Shree Narmada Aluminium Industries Ltd. के अकाउंट के लिये नोट

Mar 31, 2024

16. Contingent Liabilities not provided for:

a) In the settlement with the secured creditors a larger share is claimed by a party (as mentioned in Note No.17 below) by filing an appeal
in Honourable High Court of Gujarat. The Amount for the same is not ascertainable.

b) Interest on disputed liability to creditors, the amount is not ascertainable as there is a counter claim by the Company and the matter
is pending with the Debt recovery Tribunal-Ill, Mumbai (DRT-III). The Management is of the opinion that no provision is required for
interest, in terms of the Order of the Hon. High Court of Gujarat dated 16.05.2008 mentioned in Note No.17 below.

17. In terms of the Scheme of Compromise or Arrangement under Sec.391 of the Companies Act 1956 with its Secured Creditors, Unsecured

Creditors and Equity Shareholders which had been approved by Hon. High Court of Gujarat in their Order dated 16.05.2008 during the

financial year 2008-09:

a) The Company has paid Rs.20,000,000/- to the Financial Institutions and Bank as full and final Settlement of their claims which includes
Rs.5,141,000/- deposited with the Hon. High Court of Gujarat in respect of one of them arising out of securitisation of assets. The said
institution has already withdrawn the amount deposited with Hon. High Court of Gujarat fully.

b) The Company has reduced the face value of the Equity share of Rs.10/- to Rs.l/- and has subsequently issued 1 (One) Equity Share (new)
of Rs.10/- each as fully paid up against 10 (Ten) shares of Rs.l/-each.

c) The Company has issued New Equity Shares of Rs.10/- at a premium of Rs.740/- per Equity share to few unsecured creditors in full and
final settlement of their claims.

d) The Company has paid 25% of dues of other unsecured creditors in full and final settlement of their claims and balance 75% of their
dues is accounted under Business Restructuring Account.

Meanwhile, the party referred to in (a) above in respect of Rs.5,141,000/-filed an appeal against the above Order before a Division Bench

of the Hon. High Court of Gujarat claiming additional amount, for the same matter is still pending.

18. GoineConeern:

(a) The Company has incurred losses in the past which has resulted into erosion of more than 50% of their net worth. Consequently the
Company was registered as a sick company under the Sick Industrial Companies Act, 1985.The accounts of the Company have been
prepared on going concern basis in spite of erosion of net worth and order of the Board for Industrial and Financial Reconstruction
(BIFR) in its order dated 1.9.2000 it is stated that prima fade the Company was not likely to make up its net worth within a reasonable
time while meeting all its financial obligations and was not likely to become viable in future and hence it was just, equitable and in
public interest that it should be wound up. Company had filed an application to the Honourable Gujarat High Court for a Scheme of
Compromise or Arrangement u/s391 of Companies Act 1956 with its Secured Creditors, Unsecured Creditors and Equity Shareholders,
The Company has received an order from High Courtof Gujarat dated 16.05.2008 and the same is under the process of implementation.
Also, in Financial Year 2009-10 the company has leased out its Plant & Machinery and land & building. The lease duration forthe same
is 99 years as per the agreement.

(b) Meanwhile a secured creditor filed an application before Debt recovery Tribunal-Ill, Mumbai (DRT-III). On 05.01.2015 DRT-III, Mumbai
passed an ex-party Order for secured creditor with Physical possession of Secured property Le., factory at Bharuch including that from
third party. The secured creditor who was acting in consonance with the understanding for over the period of eight months, suddenly
initiated steps for taking Possession without awaiting for further order on 06.08.2015,DRT-III Mumbai appointed Court Receiver for
the same. The said property is still in the possession of the court receiver. There are various original documents including title deeds of
immovable property which are lying in the said premises. The management does not expect any risk for non-availability of documents.
The matter is still pending before DRT-III, Mumbai. The Company is continuously making reasonable efforts to take relief from said
order.

(c) The management based on various legal opinions believe that going concern is susta inable. According to the Management, the com pa ny
is Going concern and the accounts have been prepared on Going Concern basis. The Company''s advocate has stated that the money
deposited with Hon. High court as referred in note 17 above has been withdrawn by the said institution without prejudice its right and
contention in the said Appeal referred in notel6 above. The Companies'' assets of land and building have also appreciated. It is only
that the court is not able to take up the matter on earlier basis. Based on the same Company has opined that there will not be any
adverse impacts on the proceedings before Hon. High Court and so as to affect the functioning of theCompany.

