Notes to Accounts of Sudal Industries Ltd.

Mar 31, 2015

I) The Company has only one class of equity shares having a par value of Rs, 10 each. Each holder of equity shares is entitled to one vote per share.

ii) The Company has not issued any aggregate number and class of shares as fully paid up pursuant to contract(s) without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date.

iii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to the shareholding. However, no such preferential amount exist currently.

a) Issue of Convertible Warrants and conversion into Shares:

The Company has pursuant to the approval of the shareholders in the Extra Ordinary General Meeting held on 30th January,2013, had issued 15,50,000 Optionally Fully Convertible Warrants("OFC") of Rs, 19.00 each to director and their relatives on 14th February,2013.The Company had converted 6,90,000 OFC warrants into 6,90,000 equity shares of Rs, 10 each at a premium of Rs, 9.00 each on 6th March,2013 and 8,60,000 OFC Warrants into 8,60,000 equity shares of Rs, 10 each at premium of Rs, 9.00 each on 9th August, 2014 in accordance with provisions of Chapter XIII of SEBI (Disclosure and investor protection) Guidelines 2000 issued by Securities and Exchange Board of India.

1. Secured Loans :

(a) Term Loan of Rs, 283.09 Lakhs (Previous year Rs, 347.90) (Interest @ Base rate plus 3.50% p.a.; previous year @ Base rate plus 3.50% p.a.) are secured by way of equitable mortgage of all immovable properties and hypothecation of all movable assets which is equally repayable in 36 monthly installments after moratorium period of 3 months and is also personally guaranteed by two directors of the Company.

(b) Non fund based limit utilized 100 Lakhs (Previous year Rs, 1040 Lakhs) and Cash Credit (Interest @ Base rate plus 3.25% per p.a.; previous year @ Base rate plus 3.25% p.a.) are secured by hypothecation of stocks and book debts and is also personally guaranteed by two directors of the Company.

(c) Vehicle Loan of Rs, 20.37 Lakhs (Previous year Rs, 38.41 Lakhs) (Interest @ 8.75%/10.25% ; previous year @ 8.75% ) are repayable over a period of 3 years and secured by hypothecation of Vehicle purchased their against.

(d) Working Capital Term Loan(WCTL) Rs, 1366.16 Lakhs (Previous year Rs, 1250 Lakhs), Interest @ 15.25% floating, secured by way of hypothecation of all stocks at factory/ consignment agents and book debts (residual value after meeting the DP for ODBD limits) and secured by 1st charge of mortgage of factory land and building and hypothecation of other fixed assets of the company unit at MIDC, Ambad, Nashik and is also personally guaranteed by the two directors of the company. Loan repayable in 36 equal monthly installment after moratorium of 24 months. Interest to be paid on monthly basis from the day one.

(e) Working Capital Term Loan of Rs, 922.10 Lakhs (Previous year Nil), Interest @ 13.50%, secured by 2nd Charge of Mortgage of immoveable properties and 2nd Charge on hypothecation of all Moveable Fixed Assets, and all other Curent Assets of the Company. The same is Personally Guaranteed by the Managing Director of the Company. The loan is repayable in 60 monthly installments after moratorium of 18 months. Interest is payable on monthly basis from January 2015.

The request of the company for Restructuring of the same is under consideration.

(g) During the year, the Company has defaulted in payment of Purchase Receivable Finance Scheme amounting to Rs, 9,22,10,133. The same has been regularized by the financial institution by converting it into Working Capital Term Loan. (Refer Note 28(e)).

Unsecured Loans :

Interest rate range between 15% to 18% (Previous year 15% to 18%) and are repayable within 1 to 3 years (Previous year 1 to 3 years).

2. (a) In the opinion of the Board, assets other than fixed assets and non current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

(b) The accounts of trade receivable and payable and Loans and Advances are subject to formal confirmations/ reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial.

