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Notes to Accounts of Precision Electronics Ltd.

Mar 31, 2018

NOTE 1. CORPORATE INFORMATION

Precision Electronics Limited (''PEL'' or ''the Company'') is a public limited company domiciled and incorporated in India having its registered office at D 1081, New Friends Colony, New Delhi -110025. The Company''s shares are listed and traded on Stock Exchanges in India. Established in 1979, Precision Electronics Limited (PEL) is a diverse telecom infrastructure enabler with active interest spanning telecom infrastructure development, system integration, and manufacture and supply of high-end telecom equipment.

The financial statements are approved for issue by the Company''s Board of Directors on May 28, 2018.

NOTE 2. APPLICATION OF NEW AND REVISED IND -AS

All the Indian Accounting Standards issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) read with Section 133 of the Companies Act, 2013 to the extent applicable have been considered in preparing these financial statements.

Accounting policies not specifically referred to otherwise, are consistent and in accordance with Indian generally accepted accounting practices comprising of the mandatory Accounting Standard, Guidance notes and other pronouncements issued by ICAI and the provision of the Companies Act, 2013.

Note:3

Financial assets like security deposits paid, has been classified and measured at amortised cost on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Since, it is impracticable for the Company to apply retrospectively the effective interest method in Ind AS 109, the fair value of the financial asset at the date of transition to Ind AS by applying amortised cost method, has been considered as the new gross carrying amount of that financial asset at the date of transition.

* The vehicle loans to be repaid upto 1st August ,2018 in equated monthly installment.

** Unsecured loan to be repaid upto 10th October, 2018 in equated monthly installment.

*** The loans from director taken before 1st April,2014 amounting to Rs 22,375,570/- . The loan from director to be repaid on demand but not before 1st April 2019.

* Working capital facilities from The South Indian Bank Limited is secured by way of hypothecation of stock of raw materials, finished and semi finished goods, stores and spares, debtors, present and future, other current assets, fixed, movable assets, equitable mortgage of immovables of company and are also personally guaranteed by Managing Director and Whole Time Director cum President of the company.

Note 4. Critical Accounting Estimates and Judgments

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. This note provides an overview of the areas that involved a higher degree of judgment or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

Detailed information about each of these estimates and judgments is included in relevant notes together with information about the basis of calculation for each affected line item in the financial statements.

The areas involving critical estimates or judgments are:

1. Estimation of useful life of tangible asset Note 4.

2. Estimation of useful life of intangible asset Note 5.

3. Estimation of useful life of intangible asset under development Note 6.

4. Estimation of defined benefit obligation Note 43.

5. Estimation of contingent liabilities refer Note 37

6. Estimate for recovery of Deferred Tax Assets refer Note 7

Estimates and judgments are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances

5. Balances of Trade Receivables, Short Term Loan & Advances, Long Term Loan & Advances, Other Current Assets, Other borrowings Trade Payables are subject to confirmation from the parties.

6. Revenue from operations for the year ended 31 March 2018 is net of Goods and Service Tax (GST) which is applicable from 1 July 2017, however, revenue for the periods year ended 31 March 2018 and 31 March 2017 is gross of excise duty, VAT, Sales tax and Service tax. Accordingly, for the year ended 31 March 2018 is not comparable with the previous period presented in these financial results.

a) Defined Benefit Plan

The employees'' gratuity fund scheme is managed by Life Insurance Corporation of India which is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation and the obligation for leave encashment is recognised in the same manner as gratuity.

7. Segment Reporting:

a) Business Segments : Based on guiding principles given in Ind AS-108 "Segment Reporting " Issued by the Institute of Chartered Accountants of India, the Company''s Business Segments Include: Telecom and Infra Services.

b) Geographical Segments: Since the Company''s activities/ operations are primarily within the country & considering the nature of the products/services it deals in , the risk & returns are the same as such there is only one geographical segment.

8. All the figures have been rounded off to the nearest rupees other than specifically stated.

9. Current year figures are shown in bold letter.

10. Previous year''s figures have been regrouped / rearranged & reclassified where ever necessary to conform to Ind AS requirements to make them comparable with the current year.

