Notes to Accounts of Filtron Engineers Ltd.

Mar 31, 2024

Provisions are recognized when the Company has a present, legal or constructive obligation as a
result of a past event and it is probable that an outflow of resources will be required to settle the
obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are
determined based on the best estimate required to settle the obligation at the Balance Sheet date.
Provisions are reviewed at each Balance Sheet date and adjusted to reflect current best estimates.

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 recognized as interest expense.

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 recognized 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 recognized because it cannot
be measured reliably. The Company does not recognize a contingent liability but discloses its

existence in the financial statements. A disclosure for a contingent liability is made where there is
a possible obligation arising out of past events, the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation arising out of a past event where it is either not
probable that an outflow of resources will be required to settle or a reliable estimate of the amount
cannot be made.

s. Earnings per share

a. Basic Earnings per Share

Basic earnings per share is calculated by dividing the net profit for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the financial
year. Earnings considered in ascertaining the company s earnings per share is the net profit for the
period after deducting any attributable tax thereto for the period. The weighted average number
of equity shares outstanding during the period and for all periods presented is adjusted for events,
such as bonus shares, other than the conversion of potential equity shares that have changed the
number of equity shares outstanding, without a corresponding change in resources.

b. Diluted Earnings per Share

For the purpose of calculating diluted earnings per share, the net profit or loss for the period
attributable to equity shareholders and the weighted average number of shares outstanding during
the period is adjusted for the effects of all dilutive potential equity shares.

Fair value hierarchy:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value
that are either observable or unobservable and consists of the following three levels:

Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2— Inputs are other than quoted prices included within Level1 that are observable for the asset
or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3 — Inputs are not based on observable market data (unobservable inputs). Fair values are
determined in whole or in part using a valuation model based on assumptions that are neither
supported by prices from observable current market transactions in the same instrument nor are they
based on available market data.

27. Financial risk management

The Company is exposed to various risks such as credit risk, liquidity risk and market risk.

i. Credit risk

Credit risk arises due to customer''s failure to repay the debts according to the contractual terms and
conditions. It consists of two elements viz. risk of default in payment and decrease in the
creditworthiness of the customers. Credit risk is controlled by analyzing credit limits and
creditworthiness of customers on a continuous basis to whom the credit has been granted after
obtaining necessary approvals for credit.

Since the Company is not engaged in Exports, it is not exposed to risk associated with other
geographies.

ii. Market risk

The risk that the fair value of the financial instrument may fluctuate because of change in market
conditions. Such changes in the values of financial instruments may result from changes in the interest
rates, credit, liquidity and other market changes.

The Company is unable to meet its short term and long term financial obligations as it casts serious
doubts about the Going Concern assumption.

28. Foreign exchange earnings and outgo:

The earnings and outgo in foreign currency is Rs. Nil for the year ended March 31, 2024 (Rs. Nil for
March 31, 2023).

29. Contingent liability not provided for:

a. The Company settled the old outstanding dues under the amnesty scheme and accordingly the
effects are given in the books.

b. Interest/ penalty in respect of non-compliance of rules and regulations of Bombay Stock Exchange,
Securities and Exchange Board of India and Registrar of Companies is not provided as the amount
cannot be ascertained.

c. Some of the Customers and a Vendor has filed a suit against the Company. However, in view of the
Company, there is no liability.

30. Deferred Tax asset:

The Company has discontinued its operations and there is no convincing evidence which demonstrates
the virtual certainty of the realization of such deferred tax asset. Hence the Company has not
recognised the deferred tax asset.

32. Details of dues to micro and small enterprises as defined under MSMED Act, 2006

The Company does not have any system to identify the vendors who are registered under the MSMED
Act, 2006. Hence, it was not possible to opine on the requirements under the MSMED Act.

33. Inventories

As per the perception of the management, closing stock is approximately of the value stated if realized
in the ordinary course of business. The Company has not carried out the physical verification of the
closing stock due to prevailing conditions that are beyond the control of the management.

34. Capital commitments:

The capital commitment as at March 31, 2024 was Rs. Nil (March 31, 2023 - Rs. Nil).

35. Relationship with Struck off Companies

The Company has not entered into any relationship with the struck-off Company during the financial
year 2023-24. (March 31, 2023 - Nil).

36. Previous period''s / year''s figures have been regrouped where necessary to conform to current period''s
classification.

For S.H.SANE & CO. For and on behalf of the Board of Directors

Chartered Accountants of Filtron Engineers Limited

(Firm''s Registration No.0114491W)

Sd/- Sd/-

Mr. Sadanand Hegde Mr. Gajanan Hegde

Sd/- Chairman & Whole time Director Director

Shekhar Sane DIN No.00195106 DIN No.00195154

Proprietor

M.No. 047938 Sd/-

Date: 30-05-2024 Ramesh Hosmane Date: May 30, 2024

Place: Pune CFO Place: Pune

UDIN:24047938BKBGTD9935

---

Mar 31, 2014

1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Bank Guarantees 6725763.00 17,017,572.00

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for

Tangible assets 500,000.00 250,000.00

---

Mar 31, 2013

Basis of Accounting:-

Accounts of the company are prepared under the historical cost convention andaccrual basis as a going concern. The Company has complied with accounting standards recommended by Institute of Chartered Accountants of India & as per prescribed under Sec. 211(3C) of the Companies Act 1956 except Accounting Standard 15 in respect of Retirement Benefits

Note - 1) The Company has not ascertained the amount of Compensated absences

2) Gratuity - The Liability has been ascertained by the company. The Company does not have funding arrangements.

