అకౌంట్స్ గమనికలుGolkonda Aluminium Extrusions Ltd.

Mar 31, 2025

Segment Reporting

Operating segments are defined as components of an enterprise for which discrete financial information is available that is evaluated regularly by the Chief Operating Decision Maker, in deciding how to allocate resources and assessing performance. Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker. Based on the management approach as defined in Ind AS 108, the Chief Operating Decision Maker evaluates the Company''s performance based on only one segment i.e. Trading of shares and Securities.

Note: The amounts are gross and undiscounted, and include contractual interest payments and exclude the impact of netting agreements (if any). The interest payments on variable interest rate loans in the tables above reflect market forward interest rates at the respective reporting dates and these amounts may change as market interest rates change. Except for these financial liabilities, it is not expected that cash flows included in the maturity analysis could occur significantly earlier, or at significantly different amounts. When the amount payable is not fixed, the amount disclosed has been determined with reference to conditions existing at the reporting date.

Market Risk

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of Foreign Exchange Risk and Interest Rate Risk.

Foreign Exchange Risk

Foreign Exchange Risk is the exposure of the Company to the potential impact of the movement in foreign exchange rate. The Company does not have any material foreign currency exposure at the balance sheet date.

Interest Rate Risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market rates. The company''s exposure to the risk of changes in market interest rate relates primarily to company''s borrowing with floating interest rates. The Company do not have any significant interest rate risk on its current borrowing due to their short tenure.

28 Capital Management

The Company objective to manage its capital is to ensure continuity of business while at the same time provide reasonable returns to its various stakeholders but keep associated costs under control. In order to achieve this, requirement of capital is reviewed periodically with reference to operating and business plans that take into account capital expenditure and strategic investments. Sourcing of capital is done through judicious combination of equity/internal accruals and borrowings, both short term and long term. Net debt (total borrowings less cash and cash equivalents) to equity ratio is used to monitor capital.

30.0 ADDITIONAL REGULATORY REQUIREMENTS SCHEDULE III:

The Company do not have any Benami property, and does not have any proceeding initiated or pending for holding any Benami property under Benami Transactions ^30-1 (Prohibition) Act 1988, (45 of 1988).

30.2 The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

30.3 The Company have not traded or invested in crypto currency or virtual currency during the financial year.

The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries)

'' with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the

Company (ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether '' recorded in writing or otherwise) that the Group shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the

funding party (ultimate beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during 30.6 the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act,

1961”.

The Company has not been declared as a wilful defaulter by any bank or financial institution or other lender in accordance with the guidelines on wilful . defaulters issued by the Reserve Bank of India.

30.8 The Company does not have any transactions with Companies which are struck off.

Previous year figures have been reclassified/regrouped to confirm the presentation requirements and the requirements laid down in Division-I of the Schedule-III of the Companies Act, 2013.

Golkonda Aluminium Extrusions Limited (Formerly known as Alumeco India Extrusion Limited) (“the Company”) was in the business of manufacturing of aluminum extrusion in India. In July 2013, Management of the Company took decision to close down the manufacturing facility due to various adverse business conditions. Further, during the financial year 2016-17, the Company sold its manufacturing facility on lump sum consideration. The Company is a public limited company and is listed on Bombay Stock Exchange (BSE).

Note 1: BASIS OF PREPARATION OF FINANCIAL STATEMENTS

a) Basis of preparation and compliance with Ind AS

(1) The financial statements are prepared in accordance with and in compliance, in all material aspects, with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (the “Act”) read along with Companies (Indian Accounting Standards) Rules, as amended and other provisions of the Act. The presentation of the Financial Statements is based on Ind AS Schedule III of the Companies Act, 2013.

(2) The financial statements for the year ended March 31, 2025 were approved for issue by the Board of Directors on May 30, 2024.

b) Basis of measurement

The financial statements have been prepared on an accrual basis and in accordance with the historical cost convention, unless otherwise stated. All assets and liabilities are classified into current and noncurrent generally based on the nature of product/ activities of the Company and the normal time between acquisition of assets/liabilities and their realisation/settlement in cash or cash equivalent. The Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

c) Functional and presentation currency

These Ind AS Financial Statements are prepared in Indian Rupee which is the Company’s functional currency.

Note 2: SIGNIFICANT ACCOUNTING POLICIES

The Company has applied following accounting policies to all periods presented in the Ind AS Financial Statement:

a) Revenue Recognition

Revenue is measured at the fair value of the consideration received or receivable, net of discounts, volume rebates, outgoing sales taxes and other indirect taxes excluding excise duty.

Excise duty is a liability of the manufacturer which forms part of the cost of production, irrespective of whether the goods are sold or not. Since the recovery of excise duty flows to Company on its own account, revenue includes excise duty. However, sales tax/ value added tax (VAT) is not received by the Company on its own account. Rather, it is tax collected on value added to the commodity by the seller on behalf of the Government. Accordingly, it is excluded from revenue.

Revenue from sales is recognised when all significant risks and rewards of ownership of the commodity sold are transferred to the customer which generally coincides with delivery. Revenues from sale of byproducts are included in revenue.

Export benefits are accounted on recognition of export sales. Dividend income is recognised when the right to receive payment is established. Interest income is recognised using effective rate of interest method.

b) Property, Plant and Equipment

(i) Property, plant and equipment

The Company has applied Ind AS 16 with retrospective effect for all of its property, plant and equipment as at the transition date, viz., 1 April 2016.

The initial cost of property, plant and equipment comprises its purchase price, including import duties and non-refundable purchase taxes, attributable borrowing cost and any other directly attributable costs of bringing an asset to working condition and location for its intended use. It also includes the present value of the expected cost for the decommissioning and removing of an asset and restoring the site after its use, if the recognition criteria for a provision are met.

Expenditure incurred after the property, plant and equipment have been put into operation, such as repairs and maintenance, are normally charged to the statements of profit and loss in the period in which the costs are incurred. Major inspection and overhaul expenditure is capitalized if the recognition criteria are met.

When significant parts of plant and equipment are required to be replaced at intervals, the Company depreciates them separately based on their specific useful lives. Likewise, when a major inspection is performed, its cost is recognised in the carrying amount of the plant and equipment as a replacement if the recognition criteria are satisfied. All other repair and maintenance costs are recognised in the statement of profit and loss as incurred.

Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the proceeds from disposal with the carrying amount of property, plant and equipment, and are recognized net within other income/other expenses in statement of profit and loss.

An item of property, plant and equipment and any significant part initially recognised is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Any gain or loss arising on recognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of profit and loss, when the asset is derecognized.

The residual values, useful lives and methods of depreciation of property, plant and equipment are reviewed at each financial year end and adjusted prospectively, if appropriate.

(ii) Capital work in progress

Assets in the course of construction are capitalized in capital work in progress account. At the point when an asset is capable of operating in the manner intended by management, the cost of construction is transferred to the appropriate category of property, plant and equipment. Costs associated with the commissioning of an asset are capitalized when the asset is available for use but incapable of operating at normal levels until the period of commissioning has been completed. Revenue generated from production during the trial period is credited to capital work in progress.

(iii) Depreciation

Assets in the course of development or construction and freehold land are not depreciated.

Other property, plant and equipment are stated at cost less accumulated depreciation and any provision for impairment. Depreciation commences when the assets are ready for their intended use.

Depreciation is calculated on the depreciable amount, which is the cost of an asset less its residual value. Depreciation is provided at rates calculated to write off the cost, less estimated residual value, of each asset on a written down value basis over its expected useful life (determined by the management based on technical estimates).

Individual items of assets costing upto Rs. 5,000 are fully depreciated in the year of acquisition.

Major inspection and overhaul costs are depreciated over the estimated life of the economic benefit derived from such costs. The carrying amount of the remaining previous overhaul cost is charged to the statement of profit and loss if the next overhaul is undertaken earlier than the previously estimated life of the economic benefit.

Depreciation methods, useful lives and residual values are reviewed at each financial year end and changes in estimates, if any, are accounted for prospectively.

d) Intangible assets

Intangible assets acquired are measured on initial recognition at cost. Following initial recognition, intangible assets are carried at cost less any accumulated amortization and accumulated impairment losses.

Intangible assets are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets is recognised in the statement of profit and loss unless such expenditure forms part of carrying value of another asset.

Gains or losses arising from recognition of an intangible asset are measured as the difference between the net disposal proceeds and the carrying amount of the asset and are recognised in the statement of profit and loss when the asset is derecognized.

e) Financial instruments, Financial assets, Financial liabilities and Equity instruments

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the relevant instrument and are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities measured at fair value through profit or loss) are added to or deducted from the fair value on initial recognition of financial assets or financial liabilities. Purchase or sale of financial assets that require delivery of assets within a time frame established by regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date when the Company commits to purchase or sell the asset.

