Notes to Accounts of Gujarat Intrux Ltd.

Mar 31, 2024

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below:

a. Income taxes

The Company''s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions

b. Defined benefit obligation

The costs of providing post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 19 ''Employee benefits'' over the period during which benefit is derived from the employees'' services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates.

c. Fair value measurement of Financial Instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.

d. Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

e) Changes in the fair value of plan assets represen ng reconcilia on of the opening and closing balances thereof are as follows:

As the company has no funded plan and hence opening and closing fair value in plan assets and changes thereof is NIL

Dues to Micro and Small Enterprises have been determined to the extent such par es have beeniden fied on the basis of informa on collected by the Management.This has been relied upon by the auditors.

(8) Con ngentLiabili es and commitments

In the opinion ofthe board, con ngentliabili es is NIL.

(9) As per Ind AS - 23 "Borrowing Costs", the borrowing cost has been charged to Profit and Loss statement.

None ofthe borrowing costs have been capitalized during the year.

Proposed dividend:

The Board of Directors at its mee ng held on 27th May, 2024 have recommended a payment of final dividend for the year ended 31st March, 2024 and approved in forthcoming AGM.

(13) Previous year''s figures have been regrouped wherever necessary to make them comparable with those of the current year.

(14) All the tle deeds of Immovable Proper es held in the name of the Company.

(15) The Company has not granted any loans to promoters, directors, KMPs and the related par es either severally or jointly with any other person in the nature of Loans and Advances during the year.

(16) Company has no ongoing working capital limit from any bank as on 31st March, 2024.

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Mar 31, 2023

j) Provisions and Contingencies

The Company recognizes provisions when a present obligation (legal or constructive) as a result of a past event exists and it is probable that an outflow of resources embodying economic benefits will be required to settle such obligation and the amount of such obligation can be reliably estimated.

If the effect of time value of money is material, provisions are discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognized as a finance cost.

A disclosure for a contingent liability is made when there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources embodying economic benefits or the amount of such obligation cannot be measured reliably. When there is a possible obligation or a present obligation in respect of which likelihood of outflow of resources embodying economic benefits is remote, no provision or disclosure is made.

k) Cash and Cash Equivalents

Cash and Cash equivalents for the purpose of Cash Flow Statement comprise cash and cheques in hand, bank balances, demand deposits with banks where the original maturity is three months or less and other short term highly liquid investments.

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 and they are recognized in the period in which the employee renders the related service. The Company recognizes the undiscounted amount of short term employee benefits expected to be paid in exchange for services rendered as a liability (accrued expense) after deducting any amount already paid.

Post-Employment Benefits:

Defined Benefit plans:

i) Provident Fund scheme:

Contribution as required by the statute made to the Government provident fund is debited to Profit and loss statement.

ii) Gratuity scheme:

The cost of providing defined benefits is determined using the Projected Unit Credit method with actuarial valuations being carried out at each reporting date. The defined benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as reduced by the fair value of plan assets, if applicable. Any defined benefit asset (negative defined benefit obligations resulting from this calculation) is recognized representing the present value of available refunds and reductions in future contributions to the plan.

All expenses represented by current service cost, past service cost, if any, and net interest on the defined benefit liability / (asset) are recognized in the Statement of Profit and Loss. Remeasurements of the net defined benefit liability / (asset) comprising actuarial gains and losses and the return on the plan assets (excluding amounts included in net interest on the net defined benefit liability/asset), are recognized in Other Comprehensive Income. Such remeasurements are not reclassified to the Statement of Profit and Loss in the subsequent periods.

The Company presents the above liability/(asset) as current and non-current in the Balance Sheet as per actuarial valuation by the independent actuary.

m) Borrowing Cost

Borrowing cost includes interest, amortization of ancillary costs incurred in connection with the arrangement of borrowings and exchange differences arising from foreign currency borrowings to the extent they are regarded as an adjustment to the interest cost.

