Notes to Accounts of Menon Bearings Ltd.

Mar 31, 2025

11) Provisions and Contingent Liabilities

i. Provisions:

A provision is recorded when the Company has a present legal or constructive obligation as a result of
past events and it is probable that an outflow of resources will be required to settle the obligation and the
amount can be reasonably estimated.

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

ii. Contingent Liabilities:

Whenever there is possible obligation 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 entity or a present obligation that arises from past events but is not recognised because
(a) it is not probable that an outflow of resources embodying economic benefits will be required to settle
the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability are
considered as contingent liability. Show cause notices are not considered as Contingent Liabilities
unless converted into demand.

iii. Contingent Assets:

The Company does not recognise contingent assets. If it is virtually certain then they will be recognised as
asset. These are assessed continually to ensure that the developments are appropriately disclosed in the
financial statements.

12) Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period. The
weighted average number of equity shares outstanding during the period is adjusted for events including a
bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split
(consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for
the period attributable to equity shareholders and the weighted average number of shares outstanding
during the period are considered for the effects of all dilutive potential equity shares.

13) Cash and Cash Equivalents and Cash Flow Statement:

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term,
highly liquid investments maturing within three months from the date of acquisition and which are readily
convertible into cash and which are subject to only an insignificant risk of changes in value.

Cash flows are reported using the indirect method, whereby profit/(loss) before tax is appropriately
classified for the effects of transactions of non-cash nature and any deferrals or accruals of past or future
receipts or payments. In the cash flow statement, cash and cash equivalents include cash in hand, cheques
on hand, balances with banks in current accounts and other short- term highly liquid investments with
original maturities of three months or less.

14) Segment Reporting:

The Company operates in one business segment namely “Auto Components”. Hence reporting under this
standard is not applicable.

15) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are
capitalized during the period of time that is necessary to complete and prepare the asset for its intended use
or sale. Other borrowing costs are expensed in the period in which they are incurred under finance costs.
During the year, the company has capitalized borrowing costs of Rs.96,18,119/-

a. Mr. Nitin Menon - Executive Chairman, Mr. R. D. Dixit -Managing Director and Arun R.Aradhye Whole time
Director & CFO are employees of the Company. Mr. M.L.Shinde, Mrs. Kailash A.Nevagi and Dr. Santosh Prabhu
Independent Directors are not paid any remuneration, only Sitting Fees are paid to them. The salary, perquisites
and remuneration paid are disclosed under Report on Corporate Governance ( point no.8.3 ) as details of
Remuneration and Sitting Fees paid to Directors.

b. Apart from above mentioned parties, following parties are also related parties of the Company. However, no
significant transactions took place with these parties during the year.

1. Menon Signature Pvt.Ltd.

2. Give Artisans Trust.

c. Mr. Nitin Menon & Menon United Pvt .Ltd. hold 10% or more shares in the Company.

17) Government Grants:

The Company has a policy to recognize Government Grants only when-

i) It has complied with the conditions attached to it and

ii) there is a reasonable assurance that it will be received. Grants related to assets are presented in the Balance
Sheet as deferred income and recognized in Profit and Loss account on systematic basis over the useful life of
the asset. Currently there are no such grants. Grants related to income are presented as part of Profit and Loss
account under “Other Operating Revenue”. Grants related to duty drawback refunds are accounted on receipt
basis as the time frame within which it will be received cannot be estimated. Government Grants in the form of
duty drawback accounted during current year is Rs 1,08,19,327/- (previous year Rs. 82,06,953/-).

111. Significant management judgment in applying accounting policies and estimation of Uncertainty

While preparing the financial statements, management has made a number of judgments, estimates and
assumptions about the recognition and measurement of assets, liabilities, income and expenses.

(i) Significant Management Judgment

The following are significant management judgments in applying the accounting policies of the Company that
have significant effect on the financial statements.

Recognition of Deferred Tax Assets/Liability

The extent to which deferred tax assets/Liability can be recognized is based on an assessment of the
probability that future taxable income will be available against which the deductible temporary differences and
tax loss carry-forwards can be utilized. In addition, careful judgment is exercised in assessing the impact of any
legal or economic limits or uncertainties in various tax issues.

(ii) Estimation of Uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and
measurement of assets, liabilities, income and expenses is mentioned below. Actual results may be different.

a. Impairment of Non-Financial Assets

In assessing impairment, management has estimated economic usefulness of the assets, the recoverable
amount of each asset or cash- generating units based on expected future cash flows and use of an interest rate
to discount them. Estimation of uncertainty relates to assumptions about economically future operating cash

flows and the determination of a suitable discount rate.

b. Useful Lives of Depreciable Assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the
expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may
change the utility of assets including Intangible Assets.

c. Inventories

Management has carefully estimated the net realizable values of inventories, taking into account the most
reliable evidence available at each reporting date. The future realization of these inventories may be affected
by market-driven changes.

d. Defined Benefit Obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard
rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these
assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed
in Note No. 26 & 27).

e. Current and Non-Current Classification

All assets and liabilities have been classified as Current or Non-Current as per the Company''s normal operating
cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products
and time between the acquisition of assets for processing and their realization in cash and cash equivalents,
the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current
classification of assets and liabilities.

