Notes to Accounts of Hi-Tech Pipes Ltd.

Mar 31, 2023

Provisions

Provisions are recognised when the Company
has a present legal or constructive obligation
as a result of past events, it is probable that an
outflow of resources will be required to settle
the obligation and the amount can be reliably
estimated. These are reviewed at each year end
and reflect the best current estimate. Provisions
are not recognised for future operating losses.

Where there are a number of similar obligations,
the likelihood that an outflow will be required
in settlement is determined by considering the
class of obligations as a whole. A provision is

recognised even if the likelihood of an outflow
with respect to any one item included in the
same class of obligations may be small.

Provisions are measured at the present value
of best estimate of the Management of the
expenditure required to settle the present
obligation at the end of the reporting period.
The discount rate used to determine the present
value is a pre-tax rate that reflects current market
assessments of the time value of money and the
risks specific to the liability. The increase in the
provision due to the passage of time is recognised
as interest expense.

s) Contingent Liabilities:

Contingent liabilities are disclosed when there
is a possible obligation arising from past events,
the existence of which will be confirmed only by
the occurrence or non-occurrence of one or more
uncertain future events not wholly within the
control of the Company or a present obligation
that arises from past events where it is either
not probable that an outflow of resources will
be required to settle the obligation or a reliable
estimate of the amount cannot be made.

t) Employee benefits:

Short-term employee benefits:

All employee benefits payable within 12 months
of service such as salaries, wages, bonus, ex-gratia,
medical benefits etc. are recognised in the year in
which the employees render the related service
and are presented as current employee benefit
obligations within the Balance Sheet. Termination
benefits are recognised as an expense as and
when incurred.

Short-term leave encashment is provided at
undiscounted amount during the accounting
period based on service rendered by employees.
Compensation payable under Voluntary
Retirement Scheme is being charged to
Statement of Profit and Loss in the year of
settlement.

Other long-term employee benefits:

The liabilities for earned leave and sick leave
are not expected to be settled wholly within

12 months after the end of the period in which
the employees render the related service. They
are therefore measured as the present value of
expected future payments to be made in respect
of services provided by employees up to the end
of the reporting period using the projected unit
credit method. The benefits are discounted using
the market yields at the end of the reporting
period that have terms approximating to the
terms of the related obligation. Remeasurements
as a result of experience adjustments and changes
in actuarial assumptions are recognised in profit
or loss.

The obligations are presented as current liabilities
in the Balance Sheet if the entity does not have
an unconditional right to defer settlement for
at least 12 months after the reporting period,
regardless of when the actual settlement is
expected to occur.

Defined contribution plan:

Contributions to defined contribution schemes
such as contribution to Provident Fund,
Superannuation Fund, Employees'' State
Insurance Corporation, National Pension Scheme
and Labours Welfare Fund are charged as an
expense to the Statement of Profit and Loss based
on the amount of contribution required to be
made as and when services are rendered by the
employees. The above benefits are classified as
Defined Contribution Schemes as the Company
has no further defined obligations beyond the
monthly contributions.

Defined benefit plan:

Gratuity:

Gratuity liability is a defined benefit obligation and
is computed on the basis of an actuarial valuation
by an actuary appointed for the purpose as per
projected unit credit method at the end of each
financial year. The liability or asset recognised in
the Balance Sheet in respect of defined benefit
pension and gratuity plans is the present value of
the defined benefit obligation at the end of the
reporting period less the fair value of plan assets.

The present value of the defined benefit obligation
is determined by discounting the estimated

future cash outflows by reference to market yields
at the end of the reporting period on Government
bonds that have terms approximating to the
terms of the related obligation.

The net interest cost is calculated by applying the
discount rate to the net balance of the defined
benefit obligation and the fair value of plan assets.
This cost is included in employee benefit expense
in the Statement of Profit and Loss.

