Notes to Accounts of Delta Manufacturing Ltd.

Mar 31, 2025

(b) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having par value of '' 10/- per share. Each shareholder is entitled to one vote per share held. Dividend if any declared is payable in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31,2025, the amount of per share dividend recognized as distributions to equity shareholders was Nil (March 31,2024: Nil).

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.

(e) The Company has not recognized deferred tax assets in respect of carried forward Business Losses, Long Term Capital Losses and Unabsorbed depreciation losses of '' 4,462.07 lakhs as at 31st March, 2025 (31^st March 2024 - '' 4,491.24 lakhs) as it is probable that future taxable profit will be not available against which the unused tax losses can be utilized in the foreseeable future.

32 CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS		(? in Lakhs unless specified)
Particulars		March 31,2025	March 31,2024
(a)	Contingent liabilities (excluding interest and penalty on the respective amount , if any arrived upon the final outcome)
TDS as per traces		12.36	12.27
Disputed Income tax demands		366.13	365.16
Disputed Customs and DGFT demands		46.87	43.18
Goods & Service Tax (GST)		-	202.75
Outstanding letters of credit		23.22	113.39
		448.58	736.75
(b)	Capital commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for
- Towards Property, Plant and Equipments		396.86	-
		396.86	-

33 EMPLOYEE BENEFITS

Brief description of the plans:

The Company has various schemes for employee benefits such as Provident Fund, ESIC, Gratuity and Leave Encashment. The Company’s defined contribution plans are Provident Fund (in case of certain employees) and Employees State Insurance Fund (under the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952). The Company has no further obligation beyond making the contributions to such plans.

The Plan typically to expose the Company to actuarial risk such as Interest Risk, Longevity Risk and Salary Risk;

a) Interest Risk:- A decrease in the bond interest rate will increase the plan liability.

b) Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

c) Salary Risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan’s participants will increase the plan’s liability.

The above sensitivity analyses are based on change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

b) Leave obligations

The leave obligations cover the Company’s liability for earned leave.

The amount of the provision of '' 138.20 lakhs [March 31,2024''144.01 lakhs] is presented as current, since the Company does not have an unconditional right to defer settlement for any of these obligations.

35 SEGMENT REPORTING

In accordance with I nd AS 108 ‘Operating Segment’, segment information has been given in the consolidated financial statements and therefore, no separate disclosure on segment information is given in these financial statements.

37 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company is exposed to various financial risks. These risks are categorized into credit risk, capital risk, liquidity risk, and market risk. The Company’s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(a) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business;

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

(b) Capital risk

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings as detailed in notes 18, and offset by investments and cash & bank balances as detailed in notes 7 & 13) and total equity of the Company.

The Company determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic investment plans. The funding requirements are met through long-term and short-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.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

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 and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Group’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

interest rate sensitivity

The sensitivity analyses below have been determined based on the exposure to interest rates for assets and liabilities at the end of the reporting period. For floating rate assets and liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year and the rates are reset as per the applicable reset dates. The basis risk between various benchmarks used to reset the floating rate assets and liabilities has been considered to be insignificant.

The Company is exposed to currency risk arising from its trade exposures and capital receipt / payments denominated, in other than the functional currency. The Company has a detailed policy which includes setting of the recognition parameters, benchmark targets, the boundaries within which the treasury has to perform and also lays down the checks and controls to ensure the continuing success of the treasury function.

The Company has defined strategies for addressing the risks for each category of exposures (e.g. for imports, for loans, etc.). The centralised treasury function aggregates the foreign exchange exposure and takes prudent measures to hedge the exposure based on prevalent macro-economic conditions.

41 DISCONTINUED OPERATIONS A] Description:

The Company had executed Business Transfer Agreement (hereinafter referred to as “BTA”) with its wholly owned subsidiary MMG Ferrites Private Limited (hereinafter referred to as “MMG”) on 18^th December, 2024 to transfer its soft ferrites business as a going concern and Share Subscription and Shareholders’ Agreement (hereinafter referred to as “SSHA”) with Premo S.L. and MMG on 18^th December, 2024 for, inter alia, allotment of shares amounting to 50% (fifty percent) of the share capital of MMG to Premo S.L., such that MMG ceased to be a wholly owned subsidiary of the Company w.e.f 24^th March, 2025. As a result of this change, MMG is now Joint Venture of the Company and Premo S.L.

On 18^th December 2024, the Company entered into a slump sale agreement for sale of its Soft Ferrite Business, which has been divested with effect from 17 March 2025. The business was reported under “Soft Ferrite Business” in accordance with the requirements of Ind AS 108 - “Operating Segments” in the financial statements till previous year. The relevant financial information of the said business has been disclosed under discontinued operations in terms of Ind AS 105- “Non-current assets held for sale and discontinued operations” as below:

Reasons for more than 25% variance

1. Debt Equity Ratio: The debt equity ratio has risen due to losses incurred in the current year, which have reduced retained earnings and affected Other Equity.

2. Debt Service Coverage Ratio: The debt service coverage ratio has declined due to a increase in loss this year. Non Cash items remained almost flat and higher finance cost this year as compared to last year.

3. Return on Equity Ratio: The return on equity ratio increased in the financial year 2024-25 because of higher net loss from operations and reduction in Total equity as compared to the previous year.

4. Net profit ratio: The net profit ratio has decreased as a result of the company’s decreased sales turnover in 2024-25 and the increase in net loss as compared to the previous year. This combination has led to a reduction in the net profit ratio.

