreign currencymonetary items are retranslated using the exchange rate prevailing at the reporting

date. Non­monetary items, which are measured in terms of historical cost rate at denominated in a

foreigncurrency,aretranslatedusingtheexchangerateatthedatewhensuchvaluewasdetermined,the

dateofthetransaction.

Exchangedifferences

Theexchangedifferencesarisingonaccountofconversion/settlementoftransactionsarerecognisedin

thestatementofprofitorlossasincomeorexpensesintheperiodinwhichtheyarise.

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2.11 Employeebenefits

Salaries,wages and bonuses are accrued in the year inwhich the associated services are rendered by

employees of the Company. Other employee benefits include provident fund, superannuation fund,

gratuity fund, compensated absences, long service awards andpost­employmentmedical benefits. The

Company'scontribution toprovident fundandsuperannuation fundarechargedasanexpenseas they

fallduebasedontheamountofcontributionrequiredtobemade.

2.12 EarningsPerShare

"Basicearningspersharearecalculatedbydividingthenetprofitor loss for theperiodattributable to

equityshareholdersby theweightedaveragenumberofequitysharesoutstandingduring theyear.For

thepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheperiodattributableto

equityshareholdersandtheweightedaveragenumberofsharesoutstandingduringtheyearareadjusted

fortheeffectsofalldilutivepotentialequityshares.”

2.13 Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is

probable that an outflow of resources will be required to settle the obligation, in respect of which a

reliable estimate can bemade. Provisions are not discounted to its present value and are determined

basedonbestestimaterequiredtosettletheobligationatthebalancesheetdate.Thesearereviewedat

eachbalancesheetdateandareadjustedtoreflectthecurrentbestestimates.

2.14 Contingentliabilities

A contingent liability is a possible obligation that arises from past events whose existence will be

confirmed by the occurrence or non­occurrence of one or more uncertain future events beyond the

controloftheCompanyorapresentobligationthatisnotrecognizedbecauseitisnotprobablethatan

outflow of resources will be required to settle the obligation. A contingent liability also arises in

extremelyrarecaseswherethereisaliabilitythatcannotberecognizedbecauseitcannotbemeasured

reliably.TheCompanydoesnotrecognizeacontingentliabilitybutdisclosesitsexistenceinthefinancial

statements.

2.15 Cashandcashequivalents

Cashandcashequivalentsforthepurposesofcashflowstatementcomprisecashatbankandinhandand

short­terminvestmentswithanoriginalmaturityofthreemonthsorless.

2.16 DeferredRevenueExpenditure

Preliminary expenses or Initial Public offer's expenses are being written off in five equal yearly

installments.

2.17 SegmentReporting

TheCompany’soperatingbusinessesareorganizedandmanagedseparatelyaccording to thenatureof

products and services provided, with each segment representing a strategic business unit that offers

different products and serves different markets. The Company prepares its segment information in

conformitywiththeaccountingpoliciesadoptedforpreparingandpresentingthefinancialstatementsof

theCompanyasawhole.

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2.8 Revenuerecognition

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the

Companyandtherevenuecanbereliablymeasured.Thefollowingspecificrecognitioncriteriamustalso

bemetbeforerevenueisrecognized:

Saleoftradedgoods

Revenuefromsaleofgoodsisrecognizedwhenallthesignificantrisksandrewardsofownershipofthe

goodshavebeenpassedtothebuyer.TheCompanycollectssalestaxesandvalueaddedtaxes(VAT)on

behalfofthegovernmentand,therefore,thesearenoteconomicbenefitsflowingtotheCompany.Hence,

theyareexcludedfromrevenue.Excisedutydeductedfromrevenue(gross)istheamountthatisincluded

intherevenue(gross)andnottheentireamountofliabilityarisingduringtheyear.

Otheroperatingincome

Revenuefromothersourceshavebeenrecognizedonaccrualbasis.

InterestIncome

Interestincomeisrecognizedonatimeproportionbasistakingintoaccounttheamountoutstandingand

theapplicableinterestrate.Interestincomeisincludedunderthehead“otherincome”inthestatementof

profitandloss.

2.9 Investments

"Investments,whicharereadilyrealizableand intendedtobeheld fornotmorethanoneyear fromthe

dateonwhichsuchinvestmentsaremade,areclassifiedascurrentinvestments.Allotherinvestmentsare

classifiedaslong­terminvestments.Currentinvestmentsarecarriedinthefinancialstatementsatlower

ofcostandfairvaluedeterminedonanindividualinvestmentbasis.Long­terminvestmentsarecarriedat

cost.However,provisionfordiminutioninvalueismadetorecognizeadeclineotherthantemporaryin

thevalueof the investments.Ondisposalof an investment, thedifferencebetween its carryingamount

andnetdisposalproceedsischargedorcreditedtothestatementofprofitandloss.”

2.10 Foreigncurrencytranslation-Foreigncurrencytransactionsandbalances

Initialrecognition

Foreigncurrencytransactionsarerecordedinthereportingcurrency,byapplyingtotheforeigncurrency

amount the exchange rate between the reporting currency and the foreign currency at the date of the

transaction.

Conversion

Foreign currencymonetary items are retranslated using the exchange rate prevailing at the reporting

date. Non­monetary items, which are measured in terms of historical cost rate at denominated in a

foreigncurrency,aretranslatedusingtheexchangerateatthedatewhensuchvaluewasdetermined,the

dateofthetransaction.

Exchangedifferences

Theexchangedifferencesarisingonaccountofconversion/settlementoftransactionsarerecognisedin

thestatementofprofitorlossasincomeorexpensesintheperiodinwhichtheyarise.

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2.11 Employeebenefits

Salaries,wages and bonuses are accrued in the year inwhich the associated services are rendered by

employees of the Company. Other employee benefits include provident fund, superannuation fund,

gratuity fund, compensated absences, long service awards andpost­employmentmedical benefits. The

Company'scontribution toprovident fundandsuperannuation fundarechargedasanexpenseas they

fallduebasedontheamountofcontributionrequiredtobemade.

2.12 EarningsPerShare

"Basicearningspersharearecalculatedbydividingthenetprofitor loss for theperiodattributable to

equityshareholdersby theweightedaveragenumberofequitysharesoutstandingduring theyear.For

thepurposeofcalculatingdilutedearningspershare,thenetprofitorlossfortheperiodattributableto

equityshareholdersandtheweightedaveragenumberofsharesoutstandingduringtheyearareadjusted

fortheeffectsofalldilutivepotentialequityshares.”

2.13 Provisions

A provision is recognised when an enterprise has a present obligation as a result of past event; it is

probable that an outflow of resources will be required to settle the obligation, in respect of which a

reliable estimate can bemade. Provisions are not discounted to its present value and are determined

basedonbestestimaterequiredtosettletheobligationatthebalancesheetdate.Thesearereviewedat

eachbalancesheetdateandareadjustedtoreflectthecurrentbestestimates.

2.14 Contingentliabilities

A contingent liability is a possible obligation that arises from past events whose existence will be

confirmed by the occurrence or non­occurrence of one or more uncertain future events beyond the

controloftheCompanyorapresentobligationthatisnotrecognizedbecauseitisnotprobablethatan

outflow of resources will be required to settle the obligation. A contingent liability also arises in

extremelyrarecaseswherethereisaliabilitythatcannotberecognizedbecauseitcannotbemeasured

reliably.TheCompanydoesnotrecognizeacontingentliabilitybutdisclosesitsexistenceinthefinancial

statements.

2.15 Cashandcashequivalents

Cashandcashequivalentsforthepurposesofcashflowstatementcomprisecashatbankandinhandand

short­terminvestmentswithanoriginalmaturityofthreemonthsorless.

2.16 DeferredRevenueExpenditure

Preliminary expenses or Initial Public offer's expenses are being written off in five equal yearly

installments.

2.17 SegmentReporting

TheCompany’soperatingbusinessesareorganizedandmanagedseparatelyaccording to thenatureof

products and services provided, with each segment representing a strategic business unit that offers

different products and serves different markets. The Company prepares its segment information in

conformitywiththeaccountingpoliciesadoptedforpreparingandpresentingthefinancialstatementsof

theCompanyasawhole.

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(i)Reconciliationofthenumberofsharesoutstandingatthebeginningandattheendofthereportingperiod:­

(ii)Allequitysharescarryequalvotinganddistributionrights.

(iii)Detailsofshareholdersholdingmorethan5percentofsharesinthecompany:­

Note2:Sharecapital

SHARECAPITAL Asat31.03.2018 Asat31.03.2017

Authorised:15,00,000(P.Y.15,00,000)EquityShareofRs.10/­each 15,000,000 15,000,000

Total 15,000,000 15,000,000

Issued,Subscribed&PaidupCapital:13689750(P.Y.13689750)EquitySharesofRs.10/­eachfullypaidup 136,897,500 136,897,500

Total 136,897,500 136,897,500

ParticularsEquityShares Asat31.03.2018 Asat31.03.2017

Number Rs. Rs.

Sharesoutstandingatthebeginningoftheyear 13,689,750 136,897,500 120,897,500

Sharesissuedduringtheyear ­ ­ 16,000,000

Sharesboughtbackduringtheyear ­ ­ ­

Sharesoutstandingattheendoftheyear 13,689,750 136,897,500 136,897,500

Asat31.03.2018 Asat31.03.2017

ShriKishoreKumarBansal

No.ofSharesheld 1,145,250 1145250

%ofHolding 8.37% 8.37%

ShriKishoreKumarBansal

No.ofSharesheld 741000 741,000

%ofHolding 5.41% 5.41%

ShriManojKumarBansal

No.ofSharesheld 3,782,700 3,782,700

%ofHolding 27.63% 27.63%

Metal-GraceInjectionAlloysPrivateLimited

No.ofSharesheld 900,000 900,000

%ofHolding 6.57% 6.57%

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(iv) Thecompanyhasonlyoneclassofequityshareholders.Eachshareholderisentitledtorightofonevotepershare.

(v) ThecompanydeclaresandpaysdividendinIndianRupees.Dividendproposedbydirectorsissubjecttoapproval

ofshareholdersattheensuingAnnualGeneralMeeting.

(vi) Intheeventofliquidation,equityshareholdersshallbeeligibletoreceiveremainingassetsofthecompanyafter

distributionofallpreferentialamountsinproportionoftheirshareholding.

