Notes to Accounts of Shreyas Intermediates Ltd.

Mar 31, 2025

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortized cost, debt instruments at FVTOCI, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset and financial guarantees not designated at FVTPL

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract/agreement and all the cash flows that the Company expects to receive (i.e.. all cash shortfalls), discounted at the original effective interest rate. The Company estimates cash flows by considering all contractual terms of the financial instrument, through the expected life of the financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk has not increased significantly, the Company measures the loss allowance at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses and represent the life-time cash shortfalls that will result if the default occurs within 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.

When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of a change in the amount of the expected credit loss. To achieve that, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.

B12. PROVISIONS

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable Estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

B13. WARRANTIES

The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on product failures. The timing of outflows will vary as and when warranty claim will arise- being typically six months to one year.

B14. CURRENT AND NON CURRENT CLASSIFICATION Current Asset:

An asset shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the company''s

normal operating cycle;

(b) it is held primarily for the purpose of being traded.

(c) It is expected to be realized within twelve months after the reporting date, or

(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to

settle a liability for at least twelve months after the reporting date.

All other assets shall be classified as non-current.

Current Liabilities:

A liability shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date: or

(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities shall be classified as non-current.

B15. DEFERRED TAX & CURRENT TAX Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

The income tax expense or credit for the year is the tax payable on current year''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

B16. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities exist when there is a possible obligation arising from past events, 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 a present obligation that arises from past events where it is either not probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

A contingent asset is a possible asset arising from past events, 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. Contingent assets are not recognised till the realisation of the income is virtually certain. However the same are disclosed in the financial statements where an inflow of economic benefit is possible.

B17. EARNINGS PER SHARE (EPS)

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.

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 effects of all dilutive potential Equity Shares.

C. CASH FLOW STATEMENT

Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit/(loss) is adjusted for the effects of:

(a) transactions of a non-cash nature;

(b) any deferrals or accruals of past or future operating cash receipts or payments and,

(c) All other items of income or expense associated with investing or financing cash flows.

The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a specific disclosure.

(b) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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 preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

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Mar 31, 2024

1 The above cash flow statement has been prepared under the “Indirect Method" as set out in the Indian Accounting Standard (Ind AS-7) - Statement of Cash Flow prescribed under the Companies Act (Indian Accounting Standard) Rules, 2015 under the Companies Act, 2013.

2 Purchase of property, plant and equipment represents additions to property, plant and equipment, and other intangible assets adjusted for movement of capital-work-in-progress for property, plant and equipment.

(b) Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of INR 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

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 preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) Shares reserved for issued under ESOS

There are no pending shares reserved for issue under Employee Stock Option Schemes (ESOS).

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Mar 31, 2023

B6. Provisions, Contingent Liabilities and Contingent Assets:

Contingent Liabilities

Claims against the Company not acknowledged as debts Rs. 497.39 Lacs (2022-Rs.497.39 Lacs) excluding interest, wherever applicable

These comprise:

(1) Excise duty disputed by the Company relating to issues of applicability and classification aggregating Rs. 456.01 Lacs (2022 - Rs.456.01 Lacs), excluding interest on claims, wherever applicable.

(2) Other matters Rs. 41.38 Lacs (2022 - Rs.41.38 Lacs), excluding interest on other matters, wherever applicable.

(3) Claims against the Company not acknowledged as Debts Rs. 1600 Lacs, excluding interest pending at Civil Court, Ratnagiri, Maharashtra.

It is not practicable for the Company to estimate the closure of these issues and the consequential timings of Cash flows, if any, in respect of the above.

B7. FOREIGN CURRENCY TRANSACTIONS

In preparing the financial statements of the Company, transactions in currencies other than the company''s functional currency (foreign currencies) are recognized at the rates of exchange prevailing at the dates of the transactions. At the end of each reporting period, monetary items denominated in foreign currencies are retranslated at the rates prevailing at that date. Non-monetary items that are measured in terms of historical cost in a foreign currency are not retranslated. Exchange differences on monetary items are recognized in profit or loss in the period in which they arise.

Foreign currency derivatives are initially recognized at fair value at the date the derivative contracts are entered into and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gain or loss is recognized in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedging relationship and the nature of the hedged item.

