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Notes to Accounts of Sahyadri Industries Ltd.

Mar 31, 2015

1. CORPORATE INFORMATION:

The company is engaged in the production of Cement Sheets and Accessories, trading of steel doors & in generation of wind power electricity . The company presently has four operational manufacturing units situated at Maharashtra, Tamilnadu and Gujarat. The company has set up Wind Turbine Generators in Maharashtra, Rajasthan &Tamilnadu.

2. BASIS OF PREPARATION :

These financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

3.1 Terms / rights attached to equity shares:

The company has only one class of equity shares having a face value of' 10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

4.1 Working Capital loans are secured by entire current assets of the Company, collateral security of fixed assets of the Company and personal guarantee of two Directors.

5.1 As defined under Micro, Small and Medium Enterprises Development Act, 2006, the disclosure in respect of the amount payable to such enterprises as at 31st March,2015 has been made in the financial statement based on information receivedavailableand identified bythecompany.

6.1 Additional disclosure as per AS 15 is provided in note number 38

Rs in Lacs except as otherwise stated

PARTICULARS Year Ending Year Ending March 31, 2015 March 31, 2014

7 : CONTINGENT LIABILITIES AND COMMITMENTS ( TO THE EXTENT NOT PROVIDED FOR)

7.1 Contingent Liabilities not provided for:

a) Bank Guarantees 28.77 26.47

b) Due towards disputed statutory liability 194.42 67.09

(Total amount disputed Rs.210.53 lacs, amount paid Rs. 16.11 lacs, net under protestRs. 194.42 lacs)

c) Claims against the company not acknowledged as debts 0.41 0.33

7.2 Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account net of advances and not provided for 794.69 1210.37

8: TRIAL RUN EXPENSES

During the year the Company had commenced trial run at it's Vijaywada Plant on 18th February, 2015. The commercial prodution has not started. The Company has capitalised expenditure incurred during trial run net off realisable value of material produced,amountingto Rs.76.37lacsto preoperativeexpenses.

9 : DISCLOSURE PURSUANT TO ACCOUNTING STANDARD 15 ( REVISED) EMPLOYEES BENEFITS

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants ofIndia, which is effective from 1stApril,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the AccountingStandard aregiven below.

B. Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encasement is defined benefit plan. The present value of the obligation is based on Actuarial Valuation using Projected unit credit method.

10 DISCLOSURE AS REQUIRED BY AS - 11 "THE EFFECT OF CHANGES IN FOREIGN EXCHANGE RATES" :

10.1 Forward Cover Contracts :

The company has used forwardcover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

10.2 Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments: Recognition and Measurement")

a) In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk and floating interest risk arising from the amounts denominated in currencies other than the Indian rupee and rate of interest determined at LIBOR. The counter party to the Company's foreign currency interest swap contracts is a bank. These contracts are entered into to hedge the foreign currency risks of firm commitments and highly probable forecasted transactions. The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31,2015 as required by AS 30 and accordingly the MTM Loss of 197.45 is recognized inthe Hedging Reserve.

11 : OPERATING LEASE:

Where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, they are classified as Operating Lease.

Operating lease payments are recognised as an expense in the Profit and Loss Account.

Rental expenses of 3.45 (P.Y. 3.04) in respect of obligation under non-cancellable operating leases have been charged to Profit and Loss Account. Further a sum of 91.50 (P.Y. 88.20) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements:

(i) The company has taken premises, Vehicle, Plant and Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

12: List of persons and the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.

13: The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such longterm contracts (including derivative contracts) has been made in the books of accounts.

14: Previous years figures have been regroupedand rearranged wherever necessary.


Mar 31, 2014

1. CORPORATE INFORMATION:

The company is engaged in the production of Cement Sheets and Accessories, trading of steel doors & in generation of wind power electricity. The company presently has four manufacturing units situated at Maharashtra, Tamilnadu and Gujarat. The company has set up Wind Turbine Generators in Maharashtra, Rajasthan & Tamilnadu.

2. BASIS OF PREPARATION :

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standard) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. Share Capital

3.1 Terms / rights attached to equity shares:

The company has only one class of equity shares having a face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity sahres held by the shareholders.

4. Long Term Borrowings

* Rupee Term loans excepting loans against vehicles are secured by exclusive first charge on assets financed by / mortgaged to / hypothecation in favour of Term lending Bank and personal guarantee of four Directors in three cases and two directors in one case. Loans against vehicle are secured by hypothecation of vehicles purchased.

