Notes to Accounts of Algoquant Fintech Ltd.

Mar 31, 2023

Cash at banks earns interest at floating rates based on daily bank deposit rates. Short-term deposits are made for varying periods of between one day and three months, depending on the immediate cash requirements of the group, and earn interest at the respective short-term deposit rates.

(i) Refer note 30 - Financial risk management for information about credit risk and market risk of other financial assets.

(ii) The carrying amounts of financial assets are considered to be a reasonable approximation of their fair values.

The Company has given unsecured loan to its Holding entity (refer note 28) at an interest rate of 10% and the loan is repayable in full by the borrower with in 15 days from the end of last day of 11 calendar months from disbursement. There borrower can pre-pay principal and/or interest without any charges or penalties. . The borrower has utilised the loans for its principal business activities only.

(i) Refer note 30 - Financial risk management for information about credit risk and market risk of other financial assets.

(ii) The carrying amounts of financial assets are considered to be a reasonable approximation of their fair values.

(ii) Terms/Rights attached to equity shares

The Company has one class of equity shares having a par value of Rs.2 each [previous year Rs.2]. Each holder of equity shares is entitled to one vote per share. The dividend, if any, proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of Interim dividend.

In the event of liquidation of the Company, the equity shareholders are eligible to receive 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.

The shareholders have all other rights as available to equity shareholders as per provisions of the Companies Act, 2013 read together with the Memorandum and Articles of Association of the Company, as applicable.

The Company has SEBI MTF facilities from two stock-brokers. The rate of interest ranges between 10.00% - 12.00%. The facilities are secured by the pledge of underlying investments acquired under such facilities. The borrowing facility is for a short-term and are repayable on demand. Margin requirement are as per SEBI norms.

(b) Revolving loan facility

Nature of facility:- Revolving loan facility- Loan amount of Rs. 2,500 lakh

Rate of Interest:- Interest @ 12%-16% per annum, charged on calendar monthly basis on daily outstanding basis & payable within next calendar month. .

Security:-

1. Equitable Mortgage of Office Space in the name of Nirmal Buildwell Real Estate LLP, a related party.

2. Equitable Mortgage of Property owned by Dhruv Devansh Investment & Finance LLP, a related party

(c) From related parties

- the loan (and interest thereon) is unsecured and repayable with in 15 days from the end of last day of 11 calendar months from disbursement. The loan carries an interest of 10% per annum. The Company can pre-pay principal and/or interest without any charges or penalties.

26 Discontinued operations i) Discontinued operations

The Company had closed the only manufacturing facility in the year 2017. Results of the manufacturing operations that were discontinued are disclosed as discontinued operations. Further, during the quarter ended 31-Dec-2018, the Company had substantially completed the settlement of liabilities and realisation of assets, pertaining to its discontinued operations. The adjustments in the current period pertain to changes in the settlement of those liabilities.

(iii) Contingent liabilities:

(a) Provision for gratuity (defined benefit obligation)

The labour union had submitted a demand notice to the Management of the Company for revision of wages and other amenities. This notice was under negotiation when without any prior notice, the workers staged a walk out on 22-May-2020 bringing the production and all aligned activities to a complete standstill. All efforts by the management as well as the labour department to find a resolution to the strike were unsuccessful.

The Hon''ble Governor of Haryana issued orders declaring the strike to be illegal and directed the workers to join duty with in 3 days of the order and refer the dispute to the labour court panipat.

This too had no affect on the labour union and the workers resorted to unrest and production shut down on 3 separate occasions causing heavy losses to the Company. The strike continued, forcing the management to issue notice of forfeiture of Gratuity and all other dues include lien on service of all workers on payrolls.

The notice regarding the forfeiture of gratuity and other dues was challenged by some of the workers through Labour office, Sonipat where the matter was dismissed in favour of the Company. Thereafter, the workers appealed before the Dy. Labour Commissioner, Rohtak where DLC ruled the matter in favour of the workers i.e. against the Company. The learned DLC chose to pass this order without giving due consideration to the actual facts of the case and therefore, the Management then had no option but to approach the High Court, Chandigarh vide writ petition no. 18716/2018 and the case was decided against the Company on 06-Mar-2020. Management has filed a revision petition on a larger bench on 05-July-2020 and the petition has been admitted for hearing on merit 22-Mar-2022.

