Notes to Accounts of MFL India Ltd.

Mar 31, 2025

1. In the opinion of management, Current Assets, Loans and advances have a value on realization in the

ordinary course of business at least equal to that stated in the Balance Sheet.

2. Capital and other commitments: The estimated amount of contracts remaining to be executed on

capital account and not provided for as at 31st March 2025 is NIL (Previous Year:-NIL).

6. Debit and credit balances of suppliers, customers and other are subject to confirmation and

reconciliation.

7. The earning per share, basic as well as diluted is Rs. (0.00) per share.

8. Employee Benefits Disclosures required under Accounting Standard 15.

The company has not made provisions for retirement benefit. It proposes to provide for the retirement benefits from the next financial year.

9. The balances of debtors & creditors are subject to confirmation.

10. Related Party disclosure:

12. Previous Year’s figures have been regrouped, reclassified and rearranged in pursuant of Schedule III wherever necessary to correspond with the figures of the current year.

13. As per the proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining books of account using accounting software which has a feature of recording audit trail ( Edit Log) facility is complied by the company.

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Mar 31, 2024

Provisions, contingencies and commitments:

a. The Company has ongoing disputes with income tax authorities relating to deduction

of expenses of certain items. The Company is in receipt of notice of demand dated
21/04/2021 under section 156 of the income tax Act, 1961 for AY 2018-2019 for a
sum of Rs 13,45,99,730.00. The liability keeps on increasing on account of interest
every year. The same also being contingent has not been reported. The Company has
already filed an appeal to the Commissioner of Income Tax (Appeals), against the
said order contesting the adverse decisions by the assessing officer. Taking into
consideration the facts and circumstances of the case and the past experience of the
management, it is of the opinion that the decision of the appellate authorities will be
in the favor of the company and hence they have not recognized the said liabilities in
the books of account of the company .

Future cash outflows in respect of the above would be determinable on finalization
of judgments /decisions pending with various forum /authorities.

b. Provisions are recognized when the Company has a present obligation (legal or
constructive) as a result of a past event, and it is probable that the Company will be
required to settle the obligation, and a reliable estimate can be made of the amount of
the obligation

c. The amount recognized as a provision is the best estimate of the consideration
required to settle the present obligation at the end of the reporting period, taking into
account the risks and uncertainties surrounding the obligation. When a provision is
measured using the cash flows estimated to settle the present obligation, its carrying
amount is the present value of those cash flows (when the effect of the time value of
money is material).

d. When some or all of the economic benefits required to settle a provision are expected
to be recovered from a third party, a receivable is recognised as asset if it is virtually
certain that reimbursement will be received and the amount of the receivable can be
measured reliably

e. A disclosure for contingent liabilities is made where there is-

i. a 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

ii. a present obligation that arises from past events but is not recognized because:

iii. it is not probable that an outflow of resources embodying economic benefits
will be required to settle the obligation; or

iv. The amount of the obligation cannot be measured with sufficient reliability.

f. A contingent asset is a possible asset 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.

g. Commitments include the amount of purchase order (net of advances) issued to
parties for completion of assets.

h. Provisions, contingent liabilities, contingent assets and commitments are reviewed
at each reporting period.

i. Provisions for onerous contracts are recognized when the expected benefits to be
derived by the Company from a contract are lower than the unavoidable costs of
meeting the future obligations under the contract.

Financial instruments

Financial assets and financial liabilities are recognized when Company becomes a party
to the contractual provisions of the instruments

Financial assets and financial liabilities are initially measured at fair value. Transaction
costs that are directly attributable to the acquisition or issue of financial assets and
financial liabilities (other than financial assets and finance fair value through profit or
loss) are added to or deducted from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to
the acquisition of financial assets or financial liabilities at fair value through profit or loss
are recognized immediately in Statement of Profit and Loss.

a. Financial assets

Financial assets are recognized when the Company becomes a party to the contractual
provisions of the instruments. Financial assets other than trade receivables are initially
recognized at fair value plus transaction costs for all financial assets not carried at fair
value through profit or loss. Financial assets carried at fair value through profit or loss are
initially recognized at fair value, and transaction costs are expensed in the Statement of
Profit and Loss.

b. Subsequent measurement

Financial assets, other than equity instruments, are subsequently measured at amortized
cost, fair value through other comprehensive income or fair value through profit or loss on
the basis of both:

(a) the entity’s business model for managing the financial assets and

(b) The contractual cash flow characteristics of the financial asset.

c. Classification of financial assets

Debt instruments that meet the following conditions are subsequently measured at
amortized cost (except for debt instruments that are designated at fair value through profit
or loss on initial recognition):

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

b) The contractual terms of the instrument give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount -outstanding.

