Notes to Accounts of Globus Corporation Ltd.

Mar 31, 2014

1. Provision and Contingent Liability:-

A provision is recognized if, as a result of a past event, the Group has a present legal obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are determined by the best estimate of the outflow of economic benefits required to settle the obligation at the reporting date. Where no reliable estimate can be made, a disclosure is made as contingent liability. A disclosure for a contingent liability is also made when there is a possible obligation or a present obligation that may, but probably will not, require an outflow of resources. Where there is a possible obligation or a present obligation in respect of which the likelihood of outflow of resources is remote, no provision or disclosure is made. Accordingly the Contingent Liabilities of the Company are noted below:

a) The management has reported that there is no contingent liability in respect of Bank guarantee except the bank guarantees of aggregate of Rs.19,40,000.00/- lacs given to four power distribution companies, against which there is F.D of Rs.4,85,000/- lying with bank. Bank guarantee claim period expired and there is no outstanding BG .

b) Tata SSL Limited has filed a Summary Suit against the company for a claim of Rs. 41,48,696.00/- plus interest. As per company liabalities is Rs. 32,76,471/- The company had accounted for Rs.32,76,471.00/- in its books of accounts being amount payable to Tata SSL Limited. Ta ta SSL had already orally committed to us that they will start supplying material to us and we gradually pay their dues in installments as mutually decided. As and when, the particular requirement of material arises, the company will proceed. Accordingly, the difference amount of claim is contingent. The matter has not yet come for hearing till date.

c) Pankaj Metals Pvt.Ltd. has filed summary suit against the company for a claim of Rs. 9106848/- Which is pending before the Hon''ble high court. The company had filled an affidavit against their claim. The hon''ble High court transferred the suit to the list of commercial causes.

2. Onerous Contract:

Provisions for onerous contracts are recognized when the expected benefits to be derived by the Group from a contract are lower than the unavoidable costs of meeting the future obligations under the contract. The provision is measured at lower of the expected cost of terminating the contract and the expected net cost of fulfilling the contract. There are no such contracts entered into by the Company.

3. Balances of sundry debtors, creditors, loans & advances are as provided by the Management if any. , management has been told to confirm the balances of sundry debtors, creditors and loans and they have replied that the same will be provided later on.

4. During the Year Bad Debts of Rs.36,36,198.03/- has been charged to Profit &Loss Account and procedure for the Bad debts have been observed by the Assessee by way of Communication and Reminders.

5. In the opinion of Board of Directors, Current Assets, Loans & Advances have a value on realization at least equal to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in account for all known liabilities except stated otherwise.

6. Based on the information with the Company, there are no suppliers who are registered as Micro, Small, and Medium Enterprise as at 31.03.2014 in terms of the provisions of " The Micro, Small, and Medium Enterprise Development Act, 2006."

7. In view of the suspension of business of the company, the Whole Time Director has claim only salary and not claimed any commission, P.F., perquisites & other funds hence the computation of net profit under section 349 of the Companies Act, 1956, is not required.

8. Since company has suspended its manufacturing and business activity and hence laborers at the plant are laid off; their balances are yet to be settled. The Company is in the process of clearing the dues and partial compensation has been given for the same.

9. a) As far as the secondary business segment is concerned the operations of the company are only spread within the geographical region of India and there are no activities outside India.

b) Segments have been identified and reporting is done according to the nature of products and services, the differing risk and returns, the organisation structure and internal financial reporting systems.

c) Segment Revenue, results, assets and liabilities are reported, wherever possible, based on the respective amount identifiable to each of the segments and amounts allocated on reasonable basis.

10. There are no Related Party Trans actions as certified by the Management in this regards, except the loans from Directors as mentioned in the financial statements.

