Date: 2nd September, 2025

To,
The Manager - Listing Compliance
National Stock Exchange of India Limited
Exchange Plaza, Bandra Kurla Complex,
Bandra (East), Mumbai – 400051

NSE Symbol PSFL

ISIN INEOQ6001012
Series SM
Company Name Paramount Speciality Forgings Limited

Sub: Submission of Annual Report of the Company for the Financial Year 2024-2025

Dear Sir/Madam,

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

Regulations, 2015 (Listing Regulations), as amended from time to time, we hereby submit
the 2nd Annual Report of the Company for the financial year ended March 31, 2025
comprising of, inter-alia, Notice of the 2nd AGM of the Company, Board's Report along with
its annexures, Independent Auditors' Report, Standalone Audited Financial Statements,
including Cash Flow Statements and relevant Notes attached thereto.

The Annual Report for the Financial Year 2024-25 is also being uploaded on the Company's
website at https://paramountforge.com

Kindly take above information on your records.

Thanking You,

Yours Faithfully

For Paramount Speciality Forgings Limited

ANKITA ANIL Digitally signed by

ANKITA ANIL PATANKAR

PATANKAR Date: 2025.09.02

18:08:39 +05'30'

Ankita Anil Patankar

Company Secretary & Compliance Officer
ACS: A57166

Date: 2nd September, 2025

Place: Mumbai
 Annual Report 2024 - 25
Company Overview

CORPORATE
INFORMATION
Paramount Speciality Forgings Limited
CIN: L24109MH2023PLC402307

Directors Details of Auditors:

Aliasgar Roshan Hararwala - DIN: 00334957 Statutory Auditor
Aliasgar Abdulla Bhagat - DIN: 00335869 Kalyaniwalla & Mistry LLP
Mohammed Salim Hararwala - DIN: 00335357 Internal Auditor
Kurian Pallathuseril Chandy - DIN: 00855226 Pipalia Singhal & Associates
Nimesh Mukerji - DIN: 07705885 Cost Auditor
Apurva Pradeep Joshi - DIN: 06608172 Jitendrakumar & Associates
Secretarial Auditor
Amit Dharmani & Associates

KMP Details:
Farkhanda Abdul Razak Pagarkar – CFO
Ankita Anil Patankar – CS

Audit Committee Nomination & Remuneration Committee

CONTENTS Kurian Pallathuseril Chandy

Chairman
Nimesh Mukerji
Nimesh Mukerji
Chairman
Kurian Pallathuseril Chandy
Corporate information 3 Member Member
Chairman & managing director’s statement 12 Aliasgar Roshan Hararwala Apurva Pradeep Joshi
Member Member
Notice 32
Directors report 46 Stakeholder Relationship Committee CSR Committee
Standalone independent auditor’s report 90 Nimesh Mukerji Aliasgar Roshan Hararwala
Chairman Designation – Chairman
Standalone notes to accounts 108 Aliasgar Abdulla Bhagat Aliasgar Abdulla Bhagat
Member Designation – Member
Aliasgar Roshan Hararwala Nimesh Mukerji
Member Designation – Member

Registrar and Share Transfer Agents: Bankers:

Purva Sharegistry (India) Private Limited HDFC Bank Limited, Mazgaon Branch
Address: Unit No. 9 Shiv Shakti Ind. Est. J. Address: Premsagar 7,7B, Nesbit Road,
R. Boricha Marg Lower Parel (E), Mumbai, Mazgaon, Mumbai – 400010
Maharashtra, India – 400011
Email: [email protected]
2 3
 Annual Report 2024 - 25
Company Overview

result: Products engineered for extreme temperatures, pressures, and mission-critical performance
Origins and Identity in high-impact environments.

Innovate Boldly Financially, Paramount’s growth echoes its operational discipline. Revenue grew from ₹87.5 crore
(FY22) to ₹110 crore (FY25), with a focus on lean operations, automation, reduced debt, and a
Paramount Speciality Forgings Limited (Paramount Forge), established in 1996, has carved out a consistently robust order book of ₹50 crore+ anchored by repeat OEM and EPC customers in 15+
leading position in India’s vast steel forging landscape through continuous innovation, technological Indian states and multiple export markets (Canada, Middle East, Europe, Oman, Italy).
adoption, and unwavering commitment to quality. Over three decades, Paramount has grown from
a single closed-die forging plant in Kamothe, Maharashtra, to an integrated industrial force with two
specialized facilities, a skilled workforce of 150+, and a reputation that extends across India and
The Path Forward
international markets.

At its core, Paramount embodies a culture to Innovate Boldly. This drive has led to strategic
Deliver Reliably
investments—state-of-the-art Ring Rolling facilities, modern heat treatment systems, and precision Looking ahead, Paramount is poised for its next chapter, rooted in its promise to Deliver Reliably
machining capabilities—that allow Paramount to design and manufacture forged components and empowered by forward-thinking strategies:
tailored for the most demanding sectors: oil & gas, nuclear energy, defence, petrochemicals,
railways, power, infrastructure and heavy engineering. Expanding Capacity & Markets: With new verticals in defence, aerospace, renewables, and
advanced infrastructure, Paramount is scaling up facilities, upgrading capabilities (10-ton hammer,
From the outset, Paramount’s vision was clear: to be a top-tier solution provider for critical industries. 2,000-ton press), and developing export-certified units for global compliance.
Today, the company stands as a trusted name for OEMs and EPC contractors, delivering forged
products that comply with stringent international standards such as PED, ISO 9001:2015, ISO Operational Excellence: Real-time production tracking, predictive maintenance, and digital
14001:2015, and BS OHSAS 18001:2007. transformation initiatives are embedding efficiency, quality, and agility into every process.

Growth and Expertise Sustainability Commitment: Paramount is investing aggressively in solar energy, low-emission
furnaces, waste heat recovery, and zero-discharge practices—minimizing its environmental
footprint and setting the standard for responsible industrialization.
Forge Strongly Workforce & Community: The company continues to advance employee development, workplace
The Paramount journey is marked by a relentless pursuit to Forge Strongly: growing capabilities, safety, and training programs, while fostering community partnerships and embracing inclusive
expanding sectoral reach, and mastering the art and science of forging. Key milestones chronicle growth.
this trajectory—from installing advanced CNC machining lines and commissioning automated heat
treatment plants to setting up a dedicated Ring Rolling Unit for large-diameter, high-strength rings. In FY25 alone, Paramount expanded its customer base with 15+ new Indian and international clients,
Paramount’s diverse product suite includes: made strong inroads into high-value manufacturing for aerospace and marine, and accelerated
exports—tripling contributions from the EU and Middle East in just three years. Financial results
Flanges, Rings, and Gear Blanks for pipelines, turbines, and wind energy underscore this momentum: expanded margins, increased profitability, and an unwavering focus
Valve Bodies, Trunnion Rings, and Slew Rings for pressure regulation and heavy machinery on value creation for all stakeholders.
Turbine Rings and Tower Flanges for power and infrastructure projects
Custom closed- and open-die forgings for specialized, high-stress applications Paramount Speciality Forgings Limited’s story is one of partnership, progress, and promise.
By empowering India’s industrial backbone and contributing to the world’s most vital sectors,
Paramount is not just manufacturing forged components—it is forging futures, raising standards,
These products, ranging from 1kg to 4,000kg, are crafted from carbon, alloy, stainless, duplex, and building enduring trust.
super duplex, and high-nickel alloys—offering unmatched flexibility and strength.

Driven by a seasoned management team and a motivated workforce, Paramount delivers quality at “Passion for Excellence”
every turn. Every batch undergoes exhaustive testing, with mechanical, chemical, and metallographic As Paramount looks to the future, its mission remains steadfast: to set benchmarks in forging
analysis conducted by ISO/NABL-accredited laboratories and ASNT Level II technicians. The technology, partner in national growth, and be an indispensable pillar to every customer’s journey
— in India and beyond.
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 Annual Report 2024 - 25
Company Overview

REPORTING SUITE
BOARD’S WELCOME ADDRESS REPORTING PERIOD
We are pleased to present the Integrated Annual This Integrated Annual Report covers the
Report of Paramount Speciality Forgings Limited financial results, operational achievements,
(Paramount Forge) for FY2024-25. Paramount and strategic initiatives of Paramount
remains steadfast in its mission to “Passion for Speciality Forgings Limited for the period
Excellence,” as we continue to lead the Indian and April 1, 2024 to March 31, 2025.
global forging industry through visionary leadership,
cutting-edge technology, and robust corporate It also includes updates as of July 31, 2025,
governance. regarding major Key Performance Indicators,
ongoing strategic projects, and Board of
Our journey of over three decades is distinguished Directors/Management Team composition
by continuous growth, driven by strategic as applicable.
investments in capacity, modernization of facilities,
and an unyielding commitment to quality and
sustainability. As we serve critical sectors including
REPORTING PRINCIPLES AND
oil & gas, nuclear, defence, and infrastructure, our FRAMEWORK
core values of integrity, innovation, and responsible Paramount Forge’s annual report is prepared
stewardship shape every aspect of our operations. in accordance with:
The Companies Act, 2013 (including rules
This report reflects our dedication to transparent
and amendments)
business practices and value creation for all
Generally Accepted Accounting
stakeholders. We believe it provides comprehensive
Principles (GAAP)
insights into our performance, strategic direction,
Listing requirements of the National Stock
and commitment to sustainable growth for FY2024-
Exchange (SME Emerge)
25.

ABOUT THE REPORT SCOPE AND BOUNDARY

Paramount Speciality Forgings Limited’s Annual This report extends beyond statutory and
Report FY2024-25 provides a holistic overview of financial disclosures, encompassing our
our financial and non-financial performance. The business strategy, operational performance,
report highlights our business strategy, operational stakeholder engagement, environmental
initiatives, risk management practices, and and social responsibility, risk management,
sustainability efforts. and outlook. It addresses Paramount’s
operations across its two manufacturing
Our reporting approach is aligned with key units in Maharashtra and all major business
frameworks, including the Companies Act, 2013, functions.
Generally Accepted Accounting Principles (GAAP)

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 Annual Report 2024 - 25
Company Overview

PRECAUTIONARY
APPROACH
At Paramount Forge, we are committed to
the highest standards of safety, quality, and
environmental responsibility. We proactively identify,
assess, and manage risks that could impact our
business, workforce, or ecosystem. Our focus is on
innovation, operational excellence, and sustainable
practices that minimize environmental impact while
maximizing stakeholder value.

CONTACT
For any queries regarding this report, please
contact:
Email: [email protected]

Disclaimer
This report is intended solely for informational
purposes. While every effort has been made to
ensure the report’s accuracy and completeness,
readers are advised to refer to statutory filings for
any investment or compliance-related decisions

8 9
 Annual Report 2024 - 25
Company Overview

capacity of 7,000 MTPA.

COMPANY
Together, these facilities provide a combined
OVERVIEW forging capacity of 12,000 MTPA. The
Company’s infrastructure is integrated with in-
Paramount Speciality Forgings Limited (“the house capabilities for die development, forging,
Company” or “PSFL”) is a legacy-driven and CNC and VMC machining, automated heat
quality-focused manufacturer of precision steel treatment, dimensional testing, and metallurgical
forgings based in India, with an industrial lineage quality assurance.
spanning over six decades. The Company’s origin
can be traced back to 1962 through a proprietary The Company adheres to robust operational
concern named Acme Engineering Works, and systems and quality standards and is certified
it has since evolved through multiple strategic under ISO 9001:2015, ISO 14001:2015, and ISO
reconstitutions. It was converted into a partnership 45001:2018, demonstrating its commitment
firm in 1994 under the name Paramount Forge, to quality, environmental compliance, and
later into a Limited Liability Partnership in 2019, occupational health and safety.
and subsequently incorporated as a public limited
company under its current name on May 5, 2023. PSFL has been recognized by the industry for
The Company was listed on the SME Platform of its consistent performance, having received:
the National Stock Exchange of India (NSE Emerge) The “Star Performer” Award from EEPC India
on September 25, 2024. during the period 2008–2010; and
The “Bright Beginner Performance” Award from
PSFL is engaged in the manufacturing of a wide the Kirloskar Group in 2022–2023.
range of closed-die, open-die, and ring-rolled
forgings, supplied in rough or finish-machined Led by an experienced promoter group with
conditions. The Company specializes in producing deep industry knowledge and long-standing
high-performance forged components in weight customer relationships, the Company continues
categories ranging from 1 kilogram to 4 metric tons, to strengthen its capabilities through continuous
tailored to stringent customer specifications and capital investment, process innovation, and
applicable national and international standards. adherence to global manufacturing benchmarks.

The Company’s products serve critical applications The registered office of the Company is situated
in sectors such as petrochemicals, oil and gas, at:
fertilizers, chemicals, nuclear power, and heavy 3/1, Guru Himmat Building, Dr. Mascarenhas
engineering. Its product portfolio includes, among Road, Anjirwadi, Mazgaon, Mumbai – 400010,
others: Tube Sheet Blanks, Forged Rings, Girth Maharashtra, India.
Flanges, Tyre Rings, Spacers, Long Weld Neck
Flanges, Self-Reinforced Nozzles, Valve Bodies,
Bonnets, and Seats.

PSFL operates two state-of-the-art manufacturing

units in the state of Maharashtra:

A Closed-Die Forging Plant located at Kamothe,

Navi Mumbai, with an installed capacity of 5,000
metric tons per annum (MTPA); and
A Ring Rolling and Open-Die Forging Plant located
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 Annual Report 2024 - 25
Company Overview

at approximately 40–50%, as both plants generally Operational Efficiency and Technology Adoption
operate in a single shift rather than their optimal 24-hour
potential. On the machining side, capacity utilisation • We recognise that the future belongs to those who
has shown steady improvement — from 31.30% in FY operate smarter, not just bigger.
2021–22 to 39.00% in FY 2022–23, and 40.51% in FY
2023–24 — reflecting the growing demand for value- • Our CNC machines enable improved accuracy
added machining services. and consistency.

Recognising the need to scale up, the Board approved a • Continuous monitoring of process times, material
comprehensive capacity expansion and modernisation flow, and energy usage is underway to reduce
programme at the Khalapur facility, with an investment operational costs and lead times.
of ₹2,381.28 lakhs from the Fresh Issue proceeds. Key
initiatives include: • While we are at the early stages of automation
beyond CNC, we have a clear roadmap for
Civil & Structural Works: Construction of new sheds integrating advanced controls and data analytics
and infrastructure to house additional machinery. into production.

New Forging Machinery: Acquisition of a 10-ton • These measures are expected to increase our
Forging Hammer for high-value closed-die forgings in current plant utilisation by 15–20% in the near
the 50–200 kg range, and a 2000-ton Forging Press term.
to replace smaller pneumatic hammers — enhancing
productivity and enabling the manufacture of complex R&D, Innovation, and Quality Leadership
geometries for defence and aerospace applications.
Innovation remains the backbone of our
Advanced Machining Facilities: Multiple CNC vertical competitiveness. We currently allocate approximately
machining centres, turning lathes, billet band saws, 1% of annual sales towards R&D and plan to increase
and circular saws for higher precision and throughput. this proportion in the coming years. Our R&D focus
Dear Shareholders, Material Handling Upgrades: Forging manipulators and areas include:
overhead cranes for improved safety and efficiency. • Designing and developing new products as per
It is with great pride and a deep sense of responsibility harmoniously meets innovation. customer requirements.
that I present to you the Annual Report of Paramount In-House Testing Facilities: Mechanical, chemical, and
Speciality Forgings Limited for the financial year Performance Overview corrosion testing laboratories to reduce dependency • Evaluating new materials and advanced heat
2024–25 -a year of strategic importance, marked by on external agencies, speed up quality approvals, and treatment techniques.
transformation, resilience, and a clear blueprint for The financial year brought both opportunities and enhance R&D capabilities.
the future. challenges. While overall sales remained flat on a We also intend to strengthen collaborations with
year-on-year basis — largely due to a softer-than- These additions will not only increase our volumes academic institutions and research organisations to
A Landmark Year in Our Journey expected first half — the second-half recovery, but also facilitate entry into high-value, technically stay ahead of technological curves.
coupled with operational discipline, enabled us to demanding segments.
FY 2024–25 will remain a defining milestone in our maintain stability in a volatile environment. Sustainability and ESG Commitment
Company’s history as we successfully transitioned Sectoral Focus and Diversification
into a listed entity on the NSE Emerge SME platform. Our ability to deliver consistent quality, honour The forging industry is inherently energy-intensive,
This was not merely a capital market event; it was long-standing commitments, and nurture enduring During FY 2024–25, our growth was supported by oil and we acknowledge our role in driving sustainability.
the culmination of decades of commitment to customer relationships — some extending over & gas, petrochemicals, chemicals & fertilizers, heavy Initiatives underway include:
quality, customer trust, and operational excellence 60 years — has been a key driver in sustaining engineering, and other infrastructure sectors. Going • Process optimisation to reduce waste generation.
— enabling us to step onto a broader stage with performance and keeping our order book healthy. forward, we are actively pursuing diversification into:
enhanced visibility, governance, and access to • Energy efficiency improvements through better
growth capital. Production Capacity and Expansion Plans Defence and Aerospace: Leveraging our new forging heat recovery and furnace upgrades.
capabilities for precision, high-strength components.
Listing has provided us with a strong platform We currently operate with an installed capacity of Emerging Energy Sectors: Including renewables, • Exploring green forging techniques and renewable
to accelerate expansion plans, deepen market 12,000 MTPA across two plants: green hydrogen, and other clean-tech engineering energy sourcing.
penetration, and further strengthen our credibility Kamothe Plant (Closed Die Forging): 5,000 MTPA needs.
among stakeholders. As a family-founded business Khalapur Plant (Ring Rolling & Open Forging): 7,000 Critical Engineering Components: Targeting high- We believe ESG will be a decisive factor in securing
now operating within a more structured and MTPA value, low-volume niche markets where quality and long-term contracts, especially from global customers
professional corporate framework, we view this complexity are key differentiators. with stringent compliance requirements.
as the beginning of a new era — where tradition At present, our forging capacity utilisation stands

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 Annual Report 2024 - 25
Company Overview

shared passion for excellence. We continue to invest

Financial Outlook in workforce safety, technical skill development, and
employee engagement initiatives to build a resilient,
For FY 2025–26, we project: future-ready organisation. Regular training programmes,
stringent safety protocols, and open channels for
• Revenue Growth: 15–20%, driven by higher communication ensure that our employees remain
capacity utilisation and a value-added product mix. motivated, productive, and aligned with our long-term
vision. Our partners and suppliers, many of whom have
• Profitability Improvement: 10–15%, supported by been associated with us for decades, are equally integral
operational cost control, inventory optimisation, and to this ecosystem of trust and collaboration.
reduced lead times.
Message to Our Investors
• Continued Capital Investments: Upgrading plant
infrastructure while maintaining a prudent approach To our valued shareholders - both those who have
to debt. been with us for years and those who have joined us
following our listing - I extend my gratitude for your
Dividend payouts remain under review, with the priority trust and confidence. You are part of an organisation
being reinvestment into growth, but we are committed that is committed to building long-term value through
to rewarding shareholders in the near future. operational excellence, financial prudence, and
responsible growth. We are not chasing short-lived
Risks and Challenges opportunities; instead, we are focused on creating a
sustainable business that can weather market cycles
We remain vigilant about risks including raw material and continue to deliver over decades.
price volatility, freight cost increases, oil and electricity
price fluctuations, and demand variations due to global Closing Thoughts
economic conditions. Our mitigation strategies include:
The road ahead presents both challenges and
• Long-term supply contracts. opportunities. With our deep industry expertise, strong
• Multi-source procurement. customer relationships, expanding technological
• Flexible production scheduling. capabilities, and prudent capital allocation, we are well-
positioned to forge ahead with confidence. As reflected
Our People – Our Strength in our Annual Report theme — Passion for Excellence —
we will continue to create value for all stakeholders while
At Paramount Speciality Forgings Limited, we firmly building a legacy of quality, integrity, and innovation in
believe that our people are the foundation of our success. the forging industry.
From the shop floor to the boardroom, every individual
contributes to our journey with dedication, skill, and a

with regards,
Mr. Aliasgar Abdulla Bhagat
Chairman Executive Director

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 Annual Report 2024 - 25
Company Overview

BOARD OF DIRECTORS
Ms. Apurva Pradeep Joshi
Independent Directors
Non-Executive Director

Ms. Apurva Pradeep Joshi is a Certified Anti-Money

Mr. Aliasgar Abdulla Bhagat Laundering Expert, Certified Bank Forensic Accountant
Chairman Executive Director and Certified Vigilance & Investigation Expert. She also has
completed a Certificate Course from TATA Institute of Social
Mr. Aliasgar Abdulla Bhagat has over 50 years of experience Sciences (TISS) in Organization Development, Change and
in forging and engineering business. He completed his Leadership (ODCL) in Civil Society Organizations in India. In
Diploma of Production Technology and has played a pivotal addition to this she is a Certified Independent Director from
role in the organization’s strategic planning, goal advocacy, Indian Institute of Corporate Affairs (IICA).
and business expansion.

Mr. Kurian Pallathuseril Chandy

Mr. Alisagar Roshan Hararwala Independent Directors
Managing Director Non-Executive Director
Mr. Alisagar Roshan Hararwala is an experienced
Mr. Kurian Pallathuseril Chandy is a Chartered Accountant
professional with 27+ years in the current business. He is a
having nearly 33 years of rich & extensive work experience
B-Business Enterprise (penurious diploma holder from BIEB
across Finance & Accounting along with nearly 7 years of
(Bharuch) and Institute of Business Entrepreneurship) with
experience in Consulting roles with Rich background in
the rare skill to see an innovation and a strategist, leader,
leading Finance Function and in providing consultation &
empowered with quality organizational success through
guidance on financial issues affecting the organization,
technical improvement, safety initiatives, and operational
including accounting, development of financial policies
efficiency. Leveraging his proven skills in ISO, TS-16949,
& systems, budgeting, accounts, treasury operations,
and ISO 45001 Integrated Management Systems, his role
risk management, corporate governance and statutory
as a Managing Director significantly contributes to our
compliance.
company’s success.

Mr. Mohammed Salim Hararwala

Executive Director Mr. Nimesh Mukerji
Independent Director
Mr. Mohammed Salim Hararwala has over 25 years of
experience in the current business. He had done Diploma
Non-Executive Director
in Computer Technology from Maharashtra State Board of Mr. Nimesh Mukerji is a Chartered Engineer from the
Technical Education in the year 1995. He leads manufacturing Institution of Engineers (India), Kolkata also he has a
operations, ensuring alignment with customer needs Bachelor’s Degree in Mechanical Engineering, B.E. (Hons),
and organizational goals proficient in ISO standards. He from Jabalpur University & Post-Graduate Diploma in
drives process improvements, implementation, and lean- Business Management, (D.B.M.), from Bombay University.
manufacturing. As a vital member of the management, he Mr. Mukerji possess experience of more than 50 years in
fosters innovation and excellence in problem-solving. forging industry.

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 Annual Report 2024 - 25
Company Overview

Mission Vision Our Journey

Since its inception in 1994, Paramount Speciality efficiency and superior quality.
Catering to critical forged components for To be recognized among the top five
Forgings Limited has embarked on a dynamic
indigenous and international clients. manufacturers in India by our select
journey defined by innovation, strength, and In 2024, Paramount boldly stepped into the
customers in industries such as Oil & Gas,
unwavering commitment to reliability. Founded public domain with a successful Initial Public
Engineering, and Aerospace.
as a partnership firm on November 1, 1994, Offering (IPO), raising ₹32.54 crore and listing
Paramount Forge began with a focused vision on the NSE SME platform. The IPO debut
to manufacture precision forged flanges and reflected strong market confidence, listing
fittings tailored for the demanding oil & gas at a premium of 40%, further validating the
sector. This marked the start of a legacy built company’s robust fundamentals and growth
on bold innovation and steadfast quality. trajectory.

In 1996, Paramount took a significant leap by The year 2024 marked the transition of
establishing its first closed-die forging facility Paramount Speciality Forgings into a public
in Kamothe, Navi Mumbai, launching large- limited company, ushering a new chapter as
scale manufacturing operations that set new Paramount Speciality Forgings Limited, with
Team Industry Applications: Component benchmarks in precision forging. The spirit to fresh incorporation reflecting its evolved identity
Strength: Catering to Range: Innovate Boldly carried forward in 2005 with and strengthened corporate governance.
7+ Industrial Sectors the inauguration of a modern ring-rolling plant
150 1 Kg – 4000 in Khopoli, enhancing production capabilities As we look toward 2025 and beyond, Paramount
and strengthening its foothold in the forging is set to scale new heights — expanding its
industry. product range and forging capacity to 20,000
MTPA, upgrading machining and forging
Certifications: Production Capacity: Export Markets: Continuing to expand its technical prowess, infrastructure, and establishing a state-of-the-
ISO 9001:2008 12,000 MTPA Canada, Europe, 2010 saw the commissioning of an in-house art in-house testing laboratory. The company
ISO 14001:2004 CNC and vertical machining center (VMC), is poised to enter strategic sectors such as
and the Middle East
BS OHSAS 18001:2007 boosting productivity and machining precision. defence, aerospace, and shipbuilding, aligning
By 2014, the company realized greater control innovation with emerging industry demands.
over quality and timelines by developing a fully These key enhancements are scheduled for
integrated machine shop, reducing dependency completion by the end of FY25-26, reaffirming
Product Diversity: Revenue from on external vendors and reinforcing its promise our commitment to Deliver Reliably on the
Domestic Markets: to Forge Strongly. promises made to our customers, stakeholders,
Wide range of Operations
15+ States and partners.
Forgings for various increased to A landmark transformation occurred in 2019
Industries ₹10,993.26 lakhs when Paramount evolved from a partnership Throughout this journey, Paramount has
into a limited liability partnership, reinforcing consistently embodied its core values —
its governance structure to support ambitious Passion for excellence. As we forge ahead, this
growth plans. Demonstrating its commitment guiding ethos continues to inspire us to shape
Earnings per Share for PAT reached to EBITDA rose to to operational excellence and technological the future of precision forging with unwavering
FY25 stood at ₹446.57 lakhs ₹934.55 lakhs advancement, 2020 brought two significant excellence.
₹2.57 upgrades — the commissioning of a fully
automated electrical heat-treatment plant and
installation of multi-axis machining centers
alongside a vertical lathe — empowering
Paramount to forge components with greater

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 Annual Report 2024 - 25
Company Overview

Operational Highlights

Strong Customer Acquisition Geographic and Sectoral Diversification

In the financial year 2024-25, Paramount As part of its commitment to operational

Speciality Forgings Limited made excellence, Paramount undertook
significant progress in expanding implementation of advanced digital
its market presence by successfully systems in FY 2024-25. These included
onboarding nearly 15 new customers, real-time production monitoring,
both domestically and internationally. predictive maintenance, and data-
These new relationships include prominent driven quality control. Such initiatives
companies across key sectors such as have significantly improved operational
automotive, off-highway equipment, oil transparency and minimized downtime.
& gas, and railways. This growth reflects By embedding global best practices
Paramount’s strong reputation as a for quality, efficiency, and productivity,
trusted, versatile provider of precision Paramount is positioning itself for smarter
forging solutions capable of meeting and more scalable growth, ensuring
diverse industrial requirements. consistent delivery of superior products.

Skilled Workforce and Training Initiatives

The company’s people remain at the center
of its operational success. Paramount
invested continuously in workforce
training programs designed to enhance
skill levels and operational expertise.
Coupled with stringent safety protocols,
these efforts have ensured workplace
safety and employee well-being across all
shifts and processes. This focus reinforces
Paramount’s commitment to building a
motivated, capable workforce ready to
meet evolving industry challenges.

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 Annual Report 2024 - 25
Company Overview

Key Development Areas & Investment Highlights Manufacturing Unit

In-House Laboratory Development

A state-of-the-art laboratory is being established within the existing manufacturing facility to conduct in-house
Chemical, Mechanical, and Corrosion testing.
This strategic move aims to reduce dependence on third-party labs, lower costs, shorten lead times, and ensure
improved turnaround, quality control, and compliance with national and international standards.

Progress Update:
Civil work is approximately 70% complete, and about 90% of the equipment has been sourced.
The lab is expected to be operational by early to mid-September 2025.

New Forging Plant Development

Infrastructure development for the new forging plant is underway.
This additional capacity is expected to be fully operational by end of December 2025.

Machining Capability
Enhancement
CNC and conventional VTL machines for large-diameter components have been successfully installed at the Machining
Center, significantly improving productivity and operational efficiency.

Forging Capacity Expansion

Procurement of a 10-ton Hammer and a 2000-ton Forging Press has been completed.
All hammer components are received
The Forging Press is currently at the port, scheduled for shipment to MIDC, with expected delivery by mid-September
2025.

Unit I:
Location: Kamothe Plant
Capacity Installed: 5,000 MTPA
Type: Closed Die Forging

Unit II:
Location: Khalapur Plant
Type: Ring Rolling & Open Forging
Capacity Installed: 7,000 MTPA

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 Annual Report 2024 - 25
Company Overview

PRODUCT RANGE

Forged Flanges Seamless Rolled Rings / Hollow Body Forgings / Self- Forged Blanks / Tube
Girth Flanges / Gear Rings Reinforced Nozzles / Valve Sheets / Forged Blocks
Manufacturing Range: Sizes ½” to 144”
/ Slew Rings / Turbine Body / Adaptors / Trunnion
Specifications:
Types Available:
• Weld Neck Rings / Tower Flanges / Plates / Stem Housing / Ball / Maximum OD: 1800 mm
• Slip-On
Tyre Rings Bonnets / Seat Rings Maximum Weight: 4000 kg
• Blind
• Lap Joint Specifications:
Rolled rings are manufactured by hot forming
• Threaded Maximum OD: 3000 mm
through Ring Rolling Process in square and
• Socket Welding Maximum Height: 700 mm
profiled shapes such as:
• Reducing Flanges Maximum Weight: 4000 kg
Gear Rings
• Long Weld-Neck
Tyre Rings
• Orifice Flanges
Slewing Rings
• Spectacle Blinds
Turbine Rings
• Spacers
• Spades & Drip Rings
Specifications:
Maximum Outer Diameter (OD): 3600 mm
Maximum Height: 700 mm
Maximum Weight: 4000 kg

Available Shapes: Rectangular & Profiled

24 25
 Annual Report 2024 - 25
Company Overview

Our Presence
Paramount Speciality Forgings Limited has built a robust and far-reaching geographical footprint, serving a diverse
array of customers both within India and internationally. Domestically, we have established a strong presence across
key industrial states including Punjab, Haryana, Rajasthan, Gujarat, Madhya Pradesh, Maharashtra, Goa, Telangana,
Andhra Pradesh, Karnataka, Tamil Nadu, Assam, Bihar, Odisha, and West Bengal. This widespread network reflects
our capability to cater to the varied and evolving requirements of core sectors throughout the country.

Our reach extends beyond Indian borders, with an expanding global presence in prominent international markets.
Paramount exports its high-quality forged products to Canada, Oman, and Italy—underscoring our reputation as a
trusted partner for forging solutions worldwide. These exports mark our growing influence in international markets
and underscore our commitment to delivering world-class products that meet and exceed international standards.

By continually expanding our operational and commercial networks, Paramount Speciality Forgings Limited
demonstrates its capability and ambition to serve the needs of both established and emerging markets. Our strategic
geographical spread is a testament to our vision of supporting industrial growth and infrastructure development not
just in India, but across key global markets.

26 27
 Annual Report 2024 - 25
Company Overview

Business Strategies
Competitive Strengths Enhance Capacity with Infrastructure and
Automation
Continuous investment in augmenting manufacturing
Long-standing Client Relationships capacity, backed by upgraded infrastructure and
integration of automation, to drive productivity,
quality, and future-ready scalability.
Paramount has built enduring partnerships with
clients, reflecting a legacy of trust and service
excellence across diverse sectors.
Focused Quality Management and Process
Control
Consistent Capability-Building with Capital
Efficiency Rigorous emphasis on quality management systems
and process control, ensuring all products adhere to
A track record of consistently expanding operational the highest standards of reliability and international
capabilities and infrastructure while maintaining a compliance.
strong focus on capital efficiency to meet extensive
customer requirements. Experienced Leadership Backed by a Skilled Grow Existing Accounts and Acquire Clients
Team
A seasoned management team with deep domain Focusing on deepening relationships with current
knowledge, supported by a highly skilled and customers while proactively reaching out to new
dedicated workforce, ensures business stability and clients in different industry verticals, thereby
technical prowess. broadening the company’s revenue base.

Strong Branding, Promotional, and Digital Expand Geographic Presence

Initiatives
Strategic efforts in branding, marketing, and digital A deliberate approach to expanding presence in
initiatives have helped strengthen Paramount’s new geographical markets, both domestically and
market position and brand recognition. internationally, to tap into emerging opportunities
and mitigate market-specific risks.