Remeasurements gains and losses arising from
experience adjustments and changes in actuarial
assumptions are recognised in the period in
which they occur directly in Other Comprehensive
Income. They are included in retained earnings in
the Statement of changes in equity and in the
Balance Sheet.

Changes in the present value of the defined benefit
obligation resulting from plan amendments or
curtailments are recognised immediately in profit
or loss as past service cost.

u) Research and Development expenditure:

Research and Development expenditure is
charged to revenue under the natural heads
of account in the year in which it is incurred.
Research and Development expenditure on
property, plant and equipment is treated in the
same way as expenditure on other property, plant
and equipment.

v) Earnings per share:

Earnings per share (EPS) is calculated by dividing
the net profit or loss for the period attributable
to Equity Shareholders by the weighted average
number of Equity shares outstanding during
the period. Earnings considered in ascertaining
the EPS is the net profit for the period and any
attributable tax thereto for the period.

w) Contributed equity:

Equity shares are classified as equity. Incremental
costs directly attributable to the issue of new
shares or options are shown in equity as a
deduction, net of tax, from the proceeds.

Critical estimates and judgements

Preparation of the Financial Statements requires
use of accounting estimates which, by definition,
will seldom equal the actual results. This Note
provides an overview of the areas that involved a
higher degree of judgements or complexity, and
of items which are more likely to be materially
adjusted due to estimates and assumptions
turning out to be different than those originally
assessed. Detailed information about each of
these estimates and judgements is included in
relevant notes together with information about
the basis of calculation for each affected line item
in the Financial Statements.

The areas involving critical estimates or
judgements are:

i) Estimation of useful life of tangible assets

ii) Estimation of defined benefit obligation
Estimates and judgements are continually

evaluated. They are based on historical experience
and other factors, including expectations of future
events that may have a financial impact on the
Company and that are believed to be reasonable
under the circumstances

x Regrouped/ Recast/Reclassified

Figures of earlier year have been reclassified to
conform to Ind AS presentation requirement.

y Rounding off.

Figures less than 50000 have been rounded off.

z. Authorisation for issue of the Financial
statement

The Consolidated Financial Statements were
authorised for issue by the Board of Directors on
May 27^th, 2023.

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Mar 31, 2021

a) Property, Plant & equipment have been pledged as security against certain long term borrowings of the company as at 31 March 2021 (Refer Note 15 )

b) The Company has Capitalised '' 215.50 Lakh as interest during the Financial Year 2020-21. capitalisation was 108 lakh as Interest and 60.10 for Manpower for financial year 2019-20

a) The credit period on sale of goods ranges from 30 to 60 days without securities. No interest is charged on trade receivables.

b) Before accepting any new customer, the company evaluates the financial position, past performance, business opportunities, credit references etc. of the new customers and define credit limit and credit period. The credit limit and the credit period are reviewed at periodical intervals.

c) The company does not generally hold any collateral or other credit enhancements over the balances.

d) Trade receivables have been given as colleteral toward borrowings (refer security note below Note 19)

b) **Rights, preferences and restrictions attached to equity shares

The Company has single class of equity shares and carry a right of dividend. Each shareholder is eligible for one vote per share held & in the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

d) For the period of five years immediately preceding the date of Balance Sheet,

Aggregate number & class of shares allotted by the company as fully paid up pursuance to contracts without receipt of cash : NIL

Aggregate number & class of shares bought back by the company : NIL

Aggregate number & class of shares alloted by the company as fully paid up by way of bonus shares

(i) Securities premium account

Securities premium reserve is created due to premium on issue of shares. These reserve is utilised in accordance with the provisions of the Act.

(ii) General reserve

Under the erstwhile Indian Companies Act 1956, a general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year.

