Notes to Accounts of Alliance Integrated Metaliks Ltd.

Mar 31, 2024

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the Company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority. As the Company has brought forward losses, the management as a prudent policy, has decided not to provide for Deferred Tax Asset for the current year.

b) Term and right Attched to equity shares

The Company has only one class of equity shares having a par value of Re.1/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend 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 holder of equity share will be entitled to received the remaining assets of the company, after distribution of all preferential amount. The distributation will be in proportion to the no of equity shares held by the shareholders.

* The Board of Directors in its meeting held on July 31, 2023 and the Shareholders in the 34th Annual General Meeting (AGM) held on 29th August, 2023 considered and approved the Variation/alteration of preference shareholders rights by issue and allotment of 6,21,00,000 1% Compulsorily Convertible Preference Shares (CCPS) of Rs. 10 each. The Board of Directors further in its meeting held on January 22, 2024 considered & approved the conversion of 6,21,00,000 1 % Compulsorily Convertible Preference Shares (CCPS) of Rs. 10 each into 1,55,25,000 equity shares of face value Re.1/- at a premium of Rs. 39 each.

* These loans has been assigned to a Asset Reconstruction Company ( Prudent ARC) by the Banks in the FY-2022-2023 ''^{1 2} Secured by first charge by way of hypothecation of current assets including stocks of raw materials, finished goods and stock in progress, stores & spares and bookdebts and second and subservient charge by way of hypothecation of all immovable & movable fixed assets.

“‘.Rupee Loan of 12,536.75 lakh includes Principal Rs.5,621.13 and interest of Rs.6,915.62 Lakh under other finacial liabilities (Previous year Principal Rs. 5,738.36 and interest of Rs. 5,567.58 Lakh) from a ARC is secured by First Pari-Passu charge on the all immoveable and moveable Fixed Assets (including mortgage of project land and proposed construction thereon) of the Project and second Pari-Passu charge on the Current Assets of the Company. Collateral Security - Corporate Guarantee of Promoter Company.

*** Rupee Loan of 11,621.11 lakh includes Principal Rs. 4,492.74 and interest of Rs.7,128.37 Lakh under other finacial liabilities(Previous Year Principal Rs. 4,586.42 and interest of Rs.5,761.51 Lakh ) from a Bank is secured by First Charge by the way of Equitable Mortgage and hypothecation on the entire movable and immovable fixed assets of the Company

including factory Land & Building and hypothecation of all Plant & Machinery and movable and immovable fixed assets

(existing and proposed) ranking Pari-Passu with the other lenders to the company and second charge on entire current assets of the Company ranking Pari-Passu with the other term lenders to the Company (first Charge shall be remian with the Working capital lenders).

*“ Rupee Loan 10,045.63 lakh includes Principal Rs. 4,936.09 and interest of Rs.5,109.54 Lakh under other finacial liabilities (Previous Year Principal Rs. 5,039.03 and interest of Rs.4,015.45 Lakh) from a Bank is secured by First Charge by the way of Equitable Mortgage and hypothecation on the entire movable and immovable fixed assets of the company

(existing and proposed) ranking Pari-Passu with the other participating lenders to the projects, save and except Current assets on which the working capital lender have first charge.

* The Board of Directors in its meeting held on July 31, 2023 and the Shareholders in the 34th Annual General Meeting (AGM) held on 29th August, 2023 considered and approved the Variation/alteration of Redemable Preference Shareholders(RPS) rights by issue and allotment of 6,21,00,000 1% Compulsorily Convertible Preference Shares (CCPS) of Rs. 10 each. As a result the interest liability which was recoginized in earlier years till date of conversion of such RPS into CCPS has been written back.

3.32 Post retirement benefits plans (Ind AS 19).

Defined Benefit Plan The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

3.33 Segment reporting

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making decisions about allocating resources to the segment and assessing its performance. The business activity of the Company falls within one broad business segment viz. Fabrication of Steel Structure and the Revenue generated is within the country. Hence, the disclosure requirement of Ind AS 108 of ‘Segment Reporting’ is not considered applicable.

3.34 Going Concern

The Company’s financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. It has to be noted that the company has accumulated losses and negative net worth as on 31/03/2024. The current liabilities are exceeding the current assets due to the reason that the Term/Working Capital loans including interest accrued which has been classified by the lenders as NPA are accounted under the head Current liabilities. The Company is in active discussion with the lenders for resolution of the debt. Considering the continuity of the operations, positive EBITDA, Central Government thrust on the development of Infrastructure projects in the country and the encouraging order book of the company, maintaining a going concern basis of accounting is appropriate.

* Amounts due to micro and small enterprises as defined in “The Micro, Small and Medium Enterprises Development at Act, 2006” has been determined to the extent of information received from the suppliers regarding their status under “The Micro, Small and Medium Enterprises Development at Act, 2006” (MSMED Act) and the same has been relied upon by the Auditors.

