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Notes to Accounts of Shilp Gravures Ltd.

Mar 31, 2015

I) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs, 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2015, the amount of per share dividend recognised as distributions to equity shareholders was Rs, 1.20 (31st March 2014 : Rs, 1.20)

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

Secured

(i) Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs, 133.76 Lacs (P.Y. Rs, 281.76 Lacs), out of which Rs, 103.40 Lacs (P.Y. Rs, 103.40 Lacs) is classified as current maturity. The loan is repayable in 60 Monthly installments of Rs,11.50 Lacs each including interest, from March, 2012. The loan is secured by exclusive charge over windmills acquired out of the said loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(ii) Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs, 353.65 Lacs (P.Y. Rs, 492.96 Lacs), out of which Rs, 105.14 Lacs (P.Y. Rs, 105.14) is classified as current maturity. The loan is repayable in 60 Monthly installments of Rs, 11.94 Lacs each including interest, from October, 2013. The loan is secured by exclusive charge over the new Imported Machineries acquired out of the said loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(iii) Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs, 209.12 Lacs (P.Y. Rs, 260.95 Lacs), out of which Rs, 60.22 Lacs (P.Y. Rs, 60.22 Lacs) is classified as current maturity. The loan is repayable in 60 Monthly installments of Rs,6.75 Lacs each including interest, from May, 2013. The loan is secured by exclusive charge over a windmill acquired out of the said loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(iv) Hire purchase finances from The Ahmedabad Mercantile Co-operative Bank Limited for Car amounting to Rs, 9.58 Lacs (P.Y. Rs, 11.64 Lacs), out of which Rs, 3.12 Lacs (P.Y. Rs, 3.12) is classified as current maturity, is secured by hypothecation of the Car.

Unsecured

(v) Unsecured loan amounting to Rs, Nil Lacs (P.Y. Rs, 145.73 Lacs) taken from Life Insurance Corporation of India. The loan was availed against Keyman Insurance policies of the key personnel of the Company.

(i) Working capital loan from The Ahmedabad Mercantile Co. Op. Bank Ltd. of Rs, 840.18 Lacs (P.Y. Rs, 653.56 Lacs). The same is secured by present and future book debts and inventories of the Company, personal guarantee of some of the promoter directors.

* There is no amount due and outstanding to be credited to Investor Education and Protection Fund

1. Figures in the brackets represent the previous year figures.

2. Plant and Machinery includes softwares being an integral part of plant and machinery

1. EMPLOYEE BENEFITS

The Company makes Provident Fund and Superannuation Fund contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs, 44.98 Lacs (Year ended 31 March, 2014 - Rs, 36.99 Lacs) for Provident Fund contributions, and Rs, 6.24 Lacs (Year ended 31 March, 2014 - Rs, 6.24 Lacs) for Superannuation Fund contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

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

2. SEGMENT REPORTING

The Company has identified business segments as its primary segment and geographical segments as its secondary segment. Reportable business segments are primarily

(i) manufacture of engraved copper rollers and

(ii) energy generation through wind mill. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. Fixed assets that are used interchangeably amongst segments are not allocated to primary and secondary segments.

The segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segment and amount allocated on a reasonable basis by management.

Disclosures required under AS 17 – Segment Reporting are as under:

(Figures in brackets represent previous year numbers)

3. DISCLOSURES UNDER THE MSMED ACT, 2006

In the absence of any information from vendors regarding the status of their registration under the "Micro Small and Medium Enterprise Development Act 2006" the company is unable to comply with the disclosures required to be made under the said Act.

4. Effective from 1st April, 2014, the Company has charged depreciation based on remaining useful life of the assets as per the requirements of Schedule II of the Companies Act, 2013 ("the Act"). Consequent to this, depreciation charge for the year ended on 31st March, 2015 is higher by Rs,69.72 lacs. Further, in accordance with the transitional provisions provided in Note 7(b) of Schedule of the Act, an amount of Rs, 64.55 lacs (Net of deferred tax credit of Rs, 31.01 lacs) has been adjusted against the opening balance of retained earnings in respect of assets wherein remaining useful life of the assets is Nil.