(iii) Capital Reserve

The Company had allotted 8,00,000 Fully Convertible Warrants at a price of ''100 being 25% of issue price of ''400/- on March, 2018 out of which the allottees had converted their 4,25,000 FCW’s into 4,25,000 Equity Shares within the period of 18 Months and 3,75,000 FCW’s were left pending for conversion. Hence, the Company has forfeited the allotment money of ''3,75,00,000 ('' Three Crore Seventy Five Lakhs) for 3,75,000 FCW’s and transferred the same on 30th sept.2019 in the Capital Reserve Account

A Term Loan agreegating to '' 6384.64 Lakhs (Non current), '' 1331.37 Lakhs (current) (PY '' 4922.84 Lakhs Non Current & '' 1085.36 Lakhs Current) are secured. Some of these loans are secured by Equitable Mortgage of land & Building and/or Hypothecation of plant & machinery of its manufactoring units situated at plot No. 10 & 16 at sikandrabad, sanad, gujrat and personnel guarntee of promoter Director. some of these loans are secured by Equitable morgage on comapny’s commercial property. these loans are repayable in monthly or quarterly installments along with interest.

B Term Loan at the year end were Nil. ( P.Y '' 335.77 Lakhs Non current & RS. 131.65 Lakhs Current) are secured by Equatable Mortgage on plant & Machinery being financed. These term loans are repayable in monthly installments along with interest.

C Term Loan agreegatingto '' 71.16 Lakhs ( Non Current ) '' 86.10 Lakhs (Current ) (P.Y '' 208.88 Lakhs Non Current & '' 47.99 Lakhs Current) are secured by specific charge on the vehicle hypothicated againgst these loans. These term loans are repayable in monthly installments along with interest.

18. INCOME TAXES

Indian companies are subject to Indian income tax on a standalone basis. Each entity is assessed to tax on taxable profits determined for each fiscal year beginning on April 1 and ending on March 31. For each fiscal year, the respective entities’ profit or loss is subject to the higher of the regular income tax payable or the minimum alternative tax ("MAT”).

Statutory income taxes are assessed based on book profits prepared under generally accepted accounting principles in India adjusted in accordance with the provisions of the (Indian) Income tax Act, 1961. Such adjustments generally relate to depreciation of fixed assets, disallowances of certain provisions and accruals, deduction for tax holidays, the set-off of tax losses and depreciation carried forward and retirement benefit costs. Statutory income tax is charged at 22% plus a surcharge and education cess.

32. SEGMENT REPORTING

In accordanace with the provisions of Ind AS 108 -Operating Segment, the operations of the company falls under manufacturing of Steel Tubes & Pipes and which is also considered to be the reportable segment by management.

33. FINANCIAL INSTRUMENTS

a) Capital Risk Management

The company’s capital requirements are mainly to fund its expansion, working capital and strategic acquisition. The principal source of funding of the company has been, and is expected to continue to be, cash generated from its operations supplemented by short term borrowings from bank and the funds from capital market. The company is not subject to any externally imposed capital requirements.

The company regularly consider other financing and refinancing opportunities to diversify its debt profile, reduce interest cost and closely monitors its judicious allocation amongst competing expansion projects and strategic acquisition, to capture market opportunities at minimum risk.

The company monitors its capital gearing ratio, which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowing less cash and cash equivalents, bank balances other cash and cash equivalents.

i) Equity includes all capital and reserves of the Company that are managed as capital.

ii) Debt is defined as long and short term borrowings (excluding financial guarantee contracts), as described in Note 15 and 19.

b) Financial risk management

The Company has an Audit & Risk Management Committee established by its Board of Directors for the Risk Management Framework and developing and monitoring the Company’s risk management policy. The risk management policies are established to ensure timely identification and evaluation of risks, setting acceptable risk thresholds, identifying and mapping controls against these risks, monitor the risks and their limits, improve risk awareness and transparency. Risk management policies and systems are reviewed regularly to reflect changes in the market conditions and the Company’s activities to provide reliable information to the Management and the Board to evaluate the adequacy of the risk management framework in relationto the risk faced by the Company.

