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Notes to Accounts of PPAP Automotive Ltd.

Mar 31, 2015

1.1 Equity shares carry voting rights at the general meeting of the Company and are entitled to dividend.

1.2 The details of shareholders holding more than 5% equity shares in the Company

1.3 No shares out of the issued, subscribed and paid up share capital were allotted as bonus shares in the last five years by capitalization of reserves.

2 Long-Term Borrowings

Nature of security and terms of repayment for long term secured borrowings:

Long term borrowings represent term loans and vehicle loans from ICICI bank limited and HDFC bank limited. Term loans are secured by 1st charge on all movable assets (present and future) of the Company. Term loans are further secured by way of equitable mortgage on factory land and building of the Company situated at Kasna, Greater Noida. The charges are ranked pari-passu with the charges shared with other multiple banker.

Vehicle loans are secured against respective assets financed from ICICI bank limited and HDFC bank limited. Vehicle loans are repaid in monthly installments.

2.1 Liability for employee benefits has been determined by an actuary, appointed for the purpose, in conformity with the principles set out in the Accounting Standard 15 (Revised) the details of which are as hereunder: Actuarial Method

a) Projected unit credit (PUC) actuarial method has been used to assess the plan's liabilities of exit employees for retirement, death-in-service and withdrawals (Resignations / Terminations).

b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active member of the plan. The projected accrued benefit is based on the plan accrual formula and upon service as of the beginning or end of period, but using member's final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.

2.2 Actuarial assumptions 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. Valuation assumptions are as follows which have been agreed by the company:

3 Related Party Disclosures

Related Party Transactions, as required by Accounting Standard - 18, "Related Party Disclosures" Related Parties in the group where common control exists :

Kalindi Farms Private Limited

Ajay Poly Private Limited (up to financial year 2013-14)

Key Management Personnel of the Company:

Sh. Ajay Kumar Jain - Chairman & Managing Director Sh. Abhishek Jain - Whole Time Director Joint Ventures

PPAP Tokai India Rubber Private Limited

Associate Companies

PPAP Automotive Chennai Private Limited PPAP Automotive Technology Private Limited Relatives of the Key Management Personnel

Smt. Vinay Kumari Jain

4 Segment Reporting

Manufacturing of automotive components is the company's only business segment and domestic operations is the only significant geographical segment and hence disclosure of segment wise information is not applicable under Accounting Standard 17- "Segment Reporting".

Amount in Rs.

5 Contingent Liabilities & Commitments As at As at 31.03.2015 31.03.2014

Contingent Liabilities not provided for in respect of :

Letters of guarantees - 37,480,800

Letters of credit 37,263,760 58,759,404

Income tax appeal - -

For assessment year 2003-04 55,655 55,655

For assessment year 2004-05 - -

For assessment year 2007-08 - 927,572

For assessment year 2009-10 2,690,995 1,975,945

For assessment year 2010-11 2,939,730 2,680,825

For assessment year 2011-12 243,430 3,463,470

For assessment year 2012-13 300,190 -

Service tax - -

Sales tax / VAT/ Entry tax 44,541 351,890

Civil suit 8,455,357 8,455,357

Central excise (duty paid under protest is Rs. 1,489,081/-) 7,283,858 7,283,858

59,277,516 121,434,776

Notes :-

(i) A demand of Rs. 55,655/- has been raised for the assessment year 2003-04. However an appeal is pending before the Hon'ble CIT Appeal.

(ii) A demand of Rs. 927,572/- has been raised for the assessment year 2007-08 and an appeal was pending before the Hon'ble CIT Appeal. Hon'ble CIT Appeal has duly allowed the appeal.

(iii) A demand of Rs. 2,690,995/- has been raised for the assessment year 2009-10. However case is decided in favour of the Company and effect of appeal to cancel the demand of Rs. 1,975,945 is pending before the DCIT, Circle 19(2). An appeal against demand of Rs. 715,050 is pending before Hon'ble CIT Appeal.

(iv) A demand of Rs. 2,939,730/- has been raised for the assessment year 2010-11. An application for rectification of mistake u/s 154 of the Income Tax Act has been filed on 02.04.2015 and once the rectification order is passed, demand will reduce to Nil.

(v) A demand of Rs. 3,463,470/- has been raised for the assessment year 2011-12. However an appeal is pending before the Hon'ble CIT Appeal. The demand determined by DCIT Cir -19(2) after adjustment of refund is Rs. 243,430/-.

(vi) A demand of Rs. 300,190/- has been raised for the assessment year 2012-13. However an appeal is pending before the Hon'ble CIT Appeal.

(vii) Central sales tax assessment for the assessment year 2004-05 was completed under Section 9 of Central Sales Tax Act R/W 23(3) of Delhi Sales Tax Act, 1975 wherein demand of Rs. 1,66,697/- was raised which was reduced to Rs. 1,13,957/- vide review order. The Company had deposited a sum of Rs. 68,516/- being undisputed demand and company had filed an appeal against the balance demand of Rs. 45,441/- before the Joint Commissioner of Sales Tax (Appeals) and stay granted vide order no F/PA/Jt. Comm. (KDU) /02/ Stay/ 410-411 dated 18.08.06. Out of total demand of Rs.351,890 the Company had deposited Rs. 3,06,449 being undisputed demand.

(viii) A demand of Rs. 8,455,357/- had been raised by BSES Rajdhani Ltd. for making payments of arrears for the misuse of electricity. The Company had filed a suit against BSES with District Court and won the case in its favour. However, BSES has filed an appeal with Hon'ble High Court but the notice for listing the matter not received from the court.

(ix) Demand of excise duty of Rs. 105,896/- along with penalty of Rs. 1,05,896/- was imposed on the Company by Additional Commissioner, Central Excise, Delhi, for Cenvat credit taken on payment of duty through DEPB license, under the Central Excise Act, 1944. The Company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of central excise has rejected the appeal. Thereafter, the Company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(x) Demand of excise duty of Rs. 3,536,033/- along with penalty of Rs. 3,536,033/- was imposed on the Company by Addl. Commissioner, Central Excise, Delhi, for Cenvat credit taken on payment of duty through DEPB license, under the Central Excise Act, 1944. The Company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the Company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending. (The case relates to the period August 2003 - August 2004).

