Notes to Accounts of Mauria Udyog Ltd.

Mar 31, 2018

(a) The Rupee Term Loan from Religare Finvest Limited consist three( Previous year two) joint loans secured against mortgage of Property at Farm House at Mustil NO.18, Khasra No.20/2, 21, 23/1, Village Samalaka, Vasant Vihar, New Delhi belongs to M/s S.K.D. Estates Private Limited, Since the Loan was disbursed to/and utilised by the compnay , hence all the transaction related thereto have been recorded in the Financial Statements of the Company as detailed hereunder:

Loan No. 1. Jointly in the name of M/s S.K.D. Estates Private Limited, Mauria Udyog Limited, Mr. Vishnu Kumar Sureka, Mrs. Prem Lata Sureka, Mr. Navneet Kumar Sureka, Mrs. Deepa Sureka and Mr. Akhil Kumar Sureka The Principal Installments due within the period of next twelve months are Rs. NIL ( Previous year Rs. 1,62,94,773)

Loan No. 2. Jointly in the name of M/s S.K.D. Estates Private Limited, Mauria Udyog Limited, Mrs. Prem Lata Sureka, Mr. Navneet Kumar Sureka, Mrs. Deepa Sureka and Mr. Pramod Kumar Agarwal and Bihariji Infotech Pvt. Ltd. The Principal Installments due within the period of next twelve months are Rs. NIL (Previous year Rs.1,45,21,272)

Loan No. 3. Jointly in the name of M/s. Mauria Udyog Limited, M/s S.K.D. Estates Private Limited, Mr. Navneet Kumar Sureka, Mrs. Deepa Sureka and Mr. Pramod Kumar Agarwal , Mr. Vishnu Kumar Sureka and Mrs. Prem Lata Surekaand , The Principal Installments due within the period of next twelve months are Rs. NIL (Previous year Rs.70,60,308)

(b) Term Loan from ICICI Home Finance is a joint loan with others as detailed hereunder :

(i) Loan No. 1. Jointly in the name of M/s. Bihariji Ispat Udyog Ltd, Shri Navneet Kumar Sureka and the Mauria Udyog Limited, The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds for mortgage in respect of the Property at apartment No. PNA 011, The Pinnacle In DLF City Gurgaon owned by the company, and also personal guarantee of Mr. Navneet Kumar Sureka, Managing Director of the Company. Since the loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyoug Limited , hence, all the transaction related thereto have been recorded in the financial statements of the said co- applicant .The principal Installments due within the period of next 12 months are Rs.32,47,150 (Previous year Rs.30,72,106).

(ii) Loan No. 2 & 3, are Joint loans in the name of M/s. Mauria Udyog Limited ,Shri Navneet Kumar Sureka and Shri Vishnu Kumar sureka. The loans are secured by way of First and exclusive charge over the property situated at A-24, 24th floor, Tower-Z, A-25, Tower-X and C-4, Tower-Y , sector-50, TGB Meghdutam Noida and personal guarantee of Mr. Navneet Kumar Sureka, Managing Director of the Company and Sh. Vishnu Kumar Sureka chairman of the company. Since the loans were disbursed to/and utilised by the company , hence all the transaction related thereto have been recorded in the financial statements of the company.The principal due within the period of next 12 months are Rs. 1,07,69,694(Previous year Rs94,18,844).

(c) Term Loan from Housing Development Finance Corporation Limited is a joint loan in the name of Shri Navneet Kumar Sureka, M/s Bhama Properties Private Limited, Mrs. Prem Lata Sureka,M/s. Mauria Udyog Limited, Sh. Vishnu Kumar Sureka and Mrs. Deepa Sureka. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the agricultural Land measuring 12 Bigha out of Khasara No. 921/1min(1-9),922(5-5)and 923(5-6), Situated at village Rajokari, tehsil Vasant Vihar, New Delhi owned by the M/s Bhama Properties Pvt. Ltd. Since the loan was disbursed to/and utilised by the company, hence all the transaction related thereto have been recorded in the financial statements of the company. The instalments due within the period of next 12 months are Rs.2,01,89,688(Previous Year 1,83,12,245)

(d) Joint loan in the name of M/s. Mauria Udog Limited, Bihariji Infotech Private Limited, Navneet Kumar Sureka HUF, Mrs. Deepa Sureka, Sh Pramod Kumar Agarwal , Shri Navneet Kumar Sureka and Mrs. Prem Lata Sureka . The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the Property at Plot No. 662, Udyog Vihar, Phase-V, Gurgaon, Haryana owned by M/s. Bihariji InfoTech Pvt. Ltd. Since the loan was disbursed to/and utilised by the company, hence, all the transaction related thereto have been recorded in the financial statements of the company.The installments due within the period of next 12 months are Rs. 80,51,217 (Previous year 1,4,865,314).

e) Term Loan from Aditya Birla Finance Limited in the name of M/s. Mauria Udog Limited, where M/s. Veshnodevi Properties Private Limited is co borrower. The loan is secured by way of exclusive charge on farm house at Bougan Villa Avenue Westend Greens Village Rajokari , Delhi Owned by M/s. Veshnodevi Properties Private Limited and

Personal Guarantees of Shri V.K. Sureka- Chairman, Shri Navneet Sureka-Managing Director, Mrs. Deepa Sureka and Smt. Prem Lata Sureka . Since the loan was disbursed to/and utilised by the company, hence, all the transaction related thereto have been recorded in the financial statements of the company. The installments due within the period of next 12 months are Rs. 7,19,04,558 (Previous year 719,05,332).

f) Term Loan Rs. 1650 Lacs and Overdraft Working Capital Limit of RS. 100 Lacs sanctioned by Kotak Mahindra Bank Limited is in the name of M/s. Mauria Udyog Limited. The loan is secured by way of exclusive charge on farm land area ad measuring 68 bighas & 19 biswas (14.568 acres) in jhatikra village tehsile kapashera district South -West Delhi -110043 owned by M/s. Strawberry Star India Private Limited and Personal Guarantees of Shri Navneet Surekha, Shri .Vishnu Kumar Surekha , Mr. Akhil Kumar Surekha , CG of M/s. Strawberry Star India Private Limited and Letter of Comfort from M/s. Jotindra Steel & Tubes Limited . All the transaction related thereto have been recorded in the financial statements of the company. The installments due within the period of next 12 months are Rs. 2,73,05,808 (Previous year Nil).

g) Over Draft /Shipping Loan- Pre Shipment Credit/ Bills Limit- Post Shipment Credit and Non-Fund Base Limits for Letter of Credits, Bank Guarantees and/or Forward Exchange contracts of Rs. 1,96,00,00,000 (Rupees One hundred Ninety Six Crore only ) from Karnataka Bank Limited are Secured by way of charge over entire current assets of the Company, both present and future on pari-passu with Allahabad Bank and Andhra Bank and also collaterally secured by way of Equitable mortgage of Land & Building/Industrial infrastructure situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, Plant & Machinery and other fixed assets (except vehicles which are financed by other financial institutions) and Personal Guarantees of Shri V.K. Sureka, Chairman , Shri Navneet Sureka, Managing Director, Outstanding Bank Guarantees/Letters of Credit were also secured by charge created in favour of the Bank.