Pursuant to the judgement of the double bench of the Hon''ble High Court of Punjab and Haryana at Chandigarh relating to the gratuity claims of certain employees, the Company has received additional claims during the year ended 31-March-2023 and subsequently. Consequently, the Company has re-assessed the potential claims and recorded appropriate accruals in the financial statements for the year ended 31-March-2023 on a prudent basis.

The Company is carrying a total provision of Rs.307.21 lakh (previous year Rs. 147.52 lakh ) in the books of account. Based on the opinion of legal counsels, the management believes that the provision recorded is sufficient to cover for the eligible claims. .

* During the financial year 2020-21 the Company has received rectification order dated 16-July-2020 reducing the VAT/CST for the Assessment year 2014-15 from Rs. 41.83 lakh to Rs. 10.13 lakh and for the assessment year 2015-16 from Rs. 21.49 lakh to Rs. 14.05 lakh. Consequent to the aforesaid reduction, the amounts had been reversed through statement of profit and loss.As at the year ended 31-March-2022 the Management was contesting the residual demand before the respective authorities. However, the Company had recorded a provision for the demand outstanding. These demands were settled during the year. Therefore, the entire provision has been reversed during the current financial year through statement of profit & loss.

27 Detail of dues to micro and small enterprises defined under the MSMED Act 2006

Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue Principal amounts/interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly, there is no interest paid or outstanding interest in this regard in respect of payments made during the year or brought forward from previous years.

29 Financial Instruments (A) Fair value hierarchy

Some of the Company''s assets and liabilities are measured at fair value for financial reporting purpose. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date regardless of whether that price is directly observable or estimated using another valuation technique. Financial assets and financial liabilities measured at fair value in the financial statements are grouped into three levels of a fair value hierarchy under Ind AS categorized into Level 1, 2, or 3 based on the degree to which the inputs to the fair value measurement are observable and the significance of the inputs to the fair value measurement in its entirety, which are described as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company can access at measurement date

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data rely as little as possible on entity specific estimates; and

Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs) that the Company can access at measurement date.

During the year, there were no transfers between level 1 and level 2, and no transfers into and out of level 3 fair value measurements.

Fair value of financial assets and financial liabilities that are not measured at fair value (but fair value disclosures are required)

Other financial assets and liabilities. The Management consider the carrying values of Other Cash and cash equivalents, Bank balances other than cash and cash equivalents, trade payables and other financial liabilities (except derivative financial instruments) approximate their carrying amounts largely due to the short-term maturities of these instruments..

(B) Risk Management

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its investing and financing activities. Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.

Financial risk management

Financial Risk Evaluation and Management is an ongoing process within the Company. The Company has a system based risk management framework to identify, monitor, mitigate and minimise risks arising from financial instruments. The Company is exposed to market, credit and liquidity risks. The Board of Directors (''Board'') oversee the management of these risks through its Risk Management Policy. The Company''s Risk Management Policy has been formulated and approved by the Board. The Policy articulates on the Company''s approach to address uncertainties in its endeavour to achieve its stated and implicit objectives. It also prescribes the roles and responsibilities of the Company''s management, the structure for managing risks and the framework for risk management. The framework seeks to identify, assess and mitigate risks in order to minimise potential adverse effects on the Company''s financial performance. All derivative activities for risk management purposes are carried out by specialist teams that have the appropriate skills, experience and supervision. The Board of Directors reviews and agrees on policies for managing each of these risks, which are summarised below. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(I) Credit risk

The Company''s activities expose it to market risk, liquidity risk and credit risk. The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk and the related impact in the financial statements. The Company''s risk management is carried out as per the policies approved by the board of director.

(a) Credit risk management

(i) Credit risk rating

The Company assesses and manages credit risk of financial assets based on following categories arrived on the basis of assumptions, inputs and factors specific to the class of financial assets.

A: Low credit risk B: Moderate credit risk C: High credit risk

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy, advance not recoverable or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in statement of profit and loss.

(b) Liquidity Risk

(i) Continued operations

The Company''s current assets aggregate to Rs.5,954.93 lakh (previous year- Rs.1,048.99 lakh) including current investments, cash and cash equivalents and other bank balances of Rs.30.52 lakh (previous year-Rs.29.87 lakh) against an aggregate current liabilities of Rs.3,424.75 lakh (previous year- Rs. 6.48 lakh); Non-current deferred tax liabilities amounting to Rs.Nil (previous year- Rs. 131.41 lakh).