Note. 3.36 Other disclosures

The loan of Rs. 46,226.48 Lakhs including interest accrued and due thereon from Banks & Financial Institutions have been declared as non performing assets (NPA) by these lenders in earlier years as the repayments and interest against these loans have become overdue. The company is in active discussion with its lenders for resolution of their debts.

3.39 Fair value measurement

The management considers that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair value unless otherwise stated.

3.40 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s financial assets include Investment, loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations. Since all the term loans have already been catergorised as NPA and turned as payable on demand the impact of Market risk and Liquidity risk have not been considered.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompassess of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of the customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist if trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk, except for trade receivables.

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

The cutstomer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The Company closely monitors the credit-worthiness of debtors through internal system that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts.

3.41 Capital management

For the purpose of the Company''s capital management,capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximised the shareholder value.

The Company manages its capital structure in consideration to the changes in the economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, borrowings including interest accrued on borrowings less cash and short term deposits.

* Since, the Company is having negative networth, the gearing ratio is negative. The Company intends to regain a strong capital base through resolution of debt so as to maintain investor, creditor and market confidence and sustain future development of the business. Management monitors the operational performance as well as development of the customer base to enhance the overall return on Capital.

3.44 Balance confirmation and reconciliation

The reconciliation with the vendors and customers are done at the time of final settlement with them. It is the nature of the Business. The reconciliation with the lending banks would be done post resolution of their debts. In view of this, its not possible to estimate the impact of the same if any, on the financial position and the financial results of the Company.

3.50 Other statutory information

(a) The Company does not have any Benami Property, where any proceeding has been initiated against the Company for holding any such Benami property.

(b) The Company does not have any transaction with companies struck off.

(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the

statutory period.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The Company has not been declared willful defaulter by any bank or financial institution or government or any

government authority.

(f) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(h) The Company has not 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 survey or any other relevant provisions of the Income Tax Act, 1961.

(i) There is no Subsidary company, hence clause (87) of section 2 of the act with companies rules 2017 will not be applicable,

(j) During the year the company has not received any borrowed funds or share premium amount with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(k) During the year there were no scheme or arrangements under section 230-232.

3.51 Previous year’s figures have been re-grouped/re-classified wherever necessary, to confirm to the current year’s classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective April 1, 2021.

1

The Company has outstanding loans or borrowings which have been declared as non-performing assets (NPA) by these

2

lenders as the repayment against these loans has become overdue. The Company has classified its borrowings as current liabilities under Principal part of outstanding under "Borrowing" and interest part under ''Other Financial Liabilities''.

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Mar 31, 2023

2.2.3 Provisions and contingent liabilities

A provision is recognised when the company has a present obligation as a result of past event and it is probable than an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions are discounted to its present value and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the current best estimates. Contingent liabilities are not

recognized in the financial statements. However the detail of existing contingencies Liabilities as on 31st March, 2022 is provided in Note no. 3.42. A contingent asset is neither recognized nor disclosed in the financial statements. However, if the realisation is virtually certain then the related asset ceases to be a Contingent Asset and therefore recognised.

2.3 Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivables. Amounts disclosed as revenue are exclusive of GST and net of returns, trade allowances, rebates, discounts, value added taxes.

The Company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the Company and specific criteria have been met for each of the Company’s activities as described below.

a. Sale of goods

The Company recognises revenue when control over the promised goods or services is transferred to the customer at an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. Revenue is adjusted for variable consideration such as discounts, rebates, refunds, credits, price concessions, incentives, or other similar items in a contract when they are highly probable to be provided.

The amount of revenue excludes any amount collected on behalf of third parties. The Company recognises revenue generally at the point in time when the products are delivered to customer or when it is delivered to a carrier for export sale, which is when the control over product is transferred to the customer. In contracts where freight is arranged by the Company and recovered from the customers, the same is treated as a separate performance obligation and revenue is recognized when such freight services are rendered.

In revenue arrangements with multiple performance obligations, the Company accounts for individual products and services separately if they are distinct i.e., if a product or service is separately identifiable from other items in the arrangement and if a customer can benefit from it. The consideration is allocated between separate products and services in the arrangement based on their stand-alone selling prices. Revenue from sale of by products are included in revenue. Revenue from sale of goods is recognised when delivered and measured based on the bilateral contractual arrangements.

b. Contract balances

i. Contract assets

A contract asset is the right to consideration in exchange for goods or services transferred to the customer. If the Company performs by transferring goods or services to a customer before the customer pays consideration or before payment is due, a contract asset is recognized for the earned consideration including Trade receivables.

ii. Contract liabilities

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier). Contract liabilities are recognised as revenue when the Company performs under the contract including Advance received from Customer

iii. Refund liabilities

A refund liability is the obligation to refund some or all of the consideration received (or receivable) from the customer and is measured at the amount the Company ultimately expects it will have to return to the customer including volume rebates and discounts. The Company updates its estimates of refund liabilities at the end of each reporting period

iv. Construction contracts

When the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to the stage of completion of the contract activity at the end of the reporting period, measured based on the proportion of contract costs incurred for work performed to date relative to the estimated total contract costs, except where this would not be representative of the stage of completion. Variations in contract work, claims and incentives payments are included to the extent that the amount can be measured reliably and its receipt is considered probable.