A) Bajaj Finance Limited:- Loan of Rs.22 Crores is Sanctioned. The loan has a moratorium period of 12 months
(Interest to be served as an when applied). The total loan tenure is 66 months, including moratorium period. The
loan is repayable in 54 equated monthly principal installments starting August 2024. The rate of interest is
8.90%, The loan is secured by charge on entire immovable and movable fixed assets of the company located at
B-2. The loan is also secured by personal gaurantee of Mr.Nitin Menon

B) HDFC Bank Limited:- Loan of Rs.1.21 Crores. The total loan Tenure is 60 months . The loan is secured by
hypothication of Rooftop solar system. The rate of interest is 8.75%. The loan is also secured by personal
gaurantee of Mr.Nitin Menon.

In terms of Amendment to Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (the
CSR Rules 2021) effective from 22^nd January, 2021, if a Company fails to spend the prescribed CSR amount
during the year and such unspent amount pertains to any ongoing project, the Company shall transfer the
unspent amount to a special bank account to be opened by the Company in that behalf for that financial year in
any scheduled bank to be called the Unspent Corporate Social Responsibility Account within a period of 30
days from the end of the relevant financial year. There is no unspent amount under CSR as on 31^st March, 2025.

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

For M/s. A R N A & Associates, Chartered Accountants

p^ArTr^{EET JOSH}" NITIN menon r. d. dixit

Membership No • 1 77982 ^{Executive Chairman Mana}SⁱⁿS ^Director

UmN^e25l^P779^2BM⁹jijN7746 ^{DI7: 00692754 DIN} • ^00626827

ARUN ARADHYE SIDDHESHWAR KADANE

^p|ace : ^Ko|hapur Whole Time Director & CFO Company Secretary

Date • 15^th May, 2025 DIN : 03052587 Membership No. : A72775

---

Mar 31, 2024

11) Provisions and Contingent Liabilities

i. Provisions:

A provision is recorded when the Company has a present legal or constructive obligation as a result of past events and it is probable that an outflow of resources will be required to settle the obligation and the amount can be reasonably estimated.

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

ii. Contingent Liabilities:

Whenever there is possible obligation 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 entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount of the obligation cannot be measured with sufficient reliability are considered

as contingent liability. Show cause notices are not considered as Contingent Liabilities unless converted into demand.

iii. Contingent Assets:

The Company does not recognise contingent assets. If it is virtually certain then they will be recognised as asset. These are assessed continually to ensure that the developments are appropriately disclosed in the financial statements.

12) Earnings Per Share:

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. The weighted average number of equity shares outstanding during the period is adjusted for events including a bonus issue, bonus element in a rights issue to existing shareholders, share split and reverse share split (consolidation of shares). For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period are considered for the effects of all dilutive potential equity shares.

13) Cash and Cash Equivalents and Cash Flow Statement:

Cash and cash equivalents comprise cash on hand and demand deposits, together with other short-term, highly liquid investments maturing within three months from the date of acquisition and which are readily convertible into cash and which are subject to only an insignificant risk of changes in value.

Cash flows are reported using the indirect method, whereby profit/(loss) before tax is appropriately classified for the effects of transactions of non-cash nature and any deferrals or accruals of past or future receipts or payments. In the cash flow statement, cash and cash equivalents include cash in hand, cheques on hand, balances with banks in current accounts and other short- term highly liquid investments with original maturities of three months or less.

14) Segment Reporting:

The Company operates in one business segment namely “Auto Components”. Hence reporting under this standard is not applicable.

15) Borrowing Costs:

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset are capitalised during the period of time that is necessary to complete and prepare the asset for its intended use or sale. Other borrowing costs are expensed in the period in which they are incurred under finance costs. During the year, the company has capitalised borrowing costs of Rs.NIL

17) Government Grants:

The Company has a policy to recognize Government Grants only when-

i) It has complied with the conditions attached to it and

ii) there is a reasonable assurance that it will be received. Grants related to assets are presented in the Balance Sheet as deferred income and recognized in Profit and Loss account on systematic basis over the useful life of the asset. Currently there are no such grants. Grants related to income are presented as part of Profit and Loss account under “Other Operating Revenue”. Grants related to duty drawback refunds are accounted on receipt basis as the time frame within which it will be received cannot be estimated.Goverment Grant in the from of duty drawback accounted during the year is Rs. 82,06,953/- ( Previous Year Rs. 64,70,386/-)

18) Events occurring after Balance Sheet Date: -

The company by Special Resolution passed through Postal Ballot on 28.04.2024 and approved the Transfer/ Slum Sale of the Aluminium Die- Casting Unit along with its identified Assets & Liabilities on fair valuation basis to its Wholly Owned Subsidiary “Menon Alkop Limited”. The transaction will be completed after receipt of regulatory approval consequently. This disclosure is made in accordance with Ind AS -10. “Events after Reporting Period”. The results of Aluminium Die Casting Division included in financial results are as follows.

III. Significant management judgment in applying accounting policies and estimation of Uncertainty

While preparing the financial statements, management has made a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

(i) Significant Management Judgment

The following are significant management judgments in applying the accounting policies of the Company that have significant effect on the financial statements.

Recognition of Deferred Tax Assets/Liability

The extent to which deferred tax assets/Liability can be recognized is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In addition, careful judgment is exercised in assessing the impact of any legal or economic limits or uncertainties in various tax issues.