(ii) Discontinued operations

The Company''s current assets aggregate to Rs. 95.11 lakh (Previous year- Rs.9.65 lakh) against an aggregate current liability of Rs.322.21 lakh (Previous year- Rs. 186.70 lakh);

Further, while the Company''s total equity stands at Rs. 3,428.71 lakh (Previous year- Rs. 3,354.17 lakh). In such circumstances, liquidity risk or the risk that the Company may not be able to settle or meet its obligations as they become due, is low.

Prudent liquidity risk management implies maintaining sufficient cash and marketable securities to meet obligations when due.

Management monitors rolling forecasts of the Company''s liquidity position and cash and cash equivalents on the basis of expected cash flows. The Company takes into account the liquidity of the market in which the entity operates. In addition, the Company''s liquidity management policy involves projecting cash flows and considering the level of liquid assets necessary to meet these, monitoring balance sheet liquidity ratios against internal and external regulatory requirements and evaluation of debt financing plans, if any required..

(c) Market risk

Market risk has been further classified into Foreign currency risk, Interest rate risk and price risk (i) Foreign currency risk

The Company does not have a significant foreign currency risk as it does not have any exposure in foreign currency as at the year end. The Company has no-hedge policy for its foreign currency items as these are insignificant. Therefore, the sensitivity to foreign currency fluctuation is not relevant

(ii) Price risk

The Company holds investments and measures them at fair value through Profit and Loss/other comprehensive income. The fair value of investments of such equity instruments (FVTPL) as at 31-March-2023 is Rs. 1,266.88 lakh (previous year - Rs.270.55 lakh) and FVOCI is Rs. 549.40 lakh (previous year - Rs. 3,067.20 lakh). Accordingly, fair value fluctuations arising from market volatility is recognised in statement of Profit and Loss/other comprehensive income.

(iii) Interest rate risk

The unsecured loans taken during the year were all fixed interest rate borrowings. Further, treasury activities, focused on managing investments in equity/debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within acceptable risk parameters after due evaluation..

31 Capital management policies and procedures

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value. As at 31-March-2023, the Company has only one class of equity shares. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for the re-investment into business based on its long-term financial plans.

(iii) The Company has not traded or invested in Crypto currency or Virtual Currency.

(iv) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (intermediaries) with the understanding that the intermediary shall:

a) 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

b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries;

(v) The Company has not 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:

a) 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;

b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(vi) The Company does not have any such transactions which are not recorded in the books of account that have 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.

(vii) The Company has borrowings from bank or financial institution. However, there is no charge on any assets of the Company that is required to be registered with RoC. Accordingly, no disclosure is required with reference to wilful defaulter and registration/satisfaction of charges with registrar of companies.

(viii) The Company does not have any investment in any downstream subsidiary, joint venture, associate. Therefore, compliance with number of layers of subsidiary is not applicable on the Company.

(ix) The Company did not enter into any scheme of arrangements in terms of sections 230 to 237 of the Companies Act, 2013 except as explained at note 37.

37 The Board of Directors of the Company in their meeting held on 10 March 2023, approved a draft Composite Scheme of Arrangement ("The Scheme") between the Company i.e. Algoquant Fintech Limited (resulting company), Growth Securities Private Limited (demerged company) and Algoquant Investments Private Limited (Formerly Mandelia Investments Private Limited), whereby the stock broking business of Growth Securities shall be demerged into the resulting company on a going concern basis and also Algoquant Investments Private Limited shall merge in to the resulting company. The Company is in the process of undertaking necessary regulatory steps as enunciated under various applicable laws and regulations including filing the Scheme with the National Company Law Tribunal for approval. The Scheme is subject to requisite approvals and therefore, no adjustments have been made to the financial statement of the Company as of and for the year ended 31-March-2023 with respect to the Scheme.

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Mar 31, 2021

G) Revenue Recognition Trading in financial instruments

Revenue from trading consists primarily of net trading income (presented net of costs) earned by the Company when trading as principal. Net Trading income from trading represents trading gain net of trading losses. The profit or loss arising from all transactions entered into on account and risk of the Company is recorded on completion of trade date.

