Notes to Accounts of Nagpur Power & Industries Ltd.

Mar 31, 2023

Provisions and contingent liabilities Provisions

A Provision is recorded when the Company has a present obligation (legal or constructive) as a result of past
events, it is probable that an outflow of resources will be required to settle the obligation and the amount can be
reasonably estimated.

Contingent liabilities:

Whenever there is possible obligation that arises from past events and whose existence will be confirmed only
by the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the
entity or a present obligation that arises from past events but is not recognised because (a) it is not probable that
an outflow of resources embodying economic benefits will be required to settle the obligation; or (b) the amount
of the obligation cannot be measured with sufficient reliability are considered as contingent liability. Show cause
notices are not considered as Contingent Liabilities unless converted into demand.

Contingent Assets:

Contingent assets are not recognised in the standalone financial statements since this may result in recognition
of income that may never be realized. However, when the realization of income is virtually certain, then the
related assets is not a contingent asset and is recognised.

23.Investment in Subsidiaries

The investments in subsidiaries are carried in these standalone financial statements at historical cost except
when the investment, or a portion thereof, is classified as held for sale, in which case it is accounted for as non¬
current assets held for sale and discontinued operations.

When the Company is committed to a sale plan involving disposal of an investment, or a portion of an
investment, in a subsidiary, the investment or the portion of the investment that will be disposed of is classified
as held for sale when the criteria described above are met.

Any retained portion of an investment in a Subsidiary that has not been classified as held for sale continues to be
accounted for at historical cost.

24.Financial InstrumentsInitial Recognition and Measurement:

Financial assets (other than trade receivables) and financial liabilities are recognized when the Company
becomes a party to the contractual provisions of the financial instrument and are measured initially at fair value
adjusted for transaction costs, except for those carried at fair value through Statement of Profit and Loss which
are measured initially at fair value.

Trade receivables are recognised at their transaction value as the same do not contain significant financing
component.

Trade payable is in respect of the amount due on account of goods purchased in the normal course of business.
They are recognised at their transaction and services availed value as the same do not contain significant
financing component.

Classification and Subsequent Measurement:

Financial Assets:

The Company classifies financial assets as subsequently measured at amortised cost, fair value through other
comprehensive income (FVTOCI) or fair value through profit or loss (FVTPL) on the basis of both

(a) Business model for managing the financial assets, and

(b) The contractual cash flow characteristics of the financial asset

A Financial Asset is measured at amortised cost if both of the following conditions are met:

(i) the financial asset is held within a business model whose objective is to hold financial assets in order to
collect contractual cash flows, and

(ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

A financial asset is measured at fair value through Other Comprehensive Income (FVTOCI) if both of the
following conditions are met:

(i) the financial asset is held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets, and

(ii) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely
payments of principal and interest on the principal amount outstanding.

A Financial Asset shall be classified and measured at fair value through profit or loss (FVTPL) unless it is
measured at amortised cost or at fair value through OCI (FVTOCI). All recognised financial assets are
subsequently measured in their entirety at either amortised cost or fair value, depending on the classification of
the financial assets.

Equity Investments:

Equity investments in Subsidiaries and Associates are out of scope of Ind AS 109 and hence, the Company has
accounted for its investment in Subsidiaries at cost. All other equity investments are measured at fair value.
Equity instruments, which are held for trading are classified as at FVTPL. For equity instruments other than held
for trading, the company has exercised irrevocable option to recognise in other comprehensive income
subsequent changes in the fair value.

Derecognition of financial assets:

The Company derecognize a financial asset when the contractual rights to the cash flows from the asset expire,
or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to
another party. If the Company neither transfers nor retains substantially all the risks and rewards of ownership
and continues to control the transferred asset, the Company recognises its retained interest in the asset and an
associated liability for amounts it may have to pay. If the Company retains substantially all the risks and rewards
of ownership of a transferred financial asset, the Company continues to recognise the financial asset and also
recognises an associated liability.

On derecognition of a financial asset, the difference between the asset’s carrying amount and the sum of the
consideration received and receivable and the cumulative gain or loss that had been recognised in other
comprehensive income and accumulated in equity is recognised in the Statement of profit and loss.

Financial Liabilities and Equity Instruments
Classification as Debt or Equity:

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an
equity instrument.

Equity instruments:

An equity instrument is any contract that evidences a residual interest in the assets of the Company after
deducting all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds
received, net of direct issue costs.

Financial liabilities:

Financial liabilities are classified, at initial recognition:

• at fair value through Profit or Loss,

• Loans and borrowings, Payables, or

• as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and in the case of loans and borrowings and payables,
they are recognised net of directly attributable transaction costs. The Company’s financial liabilities include trade
and other payables, loans and borrowings, including bank overdrafts, financial guarantee contracts and
derivative financial instruments.

