Note No.1 -Notes on Transition to Ind AS :

These financial statements are prepared in accordance with Ind AS. For years up to and including the year ended March 31, 2016, the Company prepared its financial statements in accordance with Indian GAAP (i.e. Previous GAAP).

Accordingly, the Company has prepared financial statements which comply with Ind AS for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017. In preparing these financial statements, the Company's opening balance sheet was prepared as at April 1, 2016, the Company's date of transition to Ind AS.

(A) Reconciliation between previous GAAP and Ind AS:

Effect of Ind AS adoption on equity as at March 31, 2017 and April 1, 2016

1) During the year ended 31 March 2017, the Company has carried out the valuation of Plant & Machinery and land and building having a gross block of Rs.31,436.63 lacs (WDV 21,266.17 lacs) and valued at Rs.17,923.25 lacs thereby, resulting into net impairment loss of Rs.3,342.92 lacs which has been transferred to Profit and Loss account.

1) It includes share capital of Rs. 5255.57 as at 31 March 2017 and 1 April 2016

2) Due to retrospective adjustment of depreciation based on estimated useful life as on 1st April, 2016 increase by Rs. 96 lacs which have been provided as additional depreciation to TPE and in the year 2016-17 Rs. 103 lacs increase.

3) This pertains to recognition of deferred tax on retrospective adjusment of depreciation.

4) The company has valued the assets of the company as on 31st March, 2018 as a result there is an upward valuation of Land & Building and Plant & Machinery of Rs. 6572.30 lacs (Net).

5) TPE plant of the Company is not operational, hence no depreciation has been provided on the building of TPE.

6) During the year company has sold the MIDC (Mumbai) Land & Building and the profit arising out of the sale is transferred to profit and loss for the year.

7) Depreciation for the current year on building includes depreciation on revaluation of Rs. 173.69 lacs which have been transferred to Retained earnings.

(a) Sundry debtors are subject to confirmation and under reconciliation / arbitration. After detailed review and negotiation with some of the parties where the matters are pending in Arbitration / Court, the debtors amounting to Rs. 562.67 (562.67) lacs outstanding for more than six months are under arbitration proceedings which is pending, however the company is envisaging the recovery of the amount.

8.1 Calls in arrears include unpaid allotment money related to Debentures which have been converted on its due date into Equity Shares as per the terms of the issue but in respect of which the Company, in exercise of its lien on such shares, has not issued the Shares Certificates to the defaulting Debenture Holders. The Company's lien on such shares will extend to the forfeiture of such shares, if considered necessary by the Company.

8.2 The Issued and Subscribed Share Capital of the Company includes 62,00,000 Equity Share of Rs. 10 Each alloted as fully paid - up without payment being received in cash pursuant to a Scheme of Amalgamation in the year 1987.

Nature and Purpose of Other Equity

Capital reserve:

Accumulated capital surplus not available for distribution of dividend and expected to remain invested permanently.

Securities premium reserve:

The unutilized accumulated excess of issue price over face value on issue of shares. This reserve is utilised in accordance with the provisions of the Act.

Debenture redemption reserve:

The Company is required to create a debenture redemption reserve out of the profits prior to the redemption of debentures. Since the debentures have been redeemed by way of an OTS, no debenture redemption reserve is required and the balance has been transferred to Profit & Loss Account.

(A) Loans of Rs. 305.75 lacs taken from Non-Banking Financial Company against purchase of specific assets on hire purchase/lease are secured against those assets.

(B)During the year the company has repaid Rs. 1065.00 lacs to the strategic Investors M/s Seftech Phosphate Private Limited against Unsecured Loans of Rs. 8170.42 lacs taken for OTS purpose. However the balance of Seftech India Private Limited has been fully paid.

(a) Sales Tax Deferment of Rs. 182.10 lacs which belongs to Mathura Workshop is subject to assessment to be carried out by the Sales Tax Department is in pursuance to the direction of Hon'ble Allahabad High Court.

(b) No Interest has been provided on the Sales Tax deferment, Unsecured loan, Hire Purchase/Lease Finance since the matter are under finalisation and under litigation.

The information regarding suppliers holding permanent registration certificate as an Ancillary Industrial Undertaking or a Small Scale Industrial undertaking issued by the Directorate of Industries of State or Union Territory is not available from the relevant parties. In the absence of such information, the amount and interest due as per the Interest on Delayed payment to Micro, Small and Medium Enterprises (Development) Act, 2006 is not acertainable, hence not disclosed separately.

The present value of the obligation of gratuity as at the balance sheet date under such defined plan is determined based on acturial valuation as certified by the management. The provision for year ended 31 March 2018 and 31 March 2017 is Rs. 16.96 lacs and Rs. 17.45 lacs respectively.

1. The company has revalued the assets of the company as on 31st March, 2018 as a result there is an upward valuation of Land & Building and Plant machinery of Rs. 6572.30 (Net). Further, the same has been transferred to profit and loss account to the extent of Rs. 3,342.92 lacs accounted for as revaluation reserve in the previous year and the balance surplus of Rs. 3229.38 lacs has been transferred to Profit and Loss as Other comprehensive income.

There is a demand from Sales Tax Department in connection with the refund of exempted sales tax granted earlier under the scheme of incentives by SICOM amounting to Rs.273.17 Lacs. The said amount is not the amount of the Sales Tax collected by the company but instead is the amount of the Sales Tax exemption in term of the SICOM scheme and is therefore not payable by the company on the ground that the industrial undertaking i.e. TPE plant at Nagothane has been shut down due for reasons beyond the control of the management of the company. However, with regards to arrears of sales tax dues amounting to Rs.50.97 Lacs for the period 1995-96 to 2004-05 for which the company has filed various Appeals with Appellate Authority.

9. Expenditure in foreign currency

Expenses incurred by the Company in Foreign Exchange include Rs. 13.64 lacs (47.26 lacs) on Foreign travelling.

10. Related Party Disclosure

1. Key Managerial Personnel and Relatives

Mr.H.C. Gupta -Wholetime Director & Company Secretary

Mr. Ravindra Chaturvedi - Chief Financial Officer

Mrs.Anita M. Chaturvedi - Relative of a Director

Seftech India Pvt. Ltd.- Company in which relative of a director is a director.

Seftech Phosphate Pvt. Ltd. - Company in which relative of a director is a director.

2. The Following transactions were carried out with the related parties in ordinary course of business.

11. Segment Reporting

The Company is mainly engaged in manufacturing and trading of Engineering equipments, Project supplies / Services for various Industries and the TPE plant is not functional. Hence segment reporting as defined in Ind AS 33 is not given.

12. In the opinion of the Management, current assets, loans and advances have a value on realization at least equal to the amount at which they are stated in the Books of Accounts and provision for all known liabilities has been made, except as mentioned otherwise.

Prior to 31 March 2016, it was unlikely to have taxable profits in near future and hence it was not considered necessary to create deferred tax liability/assets. However, after giving affect to impairment of assets and remissions of liabilities on account of OTS with lenders deferred tax liability has been created from 31 March 2016 onwards.

13. Corporate Social Responsibility

The average net profits of the Company during the last 3 financial years is negative, the Company is not mandatorily required to contribute towards Corporate Social responsibility activities during the year.

14. The figures for previous year have been regrouped/rearranged wherever necessary to make them comparable.