Notes to Accounts of National General Industries Ltd.

Mar 31, 2024

(m) Contingent liability

Contingent liability is not provided for in the accounts and is recognized by way of notes.

(n) Financial Instruments i) Financial Assets

A. Initial recognition and measurement

All financial assets and liabilities are initially recognized at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities, which are not at fair value through profit or loss, are adjusted to the fair value on initial recognition. Purchase and sale of financial assets are recognised using trade date accounting.

B. Subsequent measurement

a) Financial assets carried at amortised cost (AC)

A financial asset is measured at amortised cost if it is held within a business model whose objective is to hold the asset in order 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.

b) Financial assets at fair value through other comprehensive income (FVTOCI)

A financial asset is measured at FVTOCI if it 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.

c) Financial assets at fair value through profit or loss (FVTPL)

A financial asset which is not classified in any of the above categories are measured at FVTPL.

C. Other Equity Investments

All other equity investments are measured at fair value, with value changes recognised in Statement of Profit and Loss, except for those equity investments for which the Company has elected to present the value changes in Other Comprehensive Income''.

D. Impairment of financial assets

In accordance with Ind AS 109, the Company uses ''Expected Credit Loss'' (ECL) model, for evaluating impairment of financial assets other than those measured at fair value through profit and loss (FVTPL).

Expected credit losses are measured through a loss allowance at an amount equal to:

The 12-months expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

Full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument)

For trade receivables Company applies ''simplified approach'' which requires expected lifetime losses to be recognised from initial recognition of the receivables. The Company uses historical default rates to determine impairment loss on the portfolio of trade receivables. At every reporting date these historical default rates are reviewed and changes in the forward looking estimates are analysed.

For other assets, the Company uses 12 month ECL to provide for impairment loss where there is no significant increase in credit risk. If there is significant increase in credit risk full lifetime ECL is used.

ii) Financial liabilities

A. Initial recognition and measurement

All financial liabilities are recognized at fair value and in case of loans, net of directly attributable cost. Fees of recurring nature are directly recognised in the Statement of Profit and Loss as finance cost.

B. Subsequent measurement

Financial liabilities are carried at amortized cost using the effective interest method. For trade and other payables maturing within one year from the balance sheet date, the carrying amounts approximate fair value due to the short maturity of these instruments.

a) Exemptions from retrospective application

(i) Business combination exemption

The Company has applied the exemption as provided in Ind AS 101 on non-application of Ind AS 103, "Business Combinations" to business combinations consummated prior to April 1, 2015 (the "Transition Date"), pursuant to which Goodwill / capital reserve arising from a business combination has been stated at the carrying amount prior to the date of transition under Indian GAAP. The Company has also applied the exemption for past business combinations to acquisitions of investments in subsidiaries / associates / joint ventures consummated prior to the Transition Date.

(ii) Share-based payment transactions

Ind AS 101 encourages, but does not require, first time adopters to apply Ind AS 102 Share based Payment to equity instruments that were vested before the date of transition to Ind AS. The Company has elected not to apply Ind AS 102to options that vested prior to April 1, 2015.

(iii) Fair value as deemed cost exemption

The Company has elected to measure items of property, plant and equipment and intangible assets at its carrying value at the transition date except for certain class of assets which are measured at fair value as deemed cost.

(iv) Decommissioning liabilities

The Company has elected to apply the transitional provision with respect to recognition of Decommissioning, Restoration and Similar Liabilities.

29. Gratuity and other Post - employment benefit plans:

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. At the end of accounting year actuarial valuation is done as per the Projected unit credit method and any shortfall is further provided for the following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Gratuity.

31. Other statutory information

a) There are no charges or satisfaction of charges yet to be registered with Registrar of Companies beyond the statutory period.

b) The company do not have any subsidiary company during the year and previous year.

c) There is no Scheme(s) of Arrangement pursed by the Company or approved or pending for approval by the Competent Authority during the year and previous year.

d) The company do not avail any working capital facilities during the year and previous year from Bank and/or financial institution, against stock and debtors, hence reconciliation of the same is not provided.

e) There company do not have any transactions with struck off company during the year and previous year.

f) There are no proceedings initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder, during the year and previous year.

g) The company have never been declared wilful defaulter by any bank or financial institution or other lender.

h) The company have not advanced or loaned or invested funds to any other person(s) or entity(ies), with the understanding that the Intermediary shall:

(i) 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

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

i) The company have not received any fund from any person(s) or entity(ies), with the understanding that the company shall:

(i) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

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

j) The company has not made any loans and advances to Promoters / Directors / relatives of the company during the year and previous year.

k) The company has no undisclosed income during the year and previous year.

l) The company does not hold or invest any amount in virtual digital asset including crypto currency, NFT etc

34. The previous period figure has been rearranged/ regrouped wherever necessary to make them comparable with those of current period classification & disclosure.