B8. EMPLOYEES BENEFITS

Company''s contributions paid/ payable during the year to Provident Fund and Employees'' State Insurance Corporation (ESIC) are recognized in the Profit & Loss Account; Provident Fund contributions are made to RPFC. The remaining contributions are made to a Government Administered Employee Pension Fund towards which the company has no further obligations beyond its monthly contributions.

Defined benefits and other long term employee benefits are provided on the basis of actuarial valuation made at the end of each financial year. Actuarial gain or losses arising from such valuation are charged to Other Comprehensive Income in the year in which they arise.

B9. RESEARCH & DEVELOPMENT EXPENDITURE

Expenditure on research activities is recognized as an expense in the period in which it is incurred where no internally generated asset can be recognized.

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in profit or loss.

Financial Assets

All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value, depending on the classification of the financial assets Investments in debt instruments that meet the following conditions are subsequently measured at amortized cost (unless the same are designated as fair value through profit or loss (FVTPL)):

• The asset is held within a business model whose objective is to hold assets in order to collect contractual cash flows; and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments that meet the following conditions are subsequently measured at fair value through other comprehensive income (unless the same are designated as fair value through profit or loss)

• The asset is held within a business model whose objective is achieved both by collecting contractual cash flows and selling financial assets; and

• The contractual terms of instrument give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Debt instruments at FVTPL are a residual category for debt instruments and all changes are recognized in profit or loss.

Investments in equity instruments are classified as FVTPL, unless the Company irrevocably elects on initial recognition to present subsequent changes in fair value in Other Comprehensive Income (OCI) for equity instruments which are not held for trading.

Interest income, dividend income and exchange difference (on debt instrument) on Fair Value Through Other Comprehensive Income (FVTOCI) debt instruments is recognized in profit or loss and other changes in fair value are recognized in OCI and accumulated in other equity. On disposal of debt instruments FVTOCI the cumulative gain or loss previously accumulated in other equity is reclassified to profit & loss. However in case of equity instruments at FVTOCI cumulative gain or loss is not reclassified to profit & loss on disposal of investments.

Financial Liabilities and Equity Instruments Classification as debt or equity

Debt and equity instruments issued by Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities.

Financial liabilities

All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings and payables, net of directly attributable transaction costs. The carrying amounts of financial liabilities that are subsequently measured at amortised cost are determined based on the effective interest method. Interest expense that is not capitalized as part of costs of an asset is included in the ''Finance Costs'' Line item.

The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability.

a. Loans and borrowings are subsequently measured at amortized costs using Effective Interest Rate method.

b. Financial liabilities at fair value through profit or loss (FVTPL) are subsequently measured at fair

value.

c. Financial guarantee contracts are subsequently measured at the higher of the amount of loss allowance determined as per impairment requirements of Ind AS 109 and the amount recognized less cumulative amortization.

d. Financial liability is derecognized when the obligation under the liability is discharged or cancelled or expires.

e. Disclosure regarding parties and transactions as required by Ind AS-24 issued by the Institute of

Chartered Accountants of India are us under:

The Company applies the expected credit loss model for recognizing impairment loss on financial assets measured at amortized cost, debt instruments at FVTOCI, lease receivables, trade receivables, other contractual rights to receive cash or other financial asset and financial guarantees not designated at FVTPL

Expected credit losses are the weighted average of credit losses with the respective risks of default occurring as the weights. Credit loss is the difference between all contractual cash flows that are due to the Company in accordance with the contract/agreement and all the cash flows that the Company expects to receive (i.e.. all cash shortfalls), discounted at the original effective interest rate. The Company estimates cash flows by considering all contractual terms of the financial instrument, through the expected life of the financial instrument.

The Company measures the loss allowance for a financial instrument at an amount equal to the lifetime expected credit losses if the credit risk on that financial instrument has increased significantly since initial recognition. If the credit risk has not increased significantly, the Company measures the loss allowance at an amount equal to 12-month expected credit losses. 12-month expected credit losses are portion of the life-time expected credit losses and represent the life-time cash shortfalls that will result if the default occurs within 12 months after the reporting date and thus, are not cash shortfalls that are predicted over the next 12 months.

When making the assessment of whether there has been a significant increase in credit risk since initial recognition, the Company uses the change in the risk of a default occurring over the expected life of the financial instrument instead of a change in the amount of the expected credit loss. To achieve that, the Company compares the risk of a default occurring on the financial instrument as at the reporting date with the risk of a default occurring on initial recognition and considers reasonable and supportable information, that is available without undue cost or effort, that is indicative of significant increases in credit risk since initial recognition.