h) Working Capital Limits from Allahabad Bank consists of Fund Base Limits of Rs. 20,00,00,000/- (Rupees Twenty Crores only) and Letter of Credit Limit of Rs. 80,00,00,000/- (Rupees eighty Crores only) are secured by way of charge over entire current assets of the Company, both present and future on pari-passu basis with Karnataka Bank and Andhra Bank and also collaterally secured by way of Registered mortgage of 4.09 Acre agricultural Land known as Mauria Garden situated at samalka village , tehsil Vasant Vihar, Dist. South West Near Rajokri Flyover NH-8 New Delhi and Personal Guarantees of Shri V.K. Sureka, Chairman, Shri Navneet Sureka, Managing Director and Shri Akhil Sureka and Corporate Guarantees of M/s Deepak Hotels Pvt. Ltd.

i) Working Capital Limits of Rs. 42,40,00,000 (including adhoc limit of Rs. 2.40 crore ) from Andhra Bank are secured by way of charge over entire current assets of the Company, both present and future on pari-passu basis with Karnataka Bank and Allahbad Bank and also collaterally secured by way of pari passu charge on Land admeasuring 23.34 acres & Building/Industrial infrastructure thereon situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, to be shared between Karnatka Bank and Andhra bank, and Personal Guarantees of Shri V.K. Sureka, Chairman and Shri Navneet Sureka,Managing Director.

j) Auto and Equipments Loans from HDFC BANK LTD. , Tata Capital Financial Services Limited , Karnataka Bank Limited and Kotak Mahindra Bank Limited are secured by way of Hypothecation of the Vehicles/Equipments financed by the Bank and Personal Guarantee of Shri V.K. Sureka, Chairman and Shri Navneet Sureka, Managing Director of the company.

k) Loan from Tata Capital Financial Services is secured by way of Personal Guarantee of Shri V.K. Sureka, Chairman and Shri Navneet Sureka, Managing Director of the company.

l) The Rupee Term Loan of Rs. 20,00,60,996 from Dewan Housing Finance Limited is in the name of M/s Mauria Udyog Limited where M/s S.K.D. Estates Private Limited , Sh. Vishnu Kumar Sureka is the co-borrower & secured against mortgage of Property at Farm House at F-28 known Floris bansal Mustil NO.18,Killa- .20min(1-0), 21(6-14), 23/1(4-16), Vill Samalaka Bandh Road, New Delhi-110037 belongs to M/s S.K.D. Estates Private Limited, Since the Loan was disbursed to/and utilised by the company , hence all the transaction related thereto have been recorded in the Financial Statements of the Company.The principal Installments due within the period of next 12 months are Rs.1,12,01,657(Previous Year NIL).

Acceptances amounting to Rs.133,48,36,176 (Previous year Rs.127,62,01,673) represents letters of credit/counter Guarantee issued to suppliers out of Non Fund base limits sanctioned by the following banks :

NOTE -1 - NOTES ON ACCOUNTS FOR THE YEAR ENDED 31ST MARCH 2018

1 BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements upto the year ended 31st March 2017 were prepared in accordance with the accounting standard rules 2006 (as amended) and other relavent provisions of the companies act, 2013 (Indian GAAP).

The ministry of corporate affairs (MCA) issued a notification on 16th February, 2015, making Indian Accounting standards, issued under section 133 of companies act, 2013 mandatory for certain class of companies.

As per notification, Ind AS is mandatory for the company for the financial year commencing 1st April 2017. Accordingly, the company has adopted Ind AS from 1st April 2017 and the financial statements for the year ended 31st March 2018 have been prepared in accordance with the principles laid down in the said Ind AS.

The financial statements are presented in Indian rupees, which is the functional currency of the company and the currency of the primary economic environment in which the company operates.

The financial statements have been prepared on a historical cost basis, except the following assets and liabilities:

i) Certain financial assets such as Investments are measured at fair market value (refer account policy regarding financial instruments).

ii) Employee’s define benefit plan as per actuarial valuation.

iii) Plant, property and equipment are measured at historical cost concept method.

2 FIRST TIME ADOPTION OF Ind AS

The company has restated the financial statement as at 1st April 2016 (opening), being the transition date, on the following basis:

The amount of transition reserve (component of retained earings) arising on the same is given below:

a) All tangible assets, including poperty, plant and equipments, and intangible asssets were taken at historical cost and hence no adjustments is required in financial statements.

b) Investments have been assessed at fair values.

c) The balances in revaluation reserve account (Rs 2002.25 lakhs credit) is transferred to transition reserve account.

Exemptions awailed as per Ind AS 101:

1) Past business combination:

The company has elected not to apply Ind AS 103-Business combination retrospectively to pass business combination that accured before the transition date of 01-April-2016 consequently, the company has kept the same classification for the past business combination as in its GAAP financial statements.

2) Propety, Plant and Equipments:

The company has elected to measure the PPE at historical cost method as was prevailing in the previous financial statements.

3) Investments in Subsidiaries & Associates :

There is no subsidiary of the company.

4) Fair value of financial Assets and Libilities:

As per the Ind AS exemption, the company has not fair valued the financial assets and libilities retrospectively and measured the same prospectively.

1 As per consistent accounting practice followed by the Company, Excise Duty aggregated approximately to Rs.NA (Rs. 83,11,327 ) on finished goods not cleared from factory is neither provided for nor the same as considered for valuation of Closing Stock. This policy has no impact on the profit for the year.

2 Estimated amount of contracts remaining to be executed on Capital accounts Rs. 1,28,89,956 (Rs. 1,60,93,731 ) against which advances made amounting to Rs.1,17,45,956 (Rs.1,44,56,874).

3 The Company purchased building and plant & machinery in Court Auction for Rs.85,21,000 in earlier years out of which Rs.43.00 Lacs was allocated to Land & Building vide Court Order for registration of properties, the Board of Directors allocated Rs.10.00 Lacs to Land and Rs.33.00 Lacs to Building respectively and depreciation charged accordingly. Out of plant & machinery so purchased certain machineries have been sold in earlier years in respect of which sale value has been adjusted in the cost of plant & machinery in the respective years.

The Company has filed a suit against the Hong-Kong and Shanghai Banking Corporation for realisation of Rs.19,34,730 for expenses incurred in connection with clearing the title of Property which was purchased in Court Auction and other damages/losses suffered by the Company for which no adjustment has been made in the books of accounts.

4 (i) In pursuance of liberal policy of Government to allow parallel marketing of Liquefied Petroleum Gas. Company started LPG division for marketing of Liquefied Petroleum Gas during the year 1993-1994, but due to unfeasibility, the said division as per an agreement made on 12th August, 1994 had already been transferred to another Company M/s BYGGING INDIA LIMITED and all the expenditures, income and liabilities had been transferred to the said Company from the date of inception to the date of agreement.

(ii) Recovery suit for Rs.32,40,707 filed against Bygging India Ltd.by the dealers of the above referred LPG Division is also pending with the Honorable Delhi’ High Court wherein the Company has also been made a party.

(iii) A Suit for recovery of Rs. 26,12,863 has been filed by M/s ESS ESS Chemitech in the civil court at Faridabad against which the company has incured Rs. 30,78,351 on account of inferior paint supplied by M/s ESS ESS Chemitech and the balance of Rs. 4,65,488 is recoverable from M/s ESS ESS Chemitech as on 31.03.2018

5 Rs. 2,06,30,092 in respect of insurance claim loged on New India Assurance Company Faridabad , for damage cause due to fire broke out on 19/06/2017 in the Terry towel Unit of the company in Faridabad against which the Insurance Company had paid Rs. 89,24,638 and for the balance amount the company has lodged the claim in the court of law.