The Paramount Approach

At Paramount Speciality Forgings Limited, our focus is unwavering: we
innovate boldly to stay ahead of industry shifts, forge strongly with world-class
processes and people, and deliver reliably for every client and partner. These
strengths and strategies together empower us to build a company that stands
at the forefront of the forging industry - today and into the future.

28 29
 Annual Report 2024 - 25
Company Overview

Key Strategy and Objectives

Process Optimization
Our objective is to enhance our market share by
increasing the volume of existing products and
clients, while also expanding into new industries,
product lines, and geographic regions.

Market Expansion
Focused marketing initiatives are being
implemented to target new industry segments
Capacity & Capability Enhancement and verticals. This approach supports our aim to
broaden our reach and establish Paramount as a
We are upgrading plant capacity and technological
leader in emerging market areas.
capabilities to support new product development
and meet growing customer demand. This focus
on infrastructure and process fortification helps
us deliver superior quality at greater scale.

Sustainability Initiatives
In line with our responsibility towards the
environment, we are implementing eco-friendly
Customer Acquisition & practices to minimize carbon footprint, energy
Strategic Partnerships and water consumption, and waste generation.
Sustainability is integrated as a core pillar across
Our efforts include onboarding clients from our business strategy.
diverse sectors, consistently building strong
and lasting partnerships, and fostering industry
collaborations. These relationships allow us to
serve a wider range of applications and customer
needs.

Operational Efficiency
Paramount strives to maximize plant utilization
and improve throughput to achieve superior
overall performance. These initiatives ensure that
we can meet evolving customer requirements
with speed, consistency, and reliability.

30 31
 Annual Report 2024 - 25 Statutory Reports

NOTICE OF ANNUAL GENERAL MEETING “RESOLVED THAT pursuant to the provisions of section 179 and 204 of the Companies Act, 2013, read with Rule 9 of
the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, and other applicable provisions,
if any, as well as relevant provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure
Requirements) Regulations, 2015 (including any amendments or re-enactments thereof currently in force), and based on
NOTICE IS HEREBY GIVEN THAT THE (2nd) ANNUAL GENERAL MEETING (“AGM”) OF THE MEMBERS OF PARAMOUNT the recommendation of the Audit Committee and approval of the Board of Directors, the consent of the shareholders be and
SPECIALITY FORGINGS LIMITED (“the Company”) WILL BE HELD ON THURSDAY, SEPTEMBER 25, 2025 AT 11:00 A.M. is hereby accorded for the appointment of M/s. Amit Dharmani & Associates, Practicing Company Secretaries and a peer-
THROUGH VIDEO CONFERENCING (“VC”) / OTHER AUDIO-VISUAL MEANS (“OAVM”) TO TRANSACT THE FOLLOWING reviewed firm, as Secretarial Auditors of the Company for a term of five consecutive financial years, from FY 2025–26 to FY
BUSINESSES: 2029–30, on such remuneration as may be mutually agreed upon by the Board of Directors and the Secretarial Auditors.

ORDINARY BUSINESS: RESOLVED FURTHER THAT the Board of Directors and/or be and is hereby authorized to take all necessary actions, execute
all required documents, and do all such acts, deeds, and things as may be deemed necessary or incidental to give effect to
1. Adoption of the Audited Standalone Financial Statements of the Company for the financial year ended 31st March, this resolution.”
2025
5. To approve continuation of Mr. Aliasgar Abdulla Bhagat (DIN: 00335869) as Chairman & Executive Director of the
To consider and if thought fit, to pass with or without modification, the following resolution as Ordinary Resolution. Company beyond the age of 70 years:

“RESOLVED THAT the audited standalone financial statements of the Company for the year ended 31st To consider and if thought fit to pass with or without modifications, the following resolution as a Special Resolution:
March, 2025 containing the Balance Sheet as at that date, the Statement of Profit & Loss and the Cash
Flow Statement for the year ended on that date together with the Notes and the Reports of Auditors and “RESOLVED THAT pursuant to the provisions of Sections 196, 197, 198 and other applicable provisions, if any, of
Board of Directors Report along with its annexures thereon be and are hereby approved and adopted.” the Companies Act, 2013 read with Schedule V and the applicable rules made thereunder (including any statutory
modification(s) or re-enactment(s) thereof for the time being in force), Regulation 17 and other applicable provisions
2. Mr. Aliasgar Abdulla Bhagat (DIN: 00335869), Chairman & Executive Director, liable to retire by rotation, and being of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,
eligible for reappointment offers himself for reappointment. and in terms of the Articles of Association of the Company, approval of the members be and is hereby accorded,
by way of a Special Resolution, for the continuation of Mr. Aliasgar Abdulla Bhagat (DIN: 00335869) as Chairman
To consider and if thought fit, to pass with or without modification, the following resolution as Ordinary Resolution. & Executive Director of the Company, notwithstanding that he has attained the age of 70 (seventy) years, on the
existing terms and conditions of his appointment and remuneration, as previously approved by the shareholders.
“RESOLVED THAT pursuant to the provisions of Section 152 and other applicable provisions of the Companies Act, 2013,
Mr. Aliasgar Abdulla Bhagat (DIN: 00335869), who is liable to retire by rotation and being eligible, has offered himself
RESOLVED FURTHER THAT the Board of Directors and/or the Company Secretary of the Company be and are hereby
for reappointment, be and is hereby reappointed as a Chairman & Executive Director, of the Company, liable to retire by
severally authorized to do all such acts, deeds, matters and things and to take all such steps as may be necessary, proper or
rotation.”
expedient to give effect to this resolution including filing of necessary forms with the Registrar of Companies and any other
SPECIAL BUSINESS: authority as may be required under applicable laws.”

3. Ratification of remuneration payable to M/s. Jitendrakumar & Associates, Cost Auditor of the Company for FY 2025 -26

To consider and if thought fit, to pass with or without modification, the following resolution as Ordinary Resolution.
For Paramount Speciality Forgings Limited
“RESOLVED THAT in accordance with the provisions of Section 148 and other applicable provisions, if any, of the Companies
Act, 2013, read with Rule 6(2) of the Companies (Cost Records and Audit) Rules, 2014 (including any statutory modifications
or re-enactments thereof, as may be in force), the remuneration not exceeding ₹1,05,000/- (Rupees One Lakh Five Thousand Sd/-
only) plus applicable GST and reimbursement of out-of-pocket expenses, if any, payable to M/s. Jitendrakumar & Associates,
Ankita Anil Patankar
Cost Accountants (Firm Registration No. 101561), as appointed by the Board of Directors on May 29, 2025, as Cost Auditors
for the financial year 2025–26, upon the recommendation of the Audit Committee, be and is hereby ratified by the members Company Secretary & Compliance Officer
of the Company. Membership No.: A57166

RESOLVED FURTHER THAT the Company Secretary and/or the Board of Directors be and are hereby authorized to take all
necessary steps, do all acts, deeds, and things as may be required to give effect to this resolution.” Place: Mumbai
Date: August 23, 2025
4. To appoint M/s. Amit Dharmani & Associates, Practicing Company Secretaries as Secretarial Auditors for a term of
5(five) consecutive years, and fix their remuneration in this regard

To consider and if thought fit, to pass with or without modification, the following resolution as Ordinary Resolution.

32 33
 Annual Report 2024 - 25 Statutory Reports

Notes websites of the Stock Exchanges i.e. National Stock Exchange of India Limited at www.nseindia.com and the AGM Notice is
also available on the website of NSDL (agency for providing the Remote e-Voting facility) i.e. www.evoting.nsdl.com.
1. Explanatory Statement pursuant to Section 102 of the Companies Act, 2013 (“the Act”) setting out material
facts concerning special businesses under Item Nos. 3 to 5 of the accompanying Notice, is annexed hereto. 9. SEBI has mandated the submission of Permanent Account Number (PAN), KYC details and nomination by physical shareholders
and linking PAN with Aadhaar vide its circular No. SEBI/ HO/MIRSD/MIRSD-PoD- 1/P/CIR/2023/37 dated 16th March,
2. In view of General Circular Nos. 14/2020, 17/2020, 20/2020, 02/2021, 20/2021, 21/2021, 02/2022 and 10/2022 dated 2023, and circular no. SEBI/HO/MIRSD/POD-1/P/ CIR/2023/181 dated 17th November, 2023. Therefore, shareholders are
8th April, 2020, 13th April, 2020, 5th May, 2020, 13th January, 2021, 8th December, 2021, 14th December, 2021, 5th May, 2022 requested to submit their PAN, KYC and nomination details to the Company’s RTA i.e. Purva Shargistry India Private Limited.
and 28th December, 2022, 25th September, 2023 respectively read with Circular No. 09/2024 dated 19th September 2024 Members holding shares in electronic form are requested to submit/ update their PAN to their Depository Participants. To
(“Collectively referred as MCA Circulars”), issued by the Ministry of Corporate Affairs (MCA) and Circular No. SEBI/HO/CFD/ mitigate unintended challenges on account of freezing of folios, SEBI vide the afore-mentioned circular has done away with
CMD1/CIR/P/2020/79 dated 12th May, 2020, SEBI/HO/CFD/CMD2/CIR/P/2021/11 dated 15th January, 2021, SEBI/HO/ the provision regarding freezing of folios not having PAN, KYC, and Nomination details.
CFD/CMD2/ CIR/P/2022/62 dated 13th May, 2022 SEBI/HO/DDHS/DDHS-RACPOD1/P/CIR/2023/001 dated 5th January,
2023, Circular No. SEBI/HO/DDHS/P/CIR/2023/0164 dated 6th October, 2023 read with Circular No. SEBI/HO/CFD/ CFD- 10. Members are requested to provide/update their name, postal address, email address, telephone/mobile numbers, PAN,
PoD-2/P/CIR/2024/133 dated 3rd October, 2024 (“Collectively referred as SEBI Circulars”) issued by the Securities and mandates, nominations, power of attorney, bank details such as, name of the bank and branch details, bank account number,
Exchange Board of India (SEBI), wherein the relaxation of holding AGM through VC has been extended till 30th September, MICR code, IFSC code, etc.
2025 (MCA Circulars and SEBI Circulars are hereinafter collectively referred to as “the Circulars”) and in compliance with i. For shares held in electronic form: to their Depository Participants
the provisions of the Act and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR ii. For shares held in physical form: to the Company’s RTA in prescribed Form ISR-1 and other forms pursuant to SEBI
Regulations”), the 2nd AGM of the Company is being conducted through VC/OAVM Facility, which does not require physical Master Circular No. SEBI/HO/MIRSD/SECFATF/P/ CIR/2023/169 dated 12th October, 2023.
presence of Members at a common venue. The deemed venue for the 2nd AGM shall be the Registered Office of the Company.
Since the AGM will be held through VC/OAVM Facility, the Route Map, proxy form and attendance slip are not annexed to 11. The Register of Directors and Key Managerial Personnel and their shareholding, maintained under Section 170 of the Act,
this Notice. and the Register of Contracts or Arrangements in which the Directors are interested, maintained under Section 189 of the
Act, will be available electronically for inspection by the Members during the 2nd AGM. All documents referred to in the
3. Pursuant to the Circular No. 14/2020 dated April 08, 2020, issued by the Ministry of Corporate Affairs, the facility to appoint Notice will also be available for electronic inspection without any fee by the Members during the AGM. Members seeking to
proxy to attend and cast vote for the members is not available for this AGM. However, the Body Corporates are entitled inspect such documents can send an e-mail to [email protected]
to appoint authorised representatives to attend the AGM through VC/OAVM and participate there at and cast their votes
through e-voting. 12. The Board of Directors (“the Board”) has appointed Mr. Dipesh Kamlesh Jain (FCS: 12117 & C.P. No. 17524), Proprietor of
M/s. Dipesh Jain & Co., Company Secretaries, as the Scrutinizer for overseeing the voting process at the 2nd AGM in a fair and
4. Please note that since the AGM is being held through VC/OAVM, physical attendance of Members has been dispensed with. transparent manner.
As a result, the appointment of proxies is not required and hence, the provisions of Section 105 of the Companies Act,
2013, regarding proxy appointment will not be applicable for this AGM. However, Institutional/Corporate Members are 13. The Scrutinizer shall upon conclusion of e-voting at the 2nd AGM shall prepare a scrutinizer’s report of the total votes cast in
requested to send a scanned copy of their Board Resolution or Authorization, allowing their representative to attend and favour or against, invalid votes, if any, and whether the resolution has been carried or not, and this report shall be submitted
vote at the AGM through VC/OAVM and via e-voting/remote e-voting. The said Resolution/Authorization should be emailed to the Chairperson or a person authorized by him within two working days from the conclusion of the AGM. The Chairperson
to the Scrutinizer at [email protected], with a copy sent to [email protected]. The presence of Members or the authorized person will then countersign and announce the voting results.
attending the AGM through VC/OAVM will be considered for determining the quorum under Section 103 of the Act.
14. The results declared along with the report of the Scrutinizer shall be placed on the website of the Company at www.
5. In accordance with the applicable circulars, the Annual Report for FY 2024-25, the Notice of paramountforge.com and on the website of NSDL at https://eservices.nsdl.com immediately after the declaration of Results
the 2nd AGM, and the e-voting instructions are being sent electronically to Members whose by the Chairperson or a person authorised by him. The results shall also be displayed on the notice board at the Company’s
email addresses are registered with the Company or their respective depository participants. registered office and simultaneously forwarded to the Stock Exchange, i.e. National Stock Exchange of India Limited.

6. Pursuant to the provisions of Section 108 of the Companies Act, 2013 read with Rule 20 of the Companies (Management 15. The details as required under sub-regulation (3) of Regulation 36 of the SEBI (Listing Obligations and Disclosure
and Administration) Rules, 2014 (as amended) the Secretarial Standard on General Meetings (SS-2) issued by the ICSI and Requirements) Regulations, 2015, and the Secretarial Standard on General Meetings (SS-2) issued by the ICSI, relating to
Regulation 44 of SEBI (Listing Obligations & Disclosure Requirements) Regulations 2015 (as amended), and the Circulars Directors seeking appointment or re-appointment at the 2nd AGM, are provided as an Annexure to the Notice. All requisite
issued by the Ministry of Corporate Affairs from time to time the Company is providing facility of remote e-Voting to its declarations from the concerned Directors have been duly received.
Members in respect of the business to be transacted at the AGM. For this purpose, the Company has entered into an agreement
with National Securities Depository Limited (NSDL) for facilitating voting through electronic means, as the authorized agency. 16. As an environmentally conscious initiative, to benefit the society at large, we request members to be
The facility of casting votes by a member using remote e-Voting system as well as e-voting on the date of the AGM will be part of the e-initiatives and register your e-mail address to receive all communication and documents
provided by NSDL. including Annual Report 2024-25 from time to time in electronic form to the e-mail address provided by
the members. Members may send such communication to their respective Depository Participants (DPs).
7. Detailed instructions for remote e-voting, including guidelines for Members who have not registered their email addresses,
are provided in the instructions for e-voting section which forms the part of this Notice. 17. Members holding shares are eligible to avail the nomination facility under Section 72 of the Companies Act, 2013, read with
Rule 19(1) of the Companies (Share Capital and Debentures) Rules, 2014. Those interested in opting for this facility may
8. In line with the Ministry of Corporate Affairs (MCA) Circular No. 17/2020 dated April 13, 2020, the Notice calling the AGM contact their respective DPs to register their nomination details.
has been uploaded on the website of the Company at www.paramountforge.com. The Notice can also be accessed from the

34 35
 Annual Report 2024 - 25 Statutory Reports

Type of shareholders Login Method

18. Members are requested to notify any changes related to their personal details such as name, address, email ID, phone/ Individual Shareholders 1. For OTP based login you can click on https://eservices.nsdl.com/SecureWeb/
mobile number, PAN, mandates, nomination, power of attorney, or bank details (including bank name, branch address, holding securities in evoting/evotinglogin.jsp. You will have to enter your 8-digit DP ID,8-digit Client Id, PAN
account number, MICR code, and IFSC code) to their respective DPs. demat mode with NSDL. No., Verification code and generate OTP. Enter the OTP received on registered email id/
mobile number and click on login. After successful authentication, you will be redirected
19. Members who wish to seek any information or clarification regarding the accounts are requested to submit their queries in to NSDL Depository site wherein you can see e-Voting page. Click on company name or
writing to the Company well in advance to enable the Management to respond appropriately at the AGM. e-Voting service provider i.e. NSDL and you will be redirected to e-Voting website
of NSDL for casting your vote during the remote e-Voting period or joining virtual meeting
20. Members wishing to speak or express their views during the AGM as a speaker may register by sending their request with & voting during the meeting.
details such as name, demat account/folio number, email ID, and mobile number to [email protected] at
least seven days prior to the AGM. Only those Members who have registered as speakers will be allowed to speak during the 2. Existing IDeAS user can visit the e-Services website of NSDL Viz. https://eservices.
Meeting. The Company reserves the right to limit the number of speakers and the duration of speaking time based on the nsdl.com either on a Personal Computer or on a mobile. On the e-Services home page
availability of time at the AGM. click on the “Beneficial Owner” icon under “Login” which is available under ‘IDeAS’
section, this will prompt you to enter your existing User ID and Password. After successful
21. E-Voting authentication, you will be able to see e-Voting services under Value added services. Click
on “Access to e-Voting” under e-Voting services and you will be able to see e-Voting
(i) Members who have already exercised their vote through remote e-voting before the AGM are welcome to attend the AGM page. Click on company name or e-Voting service provider i.e. NSDL and you
via VC/OAVM, but they will not be allowed to vote again during the meeting. will be re-directed to e-Voting website of NSDL for casting your vote during the remote
e-Voting period or joining virtual meeting & voting during the meeting.
(ii) The remote e-voting period begins on Monday, September 22, 2025 (09:00 A.M.) (IST) and ends on Wednesday, September
24, 2025 (05:00 P.M.) (IST). The remote e-voting module shall be disabled by NSDL for voting thereafter. The Members, 3. If you are not registered for IDeAS e-Services, option to register is available at https://
whose names appear in the Register of Members / Beneficial Owners as on the record date (cut-off date) i.e. Thursday, eservices.nsdl.com. Select “Register Online for IDeAS Portal” or click at
September 18, 2025, may cast their vote electronically. The voting right of shareholders shall be in proportion to their share https://eservices.nsdl.com/SecureWeb/IdeasDirectReg.jsp
in the paid-up equity share capital of the Company as on the cut-off date, being Thursday, September 18, 2025.
4. Visit the e-Voting website of NSDL. Open web browser by typing the following URL:
(iii) The instructions for members for remote e-voting and joining general meeting are as under: https://www.evoting.nsdl.com/ either on a Personal Computer or on a mobile. Once
the home page of e-Voting system is launched, click on the icon “Login” which is available
How do I vote electronically using NSDL e-Voting system? under ‘Shareholder/Member’ section. A new screen will open. You will have to enter your
User ID (i.e. your sixteen-digit demat account number hold with NSDL), Password/OTP
The way to vote electronically on NSDL e-Voting system consists of “Two Steps” which are mentioned below:
and a Verification Code as shown on the screen. After successful authentication, you will be
Step 1: Access to NSDL e-Voting system redirected to NSDL Depository site wherein you can see e-Voting page. Click on company
name or e-Voting service provider i.e. NSDL and you will be redirected to e-Voting
A) Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in demat website of NSDL for casting your vote during the remote e-Voting period or joining virtual
mode meeting & voting during the meeting.

In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual 5. Shareholders/Members can also download NSDL Mobile App “NSDL Speede” facility by
shareholders holding securities in demat mode are allowed to vote through their demat account maintained with scanning the QR code mentioned below for seamless voting experience.
Depositories and Depository Participants. Shareholders are advised to update their mobile number and email Id
in their demat accounts in order to access e-Voting facility.
Login method for Individual shareholders holding securities in demat mode is given below:

36 37
 Annual Report 2024 - 25 Statutory Reports

Individual Shareholders 1. Users who have opted for CDSL Easi / Easiest facility, can login through their existing user
holding securities in id and password. Option will be made available to reach e-Voting page without any further
demat mode with CDSL authentication. The users to login Easi /Easiest are requested to visit CDSL website www.
cdslindia.com and click on login icon & New System Myeasi Tab and then user your existing B) Login Method for e-Voting and joining virtual meeting for shareholders other than Individual shareholders holding
my easi username & password. securities in demat mode and shareholders holding securities in physical mode.
2. After successful login the Easi / Easiest user will be able to see the e-Voting option for
eligible companies where the evoting is in progress as per the information provided by How to Log-in to NSDL e-Voting website?
company. On clicking the evoting option, the user will be able to see e-Voting page of the
e-Voting service provider for casting your vote during the remote e-Voting period or joining
virtual meeting & voting during the meeting. Additionally, there is also links provided to 1. Visit the e-Voting website of NSDL. Open web browser by typing the following URL: https://www.evoting.nsdl.com/
access the system of all e-Voting Service Providers, so that the user can visit the e-Voting either on a Personal Computer or on a mobile.
service providers’ website directly.
3. If the user is not registered for Easi/Easiest, option to register is available at CDSL website 2. Once the home page of e-Voting system is launched, click on the icon “Login” which is available under ‘Shareholder/
www.cdslindia.com and click on login & New System Myeasi Tab and then click on Member’ section.
registration option.
4. Alternatively, the user can directly access e-Voting page by providing Demat Account 3. A new screen will open. You will have to enter your User ID, your Password/OTP and a Verification Code as shown on the
Number and PAN No. from a e-Voting link available on www.cdslindia.com home page. screen.
The system will authenticate the user by sending OTP on registered Mobile & Email as
recorded in the Demat Account. After successful authentication, user will be able to see Alternatively, if you are registered for NSDL eservices i.e. IDEAS, you can log-in at https://eservices.nsdl.com/ with your
the e-Voting option where the evoting is in progress and also able to directly access the existing IDEAS login. Once you log-in to NSDL eservices after using your log-in credentials, click on e-Voting and you can
system of all e-Voting Service Providers. proceed to Step 2 i.e. Cast your vote electronically.

4. Your User ID details are given below:

Individual Shareholders You can also login using the login credentials of your demat account through your Depository
(holding securities in Participant registered with NSDL/CDSL for e-Voting facility. upon logging in, you will be able to
demat mode) login see e-Voting option. Click on e-Voting option, you will be redirected to NSDL/CDSL Depository
through their depository site after successful authentication, wherein you can see e-Voting feature. Click on company Manner of holding shares i.e. Demat (NSDL
Your User ID is:
participants name or e-Voting service provider i.e. NSDL and you will be redirected to e-Voting website of or CDSL) or Physical
NSDL for casting your vote during the remote e-Voting period or joining virtual meeting &
voting during the meeting. 8 Character DP ID followed by 8 Digit Client ID
a) For Members who hold shares in demat
For example, if your DP ID is IN300*** and Client ID is 12****** then your
account with NSDL.
user ID is IN300***12******.
Important note: Members who are unable to retrieve User ID/ Password are advised to use Forget User ID and
Forget Password option available at abovementioned website.
16 Digit Beneficiary ID
b) For Members who hold shares in demat
Helpdesk for Individual Shareholders holding securities in demat mode for any technical issues related to login For example, if your Beneficiary ID is 12************** then your user ID
through Depository i.e. NSDL and CDSL. account with CDSL.
is 12**************

Login type Helpdesk details

Individual Shareholders holding securities Members facing any technical issue in login can contact NSDL helpdesk by EVEN Number followed by Folio Number registered with the company
c) For Members holding shares in Physical
in demat mode with NSDL sending a request at [email protected] or call at 022 - 4886 7000 For example, if folio number is 001*** and EVEN is 101456 then user ID is
Form.
101456001***

Individual Shareholders holding securities Members facing any technical issue in login can contact CDSL helpdesk by
in demat mode with CDSL sending a request at [email protected] or contact at toll free 5. Password details for shareholders other than Individual shareholders are given below:
no. 1800-21-09911
a) If you are already registered for e-Voting, then you can user your existing password to login and cast your vote.

38 39
 Annual Report 2024 - 25 Statutory Reports

b) If you are using NSDL e-Voting system for the first time, you will need to retrieve the ‘initial password’ which was General Guidelines for shareholders
communicated to you. Once you retrieve your ‘initial password’, you need to enter the ‘initial password’ and the system
will force you to change your password. 1. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) are required to send scanned copy (PDF/JPG
Format) of the relevant Board Resolution/ Authority letter etc. with attested specimen signature of the duly authorized
c) How to retrieve your ‘initial password’? signatory(ies) who are authorized to vote, to the Scrutinizer by e-mail to [email protected] with a copy marked to
[email protected]. Institutional shareholders (i.e. other than individuals, HUF, NRI etc.) can also upload their Board
(i) If your email ID is registered in your demat account or with the company, your ‘initial password’ is communicated Resolution / Power of Attorney / Authority Letter etc. by clicking on “Upload Board Resolution / Authority Letter”
to you on your email ID. Trace the email sent to you from NSDL from your mailbox. Open the email and open the displayed under “e-Voting” tab in their login.
attachment i.e. a .pdf file. Open the .pdf file. The password to open the .pdf file is your 8-digit client ID for NSDL
account, last 8 digits of client ID for CDSL account or folio number for shares held in physical form. The .pdf file 2. It is strongly recommended not to share your password with any other person and take utmost care to keep your
contains your ‘User ID’ and your ‘initial password’. password confidential. Login to the e-voting website will be disabled upon five unsuccessful attempts to key in the
correct password. In such an event, you will need to go through the “Forgot User Details/Password?” or “Physical User
(ii) If your email ID is not registered, please follow steps mentioned below in process for those shareholders whose Reset Password?” option available on www.evoting.nsdl.com to reset the password.
email ids are not registered.
3. In case of any queries, you may refer the Frequently Asked Questions (FAQs) for Shareholders and e-voting user manual
for Shareholders available at the download section of www.evoting.nsdl.com or call on.: 022 - 4886 7000 or send a
6. If you are unable to retrieve or have not received the “Initial password” or have forgotten your password:
request to Mr. Suketh Shetty at [email protected]
a) Click on “Forgot User Details/Password?”(If you are holding shares in your demat account with NSDL or CDSL)
option available on www.evoting.nsdl.com.
Process for those shareholders whose email ids are not registered with the depositories for procuring user id and
b) Physical User Reset Password?” (If you are holding shares in physical mode) option available on www.evoting. password and registration of e mail ids for e-voting for the resolutions set out in this notice:
nsdl.com.
1. In case shares are held in physical mode please provide Folio No., Name of shareholder, scanned copy of the share
c) If you are still unable to get the password by aforesaid two options, you can send a request at [email protected] certificate (front and back), PAN (self-attested scanned copy of PAN card), AADHAR (self-attested scanned copy of
mentioning your demat account number/folio number, your PAN, your name and your registered address etc. Aadhar Card) by email to [email protected].
2. In case shares are held in demat mode, please provide DPID-CLID (16-digit DPID + CLID or 16-digit beneficiary
d) Members can also use the OTP (One Time Password) based login for casting the votes on the e-Voting system of NSDL. ID), Name, client master or copy of Consolidated Account statement, PAN (self-attested scanned copy of PAN card),
AADHAR (self-attested scanned copy of Aadhar Card) to [email protected]. If you are an Individual
shareholder holding securities in demat mode, you are requested to refer to the login method explained at step 1 (A)
7. After entering your password, tick on Agree to “Terms and Conditions” by selecting on the check box. i.e. Login method for e-Voting and joining virtual meeting for Individual shareholders holding securities in
8. Now, you will have to click on “Login” button. demat mode.
9. After you click on the “Login” button, Home page of e-Voting will open. 3. Alternatively, shareholder/members may send a request to [email protected] for procuring user id and password
for e-voting by providing above mentioned documents.
Step 2: Cast your vote electronically and join General Meeting on NSDL e-Voting system. 4. In terms of SEBI circular dated December 9, 2020 on e-Voting facility provided by Listed Companies, Individual
shareholders holding securities in demat mode are allowed to vote through their demat account maintained
How to cast your vote electronically and join General Meeting on NSDL e-Voting system? with Depositories and Depository Participants. Shareholders are required to update their mobile number and
email ID correctly in their demat account in order to access e-Voting facility.
1. After successful login at Step 1, you will be able to see all the companies “EVEN” in which you are holding shares
and whose voting cycle and General Meeting is in active status. THE INSTRUCTIONS FOR MEMBERS FOR e-VOTING ON THE DAY OF THE EGM/AGM ARE AS UNDER:

2. Select “EVEN” of company for which you wish to cast your vote during the remote e-Voting period and casting your 1. The procedure for e-Voting on the day of the AGM is same as the instructions mentioned above for remote e-voting.
vote during the General Meeting. For joining virtual meeting, you need to click on “VC/OAVM” link placed under 2. Only those Members/ shareholders, who will be present in the AGM through VC/OAVM facility and have not casted
“Join Meeting”. their vote on the Resolutions through remote e-Voting and are otherwise not barred from doing so, shall be eligible to
vote through e-Voting system in the AGM.
3. Now you are ready for e-Voting as the Voting page opens. 3. Members who have voted through Remote e-Voting will be eligible to attend the AGM. However, they will not be eligible
to vote at the AGM.
4. Cast your vote by selecting appropriate options i.e. assent or dissent, verify/modify the number of shares for
4. The details of the person who may be contacted for any grievances connected with the facility for e-Voting on the day
which you wish to cast your vote and click on “Submit” and also “Confirm” when prompted.
of the AGM shall be the same person mentioned for Remote e-voting.
5. Upon confirmation, the message “Vote cast successfully” will be displayed.

6. You can also take the printout of the votes cast by you by clicking on the print option on the confirmation page.

7. Once you confirm your vote on the resolution, you will not be allowed to modify your vote.

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 Annual Report 2024 - 25 Statutory Reports

INSTRUCTIONS FOR MEMBERS FOR ATTENDING THE EGM/AGM THROUGH VC/OAVM ARE AS UNDER: Explanatory Statement
1. Member will be provided with a facility to attend the AGM through VC/OAVM through the NSDL e-Voting system. (Pursuant to Section 102 of the Companies Act, 2013)
Members may access by following the steps mentioned above for Access to NSDL e-Voting system. After successful
login, you can see link of “VC/OAVM” placed under “Join meeting” menu against company name. You are requested Item No. 2:
to click on VC/OAVM link placed under Join Meeting menu. The link for VC/OAVM will be available in Shareholder/
Member login where the EVEN of Company will be displayed. Please note that the members who do not have the User Details of Directors seeking appointment/ re-appointment at the AGM
ID and Password for e-Voting or have forgotten the User ID and Password may retrieve the same by following the
remote e-Voting instructions mentioned in the notice to avoid last minute rush. In accordance with the provisions of Section 152 of the Companies Act, 2013, Regulation 36(3) of the SEBI (Listing
2. Members are encouraged to join the Meeting through Laptops for better experience. Obligations and Disclosure Requirements) Regulations, 2015, and Secretarial Standard on General Meetings (SS-2) issued
3. Further Members will be required to allow Camera and use Internet with a good speed to avoid any disturbance during by the Institute of Company Secretaries of India, the brief profile and other details of the Director seeking re-appointment
the meeting. at the ensuing Annual General Meeting are as under:
4. Please note that Participants Connecting from Mobile Devices or Tablets or through Laptop connecting via Mobile
Hotspot may experience Audio/Video loss due to Fluctuation in their respective network. It is therefore recommended Except Mr. Aliasgar Abdulla Bhagat, the appointee, and Mr. Abdulla Aliasgar Bhagat (his son and Promoter-Shareholder), none of
to use Stable Wi-Fi or LAN Connection to mitigate any kind of aforesaid glitches. the Directors, Key Managerial Personnel or their relatives are concerned or interested, financially or otherwise, in the resolution.

22. Correspondence Name of the Director Aliasgar Abdulla Bhagat

DIN 00335869
Members are requested to address all communications regarding their shareholding directly to the Company at compliance@
paramountforge.org, quoting their folio number or DP ID – client ID, as applicable Nationality Indian
Date of Birth & Age (in years) 7th September, 1954 (70 years)
23. No amount was required to be transferred to Investor Education and Protection Fund (“IEPF”) as there is no amount is due
for more than seven years. Date of first appointment on Board 05/05/2023
Qualification Secondary School Certificate (“SSC”)
24. Information for Non-Resident Indian Shareholders Brief Profile, Experience and Mr. Aliasgar Abdulla Bhagat serves as the Chairman and Executive Director of
Expertise in specific functional Paramount Speciality Forgings Limited. He brings with him over five decades
Non-resident Indian shareholders are requested to immediately inform the Company or its Registrar and Transfer Agent, if
areas of rich experience in the forging and flange manufacturing industry, and has
shares are held in physical mode or to their DP, if the holding is in electronic mode, about any change in residential status
been instrumental in shaping the Company’s vision and growth trajectory.
upon their return to India for permanent settlement. They are requested to provide details of their NRE bank account in
An accomplished entrepreneur and industry veteran, Mr. Bhagat completed his
India, if not already shared.
Secondary School Certificate (SSC) and has since dedicated his career to the
advancement of precision forging technologies. His leadership is marked by a
hands-on approach in strategic planning, client relationship management, and long-
term business development, contributing significantly to the Company’s reputation
in both domestic and international markets.

