Notes to Accounts of Gopal Iron & Steels Co (Gujarat) Ltd.

Mar 31, 2024

(K) Provisions

A provision is recognized when the company has a present obligation as a result of 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. Provisions are not discounted to their present value and are determined
based

on the best estimate required to settle the obligation at the reporting date. These
estimates are reviewed at each reporting date and adjusted to reflect the current best
estimates.

Where the company expects some or all of a provision to be reimbursed, for example
under an insurance contract, the reimbursement is recognized as a separate asset but
only when the reimbursement is virtually certain. The expense relating to any provision
is presented in the statement of profit and loss net of any reimbursement.

(L) Employee benefits

Short Term Employee Benefits

All employee benefits payable wholly within twelve months of rendering the service are
classified as short term employee benefits. Benefits such as salaries, wages, short term
compensated absences, etc, and the expected cost of bonus, ex-gratia is recognized in the
period in which the employee renders the related service.

Post-Employment Benefits

(i) Defined Contribution Plans

The contribution paid / payable under the scheme is recognized during the
period in which the employees render the related services.

(ii) Defined Benefit Plan

The employee’s gratuity fund scheme is company''s defined benefit plan. The
present value of the obligation under such defined benefit plan is determined on
estimate basis.

(M) Earnings per Share

Basic earnings per share are calculated by dividing the net profit or loss for the period
attributable to equity shareholders by the number of equity shares outstanding during
the period.

(N) Cash and cash equivalents

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

(O) Measurement of EBITDA

As permitted by the Guidance note on the Schedule III to The Companies Act, 2013, the
company has to present earnings before interest, tax, depreciation and amortization
(EBITDA) as a separate line item on the face of the statement of profit and loss. In its
measurement, the company does not include depreciation and amortization expense,
finance cost and tax expense.

Gopal Iron & Steels Co. (Gujarat) Limited

Notes to financial statements for the year ended 31^st March 2024

(23) In the opinion of the Board of Directors Current Assets, Loans and Advances are approximately
of the same value if realized in the ordinary course of business. The provisions for all known
liabilities are adequate and not in excess of the amount reasonably necessary.

(24) Contingent Liabilities

(a) Gujarat Commercial Tax Department have raised a demand aggregating Rs. 29.11Lakhs
(Rs.50.65 Lakhs) for the financial year 2002-2003 which has been disputed by the
Company, as it is of the opinion that the same shall be quashed in the appeal preferred
by the company. Hence no provision for this disputed Sales Tax demand has been made.

(b) Central Excise Authorities have raised demand aggregating Rs. 33.53 Lakhs (Rs. 33.53
Lakhs) for the financial year 1998-1999 and 1999-2000 which has been disputed by the
Company, as it is of the opinion that the same shall be quashed in the appeal preferred
by the company. However, company has paid under protest Rs. 36.24 Lakhs (Rs. 36.24
Lakhs) and shown as an asset under the head of “Short Term Loans and Advances”.

(25) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

The information regarding suppliers holding permanent registration certificate as a small-
scale industrial undertaking or as an ancillary industrial undertaking issued by the
Directorate of Industries of the state is not available. In the absence of such information,
the amount and interest due as per the Interest on delayed payments to Small and Ancillary
Industries Act, 2006 is not ascertainable. There is no claim for payment of interest under
the law above.

Disclosures under Section 22 of Micro, Small and Ancillary Industries Act, 2006 can be
considered on receiving relevant information from suppliers who are covered under the
act is received.

(27) Gratuity and other post-employment benefit plan

The Company has various schemes for Long-term benefits such as Provident Fund, Pension
Fund, Gratuity and Leave Encashment. In case of funded schemes, the funds are recognized by
the Tax authorities and administered through separate trust. The company’s defined
contribution plans are Provident Fund and Pension Scheme since the company has no further
obligation beyond making the contributions. The company’s defined benefit plans include
Gratuity and Leave Encashment.