Debt instruments that meet the following conditions are subsequently measured at fair
value through other comprehensive income (except for debt instruments that are
designated as fair value through profit or loss on initial recognition):

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

b) The contractual terms of the instrument give rise on specified dates to cash flows that
are solely payments of principal and interest on the principal amount outstanding.

Interest income is recognized in Statement of Profit and Loss for FVTOCI debt
instruments. For the purposes of recognizing foreign exchange gains and losses, FVTOCI
debt instruments are treated as financial assets measured at amortized cost. Thus, the
exchange differences on the amortized cost are recognized in Statement of Profit and Loss
and other changes in the fair value of FVTOCI financial assets are recognized in other
comprehensive income and accumulated under the heading of ‘Reserve for debt
instruments through other comprehensive income’. When the investment is disposed of,
the cumulative gain or loss previously accumulated in this reserve is reclassified to
Statement of Profit and Loss.

All other financial assets are subsequently measured at fair value.

d. Effective interest method

The effective interest method is a method of calculating the amortized cost of a debt
instrument and of allocating interest income over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash receipts (including all fees paid
or received that form an integral part of the effective interest rate, transaction costs and
other premiums or discounts) through the expected life of the debt instrument, or, where
appropriate, a shorter period, to the net carrying amount on initial recognition.

Income is recognized on an effective interest basis for debt instruments other than those
financial assets classified as at FVTPL. Interest income is recognised in Statement of
Profit and Loss and is included in the “Other income” line item.

e. Financial liabilities

All Financial liabilities are measured at amortized cost using effective interest method or
fair value through profit and loss. However, financial liabilities that arise when a transfer
of a financial asset does not qualify for derecognition or when the continuing involvement
approach applies, financial guarantee contracts issued by the Company, and commitments
issued by the Company to provide a loan at below-market interest rate are measured in
accordance with the specific accounting policies set out below.

f. Financial liabilities subsequently measured at amortized cost

Financial liabilities that are not held-for-trading and are not designated as at FVTPL are
measured at amortized cost at the end of subsequent accounting periods. The carrying
amounts of financial liabilities that are subsequently measured at amortized cost are
determined based on the effective interest method. Interest expense that is not capitalized
as part of costs of an asset is included in the ‘Finance costs’ line item.

The effective interest method is a method of calculating the amortized cost of a financial
liability and of allocating interest expense over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments (including all fees
paid or received that form an integral part of the effective interest rate, transaction costs
and other premiums or discounts) through the expected life of the financial liability, or
(where appropriate) a shorter period, to the net carrying amount on initial recognition.

g. Derecognition of financial liabilities

The Company derecognizes financial liabilities when, and only when, the Company’s
obligations are discharged, cancelled or have expired. An exchange with a lender of debt
instruments with substantially different terms is accounted for as an extinguishment of the
original financial liability and the recognition of a new financial liability. Similarly, a
substantial modification of the terms of an existing financial liability (whether or not
attributable to the financial difficulty of the debtor) is accounted for as an extinguishment
of the original financial liability and the recognition of new financial liability. The
difference between the carrying amount of the financial liability derecognized and the
consideration paid and payable is recognized in Statement of Profit and Loss.

h. Provision for liabilities and charges, Contingent liabilities and contingent assets

The assessments undertaken in recognizing provisions and contingencies have been made
in accordance with the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is
uncertain. Provisions are recognized when the Company has a present obligation (legal or
constructive), as a result of past events, and it is probable that an outflow of resources, that
can be reliably estimated, will be required to settle such an obligation. If the effect of the
time value of money is material, provisions are determined by discounting the expected
future cash flows to net present value using an appropriate pre-tax discount rate that
reflects current market assessments of the time value of money and, where appropriate, the
risks specific to the liability. Unwinding of the discount is recognized in the statement of
profit and loss as a finance cost. Provisions are reviewed at each reporting date and are
adjusted to reflect the current best estimate.

i. Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash
Flows”, whereby profit / (loss) before tax is adjusted for the effects of transactions of non¬
cash nature and any deferrals or accruals of past or future cash receipts or payments. The
cash flows from operating, investing and financing activities of the Company are
segregated based on the available information.