35. The figures has been rounded off to nearest of rupees in Lakhs.

As per our separate report of even date attached

For R.K. GOVIL & CO. For and on behalf of the Board Directors.

Chartered Accountants National General Industries Limited

FRN - 000748C

Sd/- Sd/- Sd/- Sd/-

CA ASFHSFI GOEL Pawan Kumar Modi Manhar Modi Vandana Gupta

Partner Managing Director cum CFO Director Company Secretary

Mem. No.: 418425 DIN : 00051679 DIN : 00051746 Mem. No.ACS24012

Place : New Delhi

Date : 30/05/2024

UDIN : 24418425BKCOWS4675

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Mar 31, 2015

1. Corporate information

National General Industries Limited ('The Company') is engaged in the production and selling of Steel. The Company has manufacturing facilities at Ghaziabad, Uttar Pradesh and Bhiwadi, Rajasthan. During the year under review the Company has explored an opportunity of handling services business for steel product in the State of Punjab.

2. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared on an accrual basis and under the historical cost convention.

The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

Terms/rights attached to equity shares

The company has only one class of equity shares having a par value of Rs 10 per share. The holder of each fully paid equity share is entitled to one vote. Each share is entitled to equal dividend if any declared by the Company and approved by the Share holders of the Company.

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

Loan from HDFC Bank - Vehicle Loan against hypothecation of Vehicle having repayment terms of 36 equated monthly instalments starting from March, 2014 and ending on February, 2017 at rate of interest @ 10.52% p.a. The Loan is further secured by personal guarantee of Director of the Company.

Working Capital loans from State Bank of Patiala are secured by first charge on all current assets of company, both present & future, including stocks of raw materials, finished and semi-finished goods and book debts of the Company. These facilities are further secured by collateral security of land of the company situated at 9th Milestone, Ghaziabad. The managing director and director have given personnel guarantee to the bank for the facility. The working capital loan are repayable on demand and carry interest @ 12.50% p.a.

Term loan from State Bank of Patiala of Rs 50 lakh for purchase and installation of Plant & Machinery against hypothecation of said Plant & Machinery having repayment terms of 36 Equated Monthly Instalments starting from May, 2014 and ending on April, 2017 and carry interest @ 12.50% p.a.

3. Segment Information

Business Segments:

The Company operates in three segments i.e. manufacturing of steel, handling services of steel products and investing.

Geographical Segments:

The Company operates in India and all assets of the Company are located within India only and hence secondary segment by geographical region is not applicable for the company.

4. Related Party Disclosures

Names of Related Parties

A. Parties under common control Modi Power Pvt. Ltd.

Modi Metal & Allied Industries Pvt. Ltd. J.P.Modi&Sons-HUF A.K.Modi- HUF P.K.Modi - HUF

B. Key Managerial personnel & their relatives Relationship

Mr Ashok Kumar Modi Managing Director

Mr Pawan Kumar Modi Jt. Managing Director

Mr Vasu Modi Director

Mr Madhur Modi Vice President

Mrs Shakuntala Modi Relative of Managing Director

5. There are no Micro, Small and Medium Enterprises to whom company owes dues which are outstanding for more than 45 days as on 31.03.2015. The information as required to be disclosed under MSMED Act, 2006, has been determined to the extent such parties has been identified on the basis of information available with the Company.

6. The Company has not given any loans or guarantees covered under the provisions of section 186 of the Companies Act, 2013 during financial year 2014-15.

7. Gratuity and other Post- employment benefit plans:

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. At the end of accounting year actuarial valuation is done as per the Projected unit credit method and any shortfall is further provided for the following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Gratuity.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors on long term basis.

8. Figures of the previous year have been rearranged/ regrouped wherever necessary to make them comparable. Figures have been rounded off to nearest of rupee.

