Notes to Accounts of ITL Industries Ltd.

Mar 31, 2018

COMPANY BACKGROUND

ITL Industries Limited (the ‘Company’) is a domestic public limited Company having its registered office situated at 111-Sector B, Industrial Area Sanwar Road, Indore 452015 (M.P.) Company is listed at Bombay Stock Exchange Limited (BSE). The company is engaged in the Manufacturing of Band saw Machines, CNC Tube Mills, Machine tools & Sale/purchase of Hydraulic Items, etc.

During the year new statutory auditors of the company hold their office as such and they relied on the old audited financial statements.

A) ADDITIONAL NOTES ON STANDALONE FINANCIAL STATEMENTS

1. Notes 1 to 25 referred herein above forms an integral part of these Standalone Ind AS Financial Statements.

2. (A) CONTINGENT LIABILITIES:

Contingent liability [to the extent not provided for]

- Central Sales Tax, 1956, matter under dispute Rs.5482865 Lacs (Previous year – Rs.4331704)

- MP Commercial Tax, matter under dispute Rs.27622 (Previous year - Rs.45834)

- Disputed Demand of Income tax for A.Y. 2011-12 Rs.180180 (Previous year - Nil)

(B) COMMITMENTS

The company has an outstanding commitments on capital account amounting to Rs. 381278/3. As per Ind AS 32 the long term investments held by the company in its subsidiary are to be carried at cost. All the investments of the Company have been considered by the management to be of long-term nature.

3. The inventories amounting to Rs. 245648377 have been shown at cost. As per Ind AS 2 - “Valuation of Inventories”, inventories should be valued at cost or net realizable value whichever is lower. Such valuation requires technical judgments and consideration of market related factors. The diminution in the valuation thereof, if any, will be accounted for the year of realization.

4. Balance of Trade Receivables, Trade Payables, Trade Deposit, Loans and Advances and others are subject to respective consent, confirmation, reconciliation and consequent adjustment, if any. However, in the opinion of the management these accounts will fetch the amount as stated in the books of accounts on realization in the ordinary course of business.

5. There were no dues outstanding for more than 45 days to any micro, small and medium enterprises creditors. The aforesaid information has been arrived at to the extent such communication has been received from the respective parties by the company.

6. Additional information as required under part II of schedule III to the companies Act, 2013 is as under:

- Expenditure in foreign currency on account of Raw Material Rs. 65402313/- [Previous Year Rs. 44425097]

- Earning in foreign currency on account of Export of goods on CIF/FOB Basis and advance from customers is Rs. 94428765/-[Previous Year Rs. 26533002]

- Particulars of consumption o fImported and Indigenous Raw Materials :-

7. The Company is the parent Company of M.M. Metals Private Limited holding 52% (12480 shares) of its subsidiary. The relevant consolidated Ind AS financial statements are separately prepared.

8. Previous year’s figures have been regrouped / reclassified wherever necessary to confirm to current year’s classification.

9. Research and Development Expenditure Details;

10. The Company has not entered into any derivative and forward contracts for the purpose of hedging foreign exchange exposures and there is no speculative transactions. The outstanding position of the Forex Exposure is as under:

11. Figures are rounded off to the nearest multiple of Rs. (Rupee).

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Mar 31, 2015

Note No. 1

The amount due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined due to non-availability of information from the enterprises. However, no interest was paid / payable in terms of Section 16 of the said Act.

Note No. 2

No amount is paid / payable by the Company under section 441A of the Companies Act, 1956 (cess on turnover), since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

Note No. 3

Income Tax Assessments of the Company have been completed upto assessment Year 2012-13.

Note No. 4

In terms of Accounting Standard 17, the Company has identified following segments and the details is furnished as under:

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Mar 31, 2014

1 CORPORATE INFORMATION

1.1 ITL Industries Limited is engaged in Manufacturing of Band Saw Machines, CNC Tube Mills, Machine tools & Sale/purchase of Hydraulic items. etc.

1.2 Registered Office of the Company is situated at 111, Sector B, Industrial Area Sanwer Road, Indore 452015 (M.P.)

Note No. 2

The amount due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined due to non-availability of information from the enterprises. However, no interest was paid / payable in terms of Section 16 of the said Act.

Note No. 3

No amount is paid / payable by the Company under section 441A of the Companies Act, 1956 (cess on turnover), since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

Note No. 4

Income Tax Assessments of the Company have been completed upto Assessment Year 2011-12.

NOTE-5

SIGNIFICANT ACCOUNTING POLICIES General:

(i) The Company adopts the accrual method and historical cost concept in the preparation of accounts.

(ii) In terms of Company (Accounting Standards) rules, 2006 the relevant accounting standards are standards are intended to apply only to items which are material.

