Notes to Accounts of Oriental Trimex Ltd.

Mar 31, 2018

CORPORATE INFORMATION

Oriental Trimex Limited was incorporated as a Private Limited Company on 22nd April 1996 under the provisions of companies Act,1956. The Company was converted into Public Company on February 06, 2001. The Company is engaged in the business of trading and processing of marble and mining of granite. The Company’s marble processing units are located at Greater Noida in NCR, at Singur near Kolkata and Gumidipoondi near Chennai. All the processing facilities of the Company are fully integrated processing facilities equipped with state-of-the-art machineries namely Gangsaws, automatic Resin Lines with robotic feeds, imported automatic Line Polishers and imported Grinding Machines. Apart from three marble processing units, the Company has a small granite processing unit in the state of Orissa. The Company has three granite quarries in the state of Orissa at Rairangpur, Behrampur and Palli which are under development. The Company has its own marketing outlets at New Delhi, Chennai, Greater Noida & Khushkhera. Oriental Trimex Limited is one of the highly spread and expanded marble processing Company’s in India. The Company had gone public in 2007 and is listed with National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

1.1 Disposals shown in Gross Carrying Amount and Accumulated Depreciation depict the values of assets held for sale transferred out to be depicted separately as assets held for sale

1.2 The Company has revalued the freehold/leasehold lands of the Company located at (a) Greater Noida (b) Gumindipoondi, Tamil Nadu and (c) Hoogli, West Bengal, based upon the valuation report of a chartered engineer, so as to reflect the fair market value of the lands.

2.1 Mode of Valuation of Inventories -

Raw Materials: At lower of weighted average cost or net realizable value

Semi-finished: At lower of cost or net realizable value

Finished: At lower of production/landed cost or net realizable value.

Appropriate overheads are loaded on absorption costing basis. Goods in transit: At lower of cost or net realizable value

Stores and spares: At lower of cost or net realizable value

2.2 Raw Material in Transit includes many shipments of marble blocks were lying with Customs Authorities for the past many years. Custom duty and other clearance charges including demurrage had not been paid in full till date. Due to commercial unviability arising from the liability of huge demurrage and other charges including penalties which are leviable on the shipments at the time of their release, the management has decided to write off the stocks lying with the Custom authorities.

2.3 Since stock records for different varieties of finished goods are not separately maintained, it is not possible to identify the items where net realizable value is lower than the production/ landed cost.

2.4 Inventories include Slow Moving Stocks amounting to Rs. 7.81 lacs (Last Year 487.19 lacs), which have been valued at net realizable value (being less than the cost) as per management’s decision.

3.1 Due by a Private Company in which directors are interested - 254.64

3.2 Allowance for Doubtful Receivables has been made partly according to management perception.

4.1 Allowance for Doubtful Advances has been made at full value of doubtful advances only in case of certain parties and at nil value in case of other parties, according to management perception.

5.1 The reconciliation of the number of shares outstanding is stated in the Statement of Changes in Equity.

5.2 Terms/rights attached to equity shares

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.

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.

6.1 Secured by pari passu charge on all present and future immovable and movable fixed assets of the company and further secured by personal guarantee of promoter directors of the company.

6.2 Jammu & Kashmir Bank Ltd. entered into a One Time Settlement with the Company vide letter dated 26.09.2017 according to which the loans of the Company were settled at Rs. 1200 lacs. Out of this, the Company has paid off Rs. 200 lacs upto 31st March, 2018 and the balance is repayable in 6 quarterly instalments of Rs. 167 lacs each commencing on June’18 and ending in Sept’19

7.1 Loan from ARCIL is secured by pari passu charge on all present and future immovable and movable fixed assets of the company and further secured by personal guarantee of promoter directors of the company.

7.2 The loan from ARCIL has become overdue during the year. The period of default is between 9 to 15 months. Meanwhile, the Company has applied to ARCIL for restructuring, which is under process.

7.3 Demand Loan from LIC secured against Keyman insurance policy.

7.4 The Company has not provided for interest on Unsecured Loans from Others of Rs. 47.47 lacs.

7.5 Loans from all the Related Parties are interest free, as certified by the management.

7.6 During the year, the Company has entered into an agreement to sell for the sale of it’s land and building at I-63, Greater Noida for Rs. 530 lacs and has received an advance of Rs. 411 from the buyer. This property was under mortgage with The Jammu & Kashmir Bank Ltd. and ARCIL and out of the advance Rs. 400 lacs have directly been paid to both the lenders equally.

