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Notes to Accounts of Shivalik Bimetal Controls Ltd.

Mar 31, 2015

1. COMPANY'S OVERVIEW

Shivalik Bimetal Controls Limited referred to as "Shivalik" is a widely-held public limited Company which was incorporated in the year 1984 and has been in commercial production since October 1986. "Shivalik's " manufacturing Units are located at Chambaghat, Solan, in the state of Himachal Pradesh, India. The Company's shares are listed on Bombay Stock Exchange.

"Shivalik" is engaged in the business of manufacturing & sales of Thermostatic Bimetal / Trimetal strips, components and other clad materials, EB welded products, Cold Bonded Clad Strips and Parts etc., The application of "Shivalik"s Products are mainly in Switchgears, Circuit Breakers and various other Electrical and Electronic devices. The Company's products are exported to over 40 Countries around the world.

2.1 Leasehold Land:

Leasehold Period: 95 years Leasehold Installment: Nil

2.2 In compliance with newly inserted para 46A of the Accounting Standard (AS)- 11 " The effect of changes in Foreign Exchange Rates", vide notification issued by the Ministry of Corporate Affarirs, the company has adjusted Rs.17836 thousands (Previous year Rs.894 thousands) to the cost of relevant fixed assets during the year.

@The company has initiated recovery proceedings against three irregular parties/ debtors which have been issued winding up directions or are under BIFR. Every possible efforts are being made for the recovery and management is of the belief that substantial amount will be recovered. However as a Prudent accounting policy/ practice an estimated amount has been provided as doubtful of recovery, in the Books of Account.

3.1 Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(I) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

- Employees' Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:

(II) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

The employees' Gratuity fund scheme has been managed by Life Insurance Corporation of India and the present value of obligation is determined by Independent Actuary using the Projected Unit Credit (PUC) 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 obligation for leave encashment is recognized in the same manner as gratuity. The Actuary has carried out the valuation based on the following assumptions:

4. Contingent Liabilities in respect of:

( Rs in '000) Particulars 2014-15 2013-14

(A) Contingent Liabilities

(I) Claim Against the Company Not - - Acknowledged as Debts

(II) Guarantees

a. Bank Guarantee(s) submitted 25,213 19,978

b. Letters of Credit established by the bank - 5,524

c. Corporate Guarantee(s) on behalf of Jv/ Associate 74,600 53,800 Company

d. Surety with Sales Tax Department 500 500

(III) Other Money for which the Company is Contingently Liable

a. Buyers Credit Interest payable 418 411

b. Interest on Customs/Excise Duty for surrender of import benefit on unrealised - 3,804 export proceeds

c. Customs duty on Material imported against Advance 8,685 52,808 License /EPCG Scheme, for pending export obligation

d. Bills Discounted - 10,862

(B) Commitments

(a) Estimated amount of contracts 33,396 14,051 (net of advances) exceeding

Rs 1.00 lakh in each case remaining to be executed on capital account and not provided for 33. The Company was issued SCNs (Show Cause Notices) w.r.t. admissibility of Cenvat Credit amounting to Rs.51,533 thousands of Service Tax availed (Previous Year Rs. 49,195 thousands) and Rs.1,787 thousands (Previous Year Rs. 1,787 thousands) towards cenvat credit of excise duty and Rs.345 thousands (Previous Year Rs. 345 thousands) towards demand of excise duty on "dies and tools written off" by the Company.

The Company has sought legal opinion on the stated issue and has been advised that the SCNs issued by the department are bad in Law as such not tenable. Accordingly , the company has submitted replies to the referred SCNs, however the final decision from the appropriate authority is pending.

5. Customs Duty not provided for in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs.25,142 thousands inclusive of Cenvatable amount of Rs. 19,229 thousands (Previous Year Rs.9,983 thousands inclusive of Cenvatable amount of Rs.7,583 thousands). However, the above policy has no impact on the operating results of the Company.