5. Return on capital employed Ratio: The return on capital employed ratio has decreased due to a reduction in borrowings by the company in the current year.

45 OTHER STATUTORY INFORMATION:

(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(b) The Company does not have any transaction with any parties having status as struck off companies.

(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered

or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(f) No funds have been advanced or loaned or invested by the Company to or in any person(s) or entity(ies), including foreign entities (‘the intermediaries’), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (‘the Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries.

(g) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (‘the Funding Parties’), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(h) The quarterly statements filed by the Company with bank are in agreement with the books of accounts.

(i) The company has not been defined as willful defaulter by any bank or financial institution or government or any government authority.

(j) The company has not revaluated its property, plant and equipment (including right-of-use assets) or intangible assets or both during the year.

46 EXCEPTIONAL ITEM

During the financial year 2024-25, the company received Rs. 31.36 lakhs from the liquidator of Rhine Estates Limited, UK (formerly Magdev Limited, UK), a foreign subsidiary resulting in Profit from liquidation of subsidiary of Rs. 30.84 lakhs. The Process of Voluntary winding up of Rhine Estates Limited, UK has also been completed.

47 AUDIT TRAIL

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company uses accounting software for maintaining its books of account which does not have a feature of recording audit trail (edit log) facility. Based on management assessment, the non-availability of audit trail functions will not have any impact on the performance of the accounting software, as management has all other necessary controls in place which are operating effectively.

48 Figures for the previous year have been regrouped/rearranged, wherever considered necessary, to conform to current period’s classification. The impact of such reclassification/ regrouping is not material to the financial statements.

(b) Fair value hierarchy and method of valuation

Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments recognised in the financial statements approximate their fair values.

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Input other than quoted prices included within level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of other financials assets and financial liabilities are approximate to their carrying values.

---

Mar 31, 2024

(b) Rights, preferences and restrictions attached to shares

The Company has only one class of equity shares having par value of '' 10/- per share. Each shareholder is entitled to one vote per share held. Dividend if any declared is payable in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

During the year ended March 31,2024, the amount of per share dividend recognized as distributions to equity shareholders was Nil (March 31,2023: Nil).

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.

*Hon’ble National Company Law Tribunal, Mumbai Bench (‘NCLT’), had vide its Order dated November 11, 2021 approved the Scheme of Amalgamation of Newdeal Multitrade Private Limited (“Transferor Company”) with Miranda Tools Private Limited (“Transferee Company”). The Transferor Company was holding 137,360 Shares of Delta Manufacturing Limited which got transferred to Transferee Company during the year.

Nature and purpose of reserves
Securities premium	Securities premium is used to record the premium on issue of shares. These reserve is utilised in accordance with the provisions of the Act.
Equity component on interest free loan	Deemed equity contribution represents difference between consideration received and present value of liability component on initial recognition (net of deferred tax).
Capital reserve on business combination	1) Capital Reserve of '' 618.48 (lakhs) was created on merger of MMG India Private Limited, wholly owned subsidiary of the Company, with the Company as per the order passed by the National Company Law Tribunal.
	2) Capital Reserve of '' 1,465.38 (lakhs) was created on merger of Arrow Textiles Limited, with the Company as per the order passed by the National Company Law Tribunal.
Retained earnings	Retained earnings are the profits/(losses) that the Company has earned till date, less any transfers to general reserve, dividends or other distributions paid to shareholders.

(e) Deferred income tax assets have not been recognized on unused tax losses of '' 4,049.85 lakhs as at 31^st March, 2024 (31^st March 2023 - '' 3,402.24 lakhs) as it is probable that future taxable profit will be not available against which the unused tax losses can be utilized in the foreseeable future.

31 CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS		(? in Lakhs unless specified)
Particulars		March 31,2024	March 31,2023
(a)	Contingent liabilities (excluding interest and penalty on the respective amount, if any arrived upon the final outcome)
TDS as per traces		12.27	15.73
Disputed Income tax demands		365.16	126.29
Disputed Customs and DGFT demands		43.18	366.68
Goods & Service Tax (GST)		202.75	101.49
Outstanding letters of credit		113.39	57.47
		736.75	667.66
(b)	Capital commitments
Estimated amount of contracts remaining to be executed on capital account and not provided for
- Towards Property, Plant and Equipments		-	-
		-	-

32 EMPLOYEE BENEFITS

Brief description of the plans:

The Company has various schemes for employee benefits such as Provident Fund, ESIC, Gratuity and Leave Encashment. The Company’s defined contribution plans are Provident Fund (in case of certain employees) and Employees State Insurance Fund (under the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952). The Company has no further obligation beyond making the contributions to such plans.

(a) Define benefit plans:

The Company’s defined benefit plans include Gratuity. The gratuity plan is governed by the Payment of Gratuity Act, 1972 under which an employee who has completed five years of service is entitled to specific benefits. The level of benefits provided depends on the member’s length of service and salary at retirement age.

The above sensitivity analyses are based on change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

c) Defined contribution plans

The Company also has certain defined contribution plans. The contributions are made to registered provident fund, Employee State Insurance Corporation and Labour Welfare Fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognised during the period towards defined contribution plans are as follows:

36 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company is exposed to various financial risks. These risks are categorized into credit risk, capital risk, liquidity risk, and market risk. The Company’s risk management is coordinated by the Board of Directors and focuses on securing long term and short term cash flows. The Company does not engage in trading of financial assets for speculative purposes.