The company operates defined benefit plan, viz., gratuity, for its employees. Under the gratuity
plan, every employee who has completed at least five years of service gets a gratuity on
departure @ 15 days of last drawn salary for each completed year of service. As actuarial
valuation using the projected unit method is not received yet for the year end, the company has

made provision for gratuity based on the premium demanded by LIC of India, which accordingly
to the company is more or less adequate. Adjustments, if any will be made on receipt of the
valuation report.

(28) Segment information

Based on the guiding principle given in Accounting Standard - 17 on Segment Reporting (issued
by the Institute of Chartered Accountants of India) the Company''s Primary Business is
manufacturing of SS / MS Bars, MS Section, ERW Pipers and other Iron & Steel Items, which have
similar risks and returns. Accordingly, there are no separate reportable segments as primary
segment is concerned.

The Management assessed fair value of Cash and Cash equivalent, trade receivables, trade payables, borrowings and
other current and non-current assets and liabilities approximate their carrying amounts largely due to the short term
maturity of these instruments.

(35) Financial risk management:

The Company has exposure to the following risks arising from financial instruments: -

• Credit risk;

• Liquidity risk;

• Market risk

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk
management framework. The board of directors has established the Risk Management Committee, which is responsible for
developing and monitoring the Company’s risk management policies. The committee reports to the board of directors on
its activities.

The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set
appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems
are reviewed periodically to reflect changes in market conditions and the Company’s activities. The Company, through its
training, standards and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the Company''s risk management policies and
procedures and reviews the adequacy of the risk management framework about the risks faced by the Company. The audit
committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of
risk management controls and procedures, the results of which are reported to the audit committee.

a) Credit risk:

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Company’s receivables from customers and investment
securities. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the
creditworthiness of customers to which the Company grants credit terms in the normal course of business. The Company
establishes an allowance for doubtful debts and impairment that represents its estimate of incurred losses in respect of
trade and other receivables and investments. Trade receivables The Company’s exposure to credit risk is influenced mainly
by the individual characteristics of each customer. The demographics of the customer, including the default risk of the
industry and country in which the customer operates, also influence credit risk assessment. Credit risk is managed through
credit approvals, establishing credit limits and continuously monitoring the creditworthiness of customers to which the
Company grants credit terms in the normal course of business

Expected credit loss assessment The Company allocates each exposure to a credit risk grade based on a variety of data
that is determined to be predictive of the risk of loss (e.g. timeliness of payments, available press information etc.) and
applying experienced credit judgment.

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine
incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant
credit losses. Given that the macroeconomic indicators affecting customers of the Company have not undergone any
substantial change, the Company expects the historical trend of minimal credit losses to continue

Cash and cash equivalents

As at the year end, the Company held cash and cash equivalents of '' 2,10,000/-/- (previous year '' 4,79,784/-).

The cash equivalents are held with banks.

Other financial assets

Other financial assets are neither past due nor impaired.

b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to
ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal
and stressed conditions, without incurring unacceptable losses or risking damage to the Company’ san reputation. The
Company enjoys an overdraft limit from the bank.

The Company invests its surplus funds in bank fixed deposit which carry no/low mark to market risks. The Company
monitors funding options available in the debt and capital markets to maintain financial flexibility.

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.

c) Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will
affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market
risk sensitive financial instruments including foreign currency receivables and payables and long-term debt. We are
exposed to market risk primarily related to interest rate change. However, it does not constitute a significant risk.
Hence, sensitive analysis is not given

(i) Currency risk

The Company is exposed to currency risk on account of its operations with other countries. The functional currency of
the Company is Indian Rupee. The exchange rate between the Indian rupee and foreign currencies has changed
substantially in recent periods and may continue to vary in the future. However, the overall impact of foreign currency
risk on the financial statement is not significant.

d) Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is
the risk of changes in fair values of fixed interest-bearing financial assets or borrowings because of fluctuations in the
interest rates if such assets/borrowings are measured at fair value through profit or loss. Cash flow interest rate risk is
the risk that the future cash flows of floating interest-bearing borrowings will fluctuate because of fluctuations in the
interest rates. Exposure to interest rate risk Company’s interest rate risk arises from borrowings and finance lease
obligations. The interest rate profile of the Company’s interest-bearing borrowings is as follows:

The risk estimates provided assume a change of 100 basis points interest rate for the interest rate benchmark as applicable
to the borrowings summarized above. This calculation also assumes that the change occurs at the balance sheet date and
has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily
representative of the average debt outstanding during the period.

(e) Commodity rate risk

The Company''s operating activities involve the purchase and sale of Iron and Steel, whose prices are exposed to the risk of
fluctuation over short periods. Commodity price risk exposure is evaluated and managed through procurement and other
related operations, policies. As of March 31, 2024, and March 31, 2023, the Company had not entered into any material
derivative contracts to hedge exposure to fluctuations in commodity prices.

(36) Capital Management

For the Company’s capital management, capital includes issued capital and all other equity capital and all other equity
reserves attributable to the equity holders of the company. The primary objective of the capital policy of the company to
safeguard the Company’s ability to remain a going concern and maximise the shareholder value.

The Company manages its capital structure and makes adjustments in the light of changes in economic conditions, annual
operating plans and long term and other strategic investment plans. To maintain or adjust the capital structure, the
Company may adjust the amount of dividend paid to the shareholders, return capital to shareholders or issue new shares.
The current capital structure is through equity with no financing through borrowings. The company is not subject to any
externally imposed capital requirements.

No changes were made in the objectives, policies or processes for managing capital during the years ended on 31 March
2024 and 31 March 2023.

(37) The Company has discontinued its business due to continuous loss. However, the management of the
Company determined to restart its operations after finding suitable opportunities in future. Hence, the
accompanying financial statements are prepared following the principals of going concern.

32. There are no immovable properties whose title deeds are not held in the name of company.

33. The Company has not revalued it’s revalued its Property, Plant and Equipments during the year.

34. No Loans and Advances are granted to Directors, KMPs, Promoters and related parties as defined under
Companies Act, 2013.

35. There is no capital in progress during the year.

36. There is no intangible assets during the development.

37. There are no proceedings being initiated or pending against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988 and rules made thereunder.

38. The Quarterly statements filed by the Company with Bank for current assets agree with books of accounts.
No material disagreement is found.

39. The Company is not declared as willful defaulter by the Bank or financial institutions or any other lender.

40. The Company does not have any transactions with companies struck off under Section 248 of Companies
Act, 2013.

41. There is no registration or satisfaction of charge yet to be registered with Registrar of Companies.

42. The provisions of Section 2(87) read with Companies (Restriction on Number of Layers) Rules, 2017 is not
applicable to the company.

43. Ratio Analysis

• Current Ratio

The current ratio indicates a company’s overall liquidity position. It is widely used by banks in
making decisions regarding the advancing of working capital credit to their clients. Both of these
numbers can be found in a Company’s balance sheet.

Current Ratio = Total Current Assets/Total Current Liabilities

Current Ratio for FY 2023-24 is 1.74 times (PY - 1.60) times. There is no material change during
the year.

• Debt Equity Ratio

Debt-to-equity ratio compares a Company’s total debt to shareholders equity. Both of these
numbers can be found in a Company’s balance sheet.

Debt Equity Ratio = Total Debt*100/Share Holder’s Equity.

Debt Equity Ratio for FY 2023-24 is 57.84% (PY - 60.10%). The fall in ratio is due to increase in
Shareholder’s fund.

• Debt Service Coverage Ratio

Debt Service coverage ratio is used to analyses the firm’s ability to payoff current interest and
instalments.

Debt Service Coverage Ratio = Earnings available for Debt Service/Debt Service

Earning for Debt Service = Net Profit after taxes Non-cash operating expenses like depreciation
and other amortizations Interest other adjustments like loss on sale of Fixed assets etc.