Market Value for exchange traded derivatives, principally, futures and options, are based on quoted market prices. The gains or losses on derivatives used for trading purposes are included in revenue from trading. Purchase & Sales of derivatives financial instruments are recorded on trade date. The transactions are recorded on a net basis.

As per Ind AS 109 Financial Instruments, in respect of options contracts open as on the reporting date, the net premium paid or received is carried forward to the balance sheet as financial assets or financial liabilities. The unrealized gain or loss measured on fair valuation is shown as financial assets or financial liabilities.

Revenue from trading in financial instruments is presented net of expenses directly attributable to trading in financial instruments, like Exchange transaction charges, SEBI turnover fees and Stamp duty.

Consulting and advisory Income

Advisory income or service income is accounted for on an accrual basis in accordance with the terms of the respective agreements entered into between the Company and the counter party.

Interest

Revenue is recognized on accrual basis using effective interest rate method.

Dividends

Dividend on equity shares, preference shares and on mutual fund units is recognized as income when the right to receive the dividend is established as at the reporting date.

H) Income tax

Income tax comprises current and deferred tax incurred by the Company. It is recognised in statement of profit or loss except to the extent that it relates to items recognised directly in equity or OCI, in which case the tax effect is recognised in equity or OCI.

i. Current tax

Current tax comprises the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted by the reporting period and any adjustment to the tax payable or receivable in respect of previous years. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes.

Current tax assets and current tax liabilities are off set when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle the asset and the liability on a net basis. The amount of current tax reflects the best estimate of the tax amount expected to be paid or received after considering the uncertainty, if any, related to income taxes. I

ii. Deferred tax

Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the corresponding amounts used for taxation purposes. Deferred tax is also recognised in respect of carried forward tax losses and tax credits. Deferred tax is recognised for:

- deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which they can be used. The existence of unused tax losses is strong evidence that future taxable profit may not be available. Therefore, in case of a history of recent losses, the Company recognises a deferred tax asset only to the extent that it has sufficient taxable temporary differences or there is convincing other evidence that sufficient taxable profit will be available against which such deferred tax asset can be realised. Deferred tax assets - unrecognised or recognised, are reviewed at each reporting date and are recognised/ reduced to the extent that it is probable/ no longer probable respectively that the related tax benefit will be realised.

Deferred tax is measured at the tax rates that are expected to apply to the period when the asset is realised or the liability is settled, based on the laws that have been enacted or substantively enacted by the reporting date.

Minimum Alternative Tax (‘MAT’) credit is recognized as an asset only when and to the extent there is convincing evidence that the Company will pay normal income tax during the specified

period. Such asset is reviewed at each Balance Sheet date and the carrying amount of the MAT credit asset is written down to the extent there is no longer a convincing evidence to the effect that the Company will pay normal income tax during the specified period.

Current and deferred tax is recognised in the statement of profit and loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity and in this case, the tax is also recognised in other comprehensive income or directly in equity, respectively.

The measurement of deferred tax reflects the tax consequences that would follow from the manner in which the Company expects, at the reporting date, to recover or settle the carrying amount of its assets and liabilities.

Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis, or their tax assets and liabilities will be realised simultaneously.

I) Cash and cash equivalents

Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-term, highly liquid investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities in the balance sheet.

J) Earnings per share

The basic earning/loss per share is computed by dividing the net profit/(loss) before other comprehensive income attributable to owners of the Company for the year by theweighted average number of equity shares outstanding during reporting period.

The number of shares used in computing diluted earnings/(loss) per share comprises the weighted average shares considered forderiving basic earnings/(loss) per share and also the weighted average number of equity shares which could have been issued onthe conversion of all dilutive potential equity shares.

K) Provisions and contingent liabilities

Provisions are recognized only when there is a present obligation (legal or constructive), as a result of past events and when a reliable estimate of the amount of obligation can be made at the reporting date. Provisions are determined based on management estimates required to settle the obligation at the balance sheet date, supplemented by experience of similar transactions. These estimates are reviewed at each reporting date and adjusted to reflect the current best estimates. Provisions are discounted to their present values, where the time value of money is material.

Contingent liability is disclosed for:

• Possible obligations which will be confirmed only by future events not wholly within the control of the Company or

• Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount of the obligation cannot be made.

