Notes to Accounts of Incredible Industries Ltd.

Mar 31, 2018

1. Derivative instruments and unhedged foreign currency exposure Forward Contract

For minimizing the risk of currency exposure, the Forward Cover Contracts are of Nil (USD Nil) for trade receivables.

33. Related Party Disclosures

a) Name of related parties and related party relationship

Key Management Personnel Mr. Jugal Kishore Agarwal (Managing Director)

Mr. Mohan Lal Agarwal (Director)

Mr. Chandra Shekhar Agarwal (Independent Director) Mr. Mahesh Kumar Agarwal (Director)

Mr. Asit Baran Dasgupta (Independent Director)

Ms. Archana Gupta Sha (Independent Director)

Mrs. Sonam Agarwal (Independent Director)

Mr. Bikash Roy Chowdhury (Chief Financial Officer) Mr. Bharat Agarwal (Company Secretary)

Relatives of Key Management personnel Mr. Ghanshyam Das Agarwal (Brother of Director)

Mr. Manoj Kumar Agarwal (Brother of Director)

Mr. Nirmal Kumar Agarwal (Brother of Director )

Mr. Sachin Agarwal ( Son of Director )

Mr. Naveen Agarwal ( Son of Director )

Enterprises over which Key Management Personnel / Adhunik Corporation Ltd.

Share Holders / Relatives have significant influence Adhunik Inf_ot_ech Ltd.

Adhunik Power & Natural Resource Ltd.

Adhunik Alloys & Power Ltd.

Sungrowth Share & Stocks Ltd.

Mahananda Suppliers Ltd.

Adhunik Meghalaya Steels Private Ltd.

Adhunik Metaliks Ltd. and its subsidiary

2. Capital Management

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through equity and other long-term/short-term borrowings. The Company’s policy is aimed at combination of short-term and long-term borrowings.

The Company monitors the capital structure on the basis of total debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

3. Financial risk management objectives and policies

The Company’s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, security deposits, employee liabilities. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include trade and other receivables, and cash and short-term deposits that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees the management of these risks. The Company’s senior management is supported by the Board that advises on financial risks and the appropriate financial risk governance framework for the Company. The Board provides assurance to the Company’s senior management that the Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives. All derivative activities for risk management purposes are carried out by specialist personnel’s that have the appropriate skills, experience and supervision. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below.

Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits and derivative financial instruments.

The sensitivity analysis in the following sections relate to the position as at 31 March 2018 and 31 March 2017.

The sensitivity analysis have been prepared on the basis that the amount of debt and derivatives.

The following assumptions have been made in calculating the sensitivity analysis:

The sensitivity of the relevant profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2018, 31 March 2017 and 1 April 2016.

The sensitivity of equity is calculated by considering the effect of any associated derivatives at 31 March 2018 and 31 March

2017 for the effects of the assumed changes of the underlying risk.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

The Company is subject to variable interest rates on some of its interest bearing liabilities. The Company’s interest rate exposure is mainly related to debt obligations. The Company also uses a mix of interest rate sensitive financial instruments to manage the liquidity and fund requirements for its day to day operations like short term loans.

The risk estimates provided assume a parallel shift of 100 basis points interest rate across all yield curves. This calculation also assumes that the change occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The period end balances are not necessarily representative of the average debt outstanding during the period.

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected, after the impact of derivative instruments. With all other variables held constant, the Company’s profit before tax is affected through the impact on floating rate borrowings, as follows:

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company, as per its risk management policy, uses foreign exchange and other derivative instruments primarily to hedge foreign exchange exposure. Any weakening of the functional currency may impact the Company’s cost of imports and cost of borrowings and consequently may increase the cost of financing the Company’s capital expenditures.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. It hedges a part of these risks by using derivative financial instruments in accordance with its risk management policies.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rates, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all currencies other than US Dollars is not material.

