Notes to Accounts of Gujarat Containers Ltd.

Mar 31, 2015

1 Rs. 135,373,938/- (P.Y. Rs.7,73,89,017/-) from Bank Secured by first charge by way of Hypothecation of Plant & Machinery & other movable fixed assets of the company and further secured by first charge immovable properties of the company by way of Equitable Mortgage by deposit of Title Deeds and personally guaranteed by the Directors of the Company

2 Rs. 8,15,886/- (P.Y. Rs. 39,31,366/-) Unsecured loan from finance companies/ Banks Secured by Hypothecation of vehicles under hire purchase agreement at average interest rate of 10.43%

3 Rs. 46,65,349/- Unsecured loan from TATA Capital Finance Ltd at interest rate of 13.75% b Loans have been guaranteed by directors or others

A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realized in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31st March 2015 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current year's classification

F) Related Party Disclosure:-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

Key Management Personnel their relatives and Associate Company as on 31.03.2015are asunder:

Sr. No. Director Relative

1 Kiran Shah Geeta K Shah Neha K Shah

Neil Shah

2 Pravin Shah Jigna P. Shah

3 Abjeebhai Patel & Associates AbjeebhaiV.Patel

Bhavnaben Veljibhhai Patel Chandubhai Veljibhai Patel Dhirajbhai Veljibhai Patel Ghanshyambhai V.Patel Globe Containers Heenaben G.Patel Jamanaben V. Patel Laxmiben Dhirajbhai Patel Nandaben Nitinbhai Shagania Pushpaben Chandubhai Patel Shantaben A.Patel Shobhna A. Patel S.K.Industrie Trusha A. Patel

G) Remuneration to Directors:-

The Company has paid remuneration to its Executive Directors, in accordance with the provision of ScheduleV of the Companies Act, 2013 and as per the special resolution passed by the Company in the Annual general meeting which is within the limits specified therein.

H) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India.

I) Current Tax: During the year, Provision is made for taxes on incomesis Rs24,87,170 (Last Year Rs. 14,80,100/-)

J) The Company has subscribed to LIC Group Gratuity Scheme to cover the liability of Gratuity Payable to its employees. The valuation of Present value of Gratuity liability accrued as per valuation of LIC is '66,91,337/ - against which the premium payable is paid by the company and the same is debit to profit & loss account for the year. Balance with LIC as on 31.03.2015 is '40,28,763/-. As regards Leave Encashment the Company follows a policy that all employees avail their leave compulsorily, hence no provision is made on this account for leave encashment.

K) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small .Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

L) Depreciation and Amortization expense for the year have been calculated as per provisions of Schedule II of the Companies Act 2013, wherein all the Fixed Assets having not completed their useful life as on 01.04.2014 and shown at the Original Value have been depreciated on that value for the remaining useful life as per the rate derived from the expected life of assets

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Mar 31, 2014

1. Additional Information:

a Details of security for secured loans

1 Rs. 7,76,08,303 (P.Y. Rs. 4,13,48,469) from Bank Secured by first charge by way of Hypothecation of Plant & Machinery & other movable fixed assets of the company and further secured by first charge immovable properties of the company by way of Equitable Mortgage by deposit of Title Deeds and personally guaranteed by the Directors of the Company

2 Rs. 8,20,477 (P.Y. 16,69,419) Unsecured loan from finance companies/ Banks Secured by Hypothecation of vehicles under hire purchase agreement at average interest rate of 10.43%

3 Rs. 6,17,266 Unsecured loan from TATA Capital Finance Ltd at interest rate of 13 %

3. CONTINGENT LIABILITIES AND COMMITMENTS:

(to the extent not provided for)

a) Contingent Liabilities:

i) Claims against the Company not acknowledged as debts -

ii) Guarantees (Bank) 6,00,000 175,000

iii) Letters of credit 7,64,87,100 39,168,902

iv) Tax demands under disputes -

v) Other monies for which company is contingently liable -

The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

b) Commitments

i) Estimated amount of contracts remaining to be executed 1,53,72,265 on capital account and not provided for (net of advances) - -

ii) Uncalled liability on shares and investments partly paid - -

iii) Other Commitments (Specify nature) - -

c) Arrears of fixed cumulative dividends on preference shares (including tax thereon)

Additional information:

1) Proposed dividends:

Amount Total Amount Total per share per share

a) Amount of dividends proposed - - to be distributed to equity share holders

b) Amount of dividends proposed - - to be distributed to Preference share holders

2) Issues of securities made for a specific purpose and not used as at the balance sheet date: - -

Amount unutilized invested in Amount used for

4. A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realized in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31st March 2014 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current year''s classification

F) Related Party Disclosure:-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

G) Remuneration to Directors:-

Remuneration to Managing Director and Whole time Directors have been paid as per schedule XIII of the Companies Act, 1956, and in according resolution passed by the company in Annual General Meeting.

H) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/ liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India.

I) Current Tax: During the year, Provision is made for taxes on income sis Rs.14,80,100/-(Last Year Rs. 32,12,364/-)

J) The Company has subscribed to LIC Group Gratuity Scheme to cover the liability of Gratuity Payable to its employees. The valuation of Present value of Gratuity liability accrued as per valuation of LIC is Rs. 46,58,452/ - against which the premium payable is paid by the company and the same is debit to profit & loss account for the year. As on 31/03/14 total premium paid by the company as on 31.03.2014 is Rs. 37,81,026/-. As regards Leave Encashment the Company follows a policy that all employees avail their leave compulsorily, hence no provision is made on this account for leave encashment.

K) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small .Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

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Mar 31, 2013

Particulars As at 31-03-2013 As at 31-03-2012

1 CONTINGENT LIABILITIES AND COMMITMENTS:

(to the extent not provided for)

a) Contingent Liabilities:

i) Claims against the Company not acknowledged as debts

ii) Guarantees (Bank) 100,000

iii) Letters of credit 37,927,988

iv) Tax demands under disputes

v) Other monies for which company is contingently liable

The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

b) Commitments

i) Estimated amount of contracts remaining to be executed on capital account and not provided for (net of advances) ii) Uncalled liability on shares and investments partly paid iii) Other Commitments (Specify nature)

OTHER NOTES ON ACCOUNTS:- NOTE:2

A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realized in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31st March 2013 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current year''s classification

F) Related Party Disclosure:-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

G) Remuneration to Directors:-

Remuneration to Managing Director and Whole time Directors have been paid as per schedule XIII of the Companies Act, 1956, and in according resolution passed by the company in Annual General Meeting.

H) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/ liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India.

I) Current Tax: During the year, Provision is made for taxes on incomes is Rs. 32,12,364/- (Last Year Rs. 10,96,725)

J) Due to insufficient profits the company has not made provision for Gratuity as required by Accounting Standard AS - 15 of the Institute of C.A. of India. The liability on this account as on 31st March, 2013 as evaluated by the company is Rs ./- ( upto previous Year Rs. 35,96,489/-) Since the Company follows a policy that all employees avail their leave compulsorily, no provision is made on this account for leave encashment. To the extent of this amount the profit of current year and previous year is shown more.

K) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small .Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

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Mar 31, 2012

A Details of security for secured loans

1 Rs. 2,150,000 secured loan from bank of working Capital Term loan Secured by first charge by way of Hypothecation of Plant & Machinery & other movable fixed assets of the company and further secured by first charge immovable properties of the company by way of Equitable Mortgage by deposit of Title Deeds and personally guaranteed by the Directors of the Company The Term Loan Carries Interest @ 17.25 % p.a.(Floating) payable on monthly basis The installments are also payable at each month end

2 Rs. 32,96,111 Long Term Maturities of finance lease Obligations Secured by Hypothecation of vehicles under hire purchase agreement

The Interest on Finance lease are @ 15% p.a.(Average) payable on monthly basis. The installments are also payable at each month end

a Details of security for secured loans

1 Rs. 4,62,48,469 (P.Y. Rs. 3,36,75,657) includes working Capital Term loan of Rs. 49,00,000 (P.Y. Rs. 78,50,000) from bank along with of working Capital facilities from Bank Secured by first charge by way of Hypothecation of Plant & Machinery & other movable fixed assets of the company and further secured by first charge immovable properties of the company by way of Equitable Mortgage by deposit of Title Deeds and personally guaranteed by the Directors of the Company The Working Capital facilities carry Interest @ 16.75 % p.a. (Floating) Payable on monthly basis

2 Rs. 16,69,419 (P. Y. Rs. 7,88,201) secured loan from finance companies Secured by Hypothecation of vehicles under hire purchase agreement

1.1 CONTINGENT LIABILITIES AND COMMITMENTS:

(to the extent not provided for)

a) Contingent Liabilities:

i) Claims against the Company not acknowledged as debts

ii) Guarantees (Bank) 307,000 100,000

iii) Letters of credit 37,927,988 35,376,669

iv) Tax demands under disputes

v) Other monies for which company is contingently liable The management believes, based on internal assessment and / or legal advice, that the probability of an ultimate adverse decision and outflow of resources of the Company is not probable and accordingly, no provision for the same is considered necessary.

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Mar 31, 2011

A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realized in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31st March 2011 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current year's classification.

