Notes to Accounts of Kalyani Forge Ltd.

Mar 31, 2025

2.16 Provisions and Contingent Liabilities

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

does not recognize a contingent liability
but discloses its existence in the financial
statements. A disclosure of contingent liability
is made where there is a possible obligation or
a present obligation that may, but probably will
not require an outflow of resources.

2.17 Government grants

Government grants are recognised where there
is reasonable assurance that the grant will be
received and all attached conditions will be
complied with. When the grant or subsidy relates
to revenue, it is recognized as income on a
systematic basis in the statement of profit and
loss over the periods necessary to match them
with the related costs, which they are intended
to compensate. Where the grant relates to an
asset, it is recognized as deferred income and
is allocated to statement of profit and loss over
the periods and in the proportions in which
depreciation on those assets is charged.

When loans or similar assistance are provided
by governments or related institutions, with
an interest rate below the current applicable
market rate, the effect of this favourable interest
is regarded as a government grant. The loan or
assistance is initially recognised and measured
at fair value and the government grant is
measured as the difference between the initial
carrying value of the loan and the proceeds
received. The loan is subsequently measured
as per the accounting policy applicable to
financial liabilities.

2.18 Taxation
Current Income Tax

Current income tax assets and l iabil ities
are measured at the amount expected to
be recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted
or substantively enacted, at the reporting date
in the countries where the Company operates
and generates taxable income.

Current tax is recognized in statement of profit
and loss, except when it relates to items that are
recognized in Other Comprehensive income
or Equity, in which case Current Tax is also
recognized in Other Comprehensive income
or Equity.

Management periodically evaluates positions
taken in the tax returns with respect to situations

in which applicable tax regulations are subject
to interpretation and establishes provisions
where appropriate.

Deferred Tax

Deferred tax is provided using the liability method
on temporary differences between the tax
bases of assets and liabilities and their carrying
amounts for financial reporting purposes at the
reporting date.

Deferred tax liabilities are recognised for all
taxable temporary differences, except:

(i) When the deferred tax liability arises from
the initial recognition of goodwill or an
asset or liability in a transaction that is not
a business combination and, at the time
of the transaction, affects neither the
accounting profit nor taxable profit or loss.

(ii) In respect of taxable temporary
differences associated with investments
in subsidiaries, associates and interests
in joint ventures, when the timing of the
reversal of the temporary differences can
be controlled and it is probable that the
temporary differences will not reverse in the
foreseeable future.

Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted
at the reporting date.

Deferred tax is recognized in statement of profit
and loss, except when it relates to items that are
recognized in Other Comprehensive income
or Equity, in which case Deferred Tax is also
recognized in Other Comprehensive income
or Equity.

2.19 Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a
financial liability or equity instrument of another
entity. All financial assets are recognised initially
at fair value plus, in the case of financial assets
not recorded at fair value through profit or loss,
transaction costs that are attributable to the
acquisition of the financial asset. Purchases or
sales of financial assets that require delivery
of assets within a time frame established by
regulation or convention in the market place

(regular way trades) are recognised on the
trade date, i.e., the date that the Company
commits to purchase or sell the asset.

2.20 CRITICAL ACCOUNTING ESTIMATES AND
JUDGEMENTS

The preparation of financial statements requires
the use of accounting estimates which, by
definition, will seldom equal the actual results.
This note provides an overview of the areas
that involved a higher degree of judgement
or complexity, and of items which are more
likely to be materially adjusted due to estimates
and assumptions turning out to be different
than those originally assessed. Detailed
information about each of these estimates
and judgements is included in relevant notes
together with information about the basis of
calculation for each affected line item in the
financial statements.

The areas involving critical estimates or
judgements are:

Tax expense Note 35

Estimation of contingent liabilities refer Note 32.1

Estimates and judgements are continually
evaluated. They are based on historical
experience and other factors, including
expectations of future events that may have
a financial impact on the Company and
that are believed to be reasonable under
the circumstances.

Estimates and judgements are continually
evaluated. They are based on historical
experience and other factors, including
expectations of future events that may have
a financial impact on the Company and
that are believed to be reasonable under
the circumstances.

2.21 Recent Pronouncements

The Ministry of Corporate Affairs has vide
notification dated 31^st March 2023 notified
Companies (Indian Accounting Standards)
Amendment Rules, 2023 (the ‘Rules'') which
amends certain accounting standards, and are
effective 1^st April 2023. The Rules predominantly
amend Ind AS 12, Income taxes, and Ind AS 1,
Presentation of financial statements. The other
amendments to Ind AS notified by these rules
are primarily in the nature of clarifications.
These amendments are not expected to have a

material impact on the Company in the current
or future reporting periods and on foreseeable
future transactions. Specifically, no changes
would be necessary as a consequence of
amendments made to Ind AS 12 as the group''s
accounting policy already complies with the
now mandatory treatment.

2.22 Additional regulatory information
required by Schedule III

i Wilful Defaulter

None of the entities in the group have been
declared wilful defaulter by any bank or
financial institution or government or any
government authority.

ii Relationship with struck off Companies

The group has no transactions with the
companies struck off under Companies
Act, 2013 or Companies Act, 1956.

iii Details of benami property held

No proceedings have been initiated on or
are pending against the group for holding
benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of
1988) and Rules made thereunder.

iv Compliance with number of layers of
companies

The group has complied with the number
of layers prescribed under the Companies
Act, 2013.

v Compliance with approved
scheme(s) of arrangements

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

vi Utilisation of Borrowed funds and
Share premium

No funds have been advanced or loaned
or invested (either from borrowed funds or
share premium or any other sources or kind
of funds by the Group to or in any other
person or entity, including foreign entities
("Intermediaries") with the understanding,
whether recorded in writing or otherwise,
that the Intermediary shall lend or invest
in party identified by or on behalf of the
Group (Ultimate Beneficiaries). The Group
has not received any fund from any party
(Funding Party) with the understanding

that the GRoup shall whether, directly or
indirectly lend or invest in other persons
or entities identified by or on behalf of the
Group ("Ultimate Beneficiaries") or provide
any guarantee, security or the like on behalf
of the Ultimate Beneficiaries.

vii Undisclosed Income

There is no income surrendered or disclosed
as income during the current or previous
year in the tax assessments under the
Income Tax Act, 1961, that has not been
recorded in the books of account.

viii Details of cypto currency or virtual
currency

The group has not traded or invested in
crypto currency or virtual currency during
the current or previous year.

ix Valuation of PP&E, intangible asset
and investment property

The group has not revalued its property,
plant and equipment (including right-
of-use assets) or intangible assets or both
during the current or previous year.

2 Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of ''10/- each. Each equity holder is entitled
to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the
necessary approval from the shareholders

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets
of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number
of equity shares held by the shareholders.

3 Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

NIL

Notes:

1 Company''s fund and non fund based working capital facilities of ''52,50,00,000/- are secured by first charge by
way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India- and HDFC Bank
Ltd.) over the company''s entire current assets including stocks, WIP, receivables and finished goods and also the
second charge on the whole of the fixed assets of the Company on pari passu basis with working capital lenders.
Cash credit out standing balance include HDFC Bank 2915.86 Lakhs and SBI 2014.27 Lakhs

2 Company has taken loan of ''500 Lakhs from a company where key management person is common. Outstanding
balance include accrued interest of ''1.97 Lakhs.

Note: The information has been given in respect of such vendors to the extent they could be identified as " Micro and
Small" enterprises on the basis of information available with the Company.