Note-24: ADDITIONAL NOTES TO ACCOUNTS

1. In the opinion of management, Current Assets, Loans and advances have a value on
realization in the ordinary course of business at least equal to that stated in the Balance
Sheet.

2. Capital and other commitments: The estimated amount of contracts remaining to be
executed on capital account and not provided for as at 31st March, 2024 is NIL (Previous
Year:-NIL).

6. Debit and credit balances of suppliers, customers and other are subject to confirmation and
reconciliation.

7. The earning per share, basic as well as diluted is Rs. (0.00) per share.

8. Employee Benefits Disclosures required under Accounting Standard 15.

The Company proposes to get the actuarial valuation done for retirement benefits in the
next financial year. The Company does not have any employee more than five-year-old as
on the date of balance sheet.

9. The balances of debtors & creditors are subject to confirmation.

10. Related Party disclosure:

12. Previous Year’s figures have been regrouped, reclassified and rearranged in pursuant of
Schedule III wherever necessary to correspond with the figures of the current year.

13. As per the proviso to rule 3(1) of the Companies (Accounts) Rules, 2014 for maintaining
books of account using accounting software which has a feature of recording trail (Edit
Log) facility is complied by the company.

For V.K. Sehgal & Associates For and on behalf of Board of Directors

Chartered Accountants MFL India Limited

(Firm’s Reg. No. 011519N)

Sd/- Sd/- Sd/-

Anuj Maheshwari Anil Thukral Syed Zameer Ulla

Partner Managing Director Director

Membership No. 096530 DIN: 01168540 DIN: 07486691

Date: 18/05/2024
Place: New Delhi
UDIN: 24096530BKHAQE7289

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Mar 31, 2015

1. Company Overview

MFL India Ltd. is a company rendering logistics and supply chain services all over the country. The Indian logistics & supply chain sector is increasingly becoming attractive to foreign and domestic operators as well as strategic and financial investors. The company has the mission to extend its operations to every nook and corner of the country in the years to come as the logistics & supply chain sector is also growing with the growing India.

The Company is a public limited company incorporated on 28.11.1981 in India and has its registered at C-4/28, Acharya Niketan, Mayur Vihar, New Delhi-110075, India. The Company has its listing on BSE Limited.

2 The company had given deposit of Rs. 1,637,413 to Excise & Sales Tax Department. As these were not refunded. It has been written off in profit & loss account.

3. The performance Bank Guarantee amounting to Rupees 39,09,550/- have been issued to parties.

4. In the opinion of management, Current Assets, Loans and advances have a value on realization in the ordinary course of business at least equal to that sated in the Balance Sheet.

5. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2015 is NIL (Previous Year:-NIL)

6. Debit and credit balances of suppliers, customers and other are subject to confirmation and reconciliation.

7. The earning per share, basic as well as diluted is Rs 0.20 per share.

8. Notes 1-20 form as integral Para of the accounts and have been authenticated as such.

9. Employee Benefits Disclosures required under Accounting Standard 15

The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than five year old.

10. Related Party disclosure :

(I) Key Managerial Personnel

(i) Anil Thukral Managing Director

(ii) Sheetal Thukral Whole Time Director

(II) The list of the concern where related parties are interested:

Shri Krishan Aggregates Private Limited

During the year there were no related party transactions.

11. Previous Year's figures have been regrouped, reclassified and rearranged in pursuant of Schedule III wherever necessary to correspond with the figures of the current year.

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Mar 31, 2014

1 The Company has some pending cases with sales tax and central excise, which the company has not acknowledged as debt.

2 Contingent Liability

i. There are disputed Liabilities on account of Sales Tax amounting Rs. 31,17,252/- the below mentioned disputes had been appealed before the appropriate appellate authority :

A) Against Sales Tax (A.Y 1988-1989) 7,66,336.00

B) Against Sales Tax (A.Y 1998-1999) 13,45,091.00

C) Against Sales Tax (A.Y. 1999-2000) 6,21,721.00

D) Against Sales Tax (A.Y2000-2001) 3,84,104.00

ii. There is disputed Liability on account of Central Excise, amounting Rs. 25,00,000/- being penalty as per order No. 18/2009 dated 30/03/2009 of Commissioner, Central Excise, Delhi received by the Company on 16-06-2009. We have been informed by the management of the Company that the said demand will be contested in appeal before the appropriate appellate authority within the stipulated time allowed as per law.

iii. The performance Bank Guarantee amounting to Rupees 44,09,550/- have been issued to parties.

