Notes to Accounts of Bhagwati Autocast Ltd.

Mar 31, 2025

2.9 Provisions, contingent liabilities and contingent assets

Provisions are recognised when the Company has a present legal or
constructive obligation as a result of past events, it is probable that an
outflow of resources will be required to settle the obligation and the
amount can be reliably estimated. Provisions are not recognised for
future operating losses.

Provisions are measured at the present value of management’s best
estimate of the expenditure required to settle the present obligation at
the end of the reporting period. The discount rate used to determine the
present value is a pre-tax rate that reflects current market assessments
of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as
interest expense.

Contingent Liabilities are disclosed in respect of possible obligations
that arise from past events but their existence will be confirmed by the

occurrence or non-occurrence of one or more uncertain future events
not wholly within the control of the Company or where any present
obligation cannot be measured in terms of future outflow of resources
or where a reliable estimate of the obligation cannot be made.

A contingent asset is a possible asset arising from past events, the
existence of which will be confirmed only by the occurrence or non¬
occurrence of one or more uncertain future events not wholly within
the control of the Company. Contingent assets are not recognised till
the realisation of the income is virtually certain. However the same are
disclosed in the financial statements where an inflow of economic benefit
is possible.

2.10 Employee benefits :

Short-term obligations

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

Other long-term employee benefit obligations

The liabilities for earned leave and sick leave that are not expected to
be settled wholly within 12 months are measured as the present value
of expected future payments to be made in respect of services provided
by employees up to the end of the reporting period using the projected
unit credit method.

Post-employment obligations

The Company operates the following post-employment schemes:

(a) defined benefit plans such as gratuity; and

(b) defined contribution plans such as provident fund.

Gratuity obligations

The liability or asset recognised in the balance sheet in respect of defined
benefit gratuity plan is the present value of the defined benefit obligation
at the end of the reporting period less the fair value of plan assets. The
defined benefit obligation is calculated annually by actuaries using
the projected unit credit method.

The present value of the defined benefit obligation is determined by
discounting the estimated future cash outflows by reference to market
yields at the end of the reporting period on government bonds that
have terms approximating to the terms of the related obligation.

The net interest cost is calculated by applying the discount rate to the
net balance of the defined benefit obligation and the fair value of plan
assets. This cost is included in employee benefit expense in the Statement
of Profit and Loss.

Remeasurement gains and losses arising from experience adjustments
and changes in actuarial assumptions are recognised in the period in
which they occur, directly in other comprehensive income. They are
included in retained earnings in the statement of changes in equity and
in the balance sheet.

Gratuity liability of employees is funded with the approved gratuity
trusts.

Defined Contribution Plans

Defined Contribution Plans such as Provident Fund, etc., are charged
to the Statement of Profit and Loss as incurred.

2.11 Borrowing costs :

Interest and other borrowing costs attributable to qualifying assets are

capitalised. Other interest and borrowing costs are charged to Statement
of Profit and Loss.

2.12 Earnings Per Share :

Basic earnings per share

Basic earnings per share is calculated by dividing

• the profit attributable to owners of the Company

• average number of equity shares outstanding during the
financial year, adjusted for bonus elements in equity shares
issued during the year and excluding treasury shares.

Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination
of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs
associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares
that would have been outstanding assuming the conversion
of all dilutive potential equity shares.

2.13 Impairment of Assets

An asset is treated as impaired when the carrying cost of asset exceeds
its recoverable Value. An impairment loss is charged to the statement
of Profit and Loss in the year in which an asset is identified as impaired.
The impairment loss recognized in earlier accounting period is reversed
if there has been a change in the estimate of recoverable amount.

2.14 Cash and cash equivalents

Cash and cash equivalent comprise cash in hand, demand deposits
with banks, other short term highly liquid investments with original
maturities of three months or less, which are subject to an insignificant
risk of changes in value. Cash and cash equivalents include balances
with banks which are unrestricted for withdrawal and usage.

2.15 Foreign Currency transactions:

Foreign currency transactions are translated into the functional
currency using exchange rate at the date of the transaction. Foreign
exchange gains and losses from the settlement of these transactions are
recognized in the statement of profit and loss. Foreign currency
denominated monetary assets and liabilities are translated into
functional currency at the exchange rates in effect at the balance sheet
date, the gain or loss arising on such translations are recognized in the
statement of profit and loss.

2.16 Events occurring after the balance sheet date

Assets and liabilities are adjusted for events occurring after the reporting
period that provides additional evidence to assist the estimation of
amounts relating to conditions existing at the end of the reporting period.

Dividends declared by the Company after the reporting period are not
recognized as liability at the end of the reporting period. Dividends
declared after the reporting period but before the issue of financial
statements are not recognized as liability since no obligation exists at
that time. Such dividends are disclosed in the notes to the financial
statements.

2.17 Recent Pronouncement:

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. During the
year ended March 31,2025, MCA has notified Ind AS 117 - Insurance
Contracts and amendments to Ind AS 116 - Leases, relating to sale
and lease back transactions, applicable from April 1, 2024. The
Company has assessed that there is no impact on its financial
statements.