Borrowing costs, if any, directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalized, if any. All other borrowing costs are expensed in the period in which they occur.

n) Segment Reporting

The Chairman and Managing Director of the Company has been identified as the Chief Operating Decision Maker (CODM) as defined by IND AS 108, " Operating Segments". The Company operates in one segment only i.e. " Manufacturing of Steel, Non - Alloys Steel and Alloys Steel Casting". The CODM evaluates performance of the Company based on revenue and operating income from "Manufacturing of Steel, Non - Alloys Steel and Alloys Steel Casting". Accordingly, segment information has not been seperately disclosed.

o) Events after Reporting date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

p) Earnings per share

Basic EPS is calculated in accordance with Ind AS - 33 '' Earning per Share" by dividing the profit / loss for the year attributable to ordinary equity holders of the Company by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated in accordance with Ind AS - 33 '' Earning per Share" by dividing the profit / loss attributable to ordinary equity holders of the parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary shares that would be issued on conversion of all the dilutive potential ordinary shares into ordinary shares.

q) Recent accounting pronouncements and its effect on financials Ind AS 116 Leases :

On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 116, Leases. Ind AS 116 will replace the existing leases Standard, Ind AS 17 Leases, and related Interpretations. The Standard sets out the principles for the recognition, measurement, presentation and disclosure of leases for both parties to a contract i.e., the lessee and the lessor. Ind AS 116 introduces a single lessee accounting model and requires a lessee to recognize assets and liabilities for all leases with a term of more than twelve months, unless the underlying asset is of low value. Currently, operating lease expenses are charged to the statement of Profit & Loss. The Standard also contains enhanced disclosure requirements for lessees. Ind AS 116 substantially carries forward the lessor accounting requirements in Ind AS 17.

The effective date for adoption of Ind AS 116 is annual periods beginning on or after April 1, 2019. The standard permits two possible methods of transition:

1> Full restrospective - Restrospectively to each prior period presented applying Ind AS 8 Accounting policies,Changes in accounting estimates and errors

2> Modified restrospective - Restrospectively, with the cumulative effect of initially applying the standard recognized at the date of initial application

Under modified retrospective approach, the lessee records the lease liability as the present value of the remaining lease payments, discounted at the incremental borrowing rate and the right of use asset either as:

> Its carrying amount as if the standard had been applied since the commencement date, but discounted at lessee''s incremental borrowing rate at the date of initial application or

> An amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments related to that lease recognized under Ind AS 17 immediately before the date of initial application.

Effective April 01, 2019, the company has adopted Ind AS 116 ''Leases'' using modified restropective appraoch. The adoption of the standard did not have any material impact on the financial results.

Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments

On March 30, 2019, Ministry of Corporate Affairs has notified Ind AS 12 Appendix C, Uncertainty over Income Tax Treatments which is to be applied while performing the determination of taxable profit (or loss), tax bases, unused tax losses, unused tax credits and tax rates, when there is uncertainty over income tax treatments under Ind AS 12. According to the appendix, companies need to determine the probability of the relevant tax authority accepting each tax treatment, or group of tax treatments, that the companies have used or plan to use in their income tax filing which has to be considered to compute the most likely amount or the expected value of the tax treatment when determining taxable profit (tax loss), tax bases, unused tax losses, unused tax credits and tax rates.

The standard permits two possible method of transition :

1> Full restrospective approach - under this approach,Appendix C will be applied restrospectively to each prior reporting period presented in accordance with Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors, without using hindsight

2> Restrospectively, with the cumulative effect of initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives

Effective April 01, 2019, the company has adopted Ind AS 12 Appendix C using Restrospectively, with the cumulative effect of initially applying Appendix C recognized by adjusting equity on initial application, without adjusting comparatives. The adoption of the standard did not have any material impact on the financial results.

The Company has elected to exercise the option permitted under section 115BAA of the Income Tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019. Accordingly, the Company has recognised provision for the income tax for the year ended 31.03.2020 and re-measured its Deferred Tax Assets based on rate prescribed in the said section.