2.1 Land, Building, Plant & Machinery and Electrical Installations were revalued in the accounts on April 1,1994. The same have again been revalued on March 31,2004 on the basis of reports of approved value/ replacement cost basis using standards indices. The following revalued amount (net of withdrawals) remain substituted for the historical cost in the gross block of fixed assets.

3. Debtors outstanding for a period exceeding six months includes Rs, 20,91,180 from two customers due for more than one year. The management is confident of recovery.

4. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/ payable as required under the said Act have not been given.

5. The Company is primarily engaged in the business of Manufacturing of Aluminum Extrusions and downstream/ value added products. All of Company's operations are located in India and are subject to the same risks and returns. Therefore, no separate segment reporting is provided in terms of Accounting Standard "Segment Reporting".

6. Disclosure as required by Accounting Standard -15 (Revised) on Employee Benefits:

In respect of gratuity and compensated absences, defined benefit schemes (based on Actuarial Valuation)

---

Mar 31, 2014

1. OVERVIEW :

Incorporated in the state of Maharashtra in 1979, the Company was originally named Sudarshan Aluminium Industries Limited. In April, 1994, the name of the company was changed to Sudal Industries Limited.

The Company is in the business of manufacturing of Aluminium Extrusions, Aluminium Alloys, Down Stream Products.

2. a) Terms/rights attached to equity shares :

i) The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share.

ii) The Company has not issued any aggregate number and class of shares as fully paid up pursuant to contract(s) without payment being received in cash,bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date.

iii) In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amount, in proportion to the shareholding. However, no such preferential amount exist currently.

b) The proceeds of preferential issue have been utilised for meeting working capital requirements.

c) Issue of Convertible Warrants and conversion into Shares :

The Company has pursuant to the approval of the shareholders in the Extra Ordinary General Meeting held on 30th January,2013, has issued 15,50,000 Optionally Fully Convertible Warrants("OFC") of Rs. 19.00 each to director and their relatives on 14th February, 2013. Out of which, the Company had converted 6,90,000 OFC warrants into 6,90,000 equity shares of Rs. 10 each at a premium of Rs. 9.00 each on 9th March,2013, in accordance with provisions of Chapter XIII of SEBI (Disclosure and investor protection) Guidelines 2000 issued by Securities and Exchange Board of India and the balance 8,60,000 OFC warrants to be converted into equity shares on or before 13th August, 2014.

NOTE : 3

Contingent liabilities not provided in respect of :

(a) Tax liability for pending ''C'' Forms 17,184,376 10,075,878

(b) Bills/Cheques discounted with bank, since realisation 23,595,438 7,320,364

4. Secured Loans :

(a) Term Loan of Rs. Nil (Previous year Rs. 90.30 Lakhs) (Interest @ PLR plus 1% p.a.; previous year @ PLR plus 1% p.a.) and Term Loan of Rs. 347.90 Lakhs (Previous year Rs. 520.53 Lakhs) (Interest @ Base rate plus 3.50% p.a.; previous year @ Base rate plus 3.50% p.a.) are secured by way of equitable mortgage of all immovable properties and hypothecation of all movable assets which is equally repayable in 36 months installments respectively and is also personally guaranteed by two directors of the Company.

(b) Non fund based limit utilised Rs. 1000 Lakhs (Previous year Rs. 1642 Lakhs) and Cash Credit (Interest @ Base rate plus 3.25% per p.a.; previous year @ Base rate plus 3.25% p.a.) are secured by hypothecation of stocks and book debts and is also personally guaranteed by two directors of the Company.

(c) Vehicle Loan of Rs. 38.41 Lakhs (Previous year Rs. 80.56 Lakhs) (Interest @ 8.75% flat; previous year @ 8.75% flat) are repayable over a period of 3 years and secured by hypothecation of Vehicle purchased their against.

(d) Working Capital Term Loan Rs. 1250 Lakhs (Previous year Rs. Nil), Interest @ 15.25% floating, secured by way of hypothecation of all stocks at factory/ consignment agents and book debts (residual value after meeting the DP for ODBD limits) and secured by 1st charge of mortagage of factory land and building and hypothecation of other fixed assets of the company unit at MIDC, Ambad, Nashik and is also personally guaranteed by the two directors of the company. Loan repayable in 36 equal monthly instalment after moratorium of 24 months. Interest to be paid on monthly basis from the day one.

