Notes to Accounts of Sudal Industries Ltd.

Mar 31, 2024

Terms/rights attached to Equity shares :

The Company has only one class of issued Equity Shares having a par value of Rs.10 per share. Each Shareholder is eligible for one vote per share held.

The Dividend proposed by the Board of Directors if any, is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim Dividend. In the event of liquidation, the equity shareholders are eligible to receive the residual assets of the Company after distribution of all preferential amounts in proportion to their shareholding.However, no preferential amount exist currently.

In the Period of five years immediately preceding March, 2024:

The Company has not allotted any equity shares as fully paid up without payment being received in cash or as Bonus Shares or Bought back any equity shares.

The Company will exercise the option of lower tax rate permitted under section 115BAA of the Income-tax Act,1961 for the current financial year before filing of the Income Tax return and therefore, is not liable for Minimum Alternate Tax (MAT) on book profits. Considering brought forward unabsorbed losses/depreciation and opting for aforesaid option, no current tax liability needs to be provided for.

Note 33 : FINANCIAL INSTRUMENTS

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: Quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: Other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: Techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

Financial risk management objectives and policies

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

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including investments and deposits , foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through a treasury departments, which evaluates and exercises independent control over the entire process of market risk management. The treasury department recommend risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies and ensuring compliance with market risk limits and policies.

(i) Market Risk- Interest rate risk

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

(ii) Market Risk- Foreign currency risk.

The Company does not operate internationally and no portion of the business is transacted in foreign currencies and consequently the Company is not exposed to foreign exchange risk.

(iii) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assess financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limits are set accordingly.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occuring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business,

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s

ability to meet its obligations,

iv) Significant increase in credit risk on other financial instruments of the same counterparty,

v) Significant changes in the value of the collateral supporting the obligation or in the quality of the third-

party guarantees or credit enhancements .

Financial assists are written off when there is no reasonable expectations of recovery, such as a debtor failing to engage in a repayment plan with the Company. The Company categorises receivables for write off when a debtor fails to make contractual payments greater than 3 years past due. Where loans or receivables have been written off, the Company continues engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognized in profit or loss.

For Trade receivable ageing-Please refer note no. 10.1

(iv) Liquidity Risk

Liquidity risk is defined as the risk that the Company will not be able to settle or meet its obligations on time, or at a reasonable price. The Company''s operational department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related such risk are overseen by senior management. Management monitors the Company''s net liquidity position through rolling forecasts on the basis of expected cash flows.

The Company''s objectives when managing capital are to Safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and Maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt

The Company''s strategy is to maintain a gearing ratio within the industry average. The gearing ratios were as follows:

Note 36 : DISCLOSURE PURSUANT TO IND AS - 19 "EMPLOYEE BENEFITS" (Post retirement benefit plans)

i) Gratuity: In accordance with the applicable laws, the Company provides for gratuity, a defined benefit retirement plan ("The Gratuity Plan") covering eligible employees. The Gratuity Plan provides for a lump sum payment to vested employees on retirement (subject to completion of five years of continuous employment), death, incapacitation or termination of employment that are based on last drawn salary and tenure of employment. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation on the reporting date.

With the objective of presenting the plan assets and plan liabilities of the defined benefits plans at their fair value on the balance sheet, assumptions under Ind AS 19 are set by reference to market conditions at the valuation date.

The sensitivity analyses above have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period and may not be representative of the actual change. It is based on a change in the key assumption while holding all other assumptions constant. When calculating the sensitivity to the assumption, the same method used to calculate the liability recognised in the balance sheet has been applied. The methods and types of assumptions used in preparing the sensitivity analysis did not change compared with the previous period.

The weighted average duration of the defined benefit obligation is 6.47 years (2022-23- 6.61 years)

ii) Compensated Absences:

The Company permits encashment of compensated absence accumulated by their employees on retirement, separation and during the course of service. The liability in respect of the Company, for outstanding balance of leave at the balance sheet date is determined and provided on the basis of actuarial valuation as at the balance sheet date performed by an independent actuary. The Company doesn''t maintain any plan assets to fund its obligation towards compensated absences.

iii) The Code on Social Security :

The Code on Social Security, 2020 (''Code'') relating to employee benefits during employment and post-employment benefits has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified. The Company will assess the impact of the Code and recognise the same when the Code becomes effective.