Fixed Assets:

Fixed Assets are stated at acquisition cost less depreciation.

Depreciation:

No depreciation has been provided on Fixed Assets in the current year as there is no operation during the year however in future it will be provided on the basis of Straight Line Method as per the rates prescribed in Schedule XIV to the Companies Act, 1956, according to period of use.

NOTE-6 OTHER NOTES

(1) In the absence of any stipulation towards the payment of interest, no provision of interest on the dues of ITL Industries Ltd. has been made.

(3) Since the company could not commence any business, therefore no Profit & Loss statement has been prepared.

(4) Additional information pursuant to clause (viii) of part II of Schedule VI - Nil

(5) Figures are rounded off to the nearest multiple of a rupee.

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Mar 31, 2013

1 CORPORATE INFORMATION

1.1 ITL Industries Limited is engaged in Manufacturing of Band Saw Machines, CNC Tube Mills, Machine tools & Sale/purchase of Hydraulic Items. etc.

1.2 Registered Office of the Company is situated at 111, Sector B, Industrial Area Sanwer Road, Indore 452015 (M.P.)

Note No. 2

The amount due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined due to non-availability of information from the enterprises. However, no interest was paid / payable in terms of Section 16 of the said Act.

Note No. 3

No amount is paid / payable by the Company under section 441A of the Companies Act, 1956 (cess on turnover), since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

Note No. 4

Income Tax Assessments of the Company have been completed upto Assessment Year 2010-11.

Note No. 5

The financial statement for the year ended March 31, 2011 had been prepared as per the then applicable pre- revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statement for the year ended March 31, 2012 have been prepared as per Revised Schedule VI. Accordingly, the previous year''s figures have also been reclassified to confirm to this year''s classification. The adoption of the Revised Schedule VI for the previous year''s figures have also been reclassified to confirm to this year''s classification. The adoption of the Revised Schedule VI for the previous figures does not impact recognition and measurement principles followed for preparation of financial statement.

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Mar 31, 2012

1 CORPORATE INFORMATION

1.1 ITL Industries Limited is engaged in Manufacturing of Band Saw Machines, CNC Tube Mills, Machine tools & Sale/purchase of Hydraulic Items, etc.

1.2 Registered Office of the Company is situated at 111, Sector B, Industrial Area Sanwer Road, Indore 452015 (M.P.)

Note No. 2

The amount due to Micro and Small Enterprises as defined In the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined due to non-availability of information from the enterprises. However, no interest was paid / payable in terms of Section 16 of the said Act.

Note No. 3

No amount is paid / payable by the Company under section 441A of the Companies Act, 1956 (cess on turnover), since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government.

Note No. 4

Income Tax Assessments of the Company have been completed upto assessment Year 2009-10.

Note No. 5

The financial statement for the year ended March 31, 2011 had been prepared as per the then applicable pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statement for the year ended March 31, 2012 have been prepared as per Revised Schedule VI. Accordingly, the previous year's figures have also been reclassified to confirm to this year's classifcation. The adoption of the Revised Schedule VI for the previous year's figures have also been reclassified to confirm to this year's classification. The adoption of the Revised Schedule VI for the previous figures does not impact recognition and measurement principles followed for preparation of financial statement.

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Mar 31, 2010

1. CONTINGENT LIABILITIES :

i) Guarantees issued by Banks Rs. 3,38,62,545/-

ii) Tax demand for MPCT & CST for the years 2000-01 to Rs. 24,74,663/-

2005-06 appealed against but not provided for in accounts

iii) Tax demands for Entry Tax for 2001-02, 2003-04 Rs. 1,06,690/- & 2004-05appealed against but not provided for in accounts.

2. Balance confirmation from parties have not been obtained.

3. As explained to us, quantitative data can not be given as the production represents machine fabrication castings assembling of elements etc. against individual tailor made orders. In the case of Trading activities the items involved are large in numbers.

4. Income Tax Assessments of the Company have been completed upto assessment Year 2008-09.

5. The Company has invested Rs.12,53,066/- in M/s. ITL International LLC (USA). Pending commencement of commercial activities, no statement of accounts for the year ended 31.12.2009 have been drawn.

6. The amount due to Micro and Small Enterprises as defined in the Micro, Small and Medium Enterprises Development Act, 2006 could not be determined due to non-availability of information from the enterprises. However, no interest was paid / payable in terms of Section 16 of the said Act.

7. No amount is paid / payable by the Company under section 441A of the Companies Act, 1956 (cess on turnover), since the rules specifying the manner in which the cess shall be paid has not been notified yet by the Central Government

8. Previous years figures have been reworked, regrouped and reclassified wherever necessary.