Notes to Accounts of Centron Industrial Alliance Ltd.

Mar 31, 2015

1) No confirmations have been received in respect of outstanding balances of Trade Receivable and Trade payable as at 31st March, 2015.

2) The company continues to account for Leave encashment and other employee benefits (except gratuity liability) on payment basis as per past practice.

3) The Company is operating in only one segment, hence requirement of Accounting Standard – 17 relating to segmental reporting is not applicable.

4) As per Accounting Standard –22 "Accounting for taxation income" Where an enterprise has carry forward losses under tax laws differed tax asset should be recognized only to the extent that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available, against which differed tax assets can be realized. The existence of carry forward losses under tax laws, is a strong evidence that future taxable income would not be sufficiently available. Therefore, when an enterprise has history of losses, recognition of differed tax asset is preferable as there is no virtual certainty for the sufficient future income. Keeping in view the above, the company has not recognized the differed tax asset as there was no virtual certainty of sufficient income for writing it off in upcoming years.

5) Contingent Liability not provided for in respect of:

a) Liabilities that may arise on account of pending sales tax assessments.

6) The Canton Employees Credit Society had filed a complaint against the Company before the Taluka Deputy Registrar, Co-operative Societies, Aurangabad for non-payment /delayed payment of principal and interest on dues of members to the society. The company has furnished Bank guarantee for the said amount of security deposit to the Honorable High Court.

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Mar 31, 2014

NOTE NO. 1

1) No confirmations have been received in respect of outstanding balances of Trade Receivable and Trade payable as at 31st March, 2014.

2) The company continues to account for Leave encashment and other employee benefits (except gratuity liability) on payment basis as per past practice.

3) The Company is operating in only one segment, hence requirement of Accounting Standard – 17 relating to segmental reporting is not applicable.

4) As per Accounting Standard –22 "Accounting for taxation income" Where an enterprise has carry forward losses under tax laws deffered tax asset should be recognized only to the extent that there is virtual certainity supported by convincing evidence that sufficient future taxable income will be available, against which deffered tax assets can be realised.The existence of carry forward losses under tax laws, is a strong evidence that future taxable income would not be sufficiently available. Therefore, when an enterprise has history of losses, recognition of deffered tax asset is preferable as there is no virtual certainity for the sufficient future income. Keeping in view the above, the company has not recognized the deffered tax asset as there was no virtual certainity of sufficent income for writing it off in upcoming years.

5) Contingent Liability not provided for in respect of:

a) Liabilities that may arise on account of pending sales tax assessments.

b) Guarantee given by bank in respect of Order for Security Deposit of Rs. 60 lacs passed by Honourable High Court of Judicature at Bombay, Aurangabad bench in writ petition no. 2710/08.

6) The Centron Employees Credit Society had filed a complaint against the Company before the Taluka Deputy Registrar, Co-operative Societies, Aurangabad for non-payment /delayed payment of principal and interest on dues of members to the society.The company has furnished Bank guarantee for the said amount of security deposit to the Honourable High Court.

7) Amounts due to small scale and /or ancillary Industrial Suppliers as on 31/03/2014 includes unpaid amount of Rs. 1.24 lacs on account of principal and interest is unascertained on the said amount.

8) Out of the installments paid in satisfaction of Liabilities in respect of Scheme of Arrangements in terms of Mumbai High Court Order dated 27/04/1989, installments of Rs. 18.06 Lacs (Previous Year 34.63 lacs) have remained unclaimed towards the principal amount and have been included as sundry creditors.

9) Related Party Disclosure: (as identified by the Management)

Related Parties Relationships:

Mr. Anoop Garg Managing Director

Mr. A. G. Joshi Director

Mr. Ulhas Gaoli Director

Mr. Anand Pratap Singh Director

Mr. Thakor Bhai Patel Director

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Mar 31, 2013

1) Contingent Liabilities not provided for in respect of :

a) Cost, Expenses, Penalties etc. that may be awarded or levied in respect of Case NO.RCC No.535/2008 before Judicial Magistrate, Aurangabad against the Company / Directors -:

b) Liabilities that may arise on account of pending sales tax assessments.

c) Liability that may arise on account of notice received from Securities and Exchange Board of India on 21st July 2004 demanding Compounding charges of Rs. 1,75,000 for non-compliance of SEBI (Substantial Acquisition of Shares and Takeover) Regulation, 1997. The company has filed an appeal for deleting the demand with SEBI

d) Guarantee given by bank in respect of Order for Security Deposit of Rs. 60 lacs Passed by Honourable High Court of Judicature at Bombay, Aurangabad Bench in writ petition no 2710/08

e) CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS DEBTS. :

i) Liability that may accrue on account of penal interest on delayed payments of Provident Fund arrears Rs.42.57 lacs ( Previous Year Rs.42.57 lacs) .

