Notes to Accounts of Auto Pins (India) Ltd.

Mar 31, 2024

2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed 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 to settle or a reliable estimate of the amount cannot be made.

2.12 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

2.13 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method (EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income.

Equity instruments: All investments in equity instruments classified under financial assets are initially measured at fair value, the company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis .Fair value changes on an equity instrument is recognized as ''other income'' in the standalone statement of profit and loss unless the company has elected to measure such instrument at FVOCI.Fair value changes excluding dividends,on an equity instrument measured at FVOCI are recognized in OCI.Amounts recognized in OCI are not subsequently reclassified to the standalone statement of profit and loss. Dividend income on the investments in equity instruments are recognized as ''oher income'' in the standalone statement of profit and loss.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on financial assets that are measured at amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12- month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent years, credit quality of the instrument

improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

Life time ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider all contractual terms of the financial instrument (including prepayment, extension etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument.

For trade receivables, the Company assumes increased credit risk if the payment is more than 365 days and accordingly, it creates appropriate provision over the trade receivables.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the statement of profit and loss. In balance sheet ECL for financial assets measured at amortized cost is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

(iv) De-recognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and at amortized cost, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Separated

embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

(iii) Derecognition

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

(c) 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 recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

2.14 Employee Benefits

(a) Short-term employee benefits

(i) Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia etc. The undiscounted amount of short- term employee benefits to be paid in exchange for employee services is recognised as an expense in the Statement of Profit and Loss in the period in which the employee renders the relevant service.

(i) Leave encashment/Gratuity

The company has no provision in the books of accounts regarding gratuity and accrued leave salary . However, the same is taken at the time of payment to employee’s on retirement, resignation or termination.

(b) Long-term employee benefits:

(i) Defined contribution plan

The Company makes defined contribution to Government Employee Provident Fund, Government Employee Pension Fund, Employee Deposit Linked Insurance Employees’ State Insurance scheme and Labour welfare fund which are recognised in the Statement of Profit and Loss on accrual basis.

(ii) Defined benefit plans

Gratuity: In accordance with the Payment of Gratuity Act, 1972, the plan provides for lump sum payments to vested employees on retirement, death while in service or on termination of employment in an amount equivalent to half month basic salary for each completed year of service. Vesting occurs upon completion of five years of service. However, the Company does not provides for retirement benefits in the form of Gratuity same is taken at the time of payment to employee on retirement or otherwise.

(c) Other long-term employee benefits:

Leave encashment/Gratuity: The Company has no provision in the books of accounts regarding accrued leave salary/gratuity. However, the same is taken at the time of payment to employee’s on retirement, resignation or termination.

2.15 Earnings Per Share

Basic earnings per share is 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. Earnings considered in ascertaining the Company''s earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

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 is adjusted for the effects of all dilutive potential equity shares.

2.16 Borrowing cost

Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of borrowings. Borrowing costs relating to acquisition or construction of assets which takes substantial period of time to get ready for its intended use are included as cost of such qualifying assets to the extent they relate to the period till such qualifying assets are ready to be put to use. Other borrowing costs are recognised as an expense in the Statement of Profit and Loss in the period in which they are incurred.

2.17 Rounding off amounts

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

2.18 Measurement of EBITDA

The Company has opted to present earnings before interest (finance cost), tax, depreciation and amortisation (EBITDA) as a separate line item on the face of the Statement of Profit and Loss. The Company measures EBITDA on the basis of profit/ (loss) from continuing operations.

2.19 Material Events

Material events occurring after the Balance Sheet date in relation to conditions existing as at the Balance Sheet date is taken into cognizance.

2.20 Material Accounting Policy Information

The Company adopted Disclosure of Accounting Policies (Amendments to Ind AS 1) from 1 April 2023. Although the amendments did not result in any changes in the accounting policies themselves, they impacted the accounting policy information disclosed in the financial statements.

The amendments require the disclosure of ‘material’ rather than ‘significant’ accounting policies. The amendments also provide guidance on the application of materiality to disclosure of accounting policies, assisting entities to provide useful, entity-specific accounting policy information that users need to understand other information in the financial statements.

3. Significant accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

In assessing the reliability of deferred income tax assets, the Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of the future taxable income during the periods in which the temporary differences become deductible. The Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, the Management believes that the Company will realize the benefits of those deductible differences. The entire deferred income tax assets recognise is for MAT Credit available for realization against normal taxes. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near terms if estimates of future taxable income during the carry forwards period are reduced.Refer Note 31.

4. Recent accounting pronouncements

Ministry of Corporate Affairs (“MCA”) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. For the year ended March 31, 2024, MCA has not notified any new standards or amendments tothe existing standards applicable to the Company.

49 Ratio Analysis and its elements

Accounting Ratios with explanations for variations more than 25%, if any, have been disclosed in Annexure I.

50 The figures of GSTR 1, GSTR 2B and GSTR 3B are under Reconciliation with Books of Account and any adjustment, if required, will be carried out in subsequent period. Any reduction/increase of

GST liability on account of ineligible input and/or any addition/reduction in output liability on any account and any interest/penalty liability shall be accounted for as and when the same is

identified and/or determined. The management expects such amount shall not be material to impact the true and fair presentation of financial statements.