6 The Company is in the process of identifying Micro, Small and Medium Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the Company to ascertain whether payment to such enterprises has been done within 45 days from the date of acceptance of supply of goods or services rendered by such enterprises and to make requisite disclosure. The disclosure as required under the said act is as under:

7 In the opinion of the management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Sundry Debtors, Sundry Creditors and Loans and Advances and commission on sales & purchases are however, subject to confirmations and adjustments, if any.

8 Sales is net of:

(i) Gain on Exchange fluctuation (net) Rs.9,98,60,804.58 (previous year Rs. (1,47,10,852 ),though in consonance with the accounting policy consistently followed by the company but is in contravention of Accounting Standard AS 11. where the same should have been reported separately.

(ii) Expense on repairs of exported goods outside India Rs. NIL (previous year Rs.Rs. 15,14,724)

9 Derivative Instruments and Unhedged Foreign Currency Exposure

(i) Forwarded Contract Outstanding at the Balance sheet date. NIL(NIL)

(ii) The year end foreign currency exposures that have not been hedged by a derivative instrument or otherwise are given below:

Amount receivable and payable as at March 31, 2018 in foreign currency on account of the following:

10 Comparative figures for the previous year have been re-grouped re-cast and re-arranged wherever necessary and figures in brackets represent previous year figures.

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Mar 31, 2016

1. Term loans from Karnataka bank limited is Secured by way of Plant and Machinery funded and collaterally secured by way of equitable mortage of Land & Building/Industrial infrastructure situated of Sohna Road Mauza Gouchi, Ballabgarth District. Fairidabad Plant & Machinery and other fixed assets on pari passu basis with Andhra Bank and Personal Guarantees of Shri V.K Sureka (Chairman) and Shri Navneet Sureka (Managerial Director). The principal due with the period of next twelve months are Rs. 26,12,222.

2. The Rupee Term loan from Religare Finvest Limited consist three previous year two joint loans secured against mortgage of Property of Farm House at Mustil No. 20/2 21, 23/1, village Samalaka. Vasant Vihar, New Delhi belongs to M/s S.K.D. Estates Private Limited. Since the Loans was disbursed to/ and utilized by the company hence all the transaction related thereto have been recorded in the Financial statements of the Company as detailed there under.

Loan No. 1 Jointly in the name of M/s S.K.D Estates Private Limvfgited, Maura Udyog Limited. Mr. Vishnu Kumar Sureka, Mr. Naveen Kumar Sureka, Mrs. Deepa Sureka and Mr. Pramod Kumar Agarwal and Biharji Infotech Pvt. Ltd. The Principal Due within the period of next twelve months are Rs. 1,25,28,746 (Previous year Rs. 1,20,86,386).

Loan No. 3. Jointly in the name of M/s Mauria Udyog Limited, M/s S.K.D. Estate Private Limited Mr. Novneet Kumar Sureka Mrs. Deepa Sureka and Mr. Pramod Kumar Agarwal, Mr. Mishnu Kumar Sureka and Mrs. Prem Lata Surekaand. The principal due within the period of next twele months are 51,42,914 (Previous yer Rs. NIL).

3. Term Loan from ICICI Home finance is a joint loan in the name of M/s. Bihariji Ispal Udyog Ltd. Shri Naveen Kumar Sureka and the Mauria Udyog Limited. The loan is secured by way of equitable mortage of Property by way of deposit of the life deeds of the mortgage in respect of the Property of apartment No. PNA011. The Pinnacle in DLF City Gurgoan owned by the company, and also personal guarantee of Mr. Navven Kumar Sureka, Managng Director of the Company. Since the loan was disbursed to /and utilized by the co-applicant M/s Mouria Udyog Limited, hence all the transactions related thereto have been recorded in the financial statements of the said co-applicant. The principal installment due within the period of next 12 months are Rs. 27,01,666( Previous year Rs. 22,64,522).

4. Term Loans from ICICI Home Finance are joint loans in the name of M/s Mauria Udyog Limited, Sri Navneent Kumar Sureka and Shri. Vishnu Kumar sureka. The loans are secured by way of first and exclusive charge over the property situated of A-24 24^th floor, Tower-Z, A-25, Tower-X and C-4. Tower –Y, Sector-50, TGB Meghdutam Noida and personal guarantee of Mr. Navneet Kumar Sureka. Managing Director of the company and Sh. Vshnu Kumar Sureka Chairman of the company. Since the loans were disbursed to /and utilized by the company, hence at the transaction related thereto have been recorded in the financial statements of the company. The principal due within the period of next 12 months are Rs. 81,91,505 (Previous Year Rs. 68,39,901).

5. Term Loan from housing Department Finance Corporation Limited is a joint loan in the name of Shri Navven Kumar Sureka, M/s Bhama Properties Private Limited, Mrs, Prem Lata Sureka, M/s. Mauria Udyog Limited, Sh. Vishnu Kuar Sureka and Mrs. Deepa Sureka. The loan is secured by way of equitable mortgage of property by way of deposit of the title deeds in respect of the agricultural land measuring 12 Bigha out of Khasara No. 921/1min(1-9), 922(5-6), Situated on village Rajokat, fehsit Vasant Vihar New Delhi owned by the M/s Bhama Properties Pvt. Ltd. Since the loan was disbursed to /and utilized by the company, hence of the transaction related thereto have been recorded in the financial statements of the company. The installments due within the period of next 12 months are Rs. 95,12,014 (Previous Years 83,58,298.

6. Term Loan from HDB Finance Services Limited is a joint loan in the name of M/s. Moura Udyog Limited, Bihariji Infotech Private Limited. Naveen Kumar Sureka HUF, Mrs. Deepa Sureka Kumar Agarwal, Shri. Naveen Kumar Sureka and Mrs. Prema Lata Sureka. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the Property of Plot No. 662, Udyog Vihar, Phase-V Gurgan, Haryano owned by M/s. Bihariji InfoTech Pvt. Ltd. Since the loan was disbursed to/and utilized by the company, hence all the transaction related thereto have been recorded in the financial statement of the company. The installments due within the period of next 12 months are Rs. 1,11,22,574 (Previous Year 1,12,91,613).

7. Term Loan from Aditya Birfa Finance Limited in the name of M/s. Mauria Udyog Limited, where M/s, Veshnodevi Properties Private Limited is to borrower. The loan is secured by way of executive charge on form house of Bougor, Vila Avenue Westend Greens Village Rajakari. Delhi Owned by M/s. Veshnodevi Properties Private Limited and Personal Guarantees of the loan was disbursed to/and utilized by the company, hence all the transaction related thereto have recorded in the financial statements of the company. The installments due within the period of next 12 months are Rs. 2,64,00,000( Previous year NIL).

8. Over Draft /Shipping Loan Pre Shipment Credit/ Bills Limit- Post Shipment Credit and Non-Fund Bose Limits for Lender of Credits, Bank Guarantees and/or forword Exchange contacts from Karnataka Bank Limited are Secured by way of charge entire current assets of the company, both present and future on pari-passu with Alahabad Bank and Andhra Bank and also collaterally secured by way of Equitable mortgage of Land & Building/Industrial Infrastructure situated at Sahnc Road, Mauza Gouchi, Bollabgarh District, Foridobod, Plant & Machinery and other fixed assets (except vehicles which are financed by other financial Institutions) and Personal Guarantees of V.K Sureka, Chairman, Shri, Navneet Sureka, Managing Director, Outstanding Bank Guarantees/Letters of Credit were also secured by charge credit in favour of the Bank.

