Notes to Accounts of Bemco Hydraulics Ltd.

Mar 31, 2018

5.40 As per Ind AS 24, the disclosures odf transactions with the related parties are given below:

List of related parties where control exists and also related parties with whom transactions have taken place and relationships:

(a) Subsidiary

Bemco Fluidtechnik LLP (Incorporated on 13-02-2015. Formerly Bemco Fluidtechnik Private Limited upto 26-02-17)

(b) Key Management Personnel

Shri Madan Mohan Mohta - Chairman

Shri Anirudh Mohta - Managing Director

Shri R.M. Shah

Shri N.K. Daga

Shri Dilip Chandak

Shri R.B. Patil

Miss Amruta Tarale

(c) Relatives of Key management personnel:

Smt. Urmila Devi Mohta

(d) Enterprises where key management personnel have significant influence:

U. D. Finnvest Pvt Ltd

Mohta Capital Pvt Ltd

Bemco Precitech Pvt Ltd

U.D.Polyproducts Pvt Ltd

Sree Ramachandra Enterprises Private Limited

The following related party transactions were carried out during the year.

(All Figures in Rs)

Nature of Transactions	Subsidiary		Key Management Personnel		Relatives of Key Management Personnel		Enterprises where Key Management Personnel have significant influence
	2017-2018	2016-2017	2017-2018	2016-2017	2017-2018	2016-2017	2017-2018	2016-2017
I. Property, Plant & Equipment Sale of Plant & Machinery - Bemco Fluidtechnik LLP		12,78,028
II. Financial Assets
Trade Receivables
- Bemco Fluidtechnik LLP	6,35,653	2,64,074	-	-	-	-	-	-
III. Preference Share Capital
11% Cumulative Redeemable Preference Shares of Rs 100/- each
- Mohta Capital Private Limited	_	_	_	_	_	_	1,88,88,960	1,88,86,142
- U.D. Finvest Private Limited							64,62,013	64,61,049
- Sri Ramachandra Enterprises Private Limited							64,62,013	64,61,049
IV. Financial Liabilities
Short Term Borrowings
Accepted During the Year
- Sri Ramachandra Enterprises Private Limited							1,00,000
- Mohta Capital Private Limited	-	-	-	-	-	-	3,32,00,000	2,95,45,000
Repaid During the Year (Including Interest)
- U.D. Finnvest Private Limited	_	_	_	_	_	_	27,244	82,000
- Sri Ramachandra Enterprises Private Limited	_	_	_	_	_	_	6,188	1,01,720
- Mohta Capital Private Limited	-	-	-	-	-	-	3,24,91,404	2,73,60,000
Balance as at Year End (including interest)
- U.D. Finnvest Private Limited	-	-	-	-	-	-	2,54,401	2,54,401
- Sri Ramachandra Enterprises Private Limited	-	_	_	_	_	-	1,00,917	-
- Mohta Capital Private Limited	.	.	.	.	.	-	4,63,14,201	4,34,72,459
- Bemco Precitech Pvt Ltd							1,45,780	1,45,780
- U.D. Polyproducts Pvt Ltd							2,15,197	2,15,197
Trade Payables
- Bemco Fluidtechnik LLP	9,90,397	6,59,447