(a) Credit risk

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information.

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business;

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends.

(b) Capital risk

The Company manages its capital to ensure that it will be able to continue as going concern while maximising the return to stakeholders through the optimisation of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings as detailed in notes 17, and offset by investments and cash & bank balances as detailed in notes 7 & 13) and total equity of the Company.

The Company determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic investment plans. The funding requirements are met through long-term and short-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.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, Company treasury maintains flexibility in funding by maintaining availability under committed credit lines. Management monitors rolling forecasts of the Company’s liquidity position (comprising the undrawn borrowing facilities below) and cash and cash equivalents on the basis of expected cash flows.

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 and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include borrowings and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Group’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Interest rate sensitivity

The sensitivity analyses below have been determined based on the exposure to interest rates for assets and liabilities at the end of the reporting period. For floating rate assets and liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year and the rates are reset as per the applicable reset dates. The basis risk between various benchmarks used to reset the floating rate assets and liabilities has been considered to be insignificant.

The Company is exposed to currency risk arising from its trade exposures and capital receipt / payments denominated, in other than the functional currency. The Company has a detailed policy which includes setting of the recognition parameters, benchmark targets, the boundaries within which the treasury has to perform and also lays down the checks and controls to ensure the continuing success of the treasury function.

The Company has defined strategies for addressing the risks for each category of exposures (e.g. for imports, for loans, etc.). The centralised treasury function aggregates the foreign exchange exposure and takes prudent measures to hedge the exposure based on prevalent macro-economic conditions.

Reasons for more than 25% variance

1. Debt Equity Ratio: The debt equity ratio has risen due to losses incurred in the current year, which have reduced retained earnings and affected Other Equity.

2. Debt Service Coverage Ratio: The debt service coverage ratio has declined due to a decrease in profit. The previous year’s financial results were bolstered by a gain of '' 703.04 lakhs from the disinvestment of the company’s shareholding in a subsidiary.

3. Trade Receivable Turnover Ratio: The trade receivable turnover ratio increased in the financial year 2023-24 because of higher revenue from operations compared to the previous year. This improvement in revenue has led to a more favorable trade receivable turnover ratio.

4. Net Capital turnover ratio: The net capital turnover ratio has decreased as a result of the company’s increased sales turnover in 2023-24 and the repayment of short-term loans in the previous year. This combination has led to a reduction in the net capital turnover ratio.

5. Return on investment Ratio: The return on investment ratio has improved due to a reduction in current investments by the company in the current year.

43 OTHER STATUTORY INFORMATION:

(a) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(b) The Company does not have any transaction with any parties having status as struck off companies.

(c) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

(f) No funds have been advanced or loaned or invested by the Company to or in any person(s) or entity(ies), including foreign entities (‘the intermediaries’), with the understanding, whether recorded in writing or otherwise, that the intermediary shall, whether, directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (‘the Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf the Ultimate Beneficiaries.

(g) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities (‘the Funding Parties’), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (‘Ultimate Beneficiaries’) or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(h) The quarterly statements filed by the Company with bank are in agreement with the books of accounts.

(i) The company has not been defined as willful defaulter by any bank or financial institution or government or any government authority.

(j) The company has not revaluated its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(k) The company has not given any loans or advances in the nature of loans to the promoters, Directors and KMPs as defined under Companies Act, 2013

(l) The company has not entered into any scheme of arrangement which has an accounting impact on current year.

(m) The company has complied with the number of layers prescribed under Companies Act, 2013.

44 During the financial year 2022-23, Rhine Estates Limited (formerly MagDev Limited), a wholly owned subsidiary incorporated in

England, approved a reduction in its share capital from £329,607 to £634 by canceling 326,473 ordinary shares of £1.00 each and

2,500 deferred shares of £1.00 each. The company received '' 973.89 lakhs for this reduction, resulting in a net gain of '' 703.05

lakhs for the financial year 2022-23.

45 AUDIT TRAIL

The Ministry of Corporate Affairs (MCA) has prescribed a new requirement for companies under the proviso to Rule 3(1) of the Companies (Accounts) Rules, 2014 inserted by the Companies (Accounts) Amendment Rules 2021 requiring companies, which uses accounting software for maintaining its books of account, shall use only such accounting software which has a feature of recording audit trail of each and every transaction, creating an edit log of each change made in the books of account along with the date when such changes were made and ensuring that the audit trail cannot be disabled. The Company uses accounting software for maintaining its books of account which does not have a feature of recording audit trail (edit log) facility. Based on management assessment, the non-availability of audit trail functions will not have any impact on the performance of the accounting software, as management has all other necessary controls in place which are operating effectively.

(b) Fair value hierarchy and method of valuation

Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments recognised in the financial statements approximate their fair values.

Level 1: Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Input other than quoted prices included within level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of other financials assets and financial liabilities are approximate to their carrying values.

The following table presents fair value of assets and liabilities measured at fair value on recurring basis of March 31,2023 and March 31,2022.

---

Mar 31, 2018

Note:

*Aryanish Finance and Investments Private Limited, Bayside Property Developers Private Limited, Delta Real Estate Consultancy Private Limited are holding Equity Shares in the capacity of trustees for Aarti J Mody Trust, Aditi J Mody Trust and Anjali J Mody Trust respectively.

