Nitin Alloys Global Limited Annual Report

Transcription

1 Niti Alloys Global Limited Aual Report NOTES TO THE FINANCIAL STATEMENTS tes to the Accouts Aexed to ad Formig Part of the Balace Sheet as at 31st March, 2016 ad the Profit & Loss Accout for the year eded o the date: Compay Overview Niti Alloys Global Limited is a public compay domicile i Idia. It is icorporated uder the Compaies Act, Its share is listed o the Bombay Stock Exchage. The compay is i the busiess of maufacturig Alloy Steel Castig i the rage of static ad cetrifugal. The compay has maufacturig uit at Plot 183/1, Suragi, Silvassa, Dadra ad Nagar Haveli Sigificat Accoutig Policies a) Basis of Accoutig The fiacial statemets are cosistetly prepared o the basis of historical cost covetio, i accordace with the applicable accoutig stadards ad o the accoutig priciples of a goig cocer. All expeses ad icome to the extet ascertaiable with reasoable certaity are accouted for o accrual basis ad are i accordace with the requiremets of the Compaies Act, b) Uses of Estimates The preparatio of the fiacial statemets i coformity with the geerally accepted accoutig priciples requires estimates ad assumptios to be made that affect the reported amout of assets ad liabilities o the date of the fiacial statemets ad durig the reportig year. Differece betwee the actual result ad estimates are recogized i the year i which the results are kow / materialized. c) Fixed Assets i) Leased Assets The Compay does ot have ay lease hold asset as such; hece type of lease, capitalizatio & depreciatio policy of same is ot required. ii) Other Fixed Assets a. Fixed Assets icludig Itagible Assets have bee capitalised at Cost of Acquisitio ad Other Icidetal Expeses. b. Depreciatio o Fixed Assets has bee computed o the Straight Lie Method, i the maer ad as per the estimated useful life of a asset provided uder Schedule II to the Compaies Act, c. Depreciatio o the fixed assets added durig the year is provided o pro-rata basis with referece to the days of additio. d) Ivestmets Log term ivestmets are stated at cost of acquisitio. adjustmet is made i the carryig cost for temporary declie, if ay, i the value of these ivestmets. Short Term Ivestmets are carried at cost or market value whichever is lower. e) Ivetories Ivetories are valued as uder i. Stores ad spares (for regular use) are stated at lower of cost or at et estimated realizable value o first-i-first-out basis. ii. iii. Raw material, compoets are valued at lower of cost o first-i-first-out basis or estimated et realizable value basis. Semi fiished goods icludes appropriate cost of coversio ad other costs icurred i brigig the ivetories to their preset coditio. 41

