Krypton Industries Limited ("The Company") is situated at Falta Special Economic Zone, Sector - 1, Plot No. 31 & 32, PS - Diamond Harbour, 24 Parganas, West Bengal - 743504. The Company is engaged in Manufacture and Sale of Tubeless Tyres, Commode Chairs, Hamlock, PU. Shoe Soles, PU. Sandals/Chappals and trading in Tubeless Tyres, Wheel Chairs and its accessories, Walker, Cycle Accessories, Plastic Rims, Crutches, Rollators, etc.

2. Terms/Rights attached to Equity Shares :

The company has only one class of equity shares having a par value of Rs. 10 per share. Each share holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuring Annual General Meeting. In the event of liquidation of the company, the holder of equity shares will be entitled to receive remaining assets of the company,after distribution of all preferential amounts, in proportion to their shareholding.

A. Car loan from HDFC Bank of Tyre Division was taken during the financial year 2010-2011 and carries interest @ 8.75% p.a. the loan is repayable in 60 monthly installment of Rs. 51.59 (in Rs.000), inclusive of interest from the date of loan.The car loan is secured by hypothecation of Mercedes Car itself.

B. Car loan from HDFC Bank of Tyre Division was taken during the financial year 2013-2014 and carries interest @ 10.75% p.a. the loan is repayable in 36 monthly installment of Rs. 19.57 (in '000), inclusive of interest from the date of loan.The car loan is secured by hypothecation of Swift Dzire Car itself.

C. Car loan from HDFC Bank of Tyre Division was refinanced during the financial year 2013-2014 and carries interest @ 13.75 % p.a. the loan is repayable in 24 monthly installment of Rs. 55.07 (in '000), inclusive of interest from the date of loan.The car loan is secured by hypothecation of Car.

D. Car Loan from ICICI Bank of Wheel Division was taken during the Financial Period 2012-13 and carries interest @10.95 % p.a. The loan is repayable as per term each along with interest from the date of loan. This loan is secured by hypothecation of the Car itself.

E. The Term Loan from The Federal Bank Ltd. of Sadurhat Division was sanctioned during the Financial Period 2013-14 and carries floating interest @ Base Rate 3.50% with monthly rests (as per Sanction Letter dated 15.10.2013) with a Limit of Rs. 135 Lakhs. The loan is repayable monthly from July, 2014 bearing Principal Amount of Rs. 2.25 Lakhs along with interest. The term loan is secured by the Exclusive Equitable mortgage over the entire industrial Property at Mouza - Sankua, PS. - Ramnagar, 24 Parganas (South), Khorda, Falta P.Z. Road, J.L. No. 59 & 41, Dag No. 439, 440 & 441, including Land and Civil Structure constructed thereon, and hypothecation of Machineries procured or to be procured and proposed to be financed by the Bank. Further, the loans are secured by personal guarantee of Mr. J.S Bardia, the Managing Director of the company and Mr. Tansukh Gulguilia.

F. Car Loan from Bank of Baroda, IBB Branch of Tyre Division was taken during the Financial Year 201415 and carries interest @10.25% 0.25% p.a. The loan is repayable in 36 monthly installment of Rs. 32.50 (in '000), inclusive of interest from the date of loan. This loan is secured by the hypothecation of Renault Duster Car itself.

G Car Loan from Bank of Baroda, IBB Branch of Tyre Division was taken during the Financial Year 201415 and carries interest @ 10.25% 0.25% p.a. The loan is reapyable in 24 monthly installment of Rs. 19.57 (in '000), inclusive of interest from the date of loan. This loan is secured by the hypothecation of Swift Dzire Car itself.