5. INTEREST IN JOINT VENTURE

The Company has entered into a Joint Venture Agreement with three Companies namely, Hannecard N.V., Mitex GMBH and Unimark International Private Limited to incorporate a Joint Venture Company in the name of HMSU Rollers (India) Private Limited on 1st February, 2012. The said Joint Venture Company is engaged in the manufacturing of Rubber Rollers and Poly Urethene Rollers. The Company has commenced its commercial operations with effect from 18th April, 2013.

6. Figures of previous year have been regrouped / reclassified, wherever necessary, to make them comparable with current year figures.


Mar 31, 2014

1. BACKGROUND OF THE COMPANY

Shilp Gravures Limited is a public limited company, incorporated in the year 1993 under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange since 1995. The Company has set up, the first gravure roller manufacturing house in India. The Company is engaged in engraving of rollers using three different engraving technologies i.e. electronic, laser and chemical etching. The engraved rollers are using in printing and packaging industries.

i) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2014, the amount of per share dividend recognised as distributions to equity shareholders was Rs. 1.20 (31st March 2013 : Rs. 1.50) In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all prefential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. LONG TERM BORROWINGS

Secured

(i) Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. 281.76 Lacs (P.Y. Rs. 380.34 Lacs), out of which Rs. 103.40 Lacs (P.Y. Rs. 103.40 Lacs) is classified as current maturity. The loan is repayable in 60 Monthly installments of Rs. 11.50 Lacs each including interest, from March, 2012. The loan is secured by exclusive charge over the three new windmills acquired out of the said loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(ii) Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. Nil (P.Y. Rs. 133.41 Lacs), out of which Rs. Nil (P.Y. Rs. 29.68 Lacs) is classified as current maturity. The loan was secured by exclusive charge over the new Imported Machineries acquired out of the said loan. Further, the loan was guaranteed by the personal guarantee of some of the promoter directors.

(iii) Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. 492.96 Lacs (P.Y. Rs. Nil), out of which Rs. 105.14 Lacs (P.Y. Rs. Nil) is classified as current maturity. The loan is repayable in 60 Monthly installments of Rs. 11.94 Lacs each including interest, from October, 2013. The loan is secured by exclusive charge over the new Imported Machineries acquired out of the said loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(iv) Loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. 260.95 Lacs (P.Y. Rs. 263.96 Lacs), out of which Rs. 60.22 Lacs (P.Y. Rs. 52.79 Lacs) is classified as current maturity. The new loan is repayable in 60 Monthly installments of Rs. 6.75 Lacs each including interest, from May, 2013. The loan is secured by exclusive charge over the new one windmill to be acquired out of the said loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(v) Hire purchase finances from The Ahmedabad Mercantile Co-operative Bank Limited for Car amounting to Rs. 3.84 Lacs (P.Y. Rs. Nil), out of which Rs. 1.02 Lacs (P.Y. Rs. Nil) is classified as current maturity, is secured by hypothecation of the Car.

(vi) Hire purchase finances from The Ahmedabad Mercantile Co-operative Bank Limited for Car amounting to Rs. 11.64 Lacs (P.Y. Rs. Nil), out of which Rs. 3.12 Lacs (P.Y. Rs. Nil) is classified as current maturity, is secured by hypothecation of the Car.

(vii) Hire purchase finances for Car amounting to Rs. 1.03 Lacs (P.Y. Rs. 5.02 Lacs), out of which Rs. 1.03 Lacs (P.Y. Rs. 3.98 Lacs) is classified as current maturity, is secured by hypothecation of the Car.