6. Foreign currency exposures (Net) that are not hedged by forward contracts as on 31st March, 2015 amount to Rs. 2,89,285 thousands (Previous year Rs.2,21,802 thousands).

7. The Company's activities involve predominantly one business segment i.e. Process and product Engineering, which are considered to be within a single business segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by AS 17- Segment Reporting, with respect to primary segments.

The Company has identified India and Rest of the World as geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced or in relation to which the sale is otherwise recognized. Assets other than receivables used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as these are used interchangeably between segments.All assets other than receivables against exports and stocks lying in warehouse at Germany, are located in India. The details of reportable segments are as under:-


Mar 31, 2014

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.1 The Company has only one class of shares referred to as Equity shares having par value of Rs.2/-. The holder of Equity Share is entited to one vote per share.

1.2 In the event of liquidation of the Company, the residual interest in the company''s assets shall be distributed to the shareholders in the proportion to the equity shares held.

* Rs.59,691 thousand comprises term loan of Rs.53,389 thousands which is secured by first charge on Plant & Machinery, both present and future and equitable mortgage of company''s Factory Leasehold Land and Building, situated at Chambaghat, Solan,(H.P) and vehicle loan of Rs. 6,302 thousands secured by hypothecation of vehicles.

#Classification of foreign currency loan has been made into Non - Current and Current, after taking into consideration the term loan availed by the company to square off buyers credit loan subsequent to the balance sheet date.

** Refer Note no. 11(a)

@Secured by hypothecation of stocks, movable properties and Book Debts, both present and future, and equitable mortgage of company''s Factory Leasehold Land and Building situated at Chambaghat Solan, Himachal Pradesh.

# As required under "Micro, Small and Medium Enterprises Development Act, 2006", the information available with the company relating to amount overdue at the end of the period on account of principal amount due is Rs.76888 (Previous year ''16630) and interest due thereon is Nil (Previous year Nil)

2.1 Leasehold Land:

Leasehold Period: 95 years Leasehold Installment: Nil

2.2 In compliance with newly inserted para 46A of the Accounting Standard (AS)- 11 "The effect of changes in Foreign Exchange Rates",vide notification issued by the Ministry of Corporate Affairs, the company has adjusted Rs.894 thousands (Previous year Rs.494 thousands) to the cost of relevant fixed assets during the year.

2.3 Capital Work-in-Progress (Unit-IV)

Amount incurred by the company towards installation of Plant & Machinery And the Site Developmemt in regard to Unit IV are appearing under the head Capital Work In Progress which would be capitalized on the remaining Plant and Machinery as and when completed and put to use, the details whereof are given below:

3.1 Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(I) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

- Employees'' Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

Contribution to Defined Contribution Plan, recognized are charged off for the year are as under:

(II) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

The employees'' Gratuity fund scheme has been managed by Life Insurance Corporation of India and the present value of obligation is determined by Independent Actuary using the Projected Unit Credit (PUC) 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 obligation for leave encashment is recognized in the same manner as gratuity. The Actuary has carried out the valuation based on the followings assumptions:

3.2 The company announced Voluntary Retirement Scheme (VRS) for its workers & staff and in response to the scheme, some emloyees opted for the same during the year. In compliance with the provisions of the AS-15 "Employee Benefits" the entire amount of Rs.36.25 lacs incurred by the company is charged to the Statement of Profit & Loss account under the head "Exceptional Items (Income)/Expenses."