32.7 Related Party Transactions :

(a) The Company has single Product,viz:" Forgings" consequently there are no Reportable Segments of the company
as per Ind AS 108 "Operating segments"

(b) Disclosures of transactions with Related Parties as required by Ind AS - 24 "Related Party Disclosures" is given below.

Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of
representations made by the Key Managerial Personnel, information available with the company and taken on
record by the Board.

34.4 Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To
manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking
into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of
financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to
engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company
continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made,
these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on
historical trend, industry practices and the business environment in which the entity operates.Loss rates are based
on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is
not material hence no additional provision considered.

Financial Assets are considered to be of good quality and there is no significant increase in credit risk.

37 AUDIT TRAIL :

The Company uses SAP ERP as the accounting software. SAP ensures an audit trail, providing standard functionality
and logging in all changed data in the system. This functionality and audit trail feature in SAP has been operational
throughout the year for all relevant transactions recorded through the application.

38 BENAMI PROPERTY :

The Company does not have any Benami property, where any proceeding has been initiated or pending against
the Company for holding any Benami

39 TRADING DISCLOSURE

The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

40 LOANS AND ADVANCES

No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested
(either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any
other person(s) or entity(ies), including foreign entities (‘Intermediaries''), with the understanding, whether recorded
in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities
identified in any manner whatsoever by or on behalf of the Company (‘Ultimate Beneficiaries'') or provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

No funds (which are material either individually or in the aggregate) have been received by the Company from
any person(s) or entity(ies), including foreign entities (‘Funding Parties''), with the understanding, whether recorded
in writing or otherwise, that the Company shall, 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 provide any
guarantee, security or the like on behalf of the Ultimate Beneficiaries.

41 UNDISCLOSED INCOME

The Company does not have any 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).

42 WILFUL DEFAULTER :

The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

43 BOOKS OF ACCOUNTS :

As per the MCA notification dated August 05, 2022, the Central Government has notified the Companies (Accounts)
Fourth Amendment Rules, 2022. As per the amended rules, the Companies are required to maintain back-up of
the books of account and other relevant books and papers in electronic mode that should be accessible in India
at all the time. Also, the Companies are required to create backup of accounts on servers physically located in
India on a daily basis. The books of account along with other relevant records and papers of the Company are
maintained in electronic mode. The Company has server physically located in India for the daily backup of the
books of account and other books and papers maintained in electronic mode.

44 REGROUPING OF PREVIOUS YEAR''S FIGURES:

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

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

For M. P. Chitale & Co.

Chartered Accountants

Firm Registration Number: 101851W

Sanat Ulhas Chitale Rohini G. Kalyani Abhijit Sen

Partner Executive Chairperson Director

Membership No. 143700 DIN:00519565 DIN: 00002593

Viraj Kalyani Nilesh Bandale

Managing Director Chief Finance Officer

DIN: 02268846

Place: Pune Rachana Agarwal

Date: 27^th May 2025 Company Secretary

---

Mar 31, 2024

2.16 Provisions and Contingent Liabilities

Provisions are recognized when the company has a present legal or constructive obligation as a result of past event, it is probable that an outflow of resources will be required to settle the obligation, and a reliable estimate of the amount of the obligation can be made. Provisions are determined based on the best estimate required to settle the obligation at the balance sheet date. Provisions are reviewed at each balance sheet date and adjusted to reflect current best estimates. The Company does not recognize a contingent liability but discloses its existence in the financial statements. A disclosure of contingent liability is made where there is a possible obligation or a present obligation that may, but probably will not require an outflow of resources.

2.17 Government grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant or subsidy relates to revenue, it is recognized as income on a systematic basis in the statement of profit and loss over the periods necessary to match them with the related costs, which they are intended to compensate. Where the grant relates to an asset, it is recognized as deferred income and is allocated to statement of profit and loss over the periods and in the proportions in which depreciation on those assets is charged.

When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

2.18 Taxation

Current Income Tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date in the countries where the Company operates and generates taxable income.

Current tax is recognized in statement of profit and loss, except when it relates to items that are recognized in

Other Comprehensive income or Equity, in which case Current Tax is also recognized in Other Comprehensive income or Equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred Tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date.

Deferred tax liabilities are recognised for all taxable temporary differences, except:

i. When the deferred tax liability arises from the initial recognition of goodwill or an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects neither the accounting profit nor taxable profit or loss.

ii. In respect of taxable temporary differences associated with investments in subsidiaries, associates and interests in joint ventures, when the timing of the reversal of the temporary differences can be controlled and it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognized in statement of profit and loss, except when it relates to items that are recognized in Other Comprehensive income or Equity, in which case Deferred Tax is also recognized in Other Comprehensive income or Equity.

2.19 Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity instrument of another entity. All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value through profit or loss, transaction costs that are attributable to the acquisition of the financial asset. Purchases or sales of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that the Company commits to purchase or sell the asset.

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed. Detailed information about each of these estimates and judgements is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

"The areas involving critical estimates or judgements are:

Tax expense Note 35

Estimation of contingent liabilities refer Note 32.1"

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

2.21 Recent Pronouncements

The Ministry of Corporate Affairs has vide notification dated 31 March 2023 notified Companies (Indian Accounting Standards) Amendment Rules, 2023 (the ''Rules'') which amends certain accounting standards, and are effective 1 April 2023. The Rules predominantly amend Ind AS 12, Income taxes, and Ind AS 1, Presentation of financial statements. The other amendments to Ind AS notified by these rules are primarily in the nature of clarifications. These amendments are not expected to have a material impact on the Company in the current or future reporting periods and on foreseeable future transactions. Specifically, no changes would be necessary as a consequence of amendments made to Ind AS 12 as the group''s accounting policy already complies with the now mandatory treatment.

2.22 Additional regulatory information required by Schedule III

1. Wilful Defaulter

None of the entities in the group have been declared wilful defaulter by any bank or financial institution or government or any government authority.

2. Relationship with struck off Companies

The group has no transactions with the companies struck off under Companies Act, 2013 or Companies Act, 1956.

3. Details of benami property held

No proceedings have been initiated on or are pending against the group for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

4. Compliance with number of layers of companies

The group has complied with the number of layers prescribed under the Companies Act, 2013.

5. Compliance with approved scheme(s) of arrangements

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

6. Utilisation of Borrowed funds and Share premium

No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources or kind of funds by the Group to or in any other person or entity, including foreign entities ("Intermediaries") with the understanding, whether recorded in writing or otherwise, that the Intermediary shall lend or invest in party identified by or on behalf of the Group (Ultimate Beneficiaries). The Group has not received any fund from any party (Funding Party) with the understanding that the GRoup shall whether, directly or indirectly lend or invest in other persons or entities identified by or on behalf of the Group ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

7. Undisclosed Income

There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account.

9. Details of cypto currency or virtual currency

The group has not traded or invested in crypto currency or virtual currency during the current or previous year.

10. Valuation of PP&E, intangible asset and investment property

The group has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

2.23 Ministry of Corporate Affairs ("MCA") notifies new standard or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 23, 2022, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2022, applicable from April 1st, 2022, as below:

1. Ind AS 103 - Reference to Conceptual Framework

The amendments specify that to qualify for recognition as part of applying the acquisition method, the identifiable assets acquired and liabilities assumed must meet the definitions of assets and liabilities in the Conceptual Framework for Financial Reporting under Indian Accounting Standards (Conceptual Framework) issued by the Institute of Chartered Accountants of India at the acquisition date. These changes do not significantly change the requirements of Ind AS 103.

b. Ind AS 16 - Proceeds before intended use

The amendments mainly prohibit an entity from deducting from the cost of property, plant and equipment amounts received from selling items produced while the company is preparing the asset for its intended use. Instead, an entity will recognise such sales proceeds and related cost in profit or loss.