(vii) Numberofbonussharesallottedtoexistingshareholdersforconsiderationotherthancashinthelast5years:

SL.No. DateofissueofFullyPaidupBonusShares NumberofBonusShareissued

1 Friday,March16,2012 2,048,000

2 Friday,March15,2013 4,011,500

3 Saturday,March22,2014 4,023,250

a.SecuritiesPremiumAccount Asat31.03.2018 Asat31.03.2017

OpeningBalance 43,391,000 11,391,000

Add:SecuritiespremiumcreditedonShareissue ­ 32,000,000

Less:PremiumUtilisedforvariousreasons ­ ­

ClosingBalance 43,391,000 43,391,000

b.Surplus

OpeningBalance 145,962,766 106,461,074

(+)NetProfit/(NetLoss)Forthecurrentyear 47,558,175 39,501,691

(+)TransferfromReserves ­ ­

(­)DeclaredDividends(F.Y.2016­2017) 8,238,330 ­

(­)InterimDividends ­ ­

(­)AdjustmentforDepreciation ­ ­

ClosingBalance 185,282,611 145,962,764

C.CapitalInvestmentSubsidy

OpeningBalance 500,000 500,000

(+)TransferfromReserves

(-)Adjustment

ClosingBalance 500,000 500,000

Total 229,173,611 189,853,764

Note3:Reserve&Surplus

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(i)Reconciliationofthenumberofsharesoutstandingatthebeginningandattheendofthereportingperiod:­

(ii)Allequitysharescarryequalvotinganddistributionrights.

(iii)Detailsofshareholdersholdingmorethan5percentofsharesinthecompany:­

Note2:Sharecapital

SHARECAPITAL Asat31.03.2018 Asat31.03.2017

Authorised:15,00,000(P.Y.15,00,000)EquityShareofRs.10/­each 15,000,000 15,000,000

Total 15,000,000 15,000,000

Issued,Subscribed&PaidupCapital:13689750(P.Y.13689750)EquitySharesofRs.10/­eachfullypaidup 136,897,500 136,897,500

Total 136,897,500 136,897,500

ParticularsEquityShares Asat31.03.2018 Asat31.03.2017

Number Rs. Rs.

Sharesoutstandingatthebeginningoftheyear 13,689,750 136,897,500 120,897,500

Sharesissuedduringtheyear ­ ­ 16,000,000

Sharesboughtbackduringtheyear ­ ­ ­

Sharesoutstandingattheendoftheyear 13,689,750 136,897,500 136,897,500

Asat31.03.2018 Asat31.03.2017

ShriKishoreKumarBansal

No.ofSharesheld 1,145,250 1145250

%ofHolding 8.37% 8.37%

ShriKishoreKumarBansal

No.ofSharesheld 741000 741,000

%ofHolding 5.41% 5.41%

ShriManojKumarBansal

No.ofSharesheld 3,782,700 3,782,700

%ofHolding 27.63% 27.63%

Metal-GraceInjectionAlloysPrivateLimited

No.ofSharesheld 900,000 900,000

%ofHolding 6.57% 6.57%

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(iv) Thecompanyhasonlyoneclassofequityshareholders.Eachshareholderisentitledtorightofonevotepershare.

(v) ThecompanydeclaresandpaysdividendinIndianRupees.Dividendproposedbydirectorsissubjecttoapproval

ofshareholdersattheensuingAnnualGeneralMeeting.

(vi) Intheeventofliquidation,equityshareholdersshallbeeligibletoreceiveremainingassetsofthecompanyafter

distributionofallpreferentialamountsinproportionoftheirshareholding.

(vii) Numberofbonussharesallottedtoexistingshareholdersforconsiderationotherthancashinthelast5years:

SL.No. DateofissueofFullyPaidupBonusShares NumberofBonusShareissued

1 Friday,March16,2012 2,048,000

2 Friday,March15,2013 4,011,500

3 Saturday,March22,2014 4,023,250

a.SecuritiesPremiumAccount Asat31.03.2018 Asat31.03.2017

OpeningBalance 43,391,000 11,391,000

Add:SecuritiespremiumcreditedonShareissue ­ 32,000,000

Less:PremiumUtilisedforvariousreasons ­ ­

ClosingBalance 43,391,000 43,391,000

b.Surplus

OpeningBalance 145,962,766 106,461,074

(+)NetProfit/(NetLoss)Forthecurrentyear 47,558,175 39,501,691

(+)TransferfromReserves ­ ­

(­)DeclaredDividends(F.Y.2016­2017) 8,238,330 ­

(­)InterimDividends ­ ­

(­)AdjustmentforDepreciation ­ ­

ClosingBalance 185,282,611 145,962,764

C.CapitalInvestmentSubsidy

OpeningBalance 500,000 500,000

(+)TransferfromReserves

(-)Adjustment

ClosingBalance 500,000 500,000

Total 229,173,611 189,853,764

Note3:Reserve&Surplus

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Note4:LongTermBorrowings

Note5:Long-TermBorrowings:

Particulars Asat31March,2017 Asat31March,2016

` `

UnsecuredBorrowings

AxisBankLimited(ChanelFinanceforPurchasefromBalco)

98,889,356 70,100,000

SecuredBorrowings

StateBankofIndiaBuyerCreditAccount 57,551,646 39,058,786

CashCreditLimitfromStateBankOfIndia

(SecuredAgainstHypothecationofEntireStock&Debtors,

EquitableMortgageofLeaseHoldLand&Plant&Machinery

&PersonalGuaranteeofboththeDirectors.)

69,432,153 153,238,483

StateBankOfIndia(SLCLIMIT)

(SecuredAgainstHypothecationofEntireStock&Debtors,

EquitableMortgageofLeaseHoldLand&Plant&Machinery

&PersonalGuaranteeofboththeDirectors.)

10,030,486 ­

Total 235,903,640 262,397,269

1. Cash credit and Buyers' Credit from State Bank of India is secured against leasehold land, factoy land and

commercial office complex in the name of the Company. The cash credit is repayable on demand and carries

effectiveinterest@10.00%p.a.Further,thecredithasbeenguaranteedbythepersonalguaranteeofthedirectors

oftheCompany.

2. FinancingfacilityfromAxisBankisunsecured.Theloanisrepayableondemandandcarrieseffectiveinterest@

9.00%p.a.

LONGTERMBORROWINGS Asat31.03.2018 Asat31.03.2017

SecuredBorrowings

VehicleLoanFromBanks 3,311,559 2,684,957

StateBankofIndiaTermLoan 19,465,696 7,361,065

Total 22,777,255 10,046,022

1. Term loan from State Bank of India was taken during the current financial year and carries effective interest

@10.00%p.a.TheloanissecuredbyhypothecationofplantandmachineryoftheCompany.Further,theloanhas

beenguaranteedbythepersonalguaranteesofsomeofthedirectorsoftheCompany.

2. VehicleloansfrombanksissecuredbyhypothecationofrespectivevehiclesoftheCompany.

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Note6:OtherCurrentLiabilities

ParticularsAsat31March,2017 Asat31March,2016

` `

AdvanceFromCustomers ­ 3,034,203

EmployeeRetlatedLiabilities 5,291,339 5,505,354

OtherLiabilities 6,096,272 10,822,257

StatutoryLiabilities 1,171,072 1,354,416

Total 12,558,683 20,716,230

Note7:ShortTermProvisions

Particulars Asat31March,2017 Asat31March,2016

` `

ProvisionForCurrentTaxation 24,024,788.88 383,403

Less:AdvanceTax,TDS&TCS 21,704,944.00 2,319,845 ­

CorporateSocialResponsibility ­ 653,210

ProvisionforGratuity - 137,741

Total 2,319,845 1,174,354

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Note4:LongTermBorrowings

Note5:Long-TermBorrowings:

Particulars Asat31March,2017 Asat31March,2016

` `

UnsecuredBorrowings

AxisBankLimited(ChanelFinanceforPurchasefromBalco)

98,889,356 70,100,000

SecuredBorrowings

StateBankofIndiaBuyerCreditAccount 57,551,646 39,058,786

CashCreditLimitfromStateBankOfIndia

(SecuredAgainstHypothecationofEntireStock&Debtors,

EquitableMortgageofLeaseHoldLand&Plant&Machinery

&PersonalGuaranteeofboththeDirectors.)

69,432,153 153,238,483

StateBankOfIndia(SLCLIMIT)

(SecuredAgainstHypothecationofEntireStock&Debtors,

EquitableMortgageofLeaseHoldLand&Plant&Machinery

&PersonalGuaranteeofboththeDirectors.)

10,030,486 ­

Total 235,903,640 262,397,269

1. Cash credit and Buyers' Credit from State Bank of India is secured against leasehold land, factoy land and

commercial office complex in the name of the Company. The cash credit is repayable on demand and carries

effectiveinterest@10.00%p.a.Further,thecredithasbeenguaranteedbythepersonalguaranteeofthedirectors

oftheCompany.

2. FinancingfacilityfromAxisBankisunsecured.Theloanisrepayableondemandandcarrieseffectiveinterest@

9.00%p.a.

LONGTERMBORROWINGS Asat31.03.2018 Asat31.03.2017

SecuredBorrowings

VehicleLoanFromBanks 3,311,559 2,684,957

StateBankofIndiaTermLoan 19,465,696 7,361,065

Total 22,777,255 10,046,022

1. Term loan from State Bank of India was taken during the current financial year and carries effective interest

@10.00%p.a.TheloanissecuredbyhypothecationofplantandmachineryoftheCompany.Further,theloanhas

beenguaranteedbythepersonalguaranteesofsomeofthedirectorsoftheCompany.

2. VehicleloansfrombanksissecuredbyhypothecationofrespectivevehiclesoftheCompany.

SarthakMetalsLimited|AnnualReport2017­18

55

Note6:OtherCurrentLiabilities

ParticularsAsat31March,2017 Asat31March,2016

` `

AdvanceFromCustomers ­ 3,034,203

EmployeeRetlatedLiabilities 5,291,339 5,505,354

OtherLiabilities 6,096,272 10,822,257

StatutoryLiabilities 1,171,072 1,354,416

Total 12,558,683 20,716,230

Note7:ShortTermProvisions

Particulars Asat31March,2017 Asat31March,2016

` `

ProvisionForCurrentTaxation 24,024,788.88 383,403

Less:AdvanceTax,TDS&TCS 21,704,944.00 2,319,845 ­

CorporateSocialResponsibility ­ 653,210

ProvisionforGratuity - 137,741

Total 2,319,845 1,174,354

SarthakMetalsLimited|AnnualReport2017­18

56

No

te8

:Tra

de

Pa

ya

ble

s

Fix

ed

Ass

ets

Ba

lan

cea

sa

t1

Ap

ril

20

17

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dit

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cqu

ired

th

rou

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bu

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inat

ion

Dis

po

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/T

ran

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at

31

Ma

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18

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lan

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20

17

De

pre

cia

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Ad

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as

at

1

Ap

ril

20

17

Ba

lan

cea

sa

t3

1

Ma

rch

20

18

CW

D

AirConditioner

576,626.95

­­

576,626.95

487,050.00

33,339.00

520,389.00

89,576.95

56,237.95

AluminumPlant&M

achinery

(WIP)

1,631,625.00

1,631,625.00

1,631,625.00

AluminumPlantSh

ed&

Building(W

IP)

