Notes to Accounts of Inditalia Refcon Ltd.

Mar 31, 2024

v PROVISIONS, CONTINGENT LiABHTV & CONTINGENT ASSETS

Provision is recognised when:

-The Company has a present obligation as a result of a past event,

-A probable outflow of resources is expected to settle the obligation and
-A reliable estimate of the amount of the obligation can be made.

Reimbursement of the expenditure required to settle a provision is recognised as per contract provisions or when it is virtually certain
that reimbursement will be received.

Assets and liabilities for which fair value is measured or disclosed in the financial statements are categorized within the fair value
hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

1- Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or liabilities

2 -Level 2 — Valuation techniques for which the lowest level Input that is significant to the lair value measurement is directly or
indirectly observable

3 -Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Company determines whether
transfers have occurred between levels in the hierarchy by re-assessing categorization (based on the lowest level input that is
significant to the fair value measurement as a whole) at the end of each reporting period.

The Company also compares the change in the fair value of each asset and liability with relevant external sources to determine
whether the change is reasonable.

For the purpose of lair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

x FINANCIAL INSTRUMENTS

1) Financial assets NIL

2 ) Finacial Liabilities

A Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, or as payables, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of financial liability not recognised at FVTPL, transaction
cost that are attributable to the acquisition of financial liability. The subsequent measurement of financial liabilities depends on their
classification, which is described below

B Subsequent measurement Financial Assets

i) Financial liabilities at Amortised Cost

Financial liabilities at amortised cost represented by trade and other payables, security deposits and Loans etc are initially recognized
at fair value, and subsequently carried at amortized cost using the effective interest rate method. Under the effective interest method,
the future cash payments are exactly discounted to the initial recognition value using the effective interest rate. The cumulative
amortization using the effective interest method of the difference between the initial recognition amount and the maturity amount is
added to the initial recognition value (net of principal repayments, if any) of the financial liability over the relevant period of the
financial liability to arrive at the amortized cost at each reporting date. The corresponding effect of the amortization under effective
interest method is recognized as interest expense over the relevant period of the financial liability. The same is included under finance

ii) Financial liabilities at FVTPL

The company has not designated any financial liabilities at FVTPL.

C De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When an existing
financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are
substantially modified, such an exchange or modification is treated as a derecognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts is recognised in the statement of Profit & Loss.

xi BORROWINGS

Borrowings are initially recognised at net of transaction costs incurred and measured at amortised cost. Any difference between the
proceeds (net of transaction costs) and the redemption amount is recognised in the Statement of Profit and Loss over the period of the
borrowings using the effective interest method.

Interest Free Borrowings are recognised at carrying cost whose period of repayment is uncertain or undefind. The Company has
measured the borrowings from directors at cost in the financial statements. __

xii EMPLOYEE BENEFITS
til Short-term obligations

Liabilities for wages and salaries, including non-monetary benefits that are expected to be settled wholly within 12 months after the
end of the period in which the employees render the related service are recognised in Profit & Loss account in respect of employees’
services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled.

xiii CASH FLOW STATEMENTS

Cash flows are reported using the indirect method, whereby profit / (loss) before tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and
financing activities of the Company are segregated based on the available information.

xiv GOING CONCERN ASSUMPTION

The company have accumulated losses which in result eroded the entire net w''orth of the company and the labilities of the company
has exceeded the assets of the company as at Balance sheet date. There is no business activity in the company during the year which
clearly indicated the existence of material uncertainty that may cast significant doubt on the company’s ability to continue as a going
concern. However, the financial statements of the company have been prepared on a going concern. The company has started
exploring the future plans for cany out business operations in the F.Y.2024-25.

^IV ROUND-OFF

All amounts disclosed in the financial statements and notes have been rounded off to the nearest lakhs as per the requirement of
Schedule ill, unless otherwise stated.

xvi The accounting policies that are currently not relevant or material to the company have not been disclosed. When such accounting
policies become relevant or material and have significant impact, the same shall be disclosed. -----

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Sep 30, 2014

1.1 The Company has issued only one class of shares referred to as equity shares having face value of Rs.10/-each.

Each holder of equity share is entitled to one vote per share.

1.2 The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

1.3 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

1.4 The details of shareholders holding more than 5% equity shares is set out below:

1.5 The company has not, at any time during the preceding five years issued or allotted (a) any shares as fully paid for consideration other than cash or (b) as bonus shares. Neither has the company bought back any class of shares during the said period..