2 Niti Alloys Global Limited Aual Report f) Balaces i Sudry Debtors, Sudry Creditors, Advaces ad Curret Liabilities are subject to cofirmatio, recociliatio s ad adjustmets if ay, which i the opiio of the maagemet will ot be sigificat ad would be carried out whe settled. g) Gratuity & Retiremet beefit i) The Compay has scheme of retiremet beefits such as providet fud ad gratuity fud ad the Compay s cotributios are charged to the Profit ad Loss Accout. ii) iii) I respect of staff ad workme, a cotributio to Gratuity Scheme is made uder the Group Gratuity Scheme of Life Isurace Corporatio of Idia o the basis of actuarial valuatio. Leave ecashmet liability is accouted o actual paymet basis ad charged to the Profit ad Loss Accout i the year of paymet. h) Reveue Recogitio Sales are recogized upo dispatch ad are recorded iclusive of excise duty, service, ad Labour charges but are et of returs, trade discout, late delivery charges ad trasport charges. Iterest icome is recogized o a time proportio basis. Divided icome form ivestmet is recogized at the time whe it actually received. i) Purchase Purchase icludes traded goods, custom duty, clearig ad forwardig, Octroi ad other expeses et of cevat credit. j) Foreig Currecy Trasactios Foreig currecy trasactios are recorded at the rate prevailig o the date of trasactio. Foreig currecy moetary items outstadig as at the Balace Sheet date are restated at the closig rate. k) Expediture All Expeses are accouted o accrual basis except leave travel allowaces, medical reimbursemet, leave ecashmet, commissio o bak guaratees, bak charges, rebate ad discouts which are accouted o Cash basis. l) Leases Leases where sigificat portio of risk ad reward of owership are retaied by the lessor are classified as operatig leases ad lease retal thereo are charged to Profit ad Loss accout. m) Cotiget Liabilities & Cotiget Assets Provisios are made for kow liabilities ad other liabilities as per the provisioig policy of the Compay or where additioal risks are idetified by the Maagemet, based o such idetificatio. Cotiget liabilities do ot warrat provisios, but are disclosed uless the possibility of outflow of resources is remote. Cotiget assets are either recogized or disclosed i the fiacial statemets. However, cotiget assets are assessed cotiually ad if it is virtually certai that a iflow of ecoomic beefits will arise, the assets ad related icome are recogized i the period i which the chage occurs. ) Taxes & Duties i. Icome Tax comprises of Curret Tax ad et chages i Deferred Tax Assets or Liabilities durig the year. Curret Tax is determied at the amout of tax payable i respect of taxable icome for the year as per the Icome-tax Act, 1961, based o the estimates of weighted average icome tax rate expected for the full fiacial year. ii. Deferred Tax Assets ad Liabilities are recogized for the future tax cosequeces of timig differeces betwee the book profit ad tax profit. Deferred Tax Assets ad Liabilities other tha o carry forward losses ad uabsorbed depreciatio uder tax laws are recogized whe it is reasoably certai that there will be future taxable icome. 42

3 Niti Alloys Global Limited Aual Report iii. Net Deferred Tax Liability ad Assets is recogized o timig differeces betwee accoutig icome ad taxable icome for the year ad quatified usig the tax rates ad laws eacted or subsequetly eacted as o the Balace Sheet date. Net Deferred Tax liability has bee recogized i the Books as required by AS-22 of the Istitute of Chartered Accoutats of Idia. o) Loas from Baks i. Secured Loa from Baks/fiacial istitutios is secured by way of hypothecatio of etire stocks of raw materials, semi-fiished ad fiished goods, cosumable stores ad spares, debtors, plat ad machieries, ad charge o immovable properties at Silvassa Plat. ii. Car Loas are secured by hypothecatio of motor vehicles purchased here-agaist. p) Borrowig Cost : Borrowig costs that are directly attributable to the acquisitio, costructio or productio of qualifyig assets are capitalised as part of the cost of such assets. A qualifyig asset is oe that ecessarily takes substatial period of time to get ready for iteded use. All other borrowig costs are charged to reveue. 2. Share Capital : a) Share Capital of the Compay cosist the followig: Curret Year a) Authorised Capital b) Issued 50,00,000 Equity Shares of Rs. 10/- each. 5,00,00,000 5,00,00,000 Total i ` 5,00,00,000 5,00,00,000 14,04,000 Equity Shares of Rs. 10/- each (As at March 31, 2016) 1,40,40,000 1,40,40,000 c) Subscribed Total i ` 1,40,40,000 1,40,40,000 14,04,000 Equity Shares of Rs. 10/- each (As at March 31, 2016) 1,40,40,000 1,40,40,000 d) Fully Paid up Total i ` 1,40,40,000 1,40,40,000 14,04,000 Equity Shares of Rs. 10/- each (As at March 31, 2016) 1,40,40,000 1,40,40,000 e) Partly Paid up Total i ` 1,40,40,000 1,40,40,000 Nil - - Total i ` - - b) Details of movemet i Shareholdig for the period April 1, 2015 to March 31, 2016 Curret Year. of Shares. of Shares Opeig Balace 14,04,000 14,04,000 Add : Allotmet made durig the Period NIL NIL Closig Balace (icludig 14,04,000 shares which are fully paid up) 14,04,000 14,04,000 43