Unsecured Loans :

Interest rate range between 15% to 18% (Previous year 15% to 18%) and are repayable within 1 to 3 years (Previous year 1 to 3 years).

5. (a) In the opinion of the Board, assets other than fixed assets and non current investment have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

(b) The accounts of trade receivable and payable and Loans and Advances are subject to formal confirmations/ reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial.

6. Debtors outstanding for a period exceeding six months includes Rs. 20,91,180 from two customers due for more than one year. The management is confident of recovery.

7. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been given.

8. The Company is primarily engaged in the business of Manufacturing of Aluminium Extrusions and down stream/ value added products and all the operations are located in india. Thus in terms of accounting standard "Segment Reporting" (AS-17), it is the only segment for reporting purpose.

9. Disclosures as required by Accounting Standard -18, on "Related Party Disclosure" are given below :

(i) Associates with whom transactions have been entered during the year in the ordinary course of the business :

Sudarshan Chokhani and Company

Shriram Chokhani and Company

Chhaganlal Sheokarandas and Company

(ii) Key Management Personnel :

Shri Sudarshan S. Chokhani

Shri Shyantanu S. Chokhani

(iii) Relatives of Key Managerial Personnel :

Shri Deokinandan Ajitsaria

10. The Company Secretary of the company has retired w.e.f. 1st July, 2013 and the company is making concerted efforts to fill the vacancy.

11. The previous year figures have been regrouped/ rearranged/ reclassified, wherever necessary to conform to the current year presentation. Figures in brackets pertain to previous year.

---

Mar 31, 2013

1. Secured Loans :

[a] Term Loan of '' 90.30 Lakhs [Previous year '' 182.12 Laks] [Interest @ PLR plus 1% p.a.] and Term Loan of '' 520.53 Lakhs [Previous year '' 667.98 Lakhs] [Interest @ Base rate plus 3.50% p.a.] are secured by way of equitable mortgage of all immovable properties and hypothecation of all movable assets which is equally repayable in 11 months and 38 months installments respectively and is also personally guaranteed by two directors of the Company.

[b] Non fund based limit utilized '' 1642 Lakhs [Previous year ''1814 Lakhs] and Cash Credit [Interest @ Base Rate plus 3.25% per annum] are secured by hypothecation of stocks and book debts and is also personally guaranteed by two directors of the Company.

[c] Vehicle Loan of '' 24.68 Lakhs [Previous year '' 10.47 Lakhs] [Interest @ 8.75% flat] are repayable over a period of 3 years and secured by hypothecation of Vehicle purchased their against.

Unsecured Loans :

Interest rate range between 15% to 18% [Previous year 15% to 16%] and are repayable within 1 to 3 years [Previous year 2 to 3 years].

2. [a] In the opinion of the Board, assets other than fixed assets and non current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

[b] The accounts of trade receivable and payable and Loans and Advances are subject to formal confirmations / reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year''s financial.

3. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/ payable as required under the said Act have not been given.

4. The Company is primarily engaged in the business of Manufacturing of Aluminum Extrusions and downstream/ value added products and all the operations are located in India. Thus in terms of accounting standard "Segment Reporting" [AS-17], it is the only segment for reporting purpose.

5. Disclosures as required by Accounting Standard -18, on "Related Party Disclosure" are given below :

[i] Associates with whom transactions have been entered during the year in the ordinary course of the business: Sudarshan Chokhani and Company

Shriram Chokhani and Company Chhaganlal Sheokarandas and Company

[ii] Key Management Personnel:

Shri Sudarshan S. Chokhani Shri Shyantanu S. Chokhani

[iii] Relatives of Key Managerial Personned:

Shri Deokinandan Ajitsaria

Note:

1. No amount pertaining to related parties has been provided for as doubtful. Also no amount has been written off/ back.

2. The related parties are as identified by the Company and relied upon by the Auditors.

6. The previous year figures have been regrouped/ rearranged/ reclassified, wherever necessary to conform to the current years presentation.

