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Notes to Accounts of Uni Abex Alloy Products Ltd.

Mar 31, 2017

a) Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The equity shareholders are entitled to dividend proposed by the Board of Directors and approved by the shareholders in the Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1. Long-term Borrowing

(Secured)

Term loans from Axis Bank Ltd.

The above term loans are secured by first exclusive charge over entire movable and immovable fixed assets of the Company at Dharwad project including equitable mortgage of factory land and building.

Additionally the loans are also secured by collateral securities of:

1) First hypothecation charge on entire movable fixed assets of the Company other than vehicles.

2) First charge by way of equitable mortgage on factory land and building at Thane plant.

3) Second charge by way of entire current assets of the company.

The above term loans includes:

a) Foreign currency term loan amounting to Rs.701.17 Lakhs (previous year Rs.756.23 Lakhs) which is repayable in equal monthly installments of € 76,480.67 from August, 2015 to March, 2018.

b) Indian currency term loan amounting to Rs.292.19 Lakhs (previous year Rs.243.83 Lakhs) which is repayable in equal quarterly installments of Rs.26.56 Lakhs from March, 2016 to December, 2019.

c) The amount repayable within one year Rs.809.36 Lakhs (previous year Rs.806.87 Lakhs) in respect of the above loans is reflected as current maturities of long term debt under current liabilities.

2. Short-term Borrowings

(secured)

cash credit and overdraft from banks

The above includes:

a) cash credit from Axis Bank Ltd. amounting to Rs.814.53 Lakhs (previous year Rs.583.75 Lakhs) which is secured by first charge by way of hypothecation of current assets of the company on pari-passu basis with The Zoroastrian co-operative Bank Ltd.

The cash credit is also secured by collateral securities of:

1) First hypothecation charge on entire movable fixed assets of the company.

2) First charge by way of equitable mortgage on factory land and building at Thane and Dharwad.

b) cash credit from The Zoroastrian co-operative Bank Ltd. amounting to Rs.1,193.29 Lakhs (previous year Rs.1,194.41 Lakhs) which is secured by hypothecation of current assets of the company on pari-passu basis with Axis Bank under multiple banking arrangement.

The cash credit is also secured by collateral securities of: second charge on

1) Factory land and building at Thane

2) Other Fixed Assets including plant and Machinery.

c) Overdraft from The Zoroastrian co-operative Bank Ltd. amounting to Nil (previous year ''517.69 Lakhs) which is secured against term deposits.

a) The Company jointly owns 50% of a motor car with Uni Deritend Ltd. in which Company’s share is of gross value of Rs.29.08 Lakhs, accumulated depreciation Rs.24.86 Lakhs and wdv Rs.4.23 Lakhs as on 31st March, 2017.

b) Leasehold land represents lease hold interest in land at Dharwad conveyed by Karnataka Industrial Area Development Board for a period of 10 years, to be transferred to the lessee (the Company) at the end of such period (or extension thereof) on fulfillment of all lease terms and conditions. Consequently, the leasehold land is not amortized.

3. Capital Commitments:

Estimated amount of contracts on capital account not provided for (net of advances) Rs.12.37 Lakhs (previous year Rs.22.18 Lakhs).

4. Contingent Liabilities not provided for:

i) product Warranties - Amount not ascertainable.

ii) Show cause notices received from Excise Authorities under dispute - Rs.282.30 Lakhs (previous year Rs.259.17 Lakhs).

iii) Sales Tax demands under dispute - Rs.2286.16 Lakhs (previous year Rs.2286.16 Lakhs).

iv) income Tax contingent Rs.0.63 Lakhs (previous year Rs.0.63 Lakhs)

v) Guarantees given on behalf of the company by Bank - Rs.177.15 Lakhs (previous year Rs.93.28 Lakhs).

vi) open Letter of credit Rs.807.97 Lakhs (previous year Rs.616.71 Lakhs).

5. information relating to opening and closing stocks of each class of goods produced and sales in respect of each class of finished goods:

Figures for the previous year are shown in brackets.

6. The net sales for the year 2016-17, as per statement of Profit and Loss, includes sale of scrap of Rs.71.26 Lakhs. (previous year - Rs.183.40 Lakhs).

7. The excise duty and sales tax recovered from customers is shown as a deduction from the gross turnover in the Statement of Profit and Loss. Increase / decrease in the excise duty provision between opening and closing stock of finished goods is shown under other expenses / other income in the Statement of Profit and Loss. The excise duty recovered during the year and deducted from gross turnover amounted to Rs.575.59 Lakhs (previous year Rs.539.35 Lakhs).