(ii) Estimation of Uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is mentioned below. Actual results may be different.

a. Impairment of Non-Financial Assets

In assessing impairment, management has estimated economic usefulness of the assets, the recoverable amount of each asset or cash- generating units based on expected future cash flows and use of an interest rate to discount them. Estimation of uncertainty relates to assumptions about economically future operating cash flows and the determination of a suitable discount rate.

b. Useful Lives of Depreciable Assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of assets including Intangible Assets.

c. Inventories

Management has carefully estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by market-driven changes.

d. Defined Benefit Obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed in Note No. 26 & 27).

e. Current and Non-Current Classification

All assets and liabilities have been classified as Current or Non-Current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

Note No.34 : Other Statutory Information

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

2) The Company does not have any transactions with struck off companies.

3) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

5) There are no such immovable properties which are not held in the name of the Company except lease hold land from MIDC.

6) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

7) The Company 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 Company (Ultimate Beneficiaries) or

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

8) The Company 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 Group shall:

a) Directlyor indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

Note No. 35:

The code of Social Security, 2020 (code) relating to employee benefits during employment and postemployment received Presidential assent in September, 2020 and its effective date is yet to be notified. The Company will assess and record the impact of the Code, once it is effective.

Note No. 36:

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification disclosure.

As per our report of even date attached

For M/s.A R N A & Associates. For and on behalf of the Board of Directors

Chartered Accountants

NITIN MENON R. D. DIXIT

^{Rahulprasad Agnihotri} Executive Chairman Managing Director

^Partner DIN: 00692754 DIN : 00626827

Membership No.:111576

^{UDIN : 24111576BKFBCY1320} ARUN ARADHYE MANMAY KALYANKAR

^Place : K°l^hapiir Whole Time Director & CFO Company Secretary

^Date : 18‘^{h Jul}y ²⁰²⁴ DIN : 03052587 Membership No: A29264

---

Mar 31, 2023

a. Mr. Nitin Menon - Executive Chairman, Mr. R. D. Dixit -Managing Director and Arun R.Aradhye Whole time Director & CFO are employees of the Company. Mr. M.L.Shinde, Mrs. Kailash A.Nevagi and Dr. Santosh Prabhu Independent Directors are not paid any remuneration, only Sitting Fees are paid to them. The salary, perquisites and remuneration paid are disclosed under Report on Corporate Governance ( point no.8.3 ) as details of Remuneration and Sitting Fees paid to Directors.

b. Apart from above mentioned parties, following parties are also related parties of the Company. However, no significant transactions took place with these parties during the year.

1. Menon Signature Pvt.Ltd.

2. Give Artisans Trust.

c. Mr. Nitin Menon hold 10% or more shares in the Company.

There are no write offs / write backs of any amount for any of the above parties during the year.

17) Government Grants:

The Company has a policy to recognize Government Grants only when-

i) It has complied with the conditions attached to it and

ii) there is a reasonable assurance that it will be received. Grants related to assets are presented in the Balance Sheet as deferred income and recognized in Profit and Loss account on systematic basis over the useful life of the asset. Currently there are no such grants. Grants related to income are presented as part of Profit and Loss account under “Other Operating Revenue”. Grants related to duty drawback refunds are accounted on receipt basis as the time frame within which it will be received cannot be estimated. Government Grants in the form of duty drawback accounted during current year is Rs. 64,70,386/- (previous year Rs. 44,45,955/-).

III. Significant management judgment in applying accounting policies and estimation of Uncertainty

While preparing the financial statements, management has made a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

(i) Significant Management Judgment

The following are significant management judgments in applying the accounting policies of the Company that have significant effect on the financial statements.

Recognition of Deferred Tax Assets/Liability

The extent to which deferred tax assets/Liability can be recognized is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In addition, careful judgment is exercised in assessing the impact of any legal or economic limits or uncertainties in various tax issues.

(ii) Estimation of Uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is mentioned below. Actual results may be different.

a. Impairment of Non-Financial Assets

In assessing impairment, management has estimated economic usefulness of the assets, the recoverable amount of each asset or cash- generating units based on expected future cash flows and use of an interest rate to discount them. Estimation of uncertainty relates to assumptions about economically future operating cash flows and the determination of a suitable discount rate.

b. Useful Lives of Depreciable Assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of assets including Intangible Assets.

c. Inventories

Management has carefully estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by market-driven changes.

d. Defined Benefit Obligation (DBO)

Management''s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed in Note No. 26 & 27).

e. Current and Non-Current Classification

All assets and liabilities have been classified as Current or Non-Current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

A) Bajaj Finance:- The company has utilised Term Loan of Rs.6.00 Crores. The repayment of this utilised loan amount is to be done by monthly Instalment of Rs.11,42,200/- plus interest as and when applied till 05/05/2024. The loan is secured by exclusive charge over immovable and movable fixed assets located at B-2, MIDC, Gokul Shirgaon and Personal Guarantee of Mr. Nitin Menon.

B) HDFC Bank:-The Company is sanctioned Term Loan of Rs. 20.25 Crore, Out of this, the Company has utilised the Term Loan of Rs. 19.24 Crore.The loan is repayable in monthly instalments of Rs. 33,65,463/- plus interest as and when applied till 24/11/2026. The Loan is Secured by Pari Passu Charge on Factory Land and Building at Plot No C-1, Kagal Five Star MIDC, Hatkanangale and exclusive First Charge on Factory Land & Building at G-1, MIDC, Gokul Shirgaon, Kolhapur. Pari Passu Charge over entire movable fixed assets of Bearing and Alkop Division plus Collateral Charge on entire Current Assets of Bearing & Alkop Division and Personal Guarantee of Mr. Nitin Menon.

