Notes to Accounts of Gujarat Containers Ltd.

Mar 31, 2025

Terms/Right attached to Equity Shares

The company has one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.The company declares and pays dividends in Indian Rupees.

Details of Security and Repayment Terms for secured loans

(i) Term loans from Bank which are hypothecated by vehicles are repayable at interest rate @ 7.5% - 9.45 %.

(ii) Term loans financial institution which are hypothecated by Solar Plant and Machinary are repayable at interest rate @ 7% with Equated Monthly Instalment (EMI) of Rs. 2.65 lakhs per month Commencing onwards March, 2025.

Details of Security for secured loans

(i) The Company has availed Cash Credit facility for working capital purpose bearing interest rate of ranging from 8.55 % to 9.50%, which is secured by first charge, by way of hypothecation of present and future inventories & trade receivables.

(ii) Details of Collateral security:

i) Hypothecation of entire present and future stock of raw materials. Semi-finished goods, stores and spares, Packing materials and hypotication of all present as well as future receivables .

ii) Mortgage of Factory land building and other immovable assets of the company and hypothecation of plant and machinery situated at Plot No. 488/489 situated on baroda savli highway,village,Tundav Taluka : savli admeasuring 14341.00sq.mtrs. and plot no D-II-E-83 located in Dahej industrial Estate.

iii) Mortgage of Factory land building and other immovable assets of the company and hypothecation of plant and machinery situated at Plot No. D-II-E-83 in Dahej Industerial Estate.

iv) Mortgage of office premises admeasuring about 185.40 sq. mtrs situated at 201, B - wing, Alkapuri Arcade R.C. Dutt Road Vadodara Standing in the name of M/s Management Aid.

v) Hypothecation of unencumbered plant & machinery and other fixed assets of the company. vI) Guarantee of directors and Corporate Guarantee of M/S Management Aids.

(iii) Current maturities of long-term debt Refer Notes 16 - Long-term borrowings for details of security and guarantee.

34 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

35 Disclosure as required under Ind AS 19 - Employee Benefits [A] Defined contribution plans:

The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.

The Company recognised Rs. 18.55 Lakhs (P.Y : Rs. 19.19 Lakhs ) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to Employees'' Gratuity Fund managed by LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at 31^st March, 2024.

39 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act , 2013 , a CSR committee has been formed by the company. The areas for CSR activities are promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects as specified in Schedule VII of the Companies Act, 2013.The details of amount required to be spent and actual expenses spent during the year is as under:

40 Operating Segments

(a) Business Segment

The company has only one reportable business segment of manufacturing of steel barrels as the primary reportable business segment for disclosure. The business segments are business of manufacturing of steel barrels.

(b) Geographical Segment

The company has no export during the year and it does not require disclosure as a separate reportable segment of Domestic sales and Export sales.

42 Borrowings secured against current assets

The Company has borrowings from banks secured against Current Assets and quarterly returns filed with the banks are in agreement with the books.

43 Other statutory information :

a) The company do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

b) The company do not have any transactions with struck off companies.

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

d) The company have not traded or invested in Crypto currency or Virtual Currency during the year.

e) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

f) The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(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,

g) The company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

h) There are no Scheme of Arrangements that has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

(i) Fair value hierarchy

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 is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company''s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis (if any).

45 Financial Risk Management

In the course of business, the company is exposed to certain financial risk that could have considerable influence on the Company''s business and its performance. These include credit risk and liquidity risk. This not explain the sources of risk which the entity is exposed to and how the entity manage the 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 review and approves risk management structure and policies for managing risks and monitors suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

(A) Credit risk Management. :

Credit risk is the risk of financial loss to company if a customer or counter party to a financial instrument fails to meet its contractual obligations.

The company has not made any investments in financial instruments hence company''s financial risk arises from the company''s receivables from customers.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which company grants credit terms in the normal course of business.

i) Trade receivables:

The Company''s exposure to credit risk is influenced mainly by individual characteristics of each customer. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of the customer.

The Trade receivables consist of a large number of customers, spread across the country comprising primarily the manufacturers.

