Notes to Accounts of Mahalaxmi Seamless Ltd.

Mar 31, 2024

h) Provisions and contingent liabilities

Provisions are recognised when the Company has a present legal or constructive obligation as a result of past events,

! it is probable that an outflow of resources will be required to settle the obligation and the amount can be reliably
estimated. Provisions are not recognised for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre tax
rate that reflects current market assessments of the time value of money and the risks specific to the liability. The
increase in the provision due to the passage of time is recognised as interest expense.

Contingent Liabilities are disclosed in respect of possible obligations that arise from past events but their existence will
be confirmed by the occurrence or non occurrence of one or more uncertain future events not wholly within the control
of the Company or where any present obligation cannot be measured in terms of future outflow of resources or where a
reliable estimate of the obligation cannot be made.

i) Revenue recognition of Income & Expenditure

Revenue from sales of products is recognized on transfer of all significant risk and rewards of ownership of the product on to

j) customer, which is generally on dispatch of goods. Sales are stated net of deductions during the year and exclusive of Value Added
Tax and excise duty.

I ii) Revenue from Rental Income is reconginised as per the agreement with the concerned party,
j) Employee Benefit

Liability in respect of employee benefits are accounted for as follows :

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B. Retirement Benefit

Retirement benefit in the form of Provident Fund, which are defined Contribution plans, are accounted on accrual basis and
'') charged to the Statement of Profit and Loss of the year.

ii) The liability in respect of accumulated leave is accounted on accrual.

The Company has only three employees as at the close of the current year, hence the gratuity liability has been calculated on
discontinuation basis instead of an Actuarial Valuation, as the amounts Involved are not material.

k) Operating Expenses:

The Company classifies separately operating expenses which are directly linked to main activities of the company.

l) Taxation :

Current Tax is determined as the amount of tax payable in respect of taxable income for the year, computed in accordance with
¹ the applicable provisions of income tax Act, 1961.

Deferred Tax resulting from timing difference between taxable and accounting income is accounted for using the tax rates and laws
ii) that have been enacted or substantively enacted by the balance sheet date. Deferred Tax Asset is recognized and carried forward
only if there is reasonable certainty of its realisation.

m) Impairment of non-financial assets:

Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment,or more frequently if events or changes in circumstances indicate that they might be impaired. Other assets are tested
for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An
impairment loss is recognised for the amount by which the asset''s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset''s fair value less costs of disposal and value in use. For the purpose of assessing
impairment, assets are grouped at the lowest levels for which there are separately identifiable cash inflows which are largely
independent of the cash inflows from other assets or group of assets (cash-generating units). Non-financial assets other than
goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.

31 Segment Reporting

The Company has only one reportable segment i.e. Cold drawn Seamless Pipes and Tubes. Accordingly, the Company is single segment company in
terms of its products.

Considering the nature of business of Company in which it operates, the Company deals within India, hence other disclosure requirements are not
applicable to the company.

32 Dues to Micro. Small and Medium enterprises

The Company has not received any intimation from ''suppliers'' regarding their status under the Micro, Small and Medium enterprises Development Act,
2006 and hence disclosures, if any relating to amount unpaid as at the year end together with interest paid/payable as required under the said Act have
not been furnished.

33 Post retirement benefit plans

The Company has only three employees as at the close of the current year, hence the gratuity liability has been calculated on discontinuation basis
instead of an Actuarial Valuation, as the amounts involved are not material.

The Company s financial risk management is an integral part of how to plan and execute its business strategies. The Companys financial risk management policy is set by the Managing Board.

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. The value of a financial instrument may equity prices and
other market changes that affect market risk sensitive instruments, change as a result of changes in the interest rates, foreign currency exchange rates, Market risk is attributable to all market risk sensitive
financial instruments including receivables, payables and loans and borrowings.

Market Risk- Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Company''s position with regards
to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating
rate financial instruments in its total portfolio.

According to the Company interest rate risk exposure is only for floating rate borrowings. For floating rate liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the
reporting period was outstanding for the whole year. A 50 basis point increase or decrease is used when reporting interest rate risk internally to key management personnel and represents management''s
assessment of the reasonably possible change in interest rates.

I) Actual or expected significant adverse changes in business cons.ders

!!i|^AFinanl^r,^{eXPeCted Si}e^{nificant cha}"e«¦" «* operating remits of the counterparty,

v)Signⁿfi T^e™ⁱⁿ hn^d^ins_trumen^atrofⁿtheTa^trnecounterprrt^Cy^)UnterF''^{3rtVS mee}''^itS °^bnga''^i0nS''

Significant changes in the value of the collateral supporting the obligation or in the quality of the third-party guarantees or credit enhancements.

provision when a debtor fails to T/T ^C°^mPanV''^C°^{mP3nV Categorises a} ''°^{an or receivable} «

to recover the receivable due. Where recoveries are made, these are recognized in statement of profit and loss ^C°^{mP3nV C}°^minUeS "^{g,gein e}"^,orcemen'' activity to attempt

Loss rates are based on actual credit loss experien« and''“d" tesS’on''T^ °P*ra,es.

Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time, or at a reasonable price. Due to dynamic nature of underlying business the Comoanv''s treasnn,
department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the

(i) Financing arrangements

The company had access to following undrawn Borrowing facilities at end of reporting period:

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Mar 31, 2015

1. Share Capital

a) Term Rights Attached to equity shares

The company has one class of equity share having a par value of Rs. 10 per . Each holder of equity shares is entitled to one vote per share . The dividend,if any, is declared and paid in Indian Rupees. The dividend , if any,proposed by the Board of Director is subject to the approval of the holders in the ensuing Annual General Meeting.

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 holders

b) Nil number of bonus shares issued, shares issued for consideration other than cash and share bought back during the period of five years immediately preceeding the reporting date .

2) Contingent Liabilities

i) Counter Guarantee given to the Bank for the performance guarantee given by them of Rs 32.77 Lacs (P.Y. Rs.38.45 Lacs).

ii) Disputed sales tax liability of Rs 65,57,957/- for F.Y 2004-05- (P.Y.65,57,957).

iii) Letters of Credit outstanding of Rs 1,65,09,702/- (P.Y. 1,83,72,886).

iv) There are some labour related matters pending in the Labour Court at Raigad and Mumbai. The Company's Liability towards such matters cannot be ascertained..

v) The Company had imported certain items under the Duty Free Advance Authorisation Scheme. The total value of the Bond given is Rs 2,03,01,500/-. The Company was unable to complete its export obligation in respect of such imports.

The Company has applied to the Directorate General of Foreign Trade for granting extension of the time period for fulfillment of its export obligation. The approval for the same is awaited.

3) Income Tax

i) Due to net loss the company has not made any provision of Current Tax under the provisions of Income Tax Act, 1961.

ii) The Company has provided for the deferred tax based on the tax effect of timing differences, which will reverse in future. The break up is as under:

4) Sales Tax Deferment

Unsecured loan includes Interest free Sales Tax Deferment of Rs. 1,84,71,727/-. Out of this, a sum of Rs 7,49,146/- (P. Y. Rs 11,25,092/-) is due within the immediate next year. Rs.39,402/- is payable in next year as annual installments till year 2016-17.

5) Segment Reporting

The Company has only one reportable segment i.e. Cold drawn Seamless Pipes and Tubes. Hence requirement of Accounting Standard, AS-17 "Segment Reporting" are not applicable.

6) Impairment of Assets

There is no such impairment of assets at the year ended on 31.03.15 in terms of Accounting Standard, AS - 28. Hence company has not made any provision for impairment loss.

7) Dues to Micro, Small and Medium enterprises

The Company has not received any intimation from 'suppliers' regarding their status under the Micro, Small and Medium enterprises Development Act, 2006 and hence disclosures, if any relating to amount unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

A) Name of the Parties (as certified by the management)

1) Associates

* Madras Steel & Tubes

* Vinayak Pipes & Tubes Pvt Ltd

* Vinayak Tubes

* Excel Tube Corporation

2) Key Management Personnel

* Shri Madhav. P. Jalan

* Shri Vivek Jalan

* Shri Jiwanprakash. T. Hingorani

* Shri Chetan Jain

* Smt. Mala Sharma

* Chandrashekar R. Kulkarni

3) Relative of Key Management Personnel (KMP)

* Smt. Sampathidevi M. Jalan

8) In the opinion of Board the current assets, loans & advances are approximately'of the value stated in the balance sheet if realized in the ordinary courses of business.

9) Till the financial year 2013-14, the Company has charged depreciation as per rates provided under schedule XIV of Companies Act, 1956. With effective from 01st April, 2014, the Company has charged depreciation on its assets based on the useful life as stipulated under schedule II of Companies Act, 2013. Based on the transitional provision as provided in Note 7(b) of the Schedule II, Rs. 3,08,016/- (Net of Tax) has been adjusted against opening balance of retained earnings.

10) Trade Receivables, Trade Payables, Advance from Customers and Loans & Advances, the balances under these heads have been shown as per books of accounts and are subject to reconciliation and adjustment, if any.

11) Previous year's figures have been regrouped, wherever necessary to make them comparable with those of current year. Figures in the brackets represent figures for the previous year.

12) Previous year audit was conducted by auditors other than K C P L AND Associates LLP.

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Mar 31, 2012

1) Contingent Liabilities

i) Counter Guarantee given to the Bank for the performance guarantee given by them of Rs.36.85 Lacs (P.Y. Rs.77.16 lacs).

ii) Disputed sales tax liability of Rs. 65, 57,957/ for F.Y 2004-05- (P.Y. Nil).

iii) Letters of Credit outstanding of Rs. 2, 93, 81,661 (P. Y. Nil).

iv) Disputed excise liability raised by the Central Excise Dept is as follows :

1. Disputed excise liability for the period Jan 2011 to Dec 2011 for Rs.13,11,717/-

2. Disputed excise liability for the period Aug 2009 to Dec 2009 for Rs.2,47,911/-

3. Disputed excise liability for the period Jan 2010 to May 2010 for Rs.3,67,760/-

4. Disputed excise liability for the period Jun 2010 to Dec 2010 for Rs.11,83,336/-

2) Income Tax

i) Due to net loss the company has not made any provision of Current Tax under the provisions of Income Tax Act, 1961.