C) The Car Loan taken by the Company from SBI, HDFC Bank & Bank of Baroda has been fully satisfied.

In terms of Amendment to Companies (Corporate Social Responsibility Policy) Amendment Rules, 2021 (the CSR Rules 2021) effective from 22^nd January, 2021,, if a Company fails to spend the prescribed CSR amount during the year and such unspent amount pertains to any ongoing project, the Company shall transfer the unspent amount to a special bank account to be opened by the Company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account within a period of 30 days from the end of the relevant financial year. There is no unspent amount under CSR as on 31^st March, 2023.

Note No.34 : Other Statutory Information

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

2) The Company does not have any transactions with struck off companies.

3) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

5) There are no such immovable properties which are not held in the name of the Company except lease hold land from MIDC.

6) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

7) The Company 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 Company (Ultimate Beneficiaries) or

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

8) The Company 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 Group shall:

a) Directlyor indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

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

Note No. 35:

The code of Social Security, 2020 (code) relating to employee benefits during employment and postemployment received Presidential assent in September, 2020 and its effective date is yet to be notified. The Company will assess and record the impact of the Code, once it is effective.

Note No. 36:

Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification disclosure.

---

Mar 31, 2019

I. Basis of Preparation :

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed by Ministry of Corporate Affairs under Companies (Indian Accounting Standards) Rules, 2015, provisions of the Companies Act, 2013, to the extent notified and pronouncements of the Institute of Chartered Accountants of India.

Disclosures under Ind AS are made only in respect of material items and in respect of the items that will be useful to the users of financial statements in making economic decisions.

The financial statements for the year ended 31st March 2019 (including comparatives) are duly adopted by the Board on 23rd April, 2019 for consideration and approval by shareholders.

Notes:

a. Mr. R. D. Dixit - Chairman & Managing Director, Mr. Nitin Menon - Vice Chairman & Joint Managing Director and Mr. Arun R. Aradhye Whole time Director & CFO are employees of the Company. Mr. M.L.Shinde, Mr. B. S. Ajitkumar , Capt.Sudheer Naphade , Mrs. Nazura Ajaney, Mr. G.T.Vasa, Mrs. Kailash A.Nevagi and Dr. Santosh Prabhu Independent Directors are not paid any remuneration, Only Sitting Fees are paid to them. The salary, perquisites and remuneration paid are disclosed under Report on Corporate Governance point no.4.4 as details of Remuneration and sitting fees paid to Directors.

b. Mr. Arun R. Aradhye was V.P.Corporate & Finance till 30/01/2019. Since 31/01/2019 he has been taken on board as Director.

c. Apart from above mentioned parties, following parties are also related parties of the Company. However, no significant transactions took place with these parties during the year.

1. Menon Piston Ltd

2. Menon Signature Pvt.Ltd.

3. Flyga Auto Pvt.Ltd.

There are no write offs / write backs of any amount for any of the above parties during the year.

II. Significant management judgment in applying accounting policies and estimation of Uncertainty

While preparing the financial statements, management has made a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

(i) Significant management judgment

The following are significant management judgments in applying the accounting policies of the Company that have significant effect on the financial statements.

Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In addition, careful judgment is exercised in assessing the impact of any legal or economic limits or uncertainties in various tax issues.

(ii) Estimation of uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is mentioned below. Actual results may be different.

a. Impairment of non-financial assets

In assessing impairment, management has estimated economic usefulness of the assets, the recoverable amount of each asset or cash- generating units based on expected future cash flows and use of an interest rate to discount them. Estimation of uncertainty relates to assumptions about economically future operating cash flows and the determination of a suitable discount rate.

b. Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of assets including Intangible Assets.

c. Inventories

Management has carefully estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by market-driven changes.

d. Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed in Note .10).

e. Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

i) The Company has s single class of equity shares. All equity shares rank equally with regard to dividend and shares in the Company’s residual assets.

ii) Equity Shareholders List holding more than 5% of equity shares along with the number of equity shares held is given below:

A) Axis Bank:- The Company has availed and utilised FCTL ( Foreign Currency Term Loan) of Rs. 2.83 Crores (Current Outstanding $299754) & of Rs.2.00 Crore (Current Outstanding $266783.28). These loans are repayable in monthly instalments of $7863 & $5698.52 plus interest as and when applied upto 30/06/2022 & 28/02/2023 respectively. The loan is secured by First Charge over entire movable and immovable fixed assets , both curent and future, of the company situated at G-01, MIDC Gokul Shirgaon, Kolhapur. It is also colaterally secured by entire movable and immovable fixed assets, both present and future, of the company situated at G-01, MIDC Gokul Shirgaon, Kolhapur & Plot No C-1, Kagal Five Star MIDc, Hatkanangale. It is also secured by personal guarantee of Mr. Nitin Menon.