6 Depreciation and amortization on tangible and intangible fixed assets

The Company was hitherto charging depreciation on straight line method at the rates provided in schedule XIV of the Companies Act, 1956. in the current year, the Company has reassessed the useful life of assets, and adopted the useful life as provided in schedule II of the Companies Act, 2013 except in the following cases:

Consequent to change of useful life as above, an amount of Rs. 7,273,875/- representing WDV of those assets whose useful life had already expired as on 1st April, 2014 has been adjusted against the General Reserve.

The depreciation charged for the year would have been higher by Rs. 9,379,522/- and profit for the year would have been lower by Rs. 9,379,522/-, if there had been no change in the useful life of the assets due to the Companies Act, 2013.

7 The previous year's figures have been accordingly regrouped/reclassified to conform to the current year's classification.


Mar 31, 2014

1 Liability for employee benefits has been determined by an actuary,appointed for the pupose,in confirmity with the principles set out in the Accounting Standard 15 (Revised) the details of which are as hereunder :

Actuarial Method

a) Projected unit credit (PUC) actuarial method has been used to assess the plan''s liabilities of exit employees for retirement, death-in- service and withdrawals (Resignations / Terminations).

b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active member of the plan. The projected accrued benefit is based on the plan accrual formula and upon service as of the beginning or end of period, but using member''s final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.

2 Actuarial Assumptions

i). RELATED PARTY DISCLOSURES

A Related Party T ransactions, as required by AS - 18, " Related Party Disclosures " are as given below :

i Related Parties in the group where common control exists :

a) Ajay Poly Private Ltd.

b) A I C (Plastic) Private Ltd.

c) Ajay Industrial Corporation Ltd.

d) Kalindi Farms Pvt. Ltd.

e) Ajay Industrial Polymers Pvt. Ltd.

f) Seiki Auto India Pvt. Ltd.

ii Key Management Personnel of the Company :

a) Sh. Ajay Kumar Jain : Chairman & Managing Director

b) Sh. Abhishek Jain : Whole Time Director

iii Joint Venture

a) PPAP Tokai India Rubber Pvt. Ltd.

iv Relatives of the Key Management Personnel

a) M/s. D. C. Jain (H. U. F)

b) Sh. S.C. Jain

c) Sh. Rajiv Jain

3. CONTINGENT LIABILITIES & COMMITMENTS

PARTICULARS As At As At 31.03.2014 31.03.2013

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

i) Letters of Guarantees 37,480,800 20,000

ii) Letters of Credit 58,759,404 12,606,735

iii) Income Tax Appeal :

For Asst.Year.2003-04 55,655 55,655

For Asst. Year 2007-08 927,572 927,572

For Asst. Year 2009-10 1,975,945 1,975,945

For Asst. Year 2010-11 2,680,825 2,680,825

For Asst. Year 2011-12 3,463,470 -

iv) Sales Tax / VAT/ Entry Tax 351,890 476,492

v) Service Tax 63,630 63,630

vi) Civil Suit 8,455,357 8,455,357

vii) Central Excise (Duty paid under protest is Rs.1,489,081/-) 7,283,858 15,705,198

121,498,406 42,967,409

Notes :-

(i) The Deputy commissioner of income tax has imposed a penalty of Rs. 55,655/- u/s 271 (1) (c) of the The Income Tax Act, 1961. for A.Y. 2003-04. The company had filed an appeal against the aforesaid order with CIT (Appeals) and the same is pending before CIT (Appeals).

(ii) Income Tax Assessment for the A.Y. 2007-2008 was completed under section 143(3) of the Income Tax Act, 1961, wherein demand of Rs. 9,27,572/- was raised. The company had filed an appeal against the aforesaid order with CIT (Appeals)

(iii) A demand of Rs. 19,75,945/- for the Assessment Year 2009-10 and Rs. 26,80,825/- for the Assessment Year 2010-11 was raised u/s 143(3) of the Income Tax Act,1961. The Company had filed an appeal against the demand with CIT (Appeals) and the same is pending before CIT (Appeals).

(iv) A case for demand of service tax of Rs. 63,630/- pertaining to 17.02.2002 to 31.03.2004 is pending before Deputy Commissioner.

(v) Central Sales Tax Assessment for the Assessment Year 2004-05 was completed under section 9 of Central Sales Tax Act R/W 23(3) of Delhi Sales Tax Act,1975 wherein demand of Rs.1,66,697/- was raised which was reduced to Rs.1,13,957/- vide review order. The company had deposited a sum of Rs. 68,516/- being undisputed demand and company had filed an appeal against the balance demand of Rs. 45,441/- before the Joint Commissioner of Sales Tax (Appeals) and stay granted vide order no F/PA/ Jt. Comm. (KDU) /02/Stay/ 410-411 dt. 18.08.06.

(vi) A demand of Rs. 84,55,357/- had been raised by BSES Rajdhani Ltd. for making payments of arrears for the misuse of electricity. The company had filed a suit against BSES with District Court and won the case in its favour. However, BSES has filed an appeal with High Court but the notice for listing not received from the court.

(vii) Demand of excise duty of Rs.1,05,836/- alongwith penalty of Rs.1,05,836/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence, under the Central Excise Act, 1944. The company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(viii) Demand of excise duty of Rs. 35,36,033/- alongwith penalty of Rs. 35,36,033/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence,under the Central Excise Act, 1944. The company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(ix) Sales Tax Assessments of the Company has been completed till F.Y.2009-2010 in the case of UP Units wherein Net Demand of Rs.4,31,051/- was imposed & such amount has not been provided in the Books of Accounts and Sales Tax Assessment for Delhi Units completed upto F.Y. 2010-2011 and demand raised were paid.

(x) Income tax assessments of the Company were completed till the assessment year 2010-11. However, appeals for the Assessment Year 2007-08 and 2009-10 are pending before the Hon''ble CIT Appeal. No provision has been made in the accounts for additional income tax liabilities for Assessment Year 2010-11 to 2011-12 as amount is unascertained.

4 The previous year''s figures have been accordingly regrouped/reclassfied to conform to the current year''s classification. The figures of previous year were audited by a firm of Chartered Accountants other than M/s O.P. Bagla & Co.