19, Taxation;

(a) Income Tax Assessments have been completed up to the Assessment Year 2014-15. Provision for Income Tax has not been made
considering the negative profits and carries forward losses. Also, as the Company continues to be a sick in terms of Sick Industrial
Companies Act 19S5 and Net Worth still remains to be negative, the MAT provision as per Income Tax Act 1961 has not been made.

There are substantial unabsorbed depreciation and carried forward business losses under the Income Tax Act 1961. As a measure of
prudence and in the absence of virtual certainty to earn taxable profits in future, deferred tax assets have been recognised only to the
extent of reversal of deferred tax liability.

20. Segment Information:

The Company is engaged mainly in the business of trading in Aluminum Extrusions and other activities which are directly related thereto.
As such there are no separate reportable segments as envisaged under Ind AS 108.

22, Financial instruments and risk management
1, Financial risk management objectives and policies

The Company''s principal financial liabilities comprise of trade and other payables and other financial liabilities. The main purpose of these
financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include cash and cash equivalents and
other financial assets.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of
these risks. Company''s financial risk activities are governed by appropriate policies and procedures laid out by the senior management
and financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. It is the Company''s
policy that no trading in derivatives for speculative purposes may be undertaken. The Soard of Directors reviews and agrees policies for
managing each of these risks, which are summarized below,

I. Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices.
For the Company, the market risk is the possibility of changes in commodity prices which may affect the value of the Company''s financial
assets, liabilities or expected future cash flows,

a. Commodity Risk

The principal stock-in-trade for the Company are aluminum products which are purchased by the Company from the approved list of
suppliers.

In order to mitigate the risk associated with stock prices, the Company manages its procurement through constant pricing negotiation with
vendors. It renegotiates the prices with its customers in case there is more than normal deviation in the prices of its major products.

IL Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk arising from cash and cash equivalents and deposits with banks. Hence, the Company has no
credit risk.

The Company has no trade receivables and no sales during the year; hence the Company has not formed any policy for expected credit loss.
The policy will be formed once sales resume.

Liquidity

Risk Assessment

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities. The Company has liabilities which are
expected to mature within 12 months Rs.7,76,44,124/- as on March 2024 (as on March 2023 is Rs. 7,48,22,553/-), The Company has assets
which are expected to be realized within 12 months Rs.1,02,451/- as on March 2024 (as on March 2023 is Rs. 40,769/-). Hence Company had
a working capital of Rs. (77,609,324/-) as on March 2024 (as on March 2023 is Rs. (74,781,784/-).

Risk Management

Company''s entire net worth erosion, hence Company can borrow only from directors and other related whenever working capital is required.
Management monitors rolling forecasts of Company''s liquidity position and cash and cash equivalent on the basis of expected cashflows.

23. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equity reserves
attributable to the equity holders of the company. The primary objective of the Company''s capital management is to maximize the
shareholder value and maintain an optimal capital structure to reduce the cost of capital.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions. Company entire net worth
erosion, hence Compa ny can borrow only from directors and other related whenever working capital is required. Com pany in Process to find
out a solution which maximum the shareholder wealth and reduce debt.

24. Employee benefits

As per Ind AS "Employee Benefits" (Ind AS -19), the disclosures of Employee Benefits as defined in the Standard are given below:

1. Defined contribution plans

a. Employer''s contribution to Provident Fund

b. Employer''s contribution to Employee''s state insurance

d. Reconciliation of Statement of Cash Flow

There is no adjustments to the statement of Cash Flows as reported under the previous GAAP.

26. Significant accounting judgments, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgments, estimates and assumptions as described
below that affect the reported amounts and the accompanying disclosures. Uncertainty about these assumptions and estimates could
result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a. Assumptions

The cost of the defined benefit plans and the present value of the defined benefitobligations are determined using actuarial valuations. An
actuarial valuation involves making various assumptions that may differ from actual developments in the future. For further details refer to
note 26.

b. Estimates

The estimates used by the company to present the amount in accordance with Ind AS reflect conditions as at the transition date and as of
March 31, 2017.

27. Previous year''s figures have been regrouped and restated wherever necessary to make their classification comparable with that of the
current year.