9. Working Capital Limits from Allahabad Bank consist of Rs. 20,00,000,0000:- (Rupees Twenty Crores Only) one letter of credit limit at Rs. 80,00,00,000/- (Rupees eighty crores only) are secured by way of charge over entire current assets of the company, both present and future on pari-passu basis with Karnataka Bank and Andhra Bank and also current assets secured by way of Registered mortgage of 4.09 Acre agricultural Land known as Mauria Gurden situated at samake village, Vasant vihar Dist. South West Near Rajkif Flyover NH-8 New Delhi and Personal Guraretees of Shri. V.K Sureka Chairman,Shri Navneet Managing Director and Shri. Sureka and Corporate Guarantees of M/s Deepak Hoel Pvt. Ltd.

10. Working Capital Limits of Rs. 40,00,00,000 from Andhra Bank are secured by way of over entire current asets of the Company, both present and future on pari-passu basis with karntaka Bank and Allahabad Bank and also secured by way of pari-passu charge on Landor measuring 23.34 cross & Building(Industrial Infrastructure thereon situated at Sohna Road , Mouza Gouchi Ballabgam District. Faidabad to be shared between Karnataka Bank and Andhra Bank and Personal Guarantees of Shri. V.K. Sureka Chairman , Shri Navneet Sureka Managing Director.

11. Working Capital facilities from Aditya Bank Finance Limited is secured by way of exclusive charge on form house of Bougon Villa Avenue Westend Greens Village Ropokari, Delhi Owned by M/s. Veshnadevi Properties private Limited and Personal Guarantees of Shri V.K. Sureka Chairman , Shri. Navneet Sureka Managing Director M/s Deepa Sureka and Smt. Prema Lata Sueka.

12. Working Capital Limits from Bank of Indio are secured by way of Conform letter from steel Authority Limited with recourses backed by letter of Credit /Bank guarantee.

13 Auto and equipments Loans from HDFC, BMW Financial Services Limited, Tata Capital Financial Services ICIC Bank Limited and Kotak Mahindra Bank Limited are secured by way of Hypothication of the Vechicles/Equipments financed by the bank and Personal Guarantees of Shri. V.K. Sureka, chairman and Shri. Navneet Sureka Managing Director of the company.

14. Rs. 1,77,07,729 Equivalent UAE Dirhom 19,79,952 (Previous year Rs. 2,29,61,163 Equivalent UAE Dirhom 13,53,842 ) in respect of a Forward lease Housing arrangements with M/s Taeeweel Pjsc Dubot UAE entered by the Dubal Branch of the Company jointly with Navneet Sureka, secured by way of mortgage of the deeds of the property of the company of commercial Unit no. 511 Liberty House. DISC Dubai UAE costing Rs. 7,16,65,245(Equivalent UAE Dirham 58,50,224).

The total exposure under the aforesaid agreement in foreign currency amounting to UAE Diham 28,84,000 repayable on 111 Equaled monthly installments (EMI of UAE Diham 39,951 per month) along with a pre determined Variable Rental @ 10% p.a. (termed as profit in the respective agreement with the party) and taxes/levies thereto. Since the amount of variable rental paid together with the State Levy in the form of “Takaful Family Protection contribution “ are in the nature of “payment of interest on borrowings”, hence forth the said variable Rental period during the year amounting to Rs. 18,12,722 Equivalent UAE Dirham 1,00,317 (Previous year Rs.28,51,191 Equivalent UAE Dirhom 168,107) has been shown under the head Interest to others.

The outstanding balance as on the balance sheet date has been converted into reporting currency of the exchange rate prevailing as on that date. The Installments due within the period of next twelve months are Rs. 37, 45,255 (Equivalent UAE Dirhom 2,07,263,70).

15. Acceptance amounting to Rs. 156,15,21,579 (Previous year 92,24,09,701) represents letters of credit/counter Guarantees (including Foreign currency buyer credit amounting to Rs. 1,38,61,06,479 (Previous year 70,35,55,825) issued to suppliers out of Non Fund base limits sanctioned by following Banks.

16. As per consistent according practice followed by the Company. Excise Duty aggregate approximately to Rs. 39,58,984(Rs. 83,11,327) on finished goods not cleared from factory is neither provided for nor the same as considered for valuation of Closing Stock. This policy has no impact on the profit for the year.

17. Estimated amount of contracts remaining to be executed on Capital accounts Rs. 1,33,98,506 (Rs. 1,37,86,542) against which advances made amounting to Rs. 1,37,62,830)

18. The Company purchased building and plan & machinery in Court Auction for Rs. 85,21,000 in earlier years out of which Rs. 43.00 Lac was allocated to Land & Building vide Court Order for registration of properties. The Board of Directors allocated Rs. 10.00 Lacs to Land Rs. 33.00 Lacs to Building respectively and depreciation charged accordingly. Out of plant & machinery so purchased certain of plant & machinery in the respective years.

The Company has filed a suit against the Hong-Kong and Shanghai Banking Corporation for realization of Rs. 19,34,730 for expenses incurred in connection with clearing the little of Property which was purchased in Court Auction and other damages/losses suffered by the Company for which no adjustment has been made in the books of accounts.

19. In pursuance of liberal policy of Government to allow parallel marketing of Liquefied Petroleum Gas, Company started LPG division for marketing of Liquefied Petroleum Gas during the year 1993-1994 but due to unfeasibility, the said division as per an agreement made on 12^th August, 1994 had already been transferred to another Company M/s BYGGING INDIA LIMITED and all the expenditure income and liabilities to the said Company from the date of inception to the date of agreement.

20. Recovery suit for Rs. 32,40,707 filed against Bygging India Ltd. By the dealers of the above referred LPG Divisions is also pending with the Honorable Delhi High Court wherein the Company has also been made a partly.

21. The Competition commission of India vide dated 24/02/2012 in re. Suo Motu case no. 3/2011 against LPG Cylinders manufactures has imposed a penalty of Rs. 36,37,86,806. The Company had preferred on appeal against the said order before the Honorable Computation Appellate Tribunal. The Tribunal vide order dated 01.03.2016 has deleted the aforesaid demand.

22. The Company is in the process of identifying Micro. Small and Medium Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore it is not possible for the Company to ascertain whether payment to such enterprises has been done within 45 days from date of acceptance of supply of goods or services rendered by such enterprises and to make requisite disclosure.

23. In the opinion of the management Current Assets Loans and Advances have value on realized in the ordinary course of business of least equal to the amount of which they are stated. The balances of Sundry Debtors, Sundry Creditors and Loans and Advances and commission on sales & purchases are however.

24. Sale is net of:

Gain on Exchange fluctuation (net) Rs. 18,70,357 (Previous Year Rs. 1,44,99,893) through in consonance with the accounting policy consistently followed by the company but is in conservation of Accounting Standard AS 11, where the same should have been reported separately.

