Notes to Accounts of Vybra Automet Ltd.

Mar 31, 2014

1 SECURED LOANS

1. Term Loan - I from Indian Overseas Bank (IO B ) Rs.442.23 Lacs (Pr. Yr. Rs.471.24 Lacs) Security :

Secured by Exclusive First Charge on Plant & Machinery acquired out of the Term Loan sanctioned by M/s. Indian Overseas Bank. Further the loan is secured by personal guarantee of Mr.Vilas VValunj, CMD.

Terms of Re-Payment :

The Term Loan has been re-structured and review at outstanding as on 04-10-2013 is Rs. 465.00 Lacs, which shall be re payable in 20 quarterly Installents commencing from 31-12-2014 in staggered manner.

Rate of Interest :

The effective rate of interest @ 14.75% p.a.,and interest shall be serviced as and when due.

2. Term Loan - II from Indian Overseas Bank ( I O B ) Rs.72.47 Lacs (Pr.Yr. Rs.97.26 Lacs)

Security :

Secured by Exclusive First Charge on Dies and Tools acquired out of the Term Loan sanctioned by M/s. Indian Overseas Bank. Further the loan is secured by personal guarantee of Mr.Vilas VValunj, CMD.

Terms of Re-Payment :

The Term Loan has been re-structured and review at outstanding as on 04-10-2013 is Rs. 77.00 lacs, which shall be re payable in 2 quarterly Installents commencing from 31-12-2014 in staggered manner.

Rate of Interest :

The effective rate of interest @ 14.75% p.a.,and interest shall be serviced as and when due.

3. Working Capital Term Loan (WCTL) Rs.1240.00 lacs

Security :

Secured by Exclusive First Charge on entire Current Assets. Further,the loan is secured by personal guarantee of Mr.Vilas VValunj, C M D.

Terms of Re-Payment :

The WCTL (Fresh) of Rs. 1240.00 lacs to be repaid in 60 monthly installments with holiday Period of 12 months, commencing from October, 2014.

Rate of Interest :

The effective rate of interest @ 14.75% p.a.,and interest shall be serviced as and when due.

4. Funded Interest On Term Loan (FITL) Rs.26.30 Lacs

Security :

Secured by Exclusive First Charge on entire Current Assets. Further,the loan is secured by personal guarantee of Mr.Vilas VValunj, C M D.

Terms of Re-Payment :

The WCTL (Fresh) of Rs. 73.10 lacs to be repaid in 60 monthly installments with holiday Period of 12 months, commencing from October, 2014.

Rate of Interest :

The effective rate of interest @ 14.75% p.a.,and interest shall be serviced as and when due.

5. Cash Credit From I O B Rs.527.94 lacs

Security :

Secured by Exclusive First Charge on entire Current Assets. Further,the loan is secured by personal guarantee of Mr.Vilas VValunj, C M D.

Rate of Interest :

The effective rate of interest @ 14.75% p.a.,and interest shall be serviced as and when due.

Note: Due to default in payment of interest and principal, the bank has re-structured the account with fresh

Terms and conditions and the agreement entered in line with the sanction dated 31-12-2013.

6. Term Loan from E A R C Rs.2750.00 Lacs (Pr.Yr. Rs.2750.00 Lacs)

Security :

Secured by Exclusive First Charge on Company''s Fixed Assets other than financed by I O B. Further the loan is secured by personal guarantee of Mr.Vilas VValunj,C M D.

Terms of Re-Payment :

The Loan is re payable in 33 staggered Installents ending by December, 2015

Rate of Interest :

The effective rate of interest @ 27.50% p.a., and interest shall be serviced as and when due.

Note :The account become irregular and Lender has initiated action for SARFAESIA Notice. Hence, no interest is provided. The company is under negotiation with the Lender.

NOTES 2a : CONTINGENT LIABILITIES & COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

31- Mar-2014 31- Mar-2013 Particulars Amount (Rs.) Amount (Rs.) (i) Contingent Liabilities

(a) Claims against the company by sales tax authorities not acknowledged 2,575,000 2,575,000 as debt.

Sub Total 2,575,000 2,575,000

(ii) Commitments

(a) Export Obligation 235,102,800 235,102,800

Sub Total 235,102,800 235,102,800

TOTAL 237,677,800 237,677,800

3. OTHER EXPLANATORY INFO:

1. CONTINGENT LIABILITIES:

Export obligation on import of Capital Equipment.Rs.2351.03 lacs.(PreviousYear Rs.2351.03 lacs).

