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Notes to Accounts of Creative Castings Ltd.

Mar 31, 2019

1. GENERAL INFORMATION

Creative Castings Limited (âthe Companyâ ) is a public limited company domiciled in India The Company is engaged in manufacturing and selling of all types of Steel and Alloy Steel Investment Castings . The company is also engaged in generating of power from wind energy. The Casting Manufacturing unit of the Company is situated at G.I.D.C. Estate, Phase - II, Rajkot Road, Dolatpara, Junagadh - 362003. The company caters to both domestic and international markets.

The Companyâs shares are listed with BSE.

a) No Shareholders holding more than 5 % shares in the company.

b) No Change in Equity shares and Equity Share Capital during the financial years 2017-18 and 2018-19.

c) 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 dividends in Indian Rupees.

The dividend where proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting .

d) For the period of five years immediately preceding the date of Balance Sheet,

- The Company has not allotted any shares as fully paid up without receipt of cash,

- The Company has not brought back any shares,

- The Company has not issued any shares by way of bonus shares

* The Company has not received information from vendors regarding their status under the Micro, small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given .

* Trade payables includes amount due to Directors for Remuneration Rs. 315,000/-.(Previous year Rs. 285,000/-) .

Disclosure in respect of Defined Benefit Plans in respect of Gratuity .

The present value of obligation and defined benefit plan is determined based on actuarial valuation report.

The Company has funded the gratuity liability ascertained on actuarial basis, wherein every employee who has completed five years or more of service is entitled to gratuity on retirement or resignation or death calculated at 15 days salary for each completed year of service, subject to maximum of Rs. 20 lakhs per employee. The vesting period for gratuity as payable under The Payment of Gratuity Act is 5 years.

Valuation are performed on certain basic set of pre- determined assumptions which may vary over time. Thus , the company is exposed to various risks in providing the above benefit which are as follows :

Interest Rate risk : The plan exposes the Company to the risk of fall in interest risk. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in the value of the liability ( as shown in financial statements ).

Liquidity Risk : This is the risk that the Company is not able to meet the short term gratuity payouts. This may arise due to non availability of enough cash / cash equivalent to meet the liabilities or holding of illiquid assets not being sold in time.

Salary Escalation Risk : The present value of the defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in the rate of increase of salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the planâs liability.

Demographic Risk : The company has used certain mortality and attrition assumptions in valuation of the liability. The Company is exposed to the risk of actual experience turning out to be worse compared to.

Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the Payent of Gratuity Act, 1972 ( as amended from time to time ). There is a risk of change in regulation requiring higher gratuity payouts ( e.g. increase in the maximum limit on gratuity of Rs. 20,00,000).

Asset Liability mismatching or Market Risk : The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities / fall in interest rate.

Investment Risk : The probability or likelihood of occurance of losses relative to the expected return on any particular investment.

SENSITIVITY ANALYSIS

Significant actuarial assumptions for the determination of the defined benefit obligation are discount rate, expected salary increase and mortality. The sensitivity analysis below have been determined based on reasonably possible changes of the assumptions occurring at the end of the reporting period, while holding all other assumptions constant. The result of sensivity analysis is given below :

Please note that the sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumption would occur in isolation of one another as some of the assumptions may be correlated.

There is no change in the method of valuation for the prior period._

B. Financial Risk Management

The Company has established the risk management policies to ensure timely identification and evaluation of risks, settings acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency.

The Companyâs activities expose it to credit risk, liquidity risk and market risk .

The Board provides guiding principles for overall risk management as well as policies covering specific areas such as foreign exchange risk, credit risk and investment of surplus liquidity

(a) Credit risk

Credit risk refers to the risk of a counter party default on its contractual obligation resulting into a financial loss to the Company. The maximum exposure of the Financial assets represents trade receivables, work in progress and other receivables. In respect of trade receivables, the Company used a provision matrix to compute the expected credit loss allowances for trade receivables in accordance with the expected credit loss ( ECL ) policy of the Company. The Company regularly reviews trade receivables and necessary provisions, wherever required are made in the financial statements.