25. Expenses on repairs of exported goods outside India Rs. 8,87,310 (Previous year Rs. 97,95,055).

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Mar 31, 2014

1. a) Term Loan from Karnataka Bank Limited is Secured by way of hypothecation of Plant and Machinery funded and collaterally secured by way of Equitable mortgage of Land & Building/lndustrial infrastructure situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, Plant & Machinery and other fixed assets and Personal Guarantees of Shri V.K, Sureka, Managing Director, Shri Navneet Sureka, Director and Shri Akhil Sureka, Director. The principal due within the period of next twelve months are Rs.96,00,000.

b) The Rupee Term Loan from Religare Finvest Limited consist two joint loans secured against mortgage of Property at Farm House at Mustil NO.18, Khasra No.20/2, 21, 23/1, Village Samalaka, Vasant Vihar, New Delhi belongs to M/s S.K.D. Estates Private Limited, Since the Loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyog Limited, hence all the transaction related thereto have been recorded in the Financial Statements of the Company, as detailed hereunder:

(i) Jointly in the name of M/s S.K.D. Estates Private Limited, Mauria Udyog Limited, Mr. Vishnu Kumar Sureka, Mrs. Prem Lata Sureka, Mr. Navneet Kumar Sureka, Mrs. Deepa Sureka and Mr. Akhil Kumar Sureka The Instalments due within the period of next twelve months are Rs. 1,25,63,983 (Previous year 1,09,31,456)

(ii) Jointly in the name of M/s S.K.D. Estates Private Limited, Mauria Udyog Limited, Mr. Mrs. Prem Lata Sureka, Mr. Navneet Kumar Sureka, Mrs: Deepa Sureka and Mr. Pramod Kumar Agarwai and Bihariji Infotech Pvt. Ltd. The principal due within the period of next twelve months are Rs. 93,26,396 (Previous year 85,72,742)

c)(i)Term Loan from ICICI Home Finance is a joint loan in the name of M/s. Bihariji Ispat Udyog Ltd. and Shri Navneet Kumar Sureka, where Mauria Udyog Limited , is a Co-applicant. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds for mortgage in respect of the Property at apartment No. PNA011, The Pinnacle In DLF City Gurgaon owned by the company, and also personal guarantee of Mr. Navneet Kumar Sureka, Managing Director of the Company. Since the loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyoug Limited , hence, all the transaction related there to have been recorded in the financial statements of the said co- applicant .The principal due within the period of next 12 months are Rs. 20,04,682 (Previous year Rs.17,61,721).

(ii)Term Loans from ICICI Home Finance are joint loans in the name of M/s. Mauria Udyog Limited ,Shri Navneet Kumar Sureka and Shri Vishnu Kumar sureka. The loans are secured by First and exclusive charge over the property situated at A-24, 24th floor, Tower-Z, A-25, Tower-X and C-4, Tower-Y , sector-50, TGB Meghdutam Noida and personal guarantee of Mr. Navneet Kumar Sureka, Managing Director of the Company and Sh. Vishnu Kumar Sureka chairman of the company. Since the loans were disbursed to/and utilised by the co-applicant M/s Mauria Udyoug Limited , hence, all the transaction related there to have been recorded in the financial statements of the said co- applicant .The principal due within the period of next 12 months are Rs.61,45,698 (Previous year Rs.NIL).

d) Term Loan from Housing Development Finance Corporation Limited is a joint loan in the name of Shri Navneet Kumar Sureka, M/s Bhama Properties Private Limited, Mrs. Prem Lata Sureka,M/s. Mauria Udog Limited, Sh. Vishnu Kumar Sureka and Mrs. Deepa Sureka , where Mauria Udyog Limited , is a Co-applicant. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the agricultural Land measuring 12 Bigha out of Khasara No. 921/1min(1-9),922(5-5)and 923(5-6), Situated at village Rajokari, tehsil Vasant Vihar, New Delhi owned by the M/s Bhama Properties Pvt. Ltd. Since the loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyog Limited , hence, all the transaction related there to have been recorded in the financial statements of the said co- applicant. The instalments due within the period of next 12 months are Rs.67,91,024(Previous Year 65,23,619)

e) Term Loan from HDB Financial Services Limited is a joint loan in the name of M/s. Mauria Udog Limited, Bihariji InfoTech Private Limited, Navneet Kumar Sureka HUF, Mrs. Deepa Sureka, Sh Pramod Kumar Agarwai, Shri Navneet Kumar Sureka and Mrs. Prem Lata Sureka , where Mauria Udyog Limited , is a Co-applicant. The loan is secured by way of equitable mortgage of Property by way of deposit of the title deeds in respect of the Property at Plot No. 662, Udyog Vihar, Phase-V, Gurgaon, Haryana owned by the Bihariji InfoTech Pvt. Ltd. Since the loan was disbursed to/and utilised by the co-applicant M/s Mauria Udyog Limited , hence, all the transaction related there to have been recorded in the financial statements of the said co- applicant. The installments due within the period of next 12 months are Rs. 1,12,91,613 (Previous year 99,46,586).

f) Over Draft /Shipping Loan- Pre Shipment Credit/ Bills Limit- Post Shipment Credit and Non-Fund Base Limits for Letter of Credits, Bank Guarantees and/or Forward Exchange contracts from Karnataka Bank Limited are Secured by way of charge over entire current assets of the Company, both present and future on pari-passu with Allahabad Bank and also collaterally secured by way of Equitable mortgage of Land & Building/lndustrial infrastructure situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, Plant & Machinery and other fixed assets (except vehicles which are financed by other financial institutions) and Personal Guarantees of Shri V.K. Sureka, Managing Director, Shri Navneet Sureka, Director and Shri Akhil Sureka an Ex- Director, Outstanding Bank Guarantees/Letters of Credit were also secured by charge created in favour of the Bank.

g) Working Capital Limits from Allahabad Bank consists of Fund Base Limits of Rs. 20,00,00,000/- (Rupees Twenty Crores only) and Letter of Credit Limit of Rs. 80,00,00,000/- (Rupees eighty Crores only) are secured by way of charge over entire current assets of the Company, both present and future on pari-passu with Karnataka Bank and Allahabad Bank and also collaterally secured by way of Registered mortgage of 4.09 Acre agricultural Land known as Mauria Garden situated at samalka village , tehsil Vasant Vihar, Dist. South West Near Rajokri Flyover NH-8 New Delhi and Personal Guarantees of Shri V.K. Sureka, Chairman, Shri Navneet Sureka, Managing Director and Shri Akhil Sureka, an EX- Director and Corporate Guarantees of M/s Deepak Hotels Pvt; Limited in favour of the Bank . -

h) Working Capital Limits from Indian Overseas Bank consists of Fund Base Limits of Rs. 15,00,00,000/- (Rupees Fifteen Crores only) and Letter of Credit Limit of Rs. 15,00,00,000/- (Rupees Fifteen Crores only) are secured by way of charge over entire current assets of the Company, both present and future on pari-passu with Karnataka Bank and Allahabad Bank and also collaterally secured by way of charge on Land admeasuring 23.34 acres & & Building/lndustrial infrastructure thereon situated at Sohna Road, Mauza Gouchi, Ballabgarh District, Faridabad, and Personal Guarantees of Shri V.K. Sureka, Chairman, Shri Navneet Sureka, Managing Director and Shri Akhil Sureka, an EX- Director.

i) The Auto and Equipments Loans from HDFC , BMW Financial Services Limited and ICICI Bank Limited are secured by way of Hypothecation of the Vehicles/Equipments financed by the Bank and Personal Guarantee of Shri V.K. Sureka, Chairman and Shri Navneet Sureka, Managing Director of the company.

j) Rs.2,77,62,983 Equivalent UAE Dirham 1651575.46 (Previous year Rs. 2,88,91,246 Equivalent UAE Dirham 19,54,752.76 ) in respect of a Forward Lease Housing arrangement with M/s Tamweel PJSC, Dubai, UAE entered by the Dubai Branch of the Company, against which the title deeds of the property of the company at commercial Unit No. 511, Liberty House, DISC, Dubai, UAE, costing Rs.7,16;65,245(Equivalent UAE Dirham 58,50,224.06)has been put as mortgage with the Tam well PJSC.