Unsecured

(viii) Unsecured loan amounting to Rs. 145.73 Lacs (P.Y. Rs. 172.53 Lacs) taken from Life Insurance Corporation of India. The loan is availed against Keyman Insurance policies of the key personnels of the Company. The same to be paid on or before the maturity of the respective Keyman Insurance policies i.e. 24-05-2015 Rs. 25.65 Lacs, 04-06-2015 Rs. 26.80 Lacs, 28-07-2016 Rs. 18.76 Lacs, 10-05-2018 Rs. 18.95 Lacs, 04-06-2018 Rs. 18.95 Lacs, 15-07-2018 Rs. 18.31 Lacs, 24-08-2018 Rs. 18.31 Lacs

3. EMPLOYEE BENEFITS

The present value of gratuity and leave encashment obligations is determined based on actuarial valuation by an independent expert, using the Projected Unit Credit Method, which recognizes 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.

4. CONTINGENT LIABILITES (Rs. in Lacs)

As at As at Particulars 31st MARCH, 2014 31st MARCH, 2013

Disputed demand of Income tax against which the Company has preferred appeal 28.44 73.19

Corporate Guarantee given* 1,190.00 -

Bills Discounted - 51.36

* The Company has provided Corporate Guarantee for an amount of Rs. 1190.00 Lacs in favour of Axis Bank Limited for the Term Loan provided to HMSU Rollers (India) Private Limited, a Joint Venture Company.

The Partners of Joint Venture Agreement have entered into an interse Memorandum of Understanding that though the Corporate Guarantee is being provided for 100% amount of Loan faciltiies availed by Joint Venture company, but in case of invocation of the guarantee by the lender, the risk will be borne by all partners in their share holding ratios only. Hence, the liability of the Company, if any, will be restricted to Rs. 238.00 Lacs (being 20% of total amount of Loan facilities).

5. SEGMENT REPORTING

The Company has identified two reportable segments viz (i) manufacture of engraved copper rollers and (ii) energy generation through wind mill.

The segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segment and amount allocated on a reasonable basis by management.

6. DISCLOSURES UNDER THE MSMED ACT, 2006

In the absence of any information from vendors regarding the status of their registration under the "Micro Small and Medium Enterprise Development Act 2006" the company is unable to comply with the disclosures required to be made under the said Act.

7. INTEREST IN JOINT VENTURE

The Company has entered into a Joint Venture Agreement with three Companies namely, Hannecard N.V., Mitex GMBH and Unimark International Private Limited to incorporate a Joint Venture Company in the name of HMSU Rollers (India) Private Limited on 1st February, 2012. The said Joint Venture Company is engaged in the manufacturing of Rubber Rollers and Poly Urethene Rollers. The Company has commenced its commercial operations with efffect from 18th April, 2013.

8. Figures of previous year have been regrouped / reclassified, wherever necessary, to make them comparable with current year figures.


Mar 31, 2013

1. BACKGROUND OF THE COMPANY

Shilp Gravures Limited is a public limited company, incorporated in 1993 under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange since 1995. The Company has set up, first gravure roller manufacturing house in India. The Company is engaged in engraving of rollers through three difference engraving technologies i.e. electronic, laser and chemical etching. The engraved rollers are using for printing and packaging industries.

2 CONTINGENT LIABILITES (Rs. in Lacs)

As at As at

Particulars 31st MARCH, 2013 31st MARCH, 2012

Disputed demand of Income tax against which the Company has preferred appeal 73.19 18.25

Bills Discounted 51.36 72.69

The Board of Directors have in their meeting held on 05th November, 2012 passed a resolution for providing Corporate Guarantee for an amount of Rs. 1190.00 Lacs in favour of Axis Bank Limited for the Term Loan provided to HMSU Rollers (India) Private Limited, a Joint Venture Company. However, an application is being made to Ministry of Corporate Affairs for sorting their prior approval before executing the said Corporate Guarantee. The application is still under process at Ministry.

The Partners of Joint Venture Agreement have entered into an interse Memorandum of Understanding that though the Corporate Guarantee is being provided for 100% amount of Loan faciltiies availed by Joint Venture company, but in case of any wrong event, the risk will be borne by all partners in their share holding ratios only. Hence, the liability of the company, if any, will be restricted to Rs. 238.00 Lacs (being 20% of total amount of Loan facilities).