** Foreign Currency Term loans are secured by exclusive first charge on assets financed, receivables of project financed and personal guarantee of one Director.

5. Short Term Borrowings

5.1 Working Capital loans are secured by entire current assets of the Company, collateral security of fixed assets of the Company and personal guarantee of two Directors.

6. CONTONGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

6.1 Contingent Liabilities not Year Ending Year Ending provided for: March 31, 2014 March 31, 2014

a) Bank Guarantees 26.47 66.71

b) Due towards disputed statutory liability 67.09 5.29 (Total amount disputed Rs. 72.42, amount paid Rs. 5.33, net under protest Rs. 67.09)

c) Claims against the company not 0.33 0.00 acknowledged as debts

6.2 Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account net of advances and not provided for 1210.37 2368.27

7. Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the Accounting Standard are given below.

Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encasement is defined benefit plan. The present value of the obligation is based on Actuarial Valuation using Projected unit credit method.

8. Disclosure as required by AS -11 "The Effect of changes in Foreign Exchange Rates" :

8.1 Forward Cover Contracts :

The company has used for ward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

8.2 Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments: Recognition and Measurement")

In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk and floating interest risk arising from the amounts denominated in currencies other than the Indian rupee and rate of interest determined at LIBOR. The counter party to the Company''s foreign currency interest swap contracts is a bank. These contracts are entered into to hedge the foreign currency risks of firm commtments and highly probable forecasted transactions.The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31,2014 as required by AS 30 and accordingly the MTM Gain of 34.11 is recognized in the Hedging Reserve.

9. Operating Lease :

Where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, they are classified as Operating Lease.

Rental expenses of 3.04 (P.Y. 3.00) in respect of obligation under non-cancellable operating leases have been charged to Profit and Loss Account. Further a sum of 88.20 (P.Y. 88.40) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements :

(i) The company has taken premises, Vehicle, Plant and Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

10. Segment Wise Revenue / Results and Capital Employed

Notes :-

1) The Company has two business segments namely Building Material Products and Power Generation by Windmills.

2) Segment Revenue include External Sales directly identifiable with segment.

3) Inter segment Revenue includes power generation for captive consumption.

4) Expenses and assets those are directly identifiable are considered for Segment Reporting.

11. List of persons and the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.


Mar 31, 2013

1.CORPORATE INFORMATION:

The company isengagedin the production ofCement Sheets and Accessories, trading ofsteel doors& ingeneration of wind power electricity.The company presently has four manufacturing units situatedat Maharashtra, Tamilnadu and Gujarat.The companyh assetup Wind Turbine Generators in Maharashtra, Rajasthan & Tamilnadu.

2.BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standard) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3 : Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the Accounting Standard are given below.

A. Defined contribution plan

Contribution to the defined contribution plan recognized as expense for the year are as under

B. Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encasement is defined benefit plan. The present value of the obligation is based on Actuarial Valuation using Projected unit credit method.

4 Disclosure as required by AS - 11 "The Effect of changes in Foreign Exchange Rates" : 37.1 Forward Cover Contracts :

The company has used forwardcover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

The details of such forward contracts are as under :

4.1 Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments : Recognition and Measurement")

a) In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk and floating interest risk arising from the amounts denominated in currencies other than the Indian rupee and rate of interest determined at LIBOR. The counter party to the Company''s foreign currency interest swap contracts is a bank. These contracts are entered into to hedge the foreign currency risks of firm commtments and highly probable forecasted transactions. The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31, 2013 as required by AS 30 and accordingly the MTM Gain of 123.89 is recognized in the Hedging Reserve.

b) The following are the outstanding derivative Contracts entered into by the Company which have been designated as Cash Flow Hedges as on March 31,2013:

5 : Operating Lease :

Where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, they are classified as Operating Lease.

Operating lease payments are recognised as an expense in the Profit and Loss Account.

Rental expenses of 3.00 (P.Y. 3.00 ) in respect of obligation under non-cancellable operating leases have been charged to Profit and Loss Account. Further a sum of 88.40 (P.Y. 87.15) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements :

(i) The company has taken premises, Vehicle, Plant and Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

6 : List of persons and the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.

7 : Previous years figures have been regrouped and rearranged wherever necessary.


Mar 31, 2012

1. CORPORATE INFORMATION :

The company is engaged in the production of Cement Sheets and Accessories, trading in comply and steel doors & in generation of wind power electricity. The company presently has four manufacturing units situated at Maharashtra, Tamilnadu and Gujarat. The company has set up Wind Turbine Generators in Maharashtra, Rajasthan & Tamilnadu.

2. BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

1.1 Terms / rights attached to equity shares:

The company has only one class of equity shares having a face value of Rs10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

*Rupee Term loans excepting loans against vehicles are secured by exclusive first charge on assets financed by /mortgaged to/hypothecation in favor of Term lending Bank and personal guarantee of four Directors in three cases and guarantee of two directors in one case.

**Foreign Currency Term loans are secured by exclusive first charge on assets financed, exclusive first charge on receivables of project financed and personal guarantee of one Director.

***Rupee Term loans from banks and NBFC for vehicles are secured by hypothecation on vehicles purchased.

7.1 Working Capital loans are secured by pari-passu hypothecation charge of Stock of Raw Material, stock in process, Consumables, Stores, Finished Goods. Book Debts & other current assets & fixed assets and personal guarantee of two Directors.

*Balance with bank includes balance in unclaimed dividend A/c of Rs 16.76 lacs (previous year Rs 9.60 lacs) and restricted bank deposit of Rs 4.95 (previous year Rs 214.95) on account of margin money deposit against Guarantees and L/C' s. **Deposits with bank includes deposit of 14.95 (previous year Rs 44.22) with maturity of more than 12 months. These deposits can be withdrawn by the company at any point without prior notice or penalty on the principal.

3.1 Expenditure in foreign currency on various accounts are reported in note number 32

4 : CONTONGENT LIABILITIES & COMMITMENTS TO THE EXTENT NOT PROVIDED FOR

4.1 Contingent Liabilities not provided for: Year ended Year ended

31st March 2012 31st March 2011

a) Bank Guarantees 4.95 210.00

b) Claims against the company not acknowledged as debts 0.00 43.81

4.2 Commitments

a) Estimated amount of contracts remaining to be executed

on Capital Account net of advances & not provided for 48.18 2809.71

5 : Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the Accounting Standard are given below.

A. Defined contribution plan

Contribution to the defined contribution plan recognized as expense for the year are as under

6 (Disclosure as required by AS - 11 'The Effect of changes in Foreign Exchange Rates")

6.1 Forward Cover Contracts :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

The details of such forward contracts are as under:

6.2 Cash Flow Hedae (Disclosure as required by AS - 30 "Financial Instruments : Recognition and Measurement"!

a) In accordance with its risk management policy & business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk & floating interest risk arising from the amounts denominated in currencies other than the India rupee & rate of interest determined at LIBOR. The counter party to the Company's foreign currency interest swap contracts is a bank. These contracts are entered into to hedge the foreign currency risks of firm commitments and highly probable forecasted transactions. The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31,2012 as required by AS 30 and accordingly the MTM Gain of 461,92 is recognized in the Hedging Reserve.

b) The following are the outstanding derivative Contracts entered into by the Company which have been designated as Cash Flow Hedges as on March 31,2012:

Rental expenses of 3.00 (RY. 3.00) in respect of obligation under non-cancellable operating leases have been charged to Profit & Loss Account. Further a sum of 87.15 (RY. 78.23) has been charged to Profit & Loss Account in respect of cancellable operating leases.

General description of leasing arrangements:

(i) The company has taken premises, Vehicle & Plant & Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

Notes

:-l) The Company has two business segments namely Building Material Products & Power Generation by Windmills.

:-2) Segment Revenue include External Sales directly identifiable with segment.

:-3) Inter segment Revenue includes power generation for captive consumption.

:-4) Expenses and assets those are directly identifiable are considered for Segment Reporting.

7 : List of persons & the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.

8 : Previous year's figures have been regrouped and rearranged wherever necessary.


Mar 31, 2011

Year ended Year ended 31st March 2011 31st March 2010

1) Contingent Liabilities not provided for :

a) Bank Guarantees 21,000,000 22,078,217 (Including Gurantee In favour of MARKFED Rs. 21,000,000/- Refer Note No.1 (p)

b) Letter of Credit 3,750,178 16,808,484

c) Claims against the company not acknowledged as debts 4,381,094 4,381,094

2) Operating Lease :

Where the lessor effectively retains substantially all the risks & benefits of ownership of the leased item, they are classified as Operating Lease. Operating lease payments are recognised as an expense in the Profit & Loss Account.

