Notes to Financial Statements for the year ended on 31-03-2018

NOTE A-1: CORPORATE INFORMATION

Incorporated as on 08-10-2010, Synergy Green Industries Ltd., is a subsidiary of S.B.Reshellers Pvt.Ltd. The Company manufactures Heavy Cast Iron(CI) and SG Iron Castings required for Wind Turbines, Machine Tools and for Pumps & Valves. The Works is situated at Kagal - Hatkanangale Five Star Industrial Area, Kolhapur - 416216 and at Gokulshirgaon MIDC, Kolhapur.

NOTE A-2: BASIS OF PREPARATION

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, as amended, and the relevant provisions of The Companies Act,2013. The financial statements have been prepared on an accrual basis and under the historical cost convention. The financial statements have been presented as per requirements of Schedule III to The Companies Act, 2013.

Note B: OTHER INFORMATION AND DISCLOSURES

1 Contingent Liabilities & Commitments:

a. Contingent Liabilities not provided for

i) Disputed Income Tax Liability

a) Matter relating to A. Y. 2012-13 is under Appeal: Total amount Rs.2,02,500.00 out

b) Matter relating to A. Y. 2016-17 is under Appeal: TDS amount of Rs.5,52,988.00 out ) of which paid under protest Rs. 1,10,600.00 (Previous Year Nil, paid under protest

c) Matter relating to A. Y. 2017-18 is under Appeal: TDS amount of Rs. 10,93,113.00

Matter relating to A. Y. 2017-18 is under Appeal: TDS amount of Rs. 3,88,861.00 ) out of which paid under protest Rs. 77,800.00 (Previous Year Nil, paid under

ii) Disputed Excise and Service Tax Liability

a) Matter relating to F. Y. 2012-13 and 2013-14 is under Appeal : Total amount Rs.

iii) Claims against the Company not acknowledged as debts: Nil (Previous Year Nil)

iv) Guarantees : Nil (Previous Year Nil)

b. Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not

iii) Others :

a. Commitments under EPCG license towards duty saved and Interest thereon for Rs.

b. Commitments under PSI Scheme 2007 towards exemption of stamp duty on mortgage for Rs. 13,83,750/- (Previous Year Rs. 12,82,500/-)

c. Commitments under PSI Scheme 2007 towards exemption of Electricity Duty for a period of 15 years for Rs. 3,93,91,483/- (Previous Year Rs. 2,97,93,433/-)

2 The amount due to Micro and Small Enterprises as defined in the, “The Micro, Small and Medium Enterprises Development Act, 2006” has been determined to the extent such parties have been identyfied on the basis of information available with the Company. The disclosures relating to Micro and Small Enterprises as at 31.03.2018 are as under;

3 Borrowing Cost capitalised during the year Rs. Nil (Previous Year Rs.Nil)

4 Disclosure as per requirement of AS 15:

The Company has implemented Revised Accounting Standard-15 on Employee Benefits and made the Defined Contribution plan

Contribution to Defined Contribution plan, recognised and charged off to Statement of Profit & Loss for the year as under :

Gratuity

In accordance with the applicable laws, the Company provides for gratuity, a defined retirement plan (Gratuity plan) covering all staff, workers, and officers. The Gratuity Plan provides for, at retirement or termination of employment, an amount based on the respective employee’s last drawn salary and the years of employment with the company. The Gratuity Scheme is not entirely funded, so appropriate liability as required under AS 15 (revised) is being provided in the balance sheet.

5. Segment Reporting

The Company has only one reportable segment viz: Castings. Hence reporting under Accounting Standard - 17 is not applicable.

6. Operating Leases

a. The Company has taken on lease the premises situated at Plot no. C-16, Gokulshirgaon MIDC, Kolhapur-416234.

b. Accounting Policy adopted in respect of initial Direct Cost: Initial Direct Cost is charged to Profit and Loss Account in the year in which incurred.

7. Figures for previous year has been regrouped / recast/ rearranged wherever necessary.