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Mar 31, 2014

1. Share Capital

a. Terms/rights attached to equity share

The company has only one class of equity shares having a par value of Rs 10 per share. The holder of each fully paid equity share is entitled to one vote. Each share is entitled to equal dividend if any declared by the Company and approved by the Share holders of the Company.

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

b. During the year 1995-96, 327,551 Equity shares of Rs. 10/- each fully paid up were issued as Bonus Shares out of General Reserve on 07/07/1995.

2. Long-term borrowings

Loan from RIICO Ltd. - Deferred Payment Loan against cost of Leasehold Land for Bhiwadi unit purchased from RIICO Ltd. on repayment terms of 19 quarterly installments with simple rate of interest @ 12% p.a. on reducing balance starting from December, 2009 and ending on June, 2014.

Loan from HDFC Bank - Vehicle Loan against hypothecation of Vehicle having repayment terms of 36 equated monthly instalments starting from March, 2014 and ending on February, 2017 at rate of interest @ 10.52% p.a. The Loan is further secured by personal guarantee of Director of the Company.

3. Short-term borrowings

Working Capital loans from State Bank of Patiala are secured by first charge on all current assets of company, both present & future, including stocks of raw materials, finished and semi-finished goods and book debts of the Company. These facilities are further secured by collateral security of land of the company situated at 9th Milestone, Ghaziabad. The managing director and director have given personnel guarantee to the bank for the facility. The working capital loan are repayable on demand and carry interest @ 12.50% p.a.

Term loan from State Bank of Patiala of Rs 50 lakh for purchase and installation of Plant & Machinery against hypothecation of said Plant & Machinery having repayment terms of 36 Equated Monthly Instalments starting from May, 2014 and ending on April, 2017 and carry interest @ 12.50% p.a.

4. Segment Information

Business Segments:

The Company operates in two segments i.e. manufacturing of steel and investing.

Geographical Segments:

The Company operates in India and all assets of the Company are located within India only and hence secondary segment by geographical region is not applicable for the company.

5. Related Party Disclosures

Names of Related Parties

A. Parties under common control

Modi Power Pvt. Ltd.

Modi Metal & Allied Industries Pvt. Ltd.

J.P. Modi & Sons - HUF

A.K. Modi - HUF P.K. Modi - HUF

B. Key Managerial personnel and their relatives Relationship

Mr. Ashok Kumar Modi Managing Director

Mr. Pawan Kumar Modi Jt. Managing Director

Mr. Vasu Modi Director

Mr. Madhur Modi Vice President

Mrs. Shakuntala Modi Relative of Managing Director

6. Contingent liabilities (not provided for) in respect of:

(a) Bank Guarantee in favour of Sales Tax Department - Rs. 5.28 lacs (P.Y. Rs. 5.28 lacs)

(b) Bills discounted liability - Nil (P.Y. - Nil)

7. There are no Micro, Small and Medium Enterprises to whom company owes dues which are outstanding for more than 45 days as on 31.03.2014. The information as required to be disclosed under MSMED Act, 2006, has been determined to the extent such parties has been identified on the basis of information available with the Company.

8. Gratuity and other Post-employment benefit plans:

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. At the end of accounting year actuarial valuation is done as per the Projected unit credit method and any shortfall is further provided for.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Gratuity.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors on long term basis.

9. Figures of the previous year have been rearranged/regrouped wherever necessary to make them comparable. Figures have been rounded off to nearest of rupee.

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Mar 31, 2013

1. Corporate information

National General Industries Limited (''The Company'') is engaged in the production and selling of Steel. The Company has manufacturing facilities at Ghaziabad, Uttar Pradesh and Bhiwadi, Rajasthan.

2. Basis of preparation

The financial statements of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention. The accounting policies adopted in the preparation of financial statements are consistent with those of previous year.

3. Contingent liabilities (not provided for) in respect of:

(a) Bank Guarantee in favour of Sales Tax Department – Rs. 5.28 lacs (P.Y. Rs. 5.28 lacs)

(b) Bills discounted liability – Nil (P.Y. – Nil)

4. There are no Micro, Small and Medium Enterprises to whom company owes dues which are outstanding for more that 45 days as on 31.03.2013. The information as required to be disclosed under MSMED Act, 2006, has been determined to the extent such parties has been identified on the basis of information available with the Company.

