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Notes to Accounts of ECE Industries Ltd.

Mar 31, 2015

1. Rights, preferences and restrictions attached with Shares

Equity Shares: The company has issued one class of Equity Share having a par value of Rs. 10/- per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

2. First Pari-Passu charge by way of hypothecation on all Current Assets of the company both present & future. Second Pari-Passu charge on Fixed Assets of the company as under

* Land & Building of Sonepat unit admeasuring 16.86 acres.

* Plant & Machinery of all units except Ghaziabad unit.

* Pari-Passu charge on other Fixed Assets of all units except Ghaziabad unit & at Kalol, Gujarat.

3. The Company has not received any intimation from any of its suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, relating to amounts unpaid as at the year end along with interest if any payable as required under the said Act have not been given. The Company generally makes payments to all its suppliers within the agreed credit period (generally less than 45 days) and thus, the Management is confident that the liability of interest under this Act, if any, would not be material.

4. Vendors' balances are subject to confirmations and reconciliations.

5. The Company had made claims against Uttar Haryana Bijli Vitran Nigam Limited (UHBVN) for refund of liquidated damages deducted by the Electricity Board as well as interest on delayed payment of bills/due instalments by the Electricity Board. The arbitrator, appointed by the chairman, UHBVN, had given award in favour of the Company which was subsequently confirmed by the Additional Distt. Judge, Panchkula (Haryana). The Electricity Board has, however, filed an appeal with the Hon'ble High Court, Punjab & Haryana. While admitting the appeal, the Hon'ble High Court passed an interim order dated 25.08.2009, directing the Electricity Board to pay to the company a sum of Rs. 608.08 lacs against bank guarantee of the same amount as security to the Electricity Board. The Electricity Board has made payment against bank guarantee given to them as security. As the matter is still sub-judice, the amount is lying in Other Current Liabilities.

6. DISCLOSURES AS PER AS-29

Additional Notes

7. Warranty provision covers the estimated expenses to be incurred during warranty period of the products of the company determined on the basis of past experience. The company reviews the warranty provisions at periodical intervals and the same is adjusted to the estimated expenses to be incurred during the balance warranty period of the product. Expenses incurred during the year against warranties are being directly charged to Statement of Profit & Loss.

8. Provision for loss on Onerous Contracts made earlier, has been partly utilised towards settlement of a Railway Electrification job at Moradabad (U.P.).

9. Refer Note 30.1 (a)(ii).

10. Stores and Spare Parts consumption includes materials consumed for Repairs and Replacement.

11. Includes Rs. 3.50 (Previous Year Rs. 21.63 ) to firms in which directors are partners.

12. Includes Directors' Travelling Rs. 43.21 (Previous Year Rs. 62.50)

13. Includes expense relating to buyback of Shares Rs. Nil (Previous Year Rs. 0.01)

14. In view of the fact that due to adverse business scenario, transformer unit at Sonepat has been continously incurring heavy losses the company has decided to resize its work force. A provision of Rs. 40 lacs has been made on account of expected compensation to them.

15. A sum of Rs. 54 lacs has been provided towards a claim awarded against the Company. However, an appeal against the order is being filed by the Company

16. OTHER NOTES ON ACCOUNTS

17 Commitments & Contingent Liabilities jRs jn Lacs

2014-15 2013-14

(a) Contingent liabilities not provided for in respect of:

Claims against the Company not acknowledged as debts, are as given below:

(i) Excise Duty 6.99 5.82

(ii) Sales Tax/VAT/Work Contract Tax etc. 106.68 178.30

Provision of Rs. 25 lacs (Previous year Rs. 25 lacs) made in an earlier year is being carried forward under the head "Provision for contingencies."

(iii) Cess & Others 21.92 21.92

(b) Other Claims:

Other claims against the Company not acknowledged as debts, are as given below**:

Labour Cases 2.00*** 0.50***

Demands raised by Provident Fund / Employee State Insurance department 1.55*** 7.14***

Other Claims 34.95*** 34.95***

** The Management feels that the Company has a good chance of success in above mentioned cases hence no provision there against is considered necessary.