							(All Figures in Rs)
Nature of Transactions	Subsidiary		Key Management Personnel		Relatives of Key Management Personnel		Enterprises where Key Management Personnel have significant influence
	2017-2018	2016-2017	2017-2018	2016-2017	2017-2018	2016-2017	2017-2018	2016-2017
V. Other Financial Liablities
Guarantee Commision Payable as at Year End
- Mohta Capital Private Limited							2,06,259	1,03,129
- U.D. Finvest Private Limited							41 ,027	20,514
- Sri Rama Chandra Enterprise Private Limited							1,08,220	54,110
VI. Revenue From Operations
Sale of Goods
- Bemco Fluidtechnik LLP	2,30,464	2,10,410	-	-	-	-	-	-
VII. Other Income
Lease Rental
- Bemco Fluidtechnik LLP	1,20,000	1,20,000	-	-	-	-	-	-
VIII. Expenses
Purchase of Raw Materials
- Bemco Fluidtechnik LLP	44,50,130	30,76,587	-	-	-	-	-	-
Finance Cost
- U.D. Finnvest Private Limited					_		_	38,103
- Sri Ramachandra Enterprises Private Limited	_	_	_	_	_		_	9,816
- Mohta Capital Private Limited	-	-	-	-	-	-	23,07,164	27,69,980
- Bemco Precitech Private Limited	_	_	_	_	_	_	17,350	17,347
- U.D.Polyproducts Private Limited	-	-	-	-	-	-	25,605	26,150
Employee Benefit Expense
- Shri Anirudh Mohta	_	_	57,57,482	22,78,426	_	_	_	_
- Shri RB Patil			9,22,109	7,74,469
- Smt Amruta Tarale			4,58,580	3,65,798
Other Expenses
Sitting Fees
- Shri Madan Mohan Mohta	-	-	7,000	5,000	-	-	-	-
- Smt Urmila Devi Mohta	_	_	_	_	7,000	5,000	_	_
- Shri R.M. Shah			6,000	4,000
- Shri N.K. Daga			7,000	4,000
- Shri Dilip Chandak			7,000	5,000
Guarantee Commision
- U.D. Finnvest Private Limited	_	_	_	_	_	_	1,84,876	22,793
- Sri Ramachandra Enterprises Private Limited	-	-	-	-	-	-	4,87,459	60,122
- Mohta Capital Private Limited	-	-	-	-	-	-	9,29,440	1,14,588

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

Compensation of key management personnel of the Group

The remuneration of director and other member of key management personnel during the year as follows;

Particulars	2017-2018 Rs.	2016-17 Rs.
Short-term employee benefits	70,32,001	33,01,865
Post-employment benefits	9,01,770	4,48,028
Other Long Term Benefits	-	-
Termination benefits	-	-
Share Based Payments	-	-
Total compensation paid to key management personnel	79,33,771	37,49,893

5.41 Foreign Currency Risk

The following table shows foreign currency exposures in Euro on financial instruments at the end of the reporting period.

	Foreign Currency Exposure
Particulars	As at 31-03-2018 Euro	As at 31-03-2017 Euro	As at 01-04-2016 Euro
Trade and Other Payables
- Deferred Payment Liabilities	4,00,000	4,00,000	7,70,000
Trade & Other Receivables
-Trade Receivables	5,181	-	-

Foreign Currency Sensitivity Analysis

The Company is mainly exposed to the currency: EURO

The following table details the Company''s sensitivity to a 5% increase and decrease in the Rs. against the relevant foreign currencies. 5% is the sensitivity rate used foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the Rs. strengthens 5% against the relevant currency. For a 5% weakening of the Rs. against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Impact of profit or loss and Equity

	Euro Impact
Particulars	31-03-2018	31-03-2017	01-04-2016
Increase in Exchange Rate by 5%	(16,57,190)	(14,08,000)	(29,18,300)
Decrease in Exchange Rate by 5%	16,57,190	14,08,000	29,18,300

Equity Risk

There is no material equity risk relating to the Comapnys'' equity investments which are detailed in note 5.03 "Investments". The Companys'' equity investments majorly comprises of strategic investments rather than trading purpose.

Interest Risk

There is no material interest risk relating to the Company''s financial liabilities which are detailed in Note 5.16, 5.21 and 5.23

Credit Risk

Credit Risk arises from Companys'' activities in investments and other receivables from customers. The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The Company has set a policy of receiving 80 percent of the sale proceeds as an advance after the orders get finalized and remaining 20 percent at the time of dispatch and commissioning.

Liquidity Risk

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term.and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

All current financial liabilities are repayable within one year. The contractual maturities of non current liabilities are disclosed in Note No. 5.16

Liquidity Risk Table

The following table detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial laibilities based on the earliest date on which the company can be required to pay.

Particulars	Less Than 1 year	1 -5 years	Total	Carrying Amount
As at 31-03-3018	Rs.	Rs.	Rs.	Rs.
i) Borrowings	12,03,99,533	44,59,946	12,48,59,479	12,48,59,479
ii) Other Financial Liabilities	25,22,295	1,56,040	26,78,335	26,78,335
	12,29,21,828	13,21,53,800	12,75,37,814	12,75,37,814
As at 31-03-3017
i) Borrowings	12,91,43,439	49,28,586	13,40,72,025	13,40,72,025
ii) Other Financial Liabilities	45.04.031	1.56.040	46.60.071	46.60.071
	13,36,47,470	50,84,626	13,87,32,096	13,87,32,096
As at 01-04-2016
i) Borrowings	14,48,30,113	49,78,903	14,98,09,016	14,98,09,016
ii) Other Financial Liabilities	67,19,921	25,000	67,44,921	67,44,921
	15,15,50,034	50,03,903	15,65,53,937	15,65,53,937

Capital Management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance. The capital structure of the Group consists of net debt (borrowings as detailed in note 5.16,5.21 and 5.23 off set by cash and bank balances) and total equity of the Group. The Group is not subject to any externally imposed capital requirements.