2) No confirmations have been received in respect of outstanding balances of Trade Receivable and Trade payable as at 31st March, 2013.

3) The Centron Employees Credit Society had filed a complaint against the Company before the Taluka Deputy Registrar, Co-operative Societies, Aurangabad for non-payment / delayed payment of principal and interest on dues of members to the society. The Taluka Deputy Registrar vide his order dated 02-03-2007, directed the Company to pay Rs.94.12 lacs to the society towards unpaid principal and interest. The appeal against the said order was rejected and the award of Rs. 94.12 lacs was confirmed by the Divisional Joint Registrar, Co-operative Societies, Aurangabad vide his order dated 25-01-2008. The Company has filed a Writ Petition no 2710/08 against the said orders in the Mumbai High Court (Aurangabad Bench). The Honourable High Court had passed an ad-interim order on 07/04/2008 staying the said judgements subject to Company making payment of interest @ 18 % upto date of the order. The Company has deposited Rs. 24.79 lacs with the Honourable High Court in respect of the said payment and this amount has been provided as interest on delayed payments in the accounts for the year ended 31-03-2008. However, no provision has been made in respect of balance amount of Rs.69.33 lacs or such other amount as may become payable as per the final order of the Courts in the matter. The Honourable High Court has also directed the Company by it''s order dated 17th June 2008 to provide security deposit of Rs.60.00 Lacs and stayed all proceedings against the Company pending final disposal of the suit. The Company has furnished Bank Guarantee for the said amount of security deposit to the Honourable High Court.

4) The company continues to account for Leave encashment and other employee benefits (except gratuity liability) on payment basis as per past practice.

5) The Honourable Court of Civil Judge Senior Division Jalna has decreed that an amount of Rs. 0.47 lacs is payable by the Company to M/s Dipali Corrugated Boxes. The Company has provided Rs. 0.41 lacs in the accounts. No provisions has been made in respect of balance amount of Rs. 0.06 lacs due as per the as per the order of the said Court.

6) Amounts due to small scale and/or ancillary Industrial Suppliers as on 31/03/2013 includes unpaid amount of Rs. 1.24 lacs on account of Principal together with interest of Rs.5.23 lacs aggregating to Rs.6.47 Lacs (Previous Year : Rs.6.15 Lacs) due to M/s. Kailash Corrugated Pvt. Ltd. The same is disclosed on the basis of information available with the Company regarding the status of suppliers as defined under the "Interest on Delayed payment to Small Scale and Ancillary Industrial Under-taking Ordinance 1993". However no provision has been made for such interest payments aggregating to Rs.5.23 Lacs (Previous Year Rs.4.91 Lacs).

7) Out of the installments paid in satisfaction of Liabilities in respect of Scheme of Arrangement in terms of Mumbai High Court Order dated 27/4/1989, installments of Rs. 34.63 Lacs (Previous Year: Rs.34.63 Lacs) have remained unclaimed towards Principal amount and have been included as Sundry Creditors and Rs.39.74 Lacs remains unpaid towards interest and have been included under Unsecured borrowings for expenses. These amounts have not been transferred to Investors Education and Protection Fund as the company is of the opinion that such a transfer would amount to contravention of the said scheme of arrangement as sanctioned by the High Court.

8) The Company is operating in only one segment, hence requirement of Accounting Standard - 17 relating to segmental reporting is not applicable.

9) In terms of Accounting Standard - 22 (AS-22) issued by the Institute of Chartered Accountants of India, the management does not envisage any deferred tax liability / deferred tax asset .

10. Related Party Disclosure: (as identified by the Management) Related Parties Relationships:

Mr. G.S. Mathur Managing Director

Mr. Anoop Garg Director

Mr. A. G. Joshi Director

Mr. Ulhas Gaoli Director

Mr. Vikram Amin Director

Details of transactions entered with related portion

11. Previous Year''s figures have been rearranged and regrouped wherever necessary.

12. Foreign Currency Expenses NIL NIL

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Mar 31, 2012

CENTRON INDUSTRIAL ALLIANCE LIMITED

Notes on Financial Statements for the year ended 31st March, 2012

NOTE NO.1

1) Contingent Liabilities not provided for in respect of :

a) Cost, Expenses, Penalties etc. that may be awarded or levied in respect of Case NO.RCC No.535/2008 before Judicial Magistrate, Aurangabad against the Company / Directors -:

b) Liabilities that may arise on account of pending sales tax assessments.