8. Related Party Disclosures:

I) List of related parties with whom transactions have taken place during the year or where balances are outstanding and their relationship:

a. Associates:

i. Uni Deritend Ltd.

ii. chemicals & Ferro Alloys pvt. Ltd.

iii. Neterson Technologies pvt. Ltd.

iv. Anosh Finance & investment pvt. Ltd.

v. Neterwala consulting & corporate services Ltd.

vi. Uni Klinger Ltd.

b. Key Managerial personnel: shri F.D. Neterwala - chairman Shri.K.K.Tamhaney - Chief Executive Officer Shri.J.D.Divekar - Chief Financial Officer shri.M.s. Ashar - company secretary

9. The dominant source and nature of risk and return associated with the products manufactured by the company not being significantly different, both product wise and geographically, the Company has a single business segment. Consequently segmental information as required under Accounting Standard No. 17 on ‘Segment Reporting’ has not been given.

10. The Company has not received the required information from suppliers regarding their status Micro, Small and Medium Enterprises Development Act, 2006.

11. The company has paid under Voluntary Retirement Scheme (VRS) an amount of ''Nil (previous year Rs.36.35 Lakhs) to the unionized category of employees.

The company has also paid Rs.Nil (previous year Rs.14.86 Lakhs) to other employees not covered under this scheme on account of their full and final settlement.

Both these payments have been shown as an exceptional item in the statement of profit and loss account.

12. Deferred tax assets / liabilities (net) shown in the balance sheet arises on account of reversible timing differences in respect of :

Deferred tax asset on unabsorbed depreciation as per income Tax provisions has been recognized as the Company is very confident of recouping the same against the future taxable profits as contemplated in Accounting Standard 22 - ‘Accounting for taxes on income’. Deferred tax asset on other carried forward business loss as per income Tax provisions has not been recognized as there is no virtual certainty of recouping the same against future taxable profits of the eligible future years.

13. Pursuant to notification issued by the Ministry of Corporate Affairs on 29th December, 2011, foreign exchange fluctuation gain of Rs.80.22 Lakhs (previous year - loss of Rs.170.61 Lakhs) arising due to exchange fluctuation on long term foreign currency loan availed for acquisition of depreciable capital assets, has been capitalized.

14. Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year’s presentation.


Mar 31, 2016

1. Capital Commitments:

Estimated amount of contracts on capital account not provided for (net of advances) Rs.2 2.18 lacs (Previous year Rs. 8.55 lacs).

2. Contingent Liabilities not provided for:

3. Product Warranties - Amount not ascertainable.

4. Show cause notices received from Excise Authorities under dispute - Rs. 259.17 lacs (Previous year Rs. 363.66 lacs).

5. Sales Tax demands under dispute - Rs.2286.16 lacs (Previous year Rs. 2,287.55 lacs).

6. Income Tax Contingent Rs. 0.63 lacs ( Previous year nil)

7. Guarantees given on behalf of the Company by Bank - Rs. 93.28 lacs (Previous year Rs. 94.21 lacs).

8. Open Letter of Credit Rs. 616.71 lacs (Previous year Rs. 324.67 lacs).

9. The net sales for the year 2015-16, as per statement of Profit and Loss, includes sale of scrap of Rs.183.40 lacs. (Previous year - Rs. 520.46 lacs).

10. The excise duty and sales tax recovered from customers is shown as a deduction from the gross turnover in the Statement of Profit and Loss. Increase / decrease in the excise duty provision between opening and closing stock of finished goods is shown under other expenses / other income in the Statement of Profit and Loss. The excise duty recovered during the year and deducted from gross turnover amounted to Rs. 539.35 lacs (previous year Rs. 449.29 lacs).

11. Related Party Disclosures:

12. List of related parties with whom transactions have taken place during the year or where balances are outstanding and their relationship:

13.. Associates:

14. Uni Deritend Ltd.

15. Universal Ferro & Allied Chemicals Ltd.

16. Netel (India) Ltd.

17. Neterson Technologies Pvt. Ltd.

18. Anosh Finance & Investment Pvt. Ltd.

19. Neterwala Consulting & Corporate Services Ltd.

20. Uni Klinger Ltd.

21. Key Managerial Personnel:

Shri F. D. Neterwala - Chairman

Shri. K. K.Tamhaney - Chief Executive Officer Shri. J. D. Divekar - Chief Financial Officer Shri. M. S. Ashar - Company Secretary

22. The dominant source and nature of risk and return associated with the products manufactured by the Company not being significantly different, both product wise and geographically, the Company has a single business segment. Consequently segmental information as required under Accounting Standard No. 17 on ‘Segment Reporting’ has not been given.

