Notes to Accounts of Vishal Bearings Ltd.

Mar 31, 2025

(xx) Provisions, Contingent Liabilities and Contingent Assets

Provisions represent liabilities 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, it is probable that an outflow of resources
will be required to settle the obligation and in respect of which a reliable
estimate can be made of the amount of obligation. Provisions are not
discounted to its present value and are determined based on best estimates
required to settle the obligation at the reporting date. These are reviewed at
each reporting date and adjusted to reflect the current best estimates.

Contingent liabilities are disclosed when there is a possible obligation arising from
past events, the existence of which will be confirmed only by the occurrence or
non-occurrence of one or more uncertain future events not wholly within the
control of the Company or a present obligation that arises from past events
where it is either not probable that an outflow of resources will be required to
settle or a reliable estimate of the amount cannot be made. Information on
contingent liabilities is disclosed in the Notes to the standalone financial
statements. Contingent assets are not recognized but disclosed in the
standalone financial statements. However, when the realisation of income is
virtually certain, then the related asset is no longer a contingent asset, but it is
recognised as an asset.

(xxi) Exceptional Items

When items of income and expense within standalone statements of profit and
loss from ordinary activities are of such size, nature or incidence that their
disclosure is relevant to explain the performance of the enterprise for the period,
the nature and amount of such material items are disclosed separately as
exceptional items.

(xxii) Earnings per Share

Basic Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss
(excluding other comprehensive income) for the year attributable to equity
shareholders by the weighted average number of equity shares outstanding
during the year. The weighted average number of equity shares outstanding
during the year is adjusted for events such as bonus issue, bonus element in a
right issue, shares split and reverse share splits (consolidation of shares) that have
changed the number of equity shares outstanding, without a corresponding
change in resources.

Diluted Earnings per shares

For the purpose of calculating diluted earnings per share, the net profit or loss
(excluding other comprehensive income) for the year attributable to equity
share holders and the weighted average number of shares outstanding during
the year are adjusted for the effects of all dilutive potential equity shares.

(xxiii) Operating Segments

The company is mainly engaged in the business of manufacturing and selling of
Bearing Rollers & other allied activities from which it may earn revenues and incur
expenses, whose operating results are regularly reviewed by the Company’s
Chief Operating Decision Maker (“CODM”) to make decisions for which discrete
financial information is available. Based on the management approach as
defined in Ind AS 108, the CODM evaluates the Company’s performance and
allocates resources based on an analysis of various performance indicators by
business segments and geographic segments.

There are no other primary reportable segments applicable to the company and
the company has only one geographical segment i.e. India.

(xxiv) Material accounting Estimates, Judgments and assumptions

The preparation of the Company’s financial statements in conformity with Ind AS
requires the management to make estimates and assumptions that affect the
reported amounts of revenues, expenses, assets & liabilities, the accompanying
disclosures, and the disclosure of contingent liabilities at the date of financial
statements and the reported amounts of income and expenses during the year.

The management believes that these estimates are prudent and reasonable
and are based upon the management’s best knowledge of current events and
actions. Actual results could differ from those estimates and difference between
actual results and estimates are recognised in the periods in which the results are
known materialized.

Estimates and judgements are reviewed on an ongoing basis. They are based on
historical experience and other factors, including expectations of future events
that may have a financial impact on the Company and that are believed to be
reasonable under the circumstance. Revisions to accounting estimates are
recognised in the period in which the estimates are revised and future periods
are affected.

This note provides an overview of the areas that involved a comparatively higher
degree of judgement or complexity, and of items which are more likely to be
materially adjusted due to estimates and assumptions turning out to be different
than those originally assessed.

i) Property, plant and equipment, investment properties and intangible assets:

Property, plant and equipment represents a significant proportion of the asset
base of the Company. The charge in respect of periodic depreciation is derived
after determining an estimate of an assets expected useful life and the
expected residual value at the end of its life. The useful lives and residual values
of the Company’s assets are determined by the management at the time the
asset is acquired and reviewed periodically, including at each financial year
end. The lives are based on historical experience with similar assets as well as
anticipation of future events, which may impact their life, such as changes in
technology.

ii) Income tax:

Significant judgments are involved in determining the provision for income taxes,
including the amount expected to be paid or recovered in connection with
uncertain tax positions.

iii) Contingencies:

Management has estimated the possible outflow of resources at the end of
each annual reporting financial year, if any, in respect of contingencies / claim /
litigations by / against the Company as it is not possible to predict the outcome
of pending matters with accuracy.