*** In view of large number of cases pending at various Forums / Courts, it is not practicable to give the details of each case. List also includes certain labour matters for which amount of liability is not ascertainable at this stage.

18. Segment Information

(a) Business Segments:

As of March 31, 2015, there are three business segments i.e. Electrical Equipments for Power Transmission and Distribution (comprising of Meter, Transformer and Switchgear), Elevator and Others. A description of the types of products and services provided by each reportable segment is as follows:

Electrical Equipments for Power Transmission and Distribution-the Company deals in meters, manufactures and supplies power and distributes transformers and switchgear.

Elevator Division manufactures equipments/components of elevators for execution of jobs for erection and installation and also for supplies to other parties in the market.

Other includes Contract Division carries out contracts of railways electrification.

(b) Geographical Segments:

Since the Company does not exports and operates in the domestic market which is governed by the same risks and returns, no geographical information is provided.

(c) Primary segment informa tion (by Business segments)

The following table presents revenue and profit information regarding business segments for the years ended March 31, 2015 and March 31, 2014 and certain assets and liability information regarding business segments at March 31, 2015 and March 31, 2014.

19. Disclosure under AS-15 (Employees' Benefit):

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

20. During the earlier year, the Company had entered into an agreement with developer/s for a project to construct residential units for weaker section on the company's surplus land at Hyderabad. Due to the party violating the terms and conditions of agreement dated 17.09.2007, the company had filed a suit in the city civil court, Hyderabad, for cancellation of the agreement and for recovery of the possession of the land handed over to developer for construction only. However, the Hon'ble Court has passed an order not accepting the contention of the company. The company has filed an appeal before the Hon'ble High Court of Andhra Pradesh against the above order of the City Civil Court at Hyderabad. The Management does not anticipate any loss/liability to arise on this account.

21. Related Party Disclosure

Related party Disclosure as identified by the management in accordance with the Accounting Standard-18 issued under Section 133 of the Companies Act, 2013.

I. Name of Related Parties

A. Key Management Personnel

Mr. Prakash Kumar Mohta - Chairman & Managing Director

B. Enterprises over which any person described in [A] above is able to exercise significant influence and with whom the Company has transaction during the year - NIL

22. Previous year figures have been reclassified / regrouped to confirm current year figures.


Mar 31, 2014

1.1 The Board has recommended dividend of Rs. 0.10 (Paise ten only) per share on 77,25,925 equity shares

[Previous year Rs. 0.25 (paise twenty five only) per share on 77,25,925 equity shares (net of 1972 equity shares) extinguised after balance sheet date]

2.1 Secured by equitable mortgage of factory land and other fixed assets at Sonepat unit. Further, hypothecation of movable fixed assets / current assets of the Company namely book debts, receivables, materials, work in progress and finished goods.

3.1 The Company has not received any intimation from any of its suppliers regarding their status under the said Act and hence disclosures, relating to amounts unpaid as at the year end along with interest if any payable as required under the said Act have not been given. The Company generally makes payments to all its suppliers within the agreed credit period (generally less than 45 days) and thus, the Management is confident that the liability of interest under this Act, if any, would not be material.

3.2 Vendor''s balances are subject to confirmations and reconciliations.

4.1 The Company had made claims against Uttar Haryana Bijli Vitran Nigam Limited (UHBVN) for refund of liquidated damages deducted by the Electricity Board as well as interest on delayed payment of bills/due instalments by the Electricity Board. The arbitrator, appointed by the chairman, UHBVN, had given award in favour of the Company which was subsequently confirmed by the Additional Distt. Judge, Panchkula (Haryana). The Electricity Board has, however, filed an appeal with the Hon''ble High Court, Punjab & Haryana. While admitting the appeal, the Hon''ble High Court passed an interim order dated 25.08.2009, directing the Electricity Board to pay to the company a sum of Rs. 608.08 lacs against bank guarantee of the same amount as security to the Electricity Board. The Electricity Board has made payment against bank guarantee given to them as security. As the matter is still sub-judice, the amount is lying in Other Current Liabilities.