Financial Assets

Recognition: Financial assets include Investments, Trade receivables, Advances, Security Deposits, Cash and cash equivalents. Such assets are initially recognised at transaction price when the Company becomes party to contractual obligations. The transaction price includes transaction costs unless the asset is being fair valued through the Statement of Profit and Loss.

Classification: Management determines the classification of an asset at initial recognition depending on the purpose for which the assets were acquired. The subsequent measurement of financial assets depends on such classification.

Financial assets are classified as those measured at:

(a) amortised cost, where the financial assets are held solely for collection of cash flows arising from payments of principal and/ or interest.

(b) fair value through other comprehensive income (FVTOCI), where the financial assets are held not only for collection of cash flows arising from payments of principal and interest but also from the

sale of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in other comprehensive income.

(c) fair value through profit or loss (FVTPL), where the assets are managed in accordance with an approved investment strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value being recognised in the Statement of Profit and Loss in the period in which they arise.

Trade receivables, Advances, Security Deposits, Cash and cash equivalents etc. are classified for measurement at amortised cost while investments may fall under any of the aforesaid classes. However, in respect of particular investments in equity instruments that would otherwise be measured at fair value through profit or loss, an irrevocable election at initial recognition may be made to present subsequent changes in fair value through other comprehensive income.

Impairment: The Company assesses at each reporting date whether a financial asset (or a group of financial assets) such as investments, trade receivables, advances and security deposits held at amortised cost and financial assets that are measured at fair value through other comprehensive income are tested for impairment based on evidence or information that is available without undue cost or effort. Expected credit losses are assessed and loss allowances recognised if the credit quality of the financial asset has deteriorated significantly since initial recognition.

Reclassification: When and only when the business model is changed, the Company shall reclassify all affected financial assets prospectively from the reclassification date as subsequently measured at amortised cost, fair value through other comprehensive income, fair value through profit or loss without restating the previously recognised gains, losses or interest and in terms of the reclassification principles laid down in the Ind AS relating to Financial Instruments.

De-recognition: Financial assets are derecognised when the right to receive cash flows from the assets has expired, or has been transferred, and the Company has transferred substantially all of the risks and rewards of ownership. Concomitantly, if the asset is one that is measured at:

(a) amortised cost, the gain or loss is recognised in the Statement of Profit and Loss;

(b) fair value through other comprehensive income, the cumulative fair value adjustments previously taken to reserves are reclassified to the Statement of Profit and Loss unless the asset represents an equity investment in which case the cumulative fair value adjustments previously taken to reserves is reclassified within equity.

Income Recognition: Interest income is recognised in the Statement of Profit and Loss using the effective interest method. Dividend income is recognised in the Statement of Profit and Loss when the right to receive dividend is established.

Financial Liabilities

Borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective contractual obligations. They are subsequently measured at amortised cost. Any discount or premium on redemption / settlement is recognised in the Statement of Profit and Loss as finance cost over the life of the liability using the effective interest method and adjusted to the liability figure disclosed in the Balance Sheet.

Financial liabilities are derecognised when the liability is extinguished, that is, when the contractual obligation is discharged, cancelled and on expiry.

Offsetting Financial Instruments

Financial assets and liabilities are offset and the net amount is included in the Balance Sheet where there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or realise the asset and settle the liability simultaneously.

Equity Instruments

Equity instruments are recognised at the value of the proceeds, net of direct costs of the capital issue.

f) Derivative financial instruments and hedge accounting

Initial recognition and subsequent measurement

In order to hedge its exposure to foreign exchange, interest rate, and commodity price risks, the Company enters into forward, futures and other derivative financial instruments. The Company does not hold any derivative financial instruments.

g) Cash and cash equivalents

Cash and cash equivalent in the balance sheet comprise cash at banks and on hand and short-term deposits with an original maturity of three months or less, which are subject to an insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as defined above.

h) Borrowing Costs

Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset. All other borrowing costs are expensed in the period in which they occur. Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds. Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.

i) Impairment of Non-financial assets

The Company assesses, at each reporting date, whether there is an indication that an asset may be impaired. If any indication exists, or when annual impairment testing for an asset is required, the Company estimates the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s (CGU) fair value less costs of disposal and its value in use. Recoverable amount is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. When the carrying amount of an asset or CGU exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount.

Impairment losses of continuing operations, including impairment on inventories, are recognised in the statement of profit and loss.

An assessment is made at each reporting date to determine whether there is an indication that previously recognised impairment losses no longer exist or have decreased. If such indication exists, the Company estimates the asset’s or CGU’s recoverable amount. A previously recognised impairment loss is reversed only if there has been a change in the assumptions used to determine the asset’s recoverable amount since the last impairment loss was recognised. The reversal is limited so that the carrying amount of the asset does not exceed its recoverable amount, nor exceed the carrying amount that would have been determined, net of depreciation, had no impairment loss been recognised for the asset in prior years. Such reversal is recognised in the statement of profit and loss.

j) Government Grants

Government grants are recognised where there is reasonable assurance that the grant will be received and all attached conditions will be complied with. When the grant relates to an expense item, it is recognised as income on a systematic basis over the periods that the related costs, for which it is intended to compensate, are expensed. When the grant relates to an asset, it is treated as deferred income and released to the statement of profit and loss over the expected useful lives of the assets

concerned. When the Company receives grants of non-monetary assets, the asset and the grant are recorded at fair value amounts and released to statement of profit and loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset. When loans or similar assistance are provided by governments or related institutions, with an interest rate below the current applicable market rate, the effect of this favourable interest is regarded as a government grant. The loan or assistance is initially recognised and measured at fair value and the government grant is measured as the difference between the initial carrying value of the loan and the proceeds received. The loan is subsequently measured as per the accounting policy applicable to financial liabilities.

k) Inventories

Inventories are valued at the lower of cost and net realisable value except scrap and by products which are valued at net realisable value.

Costs incurred in bringing the inventory to its present location and condition are accounted for as follows:

• Raw materials: cost includes cost of purchase and other costs incurred in bringing the inventories to their present location and condition. Cost is determined on weighted average basis.

• Finished goods and work in progress: cost includes cost of direct materials and labour and a proportion of manufacturing overheads based on the normal operating capacity, but excluding borrowing costs. Cost is determined on weighted average basis.

Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the estimated costs necessary to make the sale.

Obsolete inventories are identified and written down to net realisable value. Slow moving and defective inventories are identified and provided to net realisable value.

l) Taxation

Current income tax

Current income tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date.

Current income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity. Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax

Deferred tax is provided using the liability method on temporary differences between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes at the reporting date. Deferred tax liabilities are recognised for all taxable temporary differences, except when it is probable that the temporary differences will not reverse in the foreseeable future.

Deferred tax assets are recognised for all deductible temporary differences, the carry forward of unused tax credits and any unused tax losses. Deferred tax assets are recognised to the extent that it is probable that taxable profit will be available against which the deductible temporary differences, and the carry forward of unused tax credits and unused tax losses can be utilized.

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised. Unrecognised deferred tax assets are re-assessed at each reporting date

and are recognised to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered.

Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realised or the liability is settled, based on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.

Deferred tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other comprehensive income or in equity). Deferred tax items are recognised in correlation to the underlying transaction either in OCI or directly in equity.

Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity and the same taxation authority.

Sales/ value added taxes paid on acquisition of assets or on incurring expenses

Expenses and assets are recognised net of the amount of sales/ value added taxes paid, except:

(1) When the tax incurred on a purchase of assets or services is not recoverable from the taxation authority, in which case, the tax paid is recognised as part of the cost of acquisition of the asset or as part of the expense item, as applicable.

(2) When receivables and payables are stated with the amount of tax included, the net amount of tax recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the balance sheet.

Minimum Alternate Tax (MAT) paid in accordance with the tax laws, which gives future economic benefits in the form of adjustment to future income tax liability, is considered as an asset if there is convincing evidence that the Company will pay normal income tax. Accordingly, MAT is recognised as an asset in the Balance Sheet when it is probable that future economic benefit associated with it will flow to the Company.

m) Employee benefits

¦ Short-term employee benefits

Employee benefits payable wholly within twelve months of receiving employee services are classified as short-term employee benefits. These benefits include salaries and wages, performance incentives and compensated absences which are expected to occur in next twelve months. The undiscounted amount of short-term employee benefits to be paid in exchange for employee services is recognised as an expense as the related service is rendered by employees.

Compensated absences:

Compensated absences accruing to employees and which can be carried to future periods but where there are restrictions on availment or encashment or where the availment or encashment is not expected to occur wholly in the next twelve months, the liability on account of the benefit is determined actuarially using the projected unit credit method.