B12. PROVISIONS

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle the obligation, and a reliable Estimate can be made of the amount of the obligation.

The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

B13. WARRANTIES

The estimated liability for product warranties is recorded when products are sold. These estimates are established using historical information on the nature, frequency and average cost of warranty claims and management estimates regarding possible future incidence based on corrective actions on

product failures. The timing of outflows will vary as and when warranty claim will arise- being typically six months to one year.

B14. CURRENT AND NON CURRENT CLASSIFICATION Current Asset:

An asset shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be realized in, or is intended for sale or consumption in, the company''s

normal operating cycle;

(b) it is held primarily for the purpose of being traded.

(c) It is expected to be realized within twelve months after the reporting date, or

(d) It is cash or cash equivalent unless it is restricted from being exchanged or used to

settle a liability for at least twelve months after the reporting date.

All other assets shall be classified as non-current.

Current Liabilities:

A liability shall be classified as current when it satisfies any of the following criteria:

(a) it is expected to be settled in the company''s normal operating cycle;

(b) it is held primarily for the purpose of being traded;

(c) it is due to be settled within twelve months after the reporting date: or

(d) the company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date. Terms of a liability that could at the option of the counterparty, result in its settlement by the issue of equity instruments do not affect its classification.

All other liabilities shall be classified as non-current.

B15. DEFERRED TAX & CURRENT TAX Deferred tax

Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognized for all taxable temporary differences. Deferred tax assets are generally recognized for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilized. Such deferred tax assets and liabilities are not recognized if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition,

deferred tax liabilities are not recognized if the temporary difference arises from the initial recognition of goodwill.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realized, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

Current and deferred tax for the year

The income tax expense or credit for the year is the tax payable on current year''s taxable income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.

Current and deferred tax are recognized in profit or loss, except when they relate to items that are recognized in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognized in other comprehensive income or directly in equity respectively.

B16. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities exist when there is a possible obligation arising from past events, 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 a present obligation that arises from past events where it is either not probable that an outflow of resources will be required or the amount cannot be reliably estimated. Contingent liabilities are appropriately disclosed unless the possibility of an outflow of resources embodying economic benefits is remote.

A contingent asset is a possible asset arising from past events, 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. Contingent assets are not recognised till the realisation of the income is virtually certain. However the same are disclosed in the financial statements where an inflow of economic benefit is possible.

B17. EARNINGS PER SHARE (EPS)

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. 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 effects of all dilutive potential Equity Shares.

C. CASH FLOW STATEMENT

Cash flow statement is prepared segregating the cash flows from operating, investing and financing activities. Cash flow from operating activities is reported using indirect method. Under the indirect method, the net profit/(loss) is adjusted for the effects of:

(a) transactions of a non-cash nature;

(b) any deferrals or accruals of past or future operating cash receipts or payments and,

(c) All other items of income or expense associated with investing or financing cash flows.

The cash flows from operating, investing and financing activities of the Company are segregated based on the available information. Cash and cash equivalents (including bank balances) are reflected as such in the Cash Flow Statement. Those cash and cash equivalents which are not available for general use as on the date of Balance Sheet are also included under this category with a specific disclosure.

As per my report of even date For and on behalf of the Board of Directors

For A Sachdev & Co Chartered Accountants

Sd/- Shri. S.P. Pandey Shri. Dinesh Sharma

CA. B K Agarwal Wholetime Director Director

Partner M. No: 090771

FRN. 001307C Sd/- Sd/-

Place : Mumbai Bhavesh Gondaliya Hariprakash Bohra

Dated : 29^th May 2023 Company Secretary Chief Financial Officer

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Mar 31, 2015

A) CORPORATE INFORMATION

Shreyas Intermediates Limited (The Company) was incorporated in the year 1992 and is engaged in the business of manufacturing of Pigments and Pigment Intermediates.