11. FINANCIAL RISK MANAGEMENT, OBJECTIVES AND POLICIES

The Company''s principal financial liabilities, other than derivatives, comprise loans and borrowings, trade and other payables, and financial guarantee contracts. The main purpose of these financial liabilities is to finance the Company''s operations and to provide guarantees to support its operations. The Company''s principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company''s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s senior management has the overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company has constituted a Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The Company''s risk management policies are established to identify and analyses the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities.

MANAGEMENT OF LIQUIDITY RISK

Liquidity risk is the risk that the Company will face in meeting its obligations associated with its financial liabilities. The Company''s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments.

Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and other financial instruments.

Trade Receivables

Customer credit risk is managed by each business unit subject to the Company established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on past experience and market data available. Outstanding customer receivables are regularly monitored

An impairment analysis is performed at each reporting date on an individual basis for major clients. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 14. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the management in accordance with the Company''s policy. Counterparty credit limits are reviewed by the management on an annual basis and may be updated throughout the year. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty''s potential failure to make payments.

Capital management

Capital includes issued equity capital and share premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximize the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company''s policy is to keep the gearing ratio within 2.00.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March, 2018, 31 March, 2017 and 31 March, 2016.

Fair Value measurement

Fair Value Hierarchy and valuation technique used to determine fair value:

The fair value hierarchy is based on inputs to valuation techniques that are used to measure fair value that are either observable or unobservable and are categorized into Level 1 , Level 2 and Level 3 inputs.

All Non-Current Financial Assets are measured at Amortized Cost as per level 3. for which fair value are disclosed

12. OVERALL PRINCIPLES:

The Company has prepared the opening balance sheet as per Ind AS as of April 1, 2016 (the transition date) by recognizing all assets and liabilities whose recognition is required by Ind AS, not recognizing items of assets or liabilities which are not permitted by Ind AS, by reclassifying certain items from Previous GAAP to Ind AS as required under the Ind AS, and applying Ind AS in the measurement of recognized assets and liabilities. However, this principle is subject to certain mandatory exceptions and certain optional exemptions availed by the Company as detailed below.

13. FIRST TIME ADOPTION OF IND AS

The accounting policies set out in Note 3 have been applied in preparing the Financial statements for the year ended March 31, 2018 and 2017.

Exemptions and exceptions availed

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS as at the transition date, i.e. April 1, 2016.

Article XXXI.Ind- AS optional exemptions

Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the Previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities except leasehold land. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets and Investment Property covered by Ind AS 40 Investment Properties.

Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets and investment property at their Previous GAAP carrying value except leasehold land.

Leases

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. Ind AS 101 provides an option to make this assessment on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material.

The Company has elected to apply this exemption for such contracts / arrangements.

Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognized in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind ASs, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

Ind AS mandatory exceptions

Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made in for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP.

Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Accordingly, classification and measurement of financial asset has been based on the facts and circumstances that exist at the date of transition to Ind AS.

Notes

1 Under Ind AS, re-measurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the Previous GAAP, these re-measurements were forming part of the profit or loss for the year

2 The company has remeasured the leasehold obligations on land. The impact for the year on annual obligations and its deferred tax has been considered.


Mar 31, 2016

1. The Company has only one class of Equity Shares having a par value of Rs. 10 per equity share. The holders of the equity shares are entitled to receive dividend as declared from time to time and are entitled to voting rights proportionate to their share holding at the meeting of share holders.

* The vehicle loans to be repaid up to 1st August, 2018 in equated monthly installment.