¦ Post-employment benefits

Defined contribution plan

Retirement benefits in form of superannuation is a defined contribution scheme. The Company has no obligation, other than the contribution payable to the superannuation fund. The Company recognizes contribution payable to the superannuation scheme as an expenditure, when an employee renders the related service. If the contribution payable to the scheme for service received before the balance sheet date exceeds the contribution already paid, the deficit payable to the scheme is recognised as a liability after deducting the contribution already paid. If the contribution already paid exceeds the contribution due for services received before the balance sheet date, then excess is recognised as an asset to the extent that the pre-payment will lead to a reduction in future payment or a cash refund.

1. Defined benefit plans - Gratuity and Provident fund

1. Gratuity

The Company has a defined benefit plan (the “Gratuity Plan”). The Gratuity Plan provides a lump sum payment to employees who have completed five years or more of service at retirement, disability or termination of employment, being an amount based on the respective employee’s last drawn salary and the number of years of employment with the Company. Presently the Company’s gratuity plan is unfunded.

2. Provident Fund

Eligible employees of the Company receive benefits from a provident fund, which is a defined benefit plan. Both the eligible employee and the Company make monthly contributions to the provident fund plan equal to a specified percentage of the covered employee''s salary.

3. Termination benefits

Termination benefits are payable when employment is terminated by the Company before the normal retirement date, or when an employee accepts voluntary redundancy in exchange for these benefits. The Company recognises termination benefits at the earlier of the following dates: (a) when the Company can no longer withdraw the offer of those benefits; and (b) when the Company recognises costs for a restructuring that is within the scope of Ind AS 37 and involves the payment of termination benefits. In the case of an offer made to encourage voluntary redundancy, the termination benefits are measured based on the number of employees expected to accept the offer. Benefits falling due more than 12 months after the end of the reporting period are discounted to present value.

n) Provision for liabilities and charges, Contingent liabilities and contingent assets

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources, that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Unwinding of the discount is recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting date and are adjusted to reflect the current best estimate.

The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance sheet. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company. Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that such contingencies will have a material effect on its financial position or profitability.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

o) Foreign currency transactions

In the financial statements of the Company, transactions in currencies other than the functional currency are translated into the functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in other currencies are translated into the functional currency at exchange rates prevailing on the reporting date. Non-monetary assets and liabilities denominated in other currencies and measured at historical cost or fair value are translated at the exchange rates prevailing on the dates on which such values were determined.

All exchange differences are included in the statement of profit and loss except any exchange differences on monetary items designated as an effective hedging instrument of the currency risk of designated forecasted sales or purchases, which are recognized in the other comprehensive income.

o) Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing the profit and loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding during the period. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted average number of equity shares outstanding for the effects of all dilutive potential equity shares.

p) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker. Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Inter segment revenue are accounted for based on the cost price. Revenue, expenses, assets and liabilities which are not allocable to segments on a reasonable basis, are included under "Unallocated revenue/ expenses/ assets/ liabilities".

q) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit / (loss) before tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

r) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

For arrangements entered into prior to 1 April 2015, the Company has determined whether the arrangement contains lease on the basis of facts and circumstances existing on the date of transition.

s) Company as a lessee

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and rewards incidental to ownership to the Company is classified as a finance lease.

Finance leases are capitalized at the commencement of the lease at the inception date fair value of the leased property or, if lower, at the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in finance costs in the statement of profit and loss, unless they are directly attributable to qualifying assets, in which case they are capitalized in accordance with the Company’s general policy on the borrowing costs. Contingent rentals are recognised as expenses in the periods in which they are incurred.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straightline basis over the lease term.

t) Use of Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and expenses for the years presented. Actual results may differ from these estimates under different assumptions and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and future periods affected.

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Mar 31, 2024

m) Provision for liabilities and charges, Contingent liabilities and contingent assets

The assessments undertaken in recognising provisions and contingencies have been made in accordance with the applicable Ind AS.

Provisions represent liabilities to the Company for which the amount or timing is uncertain. Provisions are recognized when the
Company has a present obligation (legal or constructive), as a result of past events, and it is probable that an outflow of resources,
that can be reliably estimated, will be required to settle such an obligation. If the effect of the time value of money is material,
provisions are determined by discounting the expected future cash flows to net present value using an appropriate pre-tax discount
rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
Unwinding of the discount is recognized in the statement of profit and loss as a finance cost. Provisions are reviewed at each reporting
date and are adjusted to reflect the current best estimate.

The Company has significant capital commitments in relation to various capital projects which are not recognized on the balance
sheet. In the normal course of business, contingent liabilities may arise from litigation and other claims against the Company.
Guarantees are also provided in the normal course of business. There are certain obligations which management has concluded, based
on all available facts and circumstances, are not probable of payment or are very difficult to quantify reliably, and such obligations
are treated as contingent liabilities and disclosed in the notes but are not reflected as liabilities in the financial statements. Although
there can be no assurance regarding the final outcome of the legal proceedings in which the Company involved, it is not expected that
such contingencies will have a material effect on its financial position or profitability.

Contingent assets are not recognised but disclosed in the financial statements when an inflow of economic benefits is probable.

n) Foreign currency transactions

In the financial statements of the Company, transactions in currencies other than the functional currency are translated into the
functional currency at the exchange rates ruling at the date of the transaction. Monetary assets and liabilities denominated in other
currencies are translated into the functional currency at exchange rates prevailing on the reporting date. Non-monetary assets and
liabilities denominated in other currencies and measured at historical cost or fair value are translated at the exchange rates prevailing
on the dates on which such values were determined.

All exchange differences are included in the statement of profit and loss except any exchange differences on monetary items
designated as an effective hedging instrument of the currency risk of designated forecasted sales or purchases, which are recognized
in the other comprehensive income.

o) Earnings per share

The Company presents basic and diluted earnings per share (“EPS”) data for its equity shares. Basic EPS is calculated by dividing
the profit and loss attributable to equity shareholders of the Company by the weighted average number of equity shares outstanding
during the period. Diluted EPS is determined by adjusting the profit and loss attributable to equity shareholders and the weighted
average number of equity shares outstanding for the effects of all dilutive potential equity shares.

p) Segment Reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision-maker.
Revenue and expenses are identified to segments on the basis of their relationship to the operating activities of the segment. Inter
segment revenue are accounted for based on the cost price. Revenue, expenses, assets and liabilities which are not allocable to
segments on a reasonable basis, are included under "Unallocated revenue/ expenses/ assets/ liabilities".

q) Cash Flow Statement

Cash flows are reported using indirect method as set out in Ind AS -7 “Statement of Cash Flows”, whereby profit / (loss) before tax
is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments.
The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

r) Leases

The determination of whether an arrangement is (or contains) a lease is based on the substance of the arrangement at the inception of
the lease. The arrangement is, or contains, a lease if fulfilment of the arrangement is dependent on the use of a specific asset or assets
and the arrangement conveys a right to use the asset or assets, even if that right is not explicitly specified in an arrangement.

For arrangements entered into prior to 1 April 2015, the Company has determined whether the arrangement contains lease on the
basis of facts and circumstances existing on the date of transition.

Company as a lessee

A lease is classified at the inception date as a finance lease or an operating lease. A lease that transfers substantially all the risks and
rewards incidental to ownership to the Company is classified as a finance lease.

Finance leases are capitalized at the commencement of the lease at the inception date fair value of the leased property or, if lower, at
the present value of the minimum lease payments. Lease payments are apportioned between finance charges and reduction of the
lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are recognised in
finance costs in the statement of profit and loss, unless they are directly attributable to qualifying assets, in which case they are
capitalized in accordance with the Company’s general policy on the borrowing costs. Contingent rentals are recognised as expenses
in the periods in which they are incurred.

Operating lease payments are recognised as an expense in the statement of profit and loss on a straight-line basis over the lease term.

s) Use of Estimates and Judgments

The preparation of the financial statements in conformity with Ind AS requires management to make judgments, estimates and
assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income, expenses and
disclosures of contingent assets and liabilities at the date of these financial statements and the reported amounts of revenues and
expenses for the years presented. Actual results may differ from these estimates under different assumptions and conditions.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the
period in which the estimate is revised and future periods affected.

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Jun 30, 2015

Company overview

Golkonda Aluminium Extrusions Limited (Formerly known as Alumeco India Extrusion Limited) ("the Company") manufactures aluminum extrusion in India. The Company is a public limited company and is listed on Bombay Stock Exchange (BSE).