2.4 Key accounting estimates and judgements

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Difference between actual results and estimates are recognised in the period in which the results are known / materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

The preparation of the Company''s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods Critical accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below:

a. Income taxes

The Company''s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/recovered for uncertain tax positions

b. Defined benefit obligation

The costs of providing post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 19 ''Employee benefits'' over the period during which benefit is derived from the employees'' services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates.

c. Fair value measurement of Financial Instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions.

d. Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset''s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company''s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset.

(3) Employee benefits

[i) The company has recognized the following amounts in the profit and loss statement towards contributions to Provident fund

FY 2022-23 FY 2021-22

Contribution towards provident fund: Rs. 14 (lacs) Rs. 16 (lacs)

[ii) The gratuity benefits have been valued in accordance with the rules of gratuity framed by the Company. The Company reports gratuity defined benefit plan in accordance with Ind AS-19 "Employee Benefits"

Defined Benefit Obligations: Gratuity benefit

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Mar 31, 2018

(1) Company Background

Gujarat Intrux Limited (the ‘Company’) is a public limited Company domiciled and incorporated in India under the Companies Act. The registered office of the Company is located at Survey No: 84 / P, 17 k.m. Rajkot - Gondal Road, Shapar, Rajkot - 360024

The Company is engaged in the business of manufacturing of Steel casting, Non - Alloys casting Steel, and Alloys Steel Casting.

(2) Significant accounting policies and key accounting estimates and judgements

2.1 Basis of preparation of financial statements

These financial statements are the separate financial statements of the Company (also called standalone financial statements) prepared in accordance with Indian Accounting Standards (‘Ind AS’) notified under Section 133 of the Companies Act, 2013, read together with the Companies (Indian Accounting Standards) Rules, 2015.

For all periods up to and including the year ended 31^st March, 2017, the Company had prepared its financial statements in accordance with Accounting Standards notified under the Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP’). Detailed explanation on how the transition from previous GAAP to Ind AS has affected the Company’s Balance Sheet, financial performance and cash flows is given under Note - 27(12)

These financial statements have been prepared and presented under the historical cost convention, on the accrual basis of accounting except for certain financial assets and financial liabilities that are measured at fair values at the end of each reporting period, as stated in the accounting policies set out below. The accounting policies have been applied consistently over all the periods presented in these financial statements.

The financial statements are presented in Indian rupee and all values are rounded to the nearest rupee,except when otherwise indicated.

2.2 Current / Non-Current Classification

Any asset or liability is classified as current if it satisfies any of the following conditions:

- the asset/liability is expected to be realized/settled in the Company’s normal operating cycle;

- the asset is intended for sale or consumption;

- the asset/liability is held primarily for the purpose of trading;

- the asset/liability is expected to be realized/settled within twelve months after the reporting period;

- the asset is cash or cash equivalent unless it is restricted from being exchanged or used to settle a liability for at least twelve months after the reporting date;

- in the case of a liability, the Company does not have an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

All other assets and liabilities are classified as non-current.

Operating cycle

Operating cycle of the Company is the time between the acquisition of assets for processing and their realisation in cash or cash equivalents. As the Company’s normal operating cycle is not clearly identifiable, it is assumed to be twelve months.

2.3 Key accounting estimates and judgements

The estimates and judgements used in the preparation of the financial statements are continuously evaluated by the Company and are based on historical experience and various other assumptions and factors (including expectations of future events) that the Company believes to be reasonable under the existing circumstances. Difference between actual results and estimates are recognised in the period in which the results are known / materialised.

The said estimates are based on the facts and events, that existed as at the reporting date, or that occurred after that date but provide additional evidence about conditions existing as at the reporting date.

The preparation of the Company’s financial statements requires the management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods Critical accounting estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below:

(a) Income taxes

The Company’s tax jurisdiction is India. Significant judgements are involved in estimating budgeted profits for the purpose of paying advance tax, determining the provision for income taxes, including amount expected to be paid/ recovered for uncertain tax positions

(b) Defined benefit obligation

The costs of providing post-employment benefits are charged to the Statement of Profit and Loss in accordance with Ind AS 19 ‘Employee benefits’ over the period during which benefit is derived from the employees’ services. The costs are assessed on the basis of assumptions selected by the management. These assumptions include salary escalation rate, discount rates, expected rate of return on assets and mortality rates.

