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Notes to Accounts of Simmonds Marshall Ltd.

Mar 31, 2015

1. Terms / Rights attached to shares:

The Company has only one class of equity shares having a par value of Rs. 2 per share. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. 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 preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

2. Additional information to secured / unsecured loans

The long term portion of term loans are shown under long term borrowings and current maturities (payable within twelve months) of long term borrowings are shown under the current liabilities as per disclosure requirement of the Revised Schedule VI.

A. Details of securities and Terms of payment

a. Under Consortium-4(I) (A) (i) (a)

(I) Details of Security

(i) First pari passu charge over present and future movable fixed assets of the company i.e. plant and machineries, equipments and entire block of assets other than specific assets financed by respective banks.

(ii) All loans are secured against the personal guarantee of Chairman.

(iii) Loan from ICICI is secured against the personal guarantee of Managing Director.

3. Details of Security: for Rupee Loan

(i) Working capital loans are secured against hypothecation of raw materials, finished goods, stores & spares, book debts etc. and entire block of assets (both present & future) in favour of consortium of banks on pari pasu other than specific assets financed by respective banks.

(ii) All loans are secured against the personal guarantee of Chairman.

4. Details of Security: For Foreign Currency Loan

(i) Working capital loans are secured against hypothecation of raw materials, finished goods, stores & spares, book debts etc. and entire block of assets (both present & future) in favour of consortium of banks on pari pasu other than specific assets financed by respective banks.

(ii) All loans are secured against the personal guarantee of Chairman.

Related party transactions

A. Details of related parties

Description of relationship Names of related parties

Subsidiary Stud India - Partnership Firm

Associate Company Formex Private Limited

Key Management Mr. S. J. Marshall (Chairman) Personnel (KMP) Mr. N. S. Marshall (Managing Director) Mr. I. M. Panju (Whole-Time Director) Mr. N. D. Bharucha (Chief Financial Offfker) Relatives of KMP Mrs. M. S. Marshall Mrs. K. I. Panju Mrs. K. J. Pandole Mrs. N. N. Bharucha

Company and Enterprises Corrodyne Coatiings Pvt.Ltd. in which KMP / Relatives

of KMP can exercise Desmet Ballestra (India) Pvt. Ltd. significant influence Diamtools Pvt. Ltd. Jiji Marshall Trading Co. Pvt. Ltd. J. N. Marshall & Co. (Steel Dept.) J. N. Marshall & Co. - Custom Flouse Clearing Agents J. N. Marshall & Co. (Engg. Dept.) J. N. Marshall Engineering Pvt. Ltd. J. N. Marshall Pvt. Ltd. Marshall Real Estate & Investment Corporation Powair Automation Equipments Pvt. Ltd. S.J. Marshall Trading Co. Pvt. Ltd. Spirax Marshall Ltd. Marshall Charitable Foundation

5. CONTINGENT LIABILITIES & COMMITMENTS NOT PROVIDED FOR

Particulars As at As at March 31,2015 March 31,2014 Rs. in Lakhs Rs. in Lakhs

(i) Other money for which the Company is contingently liable (a) Bills Discounted 223.78 70.88

(b) Bonds given against import of 1,361.78 1,888.71 machineries under EPCG scheme & Advance License

(c) Income Tax 47.83 44.46

(d) Guarantees 0.02 0.02

(ii) Estimated amount of contracts 20.23 179.48 remaining to be executed on capital account and not provided for Tangible assets

6. As per the requirement of the Companies Act, 2013, the company has reassessed the remaining useful life of the fixed assets taking into consideration the useful life prescribed in Schedule II of the Act and charged amount of Rs.20.51 lakhs to the Reserve and Surplus account.

7. During the year, the company has entered into an agreement with Francis Kirk & Son Ltd. UK, for acquiring exclusive right to use trade mark"Philidas" and to manufacture Industrial Fasteners for a period of 3 years for the purpose of export. The company has paid one time royalty of Rs.204.36 lakhs which has been shown as intangible asset in the fixed asset schedule and has been amortised over the agreement period of 3 years.

8. The company has introduced compensated absences policy for employees in the current year wherein it has also provided for the leave benefit to the employees for the earlier years services. The company has provided an amount of Rs.54.69 lacs for the compensated absences policy as per the actuarial valuation which is in accordance with the AS -15 issued by ICAI.

