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Notes to Accounts of Rasandik Engineering Industries Ltd.

Mar 31, 2015

1. The Company has one one class of equity shares having a par value of Rs 10 Per share. Each holder of equity share is entitled to one vote per share . The Company declares and pays dividend in Indian Rupees. The Dividend is proposed by Board of Directors and is subject to the approval of shareholders in the ensuring Annual General Meeting. In the event of liquidation of the company, the holder of equity share will be entitled to receive remaining assets of the company. The distribution shall be in proportion to the number of equity shares held by shareholder.

2. a) Corporate Loan-2 of Rs 57.00 Cr sanctioned from Bank during period March,2014 to 2015 is payable in 24 quarterly ballooning installments of Rs 0.64 Cr from June, 2015 to April,2021 and carries interest rate @ 13.25%. b) Term Loan-1 of Rs 20.00 Cr taken from Bank in July,2013 is payable in 24 monthly installments of Rs 0.39 Cr and carries interest rate @ 14.75% c) Demand Loan for Working Capital of Rs 10.00 Cr taken from Bank in July, 2013 is payablae in 24 monthly installments of Rs 0.28 Cr and carried interest rate of 13.25%.The loans are secured by first Charge on the unencumbered fixed assets including immovable poperty of the company. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company.

3. The company has taken Vehicles Loan from various banks which carries interst rate @ 10% to 12% per annum. The loan are secured against hypothetication of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2015-16, 2016-17 and 2017-18.

4. Loan from Others includes Loan from Liife Insurance Corporation secured against Key Man Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor.The loan carries interest @ 10.50% per annum.

5. Working Capital Loan ( Cash Credit Facility) from Bank is secured by First Charge on Hypothetication of Stocks and Receivables and personal Guarantee of two Directors of the Company. The Cash Credit is repayable on demand. The same are also collaterally secured by First Charge on the unencumbered Fixed Assets inlcuding immoveable property of the Company situated at Sohna, (Haryana) Pune (Maharashtra) and Gautam Budh Nagar, (Uttar Pradesh) except the immovable property ( Industrial Land only) charged to another bank for Loan against Property Facility. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company.

6. Loan against Property taken from Bank is secured by First Charge (Equitable Mortgage) of unencumbered Industrial Land measuring located at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of one Promoter Director of the Company.

7. Contingent Liabilities not provided for : -

a) Letters of credit opened by Bank - Rs 4,56,91,864 /- (Previous Year Rs. 3,46.92,507/-)

b) Bank guarantees given by the bank on behalf of Company - Rs. 1,40,00,000 /- (Previous year - Rs. 1,49,45,000/-)

c) Export obligation under EPCG License- Rs 7,96,00.330/-(Previous Year Rs. 8,32,81,420/-)

d) Guarantees given by the Company on behalf of loan of employees- Rs -NIL- (Previous Year Rs. 1,25,235/-)

Commitments: - Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs Nil (Previous year - Rs. 4,27,000/-)

8. Unclaimed dividend of Rs. 1,46,184/- (Previous Year Rs. 2,62,924/-) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

9. The Company had issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs 45.79 Crores at Issue) on 7th Apr-2006. As per negotiations with the FCCB Bondholders a settlement with the major bond holder representing 80% of the Bonds has been reached. The settled amount has been paid and profits arising out of the settlement have been booked as income and carrying cost of the assets have been adjusted appropriately in the current year.

10. The financial effects of changes in Foreign Exchange rates are as under:-

Net Gains of Rs 13,22,242/-( Previous Year Net Loss of Rs 7,89,350/-) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income ".

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs.275.92 lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs 683.04 lacs towards the addition in the cost of Assets due to Net Loss arising from the effect of changes in foreign currency.

11. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

12. Debtors and Creditors Balances are subject to confirmation/ reconciliations.

13. Investment made in Singur Plant for Tata Motors Ltd. (TML) for the small car project "Nano" has been treated as Capital Work in Progress. TML has abandoned the project in Singur due to various uncontrollable factors.

The company shall relocate the assets along with apportionment of pre-operative expenditure outstanding in accordance with the decision of the Board of Directors.

14. Figures of the previous year have been regrouped/recast wherever necessary so as to conform to current year's classification/disclosure.


