1.. There is an impairment Loss during the year of Rs. 46.06 Lacs recognized in the statement of profit and loss pertaining to Shot Blasting Machine under installation/commissioning (represented under Capital Work in Progress) in terms of Accounting Standard-28, Impairment of Assets, as notified under section 133 of the Companies Act, 2013.

2. The company has initiated recovery process post rejection of application u/s 309(5B) of the Act by the Central Government during previous year against excess remuneration paid during the financial year 2010-11 to Mr. Lalit Kumar Poddar Ex-Managing Director, of the Company, in excess of the limits prescribed under section 198 read with Schedule XIII of the erstwhile Companies Act, 1956 amounting to Rs. 35.62 Lacs (after recovery of amount payable of Rs. 22.15 Lacs).

3.. In accordance with the Accounting Standard-29, Provisions, Contingent Liabilities and Contingent Assets, the status of various provisions shown in the accounts as on 31st March 2016 is as under:

4.. The CDR scheme was applicable with effect from 01st January 2012. The impact of the restructuring package has been implemented by all CDR lenders and also accounted by the company in the books of account of the company. Post CDR information and disclosures are as under:

5. Promoters have infused an amount of Rs. 20.56 crore (PY Rs. 15.74 crore) partly as Share Capital of Rs 12.27 crore, Rs. 0.91 crore as advance against the share application money and balance as unsecured loan in terms of the LOA.

6. 7811073 shares of the Promoters/ Promoters Group pledged in favour of the Security Trustees to secure the credit facilities sanctioned to the company.

7. Project as envisaged in CDR scheme had been held up due to cancellation of Term Loan from CDR lenders. Thus the project remains uncompleted.

8. Creation of pari-passu charge (equitable mortgage) on the immovable assets of the company in favour of CDR lending banks is pending for which No Objection Certificate (NOC) has been obtained after discharging all the obligations for creation of such charge in favour of lending banks along with existing charge holder so as to execute necessary legal documents, however, No Due Certificate (NDC) has not yet been issued by IFCI, existing charge holder though obligations has been discharged in full.

9. During the year, increase in working capital borrowing from CDR lenders is on account of non fund based limits converted and utilized into fund based limits (short term working capital facilities) pursuant to interchangeability allowed within the overall exposure sanctioned by one of the CDR lender bank (Allahabad bank).

10. During the year, the company has committed continuous defaults in repayment of principal and interest to the CDR lender banks, however, the defaults of UCO Bank (Lead bank) are for the period above 90 days making the account irregular as per bank's prudential norms on assets classification (IRAC norms). Other CDR lender bank accounts are also irregular; however, the defaults are within the range of above norms. Consequently, Lead bank has the right to revoke the CDR package as per approved terms of CDR package/ LOA. (Refer Foot Note 3 to Note No. 4A quantifying the defaults)

11. The Board of Directors of the Company in its meeting held on 29th May 2014 and Equity Shareholders and Preference Shareholders of the company in their court convened meeting held on 28th March 2015, have approved the Scheme of Amalgamation of Geetapuram Port Services Limited (GPSL) and its Wholly Owned Subsidiary, North East Natural Resources Private Limited with the Company and their respective shareholders as per the provision of Section 391 to 394 of the Companies Act, 1956, with requisite majority. The appointed date of the amalgamation is 01st April 2013 and the scheme is subject to necessary approval of Hon'ble High Courts of Calcutta and Bombay. Upon effectiveness of the Scheme, necessary accounting treatment will be dealt with by the company in the financial statements and as per the Scheme every shareholder of GPSL holding 1 (one) fully paid-up equity shares of Rs. 10/- each shall be entitled to receive 40 (forty) fully paid-up equity shares of Rs. 10/- each in the Company.

12. The Company's operating results for the year and financial position as on reporting date are materially affected due to manifold factors which includes economy slow-down, liquidity issues etc. which resulting into net cash loss during the year and preceding years which eroded the entire net worth and making the net worth of the company negative. However, the company expects improved performance in the coming years in view of large confirmed dispatch able orders, expectations of necessary approval of scheme of amalgamation pending before Hon'ble High Court of Calcutta and Bombay, monetization of identified non-core immovable properties and other avenues of raising funds.

13. During the year ending March 31, 2015, the company had received promoter's contribution in compliance of restructuring package by CDR lenders in foreign currency equivalent to Rs. 91.61 Lacs in the shape of advance against share application money which is outstanding and lying in the books as on the reporting date, however, promoter (company) has communicated to hold the allotment of shares against money contributed till finality of the formal approval from their board/general meeting, till such time, the company is holding such amount in trust in terms of Companies (Acceptance of Deposits) Rules, 2014 pursuant to section 73 & 74 of the Companies Act, 2013.

14. The company has credit balances of some of the customer which is outstanding in the normal course of business and pertains to the period prior to 01st April 2015. Some credits had arisen due to goods returned by the customers for quality issue and company has issued credit notes in lieu of same till replacement is made or liability persist due to part lifting or delay in lifting of goods. Since production and turnover has been badly affected due to financial crises, the company is holding such amounts in trust in terms of Companies (Acceptance of Deposits) Rules, 2014 pursuant to section 73 & 74 of the Companies Act, 2013.

