Notes to Accounts of Anup Malleables Ltd.

Mar 31, 2015

1. Contingent Liability & Commitments

i) Performance Bank guarantee outstanding Rs. 13,342,291/- (Previous Year 15,407,553/-) & against which fixed deposits Rs. 36,55,512/- (Previous year 25,81,193/-) are lying with Bank.

ii) Claims against the company not acknowledged as debts

a) Income Tax Matters Rs. 4,48,770/-

2. Disclosure under Micro and Small Enterprises Development Act, 2006.

The Company has not received the required information from creditors regarding their status under the Micro, small and Medium Enterprises Development Act, 2006. Hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid/payablc as requited under the said act have not been made.

3. In the opinion of the Board of Directors, all current assets loans &. advances are expected to be realized in the ordinary course of business at least an amount equal to the amount at which they are stated in the Balance Sheet.

4. Miscellaneous Expenses do not include any item in excess of Rs. 100,000/- or one percent of turnover whichever is higher.

5. SEGMENT REPORTING

In accordance with the Accounting Standard-17 on segment Reporting issued by Institute of Chartered accountants of india, the Company is primarily in the business of manufacturing and Machining of Bogie Frames. Other activity of the company comprise of manufacturing of Chemicals. Income from sale of chemical does not contribute significantly to the overall profit of the company and the assets are not more than 10% ofthe total assets of all the segment. Accordingly, disclosure of segment information is not applicable.

6. RELATED PARTY DISCLOSURE

(I) Related party disclosure as required by Accounting Standard - 18 "Related party disclosures" are given below

SL Name of the Related parties Relationship No.

1. Shri Ashok Khaitan Key Management personnel

2. Shri Ayush Agarwalla Key Management personnel

3. Shri Suyash Khaitan Key Management personnel

4. Chirau Commodities (P) Ltd. Associates

5. Dhansar Capital Limited Associates

6- Joyous Marketing & Impex (P) Ltd, Associates

7. Black Diamond Explosive (P) Ltd. Associates

S Dhansar Engineering Co. (P) Ltd. Associates

9. Hilltop High rise (P) Ltd Associates

10. Ashok Khaitan (HUF) Associates

11. Aloke Khaitan(HUF) Associates

12. Ayush Agarwalla (HUF) Associates

13 Sri. Alok Khaitan Relatives of Key Managerial Person

14, Sri. Soumya Agarwalla Relatives of Key Managerial Person

15, G.N,Khaitan (HUF) Relatives of Key Managerial Person

7. Expenditure in Foreign Exchange Rs.4,93,181/- (Previous year Rs. 9,75,799/-)

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Mar 31, 2014

NOTE 1

Terms & Rights attached to equity shares

The company lias only one class of share capital, i.e. equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitle to one vote per share.

1,875,000 ( Previous year 1,875,000 ) shares out of the issued, subscribed and paid up share capital were allotted as bonus shares in the last live years by capitalisation of opening balance of profit and loss aecount on 30 November 2012.

Term loan of Rs 6/10,000 ( 4,480,000) carry interest rale of 13,75%. The loan is repayable in 36 monthly instaUmeuts starting from 30 June 2011 .The loans are secured by hypothecation of plant and machinery, first charge on all immovable assets and is also personally guarant -eed by directors, Shri D. K. Agarwalla, Shri N.K. Agarwalla, Shri Adarsh Agarwalla and corporate guarantee by M/s Mechanical & Electr -ical Engineering Co. Pvt Ltd andBLA International (P) Ltd.

Term loan ofRs 14,650,667 (22,984,000 ) cany interest rate of 13.75%. The loan is repayable in 34 monthly installments starting from 1 April 2013.The loans are secured by hypothecation of plant and machinery, first charge on all immovable assets and is also personally guaranteed by directors, Shri D. K. Agarwalla, Shri N.K. Agarwalla, Shri Adarsh Agarwalla and corporate guarantee by M/s Mechanical & Electrical Engineering Co. Pvt Ltd and BLA International (P) Ltd.

Term loan of Rs 13.442,339 (15,035,873 ) carry interest rate of 13.75%. The loan is repayable in 48 monthly installments starting from 1 February 2014.The loans are secured by a hypothecation of plant and machinery, first charge on all immovable assets and is also personally guaranteed by directors, Shri D. K. Agarwalla,

Shri N.K. Agarwalla, Sbri Adarsh Agarwalla and corporate guarantee by M/s Mechanical & Electrical Engineering Co. Pvt Ltd andBLA International (P) Ltd.

