Notes to Accounts of Accurate Transformers Ltd.

Mar 31, 2014

1. Contingent Liability are provided for in respect of Disputed Income Tax, Excise, Service Tax, VAT and Bills Discounted.

1.1 Cenvat Credit on Excise Duty and VAT paid on goods is accounted for by reducing the purchase cost of related material.

1.2 The closing stock is taken as valued and certified by the management of the C omp any.

1.3 (i) The Company has not received any information from the "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 & hence disclosures, if any, relating to the amounts as at year end together with interest paid/ payable as required under the said act have not given.

(ii) As per Section 250 A of the Companies Act, 1956, Rs. 6.51 Lacs pertaining to unclaimed dividend & Unclaimed Share Application money due and outstanding (upto F.Y. 1998-1999) to be credited to Investor Education and Protection Fund, but not deposited till date.

1.4Directors Remuneration as per Companies Act, 1956 is maximum up to Rs.4200000.00 in case of inadequacy of profit . The company has paid a sum of Rs 14,60,000/- during the year as Directors remuneration.

1.5. The disclosure of transactions with the related parties as described in the A.S.-18 issued by ICAI are given below :

a) Related Parties

Name of Related Relation ship

i. Sh. C. L. Sharma Key Management Personnel

ii. Sh. Bhupal Singh Key Management Personnel

iii. Sh. Subhash Chand Sharma Key Management Personnel

1.06. The financial statements for the year ended March 31, 2014 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of revised schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2014 are prepared as per Revised Schedule VI.

---

Mar 31, 2013

1.1 Contingent Liabilities not provided for in respect of Bank Guarantee Rs. 122.16 Cr. (P.Y. Rs. 102.63 Cr.), Letter of credit Rs. 38.43 Cr. (RY. Rs. 48.46 Cr.).

1.2 Contingent Liability not provided for in respect of Disputed Income Tax, Excise, Service Tax, VAT and Bills Discounted during the year because in the absence of records, we are unable to determine the liability of the tax and the penalties.

1.3 Cenvat Credit on Excise Duty and VAT paid on goods is accounted for by reducing the purchase cost of related material.

1.4 The closing stock is taken as valued and certified by the management of the Company.

1.5 (i) Balance in the personal accounts, Debtors, Loans and Advances, other Current Assets, Creditors, Unsecured Loans and other liabilities are subject to confirmation and reconciliation from the respective parties

(ii) Reconciliation of Purchases and Sales are subject to verification and confirmation from the returns filed with Excise, VAT and other Departments.

(iii) Fixed deposits and Short Term Deposits with the Banks are subject to confirmation and Certificate from respective banks.

(iv) The Company has not received any information from the "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 & hence disclosures, if any, relating to the amounts as at year end together with interest paid/ payable as required under the said act have not given.

(v) As per Section 250 A of the Companies Act, 1956, Rs. 6.51 Lacs pertaining to unclaimed dividend & Unclaimed Share Application money due and outstanding (upto F.Y. 1998-1999) to be credited to Investor Education and Protection Fund, but not deposited till date.

1.11. The financial statements for the year ended March 31, 2013 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of revised schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2013 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year''s classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

---

Mar 31, 2012

A) Terms/rights attached to Equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of Equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees (if any). The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1.1 Contingent Liabilities not provided for in respect of Bank Guarantee Rs. 102.63 Cr. (P. Y. Rs. 83.74 Cr.), Letter of credit Rs. 48.46 Cr. (P. Y. Rs. 37.93 Cr.)

1.2 Contingent Liability not provided for in respect of Disputed Income Tax, Excise, Service Tax, VAT and Bills Discounted during the year because in the absence of records, we are unable to determine the liability of the tax and the penalties.

1.3 Cenvat Credit on Excise Duty and VAT paid on goods is accounted for by reducing the purchase cost of related material.

1.4 The closing stock is taken as valued and certified by the management of the Company.

1.5 (i) Balance in the personal accounts, Debtors, Loans and Advances, other Current Assets, Creditors, Unsecured Loans and other liabilities are subject to confirmation and reconcilation from the respective parties

(ii) Reconcilation of Purchases and Sales are subject to verification and confirmation from the returns filed with Excise, VAT and other Departments.