1. The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by equity shareholders.

2. Terms and rights attached to the 10% cumulative redeemable optionally convertible preference shares: 10% Cumulative Redeemable Optionally Convertible Preference Shares (CRCPS) of Rs. 10 each had been allotted by the Company in the year 2005. As per the terms of the arrangement these preference shares including unpaid dividend could be converted into ordinary equity shares of the Company of Rs 10 each at any time after 3 years from date of allotment or could be redeemed by the Company at par in three equal installments commencing from the end of 5th, 6th and 7th year from the date of allotment. During the year 2009-10, the Company had obtained extension of redemption period by 3 years from the preference shareholders (i.e. redemption at end of 8th, 9th and 10th year from the date of allotment). Further extension of redemption period by 3 years has been obtained with all other terms remaining unaltered. Accordingly, these preference shares shall now be redeemed by the Company at par in three equal installments commencing from the end of 11th, 12th and 13th year from the date of allotment. No conversion option has been exercised so far.

3. Going concern assumption

The Company has accumulated losses of Rs. 161,161,535 (30 June 2014: Rs. 271,440,790) as on that date compared to the shareholder's funds of Rs. 160,522,805 (30 June 2014: Rs. 160,522,805). The Company was declared as a sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) on 9 February 2010 and Canara Bank has been appointed as an Operating Agency with effect from 17 December 2012 to assist in working out a rehabilitation scheme (earlier IDBI Bank). Post year end, in July 2013, the Alumeco Group (Denmark) took a commercial decision to stop extending the facility of supplying raw material on credit to the Company, as was being done in the past. This decision, coupled with the accumulated losses in the Company and the prevailing adverse business conditions (on account of liquidity crunch, labour problems, power cuts, poor order book position due to bad economic scenario, credit crunch in the market, etc.), has further strained the financial position of the Company. However, the Board of Directors and the Management of the Company are actively pursuing various available options to rehabilitate the Company under the aegis of BIFR / Operating Agency and currently believe that the Company would be in a position to continue as a going concern. Hence, these financial statements have been prepared under the going concern assumption.

4. Capital commitments and contingent liabilities

Rs.

Particulars As at As at 30 June 2015 30 June 2014

(a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for - -

(b) Preference share dividend 33,956,230 30,532,230

(c) Tax on preference dividend not provided for 5,561,485 4,979,577

(d) Excise matters under dispute 34,029,952 34,029,952

(e) Income Tax matters under dispute:

Relevant Income under Forum where dispute is pending Assessment Year dispute (Rs.)

1994- 95 2,03,59,259

1994 95 2,03,59,259 Honorable High Court of Andhra Pradesh 1995- 96 51,72,082

2003- 04 2,89,37,712

2004- 05 1,82,56,357

2005- 06 1,85,46,533 ITAT has redirected the case to TPO.

2006- 07 3,51,83,477 The case is pending before TPO.

2007- 08 14,61,08,591

2008- 09 12,83,00,000

2010- 11 7,22,81,070 Income Tax Appellate Tribunal

2011- 12 1,09,90,023 Commissioner of Income-Tax(Appeal)

The consequential liability if any, in respect of taxes and penalties for the subsequent assessment years is presently not determinable as the appeal filed in this regard are pending before the various authorities.

(f) For the fiscal year 2012-2013 to 2013-2014, the Company has paid sales tax at a concessional rate against 'C' Form in respect of its interstate sales for which it is required to obtain 'C' forms from its customers and submit to the sales tax department. In the event, the Company is unable to collect and submit such 'C' forms it will be required to pay the sales tax at the higher rate together with interest and penalties as applicable. As on the balance sheet signing date, the aggregate amount of 'C' forms to be collected is Rs. 25,117,522. Whilst management is confident that it will be able to collect all outstanding 'C' forms before the completion of relevant assessment and that no liability in this respect will devolve upon the Company, the aggregate additional tax in the event that none of the 'C' forms are collected would be approximately Rs. 753,526.

(g) The Company has received a letter from BSE dated 12th January, 2015 for non submission of Financial Results for two consecutive quarters i.e., June 2014 and September 2014 and BSE has also levied a penalty of Rs. 1,206,713. However, the Company has requested for waiver of penalty vide letter dated 15th January, 2015.

(h) As per Accounting Standard, 15 Employee Benefits, estimated liability for 58 retrenched workers on account of retrenchment compensation and VRS compensation is amounting to Rs. 6,490,142/- and Rs. 4,326,761/- respectively based on previous settlements.

However, the case relating to closure of unit is pending before Hon'ble High Court of Andhra Pradesh and the case filed by the workers before the Labour Court for payment of wages. The outcome of these cases cannot be determined at this stage of time.

5. (A) Related party transactions

Name of the related party Country Nature of relationship

OSI India Holding A/S ('OSI') Denmark Immediate holding company

Alumeco A/S Denmark Holding Company of OSI

H S Metalservice nr 2 ApS (HSM) Denmark Holding Company of Alumeco A/S

H S Metalservice ApS Denmark Holding Company of HSM

Alumeco Handlerservices GmbH Germany Subsidiary of Alumeco A/S

Mr. Anand Parkash India Key Management Personnel

6. Employee benefit plans

The Company had filed an application for closure of unit before the Government of Andhra Pradesh which has been rejected and subsequently the Company has filed appeal before the Hon'ble High Court of Andhra Pradesh which is pending for hearing. The workmen have been paid wages till 17-10- 2013 including the statutory 90 day notice period.

No actuarial valuation is being done, as at the end of the year, there is no employee on whom gratuity liability is to be accrued. Hence, the provision for gratuity (Rs. 4,945,334) and compensated absences (Rs. 988,708) for retrenched employees is being made on actual basis.

During the previous year, the Company has retrenched 97 workers out of which retrenchment compensation and VRS compensation was paid to 39 workers with mutual agreement on individual basis. For the balance 58 workers, the amount of retrenchment compensation and VRS compensation has been shown as contingent liability.

7. Transfer pricing

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Sections 92-92F of the Income-tax Act, 1961. However, during the year, there is no international transaction.

8. Segment reporting

Segments are identified in line with AS-17 "Segment Reporting". The Company is in the business of manufacturing of aluminum profiles and in view of Company's internal organisation, management structure, internal financial reporting system it has identified manufacturing of aluminum profiles as its only primary business segment. The analysis of geographical segments is based on location of major customers of the Company.

Geographical segment:

The Company sells aluminium extrusions in both, overseas and India, geographical segments. However, during the year ended June 2015, there is no revenue, since the production is closed. The following table shows revenue of the segments for the year ended 30 June 2015 and for the year ended 30 June 2014 and assets of the segments as at 30 June 2015 and as at 30 June 2014.

9. Remuneration to key managerial personnel for the year ended 30 June 2015 includes Rs. Nil (30 June 2014: Rs. Nil) representing remuneration beyond the limits specified in Schedule XIII to the Companies Act, 1956.

10. Operating leases

The Company has taken guest house under cancellable operating lease agreement. The Company intends to renew such leases in normal course of business. Total rental expense under cancellable operating leases for the current year amounts to Rs. 396,000 (30 June 2014: Rs.396,000).

11. Extraordinary Items consist of Rs. 96.46 million (excluding exchange effect) due to write back of amount payable to creditors with mutual consent.

12. Previous year comparatives

Previous year figures have been regrouped / reclassified / rearranged, wherever necessary, to conform to those of the current year.

As per our report of even date attached

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Jun 30, 2014

(All amounts are in Indian Rupees except for share data or otherwise stated)

1. Terms and rights attached to the 10% cumulative redeemable optionally convertible preference shares: 10% Cumulative Redeemable Optionally Convertible Preference Shares (CRCPS) of Rs. 10 each had been allotted by the Company in the year 2005. As per the terms of the arrangement these preference shares including unpaid dividend could be converted into ordinary equity shares of the Company of Rs 10 each at any time after 3 years from date of allotment or could be redeemed by the Company at par in three equal installments commencing from the end of 5th, 6th and 7th year from the date of allotment. During the year 2009-10, the Company had obtained extension of redemption period by 3 years from the preference shareholders (i.e. redemption at end of 8th, 9th and 10th year from the date of allotment). Further extension of redemption period by 3 years has been obtained with all other terms remaining unaltered. Accordingly, these preference shares shall now be redeemed by the Company at par in three equal installments commencing from the end of 11th, 12th and 13th year from the date of allotment. No conversion option has been exercised so far.

Company overview

Alumeco India Extrusion Limited ("the Company") manufactures aluminum extrusion in India. The Company is a public limited company and is listed on Bombay Stock Exchange (BSE).