23. The Company has not received the required information from suppliers regarding their status Micro, Small and Medium Enterprises Development Act, 2006.

24. During the year, the Company has paid Voluntary Retirement Scheme (VRS) to the Unionized category of the employees opted for the VRS and a total amount of Rs. 36.35 lacs (Previous year Rs. 594.46 lacs) has been paid to these employees.

The Company has also paid during the year Rs. 14.86 lacs (Previous year Rs. 59.34 lacs) to other employees not covered under this scheme on account of their full and final settlement.

Both these payments have been shown as an exceptional items in the financial statements.

25. Deferred tax assets / liabilities (net) shown in the balance sheet arises on account of reversible timing differences in respect of:

26. Pursuant to notification issued by the Ministry of Corporate Affairs on 29th December, 2011, Foreign exchange fluctuation Loss of Rs. 170.61 lacs (Previous year Gain of Rs. 365.64 lacs) arising due to restatement of long term foreign currency loan at the exchange rate prevailing at the close of the year has been capitalized. The said loan was availed for acquisition of depreciable capital assets.

27. Remuneration to Executive Director included in employee benefits expenses in earlier year was in excess of limits prescribed under Section 197 read with Section 198 and Schedule V of the Companies Act, 2013 by Rs. 27.70 lacs for which necessary application was made to the Central Government for approval during the year. The application is still pending for approval.

28. Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year’s presentation.


Mar 31, 2015

1. Corporate information

The Company produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes. Manufacturing quality alloy products is its prime focus. The Company has its registered office at Liberty Building , Sir Vithaldas Thakersey Marg, Mumbai and its plant at Thane and also set up Greenfield project at Dharwad which is operesional from November, 2013 .

a) Terms / rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. the euqity shareholders are entitled to dividend proposed by the Board of Directors and approved by the shareholders in the ensuing Annual General Meeting. in the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. the distribution will be in proportion to the number of equity shares held by the shareholders.

The above term loan is secured by first exclusive charge over entire movable and immovable fixed assets of the Company at Dharwad project including equitable mortgage of factory land and building (Created out of this term loan)

The loan is also secured by collateral securites of:

(1) First hypothication charge on entire movable fixed assets other than vehicles of the company.

(2) Extension of equitable mortgage on factory land and building at thane plant.

(3) second charge by way of entire current assets of the company. the term loan is repayable in equal 48 monthly installments of Rs. 62.50 lacs from April, 2014. the above loans included foreign currency term loan amounting to Rs. 1680.12 lacs (previous year Rs. 2047.83 lacs)

2. Capital Commitments:

Estimated amount of contracts on capital account not provided for (net of advances) Rs. 8.55 lacs (Previous year Rs. 36.79 lacs).

3. Contingent Liabilities not provided for:

i) Product Warranties - Amount not ascertainable.

ii) Show cause notices received from Excise Authorities under dispute - Rs. 363.66 lacs (Previous year Rs. 260.64 lacs).

iii) Sales Tax demands under dispute - Rs. 2287.55 lacs (Previous year Rs. 516.79 lacs).

iv) Guarantees given on behalf of the Company by Bank - Rs. 94.21 lacs (Previous year Rs. 78.35 lacs).

v) Open Letter of Credit Rs. 324.67 lacs (Previous year Rs. 273.34 lacs).

4. information relating to opening and closing stocks of each class of goods produced and sales in respect of each class of finished goods:

5. The net sales for the year 2014-15, as per Statement of Profit and Loss, includes sale of scrap of Rs. 520.46 lacs. (previous year - Rs. 525.19 lacs)

6. The excise duty and sales tax recovered from customers is shown as a deduction from the gross turnover in the Statement of Profit and Loss. Increase / decrease in the excise duty provision between opening and closing stock of finished goods is shown under other expenses / other income in the Statement of Profit and Loss. The excise duty recovered during the year and deducted from gross turnover amounted to Rs. 449.29 lacs (previous year Rs. 431.02 lacs).

7. Related Party Disclosures:

i) List of related parties with whom transactions have taken place during the year or where balances are outstanding and their relationship:

a. Associates:

i. uni Deritend ltd.

ii. universal Ferro & allied chemicals ltd.

iii. Netel (india) ltd.

iv. Neterson Technologies pvt. ltd.

v. anosh Finance & investment pvt. ltd.

vi. Neterwala consulting & corporate services ltd.

vii. uni Klinger ltd.

b. Key Managerial personnel:

shri F.D. Neterwala - chairman

shri M. K. Fondekar - Executive Director (up to 31/12/2014)

Shri K.K.Tamhaney - Chief Executive Officer (From 01/01/2015)

Shri J.D.Divekar - Chief Financial Officer

Shri M. s. ashar - company secretary

8. The dominant source and nature of risk and return associated with the products manufactured by the Company not being significantly different, both product wise and geographically, the Company has a single business segment. Consequently segmental information as required under Accounting Standard No. 17 on 'Segment Reporting' has not been given.