8.1 The sales and Service income upto 30th June, 2018 is shown inclusive of Excise Duty. However, under the GST regime, the sales and service income is shown net of GST.

8.2 Many shipments of marble blocks were lying with Customs Authorities for the past many years. Custom duty and other clearance charges including demurrage had not been paid in full till date. Due to commercial unviability arising from the liability of huge demurrage and other charges including penalties which are leviable on the shipments at the time of their release, the management has decided to write off the stocks lying with the Custom authorities.

9.1 Jammu & Kashmir Bank Ltd. entered into a One Time Settlement with the Company vide letter dated 26.09.2017 according to which the loans of the Company were settled at Rs. 1200 lacs. Consequently, the excess balance outstanding in the books has been written back during the year.

9.2 Many shipments of marble blocks were lying with Customs Authorities for the past many years. Custom duty and other clearance charges including demurrage had not been paid in full till date. Due to commercial unviability arising from the liability of huge demurrage and other charges including penalties which are leviable on the shipments at the time of their release, the management has decided to write off the stocks lying with the Custom authorities.

Company has fulfilled the export obligation of USD 1.12 lacs (previous year 1.12 lacs) in respect of which application for export obligation discharge certificates (EODC) has been filed with the Director General Foreign Trade (DGFT) within the stipulated time.

10) Letters of confirmation of balances appearing under the heads Trade Receivables, Advances Recoverable and Other Current Assets, Recalled Debts, Trade and Other Creditors, Customers at credit, have not been received in many cases till the date of balance sheet.

11) Odissa Industrial Infrastructure Development Corporation vide their letter dated 20.11.2013 has cancelled the ownership of Plot No. 4, Somnathpur, Balasore, Odissa. The Management has already initiated efforts for revocation of the cancellation order.

12) No enterprises have been identified as a “Supplier” under the Micro, Small and Medium Enterprises Development Act, 2006. The aforesaid identification has been done on the basis of information, to the extent provided by the vendors to the Company. This has been relied upon by the Auditors.

13) TRANSACTIONS WITH RELATED PARTIES A) RELATIONSHIPS

i) Shareholders

a) Oriental Tiles Limited

b) Oriental Buildmat Exports Private Limited

c) Sunil Kumar

d) Narender Kumar Rustogi

e) Elite Stones Pvt. Ltd.

f) Yogya Wines Pvt Ltd

ii) Other Parties

a) Oriental Air & Ship Services

b) Deepali Granites Pvt. Ltd.

c) Oriental Overseas

d) Oriental Impex

e) Sunil Kumar (CHA)

iii) Directors and their Relatives

Mr. Rajesh Kumar Punia, Mrs. Savita Punia, Mr. Sunil Kumar, Mr. Vivek Seth, Mr. Rakesh K Takyar, Mr. Rakesh Punia (M/s Oriental Overseas), Mr. Dinesh Punia (M/s Oriental Impex)

iv) Key Managerial Personnel

Mr. Om Prakash Sharma (CFO); Mr. Uday Shankar Prashad (Coy. Secy.)

14) Figures of previous year have been regrouped and reclassified wherever necessary to make them comparable.

15) As per Indian Accounting Standard (Ind AS 19) “Employee Benefits”, the disclosures of Employee benefits as defined in the Accounting Standard are given below:

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Mar 31, 2015

1. SHARE CAPITAL

1.1 Terms/rights attached to equity shares

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.

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.

2. OTHER NOTES ON ACCOUNTS --- 2

a) Foreign Currency Transactions :

(i) Foreign currency transactions are recorded at the exchange rate prevailing on the date of the transaction.

(ii) Gains/losses arising out of fluctuation in the exchange rates are recognised in the period in which they arise.

(iii) Monetary assets and liabilities denominated in foreign currency are translated at the relevant rates of exchange prevailing at the year end and the resultant gain or loss is recognized in the Statement of Profit and Loss, except in the case of gain where significant uncertainties exist in relation to the actual realisation.

(iv) Premium / discount on forward exchange contracts (including options), which are not intended for trading or speculation purposes, are amortised over the period of the contract. There are no outstanding forward exchange contracts (including options) as at the Balance Sheet date.

