Notes to Accounts of Shree Metalloys Ltd.

Mar 31, 2015

1. CC A/C 0224008700005680 - Rs.50,781,422 ( PY Rs. 58,458,595) & Buyers Credit Rs. 21,74,228 ( P Y Nil) are secured by way of hypothecation of stock and book debts and Equitable Mortgage of immovable properties of Guarantors

2. Key Managerial Personnel & Related Parties Disclosures:

S. No. Name of the Related Party Nature of Relationship

1. Pratik R Kabra Chairman & Managing Director

2. Jogesh D. Choksi Executive Director

3. Kabra Agro Farms Pvt. Ltd. Under the same Management

4. Shree Extrusions Limited Under the same Management

5. Mercury Metals Limited Associate Concern

6. Metal Alloys Corporation Dirctor's Partnership Firm

7. Ramprakash L. Kabra Director's Relative

8. Radheshyam L. Kabra Director's Relative

Details of transactions made between the company and related parties and outstanding balances as on 31st March, 2015.

The effect of Deferred Tax Liability during the year amounting to Rs. 4,75,345 (Previous Year Deferred Tax Assets Rs. 10,909) is taken as Deferred Tax in the Profit & Loss Account.

3. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated at approximate value, if realized in the ordinary course of business. The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

4. Balances of Sundry Debtors, Sundry Creditors, Unsecured loans, Loans & advances are subject to their confirmation.

5. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has been determine 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.

6. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

8. Segment Reporting:

The company's primary business is trading of metals, On the basis of Accounting Standard On "Segment Reporting" [(AS-17) issued by the Institute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of AS-17 in this regard are not applicable. There being no business outside India, the entire business has been considered as single geographic segment.

9. All the assets have been physically verified by the management during the year and also there is a regular programme of verification which, in our opinion is reasonable having regards to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification; hence no provision for impairment of assets has been made in accordance to AS-28 as prescribed by the Institute of Chartered Accountants of India.

10. Due to changes for rate of depreciation in Schedule II of Companies Act 2013 over the useful life of Assets, Company has changed its method of depreciation from written down method to straight line method of depreciation. During the year, Plant and Machineries were capitalized on 19.07.2014 and manufacturing activity has been started by Company, job work has been done for Company under the same Management, Hence depreciation has been provided on pro-rata basis for straight line method for the useful lives of assets.

11. Investments in shares of listed companies have been shown under unquoted Investment, due to no transaction in the stock exchange during the year. No provision has been made for the possible diminution in the value of shares held as investment.

12. As per explanation and information provided by management, there are no transactions in bank for Bhuj Mercantile Bank Limited, hence bank statement is not available however in absence of bank statement or bank confirmation, we are unable to verify for bank transactions, if any.

43. The previous year figures have been regrouped/ reclassified wherever necessary to make them comparable to current year figures.

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Mar 31, 2014

1. Contingent Liability

There is no contingent liability arised/ accrued during the year, in the opinion of management,

2. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated at approximate value, if realized in the ordinary courseof business. The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

3. Balances of Sundry Debtors, Sundry Creditors, Unsecured loans, Loans & advances are subject to their confirmation.

4. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has been determineto 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. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

6. Segment Reporting:

The company''s primary business is trading of metals, On the basis ofAccounting Standard On"Segment Reporting" [(AS-17) issued by thelnstitute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of AS-17 in this regard are not applicable.There being no business outside India, the entire business has been considered as single geographic segment.

7. All the assets have been physically verified by the management during the year and also there is a regular programme of verification which, in our opinion is reasonable having regards to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification; hence no provision for impairment of assets has been made in accordance to AS-28 as prescribed by the Institute of Chartered Accountants of India.

8. Investmentsin Equity Shares of Gujarat State Financial Corporation Ltd Rs. 10.48 Lacshas been written off during the financial year, as the same is not recoverable due to partly paid up and forfeited by GSFC.

9. Investments in shares of listed companies have been shown under unquoted investment, due to no transaction in the stock exchange during the year.Noprovision has been made for the possible diminution in the value of shares held asinvestment.

10. Advancesof Rs.3.25 lacs with Ahmedabad Stock Exchange and Rs.20.50 lacs with Vadodara Stock Exchange Ltd have been written off during the year, as these are not recoverable.

