Notes to Accounts of Envair Electrodyne Ltd.

Mar 31, 2024

2.17 Provisions, contingent liabilities and contingent assets

(i) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount ofthe obligation. The expense relating to a provision is presented in the statement of profit and loss.

(ii) Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is notprobable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases wherethere is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

(iii) Contingent Assets: Contingent Assets are disclosed, where an inflow of economic benefits is probable.

2.18 Investments

Equity investments are measured at fair value, with value changes recognised in Other Comprehensive Income, except for those mutual fund for which the Company has elected to present the fair value changes in the Statement of Profit and Loss.

2.19 Trade receivables

Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method, lessprovision for impairment

2.20 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade andother payables are recognised, initially at fair value, and subsequently measured at amortised cost using effective interest rate method.

2.21 Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

2.22 Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees thousand (upto two decimals), unless otherwise stated as per the requirement of Schedule III (Division II).

37 Fair Value Measurements (Continued)

B. Measurement of fair values

Types of inputs for determining fair value are as under:

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If ah significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : These instruments are valued based on significant unobservable inputs whereby future cash flows are discounted using appropriate discount rate.

Transfers between Levels 1 and 2

There have been no transfers between Level 1 and Level 2 during the reporting periods.

C. Valuation processes

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

38 Financial Risk Management

The Company has in place a well-defined risk management policy. The management regularly reviews the risk and take appropriate steps to mitigate the risk. The Company has a robust Business Risk Management (BRM) frame work to identify, evaluate business risks and opportunities. This framework seeks to create transparency, minimize adverse impact on the business objectives and enhance the Company''s competitive advantage. The Company has exposure to the following risks arising from financial instruments:

I. Credit risk

Credit risk is the risk that a customer or counterparty to a financial instrument will fail to perform or fail to pay amounts due causing financial loss to the Company. The potential activities where credit risks may arise include from cash and cash equivalents, security deposits or other deposits, loans and advances to employees and customer receivables. The maximum credit exposure associated with financial assets is equal to the carrying amount. Details of the credit risk specific to the Company along with relevant mitigation procedures adopted have been enumerated below:

Trade and other receivables

The Company''s exposure to credit Risk is the exposure that Company has on account of services provided to various related parties. All The Company provides for allowance for impairment that represents its estimate of expected losses in respect of trade and other receivables. The Company has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a provision matrix.

II. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are proposed to be settled by delivering cash or other financial asset. The Company’s financial planning has ensured, as far as possible, that there is sufficient liquidity to meet the liabilities whenever due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company⁵s reputation. The Company has practiced financial diligence and syndicated adequate liquidity in all business scenarios.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

39 Capital management

For the purpose of the Company⁵s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company capital management is to maximise the shareholder value.

Note tor variance:

(I) Current Ratio has increased due to decrease in current liabilities during the year.

(II) Return on Equity Ratio has decreased due to decreasein profit during the year.

(iii) Inventory Turnover Ratio has decreased due to decrease in revenue during the yaer.

(iv) Trade Receivable Turnover Ratio has decreased due to decraese in revenue during the year.

(v) Trade Payables Turnover Ratio has decreased due to decrease in purchases during the year.

(vi) Net Capital Turnover Ratio has decreased due to decrease in revenue during the year.

(vii) Net Profit Ratio has decreased due to decraese in revenue during the year.

(viii) Retun on Capital employed has decreased due to decraese in profit during the year.

41 There is no income surrendered or disclosedas income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not

42 The company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

43 Benami Property

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 rules made thereunder.

44 Relationship with struck off Companies

The Company has no transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

45 Approval of financial statements

The financial statements were approved for issue by the board of directors on 27th May,2024.

46 Going Concern

The company is incurring operating losses in the current year and in the previous year. The company has already sold the land and building in the previous year. The management is exploring new opportunities to setup a manufacturing or trading business. In the meantime, the Company has enough cash flows to sustain its operations and part of the surplus funds have been invested into a Singapore entity. Hence, Company’s financials have been prepared on going concern basis.