A. For current Maturities of long term borrowings, please refer Note No. 5.

B. The Cash Credit from Bank of Baroda of Tyre Division was reviewed during the Financial Year 2014-15 and carries interest rate of base rate 3% at a floating rate with monthly rests. The loan is repayable as per term each along with interest, from the date of loan. This loan is secured by Hypothecation of stocks of Raw Material, W.I.P, Finished Goods and Spares of the co., D.P Note, Letter of Continuing Security, Hypothecation of Book Debts upto 90 days The loan is further secured by Equitable Mortgage of Leasehold Land at Falta and structure standing thereon in the name of the company together with Plant and Machinery thereon, lien on FDR, assignment of Keymen LIP and is further secured by the personal guarantee of Mr J.S Bardia, the Managing Director of the company and Mr. T.S. Gulgulia. (As per sanction letter dated 19/12/2014).

C. The Packing Credit from Bank of Baroda of Tyre Division has been reviewed during the Financial Year 2014-15 and carries floating interest @ Base Rate 1.25% p.a.with monthly rests subject to Limit of Rs. 400 Lacs. The loan is secured by hypothecation of both present and future stock of Raw material, Work in progress, Finished goods, Stores and spares, Lodgement of Letter of Credit/Company Order, WTPCG of ECGC, Equitable Mortgage of Land and Building/Factory Shed. Further, the loans are secured by personal guarantee of Mr J.S Bardia, the Managing Director of the company and Mr. T. S. Gulgulia. (As per sanction letter dated 19/12/2014).

D. The Cash Credit from Bank of Baroda of Footwear Division was revalidated during the financial year 2014-15 and carries floating interest @ Base Rate 3.00% p.a. with monthly rests (as per Sanction Letter dated 19.12.2014) with a Limit of Rs. 450 Lacs. The loan is repayable as per term each along with interest,from the date of loan. The loan is secured by hypothecation of both present and future stock of Raw Material, Work In Progress, Finished Goods, Consumable Spares, Hypothecation of Book Debts, D.P. Note, & Letter of Continuing Security. The Loan is further secured by Equitable mortgage on Leasehold Rights on Land and Structure/Building at Falta, along with Plant & Machinery thereon, Lien on FDR, Assignment of Keyman LIP, and is further secured by Personal Guarantee of Mr. J.S. Bardia, the Managing Director of the Company and Mr. T.S. Gulgulia.

E. The Cash Credit from Bank of Baroda of Wheel Division was taken during the Financial Period 201112 and carries interest rate of base rate 3% at a floating rate with monthly rests. The loan is repayable as per term each along with interest from the date of loan. This loan is secured by hypothecation of stocks of Raw Material, W.I.P, Finished Goods and Spares of the Company, D.P Note, Letter of Continuing Security, Hypothecation of Book Debts upto 90 days. These loans were further secured by Equitable Mortgage of Leasehold land at Falta and structure standing thereon in the name of the company, lien on FDR, assignment of Keyman LIP and is further secured by the personal guarantee of Mr. J.S Bardia, Managing Director the Company and Mr. T.S Gulgulia. (As per sanction letter dated 08/12/2014).

F. The Cash Credit from The Federal Bank Ltd. of Sadhurhat Division was sanctioned during the financial year 2013-14 and carries floating interest @ Base Rate 3.50% p.a. with monthly rests (as per Sanction Letter dated 15.10.2013) with a Limit of Rs. 230 Lacs. The loan is repayable as per term each along with interest from the date of loan. The term loan is secured by 1st Pari Passu Charge on the entire Current Assets of the Company, both present and future, with Bank of Baroda under Multiple Banking Arrangement, including Hypothecation of Stock at 25% Margin and Book Debts at 50% Margin. The Cash Credit is further secured by Collateral of Extension of Exclusive Equitable Mortgage over the entire industrial Property at Mouza - Sankua, P.S. - Ramnagar, 24 Parganas (South), Khorda, Falta P.Z Road, J.L. No. 59 & 41, Dag No. 439, 440 & 441 which is already charged as Primary Security for the Term Loan. Further, the loans are secured by personal guarantee of Mr J.S Bardia, the Managing Director of the company and Mr. Tansukh Gulgulia.

