Notes to Accounts of Sri KPR Industries Ltd.

Mar 31, 2016

1. Contingent Liability. : Disputed Income Tax liability. Rs.32.50 lacs. The first appeal of the company before the Hon''ble Commissioner of Income Tax (Appeals) has been allowed in favor of the company. A second appeal has been preferred by the department to the Hon''ble Income Tax Appellate Tribunal. Hyderabad.

2. Other income includes Rs 1.05,00.000/- being dividend received from 100% subsidiary Sri KPR Infra & Projects Ltd.

3. Previous year''s figures have been regrouped wherever considered necessary.

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Mar 31, 2015

1. Contingent Liability. : Disputed Income Tax liability. Rs.32.50 lacs. The first appeal of the company before the Hon''ble Commissioner of Income Tax (Appeals) has been allowed in favor of the company. A second appeal has been preferred by the department to the Hon''ble Income Tax Appellate Tribunal, Hyderabad.

2. Previous year''s figures have been regrouped wherever considered necessary.

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Mar 31, 2011

1. The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same

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Mar 31, 2010

1. The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same.

1. Previous years figures have been regrouped and reclassified wherever considered necessary and all figures are rounded off to the nearest rupee.

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Mar 31, 2009

1. In the opinion of the Board, the 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 and these are unsecured, but considered good.

2. The company is in the process of receiving confirmations from the debtors and creditors.

3. Consumption of stores and spares, and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2009.

4. Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, supplied to them and paid directly to the department. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

5. The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same.

6. The company holds 3, 00,000 equity shares of Rs.10/- each fully paid up in Sri Venkateswara Pipes Limited.

7. Previous years figures have been regrouped and reclassified wherever considered necessary and all figures are rounded off to the nearest rupee.

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Mar 31, 2008

1. In the opinion of the Board, the 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 and these are unsecured, but considered good.

2. The company is in the process of receiving confirmations from the debtors and creditors.

3. Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2008.

4. Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, supplied to them and paid directly to the department. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

5. The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same.

6. The company holds 3,00,000 equity shares of Rs.10/- each fully paid up in Sri Venkateswara Pipes Limited.

7. Previous years figures have been regrouped and reclassified wherever considered necessary and all figures are rounded off to the nearest rupee.

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Mar 31, 2007

1. The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same.

2. The company holds 3,00,000 equity shares of Rs.10/- each fully paid up in Sri Venkateswara Pipes Limited.

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Mar 31, 2006

1. Segment revenue/segment expenses of software division are as under. Current year Previous year

(a) Segment revenue :

External Sales 1,84,33,295 98,32,411

(b) Segment expenses :

(i) Administrative and software Development expenses 1,80,78,961 92,59,584

(ii) Depreciation 4,76,652 4,76,651

(iii) Misc. expenses written off - 2,19,970

1,85,55,613 99,56,205

(c) Segment results loss from software division(a-b) (-) 1,22,318 (-) 1,23,794

3) In the opinion of the Board, the 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 and these are unsecured, but considered good.

4) The company is in the process of receiving confirmations from the debtors and creditors.

5) Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2006.

6) Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, supplied to them and paid directly to the department. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

7) a. Remuneration to Auditors Current Year Previous year

As Auditors 60,000 60,000

Towards Income Tax Matters 45,000 45,000

Total 1,05,000 1,05,000

b. Remuneration to Directors

Sri N. Kishan Reddy, Managing Director 1,20,000 1,20,000

Sri N. Srinath Reddy, Whole Time Director 1,20,000 1,20,000

8) Foreign Exchange Earnings and Outgo.

OUT GO (towards traveling and foreign branch Registration expenses)

Equivalent to Rupees

Earnings - US$ 6,137.17

Equivalent to Rupees - 2,69,527

10. The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same.

11. Previous years figures have been regrouped and reclassified wherever considered necessary and all figures are rounded off to the nearest rupee.

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Mar 31, 2005

1. Segment revenue/segment expenses of software division are as under

Current year Previous year (a) Segment revenue:

External Sales 98,32,411 16,05,539

(b) Segment expenses

(i) Administrative and software Development expenses 92,59,584 20,14,076

(ii) Depreciation 4,76,651 4,76,651

(iii) Misc. expenses written off 2,19,970 2,19,969

99,56,205 27,10,696

(c) Segment results loss from software division (a-b) (-) 1,23,794 (-)11,05,157

2) In the opinion of the Board, the current assets, ioans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and these are unsecured, but considered good

3) The company is in the process of receiving confirmations from the debtors and creditors.

4) Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2005

5) Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, supplied to them and paid directly to the department. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

6) a. Remuneration to Auditors Current Year Previous year

As Auditors 40,000 40,000

For tax audit 20,000 20,000

Towards Income Tax Matters 45,000 1,05,000

Total 1,05,000 1,05,000

Current Year Previous year b. Remuneration to Directors

Sri N. Kishan Reddy, Managing Director 1,20,000 85,000

Sri N. Srinath Reddy, Whole Time Director 1,20,000 1,20,000

7) Foreign Exchange Earnings and Outgo.

OUT GO (towards traveling and foreign branch Registration expenses) - US $ 6,030

Equivalent to Rupees - 3,01,598

Earnings US$6,13,717 US$14,482

Equivalent to Rupees 2,69,527 6,79,567

8) Contingent Liability Nil [Previous Year Corporate Guarantee provided to Housing and Urban Development Corporation Limited to an extent of Rupees 250 lacs (Balance in term loan Rs.51.35lacs)]

The above guarantee was authorised by members vide special resolution under section 372A of Companies Act. 1956 passed at General Meeting held on 30 September, 1999.

Current year Previous year

9) Quantitative particulars

A Installed capacities (TPA)

P.V.C. Pipes and Profiles Combined 4,500 4,500

B Production (Kgs)

P.V.C Pipes 13,03,581 11,62,222

H.D.P.E. Pipes 1,90,179 1,39813

C Sales(Kgs)

P.V.C. Pipes 11,69,136 12,77,158

H.D.P.E. Pipes 1,85,766 1,19,155

D Closing Stocks (Kgs)

P.V.C. Pipes 1,15,535 2,09,841

H.D.P.E. Pipes 13,673 23,831

CURRENT YEAR PREVIOUS YEAR

E Value for Opening Stocks, Sales and Closing Stocks (Rupees) Opening Stocks

P.V C. Pipes 1,12,31,333 1,66,21,836

H.D.P.E. Pipes 14,31,959 2,11,785

Sales

P.V.C. Pipes 8,29,57,134 7,04,69,150

H.D.P.E. Pipes 1,55,86,618 61,01,913

Closing Stocks

P.V.C. Pipes 63,91,114 1,12,31,333

HD.P.E. Pipes 9,12,687 14,31,959

F. Consumption of Raw Materials

Quantity in Kgs.

P.V.C Resin 10,09,880 8,91,076

Value (Rupees)

P.V.C Resin 4,91,71,065 3,66,33,320

Other Chemicals and Consumables 1,49,31,756 1,06,31,918

10. The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same

11. The company has carried out the following transactions with Sri Venkateswara Pipes Limited, a related party.

Nature of the transaction Transaction TT Balance outstanding Amount written value Receivable (+) off/back Rupees in lacs Payable(-) as on the Rupees in lacs Balance Sheet date

Sales of pipes 11.70 Nil Nil

Reimbursement of expenses Nil 4.19 Nil

The company holds 3,00,000 equity shares of Rs.10/- each fully paid up in Sri Venkateswara Pipes Limited.

12. Previous years figures have been regrouped and reclassified wherever considered necessary and all figures are rounded off to the nearest rupee.

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Mar 31, 2003

1. Segment revenue/segment expenses of software division are as under.

Current year Previous year

(a) Segment revenue :

External Sales 1,24,16,536 57,36,452

(b) Segment expenses :

(i) Administrative and software - -

Development expenses 86,57,823 42,89,970

(ii) Depreciation 4,76,651 4,71,369

(iii) Misc. expenses written off 2,19,969 2,19,971

93,54,443 49,81,310

(c) Segment results Profit from software division (a-b) 30,62,093 7,55,142

2. In the opinion of the Board, the 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 and these are unsecured, but considered good.

3. The company is in the process of receiving confirmations from the debtors and creditors.

4. Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2003.

5. Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, supplied to them and paid directly to the department. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

6. a. Remuneration to Auditors Current Year Previous year

As Auditors 40,000 40,000

For tax audit 20,000 20,000

Total 60,000 60,000

In addition to the above the auditors are entitled to fee for Audit under the Andhra Pradesh General Sales Tax Act, the fee for which is yet to be finalised. For the year ended 31.03.2002 the Auditors have been paid Rs.15,000 in addition to the above stated Rs.60,000.

b. Remuneration to Directors

Sri N. Kishan Reddy, Managing Director 1,20,000 1,20,000

Sri N. Srinath Reddy, Whole Time Director 1,20,000 1,20,000

7. Foreign Exchange Earnings and Outgo.

OUT GO (towards traveling and foreign branch Registration expenses) US $ 6,030 US $ 5,800