As per our report of even date For and on behalf of the Board
For SVH & Associates

Chartered Accountants Sd/-

FRN . (138024W) Kantilai B. Patel

(Chairman and Managing Director)

DIN:01441306

Sd/- Sd/-

Hiren Vora Milan R. Patel

Partner (Director and CFO) DIN:02143088

Membership No.153268

Dated:28th May, 2024 Sd/-

Sayati Patil
(Company Secretary)

---

Mar 31, 2014

1. In terms of the Scheme of Compromise or Arrangement under Sec.391 of the Companies Act 1956 with its Secured Creditors, Unsecured Creditors and Equity Shareholders which had been approved by Hon. High Court of Gujarat in their Order dated 16.05.2008 during the financial year 2008-09:

a) The Company has paid Rs.20,000,000/- to the Financial Institutions and Bank as full and final Settlement of their claims which includes Rs.5,141,000/- deposited with the Hon. High Court of Gujarat in respect of one of them arising out of securitisation of assets.

b) The Company has reduced the face value of the Equity share of Rs.10/- to Rs.1/- and has subsequently issued 1 (One) Equity Share (new) of Rs.10/- each as fully paid up against 10 (Ten) shares of Rs.1/ - each.

c) The Company has issued New Equity Shares of Rs.10/- at a premium of Rs.740/- per Equity share to few unsecured creditors in full and final settlement of their claims.

d) The Company is in the process of paying 25% of dues of other unsecured creditors within a period of 60 months in full and final settlement of their claims and balance 75% of their dues is accounted under Business Restructuring Account.

Meanwhile, the party referred to in (a) above in respect of Rs.5,141,000 filed an appeal against the above Order before a Division Bench of the Hon. High Court of Gujarat claiming additional amount for the same matter is still pending.

2. Contingent Liabilities not provided for:

a) Disputed Sales Tax liabilities Rs. 6,075,000/- (P. Y. Rs. 6,075,000/-)

b) In the settlement with the secured creditors a larger share is claimed by a party (as mentioned in Note No.20 above) by filing a suit in Honourable High Court of Gujarat. The Amount for the same is not ascertainable.

c) Interest on disputed liability to creditors, the amount is not ascertainable as there is a counter claim by the Company and the matter is pending with the Hon. Bombay High Court. The Management is of the opinion that no provision is required for interest, in terms of the Order of the Hon. High Court of Gujarat dated 16.05.2008 mentioned in Note No.20 above. The Amount for the same is not ascertainable.

Interest and penalty on the net sales tax payable to government is treated as nil as subsequent to year end an order has been received from Government of Gujarat for waiver of the same.

3. Security given by the Company for the Secured loans Rs Nil (P.Y. Rs. Nil) from Financial Institutions and Bank, ranking pari passu, by first charge over the immovable properties, present and future and a first charge by way of hypothecation of all movable (save and except stocks and book debts charged only in favour of bank) present and future, and personal guarantees of a Director and another share holder is still pending for removal of charge by one of the secured creditors.

4. Going Concern:

The Company has incurred losses in the past which has resulted into erosion of more than 50% of their net worth. Consequently the company was registered as a sick company under the Sick Industrial Companies Act, 1985 The accounts of the Company have been prepared on going concern basis in spite of erosion of net worth and order of the Board for Industrial and Financial Reconstruction (BIFR) in its order dated 1.9.2000 it is stated that prima facie the Company was not likely to make up its net worth within a reasonable time while meeting all its financial obligations and was not likely to become viable in future and hence it was just, equitable and in public interest that it should be wound up. Company had filed an application to the Honourable Gujarat High Court for a Scheme of Compromise or Arrangement u/s 391 of Companies Act 1956 with its Secured Creditors, Unsecured Creditors and Equity Shareholders. The company has received an order from High Court of Gujarat dated 16.05.2008 and is under process of implementation. Also in Financial Year 2009-10 the company has leased out its Plant & Machinery and land & building. The lease duration for the same is 99 years as per the agreement. According to the Management, the company is Going concern and the accounts have been prepared on Going Concern basis.

5. Taxation:

Income Tax Assessments have been completed up to the Assessment Year 2008-09. Provision for Income Tax and MAT has not been made considering the negative profits and carry forward losses. Also, as the Company continues to be a sick in terms of Sick Industrial Companies Act 1985 and Net Worth still remains to be negative, the MAT provision as per Income Tax Act 1961 has not been made.

6. Related Party Disclosures as required by Accounting Standard-18 are as follows:

I Related parties in which the Company has control - Nil.

II Other Related Parties

* Subsidiaries — Nil

* Associates - M. L. Mansukhani & Co Pvt Ltd * Key Management Personnel - Shri Kantilal. B .Patel - Shri Dharamshi .J. Patel

* Enterprises owned or significantly Influenced by key management

Personnel/Directors or their relatives - Shree Narmada Architectural Systems Ltd

7. Disclosure under Micro Small and Medium Enterprises Act

The information regarding Small Scale Industrial Undertakings has been determined to the extent such parties have been identified on the basis of information available with the Company.

The Principal amount due to Small Scale Industrial Undertakings to whom the Company owes a sum exceeding Rs.1,00,000 and/or which are outstanding for more than 45 days and interest thereon is as follows.