(b) During the year ended March 31, 2024, the Company has received show cause notices from Goods and Service Tax Department for aggregate tax impact of Rs.3,305.93 lakhs (including penalty and interest thereon upto date of notice), in respect of disallowance of input credits, mis-match in the GST returns filed etc. for the financial year from 2017-18 to 2021-22. These show cause notices have been suitably replied by the Company and no further communication received from the department thereafter. In the opinion of the management, no liability will arise in this regard.

(c) The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material impact on its financial statements.

a) Related party relationship is as identified by the management and relied upon by the auditors.

b) No amounts in respect of related parties have been written off/ written back during the year and nor provision has been made for doubtful debts/ receivable.

c) The above figures do not include provisions for compensated expense and gratuity as separate actuarial valuation are not available.

d) Enterprises in which Key Managerial Personnel (KMP) having significance influence and one of the relative of the KMP has pledged their equity holding aggregating to 46,43,000 equity shares (previous year Nil) of the Company against unsecured borrowings from a body corporate

e) Shri Sudarshan Chokhani and Shri Shyantanu S. Chokhani both the directors are only partners in the firm and the said loan given to the Company is out of own funds and is not out of borrowed funds.

(a) The Company''s Prepackage Insolvency Resolution Plan (PIRP) has been approved by Hon''ble NCLT, Mumbai vide its Order dated August 10, 2023. Pursuant to the said Order, total debt of Rs.15,765.35 lakhs being balance as on June 30, 2023 has been settled for Rs.3,224.38 lakhs. Out of total settlement amount, the Company has paid Rs.2,657.28 lakhs during the year ended March 31, 2024 (raised by way of issue of equity shares of Rs. 100 lakhs, borrowings aggregating to Rs. 2,142 lakhs and balance of Rs.165.28 lakhs from internal sources) and Rs 325 lakhs had already been paid in Financial year 2022-23; balance amount of Rs 250 lakhs is payble in balance two quarterly installments bearing interest rate of MCLR i.e. 8.75% per annum.Accordingly, the Company has written back liabilities agreegating to Rs.12540.97 lakhs and disclosed the same as exceptional items for the year ended March 31, 2024 .

(b) Aforesaid balance amount of Rs 250 lakhs payable to a bank is secured by way by way of hypothecation of all inventories at factory/ book debts and secured by 1st charge of mortgage of factory land and building and hypothecation of other fixed assets of the Company situated at unit MIDC, Ambad, Nashik and is also personally guaranteed by the two directors of the Company

(c) One of the unsecured lender of Rs.1243.39 lakhs ( as mentioned in the aforesaid NCLT Order) which has been settled for Rs. 2.46 lakhs as per NCLT Order filed an appeal before the Hon''ble National Company Law Appellate Tribunal (NCLAT), Delhi praying for reversal of the aforesaid Resolution Plan. Based on the expert opinion, the Company expects a favourable outcome in this regard.

Note 42 : Going Concern :

During the year ended March 31, 2024,the Company''s Prepackage Insolvency Resolution Plan (PIRP) was approved by Hon''ble NCLT, Mumbai vide its Order dated August 10, 2023. Consequently, the Company has written back

liabilities in respect of principal and Interest aggregating to Rs.12540.97 lakhs (including interest of Rs.690.77 lakhs for the period from April 1, 2023 to June 30, 2023) and disclosed the same as exceptional items. The Company has been continuously incurring losses over last several years However, there was net profit of Rs.12,118.66 lakhs after comprehensive income (after write back of Rs.12,540.97 lakhs on settlement pursuant to Hon''ble National Company Law Tribunal Order dated August 10, 2023) for the year ended March 31, 2024. Being post settlement timely payment of the installments to the lender in compliance with aforesaid NCLT Order and expected better operational performance in future, the management believes that it is appropriate to prepare these financial statements on a going concern basis.