(v) Any profit or loss arising on cancellation or settlement of forward exchange contracts (including options) is recognised as income or expense of the year.

b) Excise Duty

Excise Duty is accounted for as and when paid on the clearance of the goods from the factory.

i) Employees' Retirement and Other Benefits

Company's contribution to provident and other funds is accounted for on accrual basis and charged to Profit and Loss Account. Provident Fund is accrued on monthly basis and is deposited with the "Statutory Provident Fund". The Company's contribution is charged to the Statement of Profit and Loss Account.

Provision for unutilised leave benefits is made on accrual basis. Liability for leave encashment benefit is accounted for on the assumption that such benefits are payable to all employees at the end of accounting year.

Gratuity liability is provided for on the basis of acturial valuation. Acturial gains and losses are recognised in full in the Profit and Loss Account for the period in which they occur.

c) Borrowing Costs

Borrowing Costs that are attributable to the acquisition or construction of qualifying assets prior to commencement of commercial production are capitalised as a part of the cost of such assets. A qualifying asset is one that necessarily takes substantial period of time to get ready for intended use. All other borrowing costs are charged to revenue.

d) Miscellaneous Expenditure (to the extent not written off or adjusted)

Mines Development Expenses shall be amortised over a period of five years from the year of the commencement of commercial production.

e) Events occurring after Balance Sheet date :

Significant events occurring after the Balance Sheet date have been considered in the preparation of financial statements.

f) Taxes on Income

Provision for Current tax has been determined as per provisions of the Income Tax Act, 1961.

Deferred tax is recognised, subject to the consideration of prudence, on timing differences, 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.

Minimum Alternate Tax (MAT) credit is recognised as an assets only when and to the extent there is convincing evidence that the Company will pay normal Income Tax during the specified period. In the year in which MAT credit becomes eligible to be recognised as an asset in accordance with the recommendations contained in guidance note issued by the Institute of Chartered Accountants of India, the said asset is created by way of a credit to the statement of statement of profit and loss and shown as MAT Credit entitlement. The Company reviews the same at each Balance Sheet date and writes down the carrying amount of MAT credit entitlement to the extent it is not reasonable certain that the Company will pay normal income tax during the specified period.

g) Impairment of Fixed Assets

At the end of each year, the Company determines whether a provision should be made for impairment loss on fixed assets by considering the indications that an impairment loss may have occurred in accordance with Accounting Standard 28 on "Impairment of Assets" issued by the Institute of Chartered Accountants of India. An impairment loss is charged to the Profit and Loss Account in the year in which, an asset is identified as impaired, when the carrying value of the asset exceeds its recoverable value. The impairment loss recognised in prior accounting periods is reversed, if there has been a change in the estimate of recoverable amount.

h) Contingent Liabilities and Provisions

The Company makes a provision when there is a present obligation as a result of a past event where the outflow of economic resources is probable and a reliable estimate of the amount of the obligation can be made.

A disclosure is made for a contingent liability when there is a :

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully within the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation ;

c) present obligation, where a reliable estimate cannot be made.

i) Earning per share :

Basic earning per share is calculated by dividing the net profit or loss for the year attributable to the equity shareholders by weighted average number of shares outstanding during the year. For the purpose of calculating diluted earning per share, the net profit or loss for the year attributable to the equity shareholders and the weighted average number of shares outstanding during the year are adjusted for the effects of all dilutive potential equity shares.

j) Cash Flow Statement :

The Cash flow statement is prepared under "Indirect method" as set out in Accounting Standard-3 on Cash Flow Statements, whereby Profit/ (Loss) Before Extraordinary Items and Tax is adjusted for the effects of transactions of non-cash nature and any deferrals or accruals of past or future cash receipts or payments. The cash flows from operating, investing and financing activities of the Company are segregated based on the available information.