The movement in the post-tax effect is a result of a change in the fair value of derivative financial instruments not designated in a hedge relationship and monetary assets and liabilities denominated in '', where the functional currency of the entity is a currency other than. Although the derivatives have not been designated in a hedge relationship, they act as an economic hedge and will offset the underlying transactions when they occur.

Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments.

Customer credit risk is managed by each divisions subject to the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from various banks. The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts, bank loans, buyer’s credit and other means of borrowings. The company invests its surplus funds in liquid schemes of mutual funds, which carry no/low mark to market risk.

The Company assessed the concentration of risk with respect to refinancing its debt and concluded it to be low. The Company has access to a sufficient variety of sources of funding and debt maturing within 12 months can be rolled over with existing lenders.

Level 3 inputs are unobservable inputs for the asset or liability.

The investments included in Level 2 of fair value hierarchy have been valued using quotes available for similar assets and liabilities in the active market. The investments included in Level 3 of fair value hierarchy have been valued using the cost approach to arrive at their fair value. The cost of unquoted investments approximate the fair value because there is a range of possible fair value measurements and the cost represents estimate of fair value within that range

The following table summarizes financial assets and liabilities measured at fair value on a recurring basis and financial assets that are not measured at fair value on a recurring basis (but fair value disclosure are required):

Notes:

i) The short-term financial assets and liabilities are stated at amortized cost which is approximately equal to their fair value.

ii) Derivatives are fair valued using market observable rates and published prices together with forecast cash flow information where applicable.

iii) Investments are stated at amortized cost which is approximately equal to their fair value.

iv) There have been no transfers between level 1 and level 2 for the years ended March 31, 2018 and 2017.

Notes:

1. To comply with the Companies (Accounting Standard) Rules, 2006, certain account balances have been regrouped as per the format prescribed under Division II of Schedule III to the Companies Act, 2013.

2. Financial liabilities and related transaction costs:

Borrowings and other financial liabilities which were recognized at historical cost under previous GAAP have been recognized at amortized cost under IND AS with the difference been adjusted to opening retained earnings. Under previous GAAP, transaction costs incurred in connection with borrowings were amortized equally over the tenure of the borrowings. Under IND AS, transaction costs are deducted from the initial recognition amount of the financial liability and charged over the tenure of borrowing using the effective interest method.

3. Financial assets at amortized cost:

Certain financial assets held on with an objective to collect contractual cash flows in the nature of principal and interest have been recognized at amortized cost on transition date as against historical cost under the previous GAAP with the difference been adjusted to the opening retained earnings.

4. Deferred tax as per balance sheet approach:

Under previous GAAP, deferred tax was accounted using the income statement approach, on the timing differences between the taxable profit and accounting profits for the period. Under IND AS, deferred tax is recognized following balance sheet approach on the temporary differences between the carrying amount of asset or liability in the balance sheet and its tax base. In addition, various transitional adjustments has also lead to recognition of deferred taxes on new temporary differences.

5. Excise duty:

Under previous GAAP, revenue from sale of goods was presented net of excise duty whereas under IND AS the revenue from sale of goods is presented inclusive of excise duty. The excise duty is presented on the face of the Statement of Profit and Loss as part of expenses.

6. Defined benefit liabilities:

Under IND AS, Remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined liability, are recognized in other comprehensive income instead of profit or loss in previous GAAP.

7. Other comprehensive income:

Under IND AS, all items of income and expense recognized in the period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss and “other comprehensive income” includes remeasurements of defined benefit plans, foreign currency monetary item translation difference account, effective portion of gains and losses on cash flow hedging instruments and fair value gain or losses on FVTOCI equity instruments. The concept of other comprehensive income did not exist under previous GAAP.

4. In the opinion of the management, current assets, loans and advances have the value at which these are stated in the balance sheet, if realized in the ordinary course of business, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required.

5. The outstanding balances of Sundry debtors / creditors are subject to confirmation as letters of confirmation of balances from several parties have not been received and hence the balances are subject to adjustments, if any, on reconciliation / settlement of account.