11. Previous year figures are regrouped, rearranged and rounded off wherever necessary.

12. The Break up of the Deferred Tax Li ability for the year is as under:

Refer Schedules forming part of the Balance sheet - Schedule No.9

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Mar 31, 2013

1. Contingent Liability:-

a) The management has reported that there is no contingent liability in respect of Bank guarantee except the bank guarantees of aggregate of Rs.19,40,000.00 lacs given to four power distribution companies, against which thereis F.D of Rs.4,85,000/= lying with bank.

b) Tata SSL Limited has filedaSummary Suit against the company for aclaim of Rs. 4148696/- plus interest. The company has already accounted for Rs.32,76,471.00 in its books of accounts being amount payable to Tata SSL Limited. Tata SSL had already orally committed to us that they will start supplying material to us and we gradually pay their dues in installments as mutually decided. As and when, the particular requirement of material arises, the company will proceed. Accordingly, the difference amountofclaimiscontingent. The matter has not yet come for hearing till date.

c) Pankaj Metals Pvt.Ltd. has filed summary suit against the company for a claim of Rs 9106848/- Which is pending before the Hon''ble high court.The company had filled an affidavit against their claim.The hon''ble High court transferred the suit tothe listof commercial causes.

f. On re-assessment of Income Tax for Assessment year 2006-07, assessing officer has issued notice demanding

Rs.29,24,021/- against which company has made rectification application U/s 154 of Income Tax Act. 1961 for giving credit of Tax already paid.

2) Balances of sundry debtors, creditors, loans & advances are as provided by the Management if any. , management has been told to confirm the balances of sundry debtors, creditors and loans and they have replied that the same will be provided later on.

3) No Provision for Doubtful debts is made / provided for the year.

4) In the opinion of Board of Directors, Current Assets, Loans & Advances have a value on realization at least equal to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in account for all known liabilities except stated otherwise.

5) Based on the information with the Company, there are no suppliers who are registered as Micro, Small, and Medium Enterprise asat31.03.2013intermsofthe provisions of"The Micro, Small, and Medium Enterprise Development Act, 2006."

6) In view of the suspension of business of the company, the Whole Time Director has claimed only salary and not claimed any commission, P.F., perquisites & other funds hence the computation of net profit under section 349 of the Companies Act, 1956,isnot required.

7) Since company has suspended its manufacturing and business activity and hence laborers at the plant are laid off; their balances are yet tobe settled. The Company is in the process of clearing the dues and partial compensation has been given for the same.

There is regrouping of manufacturing excisable goods sale and trading excisable goods sale and hence difference of segment revenueascomparedtoreported unaudited quarterly results.

* Interest expensesisunallocable between the segment and hence takenintotal

** The segment wise details of other assets and liabilities is not reported asit is not possible to differentiate the details in view of the natureofactivities ofthe business and the inherent nature ofassets and liabilities.

b) As far as the secondary business segment is concerned the operations of the company are only spread within the geographical regionof India and there arenoactivities outside India.

c) Segments have been identified and reportingisdone accordingto the natureofproducts and services, the differing risk and returns, the organisation structure and internal financial reporting systems.

d) Segment Revenue, results, assets and liabilities are reported, wherever possible, based on the respective amount identifiabletoeachofthe segments and amounts allocatedonreasonable basis.

8) There areno Related Party Transactions as certified by the Management in this regards, except the loans from Directors and their relatives and rent for officetorelativeofDirector asmentionedin the financial statements.

9) Previous year figures are regrouped, rearranged and rounded off wherever necessary.

10) The Breakupofthe Deferred Tax Liability for the yearisas under:

Refer Schedules forming partofthe Balance sheet Schedule No.9 SignaturetoSchedule1to20, which formanintegral partofthe accounts.