33. Contingent Liabilities in respect of:

Rs in 000) Particulars 2013-14 2012-13

(A) Contingent Liabilities

Bank Guarantee(s) submitted 19,978 14,248

Letters of Credit established by the bank 5,524 - Bills Discounted 10,862 21,065

Customs duty on Material imported against 52,808 58,636 Advance License /EPCG Scheme, for pending export obligation

Interest on Customs/Excise Duty for surrender 3,804 3,804 of import

benefit on unrealised export proceeds

Corporate Guarantee(s) on behalf of JV/Associate 53,800 53,800 Company

Surety with Sales Tax Department 500 500

(B) Commitments

(a) Estimated amount of contracts 14,051 12,595 (net of advances) exceeding Rs.1.00 lakh in each case remaining to be executed on capital account and not provided for

4. The Company was issued SCNs ( Show Cause Notice''s) w.r.t. admissibility of Cenvat Credit amounting to Rs.49,195 thousands of Service Tax availed and Rs.2,132 thousands of cenvat credit of excise duty availed by the Company.

The Company has sought legal opinion on the stated issue and has been advised that the SCNs issued by the department are bad in Law as such not tenable. Accordingly , the company has submitted replies to the reffered SCNs,however the final decision from the appropriate authority is pending.

5. ''Customs Duty not provided for''in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs.9,983 thousands inclusive of Cenvatable amount of Rs.7,583 thousands (Previous Year Rs.22,898 thousands inclusive of Cenvatable amount of Rs.17,375 thousands). However, the above policy has no impact on the operating results of the Company.

6. Foreign currency exposures (Net Liabilities) that are not hedged by forward contracts as on 31st March, 2014 amount to Rs.2,20,563 thousands (Previous year Rs.2,22,350 thousands).

7. The Company''s activities involve predominantly one business segment i.e. Process and product Engineering, which are considered to be within a single business segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by AS 17- Segment Reporting, with respect to primary segments.

The Company has identified India and Rest of the World as geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced or in relation to which the sale is otherwise recognized. Assets other than receivables used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as these are used interchangeably between segments. All assets other than receivables are located in India.

8. "Related Party Disclosure" for the year ended 31st March, 2014 in accordance with Accounting Standard-18 issued by the Institute of Chartered Accountants of India:

(i) List of related parties where control exits and related parties with whom transactions have taken place and relationships:

Name of Related Party Relationship

Checon Shivalik Contact Solutions Pvt. Ltd. Joint Venture

Shivalik Bimetal Engineers Associates Pvt. Ltd. Innovative Clad Solutions Pvt. Ltd.

Mr. S. S Sandhu Mr. N. S. Ghumman Key Managerial Personnel (KMP) Mr. D. J. S. Sandhu Mr. Angad Sandhu

Mr. Kanav Anand Relative of Key Managerial Personnel Mr. Kabir Ghumman

TSL Holdings Ltd Angad Estates Pvt. Ltd. Enterprises over which Key Managerial Vishesh Credits Pvt. Ltd. Personnel are able to exercise significant Amar Engineering Company Pvt. Ltd. infuence Ultra Portfolio Management Pvt. Ltd. O.D.Finance and Investment Pvt.Ltd.

iii) The Company has entered into transactions with the related parties in terms of provisions of section 297 of the Companies Act, 1956 and in terms of the approval accorded by Ministry of Corporate Affairs, Government of India, in this regard.

9. Disclosure in respect of Joint Venture

The company''s Interest in the Joint Venture are reported as Long Term Investment (Note No.-14) and stated at cost. The Disclosure as per AS -27 in respect of Investment in Joint Venture is as under.


Mar 31, 2013

1. Company''s Overview

Shivalik Bimetal Controls Limited referred to as "Shivalik" is a widely-held public limited Company which was incorporated in the year 1984 and has been in commercial production since October 1986. "Shivalik''s" manufacturing Units are located in Distt. Solan, in the state of Himachal Pradesh, India. The Company''s shares are listed on Bombay Stock Exchange.

"Shivalik" is engaged in the business of manufacturing & sales of Thermostatic Bimetal / Trimetal strips, components and other clad materials, EB welded products, Cold Bonded Clad Strips and Parts etc., The application of "Shivalik"s Products are mainly in Switchgears, Circuit Breakers and various other Electrical and Electronic devices. The Company''s products are exported to over 40 Countries around the world.