Note 45 : Registration of charges or satisfaction with Registrar of Companies (ROC) beyond statutory period

The Company is in the process of satisfaction of charges registered in earlier years aggregating to Rs. Nil lakhs (as at March 31, 2023 Rs.Nil lakhs)

Note 46 : Details of Benami Property held

No proceeding has been initiated or pending against the Company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

The Company has been sanctioned working capital limit from banks in excess of Rs 5 crores which has become overdue for quite some time and hence quarterly returns or statements is not required to be filed with such banks.

Note 48 : Wilful Defaulter

The Company has not been declared wilful defaulter by any bank or financial Institution or other lender.

Note 49 : The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

Note 50 : There were no transactions relating to previously unrecorded income that have been surrendered and disclosed as income during the year in the tax assessments under the Income Tax Act, 1961.

Note 51 :

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

(i) directly or indirectly lend to 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.

Note 52 :

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

(i) directly or indirectly lend to 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

The Company uses an accounting software and a payroll application for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the accounting software and the payroll application, except that audit trail feature is not enabled at the database level for the payroll application and HANA database. Further no instance of audit trail feature being tampered with was noted in respect of the accounting software and payroll application. Presently, the log has been activated at the application and the privileged access to HANA database continues to be restricted to limited set of users who necessarily require this access for maintenance and administration of the database.

Note 55 :

Previous year''s figures have been regrouped/reclassified whenever necessary to conform to current year''s classification.

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Mar 31, 2015

I) The Company has only one class of equity shares having a par value of Rs, 10 each. Each holder of equity shares is entitled to one vote per share.

ii) The Company has not issued any aggregate number and class of shares as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date.

iii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to the shareholding. However, no such preferential amount exist currently.

a) Issue of Convertible Warrants and conversion into Shares:

The Company has pursuant to the approval of the shareholders in the Extra Ordinary General Meeting held on 30th January,2013, had issued 15,50,000 Optionally Fully Convertible Warrants("OFC") of Rs, 19.00 each to director and their relatives on 14th February,2013.The Company had converted 6,90,000 OFC warrants into 6,90,000 equity shares of Rs, 10 each at a premium of Rs, 9.00 each on 6th March,2013 and 8,60,000 OFC Warrants into 8,60,000 equity shares of Rs, 10 each at premium of Rs, 9.00 each on 9th August, 2014 in accordance with provisions of Chapter XIII of SEBI (Disclosure and investor protection) Guidelines 2000 issued by Securities and Exchange Board of India.

1. Secured Loans :

(a) Term Loan of Rs, 283.09 Lakhs (Previous year Rs, 347.90) (Interest @ Base rate plus 3.50% p.a.; previous year @ Base rate plus 3.50% p.a.) are secured by way of equitable mortgage of all immovable properties and hypothecation of all movable assets which is equally repayable in 36 monthly installments after moratorium period of 3 months and is also personally guaranteed by two directors of the Company.

(b) Non fund based limit utilized 100 Lakhs (Previous year Rs, 1040 Lakhs) and Cash Credit (Interest @ Base rate plus 3.25% per p.a.; previous year @ Base rate plus 3.25% p.a.) are secured by hypothecation of stocks and book debts and is also personally guaranteed by two directors of the Company.

(c) Vehicle Loan of Rs, 20.37 Lakhs (Previous year Rs, 38.41 Lakhs) (Interest @ 8.75%/10.25% ; previous year @ 8.75% ) are repayable over a period of 3 years and secured by hypothecation of Vehicle purchased their against.

(d) Working Capital Term Loan(WCTL) Rs, 1366.16 Lakhs (Previous year Rs, 1250 Lakhs), Interest @ 15.25% floating, secured by way of hypothecation of all stocks at factory/ consignment agents and book debts (residual value after meeting the DP for ODBD limits) and secured by 1st charge of mortgage of factory land and building and hypothecation of other fixed assets of the company unit at MIDC, Ambad, Nashik and is also personally guaranteed by the two directors of the company. Loan repayable in 36 equal monthly installment after moratorium of 24 months. Interest to be paid on monthly basis from the day one.