4. I. CORPORATE INFORMATION

Oriental Trimex Limited was incorporated as a Private Limited Company on 22nd April 1996 under the provisions of companies Act,1956. The Company was converted into Public Company on February 06, 2001. The Company is engaged in the business of trading and processing of marble and mining of granite.The Company's marble processing units are located at Greater Noida in national capital region, at Singur near Kolkata and Gumidipoondi near Chennai. All the processing facilities of the Company are fully integrated processing facilities equipped with state-of-the-art machineries namely Gangsaws,automatic Resin Lines with robotic feeds, imported from SEI, Italy,one of the pioneers and leaders in manufacturing machineries for the marble industry,imported automatic Line Polishers and imported Grinding Machines. Apart from three marble processing units,the Company has a small granite processing unit in the state of Orissa. The Company has three granite quarries in the state of Orissa at Rairangpur, Behrampur and Malkangiri which are under development. The Company has its own marketing outlets at New Delhi, Chennai, Kolkata, Greater Noida & Khushkhera apart from franchisees spread across India. Orienal Trimex Limited is one of the highly spread and expanded marble processing Company in India. The Company had gone public in 2007 and is listed with National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

YEAR ENDED YEAR ENDED II. Contingent Liabilities and 31.03.15 31.03.14 Commitments (Rs.in lacs) (Rs.in lacs)

(A) Contingent Liabilities

a) Claims against the company not acknowledged as debts

Sales Tax 85.61 91.46

Income Tax 16.25 -

Custom Duty 9.36 9.36

Excise Duty - -

b) Bank Guarantees 106.41 97.44

c) Guarantee issued to Customs Authorities 6.42 6.42

d) Letters of credit - -

e) Custom duty payable against export obligation 45.94 45.94

f) Interest on Recalled Working Capital and Term Loan Not Not Ascertained Ascertained

Note:

In case of recalled working capital limits and term loans, interest after the date of recall has been calculated on estimated basis at then prevailing rate of interest upto 31st March, 2014 and no interest has been provided for the year ending 31st March, 2015, in the absence of statements of account.

Actual liability of interest may vary from the amount shown in the balance sheet. To that extent, the company may be liable for higher amount of interest liability.

(B) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for. - -

b) The Company is under obligation to export goods within a period of eight years form the date of issue of EPCG licences issued in terms of para 5.2 of Foreign Trader Policy 2009-2014. As on the date of Balance Sheet, the Company is under obligation to export goods wroth USD 9.70 lacs (previous year USD 9.70 lacs) within the stipulated time as specified in the respective licenses. Out of the said amount, the Company has fulfilled the export obligatin of USD 1.12 lacs (previous year 1.12 lacs) in respect of which application for export obligation discharge certificates (EODC) has been filed with the Director General Foreign Trade (DGFT) within the stipulated time.

5) Letters of confirmation of balances appearing under the heads Trade Receivables, Advances Recoverable and Other Current Assets, Recalled Debts, Trade and Other Creditors, Customers at credit, have not been received till the date of balance sheet.

6) Taxes paid in advance under the head "SHORT TERM LOAN AND ADVANCES" consists of:- I) Rs. 2.01 lacs on account of interest received (previous year Rs. 1.15 lacs)

7) Odissa Industrial Infrastructure Development Corporation vide their letter dated 20.11.2013 has cancelled the ownership of Plot No. 4, Somnathpur, Balasore, Odissa. The Management has already initiated efforts for revocation of the cancellation order.

8) Depreciation

As per Note 7 to Part C of Schedule II, from the date this Schedule comes into effect, the carrying amount of the asset as on that date (i.e. 1st April, 2014)

9. (a) shall be depreciated over the remaining useful life of the asset per this Schedule;

(b) after retaining the residual value, may be recognized in the opening balance of retained earnings where the remaining useful life of an asset is nil.

However, the Company has not determined the remaining useful life of assets existing as at 31st March, 2014 as required under this Schedule and instead, has charged depreciation on the opening carrying amounts of assets at the rates calculated on the basis of useful life of assets as specified in Schedule II.

Consequently, the effect of changes in carrying amounts of assets on retained earnings is not reflected in the accounts.

10) No enterprises have been identified as a "Supplier" under the Micro Small and Medium Enterprises Development Act, 2006. The aforesaid identification has been done on the basis of information, to the extent provided by the vendors to the Company.This has been relied upon by the Auditors.

11) TRANSACTIONS WITH RELATED PARTIES

A) RELATIONSHIPS I) Shareholders

a) Oriental Tiles Limited

b) Oriental Buildmat Exports Private Limited

ii) Subsidiary Companies None

iii) Other Parties

a) Oriental Air & Ship Services

b) Deepali Granites Pvt. Ltd.

c) Oriental Overseas

d) Sunil Kumar CHA

iv) Directors and their Relatives

Mr. Rajesh Kumar Punia, Mrs. Savita Punia, Mr. Sunil Kumar, Mr. Vivek Seth, Mr. Rakesh K Takyar, Mr. Rakesh Punia, Mr. Dinesh Punia

13) Segment Information

The Company operates in single segment "flooring products segment" .