Debt service = Interest & Lease Payments Principal Repayments. No repayments is considered
for loan repayable on demands.

“Net Profit after tax” means reported amount of “Profit / (loss) for the period” and it does not
include items of other comprehensive income.

The Debt Service Coverage Ratio for FY 2023-24 is Nil (PY - 2022-23 Nil times).

Return on Equity (ROE)

It measures the profitability of equity funds invested in the Company. The ratio reveals how
profitability of the equity-holders’ funds have been utilized by the Company. It also measures the
percentage return generated to equity-holders. The ratio is computed as:

ROE = Net Profit after Taxes-Preference Dividend (if any)*100/ Shareholder’s Equity

The Return on Equity for FY 2023-24 is (6.05) % (PY 2022-23- (15.51)%). The reduction in ratio
is due to reduction in profit margin as compared to previous year.

Inventory Turnover Ratio

This ratio also known as stock turnover ratio and it establishes the relationship between the cost
of goods sold during the period or sales during the period and average inventory held during the
period. It measures the efficiency with which a Company utilizes or manages its inventory.

Inventory Turnover Ratio = Sales/Average Inventory

Average Inventory = (Opening Inventory Closing Inventory)/2

Inventory Turnover Ratio for FY 2023-24 is Nil times (PY 2022-23 - Nil times). There is no
significant change in this ratio during the year.

• T rade receivable T urnover Ratio

It measures the efficiency at which the firm is managing the receivables.

Trade Receivable Turnover Ratio = Net Credit Sales/Average Accounts Receivable
Net credit sales consist of gross credit sales minus sales return.

Trade receivables includes sundry debtors and bill’s receivables Average trade debtors = (Opening
Closing balance) / 2

Trade Receivable Turnover Ratio is 2.88 times in FY 2023-24 (PY - 0.78 times). The improvement
in ratio is due to increase in sales as compared to previous year.

• Trade Payables Turnover Ratio

It indicates the number of times sundry creditors have been paid during a period. It is calculated
to judge the requirements of cash for paying sundry creditors. It is calculated by dividing the net
credit purchases by average creditors

Trade Payables Turnover Ratio = Net Credit Purchases/Average Trade Payables

Net credit purchases consist of gross credit purchases minus purchase return.

Average trade Payables= (Opening Closing balance / 2

Trade Payable Turnover Ratio is 8.70 times in FY 2023-24 (PY - 3.85 times). The improvement is
due to increase in purchases as compared to previous year.

• Net Capital Turnover Ratio

It indicates a company''s effectiveness in using its working capital. The working capital turnover
ratio is calculated as follows: Net Sales divided by the average amount of working capital during
the same period.

Net Capital Turnover Ratio = Net Sales/ Working Capital

Net Sales shall be calculated as total sales minus sales returns. Working capital shall be calculated
as current assets minus current liabilities.

Net Capital Turnover Ratio is 4.65 times in FY 2023-24 (PY 2022-23 - 1.38 times). The
improvement is due to increase in sales as compared to previous year.

• Net Profit Ratio

It measures relationship between Net profit and Sales of the business.

Net profit Ratio = Net profit/Sales
Net profit shall be after tax.

Net sales shall be calculated as total sales minus sales returns.

Net profit for FY 2023-24 is 1.32% (PY -2022-23 -12.12%). The reduction in NP Ratio is due to low
margin on sales incurred during the year

• Return on Capital Employed

Return on capital employed indicates the ability of a company’s management to generate returns
for both the debt holders and the equity holders. Higher the ratio, more efficiently is the capital
being employed by the company to generate returns.