3. Ind AS 37 - Onerous Contracts - Costs of Fulfilling a Contract

The amendments specify that that the ''cost of fulfilling'' a contract comprises the ''costs that relate directly to the contract''. Costs that relate directly to a contract can either be incremental costs of fulfilling that contract (examples would be direct labour, materials) or an allocation of other costs that relate directly to fulfilling contracts.

4. Ind AS 109 - Annual Improvements to Ind AS (2021)

The amendment clarifies which fees an entity includes when it applies the ''10 percent'' test of Ind AS 109 in assessing whether to derecognise a financial liability.

5. Ind AS 116 - Annual Improvements to Ind AS (2021)

The amendments remove the illustration of the reimbursement of leasehold improvements by the lessor in order to resolve any potential confusion regarding the treatment of lease incentives that might arise because of how lease incentives were described in that illustration.

The Company is assessing the impact of these changes and will accordingly incorporate the same in the financial statements for the year ending March 2024.

Balance Sheet:

Lease liabilities should be separately disclosed under the head ''financial liabilities'', duly distinguished as current or non-current.

Certain additional disclosures in the statement of changes in equity such as changes in equity share capital due to prior period errors and restated balances at the beginning of the current reporting period

Specified format for disclosure of shareholding of promoters.

Specified format for ageing schedule of trade receivables, trade payables, capital work-in-progress and intangible asset under development.

If a company has not used funds for the specific purpose for which it was borrowed from banks and financial institutions, then disclosure of details of where it has been used.

Specific disclosure under ''additional regulatory requirement'' such as compliance with approved schemes of arrangements, compliance with number of layers of companies, title deeds of immovable property not held in name of company, loans and advances to promoters, directors, key managerial personnel (KMP) and related parties, details of benami property held etc.

Statement of profit and loss:

Additional disclosures relating to Corporate Social Responsibility (CSR), undisclosed income and crypto or virtual currency specified under the head ''additional information'' in the notes forming part of the standalone financial statements.

Ind AS 116, Leases

Practical expedient relating to rent concessions occurring as a direct consequence of COVID-19 has been modified. Accordingly, a lessee is not required to account for rent concessions as lease modifications if the reduction in lease payments affects only payments originally due on or before 30th June 2022 (earlier 30th June 2021) and subject to compliance with other specified conditions.

Effective date: A lessee should apply the amendment for annual reporting periods beginning on or after 1 April

2021. In case a lessee has not yet approved.

the financial statements for issue before the issuance of the amendment, then the same may be applied for annual reporting periods beginning on or after the 1st April 2020.

A lessee should apply the amendment retrospectively and recognises the cumulative effect of initially applying them in the opening retained earnings of the annual reporting period in which it is first applied.

Ind AS 107, Financial Instruments: Disclosures

Additional disclosures included relating to interest rate benchmark reform. Those, inter alia, include information about:

a. Nature and extent of risks to which the entity is exposed arising from financial instruments subject to interest rate benchmark reform and how the entity manages these risks and

b. Entity''s progress in completing the transition to alternative benchmark rates and how the entity is managing the transition.

Effective date: An entity should apply the amendments when it applies amendments to Ind AS 109, Ind AS 104 or Ind AS 116.

Ind AS 109, Financial Instruments

A new paragraph included on changes in the basis for determining the contractual cash flows as a result of interest rate benchmark reform.

As per the guidance provided, the basis for determining the contractual cash flows of a financial asset or financial liability can change in the following manner:

a. By amending the contractual terms specified at the initial recognition of the financial instrument

b. b. In a way that was not considered by or contemplated in the contractual terms at the initial recognition of the financial instrument, without amending the contractual terms

c. Due to the activation of an existing contractual term.

Effective date: An entity should apply the amendments for annual reporting periods beginning on or after 1st April, 2021.

34.1 Market risk

The Company''s financial risk management is an integral part of how to plan and execute its business strategies. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.

34.2 Interest rate risk :

The company has investment in fixed deposits. However interest income from fixed deposits is a residuary income and not going to affect the significant cash flow of the company.

34.3 Foreign currency risk:

The Company is exposed to foreign exchange risk through its sales and services to foreign contries, and purchases from overseas suppliers in various foreign currencies.

34.4 Credit risk

"Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates.Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered."

37. "The Company uses SAP ERP as the accounting software. SAP ensures an audit trail, providing standard

functionality and logging in all changed data in the system. This functionality and audit trail feature in SAP has been operational throughout the year for all relevant transactions recorded through the application.

38. The Company does not have any Benami property, where any proceeding has been initiated or pending against

the Company for holding any Benami property.

39. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

40. No funds (which are material either individually or in the aggregate) have been advanced or loaned or invested

(either from borrowed funds or share premium or any other sources or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities (''Intermediaries''), with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (''Ultimate Beneficiaries'') or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

41. No funds (which are material either individually or in the aggregate) have been received by the Company from any

person(s) or entity(ies), including foreign entities (''Funding Parties''), with the understanding, whether recorded in writing or otherwise, that the Company shall, 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 provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

42. The Company does not have any 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).

43. The Company has not been declared wilful defaulter by any bank or financial institution or other lender.

44. As per the MCA notification dated August 05, 2022, the Central Government has notified the Companies (Accounts)

Fourth Amendment Rules, 2022. As per the amended rules, the Companies are required to maintain back-up of the books of account and other relevant books and papers in electronic mode that should be accessible in India at all the time. Also, the Companies are required to create backup of accounts on servers physically located in India on a daily basis. The books of account along with other relevant records and papers of the Company are maintained in electronic mode. The Company has server physically located in India for the daily backup of the books of account and other books and papers maintained in electronic mode.

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

current year.

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

For Kalyaniwalla & Mistry LLP Rohini G. Kalyani Abhijit Sen

Chartered Accountants Executive Chairperson Director

Firm Registration Number: 104607W/W100166 DIN: 00519565 DIN: 00002593

Anil A. Kulkarni Viraj Kalyani

Partner Chief Financial Officer

Membership no.: 047576 DIN: 02268846

Place: Pune Place: Pune

Date: May 30, 2024 Date: May 30, 2024

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Mar 31, 2018

Terms/Rights attached to the equity shares

1 The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Shares held by holding/ subsidiaries/associates: NIL

3 Number of Shares held by each shareholder holding more than 5% Shares in the company

4 Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL

Terms of Repayment

1. Term Loan of Rs. 2162.79 Lakhs (Sanctioned: Rs. 2500 lakhs) is availed from State Bank of India, IFB, Pune, out of the total sanction limit, at the rate of interest of 2.10% above MCLR-1Y. Balance outstanding as on 31 March 2018 is Rs.1851.36 lakhs (P.Y. Rs. 1477.65 Lakhs). Out of this, Rs. 495.00 Lakhs (P.Y. Rs. 360.00 Lakhs) is treated as current maturities of long term debts as on 31 March 2017 is . In addition to this, Interest accrued and due on borrowings amounted to Rs. 21.91 Lakhs (P.Y. Rs. 15.85 Lakhs ). This loan is to be repaid in 56 instalments comprising of 44 instalments of Rs. 45 Lakh, 11 instalments of Rs. 43 Lakhs and 1 instalment of Rs. 47 Lakh starting from August 2017.