4 . Niti Alloys Global Limited Aual Report c) List of shareholders holdig more tha 5% shares as at March 31, i) Fully Paid up Shares of `10/- each Name of the Shareholders. of Shares Curret Year % Holdig. of Shares % Holdig 1 Shalii Nirmal Kedia 1,41, % 1,41, % 2 Key Itegrated Solutios Pvt. Ltd ,00, % 3 TFC Egieerig Pvt. Ltd. 94, % 1,00, % 4 Puit Gopikisha Makharia 3,05, % Key te Tradig Co. Pvt. Ltd ,24, % ii) Partly Paid up Shares Nil d) The Compay has proposed divided of `0.75/- per equity share for the fiacial year eded 31st March, 2016, amoutig to `12.67 Lacs (iclusive tax of `2.14 Lacs). The divided payout is subject to approval of members at the esurig Aual Geeral Meetig. 3. Reserves & Surplus : The movemet i Reserves ad Surplus are as uder: Curret Year 1 Capital Reserve - Opeig Balace 27,50,000 27,50,000 - Add : Appropriatio from Profit ad Loss Accout Securities Premium Reserve Sub Total -> 27,50,000 27,50,000 - Opeig Balace 4,56,06,000 4,56,06,000 - Add : Appropriatio from Profit ad Loss Accout Geeral Reserve Sub Total -> 4,56,06,000 4,56,06,000 - Opeig Balace 75,00,000 75,00,000 - Add : Appropriatio from Profit ad Loss Accout Surplus i Statemet of Profit ad Loss Accout Sub Total -> 75,00,000 75,00,000 - Opeig Balace 15,23,83,507 15,37,46,430 - Less: Excess of Carried Value of Fixed Assets (Whose useful life is expired) as per Compaies Act (1,07,87,268) - Add: Profit for the period 65,27,711 94,24,345 - Less: Tax o Regular Assessmet Paid - - Sub Total -> 15,89,11,218 15,23,83,507 Total i ` 21,47,67,218 20,82,39,507 44

5 Niti Alloys Global Limited Aual Report Log Term Borrowig : Log-term Borrowigs outstadig as o March 31, 2016 are as uder Secured U-Secured Term Loa Curret Year - From Bak 43,72,234 74,39,138 - Less : Curret maturities of Log Term debts (Refer te. 8) 26,92,284 30,66,903 Bods / Debetures Term Loa Iter Corporate Deposits 16,79,950 43,72,235 Sub Total -> 16,79,950 43,72,235 Sub Total -> Nil Nil Sub Total -> Nil Nil Sub Total -> Nil Nil Total i ` 16,79,950 43,72,235 The term loa represet the vehicle loa take from HDFC Bak Ltd. ad ICICI Bak Ltd. agaist hypothecatio of vehicle. 5. Deferred Tax Liability : Major compoets of deferred tax assets ad liabilities arisig o accout of timig differeces are: Curret Year Opeig 95,72,271 98,23,788 - Differece betwee Book ad Tax o Depreciatio (8,35,583) (2,51,517) - Provisio ad Cotigecies Others - - Total i ` 87,36,688 95,72, Short Term Borrowig : Secured 1 Workig Capital Loas from Baks Curret Year - From Bak 2,09,14,488 4,38,56,640 - From Other Parties - - Sub Total -> 2,09,14,488 4,38,56,640 2 Other Short Term Borrowigs - From Bak 59,02, From Related Parties From Other Parties 1,55,00,000 - Sub Total -> 2,14,02,039 Nil Total i ` 4,23,16,527 4,38,56,640 45