1.EMPLOYEE BENEFITS

Brief Description of the Plans:

The Company has various schemes for employee benefits such as Provident Fund, ESIC, Gratuity and Leave Encashment. The Company’s defined contribution plans are Provident Fund (in case of certain employees) and Employees State Insurance Fund (under the provisions of the Employees’ Provident Funds and Miscellaneous Provisions Act, 1952). The Company has no further obligation beyond making the contributions to such plans.

A. Define Benefit Plans:

The Company’s defined benefit plans include Gratuity. The gratuity plan is governed by the Payment of Gratuity Act, 1972 under which an employee who has completed five years of service is entitled to specific benefits. The level of benefits provided depends on the member’s length of service and salary at retirement age.

The level of benefits provided depends on the member’s length of service and salary at retirement age.

The Plan typically to expose the Company to actuarial risk such as Interest Risk, Longevity Risk and Salary Risk;

a) Interest Risk:- A decrease in the bond interest rate will increase the plan liability.

b) Longevity Risk: The present value of the defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after their employment. An increase in the life expectancy of the plan participants will increase the plan’s liability.

c) Salary Risk: The present value of the defined plan liability is calculated by reference to the future salaries of plan participants. As such, an increase in the salary of the plan’s participants will increase the plan’s liability.

The above sensitivity analyses are based on change in an assumption while holding all other assumptions constant. In practice, this is unlikely to occur, and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

B. Defined Contribution Plans

The Company also has certain defined contribution plans. The contributions are made to registered provident fund, Employee State Insurance Corporation and Labour Welfare Fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation. The expense recognized during the period towards defined contribution plans are as follows:

2. INFORMATION IN ACCORDANCE WITH THE REQUIREMENTS OF Ind AS 24 ON RELATED PARTY DISCLOSURES

A LIST OF RELATED PARTIES

(i) Subsidiary Companies:

MMG India Private Limited (MMG - I)

MagDev Limited (MagDev UK)

(ii) Step Down Subsidiaries:

Pilamec Limited (Pilamec UK)

(iii) Key Management Personnel’s (KMP):

Mr. Jaydev Mody (JM) - Chairman

Mr. Dr. Ram H. Shroff (RHS) - Executive Vice Chairman & Managing Director

Ms. Ambika Kothari (AK) - Non-executive Director

Mr. Mr. Javed Tapia (JT) - Independent Director

Dr. Vrajesh Udani (VU) - Independent Director

Mr. Mr. Rajesh Jaggi (RJ) - Independent Director

Mr. Darius Khambatta (DK) - Non-executive Director

Mr. Samir Chinai (SC) - Independent Director

Mr. Abhilash Sunny (AS) - Chief Financial Officer

Ms. Snehal Oak (SO) - Company Secretary

(iv) Relatives of KMP:

Mrs. Zia Mody (ZM) - Wife of the Chairman

(v) Enterprises over which persons mentioned in (iii) and (iv) above exercise significant influence/control directly or indirectly:

AZB & Partners (AZB)

Freedom Registry Limited (FRL)

Aarti Management Consultancy Private Limited (AAMPL)

Aditi Management Consultancy Private Limited (ADMPL)

Anjoss Trading Company Private Limited (ATCPL)

AAA Holding Trust (AAAHT)

3. SEGMENT REPORTING

In accordance with Ind AS 108 ‘Operating Segment’, segment information has been given in the consolidated financial statements and therefore, no separate disclosure on segment information is given in these financial statements.

4. MAT CREDIT ENTITLEMENT

MAT Credit Entitlement of '' 1,839.31 (‘000) [Previous Year '' Nil] is based on business projections of Company provided by Management, and the same have been relied upon by the Auditors.

5. CREDIT RISK

Credit risk arises from the possibility that the counter party may not be able to settle their obligations as agreed. To manage this, the Company periodically assesses financial reliability of customers and other counter parties, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of financial assets. Individual risk limits are set and periodically reviewed on the basis of such information

The Company considers the probability of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis through each reporting period. To assess whether there is a significant increase in credit risk the Company compares the risk of default occurring on asset as at the reporting date with the risk of default as at the date of initial recognition. It considers reasonable and supportive forwarding-looking information such as:

i) Actual or expected significant adverse changes in business;

ii) Actual or expected significant changes in the operating results of the counterparty,

iii) Financial or economic conditions that are expected to cause a significant change to the counterparty’s ability to meet its obligations,

The Company measures the expected credit loss of trade receivables and loan from individual customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends. Based on the historical data, loss on collection of receivable is not material hence no additional provision considered.

6.CAPITAL RISK MANAGEMENT

a) The Company manages its capital to ensure that it will be able to continue as going concern while maximizing the return to stakeholders through the optimization of the debt and equity balance. The capital structure of the Company consists of net debt (borrowings as detailed in notes 17, 21 and 23 offset by cash and bank balances) and total equity of the Company.

The Company determines the amount of capital required on the basis of annual as well as long term operating plans and other strategic investment plans. The funding requirements are met through long-term and short-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.

7. INTEREST RATE RISK & SENSITIVITY ANALYSIS

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. In order to optimize the Group’s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

The sensitivity analyses below have been determined based on the exposure to interest rates for assets and liabilities at the end of the reporting period. For floating rate assets and liabilities, the analysis is prepared assuming the amount of the liability outstanding at the end of the reporting period was outstanding for the whole year and the rates are reset as per the applicable reset dates. The basis risk between various benchmarks used to reset the floating rate assets and liabilities has been considered to be insignificant.