4.1.1 Warranty provision covers the estimated expenses to be incurred during warranty period of the products of the company determined on the basis of past experience. The company reviews the warranty provisions at periodical intervals and the same is adjusted to the estimated expenses to be incurred during the balance warranty period of the product. Expenses incurred during the year against warranties are being directly charged to Statement of Profit & Loss.

4.1.2 Provision for loss on Onerous Contracts has been made towards estimated amount of loss on pending Railway Electrification jobs.

4.1.3 Kindly refer to Note No. 26.1 [b(ii)].

5.1 Received pursuant to the scheme of arrangement between Grasim Industries Ltd. and Indian Rayon & Industries Ltd during the year 1999-2000.

5.2 Received pursuant to scheme of arrangement between Samruddhi Cements Ltd. and Ultratech Cements Ltd. during the year 2010-2011.

5.3 Received on account of transfer of textile division by Kesoram Industries Ltd. to Kesoram Textile Mills Ltd. during the year 1999-2000.

6.1 Balance with customers are subject to confirmations and reconciliations

7.1 Stores and Spare Parts consumption includes materials consumed for Repairs and Replacement.

7.2 Includes Rs. 21.63 Lacs (Previous Year Rs. 2.50 Lacs) to firms in which directors are partners.

7.3 Includes Directors'' Travelling Rs. 62.50 Lacs (Previous Year Rs. 41.96 Lacs)

7.4 Includes expense relating to buyback of Shares Rs. 0.01 Lacs (Previous Year Rs. 1.30 Lacs)

8. OTHER NOTES ON ACCOUNTS

8.1 Commitments & Contingent Liabilities

(Rs. in Lacs>

2013-14 2012-13

(a) Contingent liabilities not provided for in respect of :

Claims against the Company not acknowledged as debts, are as given below :

(i) Excise Duty 5.82 5.82

(ii) Sales Tax / VAT / Work Contract Tax etc. 178.30 178.30

Provision of Rs. 25 (Previous year Rs. 25) made in an earlier year is being carried forward under the head "Provision for contingencies."

(iii) Cess & Others 21.92 21.92

(b) Other Claims :

Other claims against the Company not acknowledged as debts, are as given below** :

Labour Cases 0.50*** 0.50***

Demands raised by Provident Fund / Employee State Insurance department 7.14*** 7.14***

Other Claims 34.95*** 52.41***

** The Management feels that the Company has a good chance of success in above mentioned cases and hence no provision thereagainst is considered necessary.

*** In view of large number of cases pending at various Forums / Courts, it is not practicable to give the details of each case. List also includes certain labour matters for which amount of liability is not ascertainable at this stage.

8.2 Segment Information

(a) Business Segments:

- As of March 31, 2014, there are three business segments i.e. Electrical Equipments for Power Transmission and Distribution (comprising of Meter, Transformer and Switchgear), Elevator and Others. A description of the types of products and services provided by each reportable segment is as follows:

- Electrical Equipments for Power Transmission and Distribution :- The Company deals in meters, manufactures and supplies power and distributes transformers and switchgear.

- Elevator Divisions manfufactures equipments/components of elevators for executions of jobs for erection and installation and also the supplies to other parties in the market.

- Other includes Contract Division carries out Contracts of Railway Electrification.

(b) Geographical Segments:

- Since the Company does not exports and operates in the domestic market which is governed by the same risks and returns, no geographical information is provided.

(c) Primary segment information (by Business segments)

- The following table presents revenue and profit information regarding business segments for the years ended March 31, 2014 and March 31, 2013 and certain assets and liability information regarding business segments at March 31, 2014 and March 31, 2013.