iv) Deferred Taxes:

Deferred tax is recorded on temporary differences between the tax bases of
assets and liabilities and their carrying amounts, at the rates that have been
enacted or substantively enacted at the reporting date. The ultimate realisation
of deferred tax assets is dependent upon the generation of future taxable profits
during the periods in which those temporary differences and tax loss carry
forwards become deductible. The Company considers the expected reversal of
deferred tax liabilities and projected future taxable income in making this
assessment. The amount of the deferred tax assets considered realisable,
however, could be reduced in the near term if estimates of future taxable
income during the carry forward period are reduced.

v) Impairment of financial assets:

At each balance sheet date, based on historical default rates observed over
expected life, existing market conditions as well as forward looking estimates, the
management assesses the expected credit losses on outstanding receivables.
Further, management also considers the factors that may influence the credit risk
of its customer base, including the default risk associated with industry and
country in which the customer operates.

vi) Impairment of Non-financial assets:

Where the carrying amount of an asset or CGU exceeds its recoverable amount
(fair value less costs of disposal or its value in use), the asset is considered
impaired and is written down to its recoverable amount. In assessing value in use,
the estimated future cash flows are discounted to their present value using a pre¬
tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. In determining fair value less cost of
disposal, recent market transactions are taken into account. If no such
transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value
indicators.

vii) Defined benefit obligation:

The cost of the defined benefit plans, compensated absences and the present
value of the defined benefit obligations are based on actuarial valuation using
the projected unit credit method. An actuarial valuation involves making various
assumptions that may differ from actual developments in the future. These
include the determination of the discount rate, future salary increases and
mortality rates. Due to the complexities involved in the valuation and its long¬
term nature, a defined benefit obligation is highly sensitive to changes in these
assumptions. All assumptions are reviewed at each reporting date.

viii) Leases:

Determining the lease term of contracts with renewal and termination options -
Company as lessee Ind AS 116 requires the lessee to determine the lease term as
the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any
periods covered by an option to terminate the lease, if it is reasonably certain
not to be exercised.

The Company has several lease contracts that include extension and
termination options. The Company applies judgement in evaluating whether it is
reasonably certain whether or not to exercise the option to renew or terminate
the lease. That is, it considers all relevant factors that create an economic
incentive for it to exercise either the renewal or termination. After the
commencement date, the Company reassesses the lease term if there is a
significant event or change in circumstances that is within its control and affects
its ability to exercise or not to exercise the option to renew or to terminate (e.g.,
construction of significant leasehold improvements or significant customisation to
the leased asset). When it is reasonably certain to exercise extension option and
not to exercise termination option, the Company includes such extended term
and ignore termination option in determination of lease term.

The Company cannot readily determine the interest rate implicit in the lease,
therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities.
The Company has taken indicative rates from its bankers and used them for Ind
AS 116 calculation purposes.

ix) Provisions:

Provision is recognised when the Company has a present obligation as a result of
past event and it is probable that an outflow of resources will be required to
settle the obligation, in respect of which a reliable estimate can be made.

Provisions (excluding retirement obligation and compensated expenses) are not
discounted to its present value and are determined based on best estimate
required to settle obligation at the balance sheet date. These are reviewed at
each balance sheet date adjusted to reflect the current best estimates.

x) Fair value measurements:

Management applies valuation techniques to determine fair value of financial
assets and liabilities (where active market quotes are not available). This involves
developing estimates and assumptions around volatility and dividend yield etc.
which may affect the value of financial assets and liabilities. Estimates and
judgements are continuously evaluated. These are based on historical
experience and other factors including expectation of future events that may
have a financial impact on the Company and that are believed to be
reasonable under the circumstances.

xi) Impairments of assets:

In assessing impairment, management estimates the recoverable amounts of
each asset (in case of non-financial assets) based on expected future cash flows
and uses an interest rate to discount them. Estimation uncertainty relates to
assumptions about future cash flows and the determination of a suitable
discount rate.

xii) Allowances for slow / Non-moving Inventory and obsolescence:

An allowance for Inventory is recognised for cases where the realisable value is
estimated to be lower than the inventory carrying value. The inventory
allowance is an estimate taking into account various factors, including prevailing
sales prices of inventory item and losses associated with usability/ obsolete /
slow-moving / redundant inventory items. The Company has, based on these
assessments, made adequate provision in the books.

xiii) Events after report date

Where events occurring after the balance sheet date provide evidence of
conditions that existed at the end of the reporting period, the impact of such
events is adjusted within the financial statements. Where the events are
indicative of conditions that arose after the reporting period, the amounts are
not adjusted, but are disclosed if those non-adjusting events are material.