51 Other Statutory Information, as certified by management

(i) The Company has not granted any loans to the promoters, directors, KMPs and related parties.

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

(iii) The Company does not have any transactions with struck off companies

(iv) The Company does not have any charges which is yet to be registered with ROC beyond the statutory period except Car loan from Toyota Financial Services India Ltd for Rs. 25 lacs .

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

( vi) 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:

(a) 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

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

( vii) 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 or otherwise) that the Company shall :

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company does not have any transaction which is not recorded in the books of accounts 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)

(ix) The Company has not been declared wilful defaulter by any bank or Financial Institution or any other lender.

(x) The Company has not entered in any scheme of arrangement.

(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

52 Previous year figures have been regrouped and/or re-arranged wherever necessary to conform to the current year''s groupings and classifications.

53 The accompanying notes and schedule form an integral part of the Financial statements.

In terms of our report of even date

For Sanjay Rawal

& Co. For and on behalf of the Board of Directors

Chartered

Accountants M/S Auto Pins India Limited

Firm Registration

No.:012820N CIN: L34300DL1975PLC007994

Sanjay Rawal Rajbir Singh Subhash Jain

Partner Managing Director Director

Membership No:

088156 DIN:00176574 DIN:00176493

Somya

Place: New Dehi Shweta Bhatnagar Chaurasia

Chief Finance Membership

Date: 28/05/2024 Officer No: A70307

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Mar 31, 2023

2.11 Provisions and contingent liabilities

Provisions are recognized when there is a present obligation as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. Provisions are measured at the best estimate of the expenditure required to settle the present obligation at the Balance sheet date.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

Contingent liabilities are disclosed 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 to settle or a reliable estimate of the amount cannot be made.

2.12 Cash and cash equivalents

Cash and cash equivalents comprise cash at bank and in hand and short-term investments with an original maturity of three months or less.

2,13 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity.

(a) Financial assets

(i) Initial recognition and measurement

At initial recognition, financial asset is measured at its fair value plus, in the case of a financial asset not at fair value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset. Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.

(ii) Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in following categories:

a) at amortized cost; or

b) at fair value through other comprehensive income; or

c) at fair value through profit or loss.

The classification depends on the entity’s business model for managing the financial assets and the contractual terms of the cash flows.

Amortized cost: Assets that are held for collection of contractual cash flows where those cash flows represent solely payments of principal and interest are measured at amortized cost. Interest income from these financial assets is included in finance income using the effective interest rate method (EIR).

Fair value through other comprehensive income (FVOCI): Assets that are held for collection of contractual cash flows and for selling the financial assets, where the assets’ cash flows represent solely payments of principal and interest, are measured at fair value through other comprehensive income (FVOCI). Movements in the carrying amount are taken through OCI, except for the recognition of impairment gains or losses, interest revenue and foreign exchange gains and losses which are recognized in Statement of Profit and Loss. When the financial asset is derecognized, the cumulative gain or loss previously recognized in OCI is reclassified from equity to Statement of Profit and Loss and recognized in other gains/ (losses). Interest income from these financial assets is included in other income using the effective interest rate method.

Fair value through profit or loss: Assets that do not meet the criteria for amortized cost or FVOCI are measured at fair value through profit or loss. Interest income from these financial assets is included in other income.

Equity instruments: All investments in equity instruments classified under financial assets are initially measured at fair value,the company may,on initial recognition,irrevocably elect to measure the same either at FVOCI or FVTPL.

The Company makes such election on an instrument-by-instrument basis .Fair value changes on an equity instrument is recognized as ''other income'' in the standalone statement of profit and loss unless the company has elected to measure such instrument at FVOCI.Fair value changes excluding dividends,on an equity instrument measured at FVOCI are recognized in OCI.Amounts recognized in OCI are not subsequently reclassified to the standalone statement of profit and loss. Dividend income on the investments in equity instruments are recognized as ''oher income'' in the standalone statement of profit and loss.

(iii) Impairment of financial assets

In accordance with Ind AS 109, Financial Instruments, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss on financial assets that are measured at amortized cost and FVOCI.

For recognition of impairment loss on financial assets and risk exposure, the Company determines that whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased significantly, lifetime ECL is used. If in subsequent years, credit quality of the instrument improves such that there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognizing impairment loss allowance based on 12 month ECL.

Life time ECLs are the expected credit losses resulting from all possible default events over the expected life of a financial instrument. The 12 month ECL is a portion of the lifetime ECL which results from default events that are possible within 12 months after the year end.

ECL is the difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the entity expects to receive (i.e. all shortfalls), discounted at the original EIR. When estimating the cash flows, an entity is required to consider all contractual terms of the financial instrument (including prepayment, extension etc.) over the expected life of the financial instrument. However, in rare cases when the expected life of the financial instrument cannot be estimated reliably, then the entity is required to use the remaining contractual term of the financial instrument.

For trade receivables, the Company assumes increased credit risk if the payment is more than 365 days and accordingly, it creates appropriate provision over the trade receivables.