8.3 Disclosure under AS-15 (Employees'' Benefit) :

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the plan (based on Actuarial Valuation) : -

8.4 During the earlier year, the Company had entered into an agreement with developer/s for a project to construct residential units for weaker section on the company''s surplus land at Hyderabad. Due to the party violating the terms and conditions of agreement dated 17.09.2007, the company had filed a suit in the city civil court, Hyderabad, for cancellation of the agreement and for recovery of the possession of the land handed over to developer for construction only. However, the Hon''ble Court has passed an order not accepting the contention of the company. The company has filed an appeal before the Hon''ble High Court of Andhra Pradesh against the above order of the City Civil Court at Hyderabad. The Management does not anticipate any loss/liability to arise on this account.

8.5 Previous year figures have been reclassified / regrouped to confirm current year figures.


Mar 31, 2013

1.1 Segment Information

(a) Business Segments:

- As of March 31, 2013, there are three business segments i.e. Electrical Equipments for Power Transmission and Distribution (comprising of Meter, Transformer and Switchgear), Elevator and Others. A description of the types of products and services provided by each reportable segment is as follows:

- Electrical Equipments for Power Transmission and Distribution :- The Company deals in meters, manufactures and supplies power and distributes transformers and switchgear.

- Elevator Divisions manfufactures equipments/components of elevators for executions of jobs for erection and installation and also the supplies to other parties in the market.

- Other includes Contract Division carries out Contracts of Railway Electrification.

(b) Geographical Segments:

- Since the Company does not exports and operates in the domestic market which is governed by the same risks and returns, no geographical information is provided.

(c) Primary segment information (by Business segments)

- The following table presents revenue and profit information regarding business segments for the years ended March 31, 2013 and March 31, 2012 and certain assets and liability information regarding business segments at March 31, 2013 and March 31, 2012.

1.2 During the earlier year, the Company had entered into an agreement with developer/s for a project to construct residential units for weaker section on the company''s surplus land at Hyderabad. Due to the party violating the terms and conditions of agreement dated 17.09.2007, the company had filed a suit in the City Civil Court, Hyderabad, for cancellation of the agreement and for recovery of the possession of the land handed over to developer for construction only. However, the Hon''ble Court has passed an order not accepting the contention of the company. The company has filed an appeal before the Hon''ble High Court of Andhra Pradesh against the above order of the City Civil Court at Hyderabad. The Management does not anticipate any loss/liability to arise on this account.

1.3 Related Party Disclosure :

Related party Disclosure as identified by the management in accordance with the Accounting Standard -18 issued by the Accounting Standards by Companies (Accounting Standards) Rules, 2006.

I. Names of Related Parties

A Key Management Personnel

Shri P.K. Mohta Chairman & Managing Director B Relative of Related Parties

Shri Sakate Khaitan Director (Son-in-law of Shri P.K. Mohta)

C Enterprises over which any person described in [ A & B ] above is able to exercise significant influence and with whom the company has transaction during the year.

NIL

1.4 Disclosure under AS-15 (Employees'' Benefit) :

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The following tables summarise the components of net benefit expense recognised in the statement of profit and loss and the funded status and amounts recognised in the balance sheet for the plan (based on Actuarial Valuation) :

1.5 Previous year figures have been reclassified / regrouped to confirm current year figures.


Mar 31, 2012

Rights, preferences and restrictions attached with Shares

Equity Shares : The company has issued one class of Equity Share having a par value of Rs. 10/- per share. Each Shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion of their shareholding.

1.1 The Board has recommended dividend of Rs. 0.50 (paise fifty only) per share on 78,78,663 equity shares (net of 22647 equity shares bought back after balance sheet date)

[Previous year Rs. 0.25 (paise twenty five only) per share on 87,76,310 equity shares]

2.1.a Payable for goods and services includes acceptances Rs. NIL (Previous Year Rs. 32.79 Lacs)

2.1.b The Company has not received any intimation from any of its suppliers regarding their status under "The Micro, Small and Medium Enterprises Development Act, 2006" and hence disclosures, relating to amounts unpaid as at the year end along with interest, if any, payable as required under the said Act have not been given. The Company generally makes payments to all its suppliers within the agreed credit period (generally less than 45 days) and thus, the Management is confident that the liability of interest under this Act, if any, would not be material.