For ANIL PAREKH & CO. FOR, VISHAL BEARINGS LTD.

Chartered Accountants
FRN: 128503W

CA Anil K. Parekh D. G. Changela D. H. Changela

Partner Managing Director Whole Time Director

MRN.126862 DIN: 00247302 DIN: 00247364

Place: Rajkot V. V. Changela K. V. Savaliya

Date: 26th May, 2025 Chief Financial Officer Company Secretary

UDIN: 25126862BMNYUM7348_Date: 26.08.2025_Place: Shapar, Rajkot

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Mar 31, 2024

(iii) Terms/rights attached to equity shares

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. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the 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._

Secured Loans from Banks

Secured by first and exclusive charge on all existing & Future receivables/ current assets / movable assets / movable fixed assets in the name of the company, Registered Equitable Mortgage of factory land & building, for WCTL under ECLGS- Second charge on above, and Personal guarantee of Directors and relative of Directors. The rate of Interest on a Term Loan ranges from 7.80% to 9.75% p.a. subject to change from time to time and repayable within 2 to 4 Years from the balance sheet date. There is also first Charge by way of Lien on Fixed Deposit receipt(s) to be made with SIDBI having face value of not less than Rs.41,60,000/- in the name of Vishal Bearing Limited. The interest accrued on FDRs shall not be payable periodically and the principal amount together with interest accrued thereon shall be payable on date of maturity of FDRs.

Unsecured Loans from Directors

Unsecured Loans from directors and relatives are long term in nature, taken to comply with bank stipulation in respect of secured borrowings and as per management explanation, generally not repayable within one year from the balance sheet date. Rate of Interest @ 6% P.a. (9% P.a)

Working Capital Facilities from Banks:

Secured by first and exclusive charge on all existing & Future receivables/ current assets / movable assets / movable fixed assets in the name of the company, Registered Equitable Mortgage of factory land & building, for WCTL under ECLGS- Second charge on above, and Personal guarantee of Directors and relative of Directors. Rate of Interest at 9.00% p.a. subject to change from time to time.

35 In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current assets, loans and advances will, in the ordinary course of business, not be less than the amounts at which they are stated in the Balance sheet.

36 In the opinion of the Board and to the best of its knowledge and belief, all other contractual

liabilities connected with business operations of the Company have been appropriately provided for._

37 GRATUITY BENEFITS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on departure at 15 days salary (Last drawn salary) for each completed year of service._

38 Previous year’s figure has been reworked, regrouped, rearranged and reclassified wherever

necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year._

39 Balances of Trade Payables, Unsecured Loans, Advances Received, Other Payables, Provisions, Trade Receivables, Long Term and Short-Term Loans & Advances, Other Current and Other NonCurrent Assets are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled

/ settled._

* Whatever information the company could identify as above were possible at the year-end only, and in view of the same & according to the company, it could not identify payments beyond due date during the year and to make interest provisions to that extent, as per the agreed terms with the suppliers. The company could identify the principal amount remaining unpaid as on 31st March 2024 based on the status of respective suppliers received during the year. However, as informed by the management, considering the materiality aspect and as per the agreed terms with respective suppliers, the company has not made provision of any interest due to suppliers for outstanding balance / payment made beyond respective due dates. (As certified by the Management of the company)

43 SEGMENT INFORMATION

In accordance with Ind AS 108- "Operating Segments", the Company has identified its business segment as "Manufacturing & selling of Bearing Rollers & Allied Activities". There are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable._

In terms of Amendment to Companies (Corporate Social Responsibility Policy) Amendment Rules,2021 (the CSR Rules 2021) effective from 22nd January 2021, if a Company fails to spend Prescribed CSR amount during the year and such unspent amount pertains to any outgoing Project, the Company shall transfer the unspent amount to a special bank account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account within a period of 30 days from the end of the relevant financial year. As per Rule There has some unspent amount transfer in Special account with Kotak Mahindra Bank.