4,110,952.67

­4,110,952.67

4,110,952.67

Computer

2,851,531.68

72,482.22

­2,924,013.90

2,479,732.36

214,856.00

0.32

2,694,588.68

371,799.32

229,425.22

ComputerErp

3,984,473.00

­­

3,984,473.00

780,879.00

1,259,133.00

2,040,012.00

3,203,594.00

1,944,461.00

ElectricalE

quipmen

t1,950,084.38

1,499,066.03

­3,449,150.41

1,826,325.88

202,009.00

2,028,334.88

123,758.50

1,420,815.53

Eot

1,032,697.00

­­

1,032,697.00

504,603.00

95,604.00

600,207.00

528,094.00

432,490.00

FactoryShed

andBuilding

9,056,628.13

15,138,310.46

­24,194,938.59

4,738,915.10

1,845,036.00

6,583,951.10

4,317,713.03

17,610,987.49

ForkLift

1,844,149.00

­1,844,149.00

1,074,984.00

139,247.00

1,214,231.00

769,165.00

629,918.00

Furniture&Fixtures

823,607.00

­823,607.00

611,212.00

52,649.00

663,861.00

212,395.00

159,746.00

Lan

d13,937,562.00

­13,937,562.00

­13,937,562.00

13,937,562.00

Mobile

431,068.00

50,000.00

­481,068.00

196,785.00

113,606.00

310,391.00

234,283.00

170,677.00

New

Fad

Electrical(WIP)

19,356.00

1,479,710.03

1,499,06

6.03

­­

19,356.00

­

New

Fad

Plantan

d

Machinery(W

IP)

5,474,282.02

3,939,728.20

­5,474,282.02

­

New

Fad

Shed

&Building

(WIP)

13,874,196.32

1,264,114.14

­­

13,874,196.32

­

OfficeEquipmen

t382,560.00

65,062.50

447,622.50

326,634.00

43,279.00

369,913.00

55,926.00

77,709.50

Plant&M

achinery

33,838,860.14

11,192,365.24

45,031,225.38

13,094,693.60

4,823,828.00

17,918,521.60

20,744,166.54

27,112,703.78

RccFrame)

3,124,296.50

­3,124,296.50

1,325,341.50

87,615.00

1,412,956.50

1,798,955.00

1,711,340.00

Truck

974,000.00

­974,000.00

855,914.00

36,883.00

892,797.00

118,086.00

81,203.00

TwoW

heeler

261,180.00

­261,180.00

221,528.00

7,667.00

229,195.00

39,652.00

31,985.00

Veh

icles(FourWheeler)

16,505,998.00

­16,505,998.00

9,541,319.00

2,168,714.00

11,710,033.00

6,964,679.00

4,795,965.00

Weigh

ingMachine

494,533.00

­494,533.00

457,091.94

7,397.00

464,488.94

37,441.06

30,044.06

To

tal

(A)

11

1,4

37

,68

9.1

24

0,4

43

,41

6.4

91

25

,82

9,7

18

.90

38

,52

3,0

08

.38

11

,13

0,8

62

.00

0.3

24

9,6

53

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0.7

07

2,9

14

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0.7

47

6,1

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8.2

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SarthakMetalsLimited|AnnualReport2017­18

GD

AirConditioner

Computer

ElectricalEquipmen

t

FactorySh

edAndBuilding

Furniture&Fixtures

GasCylinder

LAND

Plant&

Machinery

Trolly

Truck

TwoWheeler

Veh

icles(Fo

urW

heeler)

Weigh

ingM

achine

58,500.00

90,600.00

1,337,476.00

5,150,897.65

2,215.00

35,521,346.39

180,406.00

19,977,906.20

1,336,255.00

1,103,957.00

121,522.00

614,300.00

62,281.00

­

­

­

­

­

­

­

­

­

1,520,295.00 ­

­

­

­

­

­

­

­

­

­

6,265,889.20 ­

­

­

­

­

58,500.00

90,600.00

1,337,476.00

5,150,897.65

2,215.00

35,521,346.39

180,406.00

13,712,017.00

1,336,255.00

2,624,252.00

121,522.00

614,300.00

62,281.00

27,075.00

86,069.00

1,133,102.02

2,492,646.98

2,104.00

26,869,521.00 ­

14,789,576.20

1,185,679.00

972,531.00

78,141.00

545,113.00

59,167.00

­

­

51,040.00

250,729.00 ­

735,393.00 ­

925,406.00

40,045.00

121,359.00

10,726.00

23,114.00 ­

28,500.00 ­

­

­

­

­

­

(5,962,907.20) ­

­

­

­

­

55,575.00

86,069.00

1,184,142.02

2,743,375.98

2,104.00

27,604,914.00 ­

9,752,075.00

1,225,724.00

1,093,890.00

88,867.00

568,227.00

59,167.00

31,425.00

4,531.00

204,373.98

2,658,250.67

111.00

8,651,825.39

180,406.00

5,188,330.00

150,576.00

131,426.00

43,381.00

69,187.00

3,114.00

2,925.00

4,531.00

153,333.98

2,407,521.67

111.00

7,916,432.39

180,406.00

3,959,942.00

110,531.00

1,530,362.00

32,655.00

46,073.00

3,114.00

To

tal(

B)

65

,55

7,6

62

.24

1

,52

0,2

95

.00

6

,26

5,8

89

.20

6

0,8

12

,06

8.0

4

48

,24

0,7

25

.20

2,1

57

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2.0

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(5,9

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7.2

0)

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4,1

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.00

1

7,3

16

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7.0

41

6,3

47

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8.0

4

NG

P

Computer

Furniture&Fixtures

OfficeE

quipmen

t

RCCFRAME)

TwoW

heeler

170,100.00

1,438,141.00

216,389.00

3,303,825.00

87,000.00

­

­

­

­

­

­

­

­

­

­

­

­

­

­

­

170,100.00

1,438,141.00

216,389.00

3,303,825.00

87,000.00

156,900.00

1,201,632.00

154,257.00

977,014.00

59,158.00

3,409.00

62,055.00

25,910.00

113,112.00

7,129.00

160,309.00

1,263,687.00

180,167.00

1,090,126.00

66,287.00

13,200.00

236,509.00

62,132.00

2,326,811.00

27,842.00

9,791.00

174,454.00

36,222.00

2,213,699.00

20,713.00

To

tal(

B)

5,2

15

,45

5.0

0

-­

-5

,21

5,4

55

.00

2

,54

8,9

61

.00

2

11

,61

5.0

0

-­

2,7

60

,57

6.0

0

2,6

66

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4.0

0

2,4

54

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9.0

0

GR

AN

DT

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(A

+B

+C

)1

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0,8

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4

1,9

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1.4

9

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2,3

17

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5.9

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19

1,8

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1.9

4

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2,6

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13

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(5,9

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57

SarthakMetalsLimited|AnnualReport2017­18

56

No

te8

:Tra

de

Pa

ya

ble

s

Fix

ed

Ass

ets

Ba

lan

cea

sa

t1

Ap

ril

20

17

Ad

dit

ion

sA

cqu

ired

th

rou

gh

bu

sin

ess

co

mb

inat

ion

Dis

po

sals

/T

ran

sfe

rB

ala

nce

as

at

31

Ma

rch

18

Ba

lan

cea

sa

t1

Ap

ril

20

17

De

pre

cia

tio

n

cha

rge

fo

rth

e

ye

ar

Ad

just

-m

en

tT

ran

sfe

rB

ala

nce

as

at

3

1M

arc

h2

01

8B

ala

nce

as

at

1

Ap

ril

20

17

Ba

lan

cea

sa

t3

1

Ma

rch

20

18

CW

D

AirConditioner

576,626.95

­­

576,626.95

487,050.00

33,339.00

520,389.00

89,576.95

56,237.95

AluminumPlant&M

achinery

(WIP)

1,631,625.00

1,631,625.00

1,631,625.00

AluminumPlantSh

ed&

Building(W

IP)

4,110,952.67

­4,110,952.67

4,110,952.67

Computer

2,851,531.68

72,482.22

­2,924,013.90

2,479,732.36

214,856.00

0.32

2,694,588.68

371,799.32

229,425.22

ComputerErp

3,984,473.00

­­

3,984,473.00

780,879.00

1,259,133.00

2,040,012.00

3,203,594.00

1,944,461.00

ElectricalE

quipmen

t1,950,084.38

1,499,066.03

­3,449,150.41

1,826,325.88

202,009.00

2,028,334.88

123,758.50

1,420,815.53

Eot

1,032,697.00

­­

1,032,697.00

504,603.00

95,604.00

600,207.00

528,094.00

432,490.00

FactoryShed

andBuilding

9,056,628.13

15,138,310.46

­24,194,938.59

4,738,915.10

1,845,036.00

6,583,951.10

4,317,713.03

17,610,987.49

ForkLift

1,844,149.00

­1,844,149.00

1,074,984.00

139,247.00

1,214,231.00

769,165.00

629,918.00

Furniture&Fixtures

823,607.00

­823,607.00

611,212.00

52,649.00

663,861.00

212,395.00

159,746.00

Lan

d13,937,562.00

­13,937,562.00

­13,937,562.00

13,937,562.00

Mobile

431,068.00

50,000.00

­481,068.00

196,785.00

113,606.00

310,391.00

234,283.00

170,677.00

New

Fad

Electrical(WIP)

19,356.00

1,479,710.03

1,499,06

6.03

­­

19,356.00

­

New

Fad

Plantan

d

Machinery(W

IP)

5,474,282.02

3,939,728.20

­5,474,282.02

­

New

Fad

Shed

&Building

(WIP)

13,874,196.32

1,264,114.14

­­

13,874,196.32

­

OfficeEquipmen

t382,560.00

65,062.50

447,622.50

326,634.00

43,279.00

369,913.00

55,926.00

77,709.50

Plant&M

achinery

33,838,860.14

11,192,365.24

45,031,225.38

13,094,693.60

4,823,828.00

17,918,521.60

20,744,166.54

27,112,703.78

RccFrame)

3,124,296.50

­3,124,296.50

1,325,341.50

87,615.00

1,412,956.50

1,798,955.00

1,711,340.00

Truck

974,000.00

­974,000.00

855,914.00

36,883.00

892,797.00

118,086.00

81,203.00

TwoW

heeler

261,180.00

­261,180.00

221,528.00

7,667.00

229,195.00

39,652.00

31,985.00

Veh

icles(FourWheeler)

16,505,998.00

­16,505,998.00

9,541,319.00

2,168,714.00

11,710,033.00

6,964,679.00

4,795,965.00

Weigh

ingMachine

494,533.00

­494,533.00

457,091.94

7,397.00

464,488.94

37,441.06

30,044.06

To

tal

(A)