The average credit period on sales of goods is 70 days. The Company''s trade and other receivables consists of a large number of customers, hence the Company is not exposed to concentration risk.

ii) Cash and Cash equivalents:

As at the year end, the company held cash and cash equivalents of Rs.301.39 Lakhs (As at 31.03.2024 Rs. 1032.29 Lacs ).

(B) Liquidity risk management:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as and when required.

The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

(i) Maturities of financial liabilities

The tables herewith analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for:

46 Capital Management Risk management

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operation through internal accruals. The management and Board of Directors monitor the return on capital.

48 Event after reporting Period

The Board of Director recommended final dividend of Rs 1.50 per equity share for the financial year ended on 31^st March, 2025. The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year Rs. 1.50 per equity share).

49 These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its meeting held on 7^th May, 2025.

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Mar 31, 2024

Terms/Right attached to Equity Shares

The company has one class of equity shares having par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.The company declares and pays dividends in Indian Rupees.

Other Information:

Particulars of equity share holders holding more than 5% of the total number of equity share capital in the company

Details of Security for secured loans

(i) The Company has availed Cash Credit facility for working capital purpose bearing interest rate of ranging from 8.55 % to 9.50%, which is secured by first charge, by way of hypothecation of present and future inventories & trade receivables.

(ii) Details of Collateral security:

i) Hypothecation of entire present and future stock of raw materials. Semi-finished goods, stores and spares, Packing materials and hypotication of all present as well as future receivables .

ii) Mortgage of Factory land building and other immovable assets of the company and hypothecation of plant and machinery situated at Plot No. 488/489 situated on baroda savli highway,village,Tundav Taluka : savli admeasuring 14341.00sq.mtrs. and plot no D-II-E-83 located in Dahej industrial Estate.

iii) Mortgage of Factory land building and other immovable assets of the company and hypothecation of plant and machinery situated at Plot No. D-II-E-83 in Dahej Industerial Estate.

iv) Mortgage of office premises admeasuring about 185.40 sq. mtrs situated at 201, B - wing, Alkapuri Arcade R.C. Dutt Road Vadodara Standing in the name of M/s Management Aid.

v) Hypothecation of unencumbered plant & machinery and other fixed assets of the company. vI) Guarantee of directors and Corporate Guarantee of M/S Management Aids.

(iii) Current maturities of long-term debt Refer Notes 16 - Long-term borrowings for details of security and guarantee.

34 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of Equity shares outstanding during the year.

35 Disclosure as required under Ind AS 19 - Employee Benefits [A] Defined contribution plans:

The Company makes contributions towards provident fund to defined contribution retirement benefit plan for qualifying employees. The provident fund contributions are made to Government administered Employees Provident Fund. Both the employees and the Company make monthly contributions to the Provident Fund Plan equal to a specified percentage of the covered employee''s salary.

The Company recognised Rs. 19.19 Lakhs (P.Y : Rs. 17.44 Lakhs ) for provident fund contributions in the Statement of Profit and Loss.

[B] Defined benefit plan:

The Company makes annual contributions to Employees'' Gratuity Fund managed by LIC, a funded defined benefit plan for qualifying employees. The scheme provides for payment to vested employees as under:

i) On normal retirement / early retirement / withdrawal / resignation: As per the provisions of Payment of Gratuity Act, 1972 with vesting

period of 5 years of service.

ii) On death in service: As per the provisions of Payment of Gratuity Act, 1972 without any vesting period.

The following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at 31st March, 2024.

39 Corporate Social Responsibility (CSR)

As per section 135 of the Companies Act , 2013 , a CSR committee has been formed by the company. The areas for CSR activities are promoting education, art and culture, healthcare, destitute care and rehabilitation and rural development projects as specified in Schedule VII of the Companies Act, 2013.The details of amount required to be spent and actual expenses spent during the year is as under:

40 Operating Segments

(a) Business Segment

The company has only one reportable business segment of manufacturing of steel barrels as the primary reportable business segment for disclosure. The business segments are business of manufacturing of steel barrels.

(b) Geographical Segment

The company has no export during the year and it does not require disclosure as a separate reportable segment of Domestic sales and Export sales.

42 Borrowings secured against current assets

The Company has borrowings from banks secured against Current Assets and quarterly returns filed with the banks are in agreement with the books.