B Audit Trail

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of accounts, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of accounts along with the date when such changes were made and ensuring that the audit trail cannot be disabled.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility and the same has operated from 01st May,2023 all relevant transactions recorded in the software, except that audit trail feature is not enabled for direct changes to data for users with certain privileged access rights and also for certain changes made using privileged/ administrative access right. Audit trail (edit log) is enabled at the application level._

C As Informed to us by Management, The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property_

D As Informed to us by Management, The Company has not been declared as a wilful defaulter by any lender who has powers to declare a company as a wilful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved_

E As Informed to us by Management, The Company does not have any transactions with struck-off companies._

F As Informed to us by Management, The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies (ROC) beyond the statutory period_

G The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017._

H The company has not advanced or loaned or invested 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 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 has not received any funds from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall;

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

J As informed to us by the Management, The Company does not have any transactions which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)._

K As informed to us by the management, The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year._

47 Wherever no vouchers and documentary evidence were made available for our verification, we

have relied on the authentication given by management of the company._

48 As certified by the management of the company, the company has generally made all the

applicable provisions with respect to the business operations of the company._

49 Figures have been rounded off to nearest lac rupee and have been regrouped, rearranged,

_and reclassified wherever necessary._

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Mar 31, 2023

(iii) Terms/rights attached to equity shares

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. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive the 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.

Secured by first and exclusive charge on all existing & Future receivables/ current assets / movable assets / movable fixed assets in the name of the company, Registered Equitable Mortgage of factory land & building, for WCTL under ECLGS- Second charge on above, and Personal guarantee of Directors and relative of Directors. Rate of Interest of Term Loan ranges from 8.25% to 9.75% p.a. subject to change from time to time and repayable within 2 to 4 Years from the balance sheet date.

Unsecured Loans from Directors

Unsecured Loans from directors and relatives are long term in nature, taken to comply with bank stipulation in respect of secured borrowings and as per management explanation, generally not repayable within one year from the balance sheet date. Rate of Interest @ 9% P.a. (9% P.A)

Working Capital Facilities from Banks:

Secured by first and exclusive charge on all existing & Future receivables/current assets/movable assets/movable fixed assets in the name of the company, Registered Equitable Mortgage of factory land & building, for WCTL under ECLGS- Second charge on above, and Personal guarantee of Directors and relative of Directors. Rate of Interest at 8.25% p.a. subject to change from time to time.

37 In the opinion of the Board and to the best of its knowledge and belief, the value on realization of current assets, loans and advances will, in the ordinary course of business, not be less than the amounts at which they are stated in the Balance sheet.

38 In the opinion of the Board and to the best of its knowledge and belief, all other contractual

liabilities connected with business operations of the Company have been appropriately provided for._

39 Gratuity Benefits

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on departure at 15 days salary (Last drawn salary) for each completed year of service.

40 Previous year’s figures have been reworked, regrouped, rearranged, and reclassified wherever

necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year._

41 Bala nces of Trade Payables, Unsecured Loans, Advances Received, Other Payables, Provisions, Trade Receivables, Long Term and Short-Term Loans & Advances, Other Current and Other NonCurrent Assets are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them/amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled/settled.

There are no dues payable (including interest) by the company as at the end of the year to Micro and Small Enterprises as per Micro, Small & Medium Enterprises Development Act, 2006 and also no interest due and payable for the year on account of delay in making payment during the year. (As certified by the management of the Company)

Segment Information

In accordance with Ind AS 108- "Operating Segments", the Company has identified its business segment as "Manufacturing & selling of Bearing Rollers & Allied Activities". There are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosures are also not applicable._

In terms of Amendment to Companies (Corporate Social Responsibility Policy) Amendment Rules,2021 (the CSR Rules 2021) effective from 22nd January,2021, if a Company fails to spend Prescribed CSR amount during the year and such unspent amount pertains to any outgoing Project, the Company shall transfer the unspent amount to a special bank account to be opened by the company in that behalf for that financial year in any scheduled bank to be called the Unspent Corporate Social Responsibility Account within a period of 30 days from the end of the relevant financial year. There is no Unspent amount at the end of the year.

B As Informed to us by Management, The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property_

C As Informed to us by Management, The Company has not been declared as a willful defaulter by any lender who has powers to declare a company as a willful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved_

D As Informed to us by Management, The Company does not have any transactions with struck-off companies._

E As Informed to us by Management, The Company does not have any charges or satisfaction which is yet to be registered with the Registrar of Companies beyond the statutory period_

F The Company has compiled with the number of layers prescribed under clause (87) of section 2 of the Companies Act 2013 read with Companies (Restrictions on number of Layers) Rules, 2017._

G The company has not advanced or loaned or invested 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 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_

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

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 to or on behalf of the Ultimate Beneficiaries._

I As informed to us by the Management, The Company does not have any transactions which is not recorded in the books of accounts but has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961)._

J As informed to us by the management, The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year._

49 Wherever no vouchers and documentary evidence were made available for our verification, we

have relied on the authentication given by management of the company._

50 As certified by the management of the company, the company has generally made all the

applicable provisions with respect to the business operations of the company._

51 Figures have been rounded off to nearest lac rupee and have been regrouped, rearranged, and

_reclassified wherever necessary._

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Mar 31, 2018

1. CORPORATE INFORMATION

Vishal Bearings Ltd. (‘the company”) having its manufacturing facilities at Shapar (Veraval), Rajkot, is presently engaged in the business of manufacturing of Bearing Rollers, earning Jobwork Income & Wind Power Generation.