(e) Working Capital Term Loan of Rs, 922.10 Lakhs (Previous year Nil), Interest @ 13.50%, secured by 2nd Charge of Mortgage of immoveable properties and 2nd Charge on hypothecation of all Moveable Fixed Assets, and all other Curent Assets of the Company. The same is Personally Guaranteed by the Managing Director of the Company. The loan is repayable in 60 monthly installments after moratorium of 18 months. Interest is payable on monthly basis from January 2015.

The request of the company for Restructuring of the same is under consideration.

(g) During the year, the Company has defaulted in payment of Purchase Receivable Finance Scheme amounting to Rs, 9,22,10,133. The same has been regularized by the financial institution by converting it into Working Capital Term Loan. (Refer Note 28(e)).

Unsecured Loans :

Interest rate range between 15% to 18% (Previous year 15% to 18%) and are repayable within 1 to 3 years (Previous year 1 to 3 years).

2. (a) In the opinion of the Board, assets other than fixed assets and non current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

(b) The accounts of trade receivable and payable and Loans and Advances are subject to formal confirmations/ reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial.

2.1 Land, Building, Plant & Machinery and Electrical Installations were revalued in the accounts on April 1,1994. The same have again been revalued on March 31,2004 on the basis of reports of approved value/ replacement cost basis using standards indices. The following revalued amount (net of withdrawals) remain substituted for the historical cost in the gross block of fixed assets.

3. Debtors outstanding for a period exceeding six months includes Rs, 20,91,180 from two customers due for more than one year. The management is confident of recovery.

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

5. The Company is primarily engaged in the business of Manufacturing of Aluminum Extrusions and downstream/ value added products. All of Company's operations are located in India and are subject to the same risks and returns. Therefore, no separate segment reporting is provided in terms of Accounting Standard "Segment Reporting".

6. Disclosure as required by Accounting Standard -15 (Revised) on Employee Benefits:

In respect of gratuity and compensated absences, defined benefit schemes (based on Actuarial Valuation)

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Mar 31, 2014

1. OVERVIEW :

Incorporated in the state of Maharashtra in 1979, the Company was originally named Sudarshan Aluminium Industries Limited. In April, 1994, the name of the company was changed to Sudal Industries Limited.

The Company is in the business of manufacturing of Aluminium Extrusions, Aluminium Alloys, Down Stream Products.

2. a) Terms/rights attached to equity shares :

i) The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share.

ii) The Company has not issued any aggregate number and class of shares as fully paid up pursuant to contract(s) without payment being received in cash,bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date.

iii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to the shareholding. However, no such preferential amount exist currently.

b) The proceeds of preferential issue have been utilised for meeting working capital requirements.

c) Issue of Convertible Warrants and conversion into Shares :

The Company has pursuant to the approval of the shareholders in the Extra Ordinary General Meeting held on 30th January,2013, has issued 15,50,000 Optionally Fully Convertible Warrants("OFC") of Rs. 19.00 each to director and their relatives on 14th February, 2013. Out of which, the Company had converted 6,90,000 OFC warrants into 6,90,000 equity shares of Rs. 10 each at a premium of Rs. 9.00 each on 9th March,2013, in accordance with provisions of Chapter XIII of SEBI (Disclosure and investor protection) Guidelines 2000 issued by Securities and Exchange Board of India and the balance 8,60,000 OFC warrants to be converted into equity shares on or before 13th August, 2014.

NOTE : 3

Contingent liabilities not provided in respect of :

(a) Tax liability for pending ''C'' Forms 17,184,376 10,075,878

(b) Bills/Cheques discounted with bank, since realisation 23,595,438 7,320,364

4. Secured Loans :

(a) Term Loan of Rs. Nil (Previous year Rs. 90.30 Lakhs) (Interest @ PLR plus 1% p.a.; previous year @ PLR plus 1% p.a.) and Term Loan of Rs. 347.90 Lakhs (Previous year Rs. 520.53 Lakhs) (Interest @ Base rate plus 3.50% p.a.; previous year @ Base rate plus 3.50% p.a.) are secured by way of equitable mortgage of all immovable properties and hypothecation of all movable assets which is equally repayable in 36 months installments respectively and is also personally guaranteed by two directors of the Company.