B) Bajaj Finance:- The company has availed Term Loan of Rs.15.00 Crore . Out of this the Company has utilised Term Loan of Rs.9.00 Crore only. The repayment of this utilised loan amount is to be done by monthly Instalment of Rs.1899314/- plus interest as and when applied till 05/05/2024. The loan is secured by exclusive charge over immovable and movable fixed assets located at B-2, MIDC, Gokul Shirgaon and Personal Guarantee of Mr. Nitin Menon.

C) HDFC Bank:-The Company has availed Term Loan of Rs.22.00 Crore, Out of this, the Company has utilised the Term Loan of Rs.20.43 Crore.The loan is repayable in monthly instalments of Rs.3430755 plus interest as and when applied till 06/02/2024. The Loan is Secured by Pari Passu charge on Factory land and Building at Plot No C-1, Kagal Five Star MIDC, Hatkanangale and exclusive first charge on Factory Land & Building at G-1, MIDC, Gokul Shirgaon, Kolhapur. Pari Passu charge over entire movable fixed assets of Bearing and Alkop division. Plus Collateral charge on entire current assets of Alkop & Bearing division and Personal guarantee of Mr. Nitin Menon.

Note:

a) The Working Capital facilities from Axis Bank Ltd (Rajarampuri Branch) and HDFC Bank Ltd. Kolhapur are secured by stock of raw materials, semi-finished goods, finished goods and debtors, collateral security of factory land & building situated at G-1, MIDC Gokulshirgaon, Kolhapur- 416 234 and personal guarantee of Mr. Nitin Menon

b) The company has availed Foreign Currency Demand Load (as a sub limit of existing Working Capital Facility) of Rs. 7.00 Crores. The total outstanding of such loan in foreign currency is $422094.26

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Mar 31, 2018

1. Basis of Preparation :

The financial statements of the Company have been prepared in accordance with Indian Accounting Standards (Ind AS) as prescribed by Ministry of Corporate Affairs under Companies (Indian Accounting Standards) Rules, 2015, provisions of the Companies Act, 2013, to the extent notified and pronouncements of the Institute of Chartered Accountants of India.

Disclosures under Ind AS are made only in respect of material items and in respect of the items that will be useful to the users of financial statements in making economic decisions.

The financial statements for the year ended 31st March 2018 (including comparatives) are duly adopted by the Board on 3rd May, 2018 for consideration and approval by shareholders.

Notes:

a. Shri R. D. Dixit - Chairman & Managing Director and Shri Nitin Menon - Vice Chairman & Joint Managing Director are employees of the Company. Shri M. L. Shinde, Shri B. S. Ajitkumar, Capt. Sudheer Naphade and Mrs. Nazura Ajaney Independent Directors are not paid any remuneration, only Sitting Fees are paid to them. The salary, perquisites and remuneration paid are disclosed under Report on Corporate Governance point no.4.4 as details of Remuneration and sitting fees paid to Directors.

b. Apart from above mentioned parties, following parties are also related parties of the Company. However, no significant transactions took place with these parties during the year.

Menon Piston Ltd Menon Signature Pvt.Ltd.

There are no write offs / write backs of any amount for any of the above parties during the year

III) Significant management judgment in applying accounting policies and estimation of uncertainty While preparing the financial statements, management has made a number of judgments, estimates and assumptions about the recognition and measurement of assets, liabilities, income and expenses.

(1) Significant management judgment

The following are significant management judgments in applying the accounting policies of the Company that have significant effect on the financial statements.

(2) Recognition of deferred tax assets

The extent to which deferred tax assets can be recognized is based on an assessment of the probability that future taxable income will be available against which the deductible temporary differences and tax loss carry-forwards can be utilized. In addition, careful judgment is exercised in assessing the impact of any legal or economic limits or uncertainties in various tax issues.

(3) Estimation of uncertainty

Information about estimates and assumptions that have the most significant effect on recognition and measurement of assets, liabilities, income and expenses is mentioned below. Actual results may be different.

a. Impairment of non-financial assets

In assessing impairment, management has estimated economic usefulness of the assets, the recoverable amount of each asset or cash- generating units based on expected future cash flows and use of an interest rate to discount them. Estimation of uncertainty relates to assumptions about economically future operating cash flows and the determination of a suitable discount rate.

b. Useful lives of depreciable assets

Management reviews its estimate of the useful lives of depreciable assets at each reporting date, based on the expected utility of the assets. Uncertainties in these estimates relate to technological obsolescence that may change the utility of assets including Intangible Assets.

c. Inventories

Management has carefully estimated the net realizable values of inventories, taking into account the most reliable evidence available at each reporting date. The future realization of these inventories may be affected by market-driven changes.

d. Defined benefit obligation (DBO)

Management’s estimate of the DBO is based on a number of critical underlying assumptions such as standard rates of inflation, mortality, discount rate and anticipation of future salary increases. Variation in these assumptions may significantly impact the DBO amount and the annual defined benefit expenses (as analysed in Note .10)

e. Current and non-current classification

All assets and liabilities have been classified as current or non-current as per the Company’s normal operating cycle and other criteria set out in the Schedule III to the Companies Act, 2013. Based on the nature of products and time between the acquisition of assets for processing and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as twelve months for the purpose of current or non-current classification of assets and liabilities.