Rental Expenses of Rs. 300,000/- (P.Y. Rs. 300,000/-) in respect of obligation under non cancellable operating leases have been charged to Profit & Loss Account. Further sum of Rs. 7,823,276/- (P.Y. Rs. 6,955,704/-) has been charged to Profit & Loss Account in respect of cancellable operating Leases.

General description of leasing arrangements :

(i) The company has taken premises, vehicle & plant & machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

3) i) Forward Cover Contracts (Disclosure as required by AS - 11 "The Effect of changes in Foreign Exchange Rates") :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

4) ii) Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments :Recognition and Measurement")

a) In accordance with its risk management policy & business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk & floating interest risk arising from the amounts denominated in currencies other than the Indian rupee & rate of interest determined at LIBOR. The counter party to the Company's foreign currency interest swap contracts is a bank. These contracts are entered to hedge the foreign currency risks of firm commitment and highly probable forecasted transactions. The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31, 2011 as required by AS 30 and accordingly the MTM Loss of Rs. 3,837,565/- is recognized in the Hedging Reserve.

5) Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

B Defined Benefit Plan

The Employee Gratuity Fund Scheme & Leave Encashment is defined benefit plan. The present value of the obligation is based on Actuarial Valuation using Projected unit credit method.

6) Related Party Disclosure :-

The Company has entered into transactions in the ordinary course of business with related party at arms length. The details of related party's are reported in the Annexure.

7) As defined under Micro,Small & Medium Enterprises Development Act,2006, the disclosure in respect of the amount payable to such enterprises as at 31st March,2011 has been made in the financial statement based on information received available and identified by the company.

8) Previous years figures have been regrouped and rearranged wherever necessary.

Annexure - Related Party Disclosures { AS- 18 }

List of persons & the relationship with related parties with whom transaction have taken place during the year with value of transactions (as certified by management)

Name of the related party -

I) Associates -

a ) Poonam Roofing Products Pvt.Ltd. ( PRPPL )

b ) Parv Ventures

c ) JVS Coatmatco Industries Pvt. Ltd .

d) Sudarshan Pipes Pvt. Ltd.

e) Poonam Tiles

f) Mahanagar Constructions

g) Sahyadri Enerco Pvt. Ltd.

h) PVRB Agro Products Pvt Ltd.

II ) Key Management Personnel -

a) Mr.Vallabhbhai L. Patel - Director

b) Mr. Purushottambhai L. Patel - Director

c) Mr.Jayesh P. Patel - Director

d) Mr.Satyen V. Patel - Director

III ) Relatives of Key Management Personnel -

a) Mr. V. V. Patel b) Mr. Chetan P. Patel

c) Mrs. B.P.Patel d) Mrs. Parvti Patel

e) Mr. J.V. Patel f) Mrs.Geeta S.Patel

g) Mrs. Harsha J. Patel h) Mrs. Kalpana Patel

i) Malvi Patel k) Mrs. Rashmi P Patel

l) Pranil S. Patel m) Dhemahee S. Patel

Gratutity Contribution :-

The contribution to gratuity funds has been made on a group basis & separate figures applicable to an individual employee are not available & therefore, contribution to gratuity funds has not been considered in the above computation.


Mar 31, 2010

1)Contingent Liabilities not provided for : Year ended Year ended 31 st March 31 st March 2010 2009

a) Bank Guarantees 22,078,217 22,078,217 (Including Gurantee In favour of MARKFED Rs.2,10,00,000/- Refer Note No.1 (p)

b) Letter of Credit 16,808,484 3,021,548 c) Claims against the company not acknowledged as debts 4,381,094 4,381,094

General description of leasing arrangements :

(i) The company has taken premises, Vehicle & Plant & Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

2) Forward Cover Contracts (Disclosure as required by AS - 11 "The Effect of changes in Foreign Exchange Rates") :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

3) Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments : Recognition and Measurement")

a) In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk & floating interest risk arising from the amounts denominated in currencies other than the Indian rupee & rate of interest determind at LIBOR. The counter party to the Companys foreign currency interest swap contracts is a bank. These contracts are entered to hedge the foreign currency risks of firm commtments and highly probable forecasted transactions.The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31, 2010 as required by AS 30 and accordingly the MTM Loss of Rs. 36,552,788/- is recognized in the Hedging Reserve.

4) Related Party Disclosure :-

The Company has entered into transactions in the ordinary course of business with related party at arms length.

The details of related partys are reported in the Annexure.

5) Previous years figures have been regrouped and rearranged wherever necessary.

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