Notes to Accounts of Mauria Udyog Ltd.

Mar 31, 2024

(ix) Provisions, contingent liabilities, and contingent assets Provisions

The Company creates a provision when there is present obligation as a result of a past event that probably requires an outflow of resources, and a reliable estimate can be made of the amount of obligation.

If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows (representing the best estimate of the expenditure required to settle the present obligation at the balance sheet date) at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The unwinding of the discount is recognised as finance cost.

Contingent liability

Contingent liabilities are possible obligations that arise from past events and whose existence will only be confirmed by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company. Where it is not probable that an outflow of economic benefits will be required, or the amount cannot be estimated reliably, the obligation is disclosed as a contingent liability, unless the probability of outflow of economic benefits is remote

Contingent assets

Contingent assets are possible assets that arises from past events and whose existence will be confirmed only by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Company.

(x) Property, plant and equipment (including Capital work-in-progress)

Becognition_andmeasurement

All items of property, plant and equipment are stated at historical cost less depreciation. Freehold land is carried at cost. All other items of property, plant and equipment are stated at cost net of recoverable taxes (wherever applicable), which includes capitalised borrowing costs less depreciation and impairment, if any.

Cost of an item of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, if any, after deducting trade discounts and rebates, any directly attributable cost of bringing the item to its working condition for its intended use and estimated costs of dismantling and removing the item and restoring the site on which it is located

\o\ /X

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment.

Any gain or loss on disposal of an item of property, plant and equipment is recognised in the statement of profit and loss.

On transition to Ind AS, the Company had elected to continue with carrying value of all its property, plant and equipment recognised as at 1 April 2016 measured as per the previous GAAP and use that carrying value as the deemed cost of the property, plant and equipment.

Sub.sequentjexpenditure

Subsequent costs are included in the asset''s carrying amount or recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised when replaced.

All other repairs and maintenance are charged to the Statement of Profit and Loss during the reporting period in which they are incurred.

Depreciation methods, estimated useful lives and residual values

Depreciation is calculated on cost of items of property, plant and equipment less their estimated residual value over their useful life using straight line method and is recognised in the statement of profit and loss.

The estimated useful lives of items of property, plant and equipment for the current and comparative periods are as under and the same are equal to lives specified as per schedule II of the Act.

Based on technical evaluation and consequent advice, the management believes that its estimates of useful lives as given above best represent the period over which management expects to use these assets. Depreciation on addition to property, plant and equipment is provided on pro-rata basis from the date the assets are ready for intended use. Depreciation on sale/discard from property, plant and equipment is provided for up to the date of sale, deduction or discard of property, plant and equipment as the case may be.

Depreciation method, useful lives and residual values are reviewed at each financial year-end, and changes, if any, are accounted for prospectively.

(xi) Intangible assets

Recognition and measurement

An intangible asset is recognised when it is probable that the future economic benefits attributable to the asset will flow to the Group and where its cost can be reliably measured.

Intangible assets are initially measured at cost. Such intangible assets are subsequently measured at cost less accumulated amortisation and any accumulated impairment losses. Cost comprises the purchase price and any cost attributable to bringing the assets to its working condition for its intended use.

Amortisation

Amortisation is calculated to write off the cost of intangible assets over their estimated useful lives using the straight-line method and is included in depreciation and amortisation in the statement of profit and loss.

Amortisation method, useful lives and residual values are reviewed at each financial year-end, and changes, if any, are accounted for prospectively.

Losses arising from the retirement of and gain or losses arising from disposal of an intangible asset are determined as the difference between the net disposal proceeds and the carrying amount of asset and recognised as income or expense in the statement of profit and loss

(xii) Impairment of non-financial assets

The Company''s non-financial assets, other than inventories and deferred tax assets, are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset''s or CGU''s recoverable amount is estimated.

For impairment testing, assets that do not generate independent cash inflows are grouped together into cashgenerating units (CGUs). Each CGU represents the smallest group of assets that generates cash inflows that are largely independent of the cash inflows of other assets or CGUs.

i he recoverable amount of a CGU (or an individual asset) is the higher of its value in use and its fair value less costs to sell. Value in use is based on the estimated future cash flows, discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the CGU (or the asset).

An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its estimated recoverable amount. Impairment losses are recognised in the statement of profit and loss. Impairment loss recognised in respect of a CGU is allocated first to reduce the carrying amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the other assets of the CGU (or group of CGUs) on a pro rata basis.

After impairment, depreciation/amortisation is provided on the revised carrying amount of the asset over its remaining useful life.

(xiii) Borrowing costs

Borrowing costs are interest and other costs incurred in connection with the borrowing of funds. Borrowing costs directly attributable to acquisition or construction of an asset which necessarily take a substantial period of time to get ready for their intended use are capitalised as part of the cost of that asset. Other borrowing costs are recognised as an expense in the period in which they are incurred.

Initial recognition and measurement

Trade receivables and debt securities issued are initially recognised when they are originated. All other financial assets and financial liabilities are initially recognised when the Company becomes a party to the contractual provisions of the instrument.

A financial asset or financial liability is initially measured at fair value plus, transaction costs that are directly attributable to its acquisition or issue, except for an item recognised at fair value through profit and loss. Transaction cost of financial assets carried at fair value through profit and loss is expensed in the statement of profit and loss.

Classification and subsequent measurement

FinanciaLassets

On initial recognition, a financial asset is classified as measured at:

• amortised cost,

• Fair value through other comprehensive income (FVOCI), or

• Fair value through profit and loss (FVTPL)

The classification depends on the entity''s business model for managing the financial assets and the contractual terms of the cash flows.

Financial assets are not reclassified subsequent to their initial recognition, except if and in the period the Company changes its business model for managing financial assets.

A financial asset is measured at amortised cost if it meets both of the following conditions and is not designated as at FVTPL

• the asset is held within a business model whose objective is to hold assets to collect contractual cash flows; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding

A debt investment is measured at FVOCI if it meets both of the following conditions and is not designated as at FVTPL:

• the asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets; and

• the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

On initial recognition of an equity investment that is not held for trading, the Company may irrevocably elect to present subsequent changes in the investment''s fair value in OCI (designated as FVOCI - equity investment). This election is made on an investment by investment basis.

All financial assets not classified to be measured at amortised cost or FVOCI as described above are measured at FVTPL. This includes all derivative financial assets. On initial recognition, the Comnany may irrevocably designate a financial asset that otherwise meets the requirements to be measured at amortised cost or at FVOCI or at FVTPL if doing so eliminates or significantly reduces an accounting mismatch that would otherwise arise

Financial assets: Business model assessment

The Company makes an assessment of the objective of the business model in which a financial asset is held at a portfolio level because this best reflects the way the business is managed and information is provided to management. The information considered includes:

• the stated policies and objectives for the portfolio and the operation of those policies in practice. These include whether management’s strategy focuses on earning contractual interest income, maintaining a particular interest rate profile, matching the duration of the financial assets to the duration of any related liabilities or expected cash outflows or realising cash flows through the sale of the assets:

• how the performance of the portfolio is evaluated and reported to the Company''s management;

• the risks that affect the performance of the business model (and the financial assets held within that business model) and how those risks are managed;

• how managers of the business are compensated - e.g., whether compensation is based on the fair value of the assets managed or the contractual cash flows collected; and

• the frequency, volume and timing of sales of financial assets in prior periods, the reasons for such sales and expectations about future sales activity.

Transfers of financial assets to third parties in transactions that do not qualify for derecognition are not considered sales for this purpose, consistent with the Company''s continuing recognition of the assets

Financial assets that are held for trading or are managed and whose performance is evaluated on a fair value basis are measured at FVTPL.

Financial assets: Assessment whether contractual cash flows are solely payments of principal and interest For the purposes of this assessment, principal'' is defined as the fair value of the financial asset on initial recognition. Interest is defined as consideration for the time value of money and for the credit risk associated with the principal amount outstanding during a particular period of time and for other basic lending risks and costs (e.g., liquidity risk and administrative costs), as well as a profit margin

In assessing whether the contractual cash flows are solely payments of principal and interest, the Company considers the contractual terms of the instrument. This includes assessing whether the financial asset contains a contractual term that could change the timing or amount of contractual cash flows such that it would not meet this condition. In making this assessment, the Company considers:

• contingent events that would change the amount or timing of cash flows;

• terms that may adjust the contractual coupon rate, including variable interest rate features; prepayment and extension features; and

• terms that limit the Company''s claim to cash flows from specified assets (e.g., non- recourse features)

A prepayment feature is consistent with the solely payments of principal and interest criterion if the prepayment amount substantially represents unpaid amounts of principal and interest on the principal amount outstanding, which may include reasonable additional compensation for early termination of the contract Additionally, for a financial asset acquired at a significant discount or premium to its contractual par amount, a feature that permits or requires prepayment at an amount that substantially represents the contractual par amount plus accrued (but unpaid) contractual interest (which may also include reasonable additional compensation for early termination) is treated as consistent with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.

Financial assets at amortised cost: These assets are subsequently measured at amortised cost using the effective interest method. The amortised cost is reduced by impairment losses, if any. Interest income and impairment are recognised in the statement of profit and loss. Any gain or loss on derecognition is recognised in statement of profit and loss.

Financial assets at FVTPL: These assets are subsequently measured at fair value. Net gains and losses, including any interest income, are recognised in the statement of profit and loss.

Debts investments at FVOCI: These assets are subsequently measured at fair value. Interest income under the effective interest method, foreign exchange gains and losses and impairment are recognised in profit or loss Other net gains and losses are recognised in OCI. On Derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.

Equity investments at FVOCI: These assets are subsequently measured at fair value. Dividends are recognised as income in profit or loss unless the dividend clearly represents a recovery of part of the cost of the investment. Other net gains and losses are recognised in OCI and are not reclassified to profit or loss.

FinancialJiAbiLLtLes;.classification, subsequentjneasur.ement & gain and loss

Financial liabilities are classified as measured at amortised cost or FVTPI. A financial liability is classified as at FVTPL if it is classified as held for trading, or it is a derivative or it is designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and losses, including any interest expense, are recognised in the statement of profit and toss. Other financial liabilities are subsequently measured at amortised cost using the effective interest method. Interest expense and foreign exchange gains and losses are recognised in the statement of profit and loss. Any gain or loss on derecognition is also recognised in the statement of profit and loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount presented in the balance sheet when, and only when, the Company currently has a legally enforceable right to set off the amounts and it intends either to settle them on a net basis or to realise the assets and settle the liabilities simultaneously.

Derecognition

Financial assets

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred or in which the Company neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control of the financial asset.

If the Company enters into transactions whereby it transfers assets recognised on its balance sheet, but retains either all or substantially all of the risks and rewards c‘ the transferred assets, the transferred assets are not derecognised.

EiaancMJk.biiili.es

The Company derecognises a financial liability when its contractual obligations are discharged or cancelled, or expire.

