Notes to Accounts of Crimson Metal Engineering Company Ltd.

Mar 31, 2014

Amount in Rs. PARTICULARS As at 31 st March 2014 2013

1 CONTINGENT LIABILITIES

(i) On account of pending appeals of Central Excise 38,051,782 38,051,782

a) Job work incorrect adoption of value vide ref:V/73/15/61/2004-CXADJ/8/02/05 for Rs.20226475/-

b) Wrong availment of Cenvat credit vide ref.V/73/15/100/2005-CX ADJ/25/01/06 for Rs.16506601/- c) Removal of waste & scrap without payment of duty vide ref: V/Ch.73/15/55/2006-CX ADJ/29/01/09 for Rs.1318706/-

(ii) Non Filing of ER-6 Return for the Year 2012-13 - - V/Ch.73/15/27/2013 CX.Adj dt.14/08/13

(iii) Electricity tax on electricity bill Pondy Rs.13.10 lacs 1,310,000 1,310,000

(iv) LC Outstanding as on 31.03.14 34,983,123



2 GENERAL

a) Balance in Sundry Debtors/ Creditors and advances are subject to confirmation

b) Previous Year''s Figures have been re-arranged and re-grouped wherever necessary.

c) Tax deducted at source from the payment to contractors, Professional charges, Comission, intrest and Salaries have been deposited.

d) In view of insufficient information from the suppliers regarding their status as SSI units the amount due to small scale Industrial Undertakings cannot be ascertained.

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Mar 31, 2013

1.a) CRIMSON METAL ENGINEARING COMPANY LIMITED

is a Public Limited company. The company incorporated under companies'' act 1956 vides RC number L27105TN1985PLCO11566 issued by Register of companies (ROC) Tamilnadu. Its share is listed on stock exchanges in India. The Company is engaged in the manufacturing and selling of Black Pipe (ERW Pipe & G I Pipe) The factory is situated in Peptic Industrial Estate, Sedarapet Pondicherry - 605111.

b) The financial statements have been prepared in accordance with generally accepted accounting in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards as notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on an accrual basis except in case of Land (freehold and leasehold).

Amount in Rs.

PARTICULARS As at 31 st March

2013 2012

2 CONTINGENT LIABILITIES

(i) On account of pending appeals of Central Excise 38,051,782 38,051,782

a) Job work incorrect adoption of value vide ref:V/73/15/61/2004-CXADJ/8/02/05 for Rs.20226475/-

b) Wrong a ailment of Cenvat credit vide

ref.V/73/15/100/2005-CX ADJ/25/01/06 for Rs.16506601/-

c) Removal of waste & scrap without payment of duty vide ref: V/Ch.73/15/55/2006-CX ADJ/29/01/09 for Rs.1318706/-

(ii) Demand of Interest on Sales tax from 1992-93 to 2005-06 - - has been paid under Samadhan Scheme

(iii) Electricity tax on electricity bill Pondy Rs.13.10 lacs 1,310,000 1,310,000

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Mar 31, 2012

1.a) CRIMSON METAL ENGINEARING COMPANY LIMITED is a Public Limited company. The company incorporated under companies' act 1956 vides RC number L27105TN1985PLCO11566 issued by Register of companies (ROC) Tamilnadu. Its share is listed on stock exchanges in India. The Company is engaged in the manufacturing and selling of Black Pipe (ERW Pipe & G I Pipe) The factory is situated in Pipdic Industrial Estate, Sedarapet Puducherry – 605111.

b) The financial statements have been prepared in accordance with generally accepted accounting in India (Indian GAAP). The company has prepared these financial statements to comply in all material respects with the Accounting Standards as notified by Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial Statements have been prepared under the historical cost convention on an accrual basis except in case of Land (freehold and leasehold).

2 CONTINGENT LIABILITIES



(i) On account of pending appeals of Central Excise 38,051,782 41,415,000

a) Job work incorrect adoption of value vide ref:V/73/15/61/2004-CXADJ/ 8/02/05 for Rs.20226475/-

b) Wrong availmentof Cenvat credit vide ref.V/73/15/100/2005-CX ADJ/25/01/06 for Rs.16506601/-

c) Removal of waste & scrap without payment of duty vide ref: V/Ch.73/15/55/2006-CX ADJ/29/01/09 for Rs.1318706/-

(ii) Demand of Interest on Sales tax from 1992-93 to 2005-06 has been - 1,660,000 paid under Samadhan Scheme

(iii) Electricity tax on electricity bill Pondy Rs.13.10 lacs 1,310,000 1,310,000



3 SEGMENT REPORTING

As per information given to us and to the best of our knowledge company is only manufacturing of Skelp, MS Pipes & GI Pipes therefore segment reporting in this case is not applicable.