** Unsecured loan to be repaid up to 10th October, 2018 in equated monthly installment.

*** The loan from director taken before 1st April, 2014 amounting to Rs. 22,375,570/- and taken during the year amounting to Rs. 5,000,000/-. This Loan to be repaid on demand but not before 1st April, 2017

* Disclosure required by AS 15 on ''Employee Benefits'' has been made in Note no 27.7

Mr. Pradeep Kanodia, along with his son and family HUF, have filed a Company petition before the Hon''ble Company Law Board under Sections 397 and 398 of the Companies Act, 1956, being Pradeep Kanodia & Others v. Precision Electronics Ltd. & Others, C.P. No. 162/ND of 2013. In the Petition, the Petitioners have leveled allegations of oppression and mismanagement against the Company and its Board of Directors. It may be noticed that the Petitioners had previously also filed a similar petition in 2012, being C.P.No.123/ND/2012 raising similar allegations. That Petition was dismissed as withdrawn by Order of the Hon''ble CLB on 14.11.2012. The said Company Petition is pending adjudication before the Hon''ble CLB as also the Hon''ble Delhi High Court.

Mr. Pradeep Kanodia, along with his son and family HUF have also filed a Civil Suit being CS (OS) Comm No 104/2016 against the Company and some of its shareholders in the Hon''ble Delhi High Court. The reliefs sought in the Suit include specific performance of a private arrangement executed between Mr. Pradeep Kanodia and Mr. Ashok Kanodia; to which the Company is not a party, nor can the Company be bound by the same. The said Suit is pending adjudication before the Hon''ble Delhi High Court.

The allegations raised by Mr. Pradeep Kanodia in the Company Petition as also the Civil Suit are totally unfounded and misplaced; the Company has sought legal advice on the issues raised and is vigorously defending the same. The Board of Directors have empowered independent Directors Mr. Suresh Vyas and Mr. S.K. Kataria to take decisions on all legal actions that are necessary to protect the best interest of the Company and its shareholders.

2 Balances of Trade Receivables, Short Term Loan & Advances, Long Term Loan & Advances, Other Current Assets and Trade Payables are subject to confirmation from the parties.

3 The Micro, small and medium enterprises to whom the company owes more than Rs. 1 Lac and outstanding for more than 30 days as under:

There is no liability for interest which would be payable as Interest on delayed payments as per the Micro, small and medium enterprises Development Act 2006 as the company does not receive any claims in respect of interest.

.4 Segment Reporting:

a) Business Segments: Based on guiding principles given in Accounting Standard-17 "Segment Reporting "issued by the Institute of Chartered Accountants of India, The Company''s Business Segments include: Telecom and Infra Services.

b) Geographical Segments: Since the company’s activities / operations are primarily within the Country & considering the nature of the products/services it deals in, the risk & returns are the same as such there is only one geographical segment.

5 Related Party Disclosure:

Information about Related Parties as required by Accounting Standard -18.

A) List of Related Party

i) Relative of the Key Management Personnel and their Enterprises/ Associates where the Transaction has been taken place.

a) Ashok Kanodia (HUF) - (HUF of Managing Director)

b) Mr. Pradeep Kanodia - (Executive Director and Brother of Managing Director)*

c) Mr. Nikhil Kanodia - (Son of Managing Director)

ii) Key Management Personnel

a) Mr. Ashok Kanodia - (Managing Director of the Company)

b) Mr. Jagjit Singh Chopra (Chief Financial Officer of the Company)

c) Mr. Gurvinder Singh Monga (Company secretary of the Company)**

d) Miss. Veenita Puri (Company secretary of the Company)***

*Ceased to be Executive Director w.e.f. 04.06.2015

** Ceased to be Company Secretary w.e.f. 22.12.2015 *** Appointed as Company Secretary w.e.f. 16.01.2016

* This pertains to long term liability worked in respect of deferred leave only. Expected short term liability of Rs. 1,018,623/- (Previous year Rs. 756,096/-) will be added to this figure.

** This pertains to long term liability only. Actual payments (under the various heads) incurred over the inter valuation period should be added to this figure.

6 All the figures have been rounded off to the nearest rupees other than specifically stated.

7. Current year figures are shown in bold letter.

8. Previous year''s figures have been regrouped / rearranged & reclassified where ever necessary to make them comparable with the current year.

Consumption of Imported Spares & Parts does not include spare parts amounting Rs. 13,887/-(Previous Year Rs.NIL) used for repairs.


