Notes to Accounts of Nilachal Refractories Ltd.

Mar 31, 2023

Provision, Contingent Liabilities and Contingent Assets

Provisions involving substantial degree of estimation in measurement are recognized when there is a present obligation as a result of
past events and it is probable that there will be an outflow of resources. Contingent Liabilities are not recognized but are disclosed in
notes. Contingent Assets are neither recognized nor disclosed in the financial statements.

Retirement Benefits :-

(a) Contribution towards Provident Fund is being charged to revenue on accrual basis and is deposited to regional office of the
concerned authority

(b) Provision for gratuity has been made on the method as prescribed in the respective act.

(c) Provision has been made for accrued leave salary due to the employees, computed with reference to un-availed leave of the
employee at the year end.

Deferred Tax :-

Provision for Tax is made for current and deferred taxes. Current taxes is provided on the taxable income using applicable tax rates
and tax laws.Deferred Tax Assets and Liabilities arising on account of timing differential and which are capable of reversal in
subsequent periods are recognized using the Tax rates and Tax Laws that have been enacted or substantively enacted till the date of
the Balance Sheet. Deferred Tax Assets are not recognized unless there is “Virtual Certainty” that Sufficient future taxable income will
be available against which such Deferred Tax Assets will be realized.

Impairment of Assets :-

The carrying amount of assets are reviewed at each balance sheet date, if there is an Indication of impairment based on the internal
and external factors.

The Company have two class of shares i.e. Equity & Preference carrying a nominal value of Rs 10 each and Rs
100 each respectively. Each holder of equity Shares is entitled to one vote per share. The Company shall declare
and pay dividend in Indian Rupees. When the company have distributable profit, the company shall propose
dividend, subject to the approval of shareholders in annual general meeting. In the event of liquidation of the
company, the holders of equity shares will be entitled to receive remaining assets of the company, after
distribution of all prefential amounts. The distribution will be in proportion to the number of equity shares held by
the shareholders. Also the preference shares shall be redeemed only when the company have distributable
profits which would otherwise be available for dividend or out of proceeds of fresh issue of shares made for the
purpose of redemption, hence for the year under review the shares shall not be redeemed

The Company have two class of shares i.e. Equity & Preference carrying a nominal value of Rs 10 each and Rs 100
each respectively. Each holder of equity Shares is entitled to one vote per share. The Company shall declare and pay
dividend in Indian Rupees. When the company have distributable profit, the company shall propose dividend, subject to
the approval of shareholders in annual general meeting. In the event of liquidation of the company, the holders of equity
shares will be entitled to receive remaining assets of the company, after distribution of all prefential amounts. The
distribution will be in proportion to the number of equity shares held by the shareholders. Also the preference shares
shall be redeemed only when the company have distributable profits which would otherwise be available for dividend or
out of proceeds of fresh issue of shares made for the purpose of redemption, hence for the year under review the
shares shall not be redeemed

11% Redeemable Cumulative Preference shares were redeemable before September 1995 by giving six months notice
by such redemption to the holders thereof. However, as per the terms of the Sanctioned Rehabilitation Scheme, the
preference Shares are to be continued with roll over option for another 5 years and no interest is payable during such
rehabilitation period. Accordingly, no provision for any interest has been made during the year. Due to non-availability
of profit, no provision has been made for payment of dividend to the Preference Shareholders; cumulative from the date
of allotment i.e 20th September 1980 upto the due date of redemption amounting to Rs 41.60 Lacs or the dividend
payable thereafter. Further 0% Redeemable Preference Shares shall be subject to redemption when the Company has
distributable profit. Hence, for the year under review the Shares shall not be redeemned

Issue of Shares :- 9,00,000 0% Redemmable Preference Share of Rs. 100/- at par has been issued and allotted by the
Company by conversion of unsecured Loans during the financial year ended on 31st March 2017.The Preference
Shares shall from the date of allotment rank pari-passu in all respects with all other preference shares of similar
category in the Company then on issue.The Preference shares shall be redeemed before the expiry of 20 years when
the company has distributable profits and upon mutual consent of the allottees and company with an option to redeem
at the sole discretion of the company at any time after the expiry of thirty six month from the date of the allotment, at par
or at a premium out of the distributable profits of the company.

