Notes to Accounts of Metalyst Forgings Ltd.

Mar 31, 2023

Note No: 3.26.3 CONTINGENT LIABILITIES AND COMMITMENTS		(Rupees in Lakhs)
	For the Year Ended	For the Year Ended
Particulars	31.03.2023	31.03.2022
Export Obligation under EPCG Licence	3,204.69	3,204.69
Disputed Sales tax/VAT (Including Interest and penalty)	102.21	102.21
Disputed Excise Duty/Service Tax (I ncluding I nterest and penalty)	133.49	133.49
Disputed I ncome Tax & Others (I ncluding I nterest and penalty)	184.15	184.15
Total	3,624.54	3,624.54

For the purpose of the Company''s capital management, capital includes issued equity capital, share premium and all other equi ty reserves attributable to the equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. Company consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, return capital to shareholders or issue new shares.

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is inlcuded in Level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level.

The carrying amounts of trade receivables, trade payables and cash and cash equivalents are considered to be the same as their fair values, due to short term nature. The fair values for loans, investments in preference shares were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk. The fair values of noncurrent borrowings are based on discounted cash flows using a current borrowings rate. They are classsified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

8 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations and to support its operations. The Company''s financial assets include Investment, loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. Considering on going CIRP, quantum of these risk is not ascertainable.

9 Relationship with Struck off Companies

The Company does not have any Relationship with compannies struck off under section 248 of the Companies Act,

2013 or section 560 of Companies Act, 1956.

11 Previous year''s figures have been regrouped/ reclassified / rearranged wherever necessary, to conform to current year''s presentation.

Note No: 3.32 Other Statutory information

1. The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property under Benami Transactions (Prohibition) Act, 1988 (45of 1988).

2. The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

3. The Company does not have any charges or satisfaction yet to be registered with ROC beyond the statutory period.

4. The Company do not have any transactions with Crypto Currency or Virtual Currency where the Company has traded or invested in Crypto Currency or Virtual Currency during the year.

5. The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

6. The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) Directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) Provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

7. The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income-tax Act, 1961.

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Mar 31, 2018

1. Company Overview and Significant Accounting Policies

M/S Metalyst Forgings Limited (hereinafter referred to as MFL) was previously known as Ahmednagar Forging Limited. The change in the name of the company took on 07.05.2015. Ahmednagar Forging Limited started its operations in 1977 and it was primarily engaged in the manufacturing of high precision closed die steel forgings and auto components for the automotive, defence and railway, non-auto and tractor sectors. During the year 2002-03, the company was acquired by Amtek Auto Ltd, which is the largest manufacturer of connecting rod assemblies in the country since 1987. Their manufacturing facilities are located at Ahmednagar, Chakan, Kuruli, Aurangabad in Maharashtra and Baddi in Himachal Pradesh. Currently, MFL is the second largest manufacturer of forged automotive component in India. Its product portfolio consists of a range of components for 2/3 wheelers, Passenger Cars, Tractors, Light Commercial Vehicles (LCV), Heavy Commercial Vehicles (HCV) and Stationary Engines. The major customers of the Company are John Deere, Mahindra, Axles India, Bharat Gears, Daimler India, Escorts, Greaves Cotton, Harley Davidson Motor Company, Isuzu Motor India, Mahindra & Mahindra, Mannforce, Tata Motors, ACIL, Cummins India, Sandvik Asia, Turbo Gears India, BEML, Ordnance Factory and Kirloskar.

Company has its Registered Office at Gat No,- 614, Village Kuruli Tal. Khed Dist. Pune-410501 (Maharashtra) Their manufacturing facilities are located at Ahmednagar, Chakan, Kuruli, Aurangabad in Maharashtra and Baddi in Himachal Pradesh.