Mar 31, 2015

1. Contingent Liabilities, Capital and Other Commitments

Amount as Amount as at at 31.03.2015 31.03.2014

A. Contingent Liabilities not provided for:

i) Guarantees and LC 48,484,648 56,683,467

ii) Disputed Demands in respect of Central 4,71,673 3,94,473 Sales Tax and Value Added Tax

iii) Disputed Demands in respect of Central 1,89,918 1,89,918 Excise

iv) Legal Proceedings:

Mr. Pradeep Kanodia, along with his son and family HUF, have filed a company petition before the Hon"ble Company Law Board under section 397 and 398 of the Companies Act, 1956, being Pradeep Kanodia & others v Precision Electronics Ltd. & others, C.P. No. 162/ND of 2013.In the Petition, the Petitioners have leveled allegations of oppression and mismanagement against the company and its Board of Directors.

The Petitioners had previously also filed a similar petition in 2012, being C.P.No.123/ND/2012 raising similar allegations .That Petition was dismissed as withdrawn by Order of the Hon'ble CLB on 14.11.2012.

Considering the allegation by the Petitioners that a settlement agreement was entered into between Mr. Pradeep Kanodia and Mr. Ashok Kanodia which affected the interests of the company : and having come to the conclusion that a private arrangement between Mr. Pradeep Kanodia and Mr. Ashok Kanodia , if it exists , cannot bind the Company : the Board of Directors have empowered independent Directors Mr. Suresh Vyas and Mr. S.K. Kataria to take decisions on all legal actions that are necessary to protect the best interest of the company and its shareholders.

The allegations raised by Mr. Pradeep Kanodia in the Company Petition are totally unfounded and misplaced; the company has sought legal advice on the issues raised in the petition and is vigorously defending the same.

2. Balances of Trade Receivables, Short Term Loan & Advances, Long Term Loan & Advances, Other Current Assets and Trade Payables are subject to confirmation from the parties.

3. Segment Reporting:

a) Business Segments: Based on guiding principles given in Accounting Standard-17 "Segment Reporting "issued by the Institute of Chartered Accountants of India, The Company's Business Segments include: Telecom and Infra Services.

b) Geographical Segments: Since the companies activities / operations are primarily within the Country & considering the nature of the products/services it deals in, the risk & returns are the same as such there is only one geographical segment.

3. Related Party Disclosure:

Information about Related Parties as required by Accounting Standard -18.

A) List of Related Party

i) Relative of the Key Management Personnel and their Enterprises/ Associates where the Transaction has been taken place.

a) Dinanath Kanoria & Co.

b) Ashok Kanodia (HUF)

c) Mr. Pradeep Kanodia*

d) Mr. Nikhil Kanodia*

ii) Key Management Personnel

a) Mr. Ashok Kanodia

b) Mr. Jagjit Singh Chopra**

c) Mr. Gurvinder Singh Monga

4. All the figures have been rounded off to the nearest rupees other than specifically stated.

5. Current year figures are shown in bold letter.

6. Previous year's figures have been regrouped / rearranged & reclassified where ever necessary to make them comparable with the current year.


Mar 31, 2014

Particulars Amount as at Amount as at 31-03-2014 31-03-2013

1.1 Contingent Liabilities, Capital and Other Commitments

A Contingent Liabilities not provided for:

a) Claims against the Company not - - acknowledged as debt

b) Guarantees and LC 56,683,467 42,162,191

56,683,467 42,162,191

B Commitments

a) Capital Commitments net of Advances - -

b) Other Commitments - -

1.2 Balances of Trade Receivables, Short Term Loan & Advances, Long Term Loan & Advances, Other Current Assets and Trade Payables are subject to confirmation from the parties.

1.3 The Micro, Small and Medium Enterprises to whom the company owes more than Rs. 1 Lac and outstanding for more than 30 days as at March 31st 2014.

1.4 Segment Reporting:

a) Business Segments: Based on guiding principles given in Accounting Standard-17 "Segment Reporting "issued by the Institute of Chartered Accountants of India, The Company''s Business Segments include: Telecom and Infra Services.

b) Geographical Segments: Since the companies activities / operations are primarily within the Country & considering the nature of the products/services it deals in, the risk & returns are the same as such there is only one geographical segment.

c) Information about business segments

1.5 All the figures have been rounded off to the nearest rupees other than specifically stated.

1.6 Current year figures are shown in bold letter.

1.7 Previous year''s figures have been regrouped / rearranged & reclassified where ever necessary to make them comparable with the current year.