9. The Company has not received the required information from suppliers regarding their status Micro, Small and Medium Enterprises Development Act, 2006.

10. During the year, the Company has paid Voluntary Retirement Scheme (VRS) to the Unionised category of the employees. out of eighty seven employees covered under the scheme, eighty employees opted for the vrs and a total amount of Rs. 594.46 lacs has been paid to these employees.

The company has also paid compensation of Rs. 59.34 lacs to other employees not covered under this scheme on account of their full and final settlement.

Both these payments have been shown as an exceptional items in the financial statements of profit and loss.

11. Deferred tax assets / liabilities (net) shown in the balance sheet arises on account of reversible timing differences in respect of :

*Deferred tax asset on unabsorbed depreciation as per Income Tax provisions has been recognized during the year, as the Company is very confident of recouping the same against the future taxable profits as contemplated in Accounting standard 22-'Accounting for taxes on income'.

12. interest expense shown in note 25 - 'Finance Cost' is net off Rs. Nil (previous year Rs. 156.23 lacs) being interest costs capitalised in respect of Dharwad project.

13. Pursuant to notification issued by the Ministry of Corporate Affairs on 29th December, 2011, Foreign exchange fluctuation Profit of Rs. 365.64 lacs arising due to restatement of long term foreign currency loan at the exchange rate prevailing at the close of the year has been capitalised. The said loan was availed for acquisition of depreciable capital assets.

14. Pursuant to the implementation of Schedule ii to the Companies Act, 2013, the Company has revised the useful life of its fixed assets. As envisaged under the Schedule, the Company is now charging the depreciation on its existing tangible assets on written down value over the balance of the assets keeping residual value of five percent. The depreciation charge during the year pertaining to the assets whose revise useful life has expired prior to commencement of the financial year has been adjusted against retained earning as per the requirements of schedule ii.

An amount of Rs. 6.52 lacs has been adjusted against the opening surplus which is net of deferred tax of Rs. 2.92 lacs.

Due to the change in the useful life of the asset, the depreciation charged during the year (including adjusted against opening surplus) is higher by Rs. 135.23 lacs.

15. Remuneration to Executive Director included in employee benefit expenses is in excess of the limits prescribed under section 197 read with section 198 and schedule v of the companies act, 2013 by Rs. 27.70 Lacs the Excess remuneration is subject to the approval of central Government for which the company is in the process of making an application.

16. Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year's presentation.


Mar 31, 2014

1. Corporate Information

The company produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes. Manufacturing quality alloy products is its prime focus. The company has its registered office at Liberty Building, sir vithaldas Thakersey Marg, Mumbai and its plant at Thane and also set up Greenfield project at Dharwad which is operesional from November, 2013 .

a)Terms / rights attached to equity shares

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The euqity shareholders are entitled to dividend proposed by the Board of Directors and approved by the shareholders in the ensuing Annual General Meeting.

in the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Capital Commitments:

Estimated amount of contracts on capital account not provided for (net of advances) Rs. 36.79 lacs (Previous year Rs. 1128.47 lacs).

3. Contingent Liabilities not provided for:

i) Product Warranties - Amount not ascertainable.

ii) Show cause notices received from Excise Authorities under dispute - Rs. 260.64 lacs (Previous year Rs. 85.35 lacs).

iii) Sales Tax demands under dispute - Rs. 516.79lacs (Previous year Rs. 454.14 lacs).

iv) Guarantees given on behalf of the Company by Bank - Rs. 78.35 lacs (Previous year Rs. 72.75 lacs).

v) Open Letter of Credit Rs. 273.34 lacs (Previous year Rs. 102.48 lacs).

3. The net sales for the year 2013-14, as per statement of Profit and Loss, includes sale of scrap of Rs. 525.19 lacs. (previous year - Rs. 528.85 lacs)

4. The excise duty and sales tax recovered from customers is shown as a deduction from the gross turnover in the Statement of Profit and Loss. increase / decrease in the excise duty provision between opening and closing stock of finished goods is shown under other expenses / other income in the Statement of Profit and Loss. The excise duty recovered during the year and deducted from gross turnover amounted to Rs. 431.02 lacs (previous year Rs. 499.64 lacs).

