Notes to Accounts of Frontier Springs Ltd.

Mar 31, 2023

Terms/Rights attached i) Equity Shares

The Company has only one class of Equity shares having a par value of ? 10/-. Each holder of equity shares is entitled to one vote per share.

The Company declares dividends 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 31^st March, 2023 the amount of per share dividend recognized as distributions to equity shareholders was ? 1/- (For 31^st March, 2021 was ?: NIL)

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive any of the 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 no. 29: (1) Additional Regulatory Information

(i) Title deeds of immovable property not held in the name of the Company

There is no any Title deeds of immovable property not held in the name of the Company.

(ii) There is no any revaluation of its Property, Plant and Equipments.

(iii) There is no any Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(vi) Details of Benami Property held

There is no any Benami Property held in the name of the Company.

(vii) Wilful Defaulter*

The Company has never been declared as wilful defaulte by any Bank or financial Institution.

(viii) Compliance with approved Scheme(s) of Arrangements

No Scheme of Arrangements has been approved by the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013.

(ix) Undisclosed income

There is no undisclosed income which is not recorded.

(x) Crypto Currency or Virtual Currency

The Company has not dealt with Crypto Currency or Virtual Currency.

(xi) Utilisation of Borrowed funds and share premium

(A) Where Company has advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall: No

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiaries) or: No

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries; The Company shall disclose the following: No

(I) date and amount of fund advanced or loaned or invested in Intermediaries with complete details of each Intermediary.

(II) date and amount of fund further advanced or loaned or invested by such Intermediaries to other intermediaries or Ultimate Beneficiaries alongwith complete details of the ultimate beneficiaries.

(III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries

(IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of Money-Laundering act, 2002 (15 of 2003).

(B) Where a Company has received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall disclose the following: No

(i) 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: No

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries, The Company shall disclose the following: No

(I) date and amount of fund received from Funding parties with complete details of each Funding party.

(II) date and amount of fund further advanced or loaned or invested other intermediaries or Ultimate Beneficiaries alongwith complete details of the other intermediaries'' or ultimate beneficiaries.

(III) date and amount of guarantee, security or the like provided to or on behalf of the Ultimate Beneficiaries

(IV) declaration that relevant provisions of the Foreign Exchange Management Act, 1999 (42 of 1999) and Companies Act has been complied with for such transactions and the transactions are not violative of the Prevention of MoneyLaundering act, 2002 (15 of 2003).

(xiii) Registration of charges or satisfaction with Registrar of Companies

Where any charges or satisfaction yet to be registered with Registrar of Companies beyond the statutory period, details and reasons thereof shall be disclosed.

(ivx) Relationship with Struck off Companies

Where the Company has any transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956, the Company shall disclose the details: NIL

(xv) Compliance with number of layers of Companies

Where the Company has not complied with the number of layers prescribed under clause (87) of Section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017, the name and CIN of the companies beyond the specified layers and the relationship/extent of holding of the Company in such downstream companies shall be disclosed. N/A

(xvi) Loans or Advances in the nature of loans are granted to promoters, directors, KMPs and the related parties either severally or jointly with any other person, that are repayable on demand or without specifying any terms or period of repayment. No.

(xvii) Where the Company has borrowings from banks or financial institutions on the basis of security of current assets, it shall disclose the following: YES

(a) whether quarterly returns or statements of current assets filed by the Company with banks or financial institutions are in agreement with the books of accounts. YES

(b) if not, summary of reconciliation and reasons of material discrepancies, if any to be adequately disclosed. No

NOTE NO. 29: (4) Amount of Capital Commitments

Advance for Capital items of ? 99,93,707.00 for Plant & machinery and Building work-shop shed are shown in Note No. 9 under the head of Current Loans and Advances the total order value for plant & machinery is ? 3,02,03,712.00 and order value for building work is ? 7,50,000.00

(i) The quantitative details stated above are based on the certification given by the management.

(ii) The installed capacity is not being verified by us as a technical matter and it is taken as certified by management.

(iii) The quantities have been shown to the nearest units.