47 Fraud by Employee of the Company

During the previous year ended 31st March 2023 a fraud was unearthed, which was committed by the employee of the company, against the company, by using digital and other means to transfer/ withdraw various sums from the bank account of the company. The amount involved was Rs. 191.16 lakhs (which included Rs 22.48 lakhs for Financial Year 2020-21, Rs 67.77 Lakhs for Financial Year 2021-22, Rs 79.22 Lakhs for Financial Year 2022-23 and Rs 21.68 lakhs for Financial Year 2023-24) which was expensed out during the previous financial year ended 31st March 2023 itself. A FIR was lodged and investigation is in process. Previous year figures relating to Financial Year 2020-21 and Financial Year 2021-22 were not restated and provision for the fraud amount committed in Financial Year 2023-24 was also provided in the previous financial year ended 31st March 2023 itself, as a matter of prudence. The previous year profit is understated by Rs 111.93 Lakhs due to non-restatement and due to provision for fraud amount relating to Financial Year 2023-24. The current year profit is over restated by Rs 21.68 Lakhs as the amount was provided in the previous Financial Year. The Audit Report for the previous year was qualified due to the same. However, the closing equity for the Financial Year ending 31st March 2024 is after giving effect of all the above.

48 Previous year figures:

The previous year figures have been regrouped/ reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

As per our report of even date attached

For M L Bhuwania and Co LLP For and on behalf of Board of Directors

Chartered Accountants FRN: 101484W /W100197

Sd/- Sd/- Sd/-

Ashishkumar Bairagra Vijay Kumar Sharm Avneet Kaur

Partner CFO Company Secretary

Membership number: 109931

Sd/- Sd/-

Place: Mumbai Anil Nagpal Harish Kumar Agarwal

Date: May 27, 2024 Managing Director Director

DIN - 01302308 DIN - 02185002

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Mar 31, 2023

2.16 Provisions, contingent liabilities and contingent assets

(i) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss.

(ii) Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

Contingent Liabilities of GST of Rs. 22.17 Lakhs pertains to year FY 2017-18 (Rs. 10.49 Lakhs) and FY 2018-19 (Rs. 11.68 Lakhs). Management has filed an appeal against the demand of FY 2017-18 and paid deposit of Rs. 0.49 Lakhs, which has been rejected. Management will move to appeal again for the demand raised by department.

2.17 Trade receivables

Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

During the year, the Company has written off Rs. 0.23 Lakhs

Balances of Trade Receivables are subject to confirmation and consequential adjustment, if any.

2.18 Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are recognised, initially at fair value, and subsequently measured at amortised cost using effective interest rate method.

During the year, the Company has written back Rs. 21.20 Lakhs

Balances of Trade Payables are subject to confirmation and consequential adjustment, if any.

2.19 Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

2.24 Going Concern

The Company is reporting operating loss for the current year and for past years. The turnover of company has also receded over a period. Land and Building has been sold during the year and Plant and Machinery has been sold before signing the balance sheet of the company. All these events and incidents create doubt about the going concern assertion of the company.

However, the new management of company is from a business conglomerate in northern region. It has plans to run business of the Company and the steps are being taken in this direction. The management is making efforts to have different compatible products range and reduction in operational costs.

The management has now shifted its focus from manufacturing to trading. The Company has now procured some export orders from Indonesia and has also supplied material in time. It has also procured local orders which it expects to execute in coming month. The Company in future, plans to supply Material via trading and not by manufacturing as the management is of the view that higher margins are available on export order via trading and the operational cost and overheads were reduced to the minimum. The company is having few export and local orders. This would help to reduce the costs and increase overall margin in near future.

2.25 Fraud by Employee of the Company

Nature of Fraud with description - Company''s accountant has committed a fraud against the company by using digital and other means to withdraw sums from the bank. A detailed report for the same has been submitted to the authorities including the stock exchange. FIR has been registered against the employee of the company .