(b) Liquidity risk

Liquidity risk is that the Company will encounter difficulty in raising funds to meet its commitments associated with financial instruments. Liquidity risk may result from an inability to sell as financial asset quickly at close to its fair value.

The Company manages liquidity risk by maintaining adequate reserves and banking facilities by continuously monitoring for cast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. Contractual maturities of significant financial liabilities are as follows :

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Such changes in the values of financial instruments may result from changes in foreign currency exchange rates, interest rates, credit, liquidity and other market changes.

The Company is earning in foreign currency and consequently, the company is exposed to foreign exchange risk. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

(d) Capital management

The Companyâs capital management objective is to maximise the total shareholdersâ return by optimising cost of capital through flexible capital structure that supports growth. Further, the Company ensure optimal credit risk profile to maintain / enhance credit rating.

The Company determined the amount of capital required on the basis of annual operating plan and long term strategic plans. The funding requirements are met through internal accruals and long term / short term borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

2. In the opinion of the Board of Directors, Current assets and other non current assets have a value on realisation in ordinary course of business at least equal to the amount at which they are stated.

3. Confirmation of debit / credit balances have not been received and hence these balances are subject to adjustment if any.

4. Previous year figures :

The company has regrouped / rearranged previous year figures whenever necessary in view of easy comparison with current year figures.

5. Figures rounded off to nearest rupee.

All the figures including previous year figures have been rounded off to nearest rupee.

Mar 31, 2018

1. KEY SOURCES OF ESTIMATION UNCERTAINTY AND CRITICAL ACCOUNTING JUDGEMENTS

In the course of applying the policies outlined in all notes under section 2 above, the company is required to make judgment, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factor that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future period, if the revision affects current and future period.

(i) Useful lives of property, plant and equipment

Management reviews the useful lives of property, plant and equipment at least once a year. Such lives are dependent upon an assessment of both the technical lives of the assets and also their likely economic lives based on various internal and external factors including relative efficiency and operating costs. Accordingly depreciable lives are reviewed annually using the best information available to the Management.

(ii) Provisions and liabilities

Provisions and liabilities are recognized in the period when it becomes probable that there will be a future outflow of funds resulting from past operations or events that can reasonably be estimated. The timing of recognition requires application of judgment to existing facts and circumstances which may be subject to change. The amounts are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability.

(iii)Contingencies

In the normal course of business, contingent liabilities may arise from litigation and other claims against the company. Potential liabilities that are possible but not probable of crystallizing or are very difficult to quantify reliably are treated as contingent liabilities. Such liabilities are disclosed in the notes but are not recognized.

(iv)Fair value measurements

When the fair values of financial assets or financial liabilities recorded or disclosed in the financial statements cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques including the DCF model. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgment is required in establishing fair values. Judgments include consideration of inputs such as liquidity risk, credit risk and volatilityâ.

(v) Taxes

Deferred tax assets are recognized for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilized. Significant management judgment is required to determine the amount of deferred tax assets that can be recognized, based upon the likely timing and the level of future taxable profits together with future tax planning strategies.

a) No Shareholders holding more than 5 % shares in the company.

b) No Change in Equity shares and Equity Share Capital during the financial years 2016-17 and 2017-18.

c) 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 dividends in Indian Rupees.

The dividend where proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting .

d) For the period of five years immediately preceding the date of Balance Sheet,

- The Company has not allotted any shares as fully paid up without receipt of cash,

- The Company has not brought back any shares,

- The Company has not issued any shares by way of bonus shares

Disclosure in respect of Defined Benefit Plans in respect of Gratuity .

The present value of obligation and defined benefit plan is determined based on actuarial valuation report.

Valuation are performed on certail basic set of pre- determined assumptions which may vary over time. Thus , the company is exposed to various risks in providing the above benefit which are as follows :

Interest Rate risk : The plan exposes the Company to the risk of fall in interest risk. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in an increase in the value of the liability ( as shown in financial statements ).

Regulatory Risk : Gratuity benefit is paid in accordance with the requirements of the Payent of Gratuity Act,

1972 ( as amended from time to time ). There is a risk of change in regulation requiring higher gratuity payouts ( e.g. increase in the maximum limit on gratuity of Rs. 20,00,000).