G The Cash credit from Bank of Baroda of Wheel Division was revalidated during the Financial Year 2014-15 and carries Interest Rate of Base Rate 3% at a floating rate with monthly rests. The loan is repayable as per term each along with interest from the date of loan. This loan is secured by Hypothecation of stocks of Raw Material, W.I.P, Finished Goods and Spares of the Company, D.P. Note, Letter of Continuing Security, and Hypothecation of Book Debts upto 90 days. These loans are further secured by Equitable Mortgage of Leasehold Land at Falta and structure standing thereon in the name of the company together with Plant and Machinery thereon, lien on FDR, and assignment of Keymen LIP. The loan is further secured by the personal guarantee of Mr J.S Bardia, the Managing Director of the company and Mr. T. S. Gulgulia. (As per sanction letter dated 19/12/2014).

3. Contingent Liabilities and Commitments

                                              As at         As at
                                              31/03/2015    31/03/2014
                                             (Rs. in        (Rs. in
                                              Thousands)    Thousands)
Contingent Liabilities

(b). Income Tax Demands *                      3,249.69      7,096.93

(c ) Sales Tax Demands *                       5,053.23      5,053.23

i. Export Bills discounted with Banks 6,435.50 17,153.31

 ii.   Letter of Credit                        4,877.01       4,947.84

* Sales Tax Demands deposited Rs. 38.30 (in Rs.000) [Previous Year Rs. 38.30 (in Rs.000)]

4. Segment Reporting

A. Primary Segment Reporting (by Business Segment):

(a). The Company has three reportable segments viz. Tyre,Rim and Wheels, Footwear and Hospital Equipments which have been identified in line with the Accounting Standard 17 on Segment Reporting, taking into account the organizational structure as well as differential risk and return of these segments. Details of products included in each segments are as under:

(b). Inter-segment transfers are based on market rates.

5. The Company, with effect from 1st April, 2014, has charged Depreciation based on the revised remaining useful life of the Assets as per the requirement of Schedule II to the Companies Act, 2013. Due to the above, Depreciation charged to the Revenue for the Financial Year ended 31st March, 2015 is lower by Rs.18.42 Lakhs. Further, based on transitional provision provided in clause 7(b) of the Schedule II to the Companies Act, 2013, Depreciation of Rs.11.92 Lakhs have been adjusted against the Opening Balance of Retained Earnings under 'Reserve and Surplus'.

6. Related Party Disclosures :

A. List of Related Parties :

i. Key Managerial Personnel:

a)   Managing Director                   Sri Jay Singh Bardia

b)   Non Executive Directors        i)   Sri T. C. Bachhawat

                                    ii)  Sri T. S. Gulgulia (Resigned
                                         w.e.f. 18.03.2015)

                                    iii) Sri Pradeep Kumar Singh

                                    iv)  Sri Ravi Prakash Pincha
                                        (Appointed w.e.f. 18.03.2015)

                                    v)   Smt. Vimala Devi Bardia
                                        (Appointed w.e.f. 18.03.2015)*

c)   Chief Executive Officer             Sri P.L. Bardia**

d)   Chief Financial Officer             Sri Vinay Sipani (Appointed
                                         w.e.f. 30.09.2014)

d)   Company   Secretary            i)   Sri T. K. Das (Resigned w.e.f.
                                         01.09.2014)

                                    ii) Ms. Arti Bothra (Appointed
                                        w.e.f. 30.09.2014)

** Sri PL.Bardia is related to Sri Jay Singh Bardia, the Managing Director of the Company and Smt Vimala Devi Bardia, Non-Executive Director of the Company.

ii. Relatives of Key Managerial Personnel:

a)   Others                      i)   Sri K. L. Bardia

                                 ii)  Hulashchand Tarachand Bardia HUF

                                 iii) Tarachand Estates Pvt. Ltd.

                                 iv)  Krypton Developers Limited