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Mar 31, 2018

NOTES TO ACCOUNTS

	As At 31.03.2018	As At 31.03.2018	As At 31.03.2018
	Rs. In Lakhs	Rs. In Lakhs	Rs. In Lakhs
Notes No. -30
(a) Contingent Liabilties
Sales Tax	96.28	96.28	96.28
Water Charges	7.14	7.14	7.14
Suit Pending against the Company	9.94	9.94	9.94
Orissa Entry Tax	4.17	4.17	4.17
Fine imposed by BSE not acknowledged by the Co.	-	-	22.22
(b) Commitments
Estimated amount of contract remaining to be executed
on Capital account and not provided for Tangible asset;	1,238.93	1,238.93	1,238.93

	31-Mar-18		31-Mar-17		31-Mar-16
{c) Details of unhedged foreign currency Exposures	Receivable/ (Payable)	Receivable/ (Payable)	Receivable/ (Payable)	Receivable/ (Payable)	Receivable/ (Payable)	Receivable/ (Payable)
	Rs	$	Rs	$	Rs	$
Payable in foreign exchange	(1,99,80,067)	(3,03,610)	(1,99,64,788)	(3,03,610)	(2,01,24,777)	(3,03,610)
Receivable in foreign exchange	-	-	-	-	-	-
	(1,99,80,067)	(3,03,610)	(1,99,64,788)	(3,03,610)	(2,01,24,777)	(3,03,610)
	Rs	€	Rs	€	Rs	€
Payable in foreign exchange	-	-	(18,85,362)	(27,922)	(18,85,362)	(27,922)
		31-Mar-18		31-Mar-17		31-Mar-16
(d) Value of imports calculated on CIF basis :		Rs		Rs		Rs
Raw materials		.		.		.
(e) Expenditure in foreign currency :
Royalty
Professional and consultation fees		.		.		.
Interest		-		-		-
Other matters		-		-		-

(f) Details of consumption of imported and indigenous items	31-Mar-18		31-Mar-17		31-Mar-16
	%	Rs	%	Rs	%	Rs
Imported
Raw materials	0.00%	-	0.00%	-	12.49%	2,89,611
Components	0.00%	-	0.00%	-		-
Spare parts	0.00%	-	0.00%	-		-
		-		-		2,89,611
Indigenous
Raw materials	100.00%	22,57,752	100.00%	14,69,315	87.51%	20,29,215
Components		-		-		-
Spare parts		-		-		-
		22,57,752		14,69,315		20,29,215
		31-Mar-18		31-Mar-17		31-Mar-16
(g) Earnings in foreign currency :		Rs		Rs		Rs
Export of finished goods calculated on FOB basis		0		0		0
		0		0		0
(h) Earnings per share :
(a) Continuing operations
Net profit / (loss) for the year from continuing operations
attributable to the equity shareholders		(1,64,67,211)		62,15,568		(4,75,43,714)
Weighted average number of equity shares		2,03,61,450		2,03,61,450		2,03,61,450
Par value per share		10		10		10
Earnings per share from continuing operations - Basic & Dilutee		(0.81)		0.31		(2.33)
(b) Total operations
Net profit / (loss) for the year from continuing operations
attributable to the equity shareholders		(1,64,67,211)		62,15,568		(4,75,43,714)
Weighted average number of equity shares		2,03,61,450		2,03,61,450		2,03,61,450
Par value per share		10		10		10
Earnings per share from continuing operations - Basic & Dilutee		(0.81)		0.31		(2.33)