6. In the opinion of the management, leave is meant to be availed of and the employees has been advised to plan their leave in advance while in service and also immediately before superannuation. Accordingly, leave encashment liability for the year has been recognized and provided for only when such encashment was allowed.

7. Unclaimed dividend of earlier years aggregating to '' 1,36,000/- deposited in separated bank account, an amount of '' 68,000/which is liable to transferred to Investor Education Protection Fund (IEPF) has been duly transferred during the year. Inclusion of the said amount does not have any impact on the profitability of the company.

8. Raw materials consumed are accounted after adjustment of normal shortage/surplus of raw materials and rejected raw materials.

9. Previous year figures including those given in brackets have been rearranged where ever necessary to confirm with the current year classification.

---

Mar 31, 2016

Exchange Difference: Exchange differences are recognized as income or as expenses in the period in which they arise.

NOTE 1: In the opinion of the management, current assets, loans and advances have the value at which these are stated in the balance sheet, if realized in the ordinary course of business, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required.

NOTE 2: The outstanding balances of Sundry debtors / creditors are subject to confirmation as letters of confirmation of balances from several parties have not been received and hence the balances are subject to adjustments, if any, on reconciliation / settlement of account.

NOTE 3: In the opinion of the management, leave is meant to be availed of and the employees has been advised to plan their leave in advance while in service and also immediately before superannuation. Accordingly, leave encashment liability for the year has been recognized and provided for only when such encashment was allowed.

NOTE 4: Raw materials consumed are accounted after adjustment of normal shortage/surplus of raw materials and rejected raw materials.

NOTE 5: Unclaimed dividend of earlier years aggregating to Rs. 2,72,000/- deposited in separate bank account, out of which an amount of Rs 68,000/- which is liable to transferred to Investor Education Protection Fund (IEPF) has been duly transferred during the year under audit.

NOTE 6: Keeping in mind, decrease in the net profit by 78.87% in the financial year 2015-16, the Managing Director willingly expressed to forego 50% of his remuneration and receive Rs. 15 Lakhs only, against Rs. 30 Lakhs as per the shareholders’ approval and Employment contract with the company.

NOTE 7: Previous year figures has been regrouped / rearranged where ever necessary.

---

Mar 31, 2015

1 CORPORATE INFORMATION:

Adhunik Industries Ltd ("the company") is a public limited company, domiciled in India and incorporated under the provisions of Companies Act, 1956. Its equity shares are listed on Stock Exchanges in India. The Company is primarily engaged in the manufacture and sale of iron and steel products.

2 Terms / Rights attached to Equity Share

The Company has only one class of issued shares i.e. equity shares having nominal value of Rs.10 per share. Each holder of equity share is entitled to one vote per share and equal right for dividend. The dividend proposed by the Board of Directors is subject to the approval of share holders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity share holders are eligible to receive the remaining assets of the Company after payment of all the preferential amounts, in proportion to their shareholding.

3 Indian Rupee term loan from Banks are secured by way of:

a) The rupee term loan from banks are secured by way of pari pasu first charge over all the fixed assets of the Company both present and future at factory at Angadpur, Durgapur, West Bengal and first charge by way of hypothecation of the Company's movable properties, save and except asset purchased on lease and hire purchase basis.

b) Guarantee and certain collateral securities have been provided by the Promoters/ Directors in their personal capacity.