**During the period under review, the company has scrapped raw material inventory valued at Rs. 12,080.68 lakhs (Previous year Rs Nil), Work in Progress inventory valued at Rs. 18,356.37 Lakhs (Previous year 9,304.65 lakhs) on account of obsolescence of raw materials and work in progress and Rs 8,305.76 lakhs (Previous year of Rs. 7,569.86 lakhs) inventory of Moulds, Dies and spares were scrapped on account of obsolescence)

* Cash and cash equivalents, as on 31st March 2018, and 31st March 2017 includes restricted bank balances of Rs. 460.51 Lakhs, Rs. 1,704.91 Lakhs respectively. The restriction is primarily on account of cash and bank balances held as margin money deposited against guarantee/LC’s issued by bank and earmarked balances.

Note No: 2. Rights, preferences and restrictions attached to Shares

Equity Shares: The Company has Issued equity shares having a par value of Rs 10/- per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend, if proposed by the Board of Directors, is subjected to the approval of the shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity share held by the shareholders.

Preference Shares: The Company currently has Issued 0.1% non cumulative redeemable preference shares of Rs 10/- each. Preference shares will be redeemed after 18 years from the date of allotment at such premium as may be decided by the board of directors, subject to minimum equivalent to issue price.

The accounts of the Company in respective Banks has been declared as Non Performing Assets & the Company has gone into Corporate Insolvency Resolution Process (“CIRP”) vide order of the National Company Law Tribunal, Mumbai Bench (“NCLT”) dated 15th December, 2017 under the provisions of the Insolvency & Bankruptcy Code 2016 (Code).

*Since all term loans have become payable on demand in view of defaults in repayment of instalments/part of interest, entire term loan has been shown as current liablities.

**Provision made for interest on coupon rate for which contribution/debit advice not available.

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments. The fair value of all equity instruments which are traded in the stock exchanges is valued using the closing price as at the reporting period.

Level 2 : The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in Level 2.

Level 3 : If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level.

The carrying amounts of trade receivables, trade payables and cash and cash equivalents are considered to be the same as their fair values, due to short term nature. The fair values for loans, investments in preference shares where calculated based on cash flows discounted using a current lennding rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk. The fair values of non-current borrowings are based on discounted cash flows using a current borrowings rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk. For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

Note No. 3 Financial risk management objectives and policies:

The Company’s principal financial liabilities comprise loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to support its operations. The Company’s financial assets include investment, loans, trade and other receivables, and cash & cash equivalents that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. Considering on going CIRP, quantum of these risk is not ascertainable.

Note No: 4

The Previous period figures have been regrouped / reclassified, wherever considered necessary to conform to the current year presentation.

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Mar 31, 2016

Note No: 1. NOTES TO ACCOUNTS

The Previous Year figures have been regrouped / reclassified, wherever considered necessary to conform to the current period presentation.

Note No: 2. Rights, preferences and restrictions attached to Shares

Equity Shares: Each shareholder is eligible to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend, if proposed by the Board of Directors, is subject to the approval of the shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive the 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.

Preference Shares: Preference shares will be redeemed at the end of five years from the date of allotment with a clause of extension with mutual consent of both the parties.

Particulars of Security

Term Debts from Financial Institutions/Banks are secured by way of mortgage of company''s all Immovable Properties ranking pari passu interse and hypothecation of whole of the Company''s Movable Properties including Plant & Machinery, Machinery spares, tools and accessories and personal guarantee of one of the Directors of the Company.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Particulars of Security

Working Capital facilities are secured by hypothecation of raw material, semi-finished goods/stock-in-process, consumable stores and book debts of the company.

*The company is presently covered under corrective action plan (CAP) approved by joint lenders'' forum (JLF) formed by the lenders to ease the cash flow mismatch by realigning/rescheduling the existing debt of the company for a longer duration. Had the tenets of the scheme been applied to the current financials, the figure of current maturity and installment due but not paid, would have been Rs. 35,583.64 lacs and Rs. 19,024.92 lacs instead of Rs 44,584.65 Lacs & Rs 30687.24 Lacs resp.

*Other liabilities includes capital goods creditors, other short terms liabilities and statutory dues.