Return on Capital Employed = Earnings Before Interest and Taxes * 100/Capital

Employed

Capital Employed = Tangible Net worth Total Debt Differed Tax Liability

The return on Capital Employed for FY 2023-24 is 3.68% (PY 2022-23 - 9.29%). The reduction in
ratio is due to reduction in profit margin as compared to previous year

• Return on Investments

Return on investment (ROI) is a financial ratio used to calculate the benefit an investor will receive
in relation to their investment cost. The higher the ratio, the greater the benefit earned. The one of
widely used method is Time Weighted Rate of Return (TWRR) and the same should be followed to
calculate ROI. It adjusts the return for the timing of investment cash flows and its formula / method
of calculation is commonly available. However, the same is given below for quick reference:

{MV(T0) Sum [W(t) * C(t)]
where,

T1 = End of time period

TO = Beginning of time period

t = Specific date falling between T1 and T0

MV(T1) = Market Value at T1

MV(T0) = Market Value at T0

C(t) = Cash inflow, cash outflow on specific date

W(t) = Weight of the net cash flow (i.e. either net inflow or net

outflow) on day ''t'', calculated as [T1 - t] / T1

Investors may calculate ROI applying the above formula for their investments.

44. There is no scheme has been approved under section 230 to 237 of Companies Act, 2013 during the year.

45. The company has not advanced or loaned or invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary
shall 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 (ii) provide any guarantee, security or the like to
or on behalf of the Ultimate Beneficiaries;

46. The company has not received any fund from any person(s) or entity(ies), including foreign entities
(Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall
(i) 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 (ii) provide any guarantee, security or the like
on behalf of the Ultimate Beneficiaries

As per attached report of even date

For, Krutesh Patel & Associates For Gopal Iron & Steel Co (Guj) Limited

Chartered Accountants

_Sd/-_ _Sd/-_ _Sd/-_

Krutesh Patel Kundanben Patel Rakeshkumar Moghari

Partner Mgt. Director Director

Membership No - 140047 DIN - 06979778 DIN - 06798879

Firm Reg No - 100865W

^Date: POOJA PREMAL Baldevbhai Patel

^27th,May2024 MEHTA CFO

Place: Ahmedabad

Company Secretary

---

Mar 31, 2014

1 Share Capital

Terms/Rights attached to issued Equity Shares

The Company has only one class of Equity Shares having at Par value of Rs. 10/- per Share. Each holder of Equity Shares is entitles to one vote per Share.

In the event of Liquidation, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all Preferential amounts. The distribution will be in proportion to the number of Equity Shares held by the Shareholders.

As per records of the Company, including its register of Shareholders/Members and other declaration received from Shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of Shares.

2 Long Term Borrowings

Term Loan from Punjab National Bank are taken during the Financial Year 2010-2011 and carries Interest 15.75% to 16.25% PA. The loan is repayable in 72 Monthly installments Along with interest from the date of loan.

Term Loan from Punjab National Bank secured by first charge on all Plant and Machinery, Wind Mill and movable and immovable fixed assets both present and future save and except asset acquired under Hire Purchase agreement.

Hire Purchase Loan secured against hypothecation of Motor Cars acquired under Hire Purchase Agreement.

3 In the opinion of the Board of Directors Current Assets, Loans and Advances are approximately of the same value if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

4 Contingent Liabilities

(a) Gujarat Commercial Tax Department have raised a demand aggregating Rs. 66.33 Lacs (Rs. 44.79 Lacs) for the financial year 2002-2003, 2006-2007 and 2009-2010 which has been disputed by the Company.

(b) Central Excise Authorities have raised demand aggregating Rs. 33.53 Lacs (Rs. 33.53 Lacs) for the financial year 1998-1999 and 1999-2000 which has been disputed by the Company. However company has paid under protest Rs. 36.24 Lacs (Rs. Nil) and shown as an asset under the head of "Short Term Loans and Advances".

5 Disclosure under Micro, Small and Medium Enterprises Development Act, 2006

Based on the information available with the company there are no suppliers who are registered under the Micro, Small and Medium Enterprises Development Act, 2006 as at March 31, 2013. Hence the disclosure relating to amounts unpaid as at the year end together interest paid/payable under this act have not been given.