Mar 31, 2013

BASIS OF PREPARATION:

These financial statements have been prepared in accordance with the generally accepted accounting principles in India under the historical cost convention on accrual basis. These financial statements have been prepared to comply in all material aspects with the accounting standards notified under Section 211(3C) [(Companies (Accounting Standards) Rule ,2006 ,as amended ] and the other relevant provisions of the Companies Act,1956.

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 Revised Schedule VI to the Companies Act, 1956. Based on the nature of products and the time between the acquisition of assets for processing and their realisation in cash and cash equivalents, the Company has ascertained its operating cycle as 12 months for the purpose of current- non current classification of assets and liabilities.

1.1 Liability for employee benefits has been determined by an actuary,appointed for the pupose,in confirmity with the principles set out in the Accounting Standard 15 (Revised) the details of which are as hereunder :

Actuarial Method

a) Projected unit credit (PUC) actuarial method has been used to assess the plan''s liabilities of exit employees for retirement, death-in-service and withdrawals (Resignations/ Terminations).

b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active member of the plan. The projected accrued benefit is based on the plan accrual formula and upon service as of the beginning or end of period, but using member''s final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value of the projected accrued benefits as on the date of valuation.

1.2 ACTUARIAL ASSUMPTIONS

1.3(1) 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. Valuation assumptions are as follows which have been agreed by the company:

2 RELATED PARTY DISCLOSURES

A Related Party Transactions, as required by AS - 18, " Related Party Disclosures " are as given below :

i Related Parties in the group where common control exists :

a) Ajay Poly Private Ltd.

b) A I C (Plastic) Private Ltd

c) Ajay Industrial Corporation Ltd.

d) Kalindi Farms Pvt. Ltd.

e) Ajay Industrial Polymers Pvt. Ltd

f) Seiki Auto India Pvt. Ltd.

ii Key Management Personnel of the Company :

a) Sh. Devendra Chandra Jain : Chairman

b) Sh. Sharat Chand Jain : Ex. Vice - Chairman

c) Sh. Ajay Kumar Jain : Managing Director

d) Sh. Rajeev Jain : Whole Time Director

e) Sh. Anuj Jain : Director

f) Sh. Abhishek Jain : Whole Time Director

g) Sh. B B Tandan : Independent Director

h) Sh. K K Mathur : Independent Director

i) Sh. S K Tuteja : Independent Director

j) Sh. Vinod Vaish : Independent Director

k) Sh. Ashok Kumar Agrawal : Independent Director

l) Sh. M.S. Kapur : Independent Director

iii Relatives of the Key Management Personnel

a) M/s. D. C. Jain (H. U. F)

b) M/s. A. K. Jain (H. U. F)

c) Smt. Kanupriya Jain

d) Sh. Nitin Jain

e) Smt. Asha Jain

f) Sh. Akhil Jain

g) Smt. Bina Jain

h) Smt. Vinay Kumari Jain

i) Smt. Anuradha Jain

j) Smt. Lata Jain

3 SEGMENT REPORTING

i) PRIMARY BUSINESS SEGMENTS

The Company reviewed the disclosure of Business segmen twise and is of the view that the Company is mainly in the business of manufacture of PVC Profiles for Automobiles Industries and other business of the Company is to manufacture the PVC Profiles for Refrigerator Industries, Electrical Industries, and Building Construction Industries. Since, no other single segment constitute revenue/ results/ assets more than 10% of total (in accordance with AS - 17), Accordingly segment information is not required to be disclosed.

II) GEOGRAPHICAL SEGMENTS :

The Company caters mainly to the needs of Indian market and the export turnover being 1.19% ( Previous year 2.80%) of the total turnover of the Company, there are no reportable geographical segments.

iii) ASSETS BY GEOGRAPHICAL AREA :

All segment assets of the Company are located in Northern Part of India .i.e., in Delhi & Noida.

4 CONTINGENT LIABILITIES & COMMITMENTS

PARTICULARS AS AT AS AT 31.03.2013 31.03.2012

CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF: i) Letters of Guarantees 20,000 20,000

ii) Letters of Credit 12,606,735 77,762,423

iii) Income Tax Appeal :

For Asst.Year.2003-04 55,655 55,655

For Asst. Year 2007-08 927,572 927,572

For Asst. Year 2009-10 1,975,945 1,975,945

For Asst. Year 2010-11 2,680,825 -

iv) Sales Tax / VAT/ Entry Tax 476,492 45,441

v) Service Tax 63,630 63,630

vi) Civil Suit 8,455,357 8,455,357

vii) Central Excise (Duty paid under protest is Rs.1489081/-) 15,705,198 15,705,198

42,967,409 105,011,221

Notes :

(i) The Deputy commissioner of income tax has imposed a penalty of Rs. 55655/- u/s 271 (1) (c ) of the The Income Tax Act, 1961. for A.Y.2003-04. The company had filed an appeal against the aforesaid order with CIT (Appeals) and the same is pending before CIT ( Appeals).

(ii) Income Tax Assessment for the A.Y. 2007-2008 was completed under section 143(3) of the Income Tax Act, 1961, wherein demand of Rs. 927572/- was raised. The company had filed an appeal against the aforesaid order with CIT (Appeals)

(iii) A demand of Rs. 19,75,945/- for the Assessment Year 2009-10 and Rs. 26,80,825/- for the Assessment Year 2010-11 was raised u/s 143(3) of the Income Tax Act,1961. The Company had filed an appeal against the demand with CIT (Appeals) and the same is pending before CIT (Appeals).

(iv) A case for demand of service tax of Rs.63,630/- pertaining to 17.02.2002 to 31.03.2004 is pending before Deputy Commissioner.

(v) Central Sales Tax Assessment for the Assessment Year 2004-05 was completed under section 9 of Central Sales Tax Act R/W 23(3) of Delhi Sales Tax Act,1975 wherein demand of Rs.1,66,697/- was raised which was reduced to Rs.1,13,957/- vide review order. The company had deposited a sum of Rs.68,516/- being undisputed demand and company had filed an appeal against the balance demand of Rs. 45,441/- before the Joint Commissioner of Sales Tax (Appeals) and stay granted vide order no F/PA/Jt. Comm. (KDU) /02/Stay/ 410-411 dt. 18.08.06.