The risk management policies aims to mitigate the following risks arising from the financial instruments:

- Market risk

- Credit risk; and

- Liquidity risk

c) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in the market prices. The Company is exposed in the ordinary course of its business to risk related to changes in foreign currency exchange rates, commodity prices and interest rates.

d) Commodity price risk:

The Company’s revenue is exposed to the market risk of price fluctuations related to the sale of its products. Market forces generally determine prices for the steel products sold by the company. These prices may be influenced by factors such as supply and demand, production costs (including the cost of raw material inputs) and global and regional economic conditions and growth. Adverse changes in any of these factors may reduce the revenue that the Company earns from the sale of its products.

The Company purchases the steel and other building products in the open market from third parties in prevailing market price. The Company is therefore subject to fluctuations in the prices of HR Coils, Zinc etc.

The Company aims to sell the products at prevailing market prices. Similarly the Company procures the products based on prevailing market rates as the selling prices of steel products and the prices of inputs moves in the same direction.

e) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company is exposed to interest rate risk since funds are borrowed at floating interest rates. Interest rate risk is measured by using the cash flow sensitivity for changes in variable interest rate. The borrowings of the Company are principally denominated in rupees. The risk is managed by the Company by keeping a close watch on the market variables and time to time negotiations with the Bankers for reduction of rate of interest.

f) Credit risk management:

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks.

Company’s credit risk arises principally from the trade receivables and advances

Trade receivables:

Customer credit risk is managed centrally by the company and subject to established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on financial position, past performance, business/ economic conditions, market reputation, expected business etc. Based on that credit limit & credit terms are decided. Outstanding customer receivables are regularly monitored.

g) Liquidity risk management

Liquidity risk refers to the risk of financial distress extraordinary high financing costs arising due to shortage of liquid funds in a situation where business conditions unexpectedly deteriorate and requiring financing. The Company requires funds both for: term operational needs as well as for capex purposes. The Company generates sufficient cashflow for operations, which together with the available cash and cash equivalents and short term borrowings provide liquidity. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continue monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities. A table showing maturity profile of the Financial Assets & Liabilities has been placed on the website of the company.

h) Fair Valuation of Financial Instrument

Carrying value and Fair Value of Financial Instrument as on 31-03-2018, 31-03-2017 and 01-04-2016 is the same & there is no difference therein.

34. OPERATING LEASEa) As Lessor:

The company has entered into leasing arrangements for renting of a building admesuring approximately 1262 Square meter at the rate of '' 870/- per SM monthly For the period of 12 months, which is renewable.

b) As Leassee:

Various building have been taken on operatin lease with lease term for 11 months for office primises, storage space & employee residence which are renewable on a periodic basis by mutual consent of both parties. All the operating lease are cancelable by either parties for any reason by giving a prior notice. There is no restriction imposed by lease aggrements, such as those concerning dividens, additional debts.

The accompanying notes are an integral part of the financial statements

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Mar 31, 2018

E. Notes to the First Time Adoption of Ind AS to the Reconciliations of Standalone Financial Statements

i) Proposed dividend

Under IGAAP, dividends proposed by the Board of Directors after the Balance Sheet date, but before the approval of the Financial Statements were considered as adjusting events. Accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is approved by the Shareholders in the General Meeting. Accordingly, the liability for proposed dividend (including dividend distribution tax) of ?31.14 Lakhs as at March 31, 2017 (April 01, 2016: 62.29 Lakhs) included under current provisions has been reversed with corresponding adjustment to Retained earnings. Consequently, the total equity has increased by an equivalent amount.

ii) Deferred tax

Under IGAAP, deferred tax accounting was done using the income statement approach which focuses on differences between taxable profit and accounting profit for the period. Ind AS requires entities to account for deferred taxes using the Balance Sheet approach which focuses on temporary differences between the carrying amount of an asset or liability in the Balance Sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred taxes on temporary differences which were not required to be recorded under IGAAP.