3 SEGMENT REPORTING

The Company has identified two reportable segments viz (i) manufacture of engraved copper rollers and (ii) energy generation through wind mill.

The segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segment and amount allocated on a reasonable basis by management.

4 DISCLOSURES UNDER THE MSMED ACT, 2006

In the absence of any information from vendors regarding the status of their registration under the "Micro Small and Medium Enterprise Development Act 2006" the company is unable to comply with the disclosures required to be made under the said Act.

5 Balance of Receivables , Payables, and loans and advances to parties are subject to their confirmation. These balances therefore, subject to adjustment, if any , as may be required on settlement of these balances with the parties

6 Figures of previous year have been regrouped / reclassified, wherever necessary, to make them comparable with current year figures.


Mar 31, 2012

1. BACKGROUND OF THE COMPANY

Shilp Gravures Limited is a public limited company, incorporated in 1993 under the provisions of the Companies Act, 1956. Its shares are listed on the Bombay Stock Exchange since 1995. The Company has set up, first gravure roller manufacturing house in India. The Company is engaged in engraving of rollers through three difference engraving technologies i.e. electronic, laser and chemical etching. The engraved rollers are using for printing and packaging industries.

i) Terms/Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in indian (Rs. in Lacs). The dividend proposed by the Boad of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting.

During the year ended 31st March 2012, the amount of per share dividend recognised as distributions to equity shareholders was Rs.1.50 (31st March 2011 : Rs.1.25)

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

Secured

(i) Indian Rupee loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. 391.65 Lacs (P.Y. Rs. NIL). The loan is repayable in 60 Monthly installments of Rs.11.50 Lacs each including interest, from March, 2012. The loan is secured by exclusive charge over the new three windmills acquired out of the said loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(ii) Hire purchase finances for Car amounting to Rs. 5.02 Lacs (P.Y. Rs. Nil) is secured by hypothecation of the Car.

Unsecured

(iii) Unsecured loan amounting to Rs. 172.53 Lacs (P.Y. Rs. 169.38 Lacs) taken from Life Insurance Corporation of India. The loan is availed against Keyman Insurance Policies of the key employees of the Company. The same to be paid on or before the maturity of the respective Keyman Insurance Policy.

(i) Working capital loan from The Ahmedabad Mercantile Co. Op. Bank Ltd. of Rs. 715.32 Lacs (P.Y. Rs. 692.91 Lacs). The same is secured by present and future book debts and inventories of the Company, personal guarantee of some of the promoter directors and further secured by second charge over fixed assets held by The Royal Bank of Scotland.

(ii) Working capital loan from The Royal Bank of Scotland of Rs. 272.87 Lacs (P.Y. Rs. 268.54 Lacs). The same is secured by exclusive charge over entire fixed assets of the Company both present and future. Further, the loan has been guaranted by personal guarantee of all the promoter directors.

* There is no amount due and outstanding to be credited to Investor Education and Protection Fund

Secured

(a) Indian Rupee loan from CITI Bank amounting to Rs. 67.67 Lacs (P.Y. Rs. 135.33 Lacs). The loan is repayable in 12 Quarterly installments of Rs.16.92 lacs each excluding interest, from June, 2010. The loan is secured by exclusive charge over plant and machinery created out of that loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(b) Indian Rupee loan from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. 19.65 Lacs (P.Y. Rs. 50.56 Lacs). The loan is repayable in 24 Monthly installments of Rs.3.26 Lacs each including interest. The loan is secured by exclusive charge over entire movable plant and machinery acquired out of the said loan. Further, the loan has been guaranteed by the personal guarantee of some of the promoter directors.

(c) For nature of security of the loans from The Ahmedabad Mercantile Co-operative Bank Limited amounting to Rs. 103.40 Lacs (P.Y. Rs. Nil) and from financial institutions amounting to Rs. 3.75 Lacs (P.Y. Rs. 0.19 Lacs), refer note 5 (i) and (ii).