On May 9, 2025, MCA notifies the amendments to Ind AS 21 - Effects
of Changes in Foreign Exchange Rates. These amendments aim to
provide clearer guidance on assessing currency exchangeability and
estimating exchange rates when currencies are not readily
exchangeable. The amendments are effective for annual periods
beginning on or after April 1, 2025. The Company is currently assessing
the probable impact of these amendments on its financial statements.

Nature and purpose of reserves

(a) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance
with the specific provisions of the Companies Act, 2013.

(b) General Reserve

General Reserve has been created by transfer out of profit generated by the Company and is available for distribution to shareholders. Under
the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance
with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified
percentage of net profit to general reserve has been withdrawn.

(c) Retained Earnings

Retained earnings are the profits that the Company has earned till date including effect of remeasurement of defined benefit obligations less any
transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

NOTE NO. 34.1

The Company had received demand for excise duty on sale of patterns & moulding boxes for financial years 2001-02, 2002-03, 2003-04, 2004¬
05 & 2005-06 against which the Company had preferred appeals before Commissioner of excise as well as CESTAT and also paid Rs. 11.53
lakhs under protest which has been shown as "Balance with Government Authorities" under "Other Non-current Assets". During the FY 2022¬
23, the Company had received orders for Rs. 5.26 Lakh from Assistant Commissioner, Central GST in its favour.

NOTE NO. 34.2

The Company had received demand for GST (including tax, interest and penalty) amounting to Rs. 130.59 lakhs for financial years 2017-18
to 2020-21 against which the Company had preferred appeals before Commissioner Appeals of SGST, Ahmedabad and also paid Rs. 6.52
lakhs under protest which has been shown as "Balance with Government Authorities" under "Other Non-current Assets".

NOTE NO. 35 - Segment Information

The Company’s Chief Operating Decision Maker (CODM) examines the Company’s performance from business and geographic perspective. In
accordance with Ind AS 108 - “Operating Segments”, evaluation by the CODM and based on the nature of activities performed by the Company,
which primarily relate to manufacturing of castings, the Company does not operate in more than one business segment. Therefore no separate
disclosure as per Ind AS 108 - "Operating Segments" is given.

Note No. 39 - Financial Instruments - Fair Values & Risk Management

Note No. 39.1 - Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current

transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below :

1. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans
from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and
individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these
receivables.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 : Input that is significant to the fair value measurement is unobservable.

The company''s Board of Directors has overall responsibility for the establishment and oversight of the company''s risk management framework.
The company''s risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and
controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the
company''s activities.

Note No. 39.2.1 - Credit Risk Management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The carrying amount of following financial assets represents the maximum credit exposure.

Trade Receivables

The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends
and ageing of accounts receivable. Individual risk limits are set accordingly. Trade receivables are non-interest bearing and are normally 30 to
60 days credit term. The Company performs impairment analysis at each reporting date using expected credit loss model. The Company does
not hold collateral as security.

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.
The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and
other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments
including investments and deposits, foreign currency receivables, payables and loan borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process
of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior
Management and the Audit Committee. The activities of this department include management of cash resources, borrowing strategies, and
ensuring compliance with market risk limits and policies.

a) Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.
In order to optimize the company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury
performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instru¬
ments in its total portfolio.

b) Foreign currency risk

The company does not operate internationally and hence not exposed to currency risk on account of its receivables or payables in foreign
currency.

c) Commodity Price Risk

Principal Raw Material for company’s products is scrap and pig iron. Company sources its raw material requirements from domestic markets.
Domestic market price generally remains in line with international market prices. Volatility in metal prices, currency fluctuation of rupee vis a
vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price of scrap and pig iron.
Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and
also through appropriate contracts and commitments.

Note No. 46

Balances of trade receivables, creditors, advances, etc. are subject to confirmation / reconciliation and consequential adjustments thereof.
Adjustments in this respect, if any required, would be accounted for as and when ascertained.

Note No. 47

In the opinion of the Management, there are no indications, internal or external, which could have the effect of impairing the value of assets to
any material extent as at the balance sheet date requiring recognition in terms of INDAS-36.

Note No. 48

The company has used accounting software for maintaining its books of accout which has a feature of recording audit trail (edit log) facility and
the same has been operated throughout the year for all relevant transactions recorded in the software. Further, there are no instances of audit
trail being tampered with. Additionally, the audit trail of prior year(s) has been preserved by the Company as per the statutory requirements for
record retention to the extent it was enabled and recorded in the respective years.

Note No. 49

The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules
made thereunder. No proceeding has been initiated or pending against the company for holding any benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

Note No. 50

The Company does not have any transactions with companies struck off.

Note No. 51

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

Note No. 52

The Company has not traded or invested in crypto currency or virtual currency during the financial year.

Note No. 53

As on 31/03/2025, there is no unutilised amounts in respect of long term borrowings from banks and the borrowed funds have been utilised for
the specific purpose for which the funds were raised.

Note No. 54

The Company does not have any such trasaction 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).

Note No. 55

"The Company have 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."

Note No. 56

"The Company have 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."

Note No. 57

The company evaulated subsequent events through May 23, 2025, the date the financial statements were available for issuance, and determined
that there were no additional material subsequent events requiring disclosure.