3) Sales Tax Deferment

Unsecured loan represent Interest free Sales Tax Deferment of Rs. 2,11,65,919/-. Out of these, a sum of Rs 20,54,315/- (P. Y. Rs 21,07,017/-) is due within the immediate next year. Rs. 37,83,970/- is payable in next 4 years as annual installments till year 2016-17.

4) Segment Reporting

The Company has only one reportable segment i.e. Cold drawn Seamless Pipes and Tubes. Hence requirement of Accounting Standard, AS-17 "Segment Reporting" are not applicable.

5) Impairment of Assets

There is no such impairment of assets at the year ended on 31.03.12 in terms of Accounting Standard, AS - 28. Hence company has not made any provision for impairment loss.

6) Dues to Small Scale Industrial Undertakings

The Company has not received any intimation from ''suppliers'' regarding their status under the Micro, Small and Medium enterprises Development Act, 2006 and hence disclosures, if any relating to amount unpaid as at the yearend together with interest paid/payable as required under the said Act have not been furnished.

7) Related Party Disclosures as per Accounting Standard (AS) 18 :

A) Name of the Parties ( as certified by the management)

1) Associates

Madras Steel & Tubes (MST)

Riddi Siddhi & Co. (RSC)

Sarayu Issue Management Services Pvt. Ltd. (SIMSPL)

Vinayak Tubes (VT)

Vinayak Steels (VS)

Excel Tube Corporation (ETC)

2) Key Management Personnel

Shri Madhav. P. Jalan

Shri Vivek Jalan

Shri J. T. Hingorani

Shri Manish Dalai

Shri Chetan Jain

Smt. Mala Sharma

3) Relative of Key Management Personnel (KMP)

Shri Rishi Jalan

Smt. Sampathidevi M. Jalan

8) In the opinion of Board the current assets, loans & advances are approximately of the value stated in the balance sheet if realized in the ordinary courses of business.

9) Previous year''s figures have been regrouped, wherever necessary to make them comparable with those of current year. Figures in the brackets represent figures for the previous year

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Mar 31, 2011

A) Contingent Liabilities

i) Counter Guarantee given to the Bank for the performance guarantee given by them of Rs. 77.16 lacs (P.Y. Rs.52.92 lacs).

ii) Disputed sales tax liability of Rs. Nil (P.Y. Rs. 161.93 Lacs ).

iii) Letter of Credit outstanding of Rs. Nil (P.Y. Rs. 568.82 Lacs).

iv) Estimated amount of contract remaining to be executed on Capital Account and not provided for Rs. 5.00 lacs (P.Y. Rs. 419.45 Lacs)

v) Disputed excise liability for the period August, 2009 to December,2010 raised by the Central Excise Dept. for Rs.17,99,007. »

c) Income Tax

i) The Company has made adequate provision of Current Tax Rs. Nil (P.Y. Rs. Nil/-) under the provisions of Income Tax Act, 1961.

d) Sales Tax Deferment

Unsecured loan represent Interest free Sales Tax Deferment of Rs. 2,32,72,936/- out of these, a sum of Rs 20,54,315/- (P. Y. Rs 13,97,276/-) is due within the immediate next year and Rs. 76,45,302/- is payable in next 5 yearly installments till year 2016-17.

Further Rs. 97,81,109/- (P.Y. Rs 55,46,525/-) is added in above unsecured loan as per sanction of the deferment scheme by the Sales Tax authorities.

b) Managerial Remuneration *

Directors Remuneration paid Rs 23,99,999/- (Previous Year Rs. 25,95,169/-).

c) Segment Reporting

The Company has only one reportable segment i.e. Cold drawn Seamless Pipes and Tubes. Hence requirement of Accounting Standard, AS-17 "Segment Reporting" are not applicable.

d) Impairment of Assets

There is no such impairment of assets at the year ended on 31.03.11 in terms of Accounting Standard, AS - 28. Hence company has not made any provision for impairment loss.

e) Dues to Small Scale Industrial Undertakings

The Company has not received any intimation from 'suppliers' regarding their status under the Micro, Small and Medium enterprises Development Act, 2006 and hence disclosures, if any relating to amount unpaid as at the year end together with interest paid/payable as required under the said Act have not been furnished.

f) Additional Information pursuant to clause 3,4C, 4D of Part II of Schedule VI of Companies Act, 1956.

g) In the opinion of Board the current assets, loans & advances are approximately of the value stated in the balance sheet if realized in the ordinary courses of business.

h) Previous years figures have been regrouped, wherever necessary to make them comparable with those of current year. Figures in the brackets represent figures for the previous year