c) Liability that may arise on account of notice received from Securities and Exchange Board of India on 21st July 2004 demanding Compounding charges of Rs. 1,75,000 for non-compliance of SEBI (Substantial Acquisition of Shares and Takeover) Regulation, 1997. The company has filed an appeal for deleting the demand with SEBI

d) Guarantee given by bank in respect of Order for Security Deposit of Rs. 60 lacs Passed by Honourable High Court of Judicature at Bombay, Aurangabad Bench in writ petition no 2710/08

e) CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS DEBTS. :

i) Liability that may accrue on account of penal interest on delayed payments of Provident Fund arrears Rs.42.57 lacs ( Previous Year Rs.42.57 lacs).

2) The Company has ceased it's manufacturing operations with effect from 1st August 2007. The Company has also given Notice of Closure under Section 25 FF - A of the Industrial Disputes Act , 1947 to The Secretary, Government of Maharashtra Industrial and Labour Department , intimating it's intention to close the Undertaking with effect from 29/11/2007. However the accounts of the Company have been prepared on going concern basis as the management is of the view that the Company would be able to realize it's assets and discharge it's liabilities in the regular course of business.

3) No confirmations have been received in respect of outstanding balances of Trade Receivable and Trade payable as at 31st March, 2012.

4) The Centron Employees Credit Society had filed a complaint against the Company before the Taluka Deputy Registrar, Co-operative Societies, Aurangabad for non-payment / delayed payment of principal and interest on dues of members to the society. The Taluka Deputy Registrar vide his order dated 02-03-2007, directed the Company to pay Rs.94.12 lacs to the society towards unpaid principal and interest. The appeal against the said order was rejected and the award of Rs. 94.12 lacs was confirmed by the Divisional Joint Registrar, Co-operative Societies, Aurangabad vide his order dated 25-01-2008. The Company has filed a Writ Petition no 2710/08 against the said orders in the Mumbai High Court (Aurangabad Bench). The Honourable High Court had passed an ad-interim order on 07/04/2008 staying the said judgements subject to Company making payment of interest @ 18 % upto date of the order. The Company has deposited Rs. 24.79 lacs with the Honourable High Court in respect of the said payment and this amount has been provided as interest on delayed payments in the accounts for the year ended 31-03-2008. However, no provision has been made in respect of balance amount of Rs.69.33 lacs or such other amount as may become payable as per the final order of the Courts in the matter. The Honourable High Court has also directed the Company by it's order dated 17th June 2008 to provide security deposit of Rs.60.00 Lacs and stayed all proceedings against the Company pending final disposal of the suit. The Company has furnished Bank Guarantee for the said amount of security deposit to the Honourable High Court.

5) The company continues to account for Leave encashment and other employee benefits (except gratuity liability) on payment basis as per past practice.

6) The Honourable Court of Civil Judge Senior Division Jalna has decreed that an amount of Rs. 0.47 lacs is payable by the Company to M/s Dipali Corrugated Boxes. The Company has provided Rs. 0.41 lacs in the accounts. No provisions has been made in respect of balance amount of Rs. 0.06 lacs due as per the said Court.

7) Amounts due to small scale and/or ancillary Industrial Suppliers as on 31/03/2012 includes unpaid amount of Rs. 1.24 lacs on account of Principal together with interest of Rs. 4.91 lacs aggregating to Rs.6.15 Lacs (Previous Year : Rs.5.83 Lacs) due to M/s. Kailash Corrugated Pvt. Ltd. The same is disclosed on the basis of information available with the Company regarding the status of suppliers as defined under the "Interest on Delayed payment to Small Scale and Ancillary Industrial Under-taking Ordinance 1993". However no provision has been made for such interest payments aggregating to Rs.4.91 Lacs (Previous Year Rs.4.59 Lacs)

8) Out of the installments paid in satisfaction of Liabilities in respect of Scheme of Arrangement in terms of Mumbai High Court Order dated 27/4/1989, installments of Rs. 34.63 Lacs (Previous Year: Rs.34.63 Lacs) have remained unclaimed towards Principal amount and have been included as Sundry Creditors and Rs.39.74 Lacs remains unpaid towards interest and have been included under Current Liabilities for expenses. These amounts have not been transferred to Investors Education and Protection Fund as the company is of the opinion that such a transfer would amount to contravention of the said scheme of arrangement as sanctioned by the High Court.

9) Prior to the cessation of production from 1st August 2007, the Company was operating in only one segment of manufacturing of Safety Razor Blades on job work basis, hence requirement of Accounting Standard - 17 relating to segmental reporting is not applicable.