15. Transactions with associated enterprises/ related parties were made in normal course of business on the basis of arm's length price and/ or at competitive/ benefit assessment basis.

16. Balances of amount receivable and payable, advances to suppliers and from customers are unconfirmed and pending for reconciliation.

17. In the opinion of the management, the value of assets other than fixed assets and non-current investments, on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet unless specifically provided for.

18. The company has a process to identify MSME under the Micro, Small and Medium Enterprises Development Act, 2006 and accordingly separate disclosure has been made in respect of amounts payable to MSME as on the reporting date (Refer Note No. 6). Based on the management's identification of MSMEs' on the basis of information provided by the parties, the following transactions have been undertaken.

19. Borrowings cost capitalized during the year are Rs. NIL (Previous year Rs. NIL)

20. Company's products are being sold under warranty which is either based on number of years (which generally ranges from 4-8 years) or on guarantee tonnage.

21. Promoters contribution in compliance of restructuring package by CDR lenders is in the nature of unsecured loans are interest free and considered as long term.

22. As on 31.03.2016, there are unutilized proceeds of Rs. 58.94 Lacs out of preferential allotment of equity shares during the financial year 2014-15 which represents equivalent amount payable to preference share holders on redemption of 6% COCRPS (Cumulative Optionally Convertible Redeemable Preference Shares) in consonance with CDR Package which are overdue. Moreover, due to accumulated losses and current year loss, the company has not made any provision for preference dividend for the year and in earlier years on 6% Cumulative optionally convertible redeemable preference shares.

23. Provisions relating to Corporate Social Responsibilities (CSR) as defined and prescribed under section 135 of the Companies Act, 2013, do not apply to the company during the financial year ending March 31, 2016 in view of continuing losses to the company.

24. Foreign currency exposures that are not hedged by derivative instruments or otherwise are:

25. Segment Reporting

26. The company's operating business are organized and managed separately according to the nature of products, which each segment representing a business unit that offers different products. The two identified segments under manufacturing activities are Cast Roll and Forged Roll while the third segment 'others' mainly consists of traded products.

27. Deferred Tax

Deferred Tax Asset (Net) of Rs. 3947.19 Lacs (including Rs. 1126.45 Lacs created during the year) recognized up to 31.03.2016 in respect of Unabsorbed Depreciation, Carry Forward Business Losses and disallowances under Income tax Laws, is based on future profitability projections made by the management with virtual certainty that sufficient future taxable income will be available against which such Deferred Tax Assets can be realized.

28. During the year, pursuant to section 177(5) read with section 134(5)(e) of the Companies Act, 2013, the company has obtained report on adequacy and operating effectiveness on Internal Financial Controls over Financial Reporting (IFC0FR) by an independent agency and placed the same before the Audit Committee for its consideration and recommendation.

The recommendations/ suggestions made by the agency for strengthening the weak areas of internal financial controls and for formulation of new controls are under different stages of implementation/ discussion. Further, the recommendations for removing the deficiencies in operating effectiveness of implemented controls are also under adaptation.

29. Employee Benefits (Accounting Standard-15 (Revised)

30. Short Term Employee Benefits

Short Term Employee Benefits are recognized as an expense on an undiscounted basis in the Statement of Profit and Loss of the year in which the related service is rendered.

31. Post-Employment Benefits

32. Provident Fund

The Contribution to Provident fund and family pension scheme is recognized as expenses and is charged to the Statement of Profit and Loss.

33. Defined Benefit Plan

Liability for Gratuity is recognized on the basis of actuarial valuation made at the end of the year on Projected Unit Credit Method.

34. Long Term Employee Benefits

The liability for Leave Encashment/Compensated Absences of eligible employees is recognized on the basis of an actuarial valuation made at the end of the year on Projected Unit Credit Method.

35. Gains and losses arising out of actuarial valuation made at the end of the year are recognized immediately in the Statement of Profit and Loss.

36. Employee Benefits:

The summarized position of Post-employment benefits and long term employee benefits recognized in the Statement of Profit and Loss and Balance Sheet as required in accordance with Accounting Standard - 15 (Revised) "Employee Benefits" is as under:

37. Defined Contribution Plans

The company makes contributions at a specified percentage of payroll cost towards Employee Provident Fund (EPF) and Employee State Insurance (ESI) for the qualifying employees. The company has recognized contribution amounting to Rs. 167.84 Lacs (Previous year Rs. 174.15 Lacs)* in the Statement of Profit & Loss.

38. Defined Benefit Plans

In accordance with Accounting Standard 15 (Revised), an actuarial valuation was carried out in respect of Gratuity and leave encashment liability as on the balance sheet date based on the following assumptions. The discount rate should be based upon the market yields available on government bonds at the accounting date with a term that of the liabilities and the salary increase should take account inflation, seniority, promotion and other relevant factors.

39. Expenses recognized in the Statement of Profit and Loss

40. The figures in the Balance Sheet and Statement of Profit & Loss have been presented in Rupee Lacs and to the nearest thousand in terms of decimal under section129(1) of the Companies Act, 2013.

41. Previous year's figures have been re-grouped/re-arra