43 Other statutory information :

a) The company do not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

b) The company do not have any transactions with struck off companies.

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

d) The company have not traded or invested in Crypto currency or Virtual Currency during the year.

e) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

f) The company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(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,

g) The company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

h) There are no Scheme of Arrangements that has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

(i) Fair value hierarchy

This section explains the judgments and estimates made in determining the fair values of the financial instruments that are (a) recognized and measured at fair value. To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes mutual funds that have quoted price. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximize the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

There are no transfers between levels 1 and 2 during the year.

The Company’s policy is to recognise transfers into and transfers out of fair value hierarchy levels at the end of the reporting period.

(ii) Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

- the use of quoted market prices or dealer quotes for similar instruments

- the fair value of the remaining financial instruments is determined using discounted analysis (if any).

45 Financial Risk Management

In the course of business, the company is exposed to certain financial risk that could have considerable influence on the Company’s business and its performance. These include credit risk and liquidity risk. This not explain the sources of risk which the entity is exposed to and how the entity manage the 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 review and approves risk management structure and policies for managing risks and monitors suitable mitigating actions taken by the management to minimize potential adverse effects and achieve greater predictability to earnings.

(A) Credit risk Management. :

Credit risk is the risk of financial loss to company if a customer or counter party to a financial instrument fails to meet its contractual obligations.

The company has not made any investments in financial instruments hence company’s financial risk arises from the company’s receivables from customers.

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which company grants credit terms in the normal course of business.

i) Trade receivables:

The Company’s exposure to credit risk is influenced mainly by individual characteristics of each customer. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the creditworthiness of the customer.

The Trade receivables consist of a large number of customers, spread across the country comprising primarily the manufacturers. The average credit period on sales of goods is 70 days. The Company’s trade and other receivables consists of a large number of customers, hence the Company is not exposed to concentration risk.

ii) Cash and Cash equivalents:

As at the year end, the company held cash and cash equivalents of Rs.1032.29 Lacs (As at 31.03.2023 Rs. 0.62 Lacs).

B) Liquidity risk management:

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as and when required.

The Company manages the liquidity risk by maintaining adequate cash reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. "

(i) Maturities of financial liabilities

The tables herewith analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities for: The amounts disclosed in the table are the contractual undiscounted cash flows. Balances due within 12 months equal their carrying balances as the impact of discounting is not significant.

46 Capital Management Risk management

For the purpose of the company''s capital management, equity includes equity share capital and all other equity reserves attributable to the equity holders of the Company. The Company manages its capital to optimise returns to the shareholders and makes adjustments to it in light of changes in economic conditions or its business requirements. The Company''s objectives are to safeguard continuity, maintain a strong credit rating and healthy capital ratios in order to support its business and provide adequate return to shareholders through continuing growth and maximise the shareholders value. The Company funds its operation through internal accruals. The management and Board of Directors monitor the return on capital.

48 Event after reporting Period

The Board of Director recommended final dividend of Rs_per equity share for the financial year ended on 31st March, 2024.

The payment is subject to approval of share holder in ensuing Annual General Meeting of the Company. (Previous year Rs. Nil per equity share).

49 These Financial Statements were authorised for issue in accordance with the resolution of the Board of Directors in its meeting held on 11th May, 2024.

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Mar 31, 2015

1 Rs. 135,373,938/- (P.Y. Rs.7,73,89,017/-) from Bank Secured by first charge by way of Hypothecation of Plant & Machinery & other movable fixed assets of the company and further secured by first charge immovable properties of the company by way of Equitable Mortgage by deposit of Title Deeds and personally guaranteed by the Directors of the Company

2 Rs. 8,15,886/- (P.Y. Rs. 39,31,366/-) Unsecured loan from finance companies/ Banks Secured by Hypothecation of vehicles under hire purchase agreement at average interest rate of 10.43%

3 Rs. 46,65,349/- Unsecured loan from TATA Capital Finance Ltd at interest rate of 13.75% b Loans have been guaranteed by directors or others

A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realized in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31st March 2015 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current year's classification

F) Related Party Disclosure:-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