Subsequent Measurement:

The measurement of financial liabilities depends on their classification, as described below:

Financial Liabilities at FVTPL:

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities designated upon
initial recognition as at FVTPL. Financial liabilities are classified as held for trading, if they are incurred for the
purpose of repurchasing in the near term. This category also includes derivative financial instruments entered
into by the company that are not designated as hedging instruments in hedge relationships as defined by Ind AS
109. Separated embedded derivatives are also classified as held for trading unless they are designated as
effective hedging instruments.

Gains or losses on liabilities held for trading are recognised in the statement of profit and loss.

Financial liabilities designated upon initial recognition at FVTPL are designated as such at the initial date of
recognition, and only if the criteria in IND AS 109 are satisfied.

Loans and Borrowings:

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost
using the Effective Interest Rate (EIR) method. Gains and losses are recognised in the Statement of Profit and
Loss when the liabilities are derecognised as well as through the EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that
are an integral part of the EIR. The EIR amortisation is included as finance costs in the Statement of Profit and
Loss.

Derecognition of Financial Liabilities:

The Company de-recognises financial liabilities when and only when, the Company’s obligations are discharged,
cancelled or have expired. The difference between the carrying amount of the financial liability de-recognised

and the consideration paid and payable is recognised in the statement of profit and loss.

25.Earnings per share

Basic earnings per share are calculated by dividing the Net Profit or Loss for the period attributable to equity
shareholders by the weighted average number of equity shares outstanding during the period.

For the purpose of calculating diluted earnings per share, the Net Profit or Loss for the period attributable to
equity shareholders and the weighted average number of shares outstanding during the period are considered
for the effects of all dilutive potential equity shares.

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Mar 31, 2018

* Out of which documents relating to claim of Rs. 6.27 lacs are currently not available with the Company.

** Out of which documents relating to claim of Rs. 30.61 lacs are currently not available with the Company.

Note:

In respect of Item no. (a) (i) above, the Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. Future cash outflow on (a) (i) & (ii) above is determinable only on the receipt of judgement / decision pending with respecitve authorties / department / Hon’ble court and or completion of negotiations / settlement.

Note - 1

Provision for employee benefits

(i) Gratuity

The Company contributes to defined benefit schemes for Grautity which is administrated through duly constituted and approved independent trust. The liability for Gratuity and Leave encashment is determind on the basis of actuarial valuation made at the year end.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit (PUC) Method as prescribed by the Ind AS-19 - ‘Employee Benefits’, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measure each unit seperately to build up final obligation.

(ii) Compensated Absences/Leave Encashment:

The Company also extends defined plans in the form of Compensated absences/leave encashment to employees. Provisions for compensated absences is made on acturial valuation basis.

The company is exposed to various risks as regards its obligation towards gratuity benefit and leave salary which are as follows: (i) Interest Rate Risk, (ii) Liquidity Risk, (iii) Salary Escalation Risk, (iv) Regulatory Risk, (vii) Market Risk and (viii)

Investment Risk

Note - 2

Financial Instruments : Fair values Measurement (A) Accounting Classification and Fair Value Hierarchy

Carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy, are presented below. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments:Level 1: Inputs are quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date;Level 2: Inputs other than quoted prices included within level 1, that are observable for the asset or liability, either directly or indirectly; andLevel 3: If one or more significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity instruments and certain debt instruments which are valued using assumptions from market participants.

Set out below, is a comparison by category of the carrying amounts and fair value of the Company’s financial instruments.

Key Inputs:

i Listed Equity Investments (other than Subsidiaries, Joint Ventures and Associates): Quoted Bid Price on Stock Exchange (Level 1)

ii Mutual Funds: Based on Net Asset Value of the Scheme (Level 2)

iii The management assessed that fair value of cash and bank balances, trade receivables, loans, trade payables, borrowings, other financial assets and liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

iv. During the reporting period ending 31st March, 2018 and 31st March, 2017, there was no transfer between Level 1 and Level 2 fair value measurement.

Note - 3

Financial Instruments : Financial Risk Management

The Company’s activities exposes it to various risk such as market risk, liquidity risk and credit risks. This section explains the risks which the Company is exposed to and how it manages the risks.

The Board of Directors (‘Board’) oversee the management of these risks through its Risk Management Committee. The Company’s Risk Management Policy has been formulated by the Risk Management Committee and approved by the Board. The Policy articulates on the Company’s approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It also prescribes the roles and responsibilities of the Company’s management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate risks in order to minimize potential adverse effects on the Company’s financial performance.