(vi) A demand of Rs. 84,55,357/- had been raised by BSES Rajdhani Ltd. for making payments of arrears for the misuse of electricity. The company had filed a suit against BSES with District Court and won the case in its favour. However, BSES has filed an appeal with High Court but the notice for listing not received from the court.

(vii) Demand of excise duty of Rs.42,10,670/- alongwith penalty of Rs.42,10,670/- was imposed on the company by Addl. Commissioner, Central Commissionerate, Noida, for Cenvat credit taken on payment of duty through DEPB licence, under the Central Excise Act, 1944. The company filed before the Commissioner (Appeals), Central Excise, Noida. The Commissioner (Appeals) rejected the appeal. The company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) which has been decided in favor of the company.

(viii) Demand of excise duty of Rs.1,05,836/- along with penalty of Rs.1,05,836/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvat credit taken on payment of duty through DEPB licence, under the Central Excise Act, 1944. The company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(ix) Demand of excise duty of Rs.35,36,033/- along with penalty of Rs.35,36,033/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence, under the Central Excise Act, 1944. The company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(x) Wealth Tax assessment of the company has been completed up to the Assessment year 2010-11. No provision has been made in the accounts for additional Wealth tax liabilities for the assessment year 2010-11 to 2012-13 as amount is unascertained.

(xi) Sales Tax Assessments of the Company has been completed till F.Y.2009-2010 in the case of UP Unite wherein Net Demand of Rs.4,31,051/- was imposed & such amount has not been provided in the Books of Accounts and Sales Tax Assessment for Delhi Units completed upto F.Y. 2010-2011 and demand raised were paid.

(xii) Income tax assessments of the Company were completed till the assessment year 2009-10. However, appeals for the Assessment Year 2007-08 and 2009-10 are pending before the Hon''ble CIT Appeal. No provision has been made in the accounts for additional income tax liabilities for Assessment Year 2010-11 to 2011-12 as amount is unascertained.

(xiii) In view of the revision to the Schedule VI as per notification issued by the Central Government, the financial statement for the year ended 31st March, 2013 have been prepared as per the requirement of the Revised Schedule VI to the Companies Act, 1956. The previous period''s figures have been accordingly regrouped/classfied to confirm to the current year''s classification.


Mar 31, 2012

1.1 During the year, the company has started making provision of retirement benefits and leave encashment to employees according to actuarial valuation as per AS-15(Revised).The difference between the amounts provided till 31.03.2011 and that as per actuarial valuation has been disclosed as an exceptional item in the Statement of Profit and Loss for the year ended 31st March,2012.As the valuation has been carried out in current year, the previous year numbers are not disclosed.

1.2 As per Accounting Standard 15 'Employee Benefits", the disclosures as defined in the Accounting Standard are given below:

Actuarial Method

a) Projected unit credit (PUC) actuarial method has been used to assess the plan's liabilities of exit employees for retirement, death-in-service and withdrawals (Resignations/Terminations).

b) Under the PUC method a projected accrued benefit is calculated at the beginning of the period and again at the end of the period for each benefit that will accrue for all active member of the plan. The projected accrued benefit is based on the plan accrual formula and upon service as of the beginning or end of period, but using member's final compensation, projected to the age at which the employee is assumed to leave active service. The plan liability is the actuarial present value ofthe projected accrued benefits as on the date of valuation.

1.3 Actuarial Assumptions

1.3 (i) 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 ofthe liabilities & the salary growth rate takes account of Inflation, seniority, promotion and other relevant factors on long term basis. Valuation assumptions are as follows which have been agreed by the company:

2 RELATED PARTY DISCLOSURES

A RELATED PARTY TRANSACTIONS, AS REQUIRED BY AS -18," RELATED PARTY DISCLOSURES "ARE AS GIVEN BELOW:

i Related Parties in the group where common control exists:

A) AJAY POLY PRIVATE LTD.

B) AI C (PLASTIC) PRIVATE LTD

C) AJAY INDUSTRIAL CORPORATION LTD.

D) KALINDI FARMS PVT. LTD.

E) AJAY INDUSTRIAL POLYMERS PVT. LTD

F) SEIKI AUTO INDIA PVT. LTD.

II KEY MANAGEMENT PERSONAL OF THE COMPANY:

A) SH.DEVENDRA CHANDRA JAIN : CHAIRMAN

B) SH. SHARAT CHAND JAIN : EX. VICE - CHAIRMAN

C) SH. AJAY KUMAR JAIN : MANAGING DIRECTOR

D) SH. RAJEEV JAIN : WHOLE TIME DIRECTOR

E) SH. ANUJ JAIN : DIRECTOR

F) SH. ABHISHEK JAIN : WHOLE TIME DIRECTOR

G) SH. B B TANDAN : INDEPENDENT DIRECTOR

H) SH. K K MATHUR : INDEPENDENT DIRECTOR

I) SH. S K TUTEJA : INDEPENDENT DIRECTOR J) SH. VINOD VAISH : INDEPENDENT DIRECTOR K)SH.ASHOK KUMAR AGRAWAL : INDEPENDENT DIRECTOR L) SH. M.S. KAPUR : INDEPENDENT DIRECTOR

iii RELATIVES OF THE KEY MANAGEMENT PERSONAL

A) M/S. D. C. JAIN (H. U. F)

B) M/S. A. K. JAIN (H. U. F)

C) SMT. KANUPRIYAJAIN

D) SH. NITIN JAIN

E) SMT. ASHA JAIN

F) SH.AKHIL JAIN

G) SMT. BINA JAIN

H) SMT. VINAY KUMARI JAIN

I) SMT. ANURADHA JAIN J) SMT. LATA JAIN

4 SEGMENT REPORTING

i) PRIMARY BUSINESS SEGMENTS

The Company reviewed the disclosure of Business segmentwlse and Is of the view that the Company Is mainly In the business of manufacture of PVC Profiles for Automobiles Industries and other business of the Company is to manufacture the PVC ProfilesforRefrigerator Industries, Electrical Industries, and Building Construction Industries. Since, no other single segment constitute revenue/ results/ assets more than 10% of total (in accordance with AS - 17), Accordingly segment information is not required to be disclosed.

ii) GEOGRAPHICAL SEGMENTS:

The Company caters mainly to the needs of Indian market and the export turnover being 1.19% (Previous year 2.80%) of the total turnoverof the Company, there are no reportable geographical segments.