3.1 The Company had made claims against Uttar Haryana Bijli Vitran Nigam Ltd. (UHBVN) for refund of liquidated damages deducted by the Electricity Board as well as interest on delayed payment of bills/due installments by the Board. The arbitrator, appointed by the chairman, UHBVN, had given award in favour of the Company which was subsequently confirmed by the Additional Distt. Judge, Panchkula (Haryana). The Board has, however, filed an appeal with the Hon'ble High Court, Punjab & Haryana. While admitting the appeal, the Hon'ble High Court passed an interim order directing the Board to pay to the company a sum of Rs. 608.08 lacs against bank guarantee of the same amount as security to the Board. The Board has made payment against bank guarantee given to them as security. As the matter is sub-judice, the amount is lying in Other Current Liabilities.

Additional Notes

4.1.1 Warranty provision covers the estimated expenses to be incurred during warranty period of the products of the company determined on the basis of past experience. The company reviews the warranty provisions at periodical intervals and the same is adjusted to the estimated expenses to be incurred during the balance warranty period of the product. Expenses incurred during the year against warranties are being directly charged to Statement of Profit & Loss.

4.1.2 Provision for loss on Onerous Contracts has been made towards estimated amount of loss on pending Railway Electrification jobs.

4.1.3 Kindly refer to Note No. 26.1 [b(ii)].

NOTES:-

1. Leasehold land includes land amounting to Rs. 2.08 lacs (Previous year Rs. 2.08 lacs) under perpetual lease.

2. Building includes Rs. 250/- (Previous Year Rs. 250/-) being the cost of 5 (Five) Shares issued by Hanuman Unit Holder Premises Co-operative Society Limited, Vadala.

3. Out of the above Fixed Assets Land, Building, Electric Installation and Air Conditioning Plant aggregate value of Rs. 0.49 lacs (Previous Year Rs. 0.49 lacs) are owned with other co-owners.

5.1 Received pursuant to the scheme of arrangement between Grasim Industries Ltd. and Indian Rayon & Industries Ltd during the year 1999-2000.

5.2 Received pursuant to scheme of arrangement between Samruddhi Cements Ltd. and Ultratech Cements Ltd. during the year 2010-2011

5.3 Received on account of transfer of textile division by Kesoram Industries Ltd. to Kesoram Textile Mills Ltd. during the year 1999-2000.

6.1 Includes Rs. 2.50 Lacs (Previous Year Rs. 2.50 Lacs) to a firm in which a director is a partner.

6.2 Includes Directors' Travelling Rs. 18.50 Lacs (Previous Year Rs. 9.35 Lacs)

7.1 Commitments & Contingent Liabilities

(Rs. in Lacs)

2011-12 2010-11

(a) Capital Commitments

Estimated Amount of contracts remaining to be executed 120.00 155.60 on capital account and not provided for (Advance paid Rs. 30 Lacs Previous Year Rs. 64.75 Lacs)

(b) Contingent liabilities not provided for in respect of:

Claims against the Company not acknowledged as debts, are as given below:

(i) Excise Duty 5.82 5.82

(ii) Sales Tax/VAT/Work Contract Tax etc. 193.82 238.67 (Provision of Rs. 25 Lacs made in an earlier year is being carried forward under the head "Provision for contingencies.")

(iii) Cess & Others 21.92 0.60

(c) Other Claims:

Other claims against the Company not acknowledged as debts, are as given below**:

Labour Cases 0.50*** 0.50***

Demands raised by Provident Fund / Employee State Insurance department 7.14*** 7.78***

Other Claims 52.71*** 50.70***

** Based on the Legal Opinions, the Management feels that the Company has a good chance of success in above mentioned cases and hence no provision thereagainst is considered necessary. *** In view of large number of cases pending at various Forums / Courts, it is not practicable to give the details of each case. List also includes certain labour matters for which amount of liability is not ascertainable at this stage.

7.2 Segment Information

(a) Business Segments:

- "As of March 31, 2012, there are three business segments i.e. Electrical Equipments for Power Transmission and Distribution (comprising of Meter, Transformer and Switchgear), Elevator and Others. A description of the types of products and services provided by each reportable segment is as follows:

- Electrical Equipments for Power Transmission and Distribution :- The Company deals in Meters, manufacture and supplies distribution and Power Transformer and Switchgear.