2. UNSECURED LOANS:

a) Deferred Sales Tax Liability:

The total deferred sales tax liability is Rs.212.70 lacs, The amount of Rs.48.80 lacs is repayable in the year 2012, Rs.96.63 lacs, Rs.28.62 lacs, Rs.42..65 lacs are repayable from the year 2013 onwards respectively.

b) Inter Corporate Deposits ( I C D) : Rs. 14.35 lacs The ICDs from M/s. Amrit Safe Vaults Pvt. Ltd.

3. CURRENT LIABILITIES :

PROVISION FOR EMPLOYEE BENEFITS

a) The company has accumulated liability on account of gratuity of Rs.47.01 lacs.

b) The company is in the process of negotiating with LIC to take comprehensive policy to cover the estimated liability on account of gratuity.

4. Deferred Tax Liability

Keeping in view of the accumulated losses, the company has not provided any deferred tax liability as per AccountingStandard No.22.

5. INVENTORY:

a) Raw material has been valued at cost including transportation and excluding storage costs.

b) Finished goods valued at cost or market value whichever is lower.

c) Work In Progress is valued on cost price.

d) Valuation of dies is arrived at after taking cost of the inputs including cost of conversion. The life of die is determined on the number of impressions /strikes it can withstand as determined by the technical personnel. The die valuation is arrived based on the balance life of the die.

6. DISCLOSURES:

A) SALES TAX:

No provision has been made for the claim of Rs.25.75lacfortheassessment years 2005-06and2006- 2007 by the Sales Tax department and the company has filed a writ petition on payment of Rs.10 lacs as deposit under protestat Andhra Pradesh High Court and confiden t of a favorable decision.

B) SEGMENTREPORTING:

The company is exclusively in the business of manufacturing of auto component forgings. In this context, requirement of the accounting standard No.17 of the Institute of Chartered Accountants of India is not applicable.

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Mar 31, 2013

1. CONTINGENT LIABILITIES:

Export obligation on import of Capital Equipment.Rs.2351.03 lacs. (Previous Year Rs.2351.03 lacs).

2. CONVERSION OF WARRANTS.

Out of 24,75,000 warrants issued vide Postal Ballot held on 23rd March 2011 , during the year the Company has converted 14,64,000 warrants in to equity Share Capital @Rs.10/-each at a premium ofRs.15/-each in the Board Meeting heldon23rdMay,2012 on receipt of full amount.

3. UNSECURED LOANS:

a) Deferred Sales Tax Liability:

The total deferred sales tax liability is Rs.212.70 lacs. The amount of Rs.48.80 lacs is repayable in the year 2012-13.

b) Inter Corporate Deposits (IC D) : Rs.40.66 lacs The ICDs from M/s. Amrit Safe Vaults Pvt. Ltd.

c) Un-Secured Loans : Rs.664.23 lacs

The amounts were brought in by Mr. Vilas VValunj, CM D, during the year Rs. 210.25 Lacs (Previous Year: Rs.453.98 lacs).

4. CURRENT LIABILITIES:

PROVISION FOR EMPLOYEE BENEFITS

a) Thecompanyhasestimatedtheliabilityonaccountofgratuity ofRs.5.21 lacs

b) The company is in the process of negotiating with LIC to take comprehensive policy to cover the above liability.

5. Deferred Tax Liability :Rs.125.89 Lacs

The company has recognized the deferred tax liability as per Accounting Standard No.22 on account of accelerated depreciation and deferred tax asset expenditure of Rs.125.89 lacs incurred,but deferred forfuture years.

6. Interest/Principle waiver: Rs. 1128.22 lacs

The settled amounts taken over by E A R C to the extent of Rs.2750.00 lacs on giving the waiver to the company of Rs.1088.20 lacs,asagainstthe outstanding of erstwhile bankers.

The settled amount with M/s. HSBC is Rs.58.76 lacs as against the outstanding of Rs.98.78 lacs on availing the waiver of Rs.40.02 lacs.

7. INVENTORY:

a) Raw material has been valued at cost including transportation and excluding storage costs.

b) Finishedgoodsvaluedatcostormarketvaluewhicheveris lower.

c) Work In Progress is valued on cost price.

d) Valuation of dies is arrived at after taking cost of the inputs including cost ofconversion. Thelife of die is determined on the number of impressions /strikes it can withstand as determined by the technical personnel. The die valuation is arrived based on the balance life of the die.