Asset Liability mismatching or Market Risk : The duration of the liability is longer compared to duration of assets, exposing the Company to market risk for volatilities / fall in interest rate.

Investment Risk : The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

2. RELATED PARTY DISCLOSURES

(1) Names of Related parties and nature of relationship

(a) Key Management Personnel

(i) Shri Rajan R. Bambhania (ii) Shri Vishal D. Patel

(iii) Shri Sidhdharth V. Vaishnav (iv) Shri Ashok L. Shekhat

(v) Shri Dharmesh A. Chauhan (vi) Ms. Ekta . H. Bhimani

(upto 30.06.2017) (from 12.08.2017)

(b) Relative of Key Management Personnel

(1) Smt. Kokilaben D. Dand (ii) Smt. Heena V. Patel

(iii) Smt. Dipti S. Vaishnav (iv) Ms. Dhirubhai Dand & Co.

Note:Related party relationship is as identified by the company and relied upon by the auditors.

(2) Transaction with Related Parties

B. Financial Risk Management

The Companyâs activities expose it to credit risk, liquidity risk and market risk .

The Board provides guiding principles for overall risk management as well as policies covering specific areas such as foreign exchange risk, credit risk and investment of surplus liquidity

(a) Credit risk

(b) Liquidity risk

The Company manages liquidity risk by maintaining adequte reserves and banking facilities by continuously monitoring forcast and actual cash flows and by matching the maturity profiles of financial assets and liabilities. Contractual maturities of significant financial liabilities are as follows :

The Company is earning in foreign currency and consequently, the company is exposed to foreing exchange risk. The Company evalutes exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

(d) Capital management

The Company''s capital management objective is to maximize the total shareholders'' return by optimizing cost of capital through flexible capital structure that supports growth. Further, the Company ensure optimal credit risk profile to maintain / enhance credit rating.

The Company determined the amount of capital required on the basis of annual operating plan and long term

strategic plans. The funding requirements are met through internal accruals and long term / short term borrowings. The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

The following table summarizes the capital of the Company.

3. In the opinion of the Board of Directors, Current assets and other noncurrent assets have a value on realization in ordinary course of business at least equal to the amount at which they are stated.

4. Confirmation of debit / credit balances have not been received and hence these balances are subject to adjustment if any.

5. Previous year figures :

The company has regrouped / rearranged previous year figures in veiw of easy comparison with current year figures.

6. Figures rounded off to nearest rupee. All the figures including previous year figures have been rounded off to nearest rupee.

Mar 31, 2015

1. Corporate Information :

CREATIVE CASTINGS LIMITED is a public limited company domiciled in India and incorporate under the provisions of the Companies Act, 1956, Its shares are listed in one stock exchange in India (OTC). The company is engaged in manufacturing of steel and alloy steel investment castings. The company is also engaged in generating of Power from wind energy. The Casting Manufacturing unit of the company is situated at G.I.D.C. Estate, Phase - II Rajkot Road, Dolatpara Junagadh - 362 003. The company caters to both domestic and international markets.

2. Basis of Preparation.

The financial statement of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP) including accounting standards notified under the relevant provisions of the Companies Act, 2013. The Financial statements have been prepared on an accrual basis and under the historical cost convention except where specifically stated.

3. Use of Estimates

The preparation of the financial statements in conformity with Indian GAAP requires the Management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent liabilities as of the date of the financial statements and the reported amount of revenues and expenses during the reporting year. The Management believes that the estimates used in preparation of the financial statements are prudent and reasonable. Future results could differ due to these estimates and the differences between the actual results and the estimates are recognised in the periods in which the results are known / materialise.

* Terms / rights attached to shares : The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.The company declare and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to approval of the Share holders in the ensuing Annual General Meeting .

In the event of liquidation of the company, the holders of equity shares will be entitled to received remaining assets of the company after distribution of all preferential amounts. The distribution will be in propotion to the numbers of equity shares held by the shareholders.