8. Income and Expenditure in Foreign Currency during the year is Rs NIL (Previous year Rs NIL)

9. Company being a sick unit could not obtain the services of full time Company Secretary in spite of its best efforts. However, the Company has engaged a Company Secretary in practice throughout the year

10. The balances relating to Trade receivables and Trade payables are subject to reconciliation and confirmations with respective parties.

The Company has written back creditors amounting to Rs 51,15,902.81 during the year, as there is no claim from the creditor for more than 3 years.

11. Interest for MSMED has not been provided since the all the dues to the party have been paid off and there is no balance outstanding at year end. Consequentially there is no qualification as compared to previous year.

12. The company has provided for gratuity and leave encashment on the basis of actuarial valuation for the year 2012 -2013 as well as for the current financial year ended 2013- 2014. Consequentially there is no qualification as compared to previous year.

13. Previous year figures have been regrouped / rearranged/ recasted wherever necessary to make them comparable with the current year figures.

---

Mar 31, 2013

A) Disputed Sales Tax liabilities Rs, 6,075,689/- (P Y. Rs,6,075,689/-.

b) In the settlement with the secured creditors a larger share is claimed by a party (as mentioned in note No.19 above) by filing a suit in Honorable High court of Gujarat The Amount for the same is not ascertainable.

c) Interest on disputed liability to creditors the amount is not is not ascertainable as there is a counter claim by the company and the matter is pending with the Hon Bombay High court The management is of the opinion that no provision is required for interest in terms court Gujarat dated 16.05.2008 mentioned in note No.19 above The Amount for the same is not ascertainable.

d) Interest/Penalty If any. on delayed payments of Sale Tax amount presently not as certainty.

1. Going Concern;

The Company has curds in the past which has resulted into erosion of more than 50% of their net worth consequently the company was registered as a sick company under the sick industrial companies Act,1985 The account of the company have been prepared on going concern basis in spite of erosion of net worth and accounts of the company it is stated that prime facie the company was not likely to make up its worth within a reasonable time while meeting all its financial obligations and was not likely to make up its company had filled an applicable to the Honorable Gujarat High Court unsecured creditors and Equity shareholders The company has received an order from secured creditors High Court of Gujarat dated 16.05.2008 and is under process of implementation also in financial year 2008-10 the company has leased out its plant & machinery and land & building The lease duration for the same is 99 years as per the agreement According to the management the company is going concern and the accounts have been prepared on Going concern basis.

(a) Income Tax Assessments have been completed up to the Assessment year 2008-09 provision for income Tax and MAT has not made considering the negative profits and curry forward losses also as the company continues to be a sick in terms of sick industrial companies Act, 1985 and net worth still remains to be negative the MAT provision as per income Tax Act, 1961 has not been made.

There are substantial unabsorbed depreciation and carried forward business losses under the income Tax Act,1961 As a measure of prudence and in the absence of reasonable virtual certainly to earn taxable profit in future deferred tax assets has been recognized only to the extent of reversal of deferred tax liabilities.

2. COMPANY BEING A SICK UNIT COULD NOT OBTAIN THE SERVICES OF FULL TIME COMPANY SECRETARY in spite of its best efforts. However the company has engaged a company secretary in practice throughout the year.

3.Lease.

Disclosure as required by AS-19 on Leases issued by the institute of Chartered Accountants of India is as below

a) Lease credited to profit & loss account during the year, 18,00,000/-

4. Disclosure under micro small and medium Enterprises Act:

The information regarding small scale industrial undertakings has been determined to the extent such parties have been indentified on the basis information available with the company.

- Credit is for 90 days so interest not provided.

(ii) The amount of interest paid by the buyer in terms of section 16 of the micro small and medium Enterprises Development Act, 2006 baling with the amount of the payment made to the supplier beyond the appointment day during each accounting year, is Rs, nil previous year Rs. NIL

(III) The amount of interest due the payable for the period of delay in making payment which have been paid but beyond the appointed day during the year, but without adding the interest under the micro small and medium Enterprises Development Act,2006 is Rs. NIL previous Rs. NIL.

(IV) The amount of interest accrued and remaining unpaid at the end of each accounting year is Rs, NIL (previous year Rs Nil)

(v) The amount of further interest remaining due and payable even in the succeeding years until such date when the interest dues as above are actually paid to the small enterprise for purpose of disallowance as a deductible expenditure under section 23 micro small and medium enterprises development Act.2006 is Rs.nil previous year Rs, NIL.

5. Total Gratuity and loss encashment liabilities as on 31.03.2013 on calculated by the company based its own estimate considering the provisions of payment of Gratuity Act, 1972 and companies policy on Leaves Encashment and is provided accordingly.