8. DISCLOSURES:

A) SALESTAX:

No provision has been made for the claim of Rs. 25.75 lac for the assessment years 2005-06 and 2006- 2007 by the Sales Tax department and the company has filed a writ petition on payment of Rs. 10 lacs as deposit under protest at Andhra Pradesh High Court and confident of a favourable decision.

B) SEGMENT REPORTING:

The company is exclusively in the business of manufacturing of auto component forgings. In this context, requirement of the accounting standard No.17 of the Institute of Chartered Accountants of India is notapplicable.

9. GENERAL:

1. Confirmations from creditors and loans are awaited.

2. Figures are rounded off to nearest rupee.

3. Previous year''s figures have been re-grouped/re arranged wherever considered necessary.

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Mar 31, 2012

1. CONTINGENT LIABILITIES:

Export obligation on import of Capital Equipment. Rs. 2351.03 lacs. (Previous Year Rs. 2351.03 lacs).

2. CONVERSION OF WARRANTS.

Out of 24,75,000 warrants issued vide Postal Ballot held on 23rd March 2011, the company has converted 5,40,000 warrants in to equity Share Capital @ Rs. 10/- each at a premium of Rs. 15/- each in the Board Meeting held on 10th February, 2012 on receipt of full amount.

3. SECURED LOANS:

a) Edelweiss Asset Reconstruction Company (EARC):Rs. 3733.20 lcas

i) Pending final sanction of Reconstruction of debt, the principal amounts due to Axis bank Rs. 3089.96 lacs, ICICI bank Rs. 771.00 lacs, assigned to M/s. Edelweiss Asset Reconstruction Company (EARC) against for a sum of Rs. 2105.00 lacs by M/s.Axis Bank limited and Rs. 540 lacs by M/s. ICICI Bank Ltd. The company has also kept with Edelweiss (EARC) of Rs. 345.00 lacs as margin money as a part of restructuring.

ii) Edelweiss Asset Reconstruction Company (EARC) is secured by Exclusive First charge on the company's Fixed Assets Other than those financed by M/s. Indian Overseas Bank (IOB) and Second Charge on the Fixed Assets financed by IOB against their term loan.

b) Indian Overseas Bank(IOB) Cash Credit Rs. 1250.00 lacs

The above said Loan from I.O.B., is secured by First charge on the entire Current Assets.

c) Indian Overseas Bank(IOB) Term Loan Rs. 396.49 lacs

The above said Loan from I O B is secured by First charge on the Fixed Assets acquired by the company out of the said Term Loan.

d) Indian Overseas Bank (IOB) Short Term Loan Rs. 158.26 lacs

The above said Loan from I O B is secured by exclusive first charge on development dies and tools acquired by the company out of the said Short Term Loan.

e) H S B C Bank Ltd. Rs. 98.78 lacs

The above said Loan is secured by Second charge on Current Assets on pari passu basis.

4. UNSECURED LOANS:

a) Deferred Sales Tax Liability:

The total deferred sales tax liability is Rs. 212.70 lacs. The amount of Rs. 48.80 lacs is repayable in the year 2012-13.

B) Inter Corporate Deposits (ICD):

The ICDs from M/s. Amrit safe, M/s. Dadaji Dhakjee, M/s. Deepsang corpn., and M/s. Solo India Pvt. Ltd., are due before 31st March, 2012. The Company is in the process of making one time settlement and the negotiations are under progress and the company is confident of clearing the dues before the end of financial year ending 2012-13.

5) CURRENT LIABILITIES :

PROVISION FOR EMPLOYEE BENEFITS

a) The company has estimated the liability on account of gratuity of Rs. 5.21 lacs and Rs. 2.50 lacs on account of leave encashment.

b) The company is in the process of negotiating with LIC to take comprehensive policy to cover the above liability.

6) INVENTORY :

a) Raw material has been valued at cost including transportation and excluding storage costs.

b) Finished goods valued at cost or market value which ever is lower.

c) Work In Progress is valued on cost price.

d) Valuation of dies is arrived at after taking cost of the inputs including cost of conversion. The life of die is determined on the number of impression/strikes it can withstand as determined by the technical personnel. The die valuation is arrived based on the balance life of the die.