The Company also derecognises a financial liability when its terms are modified and the cash flows under the modified terms are substantially different. In this case, a new financial liability based on the modified terms is recognised at fair value. The difference between the carrying amount of the financial liability extinguished and the new financial liability with modified terms is recognised in the statement of profit and loss.

Impairment of financial instruments

The Company recognises loss allowances for expected credit losses on>

Financial assets measured at amortised cost; and Financial assets measured at FVOCI- debt investments

At each reporting date, the Company assesses whether financial assets carried at amortised cost and debt securities at FVOCI are credit impaired. A financial asset is credit-impaired'' when one or more events that have a detrimental impact on the estimated future cash flows of the financial asset have occurred. Evidence that a financial asset is credit - impaired includes the following observable data:

• significant financial difficulty of the borrower or issuer;

° a breach of contract such as a default or being past due for agreed credit period;

• the restructuring of a loan or advance by the Company on terms that the Company would not consider otherwise;

• it is probable that the borrower will enter bankruptcy or other financial reorganisation; or

• the disappearance of an active market for a security because of financial difficulties.

Expected credit loss

Loss allowances for trade receivables are always measured at an amount equal to lifetime expected credit losses.

Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

12-month expected credit losses are the portion of expected credit losses that result from default events that are possible within 12 months after the reporting date (or a shorter period if the expected life of the instrument is less than 12 months).

In all cases, the maximum period considered when estimating expected credit losses is the maximum contractual period over which the Company is exposed to credit risk.

When determining whether the credit risk of a financial asset has increased significantly since initial recognition and when estimating expected credit losses, the Company considers reasonable and supportable information

that is relevant and available without undue cost or effort. This includes both quantitative and qualitative information and analysis, based on the Company''s historical experience and informed credit assessment and including forward looking information.

The Company assumes that the credit risk on a financial asset has increased significantly if it is more than agreed credit period.

The Company considers a financial asset to be in default when:

• the borrower is unlikely to pay its credit obligations to the Group in full, without recourse by the Group to actions such as realising security (if any is held); or

• the financial asset is past due and not recovered within agreed credit period,

Measurement of expected credit losses

Expected credit losses are a probability-weighted estimate of credit losses. Credit losses are measured as the present value of all cash shortfalls (i.e., the difference between the cash flows due to the Company in accordance with the contract and the cash flows that the Company expects to receive).

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of the assets disclosed in the Balance Sheet.

Write-off

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no realistic prospect of recovery. This is generally the case when the Company determines that the debtor does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject to the write-off. However, financial assets that are written off could still be subject to enforcement activities in order to comply with the Company''s procedures for recovery of amounts due

(xv) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity shareholders by the weighted average number of equity shares outstanding during the period The weighted average numbers of equity shares outstanding during the period are adjusted for events such as bonus issue, share split or consolidation of shares,

For calculating diluted earnings per share, the net profit or loss for the year attributable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all dilutive potential equity shares. The dilutive potential equity shares are deemed converted into equity shares as at the beginning of the period unless they have been issued at a later date.

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.

In accordance with Ind AS 108 - Operating Segments, the operating segments used to present segment information are identified on the basis of internal reports used by the Company''s Management to allocate resources to the segments and assess their performance.

Segment profit is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments relative to other entities that operate within these industries. Inter-segment pricing is determined on an arm''s length basis.

The operating segments have been identified on the basis of the nature of products/services, Further:

1. Segment revenue includes sales and other income directly identifiable with / allocable to the segment including inter-segment revenue

2. Expenses that are directly identifiable with / allocable to segments are considered for determining the segment result. Expenses which relate to the Group as a whole and not allocable to segments are included under unallocable expenditure.

3. Income which relates to the Group as a whole and not allocable to segments is included in unallocable income.

4 Segment assets and liabilities include those directly identifiable with the respective segments. Unallocable assets and liabilities represent the assets and liabilities that relate to the Group as a whole and not allocable to any segment

The Board of Director(s) are collectively the Company''s ’Chief Operating Dec''S''O" Maker'' or ''CODM'' within *hn meaning of Ind AS 108 Refer Note 46 for segment information

B. Term Loan from Housing Development Finance Corporation Limited

During the financial year 2015-16, the Parent company had taken a long term loan from Housing Development Finance Corporation Limited of * 500.00 Lacs as per agreement dated July 31, 2015. The closing balance of said loan is f 368.86 Lacs and f 368 86 Lacs, as at March 31, 2023 & March 31, 2023 respectively.

Interest rate

This loan carries floating rate of interest at HDFC''s RPLR adjusted tor spread Repayment

The loan is repayable in HI equal monthly instalments of ? 6.89 Lacs (including interest) each starting from August 30, 2015 and payable till Apn| 30, 2027 Owing to severe liquidity crises the Parent company is under financial stress and has defaulted in repayment/servicmg of aforesaid loan and therefore the same has been classified as Non-Performing Assets (NPAs) by the banks/lenders No provision of interest has been made after the date of classification of loan as NPA till January 30. 2024 Co-borrowers

M/s Bhama Properties Private Limited. Mrs Prem Lata Sureka, Mr Vishnu Sureka and Mrs Deepa Sureka.

Security

Equitable Mortgage of Property by way of deposit of the title deeds in respect of the agricultural Land admeasuring 12 Bigha out of Khasara No. 921/lmm(1 -9). 922(5-5) and 923|5-6). situated at Village Rajokari. Tehsil Vasant Vihar. New Delhi owned by M/s Bhama Properties Private Limited

The Parent company after negotiations has entered into a One Time Settlement COTS"} with Housing Development finance Corporation Limited settlement vide settlement letter dated January 31. 2024 As per the terms and conditions of the said OTS, total liability of ? 2,083.07 lacs has been settled a*. * 2,050.00 lacs to be paid before September 29, 202*4 by the Parent company The Parent company has discharged ? 500.00 lacs as on the balance sheet date The Parent company has enhanced the due date for the balance payment of ? 1.550.00 lacs after negotiaion with the Bank to be paid along with interest in the next financial year

C. Term Loan from Housing Development Finance Corporation Limited

During the financial year 2012-13. the Parent company had taken a long term loan from Housing Development Finance Corporation Limited of ? 2.500.00 Lacs as per agreement dated April 26. 2012. The closing balance of said loan is * 1,214 21 Lacs and * 1,71421 Lacs, as at March 31. 2024 & March 31. 2023 respectively.

Interest rate

This loan carries floating rate of interest at RPLR - 3.50% p.a Repayment

The loan is repayable in 155 equal monthly instalments of ? 31.63 Lacs (including interest) each starting from May 1, 2012 and payable till March 1. 2025.

Owing to severe liquidity crises the company is under financial stress and has defaulted in repayment/servicmg of aforesaid loan and therefore the same has been classified as Non-Performing Assets (NPAs) by the banks/lenders. No provision of interest has been made after the date of classification of loan as NPA

Due to classification of aforesaid loan as NPA, Housing Development Finance Corporation Limited has recalled entire outstanding principal amount of said loan and all the other charges including interest and penal interest payable thereon Tnerefore. it has been wholly classified as current borrowings.

Co-borrowers

Mr. Navneet Sureka. M/s 3hama Proped es Private Limited. Mrs Prem Lata Sureka. Mr Vishnu Sureka and Mrs Deepa Sureka Security

Equitable Mortgage of Property by way of deposit of the Mle deeds >n respect of the agricultural Land ad measuring 12 B gha out of Khasara No 92V1mm(1-9). 922(5-5) and 923(5-6), situated at Village Rajokari, Tehsil Vasant Vihar New Delhi ownpd ov M/s Bhama Properties Private ''miteri

TheParent company after negotiations has entered into a One Time Settlement (“OTS") with Housing Development Finance Corporation Limited settlement vide settlement letter dated January 31. 2024 As per the terms and conditions of the said OT5, total liability of ? 2.083.07 lacs has been settled at ? 2.050 00 lacs to be paid before September 29. 2024 by the Parent company The Parent company has discharged ? 500 00 lacs ais on the balance sheet date The Parent company has enhanced the due date for the balance payment of ? 1.550.00 lacs after negotiaion with the Bank to be paid along with interest in the next financial year

D. Term Loan from Kotak Mahindra Bank Limited

During the financial year 2017-18. the Company had taken a long term loan from Kotak Mahindra Bank Limited of ? 1,650.00 Lacs as per agreement dated August 22, 2017. The closing balance of said loan is ? nil and t 1.193.43 Lacs, as at March 31, 2024 & March 31. 2023 respectively

Interest rate

This loan carries floating rate of interest at 1 year MCLR 4.35% p.a.

Repayment

The loan is repayable in 60 equal monthly instalments of ? 38.25 Lacs (including interest) each starting from October 5, 2018 and payable till September 5, 2022

Owing to severe liquidity crises the company is under financial stress and has defaulted in repayment/servicing of aforesaid loan and therefore the same nas been classified as Non-Performing Assets (NPAs) by the banks/lenders. No provision of interest has beer made after the cate of classification of loan as NPA

Due to classification of aforesaid loan as NPA. Kotak Mahindra Bank has recalled entire outstanding principal amount of said loan and all the other charges including interest and penal interest payable thereon. Therefore, it Has beer wholly classified as current borrowings

Security

Exclusive charge on farm land area ad measuring 68 bighas & 19 b

Corporate guarantee of M/s Strawberry Star India Private Limited Letter of Comfort from M/s Jotindra Steel & Tubes Limited

Personal Guarantees of Mr. Navneet Sureka, Mr. Vishnu Sureka and Mr Akhil Sureka

The Parent company after negotiations has entered into a One Time Settlement COTS'') with Kotak Mahindra Bank vide settlement letter dated June 14. 2023

As per the terms and conditions of the said OTS. total Lability of f 1.193.43 lacs ~>as been settled a* ? ¹ 2C0 00 ''net *•: L • j a..-. .. •.?• ISC day ‘ . .i~ct nr nf proposal. The Parent company has discharged ? 13 00 lacs along vi/ith interest as on the balance sheet date

50 Operating segments A. Basis for Segmentation

Segment information is presented in respect of the Group''s key operating segments. The operating segments are based on the Group''s management and internal reporting structure. The chief operating decision maker identifies primary segments based on the dominant source, nature of risks and returns and the internal organisation and management structure. The operating segments are the segments for which separate financial information is available and for which operating profit/loss amounts are evaluated regularly. All operating segments* operating results are reviewed regularly by the Board of Directors to make decisions about resources to be allocated to the segments and assess their performance

The ’Board of Directors'' have been identified as the Chief Operating Decision Maker C''CODM’). since they are responsible for all major decision w.r.t. the preparation and execution of business plan, preparation of budget, planning, expansion, alliance, joint venture, merger and acquisition, and expansion of any facility

Fair value hierarchy

Level 1: It includes financial instruments measured using quoted prices.