NOTE NO. 36: PROVISION FOR CSR EXPENSES

Provision for CSR made during the year ended 31^st March, 2023 of ? 20.93.

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Mar 31, 2018

Company Overview

FRONTIER SPRINGS LTD. is a Listed Public Limited Company having its Registered office at KM-25/4 Kalpi Road Rania Kanpur-Dehat and is mainly engaged in the production of L.B.Springs and Hot Coiled Compression Spring and forging items for Wagon, Locomotives and Carriage and are regularly supplying to Railways, Bogie Manufactures, Chittaranjan Locomotive Works, Diesel Locomotive Works, Integrate Coach Factory, Rail Coach Factory. In addition to the supply to the Railways, the Unit is also supplying the Springs to Heavy Engineering Industries & original Earth Movers Equipment manufacturers i.e. BEML, TELCON, Bharat Heavy Electricals Ltd.

Since last about 33 years FRONTIER SPRINGS LTD. is registered with RDSO (Ministry of Railways) for supply of springs to Indian Railways and the unit has developed large number of springs as per the latest specification of the RDSO.

The Company has set up three plants to meet the demand requirements of the above stated Industries at 1. KM-25/4, Rania Kanpur Dehat, 2. 91/2, Kunja, Paonta Sahib, Sirmaor Himanchal Pradesh, 3. Forging Unit at KM-25/4, Rania Kanpur Dehat

(1) (i) It has been informed to us by the management of Company that due to change in Market Value of ICICI Prudential Mutual Funds on 31st March 2018, there is change in value of Rs.1,04,792.08 which has been duly mentioned in note no. 2 on Financial Statement of Non-Current Investment.

(ii) It has been further informed to us by the management of Company that due to change in Market Value of ICICI Prudential Mutual Funds on 31st March 2018, there is change in value of Rs.1,23,915.45 and change in Market value as on 31st March 2018 of SBI Dual Advantage Fund there is change in value to Rs. 21,240.00 which has been duly mentioned in Note no. 6 on Financial Statement of Current Investment.

The amount being nominal hence it is decided not to present the same in other comprehensive income. If the change would have been made then the Total Figures of Balance sheet would have been Rs. 59,48,46,184.16, figures of Total Reserves would have been Rs. 25,76,73,543.94, presentation of Non-Current Investment, Current Investment & Other Comprehansive Income and change in Equity will stand as follows:

Notes: The applicability of Ind As has come for first time for the relevent year of the Company hence only figures of current years have been prepared in accordance to the same and the presentation of previous years figures have been accordingly changes to make it comparable.

1.1 Capital Work-in-Progress of Rs. 33,76,159.40 includes:

i) Rs. 10,29,731.00 on account of Plant & Machinery wok-in-progress for Coiling Machine and Rs. 23,46,428.40 on account of building Work-in-progress for construction of workshed at Rania and office at Panki Kanpur. (Previous Year Rs.88,18,870.00 on account of workshed Building Work-in-Progress and Rs. 10,29,731.00 on account of Plant & Machinery Work-in-Progress for coiling machine.)

2.1 Advance for Capital items of Rs.38,42,877.00 include as under:

i) Rs.31,52,877/- advance to Unitech Limited on account of booking of a flat at Gurgaon, Rs.5,50,000.00 advance for office equipments and Rs. 1,40,000/- given advance to supplier on account of spares for furnace repairing.

(Prev.Yr.Rs.31,52,877/- advance to Unitech Limited on account of booking of a flat at Gurgaon, Rs.7,00,000.00 advance for building material for road construction and Rs. 1,40,000/- given advance to supplier on account of spares for furnace repairing).