Mar 31, 2013

1.1 Contingent Liabilities, Capital and Other Commitments

Particulars Amount as at Amount as at 31.03.2013 31.03.2012

A Contingent Liabilities not provided for:

a) Claims against the Company not acknowledged as debt 1646062

b) Guarantees and LC 42162191 47733626

49379688

B Commitments

a) Capital Commitments net of Advances 200000

b) Other Commitments 200000

1.2 Balances of Trade Receivables, Short Term Loan & Advances, Long Term Loan & Advances, Other Current Assets and Trade Payables are subject to confirmation from the parties.

1.3 The Micro, small and medium enterprises to whom the company owes more than Rs. 1 Lac and outstanding for more than 30 days as at March 31st 2013.

There is no liability for interest which would be payable as Interest on delayed payments as per the Micro, small and medium enterprises Development Act 2006. Moreover the company has also not received any claims in respect of interest.

1.4 Segment Reporting:

a) Business Segments: Based on guiding principles given in Accounting Standard-17 "Segment Reporting "issued by the Institute of Chartered Accountants of India, The Company''s Business Segments include:

Printed Circuits Board , Telecom and Infra Services.

b) Geographical Segments: Since the companies activities / operations are primarily within the Country & considering the nature of the products/services it deals in, the risk & returns are the same as such there is only one geographical segment.

1.5 Related Party Disclosure:

Information about Related Parties as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India.

A) List of related Party

i) Relative of the Key Management Personnel and their Enterprises/ Associates where the

Transaction has been taken place.

a) Dinanath Kanoria & Co.

b) Ashok Kanodia (HUF)

c) Vidur Kanodia

d) Pradeep Kanodia (HUF)

ii) Key Management Personnel

a) Mr. Ashok Kanodia

b) Mr. Pradeep Kanodia

c) Mr. Nikhil Kanodia

1.6 All the figures have been rounded off to the nearest rupees other than specifically stated.

1.7 Current year figures are shown in bold letter.

1.8 Previous year''s figures have been regrouped / rearranged & reclassified where ever necessary to make them comparable with the current year.


Mar 31, 2012

1.1 Till the year ended 31 st March 2011 the Company was using pre-revised schedule VI to the Companies Act 1956, for preparation and presentation of its financial statements. During the year ended 31st March 2012 the revised schedule VI notified under the Companies Act 1956 has become applicable to the Company. The Company has re- classified previous year figures to conform to this year classification.

1.2 Contingent Liabilities, Capital and Other Commitments

Particulars Amount as at Amount as at

31.03.2012 31.03.2011

A Contingent Liabilities not provided for:

a) Claims against the Company not acknowledged 1646062 1646062 as debit

b) Guarantees and LC 47733626 80121806

49379688 81767868

B Commitments

a) Capital Commitments net of Advances 200000 2000000

b) Other Commitments 200000 2000000

1.3 Balances of Trade Receivables, Short Term Loan & Advances, Long Term Loan & Advances, Other Current Assets and Trade Payables are subject to confirmation from the parties.

1.4 The Micro, small and medium enterprises to whom the company owes more than Rs.1 Lac and outstanding for more than 30 days as at March 31 st 2012.

Particulars Current Year Previous Year

(Rs.) (Rs.)

Total outstanding dues to Micro,

Small and medium enterprises 617310 1458291

There is no liability for interest which would be payable as Interest on delayed payments as per the Micro, small and medium enterprises Development Act 2006. Moreover the company has also not received any claims in respect of interest.

1.5 Segment Reporting:

a) Business Segments: Based on guiding principles given in Accounting Standard-17 "Segment Reporting "issued by the Institute of Chartered Accountants of India, The Company's Business Segments include Printed Circuits Board, Telecom and Infra Services.

b) Geographical Segments: Since the companies activities / operations are primarily within the Country & considering the nature of the products/services it deals in, the risk & returns are the same as such there is only one geographical segment.