5. Gratuity and other Post- employment benefit plans:

The Company has a defined benefit gratuity plan. Gratuity is computed as 15 days salary, for every completed year of service or part thereof in excess of 6 months and is payable on retirement/termination/resignation. The benefit vests on the employees after completion of 5 years of service. At the end of accounting year actuarial valuation is done as per the Projected unit credit method and any shortfall is further provided for.

The following tables summarize the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the Gratuity

Profit and Loss account

Net employee benefit expense (recognised in Employee Cost)

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Mar 31, 2012

1.1 CONTINGENT LIABILITIES:

(a) Bank Guarantee in favor of Sales Tax Dept. Rs. 5.28 Lac (P.Y. Rs.5.28 Lac).

(b) Bills discounted liability is Nil. (P.Y. Nil)

(c) Estimated amount of contract is Nil. (P.Y. Nil)

1.2 (a) Valuation of Purchases and inventories is made exclusive of excise duty and sale tax paid, which is being claimed as CENVAT & MODVAT respectively.

(b) Sales have been shown as inclusive of excise duty paid.

1.3 Fall in market value of Shares / units are considered to be of temporary nature therefore all Investments are valued at cost.

1.4 The current assets (read with Note No.1.4) have been taken at their approximately realizable value and the realizable value of the same in the ordinary course of the business is not less than amount as shown in the financial accounts as certified by the management.

1.5 Expenses under primary heads such as salary, wages, consumption of fuel and raw material etc. are being shown as usual in their respective heads.

1.6 Certain balances of debtors, creditors & loans & advances are subject to confirmation.

1.7 There are no Micro, Small and Medium Enterprises to whom company owes dues which are outstanding for more than 45 days as on 31.03.2012. The information as required to be disclosed under MSMED Act, 2006, has been determined to the extent such parties has been identified on the basis of information available with the Company.

1.8 Depreciation aggregating to Rs. 440529/- on revalued amount of Fixed Assets has been directly charged to Revaluation Reserve.

1.9 The deferred tax assets or liabilities resulting from timing difference" between the book profit and taxable profit is recognized using current tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. Deferred tax liabilities related to fixed assets of Rs. 4, 26,029/- (P.Y. 17, 66,313/-) has been provided. The Company has recognized cumulative deferred tax liabilities, of Rs. 47, 37,082/- as on 31.03.2012.

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Mar 31, 2010

1. Modi Metal Udyog Pvt. Ltd. (MMUPL), (the amalgamating company) has been amalgamated with the company. The Scheme of Amalgamation (the Scheme) was sanctioned by the Honble High Court of Judicature at Delhi vide its Order dated 26th February, 2010. The Scheme became effective on 20th April, 2010 with the appointed date of the Scheme of 1st April, 2008. In accordance with the said Scheme and as per the approval of the Honble High Courts:

a. The assets, liabilities, rights and obligations of erstwhile MMUPL have been transferred to and vested with the Company with effect from 1st April, 2008 and have been recorded at their respective book values during the financial year 2008-09, under the merger method of accounting for amalgamation.

b. 4,71,704 Equity shares of Rs 10/- each fully paid up are to be issued to the equity share holders of the Amalgamating Company, in accordance with the swap ratio in the scheme of Amalgamation i.e. 16 nos. of fully paid up equity shares of Rs. 10/- each of the company for every 10 nos. of fully paid up equity shares of Rs. 100/- each of Amalgamating Company, whose names are registered in the register of members on record date, without payment being received in cash. Pending allotment, the face value of such shares has been shown as "Equity Share Suspense". The Company has since allotted the shares on 17th May, 2010.

c. 2,35,750 Equity Shares of erstwhile MMUPL held by the Company have been cancelled during the financial year 2008-09.

d. Excess of the net assets taken over by the Company over the paid up value of Equity shares to be issued and allotted ( as referred to under ( b ) above ) of Rs. 2,47,64,460/-has been credited to Capital Reserve Account during the financial year 2008-09.

e. Rs. 4,73,985/- (Previous Year Rs. 1,06,250/-) being amount of expenditure incurred on Amalgamation as on 31.03.2010 is debited to current assets and will be amortised alongwith subsequent expenses from the financial year 2010-11 and onwards.

f. From the effective date the Authorised Share Capital will stand increased to Rs. 12,00,00,000/- consisting of 1,20,00,000 Equity Shares of Rs. 10 each.

