Home  »  Company  »  Khaitan Electric  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Khaitan Electricals Ltd.

Mar 31, 2015

A) Nature of securities:

1) Term Loan

a) Loan from Allahabad Bank is secured by an equitable mortgage of Immovable property owned by a third party subservient charge on the current assets and fixed assets of the Company and personal guarantee of Chairman & Managing Director of the Company.

b) Vehicle loan from IDBI Bank and Axis Bank are/were secured by hypothecation of Vehicles.

2) Working Capital Term Loan and Funded Interest Term Loan from Banks are secured as follows :-

a) First charge on entire current assets of the Company both present and future on pari passu basis amongst working capital consortium Bankers.

b) Collateral security- Pari passu first charge on the entire fixed assets of the Company, present and future excluding - 1) The property at Noida, 2) Land & Building at the lease hold land at Kolkata, 3) Lease hold land with building at Balanagar, Hyderabad, 4) Land at Kala AMB and 5) Land at Dehradun.

c) Personal Guarantee of Chairman & Managing Director of the Company.

b) Cash Credit facilities and Term Loans ( Other than Vehicle Loans) have been restructured by the leading Banks during the Current Year.

c) The term of repayment and other details for Term Loans are given below -

Particulars 31.03.2015 31.03.2014

Note No : 2.1 Contingent Liabilities not provided for in respect of :

a) Claims against the Company not acknowledged as debts

i) Central Excise Duty/Service Tax under appeal 35,280,370 35,280,370

Amount deposited against above (230,112) (230,112)

ii) Sales Tax/Entry Tax under appeal 144,692,213 103,633,249

Amount deposited against above (24,857,679) (10,092,787)

iii) Employees State Insurance 711,216 711,216

Amount deposited against above (33,033) (33,033)

iv) Extension Fee by Administrator of Haryana Urban Development Authority under appeal 7,103,310 7,103,310

v) Letter of Credit under dispute 13,697,200 13,197,789

b) The Company has entered into a sub-lease Agreement on 19/10/1985 for Kolkata Factory premises with M/s P.C.Shyam & Co., the lessee, with the consent of Kolkata Port Trust (KPT), the lessor. The lease which expired in April, 1987 is yet to be renewed by the lessor. The amount of liability not provided in this respect, if any, is presently not ascertainable.

The amounts shown in (a) above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

2.2 Commitments: Capital contracts remaining to be executed and not provided is NIL (Previous year Rs. 49,000,000/-) against which an advance of NIL (Previous year Rs. 19,536,412/-) is paid.

2.3 Balances outstanding with Debtors and Creditors are subject to confirmation.

2.4 Provisions, Contingent Liabilities and Contingent Assets as per AS-29 :

a. Movement in provision for warranty claims : (Amount in Rupees)

b. The future cash outflow in respect of above provision is dependent upon payment by customers for bills discounted/fans sent by customers for replacement etc.

The Company does not expect any reimbursements in respect of the above provisions.

2.5 Company operates predominantly only in one business segment, viz, Electrical Goods, which is the Primary Segment. Therefore, Segment Reporting under AS-17 is not applicable.

2.6 Related Party Disclosure (as identified by the Management) as per Accounting Standard 18 are given below: i) Details of transactions with Relaled Parties:

iv) Notes :

a) Figures in the brackets pertain to previous year.

b) The Company has neither written off nor written back any amount recoverable/payable from / to any related party during the year.

c) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

d) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

2.7 Disclosure under clause 32 of the listing agreement:

There are no transactions (except related party transactions) which are required to be disclosed under clause 32 of the listing agreement with the stock exchanges where the equity shares of the Company are listed.

2.8 Earnings Per Share - The numerator and denominator used to calculate Basic/Diluted Earning per share:

2.9 As per Accounting Standard - 15 "Employee Benefits ", the disclosure of Employee Benefits as defined in the Accounting Standard are as follows:

Defined Contribution Plan:

Employee benefits in the form of Provident Fund, Employee State Insurance Scheme and Labour Welfare Fund are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognized as expense in the Statement of Profit and Loss for the year are as under:

Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized in the Statement of Profit and Loss for the year ended 31st March,2015 in respect of Employees Benefit Schemes based on actuarial reports as on 31st March, 2015 is as follows:

VII. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The Gratuity Expenses & Leave Encashment have been recognized in "Salaries, Wages, Bonus, etc. " under Note No. 2.25

IX. Other disclosures:

The following disclosures as required by AS-15 could not be made as the relevant information is not available in the actuarial valuation report. :

(i) Expected Employer's contribution for next year

(ii) Experience adjustments of plan assets Gain/(Loss)

(iii) Experience adjustments of Obligation Gain/(Loss)

2.10 The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small & Medium Enterprises Development Act, 2006) claiming their status as on 31.03.2015 as micro, small and medium enterprises. Consequently the amount paid/payable to these parties as on 31.03.2015 is NIL (Previous Year Rs. NIL).