11. Minimum electricity charges of Rs. 19,44,808/- charged by PGVCL in earlier years, has been written back in current year as Company won legal case against PGVCL.

12. Inspite of capitalization of Plant & Machineries in the year 2009-10, Company has notprovided Depreciation on Plant &Machinery during the year also, as production has not been started yet,Management has initiated to re-start plant operations and Rs. 5,13,525/- has been incurred during the year, which has been shown as capital work in progress. Advances has been given for Rs. 1.40 lacs for capital expenditure, and approximately Rs. 20.00 lacswill be incurred for capital expenditure to start the manufacturing activity.

13. The previous year figures have been regrouped/ reclassified wherever necessary to make them comparable to current year figures.

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Mar 31, 2013

1. Contingent Liability

There is no contingent liability arised/ accrued during the year, in the opinion of management,

2. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated at approximate value, if realized in the ordinary course of business. The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

3. Balances of Sundry Debtors, Sundry Creditors, Unsecured loans, Loans & advances are subject to their confirmation.

4. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has been determine 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. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

6. Segment Reporting:

The company''s primary business is trading of metals, On the basis of Accounting Standard On "Segment Reporting" [(AS-17) issued by the Institute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of AS-17 in this regard are not applicable. There being no business outside India, the entire business has been considered as single geographic segment.

7. All the assets have been physically verified by the management during the year and also there is a regular programme of verification which, in our opinion is reasonable having regards to the size of the company and the nature of its assets. No material discrepancies were noticed on such verification; hence no provision for impairment of assets has been made in accordance to AS-28 as prescribed by the Institute of Chartered Accountants of India.

8. Investments in Equity Shares of Gujarat State Financial Corporation Ltd are considered at cost. These shares (Face Value Rs.10) are partly paid up shares and allotment money of Rs. 5 /- per shares has not been paid. Further these shares are not in the name of the company. No provision has been made for possible diminution in the value of shares.

9. Certain investments in shares of listed companies have been shown under unquoted investment, due to no transaction in the stock exchange during the year. No provision has been made for the possible diminution in the value of shares held as investment.

10. Advances include a sum of Rs.3.25 lacs with Ahmedabad Stock Exchange and Rs.20.50 lacs with Vadodara Stock Exchange Ltd have been treated as deposits since long. The nature and justification of such deposits are not available, however according to management these are recoverable/realizable.

11. Company has started its production on 24.03.2010 for job work on D G Set, which was stopped immediately due to some technical fault in production through D G Set and non release of power by Paschim Gujarat Vij Company Limited (PGVCL), There is dispute with Paschim Gujarat Vij Company Limited for the release order of 550 KVA HT Electricity Connection. Company has not received release order for power and PGVCL has started raising its minimum charges bill on the connection, Company has approached to Consumer Grievances Redressal Forum, to challenge the validity of minimum charge bill and not receipt of release order for power, and got decision in the favor, however PGVCL has approached to Hon''ble High Court of Gujarat against the said order, and Hon''ble High Court of Gujarat has remanded back the matter to Electricity Ombudsman for detail reasoned order, now matter is pending with Electricity Ombudsman, Gujarat, However Company has shown liability for electricity expenses for minimum charges as per PGVCL''s Electricity Bill due to non-payment being disputed matter.

12. Company has not provided any Depreciation on Plant & Machinery during the year, as production has not started yet, inspite of capitalization of Plant & Machinery in the year 2009-10, Depreciation charged in the year 2009- 10 was reversed back in next year i.e. 2010-11.

13. The previous year figures have been regrouped/ reclassified wherever necessary to make them comparable to current year figures.

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Mar 31, 2012

I. Balances of Sundry Debtors, Sundry Creditors, Loans and Advances are subject to their confirmation.

ii. Managerial Remuneration paid or payable during the financial year is as under.

iii. Investments in Equity Shares of Gujarat State Financial Corporation Ltd are considered at cost. These shares (Face Value Rs.10) are partly paid up shares and allotment money of Rs. 5 /- per shares has not been paid. Further these shares are not in the name of the company. No provision has been made for possible diminution in the value of shares.

iv. Certain investments in shares of listed companies have been shown under unquoted investment, due to no transaction in the stock exchange during the year. No provision has been made for the possible diminution in the value of shares held as investment.