Remedial action taken to prevent occurrence of such frauds in future - Company has changed authorized signatory in the bank account in which fraud has happened and opened a new bank account in another bank for all the future payment transaction and all the transaction has been done with the approval of senior management irrespective of amount of payment.

2.26 Note for Held for Sale

The Company has decided for sale of its Plant & Machinery at the value of Rs. 37.17 Lakhs. The sale has been done in FY 23-24 before signing financial statement of FY 22-23.

The said property has been disclosed as "Held for Sale" in Other Current Financial Assets Note No. 12. The Held for Sale value as on 31 March 2023 is Rs. 34.13 Lakh. The Difference will be considered as Profit on Sale of NCA Held for Sale in FY 23-24.

2.27 Other Loans & Advances

Advance of Rs. 30,00,000 (Rupees Thirty Lakhs) has been given to L N Consultants in May 2020 for acquiring land. However, the deal did not materialize and the party had to refund the full amount to the Company. The same is still outstanding till date

Balances of Advances and Deposits are subject to confirmation and consequential adjustment, if any.

2.28 Note on Registered Office

The Registered office of the Company was shifted from Plot no. 117, MIDC Bhosari to Office no. 123, Wing A, Sohrab Hall, 21 Sasoon Road, Pune on 1 April 2023. The rental agreement for the MIDC Bhosari premises expeired on 31 Dec 2022, However, given our relations with the buyer of our Leasehold Land & Buidling, we were allowed to operate our registeredf office in the same premises till 31 March 2023 and no rental was charged for the same. The Company was offered access to the premises including all correspondence were received during the period in the same office.

2.29 Other Matters

a. Note on non-appointment of CFO till date

The Company is in search of Company Secretary and CFO and the said vacancy is yet to be filled. The appointment of Company Secretary has been finalised and the joining will be 1st September 2023.

2.30 The figures for the corresponding previous year have been regrouped/ reclassified wherever necessary, to make them comparable.

As per our report of even date attached For and on behalf of Board of Directors

Vipul M Shah and Associates Chartered Accountants Firm registration number:

sd/-

Anil Nagpal Managing Director

Proprietor

Membership number:103726 sd/-

Mumbai - Harish Agarwal

Date - 31.08.2023 Non-Executive Director

UDIN: 23103726BGYQZW8130

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Mar 31, 2015

Notes: A. The company does not have any holding Company or any Subsidiary.

B. Non of the shares carry any extra rights, preferences or restrictions.

C. There are no shares reserved for issue under options & contracts, Commitments for the Sale of Shares / disinvestment.

D. None of the Shares of the Company were alloted otherwise than for Cash, or as bonus shares with the period of five years prior to the Balance Sheet date.

E. There was no buy back of the Company's Shares.

F. There are no calls unpaid, or any forefieted shares.

Current Year Previous Year

1. Contingent Liabilities And Commitments (to the extent not provided for)

a. Contingent Liabilities not provided for - -

The Sales Tax appeal of the Company for FY 2000-01,2001-02, 2002-03 is pending with Sales Tax authorities. During the course of the appeal the Company had paid a deposit of Rs.11,50,000/- under protest. The management is confident that the appeal will be decided in company's favor and the entire amount so deposited will be refunded to company. As such the management does not expect any impact of this pending letigation on its financial position.

2. Inspite of our direct enquiry, till the date we have not received any written representation from any SME regarding their eligibility under the SME Act.

3. Exchange fluctuation recognised in Profit & loss account is Rs.68,806/- Credit. ( Rs.1,00,658/- Credit )

4. The Company is operating in a single segment of " Industrial Machinery".

In veiw of substantial losses incurred by the Company & the provision of clause 15 to 18 of Accounting standard 22 on Accounting For Taxes on Income. The Company has restricted the Deferred Tax Asset not more than Deferred Tax Liability as above.