2. Buyer’s Credit of Rs. 340.57 Lakhs (P.Y. Rs. 330.27 Lakhs) availed from ICICI Bank, Bundgarden Road, Pune out of the total sanction limit Rs. 500 Lakhs at the Fixed Margin over USD London inter bank offer rate i.e. LIBOR

3. Sales Tax Deferral Liability under package scheme of incentive 2001-02, 2002-03, 2003-04,2004-05,2005 06 as on 31st March 2018 amounted to Rs. 179.71 Lakhs (P.Y.Rs 311.18 Lakhs. Out of these, Rs. 105.44 Lakhs (P.Y. Rs. 131.47 Lakhs) is treated as current maturities of long term debts as on 31st March 2018. This liability is to be repaid within 5 years starting from 2012-13.

Nature of security for Item no. (i), (ii) and (iii)

For the above Rupee Term Loans, the company has created the first charge in favour of lending banks by way of hypothecation of assets to be acquired out of bank finance as primary security and second pari passu charge by way of hypothecation/ mortgage on the present and future fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

Notes :-

1. Company’s fund and non fund based working capital facilities of Rs. 874/- are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India(Lead Bank), Bank of Maharashtra,IDBI Bank Ltd. and ICICI Bank Ltd.) over the company’s entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

2. The FCNRB loan is availed from ICICI Bank Ltd.at the rate of Interest of Fixed Margin over USD London inter bank offer rate i.e. LIBOR

3. The packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India at the rate of Interest of Fixed Margin over USD London inter bank offer rate i.e. LIBOR

Notes :-

The Company has sent balance confirmation letters to Sundry Creditors, the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of, Creditors are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

*Gurantees given by the company’s Banker’s on behalf of the Company, against sanctioned guarantee limits (BG LC-one way interchangeability from LC to BG limit) aggregating to Rs. 1300 lakhs (As at 31st March 2017 Rs. 1500 lakhs & As at 1st April 2016 Rs. 300 Lakhs) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc., book debts subject to prior change in their faviour.Amount outstanding as on 31st March, 2018 is Rs.685.36 lakhs (31st March 2017 Rs . 592.66 Lakhs & 1st April 2016 Rs. 307.82 Lakhs)

Note: The information has been given in respect of such vendors to the extent they could be identified as “ Micro and Small” enterprises on the basis of information available with the Company.

5.1 (a) The company has single Product,viz:”Forgings” consequently there are no Reportable Segments of the company as per ‘Ind AS 108- Operating segments’ prescribed by Companies (Accounting Standards) Amendment Rules, 2016

(b) Disclosures of transactions with Related Parties as required by ‘Ind AS 24’ “Related Party Disclosures” is given below.

Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

5.2 EVENT OCCURING AFTER BALANCE SHEET DATE

The Board of Directors has recommended dividend for the current year of Rs. 3.50/- per equity share (Nominal value Rs.10/-per equity share)

Expenditure on Corporate Social Responsibility activities:

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

6 FINANCIAL RISK MANAGEMENT

6.1 Market risk

The Company’s financial risk management is an integral part of how to plan and execute its business strategies. Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument.

6.2 Interest rate risk :

The company has investment in fixed deposits. However interest income from fixed deposits is a residuary income and not going to affect the significant cash flow of the company.

6.3 Foreign currency risk:

Company is exposed to foreign exchange risk through its sales and services to foreign contries, and purchases from overseas suppliers in various foreign currencies.

The following table analyzes foreign currency risk from financial instruments:

6.4 Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

Financial assests are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized as income in the statement of profit and loss.

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates.Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.”

Financial Assets are considered to be of good quality and there is no significant increase in credit risk. Movement in provisions of doubtful debts

6.5 Liquidity risk :

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset.

Maturity patterns of Financial Liabilities

6.6 The ageing analysis of account receivables has been considered from the date of invoice falls due

7. Standards issued but not yet effective:

In March 2018, the Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2018, notifying Ind AS 115 - ‘Revenue from Contracts with Customers’ and consequential amendments to various Ind AS standards. The amended Rules also notified amendments to Ind AS 12 - ‘Income Taxes’, Ind AS 21 - ‘The Effect of Changes in Foreign Exchange Rates’, Ind AS 28 -’Investments in Associates and Joint Ventures’ and Ind AS 40 - ‘Investment Property’. These amendments are in accordance with the recent amendments made by International Accounting Standards Board (IASB). The amendments are effective from accounting periods beginning from 1st April, 2018.

a) Ind AS 115 - ‘Revenue from Contracts with Customers’:

On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with Ind AS 8- Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach) The effective date for adoption of Ind AS 115 is financial periods beginning on or after April 1, 2018.

The Company is currently assessing the impact of application of Ind AS 115 on Company’s financial statements.

b) Amendment to Ind AS 12 - ‘Income Taxes’:

The amendments clarify the requirement for recognising deferred tax assets on unrealised losses on debt instruments that are measured at fair value. The amendments also clarify certain other aspects of accounting for deferred tax assets. The changes will not have any material impact on the financial statements of the Company.

8 Note on First-time adoption of IND-AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The Company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April, 2017, with a transition date of 1st April, 2016. Ind AS 101-First-time Adoption of Indian Accounting Standards requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended 31st March, 2018 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as at the transition date between the Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity).

Set out below are the Ind AS 101 optional exemptions availed as applicable and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

8.1 Optional Exemptions availed

(a) Deemed Cost

The Company has opted paragraph D7 AA and accordingly considered the carrying value of property, plant and equipment and Intangible assets as deemed cost as at the transition date.

8.2 Applicable Mandatory Exceptions

(a) 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 (after adjustments to reflect any difference in accounting policies). Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Deferred payment liabilities carried at FVTPL

- Re-measurement of the defined benefit liabilities/ (assets)

(b) Classification and measurement of financial assets

As required under paragraph 4.1.2 of Ind AS 109, the company has assessed the classification and measurement of financial assets (investment in equity shares of Shamrao Vitthal Co-operative Bank Ltd) at Amortised Cost.

8.3 Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

I. Reconciliation of Balance sheet as at April 1, 2016 (transition date)

II. Reconciliation of Balance sheet as at March 31, 2017

III. Reconciliation of Statement of Profit and Loss for the year ended March 31, 2017

V. Reconciliation of Income Statement for the year ended March 31, 2017

IV. Reconciliation of Equity as at April 1, 2016 and as at March 31, 2017

VI. Reconcilation of Income tax expenses

8.4 A) Remeasurements of post-employment benefit obligation

In the financial statements prepared under Previous GAAP, re-measurement 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 re-measurement 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.

As a result of this change, the profit for the year ended March 31, 2017 decreased by Rs. 130.92 Lakhs and recognised in Other Comprehensive Income instead of profit and loss. There is no impact on the total equity as at 31st March, 2017. Consequently, tax effect of the same amounting to Rs. 43.28 Lakhs is also recognised separately in OCI.

B) Retained Earnings

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

C) Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognised in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ include re-measurements of defined benefit plans. The concept of other comprehensive income did not exist under previous I-GAAP.

D) The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2017 as compared with the previous I-GAAP.

9 ”The Financial Statements are approved by the Company’s Board of Directors on 12th May 2018”.

10 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, 2017

1. The Board of Directors has recommended dividend for the current year of Rs. 3/-per equity share (Nominal value Rs.10/-per equity share)subject to approval of members at the ensuing Annual General Meeting of the Company.

2. Expenditure on Corporate Social Responsibility activities :

3. Gross amount required to be spent by the Company during the year is Rs.4,14,380/-.

4. During the year 2015-16 we made payment of Rs.5,00,000/- to ‘Prashanti ‘an association for Cancer Care for general public. The institute is situated flat no. 1-2, Kapilvastu, Senapati Bapat Road, Next to Ratna Hospital, Pune - 411016. We are monitoring the activities carried out by this Prashanti Cancer Care Mission.