6. Previous year figures have been grouped / rearranged, recanted whoever necessary to make them comparable with the current year figures.

---

Mar 31, 2010

I) The accounts of the Company have been prepared on going concern basis in spite of erosion of net worth. In the order of the Board for Industrial and Financial Reconstruction (BIFR) dated 1.9.2000 it is stated that prima facie the Company was not likely to make its net worth positive within a reasonable time while meeting all its financial obligations and was not likely to become viable in future and hence it was just, equitable and in public interest that it should be wound up. The Companys appeal before AAIFR was rejected. Thereafter, the Company filed an Application in the Hon. High Court of Gujarat and on the basis of substantial reliefs and concessions agreed to by the Secured Creditors, an Order was passed by the Hon. High Court of Gujarat on 4,10.2005 based on which the Promoters had arranged directly to deposit with the Registry of the Hon. High Court of Gujarat a sum of Rs.50 lacs in part payment of the agreed dues to the Secured Creditors.

Since the Company continued to make losses, it filed an Application with the Hon. High Court of Gujarat for a Scheme of Compromise or Arrangement under Sec.391 of the Companies Act 1956 with its Secured Creditors, Unsecured Creditors and Equity Shareholders. As per the Order dated 20th March 2006 of the Hon. High Court of Gujarat, separate meetings were convened of Secured Creditors, Unsecured Creditors, and Equity Shareholders by the Asst. Registrar of the Hon. High Court of Gujarat who as the Chairman of the meetings has submitted his reports to the Hon. High Court of Gujarat. Hon. High Court of Gujarat passed an Order on 16.05.2008 approving the Scheme, in terms of the scheme during the financial year 2008-09:

a) The Company has paid Rs.200 Lakhs to the Financial Institutions and Bank as full and final payment of their claims which includes Rs.51.41 Lakhs deposited with the Hon. High Court of Gujarat in respect of one of them arising out of securitisation of assets.

b) The Company has reduced the face value of the Equity share of Rs.10/- to Rs.1/- and has subsequently issued 1 (One) Equity Share (new) of Rs.10/- each as fully paid up against 10 (Ten) shares of Rs.1/- each.

c) The Company has issued New Equity Shares of Rs.10/- at a premium of Rs.740/- per Equity share to few unsecured creditors in full and final settlement of their claims.

d) The Company is in the process of paying 25% of dues of other unsecured creditors within a period of 60 months in full and final settlement of their claims and balance 75% of their due is accounted under Business Restructuring Account.

Meanwhile, the party referred to in (a) above in respect of Rs.51.41 Lacs filed an appeal against the above Order before Division Bench of the Hon, High Court of Gujarat claiming additional amount ,for the same matter is still pending.

ii) Contingent Liabilities not provided for:

(a) Disputed Sales Tax liabilities Rs. 60,75,689/- (Previous year Rs. 60,75,689/-)

(b) In the settlement with the secured creditors a larger share is claimed by a party (as mentioned in pt (i) of the Notes to Account) by filing a suit in Honourable High Court of Gujarat. Amount for the same is not ascertainable.

(c) Interest on disputed liability to creditors, the amount is not ascertainable as there is a counter claim by the Company and the matter is pending with the Hon. Bombay High Court. The Management is of the opinion that no provision is required for interest, In terms of the Order of the Hon. High Court of Gujarat dated 16.05.2008 mentioned in Note No.2 (i) of Note to Account above.

(d) Interest/Penalty if any, on delayed payments of Sales Tax amount presently not ascertainable.

iii) Going Concern:

The company has incurred losses in the past which has resulted into erosion of more than 50% of their net worth. Consequently the company was registered as a sick company under the Sick Industrial Companies Act, 1985. However during the year the company has leased out its Plant & Machinery and land & building. The lease duration for the same is 99 years as per the agreement. According to the Management, the company is going concern and the accounts have been prepared as going Concern.

iv) Managerial remuneration under Section 198 of the Companies Act, 1956.

(a) The Company has been advised that the computation of net profits for the purpose of Directors remuneration under Section 349 of the Companies Act, 1956, need not be enumerated since no commission is paid to the Directors due to losses incurred. Fixed monthly remuneration is paid to the Directors as per Schedule XIII to the Companies Act, 1956. Central Government approval for the same is obtained by the Company.

v) Taxation:

Income Tax Assessments have been completed up to the Assessment Year 2007-08. Based on the legal opinion Provision for Income Tax has not been made considering the carry forward losses. As the Company continues to be sick in terms of Sick Inudstrial Companies Act 1985 and Net Worth stiil remains to be negative, hence MAT provision as per Income Tax Act 1961 has not been made. (a) There are substantial unabsorbed depreciation and carried forward business losses under the Income Tax Act 1961. However as a measure of prudence deferred tax assets have not been recognized in the accounts.

vi) Related Party Disclosures as required by Accounting Standard-18 are as follows :

I Related parties in which the Company has control - Nil.