Mar 31, 2014

1. Share Capital

The Company has one class of equity shares having a par value of Rs 10 Per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The Dividend is proposed by Board of Directors and is subject to the approval of shareholders in the ensuring Annual General Meeting. In the event of liquidation of the company, the holder of equity share will be entitled to receive remaining assets of the company. The distribution shall be in proportion to the number of equity shares held by shareholder.

2. Long-Term Borrowings

2.1 a)Term Loan of Rs. 36.00 Cr. taken from Bank during period April 2007 to 2009 is payable in 84 monthly installments of Rs. 0.43 Cr. from October, 2010 and carries interest rate @ 13.50% to 16.25%.

b)Corporate Loan of Rs. 10.00 Cr. taken from bank in September 2012 is payablae in 24 monthly installments of Rs. 0.416 Cr. and carried interest rate of 16.25%.The loans are secured by first Charge on the unencumbered fixed assets including immovable poperty of the company. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company.

2.2 Interest free Trade Tax Loan is secured by way of Second Charge on the Fixed Assess inlcuidng Plant & Machinery situated at A-1/2-2 and 2-3, Site B, Surajpur Industrial area, Distt Gautambudh Nagar, Uttar Pradesh. The Deferred Sales Tax due to be paid on 31-5-2014 - Rs. 1.15 Cr.

2.3 The company has taken Vehicles Loan from various banks during period 2012 to 2014. These carries interst rate @ 10% to 12% per annum. The loan are secured against hypothecation of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2013-14, 2014-15, 2015-16.

2.4 Unsecred Loan from Others includes Loan from Liife Insurance Corporation secured against Key Man Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The loan carries interest @ 9% per annum.

3. Short-term borrowings

3.1 Working Capital Loan (Cash Credit Facility) from Bank is secured by First Charge on Hypothecation of Stocks and Receivabeles and personal Guarantee of two Directors of the Company. The Cash Credit is repayable on demand. The same are also collaterally secured by First Charge on the unencumbered Fixed Assets inlcuding immoveable property of the Company situated at Sohna, Haryana, Pune Maharashtra and Gautam Budh Nagar, Uttar Pradesh except the immovable property (Industrial Land only) charged to another bank for Loan against Property Facility. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company.

3.2 Loan against Property taken from Bank is secured by First Charge (Equitable Mortgage) of unencumbered Industrial Land measuring located at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of one Promoter Director of the Company.

4. Contingent Liabilities and Commitments

Contingent Liabilities not provided for: -

a) Letters of credit opened by Bank - Rs. 3,46.92,507/- (Previous Year Rs.17,72,24,099/-)

b) Bank Guarantees given by the bank on behalf of Company - Rs. 1,49,45,000/- (Previous year-Rs. 1,97,60,000/-)

c) Export Obligation under EPCG License - Rs. 8,32,81.420/- (Previous Year Rs. 8,38,33.558/-)

d) Guarantees given by the Company on behalf of loan of employees - Rs. 1,25,235/- (Previous Year Rs. 1,57,074/-)

Commitments: -

Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs 4,27,000/- (Previous year - Rs. 7,25,000/-)

5. Unclaimed dividend of Rs. 2,62,924/-(Previous Year Rs. 4,16,447.00) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

6. The Company has issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs.45.79 Crores at issue) on 07th Apr-2006.These Bonds have matured on 8th April, 2009 and are due for payment. In view of the expiry of contract with Bondholders and pending settlement with them, the interest on Bonds for the financial years 2009-10 2010-11, 2011-12, 2012-13 and 2013-14 has not been provided. However premium on redemption of Bonds for USD 861,000.00 equivalent to Rs.5,17,37,490/- has been accounted for and included in Other Payable under Other Current Liabilities

7. The financial effects of changes in Foreign Exchange rates are as under-

Net Loss of Rs. 7,89,350/-( Previous Year Net Gains Rs. 21,22,126/-) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income". The Exchange Fluctuation on Borrowing has been separately disclosed in Note No 26 on Finance Cost.

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs. 683.04 lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs. 321.72 lacs towards the addition in the cost of Assets due to Net Loss arising from the effect of changes in foreign currency.

8. Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

The following table set out the status of the non funded gratuity plan and on fund loan term compensated absences and the amount recognized in Company financial statement as at 31st March, 2014.