4 a) Name of Related Parties and nature of relationship

Key Management Personnel

Whole Time Director

Mr. Jugal Kishore Agarwal

Director

Mr. Mohan Lal Agarwal Mr. Mahesh Kumar Agarwal Mr. Ashok Bector Mr.Asit Baran Dasgupta Mr. Shyam Bahadur Singh Ms . Archana Gupta Sha

Chief Financial Officer

Mr. Bikash Roy Chowdhury

Company Secretary

Mr. Bharat Agarwal

Relatives of Key Management Personnel

Mr. Ghanshyam Das Agarwal(Brother of Director)

Mr. Manoj Kumar Agarwal ( Brother of Director)

Mr. Nirmal Kumar Agarwal ( Brother of Director)

Mr. Sachin Agarwal ( Son of Mr Jugal Kishore Agarwal)

Mr. Naveen Agarwal (Son of Mr. Jugal Kishore Agarwal)

Enterprises over which Key Management Personnel / Relatives have significant influence

Adhunik Corporation Ltd

Adhunik Infotech Ltd .

Adhunik Power & Natural Resource Ltd .

Adhunik Alloys & Power Ltd .

Sungrowth Shares & Stock Ltd

Mahananda Suppliers Ltd.

Adhunik Meghalaya Steels Private Ltd.

Futuristic Steels Ltd.

Adhunik Metaliks Ltd. and its subsidiary

5 Contingent Liabilities

CONTINGENT LIABILITIES 31stMarch 2015 31stMarch 2014 (to the extent not provided for) (Rs)R (Rs)

Outstanding guarantees and counter 36,500,000 10,000,000 guarantees to various bank, in respect of the guarantees given by those banks in favor of various government authorities, suppliers and others.

6 In the opinion of the management, current assets, loans and advances have the value at which these are stated in the balance sheet, if realized in the ordinary course of business, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required.

7 The outstanding balances of Sundry debtors / creditors are subject to confirmation as letters of confirmation of balances from several parties have not been received and hence the balances are subject to adjustments, if any, on reconciliation / settlement of account.

8 In the opinion of the management, leave is meant to be availed of and the employees have been advised to plan their leave in advance while in service and also immediately before superannuation. Accordingly, leave encashment liability for the year has been recognised and provided for only when such encashment was allowed.

9 Raw materials consumed are accounted after adjustment of normal shortage / surplus of raw materials and rejected raw materials.

10 Previous year figures has been regrouped / rearranged wherever necessary.

---

Mar 31, 2014

1) CORPORATE INFORMATION

Adhunik Industries Ltd (the company), is a public limited company, domiciled in India and incorporated under the provisions of Companies Act, 1956. Its equity shares are listed on Stock Exchanges in India. The Company is primarily engaged in the manufacture & sale of iron and steel products.

Note 2: DISCLOSURE IN RELATION TO RELATED PARTIES:

Related party disclosure is identified by the management in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of India:

a) Name of Related Parties and nature of relationship

Key Management Personnel Whole Time Director

Mr. Jugal Kishore Agarwal

Director

Mr. Mohan Lal Agarwal Mr. Mahesh Kumar Agarwal Mr. Ashok Bector Mr. Asit Baran Dasgupta Mr. Shyam Bahadur Singh

Relatives of Key Management personnel Mr. Ghanshyam Das Agarwal(Brother of Director)

Mr. Manoj Kumar Agarwal ( Brother of Director) Mr. Nirmal Kumar Agarwal ( Brother of Director ) Mr. Sachin Agarwal ( Son of Mr. Jugal Kishore Agarwal ) Mr. Naveen Agarwal ( Son of Mr. Jugal Kishore Agarwal )

Enterprises over which Key Management Adhunik Corporation Ltd.

Personnel / Relatives have significant Adhunik Infotech Ltd.

influence Adhunik Power & Natural Resource Ltd

Adhunik Power Transmission Ltd.

Adhunik Alloys & Power Ltd.

Sungrowth Shares & Stock Ltd.

Mahananda Suppliers Ltd.

Zion Steel Limited

Adhunik Meghalaya Steels Private Limited

Futuristic Steels Limited

Adhunik Metaliks Ltd and its subsidiary

NOTE 3: In the opinion of the management, current assets, loans and advances have the value at which these are stated in the balance sheet, if realized in the ordinary course of business, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required.