Equivalent to Rupees 3,01,598 2,76,635

Earnings US $ 25,923 US $ 1,29,425

Equivalent to Rupees 12,50,118 61,84,979

8. Contingent Liability : Corporate Guarantee provided to Housing and Urban Development Corporation Limited to an extent of Rupees 250 lacs and further Rupees 330 lacs to ICICI Banking Corporation Limited aggregating to a maximum of Rupees 580 lacs towards term loan and working capital limits availed by Sri Venkateswara Pipes Limited. The above guarantee is authorised by members vide special resolution under section 372A of Companies Act, 1956 passed at General Meeting held on 30 September, 1999.

9. Quantitative particulars Current year Previous year

A Installed capacities (TPA)

P.V.C. Pipes and Profiles Combined 4,500 4,500

B Production (Kgs)

P.V.C Pipes 8,55,087 21,02,272

H.D.P.E. Pipes 9,967 -

C Sales (Kgs)

P.V.C. Pipes 9,98,515 18,18,219

H.D.P.E. Pipes 6,794 -

D Closing Stocks (Kgs)

P.V.C. Pipes 3,24,777 4.68,205

H.D.P.E. Pipes 3,173 -

Current year Previous year

E Value for Opening Stocks,

Sales and Closing Stocks (Rupees) Opening Stocks

P.V.C. Pipes 2,02,19,193 1,51,31,500

H.D.P.E. Pipes Sales

P.V.C. Pipes 5,75,43,463 8,77,37,225

H.D.P.E. Pipes 2,11,785 -

Closing Stocks

P.V.C. Pipes 1,66,21,836 2,02,19,193

H.D.P.E. Pipes 1,99,668 -

F Consumption of Raw Materials

Quantity in Kgs. P.V.C Resin 6,83,624 17,74,692

Value (Rupees)

P.V.C Resin 2,71,39,628 5,67,45,603

Other Chemicals and Consumables 32,83,439 76,81,063

10. The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same.

In addition to the above the company has extended corporate guarantee for the term loan and working capital limits extended to Sri Venkateswara Pipe Limited by Housing and Urban Development Corporation Limited and ICICI Bank Limited respectively.

The company holds 3,00,000 equity shares of Rs.10/- each fully paid up in Sri Venkateswara Pipes Limited.

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Mar 31, 2002

1. The accounts of the company were approved and authenticated by the Board of Directors at their meeting held on May. 24, 2002 and audited and reported by the Statutory Auditors vide their report dated May 24, 2002. No dividend was proposed by the Board of Director at that time. However at the meeting or Board of Directors held on 17th August, 2002 it was decided to propose a dividend @ 8% on paid up capital for financial year 2001-02. Consequently the accounts were revised in order to make a provision for the same.

2) in the opinion of the Board, the 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 and these are unsecured but considered good.

3) The company is in the process of receiving confirmations from the debtors and creditors.

4) Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2002.

5) Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, supplied to them. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

6) Contingent Liability: Corporate Guarantee provided to Housing and Urban Development Corporation Limited to an extent of Rupees 250 lacs and further Rupees 330 lacs to ICICI Banking Corporation Limited aggregating to a maximum of Rupees 580 lacs towards term loan and working capital limits availed by Sri Venkateswara Pipes Limited. The above guarantee is authorised by members vide special resolution under section 372A of Companies Act, 1956 passed at General Meeting held on 30 September. 1999.

7) The company is not having adequate information about the industrial status of its creditors. Hence the information required to be given with regard to the amounts owed to the Small Scale Industries is not provided. The company is making efforts to obtain the same.

8) Previous years figures have been regrouped and declassified wherever considered necessary and all figures are rounded off to the nearest rupee.

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Mar 31, 2001

1) In the opinion of the Board, the 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 and these are unsecured, but considered good.

2) The company is in the process of receiving confirmations from the debtors and creditors.

3) Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2001.

4) Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, supplied to them. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

5) Contingent Liability : Corporate Guarantee provided to Housing and Urban Development Corporation Limited to an extent of Rupees 250 lacs and further Rupees 330 lacs to ICICI Banking Corporation Limited aggregating to a maximum of Rupees 580 lacs towards term loan and working capital limits availed by Sri Venkateswara Pipes Limited. The above guarantee is authorised by members vide special resolution under section 372A of Companies Act, 1956 passed at General Meeting held on 30 September, 1999.

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Mar 31, 2000

1) Prior period items include income tax of financial year 1998-99, assessment year 1999-2000.