ECL impairment loss allowance (or reversal) recognized during the year is recognized as income/expense in the statement of profit and loss. In balance sheet ECL for financial assets measured at amortized cost is presented as an allowance, i.e. as an integral part of the measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset meets write off criteria, the Company does not reduce impairment allowance from the gross carrying amount.

(iv) Derecognition of financial assets

A financial asset is derecognized only when

a) the rights to receive cash flows from the financial asset is transferred or

b) retains the contractual rights to receive the cash flows of the financial asset, but assumes a contractual obligation to pay the cash flows to one or more recipients.

(b) Financial liabilities

(i) Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss and at amortized cost, as appropriate.

All financial liabilities are recognized initially at fair value and, in the case of borrowings and payables, net of directly attributable transaction costs.

(ii) Subsequent measurement

The measurement of financial liabilities depends on their classification, as described below:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss. Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognized in the Statement of Profit and Loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortized cost using the EIR method. Gains and losses are recognized in Statement of Profit and Loss when the liabilities are derecognized as well as through the EIR amortization process. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral part of the EIR. The EIR amortization is included as finance costs in the Statement of Profit and Loss.

(iii) Derecognition

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

(c) 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 recognized amounts and there is an intention to settle on a net basis or realize the asset and settle the liability simultaneously. The legally enforceable right must not be contingent on future events and must be enforceable in the normal course of business and in the event of default, insolvency or bankruptcy of the Company or the counterparty.

2.14 Employee Benefits

(a) Short-term employee benefits

(i) Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, bonus and ex-gratia etc. The undiscounted amount of shortterm employee benefits to be paid in exchange for employee services is recognised as an expense in the Statement of Profit and Loss in the period in which the employee renders the relevant service.

(i) Leave encashment

The company has no provision in the books of accounts regarding gratuity and accrued leave salary . However, the same is taken at the time of payment to employee’s on retirement or otherwise.

(b) Long-term employee benefits:

(i) Defined contribution plan

The Company makes defined contribution to Government Employee Provident Fund, Government Employee Pension Fund, Employee Deposit Linked Insurance Employees’ State Insurance scheme and Labour welfare fund which are recognised in the Statement of Profit and Loss on accrual basis.

(ii) Defined benefit plans

Gratuity: In accordance with the Payment of Gratuity Act, 1972, the plan provides for lump sum payments to vested employees on retirement, death while in service or on termination of employment in an amount equivalent to half month basic salary for each completed year of service. Vesting occurs upon completion of five years of service. However, the Company does not provides for retirement benefits in the form of Gratuity same is taken at the time of payment to employee on retirement or otherwise.

(c) Other long-term employee benefits:

Leave encashement: The company has no provision in the books of accounts regarding accrued leave salary . However, the same is taken at the time of payment to employee’s on retirement or otherwise.

2.15 Earnings Per Share

Basic earnings per share is 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. Earnings considered in ascertaining the Company''s earnings per share is the net profit or loss for the year after deducting preference dividends and any attributable tax thereto for the year. The weighted average number of equity shares outstanding during the year and for all the years presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares, that have changed the number of equity shares outstanding, without a corresponding change in resources.

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 is adjusted for the effects of all dilutive potential equity shares.

2.16 Borrowing cost

Borrowing cost includes interest and ancillary costs incurred in connection with the arrangement of borrowings. Borrowing costs relating to acquisition or construction of assets which takes substantial period of time to get ready for its intended use are included as cost of such qualifying assets to the extent they relate to the period till such qualifying assets are ready to be put to use. Other borrowing costs are recognised as an expense in the Statement of Profit and Loss in the period in which they are incurred.

2.17 Rounding off amounts

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

2.18 Measurement of EBITDA

The Company has opted to present earnings before interest (finance cost), tax, depreciation and amortisation (EBITDA) as a separate line item on the face of the Statement of Profit and Loss. The Company measures EBITDA on the basis of profit/ (loss) from continuing operations.

2.19 Material Events

Material events occurring after the Balance Sheet date in relation to conditions existing as at the Balance Sheet date is taken into cognizance.

3 Significant accounting judgments, estimates and assumptions

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future years.

3.1 Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the year end date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(a) Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

In assessing the reliability of deferred income tax assets, the Management considers whether some portion or all of the deferred income tax assets will not be realized. The ultimate realization of deferred income tax assets is dependent upon the generation of the future taxable income during the periods in which the temporary differences become deductible. The Management considers the scheduled reversal of deferred income tax liabilities, projected future taxable income and tax planning strategies in making this assessment. Based on the level of historical taxable income and projections for future taxable income over the periods in which the deferred income tax assets are deductible, the Management believes that the Company will realize the benefits of those deductible differences. The entire deferred income tax assets recognise is for MAT Credit available for realization against normal taxes. The amount of the deferred income tax assets considered realizable, however, could be reduced in the near terms if estimates of future taxable income during the carry forwards period are reduced.Refer Note 31.

4 Recent accounting pronouncements

4.1 Amended standards adopted by the Company

(i) Reference to the Conceptual Framework - Amendments to Ind AS 103

(ii) Property, Plant and Equipment: Proceeds before Intended Use - amendments to Ind AS 16

(iii) Ind AS 109 financial instruments - fees in the ’10 per cent’ test for derecognition of financial liabilities

(iv) Onerous contracts - costs of fulfilling a contract - amendments to Ind AS 37

All the above mentioned amendments had no impact on the standalone financial statements of the Company as there were no modifications of the company’s financial instruments which were covered by amendment.

