Notes to Accounts of Mardia Samyoung Capillary Tubes Co. Ltd.

Mar 31, 2015

The Company has with effect from 1st April 2014, adopted estimated useful life of Fixed Assets as stipulated by Schedule II to the Companies Act 2013, applicable for accounting periods commencing 1st April 2014 or re-assessed useful life based on technical evaluation. Accordingly, depreciation of Rs. 26076967.00 on account of assets whose useful life is already exhausted as on 1st April, 2014 has been adjusted against Surplus in Profit and Loss Account. The consequential impact (after considering the transition provision specified in Part C of Schedule II of Companies Act, 2013) on the depreciation charged and on the results for year to date is not material.

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a) According to the information and explanations given to us, an amount of Rs. 748.52 Lacs, (Rs. 659.88 Lacs) of MSL towards Customs Import Duty, Interest & Penalty on the capital goods imported under EPCG Scheme & resultant export obligation not fulfilled is payable by the company. Proportionate custom duty amount saved, in respect of Advance Import License against which export obligation is pending, is Rs. 260.84 Lacs (Rs. 221.82 Lacs) Bank Guarantees issued against the same is Rs. 101.10 Lacs (Rs. 101.10 Lacs) & an amount of Rs. 133.55 lacs (Rs. 112.68 lacs) of MEL towards Custom Duty saved on Import of Capital goods under EPCG scheme & an amount of Rs. 33.46 lacs (Rs.21.52 lacs) of MTL towards Custom Duty saved on Import of Capital goods under EPCG scheme and Bank Guarantees issued against the same is Rs. 10.670 Lacs (Rs. 9.00 Lacs) & Rs. 18.07 lacs (Rs. 11.62 Lacs) respectively. Further an amount of Rs. 655.01 Lacs (239.16 Lacs) of MSL is pending towards the Excise Duty, Interest & Penalty claims made by the various Central Excise authorities, the company has preferred Appeals against such orders, at the appropriate levels. An Amount of Rs. 37.99 lacs (Rs.32.05 lacs) of MEL towards Excise Duty & Penalty, & an amount of Rs. 74.49 lacs (Rs. 16.00 Lacs) of MTL towards Excise duty and Penalty. Flowever, there is an amount of Rs. 2.43 lacs towards Income Tax demand of MEL and an amount of Rs. 3.40 lacs towards Income Tax demand of MTL is payable in respect of income tax. There no other , wealth tax, sales tax, custom duty and excise duty were outstanding as at 31st March, 2014 for a period of more than six months from the date they became payable.

b) Custom duty saved on import of total Capital goods under EPCG Scheme is Rs 137.50 Lacs (Rs. 137.50 Lacs). Bank Guarantee issued against the same is Rs. 70.37 Lacs (Rs 70.37 Lacs). Total export obligation under the EPCG Scheme was USD 81.25 Lacs.

c) Bank Guarantee for obtaining power given to Gujarat Electricity Board is Rs. 5.00 Lacs (Rs. 5.00 Lacs)

2. Sundry debtors, creditors and advances are subject to confirmation and reconciliation.

3. The opinion of Board of Directors, the Current assets, loans and advances have a value of at least equal to the amounts shown in the balance sheet. If realized in the ordinary course of business provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 1.

4. The company operates in one segment only, of manufacturing Stainless Steel, Copper and Brass Tubes, Bars, Ingots etc. Hence in the opinion of the management this is the only reportable segment. As per accounting standard 17 on segment reporting issued by the Institute of Chartered Accountants of India.

5. Related Party Disclosures :

I. List of Related Parties over which control exists

Sr. No. Related Parties

I Associates

Mardia Tube & Wire Industries

II Key Management Personnel (KMP)

Surendra Mardia

Ravindra Mardia Omana Nayak

HI Relatives & Enterprises of KMP

Sunita Mardia Bina Mardia Gaurav Mardia

II Names of the Related Parties with whom transactions were carried out during year and description of relationship

Sr. No. Name of the Related Party

I Associates

Mardia Tube & Wire Industries

II Key Management Personnel (KMP)

Ravindra Mardia

Omana Nayak

6. Additional information pursuant to the provision of paragraphs (3) & (4) of part II of schedule VI to The Company's Act, 1956, read together with other notes.

7. The Company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence the amount due to small scale industrial unit outstanding as on 31" March, 2015 are not ascertainable.

8. Figures for the previous year have been regrouped, reclassified wherever necessary to make them comparable with the current year's figures. Figures in the bracket, wherever appeared are for previous year.