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Mar 31, 2012

1. Contingent Liability:-

a) The management has reported that there is no contingent liability in respect of Bank guarantee except the bank guarantees of aggregate of Rs. 50.07 lacs given to four power distribution companies and N.S.I.C. for the amount of their outstanding contracts. Out of these Rs. 12.61 Lacs B.G. secured by way of Fixed Deposit with Banks.

b) Tata SSL Limited has filed a Summary Suit against the company for a claim of Rs. 41, 48,696/- plus interest. The company has already accounted for Rs. 32, 76,471/- in its books of accounts being amount payable to Tata SSL Limited. Tata SSL had already orally committed to us that they will start supplying material to us and we gradually pay their dues in installments as mutually decided. As and when, the particular requirement of material arises, the company will proceed. Accordingly, the difference amount of claim is contingent. The matter has not yet come for hearing till date.

c) Pankaj Metals Pvt.Ltd. has filed summary suit against the company for a claim of Rs 9106848/- Which is pending before the Hon'ble high court.

d) In the case of TNEB award in the arbitration proceedings has been awarded in favour of company, however, award amount has been not issued to the company on the ground that TNEB will file appeal against the award however till date no appeal has been filed by them.

f) On re-assessment of Income Tax for Assessment year 2006-07, assessing officer has issued notice demanding Rs.29,24021/- against which company has made rectification application U/s 154 of Income Tax Act. 1961 for giving credit of Tax already paid.

2) Balances of sundry debtors, creditors, loans & advances are as provided by the Management if any. , management has been told to confirm the balances of sundry debtors, creditors and loans and they have replied that the same will be provided later on. During the audit process, it has been came to notice that certain debtors and creditors are set- off by way of book entries citing the reason that company has purchase as well as sale with above said parties, and they are associate parties.

3) No Provision for Doubtful debts is made / provided for the year.

4) In the opinion of Board of Directors, Current Assets, Loans & Advances have a value on realization at least equal to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in account for all known liabilities except stated otherwise.

5) Based on the information with the Company, there are no suppliers who are registered as Micro, Small, and Medium Enterprise as at 31.03.2012 in terms of the provisions of " The Micro, Small, and Medium Enterprise Development Act, 2006."

6) In view of the suspension of business of the company, the Whole Time Director has waived part of his salary & has not claimed for any commission, RE, perquisites & other funds hence the computation of net profit under section 349 of the Companies Act, 1956, is not required.

7) Since company has suspended its manufacturing and business activity and hence laborers at the plant are laid off and their balances are settled.

There is regrouping of manufacturing excisable goods sale and trading excisable goods sale and hence difference of segment revenue as compared to reported unaudited quarterly results.

* Interest expenses is unallocable between the segment and hence taken in total

** The segment wise details of other assets and liabilities is not reported as it is not possible to differentiate the details in view of the nature of activities of the business and the inherent nature of assets and liabilities.

b) As far as the secondary business segment is concerned the operations of the company are only spread within the geographical region of India and there are no activities outside India.

c) Segments have been identified and reporting is done according to the nature of products and services, the differing risk and returns, the organisation structure and internal financial reporting systems.

d) Segment Revenue, results, assets and liabilities are reported, wherever possible, based on the respective amount identifiable to each of the segments and amounts allocated on reasonable basis.

8) There are no Related Party Transactions as certified by the Management in this regards, except the loans from Directors and their relatives and rent for office to relative of Director as mentioned in the financial statements. No payment by way of interest in made to these related parties.

9) Previous year figures are regrouped, rearranged and rounded off wherever necessary.

10) The Break up of the Deferred Tax Liability for the year is as under:

Refer Schedules forming part of the Balance sheet Schedule No.9

Signature to Schedule 1 to 19, which form an integral part of the accounts.

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Mar 31, 2011

1. Contingent Liability:-

a) The management has reported that there is no contingent liability in respect of Bank guarantee except the bank guarantees of aggregate of Rs.20.61 lacs given to four power distribution companies for the amount of their outstanding contracts. Out of these 5.19 Lacs B.G. secured by way of Fixed Deposit with Banks.

b) Tata SSL Limited has filed a Summary Suit against the company for a claim of Rs. 41,48,696/- plus interest. The company has already accounted for Rs. 32,76,471/- in its books of accounts being amount payable to Tata SSL Limited. Tata SSL had already orally committed to us that they will start supplying material to us and we gradually pay their dues in installments as mutually decided. As and when, the particular requirement of material arises, the company will proceed. Accordingly, the difference amount of claim is contingent. The matter has not yet come for hearing till date.