B) OTHER NOTES TO ACCOUNTS: -

1. The company has incurred Cash Losses during the year as well as in the earlier year and accordingly has been covered under the definition and provisions of The Sick Industrial Companies (Special Provisions) Act, 1985. The company had made an application with the Board of Industrial & Financial Restructuring under the provisions of the Act which was declined due to technical issues. The company has made a fresh reference to the Board of Industrial & Financial restructuring which is pending before the Secretariat. The notice was issued by the Secretariat for personal hearing on a date however the notice was received upon the lapse of the above date. The company has represented its case and is awaiting further instruction and intimations from the respective authority and forums.

2. The company had availed secured loans from the bankers which had been defaulted. The company had approached the financial institutions with a settlement scheme which has been duly approved by both the lending bankers. Bank of Baroda had approved a One Time Settlement option in respect of its dues by assigning its entire dues to Invent ARC. Furthermore State Bank of India had also assigned their dues on Security Realization basis to Invent ARC. The company remains committed to settle the dues according to the above scheme on specified terms. According to the specified terms under the scheme, the company has not made any provision towards the above and thus we remain unable to quantify the implication of the above scheme of restructuring in our report.

3. During the year, the company has reduced the carrying cost of its Plant & Machinery by the quantum of interest and principal which had been capitalized by the Company. An additional amount which represents the value of Capital Repairs undertaken in respect of the said plant & machineries during the production trial run period, has been reduced and reclassified under Other Non-Current Assets, pursuant to the advice of the technical evaluation team. Accordingly, during the year the cost of Plant & Machinery have been decreased to account for the above reduction of carrying cost of the plant as also Capital Repairs to bring the value of the Plant at its reasonable realistic value as per the technical evaluation team. The company has claimed a rebate on the Interest during the year which represents cessation of the interest liability in respect of its Secured Loans availed during the earlier years.

4. The Directors of the Company have certified that Current Assets, Loans, Advances and Deposits have a realizable value at least equal to the amount at which they are stated in the Balance Sheet. Directors are of the opinion that provision for all known liabilities has been made during the year and not in excess of the amount reasonably necessary.

5. The Company has not yet been able to completely identify the suppliers covered under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. However, the Company does not have any claim for interest outstanding at the dose of the year from any said party.

6. Balances of Sundry Creditors, Debtors and advances are subject to reconciliation and confirmation.

7. The financial statements have been prepared covering for the period of six months from 1 st of October 2014 to 31 st of March 2015 whereas the previous year cover a period of year ended 30thSeptember, 2014. The figures pertaining to previous year have been regrouped/reclassified wherever required.

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Sep 30, 2014

1. Contingent Liabilities

As at 30th September

2014 2013 Rupees in Rupees in Lacs Lacs a. Guarantee given by the company''s Bankers 26.00 26.00 and Counter guaranteed by the company

b. Claims against the company not acknowledged 1600.00 1600.00 as Debts*

c. Liability towards Sales Tax Assessment 382.00 382.00

d. Liability towards Central Excise Dues 540.00 540.00

* A claim has been filed during the earlier year by a creditor for Rs. 1600.00 Lacs which is over & above its claims.

2. The company has incurred Cash Losses during the year as well as in the earlier year and accordingly has been covered under the definition and provisions of The Sick Industrial Companies (Special Provisions) Act, 1985. The company has made an application with the Board of Industrial & Financial Restructuring under the provisions of the Act. The application remains under process during the year and the company is awaiting further instruction and intimations from the respective authority and forums.

3. During the earlier year, the company had approached the bank consortium with a scheme of restructuring, detailing the causes and reasons of its defaults and the bankers had approved the restructuring proposal, thereby sanctioning and approving a scheme of financial restructuring. However the said scheme of restructuring could not be implemented by the bankers during the earlier year and the company has been pursuing its case with the respective bankers. However the bankers, Bank of Baroda & State Bank of India have transferred their respective assets to an Assets Reconstruction Company. The company remains committed to settle the issue amicably and has approached the Financial Institutions with a proposal for settlement of the dues on reasonable terms, the same remains under consideration and process with the concerned authority. No provision towards the above has been considered in the preparation of the Financial Statements and thus we remain unable to quantify the implication of the above scheme of restructuring in our report.