Also we are in process of finding other activities eligible as the CSR activities and will spend balance amount during the year 2017-18.

5. 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, 2016

1. The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfill export obligation (in respect of non redeemed EPCG Licenses) aggregates USD 9.51 Millions (Equivalent to Rs.63,11,36,252 at 1 USD=Rs.66.33) over a period of Eight years from issue of license, while maintaining average exports as given in the respective Licenses. Non fulfillment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods imported under the said Licenses and other penalties under the above referred scheme. The company has submitted the application for redemption of the same.

2. a) Guarantees given by the Company’s Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs.3,00,00,000 (Previous year Rs.3,00,00,000) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March, 2016 is Rs. 3,07,82,132/- (Previous year Rs. 1,85,28,856).

b) Other non-fund based facilities have been sanctioned amounting to Rs. 13,40,00,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2016 is Rs.6,67,82,132/- (Previous year - Rs.3,79,84,374/-).

3. (a) The Company has a single Product, viz : “Forgings”. Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) “Segment Reporting” prescribed by Companies (Accounting Standards) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 “Related Party Disclosures” is given below.

Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

4. The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors, Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

5. Pursuant to the provisions of the Investor Education and Protection Fund (Uploading of information regarding unpaid and unclaimed amounts lying with companies) Rules 2012, the Company is required to file the necessary form and upload the details of unpaid and unclaimed amounts lying with the company as on the date of last AGM (i.e.5 th Sept.2015) with the MCA .

The company has kept the required amount ready for depositing with MCA. The required form could not be filled as the same is under revision by MCA ( Ministry of Corporate Affairs) and the new forms are not available on MCA site. The amount in this fund is Rs. 94,127/- relates to F.Y. 2007-08.

6. The Board of Directors has recommended dividend for the current year of Rs. 2 per equity share (Nominal value Rs. 10/- per equity share) subject to approval of members at the ensuing Annual General Meeting of the Company.

7. Expenditure on Corporate Social Responsibility activities :

a. Gross amount required to be spent by the Company during the year is Rs.11,93,533.

b. During the year 2015-16 we made payment of Rs.5,00,001/- to Savali an association for mentally retarded children and engaged in socio-economic promotion of cerebral palsy children.The institute is situated plot no.13,S.No.78, left bhusari colony Kothurd, Pune.

We are monitoring the activities carried out by this Savali Institution.

Also we are in process of finding other activities eligible as the CSR activities and will spend balance amount during the year 2016-17.

8. The company is in process of refining valuation of Inventory in term of stages of Production and application of standard costs at each stage through SAP system.

The company believes that there will be no material impact of the same and difference if any arising there from will be accounted on its determination.

9. 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. Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

NIL

5 Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

NIL

Terms of Repayment

1. Term Loan of Rs.120,000,000 is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate.Balance outstanding as on 31 March 2015 is Rs. 22,500,000/- (P.Y. Rs. 52,500,001/-). Out of these, amount treated as current maturities of long term debts as on 31 March 2015 is Rs. 22,500,000/- (P.Y. Rs. 30,000,000/-) . In addition to this, Interest accrued and due on borrowings is Rs 2,72,062/-.This loan is to be repaid in fourty eight instalments starting from Dec 2011.

2. Term Loan of Rs. 150,020,860/- is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31 March 2015 is Rs. 63,840,000/- (P.Y. Rs. 98,304,000/-). Out of these, amount treated as current maturities of long term debts as on 31 March 2015 is Rs. 34,464,000/-(P.Y. Rs.34,464,000/-). In addition to this, Interest accrued and due on borrowings is Rs 9,84,988 /-. This loan is to be repaid in fifty three instalments starting from October 2012.

3. Term Loan of Rs. 111,718,988/- is availed from Indian Overseas Bank, Karve Road, Branch, Pune out of the total sanction limit at the rate of interest of 2.0% above base rate. Balance outstanding as on 31 March 2015 is Rs 76,517,996 /- (P.Y.Rs 97,517,995/-). Out of this, amount treated as current maturities of long term debts as on 31st March 2015 is 35,00,000 (P.Y. Rs.28,800,000/-). In addition to this, Interest accrued and due on borrowings is Rs 16,83,128 /-. This loan is to be repaid in fourty eight instalments starting from Oct 2013.

4. Sales Tax Deferral Liability under package scheme of incentive 1988 and 1993 as on 31st March 2015 is of Rs. 5,93,44,965 /- (P.Y.Rs 7,03,75,030/-). Out of these, amount treated as current maturities of long term debts as on 31st March 2015 is Rs. 1,32,38,483 /- (P.Y. Rs. 1,10,30,063/-). This liability for 1988 Scheme is to be repaid within one year and for 1993 Scheme is to be repaid within 5 years.

Nature of security

3. For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

4. Company's fund and non fund based working capital facilities of Rs. 564,000,000 are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra, Pune and IDBI Bank, Pune) over the company's entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

5. The packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of Fixed Margin over USD London inter bank offer rate i.e. LIBOR.

6 Contingent Liability not provided for in respect of

As at 31st As at 31st March, 2015 March, 2014 Rs. Rs.

i. Bills discounting 11,37,097 79,91,140

ii. Claims against the Company, not acknowledged as debts 62,38,000 1,85,34,665

iii Disputed Income Tax demand, matter under appeal 2,21,71,980 2,14,28,890

iv Disputed Excise demand, matter under appeal 76,28,035 76,28,035

v In respect of export obligation under EPCG 27,79,713 47,53,704

vi In respect of Bank Guarantee 1,04,61,176 1,28,86,267

7. The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil export obligation (in respect of non redeemed EPCG Licenses) aggregates USD 10.42 Millions (Equivalent to Rs.648845524 at 1 USD=Rs.62.22) over a period of Eight years from issue of license, while maintaining average exports as given in the respective Licenses. Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods imported under the said Licenses and other penalties under the above referred scheme. The company has submitted the application for redemption of the same.

8. a) Guarantees given by the Company's Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs. 30,000,000 (Previous year Rs. 30,000,000) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March, 2015 is Rs. 18,528,856/- (Previous year Rs. 23,765,464).

b) Other non-fund based facilities have been sanctioned amounting to Rs. 13,40,00,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2015 is Rs. 3,79,84,374/- (Previous year - Rs. 34,840,773/-).

9. Disclosure pursuant to Accounting Standard (AS 15) - Revised 2005 "Employee Benefits" prescribed by Companies (Accounting Standards) Amendment Rules, 2006

10. (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards ) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 "Related Party Disclosures" is given below.

Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

11. The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

12. Expenditure on Corporate Social Responsibility activities :

a. Gross amount required to be spent by the Company during the year is Rs. 27,23,076.

b. "As the CSR provision was newly introduced after finalizing the accounts for the year 2013-14, we made efforts to find the projects for the CSR activity. We have found two such projects and the work has commenced. However, till 31stMarch, 2015, we did not make any payment and hence no expenditure has been recorded during the year 2014-15.

The two projects involved are:

1. The construction of toilets for girls in some schools in Pune district.

2. The technical skills training and aid project for girls and boys in Pune district The expenditure will get recorded in the year 2015-16."

19. 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, 2014

1 Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

The Board of Directors has recommended a dividend of 25% (Rs. 2.50/- per share) for the financial year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

NIL

3 Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

NIL

4.Terms of Repayment

1. Term Loan of Rs.12,00,00,000 is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate. Balance outstanding as on 31st March 2014 is Rs. 5,25,00,001/- (P. Y Rs. 8,25,00,000/-). Out of these, amount treated as current maturities of long term debts as on 31st March 2014 is Rs. 3,00,00,000/- (P. Y Rs. 3,00,00,000/-) This loan is to be repaid in five years starting from November, 2011.