* Term Loan from bank is Secured against Hypothecation of Wind energy generator and Equitable Mortgage of all Land & Building of the company and against the personal guarantees of all the directors.

4. Contingent liabilities not provided for in respect of:

[i] Bank guarantees outstanding as at 31st March, 2015 for which the Company has given counter guarantees amounting to Rs. 90,000/- (Previous year Rs. 180,000/-).

5. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc, under the Income tax Act / Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

6. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of business.

7. The provision for all known liabilities is adequate and not in excess of the amount reasonably required.

8. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment, if any.

9. Value of Raw materials and Components consumed.

10. Information in regard to expenditure in foreign currency : For Traveling Expenses Rs. 139,133/- (previous Year Rs. 80,844/-) For Participation fee Rs. 178,968/-( previous year Rs. Nil).

11. SEGMENT INFORMATION : The company has identified two Reportable Segments viz. Investment Casting and Power.

12. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessment made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

13. RELATED PARTY INFORMATION

Disclosure in respect of related parties ( as defined in Accounting Standard 18), with whom transaction have taken place during the year are given below:

(1) RELATIONSHIP:

(a) Key Management Personnel

(i) Rajan R. Bambhania

(ii) Vishal D. Patel

(iii) Siddharth V. Vaishnav

(b) Relatives of Key Management Personnel

(i) Kokilaben D. Dand

(ii) Hina V. Patel

(iii) Dipti S. Vaishnav ( Upto 30.09.2014)

Note : Related Party relationship is as identified by the company and relied upon by the auditors.

Mar 31, 2014

1. Corporate Information:

CREATIVE CASTINGS LIMITED is a public limited company domiciled in India and incorporate under the provisions of the Companies Act, 1956, Its shares are listed in one stock exchange in India (OTC). The company ,s engaged in manufacturing of steel and alloy steel investment castings. The company is also engaged in manufacturing of Power from wind energy. The Casting Manufacturing unit of the company is situated at G.T.D.C Estate, Phase - II Rajkot Road, Dolatpara Junagadh - 362 003. The company caters to both domestic and international markets.

2. Basis of Praparation:

The financial statement of the company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting standards) Rules, 2006, (as respects with the relevant provisions of the Companies Act,1956 and the provisions of the Companies Act, 2013 (to the extent notified) and guidelines issued by the Institute of Chartered Accountants of India ( regulatory authority The Financial statements have been prepared on an accrual basis and under the historical cost convention, except where specifically stated.

3. Terms / rights attached to shares :

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.The company declare and pays dividends in Indian Rupees. The dividend proposedby the Board of Directorsis subject to 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 received remaining assets of the company after distribution of all preferential amounts. The distribution will be in propotionto the numbers of equity shares held by the shareholders.

4. Contingent liabilities not provided for in respect of:

[i] Bank guarantees outstanding as at 31st March, 2014 for which the Company has given counter guarantees amounting to Rs. 180,000/- (Previous year Rs. 180,000/-).

5. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc. under the Income tax Act / Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

6. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of business.

7. The provision for all known liabilities is adequate and not in excess of the amount reasonably required.

8. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment, if any.

9. Value of Raw materials and Components consumed.

10. Information in regard to expenditure in foreign currency: for Traveling Expenses Rs. 80,844/- (previous Year Rs. 556,021/-)

11. SEGMENT INFORMATION : The company has identified two Reportable Segments viz. Investment Casting and Power.

12. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessment made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

13. RELATED PARTY INFORMATION

Disclosure in respect of related parties (as defined in Accounting Standard 18), with whom transaction have taken place during the year are given below:

(1) RELATIONSHIP:

(a) Key Management Personnel

(i) Rajan R. Bambhania

(ii) Vishal D. Patel

(iii) Sidhdharth V. Vaishnav

(b) Relatives of Key Management Personnel

(i) Kokilaben D. Dand

(ii) Hina V. Patel

(iii) Dipti S. Vaishnav

Note: Related Party relationship is as identified by the company and relied upon by the auditors.

14. Previous year figures

The company has regrouped / rearranged previous year figures in view of the easy comparison With current year figures.