(c) Fair value measurement of Financial Instruments

When the fair values of financials assets and financial liabilities recorded in the Balance Sheet cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques, including the discounted cash flow model, which involve various judgements and assumptions. d. Property, Plant and Equipment

Property, Plant and Equipment represent a significant proportion of the asset base of the Company. The charge in respect of periodic depreciation is derived after determining an estimate of an asset’s expected useful life and the expected residual value at the end of its life. The useful lives and residual values of Company’s assets are determined by the management at the time the asset is acquired and reviewed periodically, including at each financial year end. The lives are based on historical experience with similar assets as well as anticipation of future events, which may impact their life, such as changes in technical or commercial obsolescence arising from changes or improvements in production or from a change in market demand of the product or service output of the asset. of equity shares outstanding during the year.

(3) Employee benefits

(i) The company has recognized the following amounts in the profit and loss statement towards contributions to Provident fund

(ii) The gratuity benefits have been valued in accordance with the rules of gratuity framed by the Company.The Company reports gratuity defined benefit plan in accordance with Ind AS -19 “Employee Benefits”

Defined Benefit Obligations: Gratuity benefit

d) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:

As the company has no funded plan and hence opening and closing fair value in plan assets and changes thereof is NIL

e) The major categories of plan assets as a percentage of total plan assets are as follows:

The company has no funded plan.

f) Principal actuarial assumptions :

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The above information is as certified by the actuary and relied upon by the auditors.

(3) Amount due to Micro, Small and Medium scale enterprises unit

There is no Micro, small and medium scale enterprise, to whom the company owes dues which are outstanding for more than 45 days as at March 31, 2018. This information as required to be disclosed under the Micro, Small and Medium Scale Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company

(4) Contingent Liabilities and commitments

In the opinion of the board, contingent liabilities is NIL.

(5) ” As per Ind AS - 23 ““ Borrowing Costs”“, the borrowing cost has been charged to Profit and Loss statement. None of the borrowing costs have been capitalized during the year.”

(6) First time adoption of Ind AS

For all periods up to and including the year ended 31st March, 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act, 2013, read together with Rule 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP’). This note explains the principal adjustments made by the Company in restating its financial statements prepared under Previous GAAP for the following :

a. Balance Sheet as at 1st April, 2016 (Transition date);

b. Balance Sheet as at 31st March, 2017;

c. Statement of Profit and Loss for the year ended 31st March, 2017; and

d. Statement of Cash flows for the year ended 31st March, 2017.

6.1Exemptions availed :

Ind AS 101- First-time adoption of Indian Accounting Standards, allows first-time adopters, exemptions from the retrospective application and exemption from application of certain requirements of other Ind AS. The Company has availed the following exemptions as per Ind AS 101:

1 The Company has elected to consider the carrying value of all its items of property, plant and equipment and intangible assets recognised in the financial statements prepared under Previous GAAP and use the same as deemed cost in the opening Ind AS Balance Sheet.

2 For financial instruments, wherein fair market values are not available (viz. interest free and below market rate security deposits or loans) the Company has elected to adopt fair value recognition prospectively to transactions entered after the date of transition.

6.2Mandatory exceptions:

Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP, unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 and March 31, 2017 are consistent with the estimates as at the same date made in the conformity with previous GAAP .

6.3 Reconciliations between previous GAAP and Ind AS

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from erstwhile Indian GAAP to Ind AS.

a) Reconciliation of Equity as at 31st March, 2017 and 1st April, 2016_

b) Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017

c) Effect of Ind AS adoption on the Statement of Cash Flow for the year ended 31st March, 2017

d) Notes to the reconciliation of equity as at April 1, 2016 and March 31, 2017 and total comprehensive income for the year ended March 31, 2017

1. Re-measurement gain / loss on defined benefit plan

In the financial statements prepared under Previous GAAP, remeasurement benefit of defined plans (gratuity), arising primarily due to change in actuarial assumptions was recognised as employee benefits expense in the Statement of Profit and Loss. Under Ind AS, such remeasurement benefits relating to defined benefit plans is recognised in OCI as per the requirements of Ind AS 19- Employee benefits. Consequently, the related tax effect of the same has also been recognised in OCI.