(b) Non fund based limit utilised Rs. 1000 Lakhs (Previous year Rs. 1642 Lakhs) and Cash Credit (Interest @ Base rate plus 3.25% per p.a.; previous year @ Base rate plus 3.25% p.a.) are secured by hypothecation of stocks and book debts and is also personally guaranteed by two directors of the Company.

(c) Vehicle Loan of Rs. 38.41 Lakhs (Previous year Rs. 80.56 Lakhs) (Interest @ 8.75% flat; previous year @ 8.75% flat) are repayable over a period of 3 years and secured by hypothecation of Vehicle purchased their against.

(d) Working Capital Term Loan Rs. 1250 Lakhs (Previous year Rs. Nil), Interest @ 15.25% floating, secured by way of hypothecation of all stocks at factory/ consignment agents and book debts (residual value after meeting the DP for ODBD limits) and secured by 1st charge of mortagage of factory land and building and hypothecation of other fixed assets of the company unit at MIDC, Ambad, Nashik and is also personally guaranteed by the two directors of the company. Loan repayable in 36 equal monthly instalment after moratorium of 24 months. Interest to be paid on monthly basis from the day one.

Unsecured Loans :

Interest rate range between 15% to 18% (Previous year 15% to 18%) and are repayable within 1 to 3 years (Previous year 1 to 3 years).

5. (a) In the opinion of the Board, assets other than fixed assets and non current investment have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

(b) The accounts of trade receivable and payable and Loans and Advances are subject to formal confirmations/ reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial.

6. Debtors outstanding for a period exceeding six months includes Rs. 20,91,180 from two customers due for more than one year. The management is confident of recovery.

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

8. The Company is primarily engaged in the business of Manufacturing of Aluminium Extrusions and down stream/ value added products and all the operations are located in india. Thus in terms of accounting standard "Segment Reporting" (AS-17), it is the only segment for reporting purpose.

9. Disclosures as required by Accounting Standard -18, on "Related Party Disclosure" are given below :

(i) Associates with whom transactions have been entered during the year in the ordinary course of the business :

Sudarshan Chokhani and Company

Shriram Chokhani and Company

Chhaganlal Sheokarandas and Company

(ii) Key Management Personnel :

Shri Sudarshan S. Chokhani

Shri Shyantanu S. Chokhani

(iii) Relatives of Key Managerial Personnel :

Shri Deokinandan Ajitsaria

10. The Company Secretary of the company has retired w.e.f. 1st July, 2013 and the company is making concerted efforts to fill the vacancy.

11. The previous year figures have been regrouped/ rearranged/ reclassified, wherever necessary to conform to the current year presentation. Figures in brackets pertain to previous year.

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Mar 31, 2013

1. Secured Loans :

[a] Term Loan of '' 90.30 Lakhs [Previous year '' 182.12 Laks] [Interest @ PLR plus 1% p.a.] and Term Loan of '' 520.53 Lakhs [Previous year '' 667.98 Lakhs] [Interest @ Base rate plus 3.50% p.a.] are secured by way of equitable mortgage of all immovable properties and hypothecation of all movable assets which is equally repayable in 11 months and 38 months installments respectively and is also personally guaranteed by two directors of the Company.

[b] Non fund based limit utilized '' 1642 Lakhs [Previous year ''1814 Lakhs] and Cash Credit [Interest @ Base Rate plus 3.25% per annum] are secured by hypothecation of stocks and book debts and is also personally guaranteed by two directors of the Company.

[c] Vehicle Loan of '' 24.68 Lakhs [Previous year '' 10.47 Lakhs] [Interest @ 8.75% flat] are repayable over a period of 3 years and secured by hypothecation of Vehicle purchased their against.

Unsecured Loans :

Interest rate range between 15% to 18% [Previous year 15% to 16%] and are repayable within 1 to 3 years [Previous year 2 to 3 years].

2. [a] In the opinion of the Board, assets other than fixed assets and non current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

[b] The accounts of trade receivable and payable and Loans and Advances are subject to formal confirmations / reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial.

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

4. The Company is primarily engaged in the business of Manufacturing of Aluminum Extrusions and downstream/ value added products and all the operations are located in India. Thus in terms of accounting standard "Segment Reporting" [AS-17], it is the only segment for reporting purpose.