2. Term Loan of Rs. 15,00,20,860/- is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31st March 2014 is Rs. 9,83,04,000/- (P.Y. Rs. 13,27,68,000/-). Out of these, amount treated as current maturities of long term debts as on 31st March, 2014 is Rs. 3,44,64,000/-(P. Y Rs.3,44,64,000/-). This loan is to be repaid in five years starting from October, 2012.

3. Term Loan of Rs. 11,17,18,988/- is availed from Indian Overseas Bank, Karve Road Branch, Pune out of the total sanction limit at the rate of interest of 2.0% above base rate. Balance outstanding as on 31st March 2014 is Rs. 9,75,17,995/- (P. Y Rs 11,17,18,988/-). Out of this, amount treated as current maturities of long term debts as on 31st March 2014 is Rs. 2,88,00,000 (P. Y Rs.1,39,64,875/-). This loan is to be repaid in five years starting from October, 2013.

4. Sales Tax Deferral Liability under package scheme of incentive 1988 and 1993 as on 31st March 2014 is of Rs. 70,375,030/- (P. Y Rs. 7,98,59,061/-). Out of these, amount treated as current maturities of long term debts as on 31st March 2014 is Rs. 1,10,30,063/- (P. Y Rs. 94,84,031/-). This liability for 1988 Scheme is to be repaid within two years and for 1993 Scheme is to be repaid within six years.

5.Nature of security

1. For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

As required by Accounting Standard (AS 22) "Taxes on Income" prescribed by Companies (Accounting Standards) Amendment Rules, 2006, the Company has recognised deferred taxes, which result from timing differences between book profits and tax profits for the period, the details of which are as under.

2. Company''s fund and non-fund based working capital facilities of Rs. 73,40,00,000 are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders [State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra, Pune and IDBI Bank,Pune] over the company''s entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

3. Short term loan of Rs. 4,80,00,000/- was availed from IDBI Pune for 90 days of the total sanctioned limit at the rate of interest of 2.25% above base rate. Balance outstanding as on 31st March 2014 is Nil (P.Y. Rs.4,80,00,000/-).

4. The packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of 3.25% (the Margin) over fixed USD London Inter-bank Offer Rate i.e. LIBOR.

6 Contingent Liability not provided for in respect of :

As at 31st As at 31st March, 2014 March, 2013 Rs. Rs.

i. Bills discounting 79,91,140 1,17,62,517

ii. Claims against the Company, not 1,85,34,665 60,30,000 acknowledged as debts

iii Disputed Income Tax demand, 2,14,28,890 1,21,70,773 matter under appeal

iv Disputed Excise demand, 76,28,035 76,28,035 matter under appeal

v In respect of export obligation 47,53,704 92,70,959 under EPCG

vi In respect of Bank Guarantee 1,28,86,267 -

7 The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil export obligation (in respect of non redeemed EPCG Licenses) aggregates USD 13.30 Milions (Equivalent to Rs.789,151,013 at 1 USD = Rs. 59.31) over a period of eight years from issue of license, while maintaining average exports as given in the respective Licenses. Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods imported under the said Licenses and other penalties under the above reffered scheme. The company has submitted the application for redemption of the same.

8 a) Guarantees given by the Company''s Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs. 30,000,000 (Previous year Rs.30,000,000) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March, 2014 is Rs. 23,765,464/- (Previous year Rs. 24,048,390).

b) Other non-fund based facilities have been sanctioned amounting to Rs. 14,40,00,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March, 2014 is Rs. 3,48,40,773/- (Previous year - Rs. 2,13,07,438/-).

9 Disclosure pursuant to Accounting Standard (AS 15) - Revised 2005 "Employee Benefits" prescribed by Companies (Accounting Standards) Amendment Rules, 2006

10. Total Expenditure on Research & Development (including allocable overheads) during the year is Rs. 11,97,970/- (Previous year Rs.3,760,502/-)

11. (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards ) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 "Related Party Disclosures" is given below.

Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

12. The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

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

---

Mar 31, 2013

1 Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

The Board of Directors has recommended a dividend of 25% (Rs. 2.50/- per share) for the financial year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Shares held by holding/ultimate holding Company and/or their subsidiaries/associates

NIL

Terms of Repayment

1. Term Loan of Rs.12,00,00,000 is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate.Balance outstanding as on 31 March 2013 is Rs. 8,25,00,000/- (P.Y. Rs.11,25,00,000/-). Out of these, amount treated as current maturities of long term debts as on 31 March 2013 is Rs.3,00,00,000/- (P.Y.Rs.3,00,00,000/-) This loan is to be repaid in five years starting from November 2011.

2. Term Loan of Rs. 15,00,20,860/- is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31 March 2013 is Rs.13,27,68,000/ - (P.Y. Rs. 7,17,66,505/-). Out of these, amount treated as current maturities of long term debts as on 31 March 2013 is Rs. 3,44,64,000/-(P.Y. Rs.3,72,00,000/-). This loan is to be repaid in five years starting from October 2012.

3. Term Loan of Rs. 11,17,18,988/- is availed from Indian Overseas Bank, Karve Road, Branch, Pune out of the total sanction limit at the rate of interest of 2.25% above base rate. Balance outstanding as on 31 March 2013 is Rs. 11,17,18,988/- (P.Y.Rs 3,51,41,373/-). Out of this, amount treated as current maturities of long term debts as on 31st March 2013 is Rs. 1,39,64,875/-(P.Y. NIL). This loan is to be repaid in five years starting from October 2013.

4. Sales Tax Deferral Liability under package scheme of incentive 1988 and 1993 as on 31st March 2013 is of Rs.7,98,59,061/- (P.Y.Rs.8,90,66,788/-). Out of these, amount treated as current maturities of long term debts as on 31st March 2013 is Rs. 94,84,031/- (P.Y. Rs. 85,80,700/-). This liability for 1988 Scheme is to be repaid within three years and for 1993 Scheme is to be repaid within 7 years.

Nature of security

1. For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

1. Company''s fund and non fund based working capital facilities of Rs. 76,40,00,000 are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra, Pune and IDBI Bank, Pune) over the company''s entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

2. Short term loan of Rs.4,80,00,000/- is availed from IDBI Pune for 90 days of the total sanctioned limit at the rate of interest of 2.25% above base rate. Balance outstanding as on 31st March 2013 is Rs. 4,80,00,000/- (P.Y. Nil)

3. The packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of 3.5%(the Margin) over fixed USD London Inter-bank Offer Rate i.e. LIBOR.

3 Contingent Liability not provided for in respect of :

As at 31st As at 31st March, 2013 March, 2012 Rs. Rs.

i. Bills discounting 1,17,62,517 1,29,61,060

ii. Claims against the Company, not acknowledged as debts 60,30,000 1,32,25,000

iii Disputed Income Tax demand, matter under appeal 1,21,70,773 2,09,53,702

iv Disputed Excise demand, matter under appeal 76,28,035 72,92,845

v In respect of export obligation under EPCG 92,70,959 87,79,660

4 The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil export obligation (in respect of non redeemed EPCG Licenses) aggregating USD 15.07 Milion (Equivalent to Rs.82,81,62,869 at 1 USD=Rs.54.95) over a period of Eight years from issue of license, while maintaining average exports as given in the respective Licenses. Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods imported under the said Licenses and other penalties under the above referred scheme.