The Board of Directors reviews and agrees on policies for managing each of these risks, which are summarized below. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

1 Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivable from customers and loans and advances. The carrying amount of following financial assets represents the maximum credit exposure:

(i) Trade receivables

Exposure to credit risk is influenced mainly by the individual characteristics of each customer in which it operates. Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

However Company is providing credit period of 15 days only to some specific customers and in other case, Company has collecting advance against sales. Therefore on reporting date all debtors were realised. Accordingly, requirement of provision is not arrised.

(ii) Financial assets other than trade receivables

Credit risk from balances with banks and financial institutions is managed by the CFO in accordance with it’s policy. Surplus funds are parked only within approved investment categories . Investment category is periodically reviewed by the Company’s Board of Directors.

The Company held cash and cash equivalents of Rs. 3.71 Lakhs as on 31st March, 2018 (Previous year ‘ Rs. 3.88 Lakhs). The cash and cash equivalent’s are held with bank counterparties with good credit ratings.

2 Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damages to the Company’s reputation.

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

Company’s surplus funds are more than to total borrowings outstanding as on 31st March, 2018. Hence, the liquidity risk is very low.

3 Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company’s income or the value of its holdings of financial instruments.Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.Management exposed to market risk primarily related to the market value of investments and interest rate risk. Thus, our exposure to market risk is function of investing and borrowing activities only.

4 Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing investments because of fluctuations in interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing investments will fluctuate because of fluctuations in interest rates.

Exposure to interest rate risk

Company’s interest rate risk arises from borrowings. The interest rate profile the Company’s interest bearing financial instruments as reported to the management of the Company

Capital Management

For the purpose of the Company’s capital management, capital includes issued capital and other equity reserves. The primary objective of the Company’s Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Notes:

(a) The Company does not have and exhaustive list of business or professions in which relatives of directors of the Company have substantial interest. As such, payments made to any such persons, if any have note been identified. This management representation has been relied upon by the Auditor’s.

(b) No amounts have been written off / provided for or written back during the year in respect of debts due from or to related parties.

Note - 4

First time adoption of Ind AS

These financial statements for the year ended 31st March, 2018 are the first financial statements the Company has prepared in accordance with Ind AS. For all periods up to and including the year ended 31 March 2017, the Company had prepared its financial statements in accordance with the accounting standards notified under Section 133 of the Companies Act 2013 read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (‘Previous GAAP’).

The adoption of Ind AS has been carried out in accordance with Ind AS 101, First-time Adoption of Indian Accounting Standards. Accordingly, the Company has prepared financial statements which comply with Ind AS for year ended 31st March, 2018, together with the comparative information as at and for the year ended 31st March, 2017 and the opening Ind AS Balance Sheet as at 1st April, 2016, the date of transition to Ind AS

In preparing these Ind AS financial statements, the Company has availed certain exemptions and exceptions in accordance with Ind AS 101, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and Previous GAAP have been recognised directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its Previous GAAP financial statements, including the Balance Sheet as at 1st April, 2016 and the financial statements as at and for the year ended 31st March, 2017.

(I) Mandatory Exceptions and Optional Exceptions availed:

IND AS 101 permits first time adopters certain exemptions from retrospective application of certain requirements under Ind AS. The Company has elected to apply the following optional exemptions and mandatory exemption under Ind AS 101:

i Estimates

On assessment of the estimates made under the Previous GAAP financial statements, the Company has concluded that there is no necessity to revise the estimates under Ind AS, as there is no objective evidence of an error in those estimates. However, estimates that were required under Ind AS but not required under Previous GAAP are made by the Company for the relevant reporting dates reflecting conditions existing as at that date.

ii Classification and Measurement of Financial Assets:

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind AS.

iii Fair Value of Financials Assets and Liabilities:

As per Ind AS exemption, the Company has not fair valued the financial assets and liabilities retrospectively and has measured the same prospectively.

iv Current Borrowing:

The Company has used its Previous GAAP carrying amount of the loan at the date of transition to Ind AS as the carrying amount of the loan in the opening Ind AS Balance Sheet.

v Investments in Subsidiary:

The Company has elected to measure its investments in subsidiary the Previous GAAP carrying amount as its deemed cost on the date of transition to Ind AS.

vi Deemed Cost for Property, Plant and Equipment and Intangible Assets:

The Company has elected to measure all of its property, plant and equipment and intangible assets recognised as of 1st April, 2016 (the transition date), measured as per the Previous GAAP and use that carrying value as its deemed cost as of the transition date under Ind AS.