"During the period under review, additional Depreciation has been charged on account of review of residual useful life of certain items of Plant and Machinery. This has been done keeping in view the internal assessment done by the technical team of the company. (Previous year: Additional depreciation was on account of transition due to changes in the Companies Act provisions.)

*Market Value Of Grapco Mining & Co. Ltd, Good Value Marketing Ltd and Global Infrastructure & Technologies Ltd. are not available.

Note: Out of the above shares 5,71,43,000 Equity Shares have been pledged to Banks as additional security.

* See Note No. 1, Clause "E" for Accounting policy on valuation of Inventories.

**During the period under review, the company has scrapped work in progress inventory valued at Rs. 12,607.87 Lacs (Previous year Nil) on account of obsolescence

The Company has also scrapped certain moulds/dies and spares on account of obsolescence the amount being Rs. 5,403.38 lacs. (Previous year nil)

Note No: 3. EMPLOYEE BENEFITS (AS-15 REVISED)

The following data are based on the report of the actuary

Note No: 4.

Previous year figures being for 12 months are not comparable with the figures of current period.

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Sep 30, 2015

The Previous Year figures have been regrouped / reclassified, wherever considered necessary to conform to the current year's presentation.

Note No: 1. Rights, preferences and restrictions attached to Shares

Equity Shares: The Company currently has Issued equity shares having a par value of Rs 10/- per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend, if proposed by the Board of Directors, is subject to the approval of the shareholders in the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive the 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.

Preference Shares: During the year company has issued 0.1% non cummulative redeemable preference shares of Rs 10/- each. Preference shares will be redeemed at the end of five years from the date of allotment with a clause of extension with mutual consent of both the parties.

Particulars of Security

Term Debts from Financial Institutions/Banks are secured by way of first mortgage of company's all Immovable Properties ranking pari passu interse and hypothecation of whole of the Company's Movable Properties including Plant & Machinery, Machinery spares, tools and accessories and personal guarantee of one of the Directors of the Company.

Maturity Profile:

A) Term Loans from Banks and financial Institutions are within the interest band of 1% to 2.50% over and above the base rate and are repayable in quarterly installments up to the financial year 2024-2025.

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Sep 30, 2014

The Previous period figures have been regrouped / reclassified, wherever considered necessary to conform to the current year''s presentation.

Note No: 2.1.3 There is no restriction on distribution of dividends and repayment of Capital.

Particulars of Security

Term Debts from Financial Institutions/Banks are secured by way of first mortgage of company''s all Immovable Properties ranking pari passu interse and hypothecation of whole of the Company''s Movable Properties including Plant & Machinery, Machinery spares, tools and accessories (save and except book debts) present and future, subject to prior charges created/ to be created in favour of the company''s bankers on inventories,book debts.

Interest Rate of External Commercial Borrowing is LIBOR 3%

There is no default in repayment of loans and payment of interest as on Balance sheet date.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

* Cash and cash equivalents, as on 30th September 2014 and 30th September 2013 includes restricted bank balances of Rs. 529.76 Lacs and Rs. 888.57 Lacs respectively. The restriction is primarily on account of cash and bank balances held as margin money deposited against guarantee/LC''s issued by bank and Earmarked Balances.

Note No. 2.33

Previous period figures being for 15 months are not comparable with the figures of current year.

Note No. 2.34

Related Party Disclosures & Transactions

As per AS-18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said standard are disclosed below:

A) Names of related parties & description of relationship

1) Holding: 1) Amtek Auto Ltd.

2) Subsidiaries of the Holding Company

1) Amtek Deutshland GmbH

2) Amtek Investment UK Ltd.

3) Amtek Germany Holding GP GmBH

4) Amtek Germany Holding GmBH & Co. KG

5) Amtek Holding BV

6) Amtek Global Technologies Pte. Ltd.

7) Amtek Transportation Systems Ltd.

8) Alliance Hydro Power Ltd.

9) Amtek India Limited

10) Amtek Defence Technologies Ltd.

