1 Corporate Information

Bhagwandas Metals Limited (the Company) is a public limited company domiciled in India incorporated under the Provisions of Companies Act. Its shares are listed on one recognized stock exchange of India.

The registered office of the company is located at New no. 54, Old no. 61, Sembudoss street, Chennai-600001, India.

Post Retirement Benefit Plans

I. Defined Contribution Plan Provident Fund

The Company has defined contribution plans on provident fund & pension fund for benefits of employees. Contributions are made towards provident fund & pension fund for employees as per the regulations of Employees Provident Fund & Miscellaneous Provisions Act 1952. The contributions are made to registered provident fund administered by the government. The obligation of the Company is limited to the amount contributed and it has no further contractual nor any constructive obligation.

II. Defined Benefit Plan Gratuity

The Company provides for gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of 5 years are eligible for gratuity. The amount of gratuity payable on retirement/termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied for the number of years of service. The gratuity plan is unfunded plan and the Company makes provision in the books of accounts.

The details of the post retirement benefit plan for Gratuity are given below which is certified by the actuary and relied upon by the auditors:

Leave Obligations

Leave obligations cover the Company's liability for sick and earned leaves. The Company makes the payment of leave obligation on annual basis in the last month of the Financial Year.

Note: 2

First Time Ind AS Adoption Reconciliation:

These are the Company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in note 2 and note 3 have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements as at and for the year ended 31st March 2017 and in the preparation of the opening Ind AS balance sheet at 1st April 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under section 133 of the Companies Act, 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 ('previous GAAP' or 'Indian GAAP').

Ind AS 101 requires an entity to reconcile equity, total comprehensive income and cash flow for prior periods, The following tables represents the reconciliation from IGAAP to Ind AS.

The presentation requirements under IGAAP differs from Ind AS and hence the IGAAP information has been reclassified for ease of reconciliation with Ind AS. The reclassified IGAAP information is derived based on the audited financial statements of the company for the year ended March 31st, 2016 and March 31st, 2017.

* As required under Paragraph (10C) of Ind AS 101, the Company has reclassified items that it recognised in accordance with previous GAAP as one type of asset, liability or component of equity, but are a different type of asset, liability or component of equity in accordance with IndAS.

*As requied under Paragraph (10C)of IndAS 101, the Company has reclassified items that it recognised in accordance with previous GAAP as on type of asset, liability or component of equity, but are a different type of assest, liability or component of equity in accordance with IndAS.

Notes to the Reconciliations

1) Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ‘other comprehensive income’ includes remeasurement of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

2) Under lnd AS, remeasurement of net defined benefit liabilities i.e., actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognized in other comprehensive income instead of statement of profit or loss. Under the previous GAAP, these remeasurement were forming part of the profit or loss for the year.

3) Additional deferred tax asset I (liability) has been recognized corresponding to the adjustments to retained earnings I profit and loss as a result of Ind AS implementation.

30. The promoters of the company holding 59.05% of shares have entered into an agreement on 1st February 2018 to sell 52% of their shareholding @ Rs. 21/- per share. Pursuant to the agreement, promoter's have temporarily parked their said 52% shareholding i.e. 1897376 (eighteen lacs ninety seven thousand three hundred seventy six shares) in the demat account opened with Stock Holding Corporation of India Ltd in name & style of “Cameo Corporate Services Ltd. Escrow a/c Bhagwandas Metals Ltd. Open Offer” in the month of February 2018.

The shares will be transferred to ultimate acquirers on completion of all statutory formalities relating to the Open Offer as per Takeover regulations i.e. Regulations 3 (1) & 4 of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011 and subsequent amendments thereto.

3. Contingent Liability & Commitments Nil

4. Legal Cases are going on for the recovery of advances amounting to Rs.123.00 Lacs and trade receivables amounting to Rs.42.80 Lacs. No provision has been made in the books of accounts as after taking appropriate legal advice and considering the present status of the legal cases, in the opinion of the directors, the outcome of these legal cases will be received in favour of the Company.

5. Under Micro, Small & Medium Enterprises Development Act 2006, certain Disclosures are required to be made relating to such enterprises. In view of the insufficient information from suppliers regarding their coverage under the said Act, no disclosures have been made in the accounts. However, 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.

6. The Company has provided interest for electricity payable up to 31-03-2001. In view of the cases filed by the company before the Hon'ble High Court disputing the amount due, the management is of the opinion that there will not be further liability on the company beyond the amount already provided off.