(i) Details of related parties

Description of relationship	Names of related parties
Ultimate Holding Company	N.A.
Holding Company	N.A.
Ultimate Holding Company	N.A.
Subsidiaries	N.A.
Fellow Subsidiaries to be given	N.A.
Associates	N.A.
Key Management Personnel (KMP)	Mr. Vimal Prakash, Mr .Vijay Kumar Agarwal Mr. S Asokan, Mr. Aditya PurohiL Mr. Avik Chakraborty, Mr. Tapas Tirtha, Mr. Krishna Sriarma
Relatives of KMP	Kamal Praksh(HUF). Raj Rani Agarwal, Vimal Praksh(HUF), Sushil Kumar Agrawal . May International Track Pvt Ltd..Ambarella Cap Fin Private Limited NRL Claybum Ltd.,
Company in which KMP / Relatives of KMP can exercise significant influence	P P Supliers & Agencies (P) Ltd., Pushpak Dealcom (P) Ltd, Unimark International (P) Ltd, Think Finance Pvt. Ltd.. Bhumika Vintrade Pvt. Ltd., Capricorn Complex Pvt. Ltd, Chaturang Commercial Pvt. Ltd, Doon Valley Finance & Leasing Ltd, Subhankar Mercantile Pvt. Ltd.

Note: Related parties have been identified by the Management.

Details of related party transactions during the year ended on 31st March, 2018 and balances outstanding as at 31st March, 2017 (Figures in bracket pertain to the previous year)

Particulars	Relatives of KMP			KMP			En titles in which KMP / relatives of KMP have significant influence
	2018	2017	2016	2018	2017	2016	2018	2017	2016
Sales
NRL Claybum Ltd							4974000	6700941	600000
Remuneration
S Ashokan				94067	70105	894585
A Purohit					0	331650
Avik Chakraborty				56100
Tapas Tirtha				52254
Krishna Sriarma				85670
Interest on Loans
Ambarella Cap Fin Private Limited							2200321	992454	65552
Think Finance Pvl. Ltd.							2524108
Loan Taken
Vimal Prakash						9907500
P P Supliers & Agencies (P) Ltd.								32500708	11300000
Pushpak Dealcom (P) Ltd							24950000	550000	23S2500
Sushil Kumar Agrawal		3900000	0
Vijay Kumar Ageawal					5150708	0
Ambarella Cap Fin Private Limited							455000	28818917	11625000
Loan Repaid
Bhumika Vintrade Pvt. Ltd.							11800000
Capricorn Complex Pvt. Ltd.							4000000
Chaturang commercial Pvt. Ltd.							3500000
Doon Valley Finance & Leasing Ltd.							3250000
Subhankar Mercantile Pvt. Ltd.							2400000
Ambarella Cap Fin Private Limited								6625000	8750000
P P Supliers & Agencies (P) Ltd.								1300000	0
Pushpak Dealcom (P) Ltd								0	2132500
Vimal Prakash					52125000	40032500
Issue of 0% Preference Shares by conversion of Loan taken
Kamal Praksh HUF								16750000
P P Supliers & Agencies (P) Ltd.								10880000
Vimal Prakash HUF					16750000

(j) Voluntary Retirement Scheme (VRS) was introduced under which terminal date of employment was fixed as 31st July 2002. Provision for unpaid compensation has been made for the employees who have not taken the same. Modified Golden Handshake Schemes containing similar benefits as that of Voluntary Separation Scheme were introduced (in respect of ex-employees who were separated under the Golden Handshake Scheme 3 & 4) wherein cut off date for computation of compensation was kept as 31st July 2002. Provision for unpaid lump sum payment has been made for the ex-employees who have not taken the same.

(k) Confirmation of Parties concerned for amount due, receivable from and/or payable to them as per the accounts of the company were not received. Necessary adjustment, if any, shall be done at the time of settlement of respective account.

(I) The financial result of the company pertains to operations related to refractories which is the only significant business segment of the Company as per AS-17 issued by the ICAI.

(m) There are no Micro, Small and Medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2018. The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors

(n) In view of unabsorbed losses and unabsorbed depreciation brought forward, there being no tax liability, hence no provision for current Income Tax have been made during the year.

(o) Ind AS has become effective from 1 April, 2018 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year''s figures have been regrouped / rearranged / recasted wherever considered necessary.

(p) In the opinion of the management, aggregate value of current assets and other loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the balance sheet.