F) Contingent Liabilities:

Particulars Current Year Previous Year

-Claims against the company not acknowledge as debts. NIL NIL

- Liability in respect of bill discounted NIL NIL

- Liability in respect of letter of Credit opened on behalf of

company by bankers. (Net of Margin). 3,53,76,669 3,76,80,191

- Liabilities in respect of counter Guarantees given to bankers for Guarantees given by them. 1,00,000 15,00,000

G) Related Party Disclosura-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

H) Remuneration to Directors:-

Remuneration to Managing Director and Whole time Directors have been paid as per schedule XIII of the Companies Act, 1956, and in according resolution passed by the company in Annual General Meeting.

I) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/ liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India.

J) Current Tax: During the year, Provision is made for taxes on incomes is Rs. 2,31,000/- (Last Year NIL since there is loss as per books as well as per Income tax Act,1961).

K) Due to insufficient profits the company has not made provision for Gratuity as required by Accounting Standard AS - 15 of the Institute of C.A. of India. The liability on this account as on 31st March, 2011 as evaluated by the company is Rs. 35,96,489/- ( upto previous Year Rs. 31,67,956/-) Since the Company follows a policy that all employees avail their leave compulsorily, no provision is made on this account for leave encashment. To the extent of this amount the profit of current year and previous year is shown more.

L) Due to insufficient profits during the earlier years the company had not made provision for Depreciation of Rs. 52,59,816/-(Previous Year 52,59,816/- ) in total, for the F.Y. 2002-03 and F.Y. 2003-04, on it's fixed assets as per straight line method of Depreciation regularly followed by the Company. This un-provided Depreciation will be provided in Year in which the Company has sufficient profits. The Depreciation, if provided would result in further loss to company and to that extent profit of the company as shown in profit & loss account is more and the value of Net Block in Balance Sheet are shown higher.

M) The management of the company has found slow moving, obsolete and defective stock which relate to year 2002-03 and earlier periods, of Rs.297.72 lacs but have continued to show the same at it's original value in the books of accounts since then. These stocks have been written off during the current year and diminution in value of Stock is shown in Profit and Loss Account and hence now there is no obsolete and defective stock

N) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small .Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been grelied upon by the Auditors.

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Mar 31, 2010

A) In the opinion of the Board, Debtors, Loans and Advances and other Current Assets are of the value as stated in the Balance Sheet, if realised in the ordinary course of the business.

B) Balances of Depositors, Sundry Debtors, Creditors and Loans and Advances are subject to confirmation and reconciliation.

C) Estimated amount of contracts remaining to be executed on Capital Account not provided for (net of advances) as on 31s1 March 2010 is Rs. NIL (Previous Year Rs. NIL).

D) Figures have been rounded off to the nearest rupee.

E) Previous Year figures have been regrouped and/or rearranged whenever necessary to confirm with current years classification.

F) Contingent Liabilities:

Particulars Current Year Previous Year

Claims against the company not acknowledge as debts. NIL NIL

Liability in respect of bill discounted NIL NIL

Liability in respect of letter of Credit opened on behalf of company by bankers. (Net of Margin). 3,76,80,191 3,17,50,841

Liabilities in respect of counter Guarantees given to bankers for Guarantees given by them. 15,00,000 15,00,000

I) Related Party Disclosure:-

Disclosure of related party transaction as required by Accounting Standard - 18 issued by the Institute of Chartered Accountants of India.

Key Management Personnel their relatives and Associate Company as on 31.03.2010 are as under:

Sr No. Director Relative

1 Kiran Shah Geeta K Shah

2 Pravin Shah Jigna P. Shah

3 Abjeebhai Patel & Associates Neha K Shah

4 Neil Shah

G) Remuneration to Directors:-

Remuneration to Managing Director and Whole time Directors have been paid as per schedule XIII of the Companies Act, 1956, and in according resolution passed by the company in Annual General Meeting.

H) During the current year, the Company has Calculated and accounted for Deferred Tax Assets/ liability in accordance with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India. However, the Deferred Tax Assetsprovision is for two years i.e. Current year as well as past year being Rs. 4,48,553/- and Rs.4,80,903/- respectively. Further that, as the calculation of Deferred Tax Asset/liability, was not made in past years; therefore the comparable figure for the previous year is not given

I) Current Tax: During the year No provision is made for taxes on incomes, since there is loss as per books as well as per Income tax Act,1961.

J) Due to insufficient profits the company has not made provision for Gratuity as required by Accounting Standard AS - 15 of the Institute of C.A. of India. The liability on this account as on 31s March, 2010 as evaluated by the company is Rs. 31,67,956/- ( upto previous Year Rs. 25,97,592/-) Since the Company follows a policy that all employees avail their leave compulsorily, no provision is made on this account for leave encashment. To the extent of this amount the profit of current year and previous year is shown more.