(II) Notes to Reconciliations

i Fair value of Non-current Investments i.e. Equity Instruments, other than Investment in Subsidaries and Associates:

Under Previous GAAP, long-term investments were measured at cost less diminution in value other than temporary. Under Ind AS, these financial assets have been classified as fair value through Other Comprehensive Income (FVTOCI). On the date of transition to Ind AS, these financial assets have been measure at their fair value which is higher than the cost as per the previous GAAP. Therefore carrying amount of non-current investment in equity instruments (other than investment in subsidiaries, joint venture and associates) are increase by Rs. 289 Lacs and recoginesed as gain in Other Comprehensive Income Reserve.These chages do not effect profit / loss before tax for the year ended 31st March, 2017 because the investments have been classified as FVTOCI.

ii Other Comprehensive Income (OCI):

Under Previous GAAP, there was not concept of OCI. Under Ind AS, fair valuation of Equity Investments not held for trade (other than subisidiaries) and re-measurement of defined benefit plan liability are recognised in OCI.

iii Excise Duty:

Under Previous GAAP, revenue from sale of produts was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of products is inclusive of excise duty. Accordingly, Excise duty has been included in the cost of production, as it is a liability of the manufacturer, irrespective of whether the goods are sold or not.

iv Defined Benefit Obligation:

Under Previous GAAP, the actuarial gain / (loss) of defined benefit plans had been recognised in Statement of Profit and Loss. Under Ind AS, the remeasurement loss on net defined benefit plans for the year ended March, 2017 amounting to Rs. 2.94 Lacs is recognised in Other Comprehensive Income net of tax.

(III) Disclosures as required by Indian Accounting Statndards (Ind AS) 101 First Time Adoption of Indian Accounting Standards

The following reconciliations provide the explanations and qualification of the differences arising from the transition from Previous GAAP to Ind AS in accordance with Ind AS 101:

i Effect of Ind AS adoption on the Balance Sheet as at 31st March, 2017 and 1st April, 2016

ii Effect of Ind As adoption on the Statement of Profit and Loss for the year ended 31st March, 2017

iii Reconciliation of Equity as at 31st March, 2017

iv Reconciliation of Total Comprehensive Income for the year ended 31st March, 2017

v Effect of Ind AS adoption on the Cash Flow Statement for the year ended 31st March, 2017

Note - 5

Additional Information Details :

1 The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company’s holding in excess of the ceiling prescribed under the said Act and the application for exemption filed under section 20 of the said act, to retain these lands are under consideration of the concerned authorities.

2 The Company has only one reportable segment of activity namely manufacture of “High/Medium / Low Carbon Ferro Manganese and Silico Manganese Slag”.

3 Deferred tax assets for unused tax loss carry forward or unused tax credit if, and only if, it is considered probable that there will be sufficient future taxable profit against which the loss or credit carry forwards can be utilised.However In the opinion of the management, there is no future probability of taxable profit in near future foreseeable.

4 Previous GAAP figures have been regrouped / reclassified / rearranged wherever necessary to make them comparable with the current year figures.

5 The Principal business of the Company is manufacturing of High/Medium/Low Carbon Ferro Manganese and Silico Manganese Slag which is facing challenges. Company is considering various projects in the manufacturing sector, including therein power generation and distribution. In the mean time the Company has on temporary basis parked the surplus in Fixed Deposits, Open-ended Mutual Funds and other investments. Considering the long term business plans of the Company and the nature of the investments that the Company has made, the Company has been advised that the provisions of Non Banking Finance Company Regulation do not apply to it. Based on these, in the opinion of the Board, the Company is not a Non Banking Finance Company defined in Section 45 I(f) of the Reserve Bank of India Act, 1934 (2 of 1934). The auditor have relied upon this expert advice and the decision of the Board of Directors in this regard.

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Mar 31, 2016

1. The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company''s holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

2. The Company has only one reportable segment of activity namely manufacture of “High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag.”

3. Deferred tax assets of '' 15,76,141/- has not been recognized on prudent basis.

4. Related Party disclosures as required under Accounting Standard - AS-18 issued by the Institute of Chartered Accountants of India, are given below:

(a) Name and Nature of Relationship of the Related Parties where Control Exists:

Name of the Related Party Nature of Relationship

i) Informed Technologies India Limited Enterprise that directly, or indirectly through one or more

intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise.

ii) Zeppelin Investments Private Ltd.

iii) Khandelwals Ltd.

vi) The Motwane Manufacturing Company Pvt. Ltd Subsidiary Company

Figures in brackets are related to previous year *

The Company does not have an exhaustive list of business or professions in which relatives of directors of the Company have substantial interest. As such, payments made to any such persons, if any have not been identified. This management representation has been relied upon by the Auditors.