He is a founder and promoter of the Company and played a pivotal role in its
transformation from the erstwhile partnership firm “M/s. Paramount Forge” to
Paramount Speciality Forgings LLP in 2019, and subsequently to the present
corporate structure.

Mr. Bhagat continues to provide visionary leadership to the Board and Management
Team, guiding Paramount Speciality Forgings Limited in its pursuit of sustainable
growth, technological excellence, and sectoral diversification.
Remuneration sought to be paid Rs. 21,00,000/-
Terms and Conditions of Aliasgar Abdulla Bhagat was appointed as Chairman & Executive Director of the
reappointment(s) Company liable to retire by rotation and eligible for reappointment
Remuneration last drawn from the Rs. 21,00,000/-
Company
Shareholding in the Company (as 16,22,784 Equity shares of Rs. 10 each
on the date of AGM Notice)

42 43
 Annual Report 2024 - 25 Statutory Reports

Relationship with other Directors, Not related to any Director or KMP of the Company except Mr. Abdulla Aliasgar Peer Review Certificate. They have consented to act as Secretarial Auditors and confirmed that their appointment, if made, will
Managers and other Key Managerial Bhagat, who is the son of Mr. Aliasgar Abdulla Bhagat and a Promoter-Shareholder be within the statutory limits prescribed under applicable laws.
Personnel(s) of the Company of the Company
The Board recommends the Ordinary Resolution under Item No. 4 of the Notice for approval by the members. None of the
Number of Board meetings 6 Directors, Key Managerial Personnel, or their relatives have any financial or other interest in the proposed resolution, except to
attended during the financial year the extent of their shareholding, if any, in the Company.
2024-25
Item No. 5:
List of Directorships held in other Nil
companies, as on date of notice Mr. Aliasgar Abdulla Bhagat (DIN: 00335869) was appointed as the Chairman and Executive Director of the Company with effect
Membership/ Chairmanship of Nil from May 5, 2023, pursuant to the conversion of Paramount Speciality Forgings LLP into Paramount Speciality Forgings Limited
Committees of Board of Directors and in accordance with the applicable provisions of the Companies Act, 2013.
of other companies, as on date of
notice In terms of Section 196(3)(a) of the Companies Act, 2013, no company shall continue the employment of a person as Managing
Director, Whole-Time Director, or Manager who has attained the age of 70 years, unless approved by a special resolution passed
Occupation Business by the shareholders.
Item No. 3: Mr. Bhagat has attained the age of 70 years. In view of his extensive experience of over 50 years, proven leadership, and in-depth
understanding of the forging industry, the Board believes that his continued association as Chairman and Executive Director
In accordance with Section 148 of the Companies Act, 2013, and the Companies (Audit and Auditors) Rules, 2014, as amended would be immensely beneficial to the Company. His strategic insight and domain knowledge are particularly valuable in a
from time to time, the Company is required to have its cost records audited by a Cost Accountant. Based on the recommendation specialized sector where such experience is scarce.
of the Audit Committee, the Board of Directors, at its meeting held on 29th May, 2025, approved the appointment of M/s.
Jitendrakumar & Associates, Cost Accountants (Firm Registration No. 101561), as the Cost Auditors of the Company. They will Accordingly, based on the recommendation of the Nomination and Remuneration Committee, the Board of Directors at its
conduct the audit of the Company’s cost records related to the products specified under the Companies (Cost Records and Audit) meeting held on August 23, 2025 has approved the proposal for continuation of Mr. Aliasgar Abdulla Bhagat as Chairman and
Rules, 2014, for the financial year 2025-26. The proposed remuneration for the audit shall not exceed ₹1,05,000 (Rupees One Executive Director beyond the age of 70 years, subject to the approval of the members by way of special resolution. All other
Lakh Five Thousand only), plus GST and reimbursement of out-of-pocket expenses, if any. terms and conditions of his appointment shall remain unchanged.

Pursuant to Section 148 of the Act, read with Rule 14 of the Companies (Audit and Auditors) Rules, 2014, as amended, the The Board of Directors recommends the resolution set out in Item No. 5 of the accompanying Notice for the approval of members
approval of the members is being sought for the remuneration payable to the Cost Auditors by way of an Ordinary Resolution, as as a Special Resolution.
detailed in Item No. 3 of the Notice.
None of the Directors, Key Managerial Personnel of the Company, or their relatives is concerned or interested, financially or
M/s. Jitendrakumar & Associates, Cost Accountants, have submitted a certificate confirming their eligibility for appointment otherwise, in the resolution, except Mr. Aliasgar Abdulla Bhagat, being the appointee and a Promoter and Shareholder of the
as Cost Auditors. They bring substantial experience in cost audits and have previously conducted audits of the Company’s cost Company, and his son, Mr. Abdulla Aliasgar Bhagat, who is also a Promoter and Shareholder.
records in compliance with the Act.

The Board recommends the Ordinary Resolution under Item No. 3 of the Notice for approval by the members. None of the
Directors, Key Managerial Personnel, or their relatives have any financial or other interest in the resolution.

Item No. 4:

In accordance with Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI
LODR Regulations”) as per SEBI Notification, and pursuant to Section 204 of the Companies Act, 2013 (“the Act”) read with Rule
9 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014, the Audit Committee and the Board
of Directors, at their meetings held on 29th May, 2025, approved and recommended the appointment of M/s. Amit Dharmani &
Associates, a Peer Reviewed Firm of Practicing Company Secretaries, as Secretarial Auditors of the Company.

They are proposed to be appointed for a term of up to five (5) consecutive years, commencing from the conclusion of this Annual
General Meeting (AGM) and continuing until the conclusion of AGM of the Company to be held in the year 2030. The proposed
remuneration for conducting the secretarial audit for the financial year 2025–26 is Rs. 40,000 (Rupees Forty Thousand only),
plus applicable taxes and reimbursement of out-of-pocket expenses, if any.

M/s. Amit Dharmani & Associates meet the eligibility and qualification requirements under the Companies Act, 2013 and the
SEBI LODR Regulations, including Regulation 24A(1A). The firm has over 7 years of professional experience and holds a valid

44 45
 Annual Report 2024 - 25 Statutory Reports

Directors’ Report and retained a stable cost structure with no exceptional items affecting the financials.

2. DETAILS OF SUBSIDIARIES/JOINT VENTURES/ ASSOCIATES COMPANIES

Your Company does not have any subsidiary, associate, or joint venture, therefore the statement containing the salient features of the financial
To
statement of subsidiaries, associates or joint ventures under the first proviso to sub-section (3) of section 129 of the Companies Act, 2013 in
Form AOC-1 is not applicable.
The Members
3. TRANSFER TO RESERVES
The Board of Directors of your Company takes pleasure in presenting the 2nd Annual Report for the financial year ended March 31, 2025,
together with the audited standalone financial statements, prepared in accordance with the applicable provisions of the Companies Act, 2013,
Pursuant to the provisions of Section 134(3)(j) of the Companies Act, 2013, the Board of Directors confirms that no amount has been transferred
the rules made thereunder.
to the General Reserves of the Company during the financial year ended March 31, 2025. The entire net profit earned for the year has been
retained in the Profit and Loss Account, to be utilized for strengthening the operational and financial position of the Company.
This Report also includes the disclosures and information required to be provided in accordance with the provisions of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, to the extent applicable to companies listed on the SME Platform of NSE.
Further, during the year under review, there was no unpaid or unclaimed dividend required to be transferred to the Investor Education and
Protection Fund (IEPF) in accordance with Sections 124 and 125 of the Companies Act, 2013, read with applicable rules framed thereunder.
1. FINANCIAL SUMMARY AND PERFORMANCE HIGHLIGHTS
4. DIVIDEND
In accordance with the provisions of Section 134 of the Companies Act, 2013 and Regulation 34 read with Schedule V of the SEBI (Listing
Obligations and Disclosure Requirements) Regulations, 2015, the financial performance of the Company for the financial year ended March
In line with the Company’s strategy to conserve resources and strengthen its financial position, the Board of Directors has not recommended
31, 2025, along with comparative figures for the previous year, is as under:
any dividend for the financial year ended March 31, 2025. The decision has been taken with a view to plough back the profits for future growth
and expansion initiatives of the Company.
(₹ in Lakh)
Particulars FY 2024–25 FY 2023–24 The Company is also adopted Dividend Distribution Policy and the same is placed on the website of the Company at https://paramountforge.
Revenue from Operations 10,993.26 10,280.00 com/pdf/PoliciesAdopted/Dividend-Distribution-Policy_PSFL.pdf
Other Income 96.84 71.74
Total Income 11,090.10 10,351.75 5. SHARE CAPITAL
Operating Expenditure 10,155.55 8,990.72
Depreciation and Amortisation Expense 142.61 415.35 A. Authorised Share Capital
Total Expenses 10,298.16 9,406.07
Profit before Finance Costs, Exceptional Item, and Tax 791.94 945.68 During the financial year under review, there was no alteration in the Authorised Share Capital of the Company. As on March 31, 2025, the
Authorised Share Capital of the Company stood at:
Finance Costs 204.94 189.78
Profit before Exceptional Item and Tax 587.00 755.90 ₹ 20,00,00,000 (Rupees Twenty Crores only) comprising 2,00,00,000 (Two Crore) Equity Shares of face value ₹10/- (Rupees
Exceptional Items – – Ten) each.
Profit Before Tax 587.00 755.90
Tax Expenses: B. Issued, Subscribed & Paid-up Share Capital
a. Current Tax 169.86 298.65
b. Adjustment of Tax relating to earlier years (32.99) – During the financial year under review, the Company successfully completed its Initial Public Offering (IPO) under the SME Platform of NSE.
c. Deferred Tax (Charge)/Credit 3.56 (83.23) Pursuant to the public issue, the Company issued and allotted 48,02,000 (Forty-Eight Lakh Two Thousand) equity shares of face value ₹10/-
Total Tax Expense 140.43 215.42 each, aggregating to ₹4,80,20,000 (Rupees Four Crore Eighty Lakh Twenty Thousand only).
Profit for the Year 446.57 540.48
Equity Shares Capital
During the financial year under review, the Company reported Particulars
At the beginning of the year *Increase/Decrease during the year At the end of year
A. Revenue from Operations of ₹10,993.26 lakhs, reflecting a 6.94% increase over the previous year (₹10,280.00 lakh). The growth Paid up Share Capital 14,88,00,000 4,08,20,000 19,68,20,000
in revenue was primarily driven by a strong order book in the industrial and oil & gas segments, combined with operational capacity
*The details of the paid-up share capital before and after the IPO are as under:
utilization from both the Kamothe and Khalapur manufacturing units.
B. Other Income stood at ₹96.84 lakh, which includes income from interest on IPO proceeds and others, foreign exchange gain, scrap
sales, and miscellaneous non-operational receipts. Particulars No. of Equity Shares Amount (₹)
C. Total expenditure increased to ₹10,298.16 lakhs in FY 2024–25 as compared to ₹9,406.07 lakhs in FY 2023–24, mainly on account Pre-IPO 1,48,80,000 14,88,00,000
of higher raw material and utility costs driven by inflationary pressures, as well as increased manpower and production-related Post-IPO 1,96,82,000 19,68,20,000
overheads to meet expanded operations.
D. Depreciation and amortisation expense reduced significantly from ₹415.35 lakh in FY 2023–24 to ₹142.61 lakh in FY 2024–25 Accordingly, as on March 31, 2025, the Issued, Subscribed and Paid-up Share Capital of the Company stood at ₹19,68,20,000 (Rupees Nineteen
due to the full depreciation of certain fixed assets in earlier years, coupled with no major capitalisation during the year. It is because Crore Sixty-Eight Lakh Twenty Thousand only) divided into 1,96,82,000 (One Crore Ninety-Six Lakh Eighty-Two Thousand) equity shares of
of change in methodology from WDV to SLM. face value ₹10/- each.

Despite a marginal decline in profitability, the Company continued to demonstrate operational resilience, maintained a healthy order pipeline, Further, during the financial year under review:

46 47
 Annual Report 2024 - 25 Statutory Reports

i. The Company has not issued any equity shares with differential rights as to dividend, voting or otherwise. iv. Balance amount – maintained in HDFC Bank, pending deployment as per the stated objects.

ii. The Company has not issued any sweat equity shares to its directors or employees. The Board and Audit Committee shall continue to monitor the utilisation and deployment of the IPO proceeds and ensure that the funds are
used only for the purposes stated in the offer document.
iii. The Company has not issued any securities on a rights basis.
6. DIRECTORS AND KEY MANAGERIAL PERSONNEL (“KMP”)
iv. The Company does not have any employee stock option scheme (ESOP) or any scheme for purchase of its shares by employees or by A. Directors
trustees for the benefit of employees under any plan.
The Company is committed to ensuring a balanced and effective Board structure with an appropriate mix of Executive, Non-Executive, and
The capital structure of the Company remains compliant with the applicable provisions of the Companies Act, 2013, the rules made thereunder, Independent Directors, aligned with the principles of sound corporate governance and the provisions of the Companies Act, 2013 and SEBI
and the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, as amended. (Listing Obligations and Disclosure Requirements) Regulations, 2015.

C. Conversion of status from Unlisted to Listed, Initial Public Offering and Listing on NSE EMERGE i. Board Composition as on March 31, 2025

During the period under review, the status of your Company was converted from ‘Unlisted’ to ‘Listed’ as Company got listed on SME Emerge As on the close of the financial year, the Board of Directors of Paramount Speciality Forgings Limited comprised six Directors, classified as
Platform of National Stock Exchange w.e.f. 25th September, 2024. Paramount Speciality Forgings Limited successfully completed its Initial under:
Public Offering (IPO) — a significant milestone in the Company’s growth trajectory. The IPO was conducted as a 100% Book Built Issue in
accordance with Chapter IX of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, applicable to Small and Medium
Category Number of Directors
Enterprises (SMEs).
Executive Director(s) 3
IPO Structure and Components: Non-Executive Director(s) 3
a.— of which, Independent 3
Particulars Details b.— of which, Women Independent Director 1
Type of Issue 100% Book Built Issue under SME Platform (NSE EMERGE)
Listing Date September 25, 2024 • The composition of the Board and its Committees is in conformity with the statutory requirements applicable to SME-listed compa-
Issue Price ₹59 per Equity Share (Face Value ₹10 + Premium ₹49) nies.
Total Issue Size 54,82,000 Equity Shares aggregating to ₹3,234.38 lakhs • The detailed profiles, committee memberships, tenure, and areas of expertise of each Director are disclosed on the Company’s
Fresh Issue 48,02,000 Equity Shares aggregating to ₹2,833.18 lakhs official website at https://paramountforge.com/boardofdirectors.html
ii. Changes During the Year
Offer for Sale (OFS) 6,80,000 Equity Shares aggregating to ₹401.20 lakhs (offered by Promoter Selling Shareholders)
Stock Exchange NSE EMERGE Platform During the financial year under review, there were no appointments, resignations, or cessations of any Director or Key Managerial Personnel.
D. Utilisation of Proceeds of Initial Public Offering (IPO)
iii. Director Qualification and Compliance
In accordance with Regulation 32 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, it is hereby con-
• None of the Directors are disqualified under Section 164(1) or 164(2) of the Companies Act, 2013.
firmed that there was no deviation or variation in the utilisation of proceeds from the Initial Public Offering (IPO) of the Company
• Further, no Director is debarred or disqualified from being appointed or continuing as a director by the Securities and Exchange
during the financial year ended March 31, 2025, as compared to the objects stated in the offer document.
Board of India (SEBI), Ministry of Corporate Affairs (MCA), or any other regulatory/statutory authority.
Statement of IPO Proceeds and Utilisation (₹ in Lakhs) • A certificate to this effect, issued by a Practising Company Secretary, has been obtained and is annexed to this Annual Report as re-
quired under Regulation 34(3) and Schedule V, Part C, Clause 10(i) of the SEBI LODR Regulations.
Particulars Amount Disclosed Amount Unutilised
Sr. No. The Board has reviewed and confirmed that all Directors possess the necessary skills, qualifications, financial and operational expertise, and
(Objects as per Offer Document) in Offer Document Utilised Amount
professional experience for effective governance of the Company. Their integrity, commitment, and contribution to strategic decision-making
a. Capital expenditure towards construction of factory shed are in the best interest of the stakeholders.
1. and; 2,381.28 458.31 1,922.97
b. Purchase of machinery and equipment at Khalapur Plant iv. Director Retiring by Rotation
2. General Corporate Purposes 72.38 33.57 38.81
3. Offer-related expenses 379.52 377.71 1.81 Pursuant to the provisions of Section 152(6) of the Companies Act, 2013 and the applicable provisions of the Articles of Association of the
Total 2,833.18 869.59 1,963.59 Company, Mr. Aliasgar Abdulla Bhagat (DIN: 00335869), Executive Director, is liable to retire by rotation at the ensuing Annual General Meeting
(AGM) and being eligible, has offered himself for re-appointment.
Status of Unutilised Proceeds
The brief profile and other requisite disclosures pursuant to Secretarial Standard-2 (SS-2) and the Companies Act, 2013, are provided in the
As certified by the Statutory Auditors, M/s. Kalyaniwalla & Mistry LLP, Chartered Accountants, the unutilised amount of ₹1,963.59 lakhs has Notice convening the AGM.
been deployed as follows as of March 31, 2025:
Further, during the financial year under review, no changes occurred in the composition of the Board of Directors of the Company.
i. ₹1,850.00 lakhs – invested in Fixed Deposits;
B. Key Managerial Personnel
ii. ₹71.57 lakhs – paid towards taxes;
In accordance with the provisions of Sections 2(51) and 203 of the Companies Act, 2013 read with the Companies (Appointment and Remu-
iii. ₹1.53 lakhs – lying in the Public Issue Account maintained with Axis Bank; neration of Managerial Personnel) Rules, 2014, the following individuals were designated as Key Managerial Personnel (KMP) of the Company

48 49
 Annual Report 2024 - 25 Statutory Reports

as on March 31, 2025: i. Executive Directors are paid a fixed remuneration along with performance-linked incentives and admissible perquisites, if any, as
approved by the Board and shareholders, subject to regulatory limits.
Sr. No. Name Designation Date of Appointment
1 Mr. Aliasgar Roshan Hararwala Managing Director May 05, 2023 ii. Non-Executive Directors, including Independent Directors, are entitled to receive sitting fees and commission, if any, in accordance
2 Ms. Farkhanda Abdul Razak Pagarkar Chief Financial Officer November 11, 2023 with the provisions of the Act and within the limits approved by shareholders.
3 Ms. Ankita Anil Patankar Company Secretary & Compliance Officer November 11, 2023
iii. At present, the Company does not have any employee stock option scheme (ESOP) or other equity-linked incentive plans.
All the above KMPs were duly appointed and are in office as of the end of the financial year. The Company is in compliance with the statutory
requirement of having the necessary KMPs in place under the applicable legal framework. The policy also establishes a structured mechanism for annual performance evaluation of the Board, its Committees, individual Directors,
KMPs, and Senior Management. The remuneration paid during the year under review is in compliance with this policy.
C. Declaration by Independent Directors
The detailed Nomination and Remuneration Policy of the Company is available on the website at https://paramountforge.com/pdf/
Pursuant to the provisions of Section 149(7) of the Companies Act, 2013 (“the Act”) and Regulations 16(1)(b) and 25(8) of the SEBI (Listing PoliciesAdopted/Nomination-and-Remmuneration-Policy_PSFL.pdf
Obligations and Disclosure Requirements) Regulations, 2015 (“Listing Regulations”), all Independent Directors of the Company have submitted
declarations confirming that:
E. Number of Meetings of the Board and Attendance
i. They meet the criteria of independence as prescribed under Section 149(6) of the Act and Regulation 16(1)(b) of the Listing Regul
ations; The Board of Directors of the Company meets at regular intervals to deliberate on key business strategies, policy matters, financial performance,
and governance issues. During the Financial Year 2024–25, the Board met seven (7) times in accordance with the provisions of the Companies
ii. There has been no change in their circumstances which could affect their status as Independent Directors; and Act, 2013 and applicable Secretarial Standards. The time gap between any two consecutive meetings did not exceed the statutory limit of 120
days. In addition to in-person meetings, certain matters of urgent nature were transacted by way of circular resolutions.
iii. They possess integrity, expertise, and experience necessary for acting as Independent Directors on the Board.
The details of meetings held and attendance of Directors at the Board and Committee meetings are as follows:
The Board of Directors, after undertaking due assessment, is of the opinion that all Independent Directors of the Company continue to fulfill
the conditions specified for independence and are independent of the management. Type of Meeting
Board Meeting ACM NRC SRC CSR
Further, all Independent Directors have: (7) (4) (1) (1) (1)
May 31, 2024 May 31, 2024 February 20, 2025 February 10, 2025 February 10, 2025
i. Complied with the provisions of the Code for Independent Directors as prescribed under Schedule IV of the Companies Act, 2013;
August 14, 2024 August 14, 2024
ii. Affirmed compliance with the Code of Conduct for Directors and Senior Management Personnel of the Company, as adopted pursuant September 13, 2024 November 14, 2024
to the Listing Regulations; September 23, 2024 February 18, 2025
September 23, 2024
iii. Confirmed compliance with the Code of Conduct under the SEBI (Prohibition of Insider Trading) Regulations, 2015. November 14, 2024
February 18, 2025
During the year under review, the Non-Executive Directors, including Independent Directors, did not have any pecuniary relationship or trans-
actions with the Company other than: The details of Directors’ attendance are as mentioned below:

i. Receipt of sitting fees for attending Board and Committee meetings;

Board Meetings Committee Meetings
ii. Reimbursement of expenses incurred in connection with the performance of their duties, if any; and Number of Meetings Number of Meetings
Name of the Director Number of Meetings Number of Meet-
which director which director was enti-
attended ings attended
iii. Commission, if any, in accordance with the provisions approved by the shareholders and the Board. was entitled to attend tled to attend
Aliasgar Abdulla Bhagat 7 6 2 2
D. Company’s Policy on Appointment and Remuneration of Directors, Key Managerial Personnel, Senior Management and Oth- Aliasgar Roshan Hararwala 7 7 6 6
er Employees Mohammed Salim Hararwala 7 7 0 0
Kurian Pallathuseril Chandy 7 7 5 5
The Company has adopted a comprehensive Nomination and Remuneration Policy in accordance with the provisions of Section 178 of the
Apurva Pradeep Joshi 7 7 5 5
Companies Act, 2013 and Regulation 19 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. This policy provides
Nimesh Mukerji 7 7 3 3
a framework for the appointment, evaluation, and remuneration of Directors, Key Managerial Personnel (KMP), Senior Management, and other
employees of the Company. F. Committees of the Board

The policy lays down well-defined criteria for identifying individuals eligible for appointment to the Board and Senior Management positions, In accordance with the provisions of the Companies Act, 2013, the relevant rules made thereunder, and to the extent applicable, the SEBI
taking into account factors such as qualifications, professional experience, integrity, and alignment with the Company’s values, vision, and (Listing Obligations and Disclosure Requirements) Regulations, 2015 (“SEBI LODR”), the Board of Directors of the Company has constituted
strategic objectives. It aims to ensure that the remuneration structure is fair, performance-oriented, competitive, and in line with industry the following Committees to facilitate focused oversight on specific areas and to ensure effective governance practices:
standards, while also promoting long-term shareholder value.
i. Audit Committee
In terms of remuneration structure:

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ii. Nomination and Remuneration Committee and participation levels of Directors, and the leadership of the Chairperson.

iii. Stakeholders Relationship Committee A separate meeting of Independent Directors was also held, wherein the performance of the Non-Independent Directors and the Board as a
whole, including that of the Chairperson, was reviewed. Further, the performance of individual Directors was evaluated by the Board and the
iv. Corporate Social Responsibility (CSR) Committee Nomination and Remuneration Committee, based on their preparedness, contribution to Board deliberations, and value addition to governance
and strategic matters.
These Committees operate within defined terms of reference and play a vital role in ensuring that the Board’s supervisory role is well executed
across critical functional areas. The evaluation methodology adopted is aligned with the criteria laid down under the SEBI’s Guidance Note on Board Evaluation and the
Company’s Nomination and Remuneration Policy, which is available on the website of the Company at https://paramountforge.com/pdf/
It is further confirmed that during the year under review, there were no instances where the Board did not accept any recommendation of the PoliciesAdopted/Nomination-and-Remmuneration-Policy_PSFL.pdf
Audit Committee.
The outcome of the evaluation confirmed that the Board and its Committees are functioning effectively and collectively possess an appropriate
* The IPO Committee of the Board was constituted on November 1, 2023, for the purpose of overseeing and facilitating the Initial Public mix of skills, experience, and expertise necessary for the Company’s governance and strategic direction.
Offering (IPO) process of the Company. The Committee played a pivotal role in ensuring timely execution of all activities related to the
IPO, culminating in the successful listing of the Company’s equity shares on NSE EMERGE. H. Meeting of Independent Directors

Upon the completion of its assigned responsibilities and post-listing formalities, the Committee was formally dissolved by the Board of In accordance with the provisions of the Companies Act, 2013 and Schedule IV thereto, a separate meeting of the Independent Directors of the
Directors at its meeting held on February 18, 2025. Company was convened on March 29, 2025, without the presence of Non-Independent Directors and members of the management.

The following are the Composition of the Committees of the Board formed: At the said meeting, the Independent Directors, inter alia, reviewed the performance of the Non-Independent Directors, the overall performance
of the Board as a whole, and the Chairperson of the Company. The meeting also involved an evaluation of the quality, quantity, and timeliness of
Audit Committee* Nomination & Remuneration Committee information flow between the Management and the Board, which is crucial for the Board’s effective functioning and informed decision-making.
Name of the Member Designation Name of the Member Designation
Chair (Non-Executive Inde- Chair (Non-Executive Indepen- The observations and feedback from this meeting were duly considered by the Board during its subsequent evaluation process.
Kurian Pallathuseril Chandy Nimesh Mukerji
pendent Director) dent Director)
I. Directors’ Responsibility Statement
Member (Non-Executive Member (Non-Executive Inde-
Nimesh Mukerji Kurian Pallathuseril Chandy
Independent Director) pendent Director) Pursuant to the provisions of Section 134(5) of the Companies Act, 2013, the Board of Directors, to the best of their knowledge and belief and
Member (Managing Direc- Member (Non-Executive Inde- based on the information and explanations obtained, confirm that:
Aliasgar Roshan Hararwala Apurva Pradeep Joshi
tor) pendent Director )
i. In the preparation of the annual financial statements, the applicable accounting standards have been followed along with proper explanation
Stakeholder Relationship Committee CSR Committee relating to material departures, if any;
Name of the Member Designation Name of the Member Designation
ii. The directors have selected such accounting policies and applied them consistently and made judgments and estimates that are reasonable
Nimesh Mukerji Chair (Non-Executive Inde-
Aliasgar Roshan Hararwala Chair (Managing Director) and prudent, so as to give a true and fair view of the state of affairs of the Company as at the end of the financial year and of the profit of the
pendent Director) Company for that period;
Member (Executive Direc-
Aliasgar Abdulla Bhagat Aliasgar Abdulla Bhagat Member (Executive Director)
tor) iii. The directors have taken proper and sufficient care for the maintenance of adequate accounting records in accordance with the provisions
Member (Managing Direc- Member (Non-Executive Inde- of the Act for safeguarding the assets of the Company and for preventing and detecting fraud and other irregularities;
Aliasgar Roshan Hararwala Nimesh Mukerji
tor) pendent Director)
iv. The annual financial statements have been prepared on a going concern basis;
*Reconstitution of Audit Committee
v. The directors have laid down internal financial controls to be followed by the Company and that such internal financial controls are
Pursuant to a Circular Resolution passed by the Board of Directors on May 10, 2025, the Audit Committee was reconstituted in order to maintain adequate and were operating effectively; and
continuous compliance with the provisions of the Companies Act, 2013 and the applicable requirements under SEBI LODR Regulations.
vi. The directors have devised proper systems to ensure compliance with the provisions of all applicable laws and that such systems are
Ms. Apurva Pradeep Joshi voluntarily stepped down from her position as Member of the Audit Committee. On her recommendation and with adequate and operating effectively.
the approval of the Board, Mr. Nimesh Mukerji (Non-Executive Independent Director) was inducted as a Member of the Committee in her place.
7. RISK MANAGEMENT
G. Board Evaluation
As an SME listed entity, the Company is not mandatorily required to constitute a Risk Management Committee under Regulation 21 of the
Pursuant to the provisions of the Companies Act, 2013 and the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. However, the Board of Directors acknowledges the importance of
the Board of Directors conducted the annual performance evaluation of the Board as a whole, its Committees, individual Directors, and the effective risk governance in safeguarding stakeholder value and ensuring sustainable operations.
Chairperson.
The Company has adopted a proportionate yet structured risk management framework, integrated into its strategic, operational, and
The evaluation was undertaken through a structured mechanism designed to assess the effectiveness of the Board’s functioning, the adequacy compliance functions. This framework enables timely identification, assessment and mitigation of key risks that may impact the Company’s
of its composition, and the performance of its members. The process involved assessment against pre-defined criteria including, inter alia, the performance and continuity.
structure and diversity of the Board, effectiveness of Board and Committee meetings, quality and timeliness of information flow, contribution

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Key risk areas identified by the management include: 9. CORPORATE SOCIAL RESPONSIBILITY (“CSR”)
A. Operational risks, such as plant utilization inefficiencies, underuse of machining capacity and process failures; In accordance with the provisions of Section 135 of the Companies Act, 2013, and the Companies (Corporate Social Responsibility Policy)
Rules, 2014, the Company has duly constituted a Corporate Social Responsibility (CSR) Committee, the composition and functioning of which
B. Financial risks, including interest rate exposure, working capital needs and customer credit cycles; are fully aligned with the statutory framework. The Company has adopted a comprehensive CSR Policy, which outlines its guiding principles
and focus areas, in line with Schedule VII of the Act. The Policy is available on the Company’s website at https://paramountforge.com/pdf/
C. Market-related risks, like order volatility due to short-term purchase contracts and raw material price fluctuations; PoliciesAdopted/CSR-Policy_PSFL.pdf

D. Environmental, Health and Safety (EHS) risks, given the nature of forging operations; During the financial year 2024–25, the Company undertook CSR initiatives through registered implementing agency, Raginiben Bipinchandra
Seva Karya Trust, and contributed a sum of ₹15,50,000 (Rupees Fifteen Lakh Fifty Thousand only). The Trust primarily focuses on medical and
E. Compliance and reputational risks, especially with evolving industry standards and legal regulations. healthcare services, in line with the Company’s CSR objectives.

To manage these risks effectively, the Company operates under an established Integrated Management System (IMS) supported by A detailed annual report on CSR activities undertaken by the Company during the year, in the prescribed format under Rule 8 of the Companies
internationally recognized certifications, including: (CSR Policy) Rules, 2014, is annexed to this Report as Annexure I.

ISO 9001:2015 – Quality Management System, ensuring consistent product quality and reducing the risk of non-conformities, product returns The Company remains deeply committed to its social responsibility and believes that sustainable corporate growth must be complemented
or reputational harm; by meaningful contributions to society. Its CSR vision encompasses focus areas such as healthcare, education, environmental sustainability,
and community development. All initiatives are undertaken with a strong emphasis on integrity, transparency, and impact-driven outcomes.
ISO 14001:2015 – Environmental Management System, guiding responsible resource use, pollution control and compliance with environmen-
tal regulations; 10. PARTICULARS OF CONTRACTS OR ARRANGEMENTS WITH RELATED PARTIES
ISO 45001:2018 – Occupational Health and Safety Management System, which addresses inherent operational risks such as die-grinding, During the financial year under review, all related party transactions entered into by the Company were in the ordinary course of business and
forging and heat treatment through well-documented safety protocols and regular hazard assessments. on an arm’s length basis, in accordance with the provisions of Section 188(1) of the Companies Act, 2013, read with Rule 15 of the Companies
(Meetings of Board and its Powers) Rules, 2014, and Regulation 23 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
In addition, the Company enhances risk control through: 2015 (“Listing Regulations”).
ASNT Level II - certified technicians conducting Non-Destructive Testing (Ultrasonic, Magnetic Particle, and Liquid Penetrant), minimizing There were no material related party transactions during the year, as defined under the Company’s Policy on Related Party Transactions and
risks of undetected defects in critical components. Regulation 23 of the Listing Regulations. Accordingly, no shareholder approval was required under Regulation 23(4).
Periodic reviews are conducted at the operational and Board levels, with improvement actions implemented as necessary. The Board is of the All related party transactions were placed before the Audit Committee and, where required, the Board of Directors, for prior approval. Omnibus
opinion that there are no material threats at present that could affect the Company’s going concern status. Nonetheless, it remains vigilant to approvals were obtained for repetitive transactions in the ordinary course of business. These transactions were also reviewed on a quarterly/
potential risks arising from economic volatility, customer concentration, regulatory changes or geopolitical factors that could impact supply half yearly basis to ensure compliance and transparency.
chains or margins.
The Audit Committee has confirmed that all related party transactions undertaken during the year were in the best interest of the Company,
The Company remains committed to enhancing its internal controls, certifications, and governance systems to proactively address risks and and were conducted in a fair, transparent, and compliant manner.
support long-term value creation.
The Company has a duly approved Policy on Related Party Transactions, which is available on its website at:
8. INTERNAL FINANCIAL CONTROLS https://paramountforge.com/pdf/PoliciesAdopted/Related-Party-Transactions-Policy_PSFL.pdf
Based on the framework of internal financial controls and compliance systems established and maintained by the Company, the work per- 11. PARTICULARS OF LOANS, GUARANTEES OR INVESTMENTS
formed by the internal, statutory and secretarial auditors and external consultants, including the audit of internal financial controls over finan-
cial reporting by the statutory auditors and the reviews performed by management and the relevant board committees, including the Audit During the financial year under review, the Company has not provided any loan or made any investment or given any guarantee or provided
Committee, the Board is of the opinion that the Company’s internal financial controls were adequate and effective during FY 2025. any security in respect of any loan to any person as mentioned in Section 186 of the Companies Act, 2013.