1.6 Related Party Disclosure:

Information about Related Parties as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India.

A) List of related Party

i) Relative of the Key Management Personnel and their Enterprises/Associates where the Transaction has been taken place.

a) Dinanath Kanoria & Co.

b) Ashok Kanodia (HUF)

c) Vidur Kanodia

d) Pradeep Kanodia (HUF)

e) Golden Pigments Pvt. Ltd.

f) SNK Electronics Pvt. Ltd.

g) Precision S.T. India Ltd.

ii) Key Management Personnel

a) Mr. Ashok Kanodia

b) Mr. Pradeep Kanodia

c) Mr. Nikhil Kanodia

* This pertains to long term liability worked in respect of deferred leave only .Expected short term liability of Rs.729566/- ( Previous year Rs.957363/-) will be added to this figure.

** This pertains to long term liability only .Actual payments (under the various heads) incurred over the inter valuation period should be added to this figure.

1.7 All the figures have been rounded off to the nearest rupees other than specifically stated.

1.8 Current year figures are shown in bold letter.

1.9 Previous year's figures have been regrouped / rearranged & reclassified where ever necessary to make them comparable with the current year.


Mar 31, 2011

1. Contingent Liabilities not provided for:

Particulars Current Year Previous Year (Rs in Lac) (Rs in Lac)

i) Unredeemed bank guarantees and LC 801.22 574.01

ii) Others 16.46 NIL

2. Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances Rs. 20.00 Lacs. (Previous yearRs.4.00 Lacs).

3. To comply with the AS - 2 on treatment of excise duty the valuation of closing stock of finished goods is inclusive of excise duty of Rs. 61,2121- however this will have no impact on the Profit / Loss of the company.

4. Balances of Sundry Debtors and Creditors including advances to and from parties are subject to confirmation from the parties.

5. List of Small-Scale industries to whom the Company owes more than Rs. 1 Lac and outstanding for more than 30 days as at March 31st,2011.

Continental Instruments, Nandi Manufacturing Co., Ramtron Engineering Services, Vishnu Plastic, National Acid Supply Co., Paras Laminates Pvt. Ltd and Sandip Chemicals.

There is no liability for interest which would be payable under the Interest on delayed payments to Small Scale and Ancillary Industrial Undertakings Ordinance 1992. Moreover the Company has also not received any claims in respect of interest.

The above information and that given in Schedule no. 10 of "Current Liabilities" regarding Small-scale Industrial Undertaking has been identified on the basis of information available with the Company and relied upon by the Auditors.

6. Segment Reporting:

a) Business Segments: Based on guiding principles given in Accounting Standard-17 "Segment Reporting issued by the Institute of Chartered Accountants of India, The Company's Business Segments include: Printed Circuits Board & Pulse Code modulation

b) Geographical Segments: Since the companies activities / operations are primarily within the Country & considering the nature of the products/services it deals in, the risk & returns are the same as such there is only one geographical segment.

7. Related Party Disclosure:

Information about Related Parties as required by Accounting Standard -18 issued by the Institute of Chartered Accountant oflndia.

A) List of related Party

i) Relative of the Key Management Personnel and their Enterprises /Associates where the Transacts has been taken place.

a) Dinanath Kanoria & Co.

b) Ashok Kanodia (HUF)

c) Vidur Kanodia

d) Pradeep Kanodia (HUF)

e) SNK Electronics Pvt. Ltd

f) Precision S. T. India Ltd

ii) Key Management Personnel

a) Mr.Ashok Kanodia

b) Mr.Pradeep Kanodia

c) Mr.Nikhil Kanodia

8. In view of the management there is no significant impairment envisaged in the recoverable amount of material fixed assets.