11) JMT Auto Limited

3) Subsidiaries of Subsidiaries of the Holding Company

1) Amtek Tekfor Holding GmbH

2) Neumayer Tekfor GmbH

3) Tekfor Services GmbH

4) Neumayer Tekfor Rotenburg GmbH

5) Neumayer Tekfor Schmolln GmbH

6) Neumayer Tekfor Engineering GmbH

7) GfsV

8) Neumayer Tekfor Japan Co. Ltd.

9) Tekfor Inc.

10) Tekfor Maxico SA de CV

11) Neumayer Tekfor Automotive Brasil Ltda.

12) Neumayer Tekfor SpA

13) Tekfor Maxico Services

14) Tekfor Services Inc.

15) Amtek Powertrain Components B.V.

16) Amtek Powertrain RUS LLC

17) Amertec Systems Pvt. Ltd.

18) Amtek Kuepper GmbH

19) August Kupper GmbH

20) H.J Kupper System- Und Modultechnik GmbH

21) H.J Kupper Metallbearbeitung GmbH

22) SKD- GieBerei GMBH

23) Kupper Hungaria Kft

4) Associates of the Holding Company

1) ARGL Ltd. (Formerly known as Amtek Ring Gears Ltd.)

2) ACIL Ltd. (Formerly known as Amtek Crankshafts India Ltd.)

3) Amtek Tekfor Automotive Ltd.

5) Joint Venture of Holding Co.

1) MPT Amtek Automotive (India) Ltd.

2) SMI Amtek Crankshafts Pvt. Ltd.

6) Associates of Subsidiaries of the Holding Company

1) Amtek Railcar Pvt. Ltd.

2) Terrasoft Infosystems Pvt. Ltd.

7) Joint Venture of Subsidiary of the Holding Company

1) SFE GmbH

8) Key Management Personnel

1) Shri S. Rajagopalan

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Sep 30, 2013

Note No: 1 NOTES TO ACCOUNTS

The Previous period figures have been regrouped / reclassified, wherever considered necessary to conform to the current year''s presentation.

Particulars of Security

Term Debts from Financial Institutions/Banks are secured by way of first mortgage of company''s all Immovable Properties ranking pari passu interse and hypothecation of whole of the Company''s Movable Properties including Plant & Machinery, Machinery spares, tools and accessories (save and except book debts) present and future, subject to prior charges created/ to be created in favour of the company''s bankers on inventories,book debts.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Particulars of Security

Working Capital facilities are secured by hypothecation of raw material, semi-finished goods/stock-in-process, consumable stores and book debts of the company.

Note No: 1.2 CONTINGENT LIABILITIES (Rupees In Lacs)

Particulars As At As At 30.09.2013 30.06.2012

Disputed Statutory Dues in respect of Excise Duty/Income Tax/ Service Tax/Sales Tax/VAT/ Entry Tax etc.(Including Interest & Penalty) 367.28 127.17

Bank Guarantees issued by bank on company''s behalf 393.05 132.45

Unexpired Letter of credit issued by bank on company''s behalf 400.61 29.77

Total 1,160.94 289.39

*Contingent Assets are neither recognised nor disclosed.

Note No. 1.3

Related Party Disclosures & Transactions

As per AS-18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said tandard are disclosed below:

A) Names of related parties & description of relationship

1) Holding: 1) Amtek Auto Ltd.

2) Subsidiaries

1) Amtek Deutshland GmbH

2) Amtek Investment UK Ltd.

3) Amtek Germany Holding GP GmBH

4) Amtek Germany Holding GmBH & Co. KG

5) Amtek Holding BV

6) Amtek Global Technologies Pte. Ltd.

7) Amtek Transportation Systems Ltd.

8) Alliance Hydro Power Ltd.

9) Amtek India Limited

10) Amtek Defence Technologies Ltd.

11) JMT Auto Limited

3) Subsidiaries of Subsidiaries of the Holding Company

1) Amtek Tekfor Holding GmbH

2) Neumayer Tekfor GmbH

3) Tekfor Services GmbH

4) Neumayer Tekfor Rotenburg GmbH

5) Neumayer Tekfor Schmolln GmbH

6) Neumayer Tekfor Engineering GmbH

7) GfsV

8) Neumayer Tekfor Japan Co. Ltd.