4.2 Standards issued but not yet effective

The Ministry of Corporate Affairs has notified Companies (Indian Accounting Standards) Amendment Rules, 2023 dated March 31, 2023, to amend the following Ind AS which are effective from 01 April 2023 :

(i) Definition of accounting estimates - amendments to Ind AS 8

The amendments clarify the distinction between changes in accounting estimates and changes in accounting policies and the correction of errors. It has also been clarified how entities use measurement techniques and inputs to develop accounting estimates. The amendments are effective for annual reporting periods beginning on or after 1 April 2023 and apply to changes in accounting policies and changes in accounting estimates that occur on or after the start of that period. The amendments are not expected to have a material impact on the Company''s standalone financial statements

(ii) Disclosure of accounting policies - amendments to Ind AS 1

The amendments aim to help entities provide accounting policy disclosures that are more useful by replacing the requirement for entities to disclose their ‘significant’ accounting policies with a requirement to disclose their ‘material’ accounting policies and adding guidance on how entities apply the concept of materiality in making decisions about accounting policy disclosures. The amendments to Ind AS 1 are applicable for annual periodsbeginning on or after 1 April 2023. Consequential amendments have been made in Ind AS 107. The Company is currently revisiting their accounting policy information disclosures to ensure consistency with the amended requirements.

(iii) Deferred tax related to assets and liabilities arising from a single transaction - amendments to Ind AS 12

The amendments narrow the scope of the initial recognition exception under Ind AS 12, so that it no longer applies to transactions that give rise to equal taxable and deductible temporary differences.

The amendments should be applied to transactions that occur on or after the beginning of the earliest comparative period presented. In addition, at the beginning of theearliest comparative period presented, a deferred tax asset (provided that sufficient taxable profit is available) and a deferred tax liability should also be recognised for all deductible and taxable temporary differences associated with leases and decommissioning obligations. Consequential amendments have been made in Ind AS 101. The amendments to Ind AS 12 are applicable for annual periods beginning on or after 1 April 2023. The Company is currently assessing the impact of these amendments.

36 Financial risk management objectives and policies

The Company is exposed to various financial risks. These risks are categprized into market risk, credit risk and liquidity risk. The Company''s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, investments and derivatives financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company exposure to the risk of changes in market interest rates relates primarily to the Company’s debt obligations with floating interest rates. As there are no debt obligations with floating interest rates, the Company is not exposed to interest rate risk.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency). The Company is not exposed to exchange rate risk as all the Company invoicing and realization is in its functional currency i.e. Indian Rupee and hence the Company realizes the complete revenue with no impact of exchange rate movement.

(B) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The Company is exposed to credit risk primarily from its operating activities and from deposits with landlords and other statutory deposits with regulatory agencies and from cash held with banks, financial institutions, mutual funds and other financial instruments. The maximum exposure to credit risk is equal to the carrying value of the financial assets. The objective of managing counterparty credit risk is to prevent losses in financial assets. The Company assesses the credit quality of the counterparties, taking into account their financial position, past experience and other factors. The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealing for extension of credit to customers. The Company monitors the payment track record of the customers. Outstanding customer receivables are regularly monitored. The company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and operate in largely independent markets.

The Company limits its exposure to credit risk of cash held with banks by dealing with highly rated banks and institutions and retaining sufficient balances in bank accounts required to meet a month’s operational costs. The Management reviews the bank accounts on regular basis and fund drawdowns are planned to ensure that there is minimal surplus cash in bank accounts. The Company does a proper financial and credibility check on the landlords before taking any property on lease and hasn’t had a single instance of non-refund of security deposit on vacating the leased property. The Company also in some cases ensure that the notice period rentals are adjusted against the security deposits and only differential, if any, is paid out thereby further mitigating the non-realization risk. The Company does not foresee any credit risks on deposits with regulatory authorities.

49 Ratio Analysis and its elements

Accounting Ratios with explanations for variations more than 25%, if any, have been disclosed in Annexure I.

50 The figures of GSTR 1, GSTR 2B and GSTR 3B are under Reconciliation with Books of Account and any adjustment, if required, will be carried out in subsequent period. Any reduction/increase of GST liability on account of ineligible input and/or any addition/reduction in output liability on any account and any interest/penalty liability shall be accounted for as and when the same is identified and/or determined.The management expects such amount shall not be material to impact the true and fair presentation of financial statements.

51 Other Statutory Information, as certified by management

(i) The Company has not granted any loans to the promoters, directors, KMPs and related parties.

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

(iii) The Company does not have any transactions with struck off companies

(iv) The Company does not have any charges which is yet to be registered with ROC beyond the statutory period except Car loan from Toyota Financial Services India Ltd for Rs. 25 lacs . However some old loans which has been repaid but satisfaction of charge is yet to be registered with ROC.