4. The company had been availing the benefit of exemption under the erstwhile Bombay Sales Tax Act, 1959 which was converted into deferment of taxes under the package scheme of incentives under the Maharashtra Value Added Tax Act, 2002 from August 2006. Further the company shall be liable to repay the taxes collected under the deferment scheme within 10 years from the date of such collection and deferment in 5 equal annual installments. The Management has not made any provision for the same in the accounts during the year under consideration as in its opinion the company is eligible for adequate refunds due on account with the Maharashtra Value Added Tax Department which shall be adjusted off against the above dues upon its assessment. However the company has classified the total liability of Rs. 382.00 Lacs as Contingent Liability in Schedule 25 A (12) above.

5. The Company has not provided for liability towards its Gratuity and Leave Encashment payable to employees on retirement as the same are accounted for on cash basis by the company. The same is not in consonance with the provisions of AS-15 "Accounting for Retirement Benefits in Financial Statements" issued by the Institute of Chartered Accountants of India and the liabilities and the losses for the year remain understated by the amount of such non provision of Employee benefits.

6. The Directors of the Company have certified that Current Assets, Loans, Advances and Deposits have a realizable value at least equal to the amount at which they are stated in the Balance Sheet. Directors are of the opinion that provision for all known liabilities has been made during the year and not in excess of the amount reasonably necessary.

7. The Company has not yet been able to completely identify the suppliers covered under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. However, the Company does not have any claim for interest outstanding at the close of the year from any said party.

8. Balances of Sundry Creditors, Debtors and advances are subject to reconciliation and confirmation.

9. Figures pertaining to previous year have been regrouped / reclassified wherever required.

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Sep 30, 2013

1. The excise duty paid in respect of raw materials purchased and used for manufacture does not form part of consumption of raw materials to the extent of the CENVAT credit availed. Such duty is debited to Central Excise Duty Account and adjusted against excise duty payable on the finished goods.

The excise duty payable on stock of finished goods not cleared from excise bonded warehouse is neither included in expenses nor in the value of such stocks but ts accounted for on clearance of goods However, non-provision of this liability will not affect the profit for the year.

2. The company had been availing the benefit of exemption under the erstwhile Bombay Sales Tax Act, 1959 which was converted into deferment of taxes under the package scheme of incentives under the Maharashtra Value Added Tax Act, 2002 from August 2006.

During the year the eligibility tenure of the said scheme has elapsed and the company is- liable for payment of taxes collected as per the stipulation of the said act. Further the company shall be liable to repay the taxes collected under deferment scheme within 10 years from the date of such collection and deferment in 5 equal annual installments.

3. During the year, the company has approached the bank consortium with a scheme of restructuring detailing the causes and reasons of such defaults and during the year the bankers have approved the restructuring proposal thereby sanctioning and approving a scheme of financial restructuring. Accordingly the accumulated overdue interests on the above loans have been sanctioned as a fresh Term Loan under the said scheme of financial restructuring and the fresh tenure of moratorium has been accorded to the company. During the year the company is availing the sanctioned period of moratorium as per the sanctioned restructuring scheme. -

4. The Sales Tax incentives Scheme 1993 of SICOM provides that the unit should work for 35 years or during the currency of the Sales Tax Benefits/other benefits drawn/availed of under the 1993 Scheme by way of incentives there under, whichever longer. Accordingly, the Sales Tax benefits availed by the company is subject to compliance of the terms and conditions of the said scheme. The company has opted for Deferral Scheme of Sales Tax liability. Accordingly the sales tax liability shall be repayable after Ten years in five equal annual installments.

The Management has not made any provision for the same in the accounts during the year under consideration. In our opinion the short term liabilities and the losses for the year remain understated by the amount of such pro-rata installment due on account of the repayment of the Deferred Sales Tax benefit availed by the company in the earlier years.

5. The Directors of the Company have certified that Current Assets, Loans, Advances and Deposits have a realizable value at least equal to the amount at which they are stated in the Balance Sheet. Directors are of the opinion that provision for all known liabilities has been made during the year and not in excess of the amount reasonably necessary.

6. The Company has not yet been able to completely identify the suppliers covered under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. However, the Company does not have any claim for interest outstanding at the close of the year from any said party.

7. Balances of Sundry Creditors, Debtors and advances are subject to reconciliation and confirmation.

8. Figures pertaining to previous year have been regrouped / reclassified wherever required.

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Sep 30, 2012

1. Contingent Liabilities

As at 30th September 2012 2011 Rupees in Lacs Rupees in Lacs

a. Guarantee given by the company''s Bankers and Counter guaranteed by the company 26.00 26.00

b. Claims against the company not acknowledged as 69.30 148.51 Debts*

* A claim filed by a Creditor of the company in respect of Letter of Credit Dues dishonored by the bank during the previous year has been decided by the Honorable High Court. The above dues shall be payable by the company in 15 equal monthly installments commencing from 01/2/2012.