---

Mar 31, 2012

OVERVIEW :

Incorporated in the state of Maharashtra in 1979, the Company was originally named Sudarshan Aluminium Industries Limited. In April 1994, the name of the Company was changed to Sudal Industries Limited.

The Company is in the business of manufacturing of Aluminum Extrusions, Aluminum Alloys, Down Stream Products.

[a] Right attached to Equity Shares :

[i] The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote only.

[ii] The Company has not issued aggregate number and class of shares as fully paid up pursuant to contract[s] without payment being received in cash, bonus shares and shares bought back for the period of 5 years immediately preceding the Balance Sheet date.

[iii] In the event of liquidation, the equity shareholders are eligible to receive the remaining Assets of the Company after distribution of all preferential amount, in proportion to the shareholding. However, no such preferential amount exist currently.

2. Contingent Liabilities :

Tax liability for pending 'C' Forms Rs. 16.94 Lakhs; [Previous year Rs. 28.98 Lakhs].

3. Commitment :

Estimate amount of contracts remaining to be executed on capital account Rs. 2,75,000; Previous year Rs. 40,75,435 and not provided for [net of Advances Rs. 30,000; Previous year Rs. Nil]

4. Secured Loans :

[a] Term Loan of Rs. 230 Lakhs [Interest @ PLR plus 1% p.a.] and Term Loan of Rs. 660 Lakhs [Interest @ Base rate plus 3.50% p.a.] are secured by way of equitable mortgage of all immovable properties and hypothecation of all movable assets which is equally repayable in 36 months and 48 months installments respectively and is also personally guaranteed by two directors of the Company.

[b] Non fund based limit utilized Rs. 1,814 Lakhs [Previous year Rs. 990 Lakhs] and Cash Credit [Interest @ Base Rate plus 3.25% per annum] are secured by hypothecation of stocks and book debts and is also personally guaranteed by two directors of the Company.

[c] Vehicle Loan [Interest @ 8.75% flat] are repayable over a period of 3 years and secured by hypothecation of Vehicle purchased their against.

Unsecured Loans:

Interest rate range between 15% to 16% and are repayable within 2 to 3 years.

5. [a] In the opinion of the Board, assets other than fixed assets and non current investment have a value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet.

[b] The accounts of trade receivable and payable and Loans and Advances are subject to formal confirmations/reconciliation and adjustments, if any. The management does not expect any material difference affecting the current year's financial due to the same.

6. Land, Building, Plant & Machinery and Electrical Installations were valued in the accounts on April 1, 1994. The same have been revalued on March 31, 2004 on the basis of reports of approved valuer/replacement cost basis using standards indices. The following revalued amount [net of withdrawals] remain substituted for the historical cost in the gross block of fixed assets.

7. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been given.

8. The Company is primarily engaged in the business of Manufacturing of Aluminum Extrusions and down stream/value added products and all the operations are located in India. Thus in terms of accounting standard "Segment Reporting" [AS-17], it is the only segment for reporting purpose.

9. Disclosures as required by Accounting Standard-18, on "Related Party Disclosure" are given below :

[i] Associates with whom transactions have been entered during the year in the ordinary course of the business:

Sudarshan Chokhani and Company

Shriram Chokhani and Company

ChhaganlalSheokarandas and Company

[ii] Key Management Personnel:

Shri Sudarshan S. Chokhani

Shri Shyantanu S. Chokhani

[iii] Relatives of Key Managerial Personned:

Shri Deokinandan Ajitsaria [Brother in law of Shri Sudarshan S. Chokhani]

Note:

1. No amount pertaining to related parties has been provided for as doubtful. Also no amount has been written off/back.

2. The related parties are as identified by the Company and relied upon by the Auditors.

10. [a] The Financial statements have been prepared in accordance with revised schedule VI.