Gearing Ratio

Particulars	As at 31-03-2018	As at 31-03-2017	As at 01-04-2016
Debt	20,90,56,646	21,29,77,173	25,79,00,957
Cash and Bank Balances	(2,24,38,421)	(1,52,19,522)	(1,29,57,228)
Net Debt	18,66,18,225	19,77,57,651	24,49,43,729
Total Equity	33,71,14,164	32,51,18,973	29,55,68,147
Net Debt to Total Equity	55.36%	60.83%	82.87%

Debt is defined as long-term borrowings, short-term borrowings and current maturity of long-term borrowings , as described in notes 5.16, 5.21 and 5.23.

5.42 Fair value measurements hierarchy

	As at 31-03-2018			As at 31-3-2017			As at 01-04-2016
Particulars	Carrying Amount	Level of Input used in		Carrying Amount	Level of Input used in		Carrying Amount	Level of Input used in
		Level 1	Level 3		Level 1	Level 3		Level 1	Level 3
Financial Assets At Amortised Cost
Trade Receivables	10,45,29,385	-	-	12,55,42,744	-	-	9,41,01,762	-	-
Cash and Bank Balance	2,24,38,421	-	-	1,52,19,522	-	-	1,29,57,228	-	-
Loans	12,11,700	-	-	9,74,590	-	-	9,44,590	-	-
Other Financial Assets	62,44,105	-	-	1,38,73,355	-	-	91,88,581	-	-
At FVTOCI
Investments	23,26,473	16,46,469	6,15,004	21,19,411	14,39,407	61,15,004	16,76,279	11,26,167	4,85,112
Financial Liabilities At Amortised Cost
Borrowings	16,48,61,465	-	-	17,64,34,264	-	-	22,48,06,158	-	-
Trade Payables	10,91,17,910	-	-	10,27,61,922	-	-	9,51,83,594	-	-
Other Financial Liabilities	4,76,61,844	-	-	4,43,35,701	-	-	3,82,05,980	-	-

There are no transfers between levels 1and 2 during the year.

Level 1: Quoted Prices in active markets for identical assets;

Level 3: Inputs other than observable market data, are used for deriving fair value.

5.43 Revenue from Major Customers

Revenue from one customer of the company''s Rerailing equipment business is INR 10,28,82,661 (including excise duty and GST) which is more than 10% of the company''s total revenue.

5.46 Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. manufacturing and sale of hydraulic press machine and related equipments'' which primarily includes Hydraulic Presses, Euipments and Portable re-railing equipmets and the activities incidental thereto within India, hence does not have any reportable Segments as per Ind AS 108 "Operating Segments". The performance of the Company is mainly driven by sales made locally and hence, no separate geographical segment is identified.

As Per our Report of Even Date attached				For and on behalf of the Board of Directors
For S JAYKISHAN
Chartered Accountants
Firm Regn. No.:309005E
Vivek Newatia	R B Patil	Amruta Tarale	M M Mohta	Anirudh Mohta
Partner	CFO	Company Secretary	Chairman	Managing Director
Membership No.:062636	PAN:AANPP9374M	ACS - 42288	DIN: 0068884	DIN:00065302
Place : Camp Belgaum
Date: 22-05-2018

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Mar 31, 2014

1. (a) Rights/preferences attached to Equity Shares

The Company has Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.

(b) Rights, Preferences and Restrictions attached to Preference Shares of Rs. 100/- each

The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to the said shares. In the event of liquidation of the Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital but shall not be entitled to any surplus arising thereto.