The internal financial controls include well-documented policies and procedures, clearly defined roles and responsibilities, standard operating 12. DEPOSITS
procedures, risk control matrices, and robust IT systems. These are tested periodically for design and operating effectiveness through internal
audits conducted by a reputed firm of internal auditors. The Company has established and maintained adequate internal financial controls A. Deposits covered under Chapter V of the Companies Act, 2013:
with reference to the financial statements, commensurate with the size, scale, and complexity of its operations. These controls are designed
to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with During the financial year under review, the Company has not accepted or renewed any deposits within the meaning of Section 73 and 76 of
applicable laws. the Companies Act, 2013 read with Companies (Acceptance of Deposits) Rules, 2014.

The Audit Committee actively oversees and reviews the adequacy and effectiveness of the internal control systems and suggests improvements B. Deposits not in compliance with Chapter V of the Companies Act, 2013:
as needed. The Company’s internal control systems are routinely tested and certified by Statutory as well as Internal Auditors.
During the financial year under review, the Company has not accepted or renewed any deposits which are not in compliance with Chapter
The Company believes that strengthening of internal controls is an ongoing process and there will be continuous efforts to keep pace with V of the Companies Act, 2013.
changing business needs and environment. Necessary certification by the Statutory Auditors in relation to Internal Financial Control u/s
143(3)(i) of the Act forms part of the Audit Report.

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13. AUDITORS & AUDIT REPORTS b) In the payroll process, input preparation, validation, and final approval will be assigned to different personnel with system based controls,
wherever feasible.
A. Statutory Auditors
c) For financial closure, all key entries and reconciliations will undergo a review and approval process, supported by documented checklists
Pursuant to the provisions of Section 139 of the Companies Act, 2013, read with the Companies (Audit and Auditors) Rules, 2014, the Members and sign-offs.
of the Company, at the First Annual General Meeting, approved the re-appointment of M/s. Kalyaniwalla & Mistry LLP, Chartered Accountants
(Firm Registration No. 104607W/W100166), as the Statutory Auditors of the Company to hold office for a term of five consecutive years, from The ERP accounting systems are being implemented to support automated controls, audit trails, and approval workflows to further strengthen
the conclusion of the First Annual General Meeting until the conclusion of the Sixth Annual General Meeting, to be held in the year 2029. the control environment. The aim is to implement the above actions in a phased manner and expect to have the revised internal control frame-
work in place by end of H1, with periodic reviews thereafter to ensure ongoing compliance and effectiveness.
The Company has received a certificate from the said Auditors confirming that they continue to satisfy the eligibility criteria prescribed under
Section 141 of the Companies Act, 2013 and have not incurred any disqualifications, thereby being eligible to continue as Statutory Auditors iii. Undisputed Statutory Dues: According to the information and explanation given to us and based on records of the Company
of the Company. examined by us, the Company is generally regular in depositing undisputed statutory dues, including dues pertaining to Goods and
Services tax (‘GST’), Provident fund, Employees’s State Insurance, Income-Tax, Duty of Customs, Profession Tax and other statutory
The audit firm is also registered with the Peer Review Board of the Institute of Chartered Accountants of India (ICAI) and holds a valid peer dues with the appropriate authorities, wherever applicable and there are no undisputed dues which remained outstanding at March
review certificate. 31, 2025 for a period of more than six months from the date they became payable except as mentioned in audit report.
B. Auditor’s Report
Reply: The delay in remittance of these statutory dues pertains mainly to few employees where underlying issue was due to
discrepancies and mismatches in PF and ESIC, PAN and Aadhaar details of certain employees, resulting in, the system rejection of
The Statutory Auditors’ Report for the financial year under review does not contain any qualification, reservation, adverse remark or disclaimer
payments. In order to avoid such situations new employees onboarded on a 6-month probation period, are required to ensure all
except of the following.
statutory documents such as PAN and Aadhaar are properly submitted All pending payments have now been cleared, except for 2–3
employees whose documentation is still under rectification. The concerned employees have assured that the required documentation
i. Title Deed: According to the information and explanations given to us and based on the audit procedures performed by us, the
will be submitted by 15thSeptember 2025, following which the remaining dues will be cleared promptly.
Company is still in process of transferring the title deeds of the immovable properties (other than immovable properties where the
Company is the lessee) disclosed in the financial statements, the details of same are as mentioned below:
iv. Disputed Statutory Dues: According to the information and explanation given to us and on the basis of our examination of the
- Freehold Land having value of 42.87 (In Lakhs) held in the name of Paramount Speciality Forgings LLP
records of the Company, there are no dues outstanding as on March 31, 2025, of income-tax on account of any dispute, except as
- Building (Factory, Office and Residential Building) having value of 1125.52 (In Lakhs) held in the name of Paramount Speciality
mentioned in audit report.
Forgings LLP
- Leasehold property having value of 10.26 (In Lakhs) held in the name of Paramount Speciality Forgings LLP
Reply:

a) We confirm that appeals have been duly filed against all disputed income tax demands as per the provisions of the Income Tax Act,
Reply: The Company have initiated the title transfer process and taken the following steps:
1961.
a). For the Society Property – at Jawahar Industrial Estate Kamothe – Plot No. 260/263:
b) The current status of the appeals is that they are pending before the appropriate appellate authorities, and further responses or
hearing schedule from the Income Tax Department is awaited
We have intimated JCIEL regarding the conversions of our firm from LLP to Limited requesting them to update their records. We have also
initiated the processes Industrial Development Authority / District Industries Centre for updating the conversion process. All related docu-
c) The grounds of dispute primarily relate to disallowances
mentation is currently in process, and we are making every effort to complete this process by the end of December 2025.
d) At this stage, no specific timeline for resolution can be confirmed, as it is subject to the proceedings and timelines of the income tax
b) The Khalapur Property:
authorities.
The respective Gram Panchayat & Talathi Offices have already been contacted and the entire process will be completed before December 2025.
v. Audit Trail: With respect to reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation of audit
trail, the Company has retained audit trail logs for Tally EL Gold from January 20th, 2024, and for Cloud9 ERP from its implementation
ii. Internal Financial Control: According to the information and explanations given to us and based on our audit we are of the view that
date, i.e., October 1st, 2024.
the Company needs to strengthen its documentation over standardisation of its key processes and also introduce a maker checker
concept over Payroll and Financial Closing Process. We have been informed that the Company is in the process of strengthening its
Reply: There was migration process to new Cloud9 ERP system, unlike Tally which was fully operational we just had to configure it.
overall control on the aforesaid processes.
The Cloud9 rollout followed department wise migration plan to ensure smooth transition and accurate data transfer. There were user
training sessions to all department to get trained with the new system features and compliance requirements. The entire process
Reply: Appropriate steps to strengthen internal controls over the payroll and financial closure processes. The actions will include: took additional time for initiating audit trail logging.
C. Secretarial Auditors
a) Documentation of all key workflows, roles, and responsibilities related to payroll processing and financial quarter end/year-end closures.
Pursuant to the provisions of Section 204 of the Companies Act, 2013, read with Rule 9 of the Companies (Appointment and Remuneration
b) Standard Operating Procedures for payroll and financial closures will be finalized and approved by management by the end of H1 of Managerial Personnel) Rules, 2014, and in accordance with Regulation 24A of the SEBI (Listing Obligations and Disclosure Requirements)
Regulations, 2015, the Board of Directors of the Company had appointed M/s. Amit Dharmani & Associates, Practising Company Secretaries
Implementation of Maker-Checker Controls (Peer Reviewed Firm, CP No. 18179), to undertake the Secretarial Audit of the Company for the Financial Year 2024–25. The said appointment
was made based on the recommendation of the Audit Committee and was duly approved at the Board Meeting held on November 14, 2024.
a) A formal maker-checker system is being introduced across both functions to ensure clear segregation of duties.
The Secretarial Audit was conducted in accordance with the applicable provisions of the Companies Act, 2013, SEBI Regulations, and other

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relevant laws and Secretarial Standards. The Secretarial Audit Report in Form MR-3, as issued by M/s. Amit Dharmani & Associates, for the Energy efficiency and environmental responsibility form an integral part of the Company’s operational priorities. Recognizing that forging is
year ended March 31, 2025, is annexed to this Board’s Report as Annexure-II. The Report confirms that the Company has complied with the an energy-intensive industry, PSFL has initiated several measures to reduce energy consumption and emissions.
applicable statutory provisions and does not contain any qualification, reservation, or adverse remark.
Key measures during the year included:
In line with the recent amendment to Regulation 24A of the SEBI (LODR) Regulations, 2015, notified by SEBI circular, which mandates that
the Secretarial Auditor of a listed entity shall be appointed for a continuous term of five years, the Audit Committee and Board of Directors, 1. Commissioning of automated CNC machines and low-emission furnaces equipped with automated heat-treatment systems.
at their meeting held on May 29, 2025, have approved the re-appointment of M/s. Amit Dharmani & Associates as the Secretarial Auditor of 2. Initiation of a 1,050 kWp solar power project at the Khalapur facility, designed to meet 30–35% of internal energy requirements upon
the Company for a fixed term of five consecutive financial years commencing from FY 2025–26 to FY 2029–30, subject to the approval of the commissioning, with additional capacity expansion of 300–400 kW planned.
shareholders at the ensuing Annual General Meeting. 3. Ongoing implementation of waste heat recovery systems to harness residual thermal energy from furnace operations.
4. A portion of IPO proceeds earmarked for energy-efficient billet saws, compressors, and renewable-linked upgrades, aligning expansion
The Board recommends the said appointment for the consideration and approval of the members. This long-term appointment is expected to with ESG goals.
ensure continuity, independence, and consistency in the secretarial oversight of the Company’s compliance functions. 5. These measures are projected to achieve an estimated CO₂ reduction of 787,500 kg per year, equivalent to planting ~36,750 trees annually.

D. Internal Auditors Through these initiatives, the Company is progressively lowering its carbon footprint, improving energy utilisation, and aligning with global
sustainability practices, thereby strengthening its long-term competitiveness.
In compliance with the provisions of Section 138 of the Companies Act, 2013, read with Rule 13 of the Companies (Accounts) Rules, 2014, and
other applicable regulatory requirements, the Board of Directors of the Company, based on the recommendation of the Audit Committee, at its B. Technology Absorption:
meeting held on May 31, 2024, approved the re-appointment of M/s. Pipalia Singhal & Associates, Chartered Accountants (FRN: 114665W), as
the Internal Auditors of the Company for the Financial Year 2024–25. During the year, the Company undertook a series of technology upgradation and absorption measures aimed at improving manufacturing
precision, operational efficiency, and sectoral competitiveness.
The Internal Auditors function independently and report directly to the Chairman of the Audit Committee, in line with the principles of good
governance and the Company’s internal control framework. Their scope of work includes reviewing and assessing the adequacy and effective- Key initiatives included:
ness of internal controls, risk management systems, operational processes, and compliance with applicable laws and internal policies.
1. Installation of multi-axis CNC machining centres, vertical lathes, billet saws, and semi-automatic systems to enhance throughput, accuracy,
During the year, the Internal Auditors conducted periodic reviews and submitted their reports to the Audit Committee. Their observations and and productivity.
recommendations were duly considered and acted upon, thereby contributing to the continuous improvement of operational and financial 2. Adoption of press forging for smaller jobs in place of hammer forging, enabling improved geometry, consistency, and reduced material
controls within the Company. wastage.
3. Setting up a laboratory for mechanical, chemical, and corrosion testing, reducing dependence on third parties and ensuring faster turn-
The Company continues to maintain a robust internal audit mechanism to ensure high standards of accountability, transparency, and risk around. R&D efforts were directed toward evaluating new alloys, heat treatment techniques, and customer-specific product development.
mitigation in all functional areas. 4. Rollout of real-time monitoring systems, predictive maintenance tools, and data-driven quality management practices, gradually aligning
operations with Industry 4.0 standards.
E. Cost Auditors and Cost Audit Report 5. Planned installation of a mechanical forging press plant and continuous billet induction furnace, along with expansion of the Khalapur
facility, to support entry into high-value segments like aerospace, defence, and marine.
Pursuant to Section 148(1) of the Companies Act, 2013 the Company is required to maintain cost records as specified by the Central Government
and accordingly such accounts and records are made and maintained. Pursuant to Section 148(2) of the Companies Act, 2013 read with the These initiatives have strengthened the Company’s technological capabilities, product reliability, and ability to serve critical industries with
Companies (Cost Records and Audit) Amendment Rules, 2014, the Company is also required to get its cost accounting records audited by a higher-value, complex forgings.
Cost Auditor.
C. Foreign Exchange Earnings and Outgo:
In compliance with section 148 (3) of the Companies Act, 2013 and rule 6 (2) of the Companies (Cost records and Audit Rules) 2014, the
Board at its meeting held on May 31, 2024, based on recommendation of the Audit Committee, has approved the reappointment of M/s. The Following are the total foreign exchange outflow and inflow during the FY 2024-25:
Jitendrakumar & Associates, (Firm Registration No. 101561), as Cost Auditors of the Company for FY 2024-25.
i. FOB Value of Exports: 27,05,27,420/-
The remuneration is subject to the ratification of the Members in terms of Section 148 read with Rule 14 of the Companies (Audit and Auditors) ii. Expenditure in Foreign Currency: 1,17,64,706/-
Rules, 2014 and is being accordingly placed before the Members for ratification. The cost audit report does not contain any observation or iii. Foreign Exchange earned: 28,99,112/-
qualification requiring explanation or comments from the Board under Section 134(3) of the Companies Act, 2013. iv. Value of Import on CIF basis: 48,71,833/-

The Company has received consent from M/s. Jitendrakumar & Associates, for appointment as Cost Auditors of the Company for FY 2025-26 15. VIGIL MECHANISM
which was approved by the Board of Directors in their meeting held on May 29, 2025.
The Company is committed to maintaining the highest standards of transparency, accountability, professionalism, and ethical conduct in all
F. Reporting of frauds by auditors its dealings. In accordance with the provisions of Section 177(9) and 177(10) of the Companies Act, 2013, read with Rule 7 of the Companies
(Meetings of Board and its Powers) Rules, 2014, and Regulation 22 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations,
During the year under review, none of the auditors have reported any instances of fraud committed against the Company by its officers or 2015, the Company has formulated a robust Vigil Mechanism / Whistle Blower Policy.
employees to the Audit Committee as required to be reported under Section 143 (12) of the Act.
This Policy enables Directors, employees, and stakeholders to report genuine concerns or grievances regarding unethical behaviour, actual
14. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO or suspected fraud, or violation of the Company’s Code of Conduct or applicable laws. The Vigil Mechanism provides for adequate safeguards
against victimization of persons who avail the mechanism and also ensures direct access to the Chairperson of the Audit Committee, in
A. Conservation of Energy: appropriate or exceptional cases.

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 Annual Report 2024 - 25 Statutory Reports

The Whistle Blower Policy is disseminated across the organization through training sessions, awareness programs, and internal communications, employees in accordance with applicable laws.
and is available on the Company’s website at https://paramountforge.com/pdf/PoliciesAdopted/Vigil-Mechanism-Policy_psfl.pdf
However, during the financial year 2024–25, no female employees availed maternity leave, and no formal requests for maternity benefits were
During the financial year under review, no complaints were received under the said mechanism. The Company continues to maintain and received. The majority of female employees are under ESIC for which they are entitled to maternity benefits as per the Act. The Company is
periodically review the effectiveness of the Policy to ensure a secure and responsive platform for all stakeholders to report concerns without prepared to provide the required benefits either directly or via ESIC as and when applicable.
fear of retaliation.
20. COMPLIANCE WITH SECRETARIAL STANDARDS ON BOARD MEETINGS AND GENERAL MEETINGS
16. ANNUAL RETURN
During the Financial Year 2024–25, the Company has complied with the applicable provisions of the Secretarial Standards on Meetings of
Pursuant to Section 92(3) read with Section 134(3)(a) of the Act read with Rule 12 of the Companies (Management and Administration) Rules, the Board of Directors (SS-1) and General Meetings (SS-2), as issued by the Institute of Company Secretaries of India (ICSI) and notified by
2014, the Annual Return of the Company as on March 31, 2025 has been placed on the website of the Company at https://paramountforge. the Ministry of Corporate Affairs under Section 118(10) of the Companies Act, 2013. The Company has established systems and processes to
com/investor-info.html ensure ongoing and effective compliance with these mandatory Secretarial Standards.

17. MANAGEMENT DISCUSSION AND ANALYSIS, CORPORATE GOVERNANCE AND BRSR 21. CODE OF CONDUCT FOR PREVENTION OF INSIDER TRADING IN COMPANY’S SECURITIES
As per Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the Management Discussion and In compliance with the provisions of the Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015, as amended
Analysis Report forms an integral part of the Board’s Report and is annexed separately. from time to time (“PIT Regulations”), the Company has adopted a comprehensive Code of Conduct for Prevention of Insider Trading (“Code”).

Pursuant to Regulation 15(2) of the SEBI Listing Regulations, the compliance with the provisions of Corporate Governance as specified in The objective of the Code is to preserve the confidentiality of Unpublished Price Sensitive Information (UPSI) and to ensure that no insider
Regulations 17 to 27, clauses (b) to (i) of sub-regulation (2) of Regulation 46, and Paras C, D and E of Schedule V, is not mandatory for companies derives any undue benefit or advantage by dealing in the securities of the Company while in possession of UPSI. The Code is applicable to all
listed on the SME Exchange. Accordingly, the said provisions are not applicable to the Company, which is listed on the NSE EMERGE platform. Designated Persons, their immediate relatives, and connected persons who are expected to have access to UPSI.

Further, under Regulation 34(2)(f) read with the SEBI circular SEBI/HO/CFD/CFD-PoD-2/P/CIR/2023/120 dated July 11, 2023, the The Company has also implemented a system for maintaining a Structural Digital Database (SDD) containing the names of such persons or
requirement to submit a Business Responsibility and Sustainability Report (BRSR) is applicable only to the top 1,000 listed entities by market entities with whom UPSI is shared and ensuring compliance with Regulations 3(5) and 3(6) of the PIT Regulations.
capitalization (as on the last day of the financial year). Since the Company does not fall within this threshold, BRSR reporting is not applicable
to the Company for the financial year ended March 31, 2025. Ms. Ankita Patankar, Company Secretary of the Company, is designated as the Compliance Officer for the purpose of the PIT Regulations and is
responsible for monitoring compliance and ensuring effective implementation of the Code.
However, the Company continues to uphold principles of good governance and sustainability through its internal practices.
The Company’s Code of Conduct for Prevention of Insider Trading is available on its website at https://paramountforge.com/pdf/
The Company has devised proper systems to ensure compliance with all applicable provisions of the Secretarial Standards issued by the PoliciesAdopted/Code-of-Practice-for-UPSI_PSFL.pdf
Institute of Company Secretaries of India (ICSI) and confirms that such systems are adequate and operating effectively.
22. GENERAL DISCLOSURES
18. DISCLOSURE UNDER SEXUAL HARASSMENT OF WOMEN AT WORKPLACE (PREVENTION, PROHIBITION AND REDRESSAL)
ACT, 2013 A. Particulars of Employees

The Company has zero tolerance towards sexual harassment at workplace and is committed to provide a safe and secure working environment Pursuant to the provisions of Section 197(12) of the Companies Act, 2013 read with Rule 5(1) of the Companies (Appointment and Remuner-
for all employees and therefore, your Company has put in place a policy for prevention, prohibition and redressal against sexual harassment ation of Managerial Personnel) Rules, 2014 (as amended), the requisite disclosures relating to the remuneration of Directors and Key Mana-
of women at the work place, to protect women employees and enable them to report sexual harassment at the workplace in line with the gerial Personnel, including the ratio of the remuneration of each Director to the median remuneration of the employees, are annexed to this
requirements of The Sexual Harassment of Women at the Workplace (Prevention, Prohibition & Redressal) Act, 2013. Report as Annexure-III.

The policy on prevention of sexual harassment at workplace is placed on the website of the Company at https://paramountforge.com/pdf/ Further, the statement containing names of top ten employees in terms of remuneration drawn and the particulars of employees as required
PoliciesAdopted/Anti-Harassment-Policy_PSFL.pdf under Section 197(12) of the Act read with Rule 5(2) and 5(3) of the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014, is not applicable to the Company.
During the year under review, no cases were filed under the provisions of the Sexual Harassment of Women at Workplace (Prevention,
Prohibition and Redressal) Act, 2013. These disclosures are in compliance with the applicable provisions and reflect the Company’s commitment to fairness, accountability, and
transparency in managerial and employee remuneration practices.
Sr. No. Particulars Remarks
1 No. of complaints received during the year Nil B. The Directors of the Company state that:
2 No. of complaints disposed of during the year Nil
i. During the financial year under review, there was no change in the nature of business of the Company.
3 No. of complaints pending as on March 31, 2025 Nil
19. MATERNITY BENEFIT PROVIDED BY THE COMPANY UNDER MATERNITY BENEFIT ACT 1961 ii. No application is made and no proceedings are pending against the Company, under the Insolvency and Bankruptcy Code, 2016.

All eligible women employees have the statutory benefits prescribed under the Act, including paid maternity leave, continuity of salary and iii. There are no material changes affecting the financial position or the current affairs of the Company occurred since the end of the financial
service during the leave period, and post-maternity support such as nursing breaks and flexible return-to-work options, as applicable. The year and up to the date of this report.
Company remains committed to fostering an inclusive and supportive work environment that upholds the rights and welfare of its women
iv. No One-Time settlement(s) was carried out by the Company with any Banks or Institutions. Hence, no details of valuation are required to
be given.

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v. There was no significant or material order passed by any regulator or court or tribunal, which impacts the going concern status of the
Company or will have bearing on Company’s operations in future.
Annexure – I
Annual Report on Corporate Social Responsibilities (“CSR”) Activities for financial year 2023-24
vi. The annual Listing and custodian fees for the Financial Year has been paid to NSE, CDSL and NSDL.
1. Brief outline on CSR Policy of the Company:
23. CAUTIONARY STATEMENT
Paramount Speciality Forgings’ CSR Policy intends to:
Statements in the Board’s Report and the Management Discussion & Analysis Report describing your Company’s objectives, expectations or
forecasts may be forward- looking within the meaning of applicable securities laws and regulations. Actual results may differ materially from
• Strive for economic development that positively impacts society at large with minimal resource footprint.
those expressed in the statement. Important factors that could influence your Company’s operations include global and domestic market con-
ditions affecting cost as well as the selling prices of the services, changes in government regulations, tax laws, economic developments within • Embrace responsibility for the Company’s actions and encourage a positive impact through its activities to alleviate hunger, poverty and
the country and other factors such as litigation and industrial relations. malnutrition; to protect the environment; and to support communities, stakeholders and society.

Acknowledgements 2. Composition of CSR Committee:

The Board of Directors places on record its sincere appreciation for the continued support, trust, and cooperation extended to the Company by its
esteemed shareholders, customers, vendors, investors, business associates, and other stakeholders. The Board also acknowledges the valuable Number of meetings of CSR Number of meetings of CSR
Sr.
guidance and assistance received from various departments of the Central and State Governments, regulatory authorities, and other statutory bodies. Name of Director Designation / Nature of Directorship Committee held during the Committee attended during the
No.
year year
The Directors further express their deep appreciation for the commitment, dedication, and hard work demonstrated by employees across all Aliasgar Roshan
levels, which has significantly contributed to the sustained performance and progress of the Company. 1 Chair (Managing Director) 1 1
Hararwala
Aliasgar Abdulla
The Board looks forward to the continued support and goodwill of all stakeholders in the Company’s future growth and strategic initiatives. 2 Member (Director) 1 1
Bhagat
For and on behalf of the Board of Directors Member (Non-Executive Independent
3 Nimesh Mukerji 1 1
Paramount Speciality Forgings Limited Director)
3. Provide the web-link(s) where Composition of CSR Committee, CSR Policy adopted by the board are disclosed on the website of the
Sd/- Sd/- company: https://paramountforge.com/pdf/PoliciesAdopted/CSR-Policy_PSFL.pdf
Aliasgar Roshan Hararwala Aliasgar Abdulla Bhagat
4. Provide the executive summary along with web-link(s) of Impact Assessment of CSR Projects carried out in pursuance of sub-rule
Managing Director Director (Chairman)
(3) of rule 8, if applicable: Not Applicable
DIN: 00334957 DIN: 00335869
Place: Mumbai Place: Mumbai
5. (a) Average net profit of the company as per sub-section (5) of section 135: Rs. 7,58,32,041/-
Date: August 23, 2025 Date: August 23, 2025
(b) Two percent of average net profit of the company as per sub-section (5) of section 135: Rs. 15,16,641/-

(c) Surplus arising out of the CSR projects or programmes or activities of the previous financial years: None

(d) Amount required to be set off for the financial year, if any: None

(e) Total CSR obligation for the financial year (b+c-d): Rs. 15,16,641/-

6. (a) Amount spent on CSR Projects (both Ongoing Project and other than Ongoing Project): Rs. 15,50,000/-

(b) Amount spent in Administrative Overheads: None

(c) Amount spent on Impact Assessment, if applicable: None

(d) Total amount spent for the Financial Year [(a)+(b)+(c)]: Rs. 15,50,000/-

(e) CSR amount spent or unspent for the Financial Year: Rs. 15,50,000/-

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Total Amount Amount Unspent (in Rs.)

Spent for the Total Amount transferred to Unspent CSR Ac- Amount transferred to any fund specified under Schedule
Financial Year 9. Specify the reason(s), if the company has failed to spend two per cent of the average net profit as per section 135(5):
count as per sub-section (6) of section 135 VII as per second proviso to sub-section (5) of section 135 Not Applicable
(In Rs.)
Amount Date of Transfer Name of the Fund Amount Date of Transfer
15,50,000 - -

(f) Excess amount for set-off, if any

(Chief Executive Officer or (Chairman CSR Committee) [Person specified under clause (d)
Sr. No. Particular Amount (in Rs.) Managing Director or Director) of sub-section (1) of section 380 of
(i) Two percent of average net profit of the company as per sub-section (5) of section 135 15,16,641 the Act] (Wherever applicable)
(ii) Total amount spent for the Financial Year 15,50,000
(iii) Excess amount spent for the financial year [(ii)-(i)] 33,359
Surplus arising out of the CSR projects or programmes or activities of the previous financial
(iv) -
years, if any
(v) Amount available for set off in succeeding financial years [(iii)-(iv)] 33,359

7. (a) Details of Unspent Corporate Social Responsibility amount for the preceding three financial years:

Sr. Preceding Amount Balance Amount Amount transferred to a fund as Amount remaining Deficiency, if any
No. Financial transferred Amount in spent specified under schedule VII as per to be spent in
Year to Unspent Unspent in the second proviso to sub-section (5) of succeeding
CSR Account CSR Financial section 135, if any Financial Years
under sub- Account Year
section (6) under sub- Amount (in Rs.) Date of transfer (in Rs.)
of section (in Rs.)
section (6)
135 of section
(in Rs.) 135 (in Rs.)
1. - - - - - - - -
2. - - - - - - - -
3. - - - - - - - -
Total

8. Whether any capital assets have been created or acquired through Corporate Social Responsibility amount spent in the Financial Year: No

If yes, enter the number of Capital assets created/ acquired: Not Applicable

Furnish the details relating to such asset(s) so created or acquired through Corporate Social Responsibility amount spent in the Financial Year:

Sr. No. Short particulars of Pincode of Date of Amount Details of entity/ Authority/
the property of CSR
the property or asset(s) or asset(s) creation amount beneficiary of the registered owner
[including complete spent CSR Registration Num- Name Registered
address and location of ber, if applicable
the property] address
1 - - - - - - -
2 - - - - - - -
3 - - - - - - -

(All the fields should be captured as appearing in the revenue record, flat no, house no, Municipal Office/Municipal Corporation/
Gram panchayat are to be specified and also the area of the immovable property as well as boundaries)

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Management Discussion And Analysis Report of new tariffs, which triggered retaliatory responses from trading partners. These measures culminated in the imposition
of near-universal U.S. tariffs as of April 2, elevating effective tariff rates to levels not seen in a century. This development
1. OVERVIEW: constitutes a significant negative shock to global growth.

The objective of this report is to convey the Management’s perspective on the external environment and forging industry, Moreover, the heightened uncertainty surrounding trade policy and geopolitical developments has further weighed on
as well as operating and financial performance, material developments in human resources and industrial relations, SWOT economic activity and clouded the outlook, making it increasingly difficult to produce consistent and timely forecasts. In
Analysis and internal control systems and their adequacy in the Company during the FY 2024-25. this context, the reference scenario projects global growth to slow to 2.8 percent in 2025 and 3.0 percent in 2026—down
from 3.3 percent—representing a cumulative downward revision of 0.8 percentage point and remaining well below the
This should be read in conjunctions with the Company’s financial statements, the schedules and notes thereto and other in- 2000–2019 historical average of 3.7 percent. Growth in advanced economies is expected to decline to 1.4 percent in 2025.
formation included elsewhere in the Annual Report. The Company’s financial statements have been prepared in accordance U.S. growth is forecast to slow to 1.8 percent—0.9 percentage point lower than previous estimates—due to increasing
with Generally Accepted Accounting Principle complying with the requirements of the Companies Act, 2013 as amended and policy uncertainty, rising trade tensions, and softening demand momentum.
regulations issued by the Securities and Exchange Board of India (‘SEBI’) from time to time.
Despite these persistent global headwinds, the current environment also presents an opportunity to bolster economic
2. INDUSTRY STRUCTURE & DEVELOPMENT: resilience and lay the groundwork for sustainable, long-term growth. Addressing these macroeconomic challenges will
require coherent policy coordination, the timely implementation of structural reforms, and effective sovereign debt reso-
A. THE ECONOMIC OVERVIEW lution mechanisms. With clear monetary guidance, disciplined fiscal frameworks, and stronger financial systems, econo-
mies can restore stability and support a robust recovery. Continued international cooperation will be critical to address-
(i) Global Economy: The baseline forecast anticipates that the global economy will maintain a growth rate of 3.2 percent ing systemic vulnerabilities, supporting emerging markets, and fostering a more inclusive and balanced trajectory for
in both 2024 and 2025, consistent with the pace recorded in 2023. A modest acceleration in advanced economies—from global growth.
1.6 percent in 2023 to 1.7 percent in 2024 and 1.8 percent in 2025—is expected to be offset by a slight deceleration in
emerging market and developing economies, where growth is projected to ease from 4.3 percent in 2023 to 4.2 percent (Source: https://www.imf.org/en/Publications/WEO/Issues/2025/04/22/world-economic-outlook-april-2025)
in both 2024 and 2025. The medium-term outlook is less optimistic, with global growth five years from now projected at
3.1 percent—its lowest level in decades.
Below is the forecast for revenue generation in global forging industry from 2019 to 2030, as projected by Fortune Busi-
ness Insights.

Global inflation is expected to decline steadily, from 6.8 percent in 2023 to 5.9 percent in 2024 and 4.5 percent in 2025.
Advanced economies are anticipated to return to their inflation targets more swiftly than their emerging market and de-
veloping counterparts. Core inflation, however, is projected to decline more gradually across most regions.