Contingent assets are neither recognized nor disclosed except when realisation of income is virtually certain, related asset is disclosed.

L) ImpairmentImpairment of non-financial assets

At each reporting date, the Company assesses whether there is any indication based on internal/external factors, that an asset may be impaired. If any such indication exists, the recoverable amount of the asset or the cash generating unit is estimated. If such recoverable amount of the asset or cash generating unit to which the asset belongs is less than its carrying amount. The carrying amount is reduced to its recoverable amount and the reduction is treated as an impairment loss and is recognized in the statement of profit and loss. If, at the reporting date, there is an indication that a previously assessed impairment loss no longer exists, the recoverable amount is re-assessed and the asset is reflected at the recoverable amount. Impairment losses previously recognized are accordingly reversed in the statement of profit and loss.

Impairment of financial assets

In accordance with Ind AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition of impairment loss for financial assets. ECL is the weighted-average of difference between all contractual cash flows that are due to the Company in accordance with the contract and all the cash flows that the Company expects to receive, discounted at the original effective interest rate, with the respective risks of default occurring as the weights. When estimating the cash flows, the Company is required to consider:

All contractual terms of the financial assets (including prepayment and extension) over the expected life of the assets, Cash flows from the sale of collateral held or other credit enhancements that are integral to the contractual terms.

Trade receivables

In respect of trade receivables, the Company applies the simplified approach of Ind AS 109, which requires measurement of loss allowance at an amount equal to lifetime expected credit losses. Lifetime expected credit losses are the expected credit losses that result from all possible default events over the expected life of a financial instrument.

Other financial assets

In respect of its other financial assets, the Company assesses if the credit risk on those financial assets has increased significantly since initial recognition. If the credit risk has not increased significantly since initial recognition, the Company measures the loss allowance at an amount equal to 12-month expected credit losses, else at an amount equal to the lifetime expected credit losses.

M) Operating Segment

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker (‘CODM’) of the Company. The CODM is responsible for allocating resources and assessing performance of the operating segment of the company.

In accordance with IND AS- 108, the Company had only one segment i.e., business of hand tools. However, due to unfavourable business environment and to safeguard against losses the management did not engage into trading in metals during financial years ended 31-March-20 and 31-Mar-21. Further, w.e.f. 01 -April-21, the Company has discontinued the business of trading in metals.

The new management has engaged in the business of trading in financial instruments w.e.f 10-Feb-21. Accordingly, revenue for the year ended 31-March-2021 represents revenue from trading in financial instruments.

N) Dividends

Being appropriately authorized and no longer at the discretion of the entity, provision is made for the amount of any dividend declared, on or before the end of the reporting period but not distributed at the end of the reporting period.

Final Dividend is recorded as liability on the date of approval by shareholders in their General Meeting. Interim Dividend is declared as liability on the date of declaration by Board of Directors.

O) Events after Reporting Date

Where events occurring after the Balance Sheet date provide evidence of conditions that existed at the end of the reporting period, the impact of such events is adjusted within the financial statements. Otherwise, events after the Balance Sheet date of material size or nature are only disclosed.

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Mar 31, 2015

1. SHARE CAPITAL

(a) Right attached to Equity Shares:

The Company has one class of equity shares having at par value of Rs. 10/- per share. Each share holder is eligible for one vote per share held. The dividend proposed by the Board of Director is subject to the approval of the share holders in the ensuing Annual General Meeting, except in case of interim dividend. 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 share holding.

2. Nature of security

Packing/Cash Credit Limits from Bank secured by hypothecation of Raw Material, Stores, Tools & Dies (not forming part of Plant & Machinery) Finished Goods, Work-in progress,Bill of lading and /or Goods in course of clearance or in transit & First charge on Movable/Immovable Assets of the Company other than those having exclusive charge. These loans further secured by personal guarantees of Chairman & Managing Director of the Company.

3. COMMITMENTS AND CONTINGENT LIABILITIES

As at As at 31.03.2015 31.03.2014 (Rs) (Rs.)

a) Commitments:

Estimated amount of contract remaining to be executed and not provided for (Advance paid Rs.Nil Previous year Rs.Nil)

b) Contingent Liabilities Nil Nil

Bonds & Bank Guarantees outstanding (Margine Money paid Rs. 183000/- (Previous year Rs. 1,83,000/-) 80,000 80,000

80,000 80,000

4. Trade Receivable and Trade Payable given are subject to reconciliation and confirmation. Adjustment in carrying amount, if any, shall be made on completion of reconciliation and confirmation thereof. In the opinion of the management, there shall not be any material impact on carrying amount of these accounts.