When the outcome of a construction contract cannot be estimated reliably, contract revenue is recognized to the extent of contract cost incurred that it is probable will be recoverable. Contract costs are recognized as an expense in the period in which they are incurred.

When it is probable that total contract costs will exceed total contract revenue, the expected loss is recognized as an expense immediately.

c. Dividend and interest income

Dividend income from investments is recognized when the shareholder’s right to receive payment has been established (provided that it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably).

Interest income from a financial asset is recognised when it is probable that the economic benefits will flow to the Group and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to that asset’s net carrying amount on initial recognition.

2.4 Employee benefits

a. Long Term Employee Benefits

The liability for gratuity & leave encashment is determined using Projected Unit Credit [PUC] Method and is accounted for on the basis of actuarial valuation in Accordance with IND AS - 19. The Company recognizes the net obligation of a defined benefit plan in its balance sheet as an asset or liability. Actuarial Gains and losses through re-measurements of the net defined benefit liability/(asset) are recognized in other comprehensive income. The current service cost is included in the employee benefit expense in the statement of profit & loss account. The interest cost calculated by applying the discount rate to the net balance of defined benefit obligation, is included in the finance cost in the statement of profit & loss account.

b. Short-Term Employee Benefits

Short- term employee benefits include performance incentive, salaries & wages, bonus and leave travel allowance. The undiscounted amount of short-term employee benefits expected to be paid in exchange for the services rendered by employees are recognized during the year when the employees render the services.

2.5 Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the interest costs. Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use are capitalised as part of the cost of the asset.

Processing fee paid for borrowings is amortized over the term of long term loan through statement of profit & loss. All other borrowing costs are expensed in the period in which they occur.

Preference Shares are separated into equity and liability components based on the terms of the issue / contract. Interest on liability component of preference shares is determined using amortized cost method and is charged to the statement of profit & loss.

2.6 Depreciation & amortization

The Company depreciates property, plant and equipment over their estimated useful lives using the straightline method. Depreciation methods, useful lives and residual values are reviewed at each reporting period.

Depreciation on additions/deductions to property, plant and equipment is provided on pro-rata basis from the date of actual installation or up to the date of such sale or disposal, as the case may be.

2.7 Impairment of Assets

The Company at each balance sheet date assesses whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The company recognizes lifetime expected losses for all contract assets and/or all trade receivables that do not constitute a financing transaction.

2.8 Income taxes

Income tax expense comprises current and deferred income tax. Income tax expense is recognised in net profit in the statement of profit and loss except to the extent that it relates to items recognised directly in equity, in which case it is recognised in other comprehensive income.

Deferred income tax assets and liabilities are recognized for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. The Company offsets current tax assets and current tax liabilities, where it has a legally enforceable right to set off the recognized amounts and where it intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Minimum Alternative Tax [MAT] paid in accordance with the tax laws, which gives rise to future economic benefits in the form of adjustment of future income tax liability, is considered as an asset if there is convincing evidence that the company will pay normal income tax in future periods. Accordingly, MAT is recognized as an asset in the balance sheet when it is probable that future economic benefits associated with it flow to the company and the asset can be measured reliably.

2.9 Property, Plant and Equipment

Property, plant and equipment are stated at cost, less accumulated depreciation /amortization and impairment, if any. Costs directly attributable to acquisition are capitalized until the property, plant and equipment are ready for use, as intended by management. The cost of property, plant & equipment also includes initial estimates of dismantling cost and restoring the site to its original position, on which the site is located. For transition to IND AS, the company has elected to continue with carrying value of all its property, plant and equipment recognized as on 01.07.2015 measured as per the previous GAAP in accordance with the principles of Part B of Schedule II of the Companies Act, 2013.

2.10 Financial Instruments

The company recognises financial assets and financial liabilities when it becomes a party to the contractual provisions of the instrument. All financial assets (except net investments) and financial liabilities (except borrowings) are recognised at fair value on initial recognition, except for trade receivables and security deposits, which are initially measured at transaction price. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities that are not at fair value through profit or loss are added to the fair value on initial recognition.

Financial liabilities are subsequently carried at amortised cost using the effective interest method, except for contingent consideration recognised in a business combination, which is subsequently measured at fair value through profit and loss.

For trade and other payables maturing within one year from the balance sheet date, the carrying amounts are approximately at fair value due to the short maturity of these instruments.