Despite a series of aggressive interest rate hikes by central banks to restore price stability, the global economy has demon-
strated notable resilience. Following several unprecedented shocks in recent years, growth remained steady - albeit sub-
dued—through 2024, with similar dynamics projected in early 2025. However, the global policy environment has since (ii) Indian Economy: India’s economy remains on a strong footing, with an estimated growth rate of 6.5% for FY 2024–25.
evolved, with governments beginning to recalibrate their priorities. Notably, the United States has introduced a broad set This performance underscores the country’s economic resilience amid a challenging global environment. The sustained

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momentum is supported by sound policy initiatives and robust domestic fundamentals. Key drivers include substantial gions—the industry currently produces around 2.2 million metric tonnes annually, accounting for 7.8% of global output,
infrastructure investments, technological advancements, and ongoing structural reforms. Government policy continues second only to China.
to play a pivotal role, complemented by improving labour market conditions and stable consumer demand. Agriculture This sector contributes significantly not only through the production of critical components but also by generating em-
and services sectors remain critical pillars, providing balance between private consumption and broader macroeconomic ployment and fostering skill development nationwide. Recent global shifts—such as the “China Plus One” strategy and
stability. rising energy costs in Europe—have created favourable conditions for Indian forging companies. In response, the industry
aims to scale up production capacity to 3.5–4 million tonnes over the next two years.
However, the manufacturing export segment has faced headwinds due to subdued demand from major international mar-
kets and increasingly protectionist trade policies from key partners. Additionally, an above-average monsoon delivered (ii) Diversification and Export Growth: Historically, the forging industry has been closely aligned with the automotive sec-
mixed outcomes—positively contributing to water resource replenishment and agricultural output, while temporarily tor, which accounts for nearly 80% of total orders. However, the industry is now diversifying into defence, aerospace,
disrupting activity in sectors such as mining, construction, and parts of manufacturing. Furthermore, year-on-year vari- and railways. By 2030, it aims to rebalance its customer base, with a targeted composition of 60% automotive and 40%
ations in the timing of festivals between September and October contributed to a marginal moderation in growth during non-automotive clients.
that period. Currently, exports comprise about 35% of India’s total forged products, a figure expected to rise due to increasing demand
from North America and Europe. Over the next seven years, the industry is projected to grow at a compound annual rate
Despite these short-term challenges, the economy’s resilience has been reinforced by strong domestic demand and a of 10–15%, marking a pivotal transition into its next phase of expansion.
notable surge in export orders—among the fastest in over a decade—driven by shifting global trade patterns. As a result,
the manufacturing sector ended the year on a solid note, reaffirming its position as a key engine of growth for the Indian (iii) Technology, Modernisation, and Policy Support: To remain globally competitive, the industry must prioritise capacity
economy. expansion, technology upgrades, and increased automation. Embracing new materials such as aluminium and integrating
disruptive technologies like additive manufacturing are crucial for future-readiness.
Investor confidence in the manufacturing sector remains high. This growth reflects improved corporate earnings, rising Government initiatives—such as Make in India, Skill India, and the Production-Linked Incentive (PLI) schemes—have
foreign direct investment, and technological innovations that have helped manufacturers maintain profitability, even in further bolstered the industry’s growth trajectory. This capital expenditure spans sectors including energy, mining, port
the face of rising input costs—particularly in sectors such as consumer goods, chemicals, and pharmaceuticals. connectivity, and railways. Forged components are essential to these projects, contributing to structural integrity and
long-term durability in infrastructure like bridges, pipelines, and buildings.
Below is the forecast for revenue generation in India’s forging industry from 2019 to 2030, as projected by Fortune Busi-
ness Insights. (iv) Industrial Capacity and Investment Landscape: India’s forging sector has shifted from a labour-intensive model to a
capital-intensive manufacturing ecosystem. With an installed capacity of approximately 3.85 million metric tonnes, the
industry processes a wide range of materials, including carbon steel, alloy steel, stainless steel, superalloys, titanium, and
aluminium. Industry players have invested over ₹27,833 crore in plant and machinery, underscoring the sector’s commit-
ment to modernisation.
The industry comprises a mix of unit sizes—ranging from very large to very small—with the majority being small and
very small enterprises. Forging clusters are strategically located near key customer bases, with major hubs in Maharash-
tra, Punjab, Tamil Nadu, Haryana, Gujarat, Delhi, Jharkhand, West Bengal, Karnataka, and Andhra Pradesh. These clusters
contribute significantly to regional economic development and job creation.

(v) Towards Industry 4.0 and Sustainable Growth: Leading forging companies are actively embracing Industry 4.0 princi-
ples—leveraging digitalisation, data analytics, and connectivity to enhance productivity and operational efficiency. This
transition reflects the industry’s adaptability, technical expertise, and readiness to meet global standards.
As India continues its journey toward becoming a global manufacturing hub, the forging industry stands well-positioned
to capitalise on emerging opportunities while navigating evolving market dynamics and external challenges. By embrac-
ing innovation, diversification, and sustainability, the sector is charting a path toward long-term growth and global com-
petitiveness.

B. INDIAN FORGING INDUSTRY:

(i) A Strategic Driver of Economic Growth: The Indian forging industry plays a vital role in propelling the nation’s econom-
ic development. With roots tracing back to ancient times, the sector has transformed into a technologically advanced and
dynamic industrial base. Comprising approximately 400 units—predominantly located in the western and northern re-

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Company supports this transformation by delivering reliable, indigenous solutions that reduce import dependence and
enhance domestic manufacturing capabilities.
B. Petrochemicals: Petrochemical plants operate in high-temperature and high-pressure environments, requiring robust
and durable components for refining, cracking, storage, and transportation processes. Paramount supplies flanges, noz-
zles and valve bodies that meet stringent safety, efficiency, and environmental compliance standards.
The Company is well-positioned to benefit from growing domestic and global demand for petrochemical products, driven
by the packaging, automotive, and construction sectors, as well as from investments in advanced petrochemical facilities
focusing on efficiency and sustainability.
C. Heavy Engineering & Infrastructure: Heavy engineering projects, including power plants, steel mills, cement factories,
and infrastructure equipment, require large, custom-designed forgings with exceptional strength and durability. Para-
mount manufactures gearing blanks and support structures that are integral to heavy-duty machinery and structural
systems.

India’s focus on infrastructure expansion, renewable energy, and industrial modernisation is creating sustained demand
for such components, where the Company’s manufacturing expertise and flexibility in handling large dimensions offer a
competitive edge.
D. Aerospace & Defence: The aerospace and defence sector requires lightweight yet high-strength forgings capable of
meeting stringent metallurgical and dimensional tolerances for safety-critical applications. Paramount produces struc-
tural components, rings, and precision parts for aircraft, missiles, naval systems, and armoured vehicles.
With government initiatives like “Atmanirbhar Bharat” and growing defence procurement under Make in India, demand
for indigenously manufactured, high-performance forgings are on the rise. The Company’s ability to deliver customised,
certified components positions it as a trusted partner in these strategic sectors.
Driven by an infrastructure-focused growth strategy, steel demand in India is expanding at a strong pace. This growth is
further bolstered by significant advancements in key user industries, particularly building & construction, and infrastruc- E. Nuclear Power: Nuclear power plants require components that can perform reliably under intense radiation, high pres-
ture. In FY24, construction, and infrastructure accounted for an estimated 68 per cent of total steel consumption, followed sure, and elevated temperatures over extended lifespans. Paramount manufactures pressure vessel parts, flanges, and
by engineering and packaging at 22 per cent and automobiles at nine per cent. India has been a net importer of steel from structural components for nuclear applications, adhering to strict regulatory and safety standards.
April to November FY25. The decline in India’s export of finished steel during FY25 was mainly driven by gaps between
international and domestic prices. The low price in the international market during this period resulted in a low margin With India’s planned expansion of nuclear capacity as part of its clean energy roadmap, the demand for indigenously
on exports and cheaper imports. manufactured, safety-critical forgings are expected to increase significantly. The Company’s precision manufacturing ca-
pabilities make it well-suited to serve this highly specialised sector.
The government’s Steel’s Scrap Recycling Policy encourages efficient recycling of scrap. The total domestic consumption F. Railways: The railway sector depends on durable, fatigue-resistant forgings for locomotives, passenger coaches, freight
of steel scrap in India is approximately 30 Million Tones (MT), of which around 5 MT is imported. Ensuring the availability wagons, and track systems. Paramount supplies Flanges, Tyre rings, couplers, and gear blanks, all manufactured to meet
of high-quality scrap in sufficient quantities is crucial for transitioning to green steel and supporting the future growth of Indian Railways and international quality standards.
the steel industry. In addition, the use of scrap significantly reduces specific energy consumption. It also reduces the water
consumption by 40 per cent, and greenhouse gas emissions by 58 per cent. India’s rail modernisation, including high-speed rail projects, electrification, and metro expansions, is driving demand
for long-life, high-precision components. The Company’s manufacturing expertise aligns with the sector’s safety, perfor-
3. KEY SECTORS SERVED: mance, and indigenisation goals.
G. Emerging & Specialised Applications: Beyond traditional sectors, Paramount’s forging capabilities cater to renewable
Paramount Speciality Forgings Limited caters to a wide spectrum of industries where safety, performance, and reliability energy, marine, mining, and specialised industrial machinery, where custom designs, advanced materials, and high-per-
are critical. Leveraging advanced forging capabilities, stringent quality controls, and sector-specific expertise, the Compa- formance standards are critical. Continuous innovation in forging technology enables the Company to address evolving
ny manufactures precision-engineered components that meet the demanding requirements of domestic and international industrial needs and participate in new growth areas.
clients. The principal sectors served are as follows:

A. Oil & Gas: The oil and gas industry demand components capable of withstanding high pressures, extreme tempera-
tures, and corrosive operating conditions across upstream, midstream, and downstream activities. Paramount man-
ufactures flanges, valve bodies, forged rings, and other precision parts for pipelines, refineries, and processing units.
These products are designed to meet stringent technical specifications, ensuring operational safety and efficiency.

With the sector evolving towards deeper drilling, high-pressure/high-temperature (HPHT) applications, and cleaner
energy solutions such as hydrogen and carbon capture, the need for high-integrity forged products is increasing. The

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4. SEGMENT/SECTOR WISE PERFORMANCE: • The “Star Performer” Award from EEPC India during the period 2008–2010; and

The following table indicates a Segment/ Sector/Industry wise sales performance of the during the FY 2024-25. • The “Bright Beginner Performance” Award from the Kirloskar Group in 2022–2023.

Amount of Sales (Rs.

Particulars of Sales%
In Lakh) 6. SWOT ANALYSIS:
Exports 2,829.705 25.90
Petrochemicals, Chemicals & Fertilizers 2,301.313 21.06
Oil & Gas Industry 1,840.406 16.84
Heavy Engineering & Other Sectors 1,207.024 11.05
Nuclear Power 117.721 1.08
Other Infrastructure Sectors 559.372 5.12
Others 2,070.207 18.95
Total 10,925.749 100

* The above segment wise sales performance not includes the amount of Export Incentives of Rs. 67.54 (In Lakhs)

5. ABOUT THE COMPANY:

Paramount Speciality Forgings Limited (“the Company” or “PSFL”) is a legacy-driven and quality-focused manufacturer of
precision steel forgings based in India, with an industrial lineage spanning over six decades. The Company’s origin can be
traced back to 1962 through a proprietary concern named Acme Engineering Works, and it has since evolved through mul-
tiple strategic reconstitutions. It was converted into a partnership firm in 1994 under the name Paramount Forge, later into
a Limited Liability Partnership in 2019, and subsequently incorporated as a public limited company under its current name
on May 5, 2023. The Company was listed on the SME Platform of the National Stock Exchange of India (NSE Emerge) on Sep-
tember 25, 2024.

PSFL is engaged in the manufacturing of a wide range of closed-die, open-die, and ring-rolled forgings, supplied in rough
or finish-machined conditions. The Company specializes in producing high-performance forged components in weight cat-
egories ranging from 1 kilogram to 4 metric tons, tailored to stringent customer specifications and applicable national and
international standards.

The Company’s products serve critical applications in sectors such as petrochemicals, oil and gas, fertilizers, chemicals, nu-
clear power, and heavy engineering. Its product portfolio includes, among others: Tube Sheet Blanks, Forged Rings, Girth
Flanges, Tyre Rings, Spacers, Long Weld Neck Flanges, Self-Reinforced Nozzles, Valve Bodies, Bonnets, and Seats.

PSFL operates two state-of-the-art manufacturing units in the state of Maharashtra:

• A Closed-Die Forging Plant located at Kamothe, Navi Mumbai, with an installed capacity of 5,000 metric tons per annum
(MTPA); and

• A Ring Rolling and Open-Die Forging Plant located at Khalapur, Raigad District, with an installed capacity of 7,000 MTPA.
7. FINANCIAL PERFORMANCE:
Together, these facilities provide a combined forging capacity of 12,000 MTPA. The Company’s infrastructure is integrated (₹ in Lakh)
with in-house capabilities for die development, forging, CNC and VMC machining, automated heat treatment, dimensional
testing, and metallurgical quality assurance. Particulars FY 2024–25 FY 2023–24 % Variance
Revenue from Operations 10,993.26 10,280.00 6.938%
The Company adheres to robust operational systems and quality standards and is certified under ISO 9001:2015, ISO Other Income 96.84 71.74 34.987%
14001:2015, and ISO 45001:2018, demonstrating its commitment to quality, environmental compliance, and occupational Total Income 11,090.10 10,351.75 7.133%
health and safety. Operating Expenditure 10,155.55 8,990.72 12.956%
Depreciation and Amortisation Expense 142.61 415.35 -65.665%
PSFL has been recognized by the industry for its consistent performance, having received: Total Expenses 10,298.16 9,406.07 9.484%
Profit before Finance Costs, Exceptional Item, and Tax 791.94 945.68 -16.257%

72 73
 Annual Report 2024 - 25 Statutory Reports

Finance Costs 204.94 189.78 7.988% modifications.

Profit before Exceptional Item and Tax 587.00 755.90 -22.344%
Total Tax Expense 140.43 215.42 -34.811% Mitigation: Proactive compliance monitoring, investment in pollution control systems, and adherence to ISO/OSHAS-
Profit for the Year 446.57 540.48 -17.375% certified practices.
Significant Changes in Key Financial Ratios: E. Supply Chain Disruptions

Ratios FY 2024-25 FY 2023-24 % Variance Risk: Delays in raw material deliveries, transportation bottlenecks, or geopolitical events can affect operations.
Debtors Turnover 5.25 6.23 -16%
Inventory Turnover 1.74 2.06 -15.53% Mitigation: Implementing a multi-source procurement strategy, maintaining safety stocks, and securing flexible logistics
Interest Coverage Ratio (%) 455.95 717.08 -36.5% arrangements.
Current Ratio 1.57 1.21 30%
Debt-Equity Ratio 0.56 1.08 -48% F. Market Demand and Economic Cycles
Operating Profit Margin (%) 8.50 13.24 -35.80%
Net Profit Margin (%) 4.06% 5.31% -24% Risk: Demand for forged products is linked to capital expenditure cycles in industries such as oil & gas, infrastructure, and
Return on capital employed 26.40% 0.40% -34% defence, making the Company vulnerable to economic slowdowns
8. RISK MANAGEMENT​: Mitigation: Diversifying into multiple sectors, expanding export markets, and increasing focus on aftermarket/maintenance
products.
The Company recognises that proactive risk identification and mitigation are essential to safeguarding business performance
and creating long-term stakeholder value. While no formal enterprise-wide Risk Management Framework has yet been G. Technological Disruption
adopted, risk awareness is embedded in decision-making across operational, financial, and compliance functions. Senior
management periodically reviews key exposures through management discussions, project reviews, and statutory reporting, Risk: Alternative manufacturing processes or new materials could substitute conventional forgings in certain applications.
enabling timely corrective action. The Company is also evaluating the adoption of a structured framework to further
Mitigation: Investing in R&D, adopting advanced manufacturing technologies, and developing new product lines to address
strengthen its ability to anticipate and respond to emerging challenges.
emerging requirements.

The principal risks, together with ongoing mitigation measures, are as follows: H. Currency and Export Risks

A. Raw Material Price Volatility Risk: Exchange rate fluctuations can affect export realisations and imported input costs.

Risk: Steel and alloy prices are subject to global market fluctuations, which can impact cost structures and margins. Mitigation: Using forward contracts, applying natural hedging by balancing imports and exports, and regularly monitoring
currency exposures.

Mitigation: Engaging in long-term supply contracts with key vendors, maintaining buffer inventories for critical grades, I. Quality and Product Liability
and incorporating dynamic pricing mechanisms in customer agreements.
Risk: Non-conformance to stringent quality standards in safety-critical applications can lead to rejections, penalties, or
B. Energy and Utility Costs reputational damage.

Risk: Forging operations are energy-intensive, making them sensitive to electricity and fuel price increases. Mitigation: Maintaining robust quality control systems, ensuring full product traceability, and adhering to customer-specific
certification protocols.
Mitigation: Upgrading to energy-efficient furnaces, implementing waste-heat recovery systems, and diversifying energy
sources, including renewables.
9. SUSTAINABILITY INITIATIVES AND RENEWABLE ENERGY PROJECTS:
C. Skilled Workforce Dependency
In line with its ESG roadmap and commitment to reducing environmental impact, the Company has initiated its first major
Risk: Specialised forging processes require experienced manpower, and skill shortages may affect production quality and solar power project. A purchase order has been placed with a leading Pune-based solar EPC contractor for the installation of
timelines. a 1,050 kwp solar power plant under the Owned Model, ensuring long-term operational and sustainability benefits.

Mitigation: Conducting in-house training, apprenticeships, and cross-skilling programmes to reduce reliance on specific The project’s first phase will be implemented at the Khalapur facility, followed by expansion to the Kamothe facility upon
individuals. successful commissioning. The execution is structured into three stages, with full completion expected within four to five
months:
D. Regulatory and Environmental Compliance
• Phase 1: 8–10 weeks
Risk: Stricter environmental, health, and safety norms could increase operational costs or require significant process

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 Annual Report 2024 - 25 Statutory Reports

• Phase 2: 12–14 weeks • Enhancing training programs, particularly in advanced forging technologies.

• Phase 3: 16–18 weeks • Strengthening retention strategies to address industry-wide skilled labour shortages.

Design and engineering work is in progress, and statutory approvals (including from MSED) are being pursued. Once opera- 11. INFORMATION TECHNOLOGY
tional, the plant is expected to meet 30%–35% of the Company’s internal energy requirements, contributing significantly to
operational efficiency and cost savings. Information Technology (IT) plays a pivotal role in enhancing operational efficiency and accuracy within a company. With the
integration of automated machinery and industrial control systems, IT enables precise monitoring, control, and optimization
The initiative is projected to deliver substantial environmental benefits: of the forging processes, leading to improved product quality, reduced downtime, and increased production efficiency, in
addition to manufacturing automation.
• Estimated annual CO₂ emission reduction: 787,500 kg
IT supports the preparation of financial accounts through robust ERP (Enterprise Resource Planning) systems, ensuring
• Environmental equivalence: Planting approximately 36,750 trees per year. accurate, real-time financial reporting, compliance, and data-driven decision-making. For employee data management, IT
systems streamline HR functions such as payroll, attendance, performance tracking, and statutory compliance, contributing
Beyond immediate benefits, an additional 300–400 kW capacity expansion is planned for early next year, further reinforcing to better workforce planning and transparency.
the Company’s dedication to renewable energy adoption. The project is entirely self-financed and is not linked to any govern-
ment scheme, subsidy, or incentive. IT also facilitates inventory management by enabling real-time tracking of raw materials, in-process goods, and finished prod-
ucts, thus optimizing stock levels, reducing wastage, and ensuring timely procurement. Furthermore, IT supports various
10. HUMAN RESOURCES: other business functions including supply chain coordination, customer relationship management, preventive maintenance
scheduling, and data analytics, collectively enhancing productivity, reliability, and strategic planning across the organization.
At Paramount Speciality Forgings Limited (PSFL), people are recognised as the Company’s most valuable asset, whether on
the shop floor, in technical roles, or at the leadership level. Employee engagement, skill development, and workplace safety 12. INTERNAL CONTROL SYSTEMS AND THEIR ADEQUACY
are positioned as strategic priorities, directly contributing to the Company’s manufacturing excellence and customer satis-
faction. Paramount Speciality Forgings Limited (PSFL) has put in place internal financial controls commensurate with the scale, com-
plexity, and nature of its operations. These controls are designed to ensure:
As on March 31, 2025, PSFL employed 152 individuals, reflecting the scale and diversity of its manufacturing and operational
footprint. With expansion plans in place, the Company anticipates onboarding additional skilled and semi-skilled workers in • Streamlining operational processes to improve productivity and reduce inefficiencies.
FY 2025–26 to support higher production volumes and new project requirements. Recruitment efforts will be aligned with
the Company’s focus on building a resilient, multi-skilled workforce. • Embedding statutory and regulatory compliance requirements into functional workflows.

PSFL ensures comprehensive social security coverage through schemes such as the Provident Fund (PF), Employees’ State • Physical verification and monitoring of inventories, fixed assets, and other resources to prevent misuse, loss, or damage.
Insurance (ESI), and gratuity benefits. Employee well-being is further supported by health and safety programs, counselling
access, and welfare measures aimed at sustaining productivity and morale. • Multi-layered authorisation processes and periodic reconciliations to reduce financial and operational risks.

The Company is committed to fostering an inclusive and equitable workplace. In FY 2024–25, women represented 9.21% of • Ensuring timely, correct, and complete accounting records in compliance with Generally Accepted Accounting Princi-
the total workforce, held 16.67% of Board positions, and accounted for 66.67% of Key Managerial Personnel (KMPs). PSFL ples (GAAP).
ensures that all facilities are fully accessible and compliant with applicable standards, in line with its diversity objectives.
Oversight and Governance
The Company has a robust grievance redressal mechanism and a zero-tolerance policy towards harassment, supported by
continuous awareness programs. No complaints were reported during FY 2024–25, underscoring the effectiveness of pre- • The Board of Directors, through clearly defined and comprehensive policies, provides strategic direction for internal
ventive measures. control mechanisms.

PSFL holds ISO 45001:2018 certification, reflecting its commitment to the highest standards of occupational health and safe- • An Independent Audit Committee of the Board reviews the adequacy and operating effectiveness of these controls at
ty. The Company proactively identifies potential hazards, ensures compliance with statutory norms, and cultivates a culture regular intervals and ensures that corrective actions are implemented promptly.
of safety and accountability across all operations.
• A Management Committee conducts periodic reviews of control processes, investigates variances or gaps, and initiates
A comprehensive Policy Manual guides the Company’s approach to recruitment, training, performance evaluation, and em- timely remedial measures.
ployee relations. These policies are anchored in the values of discipline, integrity, collaboration, and care, and are periodically
Audit and Continuous Improvement
updated to align with evolving workforce expectations and regulatory requirements.
• Both internal and external auditors are engaged to independently assess the effectiveness of internal controls, financial
Going forward, PSFL will focus on:
reporting systems, and compliance processes.
• Expanding its skilled workforce to meet growing production needs.
• Recommendations from audit reviews are systematically implemented, and follow-up audits are conducted to verify

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 Annual Report 2024 - 25 Statutory Reports

compliance with agreed corrective actions. Annexure – II

• The Company invests in upgrading systems and processes to align with industry best practices, evolving business re-
quirements, and emerging risk areas. FORM NO. MR-3

For FY 2024–25, the Board, based on reviews by the Audit Committee and independent internal auditors, has found the SECRETARIAL AUDIT REPORT
Company’s internal financial controls to be adequate and operating effectively. These controls continue to evolve to meet the
demands of business expansion, regulatory changes, and technological advancements, ensuring that PSFL remains compli- PARAMOUNT SPECIALITY FORGINGS LIMITED
ant, secure, and resilient.
For the Financial Year Ended 31st March, 2025

[Pursuant to Section 204(1) of the Companies Act, 2013 and Rule No. 9 of the Companies (Appointment
CAUTIONARY STATEMENT
and Remuneration Personnel) Rules, 2014]
The statements made in the Management Discussion and Analysis Report, which may qualify as forward-looking under applica- To,
ble laws and regulations, are based on current expectations and projections regarding future events. However, actual outcomes The Members,
may differ materially from those anticipated or implied. Key factors that could impact the Company’s operations include global PARAMOUNT SPECIALITY FORGINGS LIMITED
geopolitical developments, domestic economic conditions, industry-specific demand and supply dynamics, input costs, changes 3, 1, Guru Himmat Building,
in government policies and tax legislation, as well as other considerations such as industrial relations. The Management does not Dr. Mascarenhas Road, Anjirwadi, Mazgaon,
provide any assurance that these forward-looking statements will materialize. Mumbai,Maharashtra, India, 400010

We have conducted the secretarial audit of the compliance of applicable statutory provisions and the adher-
ence to good corporate practices by PARAMOUNT SPECIALITY FORGINGS LIMITED having CIN L24109MH-
2023PLC402307 ( hereinafter called the Company ) for financial year from April 01st, 2024 to March 31st, 2025
(hereinafter referred to as “the Audit Period”). Secretarial Audit was conducted in a manner that provided us a rea-
sonable basis for evaluating the corporate conducts/statutory compliances and expressing our opinion thereon.

Based on our 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 representatives during
the conduct of secretarial audit and as per the explanations given to us and the representations made by the Management of the
Company, we hereby report that in our opinion, the Company had during the Audit Period generally complied with the statutory
provisions listed hereunder and also that the Company had proper Board-processes and compliance-mechanism in place to the
extent, in the manner and subject to the reporting made hereinafter:

We have examined the books, papers, minute books, forms and returns filed during the Audit Period and other records made
available to us and maintained by the Company and as shown to us during our audit and according to the provisions of the fol-
lowing laws:

1) The Companies Act, 2013 and the Rules made there under.

2) The Securities Contracts (Regulation) Act, 1956 (‘SCRA’) and the rules made thereunder
3) The Depositories Act, 1996 and the Regulations and Bye-laws framed thereunder;
4) The following Regulations and Guidelines prescribed under the Securities and Exchange Board of India Act, 1992 (‘SEBI
Act’):-

78 79
 Annual Report 2024 - 25 Statutory Reports

a. The Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, We further report that:
2011;
1. The Directors have complied with the requirements as to disclosure of interests and concerns in contracts and arrange-
b. The Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2018
ments, shareholdings / debenture holdings and directorships in other companies and interests in other entities;
c. The Securities and Exchange Board of India (Prohibition of Insider Trading) Regulations, 2015;
2. The Directors have complied with the disclosure requirements in respect of their eligibility of appointment, their being in-
d. The Securities and Exchange Board of India (Share Based Employee Benefits) Regulations, 2014 (Not applicable dependent and compliance with the Code of Business Conduct & Ethics for Directors and Management Personnel;
to the Company during the audit period);
3. The Company has obtained all necessary approvals under the various provisions of the Act; and
e. The Securities and Exchange Board of India (Issue and Listing of Debt Securities) Regulations, 2008 (Not appli-
cable to the Company during the audit period);
4. There was no prosecution initiated during the year under review under the Companies Act and Rules, Regulations and
f. The Securities and Exchange Board of India (Registrars to an Issue and Share Transfer Agents) Regulations, Guidelines framed under these Acts against / on the Company, its Directors and Officers though some forms were uploaded
1993 regarding the Companies Act and dealing with client. with late filing fees.

g. The Securities and Exchange Board of India (Delisting of Equity Shares) Regulations, 2009 (Not applicable to
We further report that
the Company during the audit period);

h. The Securities and Exchange Board of India (Buyback of Securities) Regulations, 1998 (Not applicable to the The Board of Directors of the Company is duly constituted with proper balance of Executive Directors, Non-Executive Directors.
Company during the audit period); The changes in the composition of the Board of Directors that took place during the audit period were carried out in compliance
with the provisions of the Act.
i. The Securities and Exchange Board of India (Listing Obligation and Disclosure Requirements) Regulations,
2015;
Adequate notice were given to directors to schedule the Board Meetings, committee meetings, agenda along with the detailed
5) Foreign Exchange Management Act, 1999 and the rules and regulations made there under to the extent of Foreign Direct notes on agenda were also sent in advance of seven days, however a system exists for seeking and obtaining further information
Investment, Overseas Direct Investment and External Commercial Borrowings; and clarifications on the agenda items before the meeting and for meaningful participation at the meeting.
6) The Company has identified the following laws as specifically applicable to the company: Decisions at the Board Meetings were taken unanimously.
a. The Payment of Wages Act, 1936
We further report that as per the explanations given to us and the representations made by the management and relied upon by
b. Employee’s State Insurance Act, 1948 us, there are adequate systems and processes in the Company commensurate with the size and operations of the Company to
c. The Employee’s Provident Fund and Miscellaneous Provisions Act, 1952 monitor and ensure compliance with applicable laws, rules, regulations and guidelines.

d. The Payment of Bonus Act, 1965 We further report that during the audit period the company has not done any such events mentioned below:

e. The Payment of Gratuity Act, 1972 a. Redemption / buy-back of securities

f. The Motor Vehicle Act, 1988 b. Merger / amalgamation / reconstruction, etc.
c. Foreign technical collaborations
g. Food Safety and Standards Act, 2006
We have also examined compliance with the applicable clauses of the following: We further report that during the audit period, the company had following events as mentioned below:

1. Listing on Stock Exchange:

I. Secretarial Standards issued by The Institute of Company Secretaries of India;
During the audit period, the Company has successfully listed its equity shares on the National Stock Exchange of India Limited
(NSE). The listing was carried out in compliance with applicable provisions of the Securities Contracts (Regulation) Act,
II. The Listing Agreements entered into by the Company with National Stock Exchange(s);
1956, the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and other applicable laws. Necessary
During the Audit Period and as per the explanation and clarification given to us and the representations made by the man- approvals from regulatory authorities were obtained, and disclosures were duly made as per statutory requirements.
agement, the Company had generally complied with the provisions of the Act, Rules, Regulations, Guidelines etc. mentioned
above, except we have observed a few minor deviations which including typographical errors in minutes.

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 Annual Report 2024 - 25 Statutory Reports

2. Allotment of Equity Shares: ANNEXURE – A

During the audit period, the Company has allotted 48,02,000 (Forty-Eight Lakh Two Thousand) equity shares pur-
suant to Initial Public Offer and 6,80,000 (Six Lakhs Eighty Thousand) equity shares by the selling shareholder, in
(To the Secretarial Audit Report of PARAMOUNT SPECIALITY FORGINGS LIMITED for the
compliance with the applicable provisions of the Companies Act, 2013, the SEBI regulations, and other applicable laws.
The necessary approvals of the Board of Directors, shareholders, and regulatory authorities were duly obtained, and financial year ended March 31st, 2025)
the allotment was made in accordance with prescribed procedures.
To,
For Amit Dharmani & Associates The Members,
Place: Ujjain
PARAMOUNT SPECIALITY FORGINGS LIMITED
Date: 22/08/2025 Company Secretaries 3, 1, Guru Himmat Building,
Dr. Mascarenhas Road, Anjirwadi, Mazgaon,
Sd/- Mumbai,Maharashtra, India, 400010
Amit Dharmani Our Secretarial Audit Report for the financial year 31st March, 2025 is to be read along with this letter.
Proprietor
ICSI Fellow Membership No.: 12050 Management’s Responsibility:-
ICSI Certificate of Practice No.: 18179
UDIN: F012050G001061538 1. It is the responsibility of the management of the Company to maintain secretarial records, devise proper systems to ensure
Unique Identification No.: S2017MP474100 compliance with the provisions of all applicable laws and regulations and to ensure that the systems are adequate and operate
Peer review certificate number: 996/2020 effectively.

Auditor’s Responsibility:-
This report is to be read with our letter of even date which is annexed as ANNEXURE A and forms an integral
part of this report. 2. Our responsibility is to express an opinion on these secretarial records, standards and procedures followed by the Company
with respect to secretarial compliances.

3. We believe that audit evidence and information obtained from the Company’s management is adequate and appropriate for
us to provide a basis for our opinion.

4. Wherever required, we have obtained the management’s representation about the compliance of laws, rules and regulations
and happening of events etc.

Disclaimer:-

5. The Secretarial Audit Report is neither an assurance as to the future viability of the Company nor of the efficacy or effective-
ness with which the management has conducted the affairs of the Company.