(d) No amounts have been written off/provided for or written back during the year in respect of debts due from or to related parties.

5. The Principal business of the Company is manufacturing of High/Medium/Low Carbon Ferro Manganese and Silico Manganese Slag which is facing challenges. Company is considering various projects in the manufacturing sector, including therein power generation and distribution. In the mean time the company has on temporary basis parked investible surplus in Fixed Deposit, Open-ended Mutual Funds and other investments. Considering the long term business plan of the Company and the nature of the investments that the Company has made, the Company has been advised that the provisions of Non Banking Finance Company Regulation do not apply to it. Based on these, in the opinion of the Board, the Company is not a Non Banking Finance Company defined in Section 45 I(f) of the Reserve Bank of India Act, 1934 (2 of 1934). The auditor have relied upon this expert advice and the decision of the board of the Board of Directors in this regard.

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

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Mar 31, 2015

1.1 The Equity Shares of the Company have voting rights and are subject to the restriction as prescribed under the Companies Act, 2013.

1.2 The company has no holding Company. The subsidiary company does not hold any shares in the company.

1.3 Disclosures pursuant to Note no. 6(A)(h,i,j,k,l) of Part I of Schedule III to the Companies Act, 2013 is NIL.

1.4 The Company contributes to defined benefit schemes for Gratuity which is administered through duly constituted and approved independent trust. The liability for Gratuity and leave encashment is determined on the basis of actuarial valuations made at the year end.

1.5 There has been no default in payment of principal and interest on the loan.

1.6 There has been no default in repayment of principal and interest on the loan.

1.7 The Company contributes to defined benefit schemes for Gratuity which is administered through duly constituted and approved independent trust. The liability for Gratuity and leave encashment is determined on the basis of actuarial valuations made at the year end.

1.8 The balances of Security Deposits and Advances from customers are subject to confirmation.

1.9 In the absence of information with the company, the names of Micro, Small and Medium Enterprises to whom the company owes any sum together with interest outstanding for more than 30 days have not been given. The Auditors have relied upon this management representation.

1.10 The balances of Trade Payables are subject to confirmation.

1.11 Investments in mutual fund includes investments amounting to Rs, 58,47,865 /- (Previous Year : Rs, 64,43,833 /-) held in the name of porfolio manager under porfolio management service agreement which is based on statement from the portfolio manager and duly certified by their auditors.

1.12 Company's Ferro Alloys unit generated waste during the process of manufacture, which has accumulated over the years in and around the main plant. The waste is reusable for extracting metal content therein. Company has set up a Metal Recovery Plant for the purpose. During the year, company has accounted for stock of unextracted metal contents valuing Rs, 7,05,000/- (Previous Year Rs, 15,25,000/-) out of this accumulated waste based on the finding & valuation report of the Consultant Metallurgist obtained during the year. The technical consultants have advised the Company that the balance of this accumulated waste in terms of its quality, metal content and realizable value cannot be yet reasonably ascertained. Company has therefore not been in a position to account for stock of such balance accumulated waste.

1.13 The balances of Loans & Advances are subject to confirmation.

1.14 In the opinion of the board the Loans and Advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

1.15 The employee benefit expense includes the Whole Time Director's remuneration as approved by share holders at Annual General Meeting held on September 15,2014.

The company has relied on the valuation certificate issued by consulting Actuary, in terms of AS 15 (revised) issued by the Institute of Chartered Accountants of India, for calculating the actuarial value of Gratuity liability and leave encashment liability towards the employees of the Company.

2. DEFINED BENEFIT PLANS:

As per Actuarial valuation as on 31st March, 2015 and recognised in the financial statements in respect of Employee Benefit schemes:

Note: The Company has been advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary. Future cash outflow on (a) and (b) above is determinable only on the receipt of judgment / decision pending with respective Hon'ble Court / authorities / departments and or completion of negotiations / settlement.

3. The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company's holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

4. The Company has only one reportable segment of activity namely manufacture of "High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag."

5. Deferred tax assets of Rs, 13,37,284/- has not been recognized on prudent basis.

Figures in brackets are related to previous year *

The Company does not have an exhaustive list of business or professions in which relatives of directors of the Company have substantial interest. As such, payments made to any such persons, if any have not been identified. This management representation has been relied upon by the Auditors.

(d) No amounts have been written off/provided for or written back during the year in respect of debts due from or to related parties.