10) In terms of Accounting Standard - 22 (AS-22) issued by the Institute of Chartered Accountants of India, the management does not envisage any deferred tax liability / deferred tax asset .

11) Related Party Disclosure: (as identified by the Management)

1. Relationships:

(A) Key management personnel :

Mr. G.S. Mathur - Managing Director

NOTES : (a) Related party relationship on the basis of the requirements of Accounting Standard 18 (AS-18) as in 1(A) is as pointed out by the management and relied upon by the auditors.

12) Previous Year's figures have been rearranged and regrouped wherever necessary.

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Mar 31, 2010

1) Contingent Liabilities not provided for in respect of :

a. Cost, Expenses, Penalties etc. that may be awarded or levied in respect of pending legal suits filed against the Company -:

i. Case No. (WC) 62 / 05 filed with Commissioner under Workmen Compensation Act by Mrs. S.S. Pardeshi.

ii. Complaint No. 80687 / 97 made at Chief Judical Magistrate Aurangabad in connection with delay in depositing Provident fund Contribution deducted from wages / salaries.

iii. Case No ULP 38 / 08 filed at Industrial Court challenging the closure.

b. Liabilities that may arise on account of pending sales tax assessments.

c. Liability that may arise on account of notice received from Securities and Exchange Board of India on 21st July 2004 demanding Compounding charges of Rs. 1,75,000 for non-compliance of SEBI (Substantial Acquisition of Shares and Takeover) Regulation, 1997. The company has filed an appeal for deleting the demand with SEBI

d. Guarantee given by bank in respect of Order for Security Deposit of Rs. 60 lacs Passed by Honourable High Court of Judicature at Bombay, Aurangabad Bench in writ petition no 2710/08

e. CLAIMS AGAINST THE COMPANY NOT ACKNOWLEDGED AS DEBTS:

i. Liability that may accrue on account of penal interest on delayed payments of Provident Fund arrears Rs.42.57 lacs ( Previous Year Rs.42.57 lacs) .

2) The Company has ceased its manufacturing operations with effect from 1st August 2007. The Company has also given Notice of Closure under Section 25 FF - A of the Industrial Disputes Act , 1947 to The Secretary, Government of Maharashtra Industrial and Labour Department, intimating its intention to close the Undertaking with effect from 29/11/2007. However the accounts of the Company have been prepared on going concern basis as the management is of the view that the Company would be able to realize its assets and discharge its liabilities in the regular course of business.

3) The Company had entered into a MOU on 23rd January 2007 agreeing to transfer its rights in plot no.lof land leased from MIDC to M/s. Super Millenium Investments & Realities Private Limited ( Formerly Super Millenium Investments & Trading Private Limited) against which the company had received advance from its group company M/s. Premchand Techno Park Private Limited. Subsequently, based on request letter received from M/s. Super Millenium Investments & Realities Private Limited, supported by copy of their board resolution, the company agreed to transfer its rights in respect of the lease of land to M/s. Premchand Techno Park Pvt. Ltd. Accordingly, the company entered into a tri-partite supplemental agreement on 7th April 2008 between MIDC and the company and M/s. Premchand Techno Park Private Limited consenting to transfer and assign its interest in the said leased plot of land to M/s. Premchand Techno Park Private Limited.

The Company had also entered into a MOU on 23rd January 2007 agreeing to transfer its rights in Plot No.2 & 16 of land leased from MIDC together with buildings and structures standing thereon to M/s. Premchand Realtors Private Limited against which the company had received advance partly from the said company and balance from its group company M./s. Premchand Techno Park Private Limited. Subsequently on 25th February 2009 the company entered into a tri- partite supplemental agreement between MIDC and the company and M/s Premchand Realtors Private Ltd consenting to transfer and assign its interest in the said leased plot of land to M/s. Premchand Realtors Private .Limited

In absence of final documentation and completion of sales process, the amounts received from M./s. Premchand Techno Park Private Limited continued to be shown as advance against proposed sale of the leased plot of land & Building up to 31st March 2009. Consequent to the completion of these processes the company has now accounted for the sale of the leased Land & Building in the current year and adjusted the advances accordingly. The gain of Rs. 309.14 lacs arising on such sale of lease right is shown in Schedule G under Other Income.

4) The company had paid Rs. 172.40 lacs as Voluntary Separation Compensation to its workers during financial year 2007-08 which was treated as Deferred Revenue Expenditure to be written off in equal installments of Rs. 34.48 lacs over five years. However, the balance amount of Rs.103.44 lacs has been written off by the company during the current financial year 2009-10 as management is of the view that production activities were unlikely to recommence due to the closure of the factory,.