Key Management Personnel their relatives and Associate Company as on 31.03.2015are asunder:

Sr. No. Director Relative

1 Kiran Shah Geeta K Shah Neha K Shah

Neil Shah

2 Pravin Shah Jigna P. Shah

3 Abjeebhai Patel & Associates AbjeebhaiV.Patel

Bhavnaben Veljibhhai Patel Chandubhai Veljibhai Patel Dhirajbhai Veljibhai Patel Ghanshyambhai V.Patel Globe Containers Heenaben G.Patel Jamanaben V. Patel Laxmiben Dhirajbhai Patel Nandaben Nitinbhai Shagania Pushpaben Chandubhai Patel Shantaben A.Patel Shobhna A. Patel S.K.Industrie Trusha A. Patel

G) Remuneration to Directors:-

The Company has paid remuneration to its Executive Directors, in accordance with the provision of ScheduleV of the Companies Act, 2013 and as per the special resolution passed by the Company in the Annual general meeting which is within the limits specified therein.

H) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India.

I) Current Tax: During the year, Provision is made for taxes on incomesis Rs24,87,170 (Last Year Rs. 14,80,100/-)

J) The Company has subscribed to LIC Group Gratuity Scheme to cover the liability of Gratuity Payable to its employees. The valuation of Present value of Gratuity liability accrued as per valuation of LIC is '66,91,337/ - against which the premium payable is paid by the company and the same is debit to profit & loss account for the year. Balance with LIC as on 31.03.2015 is '40,28,763/-. As regards Leave Encashment the Company follows a policy that all employees avail their leave compulsorily, hence no provision is made on this account for leave encashment.

K) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small .Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

L) Depreciation and Amortization expense for the year have been calculated as per provisions of Schedule II of the Companies Act 2013, wherein all the Fixed Assets having not completed their useful life as on 01.04.2014 and shown at the Original Value have been depreciated on that value for the remaining useful life as per the rate derived from the expected life of assets

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Mar 31, 2014

1. Additional Information:

a Details of security for secured loans

1 Rs. 7,76,08,303 (P.Y. Rs. 4,13,48,469) from Bank Secured by first charge by way of Hypothecation of Plant & Machinery & other movable fixed assets of the company and further secured by first charge immovable properties of the company by way of Equitable Mortgage by deposit of Title Deeds and personally guaranteed by the Directors of the Company

2 Rs. 8,20,477 (P.Y. 16,69,419) Unsecured loan from finance companies/ Banks Secured by Hypothecation of vehicles under hire purchase agreement at average interest rate of 10.43%

3 Rs. 6,17,266 Unsecured loan from TATA Capital Finance Ltd at interest rate of 13 %

3. CONTINGENT LIABILITIES AND COMMITMENTS:

(to the extent not provided for)

a) Contingent Liabilities:

i) Claims against the Company not acknowledged as debts -

ii) Guarantees (Bank) 6,00,000 175,000

iii) Letters of credit 7,64,87,100 39,168,902

iv) Tax demands under disputes -

v) Other monies for which company is contingently liable -

The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

b) Commitments

i) Estimated amount of contracts remaining to be executed 1,53,72,265 on capital account and not provided for (net of advances) - -

ii) Uncalled liability on shares and investments partly paid - -

iii) Other Commitments (Specify nature) - -

c) Arrears of fixed cumulative dividends on preference shares (including tax thereon)

Additional information:

1) Proposed dividends:

Amount Total Amount Total per share per share

a) Amount of dividends proposed - - to be distributed to equity share holders

b) Amount of dividends proposed - - to be distributed to Preference share holders

2) Issues of securities made for a specific purpose and not used as at the balance sheet date: - -

Amount unutilized invested in Amount used for

4. A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realized in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31st March 2014 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current year''s classification

F) Related Party Disclosure:-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

G) Remuneration to Directors:-

Remuneration to Managing Director and Whole time Directors have been paid as per schedule XIII of the Companies Act, 1956, and in according resolution passed by the company in Annual General Meeting.

H) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/ liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India.

