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Notes to Accounts of Gujarat Industries Power Company Ltd.

Mar 31, 2015



1.Contingent Liabilities not provided for :

a.Claims against company (Principal amount) pending before court (includes certain claims where the amount cannot be ascertained) :

By vendors against contractual obligations 2,927.92 2,936.10 By Ex-employee against recovery of notice 1.02 1.02 period

b.Demand for Water Reservation Charges and 775.13 775.13 interest thereon from Narmada Water Resources and Water Supply Department relating to Surat Lignite Power Plant is contested and not acknowledged as debt since at the relevant time project was under implementation and regular drawl of water was not made.

c.Bills of Exchange discounted with Banks 37,700.00 52,500.00 in respect of Sales Invoices.

d.In following cases,various claims are pending against the company/land acquisition office. Depending upon the final compensation amount determined, the cost of land may change requiring appropriate adjustment then :

Leasehold land of 165 MW Baroda Amount not Amount not ascertain ascertain -able -able

Freehold land at Surat Lignite Power Stations 1,361.12 1,630.68

e. Partial amount of demand from department of Geology & Mining, Surat for Interest on 24.09 24.09 delayed Royalty Payment on lignite for the period from April 04 to March 07 which is contested.

f. Income Tax Demand contested in Appeal. 2,651.40 2,756.95

g. Demand of Property Tax under discussion with 94.80 65.00 Grampanchayat, Nani Naroli, Dist. Surat.

h. The Maximum amount of Penalty Leviable due to NIL 306.18 default in Payment of Central excise duty on lignite excavated. The matter is pending with settlement commission.

i. Liability likely to arise on account of 448.50 448.50 transportation charges for gas which is under dispute.

j. The company has been recovering the corporate action on the share holding of Amount not Amount not Petrofils Cooperative Ltd. A portion of the ascertain ascertain said shareholding is under dispute at High -able -able Court of Gujarat. Subject to its final outcome, the company may be directed by the Honorable Court to make a payment towards the portion of such recovery.

k. Cases pending at the High Court of Gujarat for regularization of contract workmen. Amount not Amount not ascertain ascertain -able -able

l. The amount of "Pay for if not taken liability" of Rs 49.81 Crores is demanded by 4,981.00 NIL M/s GAIL on account of R-LNG Contract which the Company has entered in to with M/s GAIL to partially meet with its Fuel (Gas) requirement. The contractual liability demanded by M/s GAIL is for the calendar year 2014. The Company has requested for waiver of the same and is in dialogue with M/s GAIL. The Company has initiated measures to contest the same.

Further, for the First quarter of the current Calendar Year (Jan - March 15), the Company has received intimation from M/s GAIL about the shortfall in quantity to be consumed contractually vis a vis the quantity actually consumed. The amount of such Take or Pay (ToP) Liability intimated by M/s GAIL to the Company is Rs 94.35 Crores.

Since the plant operations of three quarters are still remaining in the current calendar year of 2015, the final liability that is likely to arise at the end of Dec 2015 and the amount thereof cannot be ascertained at this juncture.

m. Claims and disputes raised by Mines Developer and Operator Contractor of Vastan 7,464.75 NIL South Pit on account of change in stripping ratio and diesel price escalation.

2. Depreciation on certain power plants' assets which was hitherto charged on Straight Line Method at the rates specified in CERC's Tariff Regulation 2009, is now charged over the balance useful life as specified by CERC (Terms and Conditions of Tariff) Regulations, 2014. As a result for the year 2014-15, the depreciation charged is lower by Rs 3,285.07 Lacs and the Profit is higher by the same amount.

3. Due to a technical snag in the Stator Winding of the Generator, Unit -1 (125MW) of Surat Lignite Power Plant (SLPP) at Village Nani Naroli, Taluka Mangrol, Dist.: Surat, tripped on 29.1 1.2014. The costs of replacement and other related expenditure was Rs 1,850.74 lacs which has been shown as an exceptional item. The unit became operational on 03/04/2015.

As a result of the above accidental outage, sales revenue and profit were further impacted by Rs 2,227.03 Lacs since the normative availability of SLPP station I could not be achieved and fixed cost remained under recovered to that extent as per PPA.

The Company is in process of lodging insurance claim with the insurer for material damage and loss arising on business interruption.