2.2 Security deposits of Rs.75,23,409.00 include as under:

i) Rs.25,60,262/- deposit for electricity with U. P. S. E. B. and H. P S. E. B. (Prev.Yr. Rs.25,60,262/-), and Rs. 8,000/- with Central Excise (Prev. Yr. Rs.Nil).

ii) Rs.46,26,377/- deposit with Indian Railway against warrantee (Prev.Yr.Rs.33,99,624/-), Rs.30,505/- deposit for gas cylendar with IOC (Prev.Yr.Rs.27,450/-) and Rs. 1,20,000/- deposit with sales tax at Ludhiana.(Prev. Yr. Rs. 120000/)

iii) Rs.65,805/- deposit for Telephone with BSNL (Prev. Yr. Rs.65,805/-) and Rs. 10,000/-deposit to Standard Chartered Bank for transfer of shares. (Prev. Yr. Rs.10,000/-) and Rs. 1,02,500/- deposit against rent.(Pre.Yr. Rs. 1,64,000/-)

3.1 Balance with YES Bank Ltd. of Rs. 4,85,550/- is on account of Unpaid Dividend Rs.1,83,218/- for the period 2010-11 and Rs. 3,02,332/- for the period 2011-12.

The Company has issued only one class of shares referred to as equity shares having a par value of Rs.10/-. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the Company, the share holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The proportion to the number of equity shares held by the shareholders.

4. DEFERRED TAX LIABILITIES (NET)

AS-22 issued by the Institute of Chartered Accountants of India, the major components of accumulated deferred tax assets & accumulated deferred tax liabilities recognised up to the current financial year is as under : -

The difference Deferred Tax Assets for the year ended 31st March,2018 Rs. 79,07,899.00 has been debited to Profit & Loss Account.

5.1 Primary secured by the hypothecation of Company''s entire current assets (both present and future) and the first charge on entire fixed assets of the Company inclusive of equitable mortgage of Factory land & building situated at E-14,Panki Industrial Area Kanpur, and first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at KM-25/4, Kalpi Road, Rania Kanpur, also first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at 91/2,Kunja Paonta shahib (H.P). Loans are guaranteed by Directors Shri K.L. Bhatia, Shri Kapil Bhatia, Shri Neeraj Bhatia.

6. REMITTANCE IN FOREIGN CURRENCY ON ACCOUNT OF DIVIDEND

The Company has not paid any dividend in respect of shares held by Non-Residents on repatriation basis. The exact amount of dividend remitted in foreign currency cannot be ascertained. The total amount remittable in this respect is given herein below:

Notes

The value of sales is stated :-

(A) Inclusive of Sales Tax, Excise Duty & GST.

(B) Inclusive items manufactured and sold only.

(C) Net of Goods Returned.

Notes :-

(i) The quantitative details stated above are based on the certification given by the management.

(ii) The installed capacity is not being verified by us as a technical matter and it is taken as certified by the management.

(iii) The quantities have been shown to the nearest units.

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Mar 31, 2015

1. PrimaryeSecuredyBy The Hypothecation of Company's Entireu Currents Assets (Both Present Andu Future) And The First Charge on Entire Fixeds Assets of The Company Inclusive of Equitable Mortgage of Factory Land & Building sit Situated At E-14,Panki Industrial Area Kanpur, And First Charge on Entire Fixed Assets of The Company Inclusive of Equitable Mortgage of Factory Land & Building Situated At Km-25/4, Kalpi Road, Rania Kanpur, Alsos First Charge on nt Entire Fixed Assets of The Company Inclusive of Equitable Mortgage of Factory Land & Building Situated At 91/2,Kunjaao Paonta Shahib (H.p.). Loans Are Guaranteed By Directors Shri K.l. Bhatia, Shri Kapil Bhatia, Shri Neeraj Bhatia.

2. Advance For Capital Items Include As Under:

i) Rs. 31,52,877/- Advance To Unitech Limited on Account of Booking of A Flat At Gurgaon, Rs.1,41,231.99- Advance To Building Material Suppliers For Construction of Work-shed Buildingand Rs. 4,65,000/- Given Advance To Supplier on Account of Plant & Machinery, (Prev.yr.rs.31,52,877/- Advance To Unitech Limited on Account of Booking of A Flat At Gurgaon, Rs. 38,345.00 Given To M/S Thermal System & Engeering, Rs.2,90,000/-advance Given To Supplier on Account of Plant & Machinery Rs.3,50,000/-as Advance For Buildinge Material To Suppliers For Construction of Work- shed Building.)