The total exposure under the aforesaid agreement in foreign currency amounting to UAE Dirham 28,84,000 is repayable in 111 Equated monthly instalments (EMI of UAE Dirham 39,951 per month) along with a pre determined Variable Rental @10% p.a. (termed as profit in the respective agreement with the party) and taxes/levies thereto . Since the amount of variable rental paid together with the State Levy in the form of " Takaful Family Protection contribution" are in the nature of "payment of Interest on borrowings", hence forth the said variable Rental paid during the year amounting to Rs, 27,73,897 Equivalent UAE Dirham 1,65,014.70 (Previous year Rs. 29,63,625 Equivalent UAE Dirham 2,00,515.90) has been shown under the head Interest to others .

The outstanding balance as on the balance sheet date has been converted into reporting currency at the exchange rate prevailing as on that date. The Installments due within the period of next twelve months are Rs.44,41,132 (Equivalent UAE Dirham 4,79,412).

2. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: Current year Previous year Rs. Rs.

a) Letters of Credit/Guarantees/ 248,416,865 304,054,621 Bond issued by Banks

b) Letters of Credit/Guarantees 953,426 NIL /Bond issued by Foreign Banks $ Euro 202,461 Euro 36668

c) Proportionate value of duty 7,777,847 4,394,432 saved in terms of Letter of Undertaking given to Jt. Director General of Foreign Trade under Advance Authorisation Scheme and Export Promotion Capital Goods Scheme, where export obligation can be completed in future years

d) Claims against the Company not Amount Amount acknowledged as debts Unascertained Unascertained

e) Surety Bond issued in favour 200,000 200,000 of Haryana Sales Tax Department Towards VAT and Central Sales Tax Liability of a third party M/s Balaji

3. The Income tax department has carried out a search and seizer operation on 7th of August 2013, U/S 132 of the Income Tax Act, 1956"(Act)", the Income Tax Department have seized a bunch of documents and Cash worth Rs.32Lacs . The cash so siezed has been adjusted as Advance Income tax payments in accounts. However, no discrepancies have been reported by the department till date.

4. As per consistent accounting practice followed by the Company, Excise Duty aggregated approximately to Rs. 61,41,725 (Rs.53,81,796) on finished goods not cleared from factory is neither provided for nor the same as considered for valuation of Closing Stock. This policy has no impact on the profit for the year.

5. Estimated amount of contracts remaining to be executed on Capital accounts Rs. 2,21.10.327 (Rs. 2,97,04,829 ) against which advances made amounting to Rs. 2,49,85,277(Rs. 3,84,60,751).

6. The Company purchased building and plant & machinery in Court Auction for Rs.85,21,000 in earlier years out of which Rs.43.00 Lacs was allocated to Land & Building vide Court Order for registration of properties, the Board of Directors allocated Rs. 10.00 Lacs to Land and Rs.33.00 Lacs to Building respectively and depreciation charged accordingly. Out of plant & machinery so purchased certain machineries have been sold in earlier years in respect of which sale value has been adjusted in the cost of plant & machinery in the respective years.

7. The Company has filed a suit against the Hong-Kong and Shanghai Banking Corporation for realisation of Rs.19,34,730 for expenses incurred in connection with clearing the title of Property which was purchased in Court Auction and other damages/losses suffered by the Company for which no adjustment has been made in the books of accounts.

8.(i) In pursuance of liberal policy of Government to allow parallel marketing of Liquefied Petroleum Gas.

Company started LPG division for marketing of Liquefied Petroleum Gas during the year 1993-1994, but due to unfeasibility, the said division as per an agreement made on 12th August, 1994 had already been transferred to another Company M/s BYGGING INDIA LIMITED and all the expenditures, income and liabilities had been transferred to the said Company from the date of inception to the date of agreement.

(ii) Recovery suit for Rs.32,40,707 filed against Bygging India Ltd.by the dealers of the above referred LPG Division is also pending with the Honorable Delhi' High Court wherein the Company has also been made a party.

9.(i) The Competition Commission of India vide order dated 24/02/2012 in re. Suo Motu case no. 3/2011 against

LPG Cylinders manufacturers has imposed a penalty of Rs. 36,37,86,806 . The Company has preferred an appeal against the said order before the Honorable Competition Appellate Tribunal. The Tribunal in its interim order dated 10/10/2012. has granted a stay order subject to deposit of Rs. 3.64,06,655 being 10% of total demand and and to furnish a Guarantee for balance Rs.32,74,08,126 being 90% of total demand. The Honorable tribunal vide its order dated 23/12/2013 further decided that the aforesaid interim order will stay till the Commission made an final order afresh.

(iii) Claims Includes Rs. NIL (previous Year Rs. 7,02,05,400) in respect of insurance claim lodged on United India Insurance co . limited (New Delhi), for damage caused due to fire broke out on 19/10/2012 in the Terry Towel Unit of the company in Faridabad.

11.In the opinion of the management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Sundry Debtors, Sundry Creditors and Loans and Advances and commission on sales & purchases are however, subject to confirmations and adjustments, if any.

12. Sales is net of:

(i) Gain on Exchange fluctuation (net) Rs. 3,14,91,076(previous year Loss Rs. 46,49,934 ),though in consonance with the accounting policy consistently followed by the company but is in contravention of Accounting Standard AS 11. where the same should have been reported separately.

(ii) Expense on repairs of exported goods outside India Rs. 1,10,93,000 (previous year Rs. nil)

15 RELATED PARTY DISCLOSURE (AS IDENTIFIED BY THE MANAGEMENT), AS REQUIRED BY ACCOUNTING STANDARD 'AS-18' :

1) LIST OF RELATED PARTIES

(a) Where Control Exists:-

(i) Akshi Exports (P) Ltd-.

(ii) Bhama Properties (P) Ltd.

(iii) Bihariji Fancy Fibers & Fabrics Ltd.

(iv) Bihariji Ispat Udyog Ltd.

(v) Bihariji Solar Power Pvt. Ltd.

(vi) Bihariji Vidyut Pvt. Ltd.

(vii) Chakra Exports (P) Ltd.

(viii) Deepak Hotels Private Ltd.

(ix) G L Estates Pvt. Ltd.

(x) J.S.T. Engineering Services Ltd.

(xi) Jotindra Steel & Tubes Ltd.

(xii) JST Solar Energy Pvt. Ltd.

(xiii) JST Solar Vidyut Pvt. Ltd.

(xiv) Magnum Products Pvt. Ltd

(xv) Mauri a Power Generation Pvt. Ltd

(xvi) Mauria Power Projects Pvt. Ltd.

(xvii) Mauria Solar Pvt. Ltd.

(xviii) Puranmal Foods India Pvt. Ltd.

(ixx) Quality Synthetic industries Ltd.

(xx) Ram Forgings Pvt. Ltd.

(xxi) S.K.D. Estates Private Ltd.

(xxii) Saroj Metal Works Pvt. Ltd.

(xxiii) Sri Narayan Steel industries Pvt. Ltd.

(xxiv) Srinarayan Raj Kumar

(xxv) Srinarayan Raj Kumar Merchants Ltd.

(xxvi) Sureka Tubes Industries Pvt. Ltd.