Buyers credit of Rs 50,360,028 (50,723,610 ) is for 33 Months and after 33 months it will be converted to a term loan carrying an interest of 13.75% Tic loan is repayable in 48 monthly installments. The loans are secured by hypothecation of plant and machinery, a first charge- on all immovable assets and is also personally guaranteed by directors, Shri D. K, Agarwalla,''Shri N.K Agarwalla, Shri Adarsh Agarwalla and corporate guarantee by M/s Mechanical & Electrical Engineering Co. Pvt Ltd and BLA International (P) Ltd.

Term loan of Rs 736,087 (1,608,578.64 ) carry interest rate of 13.75%. The loan is repayable in 34 monthly installments starting from 20 March 2012.The loan is secured by a first charge on generator. ft Secured by hypothecation of stock and book debts and first mortgage charge of all immovable assets and also personally guaranteed by directors, Slid D. K .Agarwalla, Shri N.K. Agarwalla, Shri Adarsh Agarwalla & corporate Guarantee by M/S Mechanical & Electrical Engineering Co. Pvt Ltd, ''& BLA International (P) ltd.

2. Contingent Liability

- Capital commitment estimated amount of contracts remaining unexecuted on capital accounts (Net of advance paid) and not provided for Rs. 24.35 Lac {Previous Year 24.35)

- Contingent Liabilities in respect of Sales tax demand under appeal Rs. NIL (Previous year NIL)

Bank guarantee outstanding Rs.15,407,553/- (Previous Year 14,030,323/-) & against which fixed deposits Rs.2,581,193/- (Previous year 23,97,655/-) are lying with Bank.

3. Sundry Creditors

Disclosure under Micro and Small Enterprises Development Act, 2006.

The Company has not received the required information from creditors regarding their status under the Micro, small and Medium Enterprises Development Act, 2006. Hence disclosures, if any relating to amounts unpaid as at tire year end together with interest paid/payable as required under the said act have not been made.

4. In the opinion of the Board of Directors, all current assets loans & advances are expected to be realized in the ordinaiy course of busi -ness at least an amount equal to the amount at which they are stated in the Balance Sheet.

5 Miscellaneous Expenses do not include any item in excess of Rs. 100,000/- or one percent of turnover whichever is higher.

6 SEGMENT REPORTING

In accordance with the Accounting Standard - 17 on "Segment Reporting", issued by the Institute of Chartered -

Accountants of India, the company has identified two reportable business segments i.e. Sale of Manufactured good and Job Work, which are regularly evaluated by the management, in deciding the allocation of resources and assessment of performance. The segment performance is given below:

7 RELATED PARTY DISCLOSURE

(1) Related party disclosure as required by Accounting Standard -18 "Related party disclosures" are given below SLNo, Name of the Related parties Relationship

I. Slid Devendra Kumar Agarwalla Key Management personnel (upto 10.01.2014) 6

2 Shri Adarsh Agarwalla Key Management personnel (upto 10.01.2014)

3. Shri Nandan Kumar Agarwalla Key Management personnel (upto 10.01.2014)

4. Shri Ashok Khaitan Key Management personnel (from 10.01.2014)

5. Shri Ayush Agarwalla Key Managementpersonnel(from20.01.2014)

6. Shri Suyash Khaitan Key Management personnel (from 20.01.2014)

7. Mechanical &Electrical Engg. Co.(P) Ltd. Associates 1

8. Foundry Fuel Products Limited '' Associates (upto 10,01.2014)

9. BLA Minerals (P) Limited Associates (upto 10.01.2014)

10. BLA International (P) Limited Associates (upto 10.01.2014)

II. Cliiran Comodities (P) Ltd. Associates (from 10.01.2014)

12. Dhansar Capital Limited Associates (from 20.01.2014)

13. Jyous Marketing & Impex (P) Associates (from20.01,2014)

14, Black Diomand Explosive (P) Ltd. Associates (from 20.01.2014)

15 Dhansar Engineering Co. (P) Ltd. Associates (from 20.01.2014)

16. Smt. Madixu Agarwalla Relatives of Key Managerial Person (upto 10.01.2014)

17 Smt. Shrutika Agarwalla Relatives of Key Managerial Person (upto 10.01,2014)

18. Sri. AlokKhaitan Relativesof Key Managerial Person (from 10.01.2014)

19. Sri. Soumaya Agarwalla Relatives of Key Managerial Person (from 20.01.2014)

20. G.RKhaitan (HUF) Relatives of Key Managerial Person (from 10,01.2014)

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Mar 31, 2013

1. Contingent Liability

- Capital commitment estimated amount of contracts remaining unexecuted on capital accounts (Net of advance paid) and not provided for Rs. 24.35 Lac (Previous Year 582.90)

- Contingent Liabilities in respect of Sales tax demand under appeal Rs. NIL (Previous year 11,62,854/-)

Bank guarantee outstanding Rs.14,030,323/- (Previous Year 12,331,253/-) &against which fixed deposits Rs.23,97,655/- (Previous year 29,60,225/-) are lying with Bank.

