Notes to Accounts of IMEC Services Ltd.

Mar 31, 2015

Note 1 : In the opinion of Board of Directors, Non current / current assets and Loans and Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance sheet and that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated herein above.

Note 2 : LEASES - WHERE COMPANY IS LESSEE

The Company has taken various premises under operating leases with no restrictions and is renewable / cancelable at the option of either party. There are no sub leases. There are no restrictions imposed by lease arrangements. The company has not recognized any contingent rent as expense in the statement of profit and loss. The aggregate amount of operating lease payment recognized in the statement of profit and loss is Rs.1.69 Lacs (Previous year 1.14 Lacs )

Note 3 : Disclosure as per AS-15 – EMPLOYEE BENEFITS GRATUITY

The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees' gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Profit and Loss Account.

Note 4 : Exceptional item Nil (Previous year Rs. 4.30 Lacs) represent value of Gratuity fund of earlier year not recognized, being excess of fair value of planned assets over present value of defined obligation, , hence now recognized.

Note 5 : Pursuant to enactment of new Companies Act, 2013 and as per the schedule II of the Companies Act, 2013, the company has revised the useful life of fixed Assets for providing depreciation on it. Accordingly; carrying amount as on 01/04/2014 has been depreciated over the remaining revised useful life of fixed Assets. Due to this change depreciation for the year is lower by Rs.0.05 Lacs and profit before tax is higher to the extent of Rs. 0.05 Lacs. In accordance with transitional provision in respect of assets whose useful life is already exhausted as on 01/04/2014, depreciation Rs. 0.19 Lacs . (Net of tax expenses Rs. 0.09 Lacs) has been recognized in opening balance of retained earnings as per requirement of schedule II of the Act.

Note 6 : Previous year's figures are regrouped / re – arranged wherever considered necessary.

Note 7 : General Company Information Significant Accounting policies and practices adopted by the Company are disclosed as under :- General company information Ruchi Strips and Alloys Limited was incorporated as a Limited Company on June 18th, 1987.

In the year 2011, Company has transferred its Plant along with Steel Division situated at Village – Sejwaya, Ghatabillod, Dist. Dhar (M.P.) to wholly owned subsidiary RSAL Steel Private Limited. Now, the main business activity of the company is Trading activity in Steel and other products.

The shares of the Company are listed at the Bombay Stock Exchange, Mumbai.

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Mar 31, 2014

1. SHARE CAPITAL

1.1 The company has one class of equity shares having a par value of Rs. 10 per share. Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

1.2 The details of Shareholders holding more than 5% shares:

2. CONTINGENT LIABILITIES AND COMMITMENTS (to the extent not provided for)

2013-14 2011-13

A. Contingent Liabilities

i) Guarantees issued by Bank Nil Nil

ii) Income Tax demand disputed in appeal 6.76 6.76

iii) Corporate guarantee given on behalf of subsidiary 24148.00 24148.00

B. Commitment Nil Nil

3. a. Trade Payables includes Rs. Nil (Previous Year Nil) amount due to micro small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED)Act.

b. The information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

4. The Company is engaged in trading/merchandising activities. No other activity qualifies as a reportable segment in terms of AS-17 issued by The Institute of Chartered Accountants of India. Hence disclosure requirement as perAS-17 is not applicable.

5. RELATED PARTY DISCLOSURE

a. Related Party relationship is as identified by the Company and relied upon by the Auditors.

b. Transaction carried out with related parties referred in above, in ordinary course of business during the existence of related party relationship.

6. In the opinion of Board of Directors, Non current/current assets and Loans and Advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance sheet and that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated herein above.

7. DISCLOSURE ON FINANCIAL AND DERIVATIVE INSTRUMENTS:

The Company uses foreign currency forward exchange contracts to hedge its exposures in foreign currency related to firm commitment and highly probable forecasted transactions. The amount of foreign currency exposure as at the end of the year is Nil (Previous year Nil).