Notes

(I) The Deputy commissioner of income tax has impose dapenalty of Rs.55655/-u/s271 (1)(c)of the The IncomeTaxAct, 1961.for A.Y. 2003-04. The company had filed an appeal against the aforesaid order with CIT (Appeals) and the same is pending before CIT (Appeals).

(II Income taxassessment forthe assessment year 2007-2008was completed under section 143(3) of the Income Tax Act, 1961, wherein demand of Rs. 927572-I- was raised.The company had filed an appeal against the aforesaid orderwith CIT (Appeals).

(iii) AdemandofRs. 19,75,945 for theAssessmentYear2009-10 wasraisedu/st43(3)ofthelncome TaxAct,1961.TheCompanyhadfiledan appeal against the demand with CIT (Appeals) and the same is pending before CIT (Appeals).

(iv) A case for demand of service tax of Rs.63,630/- pertaining to 17.02.2002 to 31.03.2004 is pending before Deputy Commissioner.

(v) Central Sales Tax assessment forthe assessment year 2004-05 was completed under section 9 of Central Sales Tax Act R/W23(3)of Delhi Sales Tax Act, 1975 wherein demand pf Rs. 1,66,697/- was raised which was reduced to Rs. 1,13,957/- vide review order. The company had deposited a sum of Rs.68,516/- being undisputed demand and company had filed an appeal against the balance demand of Rs. 45,441/- before the Joint Commissioner of Sales Tax (Appeals), and stay granted vide order no F/PA/Jt. Comm. (KDU) /02/Stay/ 410-411 dt. 18.08.06.

(vi) A demand of Rs. 84,55,357/- had been raised by BSES Rajdhani Ltd. for making payments of arrears for the misuse of electricity. The company had filed a suit against BSES with District Court and won the case its favour. However, BSES has filed an appeal with High Court but the notice for listing not received from the court.

(vii) Demand of excise duty of Rs.42,10,670/- alongwith penalty of Rs.42,10,670/- was imposed on the company by Addl. Commissioner, Central Commissionerate, Noida, for Cenvet credit taken on payment of duty through DEPB licence, underthe Central Excise Act, 1944. The company filed before the Commissioner (Appeals), Central Excise, Noida. The Commissioner (Appeals) rejected the appeal. The company has filed the appeal with the Central Excise & Service TaxAppellate Tribunal (CESTAT) and the appeal is pending.

(viii) Demand of excise duty of Rs.1,05,836/- alongwith penalty of Rs.1,05,836/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence, underthe Central Excise Act, 1944. The company had filed an appeal against the aforesaid orderwith Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Sen/ice Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(ix) Demand of excise duty of Rs.35,36,033/- alongwith penalty of Rs.35,36,033/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence,underthe Central Excise Act, 1944. The company had filed an appeal against the aforesaid orderwith Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(x) Wealth Tax assessment of thecompany has been completed upto theAssessmentyear2010-11. Noprovision hasbeen made in theaccounts foradditional Wealth tax liabilities forthe assessment year 2010-11 to2012-13 asamountis unascertained.

(xi) Sales tax assessments of the Company has been completed till the Mar. 2008 in the case of UP Units and in case of Delhi units up to F. Y. 2008-09).

5.Initial Public Offer

i) The Company had made a Public issue of 50,00,000 Equity Shares of Rs. 101- each at a premium of Rs. 140/- per share for setting up of new unit at Surajpur Industrial Area, UP and for expansion of existing operations and production capacities during December, 2007. The share issue proceeds aggregating to Rs.75.00 Crores have been fully utilized in accordance with the prospectus dated 28th December, 2007.

ii) Treatment of IPO Expenses

IPO expenses aggregating Rs.63005867/- net of service tax (including payment to auditors Rs.80000/-), has been amortised equally in 5 years.

6 Income tax assessments of the Company were completed till the assessment year 2009-10. However, appeals for the assessment year 2007-08 and 2009-10 are pending before the Hon'ble CIT Appeal. No provision has been made in the accounts for additional income tax liabilities for AssessmentYear 2010-11 to 2011 -12 as amount is unascertained.

7 In view ofthe revision to the Schedule VI as per notification issued by the Central Government, the financial statement for the year ended 31 st March, 2012 have been prepared as per the requirement of the Revised Schedule VI to the Companies Act, 1956. The previous period's figures have been accordingly regrouped/reclassfied to confirm to the current year's classification.


Mar 31, 2011

31st March, 2011 31st March, 2010 AMOUNT ( RS. ) AMOUNT ( RS. )

1 CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF :

i) Letters of Guarantees 20,000 20,000

ii) Letters of Credit 8,10,00,507 -

iii) Income Tax Appeal :

For Asst.Yr.2003-04 55,655 55,655

For Asst.Yr.2004-05 - 3,90,788

For Asst. Year 2006-07 8,48,415 8,48,415

For Asst. Year 2007-08 9,27,572 9,27,572

For Asst. Year 2008-09 11,93,596 -

iv) Trade Tax /Sales Tax/VAT 45,441 9,16,737

v) Service Tax 63,630 63,630

vi) Electricity Demand 84,55,357 84,55,357

vii) Central Excise (Duty paid under protest is Rs.1489081/-) 1,57,05,198 1,57,05,198

10,83,15,371 2,73,83,352

NOTES :-(i) The Deputy commissioner of income tax has imposed a penalty of Rs. 55655/- u/s 271 (1) (c ) of the The Income Tax Act, 1961. for A.Y.2003-04. The company had filed an appeal against the aforesaid order with CIT (Appeals) and the same is pending before CIT ( Appeals).

(ii) A demand of Rs. 8,48,415/- for the Assessment Year 2006-07 was raised u/s 143(3) of the Income Tax Act, 1961. The Company had filed an appeal aginst the demand with CIT (Appeals) and the same is pending before CIT (Appeals).

(iii) Income tax assessment for the assessment year 2007-2008 was completed under section 143(3) of the Income Tax Act, 1961, wherein demand of Rs. 927572-/- was raised.The company had filed an appeal against the aforesaid order with CIT (Appeals).