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

Level 3: If one or mo-re of the significant inputs is not based on observable market data, the instrument -s included in level 3 The fair value of financial assets and liabilities included in Level 3 is determined in accordance with generally accepted pricing models based on discounted cash flow analysis using prices from observable current market transactions and dealer quotes of similar instruments

The carrying amounts of trade receivables, cash and cash equivalents and other financial assets and liabilities, approximates the fair values, due to their shortterm nature. Fair value of financial assets and financial liabilities is similar to the carrying value as there is no significant differences between carrying value and fair value

Valuation processes

The Management performs the valuations of financial assets and liabilities requi-erl for financial reporting purposes on a periodic basis, including level 3 fair

values

(¦*). Liquidity risk

Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are fallen due, under both normal anc stressed conditions, without incurring unacceptable losses or risking damage to the Group''s reputation.

The Group believes that its liquidity position of ? 406.45 lacs as at March 31. 2024 [March 31, 2023: ? 73.7¹ lacs) and the anticipated future internally generated funds from operations will enable it to meet its future known obligations in the ordinary course of business exceDt certain borrowings

The Group is under financial stress and has defaulted in repayment/servicing of certain borrowings and is actively pursuing the lenders for restructuring/rescheduling of such borrowings to avoid any untoward liquidity risk.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of credit facilities to meet obligations when due. The Group''s policy is to regularly monitor its liquidity requirements to ensure that t maintains sufficient reserves of cash and funding from Group companies to meet its liquidity requirements in the short and long term The Group''s liquidity management process as monitored by management, includes the following - Day to day funding, managed by monitoring future cash flows to ensure that requirements can be met • Maintaining rolling forecasts of the Company''s liquidity position on the basis of expected cash flows

(iii). Market risk

Market risk is the risk that the future cash flows of a financial instrument will fluctuate because of changes n market prices Market rusk Group three tyoes of risk: interest rate risk, currency risk and other price risk, the Group mainly has exposure to two type of market risk namely: currency risk and interest rate risk The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return

a. interest rate risk

Interest rate risk is the risk thar the future cash flows of a financial instrument will fluctuate because of changes m market interest rates The Group''s mam interest rate risk arises from long-term borrowings with variable rates, which expose the Company to cash flow interest rate risk

Exposure to interest rate risk

The risk is managed by the Group by maintaining an appropriate mix between fixed and floating rate borrowings

For the purpose of the Group''s capital management, capital includes issued equity share capital and all other equity reserves attributable to the equity holders of the Group

Management assesses the Group''s capital requ»rements in order to maintain an efficient overall financing structure. The Group manages the capital structure and makes adjustments to it in the light of changes in economic conditions and the risk characteristics of the underlying assets To maintain or adjust the capital structure, the Group may return capital to shareholders, raise new debt or issue new shares

The Group monitors capital on the basis of the debt to capital ratio, which is calculated as interest-bearing debts divided by total capital (equity attributable to owners of the parent plus interest-bearing debts)

(C). Reasons for significant changes (25% or more)

i ).Debt equity ratio has reduced due to increase in equity as share application money Deeding allotment and repayment of borrowing.

ii) , Debt service coverage ratio has improved as earning increased and repayment of many loans were done as on Macrh 31.2024

iii) Return on equity ratio has improved due to profits in the current year

iv) . Net profit ratio has increased due to profits in the current year

v ). Inventory Turnover Ratio has increased in account of increased purchases during the yea-.

vi) .Trade receivables turnover ratio has improved on account of increase in revenue in the current financial year

vii) .Trade payables turnover ratio has increased in account of increased purchases during the year

viii). Net capital turnover ratio has decreased due to increase in revenue in the current financial year. Average working capital has turn negative due to reclassification of certain trade receivables as non-current.

62 The Group has not entered into any such transaction which is not recorded in the books of accounts that has doom surrenderee 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

63 The Group has not traded or invested in cryptocurrency or virtual currency during the year

64 The Group does not have any charges or satisfaction which is yet to be registered with the Registrar of Group''s beyond the statutory period

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

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

(a) , directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Group (Ultimate Beneficiaries), or

(b) . provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

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

(a) , directly or indirectly lend or invest in other persons or entities identified ir any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries: or

(b) . provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

68 The Parent company had entered into certain transacfons with Amraoali Group of Companies in past years In conseauent to which forensic audit was conducted as per the Directions of Hon’ble Supreme Court of India to look into transactions between Amrapali Group of Companies and Sureka Group ol Companies. After which the Hon''ble Supreme Court vide its order No Writ Petition(s>(Civil) No 940/2017 dated December 2, 2019 had directed M/s Jotindra Steel & Tubes Limited and Mauria Udyog Limited including associated companies and Directors viz Mr, Navneet Kumar Sureka and Mr Akhil Kumar Sureka to deposit ? 16.700.00 Lacs. In response to the order of the Hon''ble Supreme Court, it had filed an application on December 9. 2019 before the Hon''ble Supreme Court to accept the title deeds of immoveable properties belonging to Sureka family members and associate companies (based on latest valuation report) worth amounting ? 16,897.00 Lacs, net of incumbency amount of ? 3,934.00 Lacs including Properties amounting ? 10,182.00 Lacs belonging to Mauria Udyog Limited.

In the financial year 2019-20, the Parent company had charged ? 15,00.00 Lacs in the Statement of Profit and Loss against the above matter on an estimated basis and reduced the value of properties (property which is deposited to Hon’ble Supreme Court).

The management is of the opinion that, based on issues and the legal advice that the ultimate outcome of the leaal oroce^dinos m resoect to the matter will not have material adverse effect to the financial position of the Parent company Hence, the Paren; company has neither provided for liability aga^st this matter, nor any amount has been shown as contingent liability as required by Ind AS 37 ''Provisions. Contingent Liabilities and Contingent Assets''.

69 Securities & Exchange Board of India (SEBI) vide its interim order cum show cause notice number WTM/SM/IVD/ID9/275 32/202 3-2024 dated 19 June 2023 under sections 11(1), 11(4). 11(4)(A), 11(8)1, 11(B)2 and 11(5) of SEBI Act 1992 read along with SEBI rules 2005, issued interim directions restraining the Company from accessing the securities market till further orders and also directed the Company to deposit jointly and severally with other notices an amount of ?

2,619.69 Lacs.

The Holding Company submitted its reply on 22 July 2023 and has fried an appeal against the said interim order to Securities Appellate Tribunal (''''SAT") The SAT vide its decision dated 18 August 2023 has disposed off the appeal and directed the Company to file a re ply/objection to the show cause notice further, the management believes that the impugned order is untenable and is liable to set aside Accordingly, no liability has been recorded by the Company against the amount sought by SEBI in the said interim order

70 These financial statements were approved for issue by the Board of Directors on May 29, 2024.

71 Previous year figures have been re-grouped and re-arranged wherever necessary to conform to the current year classification.

For NKSC & Co. O ($ For behalf of the Board o^f* Directors of

Chartered Accoc Weiss'' \ MaurkaiU^-pg Limited

Firm Registration 020076N \* \ y. \\ / A i . \

PFlyank Goyal -----Navneet Kuma/bur»*ka Atul Kumar

Partner Managing Director Director

Membership No.: 521986 DIN: 00054929 - DIN. 00060233

UDIN: 2452T986BKFKTC8126 Vo ^ ^ C JL

Davinder Kumar Gupta Divya Agrawai

Chief Financial Officer Company Secretary

PAN: AONPG0703M ACS:A21071

Place: New Delhi Place: Faridabad

Date: May 29, 2024 Date: May 29. 2024

---

Mar 31, 2018

(a) The Rupee Term Loan from Religare Finvest Limited consist three( Previous year two) joint loans secured against mortgage of Property at Farm House at Mustil NO.18, Khasra No.20/2, 21, 23/1, Village Samalaka, Vasant Vihar, New Delhi belongs to M/s S.K.D. Estates Private Limited, Since the Loan was disbursed to/and utilised by the compnay , hence all the transaction related thereto have been recorded in the Financial Statements of the Company as detailed hereunder:

Loan No. 1. Jointly in the name of M/s S.K.D. Estates Private Limited, Mauria Udyog Limited, Mr. Vishnu Kumar Sureka, Mrs. Prem Lata Sureka, Mr. Navneet Kumar Sureka, Mrs. Deepa Sureka and Mr. Akhil Kumar Sureka The Principal Installments due within the period of next twelve months are Rs. NIL ( Previous year Rs. 1,62,94,773)

Loan No. 2. Jointly in the name of M/s S.K.D. Estates Private Limited, Mauria Udyog Limited, Mrs. Prem Lata Sureka, Mr. Navneet Kumar Sureka, Mrs. Deepa Sureka and Mr. Pramod Kumar Agarwal and Bihariji Infotech Pvt. Ltd. The Principal Installments due within the period of next twelve months are Rs. NIL (Previous year Rs.1,45,21,272)

Loan No. 3. Jointly in the name of M/s. Mauria Udyog Limited, M/s S.K.D. Estates Private Limited, Mr. Navneet Kumar Sureka, Mrs. Deepa Sureka and Mr. Pramod Kumar Agarwal , Mr. Vishnu Kumar Sureka and Mrs. Prem Lata Surekaand , The Principal Installments due within the period of next twelve months are Rs. NIL (Previous year Rs.70,60,308)

(b) Term Loan from ICICI Home Finance is a joint loan with others as detailed hereunder :

(i) Loan No. 1. Jointly in the name of M/s. Bihariji Ispat Udyog Ltd, Shri Navneet Kumar Sureka and the Mauria Udyog Limited, The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds for mortgage in respect of the Property at apartment No. PNA 011, The Pinnacle In DLF City Gurgaon owned by the company, and also personal guarantee of Mr. Navneet Kumar Sureka, Managing Director of the Company. Since the loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyoug Limited , hence, all the transaction related thereto have been recorded in the financial statements of the said co- applicant .The principal Installments due within the period of next 12 months are Rs.32,47,150 (Previous year Rs.30,72,106).

(ii) Loan No. 2 & 3, are Joint loans in the name of M/s. Mauria Udyog Limited ,Shri Navneet Kumar Sureka and Shri Vishnu Kumar sureka. The loans are secured by way of First and exclusive charge over the property situated at A-24, 24th floor, Tower-Z, A-25, Tower-X and C-4, Tower-Y , sector-50, TGB Meghdutam Noida and personal guarantee of Mr. Navneet Kumar Sureka, Managing Director of the Company and Sh. Vishnu Kumar Sureka chairman of the company. Since the loans were disbursed to/and utilised by the company , hence all the transaction related thereto have been recorded in the financial statements of the company.The principal due within the period of next 12 months are Rs. 1,07,69,694(Previous year Rs94,18,844).