2. Note:

(i) Term loan from Bank of Maharashtra is secured by equitable mortgage of Land & Building and 1st charge on the Fixed Assets of the company on pari-passu basis with State Bank of India and personal guarantee of three directors of the company. Interest payable thereon is at base rate 4.75% repayable in 54 monthly installments of Rs. 1.86 lacs each after a moratorium period of 6 months. Interest shall be serviced as and when applied. As on 31-03-2014, 43 installments are due for repayment amounting to Rs. 79,53,500/- excluding interest (P.Y. Rs. 1,00,44,000/-).

(ii) Term loan from State Bank of India is secured by equitable motrgage of Land & Building and 1st charge on the Fixed Assets of the company pari-passu basis with Bank of Maharashtra and personal guarantee of three directors of the company. Interest payable thereon is at base rate 4.60% repayable in 40 monthly installments after a moratorium period of 8 month. Of the 40 installments, first 20 installments would be of Rs 2 lacs each and the balance 20 installments would be of Rs. 3 lacs each. As on 31-03-2014, 31 installments are due for repayment amounting to Rs. 82,00,000.00 excluding interest (P.Y. Rs. 1,00,00,000/-).

(iii) Motor Car Loans from banks are secured by hypothecation of motor car, repayable in equated monthly installments carrying interest on reducing balance method varying between 10% per annum to 12.5% per annum. As on 31-03-2014 734 installments (Previous Year 542 installments) are due for repayment amounting to Rs 62,55,421/- excluding interest (Previous Year Rs 60,37,599/-)

3. Note

(i) Cash credit availed from Bank of Maharashtra is secured by hypothecation of inventory and receivables upto 120 days as primary security and equitable mortgage of factory land and building and personal guarantee of three directors of the Company. Interest on cash credit is payable at floating rate being base rate of respective bank plus spread varying between 5% to 5.50% at monthly rests.

(ii) Cash credit availed from State bank of India is secured by hypothecation of inventory and receivables upto 120 days as primary security and equitable mortgage of factory land and building and personal guarantee of three directors of the Company. Interest on cash credit is payable at floating rate being base rate of respective bank plus spread varying between 4% to 4.50% at monthly rests.

(iii) Raw Material Assistance Scheme availed from NSIC is secured by bank guarantee amounting to Rs 10,000,000/ -. Interest is payable @ 11% per annum on amount outstanding. Additional interest at the rate of 2% percent per annum is payable if payment is not made within stipulated time limit.

(iv) As on 31-03-2014 , default in repayment of Cash Credit ("CC") limit maintained with Bank of Maharashtra ("BOM") amounts to Rs 66,53,031/-

(v) As on 31-03-2014 , default in repayment of Cash Credit ("CC") limit maintained with State Bank of India ("SBI") amounts to Rs 1,50,469/-.

4. a) Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuer''s Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery : Market value basis, present cost less depreciation

The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve.

b) Total depreciation for the year is Rs. 1,25,73,117 /- (Previous year Rs. 67,07,372/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs. 5,28,310/ - (Previous year Rs. 5,33,454/-) has been recouped from Revaluation Reserve and the balance of Rs. 1,20,44,807/- (Previous year Rs. 61,73,918/-) is charged to the Statement of Profit and Loss.

5. The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as exports are insignificant.

6. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has made an assessment of assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

7. Stores consumed in the current year and previous year is 100% indigenous.

8. The estimated amount of contracts remaining to be excuted on capital account not provided for amounts to Rs. Nil (P.Y. Rs. 8,34,000/-) (net of advance)

9. Warranty expenses on rectification work are accounted for on natural heads as and when incurred & charged to provision on year end. Warranty expenses include Rs. Nil/- (P.Y. Rs. 34,84,549/-) on account of free supplies of materials under warranty period.

10. Disclosures pursuant to Accounting Standards AS - 29 "Provisions, Contingent Liabilities and Contingent Assets"

(Figures in Rs.)

Particulars Balance as at Additions Amount paid/ Balance 01/04/2013 during the reversed/ as at year used during 31/03/2014 the year

Provision for Liquidated Damages - 2,15,69,891 2,15,69,891 -

Provision for Warranty Claims 9,01,148 - 1,85,231 7,15,917

11. Previous period figures have been recast/restated wherever necessary.

12. The company had issued 3,40,000 Equity Shares of Rs. 10/- each at a premium of Rs. 50/- per share on preferential basis to Promoters and an Independent Investor aggreagting to Rs. 204 lakhs during the year. The funds raised on preferential basis has been utilised for repayment of unsecured loans and redemption of preference shares.