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

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Mar 31, 2014

CONTINGENT LIABILITIES AND COMMITMENTS:(To the extent not provided for) (In Rs.)

Particulars As at 31-03-2014 As at 31-03-2013

(a) Contingent Liability

i) Claims made against the Company/ disputed liabilities not acknowledged as debts : - -

- Sales Tax Demand not provided for pending outcome of appeal (Of which documents relating to claim of Rs.6,27,736 are currently not available with the Company) 20,173,539 20,173,539 - Excise Duty Demand not provided for pending outcome of appeal 2,657,798 2,657,798

- Customs duty Demand not provided for pending outcome of appeal 11,742,500 11,742,500

- Other Matters (Of which documents relating to claim of Rs.29,63,312 are currently not available with the Company) 11,100,737 11,051,561

- Balance of Income Tax Demand u/s 156 of the 3,631,578 3,631,578

Income Tax Act, 1961 in respect of A.Y 2010-11. not provided for pending outcome of appeal.

- Income Tax Demand u/s 156 of the Income Tax Act,1961, 1,036,460 - in respect of A.Y.2011-12 not provide for pending outcome of appeal.

ii) Guarantees -

iii) Other money for which the Company is contingently liable

- Investment in partly paid up shares (to the extent of un-called portion) - 927

(b) Commitments - - Total Contingent Liabilities and Commitments 50,342,612 49,257,903

Note: Future cash outflow on (a) and (b) above is determinable only on the receipt of judgment / decision pending with respective Hon''ble Court / authorities / departments and or completion of negotiations / settlement.

2 The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company''s holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

3 The Company has only one reportable segment of activity namely manufacture of "High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag."

4 Deferred tax assets of Rs. 8,85,309/- has not been recognized on prudent basis.

5 Related Party disclosures as required under Accounting Standard – AS-18 issued by the Institute of Chartered Accountants of India, are given below:

(a) Name and Nature of Relationship of the Related Parties where Control Exists:

Name of the Related Party

i) Informed Technologies India Limited

ii) Zeppelin Investments Private Ltd.

iii) Khandelwal Remedies Private Ltd.

iv) Meteor Metals & Ores Ltd.

v) Khandelwals Ltd.

Vi) The Motwane Manufacturing Company Ltd.,

Nature of Relationship

Enetrprises that directly, or indirectly through one or more intermediaries, control, or are controlled by, or are under common control with, the reporting enterprise.

Subsidiary Company

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

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Mar 31, 2013

1 The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company''s holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

2 The Company has only one reportable segment of activity namely manufacture of "High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag."

3 Deferred tax assets of Rs. 8,82,540/- has not been provided on prudent basis.

4 The Principal business of the Company is manufacturing of High/Medium/Low Carbon Ferro Manganese and Silico Manganese Slag which is facing challenges. Company is considering various projects in the manufacturing sector, including therein power generation and distribution. In the mean time the company has on temporary basis parked investible surplus in Fixed Deposit, Open-ended Mutual Funds and other investments. Considering the long term business plan of the Company and the nature of the investments that the Company has made, the Company has been advised that the provisions of Non Banking Finance Company Regulation do not apply to it Based on these, in the opinion of the Board, the Company is not a Non Banking Finance Company defined in Section 45 1(f) of the Reserve Bank of India Act, 1934 (2 of 1934). The auditor have relied upon this expert advice and the decision of the Board of Directors in this regard.

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

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Mar 31, 2012

1.1 The Equity Shares of the Company have voting rights and are subject to the restriction as prescribed under the Companies Act, 1956.

1.1 The company has no holding Company. The subsidiary company does not hold any shares in the company.

2.1 In the absence of information with the company, the names of Micro, Small and Medium Enterprises to whom the company owes any sum together with interest outstanding for more than 30 days have not been given. The Auditors have relied upon this management representation.

2.2 The balances of Trade Payables are subject to confirmation.

3.1 The Company contributes to defined benefit schemes for Gratuity which is administered through duly constituted and approved independent trust. The liability for Gratuity and leave encashment is determined on the basis of actuarial valuations made at the year end.

3.2 Others include provision for salaries, wages, recurring deposit account of employee and commission payable to managing director/ chairman (Current Year: Rs.Nil, Previous Year: Rs.3,96,179/-). .