1. The excise duty paid in respect of raw materials purchased and used for manufacture does not form part of consumption of raw materials to the extent of the CENVAT credit availed. Such duty is debited to Central Excise Duty Account and adjusted against excise duty payable on the finished goods.

The excise duty payable on stock of finished goods not cleared from excise bonded warehouse is neither included in expenses nor in the value of such stocks but is accounted for on clearance of goods. However, non-provision of this liability will not affect the profit for the year.

2. The company had been availing the benefit of exemption under the erstwhile Bombay Sales Tax Act, 1959 which was converted into deferment of taxes under the package scheme of incentives under the Maharashtra Value Added Tax Act, 2002 from August 2006.

During the year the eligibility tenure of the said scheme has elapsed and the company is liable for payment of taxes collected as per the stipulation of the said act. Further the company shall be liable to repay the taxes collected under deferment scheme within 10 years from the date of such collection and deferment in 5 equal annual installments.

3. During the year, the company has approached the bank consortium with a scheme of restructuring detailing the causes and reasons of such defaults and during the year the bankers have approved the restructuring proposal thereby sanctioning and approving a scheme of financial restructuring. Accordingly the accumulated overdue interests on the above loans have been sanctioned as a fresh Term Loan under the said scheme of financial restructuring and the fresh tenure of moratorium has been accorded to the company. During the year the company is availing the sanctioned period of moratorium as per the sanctioned restructuring scheme.

4. The Sales Tax incentives Scheme 1993 of SICOM provides that the unit should work for 35 years or during the currency of the Sales Tax Benefits/other benefits drawn/availed of under the 1993 Scheme by way of incentives there under, whichever longer. Accordingly, the Sales Tax benefits availed by the company is subject to compliance of the terms and conditions of the said scheme. The company has opted for Deferral Scheme of Sales Tax liability. Accordingly the sales tax liability shall be repayable after Ten years in five equal annual installments.

The Management has not made any provision for the same in the accounts during the year under consideration. In our opinion the short term liabilities and the losses for the year remain understated by the amount of such pro-rata installment due on account of the repayment of the Deferred Sales Tax benefit availed by the company in the earlier years.

5. The Directors of the Company have certified that Current Assets, Loans, Advances and Deposits have a realizable value at least equal to the amount at which they are stated in the Balance Sheet. Directors are of the opinion that provision for all known liabilities has been made during the year and not in excess of the amount reasonably necessary.

6. The Company has not yet been able to completely identify the suppliers covered under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. However, the Company does not have any claim for interest outstanding at the close of the year from any said party.

7. Balances of Sundry Creditors, Debtors'' and advances are subject to reconciliation and confirmation.

8. Figures pertaining to previous year have been regrouped / reclassified wherever required.

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Sep 30, 2011

The excise duty paid in respect of raw materials purchased and used for manufacture does not form part of consumption of raw materials to the extent of the CENVAT credit availed. Such duty is debited to Central Excise Duty Account and adjusted against excise duty payable on the finished goods.

The excise duty payable on stock of finished goods not cleared from excise bonded warehouse is neither included in expenses nor in the value of such stocks but is accounted for on clearance of goods. However, non- provision of this liability will not affect the profit for the year.

The company had been availing the benefit of exemption under the erstwhile Bombay Sales Tax Act, 1959 which was converted into deferment of taxes under the package scheme of incentives under the Maharashtra Value Added Tax Act, 2002 from August 2006.

During the year the eligibility tenure of the said scheme has elapsed and the company is liable for payment of taxes collected as per the stipulation of the said act. Further the company shall be liable to repay the taxes collected under deferment scheme within 10 years from the date of such collection and deferment in 5 equal annual installments.

Contingent Liabilities

As at 31st March

2011 2010 Rupees in Lacs Rupees in Lacs

a. Guarantee given by the company's Bankers and Counter guaranteed by the company 26.00 1.00

b. Claims against the company not acknowledged as Nil 148.51 Debts*

* A claim filed by a Creditor of the company in respect of Letter of Credit Dues dishonoured by the bank during the previous year has been decided by the Honourable High Court. The above dues shall be payable by the company in 15 equal monthly installments commencing from 01/2/2012.