5. Note on Leaserent :

The Company has taken premises on lease during the year 2013-14. The leaserent for the year 2014-15 has been debited to P & L A/c amounting to Rs.2,25,000/- ( Rs.25,87,500/- ) The lease contract has ended w.e.f. 30/04/2014.

The Company had given deposit of Rs.48 Lacs which was due on completion of contract. The Lessor ( i.e. Elvin Furniture Pvt.Ltd.) has repaid the amount of Rs.48 Lacs.

6. Name of the related party and nature of relationship where control exists :

1. Companies controlled by Envair Electrodyne Ltd. Nil

2. Subsidiary Company Nil

3. Associate Companies Nil

4. Joint Venture Companies Nil

5. Companies controlled by Key Management Personnel Elvin Furniture Pvt. Ltd.

6. Key Management Personnel & their relatives

Key Management Personnel

Name Designation

Shripad R. Mirashi Chairman & Managing Director

Deepanjali S. Mirashi Executive Director & C E O

Meena Joglekar Company Secretary

Key Management Personnel Relatives

Name

Shripad R. Mirashi Manjiri S. Mirashi, Geetanjali S. Mirashi, Deepanjali S. Mirashi

Deepanjali S. Mirashi Shripad R. Mirashi, Manjiri S. Mirashi, Geetanjali S. Mirashi.

Meena Joglekar Surendra V. Joglekar, Amol S. Joglekar, Suchitra S. Joglekar

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Mar 31, 2014

Notes: A. The company does not have any holding Company or any Subsidiary.

B. None of the shares carry any extra rights, preferences or restrictions.

C. There are no shares reserved for issue under options & contracts,

Commitments for the Sale of Shares / disinvestment.

D. None of the Shares of the Company were alloted otherwise than for Cash,

or as bonus shares with the period of five years prior to the Balance Sheet date.

E. There was no buy back of the Company''s Shares.

F. There are no calls unpaid, or any forefieted shares.

Current Year Previous Year

C) OTHER NOTES

1. Contingent Liabilities And Commitments ( to the extent not provided for )

a. Contingent Liabilities not provided for - -

b. Claims against the Company not - - acknowledged as debts :

c. Estimated amount of contracts remaining to be - - executed on Capital Account, not provided for :

2. Amount repayable within one year included in : Unsecured Loans - -

3. Inspite of our direct enquiry, till the date we have not received any written representation from any SME regarding their eligibility under the SME Act.

4. Exchange fluctuation recognised in Profit & loss account is Rs.1,00,658/- Credit. ( Rs.46,779/- Credit )

5. The Company is operating in a single segment of " Industrial Machinery".

6. During the year2005-06, by engaging the services of a professional valuer, the Company has revalued its Leasehold Land by Rs.3,11,41,015/- & Building by Rs.1,14,97,389/- & corrospondingly credited the same amount to a separate Revaluation Reserve Account. As at 31st March, 2012, by engaging the services of a professional valuer, the company has revalued its Leasehold Land Revaluation Reserve Account. The amount standing to the credit of revaluation reserve as on 31st March, 2012 was Rs.16,94,86,911/- As of 31st March, 2013, the Management has decided to reverse the revaluation for Land & Building, since in it''s opinion, the same does not reflect in the accounts on historical cost basis.

8. Note on Leaserent :

The Company has taken premises on lease during the year 2013-14. The leaserent for the year 2013-14 has been debited to P & L A/c amounting to Rs.25,87,500/- ( Nil ) The lease contract has ended w.e.f. 30/04/2014 & the rent for the period after 01.04.2014 is Rs.2,25,000/-. The Company had given deposit of Rs.48 Lacs which was due on completion of contract. The Company has repaid the amount of Rs.41,00,000/- & balance of Rs.7,00,000/- will be paid by Elvin Furniture Pvt.Ltd. after sub division.

*Note Most of the Plant & Machinery being common for different products manufactured by the Company, installed capacity is dependant on Product Mix, which in turn is decided by the demand for various products from time to time and also on availing of sub- contracting facilities, it is not feasible for the Company to indicate the exact Installed Capacity. The Company has, however, indicated the installed capacity on the basis of year''s product-mix as certified by Managing Director and accepted by the Auditors as correct, being the technical matter.