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Mar 31, 2013

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a) According to the information and explanations given to us, an amount of Rs.748.521 Lacs. (Rs.659.88 Lacs), towards Customs Import Duty, Interest & Penalty on the capital goods imported under EPCG Scheme & resultant export obligation not fulfilled is payable by the company. Proportionate custom duty amount saved, in respect of Advance Import License against which export obligation is pending, is Rs. 260.81 Lacs (Rs.221.82 Lacs). Bank Guarantees issued against the same is Rs. 101.10 Lacs (Rs. 101.10 Lacs). Further an amount of Rs. 655.01Lacs (239.16 Lacs) is pending towards the Excise Duty, Interest & Penalty claims made by the various Central Excise authorities, the company has preferred Appeals against such orders, at the appropriate levels. However, no other amount payable in respect of income tax, wealth tax, sales tax, custom duty and excise duty were outstanding as at 31st March, 2012 for a period of more than six months from the date they became payable.

b) Custom duty saved on import of total Capital goods under EPCG Scheme is Rs 137.50 Lacs (Rs.137.50 Lacs). Bank Guarantee issued against the same is Rs. 70.37 Lacs (Rs 70.37 Lacs). Total export obligation under the EPCG Scheme was USD 81.25 Lacs.

c) Bank Guarantee for obtaining power given to Gujarat Electricity Board is Rs. 5.00 Lacs (Rs. 5.00 Lacs)

2. Sundry debtors, creditors and advances are subject to confirmation and reconciliation.

3. The opinion of Board of Directors, the Current assets, loans and advances have a value of at least equal to the amounts shown in the balance sheet. If realized in the ordinary course of business provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 1.

4. The company operates in one segment only, of manufacturing Stainless Steel, Copper and Brass Tubes, Bars, Ingots etc. Hence in the opinion of the management this is the only reportable segment. As per accounting standard 17 on segment reporting issued by the Institute of Chartered Accountants of India.

5. Additional information pursuant to the provision of paragraphs (3) & (4) of part II of schedule VI to The Company''s Act, 1956, read together with other notes.

6. REFERENCE TO BIFR

As per the Audited Accounts as on 31/03/1999, the Company''s net worth has been fully eroded and the Company has filed the reference to B.I.F.R. under section 15 of Sick Industrial Companies (Special Provision) Act, 1985. The Company has been registered with B.I.F.R. M/s Mardia Extrusions Ltd. (MEL) has submitted a new DRS for the merger with your company to the Hon''ble B.I.F.R. through its operating agency UBI. Now the company is waiting for the approval of merger of MTL, MEL & MSL from the Hon''ble B.I.F.R. The Scheme has been passed by the BIFR & we are waiting for the Minutes.

7. The Company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence the amount due to small scale industrial unit outstanding as on 31" March, 2013 are not ascertainable.

8. Figures for the previous year have been regrouped, reclassified wherever necessary to make them comparable with the current year''s figures. Figures in the bracket, wherever appeared are for previous year.

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Mar 31, 2012

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a) According to the information and explanations given to us, an amount of Rs.748.521Lacs. (Rs.659.R8 Lacs), towards Customs Import Duty, Interest & Penalty on the capital goods imported under EPCG Scheme & resultant export obligation not fulfilled is payable by the company. Proportionate custom duty amount saved, in respect of Advance Import License against which export obligation is pending, is Rs. 260.81 Lacs (Rs.221.82 Lacs). Bank Guarantees issued against the same is Rs. 101.10 Lacs (Rs. 101.10 Lacs). Further an amount of Rs. 655.01Lacs (239.16 Lacs) is pending towards the Excise Duty, Interest & Penalty claims made by the various Central Excise authorities, the company has preferred Appeals against such orders, at the appropriate levels. However, no other amount payable in respect of income tax, wealth tax, sales tax, custom duty and excise duty were outstanding as at 31st March, 2012 for a period of more than six months from the date they became payable.

b) Custom duty saved on import of total Capital goods under EPCG Scheme is Rs 137.50 Lacs (Rs. 137.50 Lacs). Bank Guarantee issued against the same is Rs. 70.37 Lacs (Rs 70.37 Lacs). Total export obligation under the EPCG Scheme was USD 81.25 Lacs.

c) Bank Guarantee for obtaining power given to Gujarat Electricity Board is Rs. 5.00 Lacs (Rs. 5.00 Lacs)

2. Sundry debtors, creditors and advances are subject to confirmation and reconciliation.

3. The opinion of Board of Directors, the Current assets, loans and advances have a value of at least equal to the amounts shown in the balance sheet, if realized in the ordinary course of business provision for alt known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 1.