II Other Related Parties

Subsidiaries - Nil

Key Management Personnel - Shri Kantilal. B Patel

- Shri Dhararnshi .J. Patel Enterprises owned or significantly influenced by key management Personnel/Directors or their relatives - M. L. Mansukhani & Co Pvt Ltd.

III Transaction with related parties during the year-

Directors Remuneration Rs. 9.87 lacs (Previous year Rs.9.86 lacs) Debtors, Loans and Advances

M. L. Mansukhani & co. Pvt. Ltd - 7,48.01 lacs (Cr)

- 5,70.05 lacs (Cr)

IV Balance outstanding at the year end:-

Payable to Shri. K.B.Patel Remuneration Payable Rs. 5.35 lacs (Previous year Rs, 6.51 lacs);

Unsecured Loan

M. L. Mansukhani & co. Pvt. Ltd Rs.370 Lacs (Previous Year 548 lacs)

viii) Segment Reporting:

Business Segments: The Company is engaged mainly in the business of manufacturing & dealing in Aluminium Extrusions and other activities which are directly related therto.

xii) Following balances have been written off under the head "Operating and Other Expenses" as "Sundry debit/credit balance written off. (1) Except that those debtors, creditors and advances which are not covered under the scheme of Hon. Gujarat High Court;

(ii) Undisputed Debtors and advances against purchases, which have not been realised for a period exceeding three accounting years, have been written off; and

xiii) Amount due for payment in respect of Sales Tax deferment as on 31.3.2010 is Rs. 1,70,20,867/- (Previous Year Rs. 1,70,20,867/-). The amount due within one year is Rs.170.20.867/- (Previous Year Rs. 1,70,20,867/-) However, the Company has requested Government of Gujarat for extension in the deferment period,

xiv) In respect of Electricity Duty Deferment Scheme, amount including due within a year is Rs 6,05,778/- - (Previous Year Rs. 11,46.876/-). The Company has not made any provision for interest on the instalments payable in respect of deferment dues. Management is of the opinion that such interest liability would not arise as it has requested the Government of Gujarat for the reschedulement of dues

xv) Company being a sick unit could not obtain the services of full time Company Secretary in spite of its best efforts. However, the Company has engaged a Company Secretary in practice through out the year.

xvii) Lease:

During the year on 5.7.2009 the Company has leased out Plant and Machinery and Land and Building as per Lease Deed & Lease Agreement Dated 05.07.2009 for a period of Ninety Nine Years to Shree Narmada Architectural Systems Limited for a rent @ Rs 150000/- p.m. and the company has also taken Deposit of Rs. 5000000/-.

Disclosure as required by AS-19 on "Leases" issued by the Institute of Chartered Accountants of India is as below:

a) Lease credited to Profit & Loss account during the year: 13,25,815/-

The Company has transferred the Cenvat Credit as per the rule 10 of CENVAT Credit Rules, 2004

Apart from above as per agreement dated 05.07.2009 company has also transferred the services of all employees to M/s. Shree Narmada Architectural Systems Limited together with all right, title and interest in and to the employees welfare funds, which shall include Gratuity and Privilege Leave, whether accrued or existing as on the date of execution.

xix) The Company has shifted its major activity from manufacturing to leasing and leased out all the Plant & Machinery and Land & Building w.e.f. 05.07.2009 as per xix above.

xx) The names of and amounts due to Small Scale Industrial Undertakings to whom the Company owes a sum exceeding Rs 1 lac and/or which are outstanding for more than 30 days - Nil.

The information regarding Small Scale Industrial Undertakings has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

As per the information obtained by the Company from creditors, none of the parties are registered under Small, Medium, and Micro Enterprises Act 2006

xxi) Deferred tax liability:

Looking at the substantial brought forward losses, the management is of the view that no deferred tax liability is expected to arise and hence no deferred tax liability has been provided for.

xxii) Total Gratuity and Leave encashment liabilities as on 31.03.2010 is calculated by the Management as per Payment of Gratuity Act 1972 and Payment of Wages Act and is provided accordingly for the 2 directors only. Provision for Gratuity for employees other than the said 2 directors have been credited to the Profit & Loss account amounting Rs. 39,38,613/- as the said employees and their liability existing and accrued as on 05/07/2009 has been transferred as per the agreement dated

xxiii) Figures for the previous year have been regrouped / recast wherever necessary to make them comparable with the figures of current year and figures in brackets indicate "negative".

xxiv) Additional information pursuant to Part IV of Schedule VI to The Companies Act. 1956.