As per our Report of even date		For and on behalf of the Board of Directors
For T More & Company
Firm Registration No. 327844e
Chartered Accountants			Vijay Kr Agarwal
			Director
			DIN: 00121351
(Tanisha More)
(Proprietor)
(M. No. 301569)
	Krishna Sharma	Saravanan Asokan	Niraj Jalan
Place: Kolkata	Company Secretary	Whole Time Director	Director
Date: 30/05/2018	M.No. 50762	DIN: 07019583	DIN: 00551970

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Mar 31, 2015

1. Voluntary Retirement Scheme (VRS) was introduced under which terminal date of employment was fixed as 31st July 2002. Provision for unpaid compensation has been made for the employees who have not taken the same. Modified Golden Handshake Schemes containing similar benefits as that of Voluntary Separation Scheme were introduced (in respect of ex-employees who were separated under the Golden Handshake Scheme 3 & 4) wherein cutoff date for computation of compensation was kept as 31st July 2002. Provision for unpaid lump sum payment has been made for the ex-employees who have not taken the same.

2. Confirmation of Parties concerned for amount due, receivable from and/or payable to them as per the accounts of the company has not been received. Necessary adjustment, if any, shall be done at the time of settlement of respective account.

3. The financial result of the company pertains to operations related to refractoriness which is the only significant business segmentof the Company as per AS-17 issued by the ICAL

4. There are no Micro, Small and Medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31,2015. The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

5. In view of unabsorbed losses and unabsorbed depreciation brought forward, there being no tax liability no provision for current Income Tax have been made during the year.

6. The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / rearranged / recanted wherever considered necessary. Figure have been rounded off to the nearest rupee.

7. During the year under review the company has not charged depreciation on fixed assets of the company as the Company was not in production.

8. In the opinion of the management, aggregate value of current assets and other loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the balance sheet.

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Mar 31, 2014

The rights, preference and restrictions including restrictions on the distribution of dividends and the repayment of capital:

The Company have two class of shares i.e. Equity & Preference carrying a nominal value of Rs 10 each and Rs 100 each respectively. Each holder of equity Shares is entitled to one vote per share. The Company shall declare and pay dividend in Indian Rupees. When the company have distributable profit, the company shall propose dividend, subject to the approval of shareholders in annual general meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all prefential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders. Also the preference shares shall be redeemed only when the company have distributable profits which would otherwise be available for dividend or out of proceeds of fresh issue of shares made for the purpose of redemption, hence for the year under review the shares shall not be redeemed.

"11% Redeemable Cumulative Preference shares were redeemable before September 1995 by giving six months notice by such redemption to the holders thereof. However, as per the terms of the Sanctioned Rehabilitation Scheme, the preference Shares are to be continued with roll over option for another 5 years and no interest is payable during such rehabilitation period. Accordingly, no provision for any interest has been made during the year. Due to non-availability of profit, no provision has been made for payment of dividend to the Preference Shareholders; cumulative from the date of allotment i.e 20th September 1980 upto the due date of redemption amounting to Rs 41.60 Lacs or the dividend payable thereafter. Further 0% Redeemable Preference Shares shall be subject to redemption when the Company has distributable profit. Hence, for the year under review the Shares shall not be redeemned.

1.1.1 Voluntary Retirement Scheme (VRS) was introduced under which terminal date of employment was fixed as 31st July 2002. Provision for unpaid compensation has been made for the employees who have not taken the same. Modified Golden Handshake Schemes containing similar benefits as that of Voluntary Separation Scheme were introduced (in respect of ex-employees who were separated under the Golden Handshake Scheme 3 & 4) wherein cut off date for com- putation of compensation was kept as 31st July 2002. Provision for unpaid lump sum payment has been made for the ex-employees who have not taken the same.

1.1.2 Confirmation of Parties concerned for amount due, receivable from and/or payable to them as per the accounts of the company has not been received. Necessary adjustment, if any, shall be done at the time of settlement of respective ac- count.

1.1.3 The financial result of the company pertains to operations related to refractories which is the only significant business segment of the Company as per AS-17 issued by the ICAI.