8. LEASES-WHERE COMPANYIS LESSEE

The Company has taken various premises under operating leases with no restrictions and is renewable/cancelable at the option of either party.There are no sub leases.There are no restrictions imposed by lease arrangements. The company has not recognized any contingent rent as expense in the statement of profit and loss. The total future minimum lease rentals payable at the balance sheet date is as under:

The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs. 1.14 Lacs (Previous period Rs. 1.37 Lacs). The company has not recognized any contingent rent as expense in the statement of profit and loss.

9. DISCLOSURE AS PER AS-15-EMPLOYEE BENEFITS

GRATUITY

The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employees gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Profit and Loss Account.

10. Exceptional item Rs. 4.30 Lacs represent value of Gratuity fund of earlier year being excess of fair value of planned assets over present value of defined obligation, hence now recognized.

11. Disclosure Pursuant to Clause 32 of Listing Agreement with Stock Exchanges

A) Loans and Advances in the nature of Loans to Subsidiary-Nil

B) Loans and Advances in the nature of Loans to Related Party-Nil

C) None of the parties to whom loans were given have made investment in the shares of the Company-Nil

D) Loans and advances in the nature of Loans to firms/companies in which directors are interested-Nil

E) Loans and advances in the nature of Loans where there is:

i) No repayment schedule or repayment beyond seven years-Nil

ii) No interest or interest below the rates prescribed in section 372A of companies act 1956 - Nil

12. The financial statements have been prepared in line with the requirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31 st March 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle.

13. The financial statement of current and previous period are not comparable since previous period figures are of eighteen months.

14. Previous period''s figures are regrouped/re-arranged wherever considered necessary.

15. General Company Information Significant Accounting policies and practices adopted by the Company are disclosed as unde

General company information

Ruchi Strips and Alloys Limited was incorporated as a Limited Company on June 18th, 1987.

In the year 2011, Company has transferred its Plant along with Steel Division situated at Village -Sejwaya, Ghatabillod, Dist. Dhar(M.P.) to wholly owned subsidiary RSAL Steel Private Limited.

Now, the main business activity of the company is Trading activity in Steel and other products.

The shares of the Company are listed at the Bombay Stock Exchange, Mumbai.

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Mar 31, 2013

NOTE 1 : Trade payables include bills payable for purchase of goods Rs. NIL (Previous Year Rs. 5505.63 Lacs).

NOTE 2 : a. Trade Payables includes Rs. Nil (Previous Year Nil) amount due to micro, small and medium enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act).

b. The details of amount outstanding to Micro, Small and Medium Enterprises are as under :

c. The information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

NOTE 3 : RELATED PARTY DISCLOSURE

List of Related Parties and Relationships Party Name

a) Subsidiary Company RSAL Steel Private Limited

b) Key Management Personnel & their relative

Mr. Kailash Chandra Shahra Chairman

Mr. Umesh Shahra Managing Director

Mr. Arvind Mishra Director (Executive Director up to 30.03.2011)

c) Entities where Key Management Personnel & their relatives of Key Management Personnel have significant Influence over the Company.

Suyash Trust

Shahra Brothers Private Limited

Indian Steel Corporation Limited

NICPL Infralinks Private Limited ( Associate)

Note : Related Party relationship is as identified by the Company and relied upon by the Auditors.

d) Transaction carried out with related parties referred in above, in ordinary course of business during the existence of

NOTE 4 : In the opinion of Board of Directors, current assets, loans and advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance sheet and that the provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than stated herein above.

NOTE 5 : DISCLOSURE ON FINANCIAL AND DERIVATIVE INSTRUMENTS

The Company uses foreign currency forward exchange contracts to hedge its exposures in foreign currency related to firm commitment and highly probable forecasted transactions. The amount of foreign currency exposure as at the end of the period is Nil (Previous year Nil).

NOTE 6 : LEASES - WHERE COMPANY IS LESSEE

The Company has taken various premises under operating leases with no restrictions and is renewable / cancelable at the option of either party. There are no sub leases. There are no restrictions imposed by lease arrangements. The Company has not recognized any contingent rent as expense in the statement of profit and loss. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.1.37 Lacs (Previous period Rs. 24.44 Lacs). The Company has not recognized any contingent rent as expense in the statement of profit and loss.