6 Niti Alloys Global Limited Aual Report Trade Payables : Curret Year 1 Sudry Creditors for Raw Material 39,00,125 2,91,01,916 2 Sudry Creditors for Stores & Others 24,01,417 24,70,208 3 Trade Payable for Services & Others 15,19,443 29,93,544 Total i ` 78,20,985 3,45,65, Other Curret Liabilities : Curret Year 1 Term Loa due withi oe year (te. 4) 26,92,284 30,66,903 2 Statutory Payables 12,42,626 8,61,473 3 Advace From Customers 63,34,215 67,32,420 Total i ` 1,02,69,125 1,06,60, Short Term Provisios : Curret Year 1 Provisio for Employees Beefits 27,19,973 29,45,481 2 Provisio for Admi. Sellig & Geeral Exp. 40,21,502 4,75,817 3 Provisio for Auditors Remueratio 3,17,174 3,17,174 4 Provisio for Factory Overhead 16,11,727 22,07,548 5 Provisio for Divided with Tax 12,67,367 16,84,718 6 Provisio for Icome Taxes (et of Advace Tax & TDS) 27,17,186 24,81,683 Total i ` 1,26,54,929 1,01,12, Curret Ivestmets : (Valued at Cost less other tha temporary dimiutio i value, if ay) Curret Year 1 Ivestmet i Equity Istrumet (Quoted) 100 Eq. Sh. of Uiabex Alloys Ltd.(FV 10/- each) 5,455 5, Eq. Sh. of J.K. Eterprise Ltd. (FV 10/- each) 12,695 12,695 2,595 Eq. Sh. of Dea Bak (FV 10/- each) 70,065 70, Eq. Sh. of HCL Tech (FV 2/- each) 1,22,774 1,22,774 1,464 Eq. Sh. of Tech Mahidra (FV 5/- each) 1,84,698 1,84,698 Sub Total -> 3,95,687 3,95,687 2 Ivestmet i Equity Istrumet (Uquoted) 72,000 Eq. Sh. of Ridhi Sidhi Commercial Co. Ltd. (FV 10/- each) 1,67,150 1,67,150 77,850 Eq. Sh. Of Gorde Mercatile Pvt. Ltd. (FV 10/- each) - 77,850 1,000 Eq. Sh. of Presco Builders Pvt. Ltd. (FV 100/- each) 1,00,000 1,00,000 Sub Total -> 2,67,150 3,45,000 Total i ` 6,62,837 7,40,687 46

7 Niti Alloys Global Limited Aual Report Log Term Loas & Advaces : Curret Year a) Other Loas & Advaces 1 Secured, Cosidered Good Usecured, Cosidered Good 2,00,00,000 2,00,00,000 3 Doubtful - - Sub Total -> 2,00,00,000 2,00,00,000 b) Security Deposit 1 Secured, Cosidered Good 2 Usecured, Cosidered Good - - i Earest Moey Deposit - - ii Other Deposit 16,49,930 1,66,705 3 Doubtful - - Sub Total -> 16,49,930 1,66, Curret Ivestmets : Total i ` 2,16,49,930 2,01,66,705 Curret Year 1 Ivestmet i Liquid Mutual Fud (Quoted) 2,25,28,511 4,05,87, Ivetories : Total i ` 2,25,28,511 4,05,87,975 Curret Year 1 Raw Material 2,01,58,693 3,76,64,736 2 Work-i-Progress 3,12,32,146 4,16,07,989 3 Stores & Spares 14,46,260 19,53,024 Total i ` 5,28,37,099 8,12,25, Trade Receivable : Curret Year a) Outstadig for more tha six moths 1 Secured, Cosidered Good Usecured, Cosidered Good 24,86,429 2,11,387 Sub Total -> 24,86,429 2,11,387 b) Others 1 Secured, Cosidered Good Usecured, Cosidered Good 7,39,21,147 6,67,37,288 Sub Total -> 7,39,21,147 6,67,37,288 Total i ` 7,64,07,576 6,69,48,675 47

8 Niti Alloys Global Limited Aual Report Cash ad Cash Equivalets : Curret Year 1 Balace with baks 83,055 1,25,122 2 Fixed Deposits with Bak 24,51,231 49,29,097 3 Cash o had 4,47,479 2,31,302 Total i ` 29,81,765 52,85, Short Term Loas ad Advaces : Curret Year a) Advace Recoverable i Cash or Kid 1 Secured, Cosidered Good 2 Usecured, Cosidered Good 3 Earest Moey Deposit 7,07,366 8,07,235 Sub Total -> 7,07,366 8,07,235 b) Advaces to Suppliers 1 Secured, Cosidered Good Usecured, Cosidered Good 1,15,20,507 66,37,718 Sub Total -> 1,15,20,507 66,37,718 c) Advace Recoverable i Cash or Kid 1 Secured, Cosidered Good Usecured, Cosidered Good 7,36,344 8,01,184 Sub Total -> 7,36,344 8,01,184 d) Balace with Reveue Authorities uder idirect Taxes 1 Secured, Cosidered Good Usecured, Cosidered Good 13,34,305 42,65,147 Sub Total -> 13,34,305 42,65,147 Total i ` 1,42,98,522 1,25,11, Reveue From Operatios : Curret Year a) Gross Sales & Services 1 Domestic Sales 33,27,30,132 47,26,91,651 2 Export Sales 61,66,024 - Sub Total -> 33,88,96,156 47,26,91,651 b) Less : Taxes o Sales & Services 1 Excise Duty 3,69,40,885 5,20,38,655 Sub Total -> 3,69,40,885 5,20,38,655 Total i ` 30,19,55,271 42,06,52,996 48