Note No. 58

Previous year''s figures have been re-grouped/re-arranged/re-casted, wherever necessary, so as to make them comparable with current year''s
figures. The management believes that such reclassification does not have any material impact on the information presented in the financial
statements.

As per our report of even date attached V. R. Ambani (Director)

For Mahendra N. Shah & Co. Dr. P. N. Bhagwati (DIN : 00351512)

^{Chartered Accountants Chairman} _{S. C. Mehta} (Director)
Firm Regn. No. 105775W (DIN : 00096799) ^{S C}.

Chirag M. Shah Reena P. Bhagwati

Partner Managing Director

Membership No. 045706 (DIN : 00096280)

Vidisha Rathod

^{Company Secretary} Place : Ahmedabad

Place : Ahmedabad

Date : 23/05/2025 ^{Date : 23/05/2025}

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Mar 31, 2024

Note No. 14.4

The Company has only one class of shares i.e. equity shares. All equity shares carry equal rights with respect to voting and dividend. In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remaining after distribution of all preferential amounts.

Note No. 14.5

Subsequent to Balance Sheet date, the Board of Directors has recommended a dividend of Rs. 2.00 per share to be paid on fully paid equity shares in respect of the Financial year ended on March 31,2024. This equity dividend is subject to approval by shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial statements.

Nature and purpose of reserves

(a) Securities Premium

The amount received in excess of face value of the equity shares is recognised in Securities Premium Reserve. The reserve is utilised in accordance with the specific provisions of the Companies Act, 2013.

(b) General Reserve

General Reserve has been created by transfer out of profit generated by the Company and is available for distribution to shareholders. Under the erstwhile Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to the introduction of the Companies Act, 2013, the requirement to mandatory transfer a specified percentage of net profit to general reserve has been withdrawn.

(c) Retained Earnings

Retained earnings are the profits that the Company has earned till date including effect of remeasurement of defined benefit obligations less any transfers to general reserve, dividends or other distributions paid to shareholders. Retained Earnings is a free reserve available to the Company.

NOTE NO. 34 Contingent Liabilites and Commitments
Contingent Liabilities Demands for excise duty in respect of different years against which company has preferred appeals before appropriate authorities [Refer Note No. 34.1]	6.28	6.28
Outstanding bank guarantees & letter of credit	180.00	180.00
Commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances)	1,178.81	0.00

NOTE NO. 34.1

The Company had received demand for excise duty on sale of patterns & moulding boxes for financial years 2001-02, 2002-03,2003-04, 2004-OS & 2005-06 against which the Company had preferred appeals before Commissioner of excise as well as CESTAT and also paid Rs. 11.53 lakhs under protest which has been shown as balance with excise department. During the FY 2022-23, the Company had received orders for Rs. 5.26 Lakh from Assistant Commissioner, Central GST in its favour.

NOTE NO. 35 - Segment Information

The company manufactures and deals in single product, i.e. manufacturing of casting and therefore, no separate disclosure as per IND AS 108 "Operating Segments" is given.

vii) Sensitivity Analysis

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and employee turnover. The sensitivity analysis below, have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensitivity analysis on defined benefit obligation is given

Note No. 39 - Financial Instruments - Fair Values & Risk Management

Note No. 39.1 - Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current

transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below :

1. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 : Input that is significant to the fair value measurement is unobservable.

The company''s Board of Directors has overall responsibility for the establishment and oversight of the company''s risk management framework. The company''s risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

Note No. 39.2.1 - Credit Risk Management

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The carrying amount of following financial assets represents the maximum credit exposure.

Trade Receivables

The Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. Trade receivables are non-interest bearing and are normally 30 to 60 days credit term. The Company performs impairment analysis at each reporting date using expected credit loss model. The Company does not hold collateral as security.

Note No. 39.2.2 - Liquidity Risk

Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company''s net liquidity position through rolling forecast on the basis of expected cash flows

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, borrowing strategies, and ensuring compliance with market risk limits and policies.

a) Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken.

b) Foreign currency risk

The company does not operate internationally and hence not exposed to currency risk on account of its receivables or payables in foreign currency.

c) Commodity Price Risk

Principal Raw Material for company’s products is scrap and pig iron. Company sources its raw material requirements from domestic markets. Domestic market price generally remains in line with international market prices. Volatility in metal prices, currency fluctuation of rupee vis a vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price of scrap and pig iron. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

For the purposes of the Company’s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company’s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

The company monitors capital using gearing ratio, which is net debt divided by total equity plus debt.

Balances of trade receivables, creditors, advances, etc. are subject to confirmation / reconciliation and consequential adjustments thereof. Adjustments in this respect, if any required, would be accounted for as and when ascertained.

Note No. 46

In the opinion of the Management, there are no indications, internal or external, which could have the effect of impairing the value of assets to any material extent as at the balance sheet date requiring recognition in terms of AS-36.

Note No. 47

The Parliament of India has approved the Code on Social Security, 2020 (the Code) which may impact the contributions by the Company towards provident fund, gratuity and ESIC. The Ministry of Labour and Employment has released draft rules for the Code on November 13, 2020. Final rules are yet to be notified. The Company will assess the impact of the Code when it comes into effect and will record related impact, if any.