- Elevator Divisions manufactures equipment components of elevators for executions of jobs for erection and installation and also the supplies to other parties in the market.

- Other includes Contract Division carries out Contracts of Railway Electrification.

(b) Geographical Segments:

- Since the Company operates in the domestic market which is governed by the same risks and returns, no geographical information is provided.

(c) Primary segment information (by Business segments)

- The following table presents revenue and profit information regarding business segments for the years ended March 31, 2012 and March 31, 2011 and certain assets and liability information regarding business segments at March 31, 2012 and March 31, 2011.

7.3 During the earlier year, the Company had entered into an agreement with developer/s for a project to construct residential units for weaker section on the company's surplus land at Hyderabad. Due to the party violating the terms and conditions of agreement dated 17.09.2007, the company had filed a suit in the City Civil Court, Hyderabad, for cancellation of the agreement and for recovery of the possession of the land handed over to developer for construction only. However, the Hon'ble Court has passed an order not accepting the contention of the company. The company has filed an appeal before the Hon'ble High Court of Andhra Pradesh against the above order of the City Civil Court at Hyderabad. The Management does not anticipate any loss/liability to arise on this account.

7.4 Related Party Disclosure :

Related party Disclosure as identified by the management in accordance with the Accounting Standard -18 issued by the Accounting Standards by Companies (Accounting Standards) Rules, 2006.

I. Names of Related Parties

A Key Management Personnel

Mr. P.K. Mohta Chairman & Managing Director

B Relative of Key Management Personnel

Mr. Sakate Khaitan Director (Son-in-law of Shri P.K. Mohta)

C Enterprises over which any person described in [ A & B ] above is able to exercise significant influence and with whom the company has transaction during the year.

NIL

7.5 Disclosure under AS-15 (Employees' Benefit):

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the plan (based on Actuarial Valuation):

7.6 The Company has prepared current year account as per Presentation and disclosure requirement of Revised Schedule-VI to the Companies Act,1956 applicable with effect from 1st April, 2011. Previous year figures has been reclassified / regrouped to confirm current year figures.


Mar 31, 2010

1. Nature of Operations

ECE Industries Limited is mainly engaged in the manufacturing and selling of Transformer, Elevators Components, and Switchgear and is also engaged in the erection and installation of Elevator. The Company has manufacturing facilities at Hyderabad (Andhra Pradesh), Sonepat (Haryana), and Ghaziabad (Uttar Pradesh).

2. (a) Segment Information

BUSINESS SEGMENTS:

As of March 31, 2010, there are three business segments i.e. Electrical Equipments for Power Transmission and Distribution (comprising of Meter, Transformer and Switchgear), Elevator and Contract. A description of the types of products and services provided by each reportable segment is as follows:

Electrical Equipments for Power Transmission and Distribution - The Company manufactures and supplies power & distribution transformers and switchgear.

Contract Division carries out contracts of railways electrification.

Elevator Division manufactures equipments/ components of elevators for execution of jobs for erection and installation and also for supplies to other parties in the market.

GEOGRAPHICAL SEGMENTS:

Since the Company does not make much of exports and mainly operates in the domestic market which is governed by the same risks and returns, no geographical information is provided.

PRIMARY SEGMENT INFORMATION (BY BUSINESS SEGMENTS)

The following table presents revenue and profit information regarding business segments for the years ended March 31, 2010 and March 31, 2009 and certain assets and liability information regarding business segments at March 31, 2010 and March 31, 2009.

3. Related Party Disclosure : (a) Names of the Related Parties

Key Management Personnel (i) * Mr. P.K.Mohta-Chairman & Managing Director

(ii) ** Mr. R.N.Jaju - President and Chief Executive Officer

Enterprises owned or significantly (i) ** Vimlesh Industries Private Limited(VIL) through Sh. R.N.Jaju influenced by key management personnel or their relatives

Relatives of key management (i) * Mr. Sakate Khaitan, Director - Son-in-law of Sh. P.K.Mohta personnel

*w.e.f. 1.11.2008 ** Upto 5.6.2008

4. Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summarise the components of net benefit expense recognised in the profit and loss account and the funded status and amounts recognised in the balance sheet for the plan.