De-recognition of financial instruments

The Company de-recognises a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the financial asset and the transfer qualifies for de-recognition under IND AS 109. A financial liability (or a part of a financial liability) is de-recognized from the company’s balance sheet when the obligation specified in the contract is discharged or cancelled or expires.

2.11 Borrowings

Borrowings are initially measured at fair value, net of transaction costs incurred. Borrowings are subsequently measured at amortized cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is recognized in profit or loss over the period of the borrowings using the effective interest method.

Preference shares are separated into liability and equity components based on the terms of the issue / contract. On issuance of the preference shares, the fair value of the liability component is determined using a market rate for an equivalent instrument. This amount is classified as financial liability and is measured at amortized cost (net of transaction costs) until it is extinguished on conversion or redemption. The remainder of the proceeds is recognized and included in equity. Transaction costs are deducted from equity, net of associated income tax. The carrying amount of the equity component is not re-measured in subsequent years.

2.12 Investments

a. Investment in subsidiaries

Investment held by the company in subsidiaries as on the date of transition date i.e. 01.07.2015 is valued at cost. Investments made in subsidiaries, after the transition date, have been valued at Fair Value through Other Comprehensive Income [FVTOCI].

b. Investment in associates / Joint Ventures

Investment held by the Company in associates / joint ventures as on the date of transition date i.e. 01.07.2015 is valued at cost. Investments made in associates / joint ventures, after the transition date, have been valued at Fair Value through Other Comprehensive Income [FVTOCI].

c. Investment - Others Current Investments

Quoted financial assets have been classified as FVTOCI and unquoted financial assets have been classified as Fair Value through Profit & Loss [FVTPL].

Non-Current Investments

Quoted long term investments have been classified as FVTOCI and unquoted long term investments are have been classified as FVTPL.

2.13 Inventories

a. Raw Materials: Goods under process and Finished Goods are valued at cost (Net of provision for diminution) or *Net Realisable value, whichever is lower.

b. Waste and Scrap: Waste and scrap is valued at Net Realisable Value.

c. Valuation of Raw Materials: Cost of inventories of Raw Materials and stores and Spares is ascertained on FIFO basis.

d. Valuation of WIP: Cost of goods under process comprise of cost of materials and proportionate production overhead. Cost of material for this purpose is ascertained on FIFO basis.

e. Provision for obsolescence in inventories is made, whenever required.

*Net Realizable Value is the estimated selling price in the ordinary course of business less any applicable selling expenses.

2.14 Earnings per equity share

Basic earnings per equity share are computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares outstanding during the period. Diluted earnings per equity share is computed by dividing the net profit attributable to the equity holders of the company by the weighted average number of equity shares considered for deriving basic earnings per equity share and also the weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. The

dilutive potential equity shares are adjusted for the proceeds receivable had the equity shares been actually issued at fair value (i.e. the average market value of the outstanding equity shares). Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted retrospectively for all periods presented for any share splits and bonus shares issues including for changes effected prior to the approval of the financial statements by the Board of Directors.

2.15 Cash and Cash Equivalents

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short term, highly liquid investments that are readily convertible into known amounts of cash and which are subject to an insignificant risk of changes in value.

2.16 Cash Flow Statement

Cash flows are reported using the indirect method, except in case of dividend which has been considered on the basis of actual movement of cash with corresponding adjustments of assets and liabilities and where by profit for the period is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and items of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and financing activities of the Company are segregated.

2.17 Dividends

Final dividends on shares are recorded as a liability on the date of approval by the shareholders and interim dividends are recorded as a liability on the date of declaration by the Company’s Board of Directors.

2.18 Leases

As a lessee, the Company recognises a Right-Of-Use of asset and a lease liability at the lease commencement date. The Right-Of-Use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier of the end of the useful life of the Right-Of-Use asset or the end of the lease term. The estimated useful lives of Right-Of-Use assets are determined on the same basis as those of property and equipment. In addition, the Right-Of-Use asset is periodically reduced by impairment losses, if any, and adjusted for certain re-measurements of the lease liability. The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined the Company’s incremental borrowing rate. Generally, the Company uses its incremental borrowing rate as the discount rate. Lease payments included in the measurement of the lease liability comprise the following: a) Fixed payments, including in-substance fixed payments; b) Variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; c) Amounts expected to be payable under a residual value guarantee; and d) the exercise price under a purchase option that the Company is reasonably certain to exercise, lease payments in an optional renewal period if the Company is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Company is reasonably certain not to terminate early.

The lease liability is measured at amortised cost using the effective interest method. It is re-measured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Company’s estimate of the amount expected to be payable under a residual value guarantee, or if company changes its assessment of whether it will exercise a purchase, extension or termination option. When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the right-of-use asset has been reduced to zero.

Short-term leases and leases of low-value assets

The Company has elected not to recognise Right-Of-Use assets and lease liabilities for short-term leases of assets that have a lease term of upto 12 months. The Company recognises the lease payments associated with these leases as an expense on a straight-line basis over the lease term.