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

( vi) 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:

(a) 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

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

( vii) 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 or otherwise) that the Company shall :

(a) 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

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(viii) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the taxassessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)

(ix) The Company has not been declared wilful defaulter by any bank or Financial Institution or any other lender.

(x) The Company has not entered in any scheme of arrangement.

(xi) The Company has complied with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(xii) The quarterly returns/statements of current Assets filed by the Company with Banks are in agreement with Books of Accounts.

52 Previous year figures have been regrouped and/or re-arranged wherever necessary to conform to the current year''s grouping and classifications.

53 The accompanying notes and schedule form an integral part of the Financial statements.

In terms of our report of even date

For Sanjay Rawal & Co. For and on behal For & on Behalf of the Board

Chartered Accountants M/S Auto Pins India Limited

Firm Registration No.:012820N CIN: L34300DL1975PLC007994

sd/- sd/-

Sanjay Rawal Rajbir Singh Subhash Jain

Partner Managing Director Director

Membership No: 088156 DIN:00176574 DIN:00176493

sd/- sd/-

Place: New Dehi Shweta Bhatnagar Rashmi Baranwal

Date: 30/05/2023 Chief Finance Officer Company Secretary

UDIN:- 23088156BGVNYU8563 Membership No: A64121

Place: New Dehi Date: 30/05/2023

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Jun 30, 2014

1. Share Capital

(a) Equity Shares: The company has one class of equity shares having a par value of Us. 10,00 per share. Each shareholder Is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except In case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferential amounts in proportion to their shareholding.

CURRENT YEAR PREVIOUS YEAR (Rs.) (Rs.)

2. Contingent Liabilities, not provided for

a) i) For Excise/ESI/PF Matter 13,91,482.00 13,91,462.00

b) Miscellaneous Matters (Gratuity) 5,00,000.00 5,00,000.00

c) Other Matters in Dispute 30,05,200.00 38,06,200.00

d) Bank Gurantee 2,10,000.00 2,10,000.00

2.1 Balances grouped under Sundry Debtors, Advance from Customers, Sundry Creditors and Loans and Advances, Other Liabilities are subject to reconciliation and confirmation,

2.2 No Provision has been made for leave salary and gratuity of employee (amount unascertained), and the same shall be accounted for on cash basis.

2.3 No provision has been made for Income tax for the current year in view of brought forward Losses and Depreciation,

2.4 In the opinion of the Board of Directors, the aggregate value of current Assets, Loans and Advance on realization in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

2.5 The Stocks have been taken as per inventories taken valued and certified by the management of the company,

2.6 As suppliers covered under the interest on Delayed Payment to ''Micro, Small, and Medium Enterprises Development Act, 2006'' are yet to be identified, liability towards interest remained as unpaid to Such small scale and/or ancillary industrial undertakings as on 30.06.2014 is unascertainable.

2.7 Sundry Debtors/Creditors/Advances/Liabilities Balance are written off/back as approved by the management.

2.8 The BlFR has declared that the Company had become a Sick Industrial Company as on 31-12-2003. Revival/Rehabilitation Scheme has now been approved by BlFR vide order dated 26.07.2010 and 01.04.2009 has been taken as out off date. In terms of Revival/Rehabilitation Scheme the management has carried out restructuring of Balance Sheet in financial year 2009-2010.

2.9 As per rehabilitation scheme approved by Board For Industrial and Financial Reconstruction. Analysis Securities Pvt Ltd is to be repaid Rs 375.00 lakhs in full and final settlement of their claim as under:-

a) Equity Share at par i.e. Rs 10.00 for an amount of Rs. 143.00 lakhs.

b) Balance amount of Rs 232.00 lakhs to be repaid over a period of four years starting 1.10.2010 along with interest @ 5% p.a.

The Equity shares have since been allotted. The amount to be waived off/written back of Rs 907.00 Lakhs has been written back fully as per mutual agreement although some amount is still payable. The interest for the period alter 01.04.2013 has been waived off by lender.

2.10 Impairment of Assets: - In pursuance of Accounting Standard 28 - Impairment of assets issued by the Institute of chartered Accountants of India, the company has not reviewed it''s carrying cost of assets with value in use (determined based on future earnings) / (net selling price determined based on estimation/ The management intends to carry out in near future detailed exercise involving expert opinion to determine any loss to be accounted for impairment of assets. As such in the current financial year impairment loss has not been accounted for. However, in the opinion of management no provision for loss of impairment of asset shall be required to be made.

2.11 The Company has only one reportable business segment and geographical segment and hence no further disclosure is required under Accounting Standard -17 on Segment Reporting.

2.12 Disclosures as per Accounting Standard 18 "Related Parly disclosure" issued by the Institute of Chartered Accountants of India is annexed herein in Annexure-I.

2.13 In accordance with accounting standard 22 “Accounting for Taxes on Income" issued by the ICAI, deferred tax Liabilities based on depreciation differences as on 30/06/2014 is adequately covered by deferred tax assets based on the benefits of unabsorbed depreciation, carried forward losses etc. those are available to the company as at 30/06/2014 and as such there is no impact of the same on these accounts. No further deferred tax assets has been recognized since there is no certainly of future taxable income to take benefit of Deferred tax assets.