---

Mar 31, 2009

I) The accounts of the Company have been prepared on going concern basis in spite of erosion of net worth. In the order of the Board for Industrial and Financial Reconstruction (BIFR) dated 1.9.2000 it is stated that prima facie the Company was not likely to make its net worth positive within a reasonable time while meeting all its financial obligations and was not likely to become viable in future and hence it was just, equitable and in public interest that it should be wound up. The Companys appeal before AAIFR was rejected. The Company filed an Application in the Honble High Court of Gujarat and on the basis of substantial reliefs and concessions agreed to by the Secured Creditors, an Order was passed by the Honble High Court of Gujarat on 4.10.2005 based on which the Promotors had arranged directly to deposit with the Registry of the Honble High Court of Gujarat a sum of Rs.50 lacs in part payment of the agreed dues to the Secured Creditors.

The Company continued to make losses it filed an Application with the Honble High Court of Gujarat for a Scheme of Compromise or Arrangement under Sec.391 of the Companies Act 1956 with its Secured Creditors, Unsecured Creditors and Equity Shareholders. As per the Order dated 20th March 2006 of the Honble High Court of Gujarat, separate meetings were convened of Secured Creditors, Unsecured Creditors, and Equity Shareholders by the Assistant Registrar of the Honble High Court of Gujarat who as the Chairman of the meetings has submitted his reports to the Honble High Court of Gujarat. Honble High Court of Gujarat has passed an Order on 16.05.2008 approving the Scheme. In terms of the scheme:

a) The Company has paid Rs.200 Lakhs to the Financial Institutions and Bank as full and final payment of their claims which includes Rs.51.41 Lakhs deposited with the Honble High Court of Gujarat in respect of one of them arising out of securitisation of assets.

b) The Company has reduced the face value of the Equity share of Rs.10/- to Rs.1/- and has subsequently issued 1 (One) Equity Share (new) of Rs. 10/- each as fully paid up against 10 (Ten) shares of Rs.1/-each.

c) The Company has issued New Equity Shares of Rs.10/- at a premium of Rs.740/- per Equity share to few unsecured creditors in full and final settlement of their claims.

d) The Company is in the process of paying 25% of dues of other unsecured creditors within a period of 60 months in full and final settlement of their claims and balance 75% of their due is accounted under Business Restructuring Account as disclosed below.

Meanwhile, the party referred to in (a) above in respect of Rs.51.41 Lacs has filed an appeal against the above Order before Division Bench of the Honble High Court of Gujarat claiming additional amount .forthe same matter is still pending.

ii) Contingent Liabilities not provided for:

a) Disputed Sales Tax liabilities Rs. 60,75,689/- (Previous year Rs. 60,75,689/-)

b) In the settlement with the secured creditors a larger share is claimed by a party (as mentioned in pt (i) of the Notes to Account) by filing a suit in Honble High Court of Gujarat. Amount for the same is not ascertainable.

c) Interest on disputed liability to creditors, the amount is not ascertainable as there is a counter claim by the Company and the matter is pending with the Honble Bombay High Court. In terms of the Order of the Honble High Court of Gujarat dated 16.05.2008 mentioned in Note No.(ii)of Note to Account above the Management is of the opinion that no provision is required for interest.

d) Interest/Penalty if any, on delayed payments of Sales Tax amount presently not ascertainable.

iv) Managerial remuneration under Section 198 of the Companies Act, 1956.

(a) The Company has been advised that the computation of net profits for the purpose of Directors remuneration under Section 349 of the Companies Act, 1956, need not be enumerated since no commission is paid to the Directors due to losses incurred. Fixed monthly remuneration is paid to the Directors as per Schedule XIII to the Companies Act, 1956. Central Government approval for the same is obtained by the Company.

iii) Taxation:

(a) Income Tax Assessments have been completed up to the Assessment Year 2006-07. Based on the legal opinion Provision for Income Tax has not been made considering the carry forward losses. As the Company continuous to be sick in terms of Sick Inudstrial Companies Act 1985 and Net Worth still remains to be negative, hence MAT provision as per Income Tax Act 1961 has not been made.

(b) Fringe Benefit Tax has been provided as per Income Tax Act 1961.

(c) There are substantial unabsorbed depreciation and carried forward business losses under the Income Tax Act 1961. However as a measure of prudence deferred tax assets havenot been recognized in the accounts.

iv) Related Party Disclosures as required by Accounting Standard-18 are as follows:

I Related parties in which the Company has control - Nil.