2.19 Offsetting financial instruments

Financial assets and liabilities are offset and the net amount is reported in the balance sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

2.20 Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that the transaction to sell the asset or transfer the liability takes place either in the principal market for the assets or liabilities, or in the absence of a principal market, in the most advantageous market for the assets or liabilities. The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset in its highest and best use. The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

All 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:

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

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

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 recognised 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 or each case.

For the purpose of fair 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. This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

> Disclosures for valuation methods, significant estimates and assumptions.

> Quantitative disclosures of fair value measurement hierarchy.

> Investment in unquoted equity shares

> Financial instruments

2.21 Current versus non-current classification

All assets and liabilities have been classified as current or non-current as per Company’s normal operating cycle and other criteria set out in the Schedule III to the Act.

b) Term and right Attched to equity shares

The Company has only one class of equity shares having a par value of Rs.1/- per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend 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 holder of equity share will be entitled to received the remaining assets of the company, after distribution of all preferential amount. The distributation will be in proportion to the no of equity shares held by the shareholders.

* These loans has been assigned to an Asset Reconstruction Company (Prudent ARC) by the Banks in Current Financial Year.

** Secured by first charge by way of hypothecation of current assets including stocks of raw materials, finished goods and stock in progress, stores & spares and bookdebts and second and subservient charge by way of hypothecation of all immovable & movable fixed assets.

*** Rupee Loan of 11,305.94 lakh includes Principal Rs.5,738.36 and interest of Rs.5,567.58 Lakh (Previous year Principal Rs. 5,875.34 and interest of Rs. 4,457.60 Lakh) from a ARC is secured by First Pari-Passu charge on the all immoveable and moveable Fixed Assets (including mortgage of project land and proposed construction thereon) of the Project and second Pari-Passu charge on the Current Assets of the Company. Collateral Security - Corporate Guarantee of Promoter Company.

*** Rupee Loan of 10,347.93 lakh includes Principal Rs. 4,586.42 and interest of Rs.5,761.51 Lakh (Previous Year Principal Rs. 4,695.75 and interest of Rs.4,625.51 Lakh ) from a Bank is secured by First Charge by the way of Equitable Mortgage and hypothecation on the entire movable and immovable fixed assets of the Company including factory Land & Building and hypothecation of all Plant & Machinery and movable and immovable fixed assets (existing and proposed) ranking Pari-Passu with the other lenders to the company and second charge on entire current assets of the Company ranking Pari-Passu with the other term lenders to the Company (first Charge shall be remian with the Working capital lenders).

*** Rupee Loan 9,054.48 lakh includes Principal Rs. 5,039.03 and interest of Rs.4,015.45 Lakh (Previous Year Principal Rs. 5,159.14 and interest of Rs.3,099.94 Lakh) from a Bank is secured by First Charge by the way of Equitable Mortgage and hypothecation on the entire movable and immovable fixed assets of the company (existing and proposed) ranking Pari-Passu with the other participating lenders to the projects, save and except Current assets on which the working capital lender have first charge.

3.33 Post retirement benefits plans (Ind AS 19).

Defined Benefit Plan The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service.

3.34 Segment reporting

According to Ind AS 108, identification of operating segments is based on Chief Operating Decision Maker (CODM) approach for making decisions about allocating resources to the segment and assessing its performance. The business activity of the Company falls within one broad business segment viz. Fabrication of Steel Structure and the Revenue generated is within the country. Hence, the disclosure requirement of Ind AS 108 of ‘Segment Reporting’ is not considered applicable.

3.35 GOING CONCERN

The Company’s financial statements are prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of obligations in the normal course of business. It has to be noted that the company has accumulated losses and negative net worth as on 31/03/2023. The current liabilities are exceeding the current assets due to the reason that the outstanding term/Working Capital loans including accrued interest are accounted under the Head of Current liabilities as the same has been termed as NPA by the lenders. The Company is in active discussion with the lenders for resolution of the debt. Considering the continuity of the operations, positive EBITDA, Central Government thrust on the development of Infrastructure projects in the country and the encouraging order book of the company, maintaining a going concern basis of accounting is appropriate.

3.36 Dues of micro and small enterprises

Based on the available information, Disclosures relating to dues of Micro and Small enterprises under section 22 of ‘The Micro, Small and Medium Enterprises Development Act, 2006, are given below.

Note. 3.37 Other disclosures

The Company has outstanding loans Rs. 41174.28 Lakhs including interest accrued and due thereon from Banks & ARC which have been declared as non-performing assets (NPA) by these lenders in earlier years as the repayments and interest against these loans have become overdue. In the current FY 2022-23, the company has settled its outstanding debts with Bank of Baroda through One Time Settlement (OTS) and the impact of the same has been disclosed in the Exceptional Item of Profit & Loss A/c. The company is in active discussion with other lenders also for similar resolutions. Further, the Company has classified all its borrowings from banks & Financial institution as current liabilities.