(c) Term Loan from Housing Development Finance Corporation Limited is a joint loan in the name of Shri Navneet Kumar Sureka, M/s Bhama Properties Private Limited, Mrs. Prem Lata Sureka,M/s. Mauria Udyog Limited, Sh. Vishnu Kumar Sureka and Mrs. Deepa Sureka. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the agricultural Land measuring 12 Bigha out of Khasara No. 921/1min(1-9),922(5-5)and 923(5-6), Situated at village Rajokari, tehsil Vasant Vihar, New Delhi owned by the M/s Bhama Properties Pvt. Ltd. Since the loan was disbursed to/and utilised by the company, hence all the transaction related thereto have been recorded in the financial statements of the company. The instalments due within the period of next 12 months are Rs.2,01,89,688(Previous Year 1,83,12,245)

(d) Joint loan in the name of M/s. Mauria Udog Limited, Bihariji Infotech Private Limited, Navneet Kumar Sureka HUF, Mrs. Deepa Sureka, Sh Pramod Kumar Agarwal , Shri Navneet Kumar Sureka and Mrs. Prem Lata Sureka . The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the Property at Plot No. 662, Udyog Vihar, Phase-V, Gurgaon, Haryana owned by M/s. Bihariji InfoTech Pvt. Ltd. Since the loan was disbursed to/and utilised by the company, hence, all the transaction related thereto have been recorded in the financial statements of the company.The installments due within the period of next 12 months are Rs. 80,51,217 (Previous year 1,4,865,314).

e) Term Loan from Aditya Birla Finance Limited in the name of M/s. Mauria Udog Limited, where M/s. Veshnodevi Properties Private Limited is co borrower. The loan is secured by way of exclusive charge on farm house at Bougan Villa Avenue Westend Greens Village Rajokari , Delhi Owned by M/s. Veshnodevi Properties Private Limited and

Personal Guarantees of Shri V.K. Sureka- Chairman, Shri Navneet Sureka-Managing Director, Mrs. Deepa Sureka and Smt. Prem Lata Sureka . Since the loan was disbursed to/and utilised by the company, hence, all the transaction related thereto have been recorded in the financial statements of the company. The installments due within the period of next 12 months are Rs. 7,19,04,558 (Previous year 719,05,332).

f) Term Loan Rs. 1650 Lacs and Overdraft Working Capital Limit of RS. 100 Lacs sanctioned by Kotak Mahindra Bank Limited is in the name of M/s. Mauria Udyog Limited. The loan is secured by way of exclusive charge on farm land area ad measuring 68 bighas & 19 biswas (14.568 acres) in jhatikra village tehsile kapashera district South -West Delhi -110043 owned by M/s. Strawberry Star India Private Limited and Personal Guarantees of Shri Navneet Surekha, Shri .Vishnu Kumar Surekha , Mr. Akhil Kumar Surekha , CG of M/s. Strawberry Star India Private Limited and Letter of Comfort from M/s. Jotindra Steel & Tubes Limited . All the transaction related thereto have been recorded in the financial statements of the company. The installments due within the period of next 12 months are Rs. 2,73,05,808 (Previous year Nil).

g) Over Draft /Shipping Loan- Pre Shipment Credit/ Bills Limit- Post Shipment Credit and Non-Fund Base Limits for Letter of Credits, Bank Guarantees and/or Forward Exchange contracts of Rs. 1,96,00,00,000 (Rupees One hundred Ninety Six Crore only ) from Karnataka Bank Limited are Secured by way of charge over entire current assets of the Company, both present and future on pari-passu with Allahabad Bank and Andhra Bank and also collaterally secured by way of Equitable mortgage of Land & Building/Industrial infrastructure situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, Plant & Machinery and other fixed assets (except vehicles which are financed by other financial institutions) and Personal Guarantees of Shri V.K. Sureka, Chairman , Shri Navneet Sureka, Managing Director, Outstanding Bank Guarantees/Letters of Credit were also secured by charge created in favour of the Bank.

h) Working Capital Limits from Allahabad Bank consists of Fund Base Limits of Rs. 20,00,00,000/- (Rupees Twenty Crores only) and Letter of Credit Limit of Rs. 80,00,00,000/- (Rupees eighty Crores only) are secured by way of charge over entire current assets of the Company, both present and future on pari-passu basis with Karnataka Bank and Andhra Bank and also collaterally secured by way of Registered mortgage of 4.09 Acre agricultural Land known as Mauria Garden situated at samalka village , tehsil Vasant Vihar, Dist. South West Near Rajokri Flyover NH-8 New Delhi and Personal Guarantees of Shri V.K. Sureka, Chairman, Shri Navneet Sureka, Managing Director and Shri Akhil Sureka and Corporate Guarantees of M/s Deepak Hotels Pvt. Ltd.

i) Working Capital Limits of Rs. 42,40,00,000 (including adhoc limit of Rs. 2.40 crore ) from Andhra Bank are secured by way of charge over entire current assets of the Company, both present and future on pari-passu basis with Karnataka Bank and Allahbad Bank and also collaterally secured by way of pari passu charge on Land admeasuring 23.34 acres & Building/Industrial infrastructure thereon situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, to be shared between Karnatka Bank and Andhra bank, and Personal Guarantees of Shri V.K. Sureka, Chairman and Shri Navneet Sureka,Managing Director.

j) Auto and Equipments Loans from HDFC BANK LTD. , Tata Capital Financial Services Limited , Karnataka Bank Limited and Kotak Mahindra Bank Limited are secured by way of Hypothecation of the Vehicles/Equipments financed by the Bank and Personal Guarantee of Shri V.K. Sureka, Chairman and Shri Navneet Sureka, Managing Director of the company.

k) Loan from Tata Capital Financial Services is secured by way of Personal Guarantee of Shri V.K. Sureka, Chairman and Shri Navneet Sureka, Managing Director of the company.

l) The Rupee Term Loan of Rs. 20,00,60,996 from Dewan Housing Finance Limited is in the name of M/s Mauria Udyog Limited where M/s S.K.D. Estates Private Limited , Sh. Vishnu Kumar Sureka is the co-borrower & secured against mortgage of Property at Farm House at F-28 known Floris bansal Mustil NO.18,Killa- .20min(1-0), 21(6-14), 23/1(4-16), Vill Samalaka Bandh Road, New Delhi-110037 belongs to M/s S.K.D. Estates Private Limited, Since the Loan was disbursed to/and utilised by the company , hence all the transaction related thereto have been recorded in the Financial Statements of the Company.The principal Installments due within the period of next 12 months are Rs.1,12,01,657(Previous Year NIL).

Acceptances amounting to Rs.133,48,36,176 (Previous year Rs.127,62,01,673) represents letters of credit/counter Guarantee issued to suppliers out of Non Fund base limits sanctioned by the following banks :

NOTE -1 - NOTES ON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2018

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements upto the year ended 31st March 2017 were prepared in accordance with the accounting standard rules 2006 (as amended) and other relavent provisions of the companies act, 2013 (Indian GAAP).

The ministry of corporate affairs (MCA) issued a notification on 16th February, 2015, making Indian Accounting standards, issued under section 133 of companies act, 2013 mandatory for certain class of companies.

As per notification, Ind AS is mandatory for the company for the financial year commencing 1st April 2017. Accordingly, the company has adopted Ind AS from 1st April 2017 and the financial statements for the year ended 31st March 2018 have been prepared in accordance with the principles laid down in the said Ind AS.

The financial statements are presented in Indian rupees, which is the functional currency of the company and the currency of the primary economic environment in which the company operates.

The financial statements have been prepared on a historical cost basis, except the following assets and liabilities:

i) Certain financial assets such as Investments are measured at fair market value (refer account policy regarding financial instruments).

ii) Employee’s define benefit plan as per actuarial valuation.

iii) Plant, property and equipment are measured at historical cost concept method.

2 FIRST TIME ADOPTION OF Ind AS

The company has restated the financial statement as at 1st April 2016 (opening), being the transition date, on the following basis:

The amount of transition reserve (component of retained earings) arising on the same is given below:

a) All tangible assets, including poperty, plant and equipments, and intangible asssets were taken at historical cost and hence no adjustments is required in financial statements.

b) Investments have been assessed at fair values.

c) The balances in revaluation reserve account (Rs 2002.25 lakhs credit) is transferred to transition reserve account.

Exemptions awailed as per Ind AS 101:

1) Past business combination:

The company has elected not to apply Ind AS 103-Business combination retrospectively to pass business combination that accured before the transition date of 01-April-2016 consequently, the company has kept the same classification for the past business combination as in its GAAP financial statements.

2) Propety, Plant and Equipments:

The company has elected to measure the PPE at historical cost method as was prevailing in the previous financial statements.

3) Investments in Subsidiaries & Associates :

There is no subsidiary of the company.

4) Fair value of financial Assets and Libilities:

As per the Ind AS exemption, the company has not fair valued the financial assets and libilities retrospectively and measured the same prospectively.

1 As per consistent accounting practice followed by the Company, Excise Duty aggregated approximately to Rs.NA (Rs. 83,11,327 ) on finished goods not cleared from factory is neither provided for nor the same as considered for valuation of Closing Stock. This policy has no impact on the profit for the year.

2 Estimated amount of contracts remaining to be executed on Capital accounts Rs. 1,28,89,956 (Rs. 1,60,93,731 ) against which advances made amounting to Rs.1,17,45,956 (Rs.1,44,56,874).

3 The Company purchased building and plant & machinery in Court Auction for Rs.85,21,000 in earlier years out of which Rs.43.00 Lacs was allocated to Land & Building vide Court Order for registration of properties, the Board of Directors allocated Rs.10.00 Lacs to Land and Rs.33.00 Lacs to Building respectively and depreciation charged accordingly. Out of plant & machinery so purchased certain machineries have been sold in earlier years in respect of which sale value has been adjusted in the cost of plant & machinery in the respective years.

The Company has filed a suit against the Hong-Kong and Shanghai Banking Corporation for realisation of Rs.19,34,730 for expenses incurred in connection with clearing the title of Property which was purchased in Court Auction and other damages/losses suffered by the Company for which no adjustment has been made in the books of accounts.

4 (i) In pursuance of liberal policy of Government to allow parallel marketing of Liquefied Petroleum Gas. Company started LPG division for marketing of Liquefied Petroleum Gas during the year 1993-1994, but due to unfeasibility, the said division as per an agreement made on 12th August, 1994 had already been transferred to another Company M/s BYGGING INDIA LIMITED and all the expenditures, income and liabilities had been transferred to the said Company from the date of inception to the date of agreement.

(ii) Recovery suit for Rs.32,40,707 filed against Bygging India Ltd.by the dealers of the above referred LPG Division is also pending with the Honorable Delhi’ High Court wherein the Company has also been made a party.

(iii) A Suit for recovery of Rs. 26,12,863 has been filed by M/s ESS ESS Chemitech in the civil court at Faridabad against which the company has incured Rs. 30,78,351 on account of inferior paint supplied by M/s ESS ESS Chemitech and the balance of Rs. 4,65,488 is recoverable from M/s ESS ESS Chemitech as on 31.03.2018

5 Rs. 2,06,30,092 in respect of insurance claim loged on New India Assurance Company Faridabad , for damage cause due to fire broke out on 19/06/2017 in the Terry towel Unit of the company in Faridabad against which the Insurance Company had paid Rs. 89,24,638 and for the balance amount the company has lodged the claim in the court of law.