2. The Company was issued SCNs ( Show Cause Notice''s) w.r.t. admissibility of Cenvat Credit amounting to Rs.48,149 thousands of Service Tax availed and also w.r.t. Excise Duty payable amounting to Rs. 345 thousands by the Company.

The Company has sought legal opinion on the stated issue and has been advised that the SCNs issued by the department are bad in Law as such not tenable. Accordingly , the company has submitted replies to the reffered SCNs,however the final decision from the appropriate authority is pending.

3. ''Customs Duty not provided for, in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs. 22,898 thousands inclusive of Cenvatable amount of Rs. 17,375 thousands (Previous Year Rs. 35,378 thousands inclusive of Cenvatable amount of Rs.27,301 thousands). However, the above policy has no impact on the operating results of the Company.

4. The company has applied for permission to surrender 100% EOU status of Unit III, to the appropriate authorities and has deposited Custom Duty and Excise Duty in lieu of the debonding of its 100% EOU for surrender of Import benefit on unrealised export proceeds. The request of the company for waiver of interest on Custom Duty/Excise Duty is pending with appropriate authorities, accordingly the same has been included under Contingent Liabilities.

5. Foreign currency exposures (Net Liabilities) that are not hedged by forward contracts as on 31st March, 2013 amount to Rs.2,22,350 thousands (Previous year Rs.2,74,005 thousands).

6. The Company''s activities involve predominantly one business segment i.e. Process and product Engineering, which are considered to be within a single business segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by AS 17- Segment Reporting, with respect to primary segments.

The Company has identified India and Rest of the World as geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced or in relation to which the sale is otherwise recognized. Assets other than receivables used in the Company''s business or liabilities contracted have not been identified to any of the reportable segments, as these are used interchangeably between segments. All assets other than receivables are located in India.


Mar 31, 2012

1. Company's Overview

Shivalik Bimetal Controls Limited referred to as "Shivalik" is a widely-held public limited Company which was incorporated in the year 1984 and has been in commercial production since October 1986. "Shivalik's" manufacturing Units are located in Distt. Solan, in the state of Himachal Pradesh, India. The Company's shares are listed on Bombay Stock Exchange.

"Shivalik" is engaged in the business of manufacturing & sales of Thermostatic Bimetal/Trimetal strips, components and other clad materials, EB welded products, Cold Bonded Clad Strips and Parts etc., The application of "Shivalik"s Products are mainly in Switchgears, Circuit Breakers and various other Electrical and Electronic devices. The Company's products are exported to over 35 Countries around the world.

2. Share Capital

2.1 The Company has only one class of shares referred to as Equity shares having par value of Rs. 2/-. The holder of Equity Share is entited to one vote per share.

2.2 In the event of liquidation of the Company, the residual interest in the company's assets shall be distributed to the shareholders in the proportion to the equity shares held.

3.1 Leasehold Land:

Leasehold Period: 99 years Leasehold Instalment: Nil

3.2 In compliance with the companies (Accounting Standard) amendment Rules, 2009 issued by the Ministry of Corporate Affairs vide Notification no.-G.S.R. 225(E) dated 31st March, 2009 and according to newly inserted paragraph of the Accounting Standard (AS)- 11 "The effect of changes in Foreign Exchange Rates", during the year the company has adjusted Rs. 995 thousands (Previous year Rs. 163 thousands) to the cost of relevant fixed assets. Out of Rs. 995 thousands, Rs. 460 thousands stands included in borrowing cost as per AS-16-"Borrowing Cost read with ASI-10".