3) No Provision is made for the amount towards earned leave.

Loans repayable on demand from consortium bankers:

Bank of Maharashtra

1. Includes Rs. 14.05/- Lacs being the installment due within one year for the repaying date refer. Note No.5

2. Packing Credit - Secured by mortgage of immovable property situate at Chakan Plot No. 36, WMDC Industrial Area, Ambethan Road, Chakan, & Pune & Apt 6 & 7 Sr. No. 124, Sitabag Colony, Parvati Pune - 30 and hypothecation of Plant & Machinery and other moveable fixed asset and current assets and against the Personal Guarantee of a Director & Hypothication of Finished Goods and Debtors upto maximum 120 days considered for DP

Note 2 Additional information to the financial statements

2.1 Contingent liabilities and commitments (to the extent not provided for)

(i) Contingent liabilities

(a) Bank Guarantees 17,017,572.00

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Tangible assets 250,000.00

2.2 In the opinion of the Board, all the assets other than fixed assets and non-current investments have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

2.3 Related party transactions

---

Mar 31, 2012

Established in 1982, the Company is a manufacturing and suppliers of Food, Dairy, Beverages and Chemical Equipment. The Company currently operates through its facilities located at Pune and Chakan.

1.1 Contingent liabilities and commitments (to the extent not provided for)

(Figures in Rs.)

Particulars For the For the Year ended Year ended 31 March, 2012 31 March, 2011

(i) Contingent liabilities

(a) Bank Guarantees 16,711,564.00 19,275,000.00

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed on capital account and not provided for Tangible assets - -

Note 2 Disclosures under Accounting Standards

2.1 Related party transactions

2.2 Details of related parties:

Description of relationship Names of related parties

Relative Bertron Equipment Pvt Ltd

Common Director Schmidt Bretten India Pvt Ltd

Relative Real Centrifuge Asia Pvt Ltd

Relative Fristam Pumps (I) Pvt Ltd

Relative Filtron India

Common Director Nerb India Pvt Ltd

Note: Related parties have been identified by the Management

---

Mar 31, 2010

1) Depreciation is charged on all the assets on straight-line method at rates and manner prescribed in schedule XIV of the Companies Act. Prorata depreciation is provided in the year of installation as also in the year of sale or disposal of the assets.

2) The cost of Leasehold land is amortized over the period of the lease

A) Foreign currency Transactions:

Foreign Currency transactions of income and expenditure are accounted for at the exchange rate prevailing as on the date of the transaction. Debtors & Creditors in respect of Foreign Currency transactions outstanding as on 31/03/2010 have been expressed at the foreign exchange rates prevailing as on the year end date. The difference between the rate prevailing on the transaction date and settlement /year ended is recognized as Income or Expenses as the case may be.

B) Retirement Benefits - Accounting Standard 15.

Contributions are made to provident fund. Provision for gratuity is made as per the amount ascertained by the management. No provision is made for amount towards earned leave.

C) Taxation - Accounting Standard 22.

i) Provision for taxation includes current income tax.

ii) The Company follows - Accounting for taxes on income issued by the Institute of Chartered Accountants of India. The Company has timing difference between accounting & tax profits on account of accumulated losses and unabsorbed depreciation. As per the perception of the management since thereis no convincing evidence which demonstrates the virtual certainty of realisation of such Deferred tax assets, the Company has presently decided not to recognize any deferred tax asset or deferred tax liability either.

D) Segment Reporting under Accounting standard 17.

The company operates in one business segment namely dairy and beverage equipment and hence reporting under this accounting standard is not applicable to the company.

E) Lease Accounting As per Accounting Standard 19.

This is not applicable to the company since no new lease transaction took place during the year under report. J) Consolidated Financial Statement & Investment in Associate as per Accounting Standard 21 & 23 - Not applicable to the Company as the Company does not have any subsidiary.

II) Impairment of Assets as per Accounting Standard 28 :- As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is less than the recoverable amount of those assets. Hence there is no impairment loss on the assets of the company.

III) Capital Commitment - Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 60.00/- Lacs, approx (Pre. Yr. Rs. - 40.00/-Lacs )

IV) Contingent Liability - Contingent Liability not provided for in respect of 1) Bank Guarantees Rs. 45,22,500. /- (Pre.Yr. Rs. 57,41,800/-).