5. Contingent Liabilities not provided for

As on 31.03.10 As on 31.03.09 (Rs. in Lacs) (Rs. in Lacs) (a) Bank Guarantees given by the Company 7303.15 4587.98

(b) Income Tax matters : For assessment year 1999-2000, 1436.00 1436.00 Income Tax department has preferred an appeal before Honble High Court of Delhi against Income Tax Appellate Tribunals order passed in favour of the company relating to slump sale of one of the units of the company.

(c) Employees State Insurance Corporation (ESIC), Andhra Pradesh raised a demand of Rs. 57.54 lacs in respect of the years 1983 to 1999 for Meter Division, Hyderabad. The Company has filed appeal before Employees Insurance Court & Industrial Tribunal, Hyderabad. The appeal of the Company has been admitted by depositing Rs. 7.38 lacs with ESIC and also furnishing a bank guarantee of Rs. 7.00 lacs. The matter is pending before the court for hearing and decision. However, the Company had, as a cautionary measure, in earlier year provided liability of Rs. 14.38 lacs which is being carried forward. The Company is not anticipating any liability of a material amount, other than those provided.

** Based on the discussion with the Solicitors/Meeting with contractual terms and conditions as applicable, the management feels that the Company has a good chance of success in above mentioned cases and hence no provision there against is considered necessary.

*** In view of large number of cases pending at various forums / courts, it is not practicable to give the detail of each case. List also includes certain labour matters for which amount of liability is not ascertainable at this stage.

6. The company had made claims against Haryana Vidyut Prasaran Nigam Limited (HVPNL)(now UHBVN) for refund of liquidated damages deducted by the Electricity Board as well as interest on delayed payment of bills/due installments by the Board. The arbitrator, appointed by the chairman, HVPNL, had given award in favour of the company which was subsequently confirmed by the Additional Distt. Judge, Panchkula ( Haryana). The Board has, however, filed an appeal with the Honble High Court, Punjab & Haryana. While admitting the appeal, the Honble High Court passed an interim order directing the Board to pay to the company a sum of Rs. 608.08 lacs against bank guarantee of the same amount as security to the Board. The board has made payment against bank guarantee given to them as security. As the matter is sub-judice, the amount is lying in current liabilities under the head Sundry Creditors.

7. During the earlier year, the Company had entered into an agreement with developer/s for a project to construct residential units for weaker section on the companys surplus land at Hyderabad. Due to the party violating the terms and conditions of agreement dated 17.09.2007, the company had filed a suit in the city civil court, Hyderabad, for cancellation of the agreement and for recovery of the possession of the land. However, the Honble court has passed an order not accepting the contention of the company. The company is in the course of filing appeal in the High Court of Andhra Pradesh at Hyderabad. The management does not anticipate any loss/liability to arise on this account.

8. Derivative Instruments and unhedged Foreign Currency Exposure :

9. Disclosure as per Section 22 of "The Micro, Small and Medium Enterprises Development Act, 2006"

The Company has not received any intimation from any of its suppliers regarding their status under the said Act and hence disclosures, relating to amounts unpaid as at the year end along with interest if any payable as required under the said Act have not been given. The Company generally makes payments to all its suppliers within the agreed credit period (generally less than 45 days) and thus, the Management is confident that the liability of interest under this Act, if any, would not be material.

NOTES

(a) N.A.: Not applicable in terms of Governments of Indias Notification No. S. Q. 477(E) dated 25th July, 1991

(b) In case of serial no. 5 to 10, quantitative details are notfurnished being numerous in nature and each being less than 10% of the total Turnover

(c) The differences in quantative tallies are on account of internal consumption, free replacements, samples, defectives etc.

10. Previous year figures have been regrouped wherever necessary.

 
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