9 Niti Alloys Global Limited Aual Report Other Icome : Curret Year 1 Iterest Icome 14,80,419 15,45,749 2 Net gai/loss o sale of Ivestmets 13,32,617 (1,14,011) 3 Other o-operatig Icome (Net of expeses) ,043 4 Duty Drawback 4,196 - Total i ` 28,17,356 14,82, Cost of Materials Cosumed : Curret Year 1 Cost of Materials Cosumed 18,76,85,066 33,43,92,948 2 Cost of Stores & Spares Cosumed 44,13,537 47,58,311 Sub Total -> 19,20,98,603 33,91,51,259 Direct/Productios Expeses 1 Excise Expeses - 25,01,582 2 Power & Fuel 1,20,74,076 1,51,11,674 3 Processig Labour Charges 1,08,50,606 1,03,07,382 4 Packig, Freight & Forwardig & Security 34,17,980 55,30,478 5 Custom Duty, Octroi & Testig Charges 8,33,179 10,86,792 6 Repair & Maiteace - Plat & Machiery 8,81,637 16,95,846 7 Patter Expeses 9,85,398 13,97,639 Sub Total -> 2,90,42,876 3,76,31,393 Total i ` 22,11,41,479 37,67,82, Chages i Ivetories of Fiished Goods, Work-i-Progress ad Scrap : Curret Year 1 Opeig Stock of Work i Progress 4,16,07,989 2,14,62,157 2 Opeig Stock of Tradig Material Less : Closig Stock of Work i Progress 3,12,32,146 4,16,07,989 4 Less : Closig Stock of Tradig Material - - Total i ` 1,03,75,843 (2,01,45,832) 21. Employee Beefits Expeses : Curret Year 1 Directors remueratio 4,80,000 4,80,000 2 Wages, Salaries & Employees Welfare 2,19,33,721 1,97,32,267 3 Statutory Cotributio 4,73,631 3,92,546 Total i ` 2,28,87,352 2,06,04,813 49

10 Niti Alloys Global Limited Aual Report Fiace Cost : Curret Year 1 Iterest Cost 17,85,344 4,25,342 Total i ` 17,85,344 4,25, Depreciatio ad Amortisatio : Curret Year 1 Depreciatio o Fixed Assets 1,07,28,735 99,18,417 2 Deferred Reveue Expediture W/off - - Total i ` 1,07,28,735 99,18, Admiistrative, Sellig ad Geeral Expeses Curret Year 1 Geeral Admiistratio Expeses 10,78,664 8,56,788 2 Commuicatio & Telephoe Expeses 84,199 65,517 3 Repair & Maiteace Expeses 10,34,018 13,60,402 4 Ret, Rates & Taxes 38,15,353 4,10,000 5 Vehicle, Travellig & Coveyace Expeses 33,88,594 27,90,545 6 Legal & Professioal Fees 80,71,309 46,48,391 7 Isurace Expeses 24,58,487 24,28,040 8 Sellig & Distributios Expeses 33,11,260 40,88,278 9 Sudry Balaces W/off (1,96,926) (14,38,748) 10 Bak Charges 21,84,585 24,13, Loss o Sales of Assets 4,34,919 82, Export Exchage Differece 22,475 - Total i ` 2,56,86,937 1,77,05, Auditor s Remueratio (Net of Service Tax): Curret Year 1 Statutory Audit Fees 1,50,000 1,50,000 2 Tax Audit Fees 75,000 75,000 3 Certificatio Charges 60,000 60,000 4 Audit Expeses 3,317 3,332 Total i ` 2,88,317 2,88,332 50