4. Ministry of Coal, New Delhi, Guideline No. 5501 1-01-2009-CPAM Dated 7th January 2013, required opening of Tripartite Escrow Account(s) with Banks for estimated Mines Closure Expenditure. During the year Rs 1,659.25 Lacs have been deposited (P Y Rs Nil) in these accounts and an amount of Rs 1284.56 Lacs has been considered as Mines Closure Expenses for the FY 2014-15 (P Y Rs 1302.03 Lacs) in lignite extraction expenses.

5. The Company has only one reportable business segment namely 'Power Generation' under AS 17.

6. Related Party Disclosures

In accordance with the Accounting Standard 18 - 'Related Party Disclosures' the transactions with related party are given below:

Name of the Related Party Nature of Relationship

Gujarat Urja Vikas Nigam Ltd. Promoter (with significant shareholding / influence)

Shri L Chuaungo Key Management Personnel

GIPCL Projects and Consultancy Subsidiary Company Company Ltd.

Bhavnagar Energy Corporation Limited Associate Company

Development Efforts for Rural Economy MD and few officers of the and People (DEEP) - NGO promoted by the company are trustees. Company

Urja Foundation - Welfare Trust MD and few officers of the formed by the company. company are trustees.

7. Post Employment Benefits:

Defined Contribution Plan

The Company makes contributions towards provident fund, pension scheme and Superannuation Fund to Defined Contribution retirement benefit plan for qualifying employees.

The provident fund plan is operated by the Gujarat Industries Power Company Ltd. Provident Fund Trust (the Trust). Eligible employees receive benefits from the said trust which is a defined contribution plan. Under the plan, the Company is required to contribute a specified percentage of employee's salary to the retirement benefit plan to fund the benefits. The Company has recognised Rs 275.99 lacs (P.Y. Rs 280.26 lacs) for Provident Fund contributions and Rs 64.43 lacs (P.Y. Rs 37.27 Lacs) for Pension Scheme in the Profit and Loss Account.

The minimum interest rate payable by the trust to the beneficiaries every year is being notified by the government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

The superannuation fund plan is operated by Life Insurance Corporation of India (LIC) under its scheme of superannuation. The eligible employees receive benefit under the said scheme from LIC. Under the plan, the Company is required to contribute a specified percentage of employee's basic salary to the retirement benefit plan to fund the benefits. The Company has recognised Rs 41.45 lacs (P.Y. Rs 40.12 lacs) for Superannuation Fund contributions in the Profit and Loss Account.

Defined Benefit Plan

The Company recognises the liability towards the gratuity at each Balance Sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is also recognised in the same manner as gratuity.

8. Based on the information available with the company, the balance due to Micro and Small Enterprises as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is Rs 94.53 Lacs (Previous Year Rs 62.50 lacs). Payment made to suppliers beyond the due date during the year was Rs Nil (P.Y. Rs Nil). No interest during the year has been paid to Micro and Small Enterprises on delayed payments. Further, interest accrued and remaining unpaid at the year end Rs Nil (P.Y. Rs Nil).

9. The value of realizations of Current Assets, Loans and Advances in the ordinary course of business will not be less than the value at which they are stated in the Balance Sheet.

10. Confirmation of balances called from the sundry debtors and creditors are yet to be received from some parties. Debit / credit balances of such parties, so far as these have not been subsequently realized or discharged, are subject to confirmation / reconciliation. Confirmations of balances to the extent received have been reconciled.

11. During the year, one-fifth of Share issue expenses amounting to Rs 255.27 Lacs (Previous Year Rs 255.27 Lacs) have been amortised on a prorata basis.

12. Ministry of Corporate Affairs vide general circular no. 2/2011 dated 8th February, 2011, has granted the general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of certain conditions. The company, having satisfied with the conditions of the circular, is entitled for the exemptions. Necessary information regarding subsidiary has been included in the consolidated financial statements.