Note No. 48

The company does not hold any benami property as defined under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder. No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

Note No. 49

The Company does not have any transactions with companies struck off.

Note No. 50

The company does not have any charges or satisfaction, which is yet to be registered with ROC beyond the statutory period.

Note No. 51

The Company has not traded or invested in crypto currency or virtual currency during the financial year.

Note No. 52

As on 31/03/2024, there is no unutilised amounts in respect of long term borrowings from banks and the borrowed funds have been utilised for the specific purpose for which the funds were raised.

Note No. 53

The Company does not have any such trasaction 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).

Note No. 54

"The Company have 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."

Note No. 55

"The Company have 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."

Note No. 56

Previous year''s figures have been re-grouped/re-arranged/re-casted, wherever necessary, so as to make them comparable with current year''s figures.

As per our report of even date attached

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Mar 31, 2018

NOTE NO. 1 - Corporate Information:

Bhagwati Autocast Limited (“The Company”) is a leading producer of CI & SGI Castings in Gujarat having a plant at Bavla, Ahmedabad. We are an ISO 9002 unit, having manufacturing capacity of 18000 MT p.a. of highly specialized Cast Iron(CI) & Spheroidal Graphite Iron (SGI) Castings. The wide range of castings is from 40 kg. to 140 kg. for the automobile and tractor OEM in the country.

The Company is a public company domiciled in India and is incorporated under the provisions of Companies Act applicable in India. Its shares are listed on Bombay Stock Exchange (BSE). The registered office of the company is located at Bavla, Ahmedabad. At present, the Company caters to domestic market only.

The financial statements were authorized for issue in accordance with a resolution of the directors on May 26, 2018.

Note No. 2.

The Company has only one class of shares i.e. equity shares. All equity shares carry equal rights with respect to voting and dividend.

Note No. 3.

In the event of liquidation of the Company, the equity shareholders shall be entitled to proportionate share of their holding in the assets remaining after distribution of all preferential amounts.

Note No. 4

Subsequent to Balance Sheet date, the Board of Director has recommended a dividend of Rs. 0.80 per share to be paid on fully paid equity shares in respect of the Financial year ended on March 31, 2018. This equity dividend is subject to approval by shareholders at the ensuing Annual General Meeting and has not been included as a liability in these financial statements. The total estimated equity dividend to be paid is Rs. 23.05 lakhs and the dividend distribution tax thereon amounts to Rs. 4.74 Lakhs.

NOTE NO. 5.

There is no principal amount and interest overdue to Micro, Small and Medium Enterprises as at the year end. The information regarding Micro or small enterprises has been determined on the basis of information available with the management, which has been relied upon by the auditors.

NOTE NO. 6.

The Company has received demand for excise duty on sale of patterns & moulding boxes for financial years 2001-02, 2002-03, 2003-04, 200405 & 2005-06 against which the Company has preferred appeals before Commissioner of excise as well as CESTAT and also paid Rs. 11.53 lakhs under protest which has been shown as balance with excise department in the accounts.

NOTE NO. 7 - Segment Information

The company manufactures and deals in single product, i.e. manufacturing of casting and therefore, no separate disclosure as per IND AS 108 "Operating Segments" is given.

Note No. 8 - Financial Instruments - Fair Values & Risk Management

Note No. 8.1 - Accounting Classifications & Fair Value Measurements

The fair values of the financial assets and liabilities are measured at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

All financial instruments are initially recognized and subsequently re-measured at fair value as described below :

1. Fair values of cash and short term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short-term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on the evaluation, allowances are taken to account for the expected losses of these receivables.

The company uses the following hierarchy for determining and disclosing the fair values of financial instruments by valuation technique:

Level 1 : Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 : Inputs other than the quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.

Note No. 8.2 - Financial Risk Management

The company''s Board of Directors has overall responsibility for the establishment and oversight of the company''s risk management framework. The company''s risk management policies are established to identify and analyse the risks faced by the company, to set appropriate risk limits and controls and to monitor risks. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the company''s activities.

Note No. 8.2.1 - Credit Risk Management

Credit risk arises from the possibility that counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends and ageing of accounts receivable. Individual risk limits are set accordingly. The aging analysis and break-up thereto is prepared, which is subject to pending settlement of claims and reconciliation of accounts.

Note No. 8.2.2 - Liquidity Risk

Liquidity Risk is defined as the risk that the company will not be able to settle or meet its obligations on time or at reasonable price. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the company''s net liquidity position through rolling forecast on the basis of expected cash flows.

Note No. 8.2.3 - Market risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits, foreign currency receivables, payables and loan borrowings.