2.11 The Company has charged depreciation based on the revised remaining life of the assets as per the requirement of Schedule II to the Companies Act,2013 effective 1st April,2014.Had the aforesaid change not being made, the depreciation expense and loss for the year would have been higher by Rs. 7,348,023/- and the net fixed assets would have been lower by the like amount.

2.12 Details of Loans given, investments made and guarantee given covered under section 186 (4) of the Companies Act, 2013:

2.13 The previous year's figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2014

1. The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The holders of Equity Shares are entitled to receive dividend as declared from time to time. In the event of liquida- tion of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. Notes : Reserve against share warrants forfeited was created for amount of premium received against subscription of Warrantes foreited due to option not excercised by the subscribers.

3. General reserve is primarily created to comply with the requirements of section 205(2A) of the Companies Act,1956. This is a free reserve and can be utilised for any general purpose like for issue of bonus shares,payment of dividend, buy back of shares etc.

4. a) Nature of securities:

i) Vehicle loan from Axis Bank Ltd. IDBI Bank Ltd. and HDFC Bank are secured against hypothecation of vehicles.

ii) Rupee Term Loan from Allahabad Bank is secured by an equitable mortgage of immovable property owned by a third party, Fixed Deposit of Rs. 3,52,00,000/- of the Company and is also secured by personal guarantee of Chairman & Managing Director of the Company.

iii) Loan against keyman Insurance policy is secured against Keymen Insurance Policy.

(Amount in Rupees)

Particulars As at 31.03.2014 As at 31.03.2013

3. Contingent Liabilities not provided for in respect of :

a) Claims against the Company not acknowledged as debts :-

i) Central Excise Duty/Service Tax under appeal 35,280,370 27,058,448

Amount deposited against above (2,30,112) (-)

ii) Sales Tax/Entry Tax under appeal 103,633,249 73,388,832

Amount deposited against above (10,092,787) (14,224,712)

iii) Employees State Insurance 711,216 711,216

Amount deposited against above (33,033) (33,033)

iv) Extension Fee by Administrator of Haryana Urban Development Authority under appeal 7,103,310 7,103,310

v) Letter of Credit under dispute 13,197,789 11,908,590

b) The Company has entered into a sub-lease Agreement on 19/10/1985 for Kolkata Factory premises with M/s P.C.Syam & Co., the lessee, with the consent of Kolkata Port Trust (KPT), the lessor. The lease which expired in April, 1987 is yet to be renewed by the lessor. The amounts shown in (a) above represent the best possible estimates arrived at on the basis of available information. The uncertainties and timing of the cash flows are dependent on the outcome of the different legal processes which have been invoked by the Company or the claimants as the case may be and therefore cannot be estimated accurately. The Company does not expect any reimbursement in respect of above contingent liabilities.

In the opinion of the management, no provision is considered necessary for the disputes mentioned above on the grounds that there are fair chances of successful outcome of appeals.

3. Commitments: Capital contracts remaining to be executed and not provided for Rs. 49,000,000 (Previous year Rs. 49,500,000) against which an advance of Rs. 19,536,412 (Previous year Rs. 20,036,412) is paid.

4. Balances outstanding with Debtors and Creditors are subject to confirmation.

5. Provisions, Contingent Liabilities and Contingent Assets as per AS-29 :

a. Movement in provision for warranty claims : (Amount in RUpccS)

Particulars 2013-14 2012-13

Opening Balance 8,501,757 8,929,654

Provided during the year 63,279,320 46,692,217

Expense/used during the year (61,473,578) (46,685,470)

Reversed during the year (1,292,145) (434,644)

Closing Balance 9,015,354 8,501,757

Timing of outflow/uncertainties Outflow on repairing/ replacement of fans

b. The future cash outflow in respect of above provision is dependent upon payment by customers for bills discounted/fans sent by customers for replacement etc.