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Mar 31, 2013

A) The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

b) The Actual Return on Plan Assets is as follows (Rs.) 13,76,969 (10,72,645)

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

c) Retirement age 58 years or 70 years if extension is given

(1.1) Related party disclosures (where transactions have taken place).

i Key Management personnel:

Shri Madan Mohan Mohta

Shri Anirudh Mohta

ii Relatives of Key management personnel:

Smt. Urmila Devi Mohta

iii Enterprises where key management personnel have significant influence:

U. D. Finn vest Pvt Ltd

Mohta Capital Pvt Ltd

Bemco Precitech Pvt Ltd

U.D.Polyproducts Pvt Ltd

Related party relationship in terms of AS-18 - Related party Disclosures have been certified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18.

iv In respect of above parties, there is no provision for doubtful debts as at year end and no amount has been written off or written back during the year in respect or debts due rrom / to tnem.

v The following related party transactions were carried out during the year.

(1.2) a) Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuer''s Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery : Market value basis, present cost less depreciation

The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve.

b) Total depreciation for the year is Rs. 67,07,372/- (Previous year Rs. 93,76,051/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs. 5,33,454/- (Previous year Rs. 5,37,118/-) has been recouped from Revaluation Reserve and the balance of Rs. 61,73,918 /- (Previous year Rs. 88,38,333/-) is charged to the Statement of Profit and Loss .

(1.3) The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as exports are insignificant.

(1.4) In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has made an assessment of assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

(1.5) a)Disclosure of the amount due to the Micro, Small & Medium Enterprises(on the basis of the information and records available with the management)

(1.6) The estimated amount of contracts remaining to be excuted on capital account not provided for amounts to Rs. 8,34,000/- (P.Y. Rs. NIL) (net o advance)

(1.7) Warranty expenses on rectification work are accounted for on natural heads as and when incurred & charged to provision on year end.Warranty expenses include Rs. 34,84,549/- (P.Y. Rs. 71,285/-) on account of free supplies of materials under warranty period.

(1.8) Previous period figures have been recast/restated wherever necessary.

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Mar 31, 2012

(i) Terms/rights attached to Equity Shares

The Company has Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.

(II) Terms/rights attached to Preference Shares

(1) Rights/preferences attached to Preference Shares

The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to the said shares. In the event of liquidation of the Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital but shall not be entitled to any surplus arising thereto.

Note:

(i) Term loan(s) are secured by charge on all Fixed assets except fixed assets otherwise exclusively charged. Amount of term loan due as on 31.03.2011 has been fully paid in the financial year 2011-2012. Interest @ BPLR of respective bank plus spread of 2% is chargeable on reducing balance method on the said term loan(s). As on 3.1-03-2011 seven installments are due for repayment amounting to Rs 752,626/-.

(ii) Finance Lease obligations are with respect to various hire purchase agreements entered into by the company for acquisition of motor cars from time to time. All such agreements are secured by hypothecation of respective motor car. Obligation under such agreement(s) is repayable in equated monthly installments. Interest thereon is payable as per respective agreement on reducing balance method varying between 10% per annum to 12.5% per annum. As on 31-03-2012 488 installments (Previous Year 657 installments) are due for repayment amounting to Rs 3,595,851/- including interest (Previous Year Rs 4,780,341/-)

Note

(i) Cash credit availed from banks is secured by hypothecation of inventory and receivables up to 120 days as primary security and equitable mortgage of factory land and building and personal guarantee of three directors of the Company as collateral security. Interest on cash credit is payable at floating rate being base rate of respective bank plus spread varying between 4.75% to 6.75%.

(ii) Raw Material Assistance Scheme availed from NSIC is secured by bank guarantee amounting to Rs 10,000,000/-. Interest is payable @ 11% per annum on amount outstanding. Additional interest at the rate of 2% percent per annum is payable if payment is not made within stipulated time limit.