13. The company has reclassified the previous year figures as and when required for better presentation.






Mar 31, 2014

1. Contingent Liabilities not provided for:

a. Claims against company (Principal amount) pending before court (includes certain claims where the amount cannot be ascertained) :

By vendors against contractual obligations 2,936.10 3,084.57

By Ex-employee against recovery of notice period 1.02 1.02

b. Demand for Water Reservation Charges and 775.13 786.78 interest thereon from Narmada Water Resources and Water Supply Department relating to Surat Lignite Power Plant is contested and not acknowledged as debt since at the relevant time project was under implementation and regular drawl of water was not made.

c. Bills of Exchange discounted with Banks in 52,500.00 30,300.00 respect of Sales Invoices.

d. In following cases, various claims are pending against the company/land acquisition office. Depending upon the final compensation amount determined, the cost of land may change requiring appropriate adjustment then :

Leasehold land of 165 MW Baroda Amount not Amount not ascerta- ascerta- inable inable Freehold land at Surat Lignite Power Stations 1,630.68 1,630.68

e. Partial amount of demand from department of 24.09 24.09 Geology & Mining, Surat for Interest on delayed Royalty Payment on lignite for the period from April 04 to March 07,which is contested.

f. Income Tax Demand contested in Appeal. 2,756.95 3,187.20

g. Demand of Property Tax under discussion with 65.00 65.00 Grampanchayat, Nani Naroli, Dist.Surat.

h. The Maximum amount of Penalty Leviable due to 306.18 NIL default in Payment of Central excise duty on lignite excavated. The matter is pending with settlement commission.

i. Liability likely to arise on account of 448.50 NIL transportation charges for gas which is under dispute.

j. The company has been recovering the corporate Amount not Amount not action on the share holding of Petrofils ascerta- ascerta- Cooperative Ltd. A portion of the said inable inable shareholding is under dispute at High Court of Gujarat. Subject to its final outcome, the company may be sdirected by the Honorable Court to make a payment towards the portion of such recovery.

k Cases pending at the High Court of Gujarat for Amount not Amount not regularization of contract workmen. ascerta- ascerta- inable inable

2. Pursuant to Ministry of Coal, New Delhi, Guideline No. 55011-01-2009-CPAM Dated 7th January 2013, the Company has provided Rs 1,302.03 lacs (PY Rs3,203.84 lacs ) towards the Mine(s) Closure expenditure during the year. The amount is yet to be deposited with the Escrow Account opened/to be opened.

3. Bhavnagar Energy Company Ltd. (BECL) allotted Equity Shares of Rs10 each, fully paid, on 16.01.2014, pursuant to which BECL became an Associate. The particulars of shareholding is as below:

4. In accordance with the Accounting Standard – 22 ''Accounting for Taxes on Income'', the company has accounted for Deferred Tax on timing differences (Net of reversal during tax holiday period). Major components of Deferred Tax recognised in the accounts are:

5. Related Party Disclosures

In accordance with the Accounting Standard 18 – ''Related Party Disclosures'' the transactions with related party are given below:

Name of the Related Party Nature of Relationship

Gujarat Urja Vikas Nigam Ltd Promoter (with significant shareholding / influence)

Shri L Chuaungo, IAS Key Management Personnel

GIPCL Projects and Consultancy Company Ltd. Subsidiary Company

Bhavnagar Energy Company Limited Associate Company( w.e.f.16.01.2014)

Development Efforts for Rural Economy and People (DEEP) – NGO MD and few officers of the company are trustees. promoted by the Company

Urja Foundation - Welfare Trust formed by the company. MD and few officers of the company are trustees.

6. Post Employment Benefits:

Defined Contribution Plan

The Company makes contributions towards provident fund, pension scheme and from current year also towards Superannuation Fund to Defined Contribution retirement benefit plan for qualifying employees.

The provident fund plan is operated by the Gujarat Industries Power Company Ltd. Provident Fund Trust (the Trust). Eligible employees receive benefits from the said trust which is a defined contribution plan. Under the plan , the Company is required to contribute a specified percentage of employee''s salary to the retirement benefit plan to fund the benefits. The Company has

recognised Rs 280.26 lacs (P.Y. Rs 240.03 lacs) for Provident Fund contributions and Rs37.27 lacs (P.Y.Rs 36.21 Lacs) for Pension Scheme in the Profit and Loss Account.