I) Current Tax: During the year, Provision is made for taxes on income sis Rs.14,80,100/-(Last Year Rs. 32,12,364/-)

J) The Company has subscribed to LIC Group Gratuity Scheme to cover the liability of Gratuity Payable to its employees. The valuation of Present value of Gratuity liability accrued as per valuation of LIC is Rs. 46,58,452/ - against which the premium payable is paid by the company and the same is debit to profit & loss account for the year. As on 31/03/14 total premium paid by the company as on 31.03.2014 is Rs. 37,81,026/-. As regards Leave Encashment the Company follows a policy that all employees avail their leave compulsorily, hence no provision is made on this account for leave encashment.

K) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small .Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

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Mar 31, 2013

Particulars As at 31-03-2013 As at 31-03-2012

1 CONTINGENT LIABILITIES AND COMMITMENTS:

(to the extent not provided for)

a) Contingent Liabilities:

i) Claims against the Company not acknowledged as debts

ii) Guarantees (Bank) 100,000

iii) Letters of credit 37,927,988

iv) Tax demands under disputes

v) Other monies for which company is contingently liable

The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

b) Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) ii) Uncalled liability on shares and investments partly paid iii) Other Commitments (Specify nature)

OTHER NOTES ON ACCOUNTS:- NOTE:2

A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realized in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31st March 2013 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current year''s classification

F) Related Party Disclosure:-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

G) Remuneration to Directors:-

Remuneration to Managing Director and Whole time Directors have been paid as per schedule XIII of the Companies Act, 1956, and in according resolution passed by the company in Annual General Meeting.

H) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/ liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India.

I) Current Tax: During the year, Provision is made for taxes on incomes is Rs. 32,12,364/- (Last Year Rs. 10,96,725)

J) Due to insufficient profits the company has not made provision for Gratuity as required by Accounting Standard AS - 15 of the Institute of C.A. of India. The liability on this account as on 31st March, 2013 as evaluated by the company is Rs ./- ( upto previous Year Rs. 35,96,489/-) Since the Company follows a policy that all employees avail their leave compulsorily, no provision is made on this account for leave encashment. To the extent of this amount the profit of current year and previous year is shown more.

K) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small .Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

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Mar 31, 2012

A Details of security for secured loans

1 Rs. 2,150,000 secured loan from bank of working Capital Term loan Secured by first charge by way of Hypothecation of Plant & Machinery & other movable fixed assets of the company and further secured by first charge immovable properties of the company by way of Equitable Mortgage by deposit of Title Deeds and personally guaranteed by the Directors of the Company The Term Loan Carries Interest @ 17.25 % p.a.(Floating) payable on monthly basis The installments are also payable at each month end

2 Rs. 32,96,111 Long Term Maturities of finance lease Obligations Secured by Hypothecation of vehicles under hire purchase agreement

The Interest on Finance lease are @ 15% p.a.(Average) payable on monthly basis. The installments are also payable at each month end

a Details of security for secured loans

1 Rs. 4,62,48,469 (P.Y. Rs. 3,36,75,657) includes working Capital Term loan of Rs. 49,00,000 (P.Y. Rs. 78,50,000) from bank along with of working Capital facilities from Bank Secured by first charge by way of Hypothecation of Plant & Machinery & other movable fixed assets of the company and further secured by first charge immovable properties of the company by way of Equitable Mortgage by deposit of Title Deeds and personally guaranteed by the Directors of the Company The Working Capital facilities carry Interest @ 16.75 % p.a. (Floating) Payable on monthly basis

2 Rs. 16,69,419 (P. Y. Rs. 7,88,201) secured loan from finance companies Secured by Hypothecation of vehicles under hire purchase agreement

1.1 CONTINGENT LIABILITIES AND COMMITMENTS:

(to the extent not provided for)

a) Contingent Liabilities:

i) Claims against the Company not acknowledged as debts

ii) Guarantees (Bank) 307,000 100,000

iii) Letters of credit 37,927,988 35,376,669

iv) Tax demands under disputes

v) Other monies for which company is contingently liable The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

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Mar 31, 2011

A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realized in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31st March 2011 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current year's classification.