The Company does not expect any reimbursements in respect of the above provisions.

6. Company operates predominantly only in one business segment, viz, Electrical Goods, which is the Primary Segment. Therefore, Segment Reporting under AS-17 is not applicable.

7. Notes :

a) Figures in the brackets pertain to previous year.

b) The Company has neither written off nor written back any amount recoverable/payable from / to any related party during the year.

c) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

d) The transactions with related parties have been entered at an amount which are not materially different from those on normal commercial terms.

8. Disclosure under clause 32 of the listing agreement:

There are no transactions (except related party transactions) which are required to be disclosed under clause 32 of the listing agreement with the stock exchanges where the equity shares of the Company are listed.

9. Other disclosures:

a) The amount of Expected Employer''s contribution for next year is not available and therefore, not disclosed.

b) The following disclosures as required by AS-15 could not be made as the relevant information is not available in the actuarial valuation report:

(i) Experience adjustments of plan assets Gain/(Loss)

(ii) Experience adjustments of Obligation (Gain)/Loss

10. The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small & Medium Enterprises Development Act, 2006) claiming their status as on 31.03.2014 as micro, small and medium enterprises. Consequently the amount paid/payable to these parties as on 31.03.2014 is NIL (Previous Year Rs. NIL).

11. Based on the review made at the Balance Sheet date , MAT Credit recognized in earlier year is carried forward as the Management is confident that there will be sufficient taxable profit during the specified period to utilized the same.

12. The previous year''s figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.


Mar 31, 2013

As at 31.03,2013 As at 31.03.2012

Notes No: 1.1

Contingent Liabilities not provided for in respect of:

a) Claims not acknowledged as debts :-

i) Central Excise Duty under appeal 27,058,448 24,326,006 Amount deposited against above

ii) Sales Tax under appeal 73,388,832 60,802,930

Amount deposited against above (14,224,712) (5,815,718)

iii) Employees State Insurance 711,216 711,216

Amount deposited against above (33,033) (33,033)

iv) Extension Fee by

Administrator of Haryana Urban Development

Authority under appeal 7,103,310 7,103,310

v) Letter of Credit under dispute 11,908,590

b) The Company has entered into a sub-lease Agreement on 19/10/1985 for Kolkata Factory premises with M/s P.C.Syam & Co., the lessee, with the consent of Kolkata Port Trust (KPT), the lessor. The lease which expired in April, 1987 is yet to be renewed by the lessor.

1.2 Capital contracts remaining to be executed and not provided for Rs. 49,500,000 against which an advance of Rs. 20,036,412 is paid (Previous year Rs. 52,000,000 against which an advance of Rs. 22,436,412 is paid).

1.3 Balances outstanding with Debtors and Creditors are subject to confirmation.

1.4 Company operates predominantly only in one business segment, viz, Electrical Goods, which is the Primary Segment. Therefore. Segment Reporting under AS-17 is not applicable.

1.5 Related Party Disclosure (as identified by the Management) as per Accounting Standard 18 are given below:

I) Details of transactions with Relaled Parties: (Amount in Rupees)

1.6 Disclosure under clause 32 of the listing agreement:

There are no transactions (except related party transactions) which are required to be disclosed under clause 32 of the listing agreement with the stock exchanges where the equity shares of the Company are listed.

1.7 As per Accounting Standard - 15 "Employee Benefits ", the disclosure of Employee Benefits as defined in the Accounting Standard are as follows: Defined Contribution Plan:

Employee benefits in the form of Provident Fund, Employee State Insurance Scheme and Labour Welfare Fund are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognized as expense for the year are as under:

Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets. Any asset resultingfrom this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized in the Statement of Profit and Loss for the year ended 31st March,2013 in respect of Employees Benefit Schemes based on actuarial reports as on 31st March, 2013 is as follows:

1.8 The Company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small & Medium Enterprises Development Act, 2006) claiming their status as on 31.03.2013 as micro, small and medium enterprises. Consequently the amount paid/payable to these parties as on 31.03.2013 is NIL (Previous Year Rs. NIL).