14) Additional Information as required under Schedule III of the Companies Act, 2013

15) Figures of previous year have been regrouped and reclassified wherever necessary to make them comparable.

16) During the year, the company has restarted mining operations in one of the mines in Orissa, inspite of social unrest and sporadic violence. Moreover, the management is initiating efforts to start operations in other mines also.

17) Defined Benefit Plan

The present value of obligation is determined based on acturial valuation using the Projected Unit Credit Method, which recognises each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

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Mar 31, 2014

CORPORATE INFORMATION

Oriental Trimex Limited was incorporated as a Private Limited Company on 22nd April 1996 under the provisions of companies Act,1956. The Company was converted into Public Company on February 06, 2001.

The Company is engaged in the business of trading and processing of marble and mining of granite. The Company''s marble processing units are located at Greater Noida in national capital region, at Singur near Kolkata and Gumidipoondi near Chennai. All the processing facilities of the Company are fully integrated processing facilities equipped with state-of-the-art machineries namely Gangsaws, automatic Resin Lines with robotic feeds, imported from SEI, Italy, one of the pioneers and leaders in manufacturing machineries for the marble industry, imported automatic Line Polishers and imported Grinding Machines. Apart from three marble processing units, the Company has a small granite processing unit in the state of Orissa. The Company has three granite quarries in the state of Orissa at Rairangpur, Behrampur and Malkangiri which are under development. The Company has its own marketing outlets at New Delhi, Chennai, Kolkata, Greater Noida & Khushkhera apart from franchisees spread across India. Orienal Trimex Limited is one of the highly spread and expanded marble processing Company in India. The Company had gone public in 2007 and is listed with National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

1. Terms/rights attached to equity shares

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.

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.

2. Note on Restructuring

During the year, one of the bankers has restructured the working capital facility as follows:-

a) Working Capital Term Loan of Rs. 15 Crores, repayable during March, 2014 -290.00 lacs, repayable during March, 2016 - 490 lacs by sale of non-core asset. and remaining WCTL to be repaid in 26 quarterly structured instalments commencing from quarter ending Dec., 2014 and ending on Mar., 2021.

b) Funded Interest Term Loan of Rs. 490.00 lacs to fund interest on working capital and working capital term loan for a period of 18 months i.e. from proposed Cut Off Date (01.06.2013) to till November, 2014 as Funded Interest Term Loan.

3. a) Term Loans secured by exclusive charge on the assets financed by Term Loans. Also secured by pari passu charge on both present and future immovable and movable fixed assets of the company. And further secured by personal guarantee of promoter directors of the company.

b) Working Capital Term Loans secured by pari passu charge over the current assets of the Company. Also collaterally secured by pari passu charge over fixed assets of the Company, which are held on pari-passu basis under multiple banking arrangements.

4. * Working Capital Loans secured by hypothecation of all kinds of stocks of raw materials, stock-in-process and finished goods, assignment of book debts, title of goods covered under letter of credit against FLC and additionally secured by personal guarantee of promoter directors of the company.

** Buyer''s Credit secured by letter of undertaking by the bankers.

*** Demand Loan from LIC secured against keyman insurance policy.

5. Recalled Long Term Debt

One of the bankers have recalled the term loan amounting to Rs. 230.95 lacs on 01.05.2013

One of the bankers have recalled the term loan amounting to Rs. 233.31 lacs on 01.08.2013

Recalled Long Term Debt includes interest payable after the date of recall of Rs. interest has been calculated on average balance at the then prevailing rate, in the absence of bank statements. 7,103,895

6. Recalled Short-Term Debt

During the year, two banks have recalled the working capital limits (including devolved letters of credit) amounting to Rs. 2,846.89 lacs.

Recalled Short Term Debt includes interest payable after the date of recall of Rs. The interest has been calculated on average balance at the then prevailing rate, in the absence of bank statements. 51,035,569

7. Raw Material in Transit includes many shipments of marble block and slab received from time to time lying with Customs Authorities. Custom duty and other clearance charges including demurrage have not been paid till date. The management has certified that none of the above shipments have been auctioned during the year and the title of the goods is with the company at the balance sheet date.