2. CONTINGENT LIABILITIES:

a) Bank Guarantee in favour of Sales Tax Dept. Rs. 5.28 Lac (P.Y. Rs.5.28 Lac).

b) Bills discounted liability is Nil. (P.Y. Nil)

c) Estimated amount of contract is Nil. (P.Y. Nil)

3. (a) Valuation of Purchases and inventories is made exclusive of excise duty and sale tax paid, which is being claimed as CENVAT & MODVAT respectively.

(b) Sales have been shown as inclusive of excise duty paid.

4. Fall in market value of Shares / units are considered to be of temporary nature therefore all Investments are valued at cost.

5. The current assets (read with Note No.4 of Accounting Policies) have been taken at their approximately realizable value and the realizable value of the same in the ordinary course of the business is not less than amount as shown in the financial accounts as certified by the management.

6. Expenses under primary heads such as salary, wages, consumption of fuel and raw material etc. are being shown as usual in their respective heads.

7. Certain balances of Debtors, Creditors & Loans & Advances are subject to confirmation.

8. There are no Micro, Small and Medium Enterprises to whom company owes dues which are outstanding for more than 45 days as on 31.03.2010. The information as required to be disclosed under MSMED Act, 2006, has been determined to the extent such parties has been identified on the basis of information available with the Company.

9. Depreciation aggregating to Rs. 4,40,529/- on revalued amount of Fixed Assets has been directly charged to Revaluation Reserve.

10. The deferred tax assets or liabilities resulting from "timing difference" between the book profit and taxable profit is recognized using current tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. Deferred tax liabilities related to fixed assets of Rs. 6,49,824/- (P.Y. 54,342/-) has been provided. The Company has recognized cumulative deferred tax liabilities, of Rs. 25,44,739/- as on 31.03.2010.

11. Figures of the previous year have been rearranged/ regrouped wherever necessary to make them comparable.

12. Figures of the previous years and current years have been rounded off to nearest rupee.

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Mar 31, 2009

1. CONTINGENT LIABILITIES:

a) Bank Guarantee in favour of sales Tax Department Rs. 5.28 Lac (PY Nil).

b) Bills discounted liability is Nil. (P.Y. Nil)

c) Estimated amount of contract is Nil. (P.Y. Nil)

2. (a) Valuation of Purchases and inventories is made exclusive of excise duty and sale tax paid, which is being claimed as CENVAT & MODVAT respectively.

(b) Sales have been shown as inclusive of excise duty paid.

3. Fall in market value of Shares / units are considered to be of temporary nature therefore all Investments are valued at cost.

4. The current assets (read with Note No.4 of Accounting Policies) have been taken at their approximately realizable value and the realizable value of the same in the ordinary course of the business is not less than amount as shown in the financial accounts as certified by the management.

5. Expenses under primary heads such as salary, wages, consumption of fuel and raw material etc. are being shown as usual in their respective heads.

6. Certain balances of Debtors, Creditors & Loans & Advances are subject to confirmation.

7. There are no Micro, Small and Medium Enterprises to whom company owes dues which are outstanding for more than 45 days as on 31.03.2009. The information as required to be disclosed under MSMED Act, 2006, has been determined to the extent such parties has been identified on the basis of information available with the Company.

8. The deferred tax assets or liabilities resulting from “timing difference” between the book profit and taxable profit is recognized using current tax rates and laws that have been enacted or substantively enacted as on the balance sheet date. The Company has recognized cumulative deferred tax liabilities, of Rs. 2547300/- as on 31.03.2009.

9. The Scheme of Amalgamation of Modi Metal Udyog Pvt. Ltd. with the Company from the Appointed Date 1st April, 2008, has been approved by the shareholders of the company and petition has been submitted to Hon’ble High Courts of Judicature at Delhi for sanction u/s. 391 and 394 of the Companies Act, 1956. Upon receipt of statutory approvals, the Scheme will be given effect to in the financial statements for the year ended 31st March, 2009.

10. Figures of the previous year have been rearranged/ regrouped wherever necessary to make them comparable.

11. Figures of the previous years and current years have been rounded off to nearest rupee.