5. The dominant source and nature of risk and return associated with the products manufactured by the Company not being significantly different, both product wise and geographically, the Company has a single business segment. consequently segmental information as required under Accounting standard No. 17 on ''segment Reporting'' has not been given.

6. in the absence of necessary information with the Company relating to the registration status of suppliers under Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be compiled and disclosed.

a. Leave entitlement benefits of employees has been treated as Long Term Employee Benefits as per provisions of Accounting Standard 15 (Revised) and the reduction in provision for the year Rs. 1.27 lacs is credited to the statement of profit and loss.(previous Year Rs. 15.10 lacs debited )

7. Subsequent to the Balance Sheet date, the Company offered Voluntary Retirement Scheme to the Unionised category of the employees. Eighty employees opted for the vrs and Rs. 594.47 lacs was paid towards vrs compensation.

8. interest expense shown in note 24 - ''Finance Cost'' is net of Rs. 156.23 lacs (previous year Rs. 121.13) being interest costs capitalised in respect of Dharwad project.

9. Pursuant to notification issued by the Ministry of Corporate Affairs on 29th December, 2011, Foreign exchange fluctuation loss of Rs. 45.77 lacs arising due to restatement of long term foreign currency loan at the exchange rate prevailing at the close of the year has been capitalised. The said loan was availed for acquisition of depreciable capital assets.

10. Remuneration to Executive Director included in employee benefit expenses is in excess of the limits prescribed under section 309 read together with section 198 and 349 of the companies Act, 1956 by Rs. 8.25 lacs. The excess remuneration is subject to the approval of central Government for which the company is in the process of making an application.

11. previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year''s presentation.


Mar 31, 2013

1. Corporate Information

The Company produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes. Manufacturing quality alloy products is its prime focus. The Company has its registered office at Liberty Building, Sir Vithaldas Thakersey Marg, Mumbai and its plant at Thane.

2. Capital Commitments:

Estimated amount of contracts on capital account not provided for (net of advances) Rs. 1128.47 lacs (Previous year Rs. 1436.98 lacs).

3. Contingent Liabilities not provided for:

i) Product Warranties - Amount not ascertainable.

ii) Show cause notices received from Excise Authorities under dispute Rs. 85.35 lacs (Previous year Rs. 48.99 lacs).

iii) Sales Tax demands under dispute Rs. 454.14 lacs (Previous year Rs. 334.62 lacs).

iv) Guarantees given on behalf of the Company by Bank Rs. 72.75 lacs (Previous year Rs. 13.54 lacs).

v) Open Letter of Credit Rs. 102.48 lacs (Previous year Rs. 65.83 lacs).

vi) Income Tax demands under dispute - Rs. Nil (Previous year Rs.16.13 lacs)

4. The net sales for the year 2012-13, as per statement of Profit and Loss, includes sale of scrap of Rs. 528.85 lacs. (previous year Rs. 368.50 lacs)

5. The excise duty and sales tax recovered from customers is shown as a deduction from the gross turnover in the Statement of Profit and Loss. Increase / decrease in the excise duty provision between opening and closing stock of finished goods is shown under other expenses / other income in the Statement of Profit and Loss. The excise duty recovered during the year and deducted from gross turnover amounted to Rs. 499.64 lacs (previous year Rs. 427.37 lacs).

6. Related Party Disclosures:

I) List of related parties with whom transactions have taken place during the year or where balances are outstanding and their relationship:

a) Associates:

i. Uni Deritend Ltd.

ii. Universal Ferro & Allied Chemicals Ltd.

iii. Netel (India) Ltd.

iv. Neterson Technologies Pvt. Ltd.

v. Anosh Finance & Investment Pvt. Ltd.

vi. Neterwala Consulting & Corporate Services Ltd.

vii. S D N Company

viii. Uni Klinger Ltd.

7. The dominant source and nature of risk and return associated with the products manufactured by the Company not being significantly different, both product wise and geographically, the Company has a single business segment. Consequently segmental information as required under Accounting Standard No. 17 on [Segment ReportingHhas not been given.

8. In the absence of necessary information with the Company relating to the registration status of suppliers under Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be compiled and disclosed.

9. Interest expense shown in note 23 - ''Finance Cost'' is net of Rs. 121.13 lacs (previous year Rs. Nil) being interest costs capitalised in respect of Dharwad project lying in capital work in progress.

10. Previous year figures have been regrouped / reclassified wherever necessary to confirm to the current year''s presentation.