(xxvii) Udayanchal Leasing Exports (P) Ltd.

(xxviii) VL Estates (Pj Ltd.

(xxix) VL Land & Housing Pvt. Ltd.

(xxx) V.K. Flats Pvt. Ltd.

(xxxi) Vaishnoudevi Properties Pvt. Ltd.

(xxxii) Vee Em Infocentre Pvt. Ltd.

(xxxiii) Vee Kay Surgical Pvt. Ltd.

(xxxiv) Bihariji Infotech Pvt.Ltd.

(xxxv) Eurospa Terry Towels Pvt. Ltd.

(xxxvi) Taanz Fashions India Pvt. Ltd

(xxxvii) G.L. Land and Housing Pvt. Ltd

(b) Key Management Personnel

1 Mr, V.K.. Sureka (Managing Director)

2 Mr. N.K., Sureka (Managing Director)

3 Mr. A.K. Sureka (Director)

4 Mr. K. M Pai (Whole Time Director)

(c) Relative of key Management

personnel (with whom transaction have taken place during the

1. Smt. P.L.Sureka (Wife of Chairman)

2. Smt. Deepa Sureka (Wife of Managing Director)

3. Smt. Anuradha Pai (Wife of a Director)

20. Comparative figures for the previous year have been re-grouped re-cast and re-arranged wherever necessary and figures in brackets represent previous year figures.

---

Mar 31, 2013

1. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: Current year Previous year RS. RS.

a) Letters of Credit/Guarantees/Bond issued by Banks 304,054,621 1,163,978,472

b) letters of Credit/Gudrantees/Bond issued by Foreign Banks Euro 36668 Euro 26668

c) Proportionate value of duty saved in terms of Letter of Undertaking 4,394,432 4,394,432 given to

d) Director General of foreign Trade under Advance Authorisation Scheme or promotion Capital Goods Scheme, where expert obligation can in future years Company not Amount Amount acknowledged as debts Unascertained Unascertained

e) need in favour Sales lax Department 200,000 200,000 towards

2 Provision has not been made in accounts in respect the following disputed dues :

Sl. Name of the Statute Amount Nature of dues No RS.

1 Competition Act, 2002 363,786,806 Penalty

(363,786,806)

2 Central Excise Act, 1944 NIL Penalty Service Tax GTA (and Cenvat Credit Rule (361,009) for the Year 2006-07

697.712 Service Tax(GTA)

(697 712)

697.712 Penalty Service Tax(GTA)

(697 712)

577,959 Service Tax Credit Availed

(577,959) on Outward Transport

3 Income Tax Act, 1961 1,273,754 Asst. Year 2003-04

See Note Below Order U/s 263 and 143(3)

See Note Asst. Year 2004-05 Below Order U/s 263 and 143(3)

613,148 Asst. Year 2007-08

(613,148) Order U/s 143(3)

Sl. Name of the Statute From Where Dispute is Pending No

1 Competition Act, 2002 Competition Appellate Tribunal

2 Central Excise Act, 1944 Central Excise and Service Tax (and Cenvat Credit Rule Appellate Tribunal New Delhi

Commissioner (Appeals) Central Excise, Faridabad

Commissioner (Appeals) Central Excise, Faridabad

pending for Adjudication before Deputy Commissioner Central Excise, Faridabad

3 Income Tax Act, 1961 Rectification pending before Dy. Comm. Income Tax ,Cir(7) Kolkata

Rectification pending before Dy. Comm. of Income Tax ,Cir(7) Kolkata

Rectification pending before Dy. Comm. of Income Tax ,Cir(7) Kolkata

Note:

The liability for the Asst, year 2003-04 & 2004-05 in respect of the demand raised by the Income tax department, has been provided , though the Appeal before the Commissioner Appeals are yet to be Disposed off.

3 As per consistent accounting practice followed by the Company, Excise Duty aggregated approximately to Rs. 53,81,796 (Rs.37,32,679) on finished goods not cleared from factory is neither provided for nor the same as considered for valuation of Closing Stock. This policy has no impact on the profit for the year.

4 Estimated amount of contracts remaining to be executed on Capital accounts Rs. 2,97,04,829 (Rs. 4,12,79,084 ) against which advances made amounting to Rs. 3,84,60,751 (Rs. 3,11,48,754).

5 The Company purchased and, building and plant & machinery in Court Auction for Rs.85,21,000 in earlier years out of which Rs.43.00 Lacs was allocated to Land & Building vide Court Order for registration of properties, the Board of allocated Rs. 10.00 Lacs to Land and Rs.33.00 Lacs to Building respectively and depreciation charged Accordingly. Out of plant & machinery so purchased certain machineries have been sold in earlier years in respect which sale value has been adjusted in the cost of plant & machinery in the respective years.

6. Company has filed a suit against the Hong Kong and Shanghai Banking Corporation for realisation of Rs.19,34,730 for expenses incurred in connection with clearing the title of Property which was purchased in Court Auction and other damages/losses suffered by the Company for which no adjustment has been made in the books of accounts.

7 (i) In pursuance of liberal policy of Government to allow parallel marketing of Liquefied Petroleum Gas. Company started LPG division for marketing of Liquefied Petroleum Gas during the year 1993-1994, but due to unfeasibility, the said division as per an agreement made on 12th August,1994 had already been transferred to another Company M/s BYGGING INDIA LIMITED and all the expenditures, income and liabilities had been transferred to the said Company from the date of inception to the date of agreement.

(ii) Recovery suit for Rs.32,40,707 filed against Bygging India Ltd. by the dealers of the above referred LPG Division is also pending with the Honourable Delhi' High Court wherein the Company has also been made a party.

8 (i) The Competition Commission of India vide order dated 24/02/2012 in re. Suo Motu case no. 3/2011 against LPG Cylinders manufacturers has imposed a penalty of Rs. 36,37,86,806 . The Company has preferred an appeal against the said order before the Honourable Competition Appellate Tribunal. The Tribunal in its interim order dated 10/10/2012. has granted a stay order subject to deposit of Rs.3,64,06,655 being 10% of total demand and and to furnish a Guarantee for r balance Rs.32,74,08,126 being 90% of total demand , which were loot from the company's employees On 15/3/2013, in Ghaziabad. A case has been by the Police Department under section 392 of the Indian Penal Code against unnamed persons. investigations an amount of Rs.6.35,000 have been recovered till the signing of the management is hopeful of recovery the balance amount as well, under the circumstances the amount is shown os recoverable and considered good.

in respect of insurance claim lodged on United India Insurance co limited (New Delhi), for damage cased due to fire broke out on 19/10/2012 in the Terry Towel Unit of the company in Faridabad. The Claim lodges is as under and the same has been included in the turnover:

9 The Company is in the process of identifying Micro, Small and Enterprises as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Therefore, it is not possible for the Company to ascertain whether payment to such enterprises has been done within 45 days from the date of acceptance of supply of goods or services rendered by such enterprises and to make requisite disclosure. The disclosure as required under the said act

a; Principal amount due to supplier Not ascertained Not ascertained under MSMED Act

b) Interest due to suppliers on above. N.A. N.A.

c) Any payment made to suppliers beyond appointed date (Section 16 of the Not ascertained Not ascertained

d) Interest due and payable to suppliers under MSMED Act. N.A. N.A.

e) Interest accrued & remaining unpaid as at 31.03.2010 N.A. N.A.

f) Interest remaining due & payable as per Section 23 of the Act. N.A. N.A.