5. The company is engaged in the Hand tool business, which in the context of Accounting Standard-17 is considered the only primary business segment. However, Secondary segment reporting is performed on the basis of the location of the customer.

* Including export incentive Rs. 20783955/- (Previous year Rs. 20686494/-)

All the business assets of the company are situated in India except export debtors Rs17271128/-(Previous year Rs.5540660/-)

6. DISCLOSURE PURSUANT TO ACCOUNTING STANDARD -15 ON EMPLOYEES BENEFITS

1) Define Contribution Plan

The Company has recognised the following amounts in the profit & loss Statement for the year Contribution to Employees Provident Fund Rs.2235771/- (Previous year Rs.1536761/-)

7. RELATED PARTY DISCLOSURES

a) Association of persons having significant influence on Key management personnel

S.K.Mandelia (HUF)

B.G.Mandelia (HUF)

b) Key Management Personnel

Shri S.K.Mandelia (Chairman & Managing Director)

Shri B.G.Mandelia (Vice Chairman & Jt. Managing Director)

Shri V.K.Khanna ( Executive Director Finance)

c) Relative of the Key Management.

Mrs. Neeta Khanna-wife of Shri V.K.Khanna Executive Director (Finance)

Shri Anant Vijay Mandelia Marketing Executive son of Shri B.G.Mandelia.

8. Previous Year figures has been reclassified/regrouped to confirm current year figures.

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Mar 31, 2014

(A) Right attached to Equity Shares: The company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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.

1.1 (a) Secured against Land, Building and Plant & Machinery and other immovable & movable fixed assets of the Company. These Loans further secured by personal gurantees of Chairman & Managing Director of the company.

(b) (i) Term Loan from a bank carrying interest rate (BPLR(10.20%) 5.25%) and payable in quarterly installment of Rs. 3,00,000/-.

(c) Vehicle loan from a bank secured by hypothecation of vehicles financed and carries interest rate of 10.50% to 12.50% per annum. Payable in 6-36 equal monthly installment beginning with April, 2013.

Nature of security

Packing/Cash Credit Limits from Bank secured by hypothecation of Raw Material Stores, Tools & Dies (not forming part of Plant & Machinery) Finished Goods, Work-in-progress, Bill of lading and /or Goods-in-course of clearance or in transit & First Charge on Movable/Immovable Assets of the Company other than those having exclusive charge.These Loans further secured by personal guarantees of Chairman & Managing Director of the company.

2.1 The company has not received any intimation from any of its suppliers regarding their status under the Micro Small Medium Enterprises Act and hence disclosures, relating to amounts unpaid as at the year end along with interest if any payable as required under the said Act have not been given.

2.2 Trade Payables are subject to reconciliation & confirmations.

As at As at 31st March, 2014 31st March, 2013 (Rs.) (Rs.)

b) Contingent Liabilities

Bonds & Bank Guarantees outstanding (Margin Money paid Rs. 1,83,000/- 80,000 80,000

Previous year Rs. 1,83,000/-) 80,000 80,000

2.3 The company is engaged in the Hand tool business, which in the context of Accounting Standard-17 is considered the only primary business segment. However, Secondary segment reporting is performed on the basis of the location of the customer.

2.4 DISCLOSURE PURSUANT TO ACCOUNTING STANARD -15 ON EMPLOYEES BENEFITS

I) Define Contribution Plan.

The Company has recognised the following amounts in the profit & loss Statement for the year Contribution to Employees Provident Fund Rs.3429146/- (Previous year Rs. 4447494/-)

II) Define Benefit Obligation (DBO)

The following table set out the status of unfunded gratuity plan as required under AS-15 (Revised -2005)

a) A reconciliation of opening and closing balances of the present value of the defined benefit obligation (DOB)

2.5 RELATED PARTY DISCLOSURES

a) Association of persons having significant influence on Key management personnel S.K.Mandelia (HUF)

B.G.Mandelia (HUF)

b) Key Management Personnel

Shri S.K.Mandelia (Chairman & Managing Director)

Shri B.G.Mandelia (Vice Chairman & Jt. Managing Director)

Shri V.K.Khanna ( Executive Director Finance)

c) Relative of the Key Management.