9. In compliance with Accenting Standards-2 (AS-2) revised, excise duty liability estimated at Rs. 108.33 lakhs (2013 - 2014 : Rs.48.02 lakhs) on finished goods lying in factory premises has been loaded on the valuation of Finished goods. However, it has no impact on the Profit and Loss Account. The Excise duty of Rs.60.31 lakhs related to the difference between the closing stock and opening stock is given effect in the Profit & Loss Account.

10. In the opinion of the management, inventories continue to have a realisable value of at least amount at which thay are stated in Balance sheet.

11. Balance of sundry debtors, loans & advances and sundry creditors balances are subject to confirmations, verification and adjustments necessary upon reconciliation thereof. Pending adjustments on confirmations, if any, it is shown as good in nature.

12. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2014

NOTE 1: SEGMENT REPORTING AS - 17

The Company''s business activity falls within a single primary business segment, viz. manufacture of Industrial Fastners such as nuts, bolts etc. As such there are no separate reportable segments as per Accounting Standard 17.

Note 2: RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18

Related party transactions

A. Details of related parties

Description of relationship Names of related parties

Subsidiaries STUD INDIA - Partnership Firm

Associate Company Formex Private Limited

Key Management Personnel (KMP) Mr. S. J. Marshall (Chairman)

Mr. N. S. Marshall (Managing Director)

Mr. I. M. Panju (Whole-Time Director) Relatives of KMP Mrs. M. S. Marshall

Mrs. K. I. Panju

Mrs. K. J. Pandole

Company in which KMP / Relatives of KMP can Corrodyne Coatings Pvt.Ltd.

exercise significant influence Desmet Ballestra (India) Pvt. Ltd

Diamtools Pvt. Ltd. Jiji Marshall Trading Co. Pvt. Ltd. J. N. Marshall & Co. (Steel Dept.) J. N. Marshall & Co. - Custom House Clearing Agents J. N. Marshall & Co. (Engg. Dept.) J. N. Marshall Engineering Pvt. Ltd. J. N. Marshall Pvt. Ltd.

Marshall Real Estates & Investment Corporation Powair Automation Equipments Pvt. Ltd. S. J. Marshall Trading Co. Pvt. Ltd. Spirax Marshall Ltd.

NOTE 3: LEASE TRANSACTIONS

The Company''s significant leasing arrangements are in respect of operating lease for premises and Vehicles. The period of agreement is generally for one year and is renewable by mutual consent. The aggregate lease rental expense are 162.05 lakhs (Previous year 149.43 lakhs)

NOTE 4: CONTINGENT LIABILITIES & COMMITMENTS NOT PROVIDED FOR

Particulars As at As at March 31, 2014 March 31, 2013 in Lakhs in Lakhs

(i) Other money for which the Company is contingently liable

(a) Bills Discounted 70.88 97.13

(b) Bonds given against import of machineries under EPCG scheme 1,888.71 1,186.81 & Advance License

(c) Income Tax 46.34 46.02

(d) Excise - 5.76

(e) Guarantees 0.02 0.02

(ii) Estimated amount of contracts remaining to be executed on - - capital account and not provided for Tangible assets

NOTE 5: DERIVATIVE FINANCIAL INSTRUMENTS

Derivative contracts entered into by the company and outstanding as on March 31, 2014 For hedging Currency and Interest Rate Related Risks

NOTE 6: UNSECURED LOANS FROM DIRECTORS

The company has relied on various judicial pronouncements and accordingly it has not considered the amount received from directors as deposits covered under Companies Deposit Acceptance Rule, 1975

NOTE 7

Capital Work in Progress shown in Fixed Assets schedule includes license to use software and related expenses of 16.68 lakhs (2012 - 2013 : 16.68 lakhs) pending implementation of ERP programme for smooth and efficient running of its business.

NOTE 8

In compliance with Accounting Standards-2 (AS-2) revised, excise duty liability estimated at 48.02 lakhs (2012 - 2013 : 64.72 lakhs) on finished goods lying in factory premises has been loaded on the valuation of Finished goods. However, it has no impact on the Profit and Loss Account. The Excise duty of 16.70 lakhs related to the difference between the closing stock and opening stock is given effect in the Profit & Loss Account.

NOTE 9

In the opinion of the management, inventories continue to have a realisable value of at least amount at which they are stated in Balance sheet.