7. DISCLOSURES :

A) SALES TAX:

No provision has been made for the claim of Rs. 25.75 lac for the assessment years 2005-06 and 2006-2007 by the Sales Tax department and the company has filed a petition on payment of Rs.10 lacs as deposit under protest at Andhra Pradesh High Court and confident of a favourable decision.

B) SEGMENT REPORTING:

The company is exclusively in the business of manufacturing of auto component forgings. In this context, requirement of the accounting standard No.17 of the Institute of Chartered Accountants of India is not applicable.

C) FOREIGN EXCHANGE TRANSACTIONS.

The following are the foreign exchange out flow taken place during the year.

Current Year Previous Year

Capital Equipment : Nil Nil

Travel Expenses : Nil Nil

8. GENERAL :

1. Confirmations from creditors and loans are awaited.

2. Figures are rounded off to nearest rupee.

3. Previous year' s figures have been re-grouped/rearranged wherever considered necessary.

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Mar 31, 2010

1. CONTINGENT LIABILITIES:

a) Estimated amounts of contracts remaining to be executed on capital accounts and not provided for net of advances :Nil (Previous Year Rs.Nil)

b) Export obligation on import of Capital Equipment.Rs.2351.03 lacs. (Previous Year Rs.2351.03 lacs).

c) Bills Discounted :Rs.Nil (Previous Year Rs.Nil)

d) Claims pending against the company due to lease of Kakinada Plant, which is not acknowledged as debt.

2. SECURED LOANS:

a) As a part of restructuring of Axis bank loansTheTerm Loan -1 of Rs.558.81 Lacs .Term Loan - II of Rs.362.50 Lacs, Cash Credit of Rs. 1017.50Lacs,Letter of Credit of Rs.437.30Lacs,WCTL-l of Rs.365.00Lacs,WCTL-llofRs.236.00Lacs,FITL -1 of Rs.22.76 Lacs.FITL - II of Rs. 13.81 Lacs have been converted into a single loan component payable over 20 Equal Quarterly Installments commencing from 30th June, 2011 .The said loan from The Axis bank Limited are secured by Mortgage/hypothecation of fixed assets.first pari passu charge on Current Assets.

b) The Cash credit from ICICI Bank Limited is secured by hypothecation of current assets which inter-alia includes stock of raw-material, work in process finished goods and consumable goods including book debts. Ranking pari pasu with Axis Bank Ltd.

c) Over due Letter of Credits (LCs) of ICICI Bank Limited have been funded due to economic slow down and is secured by hypothecation of current assets which inter-alia includes stock of raw-material, work in process finished goods and consumable goods including book debts. Ranking pari pasu with Axis Bank Ltd., and second charge on fixed assets.

d) The company has not provided interest on working capital and term loan before restructuring in view of the non provision of interest by banks and the company is negotiating with banks for waiver of interest.

3. UNSECURED LOANS:

a) DEFERRED SALESTAX LIABILITY:

The total deferred sales tax liability is Rs.212.70 lacs. The amount of Rs.48.80 lacs is repayable in the year 2012, Rs.96.63 lacs,Rs.28.62 lacs,Rs.42.65 lacs are repayable from 2013 onwards respectively.

b) DEFERREDTAXLIABILITY:

4. CURRENT LIABILITIES:

PROVISION FOR GRATUITY :

The company has made a provision of Rs.5.22 lacs towards current gratuity liability, as per Group Gratuity Insurance Scheme of Life Insurance Corporation of India.

5. INVENTORY:

a) Raw material has been valued at cost including transportation and excluding storage costs.

b) Finished goods valued at cost or market value which everis lower.

c) Work In Progress is valued on cost price.

d) Valuation of dies is arrived at after taking cost of the inputs including cost of conversion. The life of die is determined on the number of impressions/strikes it can withstand as determined by the technical personnel. The die valuation is arrived based on the balance life of the die.

b) SALES TAX:

No provision has been made for the claim of Rs. 25.75 lac for the assessment years 2005-06 and 2006- 2007 by the Sales Tax department and the company has filed a writ petition on payment Rs. 10 lacs as deposit under protest at Andhra Pradesh High Court and confident of a favourable decision.

C) SEGMENT REPORTING:

The company is exclusively in the business of manufacturing of auto component forgings. In this context, requirement of the accounting standard No.17 of the Institute of Chartered Accountants of India is not applicable.

6) GENERAL

1. Confirmations from creditors and loans are awaited.

2. Figures are rounded off to nearest rupee.

3. Previous years figures have been re-grouped wherever considered necessary.