a) The company has availed term loan of Rs.10.00 Crores from Axis Bank Ltd, out of which Rs.3.25Crores has been disbursed. There is an moratorium period of 6 months upto 30/09/2017 for the loan. The principal installment for the loan is Rs.11.67lacs per month. The loan is secured by first charge over entire movable and immovable fixed assets, both present and future, of the company situated at G-1, MIDC Gokul Shirgaon, Kolhapur. It is also colaterally secured by entire movable and immovable fixed assets, both present and future, of the company situated at G-1, MIDC Gokul Shirgaon, Kolhapur and C-1, Kagal Five Star MIDC, Hatkanangale. It is also secured by personal guarantee of Mr.Nitin Menon. The Company has also availed Foreign currency Term Loan of Rs.3.00 Crores(Utilised Rs.2.93 Crores) ($ 444556). The loan is to be repaid in 60 installments of Rs.500000 each plus interest as debited. The total outsatnding dues in FCTL is $393993. The loan is secured by first charge over entire movable and immovable fixed assets, both present and future, of the company situated at C-1, Five Star MIDC, Kagal.It is also colaterally secured by entire movable and immovable fixed assets, both present and future, of the company situated at G-1, MIDC Gokul Shirgaon, Kolhapur and C-1, Kagal Five Star MIDC, Hatkanangale.It is also secured by personal guarantee of Mr.Nitin Menon

b) The Long Term Borrowing includes Car Loan taken by the Company from the Axis Bank & HDFC Bank Ltd.

c) The unsecured loan represents Interest Free Sales Tax Deferral Loan from SICOM received under the incentive scheme of Government of Maharashtra.

Notes:

a) The Working Capital facilities from Axis Bank Ltd (Rajarampuri Kolhapur Branch) are secured by stock of raw materials, semifinished goods, finished goods and debtors, collateral security of factory land & building situated at G-1, MIDC Gokul shirgaon, Kolhapur-416234 & C-1, Five Star MIDC, Kagal and personal guarantee of Mr. Nitin Menon.

b) The company has availed Foreign Currency Demand Loan (as a sub limit of existing Working Capital Facility) of Rs.11.00 Crores. The total outsatnding of such loan in foreign currency is $1681868.

c) The demand loan from Bajaj Finance Limited is secured by exclusive charge on immovable and movable fixed assets located at B-2, MIDC , Gokul Shirgaon, Kolhapur.

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Mar 31, 2017

Notes:

01) There is addition of Rs.93,40,000 to Share Capital during the year due to issue of Bonus Shares in the ratio of 1:5 made on 02/09/2016.

02) The Company has a single class of equity shares all equity shares rank equally with regard to dividends and shares in the company''s residual assets.

03) Equity shareholders list holding more than 5% of equity shares along with the number of equity shares held is as given below:

a. The company has availed term loan of Rs.10.00 Crores from Axis Bank Ltd, out of which Rs.3.25 Crores has been disbursed. There is an moratorium period of 6 months up to 30/09/2017 for the loan. The principal installment for the loan is Rs.16.67 lakhs per month. The loan is secured by first charge over entire movable and immovable fixed assets, both present and future, of the company situated at G-1, MIDC Gokul Shirgaon, Kolhapur. It is also collaterally secured by entire movable and immovable fixed assets, both present and future, of the company situated at G-1, MIDC Gokul Shirgaon, Kolhapur and C-1, Kagal Five Star MIDC, Hatkanangale. It is also secured by personal guarantee of Mr. Nitin Menon.

b. The Long Term Borrowing includes Car Loan taken by the Company from the Axis Bank. The unsecured loan represents Interest Free Sales Tax Deferral Loan from SICOM received under the incentive scheme of Government of Maharashtra.

Note No.4.

Contingent Liabilities

a. State Bank of India has given guarantees on behalf of the Company for Rs. 37.35 lakhs (Previous year Rs.52.06 lakhs and Axis Bank Ltd has given guarantees on behalf of the Company for Rs.7.00 lakhs. (Previous year NIL),

b. Central Sales Tax and MVAT assessments are completed up to 31.03. 2012. The liability in respect of pending assessments / appeals under BST/CST /VAT is unascertainable.

c. The Income Tax assessments are completed up to the Assessment Year 2014-2015. (Relevant to accounting year ended 31.03.2014).

d. Duty amount of export obligation under EPCG scheme is Rs.31.13 lakhs.

Note No.5.

Other Notes

a. Previous year figures are regrouped wherever necessary to conform to current year figures.

b. Amounts are rounded off to the nearest lakhs or decimal thereof.

c. The Company has accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability for Excise Duty in respect of finished goods in stock at the close of the year estimated at Rs. 56.58 lakhs and has not been provided in the accounts nor included in the valuation of the inventory. However they said liability, if accounted, would have no impact on the profit for the year.

The above information, given regarding Micro, Small and Medium Enterprises, has been determined to the extent such parties have been identified on the basis of information available with the company

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Mar 31, 2016

Note:

a) The Working Capital facilities from State Bank of India (MIDC Gokul Shirgaon Branch) are secured by stock of raw materials, semi-finished goods, finished goods and debtors collateral security of factory land & building situated at G-1, MIDC Gokul Shirgaon, Kolhapur-416234 and personal guarantee of Mr. Nitin Menon.

b) The Working Capital facilities from AXIS Bank Limited are secured by hypothecation of current assets including stock & book debts of the Company, both present and future and personal guarantee of Mr. Nitin Menon.