3. In the opinion of management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to that stated in the Balance Sheet.

4. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2014 is NIL (Previous Year:- NIL)

5. Debits and credit balances of suppliers, customers and other are subject to confirmation and reconciliation.

6. Balance in non-operative bank accounts are subject to confirmation and reconciliation.

7. The earning per share, basic as well as diluted, is Rs. 0.19 per share.

8. Notes 1 -20 form as integral Para of the accounts and have been authenticated as such.

9. Employee Benefits Disclosures required under Accounting Standard 15

The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than five year old.

i). "Dynamic Movers-Blueview-Khazana" has been awarded a contract amounting to Rs. 6 Crore by East Central Railway for the work related in connection with the New B.G Rail line Between Koderma-Giridih, Reach-VII.

10. Previous year''s figures have been regrouped, reclassified and rearranged in pursuant of revised schedule VI wherever necessary to correspond with the figures of the current year.

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Mar 31, 2013

1 The Company has some pending cases with sales tax and central excise, which the company has not acknowledged as debt.

2 Contingent Liability

i. There are disputed Liabilities on account of Sales Tax amounting Rs. 89,11,734/- the below mentioned disputes had been appealed before the appropriate appellate authority :

A) Against Sales Tax (A.Y 1988-1989) 7,66,336.00

B) Against Sales Tax (A.Y.1998-1999) 13,45,091.00

C) Against Sales Tax (A.Y.1999-2000) 6,21,721.00

D) Against Sales Tax (A.Y.2000-2001) 58,77,118.00

E) Against Sales Tax (A.Y.2002-2003) 3,01,468.00

ii. There is disputed Liability on account of Central Excise, amounting Rs. 25,00,000/- being penalty as per order No. 18/2009 dated 30/03/2009 of Commissioner, Central Excise, Delhi received by the Company on 16-06-2009. We have been informed by the management of the Company that the said demand will be contested in appeal before the appropriate appellate authority within the stipulated time allowed as per law.

iii. The performance Bank Guarantee amounting to Rupees 44,09,550/- have been issued to parties.

3. In the opinion of management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to that stated in the Balance Sheet.

4. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2013 is NIL (Previous Year:- NIL)

5. Debits and credit balances of suppliers, customers and other are subject to confi rmation and reconciliation.

6. Balance in non-operative bank accounts are subject to confi rmation and reconciliation.

7. The earning per share, basic as well as diluted, is Rs. 0.06 per share.

8. Notes 1 -20 form as integral Para of the accounts and have been authenticated as such.

9. Employee Benefi ts Disclosures required under Accounting Standard 15

The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than fi ve year old.

10. Previous year''s fi gures have been regrouped, reclassifi ed and rearranged in pursuant of revised schedule VI wherever nec- essary to correspond with the fi gures of the current year.

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Mar 31, 2012

1 The Company has some pending cases with sales tax and central excise, which the company has not acknowledged as debt.

2 Contingent Liability

i. There are disputed Liabilities on account of Sales Tax amounting Rs. 89,11,734/- the below mentioned disputes had been appealed before the appropriate appellate authority :

A) Against Sales Tax (A.Y.1988-1989) 7,66,336.00

B) Against Sales Tax (A.Y.1998-1999) 13,45,091.00

C) Against Sales Tax (A.Y.1999-2000) 6,21,721.00

D) Against Sales Tax (A.Y.2000-2001) 58,77,118.00

E) Against Sales Tax (A.Y.2002-2003) 3,01,468.00

ii. There is disputed Liability on account of Central Excise, amounting Rs. 25,00,000/- being penalty as per order No. 18/2009 dated 30/03/2009 of Commissioner, Central Excise, Delhi received by the Company on 16-06-2009. We have been informed by the management of the Company that the said demand will be contested in appeal before the appropriate appellate authority within the stipulated time allowed as per law.

iii. The performance Bank Guarantee amounting to Rupees 37,09,550/- have been issued to parties.

