Notes to Accounts of Khaitan Electricals Ltd.

Mar 31, 2016

NOTE No. 1 SIGNIFICANT ACCOUNTING POLICIES FOR THE YEAR ENDED 31ST MARCH, 2016

1.1 Basis of Accounting

a) The financial statements have been prepared under the historical cost convention in accordance with the generally accepted accounting principles in India, including the accounting standards specified under section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

b) The Company generally follows accrual system of accounting and recognizes significant items of income and expenditure on accrual basis.

c) All Assets and Liabilities have been classified as current or non-current as per the Company''s normal operating cycle and other criteria set out in the Schedule III to the Companies'' Act, 2013. Based on the nature of operations and time between the procurement of raw materials and their realization in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current and non-current classification of assets and liabilities.

1.2 Fixed Assets

a) Fixed Assets are stated at their original cost (net of accumulated depreciation and amortization) of acquisition including all related expenses of acquisition and installation.

b) Depreciation on tangible fixed assets is provided on straight line basis so as to charge the cost of the assets or the amount substituted for costs in case of revalued assets less its residual value over the useful life of the respective asset as prescribed under Part C of Schedule II to the Companies Act, 2013. Residual value has been considered as 5% of the cost of the respective assets.

c) Leasehold land is amortized, over the period of lease. Computer Software acquired is amortized over a period of five years on Straight Line Basis.

1.3 Inventories

a) Inventories (other than scrap) are valued at lower of cost or net realizable value.

The cost of inventories is computed on weighted average basis except trading goods the cost of which is calculated on first in first out basis. Cost of inventory comprises of purchase price, cost of conversion and other directly attributable cost that have been incurred in bringing the inventories to their respective present location and condition.

b) Scrap is valued at net realizable value.

1.4 Investments

Investments are either classified as current or long-term based on Management''s intention at the time of purchase. Long term Investments are carried at cost. Provision for diminution is made to recognize a decline, other than temporary, in the value of noncurrent investments, script wise. Current Investments are valued at lower of cost or fair value, category wise. Cost of investments include acquisition cost such as brokerage, stamp duty etc.

1.5 Sales

a) Sale of goods is recognized at the time of transfer of substantial risk and rewards of ownership to the buyer for a consideration.

b) Sales is inclusive of Excise Duty and net of Sales Tax and Trade Discount.

1.6 Employee benefits

a) Short-term employee benefits are recognized as an expense at the undiscounted amount in the Statement of Profit and Loss of the year in which the related service is rendered.

b) Post employment and other long term employee benefits are recognized as an expense in the Statement of Profit and Loss for the year in which the employee has rendered services. The expense is recognized at the present value of the amount payable determined as per actuarial valuations. Actuarial gains and losses in respect of long term employee benefits are recognized in the Statement of Profit and Loss.

1.7 Research & Development

Revenue expenditure pertaining to research and development is charged to revenue in the year in which it is incurred. Capital expenditure on research and development is shown as addition to Fixed Assets.

1.8 Foreign Currency Transactions

a) Transactions in Foreign Currency are initially recorded at the Exchange Rate at which the transactions are carried out.

b) Monetary items are translated at Exchange Rate prevailing at the year-end.

Any income or expense on account of exchange difference either on settlement or on translation at the year-end is recognized in the Statement of Profit and Loss.

c) Forward exchange contracts entered into for hedging purposes are accounted for separately from the underlying transactions. The premium or discount on forward exchange contract is amortized over the period of the respective contract.

1.9 Insurance Claims

Insurance claims are recognized when the amount thereof can be reasonably ascertained and the claim is likely to be received.

1.10 Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognized in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered probable as a result of a past event, and the Company 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 measured by the best estimate of the outflow of economic benefits required to settle the obligation at the balance sheet date.

Contingent liabilities are shown by way of Notes on Account in respect of obligations where, based on the evidence available, their existence at the Balance Sheet date is considered not probable.

Provisions, contingent liabilities and contingent assets are reviewed at each balance sheet date.

Re-imbursement expected in respect of expenditure to settle a provision is recognized only when it is virtually certain that the reimbursement will be received.

Contingent assets are neither recognized nor disclosed in the Accounts.

1.11 Taxes On Income

Current tax is determined as the amount of tax payable in respect of taxable income for the year. Deferred tax is recognized, subject to consideration of prudence in respect of deferred tax assets, on timing difference, being the difference between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are reviewed as at each Balance Sheet date and written down or written up to reflect the amount that is reasonably/virtually certain to be realized.

The deferred tax for timing differences between the book and tax profit for the period is accounted for using the tax rates and laws that have been enacted or substantively enacted as of the balance sheet date.

1.12 Impairment Of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. An impairment loss is charged to the Statement of Profit and Loss in the year in which an asset is identified as impaired. The impairment loss recognized in prior accounting period is reversed if there has been a change in the estimate of recoverable amount.

1.13 Cash flow statement

Cash flows are reported using the indirect method, whereby profit/loss before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing flows. The cash flows from operating, investing and financing activities of the Company are segregated.

d. 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 liquidation 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.

e. 500,000 9% non convertible, non cumulative redeemable Preference Shares of Rs.100/- each have been issued at par during the year in lieu of extinguishment of amount due on account of principal debt of Rs. 50,000,000/-. The Preference shares shall be redeemable at par in one or more tranches as may be decided by the board of directors within 20 years from the date of allotment. The Preference shares shall not carry any voting right except in accordance with the provisions of Section 47(2) of the Companies Act, 2013.

f. Reconciliation of number and amount of equity & preference shares outstanding:

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, both 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.

Nature of securities:

Cash Credit 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, both 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.

* Partly Secured against Land Situated at Dehradun having book value Rs. 18,267,250/-

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.

2.29 Commitments: Capital contracts’ remaining to be executed and not provided is NIL (Previous year Rs. NIL) against which an advance of NIL (Previous year Rs. NIL) is paid.

2.30 Balances outstanding with certain Debtors and Creditors are subject to confirmation.

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

(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.

2.34 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 represents 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, 2016 in respect of Employees Benefit Schemes based on actuarial reports as on 31st March,

2016 is as follows:

2.37 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 31.03.2016 as micro and small enterprises. Consequently, the amount paid/payable to these parties as on 31.03.2016 is NIL (Previous Year Rs. NIL).

2.38 The Company''s net worth has eroded. However, the Management believes that the Company will be able to generate sufficient resources to be able to continue as a going concern. Accordingly, these financial statements have been prepared under the going concern assumption and that no adjustments are required to the carrying value of assets and liabilities.

2.39 The Company has charged depreciation in previous year 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.

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

The above loans are to be utilized for general corporate purpose by the recipients.

b. Details of Investment made

The relevant details are given in Note no. 2.9.

c. Details of Guarantee Given

The Company has not given any Guarantee.

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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.

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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.

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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.

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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.

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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.