6 The Company is in the process of identifying Micro, Small and Medium Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the Company to ascertain whether payment to such enterprises has been done within 45 days from the date of acceptance of supply of goods or services rendered by such enterprises and to make requisite disclosure. The disclosure as required under the said act is as under:

7 In the opinion of the management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Sundry Debtors, Sundry Creditors and Loans and Advances and commission on sales & purchases are however, subject to confirmations and adjustments, if any.

8 Sales is net of:

(i) Gain on Exchange fluctuation (net) Rs.9,98,60,804.58 (previous year Rs. (1,47,10,852 ),though in consonance with the accounting policy consistently followed by the company but is in contravention of Accounting Standard AS 11. where the same should have been reported separately.

(ii) Expense on repairs of exported goods outside India Rs. NIL (previous year Rs.Rs. 15,14,724)

9 Derivative Instruments and Unhedged Foreign Currency Exposure

(i) Forwarded Contract Outstanding at the Balance sheet date. NIL(NIL)

(ii) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

Amount receivable and payable as at March 31, 2018 in foreign currency on account of the following:

10 Comparative figures for the previous year have been re-grouped re-cast and re-arranged wherever necessary and figures in brackets represent previous year figures.

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Mar 31, 2016

1. Term loans from Karnataka bank limited is Secured by way of Plant and Machinery funded and collaterally secured by way of equitable mortage of Land & Building/Industrial infrastructure situated of Sohna Road Mauza Gouchi, Ballabgarth District. Fairidabad Plant & Machinery and other fixed assets on pari passu basis with Andhra Bank and Personal Guarantees of Shri V.K Sureka (Chairman) and Shri Navneet Sureka (Managerial Director). The principal due with the period of next twelve months are Rs. 26,12,222.

2. The Rupee Term loan from Religare Finvest Limited consist three previous year two joint loans secured against mortgage of Property of Farm House at Mustil No. 20/2 21, 23/1, village Samalaka. Vasant Vihar, New Delhi belongs to M/s S.K.D. Estates Private Limited. Since the Loans was disbursed to/ and utilized by the company hence all the transaction related thereto have been recorded in the Financial statements of the Company as detailed there under.

Loan No. 1 Jointly in the name of M/s S.K.D Estates Private Limvfgited, Maura Udyog Limited. Mr. Vishnu Kumar Sureka, Mr. Naveen Kumar Sureka, Mrs. Deepa Sureka and Mr. Pramod Kumar Agarwal and Biharji Infotech Pvt. Ltd. The Principal Due within the period of next twelve months are Rs. 1,25,28,746 (Previous year Rs. 1,20,86,386).

Loan No. 3. Jointly in the name of M/s Mauria Udyog Limited, M/s S.K.D. Estate Private Limited Mr. Novneet Kumar Sureka Mrs. Deepa Sureka and Mr. Pramod Kumar Agarwal, Mr. Mishnu Kumar Sureka and Mrs. Prem Lata Surekaand. The principal due within the period of next twele months are 51,42,914 (Previous yer Rs. NIL).

3. Term Loan from ICICI Home finance is a joint loan in the name of M/s. Bihariji Ispal Udyog Ltd. Shri Naveen Kumar Sureka and the Mauria Udyog Limited. The loan is secured by way of equitable mortage of Property by way of deposit of the life deeds of the mortgage in respect of the Property of apartment No. PNA011. The Pinnacle in DLF City Gurgoan owned by the company, and also personal guarantee of Mr. Navven Kumar Sureka, Managng Director of the Company. Since the loan was disbursed to /and utilized by the co-applicant M/s Mouria Udyog Limited, hence all the transactions related thereto have been recorded in the financial statements of the said co-applicant. The principal installment due within the period of next 12 months are Rs. 27,01,666( Previous year Rs. 22,64,522).

4. Term Loans from ICICI Home Finance are joint loans in the name of M/s Mauria Udyog Limited, Sri Navneent Kumar Sureka and Shri. Vishnu Kumar sureka. The loans are secured by way of first and exclusive charge over the property situated of A-24 24^th floor, Tower-Z, A-25, Tower-X and C-4. Tower –Y, Sector-50, TGB Meghdutam Noida and personal guarantee of Mr. Navneet Kumar Sureka. Managing Director of the company and Sh. Vshnu Kumar Sureka Chairman of the company. Since the loans were disbursed to /and utilized by the company, hence at the transaction related thereto have been recorded in the financial statements of the company. The principal due within the period of next 12 months are Rs. 81,91,505 (Previous Year Rs. 68,39,901).

5. Term Loan from housing Department Finance Corporation Limited is a joint loan in the name of Shri Navven Kumar Sureka, M/s Bhama Properties Private Limited, Mrs, Prem Lata Sureka, M/s. Mauria Udyog Limited, Sh. Vishnu Kuar Sureka and Mrs. Deepa Sureka. The loan is secured by way of equitable mortgage of property by way of deposit of the title deeds in respect of the agricultural land measuring 12 Bigha out of Khasara No. 921/1min(1-9), 922(5-6), Situated on village Rajokat, fehsit Vasant Vihar New Delhi owned by the M/s Bhama Properties Pvt. Ltd. Since the loan was disbursed to /and utilized by the company, hence of the transaction related thereto have been recorded in the financial statements of the company. The installments due within the period of next 12 months are Rs. 95,12,014 (Previous Years 83,58,298.

6. Term Loan from HDB Finance Services Limited is a joint loan in the name of M/s. Moura Udyog Limited, Bihariji Infotech Private Limited. Naveen Kumar Sureka HUF, Mrs. Deepa Sureka Kumar Agarwal, Shri. Naveen Kumar Sureka and Mrs. Prema Lata Sureka. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the Property of Plot No. 662, Udyog Vihar, Phase-V Gurgan, Haryano owned by M/s. Bihariji InfoTech Pvt. Ltd. Since the loan was disbursed to/and utilized by the company, hence all the transaction related thereto have been recorded in the financial statement of the company. The installments due within the period of next 12 months are Rs. 1,11,22,574 (Previous Year 1,12,91,613).

7. Term Loan from Aditya Birfa Finance Limited in the name of M/s. Mauria Udyog Limited, where M/s, Veshnodevi Properties Private Limited is to borrower. The loan is secured by way of executive charge on form house of Bougor, Vila Avenue Westend Greens Village Rajakari. Delhi Owned by M/s. Veshnodevi Properties Private Limited and Personal Guarantees of the loan was disbursed to/and utilized by the company, hence all the transaction related thereto have recorded in the financial statements of the company. The installments due within the period of next 12 months are Rs. 2,64,00,000( Previous year NIL).

8. Over Draft /Shipping Loan Pre Shipment Credit/ Bills Limit- Post Shipment Credit and Non-Fund Bose Limits for Lender of Credits, Bank Guarantees and/or forword Exchange contacts from Karnataka Bank Limited are Secured by way of charge entire current assets of the company, both present and future on pari-passu with Alahabad Bank and Andhra Bank and also collaterally secured by way of Equitable mortgage of Land & Building/Industrial Infrastructure situated at Sahnc Road, Mauza Gouchi, Bollabgarh District, Foridobod, Plant & Machinery and other fixed assets (except vehicles which are financed by other financial Institutions) and Personal Guarantees of V.K Sureka, Chairman, Shri, Navneet Sureka, Managing Director, Outstanding Bank Guarantees/Letters of Credit were also secured by charge credit in favour of the Bank.

9. Working Capital Limits from Allahabad Bank consist of Rs. 20,00,000,0000:- (Rupees Twenty Crores Only) one letter of credit limit at Rs. 80,00,00,000/- (Rupees eighty crores only) are secured by way of charge over entire current assets of the company, both present and future on pari-passu basis with Karnataka Bank and Andhra Bank and also current assets secured by way of Registered mortgage of 4.09 Acre agricultural Land known as Mauria Gurden situated at samake village, Vasant vihar Dist. South West Near Rajkif Flyover NH-8 New Delhi and Personal Guraretees of Shri. V.K Sureka Chairman,Shri Navneet Managing Director and Shri. Sureka and Corporate Guarantees of M/s Deepak Hoel Pvt. Ltd.

10. Working Capital Limits of Rs. 40,00,00,000 from Andhra Bank are secured by way of over entire current asets of the Company, both present and future on pari-passu basis with karntaka Bank and Allahabad Bank and also secured by way of pari-passu charge on Landor measuring 23.34 cross & Building(Industrial Infrastructure thereon situated at Sohna Road , Mouza Gouchi Ballabgam District. Faidabad to be shared between Karnataka Bank and Andhra Bank and Personal Guarantees of Shri. V.K. Sureka Chairman , Shri Navneet Sureka Managing Director.

11. Working Capital facilities from Aditya Bank Finance Limited is secured by way of exclusive charge on form house of Bougon Villa Avenue Westend Greens Village Ropokari, Delhi Owned by M/s. Veshnadevi Properties private Limited and Personal Guarantees of Shri V.K. Sureka Chairman , Shri. Navneet Sureka Managing Director M/s Deepa Sureka and Smt. Prema Lata Sueka.

12. Working Capital Limits from Bank of Indio are secured by way of Conform letter from steel Authority Limited with recourses backed by letter of Credit /Bank guarantee.

13 Auto and equipments Loans from HDFC, BMW Financial Services Limited, Tata Capital Financial Services ICIC Bank Limited and Kotak Mahindra Bank Limited are secured by way of Hypothication of the Vechicles/Equipments financed by the bank and Personal Guarantees of Shri. V.K. Sureka, chairman and Shri. Navneet Sureka Managing Director of the company.

14. Rs. 1,77,07,729 Equivalent UAE Dirhom 19,79,952 (Previous year Rs. 2,29,61,163 Equivalent UAE Dirhom 13,53,842 ) in respect of a Forward lease Housing arrangements with M/s Taeeweel Pjsc Dubot UAE entered by the Dubal Branch of the Company jointly with Navneet Sureka, secured by way of mortgage of the deeds of the property of the company of commercial Unit no. 511 Liberty House. DISC Dubai UAE costing Rs. 7,16,65,245(Equivalent UAE Dirham 58,50,224).

The total exposure under the aforesaid agreement in foreign currency amounting to UAE Diham 28,84,000 repayable on 111 Equaled monthly installments (EMI of UAE Diham 39,951 per month) along with a pre determined Variable Rental @ 10% p.a. (termed as profit in the respective agreement with the party) and taxes/levies thereto. Since the amount of variable rental paid together with the State Levy in the form of “Takaful Family Protection contribution “ are in the nature of “payment of interest on borrowings”, hence forth the said variable Rental period during the year amounting to Rs. 18,12,722 Equivalent UAE Dirham 1,00,317 (Previous year Rs.28,51,191 Equivalent UAE Dirhom 168,107) has been shown under the head Interest to others.

The outstanding balance as on the balance sheet date has been converted into reporting currency of the exchange rate prevailing as on that date. The Installments due within the period of next twelve months are Rs. 37, 45,255 (Equivalent UAE Dirhom 2,07,263,70).