9. Previous year's figures have been regrouped / rearranged to make them comparable with the current year.

10. Schedule 1 to 16 forms an integral part ofthe Balance Sheet and Profit & Loss Account.

11. Information pursuant to the provision of paragraph 3,4C & 4D of part II of schedule VI ofthe Companies Act 1956.

(i) Statement pursuant to Part-IV of Schedule VI to the Companies Act, 1956

(i) Registration Details

Registration No. 9590 State Code 55 Balance Sheet Date 31.3.2011

(ii) Capital raised during the Year (Amount in Rs. Thousands)

Public Issue : NIL Rig Issue : NIL Bonus Issue : NIL Private Placement: NIL


Mar 31, 2010

1. Contingent Liabilities not provided for:

Particulars Current Year Previous Year (Rs in Lac) (Rs in Lac)

i) Unredeemed bank guarantees and LC 574.01 962.95

ii) Others NIL NIL



2. Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances 4.00 Lac (Previous year Rs.4.5 lacs).

3. To comply with theAS - 2 on treatment of excise duty the valuation of closing stock of finished goods is inclusive of excise duty of 17784/- however this will have noimpactonthe Profit / Lossof the Company.

4. Balances of Sundry Debtors and Creditors including advances to and from parties are subject to confirmation from the parties.

5. List of Small-Scale industries to whom the company owes more than Rs.1 Lac and outstanding for more than 30 days asat March 31st, 2010.

Continental Instruments, Shreejee Electronics Pvt Ltd., Sandip Chemicals.

There is no liability for interest which would be payable under the Interest on delayed payments to Small Scale andAncillary Industrial Undertakings Ordinance 1992. Moreover the company has also not received any claims in respectof interest.

The above information and that given in Schedule no. 10 of "Current Liabilities" regarding Small-scale Industrial Undertaking has been identified on the basis of information available with the company.

6. Segment Reporting:

a) Business Segments: Based on guiding principles given in Accounting Standard-17 "Segment Reporting "issued by the Institute of Chartered Accountants of India, The Companys Business Segments include: Printed Circuits Board&Pulse Code Modulation

b) Geographical Segments: Since the companies activities / operations are primarily within the Country & considering the nature of the products/services it deals in, the risk & returns are the same as such there is only onegeographical segment

* PCM sales include service receipts.

# Total revenue include inter segmenting sale ofRs. 2818823 /-

8. Related Party Disclosure:

Information about Related Parties as required by Accounting Standard -18 issued by the Institute of Chartered Accountant of India.

A) List of related Party

Relative of the Key Management Personnel and their Enterprises where the Transaction has been taken place.

a) Dinanath Kanoria & Co.

b) Ashok Kanodia (HUF)

c) Vidur Kanodia

d) Pradeep Kanodia (HUF)

ii) Key Management Personnel

a) Mr.Ashok Kanodia

b) Mr.Pradeep Kanodia

c) Mr. Nikhil Kanodia

7. Report Under AS-15 Employee Benefits (Revised 2005)

The Present value of Obligationis asper Projected Unit Credit Method.

8. In view of the management there is no significant impairment envisaged in the recoverable amount of material fixed assets.

9. Previous years figures have been regrouped / rearranged to make them comparable with the current year.

10. Schedule 1 to 14 forms an integral part of the Balance Sheet and Profit & Loss Account.

11. Information pursuant to the provision of paragraph 3,4C & 4D of part II of schedule VI of the Companies Act 1956.

Notes: Installed capacity is as certified by the management of the Company and accepted by the Auditors without verification being a technical matter.

Notes : 1. Others Includes value of spare , accessories for above products

2. Sales exclude captive consumption of 632.12 sq Mts of PCB(Previous year 586.90 Sq.Mts.)

NOTE:-1.All the figure mentioned above are provided by the management and relied upon by the auditors Consumption of Imported Spares & Parts does not include spare parts amounting Rs.95640/- (Previous Year NIL) used for repairs.

(i) Statement pursuant to Part-IV of Schedule VI to the Companies Act, 1956

(i) Registration Details

Registration No. 9590 State Code 55 Balance Sheet Date 31.3.2010

(ii) Capital raised during the Year (Amount in Rs. Thousands)

Public Issue : NIL Rig Issue : NIL Bonus Issue : NIL Private Placement : NIL

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