Key Management Personnel

Name Designation

Shripad R. Mirashi Chairman & Managing Director

Deepanjali S. Mirashi Executive Director

Meena Joglekar Director & Company Secretary

Relatives

Manjiri S. Mirashi, Geetanjali S. Mirashi, Deepanjali S. Mirashi Shripad R. Mirashi, Manjiri S. Mirashi, Geetanjali S. Mirashi. Surendra V. Joglekar, Amol S. Joglekar, Suchitra S. Joglekar

A. Previous Year''s figures have been regrouped wherever necessary to make them comparable with those of the Current Year.

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Mar 31, 2013

1. Previous Year''s figures have been regrouped wherever necessary to make them comparable with those of the Current Year.

2. Amount repayable within one year included in : Unsecured Loans

3. Inspite of our direct enquiry, till the date we have not received any written representation from any SME regarding their eligibility under the SME Act.

4. Exchange fluctuation recognised in Profit & loss account is Rs.46,779/- Credit. ( Rs.NIL)

5. The Company is operating in a single segment of" Industrial Machinery".

6. During the year2005-06, by engaging the services of a professional valuer, the Company has revalued its Leasehold Land by Rs.3,11,41,015/- & Building by Rs.1,14,97,389/- & corrospondingly credited the same amount to a separate Revaluation Reserve Account. As at 31st March, 2012, by engaging the services of a professional valuer, the company has revalued its Leasehold Land Revaluation Reserve Account. The amount standing to the credit of revaluation reserve as on 31 st March, 2012 was Rs.16,94,86,911/-

As of 31st March, 2013, the Management has decided to reverse the revaluation for Land & Building, since in it''s opinion, the same does not reflect in the accounts on historical cost basis.

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Mar 31, 2012

NOTE 1 : SHARE CAPITAL

Notes: A. The company does not have any holding Company or any Subsidiary.

B. None of the shares carry any extra rights, preferences or restrictions.

C. There are no shares reserved for issue under options & contracts, Commitments for the Sale of Shares/disinvestment.

D. None of the Shares of the Company were allotted otherwise than for Cash, or as bonus shares with the period of five years prior to the Balance Sheet date.

E. There was no buy back of the Company's Shares.

F. There are no calls unpaid, or any forfeited shares.

A. Previous Year's figures have been regrouped wherever necessary to make them comparable with those of the Current Year.

Current Previous Year Year

1. Contingent Liabilities and Commitments (to the extent not provided for)

a. Contingent Liabilities not provided for - -

b. Claims against the Company not acknowledged as debts: - -

C. Estimated amount of contracts remaining to be - 1,550,000 executed on Capital Account, not provided for:

2. Amount repayable within one year included in :

Unsecured Loans - -

3. Inspite of our direct enquiry, till the date we have not received any written representation from any SME regarding their eligibility under the SME Act.

4. Exchange fluctuation recognised in Profit & loss account is Rs. NIL Debit. (Rs. 24,998/-)

5. We have decree in our favour from Court of Hon'ble Civil Judge Senior Divn, Pune court regarding recovery of our dues from Vishwa Electronics (India) Ltd. Regular follow up is been kept by the Company on recovery process. In the nearest future the management has reason to believe that the company will recover at least Rs. 17 Lacs from this party.

6. The company has provided Rs. NIL (Rs. NIL) towards doubtful debts.

Company has initiated legal cases against defaulting Customers to the tune of 16.06 lacs. The Management is of the opinion that in the balance cases of long outstanding customers, the company is taking stringent measures to collect the balance outstanding & is hopeful to collect the outstanding.

7. The Company is operating in a single segment of "Industrial Machinery".

8. During the year 2005-06, by engaging the services of a professional valuer, the Company has revalued its asehold Land by Rs. 3,11,41,015/- & Building by Rs. 1,14,97,389/- & correspondingly credited the same amount to a separate Revaluation Reserve Account. The depreciation on this revalued portion, has been charged up to the Balance Sheet date by debit to Revaluation Reserve Account.