8. Since stock records for different varieties of finished goods are not separately maintained, It is not possible to identify the items where net realisable value is lower than the produciton/landed cost.

9. Contingent Liabilities and Commitments

(A) Contingent Liabilities

a) Claims against the company not acknowledged as debts

Sales Tax 91.46 40.41

Income Tax - -

Custom Duty 9.36 9.36

Excise Duty - -

b) Bank Guarantees 97.44 108.78

c) Guarantee issued to Customs Authorities 6.42 6.42 d) Letters of credit - 88.85

e) Custom duty payable against exprot obligation 48.69 48.69

Note:

In case of recalled working capital limits and term loans, interest after the date of recall has been calculated on estimated basis at then prevailing rate of interest, in the absence of bank statements. Actual liability of interest may vary from the amount shown in the balance sheet. To that extent, the company may be liable for higher amount of interest liability.

(B) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for. - -

b) The Company is under obligation to export goods within a period of eight years form the date of issue of EPCG licences issued in terms of para 5.2 of Foreign Trader Policy 2009-2014. As on the date of Balance Sheet, the Company is under obligation to export goods wroth Rs. 496.15 lacs (previous year Rs. 496.15 lacs) within the stipulated time as specified in the respective licenses. Out of the said amount, the Company has fulfilled the export obligatin of Rs. 57.08 lacs (previous year 57.08 lacs) in respect of which application for export obligation discharge certificates (EODC) has been filed with the Director General Foreign Trade (DGFT) within the stipulated time.

10. Letters of confirmation of balances appearing under the heads Sundry Debtors, Other Current Assets, Sundry Creditors, Customers at credit, have not been received till the date of balance sheet, from most of the parties.

11. Taxes paid in advance under the head "SHORT TERM LOAN AND ADVANCES" consists of:-

i) Rs.1.15 lacs on account of interest received (previous year Rs. 1.76 lacs)

12. The management has decided to write off stocks amounting to Rs. 66,60,810/- being damaged and unsaleable.

13. Odissa Industrial Infrastructure Development Corporation vide their letter dated 20.11.2013 has cancelled the ownership of Plot No. 4, Somnathpur, Balasore, Odissa. The Management has already initiated efforts for revocation of the cancellation order.

14. No enterprises have been identified as a "Supplier" under the Micro, Small and Medium Enterprises Development Act, 2006. The aforesaid identification has been done on the basis of information, to the extent provided by the vendors to the Company. This has been relied upon by the Auditors.

15. Figures of previous year have been regrouped and reclassified wherever necessary to make them comparable.

16. During the year, the company has restarted mining operations in one of the mines in Orissa, inspite of social unrest and sporadic violence. Moreover, the management is intiating efforts to start operations in other mines also.

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Mar 31, 2013

CORPORATE INFORMATION

Oriental Trimex Limited was incorporated as a Private Limited Company on 22nd April 1996 under the provisions of companies Act, 1956. The Company was converted into Public Company on February 06,2001. The Company is engaged in the business of trading and processing of marble and mining of granite. The Companies marble processing units are located at Greater Noida in national capital region, at Singur near Kolkata and Gumidipoondi near Chennai. All the processing facilities of the Company are fully integrated processing facilities equipped with state-of-the-art machineries namely Gangsaws, automatic Resin Lines with robotic feeds, imported from SEI, Italy, one of the pioneers and leaders in manufacturing machineries for the marble industry, imported automatic Line Polishers and imported Grinding Machines. Apart from three marble processing units, the Company has a small granite processing unit in the state of Orissa. The Company has three granite quarries in the state of Orissa at Rairangpur, Behrampur and Malkangiri which are under development. The Company has its own marketing outlets at New Delhi, Chennai, Kolkata, Greater Noida & Khushkhera apart from ten franchisees spread across India. Orienal Trimex Limited is one of the highly spread and expanded marble processing Company in India. The Company had gone public in 2007 and is listed with National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