1.2 Going concern assumption

The Company has incurred a net loss of Rs. 18,914,243 (30 June 2013: Rs. 54,674,519) for the year ended 30 June 2014. It also has accumulated losses of Rs. 271,440,790 (30 June 2013: Rs. 252,526,547) as on that date compared to the shareholder''s funds of Rs. 160,522,805 (30 June 2013: Rs. 160,522,805). The Company was declared as a sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) on 9 February 2010 and Canara Bank has been appointed as an Operating Agency with effect from 17 December 2012 to assist in working out a rehabilitation scheme (earlier IDBI Bank). Post year end, in July 2013, the Alumeco Group (Denmark) took a commercial decision to stop extending the facility of supplying raw material on credit to the Company, as was being done in the past. This decision, coupled with the accumulated losses in the Company and the prevailing adverse business conditions (on account of liquidity crunch, labour problems, power cuts, poor order book position due to bad economic scenario, credit crunch in the market, etc.), has further strained the financial position of the Company. However, the Board of Directors and the Management of the Company are actively pursuing various available options to rehabilitate the Company under the aegis of BIFR / Operating Agency and currently believe that the Company would be in a position to continue as a going concern. Hence, these financial statements have been prepared under the going concern assumption.

1.3 Capital commitments and contingent liabilities

Particulars As at As at 30 June 2014 30 June 2013

(a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for

(b) Preference share dividend 30,532,230 27,108,230

(c) Tax on preference dividend not provided for 4,979,577 4,397,668

(d) Excise matters under dispute 34,029,952 5,011,947



(e) Income Tax matters under dispute:

Relevant Income Under Forum where dispute is pending Asessment year Dispute rs

1994-95 2,03,59,259 Honorable High Court of Andhra Pradesh

1995-96 51,72,082

2003-04 2,89,37,712

2004-05 1,82,56,357

2005-06 1,85,46,533 ITAT has redirected the case to TPO.

2006-07 3,51,83,477 The case is pending before TPO.

2007-08 14,61,08,591

2008-09 12,83,00,000

2010-11 7,22,81,070 Income Tax Appellate Tribunal

The consequential liability if any, in respect of taxes and penalties for the subsequent assessment years is presently not determinable as the appeal filed in this regard are pending before the various authorities.

(f) For the fiscal year 2012-2013 to 2013-2014, the Company has paid sales tax at a concessional rate against ''C'' Form in respect of its interstate sales for which it is required to obtain ''C'' forms from its customers and submit to the sales tax department. In the event, the Company is unable to collect and submit such ''C'' forms it will be required to pay the sales tax at the higher rate together with interest and penalties as applicable. As on the balance sheet signing date, the aggregate amount of ''C'' forms to be collected is Rs. 31,250,830. Whilst management is confident that it will be able to collect all outstanding ''C'' forms before the completion of relevant assessment and that no liability in this respect will devolve upon the Company, the aggregate additional tax in the event that none of the ''C'' forms are collected would be approximately Rs. 937,525.

(g) The Company has received a letter from BSE dated 12th January, 2015 for non submission of Financial Results for two consecutive quarters i.e., June 2014 and September 2014 and BSE has also levied a penalty of Rs. 1,206,713. However, the Company has requested for waiver of penalty vide letter dated 15th January, 2015.

1.4 Employee benefit plans

The Company had filed an application for closure of unit before the Government of Andhra Pradesh which has been rejected and subsequently the Company has filed appeal before the Hon''ble High Court of Andhra Pradesh which is pending for hearing. The workmen have been paid wages till 17-10-2013 including the statutory 90 day notice period.

No actuarial valuation is being done, as at the end of the year, there is no employee on whom gratuity liability is to be accrued. Hence, the provision for gratuity (Rs. 5,790,798) and compensated absences (Rs. 1,315,938) for retrenched employees is being made on actual basis.

During the year, the Company has retrenched 97 workers out of which retrenchment compensation and VRS compensation was paid to 34 workers with mutual agreement on individual basis. For the balance 63 workers, the amount of retrenchment compensation and VRS compensation has been shown as contingent liability.

1.5 Transfer pricing

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Sections 92-92F of the Income-tax Act, 1961. However, during the year, there is no international transaction.

In accordance with AS 22, "Accounting for taxes on income" prescribed by the Rules, due to brought forward losses under the taxation laws and on account of absence of virtual certainty on realisation of deferred tax assets, deferred tax assets on unabsorbed depreciation, carried forward losses and other temporary timing differences has been recognized only to the extent of deferred tax liability.

1.6. Segment reporting

Segments are identified in line with AS-17 "Segment Reporting". The Company is in the business of manufacturing of aluminum profiles and in view of Company''s internal organisation, management structure, internal financial reporting system it has identified manufacturing of aluminum profiles as its only primary business segment. The analysis of geographical segments is based on location of major customers of the Company.

Geographical segment:

The Company sells aluminium extrusions in both, overseas and India, geographical segments. However, during the year ended June 2014, total revenue comes from the Indian segment [0% from the overseas segment for the year ended 30 June 2014 (16.09% from the overseas segment for the year ended 30 June 2013)]. The following table shows revenue of the segments for the year ended 30 June 2014 and for the year ended 30 June 2013 and assets of the segments as at 30 June 2014 and as at 30 June 2013.

1.7 Remuneration to key managerial personnel for the year ended 30 June 2014 and 30 June 2013, includes Nil representing remuneration beyond the limits specified in Schedule XIII to the Companies Act, 1956.

1.8 Operating leases

The Company has taken guest house under cancellable operating lease agreement. The Company intends to renew such leases in normal course of business. Total rental expense under cancellable operating leases for the current year amounts to Rs. 396,000 (30 June 2013: Rs. 396,000).

1.9 Set out below is the movement in provision balances in accordance with Accounting Standard 29, ''Provisions, Contingent Liabilities and Contingent Assets'' prescribed by Companies (Accounting Standards) Rules, 2006, (''the Rules'')

* Reversal is on account of excise provision, which has been made by the management after obtaining views from Company''s excise consultants. The said amount of Rs. 29,532,324 has now been included as contingent liability under note 2.25(d).

1.10 Previous year comparatives

Previous year figures have been regrouped / reclassified / rearranged, wherever necessary, to conform to those of the current year.

As per our report of even date attached

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Jun 30, 2013

Company overview

Alumeco India Extrusion Limited ("the Company") manufactures aluminum extrusion in India. The Company is a public limited company and is listed on Bombay Stock Exchange (BSE).

1.1 Going concern assumption

The Company has incurred a net loss ofRs. 54,674,519 (30 June 2012: Rs. 27,443,738) for the year ended 30 June 2013. It also has accumulated losses of Rs. 252,526,547 (30 June 2012: Rs. 197,852,028) as on that date compared to the shareholder''s funds of Rs. 160,522,805 (30 June 2012: Rs. 160,522,805). During the year 2009-10, the Company was declared as a sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) and Canara Bank (30 June 2012: Industrial Development Bank of India) has been appointed as an Operating Agency with effect from 17 December 2012 to assist in working out a rehabilitation scheme (earlier IDBI Bank). Post year end, in July 2013, the Alumeco Group (Denmark) took a commercial decision to stop extending the facility of supplying raw material on credit to the Company, as was being done in the past. This decision, coupled with the accumulated losses in the Company and the prevailing adverse business conditions (on account of liquidity crunch, labour problems, power cuts, poor order book position due to bad economic scenario, credit crunch in the market, etc.), has further strained the financial position of the Company. However, the Board of Directors and the Management of the Company are actively pursuing various available options to rehabilitate the Company under the aegis of BIFR / Operating Agency and currently believe that the Company would be in a position to continue as a going concern. Hence, these financial statements have been prepared under the going concern assumption.

1.2 Capital commitments and contingent liabilities

Particulars As at As at 30 June 2013 30 June 2012

(a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for

(b) Preference share dividend 27,108,230 23,684,230

(c) Tax on preference dividend not provided for 4,397,668 3,842,192

(d) Excise matters under dispute 5,011,947 4,489,033

(e) Sales tax matters under dispute 8,685,252

(f) The Company received an order from the Department of Income Tax under Section 92CA (3) of the Income Tax Act, 1961 disputing the method adopted by the Company in estimating the arm''s length price for international transactions with its associated parties. Consequently, the department has estimated an additional income of 7 28,937,712 and * 18,256,357 for the A.Y. 2003-04 and A.Y. 2004-05. The Company got the judgment from CIT (Appeals) in its favor but the department has filed an appeal with Income Tax Appellate Tribunal, Hyderabad (ITAT). During the current year, the ITAT has redirected the case to Transfer Pricing Officer (TPO). The Company is hopeful to get the decision in its favor.

For the A.Y. 2005-06, the department has estimated an additional income of X 33,216,328 against which the Company has gone into Appeal with CIT and the CIT Appeal has passed the order for Rs. 18,546,533 against which the Company has appealed with ITAT. During the current year, the ITAT has redirected the case to TPO.

For the A.Y. 2006-07, the TPO has added back income of Rs. 35,183,477 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the Dispute Resolution Panel (DRP), the DRP has passed the order against the Company and the Company against its order gone into appeal before ITAT. During the current year, the ITAT has redirected the case to TPO.