2. Sundry Creditors

Disclosure under Micro and Small Enterprises Development Act, 2006.

The Company has not received the required information from creditors regarding their status under the Micro, small and Medium Enterprises Development Act, 2006. Hence disclosures, if any relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said act have not been made.

3. In the opinion of the Board of Directors, all current assets loans &advances are expected to be realized in the ordinary course of business at least an amount equal to the amount at which they are stated in the Balance Sheet. .

4 Miscellaneous Expenses do not include any item in excess of Rs. 100,000/- or one percent of turnover whichever is higher.

5. Expenditure in Foreign Exchange Rs. 61,237,681/- (Previous year Rs. 2,707,101/-)

6 Details of previous year expenses are as follows :

Expenses of Office Rent of Rs. 138,000/- relating to previous year has been paid during the year.

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Mar 31, 2012

1. Contingent Liability

(a) Capital commitment: Estimated amount of contracts remaining unexecuted on capital accounts (Net of advance paid) and not provided for Rs. 582.90 lac (Previous Year: Nil)

(b) Contingent Liabilities in respect of Sales tax demand under appeal Rs. 1,162,854/- (Previous year 11,62,854/-) Bank guarantee outstanding Rs. 1,2331,253/- (Previous Year 8,046,733/-) & against which fixed deposits Rs. 2,960,225/- (Previous year 27,68,002/-) are lying with Bank.

2. Sundry Creditors

Disclosure under Micro and Small Enterprises Development Act, 2006.

The Company has not received the required information from creditors regarding their status under the Micro, small and Medium Enterprises Development Act, 2006. Hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said act have not been made.

3. In the opinion of the Board of Directors, all current assets loans & advances are expected to be realized in the ordinary course of business at least an amount equal to the amount at which they are stated in the Balance Sheet.

4. Miscellaneous Expenses do not include any item in excess of Rs. 100,000/- or one percent of turnover whichever is higher.

5. RELATED PARTY DISCLOSURES

(I) Related party disclosure as required by Accounting Standard - 18 "Related party disclosures" are given below

SL. Name of the Related parties Relationship No.

1. Shri Devendra Kumar Agarwalla Key Management personnel

2. Shri Adarsh Agarwalla Key Management personnel

3. Shri Nandan Kumar Agarwalla Key Management personnel

4. Mechanical & Electrical Engg. Co.(P) Ltd. Associates

5. Foundry Fuel Products Limited Associates

6. BLA Minerals (P) Limited Associates

7. BLA International (P) Limited Associates

8. Waste Products Reclaimer (P) Limited Associates

9. Smt. Madhu Agarwalla Relatives of Key Managerial Person

10. Smt. Shrutika Agarwalla Relatives of Key Managerial Person

6. Expenditure in Foreign Exchange Rs. 2,707,101/- (Previous year Rs. 494,230/-)

7. Details of previous year expenses are as follows :

Expenses of Subscription & Membership of Rs. 5,000/- relating to previous year has been paid during the year.

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Mar 31, 2011

1. i) Previous years figures have been regrouped and re-arranged wherever necessary and rounded off to nearest rupee.

ii)Previous year s figures have given in brackets

iii)current year figures have been rounded off to nearest rupee.

2.Contingent liability

a) Contingent Liabilities in respect of sales tax demand under appeal Rs 162.854/- (Previous year 863.805/-)

b)Bank guarantee out standing Rs.8.046.733/- (Previous year 7.558.543/-) & against which fixed deposits Rs 2.768.002/- (Previous year 2.026.425/-) are lying with Bank.