5. Disclosures as required by Accounting Standard -18, on "Related Party Disclosure" are given below :

[i] Associates with whom transactions have been entered during the year in the ordinary course of the business: Sudarshan Chokhani and Company

Shriram Chokhani and Company Chhaganlal Sheokarandas and Company

[ii] Key Management Personnel:

Shri Sudarshan S. Chokhani Shri Shyantanu S. Chokhani

[iii] Relatives of Key Managerial Personned:

Shri Deokinandan Ajitsaria

Note:

1. No amount pertaining to related parties has been provided for as doubtful. Also no amount has been written off/ back.

2. The related parties are as identified by the Company and relied upon by the Auditors.

6. The previous year figures have been regrouped/ rearranged/ reclassified, wherever necessary to conform to the current years presentation.

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Mar 31, 2012

OVERVIEW :

Incorporated in the state of Maharashtra in 1979, the Company was originally named Sudarshan Aluminium Industries Limited. In April 1994, the name of the Company was changed to Sudal Industries Limited.

The Company is in the business of manufacturing of Aluminum Extrusions, Aluminum Alloys, Down Stream Products.

[a] Right attached to Equity Shares :

[i] The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote only.

[ii] The Company has not issued aggregate number and class of shares as fully paid up pursuant to contract[s] without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date.

[iii] In the event of liquidation, the equity shareholders are eligible to receive the remaining Assets of the Company after distribution of all preferential amount, in proportion to the shareholding. However, no such preferential amount exist currently.

2. Contingent Liabilities :

Tax liability for pending 'C' Forms Rs. 16.94 Lakhs; [Previous year Rs. 28.98 Lakhs].

3. Commitment :

Estimate amount of contracts remaining to be executed on capital account Rs. 2,75,000; Previous year Rs. 40,75,435 and not provided for [net of Advances Rs. 30,000; Previous year Rs. Nil]

4. Secured Loans :

[a] Term Loan of Rs. 230 Lakhs [Interest @ PLR plus 1% p.a.] and Term Loan of Rs. 660 Lakhs [Interest @ Base rate plus 3.50% p.a.] are secured by way of equitable mortgage of all immovable properties and hypothecation of all movable assets which is equally repayable in 36 months and 48 months installments respectively and is also personally guaranteed by two directors of the Company.

[b] Non fund based limit utilized Rs. 1,814 Lakhs [Previous year Rs. 990 Lakhs] and Cash Credit [Interest @ Base Rate plus 3.25% per annum] are secured by hypothecation of stocks and book debts and is also personally guaranteed by two directors of the Company.

[c] Vehicle Loan [Interest @ 8.75% flat] are repayable over a period of 3 years and secured by hypothecation of Vehicle purchased their against.

Unsecured Loans:

Interest rate range between 15% to 16% and are repayable within 2 to 3 years.

5. [a] In the opinion of the Board, assets other than fixed assets and non current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

[b] The accounts of trade receivable and payable and Loans and Advances are subject to formal confirmations/reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial due to the same.

6. Land, Building, Plant & Machinery and Electrical Installations were valued in the accounts on April 1, 1994. The same have been revalued on March 31, 2004 on the basis of reports of approved valuer/replacement cost basis using standards indices. The following revalued amount [net of withdrawals] remain substituted for the historical cost in the gross block of fixed assets.

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

8. The Company is primarily engaged in the business of Manufacturing of Aluminum Extrusions and down stream/value added products and all the operations are located in India. Thus in terms of accounting standard "Segment Reporting" [AS-17], it is the only segment for reporting purpose.

9. Disclosures as required by Accounting Standard-18, on "Related Party Disclosure" are given below :

[i] Associates with whom transactions have been entered during the year in the ordinary course of the business:

Sudarshan Chokhani and Company

Shriram Chokhani and Company

ChhaganlalSheokarandas and Company

[ii] Key Management Personnel:

Shri Sudarshan S. Chokhani

Shri Shyantanu S. Chokhani

[iii] Relatives of Key Managerial Personned:

Shri Deokinandan Ajitsaria [Brother in law of Shri Sudarshan S. Chokhani]

Note:

1. No amount pertaining to related parties has been provided for as doubtful. Also no amount has been written off/back.

2. The related parties are as identified by the Company and relied upon by the Auditors.

10. [a] The Financial statements have been prepared in accordance with revised schedule VI.