(iii) Fixed deposits and Short Term Deposits with the Banks are subject to confirmation and Certificate from respective banks.

(iv) The Company has not received any information from the "suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 & hence disclosures, if any, relating to the amounts as at year end

(v) As per Section 250 A of the Companies Act, 1956, Rs. 6.51 Lacs pertaining to unclaimed dividend & Unclaimed Share Application money due and outstanding (upto F.Y. 1998-1999) to be credited to Investor Education and PrntoHinn Fund

1.6 Director Remuneartion as per Companies Act, 1956 calculated to Rs. 32,44,658/- but the Company actually paid Rs. 45,75,000/- to the Directors of the Company. The Company has informed us that they will seek the approval from the Central Government for the amount paid in excess.

1.7 The disclosure of transactions with the related parties as described in the A.S. -18 issued by ICAI are given below:

1.8. Shareholders of the Company in their meeting held on 30-09-2010 had allotted 148,000 (74,000 Warrants each to Mr. C.L. Sharma and Mr. Deepak Sharma promoters of the Company) of Rs. 10/- each at a premium of Rs. 97/- on preferential basis. The warrants were to be converted into Equity Shares of Rs. 10/- each on or before 28-06-2012 at a premium of Rs.97/- per Share.

The payment for warrants for 25% of the amount i.e Rs. 26.75 per warrant amounting to Rs. 19,79,500/- by each of the above Promoters was done earlier on 29-12-2010.

Now balance 75% of the amount i.e Rs. 80.25 per warrant amounting to Rs. 59,38,500/- each was to be done by Mr. C.L. Sharma and Mr. Deepak Sharma on or before 28-06-2012 and the Warrants was to be converted into equal number of Equity Shares on or before 28-06-2012.

But the above promoters have not deposited the due money on or before 28-06-2012. Hence the Board of Directors of the Company, in their meeting held on 04-07-2012 has forfeited total 25% of the upfront money amounting to Rs. 39,59,000/- and 1,48,000 Warrants stands lapsed.

1.9 The financial statements for the year ended March 31, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised schedule VI under the Companies Act, 1956, the financial statements for the year ended March 31, 2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to conform to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles follwed for preparation of financial statements.

---

Mar 31, 2010

Others

1 Contingent liabilities not provided for in respect of Bank Guarantee Rs. 5999.63 lacs (Rs. 5949.94 lacs P.Y.), Letter of credit Rs. 2448.25 lacs (Rs. 1835.80 lacs P.Y.) re- spectively.

2 Accounting of Raw Material consumption is net of Modvat credit utilized during the year Rs. 231.03 Lacs (Previous year Rs. 517.72 Lacs) Claim and Refunds, if any, shall be accounted for in the year of determination.

3 The closing stock is accepted as taken, valued and certified by the management.

4 (i) Balance in the personal accounts, Debtors, Loans and Advances, other Current Assets, Creditors and other liabilities are subject to confirmation from the respective parties.

(ii) The company has not received any information from the "suppliers" regarding their status under the micro, small and medium enterprises development act, 2006 & hence disclosures, if any, relating to the amounts as at year end together with interest paid / payable as required under the said Act have not given.

(iii) As per Section 205 A of the Companies Act, 1956 Rs. 6.51 Lacs pertaining to unclaimed divided & unclaimed share application money due and outstanding (upto FY 1998-1999) to be credited to invester education and protection fund.

5 Disclosure in respect of Related Parties Pursuant to Accounting Standard 18 (A) List of Related Parties

I. Parties where control exists - NIL

(ii) Key Management Personnel and enterprises having common key Management Personnel of their relatives : Key Management Personnel : Shri C.L. Sharma

Shri M.K. Basak (Upto 30-09-2009) Shri Deepak Sharma Shri K.L. Chauhan Shri Bhupal Singh Dr. O. P. Sharma

6 Figures of previous Year have been re-grouped/re-ciassified re-arranged wherever necessary, and figures are rounded off to nearest rupee.