NOTE 10

Balance of sundry debtors, loans & advances and sundry creditors balances are subject to confirmations, verification and adjustments necessary upon reconciliation thereof. Pending adjustments on confirmations, if any, it is shown as good in nature.

NOTE 11

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2013

1.1: Details of Security: For Rupee Loan

(i) Working capital loans are secured against hypothecation of raw materials, finished goods, stores & spares, book debts etc. and entire block of assets (both present & future) in favour of consortium of banks on pari pasu other than specific assets financed by respective banks.

(ii) All loans are secured against the personal guarantee of Chairman.

1.2: Details of Security: For Foreign Currency Loan

(i) Working capital loans are secured against hypothecation of raw materials, finished goods, stores & spares, book debts etc. and entire block of assets (both present & future) in favour of consortium of banks on pari pasu other than specific assets financed by respective banks.

(ii) All loans are secured against the personal guarantee of Chairman.

NOTE 2: SEGMENT REPORTING AS -17

The Company''s business activity falls within a single primary business segment, viz. manufacture of Industrial Fastners such as nuts, bolts etc. As such there are no separate reportable segments as per Accounting Standard 17.

Related party transactions A. Details of related parties

Description of relationship Names of related parties

Subsidiaries STUD INDIA - Partnership Firm

Associate Company Formex Private Limited

Key Management Personnel (KMP) Mr.S.J.Marshall (Chairman)

Mr. N.S. Marshall (Managing Director) Mr. I. M. Panju (Whole-Time Director)

Relatives of KMP Mrs. M. S.Marshall

Mrs. K. I. Panju Mrs. K.J. Pandole

Company in which KMP / Relatives of KMP can Corrodyne Coatiings Pvt.Ltd. exercise significant influence Desmet Ballestra (India) Pvt. Ltd.

Diamtools Pvt. Ltd. Jiji Marshall Trading Co. Pvt. Ltd. J. N. Marshall & Co. (Steel Dept.) J. N. Marshall & Co. - Custom House Clearing Agents J. N. Marshall & Co. (Engg. Dept.) J. N. Marshall Engineering Pvt. Ltd. J. N. Marshall Pvt. Ltd.

Marshall Real Estates & Investment Corporation Powair Automation Equipments Pvt. Ltd. S.J. Marshall Trading Co. Pvt. Ltd. Spirax Marshall Ltd.

NOTE 3: LEASE TRANSACTIONS

The Company''s significant leasing arrangements are in respect of operating lease for premises and Vehicles. The period of agreement is generally for one year and is renewable by mutual consent. The aggregate lease rental expense are Rs. 167.29 lakhs (Previous year Rs. 163.78 lakhs).

NOTE 4: DERIVATIVE FINANCIAL INSTRUMENTS

Derivative contracts entered into by the company and outstanding as on March 31, 2013

(i) For hedging Currency and Interest Rate Related Risks

Nominal amounts of derivative contracts entered into by the company and outstanding as on March 31,2013 amount to Rs. 633.91 lakhs (Previous Year Rs. 1360.77 lakhs). Category wise break up is given below:

NOTE 5: UNSECURED LOANS FROM DIRECTORS

The company has relied on various judicial pronouncements and accordingly it has not considered the amount received from directors as deposits covered under Companies Deposit Acceptance Rule, 1975.

NOTE 6

Capital Work in Progress shown in Fixed Assets schedule includes license to use software and related expenses of Rs. 16.68 lakhs (2011 - 2012 : Rs.16.68 lakhs) pending implementation of ERP programme for smooth and efficient running of its business.

NOTE 7

In compliance with Accounting Standards-2 (AS-2) revised, excise duty liability estimated at Rs. 64.72 lakhs (2011 - 2012 : Rs.51.68 lakhs) on finished goods lying in factory premises has been loaded on the valuation of Finished goods. However, it has no impact on the Profit and Loss Account. The Excise duty of Rs. 13.04 lakhs related to the difference between the closing stock and opening stock is charged to Profit & Loss Account under the head Rates and taxes - excluding Taxes on Income.

NOTE 8

In the opinion of the management, inventories continue to have a realisable value of at least amount at which they are stated in Balance sheet.

NOTE 9

Balance of sundry debtors, loans & advances and sundry creditors balances are subject to confirmations, verification and adjustments necessary upon reconciliation thereof. Pending adjustments on confirmations, if any, it is shown as good in nature.