NOTE 4: The outstanding balances of Sundry debtors / creditors are subject to confirmation as letters of confirmation of balances from several parties have not been received and hence the balances are subject to adjustments, if any, on reconciliation / settlement of account

NOTE 5: In the opinion of the management, leave is meant to be availed of and the employees has been advised to plan their leave in advance while in service and also immediately before superannuation. Accordingly, leave encashment liability for the year has been recognized and provided for only when such encashment was allowed.

NOTE 6: Revenue in respect of rejected/scrapped materials is recognized as and when these are sold or amount there against is ascertained.

NOTE 7: Raw materials consumed are accounted after adjustment of normal shortage/surplus of raw materials and rejected raw materials.

---

Mar 31, 2013

CORPORATE INFORMATION

Adhunik Industries Ltd, having manufacturing facilities at Durgapur, West Bengal is primarily engaged in the manufacture & sale of steel products

NOTE 1 ; Related Party

Related party disclosure is identified by the management in accordance with the Accounting Standard 18 issued by the institute of Chartered Accountants of India:

(a) Name of the related parties

Key Management Personnel Mr. Jugal Kishore Agarwai Mr.Mohan Lal AgarwaI Mr. Mahesh Kumar AgarwaI Mr. Ashok Sector Mr. Nand Kishore Singhai

Relatives of Key Management personnel Mr.Manoj Kumar Agarwal Mr. Nirm al Kumar Agarwal Mr.Sachin Agarwai(Son of mr. Jugal Kishore Agarwal) Mr.;.NayeemAgarWaT

Enterprises over which Key Adhunik Corporation Ltd Management Adhunik Power Personnel / Relatives have significant & influence Natural Resource Ltd Adhunik Alloys & Power Ltd. Zion Steel Limited

Sungrowth Shares & Stock Ltd.

Mahanada Suppliers Ltd

Adhunik Meghalaya Steels Private Limited " Futuristic Steels Limited Adhunik Metaliks Ltd. & its subsidiary Adhunik Infotech" Ltd.



NOTE 2 : In the opinion of the management, current assets, loans and advances have the value at which these are stated in the balance sheet, if realized in the ordinary course of business, unless otherwise stated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required

NOTE 3 : The outstanding balances of Sundry debtors / creditors are subject to confirmation as letters of confirmation of balances from several parties have not been received and hence the balances are subject to adjustments, if any, on reconciliation / settlement of account

NOTE 4 : In the opinion of the management, leave is meant to be availed of and the employees has been advised to plan their leave in advance while in service and also immediately before superannuation. Accordingly, leave encashment liability for the year has been recognised and provided for only when such encashment was allowed

NOTE 5 : Revenue in respect of rejected/scrapped materials is recognized as and when these are sold or Amount there against is ascertained.

NOTE 6 : Raw materials consumed are accounted after adjustment of normal shortage/surpius of raw materials and rejected raw materials.

---

Mar 31, 2012

1. CORPORATE INFORMATION

Adhunik Industries lid, having manufacturing facilities at Durgapur, West Bengal Is primarily engaged in the manufacture & sale of steel products.

2. Tertns/ Rights attached to Equity Share

The Company has only one class of Issued shares.l.e. equity shares having par value of T10 per-share. Each holder of equity share Is entitled to one, Equity Share and Equity right for dividend, The dividend proposed by1 the Board of Director's js subject to the approval of share holders in the ensuing Annual General Meeting, except case oflnteilm dividend; In the event dfilquidiiion, the equity share holders are eligible to receive the remalning.asseti of the company after payment of all the prefrentlal amounts. In proportion to their shareholding.

