Note No. 1. Terms/rights attached to shares

The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/- each holder of equity shares is entitled to one vote per share.

Note No 2

During the year company has issued bonus shares to existing shareholders on 28.08.2017 in the ratio of 0.5:1 i.e. 0.5 equity shares for every one share held.

Note No. 3.

During the year Company has fresh issued 58,44,000/- equity shares of Face value Rs 10/- each at premium of Rs 30/- per share on 12.12.2017 through Initial Public Offer and got listed on BSE SME Exchange on 14.12.2017

Note No 4.

During the year company has created provision for Gratuity upto 31.03.2017 for Rs. 53,72,147/- as per acturial valuation and adjusted the same from receives and surplus. Accordingly deferred tax created on the Gratuity provision of Rs. 18,69,769.82 has been also adjusted with reserves & surplus.

Note No 5.

During the year company has incurred share issue expenses on account of Initial Public Offer and company has adjusted the same with share premium account.

Note No 6.

(A) Nature of Security

Vehicle Loan from Banks have been secured by hypothecation of the vehicle financed.

(B) Terms of Repayment of Loan

Vehicle Loan against two vehicles from Bank of Baroda is repayable in 34 & 35 installments respectively starting from February, 2016 and June, 2015 respectively. Vehicle loan from Axis Bank is repayable in 60 installments starting from April, 2016.

(C ) Interest on loan

(i) Rate of interest against vehicle loan from Bank of Baroda is 9.40% p.a.

(ii) Rate of interest against vehicle loan from Axis Bank is 9.65% on monthly reducing method.

Note No 7.

(A) Nature of Security

(i) First charge by way of equitable mortgage of leasehold rights of immovable property of M/s Shiv Kripa Pipes Private Limited situated at Industrial Plot No. A-129, A-129A & A-130, SKS industrial Area, Reengus, Distt. Sikar, Rajasthan, both present and future.

(ii) First charge by way of equitable mortgage of sub lease rights of the borrower over the immovable property situated at Industrial Plot No. A-129, A-129A & A-130, SKS industrial Area, Reengus, Distt. Sikar, Rajasthan, both present and future.

(iii) First charge by way of hypothecation of all the movable assets of the borrower including Plant & Machinery, Misc. Fixed Assets, Machinery Spares, Tools, Accessories, Furniture & Fixture, Equipments etc. pertaining to the Reengus Project, both present and future.

(iv) Second charge by way of hypothecation of all the Current Assets of the borrower including Stock, Raw Material, Stock in Process, Finished & Semi Finished Goods, Consumables Stores & Book Debts etc, both present and future.

(v) Second charge by way of hypothecation of all the book debts, receivables and other actionable claims due to the company, both present and future.

(vi) Personal Guarantee of Directors.

(vii) Corporate Guarantee of M/s Shiv Kripa Pipes Pvt. Ltd.

(B) Terms of Repayment of Loan

Loan in INR (Outstanding as on 31.03.2018 of Rs. 130.76 Lakhs) and Loan in Foreign Currency (Outstanding as on 31.03.2018 of Rs. 1794.72 Lakhs) is repayable in 66 & 78 equated monthly installments respectively, starting from 10th September, 2018 and 10th August, 2018 respectively.

(C ) Interest on Loan

Interest on loan in INR ranges from 9.35% to 9.70% p.a. & interest on loan in foreign currency is 1.67% LIBOR plus 3.80% spread.

Note No 8.

(A) Nature of Security

First and exclusive charge by way of Equitable Mortgage of immovable property located at Plot No. B-308, VKIA, Jaipur, both present and future.

(B) Terms of Repayment of Loan

Loan is repayable in 60 monthly equal installments starting from March, 2014

(C ) Interest on loan

Interest on loan during the year ranges from 11 % to 13% p.a.

Note No 9.

(A) Nature of Security

Loan is secured by mortgage against property of Dynamic Metals, proprietorship firm of Sh. Ashish Mangal Managing Director of the Company.

(B) Terms of Repayment of Loan

Loan is repayable in 24 monthly equal installments starting from June, 2016

(C ) Interest on loan

Interest on loan during the year ranges from 10.5 % to 11% p.a.

Note No 10.

Loan from related parties and other body corporates carries interest rate of 12% p.a.

Note No 11.

Secured through First charge by way of Hypothecation on entire current assets of the company, both present and future.

Note No 12.