For the A.Y. 2007-08, the TPO has added back income of Rs. 146,108,591 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the DRP. The DRP has passed the order against the Company and the Company against its order has gone into appeal before ITAT. During the current year, the ITAT has redirected the case to TPO.

For the A.Y. 2008-09, the TPO has added back income of Rs. 128,300,000 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the DRP. The DRP has passed the order against the Company and the Company against its order has gone into appeal before ITAT.

For the A.Y. 2009-10, the TPO has added back income of ^ 104,511,462 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the DRP.

The consequential liability if any, in respect of taxes and penalties for the subsequent assessment years is presently not determinable as the appeal filed in this regard are pending before the various authorities.

(g) Further, Rs. 20,359,259 and Rs. 5,172,082 are under dispute on account of disallowance of interest on term loan, for the assessment years 1994-95 and 1995-96 respectively. The cases are lying for hearing before the Honorable High Court of Andhra Pradesh.

(c) Forthe fiscal year 2011-2012 to 2013-2014, the Company has paid sales tax at a concessional rate against ''C Form in respect of its interstate sales for which it is required to obtain ''C forms from its customers and submit to the sales tax department. In the event, the Company is unable to collect and submit such ''C forms it will be required to pay the sales tax at the higher rate together with interest and penalties as applicable. As of 30 June 2013, the aggregate amount of lC forms to be collected is Rs. 151,045,388. Whilst management is confident that it will be able to collect all outstanding ''C forms before the completion of relevant assessment and that no liability in this respect will devolve upon the Company, the aggregate additional tax in the event that none of the ''C forms are collected would be approximately Rs. 4,523,039.

1.3 Employee benefit plans

The Company has a defined benefit gratuity plan. Employees are eligible for gratuity benefits on termination or retirement in accordance with Payment of Gratuity Act, 1972.

The following tables summarise the components of net benefit expense recognised in the Statement of profit and loss and the funded status and amounts recognised in the Balance sheetforthe respective plans.

a. The following table sets forth the amount recognised in the Company''s Statement of profit and loss forthe year ended 30 June 2013 under gratuity cost:

1.4 Transfer pricing

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Sections 92-92F of the Income- tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with the associated enterprise during the financial year and expects such records to be in existence latest by the end of September 2013, as required by law. The Management is of the opinion that its international transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expenses and that of provision for taxation.

1.5 The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 6 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 30 June 2013 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier underthe said Act.

1.6. Segment reporting

Segments are identified in line with AS-17 "Segment Reporting". The Company is in the business of manufacturing of aluminum profiles and In view of Company''s internal organisation, management structure, internal financial reporting system it has identified manufacturing of aluminum profiles as its only primary business segment. The analysis of geographical segments is based on location of major customers of the Company.

Geographical segment:

The Company sells aluminium extrusions in both, overseas and India, geographical segments. However, majority of the revenues comes from the Indian segment [16.09% from the overseas segment for the year ended 30 June 2013 (19.88% from the overseas segment for the year ended 30 June 2012)]. The following table shows revenue of the segments for the year ended 30 June 2013 and for the year ended 30 June 2012 and assets of the segments as at 30 June 2013 and as at 30 June 2012.

1.7 Remuneration to key managerial personnel for the year ended 30 June 2013 and 30 June 2012, includes Rs. Nil (30 June 2012: Rs. 152,669) representing remuneration beyond the limits specified in Schedule XIII to the Companies Act, 1956.

During the year ended 30 June 2012, the Company has applied to the Central Government of India for approval for the amount. During the current year, the Central Government of India has rejected the pplication and the said amount has been reversed.

1.8 Operating leases

The Company has taken guest house under cancellable operating lease agreement. The Company intends to renew such leases in normal course of business. Total rental expense under cancellable operating leases for the current year amounts to '' 396,000 (30 June 2012: '' 396,000).

1.9 Set out below is the movement in provision balances in accordance with Accounting Standard 29, ''Provisions, Contingent Liabilities and Contingent Assets'' prescribed by Companies (Accounting Standards) Rules, 2006, (''the Rules'')

1.10 Previous year comparatives

Previous year figures have been regrouped / reclassified / rearranged, wherever necessary, to conform to those of the current year.

As per our report of even date attached.

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Jun 30, 2012

Notes :

1. Issued, subscribed paid-up capital includes:

a) 7,500,000 (30 June 2011: 7,500,000) equity shares held by OSI India Holding A/S, Denmark (holding company).

b) 3,424,000 (30 June 2011: 1,212,700) preference shares held by Alumeco A/S, Denmark (holding company of OSI India Holding A/S, Denmark).

1. Terms and rights attached to the equity shares:

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity share is entitled to one vote per share. In the event of liquidation of the Company, the holders of the equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts, if any. The distribution will be in proportion to the number of equity shares held by equity shareholders.

2. Terms and rights attached to the 10% cumulative redeemable optionally convertible preference shares: "10% Cumulative Redeemable Optionally Convertible Preference Shares (CRCPS) of Rs. 10 each had been allotted to O&S Metall import GmbH, Germany and Industrialization Fund for Developing Countries by the Company in the year 2005. As per the terms of the arrangement these preference shares including unpaid dividend can be converted into ordinary equity shares of the Company of Rs. 10 each at any time after 3 years from date of allotment or can be redeemed by the Company at par in three equal installments commencing from the end of 5th, 6th and 7th year from the date of allotment. During the year 2009-10, the Company had obtained extension of redemption period by further 3 years from the preference shareholders with all other terms remaining unaltered. Accordingly, these preference shares shall be redeemed by the Company at par in three equal installments commencing from the end of 8th, 9th and 10th year from the date of allotment. No conversion option has been exercised so far.

During the current year, IFU has transferred the said holding to Alumeco A/S, Denmark along with all rights at the existing terms and conditions. During the previous year, O&S Metall import GmbH, Germany had transferred the said holding to Alumeco A/S, Denmark along with all rights at the existing terms and conditions."

Notes:

1. Terms of repayment for unsecured loan is given below: a. Loan from IFU is repayable in 2 equal half yearly installments of Euro 17,000 for the year ending 30 June 2013 and 1 half yearly installment of Euro 17,000 for the year ending 30 June 2014.

Background

Alumeco India Extrusion Limited ("the Company") manufactures aluminum extrusion in India. The Company is a public limited company and is listed on Bombay Stock Exchange (BSE).

3.1 Going concern assumption

The Company has incurred a net loss ofRs. 27,443,738 (30 June 2011: net profit Rs. 10,409,377) for the year ended 30 June 2012. It also has accumulated losses of Rs. 197,852,028 (30 June 2011: Rs. 170,408,290) as on that date compared to the shareholder's funds ofRs. 160,522,805 (30 June 2011: Rs. 160,522,805). During the year 2009-10, the Company was declared as a sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) and Industrial Development Bank of India has been appointed as an Operating Agency to assist in working out a rehabilitation scheme. The Company is hopeful of working out a rehabilitation scheme, and therefore, Management believes that the Company would be in a position to continue as a going concern for the foreseeable future and meet its financial obligations as they fall due. Accordingly, these financial statements have been prepared under the going concern assumption.

(f) The Company received an order from the Department of Income Tax under Section 92CA (3) of the Income Tax Act, 1961 disputing the method adopted by the Company in estimating the arm's length price for international transactions with its associated parties. Consequently, the department has estimated an additional income of Rs. 28,937,712 and Rs. 18,256,357 for the A.Y. 2003-04 and A.Y. 2004-05. The Company got the judgment from CIT (Appeals) in its favor but the department has filed an appeal with Income Tax Appellate Tribunal, Hyderabad (ITAT). The Company is hopeful to get the decision in its favor.

For the A.Y. 2005-06, the department has estimated an additional income of Rs. 33,216,328 against which the Company has gone into Appeal with CIT and the CIT Appeal has passed the order forRs. 18,546,533 against which the Company has appealed with ITAT.

For the A.Y. 2006-07, the Transfer Pricing Officer (TPO) has added back income of Rs.35,183,477 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the Dispute Resolution Panel (DRP), the DRP has passed the order against the Company and the Company against its order gone into appeal before ITAT.

For the A.Y. 2007-08, TPO has added back income ofRs. 146,108,591 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the Dispute Resolution Panel (DRP). The DRP has passed the order against the Company and the Company against its order has gone into appeal before ITAT.

For the A.Y. 2008-09, TPO has added back income of Rs. 128,300,000 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the DRP.

The consequential liability if any, in respect of taxes and penalties for the subsequent assessment years is presently not determinable as the appeal filed in this regard are pending before the various authorities.

(g) Further, Rs. 20,359,259 and Rs. 5,172,082 are under dispute on account of disallowance of interest on term loan, for the assessment years 1994-95 and 1995-96 respectively. The cases are lying for hearing before the Honorable High Court of Andhra Pradesh.