6. We have not verified the correctness and appropriateness of financial records and books of account of the Company.
For Amit Dharmani & Associates
Company Secretaries
Place: Ujjain
Date: 22/08/2025
Sd/-
Amit Dharmani
Proprietor
ICSI Fellow Membership No.: 12050
ICSI Certificate of Practice No.: 18179
UDIN: F012050G001061538
Unique Identification No.: S2017MP474100
Peer review certificate number: 996/2020
82 83
 Annual Report 2024 - 25 Statutory Reports

ANNEXURE-III Information as per Rule 5 of Chapter XIII, the Companies (Appointment and Remuneration of Managerial Personnel)
Rules, 2014

Details of Employees as per Rule 5(2) of the Companies (Appointment and Remuneration of Managerial Personnel)
INFORMATION PURSUANT TO SECTION 197 (12) OF THE COMPANIES ACT, 2013 READ WITH RULE 5 (1) OF THE COMPA- Rules, 2014 and also Top 10 employees in terms of remuneration drawn during the year 2024-25:
NIES (APPOINTMENT AND REMUNERATION OF MANAGERIAL PERSONNEL) RULES, 2014
Name of Designation Educational Age Experience Date of Remuneration Previous The percentage of equity
1. Ratio of remuneration of each director to the median remuneration of employees: Employee Qualification Joining in FY 2024-25 shares held by the
(in yrs) (in years) (In ₹ Lakh) employment employee in the Company
within the meaning of
Name of the Director Designation Ratio clause (iii) of
Mr. Aliasgar Roshan Hararwala Managing Director 6.36
sub-rule (2) of rule 5 of
Mr. Aliasgar Abdulla Bhagat Director 6.36 companies (Appointment
Mr. Mohammed Salim Hararwala Director 5.20 and remuneration of
managerial personnel)
Mr. Kurian Pallathuseril Chandy Independent Director 0.30 rules, 2014

Mr. Nimesh Mukerji Independent Director 0.30 Aliasgar R. Managing MBA 47 28 05-05-23 21,00,000 - 12.48
Hararwala Director
Ms. Apurva Pradeep Joshi Independent Director 0.30
Aliasgar A. Director SSC 70 51 05-05-23 21,00,000 - 8.24
Bhagat
2. The percentage increase in remuneration of each Director, Chief Financial Officer, CEO, Manager, Company Secretary in the
Roshan A. Promoter Graduation 88 51 05-05-23 21,00,000 - 8.24
financial year:
Hararwala
Zahid M. Promoter Graduation 34 6 05-05-23 21,00,000 - 10.30
Name of the Directors, Chief Financial Designation % Increase Hararwala
Officer, Company Secretary Abdulla A. Promoter Graduation 43 21 05-05-23 21,00,000 - 12.37
Mr. Aliasgar Roshan Hararwala Managing Director 0 Bhagat

Mr. Aliasgar Abdulla Bhagat Director 0 Madan Quality Con- Diploma 55 34 05-05-23 20,65,200 - -
Karkhanis trol Manager
Mr. Mohammed Salim Hararwala Director 0
Umesh Panchal Production Diploma 46 26 05-05-23 19,28,400 - -
Mr. Kurian Pallathuseril Chandy Independent Director 0 Manager

Mr. Nimesh Mukerji Independent Director 0 Sachin Vaidya Maintenance Diploma 47 21 05-05-23 18,88,800 - -
Manager
Ms. Apurva Pradeep Joshi Independent Director 0
Farkhanda CFO Graduation 52 31 05-05-23 16,97,400 - -
Ms. Farkhanda Abdul Razak Pagarkar Chief Financial Officer 8.64% Pagarkar

Ms. Ankita Anil Patankar Company Secretary & Compliance Officer 0 Mohammed Director Diploma 46 26 05-05-23 17,16,000 - 6.86
Hararwala
Note: Sitting fees paid to the Directors have not been considered as remuneration.
Notes:
3. The percentage increase in the median remuneration of employees in the financial year: 16.03%
1. Apart from Mr. Aliasgar R. Hararwala, Mr. Roshan A. Hararwala, Mr. Zahid M. Hararwala, Mr. Mohammed S. Hararwala, Mr.
4. The number of permanent employees on the rolls of company: 152
Aliasgar Abdulla Bhagat and Abdulla Aliasgar Bhagat all employees mentioned above are neither relative of any directors of
5. Average percentile increase already made in the salaries of employees other than the managerial personnel (KMP) in the last the Company, nor hold 2% or more of the paid-up equity share capital of the Company as per Clause (iii) of sub-rule (2) of
financial year and its comparison with the percentile increase in the managerial remuneration and justification thereof and Rule 5 of the Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014.
point out if there are any exceptional circumstances for increase in the managerial remuneration: 16.03%
6. Affirmation that the remuneration is as per the remuneration policy of the Company: Yes

84 85
 Annual Report 2024 - 25 Statutory Reports

Compliance Certificate as required under Regulation 17(8) of SEBI have been no material weaknesses in internal controls over financial reporting including any correc-
tive actions with regard to deficiencies.
(Listing Obligations and Disclosure Requirements) Regulations, 2015 b) Any significant changes in internal controls during the year covered by this report.
c) All significant changes in accounting policies during the year, if any, and the same have been disclosed
in the notes to the financial statements.
The Board of Directors d) Any instances of significant fraud of which we are aware, that involve the Management or other em-
ployees who have a significant role in the Company’s internal control system.
Paramount Speciality Forgings Limited 7. We affirm that we have not denied any personnel access to the audit committee of the Company (in respect
of matters involving alleged misconduct) and we have provided protection to whistle blowers from unfair
We hereby certify that: termination and other unfair or prejudicial employment practices.
1. We have reviewed the Balance Sheet as at March 31, 2025, Statement of Profit and Loss, the Statement of Changes 8. We further declare that all Board members and senior management personnel have affirmed compliance with
in Equity and the Statement of Cash Flows for the year then ended, and a summary of the significant accounting the Code of Conduct and Ethics for the year covered by this report.
policies and other explanatory information of the Company, and the Board’s report for the year ended March 31,
2025.

2. These statements do not contain any materially untrue statement or omit to state a material fact necessary to Sd/- Sd/-
make the statements made, in light of the circumstances under which such statements were made, not mislead- Aliasgar Roshan Hararwala Farkhanda Abdul Razak Pagarkar
ing with respect to the period covered by this report. Managing Director Chief Financial Officer
DIN: 00334957
3. The financial statements, and other financial information included in this report, present in all material respects
a true and fair view of the Company’s affairs, the financial condition, results of operations and cash flows of the Place: Mumbai Place: Mumbai
Company as at, and for, the periods presented in this report, and are in compliance with the existing accounting Date: August 23, 2025 Date: August 23, 2025
standards and / or applicable laws and regulations.

4. There are no transactions entered into by the Company during the year that are fraudulent, illegal or violate the
Company’s Code of Conduct and Ethics, except as disclosed to the Company’s auditors and the Company’s audit
committee of the Board of Directors.

5. We are responsible for establishing and maintaining disclosure controls and procedures and internal controls
over financial reporting for the Company, and we have:
a) Designed such disclosure controls and procedures or caused such disclosure controls and procedures
to be designed under our supervision to ensure that material information relating to the Company, is
made known to us by others within those entities, particularly during the period in which this report
is being prepared.
b) Designed such internal control over financial reporting, or caused such internal control over financial
reporting to be designed under our supervision, to provide reasonable assurance regarding the reli-
ability of financial reporting and the preparation of financial statements in accordance with account-
ing principles generally accepted in India including the Accounting Standards.
c) Evaluated the effectiveness of the Company’s disclosure, controls and procedures.
d) Disclosed in this report, changes, if any, in the Company’s internal control over financial reporting
that occurred during the Company’s most recent fiscal year that has materially affected, or is reason-
ably likely to materially affect, the Company’s internal control over financial reporting.

6. We have disclosed, based on our most recent evaluation of the Company’s internal control over financial report-
ing, wherever applicable, to the Company’s auditors and the audit committee of the Company’s Board (and per-
sons performing the equivalent functions):
a) Any deficiencies in the design or operation of internal controls, that could adversely affect the Com-
pany’s ability to record, process, summarize and report financial data, and have confirmed that there

86 87
 Annual Report 2024 - 25 Statutory Reports

CERTIFICATE OF NON-DISQUALIFICATION OF DIRECTORS

(pursuant to Regulation 34(3) and Schedule V Para C clause (10) (i) of the SEBI (Listing Obligations and Disclosure Ensuring the eligibility of the appointment / continuity of every Director on the Board is the responsibility
Requirements) Regulations, 2015) of the management of the Company. Our responsibility is to express an opinion on these, based on our
verification. This certificate is neither an assurance as to the future viability of the Company nor of
the efficiency or effectiveness with which the management has conducted the affairs of the Company.
To,
The Members of
Paramount Speciality Forgings Limited For CS Amit Dharmani & Associates
3, 1, Guru Himmat Building, Place: Ujjain Practicing Company Secretaries
Dr. Mascarenhas Road, Anjirwadi, Date: August 13th, 2025
Mazgaon, Mazgaon, Mumbai, Sd/-
Maharashtra, India, 400010. Amit Dharmani
Proprietor
We have examined the relevant registers, records, forms, returns and disclosures received from the Directors of FCS: 12050 CP: 18179
Paramount Speciality Forgings Limited having CIN L24109MH2023PLC402307 and having registered office at 3, 1, UDIN: F012050G000998409
Guru Himmat Building, Dr. Mascarenhas Road, Anjirwadi, Mazgaon, Mazgaon, Mumbai, Mumbai, Maharashtra, PR No.: 996/202
India, 400010 (hereinafter referred to as ‘the Company’), produced before me by the Company for the purpose
of issuing this Certificate, in accordance with Regulation 34(3) read with Schedule V Para-C Sub clause 10(i) of
the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.

In our opinion and to the best of our information and according to the verifications (including Directors Identification Number
(DIN) status at the portal www.mca.gov.in) as considered necessary and explanations furnished to us by the Company &
its officers, we hereby certify that none of the Directors on the Board of the Company as stated below for the Financial
Year ending on 31stMarch, 2025 have been debarred or disqualified from being appointed or continuing as Directors of
companies by the Securities and Exchange Board of India, Ministry of Corporate Affairs, or any such other Statutory Authority.

Sr. No. Name of Director DIN Date of appointment

in Company
1. ALIASGAR ABDULLA BHAGAT 00335869 05-05-2023
2. ALIASGAR ROSHAN HARARWALA 00334957 05-05-2023
3. MOHAMMED SALIM HARARWALA 00335357 05-05-2023
4. KURIAN PALLATHUSERIL CHANDY 00855226 28-09-2023
5. APURVA PRADEEP JOSHI 06608172 28-09-2023
6. NIMESH MUKERJI 07705885 28-09-2023
*the date of appointment is as per the MCA Portal.

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 Annual Report 2024 - 25 Financial Statements

INDEPENDENT AUDITOR’S REPORT

Key Audit Matters Principal Audit Procedures performed
TO THE MEMBERS OF PARAMOUNT SPECIALITY FORGINGS LIMITED.

Report on the Audit of Financial Statements Understood and evaluated the design and operating
effectiveness of controls over physical count and measurement
Opinion The total inventory as at March 31, 2025 amounts to Rs. of such inventory
4627.74 Lakhs, which represented approximately 39.74% of
We have audited the accompanying financial statements of PARAMOUNT SPECIALITY FORGINGS LIMITED (“the Company”), Company’s total assets. Have physically observed inventory measurement and
which comprises the Balance Sheet as at March 31, 2025, the Statement of Profit and Loss and the Cash Flow Statement The Company deals with various types of forged components count procedures carried out by Management, to ensure its
for the year then ended, and notes to the financial statements, including a summary of significant accounting policies and including Flanges, Non-standard forgings, Valve components, appropriateness and completeness. Our audit procedures also
other explanatory information (hereinafter referred to as the “financial statements”). Various types of rings and other customized forgings in all included obtaining and inspecting, inventory measurement
grades of Carbon, Alloy, Stainless, Duplex, Super Duplex and and physical count results for such inventories, including
In our opinion and to the best of our information and according to the explanations given to us, the aforesaid financial other Nickel Alloy based material. Raw material used for assessing and evaluating the results of analysis performed
statements give the information required by the Companies Act, 2013 (the “Act”) in the manner so required and give a manufacturing these items is various types of metallic bars. by Management in respect of differences between book and
true and fair view in conformity with the Accounting Standards prescribed under section 133 of the Act read with the The entire inventory valuation (RM, WIP, FG) is manually physical quantities. We have also verified that the physical
Companies (Accounting Standards) Rules, 2021, as amended and other accounting principles generally accepted in India, ascertained. verification differences are appropriately accounted for in the
of the state of affairs of the Company as at March 31, 2025, the profit and its cash flows for the year ended on that date. The measurement of raw material i.e. metallic bars, used books of accounts.
by Company involve certain calculations/ volumetric
Basis for Opinion: measurements converting no. of bars in Kgs with the details Have obtained overheads working from Management,
like length and breadth of the bar. Similarly, FG and WIP is verified that all manufacturing expenses incurred are included
We conducted our audit of the financial statements in accordance with the Standards on Auditing (SAs) specified under derived in Kgs by Management. in overheads working and verified the basis of apportioning
section 143(10) of the Act. Our responsibilities under those Standards are further described in the Auditor’s Responsibilities Fixed and Variable Overheads are identified and apportioned of overhead cost thus calculated to WIP and FG based on
for the Audit of the Financial Statements section of our report. We are independent of the Company in accordance with to WIP and FG based on normal capacity/ actual production. normal capacity/ actual production.
the Code of Ethics issued by the Institute of Chartered Accountants of India (ICAI) together with the ethical requirements Therefore, we have considered the value of the inventory as
that are relevant to our audit of the financial statements under the provisions of the Act and the Rules thereunder, and we a key audit matter given the relative size of the balance in the Have verified the valuation of closing Inventories as per
have fulfilled our other ethical responsibilities in accordance with these requirements and the Code of Ethics. We believe financial statements. the Company’s accounting policy and in accordance with
that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on the financial applicable accounting standard.
statements.
Key Audit Matters
Information Other than the Financial Statements and Auditor’s Report Thereon
Key Audit Matters are those matters that, in our professional judgment, were of most significance in our audit of the The Company’s Board of Directors is responsible for the other information. The other information comprises the information
financial statements of the current year. These matters were addressed in the context of our audit of the financial statements included in the Company director’s report but does not include the financial statements and our auditor’s report thereon.
as a whole, and in forming our opinion thereon and we do not provide a separate opinion on these matters. The other information as specified above is expected to be made available to us after the date of this auditor’s report.

We have determined the matters described below to be the key audit matters to be communicated in our report. Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained
during the course of our audit or otherwise appears to be materially misstated. If, based on the work we have performed,
we conclude that there is a material misstatement of this other information, we are required to communicate the matter
to those charged with governance.
Management’s Responsibility for the Financial Statements

The Company’s Board of Directors is responsible for the matters stated in Section 134(5) of the Act with respect to the
preparation of these financial statements that give a true and fair view of the financial position, financial performance
and cash flows of the Company in accordance with the accounting principles generally accepted in India including the
Accounting Standards prescribed under section 133 of the Act, read with relevant rules issued thereunder.

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 Annual Report 2024 - 25 Financial Statements

This responsibility also includes maintenance of adequate accounting records in accordance with the provisions of the whether the financial statements represent the underlying transactions and events in a manner that achieves fair
Act for safeguarding the assets of the Company and for preventing and detecting frauds and other irregularities; selection presentation.
and application of appropriate accounting policies; making judgments and estimates that are reasonable and prudent;
and design, implementation and maintenance of adequate internal financial controls, that were operating effectively for Materiality is the magnitude of misstatements in the financial statements that, individually or in aggregate, makes it probable
ensuring the accuracy and completeness of the accounting records relevant to the preparation and presentation of the that the economic decisions of the users of the financial statements may be influenced. We consider quantitative materiality
financial statements that give a true and fair view and are free from material misstatement, whether due to fraud or error. and qualitative factors in (i) planning the scope of our audit work and in evaluating the results of our work; and (ii) to
evaluate the effect of any identified misstatements in the financial statements.
In preparing the financial statements, management is responsible for assessing the Company’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of
unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to
the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our
do so.
audit.
The Board of Directors are also responsible for overseeing the Company’s financial reporting process.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements
Auditor’s Responsibilities for the Audit of the Financial Statements regarding independence, and to communicate with them all relationships and other matters that may reasonably be
thought to bear on our independence, and where applicable, related safeguards.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable Report on Other Legal and Regulatory Requirements
assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with SAs, will always
1. As required by the Companies (Auditor’s Report) Order, 2020 (“the Order”) issued by the Central Government of
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
India in terms of sub-section (11) of section 143 of the Act, we give in Annexure ‘A’ a statement on the matters
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on
the basis of these financial statements. specified in paragraphs 3 and 4 of the Order, to the extent applicable.

As part of an audit in accordance with SAs, we exercise professional judgment and maintain professional skepticism 2. As required by Section 143 (3) of the Act, we report that:
throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, (a) We have sought and obtained all the information and explanations which to the best of our knowledge and
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and belief were necessary for the purpose of our audit;
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from (b) In our opinion, proper books of account as required by law have been kept by the Company so far as appears
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, from our examination of those books, except for the matter stated in paragraph 2(h) (vi) below on reporting
misrepresentations, or the override of internal control. under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.

• Obtain an understanding of internal financial controls relevant to the audit in order to design audit procedures that (c) The Balance Sheet, Statement of Profit and Loss and the Statement of Cash Flow Statement dealt with by this
are appropriate in the circumstances. Under Section 143(3)(i) of the Act, we are also responsible for expressing our Report are in agreement with the books of account;
opinion on whether the Company has adequate internal financial controls with reference to financial statements in
place and the operating effectiveness of such controls. (d) In our opinion, the aforesaid financial statements comply with the Accounting Standards specified under
Section 133 of the Act, read with the relevant rules issued thereunder.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related (e) On the basis of the written representations received from the directors as on March 31, 2025 taken on record
disclosures made by Management. by the Board of Directors, none of the directors is disqualified as on March 31, 2025 from being appointed as
a director in terms of Section 164 (2) of the Act;
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast (f) The observations relating to the maintenance of accounts and other matters connected therewith are as
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty stated in the sub-paragraph (b) of paragraph 2 above on reporting under Section 143(3)(b) and paragraph
exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements [h(vi)] below on reporting under Rule 11(g) of the Companies (Audit and Auditors) Rules, 2014.
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence
obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to (g) With respect to the adequacy of the internal financial controls with reference to financial statements of the
Company and the operating effectiveness of such controls, refer to our separate Report in Annexure ‘B’.
cease to continue as a going concern.
(h) With respect to the other matters to be included in the Auditor’s Report in accordance with Rule 11 of the
• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and

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 Annual Report 2024 - 25 Financial Statements

Companies (Audit and Auditors) Rules, 2014, in our opinion and to the best of our information and according
to the explanations given to us we further report that: 3. In accordance with the requirements of section 197(16) of the Act, as amended, in our opinion and to the best of
our information and according to the explanations given to us, the said section is applicable to the Company As the
i. The Company does not have any pending litigations, having an impact on its financial position in its financial remuneration paid/payable to the Directors of the Company exceeded the overall limit i.e. 11% of the net profits
statements. of the Company, a Special Resolution had been passed in pursuant to section 197 of the Act in the Extra Ordinary
General meeting held on May 27, 2023.
ii. The Company did not have any material foreseeable losses on long term contracts including derivative
contracts requiring provision under the applicable law or accounting standards.

iii. There were no amounts required to be transferred to the Investor Education and Protection Fund by the FOR KALYANIWALLA & MISTRY LLP
Company. CHARTERED ACCOUNTANTS
Firm Reg. No.: 104607W / W100166
iv. a) The Management has represented that, to the best of its knowledge and belief, no funds (which
are material either individually or in the aggregate) have been advanced or loaned or invested (either Sd/-
from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in Jamshed K. Udwadia
any other person(s) or entity(ies), including foreign entities (“Intermediaries”), with the understanding, PARTNER
whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or indirectly M. No. 124658
lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the UDIN: 25124658BMJKCR5544
Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Mumbai, May 29, 2025
Ultimate Beneficiaries;

b) The Management has represented that, to the best of its knowledge and belief, no

funds (which are material either individually or in the aggregate) have been received by the Company
from any person(s) or entity(ies), including foreign entity (“Funding Parties”), with the understanding,
whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend
or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding
Party (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate
Beneficiaries;

c) Based on the audit procedures that have been considered reasonable and appropriate in the circumstances,
nothing has come to our notice that has caused us to believe that the representations under sub-clause
(i) and (ii) of Rule 11(e), as provided under iv(a) and iv(b) above, contain any material misstatement.

v. The Company has neither declared nor paid any dividend during the year.

vi. Based on our examination which includes test check, the Company has used an accounting software for
maintaining its books of account for the year ended March 31, 2025, which have a feature of recording audit
trail (edit log) facility at the application level. However, the database level logs for Cloud 9 ERP was enabled
from March 07, 2025 and the audit trail has been operating throughout the year for all relevant transactions
recorded in the software, wherever the said feature was enabled.

Further, during the course of our audit, we did not come across any instance of audit trail feature being
tampered with.

With respect to reporting under Rule 11 (g) of the Companies (Audit and Auditors) Rules, 2014 on preservation
of audit trail, the Company has retained audit trail logs for Tally EL Gold from January 20th, 2024, and for
Cloud9 ERP from its implementation date, i.e., October 1st, 2024.

94 95
 Annual Report 2024 - 25 Financial Statements

Annexure ‘A’ to the Independent Auditor’s Report

ii. (a) Physical verification of inventory has been conducted at reasonable intervals by the Management. In respect of
inventory lying with third parties, these have been physically verified and substantially confirmed by them. In our
Referred to in Para 1 ‘Report on Other Legal and Regulatory Requirements’ in our Independent Auditor’s Report to the opinion, the coverage and procedure of such verification is appropriate. No discrepancies were noticed on verification
members of the Company on the financial statements for the year ended March 31, 2025. between the physical stocks and book records that were more than 10% in the aggregate of each class of inventory.
Statement on Matters Specified in paragraphs 3 and 4 of the Companies (Auditors Report) Order, 2020: (b) According to the information and explanations given to us and on the basis of our examination of the records of
the Company, the Company has been sanctioned working capital limits in excess of five crore rupees, in aggregate,
i. (a) (A) The Company has generally maintained proper records showing full particulars, including situation of Property, from banks on the basis of security of current assets. In our opinion, the quarterly returns or statements filed by the
Plant and Equipment, except for certain quantitative and descriptive information of Property Plant and Equipment; Company with such a bank are in agreement with the books of account except for the following.
(B) The Company has maintained proper records showing full particulars of Intangible Assets; Quarter ended June 30, 2024 (Amount in Lakhs)
(b) According to the information and explanations given to us the Company has a program for physical verification Balances as per Stock Balances as per books of
of Property, Plant and Equipment at periodic intervals. In our opinion, the period of verification is reasonable Particulars Differences Reasons
Statement submitted account
having regard to the size of Company and nature of its assets. Pursuant to the program, certain Property, Plant Sales 1,012.45 1,034.23 (21.78) Refer Note below
and Equipment were physically verified by the Management during the year. The discrepancies reported on such Advance to Suppliers 15.57 32.14 (16.57) Refer Note below
verification are not material and have been properly dealt with in the books of accounts. Advance from Customers 18.37 22.01 (3.64) Refer Note below
Creditors 2,525.89 2,679.77 (153.87) Refer Note below
(c) According to the information and explanations given to us and based on the audit procedures performed by us, Stock 3,387.05 3,854.21 (467.16) Refer Note below
the Company is still in process of transferring the title deeds of the immovable properties (other than immovable Debtors 1,851.79 3,162.94 (1,311.15) Refer Note below
properties where the Company is the lessee) disclosed in the financial statements, the details of same are as
mentioned below: Quarter ended September 30, 2024

Whether promotor, Reason for not Balances as per Stock Balances as per books
Description of the Gross carrying value Particulars Differences Reasons
Held in the name of director or their Period held being held in the Statement submitted of account
Property (Rs in lakhs) Sales 1,095.77 1,069.91 25.85 Refer Note below
relative name of Company
Advance to Suppliers 14.71 6.60 8.11 Refer Note below
Advance from Customers 2.26 38.34 (36.08) Refer Note below
Paramount Speciality Creditors 2,295.17 2,750.33 (455.16) Refer Note below
Freehold Land 42.87 No May 5, 2023 Refer Note below
Forgings LLP Stock 2,988.47 4,119.74 (1,131.27) Refer Note below
Debtors 1,846.63 1,586.34 (260.29) Refer Note below
Building (Factory,
Paramount Speciality
Office and Residen- 1,125.52 No May 5, 2023 Refer Note below
Forgings LLP Quarter ended December 31, 2024 (Amount in Lakhs)
tial Building)
Balances as per Stock Balances as per books of
Paramount Speciality Particulars Differences Reasons
Leasehold property 10.26 No May 5, 2023 Refer Note below Statement submitted account
Forgings LLP Sales 1,279.85 1,274.57 5.28 Refer Note below
Advance to Suppliers 18.15 8.29 9.86 Refer Note below
Note: Title deeds are held in the name of erstwhile LLP and is in process of being transferred. Advance from Customers 19.55 32.57 (13.02) Refer Note below
Creditors 2,301.87 2,974.90 (673.02) Refer Note below
(d) According to the information and explanations given to us, and based on records of the Company examined by us, Stock 4,208.94 3,854.21 (354.73) Refer Note below
Debtors 2,393.18 2,107.79 (285.39) Refer Note below
the Company has not revalued any of its Property, Plant and Equipment or intangible assets or both during the year
and therefore the provisions of clause 3 (i) (d) of the Order are not applicable. Quarter ended March 31, 2025 (Amount in Lakhs)
(e) According to the information and explanations provided to us and based on records of the Company examined
Balances as per Stock Balances as per books of
by us, no proceedings have been initiated during the year or are pending against the Company as at March 31, Particulars Differences Reasons
Statement submitted account
2025, for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 and rules made Sales 1,171.61 1,156.71 14.9 Refer Note below
thereunder. Accordingly, the provisions of clause 3 (i) (e) of the Order are not applicable. Advance to Suppliers 9.27 5.85 3.41 Refer Note below

96 97
 Annual Report 2024 - 25 Financial Statements

Advance from Customers 12.47 53.92 (41.45) Refer Note below Employee State Insurance
ESIC Act, 1948 0.02 Jun-2024 15-Jul-24 -
Creditors 2,408.22 3,088.17 (679.95) Refer Note below Corporation
Stock 4,882.38 4,627.74 (254.64) Refer Note below Employee State Insurance
ESIC Act, 1948 0.01 Jul-2024 15-Aug-24 -
Debtors 2,168.96 2,067.45 (101.51) Refer Note below Corporation
Employee State Insurance
ESIC Act, 1948 0.02 Aug-2024 15-Sep-24 -
Corporation
Note: Books are not closed on a monthly basis. Audit adjustments/rectifications and certain closing entries are passed
by the management, which explains the aforementioned differences.
(b) According to the information and explanation given to us and on the basis of our examination of the records of
iii. According to the information and explanations given to us and based on records of the Company examined by us, the the Company, there are no dues outstanding as on March 31, 2025, of income-tax on account of any dispute, except
Company has not made any investment in, provided any guarantee or security or granted any loans or advances in the as mentioned below :-
nature of loans, secured or unsecured, to companies, firms, limited liability partnerships or other parties during the
year. Hence, reporting under clause 3(iii) of the Order is not applicable to the Company. Name of Statue Nature of Dues Amount in Lakhs Financial Year Forum where the dispute is pending
Income Tax Act, 1961 Demand u/s 220(2) 3.67 2013-14 Assistant Commissioner of Income Tax
iv. According to the information and explanations given to us and based on records of the Company examined by us, Income Tax Act, 1961 Demand u/s 220(2) 10.57 2016-17 Assistant Commissioner of Income Tax
the Company has not granted any loans, made any investments or provided any guarantee or security to the parties Income Tax Act, 1961 Demand u/s 143(1) 5.09 2019-20 Assistant Commissioner of Income Tax
covered under section 185 and section 186 of the Act. Hence, the provisions of clause 3(iv) of the Order are not Income Tax Act, 1961 Demand u/s 220(2) 2.14 2019-20 Assistant Commissioner of Income Tax
applicable to the Company. Income Tax Act, 1961 Demand u/s 143(1) 8.56 2020-21 Assistant Commissioner of Income Tax
Income Tax Act, 1961 Demand u/s 220(2) 2.66 2020-21 Assistant Commissioner of Income Tax
v. In our opinion and according to the information and explanations given to us, the Company has not accepted or is not Income Tax Act, 1961 Demand u/s 143(1) 6.65 2023-24 Assistant Commissioner of Income Tax
holding any deposit or amounts which are deemed to be deposits during the year and hence, the directives issued by
Reserve Bank of India and the provisions of Section 73 to 76 or any other relevant provisions of the Companies Act, viii. According to the information and explanations given to us and based on records of the Company examined by us,
2013 and the Companies (Acceptance of Deposits) Rules, 2014, as amended, with regard to the deposits accepted and there were no transactions relating to previously unrecorded income that have been surrendered or disclosed as income
amounts deemed to be deposits accepted are not applicable to the Company. Accordingly, reporting under clause 3(v) during the year in the tax assessments under the Income Tax Act, 1961.
of the Order are not applicable to the Company.
ix. (a) According to the information and explanations given to us and based on records of the Company examined by us,
vi. As informed to us, Cost records have been specified by the Central Government under section 148(1) of the Act. We the Company has not defaulted in repayment of any loans or other borrowings or in the payment of interest thereon to
have broadly reviewed the books of account maintained by the Company pursuant to the Rules made by the Central any lender.
Government for the maintenance of cost records under section 148 of the Act, and are of the opinion that prima facie,
the prescribed accounts and records have been made and maintained. (b) According to the information and explanations given to us, the Company has not been declared wilful defaulter by
any bank or financial institution or other lender.
vii. (a) According to the information and explanation given to us and based on records of the Company examined by us,
the Company is generally regular in depositing undisputed statutory dues, including dues pertaining to Goods and (c) According to the information and explanations given to us and to the best of our knowledge and belief, term loans
Services tax (‘GST’), Provident fund, Employees’s State Insurance, Income-Tax, Duty of Customs, Profession Tax and availed by the Company were, applied by the Company during the year for the purposes for which the loans were
other statutory dues with the appropriate authorities, wherever applicable and there are no undisputed dues which obtained.
remained outstanding at at March 31, 2025 for a period of more than six months from the date they became payable
except as mentioned below :- (d) According to the information and explanations given to us, based on records of the Company examined by us and
representation obtained from Management, on an overall examination of the financial statements of the Company, funds
Name Nature
Period raised on short-term basis have, prima facie, not been used during the year for long-term purposes by the Company.
Amount in to which Due Date of
of the of the
Statute Dues
Lakhs the amount Date Payment (e) The Company does not have any subsidiary, associates, or joint venture. Accordingly, reporting under clause 3(ix)
relates (e) of the Order is not applicable to the Company.
EPF Act, 1952 Provident Fund 0.70 Apr-2024 15-May-24 -
EPF Act, 1952 Provident Fund 0.39 May-2024 15-Jun-24 - (f) The Company does not have any subsidiary, associates, or joint venture. Accordingly, reporting under clause 3(ix)
EPF Act, 1952 Provident Fund 0.47 Jun-2024 15-Jul-24 - (f) of the Order is not applicable to the Company.
EPF Act, 1952 Provident Fund 0.55 Jul-2024 15-Aug-24 -
EPF Act, 1952 Provident Fund 0.70 Aug-2024 15-Sep-24 - x. (a) According to the information and explanations given to us and based on records of the Company examined by us,
Employee State Insurance monies raised by the Company by way of initial public offer during the year, were applied for the purpose for which
ESIC Act, 1948 0.02 Apr-2024 15-May-24 -
Corporation they were raised, though idle/ surplus funds which were not required for immediate utilization have been gainfully
Employee State Insurance invested in fixed deposits.
ESIC Act, 1948 0.02 May-2024 15-Jun-24 -
Corporation

98 99
 Annual Report 2024 - 25 Financial Statements

(b) According to the information and explanations given to us and based on records of the Company examined by xviii. There is no resignation of the statutory auditors during the period and therefore reporting under clause 3 (xviii) of the
us, the Company has not made any preferential allotment or private placement of shares or convertible debentures Order is not applicable to the Company.
(fully, partially or optionally convertible) during the year, hence the provisions of paragraph 3 (x) (b) of the Order are
not applicable. xix. On the basis of the financial ratios, ageing and expected dates of realisation of financial assets and payment of financial
liabilities, other information accompanying the financial statements and our knowledge of the Board of Directors and
xi. (a) Based upon the audit procedures performed by us for the purpose of reporting the true and fair view of the Management plans and based on our examination of the evidence supporting the assumptions, nothing has come
financial statements and according to the information and explanations given by the Management, we report that no to our attention, which causes us to believe that any material uncertainty exists as on the date of the audit report
fraud by the Company or no fraud on the Company has been noticed or reported during the year. indicating that Company is not capable of meeting its liabilities existing at the date of balance sheet as and when they
fall due within a period of one year from the balance sheet date. We, however, state that this is not an assurance as
(b) No report under sub-section (12) of section 143 of the Companies Act has been filed in Form ADT-4 as prescribed to the future viability of the Company. We further state that our reporting is based on the facts up to the date of the
under rule 13 of Companies (Audit and Auditors) Rules, 2014 with the Central Government, during the year and upto audit report and we neither give any guarantee nor any assurance that all liabilities falling due within a period of one
the date of this report. Accordingly, reporting under Clause 3 (xi)(b) of the Order is not applicable to the Company. year from the balance sheet date, will get discharged by the Company as and when they fall due.
(c) According to information and explanations given to us and as represented to us by the Management, there are no xx. (a) There are no unspent amounts towards Corporate Social Responsibility (CSR) other than ongoing projects requiring
whistle blower complaints received by the Company during the year. a transfer to a Fund specified in Schedule VII to the Companies Act in compliance with second proviso to sub-section
(5) of Section 135 of the said Act. Accordingly, reporting under clause 3(xx)(a) of the Order is not applicable for the
xii. In our opinion and according to the information and explanations given to us, the Company is not a Nidhi Company. year.
Accordingly, reporting under clause 3(xii) (a) to (c) of the Order is not applicable to the Company.
(b) There is no amount remaining unspent under sub-section (5) of Section 135 of the Companies Act 2013 pursuant
xiii. According to the information and explanations and records made available to us by the Company and audit procedures to any ongoing project, which needs to be transferred to special account in compliance with provision of sub-section
performed by us, all transactions with the related parties are in compliance with sections 177 and 188 of the Act (6) of Section 135 of the said Act. Accordingly, provisions of paragraph 3 (xx) (b) of the Order are not applicable.
where applicable and details of such transactions have been disclosed in the financial statements, as required by the
applicable accounting standards. xxi. The Company is not required to prepare consolidated financial statements and therefore the provisions of clause 3
(xxi) of the Order are not applicable.
xiv. (a) In our opinion, the Company has an adequate internal audit system commensurate with the size of the Company.
For KALYANIWALLA & MISTRY LLP
(b) We have considered, the internal audit reports for the year under audit, issued to the Company during the year. CHARTERED ACCOUNTANTS
xv. According to the information and explanations given to us and based on our examination of the records of the Firm Regn. No.: 104607W / W100166
Company, during the period under audit, the Company has not entered into any non-cash transactions with its
Directors or persons connected with its Directors and hence provisions of section 192 of the Act are not applicable to Sd/-
the Company. Jamshed K. Udwadia
PARTNER
xvi. (a) In our opinion, according to the information and explanations given to us, the Company is not required to be M. No. 124658
registered under section 45-IA of the Reserve Bank of India Act, 1934. Accordingly, reporting under clause 3(xvi)(a) of UDIN: 25124658BMJKCR5544
the Order is not applicable to the Company. Mumbai, May 29, 2025

(b) The Company has not conducted any Non-Banking Financial or Housing Finance activities. Accordingly, reporting
under clause 3(xvi)(b) of the Order is not applicable to the Company.