15. Acceptance amounting to Rs. 156,15,21,579 (Previous year 92,24,09,701) represents letters of credit/counter Guarantees (including Foreign currency buyer credit amounting to Rs. 1,38,61,06,479 (Previous year 70,35,55,825) issued to suppliers out of Non Fund base limits sanctioned by following Banks.

16. As per consistent according practice followed by the Company. Excise Duty aggregate approximately to Rs. 39,58,984(Rs. 83,11,327) on finished goods not cleared from factory is neither provided for nor the same as considered for valuation of Closing Stock. This policy has no impact on the profit for the year.

17. Estimated amount of contracts remaining to be executed on Capital accounts Rs. 1,33,98,506 (Rs. 1,37,86,542) against which advances made amounting to Rs. 1,37,62,830)

18. The Company purchased building and plan & machinery in Court Auction for Rs. 85,21,000 in earlier years out of which Rs. 43.00 Lac was allocated to Land & Building vide Court Order for registration of properties. The Board of Directors allocated Rs. 10.00 Lacs to Land Rs. 33.00 Lacs to Building respectively and depreciation charged accordingly. Out of plant & machinery so purchased certain of plant & machinery in the respective years.

The Company has filed a suit against the Hong-Kong and Shanghai Banking Corporation for realization of Rs. 19,34,730 for expenses incurred in connection with clearing the little of Property which was purchased in Court Auction and other damages/losses suffered by the Company for which no adjustment has been made in the books of accounts.

19. In pursuance of liberal policy of Government to allow parallel marketing of Liquefied Petroleum Gas, Company started LPG division for marketing of Liquefied Petroleum Gas during the year 1993-1994 but due to unfeasibility, the said division as per an agreement made on 12^th August, 1994 had already been transferred to another Company M/s BYGGING INDIA LIMITED and all the expenditure income and liabilities to the said Company from the date of inception to the date of agreement.

20. Recovery suit for Rs. 32,40,707 filed against Bygging India Ltd. By the dealers of the above referred LPG Divisions is also pending with the Honorable Delhi High Court wherein the Company has also been made a partly.

21. The Competition commission of India vide dated 24/02/2012 in re. Suo Motu case no. 3/2011 against LPG Cylinders manufactures has imposed a penalty of Rs. 36,37,86,806. The Company had preferred on appeal against the said order before the Honorable Computation Appellate Tribunal. The Tribunal vide order dated 01.03.2016 has deleted the aforesaid demand.

22. The Company is in the process of identifying Micro. Small and Medium Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore it is not possible for the Company to ascertain whether payment to such enterprises has been done within 45 days from date of acceptance of supply of goods or services rendered by such enterprises and to make requisite disclosure.

23. In the opinion of the management Current Assets Loans and Advances have value on realized in the ordinary course of business of least equal to the amount of which they are stated. The balances of Sundry Debtors, Sundry Creditors and Loans and Advances and commission on sales & purchases are however.

24. Sale is net of:

Gain on Exchange fluctuation (net) Rs. 18,70,357 (Previous Year Rs. 1,44,99,893) through in consonance with the accounting policy consistently followed by the company but is in conservation of Accounting Standard AS 11, where the same should have been reported separately.

25. Expenses on repairs of exported goods outside India Rs. 8,87,310 (Previous year Rs. 97,95,055).

---

Mar 31, 2014

1. a) Term Loan from Karnataka Bank Limited is Secured by way of hypothecation of Plant and Machinery funded and collaterally secured by way of Equitable mortgage of Land & Building/lndustrial infrastructure situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, Plant & Machinery and other fixed assets and Personal Guarantees of Shri V.K, Sureka, Managing Director, Shri Navneet Sureka, Director and Shri Akhil Sureka, Director. The principal due within the period of next twelve months are Rs.96,00,000.

b) The Rupee Term Loan from Religare Finvest Limited consist two joint loans secured against mortgage of Property at Farm House at Mustil NO.18, Khasra No.20/2, 21, 23/1, Village Samalaka, Vasant Vihar, New Delhi belongs to M/s S.K.D. Estates Private Limited, Since the Loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyog Limited, hence all the transaction related thereto have been recorded in the Financial Statements of the Company, as detailed hereunder:

(i) Jointly in the name of M/s S.K.D. Estates Private Limited, Mauria Udyog Limited, Mr. Vishnu Kumar Sureka, Mrs. Prem Lata Sureka, Mr. Navneet Kumar Sureka, Mrs. Deepa Sureka and Mr. Akhil Kumar Sureka The Instalments due within the period of next twelve months are Rs. 1,25,63,983 (Previous year 1,09,31,456)

(ii) Jointly in the name of M/s S.K.D. Estates Private Limited, Mauria Udyog Limited, Mr. Mrs. Prem Lata Sureka, Mr. Navneet Kumar Sureka, Mrs: Deepa Sureka and Mr. Pramod Kumar Agarwai and Bihariji Infotech Pvt. Ltd. The principal due within the period of next twelve months are Rs. 93,26,396 (Previous year 85,72,742)

c)(i)Term Loan from ICICI Home Finance is a joint loan in the name of M/s. Bihariji Ispat Udyog Ltd. and Shri Navneet Kumar Sureka, where Mauria Udyog Limited , is a Co-applicant. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds for mortgage in respect of the Property at apartment No. PNA011, The Pinnacle In DLF City Gurgaon owned by the company, and also personal guarantee of Mr. Navneet Kumar Sureka, Managing Director of the Company. Since the loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyoug Limited , hence, all the transaction related there to have been recorded in the financial statements of the said co- applicant .The principal due within the period of next 12 months are Rs. 20,04,682 (Previous year Rs.17,61,721).

(ii)Term Loans from ICICI Home Finance are joint loans in the name of M/s. Mauria Udyog Limited ,Shri Navneet Kumar Sureka and Shri Vishnu Kumar sureka. The loans are secured by First and exclusive charge over the property situated at A-24, 24th floor, Tower-Z, A-25, Tower-X and C-4, Tower-Y , sector-50, TGB Meghdutam Noida and personal guarantee of Mr. Navneet Kumar Sureka, Managing Director of the Company and Sh. Vishnu Kumar Sureka chairman of the company. Since the loans were disbursed to/and utilised by the co-applicant M/s Mauria Udyoug Limited , hence, all the transaction related there to have been recorded in the financial statements of the said co- applicant .The principal due within the period of next 12 months are Rs.61,45,698 (Previous year Rs.NIL).

d) Term Loan from Housing Development Finance Corporation Limited is a joint loan in the name of Shri Navneet Kumar Sureka, M/s Bhama Properties Private Limited, Mrs. Prem Lata Sureka,M/s. Mauria Udog Limited, Sh. Vishnu Kumar Sureka and Mrs. Deepa Sureka , where Mauria Udyog Limited , is a Co-applicant. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the agricultural Land measuring 12 Bigha out of Khasara No. 921/1min(1-9),922(5-5)and 923(5-6), Situated at village Rajokari, tehsil Vasant Vihar, New Delhi owned by the M/s Bhama Properties Pvt. Ltd. Since the loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyog Limited , hence, all the transaction related there to have been recorded in the financial statements of the said co- applicant. The instalments due within the period of next 12 months are Rs.67,91,024(Previous Year 65,23,619)

e) Term Loan from HDB Financial Services Limited is a joint loan in the name of M/s. Mauria Udog Limited, Bihariji InfoTech Private Limited, Navneet Kumar Sureka HUF, Mrs. Deepa Sureka, Sh Pramod Kumar Agarwai, Shri Navneet Kumar Sureka and Mrs. Prem Lata Sureka , where Mauria Udyog Limited , is a Co-applicant. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the Property at Plot No. 662, Udyog Vihar, Phase-V, Gurgaon, Haryana owned by the Bihariji InfoTech Pvt. Ltd. Since the loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyog Limited , hence, all the transaction related there to have been recorded in the financial statements of the said co- applicant. The installments due within the period of next 12 months are Rs. 1,12,91,613 (Previous year 99,46,586).

f) Over Draft /Shipping Loan- Pre Shipment Credit/ Bills Limit- Post Shipment Credit and Non-Fund Base Limits for Letter of Credits, Bank Guarantees and/or Forward Exchange contracts from Karnataka Bank Limited are Secured by way of charge over entire current assets of the Company, both present and future on pari-passu with Allahabad Bank and also collaterally secured by way of Equitable mortgage of Land & Building/lndustrial infrastructure situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, Plant & Machinery and other fixed assets (except vehicles which are financed by other financial institutions) and Personal Guarantees of Shri V.K. Sureka, Managing Director, Shri Navneet Sureka, Director and Shri Akhil Sureka an Ex- Director, Outstanding Bank Guarantees/Letters of Credit were also secured by charge created in favour of the Bank.

g) Working Capital Limits from Allahabad Bank consists of Fund Base Limits of Rs. 20,00,00,000/- (Rupees Twenty Crores only) and Letter of Credit Limit of Rs. 80,00,00,000/- (Rupees eighty Crores only) are secured by way of charge over entire current assets of the Company, both present and future on pari-passu with Karnataka Bank and Allahabad Bank and also collaterally secured by way of Registered mortgage of 4.09 Acre agricultural Land known as Mauria Garden situated at samalka village , tehsil Vasant Vihar, Dist. South West Near Rajokri Flyover NH-8 New Delhi and Personal Guarantees of Shri V.K. Sureka, Chairman, Shri Navneet Sureka, Managing Director and Shri Akhil Sureka, an EX- Director and Corporate Guarantees of M/s Deepak Hotels Pvt; Limited in favour of the Bank . -

h) Working Capital Limits from Indian Overseas Bank consists of Fund Base Limits of Rs. 15,00,00,000/- (Rupees Fifteen Crores only) and Letter of Credit Limit of Rs. 15,00,00,000/- (Rupees Fifteen Crores only) are secured by way of charge over entire current assets of the Company, both present and future on pari-passu with Karnataka Bank and Allahabad Bank and also collaterally secured by way of charge on Land admeasuring 23.34 acres & & Building/lndustrial infrastructure thereon situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, and Personal Guarantees of Shri V.K. Sureka, Chairman, Shri Navneet Sureka, Managing Director and Shri Akhil Sureka, an EX- Director.

i) The Auto and Equipments Loans from HDFC , BMW Financial Services Limited and ICICI Bank Limited are secured by way of Hypothecation of the Vehicles/Equipments financed by the Bank and Personal Guarantee of Shri V.K. Sureka, Chairman and Shri Navneet Sureka, Managing Director of the company.

j) Rs.2,77,62,983 Equivalent UAE Dirham 1651575.46 (Previous year Rs. 2,88,91,246 Equivalent UAE Dirham 19,54,752.76 ) in respect of a Forward Lease Housing arrangement with M/s Tamweel PJSC, Dubai, UAE entered by the Dubai Branch of the Company, against which the title deeds of the property of the company at commercial Unit No. 511, Liberty House, DISC, Dubai, UAE, costing Rs.7,16;65,245(Equivalent UAE Dirham 58,50,224.06)has been put as mortgage with the Tam well PJSC.