9) Tekfor Inc.

10) Tekfor Maxico SA de CV

11) Neumayer Tekfor Automotive Brasil Ltda.

12) Neumayer Tekfor SpA

13) Tekfor Maxico Services

14) Tekfor Services Inc.

15) SFE GmbH

16) Amtek Powertrain Components B.V.

17) Amtek Powertrain RUS LLC

18) Amertec Systems Pvt. Ltd

4) Associates of the Holding Company

1) ARGL Ltd. (Formerly known as Amtek Ring Gears Ltd.)

2) ACIL Ltd. (Formerly known as Amtek Crankshafts India Ltd.)

5) Joint Venture of Holding Co.

1) Amtek Tekfor Automotive Ltd.

2) MPT Amtek Automotive (India) Ltd.

3) SMI Amtek Crankshafts Pvt. Ltd.

6) Joint Venture''s of Subsidiaries of the Holding Company

1) Amtek Railcar Pvt. Ltd.

7) Key Management Personnel

1) Shri S. Rajagopalan

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Jun 30, 2010

1. Schedule 1 to 11 form an integral part of the Balance Sheet and Profit & Loss Account.

2. Contingent Liabilities: (Rs. in Lacs)

Current Year Previous Year 30.06.2010 30.06.2009

a) Estimated amount of contracts 151.15 557.80 remaining to be executed on Capital Account and not provided for

b) Unexpired Letters of Credit 59.24 81.62

c) Disputed Statutory Dues in respect of Excise Duty/Service Tax 134.87 134.87

"Contingent Assets are neither recognized, nor disclosed

3. In the opinion of the Board of Directors, the current assets and loans and advances If, realized in the ordinary course of business, would be realised at least equal to the the amounts at which they have been stated in the Balance Sheet. Provision for all known liabilities have been made in the books of accounts.

4. The Company is primarily focused on manufacturing Steel Forgings. Therefore, there are no separate segments within the Company as defined by Accounting Standard 17 (Segment Reporting ), issued by the Institute of Chartered Accountants of India and hence, the same is not reported

5. Other liabilities under current liabilities include amount recovered from customers on account of CST/VAT/ Surcharge, but not deposited, as the Company had been issued an eligibility certificate for Sales Tax deferment under the Maharashtra Sales Tax Act, 1959 and HP Sales Tax Act.

6. Maximum amount outstanding at any time during the year due from / due to directors is Rs.Nil. (Previous year Rs. Nil.).

7. Confirmation of Balances in respect of some of debtors/creditors accounts as at 30th June, 2010 are yet to be received as at the date of the Auditor report.

8. (a) Sundry Creditors include a Sum of Rs.26.83 lacs (Previous Year Rs 48.69 lacs) due to Small & Medium Enterprises.

(b) The List of SMEs to whom Company owes a sum exceeding Rs.1,00,000 and which is outstanding for more than 30 days is as under:-

Ray Heat Treatment, Universal Engg. & Mfg. Industries & Shree Krishna Safety Products Pvt. Ltd etc.

(c) The Payments to SMEs have been made as per stipulated terms.

(d) The above information has been compiled in respect of parties to the extent to which they could be identified as SMEs on the basis of information available with the Company.

9. Market Value of the Quoted investments as on 30.06.2010 Sanghvi Movers Ltd. Rs. 191.15 Per Share (Aggregate value of Rs.6.69 lacs)

Dena Bank Rs. 93.05 Per Share (Aggregate value of Rs.6.53 lacs)

Market value of Grapco Mining & Co. Ltd, Good Value marketing Ltd, and Global Infrastructure & Technologies Ltd - Not Available

10. The Company, during the year, has allotted 18,30,000 equity shares of Rs.10/- each at premium of Rs.37/- per share against 18,30,000 warrants issued by it in the earlier years to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

11. RETIREMENT BENEFITS

Effective from financial year 2007-08, the Company has implemented Accounting Standard (AS)-15 (Revised -2005) dealing with Employees Benefits, issued by the Institute of Chartered Accountants of India. AS-15 (Revised-2005) deals with recognition, measurement and disclosure of short term, post employment, termination and other long term employee benefits provided by the Company.