3.Capital contracts remaining to be executed Rs 11.09.000/- against which advance of Rs 2.35.000/- (Previous year 35.000/-) have been given

4.Sundry creditors

Disclosure under micro and small Enterprise Development Act 2006 The Company has not received the required information from creditors regarding their status under the micro small and Medium Enterprises Development Act 2006 .Hence disclosures if any relating to amounts unpaid as at the year end together with interest paid / payable as required under the said act have not been made

5. In the opinion of the Board of Director all current assets loans & advances are expected to be realized in the ordinary course of business at least an amount at least an amount equal to the amount at which they are stated in the balance sheet

6.Additional information under part II of schedule VI of the companies Act 1956

7 RELATED PARTY DISCLOSURES

Related party disclosure as required by Accounting standard - 18 Related party disclosures are given below

A) Name of the Related parties

1.Key Management Personnel of the company

i) Shri Devendra Kumar Agarwalla (Managing Directors)

ii)Shri Adarsh Agarwalla (Director )

iii)Shri Nandan Kumar Agarwalla ( Director )

2.Enterprises over which Key Management Persional and relatives of such Personnel are able to excrcise significant Influence : i) M/s. mechanical & Electrical Engineering Company (P) Limited

ii) M/s. Fondary Fuel Products Limited

iii)M/s.BLA Minerals (P) Limited

iv)M/s.BLA International (P) Limited

v)M/s.Waste Products Reclaimer (P) Limited

3.Relatives of Key Managerial Person

i) Smt. Madhu Agarwalla (Wife of Managing Director)

ii)Smt.Shrutika Agarwalla (Wife of Director Shri Adarsh Agarwalla)

Creatified to be a true copy

8.Expenduture in foreign Exchange Rs 494.230/- (Previous year NIL/-)

9.Details of pervious year expenses are as follows : Expenses of amount to Rs 819 /- relating to previous year has been paid during the year

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Mar 31, 2010

1. i) Previous years figures have been regrouped and re-arranged wherever necessary and rounded off to nearest rupee.

ii) Previous years figures have been given in brackets.

iii) Current year figures have been rounded off to nearest rupee.

2. Contingent Liability

(a) Contingent Liabilities in respect of Sales tax demand under appeal Rs. 863,805/- (Previous year 863,805/-)

(b) Bank guarantee outstanding Rs.7,558,543/- (Previous Year 4,933,402/-) & Letter of Credit outstanding Rs. Nil (previous year Rs.Nil) against which fixed deposits Rs.2,026,425/- (Previous year 1,592,195/-) are lying with Bank.

3. Sundry Creditors

Disclosure under Micro and Small Enterprises Development Act, 2006.

The Company has not received the required information from creditors regarding their status under the Micro, small and Medium Enterprises Development Act, 2006. Hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid/payable as required under the said act have not been made.

4. In the opinion of the Board of Directors, all current assets loans & advances are expected to be realized in the ordinary course of business at least an amount equal to the amount at which they are stated in the Balance Sheet.

5. Additional information under part II of schedule VI of the Companies Act, 1956.

6. Miscellaneous Expenses do not include any item in excess of Rs. 5000/- or one percent of turnover whichever is higher.

7. SEGMENT REPORTING

In accordance with the Accounting Standard - 17 on "Segment Reporting", issued by the Institute of Chartered Accountants of India, the company has identified two reportable business segments i.e. Sale of Manufactured good and Job Work, which are regularly evaluated by the management, in deciding the allocation of resources and assessment of performance. The segment performance is given below:

8. RELATED PARTY DISCLOSURES

Related party disclosure as required by Accounting Standard - 18 "Related party disclosures" are given below

A) Name of the Related parties with whom transaction have take place during the year:

1. Key Management personnel of the Company

(i) Shri Devendra Kumar Agarwalla (Managing Directors)

(ii) Shri Adarsh Agarwalla (Director)

(iii) Shri Nandan Kumar Agarwalla (Director)

2. Enterprises over which key Management Personnel and Relatives of such Personnel are able to exercise significant Influence:

(i) M/s. Mechanical & Electrical Engineering Company (P) Limited <.

(ii) M/s. Foundry Fuel Products Limited

(iii) M/s. BLA Minerals (P) Limited

(iv) M/s. BLA International (P) Limited

(v) M/s. Waste Products Reclaimer (P) Limited

3. Relatives of Key Managerial Person

(i) Smt. Madhu Agarwalla (Wife of Managing Director)

(ii) Smt. Shrutika Agarwalla (Wife of Director, Shri Adarsh Agarwalla)

9. Expenditure in Foreign Exchange Rs.NIL (Previous year Rs. 208050/-)

10. Expenses of Professional Tax amounting to Rs. 7500/- relating to previous year has been paid during the year.