4.1 Provision for doubtful deposit: Current Year: Rs. 91,430/-(Previous Year:Rs. Nil)

4.2 The balances of Security Deposits are subject to confirmation.

4.3 In the opinion of the board loans and advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

5.1 Company's Ferro Alloys unit generated waste during the process of manufacture, which has accumulated over the years in and around the main plant. The waste is reusable for extracting metal content therein. Company has set up a Metal Recovery Plant for the purpose. During the year, company has accounted for stock of unextracted metal contents valuing Rs 2,250,000 (Previous Year Rs. 21,600,000/-) out of this accumulated waste based on the finding & valuation report of the Consultant Metallurgist obtained during the year. The technical consultants have advised the Company that the balance of this accumulated waste in terms of its quality, metal content and realizable value cannot be yet reasonably ascertained. Company has therefore not been in a position to account for stock of such balance accumulated waste.

6.1 * Net of Advances considered doubtful Rs. 5,63,000 (Previous Year Rs. 5,63,000)

6.2 The balances of Loans & Advances are subject to confirmation.

6.3 In the opinion of the board the Loans and Advances have a value on realisation in the ordinary course of business at least equal to the sums stated.

7.1 "This includes directors remuneration. The members have approved the appointment of Mr. Gautam Khandelwal, Executive Director for a period of 5 years w.e.f. July 1, 2009 at AGM held on September 25, 2009. In terms thereof, where in any financial year the company has no profits or its profits are inadequate, the company will pay remuneration within the limits specified in Section 309 read with Schedule XIII of the Companies Act, 1956.

The company has incurred losses during the current year. In terms of Section II of part II of Schedule XIII, considering the effective capital of the company and other criteria mentioned therein, the maximum remuneration payable to directors is Rs,2,50,000/- p.m. i.e. Rs.30 lacs p.a. subject to approval of the members of the company. The board of directors have approved and paid sums aggregating to Rs.26,61,204/- to Mr. Gautam Khandelwal, Executive Director subject to obtaining the consent of the members in terms of Section II of part II of Schedule XIII of the Companies Act, 1956.

8.1 'Pursuant to the provisions of section 314(1) of the Companies Act, 1956, the appointment of Mr. Arnold Allen, Director of the Company to hold an office or a place of profit as Financial and Corporate Advisor w.e.f April 3, 2008 for the sum of Rs. 33,250 p.m. was approved by the members at the annual general meeting held on September 25, 2008.

During the year the Board of Directors have approved and paid sums aggregating to Rs.5,06,645/- i.e. in excess of the sum of Rs.3,99,000/- for the year approved by the members, subject to obtaining the consent of the members for this additional sum.

Note:

Future cash outflow on (a) to (d) above is determinable only on the completion of negotiations/on receipt of judgments/ decisions pending with respective firms/authorities.

9 The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Company's holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

10 The Company has one reportable segment of activity namely manufacture of "High/ Medium/ Low Carbon Ferro Manganese and Silico Manganese Slag."

11 Deferred tax assets of Rs. 5,78,378/- has not been provided on prudent basis.

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

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Mar 31, 2010

I) Contingent Liabilities not provided for:

As at 31-03-2010 As at 31-03-2009

Rupees Rupees

Claims made against the Company not acknowledged as debts :

(a) Sales Tax Demand not provided for pending outcome of appeal 2,01,73,539 6,27,736 ( Documents related to claim of Rs. 51,500 are currently not

available with the company)

(b) Excise Duty Demand not provided for pending outcome of appeal 26,57,798 26,57,798

(c) Customs duty Demand not provided for pending outcome of appeal 58,18,808 58,18,808

(d) Other Matters (Documents related to claim of Rs. 1,51,943 are 63,20,607 1,08,54,857 currently not available with the company)

Note:

Future cash outflow on (a) to (d) above is determinable only on the completion of negotiations/on receipt of judgments/ decisions pending with respective firms/authorities.

ii) In Schedule 10 "Liabilities" In the absence of information with the company, the names of small scale industrial undertakings to whom the company owes any sum together with interest outstanding for more than 30 days have not been given. The Auditors have relied upon this management representation.

iii) The declaration filed under the Urban Land (Ceiling and Regulation) Act, 1976 in respect of the Companys holdings in excess of the ceiling prescribed under the said Act and the application for exemption filed under Section 20 of the said Act, to retain these lands are under consideration of the concerned authorities.

iv) The Company has only one reportable segment of activity namely manufacture of "High Carbon Ferro Manganese, High Carbon Silico Manganese, Medium Carbon Ferro Manganese and Low Carbon Ferro Manganese."

v) The balance of Sundry Debtors, Deposits, Advances and Sundry Creditors are subject to confirmation.

vi) In the opinion of the Board, current assets, loans and advances have value on realisation in the ordinary course of business atleast equal to the amount at which they are stated.