2.14 Secured / Unsecured loans are subject to confirmation from the concerned parties.

2.15 Previous year''s figure has been re-grouped/re-arranged whenever necessary to conform to current''s year classification.

2.16 Note 1.00 to 2.46 form an integral part of Balance Sheet and Statement of Profit & Loss.

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Jun 30, 2013

CURRENT YEAR PREVIOUS YEAR {Rs.) (Rs.)

1.1 Contingent LiabiIities not provided for

a) i) For Excise/ESI/PF Matter 13,91,482.00 13,91,482.00

b) Miscellaneous Matters (Gratuity) 5,00,000.00 5,00,000.00

c) Other Matters in Dispute 38,05,200.00 38,05,200.00

d) Bank Gurantee 2,10,000.00 NIL

Note: Computation of Net Profit in accordance with Section 349 of the Companies Act, 1956 has not been given as commission by way of percentage of profit has not been paid for the year to any of the directors.

1.2 Balances grouped under Sundry Debtors, Advance from Customers, Sundry Creditors and Loans and Advances, Other Liabilities are subject to reconciliation and confirmation.

1.3 No Provision has been made for leave salary and gratuity of employee (amount unascertained), and the same shall be accounted for on cash basis.

1.4 No provision has been made for Income tax for the current year in view of brought forward Losses and Depreciation.

1.5 In the opinion of the Board of Directors, the aggregate value of current Assets, Loans and Advance on realization in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

1.6 The Stocks have been taken as per inventories taken valued and certified by the management of the company.

1.7 As suppliers covered under the interest on Delayed Payment to "Micro, Small, and Medium

Enterprises Development Act, 2006" are yet to be identified, liability towards interest remained as unpaid to such small scale and/ or ancillary industrial undertakings as on 31.03.2012 is unascertainable.

1.8 Sundry Debtors/Creditors/Advances/Liabilities Balance are written off/back as approved by the management.

1.9 The BIFR has declared that the Company had become a Sick Industrial Company as on 31-12- 2003. Revival/Rehabilitation Scheme has now been approved by BIFR vide order dated 26.07.2010 and 01.04.2009 has been taken as cut off date. In terms of Revival/Rehabilitation Scheme the management has carried out restructuring of Balance Sheet in financial year 2009- 2010.

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Jun 30, 2012

CURRENT YEAR PREVIOUS YEAR

(Rs.) (Rs.) 1.1 Contingent Liabilities

a) i) For Excise/ESI/PF Matter 13,91,482.00 15,81,800.00

ii) Sales Tax Matter 0.00 5,00,000.00

b) Miscellaneous Matters (Gratuity) 5,00,000.00 5,00,000.00

c) Other Matters in Dispute 38,05,200.00 38,05,200.00

Note: Computation of Net Profit in accordance with Section 349 of the Companies Act, 1956 has not been given as commission by way of percentage of profit has not been paid for the year to any of the directors.

1.2 Balances grouped under Sundry Debtors, Advance from Customers, Sundry Creditors and Loans and Advances, Other Liabilities are subject to reconciliation and confirmation.

1.3 No Provision has been made for leave salary and gratuity of employee (amount unascertained)

1.4 No provision has been made for Income tax for the current year in view of brought forward Losses and Depreciation.

1.5 In the opinion of the Board of Directors, the aggregate value of current Assets Loans and Advance on realization in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

1.6 The Stocks have been taken as per inventories taken valued and certified by the management of the company.

1.7 As suppliers covered under the interest on Delayed Payment to "Micro, Small and Medium Enterprises Development Act, 2006" are yet to be identified, liability towards interest remained as unpaid to such small scale and/ or ancillary industrial undertakings as on 31 03 2012 is unascertainable.

1.8 Sundry Debtors/Creditors/Advances/Liabilities Balance are written off/back as approved by the management.

1.9 The BIFR had declared that the Company had become a Sick Industrial Company as on 31-12-2003. Revival/Rehabilitation Scheme had approved by BIFR vide order dated 26.07.2010 and 01.04.2009 had been taken as cut off date. In terms of Revival/ Rehabilitation Scheme the Management had carried out restructuring of Balance Sheet in financial year 2009-2010

1.10 As per rehabilitation scheme approved by Board For Industrial and Financial Reconstruction Analysis Securities Pvt Ltd is to be repaid Rs 375.00 lakhs in full and final settlement of their claim as under:-

a) Equity Share at par i.e. Rs 10.00 for an amount of Rs. 143.00 lakhs.

b) Balance amount of Rs 232.00 lakhs to be repaid over a period of four years starting 1.10.2010 along with interest @ 5% p.a.

The Equity shares have since been allotted. The amount to be waived off/written back of Rs 907.00 Lakhs as per order of Board For Industrial and Financial Reconstruction, is being written back in proportion to the outstanding amount payable as on date of Balance Sheet.

1.11 Impairment of Assets: - In pursuance of Accounting Standard 28 - Impairment of assets issued by the Institute of chartered Accountants of India, the company has not reviewed it''s carrying cost of assets with value in use (determined based on future earnings) / ( net selling price determined based on estimation). The management intends to carry out in near future detailed exercise involving expert opinion to determine any loss to be accounted for impairment of assets. As such in the current financial year impairment loss has not been accounted for. However, in the opinion of management no provision for loss of impairment of asset shall be required to be made.