NOTE 10

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2012

1.1: Terms / Rights attached to shares:

The Company has only one class of equity shares having a par value of Rs.2 per shares. Each holder of equity share is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting except in case of interim dividend. 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 preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholder.

(i) Details of Security

First pari passu charge over present and future movable fixed assets of the company i.e. plant and machineries, equipments and entire block of assets other than specific assets financed by respective banks.

All loans are secured against the personal guarantee of Chairman.

Loan form ICICI is secured against the personal guarantee of Managing Director.

(ii) Details of Security

Secured by first and exclusive charge on plant & machineries funded under the ECB. Each amount disbursed under ECB shall be repaid in 20 quarterly instalment and repayments will start after the moratorium period of 18 months from the date of first disbursement.

All loans are secured against the personal guarantee of Chairman and Managing Director.

2.1: Details of Security: For Rupee Loan

(i) Working capital loans are secured against hypothecation of raw materials, finished goods, stores & spares, book debts etc. and entire block of assets (both present & future) in favour of consortium of banks on pari pasu other than specific assets financed by respective banks.

(ii) All loans are secured against the personal guarantee of Chairman.

2.2: Details of Security: For Foreign Currency Loan

(i) Working capital loans are secured against hypothecation of raw materials, finished goods, stores & spares, book debts etc. and entire block of assets (both present & future) in favour of consortium of banks on pari pasu other than specific assets financed by respective banks.

(ii) All loans are secured against the personal guarantee of Chairman.

On the basis of information available with the company regarding total amount due to suppliers as covered under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31,2012 amounts to Rs. 140.67 lakhs ( 2010 -11 Rs. 144.64 lakhs). Since there were no overdues beyond the credit period extended to the company which is less than 45 days, no liability for payment of interest and related disclosures under the said Act, arose. This has been relied upon by the auditors.

(ii) Defined Benefit plan

A. The Company has defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on term not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation of India.

B. Details of defined benefit plan as per actuarial valuation report of LIC of India as at March 31, 2012 is as under:

The expected rate of return on the plan assets is based on the average long term rate of return expected on investments of the Fund during the estimated term of the obligations. The actual return on plan assets is Rs. 23.31 lakhs (2010-2011 18.08)

The assumption of the future salary increase, considered in actuarial valuation, takes into account the inflation, seniority, promotion and other relevant factors.

NOTE 3: SEGMENT REPORTING AS -17

The Company's business activity falls within a single primary business segment, viz. manufacture of Industrial Fastnerssuch as nuts, bolts etc. As such there are no separate reportable segments as per Accounting Standard 17.

NOTE 4: LEASE TRANSACTIONS

The Company's significant leasing arrangements are in respect of operating lease for premises and Vehicles. The period of agreement is generally for one year and is renewable by mutual consent. The aggregate lease rental expense are Rs. 163.78 lakhs (Previous year Rs. 91.99 lakhs)

NOTE 5: CONTINGENT LIABILITIES & COMMITMENTS NOT PROVIDED FOR

Particulars As at As at March 31,2012 March 31,2011 Rs in Lakhs Rs in Lakhs

(i) Other money for which the Company is contingently liable

(a) Bills Discounted 22.57 233.68

(b) Bonds given against import of machineries under EPCG scheme 1,132.14 891.24 & Advance License

(c) IncomeTax - 44.15

(d) Excise 5.76 5.76

(e) Professional Tax 4.58 4.58

(ii) Estimated amount of contracts remaining to be executed on 9.23 282.27 capital account and not provided for Tangible assets

NOTE 6: DERIVATIVE FINANCIAL INSTRUMENTS

Derivative contracts entered into by the company and outstanding as on March 31,2012

(i) For hedging Currency and Interest Rate Related Risks

Nominal amounts of derivative contracts entered into by the company and outstanding as on March 31,2012 amount toRs. 1360.77 lakhs (Previous Year NIL). Categroy wise break up is given below:

NOTE 7: UNSECURED LOANS FROM DIRECTORS

The company has relied on various case laws and accordingly it has not considered the amount received from directors as deposits covered under Companies Deposit Acceptance Rule, 1975

NOTE 8

Capital Work in Progress shown in Fixed Assets schedule includes license to use software and related expenses ofRs. 16.68 lakhs (2010 - 2011 : Rs. 16.68 lakhs) pending implementation of ERP programme for smooth and efficient running of its business.