The Company is exposed to Currency Risk arising from its trade exposures and Capital receipt / payments denominated, in other than the Functional Currency. The Company has a detailed policy which includes setting of the recognition parameters, benchmark targets, the boundaries within which the treasury has to perform and also lays down the checks and controls to ensure the continuing success of the treasury function. The Company has defined strategies for addressing the risks for each category of exposures (e.g. for imports, for loans, etc.). The centralized treasury function aggregates the foreign exchange exposure and takes prudent measures to hedge the exposure based on prevalent macro-economic conditions.

b) Fair Value Hierarchy and Method of Valuation

Except as detailed in the following table, the Company considers that the carrying amounts of financial instruments recognized in the financial statements approximate their fair values.

Level 1 : Quoted prices (unadjusted) in active markets for identical assets and liabilities.

Level 2: Input other than quoted prices included within level 1 that are observable for the assets or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

The fair value of other financials assets and financial liabilities are approximate to their carrying values.

8. FIRST TIME ADOPTION OF IND AS

These are the Company’s first financial statements prepared in accordance with Ind AS. The Company has prepared the its opening balance sheet as per Ind AS as at April 01, 2016 (“transition date”) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from Previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognized assets and liabilities.

In preparing these financial statements, the Company has availed optional exemptions and mandatory exceptions in accordance with Ind AS 101 as explained below:

(a) Past Business Combinations

The Company has elected not to apply Ind AS 103 ‘Business Combinations’ retrospectively to past business combinations that occurred before the transition date.

(b) Deemed Cost for Property, Plant and Equipment and Intangible Assets

While measuring the property, plant and equipment in accordance with Ind AS, the Company has elected to measure certain items of property, plant and equipment at the date of transition to Ind AS at its fair value and used that fair value as its deemed cost at transition date.

The Company has elected to continue with the carrying value of all of its intangible assets recognized as at transition date measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

(c) Estimates

The Company’s estimates in accordance with Ind ASs at the transition date are in consistent with estimates made for the same date in accordance with previous GAAP after adjustments to reflect any difference in accounting policies.

(d) Investments in Subsidiaries

The Company has elected to continue with the carrying value of its investments in subsidiaries recognized as at transition date measured as per the previous GAAP and use that carrying value as its deemed cost as of the transition date.

Transition to Ind AS - Reconciliations

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

I. Reconciliation of Equity as at 1^st April, 2016 and as at 31^st March, 2017.

II. Reconciliation of Statement of Profit and Loss for the year ended 31^st March, 2017.

III. Adjustments to Statement of Cash Flows for the Year Ended 31^st March, 2017.

Previous GAAP figures have been reclassified/regrouped wherever necessary to conform with financial statements prepared under Ind AS.

Footnotes:

A In accordance with Ind AS 101, the Company has elected to measure certain items of property, plant and equipment at fair value as at transition date. This fair values are considered as deemed cost. All other assets are measured in accordance with Ind AS 16. This resulted in increase in deemed cost of land held under finance lease by '' 28,818.34(‘000). Depreciation expenses has been provided accordingly over the balance useful life.

B The Company has received long term interest free loans from its promoters. Under Ind AS, the such loans availed are measured at fair value at the date of transaction. The difference of loan amount received and its fair value is directly taken to equity as ‘deemed equity contribution’. Subsequently, these loans are measured at amortized cost by charging interest expenses using effective interest method.

C Under Ind AS the financial guarantees given on behalf of loans availed by subsidiaries are measured at fair value on the date on giving the guarantee and subsequently unwound over the period of guarantee given by way of income over the period of guarantee. Under previous GAAP, there was no accounting of financial guarantees given.

D Under Ind AS, actuarial gains or losses on remeasurement of defined benefit obligation is recognized in other comprehensive income (including its tax effect) which was recognized in statement of profit and loss under previous GAAP.

E Other adjustments includes discounting of interest free rental deposits, reversal of foreign exchange fluctuation on foreign currency advances considered as non-monetary items and derecognition of intangible assets which does not satisfy recognition criteria under Ind AS.

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

The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31^st March, 2017 as compared with the Previous GAAP.

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Mar 31, 2015

1.SHARE CAPITAL

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 Company declares and pays dividends in Indian Rupees. 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. DEFERRED TAX

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has accounted for Deferred Tax during the year.

3. Provision for Doubtful Debts:

The Company periodically evaluate all customers dues, the need for provision is amended based on various factors including collectability of specific dues, risk, perceptions of the industry in which customer operate, general economy factors.

4. NOTES TO THE FINANCIAL STATEMENTS:

A. Contingent Liabilities

(Excluding interest and penalty on the respective amount if any arrived upon the final outcome)

i. Disputed (net) demands for Income Tax pending with various Appellate authorities Rs. 2,329.86 ('000) ((Previous year Rs. 2,347.73 ('000)).

ii. Sales Tax Liability (on account of pending 'C' forms) Rs. 4,256.23 ('000) (Previous year Rs. 3,948.03 ('000))

iii. TDS Liability (on account various discrepancies) Rs. 597.55 ('000) (Previous year Rs. Nil ('000))

B. Capital Commitments

Estimated amounts of Capital Commitments - Rs. 7,476.89 ('000) ((Previous year Rs. 271.50 ('000)).