1.12 The Company has only one reportable business segment and geographical segment and hence no further disclosure is required under Accounting Standard - 17 on Segment Reporting.

1.13 The company has appointed a Company Secretary as required under section 383-A of Companies Act, 1956.

1.14 Disclosures as per Accounting Standard 18 "Related Party disclosure" issued by the Institute of Chartered Accountants of India is annexed herein in Annexure -II.

1.15 In accordance with accounting standard 22 "Accounting for Taxes on Income" issued by the ICAI, deferred tax Liabilities based on depreciation differences as on 31/03/2012 is adequately covered by deferred tax assets based on the benefits of unabsorbed depreciation, carried forward losses etc. those are available to the company as at 31/03/2012 and as such there is no impact of the same on these accounts. No further deferred tax assets has been recognized since there is no certainty of future taxable income to take benefit of Deferred tax assets.

1.16 Secured / Unsecured loans are subject to confirmation from the concerned parties

1.17 The Company had extended its accounting year from 31st March 2011 to 30th June 2011 Accordingly, the previous period figures are being for fifteen months for period ended 30th June 2011. As such current year figures for being 12 months are not comparable with that of previous year.

1.18 Previous year''s figure has been re-grouped / re- arranged wherever necessary to conform to current year classification.

1.19 Note 1.00 to 2.48 form an integral part of Balance Sheet and Statement of Profit & Loss.

Signature to Note 1 to 2.48

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Jun 30, 2011

1. Bakabces grouped under sundry debtors, advance from customers, sundry creditors and loans and advances other liabilities are subject to reconciliation and confirmation.

2.a) No provision has been made for leave salary and gratuity of employee (amount unascertained) b) No provision has been made for income tax for the current year in view of brought forward losses and Depreciation.

3. In the opinion of the Board of Directors the aggregate value of current Assets, Loans and Advance on realization it ordinary course of business will not be less than the amount at which theses are stated in the Balance Sheet.

4. The Stocks have been taken as per inventories taken valued and certified by the management of the company

5. As suppliers covered under the interest on Delayed payment to "Micro small and medium enterprises Development Act, 2006 are yet to be identified liability towards interest remained as unpaid to such small scale and/or ancillary industrial undertakings as on 31.03.2011 is unascertainable.

6. Sundry Debtors/Creditors/Advances/Liabilities Balance are written off/back as approved by management.

7.The BIFR has declared that the company had become a sick Industrial Company as on 31-12-2003.revival/rehabilitation science has now been approved by BIFR vide order dated 26.07.2010 and 01.04.2009 has been taken as cut off date in terms of Revival/Rehabilitation scheme the management has carried out restricting of Balance Sheet in financial year 2009-2010

8. As per rehabilitation scheme approved by Board For Industrial and Financial Reconstruction. Analysis securities Pvt Ltd is to be repaid Rs 375.00Lakhs in full and final settlement of their claim as under.

a) Equity Share at par i.e. Rs 10.00 for an amount of Rs. 143.00 lakhs

b) Balance amount of Rs 232.00lakhs to be repaid over a period of four years starting 1.10.2010 along with interest @ 5 % p.a

9. Impairment of Assets : In pursuance of Accounting Standard 28 Impairment of assets issued by the institute of chartered accountants of india , the company has not reviewed its carrying cost of assets with value in use (determined based on future earnings)/net selling price(determined based on estimation).The management intends to carry our in near future detailed exercise involving expert opinion to determine any loss to be accounted for impairment of assets. As such in the current financial year impairment loss has not been accounted for However, in the opinion of management no provision for loss of impairment of assets shall be required to be made.

10. The company has only one reportable business segment and geographical segment and hence no further disclose is required under accounting standard-17 on segment reporting.

11. The company dose not have a company secretary as required under section 383-A of companies Act,1956 24. The Company has extended its accounting year from 31st March 2010 to 30th June 2010. Accordingly' the current year's figure being for fifteen months period ended 30th June 2010, are not comparable with those of the previous year

12. Previous year's figures have been given in brackets. Figures in Para 17 above have been given by the Management and relied upon by the auditors.

13. Previous year's figure has been re-grouped / re- arranged whenever-necessary.

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Mar 31, 2010

CURRENT YEAR PREVIOUS YEAR Rs. Rs.

1 Contingent Liabilities

a) i) For Excise/ESI/PF Matter 14,07,751.00 14,07,751.00

ii) Income Tax Matter 5,50,000.00 5,50,000.00

iii) Sales Tax Matter 20,68,084.00 20,68,084.00

b) Miscellaneous Matters(Gratuity) 15,00,000.00 15,00,000.00

c) Other Matters in Dispute 3805200.00 3805200.00

2. Balances grouped under Sundry Debtors, Advance from Customers, Sundry Creditors and Loans and Advances, Other Liabilities are subject to reconciliation and confirmation.

3 a) No Provision has been made for leave salary and gratuity of employee (amount unascertained)

b) No provision has been made for Income tax for the current year in view of current year loss & brought forward Losses and Depreciation.