1.9 Previous Year''s figure have been re-grouped / re-arranged, wherever necessary.


Mar 31, 2012

1. Contingent Liabilities not provided for in respect of

(Amount in Rupees)

As at 31.03.2012 As at 31.03.2011

a.Claims not acknowledged as debts

i) Central Excise Duty under appeal 24,326,006 23,343,806 Amount deposited against above iCKvSJSl

ii) Sales Tax under appeal 60,802,930 58,306,386 Amount deposited against above (5,815,718) (13,878,770)

iii) Employees State Insurance 711,216 711,216 Amount deposited against above (33,033) (33,033)

iv) Extension Fee by Administrator of Haryana Urban Development Authority under ' 7,103,310 7,103,310 appeal

b. The Company has entered into a sub-lease Agreement on 19/10/1985 for Kolkata Factory premises with M/s P.C.Syam & Co., the lessee, with the consent of Kolkata Port Trust (KPT), the lessor. The lease which expired in April, 1987 is yet to be renewed by the lessor.

2. Capital contracts remaining to be executed and not provided for Rs. 52,000,000 against which an advance of Rs. 12,150,940 is paid. (Previous year Rs. 52,000,000 against which an advance of Rs. 12,150,940 is paid)

3 Balances outstanding with Debtors and Creditors are subject to confirmation.

b. The Contingent liabilities and liabilities mentioned at Note No. 2.28 & 2.31(a) respectively are dependent upon disposal of appeals/payment by customers for bills discounted/fans sent by customers for replacement etc.,

c. No reimbursement is expected in the case of Contingent liabilities and liabilities shown under Note No. 2.28 & 2.31(a).

d. There are no Contingent Assets.

4 Company operates predominantly only in one business segment, viz, Electrical Goods, which is the Primary Segment. Therefore, Segment Reporting under AS-17 is not applicable.

5. Related Party Disclosure (as identified by the Management) as per Accounting Standard 18 are given below:

(i) Details of transactions with Related Parties:

iv) Related party Notes :

a) Figures in the brackets pertain to previous year.

b) The company has neither written off nor written back any amount recoverable/payable from / to any related party during the year.

c) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

6. Disclosure under clause 32 of the listing agreement

There are no transactions (except related party transactions) which are required to be disclosed under clause 32 of the listing agreement with the stock exchanges where the equity shares of the company are listed.

Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized in the profit and loss account for the year ended 31st March,2012 in respect of Employees Benefit Schemes based on actuarial reports as on 31st March, 2012 is as follows:

VII. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary. The Gratuity Expenses & Leave Encashment have been recognized in "Salaries, Wages, Bonus, etc." under Note No. 2.25

7. The company has not received any memorandum (as required to be filed by the suppliers with the notified authority under the Micro, Small & Medium Enterprises Development Act, 2006) claiming their status as on 31.03.2012 as micro, small and medium enterprises. Consequently the amount paid/payable to these parties as on 31.03.2012 is NIL (Previous Year Rs. NIL).

8. The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of Financial Statements. This has Significantly impacted the disclosure and presentation made in the Financial Statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification/disclosure.


Mar 31, 2010

1. Contingent Liabilities not provided for in respect of

As at 31.03.2010 As at 31.03.2009

a. Claims not acknowledged as debts :-

i) Central Excise Duty under appeal 23,751,493 736,529

Amount deposited against aoove (405,687)

iii Sales Tax under appeal 39,445,730 22,015,936

Amount deposited against above (14,298,653) (7,752,351)

iii) Employees State insurance 711,216 711,216

Amount deposited against above (33,033) (33,033)

iv) Urban Development Act under Appeal 7,103,310 7,103,310

b. Guarantees issued by the Bank on behalf of the Company and counter 1,221,887 12.486,435 guarantees 1,221,887 12,486,435 given by the Company

c. The Company has entered into a sub-lease Agreement on 19/10/1985 for Kolkata Factory premises with M s PC.Syam & Co., the lessee with the consent of Kolkata Port Trust (KPTi. the iessor. The lease which expired in April, 1987 is yet to be renewed by the lesson The KPT has issued a notice for eviction of the premises against which the lessee has filed a case in the Honble High Court at Kolkata. The Company has aiso filed a case at the Honble High Court at Kolkata.

2. a) Cash Credit - Rupee Loan include interest accrued and due Rs. 163,362 (Previous year Rs. Nil). b) Foreign Currency Loan Include interest accrued and due Rs. Nil (Previous year Rs. 158.133).