II Other Related Parties - subsidiaries - Nil

Key Management Personnel - Shri Kantilal. B .Patel and Shri Dharamshi J. Patel Others:-

- M. L. Mansukhani & co. Pvt. Ltd

- Patel Sales Pvt. Ltd

III Transaction with related parties during the year-

Directors Remuneration Rs. 9.86 lacs (Previous year Rs.9.78 lacs);

Debtors, Loans and Advances:-

Patel Sales Pvt. Ltd - Nil

M, L. Mansukhani & co. Pvt. Ltd - Nil

V Balance outstanding at the year end:-

Payable to Shri. K.B.Patel Loan Rs. Nil - (Previous year Rs. 15,lacs ) and Remuneration Payable Rs. 6.51 lacs (Previous year Rs.6.47 lacs);

Unsecured Loan

M. L. Mansukhani & co. Pvt. Ltd Rs.548 Lacs (Previous Year 865 lacs) Patel Sales Pvt. Ltd Rs. Nil - (Previous year Rs. 42.58 lacs)

vi) Segment Reporting:

The main business of the Company is only one segment i.e. manufacturing and dealing in Aluminium Extrusions and other activities are directly related thereto. Hence there are no separate reportable segment as such, as envisaged by the Accounting Standard-17 on "Segment Reporting" issued bythe Institute of Chartered Accountants of India.

vii) Following balances have been written off under the head Operating and Other Expenses as "Sundry debit/credit balance written off

(a) Except that those debtors creditors and advances which are not covered under the scheme of Honble Gujarat High Court.

i) Undisputed Debtors and advances against purchases, which have not been realised for a period exceeding three accounting years, have been provided for.

(ii) Undisputed Creditors, which are not claimed for a period exceeding three accounting years, are written back as disclosed above except those covered in Note 2 (i) of Schedule 18 of Notes to Account above.

(b) Following sums are shown as per books of account and are subject to confirmations and adjustments/reconciliation, if any:

(i) Sundry debtors of Rs. 27,125,809/- Advances recoverable of Rs. 19,569,927/-, Sundry Creditors (Including disputed creditors) of Rs. 56,670,297/- and Advances from Customers of Rs. 7,181,582/- are under regular scrutiny, and pending confirmation, in the opinion of the Directors they are good and fully recoverable/ payable

(ii) TDS recoverable Rs. 110,994/- ( Previous Year Rs.84,243/-) include under "Advance Recoverable in cash or kind orforvaluetobe received."

viii) Amount due for payment in respect of Sales Tax deferment as on 31.3.2009 is Rs.1,70,20,867/- (Previous Year Rs. 1,70,20,867/-). The amount due within one year is Rs. 1,70,20,867/- (Previous Year Rs. 1,70,20,867/-) However, the Company has requested Government of Gujarat for extension in the deferment period.

ix) In respect of Electricity Duty Deferment Scheme, amount including due within a year is Rs.11,46,876/- (Previous Year Rs. 22,46,876/-). The Company has not made any provision for interest on the instalments payable in respect of deferment dues. Management is of the opinion that such interest liability would not arise as it has requested the Government of Gujarat for the reschedulement of dues.

x) Company being a sick unit could not obtain the services of full time Company Secretary inspite of its best efforts. However, the Company has engaged a Company Secretary in practice throughout the year.

xi) Extra Ordinary Item :

The Business Restructuring Account of Rs. 178,526,289/- represents an income of non- recurring nature, being Extraordinary in Nature.

xii) The names of and amounts due to Small Scale Industrial Undertakings to whom the Company owes a sum exceeding Rs. 1 lac and/or which are outstanding for more than 30 days - Nil.

The information regarding Small Scale Industrial Undertakings has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

As per the information obtained by the Company from creditors, none of the parties are registered under Small, Medium and Micro Enterprises Act 2006.

xiii) Deferred tax liability:

Looking at the substantial brought forward losses, the management is of the view that no deferred tax liability is expected to arise and hence no deferred tax liability has been provided for.

xiv) Total Gratuity and Leave encashment liabilities as on 31.03.2009 is calculated by the Management as per Payment of Gratuity Act 1972 and Payment of Wages Act and is provided accordingly. In doing so, additional amount of Rs.11,99,537/- is charged to profit and loss account in comparison to the Actuarial Valuation Report.

xv) The Company has a valuation reports of some of its assets and based on the same impairment of Rs 4,75,000/- is provided in Capital Work In Progress as per AS 28 onst Impairment of Assets" prescribed by The Institute of Chartered Accountants of India.

xvi) Figures for the previous year have been regrouped / recast wherever necessary to make them comparable with the figures of current year and figures in brackets indicate "negative".

xvii) Additional information pursuantto Part IV of Schedule VI to The CompaniesAct. 1956.