(iv) A demand of Rs. 11,93,596 for the Assessment Year 2008-09 was raised u/s 143(3) of the Income Tax Act,1961. The Company had filed an appeal against the demand with CIT (Appeals) and the same is pending before CIT (Appeals).

(v) A case for demand of service tax of Rs.63,630/- pertaining to 17.02.2002 to 31.03.2004 is pending before Deputy Commisioner.

(vi) Central Sales Tax assessment for the assessment year 2004-05 was completed under section 9 of Central Sales Tax Act R/W 23(3) of Delhi Sales Tax Act,1975 wherein demand pf Rs.1,66,697/- was raised which was reduced to Rs.1,13,957/- vide review order. The company had deposited a sum of Rs.68,516/- being undisputed demand and company had filed an appeal against the balance demand of Rs. 45,441/- before the Joint Commissioner of Sales Tax (Appeals). and stay granted vide order no F/PA/Jt. Comm. (KDU) /02/Stay/ 410-411 dt. 18.08.06.

(vii) A demand of Rs. 84,55,357/- had been raised by BSES Rajdhani Ltd. for making payments of arrears for the misuse of electricity. The company had filed a suit against aforesaid with High Court. The matter is pending

(viii) Demand of excise duty of Rs.42,10,670/- alongwith penalty of Rs.42,10,670/- was imposed on the company by Addl. Commissioner, Central Commissioner, Noida, for Cenvet credit taken on payment of duty through DEPB licence, under the Central Excise Act, 1944. The company filed before the Commissioner (Appeals), Central Excise, Noida. The Commissioner (Appeals) rejected the appeal. The company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(ix) Demand of excise duty of Rs.1,05,836/- alongwith penalty of Rs.1,05,836/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence, under the Central Excise Act, 1944. The company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(x) Demand of excise duty of Rs.35,36,033/- alongwith penalty of Rs.35,36,033/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence,under the Central Excise Act, 1944. The company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(xi) Company has paid Rs. 4,83,96,003/- to RIICO Ltd. (Rajasthan State Industrial Development and Investment Corporation Ltd) against purchase of Industrial Plot at Bhiwadi, Rajasthan and plot has been registered in the name of the company on 09th May'2011.

2 Initial Public Offer

i) The Company had made a Public issue of 50,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 140/- per share for setting up of new unit at Surajpur Industrial Area, UP and for expansion of existing operations and production capacities during December, 2007. The share issue proceeds aggregating to Rs.75.00 Crores have been fully utilized in accordance with the prospectus dated 28th December, 2007.

ii) Treatment of IPO Expenses

IPO expenses aggregating Rs.63005867- net of service tax (including payment to auditors Rs.80000/-), shall be amortised equally in 5 years.

3 SEGMENT REPORTING

i) PRIMARY BUSINESS SEGMENTS 1

The Company reviewed the disclosure of Business segmentwise and is of the view that the Company is mainly in the business of manufacture of PVC Profiles for Automobiles Industries and other business of the Company is to manufacture the PVC Profiles for Refrigerator Industries, Electrical Industries, and Building Construction Industries. Since, no other single segment constitute revenue/ results/ assets more than 10% of total (in accordance with AS - 17), Accordingly segment information is not required to be disclosed.

ii) GEOGRAPHICAL SEGMENTS :

The Company caters mainly to the needs of Indian market and the export turnover being 1.06% ( Previous year 1.52%) of the total turnover of the Company, there are no reportable geographical segments.

iii) ASSETS BY GEOGRAPHICAL AREA :

All segment assets of the Company are located in Northern Part of India .i.e., in Delhi & Noida.

4 RELATED PARTY DISCLOSURES

A Related Party Transactions, as required by AS - 18, " Related Party Disclosures " are as given below :

i Related Parties in the group where common control exists :

a) Ajay Poly Private Ltd.

b) A I C (Plastic) Private Ltd

c) Ajay Industrial Corporation Ltd.

d) Kalindi Farms Pvt. Ltd.

e) Ajay Industrial Polymers Pvt. Ltd

f) Seiki Auto India Pvt. Ltd.

ii Key Management Personal of the Company :

a) Sh. Devendra Chandra Jain : Chairman

b) Sh. Sharat Chand Jain : Ex. Vice - Chairman

c) Sh. Ajay Kumar Jain : Managing Director

d) Sh. Rajeev Jain : Whole Time Director

e) Sh. Anuj Jain : Director

f) Sh. Abhishek Jain : Whole Time Director

g) Sh. B B Tandan : Independent Director

h) Sh. K K Mathur : Independent Director

i) Sh. S K Tuteja : Independent Director

j) Sh. Vinod Vaish : Independent Director

k) Sh. Ashok Kumar Agrawal : Independent Director

l) Sh. M.S. Kapur : Independent Director

iii Relatives of the Key Management Personal

a) M/S. D. C. Jain (H. U. F)

b) M/S. A. K Jain (H. U. F)

c) SMT KANUPRIYA JAIN

d) Sh. Nitin Jain

e) Smt. Asha Jain

f) Sh. Akhil Jain

g) Smt. Bina Jain

h) Smt. Vinay Kumari Jain

i) Smt. Anuradha Jain

j) Smt. Lata Jain

5 The name of the Micro and Small Enterprises to whom amounts are due for not more than 30 days as at 31st March, 2011 are as under

1 NILANCHAL PACKAGING INDUSTRIES

2 OASIS INDUSTRIES

3 K M G ATOZ SYSTEMS PVT LTD

4 SHRI RAM INDUSTRIES

5 ZYLOG PLASTALLOYS PVT LTD

6 TECHNO FERRITES

The above information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available to the Company.

6 Income tax assessments of the Company were completed till the assessment year 2008-09. However, appeals for the assessment year 2006-07,2007-08 and 2008-09 are pending before the Hon'ble CIT Appeal. No provision has been made in the accounts for additional income tax liabilities for Assessment Year 2009-10 to 2011 - 2012 as amount is unascertained.

7 Income Tax Assessment for the Block Period from 01.04.1995 to 05.02.2002 & regular assessment for the period 06.02.2002 to 31.03.2002 (assesssment year 2002-2003) has been completed. Hon'ble Settlement Commision has raised a demand of RS. 44,54,340 & provision has been made accordingly.