15. All the figures including previous year figures have been rounded off to nearest rupee.

Mar 31, 2013

1. Corporate Information :

CREATIVE CASTINGS LIMITED is a public limited company domiciled in India and incorporate under the provisions of the Companies Act, 1956, Its shares are listed in one stock exchange in India.(OTC) The company is engaged in manufacturing of steel and alloy steel investment castings. The company is also engaged in manufacturing of Power from wind energy. The Casting Manufacturing unit of the company is situated at G.I.D.C. Estate, PhaseÂII Rajkot Road, Dolatpara Junagadh - 362 003. The company caters to both domestic and international markets.

2. Basis of Preparation.

The financial statement of the company have been prepared in accordance with generally accepted accounting principles in India ( Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The Financial statements have been prepared on an accrual basis and under the historical cost convention, except where specifically stated.

* No Shareholders holding more than 5% shares in the company.

* Terms / rights attached to shares:

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.The company declare 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 holders of equity shares will be entitled to received remaining assets of the company after distribution of all preferential amounts. The distribution will be in propotion to the numbers of equity shares held by the shareholders.

* The Company has not received information from vendors regarding their status under the Micro, small and Medium Enterprise Development Act, 2006 and hence disclosure relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given .

* Trade payables includes amount due to Directors of Rs. 180000/-.(Previous year Rs. 166500/-).

3. Contingent liabilities not provided for in respect of:

[i] Bank guarantees outstanding as at 31st March,2013 for which the Company has given counter guarantees amounting to Rs. 1,80,000/- (Previous year Rs. 1,80,000/-).

4. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc. under the Income tax Act /Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

5. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of business.

6. The provision for all known liabilities is adequate and not in excess of the amount reasonably required.

7. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment, if any.

8. Value of Raw materials and Components consumed.

9. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessment made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

10. RELATED PARTY INFORMATION

Disclosure in respect of related parties ( as defined in Accounting Standard 18), with whom transaction have taken place during the year are given below:

(1) RELATIONSHIP:

(a) Key Management Personnel

(i) Rajan R. Bambhania (ii) Vishal D. Patel (iii) Sidhdharth V. Vaishnav

(b) Relatives of Key Management Personnel

(i) Kokilaben D. Dand (ii) Hina V. Patel (iii) Dipti S. Vaishnav

Note: Related Party relationship is as identified by the company and relied upon by the auditors.

11. Previous year figures

The company has regrouped / rearranged previous year figures in view of the easy comparison With current year figures.

12. Figures rounded off to nearest All the figures including previous year, gores have teen rounded off to nearest rupee.

Mar 31, 2012

1. Corporate Information :

CREATIVE CASTINGS LIMITED is a public limited company domiciled in India and incorporate under the provisions of the Companies Act, 1956, Its shares are listed in one stock exchange in India. ( OTC ) The company is engaged in manufacturing of steel and alloy steel investment castings. The company is also engaged in manufacturing of Power from wind energy. The Casting Manufacturing unit of the company is situated at G.I.D.C. Estate, Phase - II Rajkot Road, Dolatpara Junagadh - 362 003. The company caters to both domestic and international markets.

2. Basis of Preparation.

The financial statement of the company have been prepared in accordance with generally accepted accounting principles in India ( Indian GAAP). The company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting standards ) Rules, 2006, ( as amended ) and the relevant provisions of the Companies Act, 1956. The Financial statements have been prepared on an accrual basis and under the historical cost convention, except where specifically stated.

* No Shareholders holding more than 5 % shares in the company.

* Terms / rights attached to shares :

The company has only one class of equity shares having a par value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share. The company declare 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 holders of equity shares will be entitled to received remaining assets of the company after distribution of all preferential amounts. The distribution will be in propotion to the numbers of equity shares held by the shareholders.

3. Contingent liabilities not provided for in respect of:

[i] Bank guarantees outstanding as at 31st March,2012 for which the Company has given counter guarantees amounting to Rs. 180 Thousands (Previous year Rs. 180 Thousands ).