11 Niti Alloys Global Limited Aual Report Defied Beefit Plas The compay operates Defied Beefit Plas that provide Gratuity beefits. The gratuity pla etitles a employee, who has redered at least 5 years of cotiuous service, to receive oe-half moth salary for each year of completed service at the time of retiremet/ exit. The followig table summarizes the positig of assets ad obligatios relatig to gratuity. Assumptio Curret Year Discout Rate 8.00% Salary Escalatio 5.00% 51 Curret Year Amt i Rs. Projected Beefit Obligatio at the begiig of the year 16,26,912 Curret Service Cost 1,44,959 Iterest Cost 1,30,153 Actuarial Losses (76,300) Beefits paid (90,461) Projected Beefit Obligatio at the ed of the year 17,35,263 Chage i Pla Assets Fair value of pla assets at the begiig of the year 18,51,563 Expected retur of pla assets 1,64,876 Employers Cotributio 57,297 Beefits paid Amout recogized i the Balace Sheet (90,461) Fair value of pla assets at the ed of the year 19,83,275 Fair value of Pla Assets Fair value of plat assets at begiig of year 18,51,563 Actual retur o pla assets 1,64,876 Cotributios 57,297 Beefits paid (90,461) Fair value of pla assets at the ed of the year 19,83,275 Fuded status 2,48,012 Excess of actuarial over estimated retur o pla assets Actuarial Gai/Loss recogise Actuarial Gai/Loss o obligatios 76,300 Actuarial Gai/Loss for the year - pla assets Actuarial Gai/Loss for the year (76,300) Actuarial Gai/Loss recogise i the year (76,300) Amout to be recogised i the Balace Sheet Preset value of obligatios as at the ed of the year 17,35,263 Fair value of pla assets as at the ed of the year 19,83,275 Fuded Status 2,48,012 Net Assets/(Liability) recogised i balace sheet 2,48,012 Nil

12 Niti Alloys Global Limited Aual Report Expeses recogised i statemet of Profit & Loss A/c Curret Service Cost 1,44,959 Iterest Cost 1,30,153 Expected retur o pla assets (1,64,876) Net Actuarial (gai)/loss recogised i the year (76,300) Expeses recogised i statemet of Profit & Loss A/c 33,936 tes: i. The expected retur o pla assets for the year eded 31/03/2016 is as furished by LIC. ii. The etire pla assets are maaged by LIC. The data o pla assets ad experiece adjustmet has ot bee furished by LIC ad hece there are o disclosures i this regard. iii. The estimate of future salary icrease takes ito accout iflatio, seiority, promotio ad other relevat factors. iv. Discout rate is based o the prevailig market yields of Idia Govermet Bods as at the Balace Sheet date for the estimated term of the obligatio. 27. Estimated amout of cotracts remaiig to be executed o capital accout ad ot provided for as o 31st March, 2016 is Rs. Nil (previous year Rs. Nil). 28. I the opiio of the Board, curret assets, loas ad advaces have a value o realizatio i the ordiary course of busiess at least equal to the amout at which they are stated. The balaces of Sudry Debtors, Loas ad advaces, Deposits, some of the Sudry Creditors ad Usecured Loas are subject to cofirmatios ad adjustmets, if ay. 29. Related Parties Disclosures As per AS-18 issued by the Istitute of Chartered Accoutats of Idia, the Compay s related parties are as uder: i. Relatioships a) Eterprises uder sigificat ifluece of Key Maagemet Persoel : Niti Castigs Private Limited (Formerly kow as Niti Castigs Limited) ii. The followig is a summary of sigificat related party trasactios: Sales of Goods Purchase of Goods & Labour Charges 52 i) Key Maagemet persoel ad their relatives : Mr. Nirmal Kedia Mr. Niti Kedia Mr. Nipu Kedia Mr. Shyamlal Agarwal Mrs. Suma Kedia Eterprises uder sigificat ifluece of Key Maagemet Persoel (34.46) - (4.98) Remueratio - Reimbursemet Ret - Security Deposit Give - Professioal Fees (-) ` i Lacs Key Maagemet persoel ad their relatives : (4.80) (-) (-) (31.80)