As at 31st March, 2012, by engaging the services of a professional valuer, the company has revalued its Leasehold Land by Rs. 11,62,14,104/- and Building by Rs. 2,57,87,452/-, and credited the same amount to Revaluation Reserve A/C.

9. Disclosure pursuant to Accounting Standard -15 (Revised) -"Employee Benefits"

a. The Company, has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India. The total liability as on Balance Sheet date is Rs. 14,31,848/- (Rs. 17,11,361/-), in respect of Gratuity.

b. Defined Contribution Plans : Amount of Rs. 3,77,430/- (Rs. 3,00,974/-) is recognised as expenses and included in Schedule No. 10 "Employee Cost".

(ix) Category of Assets

(i) Leave encashment liability being "Other Long Term Liability" the detailed disclosure is not required except that liability calculated on actuary basis as on 31.03.2012 is Rs. 6,43,736/- (Rs. 8,80,093/-.)

The same has not been funded.

Short Term Leave encashment liability of Rs. 1,04,862/- (Rs. 1,24,474/-) is accounted on accrued basis.

(ii) General descriptions of Significant Defined plans:

The Company operates gratuity plan wherein every employee is entitled to the benefit as per Payment of Gratuity Act, for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service.

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Mar 31, 2011

A. Previous Year's figures have been regrouped wherever necessary to make them comparable with those of the Current Year.

Current Year Previous Year

B) OTHER NOTES

1. Estimated amount of contracts remaining to be 1,550,000 - executed on Capital Account, not provided for:

2. a. Contingent Liabilities not provided for - -

b. Claims against the Company not acknowledged as debts : - -

3. Amount repayable within one year included in : - - Unsecured Loans

4. Inspite of our direct enquiry, till the date we have not received any written representation from any SME regarding their ligibility under the SME Act.

5. Exchange fluctuation recognised in Profit & loss account is Rs.24,998/- Debit. ( Rs.1,029 )

6. We have decree in our favour from Court of Hon'ble Civil Judge Senior Divn, Pune court regarding recovery of our dues from Vishwa Electronics (India) Ltd. Regular follow up is been kept by the Company on recovery process. In the near future the management has reason to believe that the company will recover at least Rs.17 Lacs from this party.

7. The company has provided Rs.NIL (Rs.4,92,597) towards doubtful debts. Company has initiated legal cases against defaulting Customers to the tune of 16.06 lacs. The Management is of the opinion that in the balance cases of long outstanding customers, the company is taking stringent measures to collect the balance outstanding & is hopeful to collect the outstanding.

8. The Company is operating in a single segment of" Industrial Machinery".

9. During the year2005-06, by engaging the services of a professional valuer, the Company has revalued its Leasehold Land by Rs.3,11,41,015/- & Building by Rs. 1,14,97,389/- & correspondingly credited the same amount to a separate Revaluation Reserve Account. The depreciation on this revalued portion, has been charged up to the Balance Sheet date by debit to Revaluation Reserve Account. During the year the revaluation reserve related to the land sold during the year has been adjusted against the revalued portion of the land sold.

*Note Most of the Plant & Machinery being common for different products manufactured by the Company installed capacity is dependant on Product Mix, which in turn is decided by the demand for various products from time to time and also on availing of sub- contractingfacilities,itisnotfeasiblefortheCompanytoindicatetheexact lnstalled Capacity.The Company has, however, indicated the installed capcity on the basis of year's product-mix as certified by Managing Director and accepted by the Auditors as correct, being the technical matter.

a. The Company, has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by the Institute of Chartered Accountants of India. The total liability as on Balance Sheet date is Rs. 17,11,361/-(Rs. 14,54,585/-), in respect of Gratuity.

b. Defined Contribution Plans : Amount of Rs. 3,00,974/- (Rs. 3,49,640/-) is recognised as expenses and included in Schedule No.10" Employee Cost".