1.1.4. There are no Micro, Small and Medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2012. The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors

1.1.5 In view of unabsorbed losses and unabsorbed depreciation brought forward , there being no tax liability no provision for current Income Tax have been made during the year.

1.1.6 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / rearranged / recasted wherever considered necessary. Figure have been rounded off to the nearest rupee.

1.1.7 The factory of the Company was closed due to declaration of Lockout by the management from 24th March 2014 till 19th December 2014 due to unprecented labour unrest and agitation

1.1.8 In the opinion of the management, aggregate value of current assets and other loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the balance sheet.

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Mar 31, 2013

1.1.1 Voluntary Retirement Scheme (VRS) was introduced under which terminal date of employment was fixed as 31st July 2002. Provision for unpaid compensation has been made for the employees who have not taken the same. Modified Golden Handshake Schemes containing similar benefits as that of Voluntary Separation Scheme were introduced (in respect of ex-employees who were separated under the Golden Handshake Scheme 3 & 4) wherein cut off date for computation of compensation was kept as 31 st July 2002. Provision for unpaid lump sum payment has been made for the ex-employees who have not taken the same.

1.1.2 Confirmation of Parties concerned for amount due, receivable from and/or payable to them as per the accounts of the company has not been received. Necessary adjustment, if any, shall be done at the time of settlement of respective account.

1.1.3 The Financial result of the Company pertains to operations related to refractories which is the only significant business segment of the Company as per AS-17 issued by the ICAI.

1.1.4 There are no Micro, Small and Medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31,2013. The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the auditors.

1.1.5 In view of unabsorbed losses and unabsorbed depreciation brought forward , there being no tax liability no provision for current Income Tax have been made during the year.

1.1.6 Previous year''s figures have been regrouped / rearranged / recasted wherever considered necessary. Figure have been rounded off to the nearest rupee.

1.1.7 In the opinion of the management, aggregate value of current assets and other loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the balance sheet.

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Mar 31, 2012

1.1.1 Voluntary Retirement Scheme (VRS) was introduced under which terminal date of employment was fixed as 31sl July 2002. Provision for unpaid compensation has been made for the employees who have not taken the same. Modified Golden Handshake Schemes containing similar benefits as that of Voluntary Separation Scheme were introduced (in respect of ex-employees who were separated under the Golden Handshake Scheme 3 & 4) wherein cut off date for computation of compensation was kept as 31sl July 2002. Provision for unpaid lump sum payment has been made for the ex-employees who have not taken the same.

1.1.2 Confirmation of Parties concerned for amount due, receivable from and/or payable to them as per the accounts of the company has not been received. Necessary adjustment, if any, shall be done at the time of settlement of respective account.

1.1.3 The financial result of the company pertains to operations related to refractories which is the only significant business segment of the Company as per AS-17 issued by the 1CAI.

1.1.4 There are no Micro, Small and Medium enterprises to whom the company owes dues, which are outstanding for more than 45 days as at March 31, 2012. The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available wifh the company. This has been relied upon by the auditors.

1.1.5 In view of unabsorbed losses and unabsorbed depreciation brought forward , there being no tax liability no provision for current Income Tax have been made during the year.

1.1.6 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / rearranged / recasted wherever considered necessary. Figure have been rounded off to the nearest rupee.

1.1.7 In the opinion of the management, aggregate value of current assets and other loans and advances on realization in the ordinary course of business will not be less than the amount at which these are stated in the balance sheet.

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Mar 31, 2011

1. 1 a) The Hon'ble BIFR by order dated 11/11/2010 has had reviewed the position of the Company and decided that the Company has ceased to be a sick indusial Company within the meaning of section 3(1 )(o) of the SICA and have discharged the Company from the purview of SICA/BIFR.

b) Pursuant to Para No. 13.13. (2) of the Order dated 06/12/2005of the Hon'ble BIFR, the new promoters have brought in Unsecured loan amounting to Rs. 2655 Lacs (P. Y. Rs. 920.65 Lacs) to meet the rehabilitation cost. Since the said amount brought in by the Promoters is in compliance with the order dated 06/12/2005 of the Hon'ble BIFR, the same is not covered under Public Deposit pursuant to Clause 2(b) (xi) of the Companies (Acceptance of Deposits) Rules, 1975..