Mar 31, 2012

1. Corporate Information

The Company produces static, centrifugal castings and assemblies in heat and corrosion resistant alloys and is a leader in alloy steel castings for decanters and reformer tubes. Manufacturing quality alloy products is its prime focus. The Company has its registered office at Liberty Building, Sir Vithaldas Thakersey Marg, Mumbai and its plant at Thane.

a) Terms I rights attached to equity shares

The company has only one class of equity shares having a par value of Rs10 per share. Each holder of equity shares is entitled to one vote per share. The equity shareholders are entitled to dividend proposed by the Board of Directors and approved by the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Capital Commitments:

Estimated amount of contracts on capital account not provided for (net of advances) Rs 1436.98 Lacs. (Previous year Rs 5.42 Lacs).

3. Contingent Liabilities not provided for:

i) Product Warranties - Amount not ascertainable.

ii) Show cause notices received from Excise Authorities under dispute - Rs 48.99 Lacs (Previous year Rs 39.60 Lacs).

iii) Sales tax demands under dispute - Rs 334.62 Lacs (Previous year Rs 282.23 Lacs).

iv) Guarantees given on behalf of the Company by Bank - Rs 13.54 Lacs (Previous year Rs 210.80 Lacs).

v) Open Letter of Credit Rs. 65.83 Lacs (Previous year Rs NIL).

vi) Income Tax demand under dispute - Rs 16.13 Lacs (Previous year Rs 16.13 Lacs)

Figures for the previous year are shown in brackets.

Note:

The net sales for the year 2011-12, as per statement of Profit and Loss, includes sale of scrap of Rs 368.50 Lacs. (Previous year 1 152.77 Lacs)

4. As per the Lease Agreement entered into with KIADB for acquisition of 30 acres of land at Dharwad in the financial year 2009-10, the initial amounts paid as allotment consideration is to be adjusted against the final price of land, which as per the terms of the agreement is to be transferred in the Company's name at the end of the initial lease period of 10 year subject to the fulfillment of certain conditions. Accordingly, Rs 44.25 lacs erroneously amortised in the previous years, treating the initial amounts paid as non refundable lease premium, was written back and shown under - Prior Period adjustment in the financial year 2010-11.

5. The excise duty and sales tax recovered from customers is shown as a deduction from the gross turnover in the Statement of Profit and Loss. Increase / decrease in the excise duty provision between opening and closing stock of finished goods is shown under other expenses / other income in the Statement of Profit and Loss. The excise duty recovered during the year and deducted from gross turnover amounted to Rs 427.37 lacs (previous year Rs 372.51 lacs).

6. Related Party Disclosures:

I) List of related parties with whom transactions have taken place during the year or balances are outstanding:

a) Associates:

i Uni Deritend Ltd.

ii Universal Ferro & Allied Chemicals Ltd.

iii Netel (India) Ltd.

iv Neterson Technologies Pvt. Ltd.

v Anosh Finance & Investment Pvt. Ltd.

vi Neterwala Consulting & Corporate Services Ltd.

vii S D N Company

b) Key Managerial Personnel: Shri F.D. Neterwala - Chairman

Shri M.K. Fondekar - Executive Director

7. The dominant source and nature of risk and return associated with the products manufactured by the Company not being significantly different, both product wise and geographically, the Company has a single business segment. Consequently segmental information as required under Accounting Standard No. 17 on 'Segment Reporting' has not been given.

8. In the absence of necessary information with the Company relating to the registration status of suppliers under Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be compiled and disclosed.

a. Leave entitlement benefits of employees has been treated as Long Term Employee Benefits as per provisions of Accounting Standard 15 (Revised) and the reduction in provision for the yearRs 16.30 lacs is credited to the statement of Profit and Loss. (Previous Year Rs 4.31 lacs debited )

9. Till the year ended 31st March, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its financial statements. During the year ended 31st March, 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has accordingly reclassified previous year figures to conform to this year's classification.


Mar 31, 2011

1. CAPITAL COMMITMENT:

Estimated amount of contracts on capital account not provided for (net of advances) Rs. 5.42 lacs (previous year Rs. 85.75 lacs).