9) Disclosure under Micro, Small and Medium Enterprises Development Act, 2006:

The company has a system of obtaining periodical written confirmations from the suppliers to identify micro enterprises or small enterprises. Based on such identification company makes provision for unpaid statutory interest under Sec 16 of the Micro, Small and Medium Enterprises Development Act, 2006 and disclosures required by Sec 22 of the said Act.

10. Debtors and Creditors Balances are subject to confirmation/ reconciliations.

11. Investment made in Singur Plant for Tata Motors Ltd. (TML) for the small car project "Nano" has been treated as Capital Work in Progress. TML has abandoned the project in Singur due to various uncontrollable factors.

The company shall relocate the assets along with apportionment of pre-operative expenditure outstanding in accordance with the decision of the Board of Directors.

12. Figures of the previous year have been regrouped /recast wherever necessary so as to conform to current year''s classification/ disclosure.


Mar 31, 2013

1.1 Interest free Trade Tax Loan is secured by way of Second Charge on the Fixed Assess inlcuidng Plant &Machinery situated at A-1/2-2 and 2-3, Site B, Surajpur Industrial area, Distt Gautambudh Nagar, Uttar Pradesh. The Deferred Sales Tax due to be paid are as below: on 31-5-2013-Rs 1.24Cr, on 31-5-2014 - Rs 1.15 Cr.

1.2 Term Loan of Rs 11.53 Cr from Non Banking Financial Institution was taken in January, 2010, payable in 48 monthly installments of Rs 0.24 Cr commencing from January, 2011 and carries interest @ 12.25% to 15.25%. The loan is secured by second charge on Plant & Machinery and other assets (Excluding Land & Building) at Plot No 13-14 Roj Ka Meo, Sohna, Gurgaon, Haryana.

1.3 The company has taken Vehicles Loan from various banks during period 2011 to 2013. These carries interst rate @ 10% to 12% per annum. The loan are secured against hypothetication of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2013-14, 2014-15,2015-16.

2.1 Working Capital Loan (Cash Credit Facility) from Bank is secured by First Charge on Hypothetication of Stocks and Receivables and personal Guarantee of two Directors of the Company. The Cash Credit is repayable on demand. The same are also collaterally secured by First Charge on the unencumbered Fixed Assets including immoveable property of the Company situated at Sohna, Haryana, Pune Maharashtra and Gautam Budh Nagar, Uttar Pradesh except the immovable property (Industrial Land only) charged to another bank for Loan against Property Facility. Further the Loan has been guaranteed by personal guarantee of two Promoter DIrectors of the Company

2.2 Loan against Property taken from Bank is secured by First Charge( Equitable Mortgage ) of unencumbered Industrial Land measuring located at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of the Company.

2.3 Unsecured Loan from Others are includes Inter Corporate Loan, repayable on Demand. These carries interest @ 15% to 16%per annum. It also includes Loan from Liife Insurance Corporation secured against KeyMan Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The loan carries interest @ 10% per annum. Unsecurred Loan from Related Party includes loan from Director at Nil rate of interest.

3.1 Margain Money against letter of credit and Bank Guarantee is kept in the form of Bank Fixed Deposit (FDs) discharged in favour of Bank. It includes FDs, totalling Rs 17,35,488/- (Previous Year- Rs 3,71,94,000) the maturity of which is more than 12 months.

4) Contingent Liabilities not provided for : -

a) Letters of credit opened by Bank - Rs 17,72,24,099/- (Previous Year Rs. 18,91,70,353/-)

b) Bank guarantees given by the bank on behalf of Company - Rs. 1,97,60,000/- (Previous year - Rs. 1,29,85,000/-)

c) Export obligation under EPCG License- Rs 8,38,33.558/-(Previous Year Rs. 8,76,14,368/-)

d) Guarantees given by the Company on behalf of loan of employees- Rs.-1,57,074/- (Previous Year Rs. 2,37,431 /-)

5) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs 725000/- (Previous year - Rs. 13,78,66,050/-)

6) Unclaimed dividend of Rs. 4,16,447/- (Previous Year Rs. 5,98,297/-) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

7) The Company has issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs. 45.79 Crores at issue) on 7th April 2006. These Bonds have matured on 8th April, 2009 and are due for payment. In view of the expiry of contract with Bondholders and pending settlement with them, the interest on Bonds for the financial years 2009-10, 2010-11, 2011-12 and 2012-13 has not been provided. However premium on redemption of Bonds for USD 861,000 equivalent to Rs 4,68,38,400 has been accounted for and included in Other Payable under Other Current Liabilities

8) The financial effects of changes in Foreign Exchange rates are as under:- Net Gains of Rs 21,22,126/- (Previous Year Net Loss Rs.9,04,079/-) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income". The Exchange Fluctuation on Borrowing has been separately disclosed in Note No 26 on Finance Cost.