F) Contingent Liabilities:

Particulars Current Year Previous Year

-Claims against the company not acknowledge as debts. NIL NIL

- Liability in respect of bill discounted NIL NIL

- Liability in respect of letter of Credit opened on behalf of

company by bankers. (Net of Margin). 3,53,76,669 3,76,80,191

- Liabilities in respect of counter Guarantees given to bankers for Guarantees given by them. 1,00,000 15,00,000

G) Related Party Disclosura-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

H) Remuneration to Directors:-

Remuneration to Managing Director and Whole time Directors have been paid as per schedule XIII of the Companies Act, 1956, and in according resolution passed by the company in Annual General Meeting.

I) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/ liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India.

J) Current Tax: During the year, Provision is made for taxes on incomes is Rs. 2,31,000/- (Last Year NIL since there is loss as per books as well as per Income tax Act,1961).

K) Due to insufficient profits the company has not made provision for Gratuity as required by Accounting Standard AS - 15 of the Institute of C.A. of India. The liability on this account as on 31st March, 2011 as evaluated by the company is Rs. 35,96,489/- ( upto previous Year Rs. 31,67,956/-) Since the Company follows a policy that all employees avail their leave compulsorily, no provision is made on this account for leave encashment. To the extent of this amount the profit of current year and previous year is shown more.

L) Due to insufficient profits during the earlier years the company had not made provision for Depreciation of Rs. 52,59,816/-(Previous Year 52,59,816/- ) in total, for the F.Y. 2002-03 and F.Y. 2003-04, on it's fixed assets as per straight line method of Depreciation regularly followed by the Company. This un-provided Depreciation will be provided in Year in which the Company has sufficient profits. The Depreciation, if provided would result in further loss to company and to that extent profit of the company as shown in profit & loss account is more and the value of Net Block in Balance Sheet are shown higher.

M) The management of the company has found slow moving, obsolete and defective stock which relate to year 2002-03 and earlier periods, of Rs.297.72 lacs but have continued to show the same at it's original value in the books of accounts since then. These stocks have been written off during the current year and diminution in value of Stock is shown in Profit and Loss Account and hence now there is no obsolete and defective stock

N) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small .Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been grelied upon by the Auditors.

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Mar 31, 2010

A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realised in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31s1 March 2010 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current years classification.

F) Contingent Liabilities:

Particulars Current Year Previous Year

Claims against the company not acknowledge as debts. NIL NIL

Liability in respect of bill discounted NIL NIL

Liability in respect of letter of Credit opened on behalf of company by bankers. (Net of Margin). 3,76,80,191 3,17,50,841

Liabilities in respect of counter Guarantees given to bankers for Guarantees given by them. 15,00,000 15,00,000

I) Related Party Disclosure:-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

Key Management Personnel their relatives and Associate Company as on 31.03.2010 are as under:

Sr No. Director Relative

1 Kiran Shah Geeta K Shah

2 Pravin Shah Jigna P. Shah

3 Abjeebhai Patel & Associates Neha K Shah

4 Neil Shah

G) Remuneration to Directors:-

Remuneration to Managing Director and Whole time Directors have been paid as per schedule XIII of the Companies Act, 1956, and in according resolution passed by the company in Annual General Meeting.

H) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/ liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India. However, the Deferred Tax Assetsprovision is for two years i.e. Current year as well as past year being Rs. 4,48,553/- and Rs.4,80,903/- respectively. Further that, as the calculation of Deferred Tax Asset/liability, was not made in past years; therefore the comparable figure for the previous year is not given

I) Current Tax: During the year No provision is made for taxes on incomes, since there is loss as per books as well as per Income tax Act,1961.

J) Due to insufficient profits the company has not made provision for Gratuity as required by Accounting Standard AS - 15 of the Institute of C.A. of India. The liability on this account as on 31s March, 2010 as evaluated by the company is Rs. 31,67,956/- ( upto previous Year Rs. 25,97,592/-) Since the Company follows a policy that all employees avail their leave compulsorily, no provision is made on this account for leave encashment. To the extent of this amount the profit of current year and previous year is shown more.