2) a) 11 % Redeemable Cumulative Preference shares were redeemable before September 1995 by giving six months notice by such redemption to the holders thereof. However, as per the terms of the Sanctioned Rehabilitation Scheme, the preference Shares are to be continued with roll over option for another 5 years and no interest is payable during such rehabilitation period. Accordingly, no provision for any interest has been made during the year.

Due to non-availability of profit, no provision has been made for payment of dividend to the Preference Shareholders; cumulative from the date of allotment i.e 20th September 1980 upto the due date of redemp- tion amounting to Rs. 41.60 Lacs or the dividend payable thereafter.

3) The total unsecured loan includes Rs. 67 Lacs (previous year Rs. 60 lacs) taken from directors of the Company.

4) Government of Orissa had acquired 8.73 acres of unutilized portion of land of the Company for which the cost of the land has been proportionately reduced. Since the Government had not intimated the acquisi- tion compensation of the land, surplus/ deficit will be recognized in revenue on receipt of such intimation from the Government.. It was found out during the year that the relevant department of the Government of Orissa has still not recorded the acquisition in their record.

5) Voluntary Retirement Scheme (VRS) was introduced under which terminal date of employment was fixed as 31st July 2002. Provision for unpaid compensation has been made for the employees who have not taken the same. Modified Golden Handshake Schemes containing similar benefits as that of Voluntary Separation Scheme were introduced (in respect of ex-employees who were separated under the Golden Handshake Scheme 3 & 4) wherein cut off date for computation of compensation was kept as 31 st July 2002. Provision for unpaid lump sum payment has been made for the ex-employees who have not taken the same.

6) Confirmation of Parties concerned for amount due, receivable from and/or payable to them as per the accounts of the company has not been received. Necessary adjustment, if any, shall be done at the time of settlement of respective account.

7) The financial result of the company pertains to operations related to refractories which is the only significant business segment of the Company as per AS-17 issued by the ICAI.

8) There are no micro, small and medium enterprises to whom the company owes dues., which are outstanding for more than 45 days as at March 31, 2011 excepting as mentioned below. The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. The name of MSM Enterprises Units to whom amount in excess of Rs. 1.00 Lacs are due for more than 45 days are given below.:

Name of the Company Amount (Rs.)

Biswakarma Fabricators 2.63 lacs

9) As per practice followed/adopted, excise duty payable on finished goods held in stock is neither included in expenditure nor considered in valuing such stocks, but is accounted for on clearance of goods from factory. This has however no impact on the Profit & Loss Account of the company.

10) Loans and advances include Rs. 6.53 lacs (Previous Year Rs. 6.53 Lacs) collected by Sales Tax & Central Excise authorities against demand not acknowledged by the Company as a debt. The above amounts are included in the figure disclosed under item 12.3.1 of this schedule.

11.1) Contingent Liabilities not provided.

2010-11 2009-10 (Rs. in Lacs) (Rs. in Lacs)

Counter Guarantee given to Bank for Bank Guarantee 89.61 103.70

12. Related Party Disclosures:

12.1 List of Related Parties where control exists :- Nil

13. Salaries, Wages and Bonus includes Remuneration paid to 1 (One) Whole Time Director (Previous year One whole time Directors) amounting to Rs. 11.21 Lakhs for the financial year 2010 -11 (Previous year Rs. 7.18 Lakhs) as approved by the Shareholders.

14. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 1992.27 lakhs (Previous year Rs. 1875.93 lakhs. Advance paid for Capital Goods Rs. 1349.94 lakhs (Previous year Rs. 69.37 lakhs).

15. In view of unabsorbed losses and unabsorbed depreciation brought forward , there being no tax liability no provision for current Income Tax have been made during the year.