(c) The Company is not a Core Investment Company (CIC) as defined in the regulations made by the Reserve Bank of
India, Accordingly, reporting under clause 3(xvi)(c) of the Order is not applicable to the Company.

(d) The Company does not have any Group as defined in the Core Investment Companies (Reserve Bank) Directions,
2016. Accordingly, reporting under clause 3(xvi)(d) of the Order is not applicable to the Company.

xvii. The Company has not incurred cash losses during the current financial year covered by our audit, however the
Company had incurred cash losses of Rs 30.84 lakhs in the immediately preceding financial year.

100 101
 Annual Report 2024 - 25 Financial Statements

Annexure ‘B’ to the Independent Auditor’s Report financial statements includes those policies and procedures that:

1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and
Referred to in Paragraph 2(g) under ‘Report on Other Legal and Regulatory Requirements’ section of our Independent dispositions of the assets of the Company;
Auditor’s Report to the members of the Company on the financial statements for the year ended March 31, 2025.
2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
Report on the Internal Financial Controls with reference to financial statements under Clause (i) of Sub-section 3 of statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the
Section 143 of the Companies Act, 2013 (‘the Act’) Company are being made only in accordance with authorisations of management and directors of the Company; and

We have audited the internal financial controls with reference to financial statements of PARAMOUNT SPECIALITY 3) provide reasonable assurance regarding prevention or timely detection of unauthorised acquisition, use, or disposition
FORGINGS LIMITED (formerly known as Paramount Speciality Forgings LLP) (“the Company”) as at March 31, 2025 in of the Company’s assets that could have a material effect on the financial statements.
conjunction with our audit of the financial statements of the Company for the year ended on that date.
Inherent Limitations of Internal Financial Controls with reference to Financial Statements
Management’s Responsibility for Internal Financial Controls
Because of the inherent limitations of internal financial controls with reference to financial statements, including the
The Company’s management is responsible for establishing and maintaining internal financial controls based on the possibility of collusion or improper management override of controls, material misstatements due to error or fraud
internal control over financial reporting criteria established by the Company considering the essential components of may occur and not be detected. Also, projections of any evaluation of the internal financial controls with reference to
internal control stated in the Guidance Note on Audit of Internal Financial Controls over Financial Reporting (the “Guidance financial statements to future periods are subject to the risk that the internal financial controls with reference to financial
Note”) issued by the Institute of Chartered Accountants of India (the ‘ICAI’). These responsibilities include the design, statements may become inadequate because of changes in conditions, or that the degree of compliance with the policies
implementation and maintenance of adequate internal financial controls that were operating effectively for ensuring the or procedures may deteriorate.
orderly and efficient conduct of its business, including adherence to Company’s policies, the safeguarding of its assets, the
prevention and detection of frauds and errors, the accuracy and completeness of the accounting records, and the timely Opinion
preparation of reliable financial information, as required under the Act.
According to the information and explanations given to us and based on our audit we are of the view that the Company
Auditors’ Responsibility needs to strengthen its documentation over standardisation of its key processes and also introduce a maker checker
concept over Payroll and Financial Closing Process.
Our responsibility is to express an opinion on the Company’s internal financial controls with reference to financial statements
of the Company based on our audit. We conducted our audit in accordance with the Guidance Note and the Standards We have been informed that the Company is in the process of strengthening its overall control on the aforesaid processes.
on Auditing prescribed under section 143(10) of the Companies Act, 2013, to the extent applicable to an audit of internal
financial controls. Those Standards and the Guidance Note require that we comply with ethical requirements and plan In our opinion, except for the possible effects of the weaknesses described above, the Company has, in all material
and perform the audit to obtain reasonable assurance about whether adequate internal financial controls with reference respects, adequate internal financial controls with respect to financial statements and such internal financial controls over
to financial statements was established and maintained and if such controls operated effectively in all material respects. financial statements were operating effectively as at March 31, 2025, based on the internal financial controls over financial
statements criteria established by the Company considering the essential components of internal control stated in the
Our audit involves performing procedures to obtain audit evidence about the adequacy of the internal financial controls Guidance Note.
system with reference to financial statements and their operating effectiveness.
We have considered the weaknesses reported above in determining the nature, timing and extent of audit tests applied in
Our audit of internal financial controls with reference to financial statements included obtaining an understanding of our audit of the March 31, 2025 financial statements of the Company and these weaknesses does not affect our opinion
internal financial controls with reference to financial statements, assessing the risk that a material weakness exists, on the financial statements of the Company.
and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. The
procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement For KALYANIWALLA & MISTRY LLP
of the financial statements, whether due to fraud or error. CHARTERED ACCOUNTANTS
Firm Regn. No.: 104607W / W100166
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion
on the Company’s internal financial controls system with respect to financial statements. Sd/-
Jamshed K. Udwadia
Meaning of Internal Financial Controls with reference to Financial Statements PARTNER
M. No. 124658
A Company’s internal financial controls with reference to financial statements is a process designed to provide reasonable UDIN: 25124658BMJKCR5544
assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes Mumbai, May 29, 2025
in accordance with generally accepted accounting principles. A Company’s internal financial controls with reference to

102 103
 Annual Report 2024 - 25 Financial Statements

Balance Sheet As at 31 March 2025 Statement of Profit and Loss for the Year Ended 31 March 2025
(Amounts in ₹ Lakhs) (Amounts in ₹ Lakhs)
Note As at As at
Particulars
No 31 March 2025 31 March 2024 Year / Period Ended "For the period
Note
I EQUITY AND LIABILITIES Particulars 31 March 2025 5 May 2023 to
1 Shareholder's Funds No
31 March 2024"
(a) Share Capital 3 1,968.20 1,488.00
(b) Reserves and Surplus 4 3,230.21 808.36
5,198.41 2,296.36 I Revenue from operations 22 10,993.26 10,280.00
2 Non-current liabilities II Other Income 23 96.84 71.74
(a) Long-term borrowings 5 19.98 25.47 III Total Income (I+II) 11,090.10 10,351.75
(b) Long-term provisions 6 32.47 56.83
52.45 82.30 IV Expenses:
3 Current liabilities (a) Cost of Materials Consumed 24(a) 7,394.44 6,739.60
(a) Short-term borrowings 7 2,897.98 2,467.34
Change in Inventories of Finished Goods, Work-in-Progress
(b) Trade payables 8 (b) 24(b) (679.31) (571.41)
(i) - Total outstanding dues of micro enterprises and small enterprises 1,049.78 806.75 and Stock-in-Trade
- Total outstanding dues of creditors other than micro enterprises and small (c) Employee benefits expense 25 785.11 664.34
(ii) 2,038.39 1,953.30
enterprises (d) Finance costs 26 204.94 189.78
(c) Other current liabilities 9 267.75 235.62 (e) Depreciation and amortization expense 27 142.61 415.35
(d) Short-term provisions 10 141.29 256.92 (f) Other expenses 28 2,655.31 2,158.18
6,395.19 5,719.93
Total 11,646.05 8,098.59
Total expenses 10,503.10 9,595.85

II ASSETS V Profit before Tax (III-IV) 587.00 755.90

1 Non-current assets
(a) Property, Plant and Equipment and Intangible assets VI Tax expense:
(i) Property, Plant and Equipment 11(a) 1,242.66 1,041.04 (a) Current tax 169.86 298.65
(ii) Intangible assets 11(b) 12.89 8.65
(b) Prior year tax adjustments (32.99) -
(iii) Capital Work in Progress 126.81 4.19
(c) Non-current investments 12 0.09 0.09
(c) Deferred tax (benefit) 3.56 (83.23)
(b) Deferred Tax Assets (net) 13 50.10 53.66 140.43 215.42
(d) Long Term Loans and Advances 14 164.12 74.17
(e) Other non-current assets 15 6.15 24.80 VII Profit for the Year/ Period (V-VI) 446.57 540.48
1,602.82 1,206.60
2 Current assets EARNINGS PER EQUITY SHARE
(a) Current Investments 16 5.00 5.00
Nominal value per share Rs. 10
(b) Inventories 17 4,627.74 3,854.21
(c) Trade receivables 18 2,060.54 1,634.77 Basic and Diluted 29 2.57 3.63
(d) Cash and bank balances 19 2,011.88 30.78
(e) Short Term Loans and Advances 20 1,238.24 1,354.81 The Notes referred above form an integral part of the financial statements
(f) Other current assets 21 99.83 12.42
10,043.23 6,891.99 As per our Report attached FOR AND ON BEHALF OF
Total 11,646.05 8,098.59 PARAMOUNT SPECIALITY FORGINGS LIMITED
FOR KALYANIWALLA & MISTRY LLP (Formerly Known as Paramount Speciality Forgings LLP)
Corporate Information 1 CIN – L24109MH2023PLC402307
CHARTERED ACCOUNTANTS
Significant accounting policies 2 Firm Reg. No.: 104607W/W100166
The Notes referred above form an integral part of the financial statements
Sd/- Sd/-
FOR AND ON BEHALF OF
As per our Report attached PARAMOUNT SPECIALITY FORGINGS LIMITED
Aliasgar R. Hararwala Aliasgar A. Bhagat
Sd/- MANAGING DIRECTOR DIRECTOR
(Formerly Known as Paramount Speciality Forgings LLP)
FOR KALYANIWALLA & MISTRY LLP CIN – L24109MH2023PLC402307 Jamshed K. Udwadia DIN: 00334957 DIN: 00335869
CHARTERED ACCOUNTANTS PARTNER
Firm Reg. No.: 104607W/W100166 Sd/- Sd/- M. No.: 124658
Aliasgar R. Hararwala Aliasgar A. Bhagat Sd/- Sd/-
MANAGING DIRECTOR DIRECTOR Mumbai, 29 May 2025
Farkhanda A. Pagarkar Ankita A. Patankar
Sd/- DIN: 00334957 DIN: 00335869
Jamshed K. Udwadia CHIEF FINANCIAL OFFICER COMPANY SECRETARY
PARTNER ICSI M.No: A57166
Sd/-
M. No.: 124658 Sd/- Ankita A. Patankar Mumbai, 29 May 2025
Mumbai, 29 May 2025 Farkhanda A. Pagarkar COMPANY SECRETARY
CHIEF FINANCIAL OFFICER ICSI M.No: A57166

104 105
 Annual Report 2024 - 25 Financial Statements

Statement of Cash Flow 1 Components of cash and cash equivalents

(Amounts in ₹ Lakhs) Cash on hand 0.14 0.19
Particulars Year/ Period ended With Banks - On Current Account 49.43 0.54
31 March 2025 31 March 2024 Fx Gain / (Loss) on Cash revaluation 1.62 0.15
A. CASH FLOW FROM OPERATING ACTIVITIES: Cash credit account (Debit balance) 1,358.95 -
Cash & Cash Equivalents considered for Cash flow 1,410.14 0.88
Net Profit Before Tax 587.00 755.90
The Cash Flow Statement has been prepared under the indirect meth-
Adjustments for: 2 od as set out in Accounting Standard (AS) -3 on Statement of Cash
Depreciation 142.61 415.35 Flow.
Loss on Fixed Assets scrapped/ sold - 2.42
Interest income (56.43) (5.90) Figures in brackets are outflows/ deductions. Previous years figures
3
Interest expense 204.94 189.78 have been regrouped whereevr necessary
Provision for doubtful Debts - 6.91
Sundry Creditors Balance written back - (8.60)
Unrealised foreign exchange (gain) 0.15 (12.63)
Operating (loss) before Working Capital changes 878.27 1,343.24
The Notes referred above form an integral part of the financial statements
Adjustments for :
(Increase)/Decrease in trade receivables (425.92) 37.77 As per our Report attached FOR AND ON BEHALF OF
(Increase) in loans and advances 41.95 (217.91) PARAMOUNT SPECIALITY FORGINGS LIMITED
(Increase) in Other current assets (75.36) (1.97) (Formerly Known as Paramount Speciality Forgings LLP)
FOR KALYANIWALLA & MISTRY LLP
(Increase) in Inventories (773.53) (1,153.02) CIN – L24109MH2023PLC402307
CHARTERED ACCOUNTANTS
Increase/ (Decrease) in trade payables 328.12 (300.10)
Increase in other current liabilities and provisions 56.35 10.07 Firm Reg. No.: 104607W/W100166
(848.39) (1,625.16) Sd/- Sd/-
Aliasgar R. Hararwala Aliasgar A. Bhagat
Cash generated from / (used in) operations: 29.88 (281.92) Sd/- MANAGING DIRECTOR DIRECTOR
Taxes Paid (net) (316.40) (152.66) Jamshed K. Udwadia DIN: 00334957 DIN: 00335869
PARTNER
Net cash (used in) operating activities (286.52) (434.58) M. No.: 124658
Sd/- Sd/-
Mumbai, 29 May 2025
Farkhanda A. Pagarkar Ankita A. Patankar
B. CASH FLOW FROM INVESTING ACTIVITIES CHIEF FINANCIAL OFFICER COMPANY SECRETARY
Purchase of Property, Plant & Equipment and Intangible assets (471.12) (42.59)
ICSI M.No: A57166
Investment in Fixed Deposits with Banks (553.17) 72.30
Interest received 44.39 3.58 Mumbai, 29 May 2025
Net cash from investing activities (979.90) 33.29

C. CASH FLOW FROM FINANCING ACTIVITIES

Interest paid (204.94) (183.29)
Proceeds from Borrowings 425.15 553.73
Proceeds from IPO 2,455.47 -

Net cash from financing activities 2,675.68 370.44

D. NET (DECREASE) IN CASH & CASH EQUIVALENTS 1,409.26 (30.84)

E. CASH AND CASH EQUIVALENTS as at the beginning of the Year/ Period 0.88 31.72
F. CASH AND CASH EQUIVALENTS as at the End of Year/ Period 1,410.14 0.88
1,409.26 (30.84)

Notes:

106 107
 Annual Report 2024 - 25 Financial Statements

NOTES TO FINANCIAL STATEMENTS The Company has changed the depreciation method from Written Down Value (WDV) method to Straight Line Method (SLM)
with effect from April 01, 2024. This change was implemented by the management to align with best practices, enhance
1 Corporate Information compliance, and improve the financial presentation of the company’s assets.

The Company is formed by conversion of a Limited Liability Partnership (“LLP”), under the provisions of Companies Act, 2013. During the year, depreciation is provided under Straight Line Method over the useful life specified in Schedule II to the
The LLP was registered as a Limited Liability Partnership pursuant to section 58(1) of the LLP Act, 2008. The Partners of the Companies Act, 2013, pro-rata to the period of use, except for leasehold improvements. The Company has used following
LLP at their meeting held on January 06, 2023, inter alia, has given their consent for adoption of table F of Schedule I of the useful lives to provide depreciation of different class of its property, plant and equipment and Intangible assets.
Companies Act, 2013, so as to convert the LLP to Public Limited Company and accordingly change the name from Paramount
Speciality Forgings LLP to Paramount Speciality Forgings Limited (the “Company”). Tangible Asset Useful lives in years
On January 9, 2023, LLP has received the name approval from Ministry of Corporate Affairs, thereafter which the LLP has filed Building 30
an application for registration under section 366, pursuant to Rule 3(2) of the Companies (Authorised to Register) Rules, 2014 Plant and Machinery 15
read with section 366 of the Companies Act, 2013. MCA has granted Certificate of Incorporation (COI) to Paramount Speciality Factory Equipment 10
Forgings Limited, public limited company w.e.f. May 05, 2023. Furniture, Fixtures and Fittings 10
The Company is into manufacturing of carbon steel and stainless steel flanges and fittings and other engineering goods made from Office Equipment 5
steel and stainless steel goods or any other goods and merchandise and allied business thereto. Computers 3
Software 3
2 Significant Accounting Policies Vehicles 8
i. Basis of Preparation of financial statements: Tools and Dies used in Press machine are capitalised and depreciated @15%.

These financial statements have been prepared and presented under the historical cost convention, in accordance with Leasehold improvements are depreciated over the lease period.
Generally Accepted Accounting Principles (Indian GAAP) on accrual basis and on principles of going concern. The accounting
policies, in all material respects, have been consistently applied by the Company. Assets individually costing less than Rs. 5,000 each are depreciated at 100% in the year of acquisition itself.

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other iv. Intangible Assets
criteria set out in Schedule III to the Companies Act, 2013. Based on the nature of product and the time between acquisition of
assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 Intangible Assets, acquired for internal use, are recognised as assets and are stated at cost less accumulated amortisation. Cost
months for the purpose of current/non-current classification of assets and liabilities. includes cost of acquisition, import duties, taxes and any expenditure directly attributable to the making of the asset ready for
its use.
ii. Use of Estimates: Subsequent expenditure incurred on existing assets is expensed out except where such expenditure increases the future economic
benefits from the existing assets, in which case the expenditure is amortised over the remaining useful life of the original asset.
The preparation of financial statements in conformity with generally accepted accounting principles in India requires
Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of v. Capital Work-in-Progress
contingent liabilities on the date of the financial statements and the reported amounts of revenues and expenses during
the reporting period. Management believes that the estimates used in the preparation of financial statements are prudent The cost of the Property, Plant and Equipment not ready for its intended use on such date, is disclosed under capital work-in-
and reasonable. Actual results could differ from those estimates. Differences between the actual results and estimates are progress. Advances paid towards the acquisition of Property, Plant and Equipment, outstanding at each balance sheet date are
recognised in the period in which the results are known/ materialized. shown under capital advances.
iii. Property Plant and Equipment, Depreciation and Amortization vi. Asset Impairment:
Property Plant and Equipment are stated at cost of acquisition or construction, less accumulated depreciation and impairment Management periodically assesses using, external and internal sources, whether there is an indication that an asset may be
losses, if any. Cost includes all expenses related to acquisition and impaired. An impairment occurs where the carrying value exceeds its recoverable amount. An impairment loss, if any, is
recognized in the period in which the impairment takes place.
installation of the concerned assets and any attributable cost of bringing the asset to the condition of its intended use excluding
Input tax credit (IGST/CGST and SGST) or other tax credit available to the Entity. Tools and Dies used in Hammers are charged vii. Operating Leases
to Profit and Loss Account.
Leases of assets under which all the risks and rewards of ownership are effectively retained by the lessor are classified as
Direct financing cost incurred during the construction period on major projects is also capitalised. operating leases. Lease payments under operating leases are recognized
Property Plant and Equipment acquired under finance lease are capitalized at the lower of their fair value and the present as an expense on a straight-line basis over the lease term.
value of the minimum lease payments.
viii. Investments
Subsequent expenditure incurred on existing Property Plant and Equipment is expensed out except where such expenditure
increases the future economic benefits from the existing assets. Investments are carried at cost. Cost of acquisition includes all costs directly incurred on the acquisition of the investment.

108 109
 Annual Report 2024 - 25 Financial Statements

Provision for diminution, if any, in the value of long-term investments is made to recognize a decline, other than of a temporary contractual requirements. This warranty is for a period of one and a half year from date of dispatch or one year from the date of
nature. Current investments are stated at lower of cost and net realisable value. commissioning of products, whichever occurs earlier, in line with client expectations and agreed terms. No warranty provision
made based on past experience where no material claims have been made by customers.
ix. Inventories:
xvi. Employee Benefits:
Raw materials are valued at lower of actual cost and net realisable value on FIFO basis.
i) Short-term Employee benefits
Work-in-progress is valued at lower of average cost of production and net realisable value. Cost of production includes cost of
material, labour and appropriate factory overheads. All employee benefits payable wholly within twelve months of rendering the service are classified as short-term employee
benefits. Benefits such as salaries, bonus etc., are recognized as an expense at the undiscounted amount in the Profit and Loss
Finished goods are valued at lower of average cost of production or net realisable value. Cost of production includes cost of Account of the period in which the employee renders the related service.
material, labour and appropriate factory overheads.
ii) Post employment benefits
Fixed and Variable Overheads are identified and apportioned to WIP and FG based on normal capacity/ actual production.
Defined Contribution Plan:
x. Cash and Cash Equivalents
Employee benefits in the form of Provident Fund is considered as defined contribution plans and the contributions are charged
Cash and Cash Equivalents includes cash in hand, bank balances and term deposits with bank having maturity term of less than to the statement of Profit and Loss of the period when the contributions to the respective funds is due.
three months.
Defined Benefit Plan:
xi. Revenue Recognition:
Retirement benefit in the form of Gratuity is considered as a defined benefit obligation. The LLP’s liability in respect of gratuity
• Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue is provided for, on the basis of actuarial valuations, using the projected unit credit method, as at the date of the Balance Sheet.
can be reliably measured. Actuarial losses / gains are recognised in the statement of profit and loss in the period in which they arise.
• Sale of goods is recognised when the control of the goods is transferred to the customer upon dispatch or delivery, in
accordance with the terms of customer contracts. Revenue is recognised at an amount that the Company expects to receive Other Long-Term Benefits
from customers that is net of returns, trade discounts, rebates, and Goods and Service Tax.
• Export incentives are accounted on accrual basis. Provision for the unutilized leave balances is accounted for on the basis of accrued liability method based on number of days
• Interest income is recognised on a time proportion basis. leave to the credit of each employee computed on the basis of last drawn basis salary.
• Given the nature of business, scrap generated is valued only on sale thereof.
The Company has no policy for accumulation of leaves.
xii. Expenditure
xvii. Taxes on Income
Expenses are accounted for on accrual basis and provision is made for all known losses and liabilities.
i. Current Tax
xiii. Borrowing Costs:
Current income tax is measured at the amount expected to be paid to taxation authorities in accordance with the provisions
Borrowing costs that are directly attributable to the acquisition of an asset that necessarily takes a substantial period of time to of the Income-tax Act, 1961.
get ready for its intended use are capitalised as part of the cost of that asset till the date it is put to use. Other borrowing costs
are recognised as an expense in the period in which they are incurred. ii. Deferred Tax

Borrowing costs also include exchange differences arising from foreign currency borrowings to the extent that they are regarded Deferred tax subject to consideration of prudence, is recognised on timing differences; being the difference between taxable
as an adjustment to interest costs. If the difference between the interest payable on local currency borrowings and interest income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.
payable on foreign currency borrowings is equal to or more than the exchange difference on the amount of principal of the Deferred tax assets on unabsorbed tax losses and tax depreciation are recognised only when there is a virtual certainty of their
foreign currency borrowings, the entire amount of exchange difference is considered as borrowing cost and are regarded as an realisation supported by convincing evidence and on other items when there is reasonable certainty of realisation. The tax
adjustment to interest cost. effect is calculated on the accumulated timing differences at the year-end based

xiv. Foreign Exchange Transactions: on the tax rates and laws enacted or substantially enacted on the balance sheet date.

Transactions in foreign currency are recorded at the exchange rates prevailing on the date of the transaction. Assets and liabilities xviii. Earnings per share
related to foreign currency transactions, remaining unsettled at the year end, are stated at the contracted rates, when covered
under forward foreign exchange contracts and at year end rates in other cases. Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the
weighted average number of equity shares outstanding during the year.
xv. Free Service Warranty Obligations: For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders
and the weighted average number of shares outstanding during the year are adjusted for the effect of all potentially dilutive
The Company provides a free warranty service to certain customers against manufacturing defects, based on client specific

110 111
 Annual Report 2024 - 25 Financial Statements

equity shares.
Notes to Financial Statements
xix. Provisions and Contingent Liabilities (Amounts in ₹ Lakhs)

Provisions are recognized when there is a present obligation as a result of a past events and it is probable that an outflow of Note 3 : Share Capital
resources embodying economic benefits will be required to settle the obligation and when a reliable estimate of the amount of Particulars As at As at
the obligation can be made. 31 March 2025 31 March 2024
SHARE CAPITAL
No Provision is recognized for : (a) AUTHORISED SHARES:
2,00,00,000 (P.Y. 2,00,00,000) Equity shares of Rs. 10 each 2,000.00 2,000.00
i. Any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence
or non-occurrence of one or more uncertain future events not wholly within the control of the Company; or (b) ISSUED, SUBSCRIBED AND FULLY PAID UP SHARES:
1,96,82,000 (P.Y. 1,48,80,000) Equity shares of Rs. 10 each fully paid 1,968.20 1,488.00
ii. Any present obligation that arises from past events but is not recognized because it is not probable that an outflow of
resources embodying economic benefits will be required to settle the obligation; or a reliable estimate of the amount of Total Paid up shares 1,968.20 1,488.00
obligation cannot be made.

xx. Segment Reporting Note 3.1 : Reconciliation for Shares

Particulars As at As at
Business Segments:
31 March 2025 31 March 2024
Reconciliation of Shares:
Based on the guiding principles given in Accounting Standard 17 (AS - 17) on Segment Reporting issued by ICAI, the
No. of shares:
Company has only one reportable Business Segment, which is manufacturing of carbon steel and stainless steel flanges
At the beginning of year 1,48,80,000 10,000
and fittings and other engineering goods made from steel and stainless steel goods or any other goods and merchandise and
Add: Bonus shares issued during the year/ period - 1,48,70,000
allied business thereto, hence no separate disclosure pertaining to attributable Revenues, Profits, Assets, Liabilities, Capital Add: Fresh shares issued during the year 48,02,000 -
employed are given. Accordingly, the figures appearing in these financial statements relate to the Company’s single Business Outstanding at the end of the year 1,96,82,000 1,48,80,000
Segment.

Amount of shareholding (in Lakhs):

At the beginning of year (Rs. 10 per share) 1,488.00 1.00
Add: Bonus shares issued during the year/ period - 1,487.00
Add: Fresh shares issued during the year 480.20 -
Outstanding at the end of the year (Rs. 10 per share) 1,968.20 1,488.00

Note 3.2 : Rights, preferences and restrictions attached to Equity Shares:

(i) The Company has only one class of equity shares having a par value of Rs. 10 per share. Each shareholder is entitled to
one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the
ensuing general meeting, except in case of interim dividend.

(ii) In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the
company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares
held by the shareholders.