2. CONTINGENT LIABILITIES NOT PROVIDED FOR:

i) Product warranties - amount not ascertainable.

ii) Show cause notices received from excise authorities under dispute – Rs. 39.60 lacs (previous year Rs. 118.07 lacs).

iii) Sales tax demands under dispute – Rs. 282.23 lacs (previous year Rs. 104.12 lacs).

iv) Guarantees given on behalf of the company by Bank – Rs. 210.80 lacs (previous year Rs. 202.45 lacs).

v) Open letter of credit Rs.. Nil (previous year Rs. 31.20 lacs).

vi) Income tax demand under dispute - Rs. 14.44 lacs (previous year Nil)

3. Pursuant to a share purchase agreement dated 24th september 2010 entered into between Uni bex Alloy products ltd., (the company) along with Neterwala Group of companies, Manior petro india ltd. a joint venture company and Manior industries, 9,67,800 equity shares of Manior petro India ltd., were transferred/ sold to Manior industries.

Upon such sale of shares to Manoir industries, the transfer of commercial rights agreement, the Non compete agreement and Joint venture agreement entered into between the company and Manior petro india ltd., stood terminated and the rights and obligations of the respective parties have reverted to status ante i.e. as they were in prior to the execution of said agreements and the commercial rights were earlier transferred to Manoir petro india have regained and reverted back to uni Abex. consequently, 125,000 euros (equi. to Rs. 83.48 lacs) receivable from Manior industries ltd., [as contemplated under transfer of commercial rights agreement] has been considered as compensation paid towards reacquisition of commercial rights by the company and the same (Rs. 83.48 lacs) is treated under intangible asset to be amortised over a period of five years.

4. As per the lease agreement entered into with KiaDB for acquisition of 30 acres of land at Dharwad in earlier year, the initial amounts paid as allotment consideration is to be adjusted against the final price of land, which as per the terms of the agreement is to be transferred in the company’s name at the end of the initial lease period of 10 years subject to the fulfillment of certain conditions. accordingly ` 44.25 lacs erroneously amortised in the previous years, treating the initial amounts paid as non refundable lease premium, has been written back and shown under – prior period adjustment.

Notes:

(i) In terms of endorsement made on 26th september, 1979, the company is permitted to manufacture 50 tones of non-ferrous alloy casting and as per approval granted on 10th april, 1985, the company permitted to Manufacture the centrifugally cast alloy iron casting within the overall licensed capacity.

(ii) Installed capacity has been certified by the chief operating officer of the company and not verified by the auditors, this being a technical matter.

(iii) Production figures have been arrived at on the basis of the sales plus closing stock, less opening stock and accordingly excludes in case of high alloy steel castings, castings produced in excess of ordered quantity/sales reversals expected to be re-melted and classified in the books as work-in-process.

(iv) The Net sales for the year 2010-11, as per profit and loss account, includes sale of scrap of Rs. 152.77 lacs. (p.y – Rs. 469.85 lacs)

5. The excise duty recovered from customers amounting to Rs. 372.51 lacs (previous year Rs. 356.19 lacs) is shown as a deduction from the gross turnover in the profit and loss account. the excise duty on the difference between the opening and closing stock of finished goods has been shown under material cost in the profit and loss account.

6 Auditor's remuneration (exclusive of service tax) - included in Miscellaneous Expenses -

a) Statutory audit fees - Rs. 1.60 Lacs (Previous year ` 1.35 Lacs)

b) Other Services - ` 0.45 Lacs (Previous year ` 0.45 Lacs)

c) Out of pocket expenses - ` 0.17 Lacs (Previous year ` 0.11 Lacs)

7. Related Party Disclosures:

List of related parties with whom transactions have taken place during the year or balances are outstanding: i) associates:

a. Uni Deritend ltd.

b. universal Ferro & allied chemicals ltd.

c. Netel india ltd.

d. Neterson technologies pvt. ltd.

e. anosh Finance & investment ltd.

f. Neterwala consulting & corporate services ltd.

g. Manoir petro india ltd. h. s D N company

ii) Key Managerial personnel: shri F.D. Neterwala - chairman

shri M.K. Fondekar – executive Director

8. The dominant source and nature of risk and return associated with the products manufactured by the company not being significantly different, both product wise and geographically, the company has a single business segment. consequently segmental information as required under accounting standard No. 17 on ‘segment reporting’ has not been given.

9. In the absence of necessary information with the company, relating to registration status of supplier under Micro, small and Medium enterprises Development act, 2006, the information required under the said act could not be compiled and disclosed.

10. Disclosure Pursuant to Accounting Standard – 15 "Employee Benefits"

b. Leave entitlement benefits of employees has been treated as long term employee Benefits as per provisions of accounting standard 15 (revised) and the amount for the year of Rs.. 4.31 lacs (previous year Rs.. 24.24 lacs) is debited to profit and loss account.

11. The Balance sheet abstract and the company‘s general business profile as required by part iv of schedule vi to the companies act, are given in annexure.