8 Wealth Tax assessment of the company has been completed up to the Assessment year 2008-09. No provision has been made in the accounts for additional Wealth tax liabilities for the assessment year 2009-10 to 2011-12 as amount is unascertained.

9 Assessment of Fringe benefit tax for the Assessment year 2008-09 is completed. No provision has been made in the accounts for the assessment year 2009 - 2010. Amount unascertained.

10 Sales tax assessments of the Company has been completed till the March 2008 in the case of UP Units and in case of Delhi units up to F. Y. 2006-07.

11 The previous year's figures have been re-grouped, re-arranged, re-classified and re-worked, wherever necessary to make them comparable with those of current year.


Mar 31, 2010

31st March, 2010 31st March, 2009 AMOUNT ( RS. ) AMOUNT ( RS.)

1 CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF:

i) Letters of Guarantees 20.000 3,770,000

ii) Letters of Credit 77,147,799 65,617,457

iii) Income Tax Appeal For Asst.Yr.2003-04 55,655 55,655

For Asst.Yr.2004-05 390,788 -

For Asst. Year 2006-07 848,415 848,415

For Asst. Year 2007-08 927572 -

iv) Trade Tax/Sales Tax/VAT 916.737.00 1,410,315

v) Service Tax 63,630 63,630

vi) Civil Suit 8,455,357 8,455,357

vii) Centra! Excise (Duty paid under protest is Rs. 1489081/-) 15.705,198 15,705,198

104,531,151 95,926,027

NOTES :-(i) The Deputy commissioner of income tax has imposed a penalty of Rs. 55655/- u/s 271 (1) (c ) of the The Income Tax Act, 1961. for A.Y.2003-04. The company had filed an appeal against the aforesaid order with CIT (Appeals) and the same is pending before CIT ( Appeals).

(ii) The demand of Rs. 390788/- was raised on the reassessment of set aside order passed by Commissioner of Income Tax and the Company has filed an appeal against the order of the Ld. Commissioner of Income Tax for the rectification.

(iii) A demand of Rs. 8,48,415/- for the Assessment Year 2006-07 was raised u/s 143(3) of the Income Tax Act. 1961. The Company had filed an appeal aginst the demand with CIT (Appeals) and the same is pending before CIT (Appeals).

(iv) Income tax assessment for the assessment year 2007-2008 was completed under section 143(3) of the Income Tax Act, 1961, wherein demand of Rs. 927572-/- was raised.The company had filed an appeal against the aforesaid order with CIT (Appeals).

(v) A case for demand of service tax of Rs.63,630/- pertaining to 17.02.2002 to 31.03.2004 is pending before Deputy Commisione.

(vi) Central Sales Tax assessment for the assessment year 2004-05 was completed under section 9 of Central Sales Tax Act R/W 23(3) of Delhi Sales Tax Act,1975 wherein demand pf Rs.1,66,697/- was raised which was reduced to Rs. 1,13,957/- vide review order. The company had deposited a sum of Rs.68,516/- being undisputed demand and company had filed an appeal against the balance demand of Rs. 45.441/- before the Joint Commissioner of Sales Tax (Appeals).

(vii) - Assessment of UP Trade tax for the assessment year 2005-06 under the Central & Local has been completed by the department and wherein demand of RS.69566/- in Central and of Rs 4i/-in Local has been raised under rule 45 of UP Central Trade Tax Rules , 1948. The company will file an appeal aginst this demand.

(viii) Assessment of UP Trade tax for the assessment year 2006-07 under the Central & Local has been completed by the department and wherein demand of RS.421622/- in Central . and of Rs 17215/-in Local has been raised under rule 45 of UP Central Trade Tax Rules , 1948. The Company has paid against this demnd Rs. 400000/- under protest and will file an appeal aginst this demand.

(ix) Assessment of UP Trade tax for the assessment year 2007-08 (from 01.04.07 to 31.12.07) under the Central & Local has been completed by the department and wherein demand of RS. 66417/-/- in Central and of Rs 55620/-in Local has been raised under Rule 41(8) of Trade Tax and Central Sales Tax Rules , 1948. The company will file an appeal aginst this demand.

(x) Two Demand notices of Rs.173315/ - and Rs. 67500/ for assessment year 2008-2009 have been issued by UP Trade Tax department u/s 50 of UP Value Added Tax Act to the company. The Company will file an appeal aginst these demands before the department on appropriate time.

(xi) A demand of Rs. 84,55,357/- had been raised by BSES Rajdhani Ltd. for making payments of arrears for the misuse of electricity. The company had filed a suit against aforesaid with District Court. The matter is pending

(xii) Demand of excise duty of Rs.42,10,670/- alongwith penalty of Rs.42,10,670/- was imposed on the company by Addl. Commissioner, Central Commissionerate, Noida, for Cenvet credit taken on payment of duty through DEPB licence, under the Central Excise Act, 1944. The company filed before the Commissioner (Appeals), Central Excise, Noida. The Commissioner (Appeals) rejected the appeal. The company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(xiii) Demand of excise duty of Rs. 1,05,836/- alongwith penalty of Rs. 1,05,836/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence, under the Central Excise Act, 1944. The company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Oknla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(xiv) Demand of excise duty of Rs.35,36,033/- alongwith penalty of Rs.35,36,033/- was imposed on the company by Addl. Commissioner, Central Excise, Delhi, for Cenvet credit taken on payment of duty through DEPB licence,under the Central Excise Act, 1944. The company had filed an appeal against the aforesaid order with Commissioner of Central Excise, Okhla. The Commissioner of Central Excise has rejected the appeal. Thereafter, the company has filed the appeal with the Central Excise & Service Tax Appellate Tribunal (CESTAT) and the appeal is pending.

(XV) Company has paid Rs. 4,80,77,335/- to RIICO Ltd. (Rajasthan State Industrial Development and Investment Corporation Ltd) against purchase of Industrial Plot at Bhiwadi, Rajasthan but the plot is yet to be registered in the name of the company.