3. Security Deposits Include As Under:

i) Rs.11,02,038/- Deposit For Electricity With U.P.S.E.B. And H.P.S.E.B. (Prev.yr. Rs.11,02,038/-), Rs.8,66,441/- Deposit For Gas, With Central U.P.Gas Ltd. (Prev.yr. Rs.8,66,441/-)

ii) Rs.19,31,710/- Deposit With Indian Railway Against Warrantee (prev.yr.Rs.13,25,277/-), Rs.27,450/- Deposit For Gas Cyclinder With Ioc (Prev. Rs.27,450/-).

iii) Rs.65,805/- Deposit For Telephone With Bsnl (Prev. Yr. Rs.65,805/-) And Rs. 10,000/-deposit To Stanadard Chartered Bank For Transfer of Shares.

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Mar 31, 2014

Company Overview

FRONTIER SPRINGS LTD. is a Listed Public Limited Company having its registered office at E-14, Panki Industrial Area Site-1, Kanpur and is mainly engaged in the production of L.B.Springs and Hot Coiled compression Spring and forging items for Wagon, Locomotives and Carriage and are regularly supplying to Railways, Bogie Manufactures, Chittaranjan Locomotive Works, Diesel Locomotive Works, Integrate Coach Factory, Rail Coach Factory. In addition to the supply to the Railways, the Unit is also supplying the Springs to Heavy Engineering Industries & original Earth Movers Equipment manufacturers i.e. BEML, TELCON, Bharat Heavy Electricals Ltd.

Since last about 32 years FRONTIER SPRINGS LTD. is registered with RDSO (Ministry of Railways) for supply of springs to Indian Railways and the unit has developed large number of springs as per the latest specification of the RDSO.

The Company has set up three plants to meet the demand requirements of the above stated Industries at 1. Km 25/4, Rania Kanpur Dehat, 2. 91/2, Kunja, Paonta Sahib, Sirmaor Himanchal Pradesh, 3. Forging Unit at E-14, Site No.1, Panki Industrial Area, Panki, Kanpur.

1 Primary secured by the hypothecation of Company''s entire current assets (both present and future) and the first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at E-14,Panki Industrial Area Kanpur, and first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at KM-25/4, Kalpi Road, Rania Kanpur, also first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at 91/2,Kunja Paonta shahib (H.P). Loans are guaranteed by Directors Shri K.L. Bhatia, Shri Kapil Bhatia, Shri Neeraj Bhatia.

2 Company has taken unsecured loan Rs.27,00,000.00 from Shri Neeraj Bhatia Director of the Company and has repaid Rs.9,79,004.00 till date (including interest Rs.1,74,004.00).

3 Advance for Capital items include as under:

i) Rs.31,52,877/- advance to Unitech Limited on account of booking of a flat at Gurgaon, Rs.38,345/- given to M/s Thermal System & Engineering ,Rs.2,90,000/-advance given to supplier on account of Plant & Machinery, Rs.3,50,000/- given as advance for building material to suppliers for construction of work-shed building.(Prev.Yr.Rs.31,52,877/- advance to Unitech Limited on account of booking of a flat at Gurgaon, Rs.1,00,000/- given for as advance building material to suppliers for construction of road.) And (Prev.Yr. Rs.43,78,035/- given as advance to Nikita Marketing, Nondestructive Test Appliations and Mishra Hydraulic Pneumatic (India) on account of purchase of Plant & Machinary against Capital Commitment of 319000 Australian Dollars.)

4 Security deposits include as under:

i) Rs.11,02,038/- deposit for electricity with U.P.S.E.B. and H.P.S.E.B. (Prev.Yr. Rs.11,02,038/-), Rs.8,66,441/- de- posit for Gas, with Central U.P.Gas Ltd. (Prev.Yr. Rs.8,66,441/-)

ii) Rs.13,25,277/- deposit with Indian Railway against warrantee(Prev.Yr.Rs.11,99,736/-), Rs.27,450/- deposit for gas cylendar with IOC (Prev.Rs.27,450/-). (Prev.Yr. Rs.1,11,202/-) deposit with Sales Tax deptt. ,

iii) Rs.65,805/- deposit for Telephone with BSNL (Prev. Yr. Rs.69,485/-)

5 Stock-in-Transit Rs. NIL

(Previous year stock-in-Transit of Rs. 53,16,900/- (includes Raw material of Rs. 51,11,261/-, Machinery Spares of Rs.32,130/- and Consumable stores of Rs.1,73,509/-) are entrerd in books as Stock-In-Transit due to non receipt of goods by 31.03.2013 and subject to reconcilation of the account of supplier. The materials have been are received on dt. 02.04.2013.