(iii) Packing credit facility availed is secured by hypothecation of inventory for packing credit. Interest on packing credit is payable at floating rate being base rate of respective bank plus spread of 1.25%

(iv) As on 31-03-2012 the Cash Credit ("CC") limit maintained with Bank of Maharashtra ("BOM") and State Bank of India ("SBI") has been overdrawn by Rs 3,718,499/- and Rs 5,281,883/- respectively. CC limit with BOM and SBI has been overdrawn since 26-03-2012 and 25-02-2012 respectively and was cleared on 05- 05-2012 and 12-04-2012.

a) Retirement age 58 years or 70 years if extension is given (2.29)

a) Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuer's Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery : Market value basis, present cost less depreciation The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve

b) Total depreciation for the year is Rs. 9,376,051/- (Previous year Rs. 1,05,65,188/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs.537,718/- (Previous year Rs. 5,37,118/-) has been recouped from Revaluation Reserve and the balance of Rs.8,838,333 /- (Previous year Rs. 1,00,28,070/-) is charged to the Profit and Loss Statement.

(1.1) The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as exports are insignificant.

(1.2) In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has assessed assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

(1.3) The financial statements have been prepared as per the format prescribed by Revised Schedule VI to the Companies Act, 1956 ('the schedule') issued by Ministry of Corporate Affairs vide Notification No. S.O. 447(E), dated 28-2-2011 [As Amended by Notification No.F.IMo. 2/6/2008-CL-V, dated 30-3-2011], Previous period figures have been recast/restated to confirm to the classification required by the Revised Schedule VI.

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Mar 31, 2011

1. a) The Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuers Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery Etc. : Market value basis, present cost less depreciation

The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve.

b) Total depreciation for the year is Rs. 1,05,65,188/- (Previous year Rs. 1,00,33,272/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs. 5,37,118/- (Previous year Rs. 5,29,972/-) has been recouped from Revaluation Reserve and the balance of Rs. 1,00,28,070/- (Previous year Rs. 95,03,299/-) is shown in the Profit and Loss account.

2. The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as4. exports are insignificant.

3. EMPLOYEE BENEFITS

c. The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

d. The Actual Return on Plan Assets is as follows (Rs.)

Actual return on plan assets Rs. 9,34,273/-

f. Retirement age 58 years or 70 years if Extension is given.

g. The liability for gratuity has increased by Rs. 11.35 Lacs during the year due to increase in the statutory maximum limit of gratuity payable to an employee from Rs.3.50 lacs to Rs. 10.00 lacs vide Payment of Gratuity (Amendment) Act, 2010 w.e.f 24.05.2010.

4. Related party disclosures (where transactions have taken place).

i. Key Management personnel:

Shri Madan Mohan Mohta

Shri Anirudh Mohta

ii. Relatives of Key management personnel:

Smt. Urmila Devi Mohta

iii. Enterprises where key management personnel have significant influence:

U. D. Finnvest Pvt Ltd

Sri Ramachandra Enterprises Pvt Ltd

Mohta Capital Pvt Ltd

Bemco Precitech Pvt Ltd

U.D.Rolyproducts Pvt Ltd

Related party relationship in terms of AS-18 - Related party Disclosures have been certified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18.

iv. In respect of above parties, there is no provision for doubtful debts as on 31st March 2011 (as on 31st March 2010 NIL/-) and no amount has been written off or written back during the year (previous year Rs. NIL/-) in respect of debts due from/to there

5. Deferred Tax Assets / Liability is recognized as per Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

b. Deferred tax assets and liabilities are being offset as they relate to taxes on income levied by the same governing taxation laws.

6. Excise duty deducted from sales is the total excise duty collected during the year on sales. Excise duty on opening and closing stock of inventory has been deducted from respective stock values

7. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has assessed assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

8. (a) Company has written to the suppliers asking them to confirm their status under Micro, Small & Medium Enterprises Development Act 2006, however no intimation has been received from any of the suppliers.

9. Amount due within one year in respect of term loan and vehicle loan (including overdue amounts as at 31st March 2011) is Rs. 29.20 lacs (as on 31st March 2010 Rs. 66.67 Lacs).

10.

a. 11% 14,732 Cumulative Redeemable Preference Shares of Rs. 100/- each aggregating to Rs. 14,73,200/- are redeemable at the premium of Rs. 60/- each on 31st March 2012.

b. 11% 18,000 Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs. 18,00,000/- are redeemable at par on 31st March 2014.

c. 11% 20,000 Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs. 20,00,000/- are redeemable at par on 31st March 2020.

11. Balances in Sundry Debtors, Advance from Customers, Sundry Creditors, Loans and Advances are subject to confirmation from respective parties. In the opinion of the management, this shall not have any material impact on the financial statements.