4. The company operates in one segment only, of manufacturing Stainless Steel, Copper and Brass Tubes, Bars, Ingots etc. Hence in the opinion of the management this is the only reportable segment. As per accounting standard117 on segment reporting issued by the Institute of Chartered Accountants of India.

5. REFERENCE TO BIFR

As per the Audited Accounts as on 31/03/1999, the Company''s net worth has been fully eroded and the Company has filed the reference to B.I.F.R. under section 15 of Sick Industrial Companies (Special Provision) Act, i 985. The Company has been registered with B.I.F.R. M/s Mardia Extrusions Ltd. (MEL) has submitted a new DRS for the merger with your company to the Hon''ble B.I.F.R. through its operating agency UB1. Now the company is waiting for the approval of merger of MTL, MEL & MSL from the Hon''ble B.I.F.R. The Scheme has been passed by the BIFR & we are waiting for the Minutes.

6. The Company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence the amount due to small scale industrial unit outstanding as on 31st March, 2012 are not ascertainable.

7. Figures for the previous year have been regrouped, reclassified wherever necessary to make them comparable with the current year''s figures. Figures in the bracket, wherever appeared are for previous year.

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Mar 31, 2010

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a) According to the information and explanations given to us, an amount of Rs.748.521 Lacs. (Rs.659.88 Lacs). towards Customs Import Duty, Interest & Penalty on the capital goods imported under EPCG Scheme & resultant export obligation not fulfilled is payable by the company. Proportionate custom duty amount saved, in respect of Advance Import License against which export obligation is pending, is Rs. 260.81 Lacs (Rs.221.82 Lacs). Bank Guarantees issued against the same is Rs. 101.10 Lacs (Rs. 101.10 Lacs). Further an amount of Rs. 655.01 Lacs (239.16 Lacs) is pending towards the Excise Duty, Interest & Penalty claims made by the various Central Excise authorities, the company has preferred Appeals against such orders, at the appropriate levels. However, no other amount payable in respect of income tax, wealth tax, sales tax, custom duty and excise duty were outstanding as at 31 st March, 2010 for a period of more than six months from the date they became payable.

b) Custom duty saved on import of total Capital goods under EPCG Scheme is Rs 137.50 Lacs (Rs. 137.50 Lacs). Bank Guarantee issued against the same is Rs. 70.37 Lacs (Rs 70.37 Lacs). Total export obligation under the EPCG Scheme was USD 81.25 Lacs.

c) Bank Guarantee for obtaining power given to Gujarat Electricity Board isRs. 5.00 Lacs(Rs. 5.00 Lacs)

2. Sundry debtors, creditors and advances are subject to confirmation and reconciliation.

3. The opinion of Board of Directors, the Current assets, loans and advances have a value of at least equal to the amounts shown in the balance sheet. If realized in the ordinary course of business provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 1.

4. The company operates in one segment only, of manufacturing Stainless Steel, Copper and Brass Tubes, Bars, Ingots etc. Hence in the opinion of the management this is the only reportable segment. As per accounting standard 17 on segment reporting issued by the Institute of Chartered Accountants of India.

5. Related Party Disclosures :

1. List of Related Parties over which control exists

Sr. No. Related Parties

I Associates

Mardia Tubes Ltd

Mardia Extrusions Ltd

Mardia Tube & Wire Industries

11 Key Management Personnel (KMP)

Surendra Mardia

Ravindra Mardia

Omana Nayak

III Relatives & Enterprises of KMP

Sunita Mardia

Bina Mardia

Gaurav Mardia

II Names of the Related Parties with whom transactions were carried out during year and description of relationship

Sr. No. Name of the Related Party

I Associates

Mardia Tubes Ltd.

Mardia Extrusions Ltd.

Mardia Tube & Wire Industries

II Key Management Personnel (KMP)

Ravindra Mardia

Omana Nayak

7. Additional information pursuant to the provision of paragraphs (3) & (4) of part II of schedule VI to The Companys Act, 1956, read together with other notes.