(h) For the fiscal year 2009-2010 to 2012-2013, the Company has paid sales tax at a concessional rate against 'C' Form in respect of its interstate sales for which it is required to obtain 'C' forms from its customers and submit to the sales tax department. In the event, the Company is unable to collect and submit such 'C' forms it will be required to pay the sales tax at the higher rate together with interest and penalties as applicable. As of 30 June 2012, the aggregate amount of 'C' forms to be collected isRs. 587,583,726. Whilst management is confident that it will be able to collect all outstanding 'C' forms before the completion of relevant assessment and that no liability in this respect will devolve upon the Company, the aggregate additional tax in the event that none of the 'C' forms are collected would be approximately Rs. 12,981,201.

3.2 Employee benefit plans

The Company has a defined benefit gratuity plan. Employees are eligible for gratuity benefits on termination or retirement in accordance with Payment of Gratuity Act, 1972.

The following tables summarise the components of net benefit expense recognised in the Statement of Profit and Loss and the funded status and amounts recognised in the balance sheet for the respective plans.

Discount rate: Discount rate: The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

Salary escalation rate: The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The actuary has used the Projected Unit Credit (PUC) actuarial method to assess the Plan's liabilities, including those related to death-in-service and incapacity benefits.

3.4 Transfer pricing

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Sections 92-92F of the Income- tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with the associated enterprise during the financial year and expects such records to be in existence latest by the end of September 2012, as required by law. The Management is of the opinion that its international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expenses and that of provision for taxation.

3.5 The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 30 June 2012 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier under the said Act.

In accordance with AS 22, "Accounting for taxes on income" prescribed by the Rules, due to brought forward losses under the taxation laws and on account of absence of virtual certainty on realisation of deferred tax assets, deferred tax assets on unabsorbed depreciation, carried forward losses and other temporary timing differences has been recognized only to the extent of deferred tax liability.

3.6. Segment reporting

Segments are identified in line with AS-17 "Segment Reporting". The Company is in the business of manufacturing of aluminum profiles and in view of Company's internal organisation, management structure, internal financial reporting system it has identified manufacturing of aluminum profiles as its only primary business segment. The analysis of geographical segments is based on location of major customers of the Company.

Geographical segment:

The Company sells aluminium extrusions in both, overseas and India, geographical segments. However, majority of the revenues comes from the Indian segment [20% from the overseas segment for the year ended June 30, 2012 (41% from the overseas segment for the year ended June 30, 2011)]. The following table shows revenue of the segments for the year ended June 30, 2012 and for the year ended June 30, 2011 and assets of the segments as at June 30, 2012 and as at June 30, 2011.

3.7 Remuneration to key managerial personnel for the year ended 30 June 2012 and 30 June 2011, includes Rs. 9,083 and Rs. 143,856 respectively (previous year: Rs. 143,856) representing remuneration beyond the limits specified in Schedule XIII to the Companies Act, 1956.

The Company has applied to the Central Government of India for approval for the amount, which is pending. Pending receipt of the approval, the said amount has not been paid.

3.8 Set out below is the movement in provision balances in accordance with Accounting Standard 29, 'Provisions, Contingent Liabilities and Contingent Assets' prescribed by Companies (Accounting Standards) Rules, 2006, ('the Rules')

3.9 Previous year comparatives

The Company has prepared these financial statements as per the format prescribed by Revised Schedule VI of the Companies Act, 1956 ('the Revised Schedule VI') issued by the Ministry of Corporate Affairs. Previous year's figures have been recast/ restated to conform to the classification required by the Revised Schedule VI.

As per our report of even date attached.

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Jun 30, 2011

1. Going concern assumption

The Company has earned a net profit of Rs 10,409,377 (30 June 2010: Rs 11,275,897) for the year ended 30 June 2011. It also has accumulated losses of Rs 170,408,290 (30 June 2010: Rs 180,817,667) as on that date compared to the shareholder's funds of Rs 160,522,805 (30 June 2010: Rs 160,522,805). During the previous year, the Company was declared as a sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) and Industrial Development Bank of India has been appointed as an Operating Agency to assist in working out a rehabilitation scheme. The Company is hopeful of working out a rehabilitation scheme, and therefore, management believes that the Company would be in a position to continue as a going concern for the foreseeable future and meet its financial obligations as they fall due. Accordingly, these financial statements have been prepared under the going concern assumption.

2. Capital commitments and contingent liabilities

Particulars 30 June 2011 30 June 2010

(a) Estimated amount of contracts remaining to be executed on capital account (net of advances) and not provided for

(b) Preference share dividend 20,260,230 16,836,230

(c) Tax on preference dividend not provided for 3,286,716 2,861,317

(d) Excise matters under dispute 2,245,401 1,722,486

(e) The Company received an order from the Department of Income Tax under Section 92CA (3) of the Income Tax Act, 1961 disputing the method adopted by the Company in estimating the arm's length price for international transactions with its associated parties. Consequently, the department has estimated an additional income of Rs 28,937,712 and Rs 18,256,357 for the A.Y. 2003-04 and A.Y. 2004-05. The Company got the judgment from CIT (Appeals) in its favor but the department has filed an appeal with Income Tax Appellate Tribunal (ITAT). The Company is hopeful to get the decision in its favor.

For the A.Y. 2005-06, the department has estimated an additional income of Rs 33,216,328 against which the Company has gone into Appeal with CIT and the CIT Appeal has passed the order for Rs 18,546,533 against which the Company has appealed with ITAT.

For the A.Y. 2006-07, the Transfer Pricing Officer (TPO) has added back income of Rs 35,183,477 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the Dispute Resolution Panel (DRP), the DRP has passed the order against the Company and the company against its order gone into appeal before ITAT.

For the A.Y. 2007-08, TPO has added back income of Rs. 146,108,591 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the DRP. The consequential liability if any, in respect of taxes and penalties for the subsequent assessment years is presently not determinable as the appeal filed in this regard are pending before the various authorities.

(f) Further, Rs 5,172,082 and Rs 20,359,269 are under dispute on account of disallowance of interest on term loan, for the assessment years 1994-95 and 1995-96 respectively. The cases are for hearing before the High Court.

(g) The Company for the year 2005-06 has received revision notice from Additional Commissioner of Sales Tax Department claiming defective C forms for Rs 32,572,120 and escaped turnover of Rs 118,793,462 and proposing tax on them. The Company has asked the department for certain documents. After obtaining the documents and verifying them, the Company will take appropriate action on the notice given by the department.

(h) For the fiscal year 2010-2011 to 2011-2012, the Company has paid sales tax at a concessional rate against 'C Form in respect of its interstate sales for which it is required to obtain 'C forms from its customers and submit to the sales tax department. In the event, the Company is unable to collect and submit such 'C forms it will be required to pay the sales tax at the higher rate together with interest and penalties as applicable. As of 30 June 2011 the aggregate amount of C forms to be collected is Rs 187,351,685. Whilst management is confident that it will be able to collect all outstanding 'C forms before the completion of relevant assessment and that no liability in this respect will devolve upon the Company, the aggregate additional tax in the event that none of the 'C' forms are collected would be approximately Rs 3,747,034.

3. Preference share capital

10% Cumulative Redeemable Optionally Convertible Preference Shares of Rs 10 each have been allotted to O&S Metal import GmbH, Germany and Industrialization Fund for Developing Countries by the Company in the year 2005. As per the terms of the arrangement these preference shares including unpaid dividend can be converted into ordinary equity shares of the Company of Rs 10 each at any time after 3 years from date of allotment or can be redeemed by the Company at par in three equal installments commencing from the end of 5th, 6th and 7th year from the date of allotment. During the previous year, the Company has obtained extension of redemption period by further 3 years from the preference shareholders with all other terms remaining unaltered. Accordingly, these preference shares shall be redeemed by the Company at par in three equal installments commencing from the end of 8th,9th and 10th year from the date of allotment. No conversion option has been exercised so far.

During the year O&S Metal import GmbH, Germany has transferred the said holding to Alumeco A/S, Denmark along with all rights at the existing terms and conditions.

4. Employee benefit Plans

The Company has a defined benefit gratuity plan. Employees are eligible for gratuity benefits on termination or retirement in accordance with Payment of Gratuity Act, 1972.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.

Salary escalation rate: The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The actuary has used the Projected Unit Credit (PUC) actuarial method to assess the Plan's liabilities, including those related to death-in-service and incapacity benefits.

5. Transfer pricing

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Sections 92-92F of the Income- tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions entered into with the associated enterprise during the financial year and expects such records to be in existence latest by the end of September 2011, as required by law. The Management is of the opinion that its international transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expenses and that of provision for taxation.