11

1,4

37

,68

9.1

24

0,4

43

,41

6.4

91

25

,82

9,7

18

.90

38

,52

3,0

08

.38

11

,13

0,8

62

.00

0.3

24

9,6

53

,87

0.7

07

2,9

14

,68

0.7

47

6,1

75

,84

8.2

0

SarthakMetalsLimited|AnnualReport2017­18

GD

AirConditioner

Computer

ElectricalEquipmen

t

FactorySh

edAndBuilding

Furniture&Fixtures

GasCylinder

LAND

Plant&

Machinery

Trolly

Truck

TwoWheeler

Veh

icles(Fo

urW

heeler)

Weigh

ingM

achine

58,500.00

90,600.00

1,337,476.00

5,150,897.65

2,215.00

35,521,346.39

180,406.00

19,977,906.20

1,336,255.00

1,103,957.00

121,522.00

614,300.00

62,281.00

­

­

­

­

­

­

­

­

­

1,520,295.00 ­

­

­

­

­

­

­

­

­

­

6,265,889.20 ­

­

­

­

­

58,500.00

90,600.00

1,337,476.00

5,150,897.65

2,215.00

35,521,346.39

180,406.00

13,712,017.00

1,336,255.00

2,624,252.00

121,522.00

614,300.00

62,281.00

27,075.00

86,069.00

1,133,102.02

2,492,646.98

2,104.00

26,869,521.00 ­

14,789,576.20

1,185,679.00

972,531.00

78,141.00

545,113.00

59,167.00

­

­

51,040.00

250,729.00 ­

735,393.00 ­

925,406.00

40,045.00

121,359.00

10,726.00

23,114.00 ­

28,500.00 ­

­

­

­

­

­

(5,962,907.20) ­

­

­

­

­

55,575.00

86,069.00

1,184,142.02

2,743,375.98

2,104.00

27,604,914.00 ­

9,752,075.00

1,225,724.00

1,093,890.00

88,867.00

568,227.00

59,167.00

31,425.00

4,531.00

204,373.98

2,658,250.67

111.00

8,651,825.39

180,406.00

5,188,330.00

150,576.00

131,426.00

43,381.00

69,187.00

3,114.00

2,925.00

4,531.00

153,333.98

2,407,521.67

111.00

7,916,432.39

180,406.00

3,959,942.00

110,531.00

1,530,362.00

32,655.00

46,073.00

3,114.00

To

tal(

B)

65

,55

7,6

62

.24

1

,52

0,2

95

.00

6

,26

5,8

89

.20

6

0,8

12

,06

8.0

4

48

,24

0,7

25

.20

2,1

57

,81

2.0

0

(5,9

34

,40

7.2

0)

44

,46

4,1

30

.00

1

7,3

16

,93

7.0

41

6,3

47

,93

8.0

4

NG

P

Computer

Furniture&Fixtures

OfficeE

quipmen

t

RCCFRAME)

TwoW

heeler

170,100.00

1,438,141.00

216,389.00

3,303,825.00

87,000.00

­

­

­

­

­

­

­

­

­

­

­

­

­

­

­

170,100.00

1,438,141.00

216,389.00

3,303,825.00

87,000.00

156,900.00

1,201,632.00

154,257.00

977,014.00

59,158.00

3,409.00

62,055.00

25,910.00

113,112.00

7,129.00

160,309.00

1,263,687.00

180,167.00

1,090,126.00

66,287.00

13,200.00

236,509.00

62,132.00

2,326,811.00

27,842.00

9,791.00

174,454.00

36,222.00

2,213,699.00

20,713.00

To

tal(

B)

5,2

15

,45

5.0

0

-­

-5

,21

5,4

55

.00

2

,54

8,9

61

.00

2

11

,61

5.0

0

-­

2,7

60

,57

6.0

0

2,6

66

,49

4.0

0

2,4

54

,87

9.0

0

GR

AN

DT

OT

AL

(A

+B

+C

)1

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1,9

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1.4

9

­3

2,3

17

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5.9

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19

1,8

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1.9

4

89

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2,6

94

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13

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0,2

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(5,9

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6.8

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­9

6,8

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6.7

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94

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No

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s

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te8

:Tra

de

Pa

ya

ble

s

57

SarthakMetalsLimited|AnnualReport2017­18

58

Note9:NonCurrentInvestments

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

InvestmentinEquityShares(Unquoted)

ShareofSarthakEnergyPvtLtd

(250000EquitySharesoffacevalueRs10/­each)

7,500,0007,500,000

Total 7,500,000 7,500,000

Note10:Long-TermLoans&Advances

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

(Unsecured,consideredgood)

SecurityDeposits

3,653,160 4,920,279

Total 3,653,160 4,920,279

Note11:OtherNonCurrentAsset

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

PreliminaryExps 1,225,003 1,465,000

Total 1,225,003 1,465,000

Note12:Inventories

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

RawMaterialsandcomponents(ValuedatFIFOMethod)

Finishedgoods(ValuedatCost)

Coal,Storesandspares&RollsStock(ValuedatCost)

InventoryConsumablegoods

121,573,159

28,251,978

5,645,170

46,246

85,140,171

13,906,697

2,429,482

41,500

Total 155,516,553 101,517,850

SarthakMetalsLimited|AnnualReport2017­18

59

Note13:TradeReceivables

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Outstandingforaperiodlessthansixmonths

Unsecured,consideredgood

Less:Provisionfordoubtfuldebts

Outstandingforaperiodexceedingsixmonths

Unsecured,consideredgood

Less:Provisionfordoubtfuldebts

281,353,263

­

9,931,923

­

293,691,964

­

4,042,619

­

Total 291,285,186 297,734,583

Note14:Cash&CashEquivalents

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

BalancewithBanks

StateBankofIndiaFixedDepositWithBank(MarginMoney)

CashonHand

1,505,248

14,260,280

557,965

74,362,323

14,260,280

382,188

Total 16,323,493 89,004,791

MarginmoneydepositsRs.1,42,60,280/­aresubjecttofirstchargetosecuretheCompany’sLineofCredit,Buyers'Credit

andBankGuarantees.

Note15:Short-TermLoans&Advances

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

(Unsecured,consideredgood)

AdvancestoSuppliers&Others

28,682,089 32,366,630

Total 28,682,089 32,366,630

Note16:OtherCurrentAssets

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

CommOfCustomAndExcise

IncomeTaxAppeal(11­12)

CstAppeal(08­09)

GSTReceivable(ason31StMarch2018)

LeaseRent

Interest(InterrstforfutureAccountedforAgainstCarLoan)

Vat&CstReceivable

SecurityDeposit

633,122

213,680

220,685

48,641,025

23,904

100,727

13,105

2,404,119

­

­

­

­

­

­

­

­

Total 52,250,366 -

SarthakMetalsLimited|AnnualReport2017­18

58

Note9:NonCurrentInvestments

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

InvestmentinEquityShares(Unquoted)

ShareofSarthakEnergyPvtLtd

(250000EquitySharesoffacevalueRs10/­each)

7,500,0007,500,000

Total 7,500,000 7,500,000

Note10:Long-TermLoans&Advances

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

(Unsecured,consideredgood)

SecurityDeposits

3,653,160 4,920,279

Total 3,653,160 4,920,279

Note11:OtherNonCurrentAsset

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

PreliminaryExps 1,225,003 1,465,000

Total 1,225,003 1,465,000

Note12:Inventories

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

RawMaterialsandcomponents(ValuedatFIFOMethod)

Finishedgoods(ValuedatCost)

Coal,Storesandspares&RollsStock(ValuedatCost)

InventoryConsumablegoods

121,573,159

28,251,978

5,645,170

46,246

85,140,171

13,906,697

2,429,482

41,500

Total 155,516,553 101,517,850

SarthakMetalsLimited|AnnualReport2017­18

59

Note13:TradeReceivables

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Outstandingforaperiodlessthansixmonths

Unsecured,consideredgood

Less:Provisionfordoubtfuldebts

Outstandingforaperiodexceedingsixmonths

Unsecured,consideredgood

Less:Provisionfordoubtfuldebts

281,353,263

­

9,931,923

­

293,691,964

­

4,042,619

­

Total 291,285,186 297,734,583

Note14:Cash&CashEquivalents

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

BalancewithBanks

StateBankofIndiaFixedDepositWithBank(MarginMoney)

CashonHand

1,505,248

14,260,280

557,965

74,362,323

14,260,280

382,188

Total 16,323,493 89,004,791

MarginmoneydepositsRs.1,42,60,280/­aresubjecttofirstchargetosecuretheCompany’sLineofCredit,Buyers'Credit

andBankGuarantees.

Note15:Short-TermLoans&Advances

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

(Unsecured,consideredgood)

AdvancestoSuppliers&Others

28,682,089 32,366,630

Total 28,682,089 32,366,630

Note16:OtherCurrentAssets

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

CommOfCustomAndExcise

IncomeTaxAppeal(11­12)

CstAppeal(08­09)

GSTReceivable(ason31StMarch2018)

LeaseRent

Interest(InterrstforfutureAccountedforAgainstCarLoan)

Vat&CstReceivable

SecurityDeposit

633,122

213,680

220,685

48,641,025

23,904

100,727

13,105

2,404,119

­

­

­

­

­

­

­

­

Total 52,250,366 -

SarthakMetalsLimited|AnnualReport2017­18

60

Note17:RevenuefromOperations

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Saleofproducts(ReferNote(I)below)

Saleofservices

Otheroperatingrevenues(ReferNote(ii)below)

Less:

Exciseduty

VAT&CST

GST

1,977,347,557

4,754,736

­

32,831,898

5,179,722

231,482,040

1,711,184,388

­

6,187,880

162,794,725

32,793,743

Total 1,712,608,633 1,521,783,800

Note Particulars Asat31March,2018 Asat31March,2017

₹ ₹

(i) Saleofproductscomprises:

Manufacturedgoods

Sales

Sales(Consignment)

Sales(Export)

Sales(WireFeedermachine)

Total-Saleofmanufacturedgoods

Tradedgoods

SalesTrading

Total-Saleoftradedgoods

Saleofservices

Servicechargesreceived

QualityIncentives

1,446,210,536

­

242,180,995

­

1,688,391,531

12,263,866

12,263,866

4,754,736

­

1,298,898,364

10,660,696

196,337,982

­

1,505,897,041

5,231,464

5,231,464

4,467,415

­

Total-SaleofServices 4,754,736 4,467,415

Total-Saleofproducts 1,700,655,397 1,515,595,920

(ii) Otheroperatingrevenuescomprises:

CylinderCharges(Maintenance&handlingCharges,Rent)

Sales(Scrap)

Sales(EmptyDrum)

CylinderLost

­

5,659,793

1,538,707

­

911,672

3,841,558

1,420,650

14,000

Total-Otheroperatingrevenues 7,198,500 6,187,880

SarthakMetalsLimited|AnnualReport2017­18

61

Note18:OtherIncome

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

DutyDrawback

InsuranceClaim

ProfitonBuyerCredit

CylinderLost

DicInterestSubsidy

InterestReceived

Cylindermaintt.&handlingcharges

Transportdel.&coll.charges

Cylinderrent

ProfitonsaleoffixedAsset

Profitonforeigncurrencytransactions(Net)