Note 3.4 : Details of shareholders holding more than 5% shares of fully paid up equity shares:
Name of Shareholders As at As at
31 March 2025 31 March 2024
No. of shares held (% Holding) No. of shares held (% Holding)
Mr. Aliasgar R. Hararwala 24,56,432 12.48% 25,50,432 17.14%
Mr. Abdullah A. Bhagat 24,34,432 12.37% 25,50,432 17.14%
Mr. Zahid M. Hararwala 20,28,352 10.31% 21,26,352 14.29%

112 113
 Annual Report 2024 - 25 Financial Statements

Mr. Roshan A. Hararwala 16,22,784 8.25% 17,00,784 11.43% Securities Premium As at As at

Mr. Aliasgar A. Bhagat 16,22,784 8.25% 17,00,784 11.43% 31 March 2025 31 March 2024
Mr. Mohd. S. Hararwala 13,52,064 6.87% 14,18,064 9.53% Opening Balance - -
Mr. Hoozefa S. Hararwala 13,52,576 6.87% 14,16,576 9.52% Add: Premium Received on Fresh Issue of Shares 2,352.98 -
Mr. Abbasali S. Hararwala 13,52,576 6.87% 14,16,576 9.52% Less: Utilised towards Public Issue Expenses (377.71) -
India Equity Fund 1 10,26,000 5.21% - - Total Securities Premium 1,975.27 -
Total Shareholdings 1,52,48,000 77.47% 1,48,80,000 100%
Note 5 : Long-term Borrowings
Particulars As at As at
Note 3.5 : Details of shares held by Promoters at the end of the year/ period: 31 March 2025 31 March 2024
Name of Shareholders As at As at
31 March 2025 31 March 2024 Secured
No. of shares held (% Holding) No. of shares held (% Holding) Vehicle Loan (refer note (i)) 19.98 25.47
Mr. Aliasgar R. Hararwala 24,56,432 12.48% 25,50,432 17.14% Total Long Term Borrowings 19.98 25.47
Mr. Abdullah A. Bhagat 24,34,432 12.37% 25,50,432 17.14%
Mr. Zahid M. Hararwala 20,28,352 10.31% 21,26,352 14.29% Notes:
Mr. Roshan A. Hararwala 16,22,784 8.25% 17,00,784 11.43%
Mr. Aliasgar A. Bhagat 16,22,784 8.25% 17,00,784 11.43% (i) Vehicle Loan consists of : -
Mr. Mohd. S. Hararwala 13,52,064 6.87% 14,18,064 9.53% a) Loan of Rs. 7.20 Lakhs at floating interest rate of 8.95% p.a. The loan is repayable in 84 monthly installments of Rs. 11,565
Mr. Hoozefa S. Hararwala 13,52,576 6.87% 14,16,576 9.52% p.m.
Mr. Abbasali S. Hararwala 13,52,576 6.87% 14,16,576 9.52% b) two vehicle loans of Rs. 20 Lakhs each, at floating interest rate of 7.25% p.a. The loan is repayable in 84 monthly install-
Total Shareholdings 1,42,22,000 72.26% 1,48,80,000 100.00% ments of Rs. 0.30 lakhs p.m.
Add: Bonus shares issued during All Vehicle loans are secured against Vehicle purchased.
- 1,487.00
the year/ period
Add: Fresh shares issued during the Note 6 : Long-term Provisions
480.20 - Particulars As at As at
year
Outstanding at the end of the year 31 March 2025 31 March 2024
1,968.20 1,488.00 Provision for employee benefits
(Rs. 10 per share)
Provision for gratuity 32.47 56.83
Note 3.6 : For the period immediately preceding the date as at 31 March, 2025 :
Aggregate number and class of shares allotted as fully paid up pursuant to contract(s) without payment being received in Total Long Term Provisions 32.47 56.83
(i)
cash : Nil
During the previous period ended March 31, 2024, the Company had issued 1,48,70,000 bonus shares in the ratio of 1:1487
(ii) Note 7 : Short Term Borrowings
out of Surplus balance in the Statement of Profit & Loss account.
Particulars As at As at
(iii) Aggregate number and class of shares bought back : Nil 31 March 2025 31 March 2024
A Secured
(iv) Calls unpaid : Nil
Cash Credit (Refer Notes (i) below) 1,864.04 1,047.45
(v) There are no forfeited shares. Current Maturities of Term Loan (Refer Notes (ii) below) - 48.44
(includes loan taken under Union Guaranteed Emergency Credit Line Scheme
Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in de- (UGECL))
(vi) Current maturities of Vehicle Loan 5.48 5.89
scending order starting from the farthest such date : Not Applicable
Working Capital Demand Loan (Refer Notes (iii) below) 348.27 685.38
Note 4 : Reserves and Surplus Total (A) 2,217.79 1,787.15

Surplus in Statement of Profit & Loss As at As at Particulars As at As at

31 March 2025 31 March 2024 31 March 2025 31 March 2024
B Unsecured
Opening Balance of Surplus in Statement of Profit & Loss 808.36 1,754.89
Less : Converted to loans - - Director's Loan (Refer Notes (iv) below) 266.70 266.70
Less : Bonus shares issued - (1,487.00) Promotor's Loan (Refer Notes (iv) below) 413.49 413.49
Add : Net Profit for the year/ period 446.57 540.48 Total (B) 680.19 680.19
Total Reserves and Surplus 1,254.94 808.36
Total Short Term Borrowings (A+B) 2,897.98 2,467.34

114 115
 Annual Report 2024 - 25 Financial Statements

Cash Credit from HDFC - The stocks and book debts are hypothecated with the bank for the sanction limit of Rs.1,850 lakhs in Note 10 : Short Term Provisions
(i)
Cash credit account for the tenure of one year with the annual renewal option. Particulars As at As at
(ii) Term Loan from HDFC Bank - Hypothecation of stock and book debts 31 March 2025 31 March 2024
Working Capital Demand Loan (WCDL) from HDFC - The stocks and book debts are hypothecated with the bank for the sanc- Provision for employee benefits
(iii)
tion limit of Rs.800 lakhs. The loan is repayable in six months or on demand. Provision for gratuity 76.96 29.34
(iv) Loans from Directors and Promotors - Loans are repayable on call and carries Nil rate of interest. Provision for leave Encashment 5.00 4.07

Other provisions
Note 8 : Trade payables Provision for Income tax 59.33 223.52
Particulars As at As at (net of advance tax of Rs. 110.54 lakhs; P.Y. Rs 83.86 lakhs)
31 March 2025 31 March 2024
Total outstanding dues of micro enterprises and small enterprises 1,049.78 806.75 Total Short Term Provisions 141.29 256.92
Total outstanding dues of creditors other than micro enterprises and small
2,038.39 1,953.30
enterprises
Total Trade Payables 3,088.17 2,760.05 Note 11 (a) : Property Plant & Equipment
Asset Gross Block Accumulated Depreciation Net Block
Opening Closing Opening Adjust- For the Closing As on As on
Based on and to the extent of information received by the Company from the suppliers regarding their status under the Mi- Additions Deletion Deletion
01.04.24 31.03.25 01.04.24 ments year 31.03.25 31.03.25 31.03.24
cro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors.
Freehold Land 42.87 - - 42.87 - - - - - 42.87 43
Particulars Outstanding for following periods from due date of payment As at -
Leasehold Land 10.26 - - 10.26 2.42 - 0.22 - 2.64 7.62 8
More than 3 -
Less than 1 Year 1-2 Years 2-3 Years 31 March 2025 Buildings 1,125.52 26.93 - 1,152.44 727.22 - 17.31 - 744.54 407.91 398
Years
-
i) MSME 1,049.73 0.05 - - 1,049.78 Plant and Machinery 3,427.50 310.34 - 3,737.83 2,894.40 - 107.60 - 3,002.00 735.83 533
ii) Others 2,029.98 4.82 1.62 1.97 2,038.39 -
iii) Disputed dues - MSME - - - - - Factory Equipment 7.94 - - 7.94 4.51 - 0.97 - 5.48 2.46 3
iv) Disputed dues - Others - - - - - -
Furniture, Fixtures and
42.00 - - 42.00 21.76 - 3.10 - 24.86 17.13 20
Particulars Outstanding for following periods from due date of payment As at Fittings
-
Office Equipment 32.92 1.17 - 34.09 28.89 - 1.69 - 30.57 3.52 4
More than 3
Less than 1 Year 1-2 Years 2-3 Years 31 March 2024 -
Years Computers 39.49 1.35 - 40.84 35.77 - 2.14 - 37.91 2.93 4
i) MSME 806.50 - 0.25 - 806.75 -
ii) Others 1,934.78 0.23 3.67 14.61 1,953.30 Vehicles 57.95 - - 57.95 30.43 - 5.12 - 35.55 22.40 28
iii) Disputed dues - MSME - - - - - Total Tangibles 4,786.43 339.78 - 5,126.22 3,745.39 - 138.16 - 3,883.56 1,242.66 1,041.04
Previous year 4,761.56 28.37 (3.50) 4,786.43 3,336.79 (1.08) 409.68 - 3,745.39 1,041.04 1,424.57
iv) Disputed dues - Others - - - - -

Note 9 : Other current liabilities Note 11 (b) : Intangible Assets

Particulars As at As at Asset Gross Block Accumulated Depreciation Net Block
Opening Closing Opening Adjust- For the Closing As on As on
31 March 2025 31 March 2024 01.04.24
Additions Deletion
31.03.25 01.04.24 ments year
Deletion
31.03.25 31.03.25 31.03.24
Creditors for Capital Goods 2.89 1.27 Software 39.85 8.72 - 48.57 31.20 4.48 - 35.68 12.89 8.65
Employees Payables 102.68 70.72 Total Intangibles 39.85 8.72 - 48.57 31.20 4.48 - 35.68 12.89 8.65
Liability for expenses 34.51 17.91
Advance from Customer 84.41 114.06
Statutory Dues Payables 27.59 28.69
Other payables 15.68 2.97
Total Other Current Liabilities 267.75 235.62

116 117
 Annual Report 2024 - 25 Financial Statements

Note 12 : Investments - Non Current (valued at historical cost unless stated otherwise) Note 16 : Current Investments

Particulars Year Ended March 31, 2025 Year Ended March 31, 2025 Numbers/ Units/
Numbers/ Numbers/ Particulars Face Value As at As at
Face Value
Units/ Shares
Book Value Face Value
Units/ Shares
Book Value Shares
31 March 2025 31 March 2024
Other Investments
Other non-current investments Investments in Mutual Funds
- Guru Himmat Premises Co-op. Hsg. Society Ltd. 50 10 0.01 50 10 0.01 (Valued at lower of cost and fair value)
- Jawahar Co-op. Industrial Estate Ltd. 100 87 0.09 100 87 0.09 (Unquoted, fully paid-up)
PFG - Union Balanced Advantage Fund Reg-
Total Investments - Unquoted 0.09 0.09 10 49,990 5.00 5.00
ular Plan
Aggregate market value as at the end of the period:
Aggregate amount of quoted investments and market Total Current Investments 5.00 5.00
- -
value thereof
Aggregate amount of Un-quoted investments 0.09 0.09 Aggregate market value as at the end of the year:
Aggreagte Provision for diminution in value of invest- Aggregate amount of quoted investments and
- - 9.61 9.14
ments
market value thereof
Note 13 : Deferred tax Asset (Net) Aggregate amount of Un-quoted investments - -
Particulars As at As at Aggreagte Provision for diminution in value of
- -
31 March 2025 31 March 2024 investments
Deferred tax Asset Note 17 : Inventories
Expenses provided but allowable in Income Tax on payment basis 33.47 30.58
Provision for doubtful debts 1.74 1.92 Particulars As at As at
Provision for doubtful advances 2.55 2.82 31 March 2025 31 March 2024
Difference between book depreciation & tax depreciation 12.34 18.34 Raw materials 1,863.22 1,769.00
Total Deferred tax Asset 50.10 53.66 Work-in-progress 1,545.81 1,263.73
Finished goods 1,218.71 821.48
Note 14 : Long Term Loans and Advances Total Inventories 4,627.74 3,854.21
Particulars As at As at
31 March 2025 31 March 2024 Note 18 : Trade Receivables
Unsecured, Considered Good, Unless Otherwise Stated
Security Deposits 13.66 12.29 Particulars As at As at
Advances for Capital Goods 78.84 5.60 31 March 2025 31 March 2024
Advance tax and tax deducted at source 71.61 56.28 Unsecured Considered good 2,060.54 1,634.77
(Net of Provision for Taxes Rs. 716.20 lakhs; P.Y. Rs 561.33 lakhs) Unsecured Considered doubtful 6.91 6.91
Total Long Term Loans and advances 164.12 74.17 Less: Provision for doubtful receivables (6.91) (6.91)
Total 2,060.54 1,634.77
Total Other non-current assets
Note 15 : Other non-current assets
Particulars Outstanding for following periods from date of payment As at
Particulars As at As at Less than 6 months More than 31 March
1-2 Years 2-3 Years
31 March 2025 31 March 2024 6 months to 1 Year 3 Years 2025
Unsecured, Considered Good, Unless Otherwise Stated "Undisputed Trade Receivables -
1,498.74 85.87 198.50 202.07 75.36 2,060.54
Bank deposits with more than 12 months maturity 6.15 24.80 Unsecured Considered Good"
(deposits under lien for Bank Guarantees issued) "Undisputed Trade Receivables -
- - - - 6.91 6.91
Total Other non-current assets 6.15 24.80 Unsecured Considered Doubtful"
"Disputed Trade Receivables-
- - - - - -
Unsecured Considered Good"
"Disputed Trade Receivables-
- - - - - -
Unsecured Considered Doubtful"

118 119
 Annual Report 2024 - 25 Financial Statements

Particulars Outstanding for following periods from date of payment As at Note 22 : Revenue from operations
Less than 6 months More than 31 March For the period
1-2 Years 2-3 Years
6 months to 1 Year 3 Years 2024 Particulars For the Year ended 5 May 2023 to
"Undisputed Trade Receivables - 31 March 2024
1,011.24 261.54 238.76 99.91 23.32 1,634.77
Unsecured Considered Good" 31 March 2025
"Undisputed Trade Receivables - Sale of products 9,695.18 9,151.67
- - - 6.91 - 6.91
Unsecured Considered Doubtful" Other operating revenue
"Disputed Trade Receivables- i) Scrap Sales 1,230.54 1,090.31
- - - - - -
Unsecured Considered Good" ii) Export Incentives 67.54 38.03
"Disputed Trade Receivables- Total Revenue from Operations 10,993.26 10,280.00
- - - - - -
Unsecured Considered Doubtful"
Note 23 : Other Income
For the period
Note 19 : Cash and Bank Balances Particulars For the Year ended 5 May 2023 to
Particulars As at As at
31 March 2024
31 March 2025 31 March 2024
31 March 2025
Cash and cash equivalents
Interest income 56.43 5.90
On current accounts 49.43 0.54
Miscellaneous Income 9.52 9.66
Cash credit account (Debit balance) 1.62 0.15
VAT refund received - 38.89
Cash on hand 0.14 0.19
Interest on Vat refund received - 4.67
Deposits with original maturity for less than 3 months 1,358.95 -
Interest on Income Tax refund 1.90 -
Total (A) 1,410.14 0.88
Gain on foreign exchange transactions and translation (net) 28.99 12.63
Other bank balances
Total Other Income 96.84 71.74
Deposits with original maturity for more than 3 months but less than 12
601.73 29.91
months from reporting date Note 24 : Cost of goods sold
Total (B) 601.73 29.91 For the period
Total Cash and Bank balances (A+B) 2,011.88 30.78
Particulars For the Year ended 5 May 2023 to
31 March 2024
Note 20 : Short Term Loans and advances
31 March 2025
Particulars As at As at
24(a) Cost of raw material consumed
31 March 2025 31 March 2024
Raw material consumed
Unsecured, Considered Good, Unless Otherwise Stated
Raw material consumed-Inventory at the beginning of the year 1,769.00 1,187.38
Staff Loans 12.15 12.60
Add : Raw Material- Purchases during the year 7,488.65 7,321.22
Balance with government authorities 1,202.77 1,317.44
9,257.65 8,508.60
Prepaid expenses 0.46 0.48
Less: Inventory at the end of the year 1,863.22 1,769.00
Advances recoverable in Cash or kind 22.86 24.28
Cost of raw material consumed (a) 7,394.44 6,739.60
Total Short Term Loans and advances 1,238.24 1,354.81
For the period
Note 21 : Other Current Assets Changes in inventories of finished goods, work in progress and stock-in
24(b) For the Year ended 5 May 2023 to
Particulars As at As at trade
31 March 2025 31 March 2024 31 March 2024
Export Incentives 31 March 2025
Unsecured, Considered Good 17.71 8.13
Doubtful 10.13 10.13 Inventories at the beginning of the year:
27.84 18.27 - Finished goods 821.48 688.06
Less: Allowance for bad and doubtful loans and advances (10.13) (10.13) - Work in progress 1,263.73 825.74
Total Export Incentives 17.71 8.13 (I) 2,085.21 1,513.80
Inventories at the end of the year:
Interest accrued but not due on deposits 16.33 4.29 - Finished goods 1,218.71 821.48
- Work in progress 1,545.81 1,263.73
Receivables from Promotors 65.79 - (II) 2,764.52 2,085.21
Total Other Current Assets 99.83 12.42

120 121
 Annual Report 2024 - 25 Financial Statements

(Increase) in inventories of finished goods, work-in-progress and stock-in- Rates and taxes 6.70 0.34
(679.31) (571.41)
trade (I-II) Travelling expenses 9.59 10.52
Payment to the Auditor
Note 25 : Employee benefits expense - Statutory Audit 18.00 14.00
For the period - Tax Audit 2.00 2.00
Particulars For the Year ended 5 May 2023 to - For Certification 0.35 7.37
31 March 2024 Legal and professional charges 59.59 66.68
31 March 2025 Sitting Fees 3.00 1.50
Commission 79.92 76.03
Salaries, wages, bonus and other allowances 712.67 597.83 Interest on Delayed Payment of Income Tax 1.61 9.29
Contribution to provident and other funds 31.31 28.62 Interest on MSME Vendors 12.01 -
Gratuity expenses 23.26 19.61 Late payment Charges 63.41 -
Staff welfare expenses 17.86 18.28 Late Delivery (LD) charges 64.53 11.00
Total Employee benefits expense 785.11 664.34 Provision for doubtful debts - 6.91
Freight Outward 298.66 167.14
Note 26 : Finance Cost Loss on asset discarded - 2.42
For the period Corporate Social Responsibility 15.50 -
Particulars For the Year ended 5 May 2023 to Miscellaneous Expenses 25.75 2.28
31 March 2024 Total Other Expenses 2,655.31 2,158.18
31 March 2025
Note 29: Earnings Per Share
Interest expense
On term loan 1.13 7.99
For the period 5 May
On Vehicle Loan 2.78 3.03 For the Year Ended
On Cash Credit Account 137.30 96.12 Particulars 2023 to
31 March 2025
On Working Capital Demand Loan 38.73 25.02 31 March 2024
Bank Charges 24.99 57.62 Profit/ (Loss) attributable to equity shareholders (a) (₹ In Lakhs) 446.57 540.48
Total Finance cost 204.94 189.78 Number of Equity Shares:
Number of equity shares as at the commencement of the year/ period 1,48,80,000 10,000
Note 27 : Depreciation and amortization expense Equity shares issued during the year/ period 48,02,000 1,48,70,000
For the period Number of equity shares at the end of the year/ period 1,96,82,000 1,48,80,000
Particulars For the Year ended 5 May 2023 to Weighted average number of equity shares outstanding during the year/
31 March 2024 period :
31 March 2025 Basic and Diluted (b) 1,73,53,359 1,48,80,000
on Property, Plant and Equipment (Refer note 10(a)) 138.16 409.68 Earning per Equity Share of Rs. 10/- each
on intangible assets (Refer note 10(b)) 4.46 5.67 Basic and Diluted 2.57 3.63
Total Depreciation and amortization expense 142.61 415.35

Note 28 : Other Expenses Note 30: Contingent Liabilities and Commitments

For the period (Amounts in ₹ Lakhs)
Particulars For the Year ended 5 May 2023 to As at As at
31 March 2024 Particulars
31 March 2025 31 March 2024
31 March 2025
Consumption of stores and spare parts 638.10 556.86 Bank Guarantees issued on behalf of the Company 247.28 56.44
Sub- contracting expenses 645.52 532.78 Letter of Credit issued on behalf of the Company 68.64 -
Power and fuel 439.94 372.73 On account of Income tax demands 39.34 25.99
Establishment and other expenses 82.89 104.61
Other manufacturing expenses 62.62 75.87 Capital Commitments
Rent 1.81 1.66 (Amounts in ₹ Lakhs)
Repairs and maintenance - Buildings 2.50 16.29 As at As at
Repairs and maintenance - Machinery 46.80 50.83 Particulars
31 March 2025 31 March 2024
Repairs and maintenance - others 21.26 16.37
Inspection Charges 20.79 15.12 Capital Commitments for procurement of Property Plant and Equipment
Insurance 31.60 36.58 150.12 -
(net of advances Rs 64.34 Lakhs) (P.Y. Rs Nil)
Telephone Expenses 0.84 0.99

122 123
 Annual Report 2024 - 25 Financial Statements

Note 31: Disclosure under Accounting Standard 15 (revised 2005) Employee Benefits Discount Rate 6.81% 7.21%
Salary Escalation (per annum) 7.50% 7.50%
Defined Contribution Plan:
Provident Fund:
The Company makes contributions of a specified percentage of a payroll costs towards the provident fund and other funds. Note 32: Corporate Social Responsibility
Amount recognised in the Statement of Profit and Loss, included in Employee benefits expense of Rs 31.31 Lakhs (P.Y. Rs
28.62 Lakhs) Gross amount required to be spent by the Company during the year 2024-25 - Rs 15.17 lakhs (Previous year Rs Nil)

Defined Benefit Plan: For the period

For the Year Ended
Compensated Absences: Particulars 5 May 2023 to
31 March 2025
Annual Leave Allowance : Employees are entitled to 15 days of leave per year. These 15 days leave includes both sick leave 31 March 2024 #
and casual leave. Additional compensated leave is provided on an as-needed basis, subject to Company's approval. Unused
leave cannot be carried forward to the next year. Any remaining leave balance at the end of the financial year will be en- (i) Amount required to be spent by the Company during the year 15.17 -
cashed by the employee in the next financial year. Provision for compensated absences are being accounted as per accrued (ii) Amount of expenditure incurred 15.50 -
liability basis. (iii) Excess spent carried forward to next year 0.33 -
(iv) Shortfall at the end of the year NA -
Gratuity : (v) Total of previous years shortfall Nil -
The Company operates a defined benefit gratuity plan for employees. The liability for the Defined Benefit Plan is provided (vi) Reason for shortfall NA -
on the basis of an acturial valuation, using the Projected Unit Credit Method, as at the Balance Sheet date, carried out by an Medical Healthcare
(vi) Nature of CSR activities, -
independent actuary. The Company contributes to the Group Gratuity Scheme of LIC and contributions are debited to the Support
Statement of Profit and Loss. These benefit plans expose the Company to actuarial risks, such as longevity risk, interest rate (vii) Details of related party transactions Nil -
risk and investment risk. (viii) Movements in the provision during the year where a provision is
made with respect to a liability incured by entering into a contractual
Disclosures in respect of Defined Benefit Plan in accordance with AS-15 (Revised) on “Employee Benefits": obligation

For the period The Company was not required to incur any expenditure toward Corporate Social Responsibility in compliance with provisions
For the Year Ended #
Particulars 5 May 2023 to of Section 135 of the Act during the period from May 5, 2023 to March 31, 2024.
31 March 2025
31 March 2024 Note 33 : Amounts due to Micro Small and Medium Enterprises
a) The amounts recognized in the balance sheet Details of dues to Micro, Small and Medium Enterprises as per MSMED
Present value of obligations as at the end of year/ period (161.38) (134.78) Act, 2006
Fair value of plan assets as at the end of the year/ period 51.95 48.61 (Amounts in ₹ Lakhs)
Net asset/(liability) recognized in balance sheet (109.43) (86.17)
For the period
b) Reconciliation of opening and closing balances of Defined Benefit For the Year Ended
Particulars 5 May 2023 to
Obligation 31 March 2025
31 March 2024
Present value of obligations as at beginning of year/ period 134.78 111.48 The principal amount remaining unpaid to any supplier at the end of the
Interest cost 9.72 8.35 1,049.78 806.75
year
Current Service Cost 15.55 11.96 Interest due remaining unpaid to any supplier at the end of the year 12.01 -
Benefits Paid - (1.23)
Actuarial (Gains)/Losses on Obligations - Due to Change in Financial As- "The amount of interest paid by the buyer in terms of section 16 of the
6.20 3.69 MSMED Act, 2006, along
sumptions
Actuarial (gain)/ loss on obligations (4.87) 0.54 with the amount of the payment made to the supplier beyond the appoint- - -
Present value of obligations as at end of year/ period 161.38 134.78 ed day during the
c) Reconciliation of opening and closing balances of fair value of Plan year "
Assets "The amount of interest due and payable for the period of delay in making
Fair value of plan assets at beginning of year/ period 48.61 46.77 payment (which
Expected return on plan assets 3.51 3.50 have been paid but beyond the appointed day during the year) but without - -
Contributions - - adding the interest
Benefits Paid - (1.23) specified under the MSMED Act, 2006 "
Actuarial Gains/(Losses) on Plan Assets - Due to Experience (0.16) (0.43) The amount of interest accrued and remaining unpaid at the end of each
Fair value of plan assets at the end of year/ period 51.95 48.61 - -
accounting year
d) Actuarial Assumptions

124 125
 Annual Report 2024 - 25 Financial Statements

"The amount of further interest remaining due and payable even in the Note 37: Related Party Disclosure (AS-18)
succeeding years, until such date when the interest dues above are ac-
- -
tually paid to the small enterprises, for the purpose of disallowance of a A Related parties and their relationship:
deductible expenditure under section 23 of the MSMED Act, 2006" i) Key Management Personnel:

Name Designation
Note: The above information is compiled by the Company on the basis of Aliasgar R. Hararwala Managing Director
the information made available by vendors and the same has been relied Aliasgar A. Bhagat Director
upon by the Statutory Auditors. Mohammed S. Hararwala Director

Note 34 : Earning in foreign exchange ii) Promoters :

(Amounts in ₹ Lakhs) Name Designation
Abbasali S. Hararwala Promoter
For the period Abdulla A. Bhagat Promoter
For the Year Ended Hoozefa S. Hararwala Promoter
Particulars 5 May 2023 to
31 March 2025 Roshan A. Hararwala Promoter
31 March 2024
Export of goods calculated on FOB basis in INR 2,705.27 2,573.41 Zahid M. Hararwala Promoter
B Transactions and balances with related parties

Note 35 : Capital Work In Progress Ageing Name of Related Party Remuneration Reimbursements of expenses
2024-25 2023-24 2024-25 2023-24
As on 31st March, 2025 Key Management Personnel
Less than More than Aliasgar R. Hararwala - 19.02 - 0.88
Particulars 1 - 2 Years 2 - 3 Years Total Aliasgar A. Bhagat - 19.02 - 0.88
1 Year 3 Years
Projects in progress 126.81 - - - 126.81 Mohammed S. Hararwala - 15.55 - 0.88
Projects temporarily suspended - - - - - 53.59 2.64

As on 31st March, 2024 Promoters

Less than More than Abbasali S. Hararwala - 10.33 - 0.88
Particulars 1 - 2 Years 2 - 3 Years Total Abdulla A. Bhagat - 19.02 - 0.88
1 Year 3 Years
Projects in progress 4.19 - - - 4.19 Hoozefa S. Hararwala - 12.18 - 0.88
Projects temporarily suspended - - - - - Roshan A. Hararwala - 19.02 - 0.90
Zahid M. Hararwala - 19.02 - 0.88

Note 36 : Segment Reporting (AS-17) 79.58 4.42

Balances Outstanding as on March 31

a) Primary segment reporting by business segment:
The Company is engaged in the manufacturing of forged flanges, rings, blanks, and other related products across all grades. Name of Related Party Directors Loan Promoters Loan Total
As per Accounting Standard (AS-17), there are no separate reportable segments identified within the company’s operations. 2024-25 2023-24 2024-25 2023-24 2024-25 2023-24
Aliasgar R. Hararwala 119.98 - - - 119.98 -
b) Secondary segment reporting by geographical segment: Asgar A. Bhagat 80.01 - - - 80.01 -
Segment-wise Revenue from Operations and Sales: Mohammed S. Hararwala 66.71 - - - 66.71 -
Abbasali S. Hararwala - - 66.64 - 66.64 -
For the Year For the period Abdulla A. Bhagat - - 119.98 - 119.98 -
Particulars Ended 5 May 2023 to Hoozefa S. Hararwala - - 66.64 - 66.64 -
31 March 2025 31 March 2024 Roshan A. Hararwala - - 80.01 - 80.01 -
Zahid M. Hararwala - - 80.22 - 80.22 -
Revenue from customers outside India 2,705.27 2,573.41
Revenue from customers within India 6989.91 6,578.26
Total 9695.18 9,151.67

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 Annual Report 2024 - 25 Financial Statements

Note 38 : Utilisation of IPO Proceeds Note 40: Ratios

During the year, the Company has completed initial public offering (IPO) of Rs. 3,234.38 lakhs (including fresh issue of Rs.
2,833.18 lakhs) comprising of (i) equity shares of 48,02,000 each at an issue price of Rs. 59 per share towards fresh issue of Ratio Numerator Denominator Current Year Previous Period % Variance Reason
equity shares (ii) equity shares of 6,80,000 each at an issue price of Rs. 59 per share towards offer for sale. The equity shares Increase due to Initial public offer
Current Current Liabil-
of the Company, has got listed on NSE Emerge Platform on 25 September 2024 having NSE Scrip Code “PSFL” under SME IPO. Current Assets 1.57 1.21 30% made by the Company during the
ratio ities
The Company has incurred issue expenses amounting to Rs. 433.46 lakhs. In accordance with Applicable Law, these expenses year
are borne by the Company and Selling Shareholders, in the proportion of the equity shares issued by the Company and sold "Decrease due to
by each of the Selling Shareholders in the Offer for Sale, amounting to Rs. 377.71 lakhs and Rs. 55.75 lakhs respectively. The Initial public offer made by
Debt-equity Shareholders
Company’s share of expense of Rs. 377.71 lakhs has been adjusted against Securities Premium as at 31 March 2025. Total Debt 0.56 1.08 -48% the Company during the
ratio funds
year and repayment
Objects as disclosed in the Offer Docu- Amount disclosed in the of Debt also"
Sr. No Actual Utilised Amount Unutilized Amount
ment Offer Document Debt ser- Increase due to payment of interest
Net operating
Capital expenditure towards construction vice cover- Debt Service 4.89 0.55 791% on working capital loan & payment
Income
of factory shed & purchase of machinery age ratio of principal amount
1 2,381.28 458.31 1,922.97
and equipment required for expansion at "Decrease in the Return
our Khalapur Plant Return on Net profit Average Share- on Equity Ratio is due to
11.92% 26.91% -56%
2 General Corporate Purpose 72.38 33.57 38.81 equity ratio after tax holders funds Initial Public Offer made by
3 Offer Related Expenses 379.52 377.71 1.81 the Company during the year"
Total 2,833.18 869.59 1,963.59 Trade
receivables Net Credit Average Trade
5.25 6.23 -16% Not Applicable
Note 39: Effect Of Change In Accounting Estimate turnover Sales receivables
ratio
i. Depreciation Method Changed from WDV to SLM w.e.f, 01 April 2024 Amount Trade
Depreciation as per WDV 260.02 payables Net Credit Average trade
Depreciation as per SLM 142.61 2.30 2.51 -9% Not Applicable
turnover Purchases payables
Effect on current year Profit (+) Increase ( - )decrease 117.41 ratio
ii. The effect of above changes in accounting estimate on future periods is not practicable to quantify. Net capital "Decrease due
Working Cap-
turnover Net sales 4.56 8.67 -47% to Initial Public Offer made
ital
ratio by the Company during the year."
Net profit
Net profit after tax Net Sales 4.06% 5.31%
ratio
Return "Decrease due
Capital Em-
on capital EBIT 26.40% 0.40 -34% to Initial Public Offer made
ployed
employed by the Company during the year."
Change in Opening
Return on
Shareholders Shareholders - - - Not Applicable
investment
Funds funds
Ratio :
Current Ratio Current Assets \ Current Liaility
Debt-Equity Ratio, Total Debt \ Shareholder’s Equity
Debt Service Coverage Ratio, Earnings available for debt service \ Debt Service
Return of Equity Ratio, Net Profits after taxes \ Average Shareholder’s Equity
Trade Receivable turnover Ratio, Net Credit Sales \ Average Accounts Receivable
Trade Payable turnover Ratio, Net Credit Purchases \ Average Trade Payables
Net Capital turnover Ratio, Net Sales \ Average Working Capital
Net Profit Ratio, Net Profit \ Net Sales
Return on Capital employed, Earning before interest and taxes \ Capital Employed
Return on investment, Income generated from investments \ Average Investments

128 129
 Annual Report 2024 - 25 Financial Statements

Note 41: Additional Disclosures The titles of as-

(i) Title deeds of Immovable Property are held in name of the Paramount Speciality Forgings LLP, which was converted into Building (Fac- sets are in the
Paraount Spe-
Paramount Speciality Forgings Ltd. The Company is in process of changing the name in the title deeds. Refer note no. 42 for full Property, Plant and tory, Office process of be-
1,125.52 ciality Forgings No May 5, 2023
details of such properties. Equipment and Residential ing transferred
LLP
(ii) The Company has not revalued its Property, Plant and Equipment. Building) in the name of
(iii) The Company has not granted any Loans or Advances in the nature of loans to Promoters, Directors, KMPs and the related the Company
parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are (a) repayable on Leasehold prop-
demand or (b) without specifying any terms or period of repayment. erty is vested
(iv) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with the in the LLP. The
Companies (Restriction on number of Layers) Rules, 2017. Paraount Spe-
Property, Plant and Leasehold Company is in
(v) The Company does not have any Intangible assets under development. 10.25 ciality Forgings No May 5, 2023
Equipment property the process of
(vi) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Compa- LLP
executing the
ny for holding any Benami property. required agree-
(vii) The Company has borrowings from banks or financial institutions on the basis of security of assets and book debts ments.
(viii) The Company has not been declared as a willful defaulter by any bank or financial institution or other lender.
(ix) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or Note 43: The Social Security Code, 2020
The Code on Social Security 2020 (‘the Code’) relating to employee benefits, during the employment and post-employment,
section 560 of Companies Act, 1956
(x) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond has received Presidential assent on September 28, 2020. The Code has been published in the Gazette of India. Further, the
the statutory period. Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. However, the effective
(xi) The Company has not entered into any scheme of arrangement therefore approval of competent authority in terms of date from which the changes are applicable is yet to be notified and rules for quantifying the financial impact are also not yet
sections 230 to 237 of the Companies Act, 2013 is not required. issued. The Company will assess the impact of the Code and will give appropriate impact in the financial statements in the
(xii) The Company has not traded or invested in Crypto currency or Virtual Currency during the current or previous financial period in which, the Code becomes effective and the related rules to determine the financial impact are published.
year.
(xiii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities Note 44
(Intermediaries) with the understanding that the Intermediary shall: The Company is formed by converting erstwhile Limited Liability Partnership (LLP) following its dissolution w.e.f. May 5, 2023.
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Accordingly, the comparable period in this financial statements are for the period May 5, 2023 to March 31, 2024 and are not
Company (Ultimate Beneficiaries) or strictly comparable with the current year figures.
(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.
(xiv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with Note 45
the understanding (whether recorded in writing or otherwise) that the Company shall: Previous year’s figures have been regrouped / reclassified wherever necessary to conform to current year’s classification/
(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the disclosure.
Funding Party (Ultimate Beneficiaries) or
(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.
The Notes referred above form an integral part of the financial statements
(xv) The Company has not entered into any such transaction which is not recorded in the books of account that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or FOR AND ON BEHALF OF
As per our Report attached
survey or any other relevant provisions of the Income Tax Act, 1961. PARAMOUNT SPECIALITY FORGINGS LIMITED
Note 42: Title deeds of Immovable Property not held in name of the Company FOR KALYANIWALLA & MISTRY LLP (Formerly Known as Paramount Speciality Forgings LLP)
CHARTERED ACCOUNTANTS CIN – L24109MH2023PLC402307
Whether title deed Firm Reg. No.: 104607W/W100166
holder is a promoter, Sd/- Sd/-
Reason for not
Gross carrying Title deeds director or relative Period held Aliasgar R. Hararwala Aliasgar A. Bhagat
Relevant line item in Description of being held in
value (Rs. in held in the of since which Sd/- MANAGING DIRECTOR DIRECTOR
the Balance sheet property the name of
lakhs) name of promoter/director date Jamshed K. Udwadia DIN: 00334957 DIN: 00335869
company
or employee of PARTNER
promoter/director M. No.: 124658
The titles of as- Sd/- Sd/-
Mumbai, 29 May 2025
sets are in the Farkhanda A. Pagarkar Ankita A. Patankar
Paraount Spe- CHIEF FINANCIAL OFFICER COMPANY SECRETARY
Property, Plant and process of be-
Freehold Land 42.86 ciality Forgings No May 5, 2023 ICSI M.No: A57166
Equipment ing transferred
LLP
in the name of Mumbai, 29 May 2025
the Company

130 131
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