5 a) Guarantees given by the Company''s Bankers on behalf of the Company, against sanctioned guarantee limits aggregating Rs.3,00,00,000 (Previous year Rs.3,00,00,000) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March ,2013 is Rs. 2,40,48,390/- (Previous year Rs. 2,11,41,890).

b) The non-fund based facilities have been sanctioned amounting to Rs. 27,40,00,000 with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2013 is Rs.4,53,55,828 (Previous year - Rs.6,78,64,161).

6 Disclosure pursuant to Accounting Standard (AS 15) - Revised 2005 "Employee Benefits" prescribed by Companies (Accounting Standards) Amendment Rules, 2006

7. Total Expenditure on Research & Development (including allocable overheads) during the year is Rs. 37,60,502/- (Previous year Rs. 65,74,000/-)

8. (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable

Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 "Related Party Disclosures" is given below. Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

9. The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

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

---

Mar 31, 2012

1 Terms/Rights attached to the equity shares

The Company has only one class of equity shares having par value of Rs. 10/- each. Each equity holder is entitled to one vote per share and have a right to receive dividend as recommended by Board of Directors subject to the necessary approval from the shareholders.

The Board of Directors has recommended a dividend of 25% (2.50/- per share) for the financial year.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2 Shares held by holding/ultimate holding Company and/or their subsidiaries/associates NIL

3 Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date: NIL

Terms of Repayment

1. Term Loan of Rs.120,000,000 is availed from State Bank of India, IFB, Pune at the rate of interest of 4.50% above base rate.Balance outstanding as on 31st March 2012 is Rs.112,500,000(P.Y. Rs.120,000,000). Out of these, amount treated as current maturities of long term debts as on 31st March 2012 is Rs.30,000,000. (P.Y.Rs.7,500,000) This loan is to be repaid in five years starting from Nov-2011. Accordingly, Rs.7,500,000 were paid comprising of five installments of Rs.1,500,000 each.

2. Term Loan of Rs. 71,766,505 is availed from State Bank of India, IFB, Pune out of the total sanction limit at the rate of interest of 3% above base rate. Balance outstanding as on 31st March 2012 is Rs.71,766,505(P.Y. Nil). Out of these, amount treated as current maturities of long term debts as on 31st March 2012 is Rs.37,200,000)(P.Y. Nil). This loan is to be repaid in five years starting from October 2012.

3. Term Loan of Rs. 35,141,373 is availed from Indian Overseas Bank, Karve Road, Branch, Pune, out of the total sanction limit at the rate of interest of 1.75% above base rate.Balance outstanding as on 31st March 2012 is Rs 35,141,373(P.Y. Nil) This loan is to be repaid in five years starting from Oct 2013.

1. Company's fund and non fund based working capital facilities of Rs. 814,000,000 are secured by first charge by way of hypothecation on pari passu basis with existing working capital lenders (State Bank of India, IFB, Pune (Lead Bank), Bank of Maharashtra,Pune and IDBI Bank,Pune) over the company's entire current assets including stocks, WIP, receivables and finished goods and also the second charge on the whole of the fixed assets of the Company on pari passu basis with consortium working capital lenders.

2. The above Packing credit foreign currency loan is availed from Bank of Maharashtra and State Bank of India, Pune at the rate of Interest of 3.5%(the Margin) over fixed USD London Inter-bank Offer Rate i.e. LIBOR.

4. Sales Tax Deferral Liability under package scheme of incentive 1979, 1988 and 1993 as on 31 March 2012 is of Rs.89,066,788 (P.Y. Rs 97,647,486). Out of these, amount treated as current maturities of long term debts as on 31st March 2012 is Rs. 8,580,700 (P.Y. Rs. 8,580,698).The balance liability for 1988 Scheme is to be repaid within four years. Accordingly, Rs 8,580,700 were paid on 26th April 2011.

Nature of security

1. For the above Rupee Term Loans, the company has created the first pari passu charge together (both the banks) by way of hypothecation on assets to be acquired out of bank finance as primary security and first pari passu charge by way of hypothecation on the existing fixed assets including land and building situated at Sanaswadi and Koregaon Bhima, Pune as a collateral security.

Contingent Liability not provided for in respect of : AS AT 31ST AS AT 31ST MARCH, 2012 MARCH, 2011 RS. RS.

i. Bills discounting 12,961,060 13,169,313

ii Claims against the Company, not acknowledged as debts 13,225,000 12,425,000

iii Disputed Income Tax demand, matter under appeal 20,953,702 10,289,869

iv Disputed Excise demand, matter under appeal 7,292,845 6,087,927

v In respect of Non fulfillment of export obligation under EPCG 8,779,660 -

4. The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil quantified exports (after considering enhancement in Export Obligation amount and cancellations of Licences), aggregates USD 7.01 Millions (Equivalent to Rs. 353,471,390 at 1 USD = Rs.50.53) over a period of next five years from issue of license,while maintaining average exports of USD 5.07 Millions (Equivalent to Rs.256,256,752).Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods Imported under the said Licences and other penalties under the above reffered scheme.

5. a) Guarantees given by the Company's Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs.30,000,000/- (Previous year Rs.30,000,000/-) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March ,2012 is Rs. 21,141,890- (Previous year Rs. 19,479,390/-)

b) The non-fund based facilities have been sanctioned amounting to Rs. 314,000,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2012 is Rs. 67,864,161/- (Previous year -Rs. 77,103,223/-). Also outstanding amount of Letter of Credit open against Fixed Assets as on 31st March, 2012 is Rs.33,000,842/-

6. Total Expenditure on Research & Development (including allocable overheads) during the year is Rs.6,574,000/- (Previous year Rs.3,636,412/-)

7. (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards ) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard - 18 "Related Party Disclosures" is given below. Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

8 The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed/reconciled.

9. 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, 2011

1 Contingent Liability not provided for in respect of:

As at 31st As at 31st March, 2011 March, 2010 Rs. Rs.

i. Sales Bills discounted 13,169,313 16,190,400

ii. Claims against the Company, not acknowledged as debts 12,425,000 14,662,500

iii Disputed Income Tax demand, matter under appeal 10,289,869 21,094,377

iv Disputed Excise demand, matter under appeal 6,087,927 5,201,003

2 The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil quantified exports (after considering enhancement in Export Obligation amount and cancellations of Licences), aggregates USD 8.01 Milions (Equivalent to Rs. 353,474,391 at 1 USD = Rs.44.11) over a period of next six years, while maintaining average exports of USD 5.96 Millions (Equivalent to Rs.262,912,000). Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods Imported under the said Licences and other penalties under the above reffered scheme.

3 a) The Company has obtained Ruppe term loan from State Bank of India for Rs. 12 Crores and created the charge by way of hypothecation charge on assets to be acquired out of Bank finance. Repayable within 12 months is NIL.

b) Working capital loans are secured by first charge by way of hypothecation and/or pledge of the current assets, viz stocks of Raw Materials, semi finished and finished goods, stores and spares not relating to Plant & machinery (Consumables stores and spares), bills receivable, book debts and all other movables and also by mortgage and charge in favour of the banks ranking after the charges created in favour of the term lenders on immovable & movable properties (other than current assets) both present and future in a form and manner acceptable to the banks.

c) Guarantees given by the Companys Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs.30,000,000/- (Previous year Rs.30,000,000/-) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc., book debts subject to prior charge in their favour. Amount outstanding as on 31st March, 2011 is Rs. 19,479,390- (Previous year Rs. 22,419,898/-).

d) The non-fund based facilities have been sanctioned amounting to Rs. 174,000,000/- with a charge of hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st March 2011 is Rs. 77,103,223/-(Previous year-Rs. 52,144,840/-).