NOTE 7 : DISCLOSURE AS PER AS-15 - EMPLOYEE BENEFITS GRATUITY

The Company has opted for scheme with Life Insurance Corporation of India to cover its liabilities towards employee''s gratuity. The annual premium paid to Life Insurance Corporation of India is charged to Profit and Loss Account. The Company also carries out actuarial valuation of gratuity using Projected Unit Credit Method as required by Accounting Standard 15 "Employee Benefits" (Revised 2005) and difference between fair value of plan assets and liability as per actuarial valuation as at year end is recognized in Profit and Loss Account.

NOTE 8 : The financial statements have been prepared in line with the requirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31st March, 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle. Consequently, the Company has re-classified previous period figures to confirm to this period''s classification.

NOTE 9 : The financial statement of current and previous period are for eighteen months.

10. General Company Information

Ruchi Strips and Alloys Limited was incorporated as a Limited Company on 18th June, 1987.

In the year 2011, Company has transferred its Plant along with Steel Division situated at Village - Sejwaya, Ghatabillod, District Dhar (Madhya Pradesh) to it s wholly owned subsidiary namely RSAL Steel Private Limited.

Now, the main business activity of the Company is Trading activitiy in Steel & other products.

The shares of the Company are listed at the Bombay Stock Exchange, Mumbai (BSE).

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Mar 31, 2010

2009-10 2008-09 Rs. in Lacs Rs. in Lacs

1. Contingent Liabilities not provided for

a) Outstanding Bank guarantees 625.97 183.23

b) Disputed liabilities not acknowledged as debts. 475.45 402.76

2. Sundry Creditors includes bills payable for purchases of material Rs. 9103.71 lacs (previous year Rs. 3722.51 lacs)

3. During the year, the Company has forfeited 34200 equity shares of Rs. 10/- each (Amount paid up Rs. 5/-).

4. Preferential issue of Equity Shares :

a) In order to repay the existing unsecured loans raised as margin for availing Working Capital Term Loan(s) and augment its working capital, the Company has come out with preferential allotment of equity shares to Promoters and other investors during the year, at an issue price calculated in accordance with SEBI (ICDR) Guidelines, 2009, duly approved by the Board of Directors and Share holders of the company.

b) The Company has allotted 95,47,075 Equity Sharers of Rs. 10/- each at a premium of Rs. 1.05 per shares on 25th January, 2010.

c) The entire proceeds have been utilized for the purpose for which it was raised.

5. Issue of Preference Shares:

a) The Company has issued and allotted 9,50,000 5% Non-cumulative redeemable preference shares of Rs. 100/- each on 14th December, 2009, aggregating to Rs. 950 lacs, to meet margin requirements for availing Working Capital Term Loan(s). The shares, issued to Promoter group, are redeemable on completion of 14 years from the date of issue.

b) The entire proceeds have been utilized for the purpose for which it was raised.

*Excluding Rs. Nil (Previous Year Rs. 0.75 lacs) paid during the year to Executive Director relating to period prior to his appointment as a director.

6. Related Party Disclosures:

1. Relationships

(a) Key Management Personnel & relatives

Shri Kailash Chandra Shahra Chairman

Shri Umesh Shahra Managing Director

Shri Arvind Mishra Executive Director

(b) Entities where key management personnel or relative of key management personnel have significant interest Suyash Trust.

Shahra Bros. Pvt. Ltd.

Indian Steel Corporation Limited

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

7. In the opinion of the Board of Directors the current assets, loans and advances have value on realization in the ordinary course of business, at least equal to the amount at which they are stated in the Balance Sheet and provision for known liabilities is adequate and reasonable. There are no contingent liabilities other than those stated herein above.

8. There are no delays in payment to Micro, Small and Medium enterprises as required to be disclosed under Micro, Small and Medium Enterprises Development Act, 2006. The information given in Schedule L: "Current Liabilities" regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information avai lable with the Company. This has been relied upon by the Auditors.

9. Previous years figures have been re-grouped and re-arranged wherever necessary to make them comparable.

10. Confirmation of loans, advances, deposits, debtors and creditors have been partly received, therefore same has been shown as per books of accounts. Necessary adjustments, if any, wil I be made on reconcil lation of the same.