13 Niti Alloys Global Limited Aual Report Uhedged foreig currecy exposure Foreig currecy exposure o accout of trade receivable ad payable ot hedged by derivative istrumet are as follows 2016 (Foreig Currecy) 2016 (Rupees i Lacs) 2015 (Foreig Currecy) 2015 (Rupees) Payable USD 88, Nil Nil Receivable USD Nil Nil Nil Nil 31. The compay has ot received iformatio from the suppliers regardig their status uder the micro, small ad medium eterprises developmet act, Hece, disclosure, if ay, relatig to amout upaid as at the balace sheet date together with iterest paid or payable as per the requiremet uder the said act have ot bee made. 32. The compay has take premises o Leave & Licese. These Leave & Licese agreemets are ormally reewable o expiry. Ret expeses i the Profit ad Loss Accout for the year icludes Retal Paymets towards Premises amoutig to Rs Lacs (previous year Rs. Nil). 33. The Board of Directors at their meetig held o February 6, 2016, have cosidered ad approved a Scheme of Arragemet uder Sectios ad other applicable provisios of the Compaies Act, 1956 ( the Act ), for demerger of the Castig Busiess Udertakig carried out by Niti Castigs Private Limited ( NCPL or the Demerged Compay ), o a goig cocer basis ad vestig of the same ito Niti Alloys Global Limited ( NAGL or the Resultig Compay ). The Board believes that the demerger will create busiesswise segregatio of compaies thereby esurig focused maagemet, improved orgaizatioal capability ad leadership ad achievig operatioal ad maagemet efficiecy. The Scheme ad relevat documets have bee filed with the Bombay Stock Exchage Limited for their approval. The o objectio of BSE has bee obtaied vide their letter dated May 5, The Scheme has bee filed i the High Court of Bombay, directios for coveig the Court Coveed Meetig of shareholders of the Compay for approval of the Scheme has bee obtaied i the meetig of CCM held o Jue 20, The Scheme is subject to approval of Ho ble High Court of Bombay ad various statutory approvals. Accordigly, the accoutig treatmet laid out i the Scheme ad cosequetial adjustmets pursuat to demerger that would arise uder Scheme will be dealt with by the Compay i the fiacial statemets, oce the Scheme is made effective after approval of High Court ad relevat filigs with regulatory authorities 34. The trasactio i Foreig Currecy durig the year is as uder: Curret Year (` i Lacs) (` i Lacs) 1. C.I.F. Value of Import Expediture i Foreig Currecy Earigs i Foreig Exchage Exports Nil 35. Cotiget Liabilities ad Cotiget Assets : The Compay has ot recogized ay Cotiget Liabilities other tha those specified below: Curret Year (` i Lacs) (` i Lacs) 1. Letter of Guaratee give by the Bakers Letter of Credit issued by the Bakers Letter of Credit Acceptaces ad Edorsemets Nil Nil 4. Bills Discoutig Nil Claims agaist the Compay ot ackowledge as debts Nil Nil 53

14 Niti Alloys Global Limited Aual Report Earigs per share Curret Year 1. Net Profit / (Loss) after Tax as per Profit ad Loss Accout 77,95,078 1,11,09, Number of Shares Outstadig durig the year 14,04,000 14,04, Basic & Diluted Earigs per shares o Weighted average Basis Segmet Reportig As the compay operates i oly oe busiess the disclosure requiremets uder Accoutig Stadard 17 Segmet Reportig is ot applicable. 38. Iformatio regard to other matter specified i Schedule III of Compaies Act, 2013 is either NIL or ot applicable to the compay for the year. 39. Figures i brackets relates to previous year. The previous year s figures have bee regrouped, recomputed, rearraged ad reclassified wherever ecessary. As per our Report of eve date For Sadeep Rathi & Associates Chartered Accoutats For Niti Alloys Global Limited Sadeep Rathi Nipu Kedia Arvid Jala Proprietor Director Director Membership Di : Di : Firm Regd W Mumbai, the 28th day of May,