vii) In accordance with the Accounting Standard on "Impairment of Assets" AS-28, the Company has recognised impairment losses as at 1st April, 2004 amounting to Rs.76,67,677/- on certain assets of the company at Nagpur by a corresponding adjustment to general reserve during the year ended 31st March, 2005 pursuant to the transitional provisions of the said Standard. On completion of sale of some of these impaired assets during the current year, the reversal of impairment losses thereon amounting to Rs.70,62,863 has been recognized and shown in schedule 18 – Exceptional Items

viii) Related Party disclosures as required under Accounting Standard - AS18 issued by the Institute of Chartered Accountants of India, are given below:

(I) Name and Nature of Relationship of the Related Parties where Control Exists:

Name of the Related Party Nature of Relationship

a) Magnachem Pharmaceuticals Private Ltd. Associate Company

b) Informed Technologies India Limited Associate Company

c) Zeppelin Investments Private Ltd. Associate Company

d) Khandelwal Remedies Private Ltd. Associate Company

e) Meteor Metals & Ores Ltd. Associate Company

f) Khandelwals Ltd. Associate Company

g) Motwane Manufacturing Company Pvt. Ltd Subsidiary Company

(II) Name of the Related Parties having transaction with the Company during the year and the details of transactions carried out with them:

1 Enterprises owned or significantly influenced by any management personnel or their relatives.

a) Informed Technologies India Limited

Advance Received/Advance Repaid Rs.5,79,631/ 5,79,631

2 Key Management Personnel Remuneration (in Rupees)

a) Mr. Gautam P. Khandelwal Rs. 35,93,811

b) Mr. S. B. Kanbargi Rs. 7,68,798

c) Mr. S. M. Hede Rs. 16,36,920

ix) During the year, the company has completed the Sale of Continuous process Plant- 9 MVA Furnace (2 nos), 2 MVA Furnace (1 nos) and related pollution control equipment (1 Nos) along with Shed and Accessories forming substantial part of the Ferro Alloy business of the company for a sum of Rs 660 lacs plus duties and taxes. These assets have not been in use for over past four years as it was found economically unviable and the company has been operating the Metal Recovery Plant. Hence the sale of these assets forming substantial part of the Ferro Alloys business has no affected continuing of the company as a going concern.

The resulting Profit on sale of these assets of Rs. 275.24 lacs after deducting the net book value thereof and reversal of impairment losses has been shown in Schedule 18 – Exceptional Items.

x) Previous year figures have been regrouped / reclassified / rearranged wherever necessary to make them comparable with the current years figures. Signature to the Schedule 1 to 19 forms an integrated part of the accounts.

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Mar 31, 2000

I) Contingent Liabilities not provided for :

31-03-2000 30-09-1999 Rupees Rupees

(a) Claims against the Company not Acknowledged as debts 85,24,988 84,35,550

(b) Minimum Demand Charges, Delay period charges, interest charges (NTPC concession not given by MSEB considered as in dispute) 10,66,51,567 8,32,79,437

(c) Sales Tax Demands not provided for pending outcome of appeal 44,04,324 42,49,768

(c) Bills drawn on customers and cheques discounted with Banks 22,33,355 27,80,925

ii) The declaration filed under the Urban Land (Ceiling and Regulations) Act, 1976 in respect of companys holding in excess of the ceiling prescribed under the Act and the application for exemption filed under Section 20 of the Act to retain these lands are under consideration of the concerned authorities.

(iii) In compliance with Accounting Standard - 2 (AS-2) on valuation of inventories, of Finished Products.

(a) Overheads have been considered. There is, however, no material impact on the loss for the half year.

(b) Excise duty aggregating to Rs. 39,74,688/- has also been included in the valuation of inventories. However, there is no effect on Loss for the half year or Reserves as at 31st March 2000 on account of this change.

iv) The Company carries out production emanating from its in-house research and development activity out of its pilot plants. As such the raw materials consumed, and other expenses incurred by the Company on this activity are shown under the head Research and Development Expenses. The production when sold is shown under the head sales and the closing stock lying on hand at the close of the year is shown as closing stock of Finished Products.

(v) In terms of Notification No. GSR (129 E) dated 22-02-1999 issued by the Department of Company Affairs, the company is required to furnish the details of outstandings of Small Scale Industrial Undertakings under the head "Current Liabilities and Provisions". The company had requested their vendors to furnish requisite information alongwith their SSI registration number. Based on the information available with the company there are no amounts outstanding to Small Scale Industrial Undertakings which are over Rs. 1 lac and outstanding for more than 30 days.

vi) The Previous periods figures are not comparable as they comprise a period of 18 months whereas the current period figures are for 6 months. Besides there has been no production during the current 6 months period.