P/LOnConsignmentSales

1,887,748

2,021,725

4,140,244

84,000

15,392

126,360

274,509

­

11,381

258,318

7,588,328

­

1,416,774

­

1,417,148

­

1,178,915

2,225,274

­

5,595,581

­

67,108

5,122,925

(68,981)

Total 16,408,005 16,954,743

Note19:CostofMaterialsConsumed

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

OpeningStockRawMaterial

Add:­Purchases&Expenses(Net)

85,181,671

1,484,550,904

88,514,073

1,256,512,815

Less:­Sales

Less:­ClosingStock

1,569,732,576

­

121,619,405

1,345,026,888

­

85,181,671

Total 1,448,113,171 1,259,845,216

OpeningStockStores&Spares

Add:­Purchases&Expenses(Net)

2,429,482

24,927,557

620,000

24,899,538

Less:­ClosingStock

27,357,040

5,645,170

25,519,538

2,429,482

Total 21,711,870 23,090,055

GrandTotal 1,469,825,041 1,282,935,272

SarthakMetalsLimited|AnnualReport2017­18

60

Note17:RevenuefromOperations

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Saleofproducts(ReferNote(I)below)

Saleofservices

Otheroperatingrevenues(ReferNote(ii)below)

Less:

Exciseduty

VAT&CST

GST

1,977,347,557

4,754,736

­

32,831,898

5,179,722

231,482,040

1,711,184,388

­

6,187,880

162,794,725

32,793,743

Total 1,712,608,633 1,521,783,800

Note Particulars Asat31March,2018 Asat31March,2017

₹ ₹

(i) Saleofproductscomprises:

Manufacturedgoods

Sales

Sales(Consignment)

Sales(Export)

Sales(WireFeedermachine)

Total-Saleofmanufacturedgoods

Tradedgoods

SalesTrading

Total-Saleoftradedgoods

Saleofservices

Servicechargesreceived

QualityIncentives

1,446,210,536

­

242,180,995

­

1,688,391,531

12,263,866

12,263,866

4,754,736

­

1,298,898,364

10,660,696

196,337,982

­

1,505,897,041

5,231,464

5,231,464

4,467,415

­

Total-SaleofServices 4,754,736 4,467,415

Total-Saleofproducts 1,700,655,397 1,515,595,920

(ii) Otheroperatingrevenuescomprises:

CylinderCharges(Maintenance&handlingCharges,Rent)

Sales(Scrap)

Sales(EmptyDrum)

CylinderLost

­

5,659,793

1,538,707

­

911,672

3,841,558

1,420,650

14,000

Total-Otheroperatingrevenues 7,198,500 6,187,880

SarthakMetalsLimited|AnnualReport2017­18

61

Note18:OtherIncome

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

DutyDrawback

InsuranceClaim

ProfitonBuyerCredit

CylinderLost

DicInterestSubsidy

InterestReceived

Cylindermaintt.&handlingcharges

Transportdel.&coll.charges

Cylinderrent

ProfitonsaleoffixedAsset

Profitonforeigncurrencytransactions(Net)

P/LOnConsignmentSales

1,887,748

2,021,725

4,140,244

84,000

15,392

126,360

274,509

­

11,381

258,318

7,588,328

­

1,416,774

­

1,417,148

­

1,178,915

2,225,274

­

5,595,581

­

67,108

5,122,925

(68,981)

Total 16,408,005 16,954,743

Note19:CostofMaterialsConsumed

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

OpeningStockRawMaterial

Add:­Purchases&Expenses(Net)

85,181,671

1,484,550,904

88,514,073

1,256,512,815

Less:­Sales

Less:­ClosingStock

1,569,732,576

­

121,619,405

1,345,026,888

­

85,181,671

Total 1,448,113,171 1,259,845,216

OpeningStockStores&Spares

Add:­Purchases&Expenses(Net)

2,429,482

24,927,557

620,000

24,899,538

Less:­ClosingStock

27,357,040

5,645,170

25,519,538

2,429,482

Total 21,711,870 23,090,055

GrandTotal 1,469,825,041 1,282,935,272

SarthakMetalsLimited|AnnualReport2017­18

62

Note20:ChangeinInventories

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

OpeningStockOfFinishedGoods

OpeningStockOfFinishedGoods(WIP)

13,905,442

1,255

17,841,870

­

Less:ClosingStockOfFinishedGoods

Less:ClosingStockOfFinishedGoods(WIP)

13,906,697

28,251,978

­

17,841,870

13,905,442

1,255

28,251,978 13,906,697

Total (14,345,282) 3,935,173

Note21:EmployeeBenefitExpenses

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Salary&Allowances

LeaveSalary

BonusExps

LabourPayment

Gratuity(BasedOnActurialValutaion)

Staff&LabourWelfare

ProvidentFund

DirectorRemuneration

ESICExps.

28,902,651

1,092,499

2,312,130

2,804,580

981,285

676,609

1,387,342

5,400,000

525,992

26,535,536

1,092,853

2,737,160

­

376,100

611,316

782,174

9,400,000

360,678

Total 44,083,088 41,895,817

Note22:FinanceCosts

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Interestexpenses

ToBank&CashCreditLimit

ToOthers

ToVehicleloans

ToOnLC/BuyersCreditfacility

ToOnUnsecuredLoans

Interestonotherfacilities

BankCharges&Commission

12,837,981

13,325,350

165,637

1,095,156

­

313,158

6,839,586

29,290,470

­

106,490

1,147,616

324,618

2,879,064

34,868

Total 34,576,868 33,783,126

SarthakMetalsLimited|AnnualReport2017­18

63

Note23:OtherExpenses

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

AmortizedExpsCalciumManagementExpensesClearingAndForwardingCommission&BrokerageComputer/ERPExpsConsuamblestoresCorporationTaxCylinderExpensesDestinationExpsDonationExpensesEntryTaxGardenExpsGasExpensesInsuranceLeaseRent,FactoryLicence&RentExpensesLegal&ProfessionalExpensesLoadingAndUnloadingLossonConsignmentSaleMemberFees&SubscripitionOfficeExps.Oil&LubricantPaymentToAuditorsPostage&telegramexp.PowerChargesPrinting&StationeryProfessionalTaxPropertyTaxSalesPromotionSalesTax(CST&CGST)SecurityGuardExpsServiceChargesSundryBalanceWriteOffTelephoneExpensesTestingChargesTransportationExpsTraveling&ConvyanceExps(IncludesForeignTravelingExps)VehicleMaintaince&PetrolWaterChargesWeigmentChargesBankChargesConsignmentExpensesDiscountLDChargesExciseDuty/ServiceTaxLossonDollarsHedgingMiscellaneousExpensesRate&Qty.Diff.SwachchhaBharatCessOthersCSRExpenditureRepair&Maintenance

240,000­

27,537,0192,344,115858,302800,952

4,516344,068709,263

5,4005,000

36,11394,127

1,612,2072,057,6111,210,984

97,83557,498

142,8501,082,5211,116,361250,000

8,78322,340,408

651,19917,50051,070

322,783390

987,7341,669,297

12,915550,733789,666

25,884,7011,710,8831,968,918

9,33166,685

­­­­­­­­­­­

2,122,530

480,00112,287,128

­1,295,820751,707

­4,553

­­­

59,979­

22,3931,913,705

­3,118,616

­­

298,975941,233476,606227,400

­13,904,912

574,82917,500

332,919234,905

500985,050

2,054,569­

473,743702,300

50,665,8862,359,9891,756,073

­­

5,410,665550,562

255322,948426,358

(1,241,685)847,851567,472159,02636,190

903,2102,358,622

Total 99,772,267 106,282,763

SarthakMetalsLimited|AnnualReport2017­18

62

Note20:ChangeinInventories

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

OpeningStockOfFinishedGoods

OpeningStockOfFinishedGoods(WIP)

13,905,442

1,255

17,841,870

­

Less:ClosingStockOfFinishedGoods

Less:ClosingStockOfFinishedGoods(WIP)

13,906,697

28,251,978

­

17,841,870

13,905,442

1,255

28,251,978 13,906,697

Total (14,345,282) 3,935,173

Note21:EmployeeBenefitExpenses

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Salary&Allowances

LeaveSalary

BonusExps

LabourPayment

Gratuity(BasedOnActurialValutaion)

Staff&LabourWelfare

ProvidentFund

DirectorRemuneration

ESICExps.

28,902,651

1,092,499

2,312,130

2,804,580

981,285

676,609

1,387,342

5,400,000

525,992

26,535,536

1,092,853

2,737,160

­

376,100

611,316

782,174

9,400,000

360,678

Total 44,083,088 41,895,817

Note22:FinanceCosts

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Interestexpenses

ToBank&CashCreditLimit

ToOthers

ToVehicleloans

ToOnLC/BuyersCreditfacility

ToOnUnsecuredLoans

Interestonotherfacilities

BankCharges&Commission

12,837,981

13,325,350

165,637

1,095,156

­

313,158

6,839,586

29,290,470

­

106,490

1,147,616

324,618

2,879,064

34,868

Total 34,576,868 33,783,126

SarthakMetalsLimited|AnnualReport2017­18

63

Note23:OtherExpenses

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

AmortizedExpsCalciumManagementExpensesClearingAndForwardingCommission&BrokerageComputer/ERPExpsConsuamblestoresCorporationTaxCylinderExpensesDestinationExpsDonationExpensesEntryTaxGardenExpsGasExpensesInsuranceLeaseRent,FactoryLicence&RentExpensesLegal&ProfessionalExpensesLoadingAndUnloadingLossonConsignmentSaleMemberFees&SubscripitionOfficeExps.Oil&LubricantPaymentToAuditorsPostage&telegramexp.PowerChargesPrinting&StationeryProfessionalTaxPropertyTaxSalesPromotionSalesTax(CST&CGST)SecurityGuardExpsServiceChargesSundryBalanceWriteOffTelephoneExpensesTestingChargesTransportationExpsTraveling&ConvyanceExps(IncludesForeignTravelingExps)VehicleMaintaince&PetrolWaterChargesWeigmentChargesBankChargesConsignmentExpensesDiscountLDChargesExciseDuty/ServiceTaxLossonDollarsHedgingMiscellaneousExpensesRate&Qty.Diff.SwachchhaBharatCessOthersCSRExpenditureRepair&Maintenance

240,000­

27,537,0192,344,115858,302800,952

4,516344,068709,263

5,4005,000

36,11394,127

1,612,2072,057,6111,210,984

97,83557,498

142,8501,082,5211,116,361250,000

8,78322,340,408

651,19917,50051,070

322,783390

987,7341,669,297

12,915550,733789,666

25,884,7011,710,8831,968,918

9,33166,685

­­­­­­­­­­­

2,122,530

480,00112,287,128

­1,295,820751,707

­4,553

­­­

59,979­

22,3931,913,705

­3,118,616

­­

298,975941,233476,606227,400

­13,904,912

574,82917,500

332,919234,905

500985,050

2,054,569­

473,743702,300

50,665,8862,359,9891,756,073

­­

5,410,665550,562

255322,948426,358

(1,241,685)847,851567,472159,02636,190

903,2102,358,622

Total 99,772,267 106,282,763

SarthakMetalsLimited|AnnualReport2017­18

64

Note24:ExceptionalItems

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Debit/(Credit)pertainingToEarlierYear(IT) 1,158,120 (766,009)

Total 1,158,120 (766,009)

Note25:AdditionalNotestoAccounts

Sl.No.