(i) Leave encashment liability being "Other Long Term Liability" the detailed disclosure is not required except that liability calculated on actuary basis ason31.03.2011 is Rs. 8,80,093/-(Rs.7,87,782/-.) The same has not been funded.

Short Term Leave encashment liability of Rs. 1,24,474/- (Rs.1,20,820/-) is accounted on accrued basis.

(ii) General descriptions of Significant Defined plans:

The Company operates gratuity plan wherein every employee is entitled to the benefit as per Payment of Gratuity Act, for each completed year of service. The same is payable on retirement or termination whichever is earlier. The benefit vests only after five years of continuous service.

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Mar 31, 2010

A. Previous Years figures have been regrouped wherever necessary to make them comparable with those of the Current Year.

Current Year Previous Period (Rupees) (Rupees)

B) OTHER NOTES

1. Estimated amount of contracts remaining to be - - executed on Capital Account, not provided for :

2. a. Contingent Liabilities not provided for - -

b. Claims against the Company not - -

acknowledged as debts :

3. Amount repayable within one year included in : Unsecured Loans - 725,000

4. Till the date we have not received any written representation from any SME regarding their eligibility under the SME Act.

5. Exchange fluctuation recognised in Profit & loss account is Rs.1,029/- Debit. ( Rs.37,223 )

6. We have decree in our favour from Court of Honble Civil Judge Senior Divn, Pune court regarding recovery of our dues from Vishwa Electronics (India) Ltd. Regular followup is been kept by the Company on recovery process. In the nearest future the management has reason to belive that the company will recover at least Rs.17 Lacs from this party.

7. The company has provided Rs.4,92,597/-( Rs.13,28,799) towards doubtful debts, & Rs.8,67,209/- ( Rs.8,67,209/-) towards doubtful loan and advances. Company has also initiated legal cases against defaulted Customers to the tune of 16.06 lacs. The Management is of the opinion that in the balance cases the company is taking stringent measures to collect the balance outstanding & is hopeful to collect the outstanding.

8. The Company is operating in a single segment of " Industrial Machinery"

9. During the year2005-06, by engaging the services of a professional valuer, the Company has revalued its Leasehold Land by Rs.3,11,41,015/- & Building by Rs.1,14,97,389/- & corrospondingly credited the same amount to a separate Revaluation Reserve Account. The depreciation on this revalued portion, has been charged up to the Balance Sheet date by debit to Revaluation Reserve Account. During the year the revaluation reserve related to the land sold during the year has been adjusted against the revalued portion of the land sold

10. Deffered Tax liability ( On account of depreciation ) Rs.25,03,049/- - Deffered Tax Assets ( On account of 43B of the Income Tax Act ) Rs. 15,81,431/- -

11 The Company has been advised that the computation of net profits for the purpose of Directors remuneration under section 349 of the companies Act, 1956, need not be enumerated since no commission has been paid to the Directors. Fixed monthly remuneration has been paid to the Director as per Schedule XIII to theCompanies Act, 1956.

12A Name of the related party and nature of relationship where control exists :



1. Companies control by Envair Electrodyne Ltd. Nil

2. Subsidiary Company Nil

3. Associate Companies Nil

4. Joint Venture Companies Nil

5. Companies control by Key Management Personnel Elvin Furniture Pvt. Ltd.

6. Key Management Personnel & their relatives



Key Management Personnel Relatives



Name Designation

Shripad R. Mirashi Chairman & Manjiri S. Mirashi, Geetanjali S. Mirashi, Deepanjali S. Mirashi

Managing Director

Deepanjali S. Mirashi Executive Shripad R. Mirashi, Manjiri S. Director Mirashi, Geetanjali S. Mirashi.

Meena Joglekar Director & Surendra V. Joglekar, Company Amol S. Joglekar, Suchitra Secretary S. Joglekar

Company Secretary