2 EMPLOYEE BENEFITS

The present value of gratuity and leave encashment obligations is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes 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.

The contribution expected to be made by the Company during the financial year 2012-13 has not been ascertained.

3 CONTINGENT LIABILITES (Rs.in Lacs)

As at As at Particulars 31st MARCH, 2012 31st MARCH, 2011

Disputed demand not acknowledged as debt against which the Company has 18.25 3.47 preferred appeal

Bills Discounted 72.69 50.17

4 SEGMENT REPORTING

The Company has identified two reportable segments viz (i) manufacture of engraved copper rollers and (ii) energy generation through wind mill.

The segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segment and amount allocated on a reasonable basis by management.

5 DISCLOSURES UNDER THE MSMED ACT, 2006

In the absence of any information from vendors regarding the status of their registration under the "Micro Small and Medium Enterprise Development Act 2006" the company is unable to comply with the disclosures required to be made under the said Act.

6 INTEREST IN JOINT VENTURE

The Company has entered into a Joint Venture Agreement with three Companies namely, Hannecard, Mitex Gummifabrik and Unimark International Private Limited to incorporate a Joint Venture Company in the name of HMSU Rollers (India) Private Limited on 1st February, 2012. The said Joint Venture Company will be engaged in the manufacturing of Rubber Rollers and Poly Urethene Rollers. The newly formed Company has yet not commenced its commercial operations. The Company has interests in the following jointly controlled entity:

7 ACQUISITION MADE DURING THE YEAR

In April 2011, the Company has entered into Joint Venture Agreement with Re S.p.A. Controlli Industriali, an Italy based Company to form a subsidiary named ReShilp Equipments (India) Private Limited with the main object to manufacture all types of Web Control & Reel Management systems and other related plants and machineries. The Company has acquired 51% stake in the said subsidiary Company. The subsidiary Company has commenced its commercial operations from 1st August, 2011.

8 PREVIOUS YEAR'S FIGURES

The company prepares and presents its finanical statment as per Schedule VI to the companies Act, 1956, as per applicable from time to time. In view of revision to the Schedule VI as per a notification issued during the year by the central Government, the financial statements for the financial year ended 31st March, 2012 have been prepared as per the requirements of the Revised Schedule VI to the Companies Act, 1956. The previous year figures have been accordingly regrouped / reclassified to confirm to the current year's classification.


Mar 31, 2011

1. Contingent liability towards income tax for the Assessment Year 2008-09 aggregating to Rs.3.47 lacs (P.Y. Nil) in respect of disallowance of depreciation, for which Company's appeal is pending.

2. Estimated amount of contracts remaining to be executed on capital accounts not provided for (Net of Advance) Rs.109.81 Lacs (P.Y. Rs.34.76 Lacs).

3. Term loans amounting to Rs.186.09 Lacs (P.Y. ? 535.59 Lacs) and working capital loans of Rs.268.54 Lacs (P.Y. Rs.184.42 Lacs) from The Royal Bank of Scotland are secured by exclusive charge over fixed assets created / to be created out of the said loan and further secured by mortgage of immovable properties situated at the registered office of the Company and personal guarantee of all the promoter directors.

During the year all the Credit facilities (Term Loans and Working Capital facilities) provided by Kalupur Commercial Co. Operative Bank Limited ("K.C.C.B") have been shifted to The Ahmedabad Mercantile Co. Operative Bank Limited. The term loan from The Ahmedabad Mercantile Co-operative Bank limited amounting to ? 50.56 Lacs (P.Y. Rs.100.29 Lacs from K.C.C.B) is secured by exclusive charge over entire movable plant and machinery acquired out of the said Loan and further secured by personal guarantee of some of the promoter directors.

Working capital loan from The Ahmedabad Mercantile Co. Op. Bank Ltd of Rs.692.91 Lacs (P.Y. Rs.447.51 Lacs from K.C.C.B) is secured by present and future book debts and inventories of the Company, personal guarantee of some of the promoter directors and further secured by second charge over fixed assets held by The Royal Bank of Scotland.