3. Capital contracts remaining to be executed and not provided for Rs. 10,247,940 (Previous year 14,911,393).

4. Balances outstanding with Debtors and Creditors are subject to confirmation.

5. Advance Income Tax is net of Provision for Income Tax Rs. 5,35,00,000 (Previous year Rs. 4,35,00,000).

6. Accrued Expenses and Other Liabilities include due to Directors Rs. 68,600 (Previous year Rs. 105,972).

7. Provisions. Contingent Liabilities & Contingent Assets as per AS-29: a. Movement in provision for warranty claims :

b. The Contingent liabilities and liabilities mentioned at Notes 1 & 7(a) respectively are dependent upon disposal of appeals/ payment by customers for bills discounted/fans sent by customers for replacement etc.,

c. No reimbursement is expected in the case of Contingent Liabilities and liabilities shown under Notes 1 & 7(a).

d. There are no Contingent Assets.

8. Salaries, Wages, Bonus etc. include Rs. 365,982 (Previous Year Rs. 1,463,933) amortised towards Employees Separation Scheme framed for the workers of Faridabad unit. The un-amortized amount of Deferred Revenue Expenditure in respect of Employees Separation Scheme as on 31st March, 2010 amounts to Rs. Nil (Previous Year Rs. 365,982).

9. Miscellaneous Income include Export Incentives Rs. 3,902.670 (Previous year Rs. 5,944,700), Sundry Balances Written Back Rs. 643,087 ( Previous year Rs. Nil), Liabilities no longer required written back Rs. 148,403^ Previous year Rs. 18,802). Foreign Exchange Fluctuation Rs. 4,649,466 (Previous Year Rs. Nil).

10. Rent (net) includes Rent received (gross) Rs. 1,915,902 (Previous year Rs. 2,051.976), Tax deducted at Source Rs. 193,339 (Previous year Rs. 285.248)

11. Interest includes interest on Fixed Loans Rs. 30,217,002 (Previous year Rs. 15,369,488). Interest is net of gross interest received Rs. 71.860,517 (Previous year Rs. 119,252.605), Tax Deducted at Source is Rs. 3.505.258 (Previous year Rs. 9.742,162).

12. Company operates predominantly only in one business segment, viz., Electrical Goods, which is the Primary Segment. Therefore, Segment Reporting under AS-17 is not applicable.

13. Related Party Disclosure (as identified by the Management) as per Accounting Standard 18 are given below:

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

iv) The Significant transactions during the year with related parties are as under:

iv) Related party transactions Notes :

a) Figures in the brackets pertain to previous year.

b) The company has neither written off nor written back any amount recoverable/payable from / to any related party during the year.

c) The amount due from related parties are good and hence no provision for doubtful debts in respect of dues from such related parties is required.

14. Disclosure under clause 32 of the listing agreement

There are no transactions (except related party transactions) which are required to be disclosed under clause 32 of the listing agreement with the stock exchanges where the equity shares of the company are listed.

15. Goods in Transit include Raw Materials Rs. 2,627,715 (Previous Year Rs. 2,311,189, Stock-in-Trade Rs. 11,233,546 (Previ- ous year Rs. 8,068,298) and Stock in Process Rs. 3,524,514 (Previous Year 3,099,998)

16. As per Accounting Standard - 15 "Employee Benefits ", the disclosure of Employee Benefits as defined in the Accounting Standard are as follows:

Defined Contribution Plan:

Employee benefits in the form of Provident Fund, Employee State Insurance Scheme and Labour Welfare Fund are considered as defined contribution plan and the contributions are made in accordance with the relevant statute and are recognized as an expense when employees have rendered service entitling them to the contributions. The contribution to defined contribution plan, recognized as expense for the year are as under:

Defined Benefit Plan:

Post employment and other long-term employee benefits in the form of gratuity and leave encashment are considered as defined benefit obligation. The present value of obligation is determined based on actuarial valuation using projected unit credit method as at the Balance Sheet date. The amount of defined benefits recognized in the balance sheet represent the present value of the obligation as adjusted for unrecognized past service cost, and as reduced by the fair value of plan assets.

Any asset resulting from this calculation is limited to the discounted value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. The amount recognized in the profit and loss account for the year ended 31st March,2010 in respect of Employees Benefit Schemes based on actuarial reports as on 31st March, 2010 is as follows:

VII. Basis of estimates of rate of escalation in salary

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

The Gratuity Expenses & Leave Encashment have been recognized in "Salaries. Wages, Bonus etc." under Schedule-10.

17. Previous Years figures have been re-grouped / rearranged, wherever necessary, to make them comparable with those of the previous year.