8. REFERENCE TO BIFR

As per the Audited Accounts as on 31/03/1999, the Companys net worth has been fully eroded and the Company has filed the reference to B.I.F.R. under section 15 of Sick Industrial Companies (Special Provision) Act, 1985. The Company has been registered with B.I.F.R. and ICICI Bank has been appointed as the Operating Agency. During the year M/s Mardia Extrusions Ltd. (MEL) has submitted a new DRS for the merger with your company to the Honble B.I.F.R. through its operating agency UBI. Now the company is waiting for the approval of merger of MTL, MEL & MSL from the Honble B.I.F.R.

9. The Company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence the amount due to small scale industrial unit outstanding as on 31st March, 2010 are not ascertainable.

10. Figures for the previous year have been regrouped, reclassified wherever necessary, to make them comparable with the current years figures. Figures in the bracket, wherever appeared are for previous year.

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Mar 31, 2009

1. CONTINGENT LIABILITIES NOT PROVIDED FOR

a) According to the information and explanations given to us, an amount of Rs. 659.88 Lacs, (Rs. 659.88 Lacs), towards Customs Import Duty, Interest & Penalty on the capita! goods imported under EPCG Scheme & resultant export obligation not fulfilled is payable by the company. Proportionate custom duty amount saved, in respect of Advance Import License against which export obligation is pending, is Rs. 221.82 Lacs (Rs. 221.82 Lacs). Bank Guarantees issued against the same is Rs. 101.10 Lacs (Rs. 101.10 Lacs). Further an amount of Rs. 239.16 Lacs (239.16 Lacs) is pending towards the Excise Duty, Interest & Penalty claims made by the various Central Excise authorities, the company has preferred Appeals against such orders, at the appropriate levels. However, no other amount payable in respect of income tax, wealth tax, sales tax, custom duty and excise duty were outstanding as at 31 st March, 2008 for a period of more than six months from the date they became payable.

b) Custom duty saved on import of total Capital goods under EPCG Scheme is Rs 137.50 Lacs (Rs. 137.50 Lacs). Bank Guarantee issued against the same is Rs. 70.37 Lacs (Rs 70.37 Lacs). Total export obligation under the EPCG Scheme was USD 81.25 Lacs.

c) Bank Guarantee for obtaining power given to Gujarat Electricity Board is Rs. 5.00 Lacs (Rs. 5.00 Lacs)

2. Sundry debtors, creditors and advances are subject to confirmation and reconciliation.

3. In the opinion of Board of Directors, the Current assets, loans and advances have a value of at least equal to the amounts shown in the balance sheet. If realized in the ordinary course of business provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary. There are no contingent liabilities other than those stated in Note No. 1.

4. The company operates in one segment only, of manufacturing Stainless Steel, Copper and Brass Tubes, Bars, Ingots etc. Hence in the opinion of the management this is the only reportable segment. As per accounting standard 17 on segment reporting issued by the Institute of Chartered Accountants of India.

5. As on 31st March 2008, the Company has revalued its fixed assets as per the valuation of registered value. This has resulted in to increase in the Gross Block by Rs. 37034625/- and corresponding increase in the Revaluation Reserve by the same amount.

6. Related Party Disclosures:

7. a. Associates cover entities over which Key Management Personnel / their relatives are able to exercise significant influence.

b. Related party as defined under Clause 3 of Accounting Standard -18 has been identified on the basis of representation made by key managerial personnel and information available with the company.

c. There are no provisions for doubtful debts or amounts written off or written back during the year, for debts due from or to related parties.

8. Additional information pursuant to the provision of paragraphs (3) & (4) of part II of schedule VI to The Companys Act, 1956, read together with other notes.

9. REFERENCE TO BIFR

As per the Audited Accounts as on 31 /03/1999, the Companys net worth has been fully eroded and the Company has filed the reference to B.I.F.R. under section 15 of Sick Industrial Companies (Special Provision) Act, 1985. The Company has been registered with B.I.F.R. and ICICI Bank has been appointed as the Operating Agency. During the Year M/s. Mardia Extrusions Ltd. (MEL) has submitted a new DRS for Merger with Your Company to the Honble B.I.F.R. through its operating Agency UB1. Now the Company is waiting for approval of merger MTLMEL& MSL from Honble B.I.F.R.

10. The Company has not received any information from any of the suppliers of their being a small scale industrial unit. Hence the amount due to small scale industrial unit outstanding as on 31st] March, 2009 are not ascertainable.

11. CALCULATION OF DEFFERED TAX LIABILITY AS ON 31.03.2009

12. Figures for the previous year have been regrouped, reclassified wherever necessary to make them comparable with the current years figures. Figures in the bracket, wherever appeared are for previous year.