C. Various Debit and Credit balances are subject to confirmations/reconciliation and consequent adjustments, if any. The Company is of the view that reconciliation(s), if any, arising out of final settlement of accounts with these parties is not likely to have any material impact on the accounts. The Current Assets, Loan & Advances are stated in the Balance Sheet at the amounts which are at least realizable in ordinary course of business.

D. As required by Accounting Standard - AS 18 'Related Party Disclosure' issued by The Institute of Chartered Accountants of India, are as follows:

List of Related Parties with whom transactions have taken place during the year:

(i) Subsidiaries:

* MMG India Private Limited (MMG - I)

* MagDev Limited (MagDev UK)

(ii) Key Management Personnel:

* Dr. Ram H. Shroff - Managing Director

* Mr. Abhilash Sunny (AS) - CFO (From 31st, January 2015)

(iii) Individuals or their relative owning directly or indirectly interest in the voting power that gives them significant Influence:

* Mr. Jaydev Mody (JM) - Chairman

* Mrs. Zia Mody (ZM) - Wife of Chairman

* Ms. Anjali Mody (AM) - Daughter of Chairman

* Mrs. Urvi Piramal (UP) - Sister of Chairman

* Dr. Ram H. Shroff - Executive Vice Chairman & Managing Director

(iv) Enterprises over which Key Management Personnel/Individual or their Relatives mentioned in (ii) or (iii) above exercise Significant Influence:

* AZB and Partners (AZB)

* Freedom Registry Limited (FRL)

* Aarti Managements Private Limited (AAMPL)

* Aditi Managements Private Limited (ADMPL)

* Anjoss Trading Company Private Limited (ATCPL)

* Delta Corp Limited (DCL)

* SSI Trading Private Limited (SSI)

* AAA Holding Trust (AAAHT)

* Skarma (SK)

E. Employee Benefits

Disclosure required under Accounting Standard - 15 (Revised 2005) for "Employee Benefits" are as under:

i. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31st March, 2015 based on actuarial valuation carried out using the Projected Unit Credit Method.

ii. The below disclosure have been obtained from independent actuary. The other disclosures are made in accordance with AS - 15 (Revised) pertaining to the Defined Benefit Plan is as given below :

F. The Company is engaged in the business of Magnets which is being the only business of the Company and hence disclosure of segment-wise information is not applicable under Accounting Standard 17 - 'Segmental Reporting' issued by the Institute of Chartered Accountants of India.

a. Lease Rentals are charged on the basis of agreed terms.

b. Additional amount of applicable taxes will be paid on these rentals as per the applicable rates existing at the time of receipts and payments.

G. The Company has adopted estimated useful life of tangible fixed assets as stipulated by Schedule II to the Companies Act, 2013. On account of such change carried out, the depreciation for the current year is lower by Rs. 4.96 Lacs.

H. The Previous year's figures have been reworked, regrouped, rearranged, recasted and reclassified wherever necessary to conform to the current year's classifications.

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Mar 31, 2014

1. 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 Company declares and pays dividends in Indian Rupees. 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.

Note: *Aryanish Finance and Investments Private Limited, Bayside Property Developers Private Limited and Delta Real Estate Consultancy Private Limited are holding Equity Shares in the capacity of trustees for Aarti J Mody Trust, Aditi J Mody Trust and Anjali J Mody Trust, respectively.

2. DEFERRED TAX

In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has accounted for Deferred Tax during the year.

3. Provision for Doubtful Debts:

The Company periodically evaluate all customers dues, the need for provision is amended based on various factors including collectability of specific dues, risk, perceptions of the industry in which customer operate, general economy factors.

4. A. Contingent Liabilities

(Excluding interest and penalty on the respective amount if any arrived upon the final outcome)

i. Disputed (net) demands for Income Tax pending with various Appellate authorities Rs. 2,347.73(''000) (Previous year Rs. 2,347.73 (''000)).

ii. Disputed (net) demands for Sales Tax (CST) - Nil (Previous year Rs. 60.42(''000)).

iii. Sales Tax Liability (On account of pending ''C'' forms) Rs. 3,948.03(''000) (Previous year Rs. 2,051.87(''000))

B. Capital Commitments

Estimated amounts of Capital Commitments- Rs. 271.50 (''000) (Previous year Rs. 271.50 (''000)).

C. Various Debit and Credit balances are subject to confirmations/reconciliation and consequent adjustments, if any. The Company is of the view that reconciliation(s), if any, arising out of final settlement of accounts with these parties is not likely to have any material impact on the accounts. The Current Assets, Loan & Advances are stated in the Balance Sheet at the amounts which are at least realizable in ordinary course of business.

C. Employee Benefits

Disclosure required under Accounting Standard - 15 (Revised 2005) for "Employee Benefits" are as under:

i. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31st March, 2014 based on actuarial valuation carried out using the Project Credit Method.

D. The Company is engaged manufacture of hard ferrite magnet, which as per Accounting Standard 17, is considered the only reportable segment. The geographical segment is not relevant as there are no exports.

E. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 23st February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956. Necessary information relating to subsidiaries has been included in the Consolidated Financial Statements.

F. The previous year''s figures have been reworked, regrouped, rearranged, recasted and reclassified wherever necessary to conform to the current year''s classifications.