A. Previous Year Comparatives

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

Contingent Liabilities & Commitments

B.: (To the extent not provided for)

1 Liabilities (Rs. Lacs)

Claims against the company not acknowledged as debt Income Tax Dues (Interest) pertaining to AYs 94-95,95-96,96-97 & 97-98,

disputed by the Company, appeals pending before appropriate authority. 30.49

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Sep 30, 2013

A. Contingent Liabilities & Commitments : (To the extent not provided for)

1 Liabilities (Rs. Lacs)

1 Claims against the company not acknowledged as debt Income Tax Dues pertaining to AYs 94-95,95-96,96-a. 97 & 97-98, disputed 40.87 62.63 by the Company, appeals pending before appropriate authority.

2 Guarantees : Counter Guarantee (fvg. Sika India P. Ltd.) who a. provided third * 540.10 540.10 party surety fvg. Deptt. Of Central Excise & Customs, to enable the Company to obtain "No Dues Certificate" for exit from the EOU scheme. * Please see item (4)(v) of Auditor''s report.

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Sep 30, 2012

1.1 The Company has issued only one class of shares referred to as equity shares having face value of Rs.10/-each.

Each holder of equity share is entitled to one vote per share.

1.2 The holders of equity shares are entitled to dividends, if any, proposed by the Board of Directors and approved by Shareholders at the Annual General Meeting.

1.3 In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the remaining assets of the Company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the Shareholders.

1.5 The compay has not, at any time during the preceding five years issued or allotted (a) any shares as fully paid for consideration other than cash or (b) as bonus shares. Neither has the company bought back any class of shares during the said period..

2 Previous Year Comparatives

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

3 Contingent Liabilities & Commitments :

(To the extent not provided for)

i) Liabilities

a. Claims against the company not acknowledged as debt 6,263,126 6,263,126 Income Tax Dues pertaining to AYs 94-95,95-96, 96-97 & 97-98, disputed by the Company, appeals pending before appropriate authority.

b. Guarantees (fvg. Deptt. Of Central Excise & Customs, provided 54,010,000 to obtain "No Dues Certificate" for exit from the EOU scheme.

c. Other money for which the company is contingently liable Not quantifiable*

* Please see item (4)(v) of Auditor''s report.

ii) Commitments NA NA

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Sep 30, 2011

1. Contingent Liabilities not provided for :

a. The Commissioner, Central Excise and Customs, Raigad has filed an appeal before the CESTAT, Mumbai against its own order dated 20-7-2009 allowing export of the Company's machinery vide Order-In-Original dated 20th July 2009 seeking duties, penalties, interest etc. The Company is contesting the appeal in the CESTAT. If the appeal is decided in favor of the Department, liability to pay the amounts determined by CESTAT will arise. The extent of these liabilities cannot be ascertained at the moment.

To expedite the issue of "No Dues Certificate" and exit from the 100% EOU scheme, Cash Security and Third Party Surety of Rs.49,10,000/- and Rs.4,91,00,000/- respectively were submitted to the Deputy Commissioner, Central Excise, Khopoli Division, Raigad. These were provided by M/s Sika India Pvt. Ltd, the buyer of the company's land and factory at Khopoli at the Company's request. The securities are liable to be invoked in the event the appeal referred above is decided in favour of the Department by CESTAT and would form part of the total dues of Customs, Excise, penalties, interest etc. referred to above. The Company has provided its undertaking and counter guarantee to M/s. Sika India Pvt. Ltd for these securities. The maximum liability to Sika is limited to Rs.5,40,10,000/-.

It is informed by the management, based on competent legal opinion that the company has a strong case on merits. As already stated, the total liability for duties etc. is unascertainable till the appeal is decided by CESTAT.

b. Income Tax Department has raised a demand pertaining to assessment years 94-95, 95-96, 96-97 and 97-98 for tax aggregating Rs.62,63,126/- (Rupees Sixty two lacs sixty two thousand One hundred twenty six only). The claim has been disputed by the company and has appealed to the appropriate authorities against the same.

2. In the opinion of the Company, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

3. Figures for the previous year have been regrouped and rearranged wherever necessary to conform to the current year's classification.

Note : 1. The proxy must be returned so as to reach the Registered Office of the Company not less than FORTY EIGHT hours before the time for holding the aforesaid meeting. 2. A Proxy need not be a member of the Company.