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

(a) DemandRaisedByIncomeTaxDeptt. ­ ­

(b) DemandRaisedByCommercialTaxDeptt. ­ ­

Less:AmountPaidForAppealsPreferred ­ ­

Netliability ­ ­

(c) BankGuarantee/LCOutstanding 5,519,522 9,123,777

Less:MarginProvided(STDR) 1,42,60,280 14,260,280

Netliability ­ ­

a. Contingentliabilitynotprovidedfor:

b. The company has not received any memorandum (as required to be filed by the suppliers with the notified

authorityundertheMicro,SmallandMediumEnterprisesdevelopmentAct,2006)claimingtheirstatusason31st

March,2018 as micro, small or medium enterprises. Consequently the amount paid/payable to these parties

duringtheyearisNil(previousyear:Nil)

C. ExpenditureinForeignCurrency

Particulars 2017-18 2016-17

₹ ₹

ForeignTourExpenses(ExchangePurchaseCost) 694,675 1,128,787

d. EarningsinforeigncurrencyisRs.75lacs(Previousyear:Rs.51.22Lacs)

f. RELATEDPARTYTRANSACTIONS:

During theYearendedMarch31,2018 theCompanyhasentered intoseveral commercial transactionswith its

relatedparties.Thedetailsofsuchtransactionsandnamesofrelatedparties&natureofrelationshiparegiven

below:

SarthakMetalsLimited|AnnualReport2017­18

65

TRANSACTIONS KEY

MANAGEMENTPERSONNEL

RELATIVESOFKEY

MANAGEMENTPERSONNEL

ENTERPRISESOVERWHICHSIGNIFICANTINFUNECEBYKEY

MANAGEMENTPERSONNEL/RELATIVEOFMANAGEMENTPERSONNEL

PurchasesofMaterials ­ ­ 95,050,932

Remuneration 9,650,000 5,548,000 ­

TransportationCharges ­ ­ ­

Rent ­ ­ 144,000

Salesofgoods ­ ­ ­

S.No. PartyName Relation Amount TypeofTransactions

1 ShriAnoopKumarBansal KeyManagementPersonnel 2,400,000.00 DirectorSalary

300,000.00 Bonus/Incentive

2 ShriManojKumarBansal KeyManagementPersonnel 2,400,000.00 PresidentSalary

300,000.00 Bonus/Incentive

3 ShriSanjayC.Shah KeyManagementPersonnel 2,400,000.00 DirectorSalary

200,000.00 Bonus/Incentive

4 ShriMayurBhatt KeyManagementPersonnel 600,000.00 DirectorSalary

100,000.00 Bonus/Incentive

5 ShriGauravAgarwal RelativeKeyManagementPersonnel 3,000,000.00 StaffSalary

250,000.00 Bonus/Incentive

6 ShriAnirudhSinghal KeyManagementPersonnel 600,000.00 StaffSalary

50,000.00 Bonus/Incentive

7 ItikaSinghal KeyManagementPersonnel 300,000.00 StaffSalary

8 ShriSamarthBansal RelativeKeyManagementPersonnel 600,000.00 StaffSalary

50,000.00 Bonus/Incentive

9 SakshiBansal RelativeKeyManagementPersonnel 300,000.00 StaffSalary

50,000.00 Bonus/Incentive

10 ShaliniShah RelativeKeyManagementPersonnel 648,000.00 StaffSalary

11 JayaBhatt RelativeKeyManagementPersonnel 600,000.00 StaffSalary

50,000.00 Bonus/Incentive

12 BansalBrothers(TradingDiv.)

ENTERPRISESOVERWHICHSIGNIFICANTINFUNECE

15,648,077.00

147,646.00

164,589.00

343,707.00

3,349.00

PurchaseRawMaterial

PurchaseofPackingMaterial

PurchaseofConsumableGoods

FactoryShed&Building

Repair&Maint.Machine

13 BansalBrothers(FAD) ENTERPRISESOVERWHICHSIGNIFICANTINFUNECE 78,743,564.00 PurchaseRawMaterial

14 MetalGraceInjectionAlloysPvt.Ltd.

ENTERPRISESOVERWHICHSIGNIFICANTINFUNECE

144,000.00 RentPaid

Partywisetransactions:

SarthakMetalsLimited|AnnualReport2017­18

64

Note24:ExceptionalItems

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

Debit/(Credit)pertainingToEarlierYear(IT) 1,158,120 (766,009)

Total 1,158,120 (766,009)

Note25:AdditionalNotestoAccounts

Sl.No.

Particulars Asat31March,2018 Asat31March,2017

₹ ₹

(a) DemandRaisedByIncomeTaxDeptt. ­ ­

(b) DemandRaisedByCommercialTaxDeptt. ­ ­

Less:AmountPaidForAppealsPreferred ­ ­

Netliability ­ ­

(c) BankGuarantee/LCOutstanding 5,519,522 9,123,777

Less:MarginProvided(STDR) 1,42,60,280 14,260,280

Netliability ­ ­

a. Contingentliabilitynotprovidedfor:

b. The company has not received any memorandum (as required to be filed by the suppliers with the notified

authorityundertheMicro,SmallandMediumEnterprisesdevelopmentAct,2006)claimingtheirstatusason31st

March,2018 as micro, small or medium enterprises. Consequently the amount paid/payable to these parties

duringtheyearisNil(previousyear:Nil)

C. ExpenditureinForeignCurrency

Particulars 2017-18 2016-17

₹ ₹

ForeignTourExpenses(ExchangePurchaseCost) 694,675 1,128,787

d. EarningsinforeigncurrencyisRs.75lacs(Previousyear:Rs.51.22Lacs)

f. RELATEDPARTYTRANSACTIONS:

During theYearendedMarch31,2018 theCompanyhasentered intoseveral commercial transactionswith its

relatedparties.Thedetailsofsuchtransactionsandnamesofrelatedparties&natureofrelationshiparegiven

below:

SarthakMetalsLimited|AnnualReport2017­18

65

TRANSACTIONS KEY

MANAGEMENTPERSONNEL

RELATIVESOFKEY

MANAGEMENTPERSONNEL

ENTERPRISESOVERWHICHSIGNIFICANTINFUNECEBYKEY

MANAGEMENTPERSONNEL/RELATIVEOFMANAGEMENTPERSONNEL

PurchasesofMaterials ­ ­ 95,050,932

Remuneration 9,650,000 5,548,000 ­

TransportationCharges ­ ­ ­

Rent ­ ­ 144,000

Salesofgoods ­ ­ ­

S.No. PartyName Relation Amount TypeofTransactions

1 ShriAnoopKumarBansal KeyManagementPersonnel 2,400,000.00 DirectorSalary

300,000.00 Bonus/Incentive

2 ShriManojKumarBansal KeyManagementPersonnel 2,400,000.00 PresidentSalary

300,000.00 Bonus/Incentive

3 ShriSanjayC.Shah KeyManagementPersonnel 2,400,000.00 DirectorSalary

200,000.00 Bonus/Incentive

4 ShriMayurBhatt KeyManagementPersonnel 600,000.00 DirectorSalary

100,000.00 Bonus/Incentive

5 ShriGauravAgarwal RelativeKeyManagementPersonnel 3,000,000.00 StaffSalary

250,000.00 Bonus/Incentive

6 ShriAnirudhSinghal KeyManagementPersonnel 600,000.00 StaffSalary

50,000.00 Bonus/Incentive

7 ItikaSinghal KeyManagementPersonnel 300,000.00 StaffSalary

8 ShriSamarthBansal RelativeKeyManagementPersonnel 600,000.00 StaffSalary

50,000.00 Bonus/Incentive

9 SakshiBansal RelativeKeyManagementPersonnel 300,000.00 StaffSalary

50,000.00 Bonus/Incentive

10 ShaliniShah RelativeKeyManagementPersonnel 648,000.00 StaffSalary

11 JayaBhatt RelativeKeyManagementPersonnel 600,000.00 StaffSalary

50,000.00 Bonus/Incentive

12 BansalBrothers(TradingDiv.)

ENTERPRISESOVERWHICHSIGNIFICANTINFUNECE

15,648,077.00

147,646.00

164,589.00

343,707.00

3,349.00

PurchaseRawMaterial

PurchaseofPackingMaterial

PurchaseofConsumableGoods

FactoryShed&Building

Repair&Maint.Machine

13 BansalBrothers(FAD) ENTERPRISESOVERWHICHSIGNIFICANTINFUNECE 78,743,564.00 PurchaseRawMaterial

14 MetalGraceInjectionAlloysPvt.Ltd.

ENTERPRISESOVERWHICHSIGNIFICANTINFUNECE

144,000.00 RentPaid

Partywisetransactions:

SarthakMetalsLimited|AnnualReport2017­18

66

Notes:

NameofRelatedParties:-

1.KEYMANAGEMENTPERSONNEL:

ShriManojKumarBansal­ManagingDirector

ShriKishorKumarBansal­Director

ShriSanjayShah­WholeTimeDirector

ShriAnirudhSinghal­CFO

ShriMayurBhatt­WholeTimeDirector

Mr.ChetanKumar­Director

MrsRamaKohli­Director

CSItikaSinghal­CompanySecretary

2. RELATIVESOFKEYMANAGEMENTPERSONNEL:

ShriManojKumarBansal

ShriSamarthBansal

Smt.SakshiBansal

Smt.ShaliniShah

Smt.JayaBhatt

ShriGauravAgarwal

3. ENTERPRISESOVERWHICHSIGNIFICANTINFLUENCEEXISTS:

a. MetalGraceInjectionAlloysPvt.Ltd.

b. BansalBrothers

c. M/s.SarthakEnergyPvt.Ltd.

g. Previous year's figures are regrouped and reclassified to confirm to this year's classification, as per revised

CompaniesAct,2013.

h. InterestSubsidyofRs.15,382.00/­hadbeenreceivedfromDIC

i YearendcashbalanceandClosingstocksaretakenasverifiedandrepresentedbythemangement.

j Intheopinionofboard,allcurrentassetsincludingsundrydebtors,loansandadvances,etc.arerecoverableinthe

ordinarycourseofbusinessandwouldrealizethevalueasstated.