3. In the opinion of management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to that stated in the Balance Sheet.

4. Capital and other commitments: The estimated amount of contracts remaining to be executed on capital account and not provided for as at 31st March, 2012 is NIL (Previous Year:- NIL)

5. Debits and credit balances of suppliers, customers and other are subject to confirmation and reconciliation.

6. Balance in non-operative bank accounts are subject to confirmation and reconciliation.

7. The earning per share, basic as well as diluted, is Rs. 0.15 per share.

8. Note 1-20 form as integral Para of the accounts and have been authenticated as such.

9. Employee Benefits Disclosures required under Accounting Standard 15

The provision of the Gratuity Act is not applicable to the company. The company does not have any employee more than five year old.

10. Related Party disclosure :

(I) Key Managerial Personnel

(i) Anil Kumar Chaddha Executive Director

(ii) Vineet Arora Executive Director

(iii) Anil Thukral non-Executive , Professional Director

(II) The list of the concern where related parties are interested :

(a) Euro Financial Services Limited

(b) Ardour Finman Private Limited

(c) LKG Forex Limited

(d) Key Stone Exim Private Limited

(e) Remax Developers Private Limited

(f) Omkar Buildrop Private Limited

(g) More Realty Private Limited.

(h) Khera Baba Finlease and investment Private Limited

(i) A.Wargo Farms Private Limited

(j) Ritz Fincap Private Limited

(k) VJ Agritech Private Limited

ii). "Dynamic Movers-Blueview-Khazana" has been awarded a contract amounting to Rs. 6 Crore by East Central Rail- way for the work related in connection with the New B.G Rail line Between Koderma-Giridih, Reach-VII. The work of the same is slated to start from next year. The company has following assets and liabilities due to being part of Joint Venture

Assets of the Joint Venture attributable to the Company: Rs. 2,15,181.00

(EMD to the Eastern Central Railway)

Liabilities of the Joint Venture attributable to the Company: NIL

Income of the Joint Venture attributable to the Company : NIL

Expense of the Joint Venture attributable to the Company: NIL

iii). The other joint venture the company has been involved namely "Dynamic Movers-Blueview-Sidharth" has been dissolved as a consequence of unsuccessful bid for which the Venture had been formed.

The Company has following Assets and Liability as a result of being the part of a Joint Venture

Assets of the Joint Venture attributable to the company: Rs. 4,06,898.00

(EMD to the Eastern Central Railway)

Liabilities of the Joint Venture attributable to the Company: NIL

iv). The Company has no capital commitments as a result of being a Joint Venture. 16. Segment Reporting: The company has incurred a loss from the sale of plant and machinery of crusher business amounting to Rs. 44,43,074.00.The details of incomes and expenses from each segment is given below:

11. Previous year's figures have been regrouped, reclassified and rearranged in pursuant of revised schedule VI wherever necessary to correspond with the figures of the current year.

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Mar 31, 2010

1. Company has no business except dealing in Shares / Securities etc. during the financial year.

2. Contingent Liabilities

i. There are disputed Liabilities on account of Sales Tax amounting Rs. 86,10,266/-the matter is stayed in appeal before the appropriate appellate authority :

A) Against Sales Tax(A.Y.1988-1989) 7,66,336.00

B) AgainstSalesTax(A.Y1998-1999) 13,45,091.00

C) Against Sales Tax(A.Y. 1999-2000) 6,21,721.00

D) Against Sales Tax(A.Y2000-2001) 58,77,118.00

ii. There is disputed Liability on account of Central Excise, amounting Rs. 25,00,000/-being penalty as per order No. 18/2009 dated 30/03/2009 of Commissioner, Central Excise, Delhi received by the Company on 16-06-2009. We have been informed by the management of the Company the said demand has been contested in appeal before the appropriate appellate authority, which is still pending.

3. Related Party Transaction

2009-10

a) Sales & Purchase Nil

4. Provision for Deferred Tax Assets / Liabilities

The provision for deferred tax assets has not been provided since the Company is incurring continuous losses.

5. Debits and credit balances of suppliers, customers and other are subject to confirmation and reconciliation.

6. Balance in non-operative bank accounts are subject to confirmation and reconciliation.

7. Previous year figures have been re-grouped / re-classified wherever necessary.

8. The Company has sold the Car to Director and incurred the loss of Rs.3,48,843.00.

9. Schedule 1-10 form as integral part of the accounts and have been authenticated as such.