Note No.26

Contingent Liabilities

a. State Bank of India has given guarantee on behalf of the Company for R. 52.06 lacs (Previous year R. 31.95 lacs).

b. Central Sales Tax and MVAT assessments are completed up to 31.03.2010 respectively. The liability in respect of pending assessments / appeals under BST/CST /VAT is unascertainable.

c. The Income Tax assessments are completed up to the Assessment Year 2013-2014. (Relevant to accounting year ended 31.03.2013).Tax demand raised for A. Y. 2013-14 is R.13,03,190/- against which Company has gone into appeal. Liability if any, in respect of the pending assessments or appeals under the Income Tax Act, 1961 is unascertainable.

d. Duty amount under export obligation under EPCG scheme is R. 31,13,367.00

Note No.27

Other Notes

a. Previous year figures are regrouped wherever necessary to conform to current year figures.

b. Amounts are rounded off to the nearest lac or decimal thereof.

c. The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability for Excise Duty in respect of finished goods in stock at the close of the year estimated at R. 72.57 lacs and has not been provided in the accounts nor included in the valuation of the inventory. However they said liability, if accounted, would have no impact on the profit for the year.

The above information given regarding Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information available with the company.

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Mar 31, 2015

1 a. The Term Loan from State Bank of India (MIDC Gokul Shirgaon Branch) is secured by hypothecation of Plant & Machinery and Mortgage of Building situated at G-1, MIDC Gokul Shirgaon, Kolhapur owned by the Company. The Term Loan Guaranteed by Shri. Nitin Menon. The Company had availed Rs. 5 Crores Term Loan, the repayment started from October 2011. Installment of Rs.7.50 lacs p.m.

b. The Term Loan from AXIS Bank Limited is secured by hypothecation of Plant & Machinery and mortgage of immovable property situated at C-1, Five Star MIDC, Kagal, Kolhapur owned by the Company. The Term Loan is personally Guaranteed by Shri. Nitin Menon. Loan taken from Axis bank Limited is repayable with installment of Rs. 9.71 lacs p.m.

c. The Long Term Borrowing includes Car Loan taken by the Company from the State Bank of India.

d. The Unsecured Loan represents Interest Free Sales Tax Deferral Loan from SICOM received under the Incentive Scheme of Government of Maharashtra.

2 Contingent Liabilities

a. State Bank of India has given guarantee on behalf of the Company for Rs. 31.95 lacs (Previous year Rs. 31.70 lacs)

b. Central Sales Tax and MVAT assessments are completed up to 31.03.2010 respectively. The liability in respect of pending assessments / appeals under BST/CST /VAT is unascertainable.

c. The Income Tax assessments are completed up to the Assessment Year 2012-2013. (Relevant to accounting year ended 31.03.2012). Liability if any, in respect of the pending assessments or appeals under the Income Tax Act, 1961 is unascertainable.

3 Other Notes

a. Previous year figures are regrouped wherever necessary to conform to current year figures.

b. Amounts are rounded off to the nearest lac or decimal thereof.

c. The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability for Excise Duty in respect of finished goods in stock at the close of the year estimated at Rs. 54.39 lacs and has not been provided in the accounts nor included in the valuation of the inventory. However the said liability, if accounted, would have no impact on the profit for the year.

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Mar 31, 2014

Note No.1 Contingent Liabilities

a. State Bank of India has given guarantee on behalf of the Company for Rs. 31.70 lacs (Previous year Rs. 24.97 lacs). Letter of credit for Rs. 170.04 lacs from State Bank of India.(Previous year Rs. 39.85 lacs).

b. Central Sales Tax and VAT assessments are completed up to financial year 2009-10, except financial year 2007-08. The liability in respect of pending assessments / appeals under CST /VAT is unascertainable.

c. The Income Tax assessments are completed up to the Assessment Year 2011-2012. (Relevant to accounting year ended 31st March, 2011). Liability if any, in respect of the pending assessments or appeals under the Income Tax Act, 1961 is unascertainable.

Note No.2 Other Notes

a. Previous year figures are regrouped wherever necessary to conform to current year figures.

b. Amounts are rounded off to the nearest lac or decimal thereof.

c. The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods in stock at the close of the year estimated at Rs. 43.33 lacs and has not been provided in the accounts nor included in the valuation of the inventory. However the said liability, if accounted, would have no impact on the profit for the year.

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Mar 31, 2013

Note No.1 Contingent Liabilities

a. State Bank of India has given guarantee on behalf of the Company for Rs. 24.95 lacs.. (previous year Rs. 20.00 lacs). Letter of credit for Rs. 39.85 lacs from State Bank of India.(Previous year Rs. 76.24 lacs)

b. Central Sales Tax and Bombay Sales Tax assessments are completed upto 31.03.2006. The liability in respect of pending assessments / appeals under BST/CST /VAT is unascertainable.

c. The Income Tax assessments are completed up to the Assessment Year 2010-2011. (relevant to accounting year ended 31.03.2010). Liability if any, in respect of the pending assessments or appeals under the Income Tax Act, 1961 is unascertainable.

Note No.2 Other Notes

a) Previous year figures are regrouped wherever necessary to conform to current year figures.

b) Amounts are rounded off to the nearest lac or decimals thereof.

c) The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods in stock at the close of the year estimated at Rs. 51.63 lacs and has not been provided in the accounts nor included in the valuation of the inventory. However, the said liability, if accounted, would have no impact on the profit for the year.