The minimum interest rate payable by the trust to the beneficiaries every year is being notified by the government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

The superannuation fund plan is operated by Life Insurance Corporation of India(LIC) under its scheme of superannuation. The eligible employees receive benefit under the said scheme from LIC. Under the plan , the Company is required to contribute a specified percentage of employee''s basic salary to the retirement benefit plan to fund the benefits. The Company has recognised Rs 40.12 lacs (P.Y. Rs Nil) for Superannuation Fund contributions in the Profit and Loss Account. Defined Benefit Plan

The Company recognises the liability towards the gratuity at each Balance Sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment and Post Retirement Medical Benefits is also recognised in the same manner as gratuity.

Under Post retirement medical benefits, the company would reimburse a certain amount towards the mediclaim policy (subject to ceiling limits) to its employees. Such payment is not dependent upon the future salary increases, inflation and medical costs trend and therefore the impact of increase / decrease in medical cost trends is not required to be ascertained.

The estimate of rate of escalation in salary considered in actuarial valuation, takes into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market.

7. Based on the information available with the company, the balance due to Micro and Small Enterprises as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is Rs62.50 Lacs (Previous Year Rs63.70 lacs). Payment made to suppliers beyond the due date during the year was Rs Nil (P.Y. Rs Nil). No interest during the year has been paid to Micro and Small Enterprises on delayed payments. Further, interest accrued and remaining unpaid at the year end RsNil ( Previous Year Rs Nil) .

8. The value of realizations of Current Assets, Loans and Advances in the ordinary course of business will not be less than the value at which they are stated in the Balance Sheet.

9. Confirmation of balances called from the sundry debtors and creditors are yet to be received from some parties. Debit / credit balances of such parties, so far as these have not been subsequently realized or discharged, are subject to confirmation / reconciliation. Confirmations of balances to the extent received have been reconciled.

10. During the year, one- fifth of Share issue expenses amounting to Rs 255.27 Lacs ( Previous Year Rs 255.27 Lacs) have been amortised on a prorata basis.

11. Ministry of Corporate Affairs vide general circular no. 2/2011 dated 8th February,2011, has granted the general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of certain conditions. The company, having satisfied with the conditions of the circular, is entitled for the exemptions. Necessary information regarding subsidiary has been included in the consolidated financial statements.

12. The company has regrouped/reclassified the previous year figures as and when required for better presentation and comparison.


Mar 31, 2013

1. Pursuant to Ministry of Coal, New Delhi, Guideline No. 55011-01-2009-CPAM dated 7th January 2013, the Company has provided Rs. 3203.84 Lacs (P.Y. Rs. Nil) towards the Mine(s) Closure expenditure during the year. Barring unforeseen circumstances, the Company expects to deposit the said amount in the specially opened/to be opened "Fixed Deposit Escrow Account(s)" in the FY 2013-14 as per the provisions of the referred Guidelines. The Company is in the process of finalizing the required arrangements /amending its documents for its Tripartite Escrow Account(s) agreement with Bank and the Coal Controller''s Organisation, Ministry of Coal, Government of India

2. The Company has only one reportable business segment namely ''Power Generation" under AS 17.

3. Post Employment Benefits:

Defined Contribution Plan

The Company makes contributions towards provident fund and pension scheme to Defined Contribution retirement benefit plan for qualifying employees.

The provident fund plan is operated by the Gujarat Industries Power Company Ltd. Provident Fund Trust (the Trust). Eligible employees receive benefits from the said trust which is a defined contribution plan. Under the plan , the Company is required to contribute a specified percentage of employee''s salary to the retirement benefit plan to fund the benefits. The Company has recognised Rs. 240.03 Lacs (P.Y. Rs. 203.90 Lacs) for Provident Fund contribu- tions and Rs. 36.21 Lacs (P.Y.Rs. 34.44 Lacs) for Pension Scheme in the Profit and Loss Account/ Pre-operative expenditure for project.

The minimum interest rate payable by the trust to the beneficiaries every year is being notified by the government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

Defined Benefit Plan

The Company recognises the liability towards the gratuity at each Balance Sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment and Post Retirement Medical Benefits is also recognised in the same manner as gratuity.

Under Post retirement medical benefits, the company would reimburse a fixed amount towards the mediclaim policy (subject to ceiling limits) to its employees. Such payment is not dependent upon the future salary increases, inflation and medical costs trend and therefore the impact of increase / decrease in medical cost trends is not required to be ascertained.