2 Initial Public Offer

i) The Company had made a Public issue of 50,00,000 Equity Shares of Rs. 10/- each at a premium of Rs. 140/- per share tor setting up of new unit at Surajpur Industrial Area, UP and for expansion of existing operations and production capacities &.;::nq December, 2007. The share issue proceeds aggregating to Rs.75.00 Crores have been fully utilized in accord;, oe with the prospectus dated 28th December, 2007.

ii) Treatment of ,PO Expenses

IPO expenses aggregating Rs.63005867- net of service tax (including payment to auditors Rs.80000/-), shall be amortised equally in 5 years.

3 SEGMENT REPORTING

i) PRIMARY BUSINESS SEGMENTS

The Company reviewed the disclosure of Business segmentwise and is of the view that the Company is mainly in the business of manufacture of PVC Profiles for Automobiles Industries and other business of the Company is to manufacture the PVC Profiles for Refrigerator Industries, Electrical Industries, and Building Construction Industries. Since, no other single segment constitute revenue/ results/ assets more than 10% of total (in accordance with AS - 17), Accordingly segment information is not required to be disclosed.

ii) GEOGRAPHICAL SEGMENTS:

The Company caters mainly to the needs of Indian market and the export turnover being 1.06% ( Previous year 1.52%) of the total turnover of the Company, there are no reportable geographical segments.

iii) ASSETS BY GEOGRAPHICAL AREA :

All segment assets of the Company are located in Northern Part of India .i.e., in Delhi & Noida.

4 RELATED PARTY DISCLOSURES

A Related Party Transactions, as required by AS - 18, " Related Party Disclosures " are as given below : i Related Parties in the group where common control exists :

a) Ajay Poly Private Ltd.

b) A I C (Plastic) Private Ltd

c) Ajay industrial Corporation Ltd.

d) Kalindi Farms Pvt. Ltd.

e) Ajay Industrial Polymers Pvt. Ltd

f) Seiki Auto India Pvt. Ltd.

ii Key Management Personal of the Company :

a) Sh. Devendra Chandra Jain : Chairman

b) Sh. Sharat Chand Jain : Vice - Chairman

c) Sh. Ajay Kumar Jain : Managing Director

d) Sh. Rajeev Jain : Whole Time Director

e) Sh. Anuj Jain : Director

f) Sh. Abhishek Jain : Whole Time Director

g) Sh. B B Tandan : Independent Director

h) Sh. K K Mathur : Independent Director

i) Sh. Satish Lai Tandan : Independent Director

j) Sh. S K Tuteja : Independent Director

k) Sh. Vinod Vaish : Independent Director

I) Sh. S K Duggal : Independent Director

m) Sh. Ashok Kuma Agrawal : Independent Director

iii Relatives of the Key Management Personal

a) M/S. D. C. Jain (H. U. F)

b) M/S. A. K. Jain (H. U. F)

c) SMT. KANUPRIYA JAIN

d) Sh. Nitin Jain

e) Smt. Asha Jain

f) Sh. Akhil Jain

g) Smt. Bina Jain

h) Smt. Vinay Kumari Jain

i) Smt. Anuradha Jain

j) Smt. Lata Jain

19 The name of the Micro and Small Enterprises to whom amounts are due for not more than 30 days as at 31st March, 2010 are as under

1 Nilanchal Packaging Industries

2 OASIS INDUSTRIES

3 K M G ATOZ SYSTEMS PVT LTD

4 SHRI RAM INDUSTRIES

5 ZYLOG PLASTALLOYS PVT LTD

5 TECHNO FERRITES

The above information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available to the Company.

6 Income tax assessments of the Company were completed till the assessment year 2007-2008. However, appeals for the assessment , year 2006 - 2007 and 2007-2008 are pending before the Honble CIT Appeal. No provision has been made in the accounts for additional income tax liabilities for Assessment Year 2008 - 2009 to 2010 - 2011 as amount is unascertained.

7 A Search u/s. 132 of the Income Tax Act, 1961 was made by the Income tax department on dated 05.02.2002 / 06.02.2002. No provision has been made in the accounts for additional income tax liabilities for Block Assessment Period, i.e., 01.04.1995 to 05.02.2002 (Except Rs. 2,10,000.00 as per Block return filled U/s. 158 BC. Plus Rs. 1,91,340.00 while application before Settlement Commission allowed to be proceeded with). Final disposal of petition before the Honble Settlement Commission is pending. Amount unascertained.

8 Income tax assessment for the Block Period, from 01.04.1995 to 05.02.2002 and for Regular assessment for the period from 06.02.2002 to 31.03.2002 (A.Y. 2002-2003) are pending before the Honble Settlement Commission. No provision has been made in the accounts for additional income tax liabilities for the Block Period and for Regular assessment year 2002 - 2003 (Except Rs. 1,91,340.00 for Block Period and Rs. 2,713.00 for Regular assessment year 2002 - 2003 while application before Settlement Commission allowed to be proceeded with). Final disposal of petition before the Honble Settlement Commission is pending. Amount unascertained.

9 Wealth Tax assessment of the company has been completed up to the Assessment year 2007-2008. No provision has been made in the accounts for additional Wealth tax liabilities for the assessment year 2008- 2009 to 2010-2011 as amount is unascertained.

10 Assessment of Fringe benefit tax for the Assessment year 2007- 2008 is completed. No provision has been made in the accounts for additional fringe benefit tax liabilities for the assessment year 2008 - 2009 to 2009 - 2010. Amount unascertained.

11 Sales tax assessments of the Company were completed till the December 2007 in the case of UP Units (Delhi units up to F. Y 2006- 2007). However, no provision has been made in accounts for additional sales tax liabilities for the quarter ended March 2008, Financial Year from 2008 - 2009 and 2009 - 2010 in the case of UP units and from 2007-2008 to 2009-2010 in the case of Delhi units. Amount unascertained.

12 The previous years figures have been re-grouped, re-arranged, re-classified and re-worked, wherever necessary to make them f comparable with those of current year.

Notes:

1 The above Cash Flow Statement has been prepared pursuant to Clause 32 of Listing Agreement with Stock Exchanges and under the indirect method set out in Accounting Standard-3 issued by ICAI.

2 Figures in bracket indicate cash outflow.

3 Significant Accounting Policies and Notes to Accounts form an integral part of the Cash Flow Statement.

 
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