K) Due to insufficient profits during the earlier years the company had not made provision for Depreciation of Rs. 52,59,816/-(Previous Year 52,59,816/- ) in total, for the F.Y. 2002-03 and F.Y. 2003-04, on its fixed assets as per straight line method of Depreciation regularly followed by the Company. This unprovided Depreciation will be provided in Year in which the Company has sufficient profits. The Depreciation, if provided would result in further loss to company and to that extent profit of the company as shown in profit & loss account is more and the value of Net Block in Balance Sheet are shown higher.

L) The management of the company has found slow moving, obsolete and defective stock which relate to year 2002-03 and earlier periods, of Rs.297.72 lacs but have continued to show the same at its original value in the books of accounts since then. These stocks are valued at Rs. 20.00 lacs approx. at scrap value as per valuation of auditors and due to this the total value of inventory is higher. The Company is in process of disposing off the same to its optimum value so that the loss is minimised. As the result of non-providing of diminution in value of these items the Profit is higher and also the value of the inventory is higher by that amount.

M) There are no entities covered Micro, Small and Medium Enterprises, as defined in Micro, Small,Medium Enterprises Development Act,2006 to whom the Company owes dues on account of principal amount together with interest and accordingly no additional disclosure have been made.

The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the company. This has been relied upon by the Auditors.

N) Additional information pursuant to para 3 to 4 of part II of Schedule VI of the Companies Act, 1956.

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Mar 31, 2009

A) Contingent Liabilities:

Particulars Current Year Previous Year

Claims against the company not acknowledge as debts. NIL NIL

Liability in respect of bill discounted NIL NIL

Liability in respect of letter of Credit opened on behalf of company by bankers. (Net of Margin). 3,17,50,841 1,94,84,713

Liabilities in respect of counter Guarantees given to bankers for Guarantees given by them. 15,00,000 5,00,000

B) During the year, the Company has not accounted for Deferred Tax in accordancs with the Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Council of the Institute of Chartered Accountants of India, which will effect the figure of net profits and accumulated profit in reserve and surplus to that extent

C) Current Tax : During the year No provision is made for taxes on incomes, since there is loss as per books as well as per Income tax Act,1961. However, provision is made for Fringe Benefi: Tax..

D) Due to insufficient profits the company has not made provision for Gratuity as required by Accounting Standard AS - 15 of the Institute ol C.A. of India. The liability on this account as ot 31s1 March, 2009 as evaluated by the company is Rs. 25,97,592/- and upto previous Year was Rs. 18,37,645/- Since the Company follows a policy that all employees avail their leave compulsorily, no provision is made on this account for leave encashment. .To the extent of this amount the profit of current year and previous year is shown more.

E) Due to insufficient profits during the earlier years the company had not made prov sion for Depreciation of Rs. 52,59,816/-(Previous Year 52,59,816/-) in total, for the F.Y. 2002-03 and FY. 2003-04, on its fixed assets as per straight line method of Depreciation regularly followed by the Company. During the Last year, out of the unprovided depreciation, the Company has made provision of Rs. 11,99,075/- being unprovided depreciation of all assets except for Plant & Machinery for F.Y.2003-04 and the ba ance depreciation of Rs. 52,59,816/- (P.Y. 52,59,816/-) still remains unprovided. This unprovided Depreciation will be provided in Year in which the Company has sufficient profits. The Depreciation, if provided would result in further loss to company and to that extent profit of the company as shown in profit & loss account is more and the value of Net Slock in Balance Sheet are shown higher.

F) The management of the company has found slow moving, obsolete and defective stock which relate to year 2002-03 and earlier periods, .of Rs.297.72 lacs but have continued to show the same at its original valueinthebooksof accounts since then. These stocks are valued at Rs. 20.00 lacs approx. at scrap value as per valuation of auditors and due to this the total value of inventory is higher. The Company is in process of disposing off the same to its optimum value so that the loss is minimised. As the result of non -providing of diminution in value of these items the Profit is higher and also the value of the inventory is higher by that amount.

G) The Company has made claims from materials suppliers in past for discounts and rate difference and has also made claims for freight charges from customers which relate to years 2002-03 and earlier periods and are not yet accepted by other parties. The same are still continued to be shown as receivable and considered good.

H) The Company has asked its suppliers to give information about the application of Small Scale Industries Undertaking definition to them as per clause (i) of section 3 of the Industries (Development and Regulation) Act, 1951. However, in absence of this information, the details required regarding dues to such S.S.I, units is not given under current liabilities.

I) ADDITIONAL INFORMATION PURSUANT TO PART-IV OF SCHEDULE-V1 OF THE COMPANIES ACT, 1956.