3.40 Fair value measurement

The management considers that the carrying amounts of financial assets and financial liabilities recognised in the financial statements approximate their fair value unless otherwise stated.

3.41 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s financial assets include Investment, loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations. Since all the term loans have already been catergorised as NPA and turned as payable on demand the impact of Market risk and Liquidity risk have not been considered.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompassess of both, the direct risk of default and the risk of deterioration of creditworthiness as well as concentration of risks. Credit risk is controlled by analysing credit limits and creditworthiness of the customers on a continuous basis to whom the credit has been granted after obtaining necessary approvals for credit. Financial instruments that are subject to concentrations of credit risk principally consist if trade receivables, investments, cash and cash equivalents, bank deposits and other financial assets. None of the financial instruments of the Company result in material concentration of credit risk, except for trade receivables.

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Trade receivables

The cutstomer credit risk is managed by the Company''s established policy, procedures and control relating to customer credit risk management. The Company closely monitors the credit-worthiness of debtors through internal system that are configured to define credit limits of customers, thereby, limiting the credit risk to pre-calculated amounts.

3.42 Capital management

For the purpose of the Company''s capital management,capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximised the shareholder value.

The Company manages its capital structure in consideration to the changes in the economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, borrowings including interest accrued on borrowings less cash and short term deposits.

* Since, the Company is having negative networth, the gearing ratio is negative. The Company intends to regain a strong capital base through resolution of debt so as to maintain investor, creditor and market confidence and sustain future development of the business. Management monitors the operational performance as well as development of the customer base to enhance the overall return on Capital.

3.44 Balance confirmation and reconciliation

The reconciliation with the vendors and customers are done at the time of final settlement with them. It is the nature of the business. The reconciliation with the lending banks would be done post resolution of their debts. In view of this, it is not possible to estimate the impact of the same if any, on the financial position and the financial results of the company.

3.45 Revenue from contracts with Customers

1 Disaggregated Revenue Information

The disaggregation of Company’s Revenue from the contracts with customers is set out below: Revenue from Operations

3.51 Other statutory information

(a) The Company does not have any Benami Property, where any proceeding has been initiated against the Company for holding any such Benami property.

(b) The Company does not have any transaction with companies struck off.

(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the

statutory period.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The Company has not been declared willful defaulter by any bank or financial institution or government or any

government authority.

(f) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

(i) 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

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(h) The Company has not 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 survey or any other relevant provisions of the Income Tax Act, 1961.

(i) There is no Subsidary company, hence clause (87) of section 2 of the act with companies rules 2017 will not be applicable,

(j) During the year the company has not received any borrowed funds or share premium amount with the understanding that the Company shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Company (“Ultimate Beneficiaries”) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(k) During the year there were no scheme or arrangements under section 230-232.

3.52 Previous year’s figures have been re-grouped/re-classified wherever necessary, to confirm to the current year’s classification in order to comply with the requirements of the amended Schedule III to the Companies Act, 2013 effective April 1, 2021.

As per our report of even date attached

For Chatterjee & Chatterjee For and on Behalf of the Board of Directors of

Chartered Accountants Alliance Integrated Metaliks Limited

Firm registration no: 001109C

Sd/- Sd/-

Sd/- Daljit Singh Chahal Bhawani Prasad Mishra

BD Gujrati Whole time Director Director

Partner DIN : 03331560 DIN: 07673547

Membership No. 010878

Sd/- Sd/-

Place: New Delhi Pawan Kumar Malti Devi

Date : 26th May 2023 Chief Financial Officer Company Secretary

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Mar 31, 2018

1. Company Overview and Significant Accounting Policies

M/s. Alliance Integrated Metaliks Limited (hereinafter referred to as “AIML” or “the Company”) was established in the year 1989 by the name of B. S. Holdings and Credit Limited. The name of the company was changed to its present name in the year 2004.

The company has its production facility in Punjab to serve the Government and Private sector companies setting up power plants in India. The company intends to contribute its integrated facility to all major companies engaged in setting up power project by manufacturing and supplying heavy structures and equipment’s related to power plants.

The customer list of the company includes Delhi Metro Rail Corporation [DMRC], L & T, BHEL, AFCONS, HCC, Doosan Power Systems, BGR Energy Systems Limited, Gyatri Projects Ltd, Ashoka Builcons Ltd, Sadbhav Engineering Ltd etc.

The registered office of the company is situated at 910, Ansal Bhawan, 16, K. G. Marg, New Delhi - 110001. The shares of the company are listed on Bombay Stock Exchange.

*In current year, ARGL Limited associates of the company had registered losses which had affected its net worth. Given the losses in the business activities carried out by the associates, the Company had, as a matter of prudence, tested the investment in ARGL Limited impairment/diminution with reference to the value of assets. Accordingly, the Company had provided for impairment of 12,396.29 Lakhs in March 31, 2018, which is recognised as an exceptional item in the statement of profit and loss in current year.