12. Prior year figures have been regrouped / reclassified wherever necessary to conform to the current year’s presentation.

Signatures to Schedule "A" to "O", which forms an integral part of the accounts.


Mar 31, 2010

1. CAPITAL COMMITMENT:

Estimated amount of contracts on capital account not provided for (net of advances) Rs.85.75 Lacs (Previous year Rs. 118.30 Lacs).

2. CONTINGENT LIABILITIES NOT PROVIDED FOR:

i) Product Warranties - Amount not ascertainable.

ii) Show cause notice received from Excise Authorities under dispute - Rs. 118.07 Lacs (Previous year Rs. 246.93 Lacs).

iii) Sales tax matters under dispute - Rs. 104.12 Lacs (Previous year Rs. 90.62 Lacs).

iv) Guarantees given on behalf of the Company by Bank- Rs. 202.45 Lacs (Previous year Rs. 441.17 Lacs).

v) Open Letter of Credit Rs.31.20 Lacs (Previous year Rs. Nil).

3. a) There to , the Company followed the policy of charging off cost incurred on development of moulds in the year in which such costs were incurred. During the year the companyhas changed this policy and is now capitalizing such moulds not specifically recoverable from customers under fixed assets. As a result of this change, cost of moulds charged to Profit & Loss Account is less by Rs.43.23 lacs, depreciation for the year is higher by Rs.5.12 lacs and profit before tax for the year is higher by Rs.38.11 lacs.

b) Hitherto, the Company followed the policy of capitaising the acquired software under computer equipment category and was charging depreciation on same at the rates prescribed under schedule14 of the Companies Act 1956 for such categories. During the year the Company has changed this policy and is now capitalizing computer software under intangible fixed assets and is amortising the same equally over the period of 60 months in compliance with Accounting Standard 26 - Accounting for Intangible Assets issued by Institute of Chartered Accountants of India. As a result of this change, the depreciation / amortization charged for the year is lower by Rs. 15.37 lacs with a corresponding effect on the Profit for the year and the Reserves and Surplus.

4. The excise duty recovered from customers amounting to Rs. 356.19 Lacs (Previous year Rs. 429.41 Lacs) is shown as a deduction from the gross turnover in the Profit & Loss Account. The excise duty on the difference between on opening and closing stock of finished goods has been shown under material cost in the Profit & Loss Account.

5. Auditors remuneration (exclusive of service tax) - included in Miscellaneous Expenses -

a) Statutory audit fees - Rs. 1.35 Lacs (Previous year Rs. 1.35 Lacs)

b) Other Services - Rs. 0.45 Lacs (Previous year Rs. 0.45 Lacs)

c) Out of pocket expenses - Rs. 0.11 Lacs (Previous year Rs.0.11 Lacs)

6. Related Party Disclosures:

List of related parties with whom transactions have taken place during the year: i) Associates:

a. Uni Deritend Ltd.

b. Universal Ferro & Allied Chemicals Ltd.

c. Dai-ichi Karkaria Ltd.

d. Uni Klinger Ltd.

e. Netel India Ltd.

f. Neterson Technologies Pvt. Ltd.

g. Anosh Finance & Investment Pvt. Ltd.

h. Neterwala Consulting & Corporate Services Ltd.

i. Manoir Petro India Ltd. j. S D N Company

ii) Key Managerial Personnel: Shri F. D. Neterwala - Chairman

Shri M. K. Fondekar- Executive Director w.e.f. 01.07.09 Shri U. M. Gaitonde - President Upto 13.6.09

7. Interest in Joint Venture

The Companys interest as a venturer in jointly controlled entity formed during the year is as given below:

Name of Jointly Controlled Entity Percentage of ownership

interest as at 31st March,10

Manoir Petro India Limited 20 %

(Incorporated in India)

The Companys interest in above joint venture company is reported as Long Term Investment (Schedule E) and is stated at cost.

8. The dominant source and nature of risk and return associated with the products manufactured by the Company not being significantly different, both product wise and geographically, the company has a single business segment. Consequently segmental information as required under Accounting Standard No. 17 on Segment Reporting has not been given.

9. In the absence of necessary information with the company, relating to registration status of supplier under Micro, Small and Medium Enterprises Development Act, 2006, the information required under the said Act could not be compiled and disclosed.

10. The Balance Sheet abstract and the Companys general business profile as required by Part IV of Schedule VI to the Companies Act, are given in annexure.

11. Prior year figures have been regrouped / reclassified wherever necessary to conform to the current years presentation.

Signatures to Schedule "A" to "O", which forms an integral part of the accounts.

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