The total exposure under the aforesaid agreement in foreign currency amounting to UAE Dirham 28,84,000 is repayable in 111 Equated monthly instalments (EMI of UAE Dirham 39,951 per month) along with a pre determined Variable Rental @10% p.a. (termed as profit in the respective agreement with the party) and taxes/levies thereto . Since the amount of variable rental paid together with the State Levy in the form of " Takaful Family Protection contribution" are in the nature of "payment of Interest on borrowings", hence forth the said variable Rental paid during the year amounting to Rs, 27,73,897 Equivalent UAE Dirham 1,65,014.70 (Previous year Rs. 29,63,625 Equivalent UAE Dirham 2,00,515.90) has been shown under the head Interest to others .

The outstanding balance as on the balance sheet date has been converted into reporting currency at the exchange rate prevailing as on that date. The Installments due within the period of next twelve months are Rs.44,41,132 (Equivalent UAE Dirham 4,79,412).

2. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: Current year Previous year Rs. Rs.

a) Letters of Credit/Guarantees/ 248,416,865 304,054,621 Bond issued by Banks

b) Letters of Credit/Guarantees 953,426 NIL /Bond issued by Foreign Banks $ Euro 202,461 Euro 36668

c) Proportionate value of duty 7,777,847 4,394,432 saved in terms of Letter of Undertaking given to Jt. Director General of Foreign Trade under Advance Authorisation Scheme and Export Promotion Capital Goods Scheme, where export obligation can be completed in future years

d) Claims against the Company not Amount Amount acknowledged as debts Unascertained Unascertained

e) Surety Bond issued in favour 200,000 200,000 of Haryana Sales Tax Department Towards VAT and Central Sales Tax Liability of a third party M/s Balaji

3. The Income tax department has carried out a search and seizer operation on 7th of August 2013, U/S 132 of the Income Tax Act, 1956"(Act)", the Income Tax Department have seized a bunch of documents and Cash worth Rs.32Lacs . The cash so siezed has been adjusted as Advance Income tax payments in accounts. However, no discrepancies have been reported by the department till date.

4. As per consistent accounting practice followed by the Company, Excise Duty aggregated approximately to Rs. 61,41,725 (Rs.53,81,796) on finished goods not cleared from factory is neither provided for nor the same as considered for valuation of Closing Stock. This policy has no impact on the profit for the year.

5. Estimated amount of contracts remaining to be executed on Capital accounts Rs. 2,21.10.327 (Rs. 2,97,04,829 ) against which advances made amounting to Rs. 2,49,85,277(Rs. 3,84,60,751).

6. The Company purchased building and plant & machinery in Court Auction for Rs.85,21,000 in earlier years out of which Rs.43.00 Lacs was allocated to Land & Building vide Court Order for registration of properties, the Board of Directors allocated Rs. 10.00 Lacs to Land and Rs.33.00 Lacs to Building respectively and depreciation charged accordingly. Out of plant & machinery so purchased certain machineries have been sold in earlier years in respect of which sale value has been adjusted in the cost of plant & machinery in the respective years.

7. The Company has filed a suit against the Hong-Kong and Shanghai Banking Corporation for realisation of Rs.19,34,730 for expenses incurred in connection with clearing the title of Property which was purchased in Court Auction and other damages/losses suffered by the Company for which no adjustment has been made in the books of accounts.

8.(i) In pursuance of liberal policy of Government to allow parallel marketing of Liquefied Petroleum Gas.

Company started LPG division for marketing of Liquefied Petroleum Gas during the year 1993-1994, but due to unfeasibility, the said division as per an agreement made on 12th August, 1994 had already been transferred to another Company M/s BYGGING INDIA LIMITED and all the expenditures, income and liabilities had been transferred to the said Company from the date of inception to the date of agreement.

(ii) Recovery suit for Rs.32,40,707 filed against Bygging India Ltd.by the dealers of the above referred LPG Division is also pending with the Honorable Delhi' High Court wherein the Company has also been made a party.

9.(i) The Competition Commission of India vide order dated 24/02/2012 in re. Suo Motu case no. 3/2011 against

LPG Cylinders manufacturers has imposed a penalty of Rs. 36,37,86,806 . The Company has preferred an appeal against the said order before the Honorable Competition Appellate Tribunal. The Tribunal in its interim order dated 10/10/2012. has granted a stay order subject to deposit of Rs. 3.64,06,655 being 10% of total demand and and to furnish a Guarantee for balance Rs.32,74,08,126 being 90% of total demand. The Honorable tribunal vide its order dated 23/12/2013 further decided that the aforesaid interim order will stay till the Commission made an final order afresh.

(iii) Claims Includes Rs. NIL (previous Year Rs. 7,02,05,400) in respect of insurance claim lodged on United India Insurance co . limited (New Delhi), for damage caused due to fire broke out on 19/10/2012 in the Terry Towel Unit of the company in Faridabad.

11.In the opinion of the management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Sundry Debtors, Sundry Creditors and Loans and Advances and commission on sales & purchases are however, subject to confirmations and adjustments, if any.

12. Sales is net of:

(i) Gain on Exchange fluctuation (net) Rs. 3,14,91,076(previous year Loss Rs. 46,49,934 ),though in consonance with the accounting policy consistently followed by the company but is in contravention of Accounting Standard AS 11. where the same should have been reported separately.

(ii) Expense on repairs of exported goods outside India Rs. 1,10,93,000 (previous year Rs. nil)

15 RELATED PARTY DISCLOSURE (AS IDENTIFIED BY THE MANAGEMENT), AS REQUIRED BY ACCOUNTING STANDARD 'AS-18' :

1) LIST OF RELATED PARTIES

(a) Where Control Exists:-

(i) Akshi Exports (P) Ltd-.

(ii) Bhama Properties (P) Ltd.

(iii) Bihariji Fancy Fibers & Fabrics Ltd.

(iv) Bihariji Ispat Udyog Ltd.

(v) Bihariji Solar Power Pvt. Ltd.

(vi) Bihariji Vidyut Pvt. Ltd.

(vii) Chakra Exports (P) Ltd.

(viii) Deepak Hotels Private Ltd.

(ix) G L Estates Pvt. Ltd.

(x) J.S.T. Engineering Services Ltd.

(xi) Jotindra Steel & Tubes Ltd.

(xii) JST Solar Energy Pvt. Ltd.

(xiii) JST Solar Vidyut Pvt. Ltd.

(xiv) Magnum Products Pvt. Ltd

(xv) Mauri a Power Generation Pvt. Ltd

(xvi) Mauria Power Projects Pvt. Ltd.

(xvii) Mauria Solar Pvt. Ltd.

(xviii) Puranmal Foods India Pvt. Ltd.

(ixx) Quality Synthetic industries Ltd.

(xx) Ram Forgings Pvt. Ltd.

(xxi) S.K.D. Estates Private Ltd.

(xxii) Saroj Metal Works Pvt. Ltd.

(xxiii) Sri Narayan Steel industries Pvt. Ltd.

(xxiv) Srinarayan Raj Kumar

(xxv) Srinarayan Raj Kumar Merchants Ltd.

(xxvi) Sureka Tubes Industries Pvt. Ltd.

(xxvii) Udayanchal Leasing Exports (P) Ltd.

(xxviii) VL Estates (Pj Ltd.

(xxix) VL Land & Housing Pvt. Ltd.

(xxx) V.K. Flats Pvt. Ltd.

(xxxi) Vaishnoudevi Properties Pvt. Ltd.

(xxxii) Vee Em Infocentre Pvt. Ltd.

(xxxiii) Vee Kay Surgical Pvt. Ltd.

(xxxiv) Bihariji Infotech Pvt.Ltd.

(xxxv) Eurospa Terry Towels Pvt. Ltd.

(xxxvi) Taanz Fashions India Pvt. Ltd

(xxxvii) G.L. Land and Housing Pvt. Ltd

(b) Key Management Personnel

1 Mr, V.K.. Sureka (Managing Director)

2 Mr. N.K., Sureka (Managing Director)

3 Mr. A.K. Sureka (Director)

4 Mr. K. M Pai (Whole Time Director)

(c) Relative of key Management

personnel (with whom transaction have taken place during the

1. Smt. P.L.Sureka (Wife of Chairman)

2. Smt. Deepa Sureka (Wife of Managing Director)

3. Smt. Anuradha Pai (Wife of a Director)

20. Comparative figures for the previous year have been re-grouped re-cast and re-arranged wherever necessary and figures in brackets represent previous year figures.

---

Mar 31, 2013

1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: Current year Previous year RS. RS.

a) Letters of Credit/Guarantees/Bond issued by Banks 304,054,621 1,163,978,472

b) letters of Credit/Gudrantees/Bond issued by Foreign Banks Euro 36668 Euro 26668

c) Proportionate value of duty saved in terms of Letter of Undertaking 4,394,432 4,394,432 given to

d) Director General of foreign Trade under Advance Authorisation Scheme or promotion Capital Goods Scheme, where expert obligation can in future years Company not Amount Amount acknowledged as debts Unascertained Unascertained

e) need in favour Sales lax Department 200,000 200,000 towards

2 Provision has not been made in accounts in respect the following disputed dues :

Sl. Name of the Statute Amount Nature of dues No RS.

1 Competition Act, 2002 363,786,806 Penalty

(363,786,806)

2 Central Excise Act, 1944 NIL Penalty Service Tax GTA (and Cenvat Credit Rule (361,009) for the Year 2006-07

697.712 Service Tax(GTA)

(697 712)

697.712 Penalty Service Tax(GTA)

(697 712)

577,959 Service Tax Credit Availed

(577,959) on Outward Transport

3 Income Tax Act, 1961 1,273,754 Asst. Year 2003-04

See Note Below Order U/s 263 and 143(3)

See Note Asst. Year 2004-05 Below Order U/s 263 and 143(3)

613,148 Asst. Year 2007-08

(613,148) Order U/s 143(3)

Sl. Name of the Statute From Where Dispute is Pending No

1 Competition Act, 2002 Competition Appellate Tribunal

2 Central Excise Act, 1944 Central Excise and Service Tax (and Cenvat Credit Rule Appellate Tribunal New Delhi

Commissioner (Appeals) Central Excise, Faridabad

Commissioner (Appeals) Central Excise, Faridabad

pending for Adjudication before Deputy Commissioner Central Excise, Faridabad

3 Income Tax Act, 1961 Rectification pending before Dy. Comm. Income Tax ,Cir(7) Kolkata

Rectification pending before Dy. Comm. of Income Tax ,Cir(7) Kolkata

Rectification pending before Dy. Comm. of Income Tax ,Cir(7) Kolkata

Note:

The liability for the Asst, year 2003-04 & 2004-05 in respect of the demand raised by the Income tax department, has been provided , though the Appeal before the Commissioner Appeals are yet to be Disposed off.