4. In the opinion of the Board of Directors, the aggregate value of current Assets, Loans and Advance on realization in ordinary course of business will not be less than the amount at which these are stated in the Balance Sheet.

5. The Stocks have been taken as per inventories taken valued and certified by the management of the company.

6. As suppliers covered under the interest on Delayed Payment to "Micro, Small, and Medium Enterprises Development Act, 2006" are yet to be identified, liability towards interest remained as unpaid to such small scale and/ or ancillary industrial undertakings as on 31.03.2010 is unascertainable.

7. Sundry Debtors/Creditor/Advances/Liabilities Balance are written off/back as approved by the management.

8. The net worth of the company had become negative. The company had made a reference to Board For Industrial and Financial Reconstruction. The BIFR had declared that the Company had become a Sick Industrial Company as on 31-12-2003.Canara Bank was appointed as Operating agency to conduct techno economic viability study and prepare revival- scheme if feasible. Revival/Rehabilitation Scheme has now been approved by BIFR vide order dated 26.07.2010 and 01.04.2009 has been taken as cut off date. In terms of Revival/Rehabilitation Scheme the management has carried out restructuring of Balance Sheet as on 01.04.2009 as under -

a) Equity Share Capital has been reduced by 90% from Rs 580.46 lakhs to Rs 58.04 lakhs.(lrrespective of Provisions of section 100-103 of The Companies Act 1956 but subject to approval in forthcoming Annual General Meeting by Special Resolution ). The fresh Induction of Share Capital by promoters has seen cone irrespective of requirement of following the provisions of section 81(1A),295, 372A of the Companies Act 1956

b) Share Premium Account of Rs. 504.75 has been written off against debit Balance of Profit & Loss Account.

c) Term Loan from HSIDC to be settled at Rs125.00 lakh as against book figure, of Rs 118.01 lakhs. And other loans to be settled at Rs. 27.11 as against Book Figure of Rs 45.19 Lakhs.

d) Sundry Creditors to be reduced by 80% from Book Figure of Rs 688.01 to Rs. 137.60 Lakhs, out of which Rs 87.60 lakhs as deferred creditors to be paid over:4 years .Amount Due to directors to be reduced by 80% from Book Figure of Rs 41.00 to Rs. 8.20 Lakhs ¦

e) Sundry Debtors to be reduced by 50% from Book Rgure of Rs 97.84 lakhs to Rs 48.92 lakhs. Loans and Advances to be reduced by 50% from Book Figure of Rs 36.75 lakhs to Rs 18.37 lakhs

9. The secured loans from Canara bank amounting to Rs.1282.23 lakhs had been assigned in favour of Analysis Securities Pvt Ltd, along with security given to Canara Bank, for meeting fund required for One Time Settlement with Canara Bank. The company was liable to pay Rs. 1282.23 lakhs to Analysis Securities Pvt Ltd, irrespective of the settled amount with Canara Bank. Since then.OTS has been arrived with Canara bank. As per rehabilitation scheme approved by Board For Industrial and Financial Reconstruction , Analysis Securities Pvt Ltd is to be repaid Rs 375.00 lakhs in full and final settlement of their claim as under

a) Equity Share at par i.e. Rs 10.00 for an amount of Rs. 143.00 lakhs

b) Balance amount of Rs 232.00 lakhs to be repaid over a period of four years starting 1.10.2010 along. with interest @ 5% p.a

However Analysis Securities Pvt Ltd has agreed to waive, off the remainder amount of Rs.907.00 lakhs (Rs 1282.00lakhs- Rs 375.00 Lakhs) only when Rs. 375.00 lakhs is paid to it in full as per BIFR order.

10. Impairment of Assets: - In pursuance of Accounting Standard 28- Impairment of assets issued by the Institute of chartered Accountants of India, the company has not reviewed its carrying cost of assets with value in use (determined based on future earnings) / net selling price (determined based on estimation).The management intends to carry out in near future detailed exercise involving expert opinion to determine any loss to be accounted for impairment of assets. .As such in the current financial year impairment loss has not been accounted for .However, in the opinion of management no provision for loss of impairment of asset shall be required to be made.

11 The Company has only one reportable business segment and geographical segment and hence no further disclosure is required under Accounting Standard - 17 on Segment Reporting.

12. The company dose not have a Company Secretary as required under section 383-A of Companies Act, 1956.

13.In accordance with accounting standard 22 "Accounting for Taxes on Income" issued by the ICAI, deferred tax liabilities based on depreciation differences as on 31/03/2010 is adequately covered by deferred tax assets . based on the benefits of unabsorbed depreciation, carried forward losses etc. that are available to the company as at 31/03/2010.And as such there is no impact of the same on these accounts. No further deferred tax assets has been recognized since there is no certainty of future taxable income to take benefit of Deferred tax assets.

14. Following assets whether from the dissolved firm or thereafter are yet to be transferred in the name of company.

Book Value (Rs)

Land at Kanpur 3500

15. Secured / Unsecured loans are subject to confirmation from the concerned parties.

16. Previous years figures have been given in brackets. Figures in para 17 above have been given by the management and relied upon by the auditors.

17. Previous years figure have been re-grouped / re- arranged whenever necessary.