For the year ended 31st March, 2017, remeasurement of gratuity liability resulted in a net benefit of Rs. 530090 which has now been removed from employee benefits expense in the Statement of Profit and Loss and recognised seperately in OCI. This has resulted in increase in employee benefits expense by Rs. 530090 and gain in OCI by Rs. 530090 for the year ended 31st March, 2017. Consequently, tax effect of the same amounting to Rs.175264 is also recognised separately in OCI.

The above changes do not affect Equity as at date of transition to Ind AS and as at 31st March, 2017. However, Profit before tax and profit for the year ended 31st March, 2017 decreased by Rs. 530090.

2. Adjustment in relation to application of Ind AS 2

For the year ended 31st March, 2017, due to application of Ind AS -2 “Inventories”, value of inventories of finished goods and work-in-progress decreases by Rs. 57537 (net).

3. Retained earnings

Retained earnings as at April 1, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

4. Classification & Presentation Revenue from sale of products:

In the financial statements prepared under Previous GAAP, revenue from sale of products was presented net of excise duty. However, under Ind AS, revenue from sale of products includes excise duty. Excise duty expense amounting to Rs.17652416 is presented separately on the face of the Statement of Profit and Loss for the year ended 31st March, 2017.

The above changes do not affect equity as at date of transition to Ind AS, profit after tax for the year ended 31st March, 2017 and Equity as at 31st March, 2017

5. Effect of Ind AS adoption on statement of Cash flow for the year ended 31st March, 2017

In the financial statements prepared under Previous GAAP, cash and cash equivalents includes term deposits with bank. However, under Ind AS, such cash and cash equivalents includes highly liquid demand deposits with banks where the original maturity is three months or less and other short term highly liquid investments.

(7) Previous year’s figures have been regrouped wherever necessary to make them comparable with those of the current year.

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Mar 31, 2015

(1) Previous year's figures have been regrouped wherever necessary to make them comparable with those of the current year.

(2) The financial statements have been prepared under the historical cost convention on an accrual basis in compliance with all material aspect of the Accounting Standards notified by Companies Accounting Standard Rules, 2006 (as amended), and the relevant provisions of the Companies Act, 2013. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

(3) Current assets, loans and advances

In the opinion of the Board the value on realization of current assets, loans and advances if realized in the ordinary course of the business shall not be less than the amount, which is stated, in the current year's balance sheet. The provision for all known liabilities are adequate and not in excess of the amount considered reasonably necessary.

(4) Amount due to Micro, Small and Medium scale enterprises unit

There is no Micro, small and medium scale enterprise, to whom the company owes dues which are outstanding for more than 45 days as at March 31, 2015. This information as required to be disclosed under the Micro, Small and Medium Scale Enterprise Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the company.

(5) Contingent Liabilities

In the opinion of the board, contingent liabilities is NIL.

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Mar 31, 2014

Mode of Valuation

Raw materials, stores, spares, tools and packing materials are valued at cost. Finished stock are valued at lower of the cost or net realizable value. Work-In-Process is valued at the estimated prime cost of production. Cost is inclusive of excise and other duties and taxes.

Notes-1

NOTES FORMING PART OF ACCOUNTS 2013-2014

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

2. The financial statements have been prepared under the historical cost convention on an accrual basis in compli- ance with all material aspect of the Accounting Standards notified by Companies Accounting Standards Rules, 2006 (as amended), and the relevent provisions of the Companies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3. Current Assets, Loans and Advances

In the opinion of the Board the value on realization of current assets, loans and advances if realized in the ordinary course of the business shall not be less than the amount, which is stated, in the current year''s balance sheet. The provision for all known liabilities is adequate and not in excess of the amount considered reasonably necessary.