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Mar 31, 2012

A) The Term Loan from State Bank of India (MIDC Gokul Shirgaon Branch) is secured by hypothecation of Plant & Machinery and Building situated at G-1, MIDC Gokul Shirgaon, Kolhapur owned by the Company. The Term Loan is jointly and severally Guaranteed by Mr. Ram Menon & Mr. Nitin Menon. The Company had availed Rs. 5 Crores Term Loan, the repayment started from October 2011.

b) The Term Loan from AXIS Bank Limited is secured by hypothecation of Plant & Machinery and immovable property situated at C-1, Five Star MIDC, Kagal, Kolhapur owned by the Company. The Term Loan is personally Guaranteed by Mr. Nitin Menon. Loan taken from AXIS Bank Limited is repayable with installment of Rs.19.71 Lakhs.

c) The Long Term Borrowing includes Car Loan taken by the Company from the IDBI Bank Ltd, AXIS Bank Ltd and Maruti Udyog Ltd. & State Bank Of India.

d) The Unsecured Loan represents Interest Free Sales Tax Deferral Loan from SICOM received under the Incentive Scheme of Government of Maharashtra.

Notes :

a) The Working Capital facilities from State Bank of India (MIDC Gokul Shirgaon Branch) are secured by stock of raw materials, semi-finished goods, finished goods and debtors collateral security of factory land & building situated at G-1, MIDC, Gokul Shirgaon, Kolhapur-416234.

b) The Working Capital facilities from AXIS Bank Limited are secured by hypothecation of current assets including stock & book debts of the Company, both present and future.

a) Aggregate market value of quoted investments as on 31-03-2012 is Rs. 95,28,992

b) Aggregate amount of unquoted investments Rs. 4,00,000.00

Note No.1 Contingent Liabilities

a. Axis Bank Ltd. and State Bank of India have given guarantees on behalf of the Company for Rs. 4.97 lacs and for Rs. 20.00 lacs respectively. (previous year Rs. 0.50 lac and Rs. 2.015 lacs). Letter of credit for Rs. 76.24 lacs from State Bank of India.(Previous year Rs. 101.30 lacs)

b. Central Sales Tax and Bombay Sales Tax assessments are completed upto 31.03.2005. The liability in respect of pending assessments / appeals under BST/CST /VAT is unascertainable.

c. The Income Tax assessments are completed up to the Assessment Year 2009-2010. (relevant to accounting year ended 31.03.2009). Liability if any, in respect of the pending assessments or appeals under the Income Tax Act, 1961 is unascertainable.

Note No.2

Other Notes

a. Previous year figures are regrouped wherever necessary to conform to current year figures.

b. Amounts are rounded off to the nearest lac or decimals thereof.

c. The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods in stock at the close of the year estimated at Rs. 36.38 lacs and has not been provided in the accounts nor included in the valuation of the inventory. However, the said liability, if accounted, would have no impact on the profit for the year.

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Mar 31, 2011

I. CONTINGENT LIABILITIES

1) Central Sales Tax and Bombay Sales Tax assessments are completed upto 31.03.2003. The liability in respect of pending assessments / appeals under BST / CST / VAT is unascertainable

2) The Income Tax assessments are completed up to the Assessment Year 2008-2009. (relevant to accounting year ended 31.03.2008). Liability if any, in respect of the pending assessments or appeals under the Income Tax Act, 1961 is unascertainable.

3) Axis Bank Ltd. and State Bank of India have given guarantees on behalf of the Company for Rs. 50,000/- and for Rs. 2,15,000/- respectively. ( Previous Year Rs. 50,000/- and Rs. 2,15,000/-) and Letter of Credit for Rs. 1,01,30,000/- from State Bank of India ( Previous year Rs."Nil")

4) The Export obligation remaining to be complied upto 13.10.2016, is Rs.5,48,826/- and duty involved into it is Rs.91,434/-

II. OTHER NOTES

1) Previous year figures are regrouped wherever necessary to conform to current year figures.

2) Paises are rounded off to the nearest rupee.

3) Disclosure relating to Micro, Small and Medium Enterprises

4) The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods in stock at the close of the year estimated at Rs 28,33,766 and has not been provided in the accounts nor included in the valuation of the inventory. However the said liability, if accounted, would have no impact on the profit for the year.

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Mar 31, 2010

1) Central Sales Tax and Bombay Sales Tax assessments are completed upto 31.03.2003. The liability in respect of pending assessments / appeals under BST/ CST / VAT is unascertainable

2) The Income Tax assessments are completed up to the Assessment Year 2007-2008. (relevant to accounting year ended 31.03.2007). Liability if any, in respect of the pending assessments or appeals underthe IncomeTaxAct, 1961 is unascertainable.

II. OTHER NOTES

1) Previous year figures are regrouped wherever necessary to conform to current year figures.

2) Paises are rounded off to the nearest rupee.

3) The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority underthe "Micro Small and Medium Enterprises Development Act 2006"), claiming their status as micro, small or medium enterprises. Consequently, the amount paid or payable to these parties during the year is unascertainable.

4) The Company has been accounting liability for Excise Duty on Finished Goods as and when they are cleared. A liability in respect of finished goods in stock at the close of the year estimated at Rs 18,48,768 and has not been provided in the accounts nor included in the valuation of the inventory. However the said liability, if accounted, would have no impact on the profit for the year.