V) In respect of Sundry Debtors, Loans & Advances we have to state as under:

a) Balances of Debtors, Creditors and Loans & Advances are subject to Confirmations.

b) Receivables from Various parties against which the Company has initiated legal action and/or sent notices and the matters are pending before legal authorities Rs. 32.21A Lacs. (Pre. Yr. 32.21lacs)

c) No provision has been made in respect of other debtors of Rs44.08/- lacs (Pre.Yr. 44.08/- Lacs) and advances Rs. 12,02,564/- which are outstanding for the more than 3 years. We are unable to comment on the ultimate realisability of this amount.

d) Loans and advances include Rs. 71.32 lacs due from lead managers to the public issue carried out by the Company. The Company has filed a suit for recovery of principal amount reliability of this debt could not be confirmed.

e) Deposits with bank Rs. 27,44,319/- are towards margin money against the bank guarantees given and LCs issued on behalf of Company.

As per the perception of the management, the above receivables are good and will be recovered in full.

VI) Amounts payable to Small Scale Industries (Sundry Creditors) outstanding Rs. Nil (Pre. Yr Nil/-)

VII) Related party disclosures as per A.S. 18

A) Subsidiaries: Nil

B) Associates and Joint Ventures:

1. Real Centrifuges Asia Pvt. Ltd.

2. Fristam Pumps India Pvt. Ltd.

3. Filtron rndia

4. Sparc (Partnership)

5. VicarbThermaltek (I) Pvt. Ltd.

6. Bertron Equipments Pvt. Ltd.

7. Schimdt Bretten India Pvt. Ltd.

8. Nerb India Pvt Ltd.



C) Key Management Personnel & Relatives

Mr. Sadanand Hegde Chairman & Managing Director

Mr. Gajanan Hegde Director

Mr. Joachim Friedech Director

Mr. Prabhakar Hegde Director

Mr. Padmakar Kashyapi Director

Relatives

Mr. Anil Gajanan Hegde Son of Mr. Gajanan Hegde

XV) In the opinion of the Board the balances in Current Assets, Loans & Advances are approximately of the value stated if realised in the ordinary course of business are taken as per books. The provision for depreciation and all known liabilities is adequate and not in excess of the amounts reasonably necessary. These are no Contingent Liabilitiesother then those stated in above note No. 3.

XVI) Previous years figures have been regrouped or rearranged wherever necessary.

---

Mar 31, 2009

I) Impairment of Assets as per Accounting Standard 28 :- As on the Balance Sheet date the carrying amounts of the assets net of accumulated depreciation is less than the recoverable amount of those assets. Hence there is no impairment loss on the assets of the company.

II) Capital Commitment - Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs. 40,00,000/- approx. ( Pre. Yr. Rs. - Nil)

III) Contingent Liability - Contingent Liability not provided for in respect of 1) Bank Guarantees Rs. 57,41,800. /-(Pre.Yr. Rs. 70,04,100/-).

IV) In respect of Sundry Debtors, Loans & Advances we have to state as under:

a) Balances of Debtors, Creditors and Loans & Advances are subject to Confirmations.

b) Receivables from Various parties against which the Company has initiated legal action and/or sent notices and the matters are pending before legal authorities Rs. 32.21/- Lacs. (Pre. Yr. 56.35lacs)

c) No provisions has been made in respect of debtors of Rs.32.21/- lacs (Pre.Yr. 38.99 lacs) and advances includes deposit which are outstanding for the more than 3 years including the parties against which legal action has been taken by the Company. We are unable to comment on the ultimate realisability of this amount.

d) Loans and advances include Rs. 71.32 lacs due from lead managers to the public issue carried out by the Company. The Company has filed a suit for recovery of principal amount reliability of this debt could not be confirmed.

e) Loans and advances Includes Rs. 25.44/- lacs kept in deposits with bank as margin money against the bank guarantees and LCs.

f) Sundry balances written off includes Rs. 116.26 /- due from a party in which a Director is interested As per the perception of the management, the above receivables are good and will be recovered in full.

V) Amounts payable to Small Scale Industries (Sundry Creditors) outstanding Rs. Nil (Pre. Yr 2.88/-)

VI) Related party disclosures as per A.S. 18

A) Subsidiaries: Nil

B) Associates and Joint Ventures:

1. Real Centrifuges Asia Pvt. Ltd.

2. Fristam Pumps India Pvt. Ltd.

3. Filtron India

4. Sparc (Partnership)

5. Vicarb Thermaitek (I) Pvt. Ltd.

6. Bertron Equipments Pvt. Ltd.

7. Schimdt Bretten India Pvt. Ltd.

8. Nerb India Pvt Ltd.

C) Key Management Personnel & Relatives

Mr. Sadanand Hegde Chairman & Managing Director

Mr. Gajanan Hegde : Director

Mr. Joachim Friedech Director /

Relatives

Mr. Anil Gajanan Hegde Son of Mr. Gajanan Hegde

VII) In the opinion of the Board the balances in Current Assets, Loans & Advances are approximately of the value stated if realised in the ordinary course of business are taken as per books. The provision for depreciation and all known liabilities is adequate and not in excess of the amounts reasonably necessary. These are no Contingent Liabilitiesother then those stated in above note No. 3.

VIII) Previous years figures have been regrouped or rearranged wherever necessary.