6 Gratuity and other post-employment benefit plan

The Company has various schemes for Long-term benefits such as Provident Fund, Pension Fund, Gratuity and Leave Encashment. In case of funded schemes, the funds are recognized by the Tax authorities and administered through separate trust. The company''s defined contribution plans are Provident Fund and Pension Scheme since the company has no further obligation beyond making the contributions. The company''s defined benefit plans include Gratuity and Leave Encashment.

The company operates defined benefit plan, viz., gratuity, for its employees. Under the gratuity plan, every employee who has completed at least five years of service gets a gratuity on departure @ 15 days of last drawn salary for each completed year of service. As actuarial valuation using the projected unit method is not received yet for the year end, the company has made provision for gratuity based on the premium demanded by LIC of India, which accordingly to the company is more or less adequate. Adjustments, if any will be made on receipt of the valuation report.

7 Segment information

Based on the guiding principle given in Accounting Standard - 17 on Segment Reporting (issued by the Institute of Chartered Accountants of India) the Company''s Primary Business is manufacturing of SS/MS Bars, MS Section, ERW Pipers and other Iron & Steel Items, which have similar risks and returns. Accordingly there are no separate reportable segments as primary segment is concerned.

8 Disclosure in respect of Related Parties Pursuant to AS - 18

(a) Details of Key Management Personnel

Bhaveshbhai Gopalbhai Patel

Prabhubhai Laxmanbhai Patel

Darshan Dashrathbhai Patel

Ghanshyam Narottambhai Patel

Ashlesha Kunal Shah

Details of Relatives of Key Management Personnel

Baldev Patel Kundan Patel

Govind Patel Jainal Patel

Hitesh Patel Gopalbhai Patel

Harsha Patel Surajben Patel

Harshad Patel Hireni Patel

Vijay Patel Kunal Shah

Details of Enterprises owned or significantly influenced by key management personnel

Harigopal Steels and & Metals Private Limited

Gopal Steel Suppliers

Parul Steel Industries

Zalawad Steel Corporation

9 There are no amounts due to be credited to Investor Education and Protection Fund.

10 Earning in Foreign Exchange at F.O.B. Value: Rs. Nil (Rs. Nil).

11 Expenses in Foreign Currency at CIF Value: Rs. Nil (Rs. Nil).

12 Value of Imports on CIF basis accounted for during the year: Rs. Nil (Rs. Nil).

13 Balances of Sundry Creditors, Sundry Debtors, Advances, Deposits, Secured and Unsecured Loans are as per the book and subject to confirmation and reconciliation from respective parties.

---

Mar 31, 2012

(1) Balances of Sundry Creditors, Sundry Debtors, Advances, Deposits, Secured and Unsecured Loans are as per the book and subject to confirmation and reconciliation from respective parties.

(2) In the opinion of the Board of Directors Current Assets, Loans and Advances are approximately of the same value if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

(3) Contingent Liabilities

(a) Estimated amount of contracts yet to be executed on capital account and not provided for Rs. 20.00 Lacs (Rs. 639.63 Lacs) and against this liability an advance of Rs. 17.48 Lacs (Rs. 168.71).

(b) Gujarat Commercial Tax Department have raised a demand aggregating Rs. 32.75 Lacs (Rs. 29.11 Lacs) for the financial year 2002-2003 and 2006-2007 which has been disputed by the Company, as it is of the opinion that the same shall be quashed in the appeal preferred by the company. Hence no provision for this disputed Sales Tax demand has been made.

(c) Central Excise Authorities have raised demand aggregating Rs. 33.53 Lacs (Rs. 33.53 Lacs) for the financial year 1998-1999 and 1999-2000 which has been disputed by the Company, as it is of the opinion that the same shall be quashed in the appeal preferred by the company. However company has paid under protest Rs. 36.24 Lacs (Rs. Nil) and shown as an asset under the head of "Short Term Loans and Advances".