6 Notes

(i) The quantitative details stated above are based on the certification given by the management.

(ii) The installed capacity is not being verified by us as a technical matter and it is taken as certified by the management.

(iii) The quantities have been shown to the nearest units.

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Mar 31, 2013

1.1 Advance for Capital items include as under:

i) Rs.31,52,877/- advance to Unitech Limited on account of booking of a flat at Gurgaon, Rs.1,00,000/- given as advance for building material to suppliers for construction of road.

ii) Rs. 43,78,035/- given as advance to Nikita marketing, Nondestructive Test Appli. and Mishra Hydraulic Pneumatic (India) on account of purchase of Plant & Machinery against Capital Commitment of 319000 Australian Dollars.

1.2 Security deposits include as under :

i) Rs.11,02,038/- deposit for electricity with U.P.S.E.B. and H.P.S.E.B. (Prev.Yr. Rs.11,02,038/-), Rs.8,66,441- deposit for Gas, with Central U.P.Gas Ltd. (Prev.Yr. Rs.3,54,432/-).

ii) Rs.14,54,841/- deposit with Indian Railway against warrantee (Prev.Yr.Rs.11,99,736/-), Rs.1,11,202/- deposit with Sales Tax deptt.(Prev.Yr. Rs.1,11,202/-), Rs.27,450/- deposit for gas cylendar with IOC (Prev.Rs.27,450/-).

iii) Rs.69,485/- deposit for Telephone with BSNL (Prev. Yr. Rs.69,485/-)

2.1 Stock-in-Transit of Rs. 53,16,900/- (includes Raw material of Rs. 51,11,261/-, Machinery Spares of Rs.32,130/- and Consumable stores of Rs.1,73,509/- ) are entered in books as Stock-In-Transit due to non receipt of goods by 31.03.2013 and subject to reconcilation of the account of supplier. The materials have been are received on 02.04.2013.

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Mar 31, 2012

The Company has Only one Class of Shares Referred to as Equity Shares having a par Value of Rs. 10/-. Each Holder of Equity Shares is entitled to one vote per Share.

The Company declares and pays Dividends 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.

The Board of Directors, in their meeting held on May 28, 2012, proposed a Final Dividend of Re. 1/- Per Equity Share.

The Proposal is Subject to the Approval of Shareholders at the Forthcomming Annual General Meeting of the Company.

In the Event of Liquidation of the Company, the Share Holders of Equity Shares will be entitled to receive any of the remaining Assets of the Company, after distribution of all Preferential Amounts. However, no Such Preferen- tial amounts exist currently. The Proportion to the number of Equity Shares held by the Shareholders.

Primary secured by the hypothecation of Company's entire current assets (both present and future) and the first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at E-14,Panki Industrial Area Kanpur, and first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at KM-25/4, Kalpi Road, Rania Kanpur, also first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at 91/2, Kunja, Paonta Sahib (H.P). Loans are guaranteed by Directors Shri K.L. Bhatia, Shri Kapil Bhatia, Shri Neeraj Bhatia & Smt.Sushma Bhatia and third party being Smt.Shyama Bhatia.

Note

(i) Since the market value of 1,45,000 equity shares of Chariot Auto Accessories Ltd. and the market value of 8,000 preference shares of Frontier Alloy Steels Ltd. is not available with the Company the gain /loss on these investment cannot be ascertained and the same are valued at cost.

(ii) The increase /decrease in market value of Share/Mutual Fund has not been regarded as permanent by the Company, hence no revaluation has been made in the books of account.