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Mar 31, 2013

A. contingent liabilities

(Excluding interest and penalty on the respective amount if any arrived upon the fnal outcome)

i. Disputed (net) demands for Income tax pending with various Appellate authorities Rs. 2,347.73 (''000) ((Previous year Rs. 2,329.86(''000)).

ii. Disputed service tax demand Rs. Nil ((Previous years Rs. 2,826.10(''000)).

iii. Disputed (net) demands for Sales Tax (CST) - Rs.60.42 (''000) ((Previous year Rs. Nil (''000)).

b. The Company is engaged manufacture of hard ferrite magnet, which as per Accounting Standard 17, is considered the only reportable segment. The geographical segment is not relevant as there are no exports.

c. related party disclosures :

As required by Accounting Standard – AS 18 ''Related Party Disclosure'' issued by The Institute of Chartered Accountants of India, are as follows:

List of Related Parties with whom transactions have taken place during the year:

(i) Subsidiaries:

- MMG India Pvt. Ltd. (MMG I)

- MagDev Ltd. (MagDev UK) (ii) Key Management Personnel:

- Capt. R Barick - Whole-Time Director (Up to 30th Sept, 2012) (iii) Individual owning directly or indirectly interest in the voting power that gives him signifcant Infuence:

- Mr. Jaydev Mody (JM) - Chairman

- Mrs. Zia Mody (ZM) - Wife of Chairman

- Mrs. Urvi Piramal (UP) - Sister of Chairman

- Dr. Ram H. Shroff - Executive Vice Chairman & Managing Director

(iv) Enterprises over which Key Management Personnel/Individual or their Relatives mentioned in (a) Or (b) above exercise Signifcant Infuence:

- AZB and Partners (AZB)

- Freedom Registry Limited (FRL)

- Aarti Managements Pvt. Ltd (AAMPL)

- Aditi Managements Pvt. Ltd.(ADMPL)

- Anjoss Trading Co (ATC)

- Delta Corp Limited (DCL)

- SSI Trading Private Limited (SSI)

d. Employee Benefts

Disclosure required under Accounting Standard -15 (Revised 2005) for "Employee Benefts" are as under:

i. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31st March, 2013 based on actuarial valuation carried out using the Project Credit Method.

ii. The below disclosure have been obtained from independent actuary. The other disclosures are made in accordance with AS - 15 (Revised) pertaining to the Defned Beneft Plan is as given below :

e. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 23st February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956. Necessary information relating to subsidiaries has been included in the Consolidated Financial Statements.

f. The previous year''s fgures have been reworked, regrouped, rearranged, recasted and reclassifed wherever necessary to conform to the current year''s classifcations.

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Mar 31, 2012

(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.

note:

*Aryanish Finance and Investments Private Ltd, Bayside Property Developers Private Ltd and Delta Real Estate Consultancy Private Ltd are holding Equity shares in the capacity of trustees for Aarti J Mody Trust, Aditi J Mody Trust and Anjali J. Mody Trust, respectively.

A. Contingent Liabilities

i. Disputed (net) demands for Income tax pending with various Appellate authorities Rs. 2,329.86('000) ((Previous year Rs. 2,329.86('000)).

ii. Disputed excise demands Rs. Nil ((Previous year Rs. 1,556.10 ('000)).

iii. Disputed service tax demand Rs. 2,826.10('000) ((Previous year Rs. 2,826.10('000))

B. Disclosure of Sundry Creditors under Trade Payables is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". Amount overdue as on 31stMarch 2012 to Micro, Small and Medium Enterprises on account of principle amount together with interest, aggregate to Rs. 3,089.72 (Rs.000) Previous Year Nil.

C. The Company is engaged manufacture of hard ferrite magnet, which as per Accounting Standard 17 - 'Segment Reporting' issued by The Institute of Chartered Accountants of India, is considered the only reportable segment. The geographical segment is not relevant as there are no exports.

D. Acquisitions

Last year, the Company has acquired following Subsidiary Companies:

Company has acquired 7,62,500 equity shares of £ 1 each and 2,500 deferred shares of £ 1 each of MMG MagDev Ltd, (UK), for Rs. 62,983.76 ('000).

Company has acquired 1,38,65,870 equity shares of Rs. 10 each of MMG India Pvt. Ltd, for Rs. 76,810.89 ('000).

Notes:

- Loans and Advances shown above, to subsidiaries and associates fall under the category of Loans and Advances in nature of Loans where there is no repayment schedule and are re-payable on demand.

- Loan to employees as per Company's policy is not considered

ii) Investment by the loanee in the share of the Company

None of the loanees and loanees of subsidiary companies has, per se, made investments in shares of the Company.

E. As required by Accounting Standard - AS 18 'Related Party Disclosure' issued by The Institute of Chartered Accountants of India, are as follows:

List of Related Parties with whom transactions have taken place during the year:

(i) Subsidiaries

- MMG India Pvt. Ltd. (MMG I )

- MMG MagDev Ltd. (MMG UK)

(ii) Key Management Personnel

- Capt. R Barick - Whole-Time Director

(iii) Individual owning directly or indirectly interest in the voting power that gives him significant Influence:

- Mr. Jaydev Mody (JM) - Chairman

- Mrs. Zia Mody (ZM) - Wife of Chairman

- Mrs. Urvi Piramal (UP) - Sister of Chairman

(iv) Enterprises over which Key Management Personnel/Individual or their Relatives mentioned in (ii) or (iii) above exercise Significant Influence.

