Auroma Coke Limited (the "Company") is engaged primarily in washing of raw coal and slurry and manufacture of Wash Coal, Middlings, Slurry, Hard Coke and its various combinations. It is also engaged in trading of above products including coal. The manufacturing plants are located in India. The Company is a public limited company and its shares are listed on the Bombay Stock Exchange (BSE).

2. Contingent Liabilities :

No provision has been made in respect of following contingent liabilities:-

(a) In respect of VAT input claimed but yet to be allowed for 2006-07 & 2007-08'7.99 Lacs (' 7.99 Lacs). In respect of the year 2008-09, the excess demand of ' 3.86 lacs ('. 3.86 lacs) has been adjusted from the input credit and further input claim of ' 1.09 lacs (' 1.09 lacs) has not been allowed. For the year 2009-10 the excess demand of ' 1.74 lacs (Rs. NIL) has been adjusted from the input credit and further input claim of ' 3.92 lacs Rs NIL) has not been allowed. For the year 2010-11 the excess demand of Rs 3.12 lacs (Rs NIL) has been adjusted from the input credit and further input claim of Rs 1.84 lacs (Rs NIL) has not been allowed. In all the above cases the company is in the process of filing revisions / appeals.

(b) The Sales Tax Dept. has separately demanded VAT and penalty of ' 43.76 lacs for 2007-08 and ' 2.40 lacs for 2008- 09 due to certain audit objections for which revision petition has been filed with the appropriate authorities.

3. Commitments :

No provision has been made in respect of following commitments :

(a) Estimated value of contracts of capital nature not provided (net of advances) : ' 11.55 lacs (Rs 8.55 lacs).

4.Contingent Liabilities :

(a) Unexpired Bank Guarantees outstanding : ' 110.62 lacs (' 110.62 lacs).

(b) Demand from Excise Dept. for the period 1.3.11 to 31.3.11 amounting to Rs. NIL (' 4.50 lacs) plus interest and other levies. The company had deposited the tax amount demanded with the authorities under protest and had also simultaneously filed appeal before the appropriate authorities. The company has since received the appellate order and necessary provisions have been made in the accounts.

5. a) The Overdraft facility, repayable in fixed term by variable monthly installments, is secured by hypothecation of entire stocks, receivables, advance payment and other current assets, They are further secured by equitable mortgage of specified land of the company, personal guarantee of two directors of the company and their three relatives.

(b) The Bank Guarantee and Letter of Credit limits sanctioned by bank are secured by hypothecation of entire stocks, receivables, advance payment and other current assets, plant & machinery of the company.

6. As per information available with the company there are no dues payable to any small scale industrial undertaking as at 31-03-2015.

7. (a) Gross depreciation for the current year is Rs 52,15,061/- (Rs 62,24,136/-) out of which ' 4,490/- (Rs 5,206/-) has been transferred to revaluation reserve.

(b) The difference, amounting to ' 67,72,443/- (NIL), between residual value and carrying amount of assets where the remaining useful life of an asset has become NIL as per The Companies Act, 2013, read with Schedule II, has been recognised in the opening balance of Profit & Loss Account Rs 67,71,470/- (NIL) and Rs 973/- (NIL) has been transferred to revaluation reserve.

8. The amount payable to micro, small and medium enterprises, to the extent identified on the basis of information available, are as follow:-

(a) Principal amount outstanding as on 31-03-2015 : Rs NIL (NIL)

(b) Interest due on outstanding amount : Rs NIL (Rs Nil) as on 31-03-2015

(c) Interest paid during the year                     : Rs NIL (Rs Nil)

(No payment made beyond due date to SME sector, wherever they were stipulated)

9. Balance confirmation certificate in respect of sundry parties has not been received from the parties in some cases.

10. Advances received for allotment of equity shares are proposed to be allotted at a price band of Rs18/- to Rs 30/- per share, inclusive of appropriate premium per share depending on the then issue price, ranking pari-passu with the existing shares of the company.

11. In respect of advance against allotment money received from two applicants amounting to Rs 1435.00 lacs, a scheme of merger and amalgamation proposal of those two companies with the company is under process and approved by BSE, subject to further steps like sanction of respective schemes by Hon'ble High Court after obtaining or extending all the required approvals. Pending such sanction and approval, the amount has been kept as advance against allotment, which would be nullified upon such sanction of merger scheme and simultaneous issue of fresh equity shares to the shareholders of those amalgamating companies.

12. In respect of balance amount of advance received against allotment of shares, as agreed upon at the time of acceptance, it is proposed that the shares shall be allotted before 31.3.2016, subject to required statutory approvals.

13. It is proposed to increase the required authorised capital resulting from allotment, if made, of the advance money so received or to the shareholders of the amalgamating companies, before the allotment process takes place.

14. CBI has filed a case under various sections of Indian Penal Code alleging diversion of certain coal out of coal purchased by the company under Fuel Supply Agreement from BCCL during the period between 2008 to 2011, causing loss of approx. Rs. 1.35 crores to BCCL (a PSU). Consequent to filing of FIR by CBI on 22.06.2011, the BCCL (the main supplier of raw material to the company) has arbitrarily suspended supply of coal under FSA to the company w.e.f 24.06.2011 till the matter is decided, which has been challenged by the company before the Hon'ble High Court at Kolkata. Due to suspension of coal supply under FSA by BCCL, the workings of the company has been severely affected causing unprecedented losses to the company and also affecting its profitability in future till the suspension of supply under FSA is lifted. However, based on merits of the case the company has been legally advised that in the above matters the judgment is expected to be in company's favour.

15. Additional information details. (These information have been certified by the management and relied upon by the auditors):-

(A) Total value of Raw Materials, Stores, Spare Parts and Components consumed/sold:

16. Stores, Spare Parts and Components :

The company did not consume any imported stores materials, spare parts, components and Chemicals. All consumptions were indigenous.

Notes :

17. Consumption of raw material includes sales also as it is not practical to identify separately the cost of material sold.

18. The quantity of consumption of raw coal, slurry etc. is accounted for on estimated basis as per practice and convention prevailing in the industry.

(B) Earning in foreign currency: NIL (NIL)

(C) Expenditure in foreign currency (accrual basis) :

(i) For Bank Interest                   :   Rs. NIL (' 39,67,318/-)

(ii) For Bank Charges                   :   Rs. NIL (' 37,29,375/-)

The company has identified all related parties and details of transactions are given below. No amounts have been written off or written back during the year in respect of debts due from or to related parties.

(a) Name of Key management personnel

(1) Mr. Rajiv Tulsyan (upto 26.8.2014) (2) Mr. Sanjeev K. Tulsyan (upto 26.8.2014) (3) Mr. Prashant Tulsyan

(b) Name of associates / companies :

(1) ACM Fuels Ltd. (2) Smart Dealers Pvt. Ltd. (3) A C M Finvests Pvt. Ltd.

(c) Relatives of key management

(1) Mr. Rajiv Tulsyan (w.e.f. 26.8.2014) (2) Mr. Sanjeev K. Tulsyan (w.e.f. 26.8.2014) (3) Mrs. Vibha Tulsyan (w.e.f. 20.11.2014)

20. The Company has reviewed its individual assets and cash generating units for impairment in terms of Accounting Standard - 28 issued by The Institute of Chartered Accountants of India, and none of them were found to be materially impaired.

20. The company has identified that it has no reportable segments.

21. Previous year's figures have been reclassified / regrouped wherever appropriate and have been indicated in brackets.