2) In the opinion of the Board, the current assets, loans and advances are a value on realization in the ordinary course of business at least equal to the amount at which they are stated and these are unsecured, but considered good.

3) The company is in the process of receiving confirmations from the debtors and creditors.

4) Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 2000.

5) Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, supplied to them. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

6) Contingent Liability : Corporate Guarantee provided to Housing and Urban Development Corporation Limited to an extent of Rupees 250 lacs and further Rupees 280 lacs to ICICI Banking Corporation Limited aggregating to a maximum of Rupees 530 lacs towards term loan and working capital limits availed by Sri Venkateswara Pipes Limited.

The above guarantee is authorised by members vide special resolution under section 372A of Companies Act, 1956 passed at Annual General Meeting held on 30 September, 1999.

7) As regards the disclosure of particulars of amounts owed by the company to small scale industrial undertakings that are required to be disclosed in the balance sheet in pursuance of amendment to Schedule VI of the Companies Act, 1956 vide Notification No. GSR 129 (E), dated 22-2-1999 issued by the Department of Company Affairs, the company is not in possession of any information as to the business/industrial status of its creditors whose particulars are to be disclosed. The company is making efforts to obtain the same.

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Mar 31, 1999

1. In the opinion of the Board, the 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 and these are unsecured, but considered good.

2. The Company is in the process of receiving confirmations from the debtors and creditors.

3. No provision has been made in respect of central excise duty on stocks lying in factory warehouse. However this has no impact on the profit for the year.

4. Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 1999.

5. Included in current liabilities (Creditors for expenses) is sales tax payable which as per the terms of supply to Government Departments is to be deducted at the time of payment for pipes etc, Isupplied to them. The amount shown as sales tax payable will be adjusted as and when advises are received from the Government Departments.

6. a. Remuneration to Auditors Current Year Previous year Rs. Rs.

As Auditors 40,000 30,000 For Tax Audit 10,000 7,500

Total 50,000 37,500

b. Remuneration to Directors Sri N. Kishan Reddy, Managing Director 1,20,000 1,20,000 Sri G. Hemanth Reddy, Whole Time Director 1,20,000 1,20,000 Sri N. Srinath Reddy, Whole Time Director 72,000 72,000

7. Foreign Exchange Earnings and Outgo. OUT GO Nil Nil EARNINGS Nil Nil

8. Contingent Liability : Corporate Guarantee provided to Housing and Urban Development Corporation Limited to an extent of Rupees 250 lacs and further Rupees 450 lacs to ICICI Banking Corporation Limited towards term loan and working capital limits respectively availed by Sri Venkateswara Pipes Limited.

The above guarantee is authorised by members vide special resolution under Section 370 (1) (b) of Companies Act, 1956 passed at Extraordinary General Meeting held on 28 Neverlber, 1996 and at 10th Annual General Meeting held on 29th September, 1998, respectively.

9. The Company is liable to pay Rupees 14.92 lacs (previous year Rupees 6.08 lacs) as Income Tax under section 115JA of Income Tax Act, 1961 (Minimum Alternate Tax). Included in current assets is Rupees 7.50 lacs Advance Tax paid for the Assessment Year 1999-2000. The balance amount as and when paid will be treated as current asset, for a period of five successive assessment years keeping in view the credit given to the Company for amounts paid under Section 115JAA of Income Tax Act, 1961. The same will be transferred to Profit and Loss account in the year in which the credit expires.

10. As regards the disclosure of particulars of amounts owed by the Company to small scale industrial undertakings that are required to be disclosed in the balance sheet in pursuance of amendment to Schedule VI of the Companies Act, 1956 vide Notification No. GSR 129 (E), dated 22-2-1999 issued by the Department of Company Affairs, the Company is not in possession of any information as to the business/industrial status of its creditors whose particulars are to be disclosed. The Company is making efforts to obtain the same.

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Mar 31, 1998

1. Secured Loans:

i. Term loan from Housing and Urban Development Corporation Ltd is secured by first charge on all fixed assets of the company, both present and future and mortgage by deposit of the title deeds.

ii. Working Capital, Cash Credit and ODBCC Accounts from State Bank of Hyderabad is secured by way of hypothecation of stocks and book debts and second charge on all the fixed assets of the company, both present and future.

2. In the opinion of the Board, the 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 and these are unsecured, but considered good.

3. The company is in the process of receiving confirmations from the debtors and creditors.

4. No provision has been made in respect of central excise duty on stocks lying in factory warehouse. However this has no impact on the profit for the year.

5. Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on March 31, 1998.