The Company has various Schemes of retirement benefits schemes such as Provident Fund, Gratuity and Earned Leaves.

12. RETIREMENT BENEFITS

1) Post Employment Benefit Plans:

Payments to defined contribution retirement benefit schemes is charged as an expense as they fall due.

For defined benefit schemes, the cost of providing benefits is determined using Projected Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet date. Actuarial gain & losses are recognised in full in the profit & loss account for the period in which they occur. Past service cost is recognized to the extent the benefits are already vested, and otherwise is amortised on a Straight line Method over the average period until the benefits become vested.

The retirement benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as adjusted for unrecognized past service cost, and as reduced by the fair value of available refunds and reductions in future contributions to the scheme.

a) Defined Benefit plan:

i) Gratuity Plan & Leave Encashment Plan

The Company, in accordance with AS-15 (Revised) ir
13. Related party Disclosures & transactions:

As per Accounting Standard AS -18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said standard are disclosed below :-

A) Names of related parties and description of relationship"

1) Holding: 1) Amtek Auto Ltd.

2) Subsidiary of Holding Co. 1) Amtek Crank Shafts India Ltd.

2) Amtek Deutschland GmbH

3) Amtek Investment UK Ltd.

4) Amtek Investmentlnc. US

5) Smith Jones Inc.

6) Amtek Ring Gears Ltd.

7) Amtek Transportation Systems Ltd.

8) Alliance Hydro Power Ltd.

3) Joint Venture of Holding Co. 1) Amtek Tekfor Automotive Ltd.

2) MPT Amtek Automotive (India) Ltd.

3) SMI Amtek Crankshafts Pvt. Ltd.

4) Associate 1) Amtek India Ltd. & it subsidiary

5) Key Management Personnel 1) Shri Arvind Dham

2) Shri S. Rajagopalan

14. Export sales include sale in transit to its overseas customers acknowledged in subsequent Year, indirect export / deemed export.

15. Details ot units manufactured, material consumed and sales include component bought and sold.

16. Previous years figures have been regrouped, rearranged and recasted wherever considered necessary.

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Jun 30, 2009

1. Schedule 1 to 11 form an integral part of the Balance Sheet and Profit & Loss Account.

2. Contingent Liabilities: (Rs. in Lacs)

Current Year Previous Year

a) Estimated amount of contracts 557.80 502.30 remaining to be executed on Capital Account and not provided for

b) Unexpired Letters of Credit 81.62 118.85

c) Disputed Statutory Dues in respect of Excise Duty/Service Tax 134.87 69.24

*Contingent Assets are neither recognized, nor disclosed

3. In the opinion of the Board of Directors, the current assets and loans and advances If, realized in the ordinary course of business, would be realised at least equal to the the amounts at which they have been stated in the Balance Sheet. Provision for all known liabilities have been made in the books of accounts.

4. The company is primarily focused on manufacturing Steel Forgings. Therefore, there are no separate segments within the company as defined by Accounting Standard 17 (Segment Reporting ), issued by the Institute of Chartered Accountants of India and hence, the same is not reported.

5. Other liabilities under current liabilities include amount recovered from customers on account of CST/VAT/ Surcharge, but not deposited, as the company had been issued an eligibility certificate for Sales Tax deferment under the Maharashtra Sales Tax Act, 1959 and HP Sales Tax Act.

6. Maximum amount outstanding at any time during the year due from / due to directors is Rs.Nil. (Previous year Rs. Nil.).

7. Confirmation of Balances in some of debtors and creditors accounts as at 30th June 2009 are yet to be received as at the date of the Auditor report.