The Company manages market risk through a treasury department, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, borrowing strategies, and ensuring compliance with market risk limits and policies.

a) Interest rate risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to the interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

With all other variables held constant, the following table demonstrates the impact of the borrowing cost on floating rate portion of loans and borrowings and excluding loans on which interest rate swaps are taken.

b) Foreign currency risk

The company does not operate internationally and hence not exposed to currency risk on account of its receivables or payables in foreign currency.

c) Commodity Price Risk

Principal Raw Material for company’s products is scrap and pig iron. Company sources its raw material requirements from domestic markets. Domestic market price generally remains in line with international market prices. Volatility in metal prices, currency fluctuation of rupee vis a vis other prominent currencies coupled with demand-supply scenario in the world market affect the effective price of scrap and pig iron. Company effectively manages availability of material as well as price volatility through well planned procurement and inventory strategy and also through appropriate contracts and commitments.

Note No. 9 - Capital management

For the purposes of the Company’s capital management, capital includes issued capital and all other equity reserves. The primary objective of the Company’s Capital Management is to maximise shareholder value. The company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirement of the financial covenants.

The company monitors capital using gearing ratio, which is net debt divided by total equity plus debt.

Note No. 10

Letters of balance confirmation have been sent to various parties which are subject to confirmation and reconciliation, if any.

Note No. 11

Previous year''s figures have been re-grouped/re-arranged/re-casted, wherever necessary, so as to make them comparable with current year''s figures.

Note No. 12

In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.

Note No. 13

In terms of Ind AS 36 - Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

Note No. 14

As permitted by CERC & GERC (Regulating authorities), the company has opted for purchase of power through approved Power exchange which has resulted in to gain of Rs. 4.37 Lakhs (Previous year Rs. 27.88 Lakhs) and power & fuel expenses are reduced to that extent.

Note No. 15 - First time adoption of Ind AS

The company has prepared its first Financial Statements in accordance with Ind AS for the year ended March 31, 2018. For periods up to and including the year ended 31 March 2017, the Company prepared its financial statements in accordance with Indian GAAP including accounting standards notified under the Companies (Accounting Standards) Rules, 2006 (as amended). The effective date for Company’s Ind AS Opening Balance Sheet is 1 April 2016 (the date of transition to Ind AS).

The accounting policies set out in Note 1 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS Balance Sheet at April 01, 2016 (the Company’s date of transition). According to Ind AS 101, the first Ind AS Financial Statements must use recognition and measurement principles that are based on standards and interpretations that are effective at March 31, 2018, the date of first time preparation of Financial Statements according to Ind AS. These accounting principles and measurement principles must be applied retrospectively to the date of transition to Ind AS and for all periods presented within the first Ind AS Financial Statements.

Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of April 01, 2016 compared with those presented in the Indian GAAP Balance Sheet as of March 31, 2016, were recognized in equity under retained earnings within the Ind AS Balance Sheet.

Note No. 16.1 - Exemption and exceptions availed:

Ind AS optional exemptions

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

IND AS mandatory exceptions:

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

Note No. 16.2 - Explanatory notes to the transaction from previous GAAP to Ind AS

a) Proposed Dividend

In the financial statements prepared under Previous GAAP, dividend on equity shares recommended by the board of directors after the end of reporting period but before the financial statements were approved for issue, was recognised as a liability in the financial statements in the reporting period relating to which dividend was proposed. Under Ind AS, such dividend is recognised in the reporting period in which the same is approved by the members in a general meeting.

b) Other comprehensive income:

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP Statement of Profit and loss to Statement of Profit and loss as per Ind AS. Further, Indian GAAP Statement of Profit and loss is reconciled to total comprehensive income as per Ind AS.

---

Mar 31, 2015

NOTE NO. 1

During last 5 years the Company has not issued any shares as bonus shares or for payment received otherwise than cash or bought back any share.

NOTE NO. 2

There are no unpaid calls from Directors or officers.

NOTE NO. 3

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

During the year ended 31st March 2015, the amount of dividend, per share, recognised as distributions to equity shareholders is Rs. 0.50 (Year ended 31st March 2014 Rs. 0.90)

NOTE NO. 4

There is no advance or deposits due from Directors, officers or Company in which Directors are member.

NOTE NO. 5

There is no trade receivable due from Directors, officers or Company in which Directors are member.

NOTE NO. 6

There is no loans / advances due from Directors, officers or Company in which Directors are member.

NOTE NO. 7

1 Previous year's figures have been regrouped/rearranged/recast wherever necessary so as to make them comparable with current year's figures.

2 Letters of balance confirmation have been sent to various parties, and are subject to confirmation and reconciliation if any.

3 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.

4 In terms of Accounting Standard 28 - Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

5 The Company has received demand for excise duty on sale of patterns & moulding boxes for financial years 2001-02, 2002-03, 2003- 04, 2004-05 & 2005-06 against which the Company has preferred appeals before Commissioner of excise as well as CESTAT and also paid Rs. 1,153,239/- under protest which has been shown as balance with excise department in the accounts.

6 Interest cost for the year is after netting of interest subsidy received / receivable of Rs. 665,741/- (Previous Year Rs. 1,086,426/-)

7 As permitted by CERC & IERC (Regulating authorities), the company has opted for purchase of power through approved Power exchange which has resulted in to gain of Rs. 0.72 Lacs (Previous year Rs. 147.48 Lacs)and power and fuel expenses are reduced to that extent.

8 There are no long-term contracts as on 31.03.2015 including contracts for which there are any material foreseeable loses.