*Out of the above shares of ARGL Limited, 94,20,187 Equity Shares have been pledged to Banks as additional security.

*Out of the above shares of ACIL Limited, 65,65,816 Equity Shares have been pledged to Banks as additional security.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Equity Shares : The Company currently has Issued equity shares having a par value of Rs 10/- per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend, if proposed by the Board of Directors , is subject to the approval of the shareholders in the in the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential payments. The distribution will be in proportion to the number of equity shares held by the shareholders. Preference Shares: The Company currently has Issued 1% non cumulative redeemable preference shares of Rs 10/- each. Preference shares will be redeemed after 18 years from the date of allotment at such premium as may be decided by the board of directors, subject to minimum equivalent to issue price.

Note No. 1. 1- Financial risk management objectives and policies Moderate credit risk

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

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Mar 31, 2016

Note No. 1

Previous year figures being for 12 months are not comparable with the figures of current period.

Note No. 2. RELATED PARTY DISCLOSURES & TRANSACTIONS

As per AS-18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said standard are disclosed below:

A) Names of related parties & description of relationship

1)	Holding Company	WLD Investments Pvt Ltd.
2)	Associates	(a)	ARGL Limited
		(b)	ACIL Limited
3)	Key Management Personnel	(a)	Shri Daljit Singh Chahal, Whole time
			Director
		(b)	Shri Pawan Kumar, Chief Financial
			Officer
		(c)	Ms. Ritika Kamboj, Company Secretary
			till 16.10.2016
		(d)	Ms. Prerna Wadhwa, Company
			Secretary w.e.f. 24.02.2016

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Jun 30, 2015

Terms of redemption of preference shares

Preference Shares will not be redeemed before 11 years & not later than 15 years from the date of allotment i.e May 2013 at such premium as may be decided by the board of Directors in accordance with the provisions of Companies Act, 2013 or any re-enactment thereof.

1.1 RECONCILIATION OF SHARE CAPITAL

The reconciliation of the number of Equity shares outstanding and the amount of Equity share capital as at June 30, 2014 and June 30, 2015 is set out below:

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Note No. 1.2 RELATED PARTY DISCLOSURES & TRANSACTIONS

As per AS-18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said standard are disclosed below:

A) Names of related parties & description of relationship

1) Holding Company WLD Investments Pvt Ltd.

2) Associates (a) ARGL Limited

(b) ACIL Limited

3) Key Management Personnel (a) Shri Mahesh Ochani, Managing

Director (upto Dec. 1, 2014)

(b) Shri Daljit Singh Chahal, Whole time Director (w.e.f. Dec. 2, 2014)

(c) Shri Pawan Kumar, Chief Financial Officer

(d) Ms. Ritika Kamboj, Company Secretary

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Jun 30, 2014

The Previous period figures have been regrouped / reclassified, wherever considered necessary to conform to the current year''s presentation.

Terms of redemption of preference shares

Preference Shares will not be redeemed before 11 years & not later than 15 years from the date of allotment i.e May 2013 at such premium as may be decided by the board of Directors in accordance with the provisions of Companies Act, 1956 or any re-enactment thereof.

1.1.1 RECONCILIATION OF SHARE CAPITAL

The reconciliation of the number of Equity shares outstanding and the amount of Equity share capital as at June 30, 2013 and June 30, 2014 is set out below:

Note:

Term Loans are secured by equitable mortgage of all immovable properties of the Company and hypothecation of movable assets, save and except the charge in favour of Banks & Financial Institutions over inventories and book debts to secure working capital limits.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Note: Working capital facilities are secured by hypothecation of raw material, semi-finished goods, stock-in process, consumable stores and book debts of the company.

1.2.1 CONTINGENT LIABILITIES (Rs. In Lacs)

Particulars For the year ended For the year ended 30th June, 2014 30th June, 2013

*Estimated amount of contracts remaining to be executed on capital account and not provided for NIL NIL

Bank Guarantees 2,189.54 2,217.73



Total 2,189.54 2,217.73

* Contingent Assets are neither recognised nor disclosed

Note No. 2.1 RELATED PARTY DISCLOSURES & TRANSACTIONS

As per AS-18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said standard are disclosed below:

A) Names of related parties & description of relationship

1) Holding Company WLD Investments Pvt Ltd.

2) Associates (a) ARGL Limited

(b) ACIL Limited

3) Key Management Personnel (a) Shri Mahesh Ochani

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Jun 30, 2013

The Previous period figures have been regrouped / reclassified, wherever considered necessary to conform to the current year''s presentation.