12. In the opinion of the Board, Current Assets, Loans & Advances (other than those considered doubtful) have a value on realisation equal to the amounts at which they are rated in the Balance Sheet in the ordinary course of business.

13. Contingent Liabilities not provided for:

a) Unexpired Bank Guarantees Rs. 864.17 Lacs (As on 31.03.2010 Rs. 500.15 Lacs)

14. QUANTITATIVE & OTHER INFORMATION PURSUANT TO REQUIREMENTS OF PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956.

a. CAPACITY AND PRODUTION:

NOTE:

i. It is not practicable to indicate precisely the installed capacity of each item manufactured by the Company mentioned above, as the Companys plant has the capacity of producing various items, which is over-lapping for each product. The installed capacities, as indicated above are estimates as certified by the Management. Due to changes in prices, inflation, product-mix etc., the installed capacity has been enhanced suitably, wherever necessary.

ii. Figures in respect of actual production of Axial Piston Pumps include 57 nos. (42 nos.) used for captive consumption.

iii. No license is required for manufacture of any of the products of the Company.

iv. Installed capacity has been certified by the management & relied upon by the Auditors. being a technical matter.

d. Stores consumed in the current year and previous year is 100% indigenous.

15. Figures for the previous year have been regrouped, re-arranged wherever necessary.

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Mar 31, 2010

1. a) The Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuers Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery Etc. : Market value basis, present cost less depreciation

The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve.

b) Total depreciation for the year is Rs. 1,00,33,272/- (Previous year Rs. 95,39,768/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs. 5,29,972/- (Previous year Rs. 5,15,885/-) has been recouped from Revaluation Reserve and the balance of Rs. 95,03,299/- (Previous year Rs. 90,23,883/-) is shown in the Profit and Loss account.

2. The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as exports are Nil.

3. EMPLOYEE BENEFITS

a. Post Retirement Benefits : Defined Contribution Plans

4. Related party disclosures (where transactions have taken place).

i. Key Management personnel:

Shri Madan Mohan Mohta

Shri Anirudh Mohta

ii. Relatives of Key management personnel:

Smt. Urmila Devi Mohta

iii. Enterprises where key management personnel have significant influence: U. D. Finn vest Pvt Ltd Sri Ramachandra Enterprises Pvt Ltd Mohta Capital Pvt Ltd Bemco Precitech Pvt Ltd U.D.Polyproducts Pvt Ltd

Related party relationship in terms of AS-18 - Related party Disclosures have been certified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18.

iv. In respect of above parties, there is no provision for doubtful debts as on 31st March 2010 and no amount has been written off or written back during the year in respect of debts due from to them.

5. Deferred Tax Assets / Liability is recognized as per Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

a. The break up of deferred tax assets and liabilities and reconciliation of current year charge/credit is as under

6. Excise duty deducted from sales is the total excise duty collected during the year on sales. Excise duty on opening and closing stock of inventory has been deducted from respective stock values

7. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has assessed assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

8. Amount due within one year in respect of term loan and vehicle loan (including overdue amounts as at 31st March 2010) is Rs. 66.67 lacs (as on 31st March 2009 Rs. 29.88 Lacs).

9. a. 11% 14,732 Cumulative Redeemable Preference Shares of Rs. 100/- each aggregating to Rs. 14,73,200/- are redeemable at the premium of Rs. 60/- each on 31st March 2012.

b. 11% 18,000 Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs. 18,00,000/- are redeemable at par on 31st March 2014.

c. 11% 20,000 Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs. 20,00,000/- are redeemable at par on 31st March 2020.

10. Balances in Sundry Debtors, Advance from Customers, Sundry Creditors, Loans and Advances are subject to confirmation from respective parties. In the opinion of the management, this shall not have any material impact on the financial statements.

11. In the opinion of the Board, Current Assets, Loans & Advances (other than those considered doubtful) have a value on realisation equal to the amounts at which they are stated in the Balance Sheet in the ordinary course of business.

12. Contingent Liabilities not provided for:

a) Claims against the Company not acknowledged as debts (ESIC) Rs. Nil (As on 31.03.2009 Rs. 1.55 Lacs).

b) Unexpired Bank Guarantees Rs. 500.15 Lacs (As on 31.03.2009 Rs. 610.29Lacs)

13. Figures for the previous year have been regrouped, re-arranged wherever necessary.