9 During the year the Company has not any unclaimed dividend for the financial year 2006-07. Hence question of transfer to Investor Education and Protection fund does not arise.

10 During the year, Company has provided depreciation on the basis of estimated useful lives as specified in schedule-II of the Companies act 2013. Accordingly, depreciation for the year is higher by Rs. 97.04 lacs as compared to the depreciation hitherto provided on the basis of percentage as prescribed in schedule-XIV of the Companies act, 1956 in earlier years.

11 Pursuant to the enactment of Companies Act 2013, the company has applied the estimated useful lives as specified in Schedule II. Accordingly the unamortised carrying value is being depreciated / amortised over the revised / remaining useful life of perticular assets. The written down value of fixed assets, useful life of which was completed as on 1st April 2014 have been adjusted (net of deferred tax), in the opening balance of Profit and Loss Account amounting to Rs. 11.55 Lacs.

12. Contingent liabilities and Commitments (to the extent not provided for)

2014-15 2013-14 Rupees Rupees i Contingent Liabilities

(a) Claims against the company 76,500 76,500 not acknowledged as debt

(b) Income Tax Demands 1,523,010 0

(b) Guarantees 12,500,000 10,500,000

(c) Other money for which the 1,153,239 1,153,239 company is contingently liable

15,252,749 11,729,739 ii Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not 0 3,981,752 provided for

TOTAL ... 15,252,749 15,711,491

13.RELATED PARTY TRANSACTIONS

Disclosures in respect of transaction with related parties, as defined in Accounting Standard 18 issued by the Institute of Chartered Accountants of India, which have taken place during the year under review are given below:

A List of related parties :

I) Parties where control Exists :

i) Bhagwati Spherocast Pvt Ltd

ii) Bhagwati Filters Pvt Ltd

II) Other parties with whom Company entered in to transaction during the year :

i) Joint ventures : Nil

ii) Associate : Nil

iii) Firm in which Director is a Partner a) Mahendra N Shah & Co.

iv) Firms in which Director's relative is proprietor

a) Harish N Shah & Co.

b) Chirag M Shah & Co.

III) Key management personnel and enterprises having common key management personnel or their relative Key management personnel :

1) Dr. P N Bhagwati - Managing Director

2) Ms. Reena P Bhagwati - Jt. Managing Director

Relatives of key management personnel :

Mrs. M P Bhagwati, wife of Dr. P N Bhagwati

---

Mar 31, 2014

NOTE NO. 1

During last 5 years the Company has not issued any shares as bonus shares or for payment received otherwise than cash or bought back any share.

NOTE NO. 2

There are no unpaid calls from Directors or officers.

NOTE NO. 3

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

During the year ended 31st March 2014, the amount of dividend, per share, recognised as distributions to equity shareholders is Rs. 0.90 (Year ended 31st March 2013 Rs. 0.70)

NOTE NO. 4

There is no advance or deposits due from Directors, officers or Company in which Directors are member.

NOTE NO. 5

There is no trade receivable due from Directors, officers or Company in which Directors are member.

NOTE NO. 6

There is no loans / advances due from Directors, officers or Company in which Directors are member.

NOTE NO. 7

All quantitative details are as certified by the Management and verified by internal Auditors, quantity of sales are based on standard weight basis and further test checked by Internal Auditors.

NOTE NO. 8

Company has received approval of Central Government vide letter No. SRN B61403025 /4 / 2012 - CL.VII dated 18-02-2013 for payment of Managerial Remuneration.

General description of the defined benefit plan:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on termination of service, or retirement, whichever is earlier. The benefit vests after five years of continuous service.

9. Previous year''s figures have been regrouped/rearranged/recast wherever necessary so as to make them comparable with current year''s figures.

10. Letters of balance confirmation have been sent to various parties, and are subject to confirmation and reconciliation if any.

11. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.

12. In terms of Accounting Standard 28 - Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

13. The Company has received demand for excise duty on sale of patterns & moulding boxes for financial years 2001-02, 2002-03, 2003- 04, 2004-05 & 2005-06 against which the Company has preferred appeals before Commissioner of excise as well as CESTAT and also paid Rs. 1,153,239/- under protest which has been shown as balance with excise department in the accounts.

14. Interest cost for the year is after netting of interest subsidy received / receivable of Rs. 1,086,426/- (Previous Year Rs. 1,354,131/-)

15. As permitted by CERC & IERC (Regulating authorities), the company has opted for purchase of power through approved Power exchange which has resulted in to gain of Rs. 147.48 Lacs (Previous year Rs. 26.61 Lacs)and power and fuel expenses are reduced to that extent.

16. Contingent liabilities and Commitments (to the extent not provided for)

2013-14 2012-13 Rupees Rupees

i Contingent Liabilities

(a) Claims against the company not acknowledged as debt 76,500 76,500

(b) Guarantees 10,500,000 10,500,000

(c) Other money for which the company is contingently liable 1,153,239 1,153,239

11,729,739 11,729,739

ii Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 3,981,752 3,535,150

TOTAL ... 15,711,491 15,264,889

Note : No amount has been provided as doubtful debt or advance/written off or written back in the year in respect of debts due from/ to above related parties.