16. Previous year's figures have been regrouped, rearranged and recasted wherever found necessary.

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Mar 31, 2010

1 a) In pursuant to order of the Honble B1FR dt: 06.12.2005 the Rehabilitation Scheme is under implementation.

b) Pursuant to Para No. 13.13. (2) of the Order of the Honble BIFR, the new promoters have brought in Unsecured loan amounting to Rs. 920.65 Lacs (P.Y. 330.35 Lacs) to meet the rehabilitation cost. Since the said amount brought in by the Promoters in compliance with the order of the Honble BIFR, the same is not covered under Public Deposit pursuant to Clause 2(b) (xi) of the Companies (Acceptance of Deposits) Rules, 1975.

2) a) 11 % Redeemable Cumulative Preference shares were redeemable before September 1995 by giving six months notice by such redemption to the holders thereof. However, as per the terms of the Sanctioned Rehabilitation Scheme, the preference Shares are to be continued with roll over option for another 5 years and no interest is payable during such rehabilitation period. Accordingly, no provision for any interest has been made during the year.

Due to non-availability of profit, no provision has been made for payment of dividend to the Preference Shareholders; cumulative from the date of allotment i.e 20th September 1980 upto the due date of redemption amounting to Rs. 41.60 Lacs or the dividend payable thereafter.

b) The Company has during the year converted unsecured loan of Rs.990 Lacs taken from Promoters and its Associates in earlier and current years into 990000 numbers of 0% redeemable preference shares of Rs. 100/-each.

3) The total unsecured loan includes Rs 60.00 Lacs (previous yearRs.205.35) taken from directors of the Company.

4) Government of Orissahave acquired 8.73 acres of unutilized portion of land of the Company for which the cost of the land has been proportionately reduced. Since the Government have not intimated the acquisition compensation of the land, surplus/ deficit will be recognized in revenue on receipt of such intimation from the Government.

5) Voluntary Retirement Scheme (VRS) was introduced under which terminal date of employment was fixed as 31a July 2002. Provision for unpaid compensation has been made for the employees who have not taken the same. Modified Golden Handshake Schemes containing similar benefits as that of Voluntary Separation Scheme were introduced (in respect of ex-employees who were separated under the Golden Handshake Scheme 3 & 4) wherein cut off date for computation of compensation was kept as 31st July 2002. Provision for unpaid lump sum payment has been made for the ex-employees who have not taken the same.

6) Confirmation of Parties concerned for amount due, receivable from and/or payable to them as per the accounts of the company has not been received. Necessary adjustment, if any, shall be done at the time of settlement of respective account.

7) The financial result of the company pertains to operations related to refractories which is the only significant business segment of the Company as per AS-17 issued by the ICAI.

8) There are no micro, small and medium enterprises to whom the company owes dues., which are outstanding for more than 45 days as at March 31,2010 excepting as mentioned below. The above information regarding micro, small and medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company. The name of MSM Enterprises Units to whom amount in excess of Rs. 1.00 Lacs are due for more than 45 days are given below.:

9) As per practice followed/adopted, excise duty payable on finished goods held in stock is neither included in expenditure nor considered in valuing such stocks, but is accounted for on clearance of goods from factory. This has however no impact on the Profit & Loss Account of the company.

10) Loans and advances include Rs. 6.53 lacs (Previous Year Rs. 8.11 Lacs) collected by Sales Tax & Central Excise authorities against demand not acknowledged by the Company as a debt. The above amounts are included in the figure disclosed under item 12.3.1 of this schedule.

11.1) The Company does not acknowledge further claim of landowners against acquired land and the same is being contested in appropriate Court of law.

11.2) Contingent Liabilities not provided.

2009-10 2008-09 (Rs.in Lacs) (Rs.in Lacs)

Counter Guarantee for Bank Guarantee issued 103.70 65.31



12. Salaries, Wages and Bonus includes Remuneration paid to 1 (One) Whole Time Director (Previous year One whole time Directors) amounting to Rs. 7.18 Lakhs for the financial year 2009 -10 (Previous year Rs.2.25 Lakhs) as approved by the Shareholders.

13. Estimated amount of contracts remaining to be executed on capital account and not provided for Rs. 1875.93 lakhs (Previous year NIL). Advance paid for Capital Goods Rs.69.37 Lacs.

14. Previous years figures have been regrouped and rearranged wherever necessary.