- AZB and Partners (AZB)

- Freedom Registry Limited (FRL)

- Aarti Managements Pvt. Ltd (AAMPL)

- Aditi Managements Pvt. Ltd.(ADMPL)

- Anjoss Trading Co (ATC)

- Delta Corp Limited (DCL)

F. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the Company has accounted for Deferred Tax during the year.

Deferred Tax Asset recognized on carried forwards losses on the basis of Management's reasonable certainty that sufficient future taxable income will be available. Future, sales trend for first two months of FY 2012-13 also revealed that Company is likely to generate sizable amount of profit in future years.

G. Employee Benefits

Disclosure required under Accounting Standard - 15 (revised 2005) for "employee benefits" are as under:

i. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31stMarch, 2012 based on actuarial valuation carried out using the Project Credit Method.

ii. The below disclosure have been obtained from independent actuary. The other disclosures are made in accordance with AS - 15 (revised) pertaining to the Defined Benefit Plan is as given below :

H. Details of dues to Micro and Small Enterprises as defined under the MSMED Act,2006. Company has sent letters to suppliers to confirm whether they are covered under Micro, Small and Medium Enterprises Development Act 2006 as well as they have file required memorandum with the prescribed authorities. Out of the letters sent to the parties, some confirmations have been received till the date of finalization of Balance Sheet. Based on the confirmation received the detail of outstanding are furnished in Note 7.

I. The Ministry of Corporate Affairs, Government of India, vide General Circular No.2 and 3 dated 8th February 2011 and 23stFebruary 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956. Necessary information relating to subsidiaries has been included in the Consolidated Financial Statements.

J. As notified by Ministry of Corporate Affairs, Revised Schedule VI under the Companies Act, 1956 is applicable to the Financial Statements for the financial year commencing on or after 1stApril, 2011. Accordingly, the financial statements for the year ended March 31, 2012 are prepared in accordance with the Revised Schedule VI. The amounts and disclosures included in the financial statements of the previous year have been reclassified to conform to the requirements of Revised Schedule VI.

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Mar 31, 2010

1. Contingent Liabilities

a. Disputed (net) demands for Income tax pending with various Appellate authorities Rs. 23.30 Lacs (Previous year Rs. 23.30 Lacs).

b. Disputed excise demands Rs. 15.56 Lacs (Previous year Rs. 15.56 Lacs).

c. Disputed service taxdemand Rs.28.26 Lacs (Previous years Rs. 28.26 Lacs)

d. Disputed demand raisedbyDGFT Rs.20Lacs (Previous yearRs20.00 Lacs)

2. Commitmentoncapital contract yettobeexecuted Rs.13.19Lacs.

3. Valueof direct Imports onC.I.F. Basis

4. Disclosure of Sundry Creditors under Current Liability is based on the information available with the Company regarding the status of the suppliers as defined under the "Micro, Small and Medium Enterprises Development Act, 2006". Amount overdue as on 31st March 2010 to Micro, Small and Medium Enterprises on account of principle amount together with interest, aggregate to Rs. Nil Previous Year Nil.

5. The Company is engaged manufacture of hard ferrite magnet, which as per Accounting Standard 17, is considered the only reportable segment. The geographical segmentisnot relevantasthere arenoexports.

6. DetailsofManagerial Remuneration (To Executive Director) :

The above figureisfrom the dateofappointment i.e 23-10-2008 of the executive director. Managerial Remuneration excludes provision for gratuity and leave encashment/availment.

7. Value of imported and indigenous Raw Material, Stores, and Spares consumed. (Figures in bracket pertain to previous year)

8. Details of licensed and installed capacity: (Figures in bracket pertain to previous year) (As certified bythe Director

Note: Licensed capacity includes the Industrial Entrepreneurs Memorandum filed with the Government and duly acknowledged under the schemeofde-licensingbythe Government.

9. As required by Accounting Standard - AS 18 ‘Related Party Disclosure issued by The Institute of Chartered Accountants of India, are as follows:

List of Related Parties with whom transactions have taken place during the year:

a) Key Management Personnel

- Capt. R Barick- Executive Director (w.e.f 23-10-2008)

b) Individual owning directly or indirectly interest in the voting powerthat gives him significant Influence:

- Mr. JaydevMody

c) Enterprises over which Key Management Personnel/Individual ortheir Relatives mentioned in

(a) Or (b) above exercise Significant Influence.

- Delta Corp Limited

- Freedom Registry Limited (Earlier Known as Amtrac Management Services Limited)

10. In accordance with Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered AccountantsofIndia, the Company has accounted for Deferred Tax during the year.

Deferred Tax Asset recognized on carried forwards losses on the basis of Managements reasonable certainty that sufficient future taxable income will be available. Future, sales trend for first two months of FY 2010-11 also revealed that Company is likely togenerate sizable amountof profit in future years.

11. Employee Benefits

Disclosure required under Accounting Standard–15(revised 2005) for "employee benefits" areasunder:

a. The Company has recognized the expected liability arising out of the compensated absence and Gratuity as at 31st March, 2010 basedonactuarial valuation carried out using the Project Credit Method.

12. On the basis of sales realization of part of the scrap material, after the Balance Sheet date, the Management on the principles of prudence, valued the entire said scrap which was hitherto not valued earlier, accordingly the inventory includes amounting valueof Rs.25.56 Lacs for the same.

13. The previous years figures have been re-grouped/re-arranged/reclass -ified/recast wherever necessary to confirm to this years classification.