6.The company is liable to pay Rupees 6.08 lacs (previous year Rupees 1.32 lacs) as Income Tax under section 115JA of Income Tax Act, 1961 (Minimum Alternate Tax). Included in current assets is Rupees 2.15 lacs (previous year Rupees 1.64 lacs) as Tax Deducted at Source. The balance amount as and when paid will be treated as current asset, for a period of five successive assessment years keeping in view the credit given to the company for amounts paid under section 115JAA of Income Tax Act, 1961. The same will be transferred to Profit and Loss account in the year in which the credit expires.

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Mar 31, 1997

1. In the opinion of the Board, 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 and these are unsecured but considered good.

2. The Company is in the process of receiving confirmations from the debtors and creditors.

3. Other current liabilities include Rupees 59,500 being Public Issue Refund Account, pending reconciliation.

4. No provision has been made in respect of central excise duty on stocks lying in factory warehouse however this has no impact on the profit for the year.

5. Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on 31st March, 1997.

Included in the "Consumption of raw materials" is Rupees 33,86,051 being Deemed Export Benefits in terms of duty free import of raw materials, accrued, that have been transferred on consumption of the same.

6. The Company is liable to pay Rupees 1.32 lacs as income tax under section 115JA of the Income Tax Act, 1961, (Minimum Alternate Tax). Included in current assets is Rupees 1.64 lacs as Tax Deducted at Source. The same will be adjusted against the tax payable by the company. The company is given credit for the amount of Rupees 1.32 lacs for five successive assessment years, from the current assessment year. As explained in para 1 (I) of Significant accounting policies above, the company will be carrying forward this credit as a current asset and will transfer the same to the profit and loss account in the year in which the credit expires.

7. Secured loan from Housing and Urban Development Corporation Limited is secured by first charge on all the fixed assets of the company, both present and future amd mortgage by deposit of title deeds.

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Mar 31, 1996

NOTES TO SECURED LOANS:

1. Term Loan from HUDCO is secured by first charge on all fixed assets of the company, both present and future.

2. Working Capital borrowing from SBH are secured by second charge on all fixed assets of the company, both present and future, and first charge on the stock of inventories and book debts.

NOTES TO ACCOUNTS:

1. In the opinion of the board current assets loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated and these are unsecured but considered good.

2. The company is in the process of receiving confirmations from the debtors and creditors.

3. Other current liabilities include Rupees 59,500 being Public issue Refund Account, pending reconciliation.

4. No provision has been made in respect of central excise duty on stocks lying in factory warehouse however this has no impact on the profit for the year.

5. Contingent liability: -

a) Bank guarantee Rs.13.60 lacs (Previous year NIL).

b) Unexpired letters of credit NIL (Previous year 6.78 lacs)

c) Excise duty demand pending in appeal Rs.1.03 lacs (Previous year NIL).

6. Included in the sales is Rs.33,86,051/- being deemed export benefits accounted for on accrual basis as stated in clause F of significant accounting policies.

7. Consumption of stores and spares and other consumables have been ascertained on the basis of physical verification carried out on 31st March, 1996.

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Mar 31, 1995

The Profit and Loss account has been drawn up from the date of commercial production of Pipes i.e., from 1st August, 1994 to 31st March, 1995. This being the first year of commercial operations, no previous year's figures are given in the Profit and Loss Account. 3. Secured Loans of Rs.113 lakhs represents term loan from Housing and Urban Development Corporation and is secured by first charge on the fixed assets of the company, both present and future, working capital borrowings from State Bank of Hyderabad are secured by second charge on thee fixed assets of the company and by first charge on the book debts, stocks of inventories etc. In the opinion of the Board current assets, loans and advances have a value on realisation in the ordinary course of business atleast equal to the amount at which they are stated and these are unsecured but considered good. The company is in the process of receiving confirmations from the debtors and creditors. Balances with banks and current liabilities include Rs. 84,500/- being public issue refund account pending reconciliation. No Provision has been made in respect of central excise duty on stocks lying in factory warehouse. However this has no impact on the profit for the year. Contingent liability: Unexpired letters of credit Rs.6.78 lakhs (previous year NIL). Included in the sales is Rs 6,10,772/- being deemed export benefits accounted for on accrual basis as stated in clause G of significant accounting policies. Sales stated are net of sales returns of Rs. 39,067/- Profit on sale of investments included in other income represents profit on sale of 2,500 shares of Neha International Limited out of the 7,600 shares allotted to the company. Consumption of Stores & Spares has been ascertained on the basis of physical verification carried out on 31st March, 1995.