(4) There are no amounts due to-be credited to Investor Education and Protection, Fund

The above loan amount brought in by the promoters by way of Unsecured Loans in pursuance of stipulations of the Bank for the finance and it is exempted under Section 58A of the Companies Act, 1956.

(5) The disclosures as required as per the Accounting Standard - 15 are as under:

(a) Brief Description of Plans

The Company has various schemes for Long-term benefits such as Provident Fund, Pension Fund, Gratuity and Leave Encashment. In case of funded schemes, the funds are recognized by the Tax authorities and administered through separate trust. The company''s defined contribution plans are Provident Fund and Pension Scheme since the company has no further obligation beyond making the contributions. The company''s defined benefit plans include Gratuity and Leave Encashment.

(6) Earning in Foreign Exchange at F.O.B. Value: Rs. Nil (Rs. Nil).

(7) Expenses in Foreign Currency at CIF Value: Rs. Nil (Rs. Nil).

(8) Value of Imports on CIF basis accounted for during the year: Rs. Nil (Rs. Nil).

---

Mar 31, 2010

1, Contingent Liabilities

(a) Estimated amount of contracts yet to be executed on capital account and not provided for Rs. 100.00 Lacs (Rs. 30.00 Lacs) and against this liability an advance of Rs. Nil (Rs Nil).

(b) Income Tax Authorities have raised demand aggregating Rs. 242.18 Lacs (Rs. Nil) for the assessment years 1996-1997 and 1997-1998 which has been disputed by the Company, as it is of the opinion that the same shall be quashed in the appeal preferred by the company. Hence no provision for this disputed Income Tax demand has been made.

(c) Sales Tax Authorities have raised demand aggregating Rs. 29.11 Lacs (Rs. Nil) for the financial year 2002-2003 which has been disputed by the Company, as it is of the opinion that the same shall be quashed in the appeal preferred by the company. Hence no provision for this disputed Sales Tax demand has been made.

2 Figures have been rounded off to the nearest a rupee. Figure in the bracket are that of the previous year.

3. The previous figures have been regrouped / rearranged so as to make them comparable with the current Year.

4. Balances of Sundry Creditors, Sundry Debtors, Advances. Deposits, Secured and Unsecured Loans are as per the book and subject to confirmation and reconciliation from respective parties.

5. In the opinion of the Board of Directors Current Assets, Loans and Advances are approximately of the same value if realized in the ordinary course of business. The provisions for all known liabilities are adequate and not in excess of the amount reasonably necessary.

Note

The information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent of such vendors / parties identified from the available information.

6. The disclosures as required as per the revised Accounting Standard - 15 are as under:

(A) Brief Description of Plans

The Company has various schemes for Long-term benefits such as Provident Fund, Pension Fund, Gratuity and Leave Encashment. In case of funded schemes, the funds are recognized by the Tax authorities and administered througn separate trust. The companys defined contribution plans are Provident Fund and Pension Scheme since the company has no further obligation beyond making the contributions. The companys defined benefit plans include Gratuity.and Leave Encashment.

Note

There is no other change in the accounting estimates due to applicability of Accounting Standard - 15 (Revised) as the parameters considered in the financial year 200C-2010 are same as those considered in year 2008-2009.

7. Disclosure in respect of Related Parties Pursuant to AS - 18

(A) Details of Key Management Personnel

Name ofKevirfaiiagementPersonnel

Bhaveshbhai Gopalbhai Patel

Prabhubhai Laxmanbhai Patel

Darshan Dashrathbhai Patel

Ghanshyam Narottambhai Patel

Ashlesha Kunal Shah

8. Earning in Foreign Exchange at F.O.B. Value: Rs. Nil (Rs. Nil).

9. Expenses in Foreign Currency at CIF Value: Rs. Nil (Rs. Nil).

10. Value of Imports on CIF basis accounted for during the year: Rs, Nil )