5) ho confirmations have been received in respect of outstanding balances of sundry creditors as at 31st March, 2010.

6) The Centron Employees Credit Society had filed a complaint against the Company before the Taluka Deputy Registrar, Co-operative Societies, Aurangabad for non-payment / delayed payment of principal and interest on dues of members to the society. The Taluka Deputy Registrar vide his order dated 02-03-2007, directed the Company to pay Rs.94.12 lacs to the society towards unpaid principal and interest. The appeal against the said order was rejected and the award of Rs. 94.12 lacs was confirmed by the Divisional Joint Registrar, Co-operative Societies, Aurangabad vide his order dated 25-01-2008. The Company has filed a Writ Petition no 2710/08 against the said orders in the Mumbai High Court (Aurangabad Bench). The Honourable High Court had passed an ad-interim order on 07/04/2008 staying the said judgements subject to Company making payment of interest @ 18 % upto date of the order. The Company has deposited Rs. 24.79 lacs with the Honourable High Court in respect of the said payment and this amount has been provided as interest on delayed payments in the accounts for the year ended 31-03-2008. However, no provision has been made in respect of balance amount of Rs.69.33 lacs or such other amount as may become payable as per the final order of the Courts in the matter. The Honourable High Court has also directed the Company by its order dated 17th June 2008 to provide security deposit of Rs.60.00 Lacs and stayed all proceedings against the Company pending final disposal of the suit. The Company has furnished Bank Guarantee for the said amount of security deposit to the Honourable High Court.

7) The Company holds a policy with the Life Insurance Corporation of India under its Group Gratuity Scheme. As on 31-03-2010 there were only 2 employees / members remaining under the said scheme. The fund value of the policy as on 31-03-2010 is Rs.5.16 lacs which is in excess of the accrued gratuity liability of Rs.2.48 lacs as on that date and hence no provision is required to be made for accrued gratuity payable to employees for the year.

8) The company continues to account for Leave encashment and other employee benefits (except gratuity liability) on payment basis as per past practice.

9) The Honourable Court of Civil Judge Senior Division Jalna has decreed that an amount of Rs. 0.47 lacs is payable by the Company to M/s Dipali Corrugated Boxes. The Company has provided Rs. 0.41 lacs in the accounts. No provisions has been made in respect of balance amount of Rs. 0.06 lacs due as per the said Court.

10) Amounts due to small scale and/or ancilliary Industrial Suppliers as on 31/03/2010 includes unpaid amount of Rs. 1.24 lacs on account of Principal together with interest of Rs. 4.27 lacs aggregating to Rs.5.51 Lacs (Previous Year : Rs.5.19 Lacs) due to M/ s. Kailash Corrugated Pvt. Ltd. The same is disclosed on the basis of information available with the Company regarding the status of suppliers as defined under the "Interest on Delayed payment to Small Scale and Ancilliary Industrial Under-taking Ordinance 1993". However no provision has been made for such interest payments aggregating to Rs.4.27 Lacs (Previous Year Rs.3.95 Lacs).

11) Out of the installments paid in satisfaction of Liabilities in respect of Scheme of Arrangement in terms of Mumbai High Court Order dated 27/4/1989, installments of Rs. 34.63 Lacs (Previous Year: Rs.34.63 Lacs) have remained unclaimed towards Principal amount and have been included as Sundry Creditors and Rs.39.74 Lacs remains unpaid towards interest and have been included under Current Liabilities for expenses. These amounts have not been transferred to Investors Education and Protection Fund as the company is of the opinion that such a transfer would amount to contravention of the said scheme of arrangement as sanctioned by the High Court.

12) Prior to the cessation of production from 1st August 2007, the Company was operating in only one segment of manufacturing of Safety Razor Blades on job work basis, hence requirement of Accounting Standard - 17 relating to segmental reporting is not applicable.

13) In terms of Accounting Standard - 22 (AS-22) issued by the Institute of Chartered Accountants of India, the management does not envisage any deferred tax liability / deferred tax asset .

14. Related Party Disclosure: (as identified by the Management)

1. Relationships:

(A) Key management personnel :

Mr. G.S. Mathur - Managing Director

NOTES : (1) Related party relationship on the basis of the requirements of Accounting Standard 18 (AS-18) as in 1(A) is as pointed out by the management and relied upon by the auditors.

15. Additional information pursuant to paragraph 3, 4c and 4d of Part II of the Companies Act, 1956 is given in the schedule "N".

16. Previous Years figures have been rearranged and regrouped wherever necessary.