1.1 Advance for Capital items include as under :

i) Rs.31,52,877.00 advance to Unitech Limited on account of booking of a flat at Gurgaon, Rs. 8,80,050.00 given as advance for building material to suppliers for constuction of office and Rs.5,82,225.00 given as advance to B.K. Furnitures on account of purchase of office furniture.

ii) Rs. 7,53,810.00 given as advance to Nikita Marketing, A.K. Singh Associates and Mishra Hydrolic Pneumatic (India) on account of purchase of Plant & Machinery.

1.2Security deposit include as under:

i) Rs.11,02,038.00 deposit for Electricity, U.PS.E.B. (Prev. Yr. Rs. 5,62,038.00), Rs.3,54,432.00 deposit for GAS, CUGL.

ii) Rs.11,99,736.00 deposit to Indian Railway against warranty(Prev.Yr. Rs. 26,32,181.00), Rs.1,11,202.00 deposit to Sales Tax deptt. (Prev. Yr. Rs. 4,41,202.00), Rs. 27,450.00 deposit to IOC (Prev. Yr. Rs. 27,450.00).

iii) Rs.69,485.00 deposit for Telephone (Prev. Yr.68,985.00)

2.1 Stock-in-Transit of Rs. 28,24,773.00 (includes Raw material of Rs. 27,17,707.00 and Consumable stores of Rs.1,07,066.00) are entered in books as stock-in-transit due to non receipt of goods on dt. 31.03.2012 to reconcile the account of supplier. The materials are received on dt. 05.04.2012.

Notes

(i) The quantitative details stated above are based on the certification given by the management.

(ii) The installed capacity is not being verified by us as a technical matter and it is taken as certified by the management.

(iii) The quantities have been shown to the nearest units.

Company overview

FRONTIER SPRINGS LTD. is a Listed Public Limited Company having its registered office at E-14, Panki Industrial Area Site-1, Kanpur and is mainly engaged in the production of L.B.Springs and Hot Coiled Compression Spring for Wagon, Locomotives and Carriage and are regularly supplying to Railways, Bogie Manufacturers, Chittaranjan Locomotive Works, Diesel Locomotive Works, Integrated Coach Factory, Rail Coach Factory. In addition to the supply to the Railways, the Unit is also supplying the Springs to Heavy Engineering Industries & original Earth Movers Equipment manufacturers i.e. BEML, TELCON, Bharat Heavy Electricals Ltd.

Since last about 30 years FRONTIER SPRINGS LTD. is registered with RDSO (Ministry of Railways) for supply of springs to Indian Railways and the unit has developed large number of springs as per the latest specification of the RDSO.

The Company has set up three plants to meet the demand requirements of the above stated Industries at 1. Km 25/4, Rania Ramabai Nagar, 2. 91/2, Kunja, Paonta Sahib, Sirmor Himanchal Pradesh, 3. Forging Plant at E-14, Panki Industrial Area, Kanpur.

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Mar 31, 2010

1. Excise duty, education cess & higher secondary education cess on excise of Rs. 13,37,785.00 on finished goods including scrap of Rs. 1,64,68,328.72 lying at the factory premises at the end of the year, would be payable at the time of clearance of such stock and the amount has been provided for and considered in the closing stock.

2. Balances of sundry debtors, sundry creditors and loans & advances are subject to confirmation and reconciliation from the respective parties/persons.

3. In the opinion of the Board, the current assets, loans & advances are approximately of the value stated, if realised in ordinary course of business. Provision for the known liabilities and for all doubtful debts & advances have been provided as reasonably required.

4. Number of employees who are getting remuneration in aggregate of not less than Rs. 24,00,000/- per annum if employed throughout the year or if employed for part of the year were in receipt of remuneration in aggregate of not less than of Rs. 2,00,000/- per month – NIL.

5. The Company is contingently liable towards bank guarantee provided to the tune of Rs. 129.65 lacs in favour of Indian Railways (Prev.Yr.Rs. 121.80 lacs in favour of Indian Railways).

6. During the year ended 31st March, 2008, profit of the Company has reduced substantially due to irrecoverable sundry debtors of Rs. 22,64,238.24 due from Maharashtra State Road Transport Corporation has been written off.

However, This dispute is still pending before the Honble Court of Third Additional Civil Judge (Senior Division), Kanpur Nagar. Hence this may be considered as contingent asset.