---

Mar 31, 2013

NOTE NO. 1.1

During last 5 years the Company has not issued any shares as bonus shares or for payment received otherwise than cash or bought back any share.

NOTE NO. 1.2

There are no unpaid calls from Directors or officers.

NOTE NO. 1.3

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

During the year ended 31st March 2013, the amount of dividend, per share, recognised as distributions to equity shareholders is Rs. 0.70 (Year ended 31st March 2012 Rs. 0.50)

NOTE NO. 2.1

There is no advance or deposits due from Directors, officers or Company in which Directors are member.

NOTE NO. 3.1 There is no trade receivable due from Directors, officers or Company in which Directors are member.

NOTE NO. 4.1

There is no loans / advances due from Directors, officers or Company in which Directors are member.

NOTE NO. 5.1

All quantitative detaials are as certified by the Management and verified by Internal Auditors, quantity of sales are based on standard weight basis and further test checked by Internal Auditors.

NOTE NO. 5.2

Company has received approval of Central Government vide letter No. SRN B61403025 /4 / 2012 - CL.VII dated 18-02-2013 for payment of Managerial Remuneration.

NOTE NO. 5.3

Salaries & Incentives of Rs. 64,234,698 includes Rs. 6,220,259 being settlement of workers dues of earlier years.

1 Previous year''s figures have been regrouped/rearranged/recast wherever necessary so as to make them comparable with current year''s figures.

2 Letters of balance confirmation have been sent to various parties, and are subject to confirmation and reconciliation if any.

3 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.

4 In terms of Accounting Standard 28 - Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

5 The Company has received demand for excise duty on sale of patterns & moulding boxes for financial years 2001-02, 2002-03, 2003- 04, 2004-05 & 2005-06 against which the Company has preferred appeals before Commissioner of excise as well as CESTAT and also paid Rs. 1,153,239/- under protest which has been shown as balance with excise department in the accounts.

6 Interest cost for the year is after netting of interest subsidy received / receivable of Rs. 1,354,131/- (Previous Year Rs. 5,354,690/-)

8 Contingent liabilities and Commitments (to the extent not provided for)

2012-13 2011-12 Rupees Rupees

i Contingent Liabilities

(a) Claims against the company not acknowledged as debt 76,500 76,500

(b) Guarantees 10,500,000 10,500,000

(c) Other money for which the company is contingently liable 1,153,239 1,153,239 11,729,739 11,729,739

ii Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 3,535,150 47,610

TOTAL ... 15,264,889 11,777,349

9 RELATED PARTY TRANSECTIONS

Disclosures in respect of transaction with related parties, as defined in Accounting Standard 18 issued by the Institute of Chartered Accountants of India, which have taken place during the year under review are given below:

A List of related parties :

I) Parties where control Exists :

i) Bhagwati Spherocast Pvt Ltd

ii) Bhagwati Filters Pvt Ltd

iii) Bhagwati Human Capital Management Pvt Ltd

II) Other parties with whom Company entered in to transaction during the year

i) Joint ventures : Nil

ii) Associate : Nil

iii) Firm in which Director is a Partner

a) Mahendra N Shah & Co. iv) Firms in which Director''s relative is proprietor

a) Harish N Shah & Co.

b) Chirag M Shah & Co.

III) Key management personnel and enterprises having common key management personnel or their relative Key management personnel :

1) Dr. P N Bhagwati - Managing Director

2) Ms. Reena P Bhagwati - Jt. Managing Director

Relatives of key management personnel :

Mrs. M P Bhagwati, wife of Dr. P N Bhagwati

10 Amount due to Micro and small Enterprises are disclosed on the basis of information available with the Company regarding status of the suppliers is as follows and No interest has been provided by the Company on the same.

---

Mar 31, 2012

NOTE NO. 1.1

During last 5 years the Company has not issued any shares as bonus shares or for payment received otherwise than cash or bought back any share.

NOTE NO. 1.2

There are no unpaid calls from Directors or officers.

NOTE NO. 2.1

There is no advance or deposits due from Directors, officers or Company in which Directors are member.

NOTE NO. 3.1

There is no trade receivable due from Directors, officers or Company in which Directors are member.

NOTE NO. 4.1

There is no loans / advances due from Directors, officers or Company in which Directors are member.

NOTE NO. 4.2

All quantitative detaials are as certified by the Management and verified by Internal Auditors, quantity of sales are based on standard weight basis and further test checked by Internal Auditors.

General description of the defined benefit plan:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on termination of service, or retirement, whichever is earlier. The benefit vests after five years of continuous service.

[B1 NOTES FORMING PART OF THE ACCOUNTS

1 Previous year's figures have been regrouped/rearranged/recast wherever necessary so as to make them comparable with current year's figures.

2 Letters of balance confirmation have been sent to various parties, and are subject to confirmation and reconciliation if any.

3 In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.

4 In terms of Accounting Standard 28 - Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

5 The Company has preferred appeal before sales tax authorities for claim of set-off on purchase of metal scrap in past several years, and it will account for the same in the year of actual receipt or when it is ascertained actionable claim.