4. Based on the information available with the company, the balance due to Micro and Small Enterprises as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is Rs. 63.70 Lacs (Previous Year Rs. 44.95 lacs). Payment made to suppliers beyond the due date during the year was Rs. Nil (P.Y. Rs. Nil). No interest during the year has been paid to Micro and Small Enterprises on delayed payments. Further interest accrued and remaining unpaid at the year end Rs. Nil (P.Y. Rs. Nil) .

5. The value of realizations of Current Assets, Loans and Advances in the ordinary course of business will not be less than the value at which they are stated in the Balance Sheet.

6. Confirmation of balances called from the sundry debtors and creditors are yet to be received from some parties. Debit / credit balances of such parties, so far as these have not been subsequently realized or discharged, are subject to confirmation / reconciliation. Confirmations of balances to the extent received have been reconciled.

7. The Company has reclassified the previous year figures as and when required for better presentation.

8. During the year, one- fifth of Share issue expenses amounting to Rs. 255.27 Lacs (Previous Year Rs. 255.27 Lacs) have been amortised on a prorata basis.

9. Ministry of Corporate Affairs vide General Circular no. 2/2011 dated 8th February,2011, has granted the general exemption from compliance with section 212 of the Companies Act,1956, subject to fulfillment of certain conditions. The Company, having satisfied with the conditions of the Circular, is entitled for the exemptions. Necessary information regarding subsidiary has been included in the Consolidated Financial Statements.


Mar 31, 2012

(Rs. in lacs)

AS AT AS AT 31-03-2012 31-03-2011

1. Contingent Liabilities not provided for :

a. Claims against company pending before court (includes certain claims where the amount cannot be ascertained)

By vendors against contractual obligations 3084.57 3084.57

By Ex-employee against recovery of notice period 1.02 1.02

b. Demand for Water Reservation Charges and interest thereon from Narmada 836.33 737.67 Water Resources and Water Supply Department relating to Surat Lignite Power

Plant is contested and not acknowledged as debt since at the relevant time project was under implementation and regular drawl of water was not made.

c. Bills of Exchange discounted with Banks in respect of Sales Invoices. 26600.00 7200.00

d. Interest on delay in payment of Electricity Duty not recovered from participating Amount not Amount not units and hence not deposited with the Government. ascertainable ascertainable

e. Demand for difference of Stamp Duty from office of the Deputy Collector, 452.60 452.60 Stamp Duty Valuation Office, Baroda and penalty which can be levied up to 10 times the disputed amount, on Debenture Trust Deed executed on 15.10.1996 for right issue of Partly Convertible Debentures is disputed on the ground of wrong classification and not acknowledged as debt.

f. In following cases, various claims are pending against the company/land acquisition office. Depending upon the final compensation amount determined, the cost of land may change requiring appropriate adjustment then.

Leasehold land of 165 MW Baroda Amount not Amount not ascertainable ascertainable

Freehold land at Surat Lignite Power Stations 1626.08 Amount not ascertainable

g. Demand from department of Geology & Mining, Surat for Interest on delayed 24.09 24.09 Royalty Payment on lignite for the period from April 04 to March 07.

h. Income Tax Demand contested in Appeal 1614.10 1828.32

i. Demand of Property Tax by Grampanchayat, Nani Naroli, Dist.Surat. 50.00 45.00

j. The maximum amount of penalty leviable due to default in payment of central 285.32 Nil excise duty on lignite excavated

k. Concurrent mines closure expenses are accounted as and when incurred. Amount not Amount not Consequent to the guideline dated 25.04.2012 issued by Coal Ministry, ascertainable ascertainable GOI, the company is in the process of working out of its modalities and its implication. Management is of the view that the same may not be applicable in totality.

2. 5 MW Photovoltaic crystalline silicon modules based Solar Power Plant located at the Vastan Mines, Surat Lignite Power Station was successfully commissioned in January 2012. This plant has since been capitalized.

3. Due to capitalization of Solar station as mentioned above in FY 2011-12, and also the capitalization of Units 3 & 4 of Surat Lignite Power Project and Mangrol Mines in the previous FY in the month of September, 2010, the figures of previous year are not comparable to that extent.