4 GENERAL

a) Balance in Sundry Debtors/ Creditors and advances . are subject to confirmation

b) Previous Year's Figures have been re-arranged and re-grouped wherever necessary.

c) Tax deducted at source from the payment to contractors, Professional charges, Comission, intrest and Salaries have been deposited.

d) In view of sufficient information from the suppliers regarding their status as SSI units the amount due to small scale Industrial Undertakings cannot be ascertained.

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Mar 31, 2011

A. CONTINGENT LIABILITIES:-

(not provided in the books of a/c)

a) Sales Tax demands under appeal amount to Rs.16.60 lacs ( Rs 16.60 lacs)

b) Excise duty demand under appeal Rs.414.15 lacs (Rs. 414.15 Lacs)

c) Non fulfilment of Export Obligation – Rs. Nil

(Rs. 1196.30 lacs) company got extension to fulfil the export obligation till 2016.

d) Electricity Tax On Electricity Bill Rs.13.10 lakhs (Rs.13.10 Lakhs)

e) Maintenance Charges Claim raised by the Pondicherry Industrial Promotion Development and Investment Corporation Ltd Rs.8.80 Lakhs (Rs.8.80 Lakhs)

f) Panchayat Tax Claim raised by Villianur Commune Pachayat Rs.10.55 Lakhs (Rs.10.55 Lakhs)

g) Interest and Damages on Provident Fund for Rs.14.31 Lakhs (Rs.14.31 Lakhs)

h) Employee State Insurance Demand for Rs.7.16 Lacs.

J. GENERAL

Tax Deducted at Source from the payment to the Contractors, Professional charges, Commission and Rent amounting to Rs.20,02,448/- has been deposited within due date (except some delay in some cases).

K. Balances under the head Sundry Creditors, Debtors, Loans and Advances are subject to confirmation.

L. NSC are under lien with Commercial Tax Authorities as Deposit.

M. In view of the insufficient information from the suppliers regarding their status as SSI units the amounts due to Small Scale Industrial Undertakings cannot be ascertained.

N. Previous Year's figures have been rearranged and regrouped wherever found necessary to confirm to current year figures.

Notes : Production of Skelp 11809 MTs and Black Pipe 6143 MTs being used for captive consumption for Black Pipe and GI Pipe respectively.

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Mar 31, 2010

A. CONTINGENT LIABILITIES:- (not provided in the books of a/c)

a) Sales Tax demands under appeal amount to Rs.16.60 lacs ( Rs 31.35 lacs)

b) Excise duty demand under appeal Rs.414.15 lacs (Rs. 445.74 Lacs)

c) Non fulfilment of Export Obligation – Rs.196.30 lacs (Rs. 111.089 lacs)

d) Electricity Tax On Electricity Bill Rs.13.10 lakhs( NIL)

e) Maintenance Charges Claim raised by the Pondicherry Industrial Promotion Development and Investment Corporation Ltd Rs.8.80 Lakhs (NIL)

f) Panchayat Tax Claim raised by Villianur Commune Pachayat Rs.10.55 Lakhs (NIL)

g) Interest and Damages on Provident Fund for Rs.14.31 Lakhs (NIL)

Additional information pursuant to the provision of 3,4C and 4D of part II of schedule VI of the Companies Act, 1956 to the extent applicable to the company.

H. REMUNERATION TO AUDITORS

As Audit fee Rs. 125,000/- (Rs.100,000/-)

Tax Audit Rs. 25,000/- (Rs.25,000/-)

IT Matters Rs.20,000/- (Rs.12,475/-)

Service Tax Rs.15,450/- (Rs.15,450/-)

I. BIFR has ordered for the winding up the company but an employee of the company has filed with the the hon’ble High Court of Madras for staying proces of winding up as ordered by BIFR which was granted by hon’ble High Court of Madras vide order dt. 19.12.2005

J. GENERAL

Tax Deducted at Source from the payment to the Contractors, Professional charges, Commission and Rent amounting to Rs.20,32,807/- has been deposited within due date (except some delay in some cases).

K. Balances under the head Sundry Creditors, Debtors, Loans and Advances are subject to confirmation.

L. NSC are under lien with Commercial Tax Authorities as Deposit.

M. In view of the insufficient information from the suppliers regarding their status as SSI units the amounts due to Small Scale Industrial Undertakings cannot be ascertained.

N. Previous Years figures have been rearranged and regrouped wherever found necessary to confirm to current year figures.

Notes : Production of Skelp 9489 MTs and Black Pipe 13429 MTs and 7301 MTs being used for captive con- sumption for Black Pipe and GI Pipe respectively.