v. Advances include a sum of Rs.3.25 lacs with Ahmedabad Stock Exchange and Rs.20.50 lacs with Vadodara Stock Exchange Ltd have been treated as deposits since long. The nature and justification of such deposits are not available, however according to management these are recoverable/realizable.

vi. Company has started its commercial production on 24.03.2010 in previous year on job work basis on D G Set, as power connection was not released,however power bills for connection load has been issued by PGVCL, Company has written to PGVCL, since no matter has been resolved, Company filed a case in Consumer forum at Rajkot for the disputed amount between them. Due to non release of Power and some technical fault in production thorugh D G Set, Company stops its production activity. Changes in configuaration of machines has been done during the year, however due to non release of power, management decided to kept plant idle until power release and settlement of dispute with PGVCL of Rs 7,52,453/- (upto March 2011) Company has not provided any depreciation during the year on the plant & machinery, Inspite of dispute, expenses for electiricity expenses has been accounted and shown as liability of the Company.

vii. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

viii. Segment Reporting :

The company's primary business is trading of metals, On the basis of Accounting Standard On " Segment Reporting" [(AS-17) issued by the institute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of As-17 in this regard are not applicable.

There being no business outside India, the entire business has been considered as single geographic segment.

ix. All the Assets have been verified by the management during the year. There is a regular program of verification. No material discrepancies were noticed on such verification. Provision for impairment of assets has not been made in accordance to AS -28 as prescribed by the Institute of Chartered Accountants of India. In the opinion of Management, it was not possible to ascertain impairment, if any.

x. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated approximate value, if realized in the ordinary course of business .The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

xi. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has 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.

xii. The previous year's figure have been regrouped/ reclassified wherever necessary to make them comparable to current year's figure.

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Mar 31, 2010

I. Balances of Sundry Debtors, Sundry Creditors, Loans and Advances are subject to their confirmation.

v. Investments in Equity Shares of Gujarat State Financial Corporation Ltd are considered at cost. These shares (Face Value Rs.10) are partly paid up shares and allotment money of Rs. 5 /- per shares has not been paid. Further these shares are not in the name of the company. No provision has been made for possible diminution in the value of shares.

vi. Certain investments in shares of listed companies have been shown under unquoted investment, due to no transaction in the stock exchange during the year. No provision has been made for the possible diminution in the value of shares held as investment.

vii. Advances include a sum of Rs.3.25 lacs with Ahmedabad Stock Exchange and Rs.20.50 lacs with Vadodara Stock Exchange Ltd have been treated as deposits since long. The nature and justification of such deposits are not available, however according to management these are recoverable/realizable.

viii. The Company does not have employees, who are covered for retirement benefit scheme. Accordingly AS-15 of Companies (Accounting Standard) Rules, 2006 issued by the Central Government is not applicable.

ix. Segment Reporting :

The companys primary business is trading of metals, and during the year company started production activity, however based on the guiding principal given in Accounting Standard On " Segment Reporting" [(AS- 17) issued by the institute of Chartered Accountants of India], this activity falls within a single primary business segment and accordingly the disclosure requirement of As-17 in this regard are not applicable. There being no business outside India, the entire business has been considered as single geographic segment

x. Related Parties Disclosures : Accounting Standard-18

Particulars of related Parties

S. No. Name of the Related Nature of Relationship Party

1. Pratik R Kabra Director

2. Ramprasad M Kabra Director

3. Kapil G Kabra Director

4. Kabra Agro Farms Pvt. Ltd. Under the same Management

5. Shree Extrusions Limited Associate Concern

6. Mercury Metals Limited Associate Concern

xiii. All the Assets have been verified by the management during the year. There is a regular program of verification. No material discrepancies were noticed on such verification. Provision for impairment of assets has not been made in accordance to AS -28 as prescribed by the Institute of Chartered Accountants of India. In the opinion of Management, it was not possible to ascertain impairment, if any.

xiv. In the opinion of the Board of Directors, the Current Assets, Loans and Advances are stated approximate value, if realized in the ordinary course of business The provisions of all known liabilities are adequately provided and not in the excess of amount reasonably necessary.

xv. There are no delays in payment to Micro and Small Enterprises as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006. The information regarding Micro and Small Enterprise has 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.

xvi. The previous years figure have been regrouped/ reclassified wherever necessary to make them comparable to current years figure.