In addition, the various transitional adjustments have led to deferred tax implications which the Company has accounted for.

iii) Excise duty

Under IGAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive excise duty. Excise duty paid is presented on the face of the Statement of Profit and Loss as part of expenses. This change has resulted in an increase in total revenue and total expenses. There is no impact on the total equity and profit.

Post applicability of Good & Service Tax ( GST ) w.e.f. 1st July 2017, revenue from operations are disclosed net of GST. Accordingly the revenue from operations and excise duty expense for the year ended 31.03.2018 & 31.03.2017 are not comparable with previous periods presented in the results.

For better understanding figures of revenue from operations net of GST & excise duty is given below :-

Particulars	For the year ended	For the year ended
Revenue from Operations	84,100.40	66,354.96
Less : Excise Duty	1,948.84	7,218.96
Revenue from Operations net of GST & Excise Duty	82,151.56	59,136.00

iv) Re Groupings

As per the requirement Ind AS, we need to do certain re-groupings in the Balance Sheet from the previous requirement of IGAAP. However it does not have any impact on Profitability | Equity.

40 Additional Information

in Lakhs)

Particulars As at 31 March As at 31 March As at 31 March 2018 2017 2016	As at 31 March 31 March 2018	As at 31 March As at 2018	2017	2016
a	GIF Value of Imports	-	-	1,551.17
b	Foreign Currency Earnings	-	-	-
c	Foreign Currency Expenditure	50.28	19.31	8.97

As per our report of even date	For and on behalf of Board of Directors
For A.N. Garg & Company
Chartered Accountants	Ajay Kumar Bansal	Anish Bansal
ICAI Regn No. 00461 6N	Managing Director	Director
	DIN: 01070123	DIN: 00670250
A.N. Garg
Partner	Arvind Bansal	Arun Kumar
Membership No. 083687	Chief Financial Officer	Company Secretary
Place: New Delhi
Date: May 22, 201 8

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Mar 31, 2016

1 During the year 37,85,550 Equity Shares of Rs.10/- each were issued and alloted as bonus share in the ration of 1: 1 @ Rs.10/- Per share fully paid*

2 During the year Fresh 27,30,000 Equity Shares of ''10/- each were issued and alloted @ Rs.50/- Per share fully paid (Face Value of Rs.10/- each at premium of ''40/- per share)**

3 Shares alloted as fully paid-up pursuant to contracts without payments being received in cash during the period of five years immediately preceding as on March 31, 2016)

4 Particulars of Securities convertible into Equity Share : NIL

5 The rights, powers and preference relating to each class of Share and the qualifications limitations and restrictions thereof are contained in the Memorandom and Articles of Association of the Company. The Principal rights are as follows :

The company has only on class of Equity Share having a nominal value of Rs.10/- each

-Voting right shall be in the same proportion as the capital paid up on such Equity Share bears to the total paid up capital of the Company.

- The dividend proposed by the Board of Directors is subject to the approval of the shareholders.

- In the event of liquidation, the shareholders of Equity Shares are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Working Capital loans are secured by :-

6 Working Capital facilities availed from State Bank of Patiala and Canra Bank are secured by first pari pasu charge on current assets of the company, Second pari pasu charge on movable fixed assets of the company, and first pari pasu mortgage charge on the properties situate A-10 Industrial Area Sikandrabad and A-16 Industrial Area Sikandrabad. These credit facilities are further secured by Personal guarantee of promoter-directors.

7 Working Capital loan availed from Syndicate Bank are secured by first charge on current assets of the Sanand Unit of company, Second charge on the properties situate Plot No .10 Gujarat Industrial area, Sanand, Gujarat . These credit facilities and Term Loan for Sanand Unit are further secured by exclusive charge on property situated at E-2/4 Land-2, Jaypee Greens, Noida.