NOTE 9

In compliance with Accounting Standards-2 (AS-2) revised, excise duty liability estimated at Rs. 51.68 lakhs (2010 - 2011 : Rs. 34.34 lakhs) on finished goods lying in factory premises has been loaded on the valuation of Finished goods. However, it has no impact on the Profit and Loss Account. The Excise duty ofRs. 17.34 lakhs related to the difference between the closing stock and opening stock is charged to Profit & Loss Account under the head Rates and taxes - excluding Taxes on Income.

NOTE 10

In the opinion of the management, inventories continue to have a realisable value of at least amount at which thay are stated in Balance sheet.

NOTE 11

Balance of sundry debtors, loans & advances and sundry creditors balances are subject to confirmations, verification and adjustments necessary upon reconciliation thereof. Pending adjustments on confirmations, if any, it is shown as good in nature.

NOTE 12

The Revised Schedule VI has become effective from April 1, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2011

As at As at 31-3-2011 31-3-2010 Rupees Rupees

1. (i) Contingent Liabilities not provided for:

(a) Bills discounted with Banks 2,33,68,092 1,24,99,379

(b) Bonds given by the company against import of machineries under EPCG scheme 8,91,24,000 6,19,24,000

(ii) Income Tax 44,15,428 44,15,428

(iii) Excise 5,76,293 5,76,293

(iv) Profession Tax 4,58,375 -

(v) Capital Commitments 2,82,26,810 -

2. Unsecured Loans include Loan from Directors 42,70,000 42,70,000 The Company has relied on various case laws and accordingly it has not considered the amount received from directors as deposits covered under Companies Deposit Acceptance Rule, 1975.

3. Capital Work in Progress shown in Fixed Asset Schedule includes hardware of Rs. 7,67,353/- and license to use software and related expenses of Rs. 16,67,748/- pending implementation of ERP programme for smooth and efficient running of its business.

4. In compliance with Accounting Standards-2 (AS-2) revised, excise duty liability estimated at Rs. 34,34,359/- (2009-2010 : Rs.18,76,086) on finished goods lying in factory premises has been loaded on the valuation of Finished goods. However, it has no impact on the Profit and Loss Account. The Excise duty of Rs. 15,58,273/- related to the difference between the closing stock and opening stock is charged to Profit & Loss Account under the head Miscellaneous expenses.

5. In the opinion of the management, inventories continue to have a realisable value of at least amount at which they are stated in Balance sheet.

6. Balance of Sundry Debtors, Loans & Advances and Sundry Creditors balances are subject to confirmations, verification and adjustments necessary upon reconciliation thereof. Pending adjustments on confirmations, if any, it is shown as good in nature.

7. On the basis of information available with the company regarding total amount due to suppliers as covered under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2011 amounts to Rs. 1,44,64,075 (2009 - 10 Rs. 7,67,193). Since there were no overdues beyond the credit period extended to the company which is less than 45 days, no liability for payment of interest and related disclosures under the said Act arose. This has been relied upon by the auditors.

VII. The expected rate of return on the plan assets is based on the average long term rate of return expected on investments of the Fund during the estimated term of the obligations. The actual return on plan assets is Rs. 18,08,296/-.

8. The Company's business activity falls within a single primary business segment, viz. manufacture of Nyloc Self Locking Nuts (Industrial Fastners). As such there are no separate reportable segments as per Accounting Standard 17.

9. RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18 RELATED PARTIES

A. (i) Associate Enterprises: N.A.

ii. Key Management Personnel

Mr. SJ. Marshall (Chairman)

Mr. N.S. Marshall (Managing Director)

Mr. I.M. Panju (Whole-Time Director)

iii. Relatives of Key Management Personnel

Mrs. M.S. Marshall

Mrs. K.I. Panju

Mrs. K.J. Pundole

iv. Enterprises in which Key Management Personnel have significant influence.

Desmet Ballestra (India) Pvt. Ltd.

Diamtools Pvt. Ltd.

Jiji Marshall Trading Co. Pvt. Ltd.

