1. Company Overview and Significant Accounting Policies

M/s. Alliance Integrated Metaliks Limited (hereinafter referred to as “AIML” or “the Company”) was established in the year 1989 by the name of B. S. Holdings and Credit Limited. The name of the company was changed to its present name in the year 2004.

The company has its production facility in Punjab to serve the Government and Private sector companies setting up power plants in India. The company intends to contribute its integrated facility to all major companies engaged in setting up power project by manufacturing and supplying heavy structures and equipment’s related to power plants.

The customer list of the company includes Delhi Metro Rail Corporation [DMRC], L & T, BHEL, AFCONS, HCC, Doosan Power Systems, BGR Energy Systems Limited, Gyatri Projects Ltd, Ashoka Builcons Ltd, Sadbhav Engineering Ltd etc.

The registered office of the company is situated at 910, Ansal Bhawan, 16, K. G. Marg, New Delhi - 110001. The shares of the company are listed on Bombay Stock Exchange.

*In current year, ARGL Limited associates of the company had registered losses which had affected its net worth. Given the losses in the business activities carried out by the associates, the Company had, as a matter of prudence, tested the investment in ARGL Limited impairment/diminution with reference to the value of assets. Accordingly, the Company had provided for impairment of 12,396.29 Lakhs in March 31, 2018, which is recognised as an exceptional item in the statement of profit and loss in current year.

*Out of the above shares of ARGL Limited, 94,20,187 Equity Shares have been pledged to Banks as additional security.

*Out of the above shares of ACIL Limited, 65,65,816 Equity Shares have been pledged to Banks as additional security.

Deferred Tax Assets and Deferred Tax Liabilities have been offset wherever the company has legally enforceable right to set of current tax assets against current tax liabilities and wherever the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority.

Equity Shares : The Company currently has Issued equity shares having a par value of Rs 10/- per share. Each shareholder is eligible to one vote per share held. The Company declares and pays dividends in Indian rupees. The dividend, if proposed by the Board of Directors , is subject to the approval of the shareholders in the in the Annual General Meeting, except in case of interim dividend. In the event of liquidation of the Company, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential payments. The distribution will be in proportion to the number of equity shares held by the shareholders. Preference Shares: The Company currently has Issued 1% non cumulative redeemable preference shares of Rs 10/- each. Preference shares will be redeemed after 18 years from the date of allotment at such premium as may be decided by the board of directors, subject to minimum equivalent to issue price.

Note No. 1. 1- Financial risk management objectives and policies Moderate credit risk

Cash & cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.