8. CONTINGENT LIABILITIES & COMMITMENTS CONTINGENT LIABILITIES

a) Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements.

b) Contingent Liabilities against the Bank Guarantee and/or letter of credit of Rs.371.14 Lacs (Previous year Rs.163.76 Lacs) issued by the Bankers of the Company in favour of Company’s various customers/ vendors.

c) The Company challenged the validity of Entry Tax (on certain purchases) imposed by UP VAT Authorities during the financial year ended March 31, 2012 and petition is still pending with Hon''ble Supreme Court of India as company''s petition was rejected by the Hon''ble High Court of Allahabad.

However in compliance with the Hon''ble Supreme Court''s directions Company paid a sum of Rs.186.30 Lacs to the department and provided Bank Guarantee of Rs.118.14 Lacs (against the total liability accrued of Rs.304.45 Lacs on account of Entry Tax after rejection of Company''s petition by Hon''ble High Court of Allahabad). The Company is of the opinion that eventually no liability shall accrue to the company in this matter and as such not provided for this Entry Tax Liability on purchases.

COMMITMENTS

d) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.11.58 Lacs net of advances at March 31, 2016.

9. RETIREMENT BENEFITS Gratuity

The Company makes provision of such gratuity asset/liability in the books of accounts on the basis of actuarial valuation as per the projected unit credit method. The following tables summarize the components of net benefit expense recognized in the profit and loss account and the funded status and amounts recognized in the balance sheet for the plan:

10. Sundry Debtors, Creditors and other advances are subject to confirmation. The effect of the same, if any which are not likely to be material, will be adjusted at the time of confirmation.

11. In the opinion of the management, the realizable value of current assets, loans & advances, in the ordinary course of business, would not be less than the amount at which they are stated.

12. SEGMENT REPORTING

Based on guiding principle given in Accounting Slandered 17 ‘Segment reporting’ Issued by the Institute of Chartered Accountants of India.

i) Information about Primary Segment (Business Segment):

a Form the manufacturing business of Steel and Engineering Goods i.e. Steel Coils, Pipes & Tubes, MS flats, W Beams etc. the company earned a Earning before Interest, Depreciation, and Tax Rs.1,433.73 Lacs (Previous year i.e. Rs. 989.66 Lacs) on a Turnover of Rs.50,296.81 Lacs (Previous year Rs.45,761.38 Lacs). b. From the business of immovable properties the Company earned gross rental income of Rs.195.12 Lacs (Previous year i.e.183.30 Lacs) and after incurring direct expenses thereto the Net Profit before Interest, Depreciation and Tax is Rs.179.70 (Previous year Rs.164.09 Lacs)

ii) Secondary Segment (Geographical Segments)-Not Applicable as more than 99% revenues from domestic operations.

In respect of above parties, there is no provision for doubtful debt as on 31.03.2016 and no amount is written off or written back during the year in respect of debt/loan and advances due from/to them.

b) Credit facilities of the company is further collaterally secured by the personal guarantee of the Key management personnel as declared in Note no 4 and 7.1 & 7.2.

13. DEFFERED TAX

Movement of deferred tax provision/adjustment in accordance with Accounting Standard 22 for taxes on income issued by the Institute of Chartered Accountants of India

14. EARNINGS PER SHARE

Basic and Diluted Earnings per Share are computed in accordance with AS 20- Earning Per Share. Basic earnings per Equity Share are computed by dividing net profit after tax by the weighted average number of Equity Shares outstanding during the year. The Diluted Earnings per Share is computed using the weighted average number of Equity Shares and Diluted Potential Equity Shares outstanding during the year.

15. The company has so far not received information from suppliers regarding their status under the Micro, Small and Medium Enterprises (Development), Act 2006. Hence disclosure relating to amounts unpaid at the year-end under this Act has not been given therefore Trade Payables in Note No. 8 are due to Other Creditors.

16. Other additional information pursuant to Schedule III to the Companies Act 2013 are either nil or not applicable.

17. During the year company made provision for corporate social responsibility of Rs.17.30 Lacs out of which Rs.6.79 Lacs pertains to previous year and Rs.6.31 Lacs paid other than acquisition of any asset.