K) Due to insufficient profits during the earlier years the company had not made provision for Depreciation of Rs. 52,59,816/-(Previous Year 52,59,816/- ) in total, for the F.Y. 2002-03 and F.Y. 2003-04, on its fixed assets as per straight line method of Depreciation regularly followed by the Company. This unprovided Depreciation will be provided in Year in which the Company has sufficient profits. The Depreciation, if provided would result in further loss to company and to that extent profit of the company as shown in profit & loss account is more and the value of Net Block in Balance Sheet are shown higher.

L) The management of the company has found slow moving, obsolete and defective stock which relate to year 2002-03 and earlier periods, of Rs.297.72 lacs but have continued to show the same at its original value in the books of accounts since then. These stocks are valued at Rs. 20.00 lacs approx. at scrap value as per valuation of auditors and due to this the total value of inventory is higher. The Company is in process of disposing off the same to its optimum value so that the loss is minimised. As the result of non-providing of diminution in value of these items the Profit is higher and also the value of the inventory is higher by that amount.

M) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small,Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

N) Additional information pursuant to para 3 to 4 of part II of Schedule VI of the Companies Act, 1956.

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Mar 31, 2009

A) Contingent Liabilities:

Particulars Current Year Previous Year

Claims against the company not acknowledge as debts. NIL NIL

Liability in respect of bill discounted NIL NIL

Liability in respect of letter of Credit opened on behalf of company by bankers. (Net of Margin). 3,17,50,841 1,94,84,713

Liabilities in respect of counter Guarantees given to bankers for Guarantees given by them. 15,00,000 5,00,000

B) During the year, the Company has not accounted for Deferred Tax in accordancs with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India, which will effect the figure of net profits and accumulated profit in reserve and surplus to that extent

C) Current Tax : During the year No provision is made for taxes on incomes, since there is loss as per books as well as per Income tax Act,1961. However, provision is made for Fringe Benefi: Tax..

D) Due to insufficient profits the company has not made provision for Gratuity as required by Accounting Standard AS - 15 of the Institute ol C.A. of India. The liability on this account as ot 31s1 March, 2009 as evaluated by the company is Rs. 25,97,592/- and upto previous Year was Rs. 18,37,645/- Since the Company follows a policy that all employees avail their leave compulsorily, no provision is made on this account for leave encashment. .To the extent of this amount the profit of current year and previous year is shown more.

E) Due to insufficient profits during the earlier years the company had not made prov sion for Depreciation of Rs. 52,59,816/-(Previous Year 52,59,816/-) in total, for the F.Y. 2002-03 and FY. 2003-04, on its fixed assets as per straight line method of Depreciation regularly followed by the Company. During the Last year, out of the unprovided depreciation, the Company has made provision of Rs. 11,99,075/- being unprovided depreciation of all assets except for Plant & Machinery for F.Y.2003-04 and the ba ance depreciation of Rs. 52,59,816/- (P.Y. 52,59,816/-) still remains unprovided. This unprovided Depreciation will be provided in Year in which the Company has sufficient profits. The Depreciation, if provided would result in further loss to company and to that extent profit of the company as shown in profit & loss account is more and the value of Net Slock in Balance Sheet are shown higher.

F) The management of the company has found slow moving, obsolete and defective stock which relate to year 2002-03 and earlier periods, .of Rs.297.72 lacs but have continued to show the same at its original valueinthebooksof accounts since then. These stocks are valued at Rs. 20.00 lacs approx. at scrap value as per valuation of auditors and due to this the total value of inventory is higher. The Company is in process of disposing off the same to its optimum value so that the loss is minimised. As the result of non -providing of diminution in value of these items the Profit is higher and also the value of the inventory is higher by that amount.

G) The Company has made claims from materials suppliers in past for discounts and rate difference and has also made claims for freight charges from customers which relate to years 2002-03 and earlier periods and are not yet accepted by other parties. The same are still continued to be shown as receivable and considered good.

H) The Company has asked its suppliers to give information about the application of Small Scale Industries Undertaking definition to them as per clause (i) of section 3 of the Industries (Development and Regulation) Act, 1951. However, in absence of this information, the details required regarding dues to such S.S.I, units is not given under current liabilities.

I) ADDITIONAL INFORMATION PURSUANT TO PART-IV OF SCHEDULE-V1 OF THE COMPANIES ACT, 1956.