7. The Company has paid an Advance Income Tax for current year to the tune of Rs. 80,00,000.00 and the Company has also claim of Rs. 45,709.00 on account of T.D.S. on interest on S.T.D.R. with S.B.I. & Rs. 1,37,764.00 on account of T.D.S. deducted on rent of shed for the current year under consideration.

8. The Company has started production from 15.09.2009 in second unit at 91/2 Kunja, Paonta Sahib (H.P.). The incidental expenditure during the pre-operative period has been capitalised.

9. Details of Loans :- (i) Cash Credit Limit (Stock) : Rs. 1,89,80,656.09 (as on 31.03.2010)

Primary secured by the hypothecation of Companys entire current assets (both present and future) and the first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at E–14,Panki Industrial Area, Kanpur, and first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at KM-25/4, Kalpi Road, Rania Kanpur, also first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at 91/2, Kunja, Paonta Sahib (H.P.). Loans are guaranteed by Directors Shri K.L. Bhatia, Shri Kapil Bhatia, Shri Neeraj Bhatia & Smt.Sushma Bhatia and third party being Smt. Shyama Bhatia.

(ii) Cash Credit Limit (Book Debts) : Rs. 63,40,737.00 (as on 31.03.2010)

Primary secured by the hypothecation of bills accompanied by IBA approved transporters receipt, invoice, bills of exchange & excise copy of invoice. The first charges on Companys entire fixed assets (both present and future) inclusive of equitable mortgage of factory land & building situated at E–14,Panki Industrial Area, Kanpur, and first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at KM-25/4, Kalpi Road, Rania Kanpur, also first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at 91/2, Kunja, Paonta Sahib (H.P.). Loans are guaranteed by Directors Shri K.L. Bhatia, Shri Kapil Bhatia, Shri Neeraj Bhatia & Smt.Sushma Bhatia and third party being Smt.Shyama Bhatia.

(iii) Term Loan (Plant & Machinery) Rs. 1,21,65,482.00 (as on 31.03.2010)

Primary secured by the hypothecation of Companys entire current assets (both present and future) and the first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at E–14,Panki Industrial Area, Kanpur, and first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at KM-25/4, Kalpi Road, Rania Kanpur, also first charge on entire fixed assets of the Company inclusive of equitable mortgage of factory land & building situated at 91/2, Kunja, Paonta Sahib (H.P.) Loans are guaranteed by Directors Shri K.L. Bhatia, Shri Kapil Bhatia, Shri Neeraj Bhatia & Smt. Sushma Bhatia and third party being Smt.Shyama Bhatia.

(iv) Car Loan :-

(a) ICICI Bank Ltd. Car Loan of Rs. 9,03,494.00

Primary secured by the hypothecation of Companys vehicle No. UP78-BY/7707

10. During the year Company has paid Rs. 1,455.00 as interest on delayed payment of T.D.S., Excise, Entry Tax & Sales tax.

11. Bonus as shown in the Profit & Loss Account Rs. 10,16,619.00 (includes provision made during the year Rs. 8,64,924.00 and Rs.1,51,695.00 paid out of provision for the previous year 2008-09).

12. Cash & Bank Balance includes Rs. 55,86,260.00 (Pre. Yr. Rs. 42,98,260.00) as a Short Term Deposit Receipt with S.B.I. against Letter of Credit Limit, Bank Guarantee against purchase order from customer i. e. Indian Railways & Sales Tax Deptt.

13. Liability on account of interest on delayed payment to small scale and ancillary industrial undertakings under the Small Scale and Industrial Undertakings Act,1993 cannot be ascertained as desired details are not available with Company.

14. Previous years figures have been regrouped/recasted/reclassified to make them comparable wherever required.

15. The Company has its depot at 40/2 Bama Charan Roy Road, Post office Behala, Kolkata. The stock amounting Rs. 3,29,71,600.00 is being transferred to depot against form "F". The total sale booked through depot during the year is Rs. 3,42,90,465.00 with local sales against VAT.

16. Schedules A to S form an integral part of the Balance Sheet and Profit & Loss account.