1. Contingent Liabilities and Commitments

AS AT 31.03.13 AS AT 31.03.12

(A) Contingent Liabilities Rs. in lacs Rs. in lacs

a) Claims against the company not acknowledged as debts

Sales Tax 40.41 40.41

Income Tax - -

Custom Duty 9.36 9.36

Excise Duty - -

b) Bank Guarantees 108.78 228.78

c) Guarantee issued to Customs Authorities 6.42 6.42

d) Letters of credit 88.85 524.11

e) Custom duty payable against exprot obligation 48.69 48.69

(B) Commitments

a) Estimated amount of contracts remaining to be executed on capital account and not provided for.

b) The Company is under obligation to export goods within a period of eight years from the date of issue of EPCG licenses issued in terms of para 5.2 of Foreign Trader Policy 2009-2014. As on the date of Balance Sheet, the Company is under obligation to export goods wroth Rs. 496.15 lacs (previous year Rs. 496.15 lacs) within the stipulated time as specified in the respective licenses. Out of the said amount, the Company has fulfilled the export obligation of Rs. 57.08 lacs (previous year 57.08 lacs) in respect of which application for export obligation discharge certificates (EODC) has been filed with the Director General Foreign Trade (DGFT) within the stipulated time.

2) Letters of confirmation of balances appearing under the heads Sundry Debtors, Other Current Assets, Sundry Creditors, Customers at credit, have been sent to most of the parties.

3) Trade Receivables

The amount under Trade Receivable exceeding six months, includes certain parties from which there is no recovery during the year under audit. In the absence of any confirmation, It appears that such amounts are doubtful of recovery. However, the management has certified that such amounts are fully recoverable.

4) Taxes paid in advance under the head "SHORT TERM LOAN AND ADVANCES" consists of:- i) Rs.1.76 lacs on account of interest received (previous year Rs. 2.20 lacs)

ii) Rs. 0.00 lacs on account of job work receipts (previous year Rs.0.06 lacs) iii)Rs. 0.00 lacs on account of other income (previous year Rs.0.26 lacs)

5) TRANSACTIONS WITH RELATED PARTIES

A) RELATIONSHIPS

i) Shareholders (inc. controlled enterprises)

a) Oriental Tiles Limited

b) Oriental Buildmat Exports Private Limited

c) Colombo Stone Industries P Ltd, Sri Lanka (Subsidiary of Oriental Buildmat Exports Private Limited)

ii) Subsidiary Companies-NONE

iii) Other Parties

a) Oriental Air & Ship Services

b) Deepali Granites Pvt. Ltd.

c) Oriental Impex d)Sunil Kumar CHA

iv) Directors and their Relatives

Mr. Rajesh Kumar Punia, Mrs. Savita Punia, Mr. Sunil Kumar, Mr. Vivek Seth, Mr. Rakesh KTakyar,

Mr. Arvind Basu

Mr. Rakesh Punia, Mr. Dinesh Punia

6) Figures of previous year have been regrouped and reclassified wherever necessary to make them comparable.

7) Due to social unrest and sporadic violence, the mines development process in Orissa remained disrupted till December 2012. However, the company has already initiated effort to restart development process in Orissa.

8) As per accounting standard 15 "Employee Benefits" the disclosures of employee benefits as defined in the accounting standard are given below:

Economic Assumptions

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & the salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.

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Mar 31, 2012

A disclosure is made for a contingent liability when there is a :

a) possible obligation, the existence of which will be confirmed by the occurrence/non-occurrence of one or more uncertain events, not fully within the control of the Company;

b) present obligation, where it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation ;

c) present, where a reliable estimate cannot be made.

CORPORATE INFORMATION

Oriental Trimex Limited was incorporated as a Private Limited Company on 22nd April 1996 under the provisions of companies Act,1956. The Company was converted into Public Company on February 06, 2001. The Company is engaged in the business of trading and processing of marble and mining of granite. The Companies marble processing units are located at Greater Noida in national capital region, at Singur near Kolkata and Gumidipoondi near Chennai. All the processing facilities of the Company are fully integrated processing facilities equipped with state-of-the-art machineries namely Gangsaws, automatic Resin Lines with robotic feeds, imported from SEI, Italy, one of the pioneers and leaders in manufacturing machineries for the marble industry, imported automatic Line Polishers and imported Grinding Machines. Apart from three marble processing units, the Company has a small granite processing unit in the state of Orissa. The Company has three granite quarries in the state of Orissa at Rairangpur, Behrampur and Malkangiri which are under development. The Company has its own marketing outlets at New Delhi, Chennai, Kolkata, Greater Noida & Khushkhera apart from ten franchisees spread across India. Oriental Trimex Limited is one of the highly spread and expanded marble processing Company in India. The Company had gone public in 2007 and is listed with National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE).