[b] In view of commencement of commercial production of press IV and press V on July 01, 2011 & December 22, 2011 respectively, current year figures are not comparable with those of previous year. The previous year's figures have been re-grouped and/or re-arranged wherever necessary to conform to the current year's presentation.

---

Mar 31, 2010

1. Contngent liabilities not provided for in respect of : :

(Amount in Rupees)

Partculars As at As at

March 31, 2010 March 31, 2009

(i) Unexpired irrevocable leters of credit in respect of Raw Materials 79,95,682 1,77,99,061

Counter Guarantee given by the company against the guarantees issued

(ii) by the bank 50,000 1,00,000

2. The Department of Excise has raised the demand for Rs. 43,74,693 for the earlier years which is disputed by the Company. However, the finance minister in the budget presented for the year 2010-2011 has retrospectively amended the Central Excise Act and the Rules there under, confirming the correctness of the treatment given for clearance of non-excisable/ exempted Goods and the said demand will stand withdrawn as soon as the budget is passed.

3. Issue of Convertible Warrants and conversion into Shares : :

The company has, pursuant to the approval of the share holder of the Company in the Extra ordinary General Meeting held on October 12, 2009, issued Optionally Fully Convertible Warrants of Rs. 23.25 each (including premium of Rs. 13.25 per share) in accordance with provisions of Chapter XIII of SEBI (Disclosure and Investor Protection) Guidelines 2000 issued by Securities and Exchange Board of India.

4. Land, Buildings, Plant & Machinery and Electrical Installations were first revalued in the accounts on April 1, 1994. The same had again been revalued on March 31, 2004 on the basis of reports of approved valuer on market value/replacement cost basis using standard indices. The following revalued amounts (net of withdrawals) remain substituted for the historical cost in the gross block of fixed assets.

5. (a) In the opinion of the Board, the Current Assets and Loans & Advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

(b) Account of certain Debtors, Creditors, Banks and Loans & Advances are subject to confrmations, reconciliations, and adjustments, if any, having consequential impact on the profit for the year, assets and liabilities, the amounts whereof are presently not ascertainable. The management, however, does not expect any material difference afecting the current years fnancial statements.

6. Deposits include Rs. 1,78,02,100 (Previous year Rs.28,07,100) being interest free deposits given towards the use of the office premises to Partnership Firms where certain Directors of the Company are partners.

7. The Company is primarily engaged in the business of Manufacturing of Aluminium Extrusions and down stream/ value added products. Since the inherent nature of activities as a whole is governed by the same set of risk and returns, these have been grouped as a single segment. No assets are located outside India. The said treatment is in accordance with the accounting standard on "Segment Reportng" (AS-17) as issued by The Institute of Chartered Accountants of India.

8. Related partes Disclosures : :

(a) list of Related partes : :

Partes with whom the Company has entered into transactions during the year in the normal course of the business ::

Associates / Group companies : :

Sudarshan Chokhani & Co.

Shriram Chokhani & Co.

Chhaganlal Sheokarandas & Co.

Key Management personnel : :

(i) Mr. Shriram C. Chokhani (Managing Director)

(ii) Mr. Sudarshan S. Chokhani (Joint Managing Director)

note: Related partes are as identfed by the Company and relied upon by the Auditors.

9. The Company has not received any intmation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/ payable as required under the said Act have not been given.

10. (a) Dies (included in stores and spares inventories) of Rs. 7,21,26,290 (Previous year Rs.6,86,38,388) have been valued by a government approved valuer considering their residual useful life and replacement value and relied upon by the Auditors being a technical mater. (b) Stores and spares consumed during the year include value of Dies discarded Rs. 44,62,824 (Previous Year Rs.15,44,837) on account of breakage or otherwise and net of related credit of Rs. 9,61,086 (Previous Year Rs.64,34,697).

11. Previous years figures have been regrouped/rearranged/reclassified wherever necessary to conform to the current years Presentation.