During the year, the company has approached the bank consortium with a scheme of restructuring detailing the causes and reasons of such defaults and during the year the bankers have approved the restructuring proposal thereby sanctioning and approving a scheme of financial restructuring. Accordingly the accumulated overdue interests on the above loans have been sanctioned as a fresh Term Loan under the said scheme of financial restructuring and the fresh tenure of moratorium has been accorded to the company. During the year the company is availing the sanctioned period of moratorium as per the sanctioned restructuring scheme.

The Directors of the Company have certified that Current Assets, Loans, Advances and Deposits have a realizable value at least equal to the amount at which they are stated in the Balance Sheet. Directors are of the opinion that provision for all known liabilities has been made during the year and not in excess of the amount reasonably necessary.

The Company has not yet been able to completely identify the suppliers covered under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. However, the Company does not have any claim for interest outstanding at the close of the year from any said party.

Figures pertaining to previous year have been regrouped / reclassified wherever required.

Balances of Sundry Creditors, Debtors and advances are subject to reconciliation and confirmation.

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Sep 30, 2010

The excise duty paid in respect of raw materials purchased and used for manufacture does not form part of consumption of raw materials to the extent of the CENVAT credit availed. Such duty is debited to Central Excise Duty Account and adjusted against excise duty payable on the finished goods.

The excise duty payable on stock of finished goods not cleared from excise bonded warehouse is neither included in expenses nor in the value of such stocks but is accounted for on clearance of goods. However, non- provision of this liability will not affect the profit for the year.

Contingent Liabilities

As at 31- March 2010 Rupees in Lacs

a. Guarantee given by the companys Bankers and Counter guaranteed by the company Nil

b. Claims against the company not acknowledged as 148.51 Debts*

* A claim filed by a Creditor of the company is pending in the. High Court in respect of Letter of Credit Dues dishonoured by the bank. The company has called for the honour of the dues citing adequate credits claimed by the bank against the same to which the bank has certain disputes. The company had credit balances remaining to its account in the said bank which to date remains in the custody of the bank. The company has appealed for relief against the above claim from the High Court.

During the year, the company has defaulted in repayment of its Term Loans and Cash Credit Loans. The company has not been able to service its Loan from the quarter ended March 2010 and June 2010. The principal as well as the interest component remain due from the above periods. The total sums due in respect of the same is Rs. 614.70 Lacs. The company has initiated a re-negotiation process with the banking institutions with respect to the above loans. The terms and conditions thereof still remain under consideration by the banks.

The Directors of the Company have certified that Current Assets, Loans, Advances and Deposits have a realizable value at least equal to the amount at which they are stated in the Balance Sheet Directors are of the opinion that provision for al known liabilities has been made during the year and not in excess of the amount reasonably necessary.

The Company has not yet been able to completely identify the suppliers covered under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. However, the Company does not have any Claim for interest outstanding at the close of the year from any said party.

Figures pertaining to previous year have been regrouped/reclassified wherever required.

Balances of Sundry Creditors, Debtors and advances are subject to recontiliation and confirmation.

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Sep 30, 2009

The excise duty paid in respect of raw materials purchased and used for manufacture does not form part of consumption of raw materials to the extent of the CENVAT credit availed. Such duty is debited to Central Excise Duty Account and adjusted against excise duty payable on the finished goods.

The excise duty payable on stock of finished goods not cleared from excise bonded warehouse is neither included in expenses nor inthe value of such stocks but is accounted for on clearance of goods. However, non- provision of this liabjlity will not affect the profit for the year.

The Directors of the Company have certified that Current Assets, Loans, Advances and Deposits have a realizable value at least equal to the amount at which they are stated in the Balance Sheet. Directors are of the opinion that provision for all known liabilities has been made during the year and not in excess of the amount reasonably necessary.

The Company has not yet been able to completely identify the suppliers covered under Interest on Delayed Payments to Small Scale and Ancillary Industrial Undertakings Act, 1993. However, the Company does not have any claim for interest outstanding at the close of the year from any said party.

Figures pertaining to previous year have been regrouped/redassified wherever required.

Balances of Sundry Creditors, Debtors and advances are subject to reconciliation and confirmation.