Working Capital Loan from the Standard Chartered Bank of Rs.150.00 Lacs (P.Y. Rs.375.00 Lacs) is secured by hypothecation of stock and book debts and personal guarantee of some of promoter directors.

Term loan from Citi Bank amounting to Rs.135.33 Lacs (P.Y. Rs.203.00 Lacs) is secured by exclusive charge over plant and machinery created out of that loan. Hire purchase finances are secured by hypothecation of respective assets.

Unsecured loan from financial institution amounting to Rs.169.37 lacs (P.Y. Rs.166.87 lacs) includes loan from Life Insurance Corporation of India which is availed against Keyman Insurance Policies of the key employees of the Company.

4. Employee Benefits

The present value of gratuity and leave encashment obligations is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes 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.

5. In the absence of any information from vender's regarding the status of their registration under the "Micro Small and Medium Enterprise Development Act 2006" the company is unable to comply with the disclosures required to be made under the said Act.

6. Balances of receivables, payables and loans and advances to parties are subject to their confirmations. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with the parties.

7. Related Party Disclosures:

a) Related parties and their relationship

Name of the related party Relationship

Mr. Ambar J. Patel Key Management Personnel

Mr. Roshan Shah Key Management Personnel

Mr. G.V. Bhavsar Key Management Personnel

Mr. Narendra Patil Individuals exercising significant influence over the enterprise Mr. Atul Vinchhi Individuals exercising significant influence over the enterprise

Dr. B. V. Patel Individuals exercising significant influence over the enterprise

Mr.Vitthaldas H. Patel Individuals exercising significant influence over the enterprise

Mr.Vishnu V. Patel Individuals exercising significant influence over the enterprise

Shilp Ultra-tech Pvt Ltd. Entity controlled by Key Management Personnel

Stylus Infrastructure Entity controlled by Key Pvt Ltd Management Personnel

Carol Enterprise Entity controlled by Key Management Personnel

Carol Entity controlled by Key Management Personnel

Mr. Deval A. Patel Relative of Key Management Personnel

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

9. Pursuant to the resolution passed by the Board of Directors in their meeting held on 3rd November, 2010, the Company has entered into Joint Venture Agreement on 18th April, 2011 with Re S.p.A. Controlli Industriali, an Italy based Company and incorporated a Joint Venture Company in the name of "ReShilp Equipments (India) Private Limited" with the main object to manufacture all types of Web Control & Reel Management systems and other related plants and machineries. The Company holds 51% of stake in the newly incorporated Joint Venture Company.


Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital accounts not provided for (Net of Advances) Rs. 34.76 Lacs (P.Y. Rs 49.00 Lacs).

2. The Company was a partner and held 51 % share in the profits/loss of M/s Shilp Gravures, a partnership firm engaged in the business of manufacturing chemical etched gravure rollers.

On April 16,2009 a deed of retirement / dissolution of partnership was entered into by the partners of the said partnership firm pursuant to which the partnership was dissolved w.e.f April 15, 2009. In accordance with the dissolution deed, the Company has taken over the business of the partnership firm as a going concern along with all the assets (including intangible assets) and liabilities as appearing in the books of account of the firm. All partners of the partnership firm other than the Company shall be paid amounts standing to the credit of their accounts as at April 15,2009 towards full and final settlement of their dues as partners upon the dissolution of the partnership firm. The partners are entitled to recover interest at the rate of 9% p.a. on the unpaid amount till April 15,2010 and thereafter the unpaid amount if any, shall carry interest at the rate of 11% p.a. Accordingly, the following assets and liabilities have been acquired by the Company

3. Term loans amounting to Rs 535.59 Lacs(P.Y. Rs. 709.60 Lacs) and working capital loans of Rs. 184.42 Lacs (P.Y. Rs. 69.82 Lacs) from ABN AMRO Bank are secured by exclusive charge over fixed assets created / to be created out of the said loan and further secured by mortgage of immovable properties situated at the registered office of the Company and further secured by personal guarantee of all the promoter directors.