18. a) The previous year’s figures have been reclassifies/re-grouped and/ or rearranged wherever considered necessary.

b) Figures have been rounded off to two decimal of nearest to Rupees in Lacs.

Notes 1 to 42 are annexed to form an integral part of the Balance Sheet as at March 31, 2016 and Statement of Profit and Loss for the year ended on that date

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Mar 31, 2015

1. Particulars of Securities convertible into ordinary Share : NIL

2. The rights, powers and preference relating to each class of Share and the qualifications limitations and restrictions thereof are contained in the Memorandom and Articles of Association of the Company. The Principal rights are as follows:

The company has only on class of Equity Share having a nominal value of Rs. 10/- each

- Voting right shall be in the same proportion as the capital paid up on such Ordinary Share bears to the total paid up Ordinary Capital of the Company.

- The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

- In the event of liquidation, the shareholders of Ordinary Shares are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

3. Proposed Dividend to be distributed on 3785550 equity shares of Rs 10 each all ranking pari passu, @ Re.1/- per equity share ensuing after approvals of the Annunal General Meeting.

4. Secured loans from Bank and others are secured by of Hypothecation on Plant & Machinery and advances for purchase of immovable properties of the Company and guaranteed by the promoters directors of the Company.

5. Secured against Hypothecation of respective vehicles.

6. Principle Amount of installment due in next following year ''2015-16'' & ''2014-15'' for Financial Year 2014-15 and 2013-14 respectively on long term debts are separately disclosed under Other Current Liabilities as Current Maturities on Long Term Debts.

In compliance of AS-15 the company has provided for Employee Benefits (i.e. gratuity and leave encashment) as long term provisions in the current financials and accordingly Rs. 647,562/- are adjusted in current year profits, and accumulated amount of gratuity and leave encashment upto March31, 2014 has been directly provided from the accumulated Profits.

Notes:

7 Nature of Security: Banks working facilities are secured by first pari pasu charge on current assets of the company, Second pari pasu charge on movable fixed assets of the company, and first pari pasu mortgage charge on the properties situate A-10 Industrial Area Sikandrabad and A-16 Industrial Area Sikandrabad. These credit facilities are further secured by Personal guarantee of promoter-directors.

Note No.11.1 Pursuant to the enactment of Companies Act 2013, the Company has applied the estimated useful lifes as specified in Schedule II, accordingly the unamortized carrying value is being depreciated/ amortized over the revised/ remaining useful Life’s.

Note No.11.2 Depreciation during the year includes Rs12,19,634/-, the written down value of Fixed Assets whose lives have expired on or before 31 April 2014 as per Schedule-II of the Companies Act 2013, the effect of which has been adjusted against balance of retained earnings.

8. Contingent Liabilities

a) Contingent liabilities are disclosed in the Notes. Contingent assets are not recognized in the financial statements.

b) Contingent Liabilities in respect of counter guarantee given to the Bankers against the Bank Guarantee and letter of credit of Rs 16,376,651/- (Previous year Rs. 18,083,606/- Cr) given by them on behalf of the company.

c) The Company challenged the validity of Entry Tax (on certain purchases) imposed by UP VAT Authorities during the financial year ended March 31, 2012 and petition is still pending with Hon''ble Supreme Court of India as company''s petition was rejected by the Hon''ble High Court of Allahabad.

However in compliance with the Hon''ble Supreme Court''s directions Company paid a sum of Rs. 18,630,859/- to the department and provided Bank Guarantee of Rs. 11,814,320/- (against the total liability accrued of Rs. 30,445,179/- on account of Entry Tax after rejection of Company''s petition by Hon''ble High Court of Allahabad). The Company is of the opinion that eventually no liability shall accrue to the company in this matter and as such not provided for this Entry Tax Liability on purchases.