[b] In view of commencement of commercial production of press IV and press V on July 01, 2011 & December 22, 2011 respectively, current year figures are not comparable with those of previous year. The previous year's figures have been re-grouped and/or re-arranged wherever necessary to conform to the current year's presentation.

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Mar 31, 2010

1. Contngent liabilities not provided for in respect of : :

(Amount in Rupees)

Partculars As at As at

March 31, 2010 March 31, 2009

(i) Unexpired irrevocable leters of credit in respect of Raw Materials 79,95,682 1,77,99,061

Counter Guarantee given by the company against the guarantees issued

(ii) by the bank 50,000 1,00,000

2. The Department of Excise has raised the demand for Rs. 43,74,693 for the earlier years which is disputed by the Company. However, the finance minister in the budget presented for the year 2010-2011 has retrospectively amended the Central Excise Act and the Rules there under, confirming the correctness of the treatment given for clearance of non-excisable/ exempted Goods and the said demand will stand withdrawn as soon as the budget is passed.

3. Issue of Convertible Warrants and conversion into Shares : :

The company has, pursuant to the approval of the share holder of the Company in the Extra ordinary General Meeting held on October 12, 2009, issued Optionally Fully Convertible Warrants of Rs. 23.25 each (including premium of Rs. 13.25 per share) in accordance with provisions of Chapter XIII of SEBI (Disclosure and Investor Protection) Guidelines 2000 issued by Securities and Exchange Board of India.

4. Land, Buildings, Plant & Machinery and Electrical Installations were first revalued in the accounts on April 1, 1994. The same had again been revalued on March 31, 2004 on the basis of reports of approved valuer on market value/replacement cost basis using standard indices. The following revalued amounts (net of withdrawals) remain substituted for the historical cost in the gross block of fixed assets.

5. (a) In the opinion of the Board, the Current Assets and Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

(b) Account of certain Debtors, Creditors, Banks and Loans & Advances are subject to confrmations, reconciliations, and adjustments, if any, having consequential impact on the profit for the year, assets and liabilities, the amounts whereof are presently not ascertainable. The management, however, does not expect any material difference afecting the current years fnancial statements.

6. Deposits include Rs. 1,78,02,100 (Previous year Rs.28,07,100) being interest free deposits given towards the use of the office premises to Partnership Firms where certain Directors of the Company are partners.

7. The Company is primarily engaged in the business of Manufacturing of Aluminium Extrusions and down stream/ value added products. Since the inherent nature of activities as a whole is governed by the same set of risk and returns, these have been grouped as a single segment. No assets are located outside India. The said treatment is in accordance with the accounting standard on "Segment Reportng" (AS-17) as issued by The Institute of Chartered Accountants of India.

8. Related partes Disclosures : :

(a) list of Related partes : :

Partes with whom the Company has entered into transactions during the year in the normal course of the business ::

Associates / Group companies : :

Sudarshan Chokhani & Co.

Shriram Chokhani & Co.

Chhaganlal Sheokarandas & Co.

Key Management personnel : :

(i) Mr. Shriram C. Chokhani (Managing Director)

(ii) Mr. Sudarshan S. Chokhani (Joint Managing Director)

note: Related partes are as identfed by the Company and relied upon by the Auditors.

9. The Company has not received any intmation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been given.

10. (a) Dies (included in stores and spares inventories) of Rs. 7,21,26,290 (Previous year Rs.6,86,38,388) have been valued by a government approved valuer considering their residual useful life and replacement value and relied upon by the Auditors being a technical mater. (b) Stores and spares consumed during the year include value of Dies discarded Rs. 44,62,824 (Previous Year Rs.15,44,837) on account of breakage or otherwise and net of related credit of Rs. 9,61,086 (Previous Year Rs.64,34,697).

11. Previous years figures have been regrouped/rearranged/reclassified wherever necessary to conform to the current years Presentation.