Terms of redemption of preference shares

Preference Shares will not be redeemed before 11 years & not later than 15 years from the date of allotment i.e May 2013 at such premium as may be decided by the board of Directors in accordance with the provisions of Companies Act, 1956 or any re-enactment thereof.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

1.1 CONTINGENT LIABILITIES

(Rs. In Lacs)

Particulars For the year ended For the year ended 30th June, 2013 30th June, 2012

*Estimated amount of contracts remaining to be executed on capital account and not provided for NIL 4,550.77 Bank Guarantees 2,217.73 63.42

Total 2,217.73 4,614.19

* Contingent Assets are neither recognised nor disclosed

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Jun 30, 2012

Note No : 1.1.1 RECONCILIATION OF SHARE CAPITAL

The reconciliation of the number of shares outstanding and the amount of share capital as at June 30, 2011 and June 30, 2012 is set out below:

Note:

1. The company has been sanctioned a term loan of Rs. 400 Crores from banks and has been availed only Rs. 307.18 Crores. The repayment schedule is based on the sanctioned term loan of Rs. 400 Crores only.

2. There is no default in repayment of loans and payment of interest as on Balance sheet date.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Note No : 1.1.2 CONTINGENT LIABILITIES (Amount in Rs.)

Particulars For the year ended For the year ended June 30, 2012 June 30, 2011

Estimated amount of contracts remaining to be executed on capital account and not provided for 455,076,846.00 838,524,380.00

Bank Guarantees 6,341,890.00 -

Total 461,418,736.00 838,524,380.00



* contingent assets are neither recognised nor disclosed

Note No : 1.2 RELATED PARTY DISCLOSURES & TRANSACTIONS

In accordance with the requirements of Accounting Standard AS -18 issued by the Institute of Chartered Accountants of India, the names of the Related Party / Parties where control exists and / or with whom transactions have taken place during the year and description of relationships as identified and certified by the management are as hereunder:

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Jun 30, 2011

1. Contingent Liabilities

Sr. No. Particulars Current Year Previous Year

a. Estimated amount of contracts remaining to be executed on capital account and not provided for 8385.24 Nil

b. Contingent Liabilities Nil Nil

2. RETIREMENT BENEFITS

The Company has various Schemes of retirement benefits schemes such as Provident Fund, Gratuity and Earned Leaves.

Post Employment Benefit Plans:

Effective from financial year 2007-08, the company has implemented Accounting Standard (AS)-15 (Revised -2005) dealing with Employees Benefits, issued by the Institute of Chartered Accountants of India. AS-15 (Revised-2005) deals with recognition, measurement and disclosure of short term, post employment, termination and other long term employee benefits provided by the company.

Payments to defined contribution retirement benefit schemes is charged as an expense as they fall due.

The cost of providing defined benefits is determined using Projected Unit Credit Method and accordingly, actuarial valuation has been carried out at the Balance Sheet date. Actuarial gain & losses are recognized in full in the profit & loss account for the period in which they occur. Past service cost is recognized to the extent the benefits are already vested, and otherwise is amortized on a Straight line Method over the average period until the benefits become vested.

The retirement benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as adjusted for unrecognized past service cost, and as reduced by the fair value of available refunds and reductions in future contributions to the scheme.

a) Defined Benefit plan:

Gratuity Plan & Leave Encashment Plan

The company, in accordance with AS-15 (Revised) has made the provision for Gratuity and Leave Encashment on projected unit credit method.

Disclosure in respect of Employees Benefit plans"

3. Related party Disclosures & transactions:

In accordance with the requirements of Accounting Standard AS -18 issued by the Institute of Chartered Accountants of India, the names of the Related Party / Parties where control exists and / or with whom transactions have taken place during the year and description of relationships as identified and certified by the management are as hereunder:

4. Capital work in progress includes advances for capital expenditure & expenses of preoperative nature incurred towards new project under implementation.

5. Previous years figures have been regrouped and rearranged wherever necessary.

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Jun 30, 2010

1. Schedule 1 to 10 form an integral part of the Balance Sheet and Profit & Loss Account.

2. The company, during the year has issued Bonus shares to existing shareholders in the ratio of 4:1 ie 4 shares for 1 shares held.

3. Related party Disclosures & transactions:

In accordance with the requirements of Accounting Standard AS -18 issued by the Institute of Chartered Accountants of India, the names of the Related Party /Parties where control exists and / or with whom transactions have taken place during the year and description of relationships as identified and certified bv the management are as hereunder:

4. Capital work in progress includes advances for capital expenditure & expenses of preoperative nature incurred towards new project under implementation.

5. Previous year''s figures have been regrouped and rearranged wherever necessary,

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Jun 30, 2009

1. (Rs. In l.acs)

Yr Ended 30.06.09 yr. Ended 30.06.08

2. Contingent Liabilities Nil NiL

3. Previous year figures have been regrouped/rearranged wherever considered necessary.

4. Capital-work-in-Progress includes advances for capital expenditure & Expenses of Pre operative nature incurred towards new project under implementation.

5. Schedule to 10 forms an integral part of the Balance Shekel and Profit & Loss Account.