9. Retirement Benefits

In compliance of AS-15 the company has provided for Employee Benefits (i.e. gratuity and leave encashment) as long term provisions in the current financials, and accordingly Rs. 647,562/- are adjusted in current year profits, and accumulated amount of gratuity and leave encashment up to March 31, 2014 has been directly provided from the accumulated Profits.

10. Sundry Debtors, Creditors and other advances are subject to confirmation. The effect of the same, if any which are not likely to be material, will be adjusted at the time of confirmation.

11. In the opinion of the management, the realizable value of current assets, loans & advances, in the ordinary course of business, would not be less than the amount at which they are stated.

12. Segment Reporting

Based on guiding principle given in Accounting standard 17 ''Segment reporting'' Issued by the Institute of Chartered Accountants of India.

i. Information about Primary Segment (Business Segment):

a. Form the manufacturing business of Steel and Engineering Goods i.e. Steel Coils, Pipes & Tubes, MS flats, W Beams etc. the company earned a Earning before depreciation, interest and tax Rs. 262,203,377/-(Previous year 195,345,726/-) on a Turnover of Rs. 4,576,138,729/- (Previous year Rs 3,840,540,835/-)

b. From the business of immovable properties the Company earned gross rental income of Rs 18,333,000/-) (Previous Year, including turnover of Property 13,875,000/-) and after incurring direct expenses thereto the Net Profit before Tax and Depreciation is Rs. 16,409,469/- (Previous year Rs 12,041,569/-)

ii. Secondary Segment (Geographical Segments)-Not Applicable as more than 99% revenues from domestic operations.

13. Related Parties Transactions:

In accordance with the Accounting Standard 18, the disclosure required is given below:

a) List of related parties and relationship (as identifies by the management)

i) Parties where control exists: Nil

ii) Key Management Personnel:

1. Sh. Ajay Kumar Bansal Managing Director

2. Sh. Anish Bansal Whole Time Director

iii) Relatives of Key Management Personnel:

1. Sh. Vipul Bansal Relative of Managing Director

2. Sh. Rakesh Bansal Relative of Managing Director

iv) Associate enterprise over which key management personnel and their relative exercise significant influence, whom

transaction have been taken place during the year:

1. JNG Construction Pvt. Ltd

2. Hi-Tech Agrovision Pvt. Ltd.

In respect of above parties, there is no provision for doubtful debt as on 31.03.2015 and no amount is written off or written back during the year in respect of debt/loan and advances due from/to them.

b) Credit facilities of the company is further collaterally secured by the personal guarantee of the Key management personnel as declared in Note no 4.1 and 7.1.

14. Deferred Tax

Movement of deferred tax provision/adjustment in accordance with Accounting Standard 22 for taxes on income issued by the Institute of Chartered Accountants of India

15. Earnings Per Share

Basic and Diluted Earnings per Share are computed in accordance with AS 20- Earning Per Share. Basic earnings per Equity Share are computed by dividing net profit after tax by the weighted average number of Equity Shares outstanding during the year. The Diluted Earnings per Share is computed using the weighted average number of Equity Shares and Diluted Potential Equity Shares outstanding during the year.

16. The company has so far not received information from suppliers regarding their status under the Micro, Small and Medium Enterprises (Development), Act 2006. Hence disclosure relating to amounts unpaid at the year-end under this Act has not been given therefore Trade Payables in Note No 7 are due to Other Creditors.

17. Excise duty shown in the Statement of Profit & Loss represents the net of excise duty received on total sales and borne by the Company on interdivision transfer.

18. The additional information pursuant to Schedule II to the Companies Act 2013 are either nil or not applicable.

19. a) the previous year''s figures have been reclassifies/re-grouped and/ or rearranged wherever considered necessary.

b) Figures have been rounded off to the nearest Rupee.

Notes 1 to 41 are annexed to an form an integral part of the Balance Sheet as at March 31, 2015 and Statement of Profit and Loss for the year ended on that date In terms of our report of even date annexed hereto.