4.1 Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(I) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

- Employees' Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

(II) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

5. Contingent Liabilities in respect of

(Rs. in '000)

Particulars 2011-12 2010-11

(A) Contingent Liabilities

Bank Guarantee(s) submitted 11,211 9,255

Letters of Credit established by the bank 18,033 20,803

Bills Discounted 17,843 15,269

Customs duty on Material imported against Advance License/

EPCG Scheme, for pending export obligation 62,350 6,827

Corporate Guarantee(s) on behalf of JV/Associate Company 55,800 20,100

Surety with Sales Tax Department 500 500

(B) Commitments

(a) Estimated amount of contracts (net of advances) remaining to be executed on capital account and not provided for 14,517 30,958

6. 'Customs Duty not provided for' in respect of materials lying in Bonded Warehouses/Materials in Transit as on Balance Sheet date, is of Rs. 35,378 thousands inclusive of Cenvatable amount of Rs. 27,301 thousands (Previous Year Rs. 23,927 thousands inclusive of Cenvatable amount of Rs. 18,950 thousands). However, the above policy has no impact on the operating results of the Company.

7. During the year the Company has made plans for changing the scope of operations carried out by "100% EOU" i.e. Unit-III. The erstwhile operations shall henceforth be continued by the other existing units of the company. As such the Company has applied for permission to surrender 100% EOU status of Unit-III.

8. Foreign currency exposures that are not hedged by forward contracts as on 31st March, 2012 amount to Rs. 2,74,005 thousands (Previous year Rs. 1,69,810 thousands).

9. The Company's activities involve predominantly one business segment i.e. Process and product Engineering, which are considered to be within a single business segment since these are subject to similar risks and returns. Accordingly, Process and Product Engineering comprise the primary basis of segmental information as set out in these financial statements, which therefore reflect the information required by AS 17- Segment Reporting, with respect to primary segments.

The Company has identified India and Rest of the World as geographical segments for secondary segmental reporting. Geographical sales are segregated based on the location of the customer who is invoiced or in relation to which the sale is otherwise recognized. Assets other than receivables used in the Company's business or liabilities contracted have not been identified to any of the reportable segments, as these are used interchangeably between segments. All assets other than receivables are located in India.

10. "Related Party Disclosure" for the year ended 31st March, 2012 in accordance with Accounting Standard-18 issued by the Institute of Chartered Accountants of India:

(i) List related parties where control exits and related parties with whom transactions have taken place and relationships:

Sl. No. Name of Related Party Relationship

1. Checon Shivalik Contact Solutions Pvt. Ltd. Joint Venture

2. Shivalik Bimetal Engineers Pvt. Ltd. Associates

3. Innovative Clad Solutions Pvt. Ltd.

4. Mr. S. S. Sandhu

5. Mr. N. S. Ghumman Key Managerial Personnel (KMP)

6. Mr. D. J. S. Sandhu

7. Mr. G. C. Prabhu Other Directors

8. Mr. Anil K Sud

9. Mr. Angad Sandhu

10. Mr. Kanav Anand Relative of Key Managerial Personnel

11. Mr. Kabir Ghumman

12. Brig. J. M. Singh

13. TSL Holdings Ltd Enterprises over which Key Managerial Personnel are able to exercise significant influence

14. Angad Estates Pvt. Ltd.

15. Vishesh Credits Pvt. Ltd.

16. Amar Engineering Company Pvt. Ltd.

11. Disclosure in respect of Associate(s)

Name of Company Country of % of Voting power held as at Incorporation 31 March, 2012 31 March 2011

Shivalik Bimetal Engineers Pvt. Ltd. India 45% 45%

Innovative Clad Solutions Pvt.Ltd.@ India 27% 33.33%

@Consequent to exist of a JV partner from Innovative Clad Solutions Pvt. Ltd.(ICS) (wherein there were three


Mar 31, 2010

1.(a) Contingent Liabilities in respect of:

(Rs. in Lacs)

Current Year Previous Year

i) Bank Guarantee(s) submitted 52.50 61.29

ii) Letters of Credit established by the bank 576.71 88.53

iii) Bills Discounted 159.14 75.70

iv) Custom duty on Material imported against Advance Licence / for pending export obligation 2.31 6.47

v) Corporate Guarantee on behalf of JV Company 121.00 121.00

vi) Surety with Sales Tax Department 3.00 2.00



2. The balances of Sundry debtors and Creditors are subject to confirmation; however, these are being reasonably moni- tored.