8. (a) Sundry Creditors include a Sum of Rs 48.69 Lacs (Previous Year Rs 57.58) due to Small & Medium Enterprises.

(b) The List of SMEs to whom company owes a sum exceeding Rs.1,00,000 and which is outstanding for more than 30 days is as under:- Ray Heat Treatment, Universal Engg. & Mfg. Industries & Shree Krishna Safety Products Pvt. Ltd etc.

(c) The Payments to SMEs have been made as per stipulated terms.

(d) The above information has been compiled in respect of parties to the extent to which they could be identified as SMEs on the basis of information available with the company.

9. During the year, the company, in view of non receipt of balance amount, has forfeited a sum of Rs.912.00 lacs received by it in earlier years against allotment of 38,00,000 warrants (carrying option/ entitlement to subscribe to one no of equity share of Rs.10/- each at a premium of Rs.230/- per share) to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956.

10. The company, during the year has received application money of Rs. 215.03 Lacs against issue of 18,30,000 warrants (carrying option/ entitlement to subscribe to one no of equity share of Rs.10/- each at a premium of Rs.37/- per share on or before 23th October 2010) to parties and companies covered in the register maintained under section 301 of the Companies Act, 1956. The subject warrants were issued & allotted on 8th July 2009.

11. RETIREMENT BENEFITS

Effective from financial year 2007-08, the company implemented Accounting Standard (AS)-15 (Revised- 2005) dealing with Employees Benefits, issued by the Institute of Chartered Accountants of India. AS-15 (Revised 2005) deals with recognition, measurement and disclosure of short term, post employment, termination and other long term employee benefits provided by the company.

The Company has various Schemes of retirement benefits schemes such as Provident Fund, Gratuity and Earned Leaves.

1) Post Employment Benefit Plans:

Payments to defined contribution retirement benefit schemes is charged as an expense as they fall due.

For defined benefit schemes, the cost of providing benefits is determined using Projected Unit Credit Method, with actuarial valuation being carried out at each Balance Sheet date. Actuarial gain & losses are recognised in full in the profit & loss account for the period in which they occur. Past service cost is recognized to the extent the benefits are already vested, and otherwise is amortised on a Straight line Method over the average period until the benefits become vested.

The retirement benefit obligations recognized in the Balance Sheet represent the present value of the defined benefit obligations as adjusted for unrecognized past service cost, and as reduced by the fair value of available refunds and reductions in future contributions to the scheme.

a) Defined Benefit plan:

i) Gratuity Plan

The Company makes annual contribution to the Employees Group Gratuity Scheme of the Life Insurance Corporation of India, a funded defined benefit plan for qualifying employees. The Scheme provided for lump sum payment to vested employees at retirement, death while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of 6 months. Vesting occurs upon completion of 5 years of service.

ii) Leave Encashment Plan

The company, pursuant to adoption of Accounting Standard -15 (Revised) has made the provision on projected unit cost method.

12. Related party Disclosures & transactions:

As per Accounting Standard AS -18 issued by the Institute of Chartered Accountants of India, related parties in terms of the said standard are disclosed below :- A) Names of related parties and description of relationship”

1) Holding: 1) Amtek Auto Ltd.

2) Subsidiary of Holding Co. 1) Amtek Crank Shafts India Ltd.

2) Amtek Deutschland GmbH

3) Amtek Investment UK Ltd.

4) Amtek Investment US(1) Inc.

5) Smith Jones Inc.

6) Amtek Ring Gears Ltd.

3) Joint Venture of Holding Co. 1) Amtek Tekfor Automotive Ltd.

2) MPT Amtek Automotive India Ltd.

4) Associate 1) Amtek India Ltd.

5) Key Management Personnel 1) Shri Arvind Dham

2) Shri S. Rajagopalan

13. Export sales include sale in transit to its overseas customers acknowledged in subsequent year, indirect export/deemed export.

14. Details of units manufactured, material consumed and sales include component bought and sold.

15. Previous years figures have been regrouped and rearranged wherever necessary.