10 In the opinion of the management, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated. The balances of Sundry Debtors, Sundry Creditors and Loans and Advances and commission on sales & purchases are however, subject to confirmations and adjustments, if any.

11 Sales is net of:

(i) Loss on Exchange fluctuation (net) Rs. 46,49,934.22(previous year Gain Rs. 4,02,27,776 ),though in consonance with the accounting policy consistently followed by the company but is in contravention of Accounting Standard AS 11. where the same should have been reported separately.

12. RELATED PARTIES

i) LIST OF RELATED PARTIES

(a) Where Control Exists:-

(i) Akshi Exports (P) Ltd.

(ii) Bhama Properties (P) Ltd.

(iii) Bihariji Fancy Fibers 8, Fabrics Ltd.

(iv) Bihariji Ispat Udyog Ltd.

(v) Bihariji Solar Power Pvt. Ltd.

(vi) Bihariji Vidyut Pvt. Ltd.

(vii) Chakra Exports (P) Ltd.

(viii) Deepak Hotels Private Ltd.

(ix) G L Estates Pvt. Ltd.

(x) J.S.T. Engineering Services Ltd.

(xi) Jotindra Steel & Tubes Ltd.

(xli) JST Solar Energy Pvt. Ltd.

(xiii) JST Solar Vidyut Pvt. Ltd.

(xiv) Magnum Products Pvt. Ltd

(xv) Mauria Power Generation Pvt. Ltd

(xvi) Mauria Power Projects Pvt. Ltd.

(xvii) Mauria Solar Pvt. Ltd.

(xviii) Puranmal Foods India Pvt. Ltd.

(ixx) Quality Synthetic Industries Ltd.

(xx) Ram Forgings Pvt. Ltd.

(xxi) S.K.D. Estates Private Ltd.

(xxii) Saroj Metal Works Pvt. Ltd.

(xxiiij Sri Narayan Steel Industries Pvt. Ltd.

(xxiv) Srinarayan Raj Kumar

(xxv) Srinarayan Raj Kumar Merchants Ltd.

(xxvi) Sureka Tubes Industries Pvt. Ltd.

(xxvii) Udayanchal Leasing Exports (P) Ltd.

(xxviii) VL Estates (P) Ltd.

(xxix) VL Land & Housing Pvt. Ltd.

(xxx) V.K. Flats Pvt. Ltd.

(xxxi) Vaishnoudevi Properties Pvt. Ltd.

(xxxii) Vee Em Info centre Pvt. Ltd.

(xxxiii) Vee Kay Surgical Pvt. Ltd.

(xxxiv) Bihariji Infotech Pvt.Ltd.

(xxxiv) Eurospa Terry Towels Pvt. Ltd.

(b) Key Management Personnel

1 Mr. V.K.. Sureka (Chairman)

2 Mr. N.K.. Sureka (Managing Director)

3 Mr. A.K.. Sureka (Director)

4 Mr. K. M Pai (Whole Time Director)

(c) Relative of key Management personnel (with whom transaction have taken place during the year).

1 Smt. P.L.Sureka (Wife of Chairman)

2 Smt. Deepa Sureka (Wife of Managing Director)

(d) Other related parties NIL

13 Comparative figures for the previous year have been re-grouped re-cast and re-arranged wherever necessary and figures in brackets represent previous year figures.

---

Mar 31, 2012

1. Derivative Instruments and Unhedged Foreign Currency Exposure (i) Forwarded Contract Outstanding at the Balance sheet date.

Particulars of Contract 2011-12 2010-11

Sale Euro to INR ( US$to INR) 5,500,000.00 2,000,000.00

Sale Euro to US ${Euro to INR) - 1,000,000.00



Particulars of Contract Purpose

Sale Euro to INR ( US$to INR) Hedged as expected receivables against future sales

Sale Euro to US ${Euro to INR) Hedged as expected receivables against future sales

The company has entered into Forward contracts to the tune of US$ 55,00,000 (Previous year $ 30,000,000 and 30,000,000 ) for hedging its US Dollar ($) and Indian Rupee [Previous year US Dollar 20,00,000($) and Euro 10,00,000(Rs.)] revenues for a period up to nine months from the date of the Balance Sheet. The Premium paid has been allocated in proportion to the period cover under the balance sheet and future period premium has been carried as prepaid premium on such contracts. Under the said Contracts , the rate of USD INR and Euro INR has been fixed for the entire period of the contract. Valuation of these contracts computed as on March 31,2012 indicates gain/(Loss) of Rs. 2,36,02,500 (previous Year Rs. 11,37,000) which has been provided for and disclosed as exchange fluctuation in the Profit and Loss Account.

2. RELATED PARTY DISCLOSURE (AS IDENTIFIED BY THE MANAGEMENT), AS REQUIRED BY ACCOUNTING STANDARD AS-16' ARE GIVEN BELOW:

I) LIST OF RELATED PARTIES

(a) Where Control Exists: -

(i) Akshi Exports (P) Ltd.

(ii) Bhama Properties (P) Ltd

(iii) Bihariji Fancy Fibers & Fabrics Ltd.

(iv) Bihariji Ispat Udyog Ltd.

(v) Bihariji Solar Power Pvt Ltd.

(vi) Bihariji Vidyut Pvt. Ltd.

(vii) Chakra Exports (P) Ltd.

(viii) Deepak Hotels Private Ltd.

(ix) G L Estates Pvt. Ltd.

(x) J.S.T. Engineering Services Ltd.

(xi) Jotindra Steel & Tubes Ltd.

(xii) JST Solar Energy Pvt Ltd.

(xiii) JST Solar Vidyut Pvt. Ltd.

(xiv) Magnum Products Pvt Ltd

(xv) Mauria Power Generation Pvt Ltd.

(xvi) Mauria Power Projects Pvt. Ltd.

(xvii) Mauria Solar Pvt. Ltd.

(xviii) Puranmal Foods India Pvt. Ltd.

(ixx) Quality Synthetic Industries Ltd.

(xx) Ram Forgings Pvt. Ltd

(xxi) S K.D. Estates Private Ltd.

(xxii) Saroj Metal Works Pvt Ltd.

(xxiii) Sri Narayan Steel Industries Pvt. Ltd.

(xxiv) Sri narayan Raj Kumar

(xxv) Sri narayan Raj Kumar Merchants Ltd.

(xxvi) Sureka Tubes Industries Pvt. Ltd.

(xxvii) Udayanchal Leasing Exports (P) Ltd.

(xxviii) VL Estates (P) Ltd

(xxix) VL Land & Housing Pvt Ltd

(xxx) V.K. Flats Pvt. Ltd.

(xxxi) Vaishnoudevi Properties Pvt Ltd.

(xxxii) Vee Em Into centre Pvt Ltd.

(xxxiii) Vee Kay Surgical Pvt. Ltd

(xxxiv) Bihariji Infotech pvt. Ltd,

(b) Key Management Personnel

1 Mr, V.K.. Sureka (Chairman)

2 Mr N K Sureka (Managing Director)

3 Mr A.K. Sureka (Director) Part Of the year

(c) Relative of key Management personnel (with whom transaction have taken place during the year).

1 Smt. P L Sureka (Wife of Chairman)

2 Smt. Deepa Sureka (Wife of Managing Director)

(d) Other related parties NIL

3. Comparative figures for the previous year have been re-grouped re-cast and re-arranged wherever necessary and figures in brackets represent previous year figures.