4. Amount Due to Micro, Small & Medium Scale Enterprises Unit

There are no micro, small & medium scale enterprise, to whom the company owes dues, which are outstanding for more than 45 days at March 31, 2014. This information as required to be disclosed under the Micro, small and Medium Enterprise Developments Act, 2006 has been determined to the extent such parties have been identi- fied on the basis of information available with the Company.

5. Contingent Liabilities

In the opinion of the board contingent liability is NIL.

6. Employee Benefits

i) The Company has recognized the following amounts in the profit and loss statement towards contributions to Provident Fund :

Contribution towards Provident Fund : Rs. 508,563/-

ii) The Gratuity Benefits have been valued in accordance with the rules of Gratuity framed by the company. Defined Benefit Obligation :- Gratuity Benefit.

d) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:

As the company has no funded plan and hence Opening and Closing fair value in plan assets and changes in thereof is NIL.

e) The major categories of plan assets as a percentage of total plan assets are as follows:

The company has no funded plan.

f) Principal actuarial assumptions at the Balance Sheet date (expressed in weighted averages):

Discount Rate : 9.31%

Expected return on plan assets : -

Proportion of employees opting for early retirement : -

Annual increase in salary costs : 6.00%

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The above information is as certified by the actuary and relied upon by the auditors.

7. Related Party Disclosure under Accounting Standard 18 Issued by the Institute of Chartered Accountants (a) List of Related Parties and Relationships :

Sr. No. Name Nature of Relationship

01 Raman D. Sabhaya Chairman cum Non Executive Director

02 Amrutlal J. Kalaria Non-Executive Director

03 Dilip M. Dudhagara Non-Executive Director

04 Madhubhai S. Patolia Non-Executive Director

05 Bharat M.Choksi Non-Executive Director

06 Yogendra C. Anarkat Independent Director

07 Gordhan K. Sorthia Independent Director

08 Ramesh M. Bhimani Independent Director

09 Gajanan R. Kamat Independent Director

10 Intricast Private Limited Other Related Party

11 Intolcast Private Limited Other Related Party

8. Based on the guidance principles given in Accounting Standard on "Segment Reporting" (AS-17) issued by the Institute of Chartered Accountants of India, the Company''s primary business segment is manufacturing of steel, non alloys steel and alloys steel casting. As the Company''s business activity falls within a single primary business segment, the disclosure requirements of AS-17 in this regards are not applicable.

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Mar 31, 2013

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

2. The financial statements have been prepared under the historical cost convention on an accrual basis in compliance with all material aspect of the Accounting Standards notified by Companies Accounting Standards Rules, 2006 (as amended). and the relevent provisions of the Compnies Act, 1956. The accounting policies have been consistently applied by the Company and are consistent with those used in the previous year.

3. Current Assets, Loans and Advances

In the opinion of the Board the value on realization of current assets, loans and advances if realized in the ordinary course of the business shall not be less than the amount, which is stated, in the current year''s balance sheet. The provision for all known liabilities is adequate and not in excess of the amount considered reasonable necessary.

4. Amount Due to Micro, Small & Medium Scale Enterprises Unit

There are no micro, small & medium scale enterprise, to whom the company owes dues, which are outstanding for more than 45 days at March 31, 2013. This information as required to be disclosed under the Micro, small and Medium Enterprise Developments Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

5. Contingent Liabilities

In the opinion of the board contingent liability is NIL.

6. Based on the guidance priciples given in Accounting Standard on "Segment Reporting" (AS-17) issued by the Institute of Chartered Accountants of India, the Compny''s primary business segment is manufacturing of steel, non alloys steel and alloys steel casting. As the Company''s business activity falls within a single primary business segment, the disclosure requirements of AS-17 in this regards are not applicable.

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Mar 31, 2012

1. Previous Year's Figures

Previous Year's Figures have been regrouped, rearranged and reclassified whenever necessary to make them confirm to this year's classification.

2. Company's Act Requirement Under Section 217(2A)

Expenditure incurred for employee as specified in Section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 is NIL.

3. Provisions

Company has made all necessary provisions and the amounts are reasonably adequate.