Term loan from Kalupur Commercial Co-operative Bank Limited amounting to Rs. 100.29 Lacs (P.Y. Rs. 176.68 Lacs) is secured by exclusive charge over entire movable plant and machinery, both present and future lying at the factory premises of the Company at Baroda and further secured by personal guarantee of some of the promoter directors.

Working capital loan from Kalupur Commercial Co-operative Bank Ltd of Rs. 447.51 Lacs (P.Y. Rs. 417.49 Lacs) and from Standard Chartered Bank of Rs.375.00 Lacs (P.Y. Rs. 250.00 Lacs) are secured by present and future book debts and inventories of the Company and further secured by personal guarantee of some of the promoter directors.

Term loan from Citi Bank amounting to Rs. 203.00 Lacs (P.Y. Nil) is secured by exclusive charge over plant and machinery created out of that loan.

Hire purchase finances are secured by hypothecation of respective assets.

Unsecured loan from financial institution amounting to Rs. 166.87 lacs includes loan from Life Insurance Corporation of India which is availed against Keyman Insurance Policies of the key employees of the Company.

4. Employee Benefits

The present value of gratuity and leave encashment obligations is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes 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.

5. In the absence of any information from venders regarding the status of their registration under the "Micro Small and Medium Enterprise Development Act 2006" the company is unable to comply with the disclosures required to be made under the said Act.

6. Balances of receivables, payables and loans and advances parties are subject to their confirmations. These balances are therefore, subject to adjustments, if any, as may be required on settlement of these balances with the parties.

7. Disclosures in respect of assets acquired under lease and hire purchase arrangements:

The Company has taken vehicles on hire purchase financing and hire purchase installments amounting to Rs. 3.03 Lacs (P.Y. Rs.4.93 Lacs) have been charged to the profit and loss account. The future minimum hire purchase installments are as under:

8. During the year, a fire took place in the Companys factory premises at Rakanpur, resulting in partial destruction of stock, consumables, plant and machinery and building. The Company has lodged a claim with the insurance company and the surveyors report assessing the loss is awaited. Pending the settlement of the claim, the Company has accounted for loss of Rs 39.81 lacs pertaining to the partial destruction of stores, consumables and other materials. Necessary accounting entries in respect of the insurance claim and for the loss of plant and machinery and building will be passed in the year of settlement of claim with the insurance company.

9. Related Party Disclosures:

a) Related parties and their relationship Name of the related party [ Relationship

M/s.Shilp Gravures Associate Concern (taken over w.e.f 16th April, 2009

Mr. Ambar J. Patel Key Management Personnel

Mr. Roshan Shah Key Management Personnel

Mr. G.V. Bhavsar Key Management Personnel

Mr. Narendra Patil Individual exercising significant influence over the enterprise

Mr. Atul Vinchhi Individual exercising significant influence over the enterprise

10. Segment Reporting

The Company has identified two reportable segments viz (i) manufacture of engraved copper rollers and (ii) energy generation through wind mill. The segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segment and amount allocated on a reasonable basis by management. Disclosures required under AS 17 - Segment Reporting are as under: (figures in brackets represent previous year numbers)

11. Comparative figures of the previous year do not include the figures of M/s Shilp Gravures - a partnership firm which was acquired during the year. Consequently, to that extent the previous year figures are not comparable with the figures for the year ended on March 31,2010.

12. Previous year figures have been regrouped / rearranged wherever necessary.

13. Additional information pursuant to the provisions of Clause 3,4C and 4D of Part II of Schedule VI of the Companies Act, 1956.

The Ministry of Company Affairs, Government of India, vide its Order No. 46/1/2007-CL- III dated 8th February 2007 issued under Section 211(4) of the Companies Act, 1956 has exempted the Company from disclosures of quantitative details in the Profit and Loss Account under paras 3(i) (a), 3(ii)(a) and 3(ii)(b) of Part II, Schedule VI to the Companies Act, 1956.