c) Pankaj Metals Private Limited has filed two cases against the company, one a company petition and one Summary Suit in the high court, for a claim of Rs. 91,06,848/-, out of which, company petition is set aside by the Honorable High court. Hence, company's appeal is succeeded and no second appeal is filed by Pankaj Metals Private Limited. The second case of summary suit is pending for hearing before the Honorable High court.

d) In the case of TNEB award in the arbitration proceedings has been awarded in favour of company, however, award amount has been not issued to the company on the ground that TNEB will file appeal against the award, however till date no appeal has been filed by them.

e) Survey matter from Mumbai Sales tax authority (VAT Dept.) was duly handled by Accounting staff of the company and is in progress and records of sales, purchases & confirmations of the company has been submitted and VAT assessment is pending for the period 2005-06 to 2008-09.

f) For A.Y 2006-07 Income. Tax department has passed an order U/s-143(3) of The Income Tax Act,1961, demanding Rs. 10,90,79,516/-. Against which the company had filed the first appeal with CIT A(IX), who had partly allowed the appeal made by the company on 30.10.2009.Company has made second appeal with I.T.A.T. Tribunal for the balance relief on 26.11.2009 in which tribunal directed the A.O of the company to re-assess the records of the company, vide their order dated 14.05.2010.

On reassessment notice company has submitted all the relevant document and records and company is positive in its outlook in above said matter in their favour.

2) Balances of sundry debtors, creditors, loans & advances are as provided by the Management if any. , management has been told to confirm the balances of sundry debtors, creditors and loans and they have replied that the same will be provided later on. During the audit process, it has been came to notice that certain debtors and creditors are set- off by way of book entries citing the reason that company has purchase as well as sale with above said parties, and they are associate parties.

3) No Provision for Doubtful debts is made / provided for the year.

4) In the opinion of Board of Directors, Current Assets, Loans & Advances have a value on realization at least equal to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in account for all known liabilities except stated otherwise.

5) Based on the information with the Company, there are no suppliers who are registered as Micro, Small, and Medium Enterprise as at 31.03.2011 in terms of the provisions of " The Micro, Small, and Medium Enterprise Development Act, 2006."

6) In view of the overall restructuring of the company, the Whole Time Director has decided to waive his salary in full & has not claimed for any commission, P.F., perquisites & other funds hence the computation of net profit under section 349 of the Companies Act, 1956, is not required.

7) The company was liable to pay P. F to the employees, salary from 2005 to 2010, for which company has paid P. F of Rs. 64,111/- on 17.05.2010 from 2005 to march'10.also company has discharged its statutory liabilities of P.F. and ESIC for year ended 31.03.2011 in time.

8) Information in regard to licensed capacity and installed capacity.

Installed Capacity as certified by the Management on triple shift basis and accepted / relied by the Auditors being technical matter.

9) Segment Reporting: -

a) The Primary business segments are:

— Manufacturing Activity (Power Conductor Cables)

— Trading activities

b) As far as the secondary business segment is concerned the operations of the company are only spread within the geographical region of India and there are no activities outside India.

c) Segments have been identified and reporting is done according to the nature of products and services, the differing risk and returns, the organisation structure and internal financial reporting systems.

d) Segment Revenue, results, assets and liabilities are reported, wherever possible, based on the respective amount identifiable to each of the segments and amounts allocated on reasonable basis.

10) There are no Related Party Transactions as certified by the Management in this regards, except the loans from Directors and their relatives and rent for office to relative of Director as mentioned in the financial statements. No payment by way of interest in made to these related parties.

11) Previous year figures are regrouped, rearranged and rounded off wherever necessary.