3. Equitable mortgage on all )he present and future Immovable propertlerlndudlng land & building both present & fulureoi the company at factory at Angadpur Diirgapur, West Bengal and first Charge.by way of hypothecation of the Company's movable properties, save and except book debts and equipment purchase on hire purchase basis but Including movable machinery, spares, tools and accessories, both present and future subject lo prior 'Changes In favour ot the Company's bankers, on specified movable properties for borrowing of working capital requirement, This loan includes*. 21'id25.690Z-.(P,Y. f35;5B2,8b5/*) taken from State Bank Of Mysore whichis secured'by wayof hypothecation charge overwind mill In Ohule, Maharastra

4.GUaranlee and certaifl collateral securities have been provided by the Promoters / Directors In their personal capacity,

5. Cash Credit Fro/n banks aresecvred by way of:

6. First Charge by way of stock debts and other current assets of the company related. to factory at Ahdagpur, Durgapu.

7. Second charge on other assets in favour of term loan lender fo term loan provided by them of the company relate dot factory at andagur, Durgapur.

8. Guarantee and certain collaterals securited have been provided by the Directors in their personal capacity.

9. Related Party

Related party disclosure is Identified by the management in accordance with the Accounting Standard 18 Issued by the Institute of Chartered Accountants of India:

(a) Name of the related parties

Key Ma nagement Personnel Mr. Mahesh Kumar Agarwal Mr. Manoj Sharma Mr.Mohan tal Agarwal -Nk Mr. Jugal klshore Agarwal Mr. Manlsh Kumar

Relatives of Key Management personnel

Mr. tihSnshyam Das Agarwal(Brother of Director) Mrs.Prarhila Agarwal (Wife of Mr.'jugal kishore Agarwal] Mr. Manoj Kumar Agarwal [ Brother of Director) Mr. Nlrmal Agarwal ( Brother of Director) Mr, Sachin Agarwal ( Son of Mr. Jugal Kisbbre Agarwal) Mr, Naveen Agarwal (Son of Mf. Jugal Kishdre Agarwal)

Enterprises over which Key Management Personnel / Relatives have significant influence

Adbunik Corporation Ltd. Orisssa Manganese and Minerals Ltd NeepazV Forge (lndid)Ltd.. Adhunik Power & Natural resource Ltd. Adhunlk Power Transmission Ltd, Adhunlk Steels Ltd, Adhunlk Cement (Assam) Ltd. Adhunlk Alloys & Power Ltd. Adhunlk Cement Ltd, Sungrowth Shares St Stock Ltd. Mahan anda Suppliers Ltd. Zion steel limited Adhunlk Meghalaya Steels Private Limited Futuristic Steels Limited Adhunlk Metaliks Ltd. Adhunikinfotechud. Swarnarekha Steel Industries Ltd

10. In the opinion of the managemet current asset, loans and advances have the value at which these are stated in the balance sheet, if realised inthe Ordinary course of busines ade, unles otherwise state and adequate prvions for all known provisions for all known liabilities have been made and are not in excess of the amount reasonably required

11. The outstanding balances of Sundry/ debtors/-credit are subject to confirmation as letters of confirmation of balance frin several parties have not been received and balance are subject to adjustment, if any, on reconcillation / settlement of accounts.

12. In the opinion of the management, leave is mean to be availed Of and the employees has Been advised to plan their leave in advance while in the service and are immediately before superannuation, Accordingly, leave encashment liablity for the year has been recongnied and provided for only when such encashment was allowed

13. Revenue in respect of rejected/ scrapped materials recongnised as and when these are sold or amount there aganist is ascertained.

14. Raw materials consued are accounted are after adjustment of normal shortage/surplus of raw materlalsand rejeted rew materials.

15. The financial statement for the year ended 31st March was prepared as per then applicable while schedule to the companies Act 1956, consequent to the notification of revised schedule VI to the companies Act 1956, the financial statement for fhe year ended march 31, 2012 are prepared as per scheduled VI According) toe previous year figure have also heert xeclasslifred to conform io this year classification. The adoption of tested scheduled VI fo rthe previous year figure does nominating recongnition and measurement principles followd for preparation of financial statement.