[ii] Income Tax demand of Rs. 17779 Thousands (Previous year Rs. NIL ) raised by the Income Tax department at the time of Assessment. The said demand is disputed by the company. The company has paid Rs.6026 Thousands (Previous year Rs. NIL) against the said demand.

4. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc. under the Income tax Act / Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognized on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

5. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realized in the ordinary course of business.

6. The provision for all known liabilities is adequate and not in excess of the amount reasonably required.

7. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment, if any.

8. Information in regard to expenditure in foreign currency : for Traveling Expenses Rs. -Nil- ( P. Y. Rs. -Nil-)

9. SEGMENT INFORMATION : The company has identified two Reportable Segments viz. Investment Casting and Power.

10. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessment made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

11. RELATED PARTY INFORMATION

Disclosure in respect of related parties ( as defined in Accounting Standard 18), with whom transaction have taken place during the year are given below:

(1) RELATIONSHIP:

(a) Key Management Personnel

(i) Rajan R. Bambhania (ii) Vishal D. Patel wef. 01.07.2011 (iii) Sidhdharth V. Vaishnav w.e.f. 01.07.2011.

(b) Relatives of Key Management Personnel

(i) Kokilaben D. Dand (ii) Hina V. Patel (iii) Dipti S. Vaishnav

Note : Related Party relationship is as identified by the company and relied upon by the auditors.

12. Previous year figures

Till the year ended 31st March, 2011, the company was using pre-revised Schedule VI to the Companies act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012 , the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the company. The company has reclassified previous year figures to conform to this year's classification. The adoption f revised Schedule VI dose not impact recognition and measurement principles followed preparation of Financial statements. However, it significantly impacts presentation and disclosures made in the financial statements particularly presentation of balance sheet.

13. Figures rounded off to nearest thousand. All the figures including previous year figures have been rounded off to nearest thousand. Where the rounding off has become zero, actual figures have been shown in brackets.

Mar 31, 2011

1. CONTINGENT LIABILITIES

(i) Bank guarantees outstanding as at 31st March, 2011, for which the company has given counter guarantees amounting to Rs. 100000/- (Previous year Rs.180000/-)

2. Provision for current taxes represents estimated liability having regard to the profit adjusted for appropriate reliefs, allowances, etc. under the Income tax Act / Rules.

Deferred Tax is calculated at current statutory Income Tax rate and is recognised on timing differences between taxable income and accounting income that originate in one year and are capable of reversal in one or more subsequent year

3. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated in the balance sheet if realised in the ordinary course of business.

4. The provision tor all known liabilities is adequate and not in excess of the amount reasonably required.

5 Tire remuneration paid to the Managing Director of the Company including bonus and perquisites amounts to Rs. 730385/- ( Previous year Rs.655269/-)

6. Depreciation on the assets has been provided on Straight Lino Method as per the revised guidelines and rates proscribed by the Company Law Board in Schedule XIV of the companies act. 1956 by the Ministry of Law, Justice & Company affairs, Department of the Company affairs, New Delhi, The Provision of Depreciation for multiple shifts wherever applicable as per records and as advised has been made on the basis of actual shift wise utilisation of the respective eligible assets,

7. Confirmation of debit/credit balances have not been received and hence these balances are subject to adjustment,it any.

8. Additional information pursuant of paragraph 3(i),(ii). 4B, 4C and 4D of Part-H of Schedule IV of the Companies Act.1956.

9. IMPAIRMENT OF ASSETS

An Assets is treated as impaired when the carrying cost of assets exceeds its recoverable value. On the assessmen made by the Management and the Valuation Report of the Approved Valuer, there is no Impairment of Assets and there for no provision for Impairment of loss is required.

10. RELATED PARTY INFORMATION

Disclosure in respect of related parties ( as defined in Accounting Standard 18), with whom transaction have taken place'during the year are given below:

(1) RELATIONSHIP: (a) Key Management Personnel (I) Shri Rajan R. Bambhania

Note : Related Party relationship is as identified by the company and relied upon by the auditors.

11. The figures of the Previous year have been re-grouped in view of the easy comparison with current year figures

12. The paises have been .eliminated to the nearest rupee for convenience.

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