Further,intheopinionofboard,theprovisionsfordepreciationandallknownliabilitiesareadequateandarenot

inexcessoftheamountreasonablynecessary.

k Parties'closingbalancesaresubjecttoconfirmationand/orreconciliationhowever,theCompanyhasadopteda

system toascertain thebalance confirmationonperiodicalbasis andany consequential adjustments,presently

unascertainable,shallbeaccountedforasandwhentheseaccountsarereconciled/settled.

l DEFERREDTAXES:

TheCompanyfollowsthedepreciationmethodaspertheCompaniesAct2013.Deferredtaxhasbeenworkedout

@33.063%ontheTreatmentofDepreciationundertheCompaniesvis­a­vistheIncomeTaxAct.TheCompany

hasprovidedtheLiability/AssetsforDeferredTaxundertheheadDeferredTaxLiability.Accordinglytheamount

ofDeferredTaxLiabilitiesisasfollows:­

SarthakMetalsLimited|AnnualReport2017­18

67

PARTICULARS ASAT31.03.2018 ASAT31.03.2017

(a) OpeningbalanceofDTL(onaccountofTimeDifference) 1,651,200.93 1,244,933

(b) DepreciationasperCompaniesActfortheyear 92,898,111.78 10,082,255

(c) DepreciationasperIncomeTaxActfortheyear 91,820,070.07 11,311,023

(d) TimeDifference(b­c) 1,078,041.71 (1,228,768)

(e) TaxLiability@33.063%Liability/Asset 356,400.59 (406,268)

(f) ClosingbalanceofDTL(onaccountofTimeDifference) 1,294,800.34 1,651,201

m. CalculationofEPSfortheyearended:

Particulars 2018 2017

NetProfitasperP&LA/c 47,558,175 39,501,692

No.ofShares 13,689,750 13,689,750

Basic&DilutedEPS 3.47 2.89

n TheCompanyhasRs.16.27Lacunrealisedgainsonforeigncurrencytransactionsason31stMarch2018.

o There is total long termborrowing as on 31stmarch 2018 is Rs. 227,77,255.42 outwhich instalment payable

withinTwelveMonthsisRs,125,27,965/­.

p Since,companyhasearnedaveragenetprofitbeforetaxmorethanRs5Croresinthelastthreeyears,provision

forCorporateSocialResponsibilityisrequiredtobemadeunderSection135OfCompaniesAct,2013.However,

theprovisionhasnotbeenrecognisedintheFY2018FinancialResultsastheCSRCommitteemeetingofcompany

wasdelayedandwasconductedposttheannouncementofFinancialResults.Theamountrecommendedbythe

CSRcommitteeforCSRprovisionisRs12.20LacsforFY2017­18whichSMLplanstoexpendinFY2018­19along

withanyunspentCSRprovisionspertainingtoearlierfinancialyears.

q TheIPOProceedsofcompanywereusedonlyforintendedpurposesaspertheProspectusoftheCompany.There

isnodeviationintheutilisationofIPOproceeds.

FORANDONBEHALFOFBOARDOFDIRECTOROFSARTHAKMETALSLTD.

AsperourReportofevendate

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

Sd/­

(ANOOPKUMARBANSAL)

DIRECTOR

DIN:01661844

Sd/­

(MAYURBHATT)

DIRECTOR

DIN:07586457

Sd/­

(ITIKASINGHAL)

COMPANYSECRETARY

Sd/­

(ANIRUDHSINGHAL)

CHIEFFINANCIALOFFICER

Place:RAIPUR(C.G.)

Date:29/05/2018

SarthakMetalsLimited|AnnualReport2017­18

66

Notes:

NameofRelatedParties:-

1.KEYMANAGEMENTPERSONNEL:

ShriManojKumarBansal­ManagingDirector

ShriKishorKumarBansal­Director

ShriSanjayShah­WholeTimeDirector

ShriAnirudhSinghal­CFO

ShriMayurBhatt­WholeTimeDirector

Mr.ChetanKumar­Director

MrsRamaKohli­Director

CSItikaSinghal­CompanySecretary

2. RELATIVESOFKEYMANAGEMENTPERSONNEL:

ShriManojKumarBansal

ShriSamarthBansal

Smt.SakshiBansal

Smt.ShaliniShah

Smt.JayaBhatt

ShriGauravAgarwal

3. ENTERPRISESOVERWHICHSIGNIFICANTINFLUENCEEXISTS:

a. MetalGraceInjectionAlloysPvt.Ltd.

b. BansalBrothers

c. M/s.SarthakEnergyPvt.Ltd.

g. Previous year's figures are regrouped and reclassified to confirm to this year's classification, as per revised

CompaniesAct,2013.

h. InterestSubsidyofRs.15,382.00/­hadbeenreceivedfromDIC

i YearendcashbalanceandClosingstocksaretakenasverifiedandrepresentedbythemangement.

j Intheopinionofboard,allcurrentassetsincludingsundrydebtors,loansandadvances,etc.arerecoverableinthe

ordinarycourseofbusinessandwouldrealizethevalueasstated.

Further,intheopinionofboard,theprovisionsfordepreciationandallknownliabilitiesareadequateandarenot

inexcessoftheamountreasonablynecessary.

k Parties'closingbalancesaresubjecttoconfirmationand/orreconciliationhowever,theCompanyhasadopteda

system toascertain thebalance confirmationonperiodicalbasis andany consequential adjustments,presently

unascertainable,shallbeaccountedforasandwhentheseaccountsarereconciled/settled.

l DEFERREDTAXES:

TheCompanyfollowsthedepreciationmethodaspertheCompaniesAct2013.Deferredtaxhasbeenworkedout

@33.063%ontheTreatmentofDepreciationundertheCompaniesvis­a­vistheIncomeTaxAct.TheCompany

hasprovidedtheLiability/AssetsforDeferredTaxundertheheadDeferredTaxLiability.Accordinglytheamount

ofDeferredTaxLiabilitiesisasfollows:­

SarthakMetalsLimited|AnnualReport2017­18

67

PARTICULARS ASAT31.03.2018 ASAT31.03.2017

(a) OpeningbalanceofDTL(onaccountofTimeDifference) 1,651,200.93 1,244,933

(b) DepreciationasperCompaniesActfortheyear 92,898,111.78 10,082,255

(c) DepreciationasperIncomeTaxActfortheyear 91,820,070.07 11,311,023

(d) TimeDifference(b­c) 1,078,041.71 (1,228,768)

(e) TaxLiability@33.063%Liability/Asset 356,400.59 (406,268)

(f) ClosingbalanceofDTL(onaccountofTimeDifference) 1,294,800.34 1,651,201

m. CalculationofEPSfortheyearended:

Particulars 2018 2017

NetProfitasperP&LA/c 47,558,175 39,501,692

No.ofShares 13,689,750 13,689,750

Basic&DilutedEPS 3.47 2.89

n TheCompanyhasRs.16.27Lacunrealisedgainsonforeigncurrencytransactionsason31stMarch2018.

o There is total long termborrowing as on 31stmarch 2018 is Rs. 227,77,255.42 outwhich instalment payable

withinTwelveMonthsisRs,125,27,965/­.

p Since,companyhasearnedaveragenetprofitbeforetaxmorethanRs5Croresinthelastthreeyears,provision

forCorporateSocialResponsibilityisrequiredtobemadeunderSection135OfCompaniesAct,2013.However,

theprovisionhasnotbeenrecognisedintheFY2018FinancialResultsastheCSRCommitteemeetingofcompany

wasdelayedandwasconductedposttheannouncementofFinancialResults.Theamountrecommendedbythe

CSRcommitteeforCSRprovisionisRs12.20LacsforFY2017­18whichSMLplanstoexpendinFY2018­19along

withanyunspentCSRprovisionspertainingtoearlierfinancialyears.

q TheIPOProceedsofcompanywereusedonlyforintendedpurposesaspertheProspectusoftheCompany.There

isnodeviationintheutilisationofIPOproceeds.

FORANDONBEHALFOFBOARDOFDIRECTOROFSARTHAKMETALSLTD.

AsperourReportofevendate

ForBEGANI&BEGANI

CHARTEREDACCOUNTANTS

FRNNO.010779C

Sd/­

(VIVEKBEGANI)

PARTNER

M.NO.403743

Sd/­

(ANOOPKUMARBANSAL)

DIRECTOR

DIN:01661844

Sd/­

(MAYURBHATT)

DIRECTOR

DIN:07586457

Sd/­

(ITIKASINGHAL)

COMPANYSECRETARY

Sd/­

(ANIRUDHSINGHAL)

CHIEFFINANCIALOFFICER

Place:RAIPUR(C.G.)

Date:29/05/2018

SarthakMetalsLimited|AnnualReport2017­18

68

SARTHAKMETALSLIMITED(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

NotestofinancialstatementsfortheyearendedMarch31,2017

Note22-EmployeeBenefitsUnderAS-15

AmountstoberecognizedintheBalanceSheet

TheprincipalassumptionsusedindetermininggratuityfortheCompany’splansareshownbelow:

EmployeeBenefits

A. ProvidentFundContribution

TheCompanymakescontributiontostatutoryprovidentfundinaccordancewithEmployeesProvidentFundandMiscellaneousProvisionsAct,1952.Thisispost­employmentbenefitandisinthenatureofdefinedcontributionplan.ThecontributionmadebytheCompanyduringtheyearisRs13,87,342/­(previousyear:Rs7,82,174).

B.Gratuity*

ThefollowingtablesetoutsthestatusofthegratuityplanasrequiredunderAS15:

AmounttoberecognizedintheStatementofProfit&Loss

DescriptionAsat31March,2018 Asat31March,2017

₹ ₹

CurrentServiceCost 509,962.00 312,320.00

InterestCost 102,301.00 78,454.00

NetActuarialGainrecognizedduringtheyear 369,022.00 (14,674.00)

981,285.00 376,100.00

DescriptionAsat31March,2018 Asat31March,2017

₹ ₹

PresentValueoftheObligationattheendoftheyear 2,338,061.00 1,356,776.00

Fairvalueofplanassetsattheendoftheyear ­ ­

NetLiabilityrecognizedinBalanceSheet 2,338,061.00 1,356,776.00

CurrentPortion 168,296.00 137,741.00

Non­CurrentPortion 2,169,765.00 1,219,035.00

DescriptionAsat31March,2018 Asat31March,2017

₹ ₹

DiscountingRate(Perannum) 7.71% 7.54%

FutureSalaryIncrease(Perannum) 10.00% 10.00%

Mortality IALM(2006­08) IALM(2006­08)

WithdrawalRate

­Upto30Years(perannum) 5.00% 5.00%

­From31to44Years(perannum) 3.00% 3.00%

­Above44years(perannum) 2.00% 2.00%

SarthakMetalsLimited|AnnualReport2017­18

69

DescriptionAsat31March,2018 Asat31March,2017

₹ ₹

DiscountingRate(Perannum) 7.71% 7.54%

FutureSalaryIncrease(Perannum) 10.00% 10.00%

Mortality IALM(2006­08) IALM(2006­08)

WithdrawalRate

­Upto30Years(perannum) 5.00% 5.00%

­From31to44Years(perannum) 3.00% 3.00%

­Above44years(perannum) 2.00% 2.00%

C.CompensatedAbsences

*InthepreviousyearCompanyacknowledgedthefactthattheacturialvaluationisapplicableontheCompanyasper

AccountingStandard­15(Revised).Accordingly,theactuarialliabilityforgratuitywasmadeinthepreviousyearand

actuarialliabilityforgratuityhasbeenrecognisedforthepreviousyearsaspartofpriorperiodadjustment.