4 Disclosure pursuant to Accounting Standard (AS 15) - Revised 2005 "Employee Benefits" prescribed by Companies (Accounting Standards) Amendment Rules, 2006

5 Licensed & Installed Capacities, Production, Turnover and Stock of Shares and Units of Mutual Funds A. Licensed & Installed Capacity and Production:

(a) These products are exempt from Licensing rquirements under new Industrial Policy in term of Notification No. 477(E) dated 25th July, 1991

(b) Production quantity includes forging for captive consumption in production of (i) RearAxle Tube Assemblies M.T. 68 80 (ii) Finished Machined Components M.T. 775 1,491

(c) Actual production at press shop stage / Machining Stage

(*) Since the Companys Installed capacity is dependent on the product mix, which in turn is decided on the basis of the actual demand for various products from time to time, it is not feasible for the Company to give the exact installed capacity. The Company has, however, indicated the installed capacity on the basis of the years product mix as certified by the Chief Executive Officer and being technical matter, is accepted by the auditors as correct

6 Managerial Remuneration

(A) Computation of Net Profit in accordance with Section 198(1) and Section 349 of the Companies Act, 1956

7 Total Expenditure on Research & Development (including allocable overheads) during the year is Rs.3,636,412/-(Previous year Rs.2,301,808/-)

8 (a) The Company has a single Product, viz: "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards) Amendment Rules, 2006.

(b) Disclosures of transactions with Related Parties as required by Accounting Standard -18 "Related Party Disclosures" is given below. Related parties as defined under clause 3 of the Accounting Standard have been identified on the basis of representations made by the Key Managerial Personnel, information available with the company and taken on record by the Board.

9 The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed / reconciled.

10 Capital Work in Progress includes advances for supply of capital goods aggregating Rs. 67,457,906/- (Previous year Rs. 13,748,427/-) relating to Project under implementation.

11 Information required in terms of Part IV of Schedule VI to the Companies Act, 1956, as compiled by the Company is attached.

12 Previous Years figures have been regrouped wherever necessary to make them comparable with those of the current year.

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Mar 31, 2010

1 Significant Accounting Policies followed by the Company are stated in the Statement Annexed to this Schedule.

2 Contingent Liability not provided for in respect of: As at 31st As at 31st

March, 2010 March, 2009 Rs. Rs.

i. Sales Bills discounted 16,190,400 3,806,876

ii. Claims against the Company, not acknowledged as debts 14,662,500 20,350,000

iii Disputed Income Tax demand, matter under appeal 21,094,377 24,059,941

iv Disputed Excise demand, matter under appeal 5,201,003 5,097,547

3 The Company has imported capital goods under the Export Promotion Capital Goods Scheme of the Govt. of India at concessional rate of duty against an undertaking to fulfil quantified exports (after considering enhancement in Export Obligation amount and cancellations of Licences) aggregating USD 10.85 Milions (Equivalent to Rs. 496,128,768 at 1 USD = Rs.45.71) over a period of next seven years, while maintaining average exports of USD 5.7 Millions (Equivalent to Rs. 262,912,000). Non fulfilment of the balance obligations, in the due manner entails options/rights to the Government to confiscate Capital Goods Imported under the said Licences and other penalties under the above reffered scheme. _

4 a) Foreign Currency Term Loan (External Commercial Borrowing) from DBS Bank is secured by first pari pasu Equitable mortgage on the immovable Assets of the Company. It is also secured by collateral security in the form of first charge on the residual fixed assets (present and future) of the Company. The First charge is in the form of Equitable Mortgage by deposit of title deeds of the land together with construction thereon. It is also secured by second charge on the current assets of the Company. The Company has already executed modification of Equitable Mortgage with term lenders, DBS Bank. Amount repayable forfinancial year 2010-11 is Rs. 174,991,793/-

b) The rupee term loan from State Bank of India is repaid during the year and charge created for this loan has been satisfied.

c) Working capital loans are secured by first charge by way of hypothecation and/or pledge of the current assets, viz stocks of Raw Materials, semi finished and finished goods, stores and spares not relating to Plant & machinery (Consumables stores and spares ),bills receivable, book debts and all other movables and also by mortgage and charge in favour of the banks ranking after the charges created in favour of the term lenders on immovable & movable properties (other than current assets) both present and future in a form and manner acceptable to the banks.

d) Guarantees given by the Companys Bankers on behalf of the Company, against sanctioned guarantee limits aggregating to Rs.30,000,000/- (Previous year Rs.30,000,000/-) for contracts undertaken by the Company and other matters are secured by extension of charge by way of joint hypothecation of stock in trade, stores and spares etc.,book debts subject to prior charge in their favour. Amount outstanding as on 31st March ,2010 is Rs. 22,419,898/- (Previous year Rs. 22,959,398/-).

e) The non-fund based facilities have been sanctioned amounting to Rs. 164,000,000/- with a charge c hypothecation on stock, book debts and other current assets on pari-passu among the consortium members and second charge over fixed assets of company. Amount outstanding as on 31st Marcl 2010 is Rs. 52,144,840/-(Previous year-Rs. 25,862,005/-).

5 Disclosure pursuant to Accounting Standard (AS 15)- Revised 2005 "Employee Benefits" prescribed b} Companies (Accounting Standards) Amendment Rules, 2006

6 Total Expenditure on Research & Development (including allocable overheads) during the year is / Rs.2,301,808/-(Previous year Rs.2,369,047/-)

7 (a) The Company has a single Product, viz : "Forgings". Consequently, there are no Reportable Segments of the Company as per the Accounting Standard (AS-17) "Segment Reporting" prescribed by Companies (Accounting Standards) Amendment Rules, 2006.

8 The Company has sent balance confirmation letters to Sundry Debtors, Creditors and Other Parties and the balances are under reconciliation in those cases where confirmations were received. Pending final reconciliation, the balances in respect of Debtors,Creditors and third parties are as per books of account only. Adjustments having an impact of revenue nature, if any, will be made in the year in which the same are confirmed / reconciled.

9 Capital Work in Progress includes advances forsupply of capital goods aggregating Rs. 13,748,427/- (Previous year Rs.25,789,529/-) relating to Project under implementation.

10 The Accounting Standard (AS 11)" The effects of Changes in Foreign Exchange Rates " prescribed by Companies (Accounting Standards ) Rules, 2006 was amended on 31st March, 2009, vide notification dated 31st March, 2009, by the Ministry of Corporate Affairs. The said amendment offered an option to Companies to recognize Foreign Exchange gains and losses arising on translation of all long term monetary assets and liabilities acquired up to 31st March, 2009, retrospectively from accounting periods commencing after 7th December, 2006 (i.e. 1st April, 2007 for the company) up to 31st March, 2011, as capital cost of acquisition of assets where they relate to acquisition of assets. The amount so recognized as capital cost of assets is to be depreciated over the balance life of relevant assets. The Company has chosen to exercise this option in preparation of its financial statements for the year ended 31st March, 2010. Accordingly, Foreign Exchange Differences adjusted against the cost of assets / CWIP for the year ended March 31,2010 is Rs. NIL (Previous year Rs. 36,629,705).

11 Provision no longer required written back includes Rs.20,317,054/- on account of Royalty written back during the year.

12 Information required in terms of Part IV of Schedule VI to the Companies Act, 1956, as compiled by the Company is attached.

13 Previous Years figures have been regrouped wherever necessary to make them comparable with those of the current year.