---

Mar 31, 2011

(1) Rupee Term loan from Banks are secured by way of:

a Equitable mortgage on all the present and future immovable properties including land & building both present & future of the Company at Angadpur Durgapur, West Bengal and Dhuie, Maharashtra and first charge by way of hypothecation of the Company''s movable properties, save and except book debts and equipment purchase on hire purchase basis but including movable machinery,, spares, tools and accessories, both present and future subject to prior changes in favour of the Company''s bankers on specified movable properties for borrowing of working capital requirement.

b Guarantee and certain collateral securities have been provided by the Promoters / Directors in their personal capacity.

c Term Loans aggregating to Rs. 16.473.500A (Previous Year 7. 10,832,000) are repayable within one year

(2) Cash Credit from banks are secured by:

a. , First charge by way of hypothecation of stock, book debts and other current assets of the company related to Andagpur. Durgapur.

b. Second charge on other assets on which first charge has been created in favour of Term Loan Lenders for term loans provided by it of the company related to Andagpur, Durgapur

c. Guarantee and certain collateral securities have been provided by trie Directors in their personal capacity,

(3) Finance against Equipments/Vehlde Loans is secured by hypothecation of the respective vebldes. .

(4) The breakup of Deferred Tax Liability as on 31st March 2011 is as follows:

(3) In (he opinion of the management, current assets, loans and advances have the value at which these are stated in the balance Sheet, if realized in the ordinary course of business, unless otherwise slated and adequate provisions for all known liabilities have been made and are not in excess of the amount reasonably required

(5) The outstanding balances of Sundry debtors I creditors are subject to confirmation as tetters of fcorifmmation of balances from several parties have not been received and hence the balances are subject to adjustments, if any. on reconciliation / settlement of account

(7) Based on''the iniormation/documents available with the company, there has been no amount due to micro, small and medium scale undertakings as per the requirement of section 22 of the Micro, Small & Medium Enterprises Development Act,2006.

(8) In the opinion of the management, leave is mean! to be availed of and the employees has been advised to plan their leave in advance while in service and also immediately before superannuation. Accordingly, leave encashment liability for the year has been recognised and provided for only when such encashment was allowed

(9j Revenue in respect of rejected/scrapped materials is recognized as and when these are sold or amount there against is ascertained.

(10) Raw materiafs consumed are accounted after adjustment of normal shortagefsurplus of raw materials and rejected raw materials.

Related party disclosure is identified by (be management in accordance with the Accounting Standard 18 issued by the Institute of Chartered Accountants of india:

(a) Name of the related parties :

Key Management Personnel

Mahesh Kumar Agarwal Mr. Nirnial Kumar Agarwal Mr. Mohan Lai Agarwal Mr. J ugal Kishore Agarwal Mr. Manoj Kumar Agarwal Mr. Manish Komar Mr. Manoj Sharma

Relatives of Key Management personnel

Mr. Ghanshyam Das AgarwalfBrother of Director) Mrs.Pramila Agarwal (Wife of Mr. Jugal kishore Agarwal) Mrs. Soruka Agarwal (Wife of Mr. Manoj kumai Agarwal) Mr. Nirmal Agarwal (Husband of Mrs. Anita Agarwal) Mr. Naveen Agarwal ( Son of Mr. jugal Kishore Agarwal) Mr. Sachin Agarwal (Son of Mr. Jugal Kishore Agarwal)

Enterprises over which Key Management

Adhunik Corporation Ltd. Neepaz V Forge (India) Ltd

Personnel / Relatives have significant influence

Adhunik Steels Ltd. Adhunik Cement (Assam) Ltd. Adhunik Alloys A Power Ltd. Otisssa Manganese and Minerals Ltd Adhunik Cement Ltd. Adhunik Power & Natural Resource Ltd Sungtowth Shares & Stock Ltd. Adhunik Power Transmission Ltd. Mahananda Suppliers Ltd. Adhunik Metaliks Ltd. Zion Steel limited Adhunik Infotech Ltd. Adhunik Meghalaya Steels Private Limited Swamarekha Steel Industries Ltd Futuristic Steels Limited