6 The Company has received demand for excise duty on sale of patterns & moulding boxes for financial years 2001-02, 2002-03, 2003- 04, 2004-05 & 2005-06 against which the Company has preferred appeals before Commissioner of excise as well as CESTAT and also paid Rs. 1,153,239/- under protest which has been shown as balance with excise department in the accounts.

7 Interest cost for the year is after netting of interest subsidy received / receivable of Rs. 5,354,690/-

9 Contingent liabilities and Commitments (to the extent not provided for)

2011-12 2010-11 Rupees Rupees

i Contingent Liabilities

(a) Claims against the company not acknowledged as debt 76,500 76,500

(b) Guarantees 10,500,000 0

(c) Other money for which the company is contingently liable 1,153,239 1,153,239

11,729,73 91,229,739

ii Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for 47,610 1,164,000

TOTAL 11,777,349 2,393,739

10 RELATED PARTY TRANSECTIONS

Disclosures in respect of transaction with related parties, as defined in Accounting Standard 18 issued by the Institute of Chartered Accountants of India, which have taken place during the year under review are given below:

A List of related parties :

I) Parties where control Exists :

i) Bhagwati Spherocast Pvt Ltd

ii) Bhagwati Filters Pvt Ltd

iii) Bhagwati Pyrotech Pvt Ltd

iv) Bhagwati Human Capital Management Pvt Ltd

Note : No amount has been provided as doubtful debt or advance/written off or written back in the year in respect of debts due from/ to above related parties.

11. Amount due to Micro and small Enterprises are disclosed on the basis of information available with the Company regarding status of the suppliers is as follows and No interest has been provided by the Company on the same.

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Mar 31, 2010

01. Related party transaction:

Disclosures in respect of transaction with related parties, as defined in Accounting Standard 18 issued by the Institute of Chartered Accountants of India, which have taken place during the year under review are given below:

A List of related parties:

I) Parties where control Exists :

i) Bhagwati Spherocast Pvt Ltd

ii) Bhagwati Filters Pvt Ltd

iii) Bhagwati Pyrotech Pvt Ltd

iv) Bhagwati Human Capital Management Pvt Ltd

II) Other parties with whom Company entered in to transaction during the year

i) Joint ventures : Nil

ii) Associate : Nil

iii) Firm in which Director is a Partner

a) Mahendra N Shah & Co. iv) Firms in which Directors relative is proprietor

a) Harish N Shah & Co.

b) Chirag M Shah & Co.

III) Key management personnel and enterprises having common key management personnel or their relative Key management personnel

1) Dr.PNBhagwati - Managing Director

2) Ms.RPBhagwati - Jt. Managing Director

Relatives of key management personnel : Mrs. M P Bhagwati, wife of Dr. P N Bhagwati

B During the year following transaction were carried out with related parties in the ordinary course of business and at arms length.

Note : No amount has been provided as doubtful debt or advance/written off or written back in the year in respect of debts due from/ to above related parties.

02. Previous years figures have been regrouped/rearranged/recast wherever necessary so as to make them comparable with current years figures.

03. Contingent liabilities not provided for: 2009-10 2008-09

(Rupees) (Rupees)

- Excise Dutyinrespectofwhich appeal have been filed 1,153,239 1,153,239

-Claims against the Company not acknowledgedasDebts 76,500 76,500

04. Letters of balance confirmation have been sent to various parties, and are subject to confirmation and reconciliation if any.

05. In the opinion of the Board, the current assets, loans and advances are approximately of the value stated in the balance sheet, if realised in the ordinary course of the business. Provision for depreciation and all known liabilities have been made in accounts.

06. In terms of Accounting Standard 28 – Impairment of Assets issued by ICAI, the management has reviewed its fixed assets and arrived at the conclusion that impairment loss which is difference between the carrying amount and recoverable value of assets, was not material and hence no provision is required to be made.

07. Estimated amount of contracts remaining to be executed on capital account not provided for Rs. 8.50 lacs excluding taxes & levies [previous year Rs. 15.63 Lacs].

08. The Company has preferred appeal before sales tax authorities for claim of set-off on purchase of metal scrap in past several years, and it will account for the same in the year of actual receipt or when it is ascertained actionable claim.

09. The Company has received demand for excise duty on sale of patterns & moulding boxes for financial years 2001-02, 2002-03, 2003- 04, 2004-05 & 2005-06 against which the Company has preferred appeals before Commissioner of excise as well as CESTAT and also paid Rs. 1,153,239 under protest which has been shown as balance with excise department in the accounts.

10. Employee defined benefits: Defined benefit plans-as per actuarial valuation on 31st March, 2010 General Description of the Defined Benefit plan:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to fifteen days salary last drawn for each completed year of service. The same is payable on termination of service, or retirement, whichever is earlier. The benefit vests after five years of continuous service. 12. Amount due to Micro and small Enterprises are disclosed on the basis of information available with the Company regarding status of the suppliers is as follows and No interest has been provided by the Company on the same.

11. Transit insurance are shown net after recovery of Rs. 91,135/- (Previous year Rs. 157,659).

12. Additional information pursuant to the provisions of paragraphs 3, 4c & 4d of part-II of schedule VI to the Companies Act, 1956.