4. Current Assets, Loans & Advances

In the opinion of the Board the Value on realization of Current Assets. Loans & Advances if realized in the ordinary course of the business shall not be less than the amount, which is stated, in the current year's Balance Sheet, the provision for all known liabilities is adequate and not in excess of the amount considered reasonably necessary.

5. Amount Due to Micro, Small & Medium Scale Enterprises Unit

There are no Micro, Small & Medium Scale Enterprise, to whom the Company owes dues, which are outstanding for more than 45 days at March 31, 2012. This information is required to be disclosed under the Micro, small and Medium Enterprise Developments Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6. Contingent Liabilities

In the Opinion of the Board Contingent Liability is NIL.

7. Employee Benefits

i) The Company has recognized the following amounts in the Profit & Loss Account towards contributions to Provident Fund :

Contribution towards Provident Fund : Rs. 573,173/-

ii) The Gratuity Benefits have been valued in accordance with the rules of Gratuity framed by the company. Defined Benefit Obligation-Gratuity Benefit as per revised Accounting Standards 15.

d) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:

As the company has no funded plan so Opening and Closing fair value in plan assets and changes in thereof is NIL.

e) The major categories of plan assets as a percentage of total plan assets are as follows:

The company has no funded plan.

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The above information is as certified by the actuary and relied upon the auditors.

8. Segmental Information:

The Company has only one segment as its total investment is in Sand Castings only.

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Mar 31, 2010

1. Previous Years Figures

Previous Years Figures have been regrouped, rearranged and reclassified whenever necessary to make them confirm to this years classification.

2. Directors Remuneration

3. Auditors Remuneration

4. Companies Act Requirement Under Section 217(2A)

Expenditure incurred for employee as specified in section 217(2A) of the Companies Act, 1956 read with the Companies (Particulars of Employees) Rules, 1975 is NIL.

5. Foreign Exchange Earning & Out Go

6. Provisions

Company has made all necessary provisions and the amounts are reasonably adequate.

7. Current Assets, Loans & Advances

In the opinion of the Board the Value on realization of Current Assets, Loans & Advances if realized in the ordinary course of the business shall not be less than the amount, which is stated, in the current years Balance Sheet, The provision for all known liabilities is adequate and not in excess of the amount considered reasonably necessary.

8. Amount Due to Micro, Small and Medium Scale Enterprises Unit

There is no Micro, Small and Medium Scale Enterprise, to whom the Company owes dues, which are outstanding for more than 45 days as at March 31, 2010. This information is required to be disclosed under the Micro , Small and Medium Scale Enterprise Developments Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company,

9. Contingent Liabilities

In the Opinion of the Board Contingent Liability is NIL.

10. Employee Benefits

i) The Company has recognized the following amounts in the Profit & Loss Account towards contributions to Provident Fund :

Contribution towards Provident Fund : Rs. 12,95,137 ii) The Gratuity Benefits have been valued in accordance with the rules of Gratuity framed by the company.

Defined Benefit Obligation - Gratuity Benefit

d) Changes in the fair value of plan assets representing reconciliation of the opening and closing balances thereof are as follows:

As the company has no funded plan so Opening and Closing fair value in plan assets and changes in thereof NIL.

e) The major categories of plan assets as a percentage of total plan assets are as follows:

The company has no funded plan.

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The above information is as certified by the actuary and relied upon the auditors.

11. Statement of Licensed & Installed Capacity

12. Details in Respect of Raw Material & Process Material Consumed

13. Earning Per Share

14. Segmental Information:

Notes on Segmental Reporting

(1). The Company has identified the geographical segment as primary segment, Companys Domestic sales is 70.00% of total sales, so it becomes the reportable segment.

(2). Items of Expenses, Provision for Taxation that is not directly relatable to geographical segment are disclosed in total column.

15. Related Party Information

16. Deferred Tax Provision:

As per the Accounting Standard (As-22) on Accounting for Taxes on Income issued by Institute of Chartered Accountant of India (ICAI) the Deferred Tax Liability as at 31st March,2010 comprises of the following:-