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs 321.72 lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs 535.00 lacs towards the addition in the cost of Assets due to Net Loss arising from the effect of changes in foreign currency.

9) Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

10) Debtors and Creditors Balances are subject to confirmation/ reconciliations.

11) Figures of the previous year has been regrouped/recast wherever necessary so as to conform to current year''s classification. The Revised schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous Year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ disclosure.


Mar 31, 2012

1.1 The Company has one class of equity shares having a par value of Rs 10 Per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The Dividend is proposed by Board of Directors and is subject to the approval of shareholders in the ensuring Annual General Meeting. In the event of liquidation of the company, the holder of equity share will be entitled to receive remaining assets of the company. The distribution shall be in proportion to the number of equity shares held by shareholder.

2.1 a) Corporate Loan of Rs 7.50 Cr taken from Bank during 2011 is payable in 35 monthly installments of Rs 0.214 Cr

from April, 2011 and carries interest rate @ 14.50% to 16.25%.

b) Term Loan of Rs 7.06 Cr taken from Bank during 2008 to 2010 is payable in 48 monthly installments of Rs 0.147 Cr from October, 2010 and carries interest rate @ 13.50% to 16. 25%.

c) Term Loan of Rs 36.00 Cr taken from Bank during the period April 2007 to 2009 is payable in 84 monthly installments of Rs 0.43 Cr from October, 2010 and carries interest rate @ 13.50% to 16. 25%.

The loans are secured by first Charge on the unencumbered fixed assets including immovable property of the company. Further the Loan has been guaranteed by personal guarantee of two Promoter Directors of the Company

2.2 Interest free Trade Tax Loan is secured by way of Second Charge on the Fixed Assets inlcuidng Plant & Machinery situated at A-1/2-2 and 2-3 , Site B , Surajpur Industrial Area, Distt Gautambudh Nagar, Uttar Pradesh. The Deferred Sales Tax due to be paid are as below: on 31-5-2012-Rs 0.82 Cr , on 31-5-2013-Rs 1.24Cr , on 31-5-2014 - Rs 1.15 Cr.

2.3 Term Loan of Rs 11.53 Cr from Non Banking Financial Institution was taken in January, 2010 , payable in 48 monthly installments of Rs 0.24 Cr commencing from January, 2011 and carries interest @ 12.25% to 15.25%.The loan is secured by second charge on Plant & Machinery and other assets( Excluding Land & Building) at Plot No 13-14 Roj Ka Meo, Sohna , Gurgaon , Haryana.

2.4 The company has taken Vehicles Loan from various banks during period 2010 to 2012 . These carries interst rate @ 10% to 12% per annum. The loan are secured against hypothetication of Vehicles purchased. These Loans are taken for maximum three years and falls due for repayment in 2012-13 , 2013-14, 2014-15.

3.1 Working Capital Loan ( Cash Credit Facility) from Bank is secured by First Charge on Hypothetication of Stocks and Receivables and personal Guarantee of two Directors of the Company . The Cash Credit is repayable on demand.The same are also collaterally secured by First Charge on the unencumbered Fixed Assets inlcuding immoveable property of the Company situated at Sohna, Haryana, Pune, Maharashtra and Gautam Budh Nagar, Uttar Pradesh except the immovable property ( Industrial Land only) charged to another bank for Loan against Property Facility. Further the Loan has been guaranteed by personal guarantee of two Promoter Directors of the Company

3.2 Loan against Property taken from Bank is secured by First Charge( Equitable Mortgage ) of unencumbered Industrial Land measuring located at at Revenue Estate Village Kanwarsikka, Tehsil Nuh, Distt Mewat, Haryana. Further the Loan has been guaranteed by personal guarantee of one Promoter Director the Company.