SarthakMetalsLimited|AnnualReport2017­18

68

SARTHAKMETALSLIMITED(FormerlyKnownasSARTHAKMETALSMARKETINGPRIVATELIMITED)

NotestofinancialstatementsfortheyearendedMarch31,2017

Note22-EmployeeBenefitsUnderAS-15

AmountstoberecognizedintheBalanceSheet

TheprincipalassumptionsusedindetermininggratuityfortheCompany’splansareshownbelow:

EmployeeBenefits

A. ProvidentFundContribution

TheCompanymakescontributiontostatutoryprovidentfundinaccordancewithEmployeesProvidentFundandMiscellaneousProvisionsAct,1952.Thisispost­employmentbenefitandisinthenatureofdefinedcontributionplan.ThecontributionmadebytheCompanyduringtheyearisRs13,87,342/­(previousyear:Rs7,82,174).

B.Gratuity*

ThefollowingtablesetoutsthestatusofthegratuityplanasrequiredunderAS15:

AmounttoberecognizedintheStatementofProfit&Loss

DescriptionAsat31March,2018 Asat31March,2017

₹ ₹

CurrentServiceCost 509,962.00 312,320.00

InterestCost 102,301.00 78,454.00

NetActuarialGainrecognizedduringtheyear 369,022.00 (14,674.00)

981,285.00 376,100.00

DescriptionAsat31March,2018 Asat31March,2017

₹ ₹

PresentValueoftheObligationattheendoftheyear 2,338,061.00 1,356,776.00

Fairvalueofplanassetsattheendoftheyear ­ ­

NetLiabilityrecognizedinBalanceSheet 2,338,061.00 1,356,776.00

CurrentPortion 168,296.00 137,741.00

Non­CurrentPortion 2,169,765.00 1,219,035.00

DescriptionAsat31March,2018 Asat31March,2017

₹ ₹

DiscountingRate(Perannum) 7.71% 7.54%

FutureSalaryIncrease(Perannum) 10.00% 10.00%

Mortality IALM(2006­08) IALM(2006­08)

WithdrawalRate

­Upto30Years(perannum) 5.00% 5.00%

­From31to44Years(perannum) 3.00% 3.00%

­Above44years(perannum) 2.00% 2.00%

SarthakMetalsLimited|AnnualReport2017­18

69

DescriptionAsat31March,2018 Asat31March,2017

₹ ₹

DiscountingRate(Perannum) 7.71% 7.54%

FutureSalaryIncrease(Perannum) 10.00% 10.00%

Mortality IALM(2006­08) IALM(2006­08)

WithdrawalRate

­Upto30Years(perannum) 5.00% 5.00%

­From31to44Years(perannum) 3.00% 3.00%

­Above44years(perannum) 2.00% 2.00%

C.CompensatedAbsences

*InthepreviousyearCompanyacknowledgedthefactthattheacturialvaluationisapplicableontheCompanyasper

AccountingStandard­15(Revised).Accordingly,theactuarialliabilityforgratuitywasmadeinthepreviousyearand

actuarialliabilityforgratuityhasbeenrecognisedforthepreviousyearsaspartofpriorperiodadjustment.

SarthakMetalsLimited|AnnualReport2017­18

70

ATTENDANCESLIP

23rdAnnualGeneralMeetingonFriday,The14thSeptember,2018at11A.M.

Regd.FolioNo.___________________________________________________________________________________________________________________________

DPID_____________________________________________________________________________________________________________________________________

ClientID/Ben.A/C______________________________________________________________________________________________________________________

No.ofsharesheld_______________________________________________________________________________________________________________________

Icertifythat Iamaregisteredshareholder/proxyfortheregisteredShareholderof theCompanyandherebyrecordmy

presenceatthe23rdAnnualGeneralMeetingoftheCompanyonFriday,14thSeptember,2018at11.A.M.atB.B.C.Colony,

Khursipar,G.E.Road,Bhilai,Chhattisgarh­490011

___________________________________________________________________________________________________________________________________________

___________________________________________________________________________________________________________________________________________

Member's/Proxy'snameinBlockLetters Member's/Proxy'sSignature

Note:Pleasefillthisattendanceslipandhanditoverattheentranceofthehall.

___________________________________________________________________________________________________________________________________________

SarthakMetalsLimited|AnnualReport2017­18

71

FormNo.MGT-11Proxyform

[PursuanttoSection105(6)oftheCompaniesAct,2013andRule19(3)oftheCompanies(ManagementandAdministration)Rules,2014]

CIN:L51102CT1995PLC009772

NameoftheCompany:SARTHAKMETALSLIMITED

Registeredoffice:B.B.C.Colony,Khursipar,G.E.Road,Bhilai,Chhattisgarh­490011

NameoftheMember(s):

Registeredaddress:

E­mailId:FolioNo/ClientId:DPID:

asmy/ourproxy toattendandvote (onapoll) forme/usandonmy/ourbehalfat23rdAnnualGeneralMeetingofmembersoftheCompany,tobeheldonFriday,14thSeptember, 2018 at the B.B.C. Colony, Khursipar, G.E. Road, Bhilai, Chhattisgarh­490011registeredofficeoftheCompanyat11A.M.,andatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:

I/Webeingthememberof……...................................................................……,holding…...............................................shares,herebyappoint

1.Name:.............................................................................................

Address:

E­mailId:

Signature:……..............................................…..,orfailinghim

2.Name:.............................................................................................

Address:

E­mailId:

Signature:……..............................................…..,orfailinghim

SignatureofShareholderSignatureofProxyHolder(s)Signedthis…......................dayof…......................2018

Note:ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegisteredOfficeoftheCompany,beforethecommencementoftheMeeting

Sr.No. Resolutions For Against

ORDINARYBUSINESS

1. Toreceive,considerandadopt,financialstatementsfortheyearended31stMarch,2018togetherwiththeReportofBoardofDirector'sandAuditor'sthereon.

2. Tore­appointaDirectorinplaceofMr.KishoreKumarBansal(DIN:03067387)

SPECIALBUSINESS

3 TosetlimitofborrowingsuptoRs.70croresabovethenetworthoftheCompany.

AffixRevenue

Stamp

SarthakMetalsLimited|AnnualReport2017­18

70

ATTENDANCESLIP

23rdAnnualGeneralMeetingonFriday,The14thSeptember,2018at11A.M.

Regd.FolioNo.___________________________________________________________________________________________________________________________

DPID_____________________________________________________________________________________________________________________________________

ClientID/Ben.A/C______________________________________________________________________________________________________________________

No.ofsharesheld_______________________________________________________________________________________________________________________

Icertifythat Iamaregisteredshareholder/proxyfortheregisteredShareholderof theCompanyandherebyrecordmy

presenceatthe23rdAnnualGeneralMeetingoftheCompanyonFriday,14thSeptember,2018at11.A.M.atB.B.C.Colony,

Khursipar,G.E.Road,Bhilai,Chhattisgarh­490011

___________________________________________________________________________________________________________________________________________

___________________________________________________________________________________________________________________________________________

Member's/Proxy'snameinBlockLetters Member's/Proxy'sSignature

Note:Pleasefillthisattendanceslipandhanditoverattheentranceofthehall.

___________________________________________________________________________________________________________________________________________

SarthakMetalsLimited|AnnualReport2017­18

71

FormNo.MGT-11Proxyform

[PursuanttoSection105(6)oftheCompaniesAct,2013andRule19(3)oftheCompanies(ManagementandAdministration)Rules,2014]

CIN:L51102CT1995PLC009772

NameoftheCompany:SARTHAKMETALSLIMITED

Registeredoffice:B.B.C.Colony,Khursipar,G.E.Road,Bhilai,Chhattisgarh­490011

NameoftheMember(s):

Registeredaddress:

E­mailId:FolioNo/ClientId:DPID:

asmy/ourproxy toattendandvote (onapoll) forme/usandonmy/ourbehalfat23rdAnnualGeneralMeetingofmembersoftheCompany,tobeheldonFriday,14thSeptember, 2018 at the B.B.C. Colony, Khursipar, G.E. Road, Bhilai, Chhattisgarh­490011registeredofficeoftheCompanyat11A.M.,andatanyadjournmentthereofinrespectofsuchresolutionsasareindicatedbelow:

I/Webeingthememberof……...................................................................……,holding…...............................................shares,herebyappoint

1.Name:.............................................................................................

Address:

E­mailId:

Signature:……..............................................…..,orfailinghim

2.Name:.............................................................................................

Address:

E­mailId:

Signature:……..............................................…..,orfailinghim

SignatureofShareholderSignatureofProxyHolder(s)Signedthis…......................dayof…......................2018

Note:ThisformofproxyinordertobeeffectiveshouldbedulycompletedanddepositedattheRegisteredOfficeoftheCompany,beforethecommencementoftheMeeting

Sr.No. Resolutions For Against

ORDINARYBUSINESS

1. Toreceive,considerandadopt,financialstatementsfortheyearended31stMarch,2018togetherwiththeReportofBoardofDirector'sandAuditor'sthereon.

2. Tore­appointaDirectorinplaceofMr.KishoreKumarBansal(DIN:03067387)

SPECIALBUSINESS

3 TosetlimitofborrowingsuptoRs.70croresabovethenetworthoftheCompany.

AffixRevenue

Stamp

SarthakMetalsLimited|AnnualReport2017­18

72

SarthakMetalsLimited|AnnualReport2017­18

NOTE

SarthakMetalsLimited|AnnualReport2017­18

72

SarthakMetalsLimited|AnnualReport2017­18

NOTE

SarthakMetalsLimited|AnnualReport2017­18

NOTE

SarthakMetalsLimited|AnnualReport2017­18

NOTE

SarthakMetalsLimited|AnnualReport2017­18

SARTHAKMETALSLIMITEDCIN:L51102CT1995PLC009772

RegisteredOffice:B.B.C.Colony,Khursipar,G.E.Road,Bhilai,Chhattisgarh­490011