(i) Terms/rights attached to equity shares

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. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder 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.

Notes:

Secured Loans from Banks & Financial Institutions:

Machinery Term loan from Kotak Mahindra Bank Ltd., current o/s as on 31st March, 2018

(a) Rs. 94,51,740/- is secured by registered equitable mortgage of factory premises, repayable in 57 monthly instalments and rate of interest being 9.45% p. a.

(b) Car loan (Vento) from Kotak Mahindra Prime Ltd., current o/s as on 31st March, 2018 Rs. 6,67,537/- is secured by hypothecation of Motor Car and repayable in monthly EMI of Rs. 38440 including interest, rate of interest 9.50% p. a.

(C) Car loan (Mahindra TUV) from Kotak Mahindra Prime Ltd., current o/s as on 31st March, 2018 Rs. 1,25,447/- is secured by hypothecation of Motor Car and repayable in monthly EMI of Rs. 22460 including interest, rate of interest 10.60% p. a.

(d) Car loan (BMW) from BMW Financial Services Ltd., current o/s as on 31st March, 2018 Rs. 15,62,359/- is secured by hypothecation of Motor Car and repayable in monthly EMI of Rs. 1,27,410 including interest, rate of interest 9.15% p. a.

(e) Car loan (Maruti Ciaz) from Kotak Mahindra Prime Ltd., current o/s as on 31st March, 2018 Rs. 9,46,028/- is secured by hypothecation of Motor Car and repayable in 36 monthly EMI of Rs. 31570 including interest, rate of interest 8.79% p. a.

(f) Car loan (Innova Crysta) from Kotak Mahindra Prime Ltd., current o/s as on 31st March, 2018 Rs. 15,60,253/- is secured by hypothecation of Motor Car and repayable in 36 monthly EMI of Rs. 50425 including interest, rate of interest 8.36% p. a.

(g) Car loan (TATA Hexa) from Kotak Mahindra Prime Ltd., current o/s as on 31st March, 2018 Rs. 14,24,462/- is secured by hypothecation of Motor Car and repayable in 36 monthly EMI of Rs. 47350 including interest, rate of interest 8.48% p. a.

Unsecured loans from related parties:

(h) Unsecured Loans from directors and relatives are long term in nature and as per management explanation, generally not repayable within one year from the balance sheet date. Rate of Interest @ 12% p.a. (9% p.a.)

Note:

Working Capital Facilities from Banks:

Cash Credit from Banks o/s. as on 31.03.2018 Rs. 4,53,05,280 secured by way of first charge by hypothecation of stocks, book debts and all current assets of the Company (Present & Future) including Plant & Machinery, secured by registered equitable mortgage of factory premises, Rate of interest at 9.45% p.a. subject to change from time to time.

2 Realisation:

In the opinion of the Board and to the best of its knowledge and belief, the value on realisation of current assets, loans and advances will, in the ordinary course of business, not be less than the amounts at which they are stated in the Balance sheet.

3 Contractual Liabilities

As certified by the management of the company, the company has generally made all the applicable provisions with respect to the business operations of the company.

4 Gratuity Benefits

The Company has defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on departure at 15 days salary (Last drawn salary) for each completed year of service.

The following table summarizes the component of net benefit expenses recognized in Statement of Profit & Loss and Gratuity Obligation as at year end as per Acturial Valuation Report.

5 Previous year’s figure has been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

6 Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long Term and Short-Term Loans & Advances, Other Current Assets and Provisions and Non-Current Investments are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

7 In the absence of information regarding outstanding dues of MICRO or Small-Scale Industrial Enterprise(s) as per The Micro, Small & Medium Enterprise Development Act, the Company has not disclosed the same as required by Schedule III to the Companies Act,

8 Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

9 Figures have been rounded off to nearest rupee and have been regrouped, rearranged and reclassified wherever necessary.