6. The Ministry of Micro, Small and Medium Enterprises has issued an Office Memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum. Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 30 June 2011 has been made in the financial statements based on information received and available with the Company. Further in view of the management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier under the said Act. ?

7. Segment reporting

Segments are identified in line with AS-17 "Segment Reporting". The Company is in the business of manufacturing of aluminum profiles and in view of Company's internal organisation, management structure, internal financial reporting system it has identified manufacturing of aluminum profiles as its only primary business segment. The analysis of geographical segments is based on location of major customers of the Company.

Geographical segment:

The Company sells aluminum extrusions in both, overseas and India, geographical segments. However, majority of the revenues comes from the Indian segment [41% from the overseas segment for the year ended June 30, 2011 (59% from the overseas segment for the year ended June 30, 2010)]. The following table shows revenue of the segments for the year ended June 30, 2011 and for the year ended June 30, 2010 and assets of the segments as at June 30, 2011 and asatJune30,2010.

8. Remuneration to key managerial personnel for the year ended 30 June 2011, includes Rs 143,856 representing remuneration beyond the limits specified in Schedule XIII to the Companies Act, 1956.

The Company has applied to the Central Government for approval for the amount, which is pending. Pending receipt of the approval, the said amount has not been paid.

9. Set out below is the movement in provision balances in accordance with Accounting ' Standard 29, Provisions, Contingent Liabilities and Contingent Assets' prescribed by Companies (Accounting Standards) Rules, 2006, ('the Rules')

Provision for excise duty and sales tax matters

This provision is towards excise duty and sales tax, which the Company has paid under protest to the respective department. This will be used in case the orders with regard to these are not in favour of the Company. The Company, however, could not estimate with reasonable certainty the period of utilization of the same.

10. Previous year comparatives

Previous year's figures have been regrouped where necessary to conform to current year's classification.

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Jun 30, 2010

1. Going concern assumption

During the year, the Company was declared as a sick industrial company by the Board for Industrial and Financial Reconstruction (BIFR) and IDBI has been appointed as an Operating Agency to assist in working out a rehabilitation scheme. The Company is hopeful of working out a rehabilitation scheme, and therefore, management believes that the Company would be in a position to continue as a going concern for the foreseeable future and meet its financial obligations as they fall due. The Company has earned a net Profit of Rs. 11,275,897 for the year ended 30 June 2010. It also has accumulated losses of Rs. 180,817,667 as on that date compared to the shareholders funds of Rs. 160,522,805. Accordingly, these financial statements have been prepared under the going concern assumption.

2. Contingent liabilities

Particulars 30 June 2010 30 June 2009

(a) Arrears of dividend on cumulative 16,836,230 13,412,230 preference shares

(b) Tax on preference dividend not provided for 2,861,317 2,186,140

(c) Excise matters under dispute 1,722,486 1,199,571

(d) Sales tax matters under dispute Nil 12,554,655

(e) The Company received an order from the Department of Income Tax under Section 92CA (3) of the Income Tax Act, 1961 disputing the method adopted by the Company in estimating the arms length price for international transactions with its associated parties. Consequently, the department has estimated an additional income of Rs. 28,937,712 and Rs. 18,256,357 for the A.Y. 2003-04 and A.Y. 2004-05. The Company got the judgment from CIT (Appeals) in its favor but the department has filed an appeal with Income Tax Appellate Tribunal (ITAT). The Company is hopeful to get the decision in its favor. For the A.Y. 2005-06, the department has estimated an additional income of Rs. 33,216,328 and for A.Y. 2006-07, Rs.35,183,477 on account of differential in arms length prices in international transactions, against which the Company has gone into appeal before the CIT and Dispute Resolution Panel (DRP) for the respective years. The consequential liability if any, in respect of taxes and penalties for the subsequent assessment years is presently not determinable as the appeal filed in this regard are pending before the various authorities.

(f) Further, Rs.5,172,082 and Rs.20,359,269 are under dispute on account of disallowance of interest on term loan, for the assessment years 1994-95 and 1995-96 respectively. The cases are for hearing before the High Court.

(g) For the fiscal year 2004-2005 to 2009-2010, the Company has paid sales tax at a concessional rate against C Form in respect of its interstate sales for which it is required to obtain C forms from its customers and submit to the sales tax department. In the event, the Company is unable to collect and submit such C forms it will be required to pay the sales tax at the higher rate together with interest and penalties as applicable. As of 30 June 2010 the aggregate amount of C forms to be collected is Rs.51,130,154. Whilst management is confident that it will be able to collect all outstanding C forms before the completion of relevant assessment and that no liability in this respect will devolve upon the Company, the aggregate additional tax in the event that none of the C forms are collected would be approximately Rs. 1,002,838.

3. The Company during the year ended 30 June 2010, paid/provided for an amount of Rs.Nil (Previous year Rs.3,943,023) towards various demands raised by the sales tax authorities relating to earlieryears outstanding cases.

4. Related party transactions

Name of the related party Country Nature of relationship

OSI India Holding A/S (OSI) Denmark Immediate holding company

0 & S Metallimport GmbH(OSM) Germany Holding Company of OSI

Alumeco A/S Denmark Holding Company of OSM

H S Metalservice nr 2 ApS (HSM) Denmark Holding Company of Alumeco A/S

H S Metalservice ApS Denmark Holding Company of HSM

O&S Ratna Aluminium Fabricators India Companies over which the key

Private Limited management personnel exercise

significant influence.

O & S Metallimport Holdings Private Ltd. India Fellow Subsidiary

Alumeco Hand lerservices GmbH Germany Subsidiary of Alumeco A/S

Mr. Wolfgang Ormeloh Germany Key Managerial Personnel

Mr. M. Ratnakar India Key Managerial Personnel

Mr. Kamal Kumar India Key Managerial Personnel

Mr. N.K. Khandelwal India Key Managerial Personnel

5. Disclosure regarding Derivative Instruments

(a) There are no Derivative Contracts outstanding as on 30 June 2010.

6. Preference share capital

10% Cumulative Redeemable Optionally Convertible Preference Shares (CRCPS) of Rs. 10 each have been allotted to 0 & S Metallimport GmbH and Industrialisation Fund for Developing Countries by the Company in the year 2005. As per the terms of the arrangement these preference shares including unpaid dividend can be converted into ordinary equity shares of the Company of Rs. 10 each at any time after 3 years from date of allotment or can be redeemed by the Company at par in three equal installments commencing from the end of 5th, 6th and 7th year from the date of allotment. The Company during the year has obtained extension of redemption period by further 3 years from the preference shareholders with all other terms remaining unaltered. Accordingly, these preference shares shall be redeemed by the Company at par in three equal installments commencing from the end of 8th, 9th and 10th year from the date of allotment.

7. Employee benefit Plans

The Company has a defined benefit gratuity plan. Employees are eligible for gratuity benefits on termination or retirement in accordance with Payment of Gratuity Act, 1972.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the respective plans.

a. The following table sets forth the amount recognised in the Companys profit and loss account for the period ended 30 June 2010 under gratuity cost.

Discount rate: The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The actuary has used the Projected Unit Credit (PUC) actuarial method to assess the Plans liabilities, including those related to death-in-service and incapacity benefits.

The conversion of outstanding CRCPS into equity if made would have the effect of increasing profit per share for the current year, and reducing the loss per share for the year ended 30 June 2009 and would therefore be anti dilutive. Hence, such conversion has not been considered for the purpose of computing dilutive earnings per shareforthatyearended.

8. The Company has during the year sent out letters seeking confirmations from its suppliers whether they fall under the category of micro, small and medium enterprises as mentioned under the Micro, Small and Medium Enterprises Development Act, 2006. Based on the information available with the Company, the Company believes that it does not have any outstanding dues to micro, small and medium enterprises. Further, the Company has not paid any interest to the micro, small and medium enterprises.

In the absence of virtual certainty on realisation of deferred tax assets on carry forward losses, the deferred tax asset has been recorded to the extent there exists reversing temporary differences by way of deferred tax liability on fixed assets.

9. Segment reporting

Segments are identified in line with AS-17 "Segment Reporting". The Company is in the business of manufacturing of aluminum profiles and in view of Companys internal organisation, management structure, internal financial reporting system it has identified manufacturing of aluminum profiles as its only primary business segment. The analysis of geographical segments is based on location of major customers of the Company.

Geographical segment:

The Company sells aluminium extrusions in both, overseas and India, geographical segments. However, majority of the revenues comes from the overseas segment [59% for the year ended June 30, 2010 (74% for the year ended June 30, 2009)]. The following table shows revenue of the segments for the year ended June 30, 2010 and for the year ended June 30, 2009 and assets of the segments as at June 30,2010 and as at June 30,2009.

10. Previous year comparatives

Previous years figures have been regrouped where necessary to conform to current years classification.