3.3 Unsecred Loan from Others are includes Inter Corporate Loan, repayable on Demand. These carries interest @ 16%per annum. It also includes Loan from Liife Insurance Corporation secured against KeyMan Policy issued in the Name of Promoter Director, Mr Rajiv Kapoor. The loan carries interest @ 10% per annum.

4.1 Margain Money against letter of credit and Bank Guarantee is kept in the form of Bank Fixed Deposit (FDs)discharged in favour of Bank . It includes Fixed Deposits, totalling Rs 3,71,94,000 ( Previous Year- Rs 145,00,000) the maturity of which is more than 12 months.

5) Contingent Liabilities not provided for : -

a) Letters of credit opened by Bank - Rs 18,91,70,353/- (Previous Year Rs. 26,46,43,277/-)

b) Bank guarantees given by the bank on behalf of Company - Rs. 1,29,85,000/- (Previous year - Rs. 5,85,000/-)

c) Export obligation under EPCG License- Rs 88,62,135/-(Previous Year Rs. 1,12,23,060/-)

d) Guarantees given by the Company on behalf of loan of employees- Rs.2,37,431 /- (Previous Year Rs. 5,02,123/-)

6 ) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs 7,25,000 /- (Previous year - Rs. 13,78,66,050/-)

7) Unclaimed dividend of Rs. 5,98,297/- (Previous Year Rs. 7,96,969/-) shown under Current Liabilities does not include any amount due and outstanding to be credited to "Investor Education and Protection Fund".

8) The Company has issued 10,000 3% Foreign Currency Convertible Bonds (FCCBs) of US$ 1000 each aggregating to US$ 10 Million (Rs.45.79 Crores at issue) on 07th Apr-2006. These Bonds have matured on 8th April, 2009 and are due for payment. In view of the expiry of contract with Bondholders and pending settlement with them, the interest on Bonds for the financial years 2009-10 2010-11 and 2011-12 has not been provided. However premium on redemption of Bonds for USD 861,000.00 equivalent to Rs 4,39,11,000.00 has been accounted for and included in Other Payable under Other Current Liabilities

9) The financial effects of changes in Foreign Exchange rates are as under-

Net Gains of Rs 904079/- ( Previous Year Net Loss Rs.9,46,209/- ) for the year on account of exchange difference related to Exports of Goods, Raw Material and Spares purchased, has been included in "Operating Income ". The Exchange Fluctuation on Borrowing has been separately disclosed in Note No 26 on Finance Cost.

The company has changed the policy for accounting the exchange differences arising on long term foreign currency monetary items in accordance with the Companies (Accounting Standards) Amendment Rules on AS 11 notified by Government of India on March, 31, 2009. Accordingly, the net loss arising from the effect of changes in foreign currency rates on foreign currency loans relating to acquisition of depreciable capital assets amounting to Rs 535.00 lacs has been added to the cost of Assets. The corresponding impact for previous year was Rs 43.86 lacs towards the reduction in the cost of Assets due to Net Gains arising from the effect of changes in foreign currency.

10) Disclosure pursuant to Accounting Standard-15 (Revised) "Employee Benefits"

Effective 1st April, 2007, the Company has adopted Accounting Standard 15 (Revised) "Employee Benefits" issued by ICAI. The Company has classified the various benefits provided to employee as under:-

i) Long term compensated absences are provided for based on actuarial valuation at the end of each financial year.

ii) Provided Fund is a defined contribution scheme and the same is administered through contributions to Regional Provident Fund. Contribution to the said Fund paid/payable during the year is recognized in the Profit and Loss account

iii) Gratuity liability is defined benefit obligation and is fully provided for on the basis of actuarial valuation made at the end of each financial year. The actuarial valuation is made on the Projected Unit Credit method.

iv) Actuarial gains/losses are immediately recognized and are not deferred.

11) Debtors and Creditors Balances are subject to confirmation/ reconciliations.

12) Investment made in Singur Plant for Tata Motors Ltd (TML) for the small car project "Nano" has been treated as Capital Work in Progress. TML has abandoned the project in Singur due to various uncontrollable factors. Further, TML has relocated this project to new location in Sanand in Gujarat.

The company shall relocate the assets along with apportionment of pre-operative expenditure outstanding in accordance with the decision of the Board of Directors.

13) Figures of the previous year have been regrouped/recast wherever necessary so as to conform to the requirement of Revised Schedule-VI.

 
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