Mrs. Neeta Khanna-wife of Shri V.K.Khanna Excutive Director (Finance) Shri Anant Vijay Mandelia Marketing Executive son of Shri B.G.Mandelia.

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Mar 31, 2013

1.1 Deferred tax assets on unabsorbed depreciation has been recognised to the extent deferred tax liability on timing difference of depriciation provided , the reversal of which will result in sufficient income.

2.1 (a) Trade Receivables become due on the date of Invoice.

(b) Export Debts are not covered by any hedge instrument or otherwise Rs. 5540660/-(previous year Rs.11079567/-)

(c) Trade Receivables are subject to reconciliation & confirmation.

3.1 Advance to suppliers are subject to reconciliation and confirmation.

NOTE-4: COMMITMENTS AND CONTINGENT LIABILITIES

a) Commitments:

Estimated amount of contract remaining to be executed and not provided for

(Advance paid Rs. NIL Previous year Rs.Nil) Nil Nil

b) Contingent Liabilities

Bonds & Bank Guarantees outstanding (Margine Money paid Rs. 1,83,000/- 80,000 80,000

Previous year Rs. 1,83,000/-) 80,000 80,000

5.1 Cost of own manufactured Dies & Tools during the year as certified and valued by the Management Rs. 992337/- (Previous year Rs. 1365059/-)

NOTE- 6 :

Expenses/adjustment relating to previous years not separately shown and same have been debited/credited to respective heads of accounts Rs. 195606/- Net Debit (Previous year Rs.135240/- (Net Credit))

7.1 The company is engaged in the Hand tool business, which in the context of Accounting Standard-17 is considered the only primary business segment. However, Secondary segment reporting is performed on the basis of the location of the customer.

7.2 DISCLOSURE PURSUANT TO ACCOUNTING STANARD -15 ON EMPLOYEES BENEFITS

I) Define Contribution Plan.

The Company has recognised the following amounts in the profit & loss Statement for the year Contribution to Employees Provident Fund Rs.4447494/- (Previous year Rs. 4665102/-)

II) Define Benefit Obligation (DBO)

The following table set out the status of unfunded gratuity plan as required under AS-15 (Revised -2005)

a) A reconciliation of opening and closing balances of the present value of the defined benefit obligation (DOB)

7.3 RELATED PARTY DISCLOSURES

a) Association of persons having significant influence on Key management personnel S.K.Mandelia (HUF)

B.G.Mandelia (HUF)

b) Key Management Personnel

Shri S.K.Mandelia (Chairman & Managing Director)

Shri B.G.Mandelia (Vice Chairman & Jt. Managing Director)

Shri V.K.Khanna ( Executive Director Finance)

c) Relative of the Key Management.

Mrs. Neeta Khanna-wife of Shri V.K.Khanna Excutive Director (Finance) Shri Anant Vijay Mandelia Marketing Executive son of Shri B.G.Mandelia.

7.4 Previous year figures has been reclassified/ regrouped to confirm current year figures.

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Mar 31, 2012

1.1 The company has not received any Intimation from any of its suppliers regarding their status under the Micro Small Medium Enterprises Act and hence disclosures, relating to amounts unpaid as at the year end alonng with interest if any payable as required under the said Act have not been given.

1.2 Trade Payables are subject to reconcilition & confirmations.

2.1 Cost of own manufactured Dies & Tools during the year as certified and valued by the Management Rs. 992337/- (Previous year Rs. 1365059/-)

NOTE- 3 :

Expenses/adjustment relating to previous years not seperately shown and same have been debited/credited to respective heads of accounts Rs. 135240/- Net Debit (Previous year Rs. 147280/- (Net Credit).

3.2 The company is engagged in the Hand tool business, which in the context of Accounting Standard-17 is considered the only primary business segment. However, Secondary segment reporting is performed on the basis of the location of the customer.

3.3 DISCLOSURE PURSUANT TO ACCOUNTING STANARD -15 ON EMPLOYEES BENEFITS

1) Define Contribution Plan.