3. In the opinion of the management all the current assets, loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated and the provisions for all known liabilities have been adequately made in the accounts.

4. Balance with scheduled Banks in unclaimed dividend accounts amounting to Rs. 19.00 lacs (Previous year Rs. 18.00 lacs).

5. Custom Duty not provided for in respect of materials lying in Bonded Warehouses / Materials in Transit as on Balance Sheet date, is of Rs. 67.64 lacs inclusive of Cenvatable amount of Rs. 56.01 lacs (Previous Year Rs. 150.48 lacs inclusive of Cenvatable amount of Rs. 112.82). However the above policy has no impact on the operating results of the Company.

6. The financial risk mainly relating to changes in the exchange rates in respect of payables including firm commitments are hedged by forward contracts aggregating to Rs. 751.73 lacs (Previous Year Nil/-) outstanding as on March 31, 2010.

7. In compliance with the Notification dated March 31,2009 issued by Ministry of Corporate Affairs and according to the newly inserted paragraph 46 of the Accounting Standard -11 "The effect of Changes in Foreign Exchange Rates", the company has adjusted Rs. 1.25 lacs (Previous Year Nil/-) to the cost of relevant fixed assets. 8. "Related Party Disclosure" for the year ended 31st March, 2010 in accordance with Accounting Standard-18 issued by the Institute of Chartered Accountants of India:

(a) Related parties and their relationships

i) Key Management Personnel

Mr. S.S. Sandhu Chairman

Mr. N.S. Ghumman Managing Director

Mr. D. J.S. Sandhu Dy. Managing Director Others

Mr. Angad Sandhu Business Development Manager

Mr. Kanav Anand Asstt. General Manager - Marketing

Birg. J.M. Singh Executive Director



ii) Subsidiary Company

Shivalik Bimetal Engineers Pvt. Ltd.

iii) Joint Ventures

a) Checon Shivalik Contact Solutions Pvt. Ltd.

b) Innovative Clad Solutions Pvt. Ltd.

iv) Enterprises over which persons referred in (i) above, or their relatives, are able to exercise significant influence:-.

a) TSL Holdings Ltd.

b) Angad Estates Pvt. Ltd.

c) Vishesh Credits Pvt. Ltd.

9. Disclosure of Sundry Creditors under Current Liabilities is based on the information available with the Company regarding the status of suppliers as defined under the "Micro, Small and Medium enterprises Development Act, 2006". As per Information available with the Company amount overdue at the year end on account of principal amount is Rs. 72,429/- (Previous year Rs. 2,12,603/- and Nil (Previous year- Nil) interest is due thereon.

10. Disclosure pursuant to Accounting Standard (AS) 15 (Revised) "Employee Benefits":

The disclosures required under Accounting Standard 15 (revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

(i) Defined Contribution Plan

(a) Provident Fund

(b) State defined contribution plans

- Employees Pension Scheme 1995

The Provident Fund and State defined contribution plan are operated by the regional provident fund commissioner. Under the scheme, the company is required to contribute a specified percentage of payroll cost to the retirement benefit scheme to fund the benefits. These funds are recognized by the Income tax authorities.

(ii) Defined Benefit Plan

(a) Gratuity

(b) Leave Encashment

The employees Gratuity fund scheme has been managed by Life Insurance Corporation of India and the present value of obligation is determined by Independent Actuary using the Projected Unit Credit (PUC) 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 obligation for leave encashment is recognized in the same manner as gratuity. The Actuary has carried out the valuation based on the followings assumptions:

11. The corresponding figures of previous year have been regrouped/rearranged wherever found necessary, to conform to this years presentation

12. Additional information pursuant to the provisions of paragraphs 3 and 4 of part II of "Schedule VI of the Companies Act, 1956."



 
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