I. Contingent Liabilities and AS AT 31.03.12 AS AT 31.03.11 Commitments (A) Contingent Liabilities Rs. in lacs Rs. in lacs

a) Claims against the company not acknowledged as debts

- Sales Tax 40.41 12.85

- Income Tax 0 0

- Custom Duty 9.36 9.36

- Excise Duty 0 0

b) Bank Guarantees 228.78 658.75

c) Guarantee issued to Customs Authorities 6.42 6.42

d) Letters of credit 524.11 617.36

e) Custom duty payable against export obligation 48.69 48.69

(B) Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for.

The Company is under obligation to export goods within a period of eight years form the date of issue of EPCG licences issued in terms of para 5.2 of Foreign Trader Policy 2009-2014. As on the date of Balance Sheet, the Company is under obligation to export goods wroth Rs. 496.15 lacs (previous year Rs. 496.15 lacs) within the stipulated time as specified in the respective licenses. Out of the said amount, the Company has fulfilled the export obligation of Rs. 57.08 lacs (previous year 57.08 lacs) in respect of which application for export obligation discharge certificates (EODC) has been filed with the Director General Foreign Trade (DGFT) within the stipulated time.

II. OTHER NOTES ON ACCOUNTS

1) Letters of confirmation of balances appearing under the heads Sundry Debtors, Other Current Assets, Sundry Creditors, Customers at credit, have been sent to most of the parties.

2) Taxes paid in advance under the head "SHORT TERM LOAN AND ADVANCES" consists of:- i) Rs. 2.20 lacs on account of interest received (previous year Rs. 8.17 lacs) ii) Rs. 0.06 lacs on account of job work receipts (previous year Rs. 0.20 lacs) iii)Rs. 0.26 lacs on account of other income (previous year Rs. 0.00 lacs)

3) No enterprises have been identified as a "Supplier" under the Micro, Small and Medium Enterprises Development Act, 2006. The aforesaid identification has been done on the basis of information, to the extent provided by the vendors to the Company. This has been relied upon by the Auditors.

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Mar 31, 2010

1) Letter of confirmations of balances appearing under the heads Sundry Debtors, Loans and Advances, Sundry Creditors, Customers at credit, have been received from most of the parties.

2) Taxes paid in advance under the head " OTHER CURRENT ASSETS" consists of:- i) Rs. 6.29 lacs on account of interest received (previous year Rs. 21.33 lacs)

ii) Rs. 0.32 lacs on account of jobwork receipts (previous year Rs. 0.00 lacs)

iii) Rs. 0.00 lacs on account of commission income (previous year Rs. 0.63 lacs)

iv) Rs. 0.01 lacs on account of other income (previous year Rs. 0.06 lacs)

3) No enterprises have been identified as a "Supplier" under the Micro, Small and Medium Enterprises Development Act, 2006. The aforesaid identification has been done on the basis of information, to the extent provided by the vendors to the Company. This has been relied upon by the Auditors.

4) The company has incurred a loss of Rs. 48.39 Lacs on account of not getting the goods released from the customs authorities in time.

5) Contingent Liabilities

a) Letters of credit 660.42 384.85

b) Bank Guarantees 293.74 160.74

c) Guarantee issued to Customs Authorities 6.42 8.89

d) Claims against the company not acknowledged as debts (net of deposit) Sales Tax 68.28 58.94

Income Tax --- 1.62

Custom Duty 9.36 9.36

Excise Duty --- 664.74

e) Estimated amount of contracts remaining to be executed on capital account and not provided for. 185.01 440.70

6) Segment Information

The Company operates in single segment "flooring products segment".

7) Figures of previous year have been regrouped and reclassified wherever necessary to make them comparable.

8) Due to social unrest and sporadic violence, the mines development process in Orissa disrupted during the year.

Defined Benefit Plan

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of services as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation.

Economic Assumptions

The principal assumptions are the discount rate & salary growth rate. The discount rate is generally based upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities & the salary growth rate takes account of inflation, seniority, promotion and other relevant factors on long term basis.