The Company has recognised the following amounts in the profit & loss Statement for the year Contribution to Employees Provident Fund Rs.46,65,102/- (Previous year Rs. 46,60,633/-)

2) Define Benefit Obligation (DBO)

The following table set out the status of unfunded gratuity plan as required under AS-15 (Revised -2005)

a) A reconciliation of opening and closing balances of the present value of the defined benefit obligation (DOB)

4.1 RELATED PARTY DISCLOSURES

a) Association of persons having significant influence on Key management personnel S.K.Mandelia (HUF)

B.G.Mandelia (HUF)

b) Key Management Personnel

Shri S.K.Mandelia (Chairman & Managing Director)

Shri B.G.Mandelia (Vice Chairman & Jt. Managing Director)

Shri V.K.Khanna ( Executive Director Finance)

c) Relative of the Key Management.

Mrs. Neeta Khanna-wife of Shri V.K.Khanna Excutive Director (Finance) Shri Anant Vijay Mandelia Marketing Executive son of Shri B.G.Mandelia.

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Mar 31, 2010

1. Contingent liabilities not provided for in respect of:

As at As at

31st March, 2010 31st March, 2009

(Rs.) (Rs.)

a) Bills discounted through bank and

Outstanding (as per Bank certificate 53,97,591 23,69,676

b) Bonds & Bank gurantees outstanding (Margine Money paid Rs.1,83,000/-

previous year Rs1,83,000/-) 1,00,000 1,67,000

2. Estimate amount of Capital Contract remaining to be executed and not provided for (Advance paid Rs. Nil Previous year Rs. Nil) Nil Nil



3 Expenses/adjustments relating to previous years not separately shown have been debited/credited to respective heads of accounts Rs. 1,59,591/-Net Credit (Previous year Rs.1,79,247/-) (Net Debit)

4. In the opinion of the Management the current assets and loans & advances are approximately at the value realisable in ordinary course of business.

5. Sundry debtors/creditors & loans and advances are subject to reconciliation and confirmation.

6. Cost of own manufactured Dies & Tools during the year as certified and valued by the Management Rs.9,26,917/- (previous year Rs.10,89,397/-).

7. a) No Provision for Income Tax has been made in the accounts as the Company have no taxable income as per the provision of Income tax Act, 1961

b) The Company has recognised deferred tax assets Rs. 50,85,268/- as on Balance Sheet date, which includes deferred tax assets on carry forward unabsorbed depreciation .Deferred Tax Assets on unabsorbed depreciation has been recognised only to the extent deferred tax libility provided due to the timing difference on depreciation.The reversal of which will result in sufficient income.

8. The Company is engaged in the Hand Tools Business, which in the context of Accounting Standard 17 is considered the only primary business segment. However, secondary segment reporting is performed on the basis of the location of the customer. All the business assets of the company are situated in India except Export debtors Rs.81,95,873(previous year Rs. 13,45,895/-)..

9. Related party Disclosures as required under Accounting Standard-18 issued by ICAI. to the extent identified by the Company

a) Association of persons having significant influence on Key Management personnel. S.K.Mandelia (HUF)

B.G.Mandelia (HUF)

b) Key Management Personnel

Shri S.K.Mandelia (Chairman & Managing Director)

Shri B.G.Mandelia ( Vice Chairman & Jt.Managing Director)

Shri V.K.Khanna (Executive Director (Finance)

c) Relatives of the Key Management.

1 Mrs.Neeta Khanna- wife of Shri V.KXhanna, Executive Director (Finance)

2 Shri Anant Vijay Mandelia Marketing Executive son of Shri B.G.Mandelia.

10 Disclosure as per Accounting Standared-15

i) Define Contribution Plan.

The Company has recognised the following amounts in the Profit & Loss Account for the year Contribution to Employees Provident Fund Rs. 29,53,975/-.

ii) Define Benefit Obligation(DBO)

The following table set out the status of the unfunded gratuity plan as required under AS-15(Revised 2005): a) A reconciliation of opening and closing balances of the present value of the defined benefit obligation (DBO):

11. The company has not received any intimation from its suppliers being registered under Micro, Small and Medium Enterprises Development Act,2006. Hence the necessary disclosures under the Act can not be made.

12. Previous years figures have been regrouped wherever found necessary to conform with current years classification.