3 As per consistent accounting practice followed by the Company, Excise Duty aggregated approximately to Rs. 53,81,796 (Rs.37,32,679) on finished goods not cleared from factory is neither provided for nor the same as considered for valuation of Closing Stock. This policy has no impact on the profit for the year.

4 Estimated amount of contracts remaining to be executed on Capital accounts Rs. 2,97,04,829 (Rs. 4,12,79,084 ) against which advances made amounting to Rs. 3,84,60,751 (Rs. 3,11,48,754).

5 The Company purchased and, building and plant & machinery in Court Auction for Rs.85,21,000 in earlier years out of which Rs.43.00 Lacs was allocated to Land & Building vide Court Order for registration of properties, the Board of allocated Rs. 10.00 Lacs to Land and Rs.33.00 Lacs to Building respectively and depreciation charged Accordingly. Out of plant & machinery so purchased certain machineries have been sold in earlier years in respect which sale value has been adjusted in the cost of plant & machinery in the respective years.

6. Company has filed a suit against the Hong Kong and Shanghai Banking Corporation for realisation of Rs.19,34,730 for expenses incurred in connection with clearing the title of Property which was purchased in Court Auction and other damages/losses suffered by the Company for which no adjustment has been made in the books of accounts.

7 (i) In pursuance of liberal policy of Government to allow parallel marketing of Liquefied Petroleum Gas. Company started LPG division for marketing of Liquefied Petroleum Gas during the year 1993-1994, but due to unfeasibility, the said division as per an agreement made on 12th August,1994 had already been transferred to another Company M/s BYGGING INDIA LIMITED and all the expenditures, income and liabilities had been transferred to the said Company from the date of inception to the date of agreement.

(ii) Recovery suit for Rs.32,40,707 filed against Bygging India Ltd. by the dealers of the above referred LPG Division is also pending with the Honourable Delhi' High Court wherein the Company has also been made a party.

8 (i) The Competition Commission of India vide order dated 24/02/2012 in re. Suo Motu case no. 3/2011 against LPG Cylinders manufacturers has imposed a penalty of Rs. 36,37,86,806 . The Company has preferred an appeal against the said order before the Honourable Competition Appellate Tribunal. The Tribunal in its interim order dated 10/10/2012. has granted a stay order subject to deposit of Rs.3,64,06,655 being 10% of total demand and and to furnish a Guarantee for r balance Rs.32,74,08,126 being 90% of total demand , which were loot from the company's employees On 15/3/2013, in Ghaziabad. A case has been by the Police Department under section 392 of the Indian Penal Code against unnamed persons. investigations an amount of Rs.6.35,000 have been recovered till the signing of the management is hopeful of recovery the balance amount as well, under the circumstances the amount is shown os recoverable and considered good.

in respect of insurance claim lodged on United India Insurance co limited (New Delhi), for damage cased due to fire broke out on 19/10/2012 in the Terry Towel Unit of the company in Faridabad. The Claim lodges is as under and the same has been included in the turnover:

9 The Company is in the process of identifying Micro, Small and Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the Company to ascertain whether payment to such enterprises has been done within 45 days from the date of acceptance of supply of goods or services rendered by such enterprises and to make requisite disclosure. The disclosure as required under the said act

a; Principal amount due to supplier Not ascertained Not ascertained under MSMED Act

b) Interest due to suppliers on above. N.A. N.A.

c) Any payment made to suppliers beyond appointed date (Section 16 of the Not ascertained Not ascertained

d) Interest due and payable to suppliers under MSMED Act. N.A. N.A.

e) Interest accrued & remaining unpaid as at 31.03.2010 N.A. N.A.

f) Interest remaining due & payable as per Section 23 of the Act. N.A. N.A.

10 In the opinion of the management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Sundry Debtors, Sundry Creditors and Loans and Advances and commission on sales & purchases are however, subject to confirmations and adjustments, if any.

11 Sales is net of:

(i) Loss on Exchange fluctuation (net) Rs. 46,49,934.22(previous year Gain Rs. 4,02,27,776 ),though in consonance with the accounting policy consistently followed by the company but is in contravention of Accounting Standard AS 11. where the same should have been reported separately.

12. RELATED PARTIES

i) LIST OF RELATED PARTIES

(a) Where Control Exists:-

(i) Akshi Exports (P) Ltd.

(ii) Bhama Properties (P) Ltd.

(iii) Bihariji Fancy Fibers 8, Fabrics Ltd.

(iv) Bihariji Ispat Udyog Ltd.

(v) Bihariji Solar Power Pvt. Ltd.

(vi) Bihariji Vidyut Pvt. Ltd.

(vii) Chakra Exports (P) Ltd.

(viii) Deepak Hotels Private Ltd.

(ix) G L Estates Pvt. Ltd.

(x) J.S.T. Engineering Services Ltd.

(xi) Jotindra Steel & Tubes Ltd.

(xli) JST Solar Energy Pvt. Ltd.

(xiii) JST Solar Vidyut Pvt. Ltd.

(xiv) Magnum Products Pvt. Ltd

(xv) Mauria Power Generation Pvt. Ltd

(xvi) Mauria Power Projects Pvt. Ltd.

(xvii) Mauria Solar Pvt. Ltd.

(xviii) Puranmal Foods India Pvt. Ltd.

(ixx) Quality Synthetic Industries Ltd.

(xx) Ram Forgings Pvt. Ltd.

(xxi) S.K.D. Estates Private Ltd.

(xxii) Saroj Metal Works Pvt. Ltd.

(xxiiij Sri Narayan Steel Industries Pvt. Ltd.

(xxiv) Srinarayan Raj Kumar

(xxv) Srinarayan Raj Kumar Merchants Ltd.

(xxvi) Sureka Tubes Industries Pvt. Ltd.

(xxvii) Udayanchal Leasing Exports (P) Ltd.

(xxviii) VL Estates (P) Ltd.

(xxix) VL Land & Housing Pvt. Ltd.

(xxx) V.K. Flats Pvt. Ltd.

(xxxi) Vaishnoudevi Properties Pvt. Ltd.

(xxxii) Vee Em Info centre Pvt. Ltd.

(xxxiii) Vee Kay Surgical Pvt. Ltd.

(xxxiv) Bihariji Infotech Pvt.Ltd.

(xxxiv) Eurospa Terry Towels Pvt. Ltd.

(b) Key Management Personnel

1 Mr. V.K.. Sureka (Chairman)

2 Mr. N.K.. Sureka (Managing Director)

3 Mr. A.K.. Sureka (Director)

4 Mr. K. M Pai (Whole Time Director)

(c) Relative of key Management personnel (with whom transaction have taken place during the year).

1 Smt. P.L.Sureka (Wife of Chairman)

2 Smt. Deepa Sureka (Wife of Managing Director)

(d) Other related parties NIL

13 Comparative figures for the previous year have been re-grouped re-cast and re-arranged wherever necessary and figures in brackets represent previous year figures.

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Mar 31, 2012

1. Derivative Instruments and Unhedged Foreign Currency Exposure (i) Forwarded Contract Outstanding at the Balance sheet date.

Particulars of Contract 2011-12 2010-11

Sale Euro to INR ( US$to INR) 5,500,000.00 2,000,000.00

Sale Euro to US ${Euro to INR) - 1,000,000.00



Particulars of Contract Purpose

Sale Euro to INR ( US$to INR) Hedged as expected receivables against future sales

Sale Euro to US ${Euro to INR) Hedged as expected receivables against future sales

The company has entered into Forward contracts to the tune of US$ 55,00,000 (Previous year $ 30,000,000 and 30,000,000 ) for hedging its US Dollar ($) and Indian Rupee [Previous year US Dollar 20,00,000($) and Euro 10,00,000(Rs.)] revenues for a period up to nine months from the date of the Balance Sheet. The Premium paid has been allocated in proportion to the period cover under the balance sheet and future period premium has been carried as prepaid premium on such contracts. Under the said Contracts , the rate of USD INR and Euro INR has been fixed for the entire period of the contract. Valuation of these contracts computed as on March 31,2012 indicates gain/(Loss) of Rs. 2,36,02,500 (previous Year Rs. 11,37,000) which has been provided for and disclosed as exchange fluctuation in the Profit and Loss Account.

2. RELATED PARTY DISCLOSURE (AS IDENTIFIED BY THE MANAGEMENT), AS REQUIRED BY ACCOUNTING STANDARD AS-16' ARE GIVEN BELOW:

I) LIST OF RELATED PARTIES

(a) Where Control Exists: -

(i) Akshi Exports (P) Ltd.

(ii) Bhama Properties (P) Ltd

(iii) Bihariji Fancy Fibers & Fabrics Ltd.

(iv) Bihariji Ispat Udyog Ltd.

(v) Bihariji Solar Power Pvt Ltd.

(vi) Bihariji Vidyut Pvt. Ltd.

(vii) Chakra Exports (P) Ltd.

(viii) Deepak Hotels Private Ltd.

(ix) G L Estates Pvt. Ltd.

(x) J.S.T. Engineering Services Ltd.

(xi) Jotindra Steel & Tubes Ltd.

(xii) JST Solar Energy Pvt Ltd.

(xiii) JST Solar Vidyut Pvt. Ltd.

(xiv) Magnum Products Pvt Ltd

(xv) Mauria Power Generation Pvt Ltd.

(xvi) Mauria Power Projects Pvt. Ltd.

(xvii) Mauria Solar Pvt. Ltd.

(xviii) Puranmal Foods India Pvt. Ltd.

(ixx) Quality Synthetic Industries Ltd.

(xx) Ram Forgings Pvt. Ltd

(xxi) S K.D. Estates Private Ltd.

(xxii) Saroj Metal Works Pvt Ltd.

(xxiii) Sri Narayan Steel Industries Pvt. Ltd.

(xxiv) Sri narayan Raj Kumar

(xxv) Sri narayan Raj Kumar Merchants Ltd.

(xxvi) Sureka Tubes Industries Pvt. Ltd.

(xxvii) Udayanchal Leasing Exports (P) Ltd.

(xxviii) VL Estates (P) Ltd

(xxix) VL Land & Housing Pvt Ltd

(xxx) V.K. Flats Pvt. Ltd.

(xxxi) Vaishnoudevi Properties Pvt Ltd.

(xxxii) Vee Em Into centre Pvt Ltd.

(xxxiii) Vee Kay Surgical Pvt. Ltd

(xxxiv) Bihariji Infotech pvt. Ltd,

(b) Key Management Personnel

1 Mr, V.K.. Sureka (Chairman)

2 Mr N K Sureka (Managing Director)

3 Mr A.K. Sureka (Director) Part Of the year

(c) Relative of key Management personnel (with whom transaction have taken place during the year).

1 Smt. P L Sureka (Wife of Chairman)

2 Smt. Deepa Sureka (Wife of Managing Director)

(d) Other related parties NIL

3. Comparative figures for the previous year have been re-grouped re-cast and re-arranged wherever necessary and figures in brackets represent previous year figures.