All the Credit facilities from Bank of Baroda, other than BDLC, is secured by :

a) Hypothecation of Plant & Machinery, Vehicles, Other Miscellaneous Fixed Assets, Stocks and Book Debts and other current assets of the Company situated at Unit I, II, III of the company.

b) Factory Land & Building situated at H-581 (A) to H-592 (A) at Road No 06, VKIA Jaipur, in the name of the Company.

c) Factory Land & Building at F-260, Road No. 13 VKIA, Jaipur, in the name of the Company.

d) Factory Land at Plot No. SP 636 (A), Road No. 06, VKIA, Jaipur, in the name of the Company.

e) Factory Land at Plot No. SP 636 (A-1), Road No. 06, VKIA, Jaipur, in the name of the Company.

f) Factory Land & Building at F-259, Road No. 13 VKIA, Jaipur, in the name of the M/S Indokrates Pvt Ltd.

g) Commercial Plot No. 59, Narayan Vihar-Q, Gopalpura By-pass, Jaipur in the name of Mr. Ashish Mangal, Managing Director of the Company.

h) Commercial Plot No. 58, Narayan Vihar-Q, Gopalpura By-pass, Jaipur in the name of Mr. Ashish Mangal, Managing Director of the Company.

i) Equitable mortgage of Plot No. 102, "Manglam Industrial City" at village Jaitpura & Chomu, Tehsil Chomu, District Jaipur in the name of the Company. j) Equitable Mortgage of Residential house at A-30, Subhash Nagar, Jaipur in the name of Mrs. Saroj Mangal.

k) Second charge over all the fixed assets pertaining to the Reengus Project comprising :

(i) Leasehold rights of M/S Shiv Kripa Pipes Private Limited and sub Lease rights of the borrower over immovable property situated at Industrial Plot No. A-129, A-129A, & A-130, SKS Industrial Area, Reengus, Distt. Sikar, Rajasthan, both present and future.

(ii) All the moveable assets of the company including Plant & Machiner, miscellaneous fixed assets, machinery spares, tools, accessories, furniture & fixture, equipments etc pertaining to the Reengus Project, both present and future.

Note No. 13.

The Company has not received the required information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid/payable as required under the said Act have not been made.

Note No. 14.

Sundry Creditor for Goods includes creditors of NSIC of Rs. NIL for FY 2017-18 & Rs. 1,43,62,712/- for FY 2016-17 which is secured against Bank Guarantee for Raw Material. In FY 2017-18, there is debit balance of Sundry Creditor NSIC of Rs. 2,46,64,833.94 grouped under Note No 17 Short Term Loans and Advances.

Note No 15.

Fixed deposit amounting to Rs. 17,53,83,390/- (Previous year Rs. 12,26,89,160/-) are under lien with bank as margin money against Bank Guarantees/Letter of credit.

Note :

1) During the year company has started its commercial Production at its new plant located at Reengus from 05.03.2018 and all the capital work in progress has been capitalized on this date only.

2) Refer Note No 3 & 7 for details of Property/Assets mortgaged/hypothecated.

16. EMPLOYEE BENEFITS

The Company's defined benefit plan includes Gratuity. The liability in respect of Gratuity has been determined using Projected Unit Credit Method by an independent actuary.

17. DERIVATIVES

(i) The company has entered in to various currency future contracts to hedge its risks associated with respect to currency fluctuation. The use of currency future contracts is governed by the company’s strategy approved by the board of directors, which provides principles on the use of such future contracts consistent with the company risk management policy. The company does not use future contracts for speculative purpose.

(ii) At the end of the year all outstanding derivative contracts are fair valued on a market to market basis and resulted profit & loss has been adjusted in the profit & loss account.

(iii) Risk associated with fluctuation in the currency is minimized by hedging on future market. The result of currency hedging contracts, transactions are treated in profit & loss account as income or expenditure as the case may be.

(iv) Outstanding currency future contracts (USD) entered in to by the company as on 31.03.2018 is Nil (PY- Nil)

18. Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

19. In the opinion of the Board, Current Assets, Loans and Advances have value in the ordinary course of business at least equal to the amount at which they are stated.

20. The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the schedule III of the Companies Act, 2013

21. CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

(a) Gross amount required to be spent by the company during the year : 2 % of Rs. 863.87 Lakhs (Average Net Profits of the Company for three immediate Preceding financial years) i.e. Rs 17.27 Lakhs.

(b) Amount spent during the year on :

(i) Construction/acquisition of any asset Rs. 2.63 Lakhs

(ii) On purpose other than (i) above Rs. 2.75 Lakhs

22. The Board of Directors have recommended a dividend of Rs. 0.25 per equity share, subject to approval of shareholders in annual general meeting.

23. Pursuant to the AS-29 Provisions, Contingent liabilities and contingent assets, the disclosure relating to provisions made in accounts for the year ended 31st March, 2018.