4. Deprecation on Fixed Assets- except lease hold land, capital spares and computer software was hitherto being provided on straight line method at the rates specified under Schedule XIV of the Companies Act, 1956. Pursuant to Circular No. 31 of the Ministry of Corporate Affairs dated 31.05.2011, Company has revised its Accounting Policy of charging of Deprecation in the books of account w.e.f. 01.04.2011. Accordingly Depreciation for the financial year 2011-12 has been arrived at on straight line basis at rates and Methods notified in CERC Tariff Regulation, 2009. Consequent to this change, depreciation for the year is higher by Rs. 77.40 Lacs and profit before tax for the year is lower by the equal amount.

5. Pursuant to GERC tariff Order of 19th April 2011 for 2x125 MW Lignite Based Units No. 3 & 4, the Company had accounted sales revenue for FY 2010-11 on provisional and estimated basis and the final accounts for previous FY 2010-2011 were accordingly finalized.

The GERC tariff order allows the Advance Against Depreciation (AAD) to cover the gap arising between annual loan repayment requirements of the Company for the project less normal depreciation otherwise admissible under the tariff. In view of lower recovery of AAD resulting from under performance of the plant for a part of the year and also overall on cumulative basis, the Company has decided to return the amount realized though AAD to GUVNL out of prudence, business and commercial considerations. Accordingly an amount of Rs. 856 Lacs which was credited to Profit and loss account for FY 2010-11 is now charged as prior period adjustment in the current financial year and shown as liability to GUVNL. Further an amount of Rs. 3,269 Lacs realized from GUVNL and credited to AAD reserve account from the monthly invoices of current financial year for this plant is also shown as refundable/ payable to GUVNL. The confirmation from GUVNL about this is awaited.

6. The Company has only one reportable business segment namely 'Power Generation" under AS 17.

7. Post Employment Benefits:

Defined Contribution Plan

The Company makes contributions towards provident fund and pension scheme to Defined Contribution retirement benefit plan for qualifying employees.

The provident fund plan is operated by the Gujarat Industries Power Company Ltd. Provident Fund Trust (the Trust). Eligible employees receive benefits from the said trust which is a defined contribution plan. Under the plan, the Company is required to contribute a specified percentage of employee's salary to the retirement benefit plan to fund the benefits. The Company has recognised Rs. 203.90 Lacs (PY Rs. 200.84 Lacs) for Provident Fund contributions and Rs. 34.44 Lacs (PY Rs. 33.78 Lacs) for Pension Scheme in the Profit and Loss Account/ Pre-operative expenditure for project.

The minimum interest rate payable by the trust to the beneficiaries every year is being notified by the government. The company has an obligation to make good the shortfall, if any, between the return from the investments of the Trust and the notified interest rate.

Defined Benefit Plan

The Company recognises the liability towards the gratuity at each Balance Sheet date. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment and Post Retirement Medical Benefits is also recognised in the same manner as gratuity.

Under Post retirement medical benefits, the company would reimburse a fixed amount towards the mediclaim policy (subject to ceiling limits) to its employees. Such payment is not dependent upon the future salary increases, inflation and medical costs trend and therefore the impact of increase / decrease in medical cost trends is not required to be ascertained.

8. Based on the information available with the company, the balance due to Micro and Small Enterprises as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is Rs. 44.95 Lacs (PY Rs. 13.39 Lacs). Payment made to suppliers beyond the due date during the year was Rs. Nil (PY Rs. Nil). No interest during the year has been paid to Micro and Small Enterprises on delayed payments. Further interest accrued and remaining unpaid at the year end Rs. Nil (PY Rs. Nil).

9. The value of realizations of Current Assets, Loans and Advances in the ordinary course of business will not be less than the value at which they are stated in the Balance Sheet.

18. Confirmation of balances called from the sundry debtors and creditors are yet to be received from some parties. Debit / credit balances of such parties, so far as these have not been subsequently realized or discharged, are subject to confirmation / reconciliation. Confirmations of balances to the extent received have been reconciled.

10. During the year ended 31st March 2012, the revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company, for preparation and presentation of its financial statements. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

11. During the year, one- fifth of Share issue expenses amounting to Rs. 255.27 Lacs (PY Rs. 148.91 Lacs) have been amortised on a prorata basis.

 
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