12) The Break up of the Deferred Tax Liability for the year is as under:

Refer Schedules forming part of the Balance sheet Schedule No.9

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Mar 31, 2010

1) Contingent Liability

a) The management has reported that there is no contingent liability in respect of Bank guarantee except the bank guarantees of aggregate of Rs. 11,20 lacs given to four power distribution companies for the amount of their outstanding contracts. Out of these 8.00 Lacs B.G. secured by way of Fixed Deposit with Banks and 3.20 lacs B. G. are 25 % secured by way of Fixed Deposit with Banks

b) Tata SSL Limited has filed a Summary Suit against the company for a claim of Rs. 41,48,696/- plus interest. The company has already accounted for Rs. 32,76,471/- in its books of accounts being amount payable to Tata SSL Limited. Tata SSL had already orally committed to us that they will start supplying material to us and we gradually pay their dues in installments as mutually decided. As and when, the particular requirement of material arises, the company will proceed. Accordingly, the difference amount of claim is contingent. The matter has not yet come for hearing till date.

c) Pankaj Metals Private Limited has filed two cases against the company, one a company petition and one Summary Suit in the high court, for a claim of Rs. 91,06,848/-, out of which, company petition is set aside by the Honorable High court. Hence, companys appeal is succeeded and no second appeal is filed by Pankaj Metals Private Limited. The second case of summary suit is pending for hearing before the Honorable High court.

d) As per SEBI Order dated 24/06/2010 for alleged violation of the Act, Dr. Mahendra C. Shah, MD of the company has resigned from the post.

e) The Proceedings of the case of Tamil Nadu Electricity Board are pending for admission in the Honorable High Court of Chennai.

f) On 07.05.2009, Sales tax authority(VAT Dept.) had visited the Mumbai premises of the company and had asked to produce records of sales, purchases & confirmations, the company has complied with. VAT assessment is pending for the period 2005-06 to 2008-09.

g) For A.Y 2006-07, A. O. of the company had passed an I. Tax order U/s-143(3) of The Income Tax Act,1961, demanding Rs. 10,90,79,516/-. Against which the company had filed the first appeal with CIT A(IX), who had partly allowed-the appeal made by the company on 30.10.2009.Company has made second appeal with I.T.A.T. Tribunal for the balance relief on 26.11.2009 in which tribunal directed the A. O of the company to re-assess the records of the company, vide their order dated 14.05.2010.

2) Balances of sundry debtors, creditors, loans & advances are as provided by the Management if any. , management has been told to confirm the balances of sundry debtors, creditors and loans and they have replied that the same will be proVidSd fater on

3) No Provision for Doubtful debts is made / provided for the year.

4) In the opinion of Board of Directors, Current Assets, Loans & Advances have a value on realization at least equal to the amount at which they are stated in the Balance Sheet. Adequate provisions have been made in account for all known liabilities except stated otherwise.

5) During the year, preliminary expenses had been fully written off.

6) Based on the information with the Company, there are no suppliers who are registered as Micro, Small, and Medium Enterprise as at 31.03.2010 in terms of the provisions of" The Micro, Small, and Medium Enterprise Development Act, 2006."

7) In view of the overall restructuring of the company, the Managing director has decided to waive his salary in full & has not claimed for any commission, P.F., perquisites & other funds hence the computation of net profit under section 349 of the Companies Act, 1956, is not required.

8) The company was liable to pay P.F to the employees, salary from 2005 to 2010, for which company has paid P.F of Rs. 64,111/- on 17.05.2010 from 2005 to march10.

9) Information in regard to licensed capacity and installed capacity.

Description of Goods :- Licensed Capacity Installed Capacity Power Conductors / Cables 5000 M.T. 5000 M.T.

Installed Capacity as certified by the Management on triple shift basis and accepted / relied by the Auditors being technical matter.

10) There are no Related Party Transactions as certified by the Management in this regards, except the loans from Directors and their relatives and rent for office to relative of Director as mentioned in the financial statements. No payment by way of interest in made to these related parties.

11) Previous year figures are regrouped, rearranged and rounded off wherever necessary.

12) The Break up of the Deferred Tax Liability for the year is as under: Refer Schedules forming part of the Balancesheet Schedule No. 10.