J. N. Marshall & Co. (Steel Dept.)

J. N. Marshall & Co. - Custom House Clearing Agents

J. N. Marshall & Co. (Engg. Dept.)

J. N. Marshall Engineering Pvt. Ltd.

J. N. Marshall Pvt. Ltd.

Marshall Real Estate & Investment Corporation

Powair Automation Equipments Pvt. Ltd.

S. J. Marshall Trading Co. Pvt. Ltd.

Spirax Marshall Ltd.

v. Associate Company

Formex Pvt. Ltd.

10. The Company's significant leasing arrangements are in respect of operating lease for premises and vehicles. The period of agreement is generally for one year and is renewable by mutual consent. The aggregate lease rental expense are Rs. 91,98,550/- (Previous year Rs.5,10,000/-)


Mar 31, 2010

As at As at 31-3-2010 31-3-2009 Rupees Rupees

1. (i) Contingent Liabilities not provided for:

(a) Bills discounted with Banks 1,24,99,379 15,23,010

(b) Bonds given by the company against import of machineries under EPCG scheme 6,10,24,000 5,58,13,000

(ii) Income Tax 44,15,428 23,01,730

(iii) Excise 5,76,293 5,76,293

2. Unsecured Loans include Loan from Directors 42,70,000 1,18,71,222 The Company has relied on various case laws and accordingly it has not considered the amount received from directors as deposits covered under Companies Deposit Acceptance Rule, 1975.

3. In compliance with Accounting Standards-2 (AS-2) revised, excise duty liability estimated at Rs.18,76,086 (2008-09 : Rs.24,94,732) on finished goods lying in factory premises has been loaded on the valuation of finished goods. However, it has no impact on the Profit and Loss Account.

4. In the opinion of the management, inventories continue to have a realisable value of at least amount at which they are stated in Balance sheet.

5. Balance of Sundry Debtors, Loans & Advances and Sundry Creditors balances are subject to confirmations, verification and adjustments necessary upon reconciliation thereof. Pending adjustments on confirmations, if any, it is shown as good in nature.

6. Advances due from Private company/Firms/Concerns in which the Directors of the Company are Directors/ Partners/Proprietors/Members:

7. On the basis of information available with the company regarding total amount due to suppliers as covered under Micro, Small and Medium enterprises Development Act, 2006, as at March 31, 2010 amounts to Rs.7,67,193 (2008 - 09 Rs.10,27,523). Since there were no overdues beyond the credit period extended to the company which is less than 45 days, no liability for payment of interest and related disclosures under the said Act arose. This has been relied upon by the auditors.

The managerial remuneration stated above does not include sitting fees of Rs.28,000/- (2008-09 Rs.20,000/-) paid to Non Executive Directors. Remuneration has been paid to Managing and Whole Time Directors as per schedule XIII of the Companies Act, 1956.

ii.Defined Benefit plan A. The Company has defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to gratuity on term not less favourable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with Life Insurance Corporation of India.

VII. The expected rate of return on the plan assets is based on the average long term rate of return expected on investments of the Fund during the estimated term of the obligations. The actual return on plan assets is Rs. 12,42,075/-.

8. The Companys business activity falls within a single primary business segment, viz. manufacture of Nyloc Self Locking Nuts {Industrial Fastners). As such there are no separate reportable segments as per Accounting Standard 17.

9. RELATED PARTY DISCLOSURES UNDER ACCOUNTING STANDARD 18 RELATED PARTIES

A. i. Associate Enterprises: N.A. ii.Key Management Personnel Mr. S.J. Marshall (Chairman) Mr. N.S. Marshall (Managing Director) Mr. I.M. Panju (Whole-Time Director)

iii.Relatives of Key Management Personnel Mrs. M.S. Marshal! Mrs. K.I. Panju Mrs. K.J. Pundole

iv.Enterprises in which Key Management Personnel have significant influence.

Desmet Ballestra (India) Pvt. Ltd.

Diamtools Pvt. Ltd.

Jiji Marshall Trading Co. Pvt. Ltd.

J. N. Marshall & Co. (Steel Dept.)

J. N. Marshall & Co. - Custom House Clearing Agents

J. N. Marshall & Co. (Engg. Dept.)

J. N. Marshall Engineering Pvt. Ltd.

J. N. Marshall Pvt. Ltd.

Marshall Real Estate & Investment Corporation

Powair Automation Equipments Pvt. Ltd.

Simmonds Marshall Ltd. - Employees Provident Fund

S. J. Marshall Trading Co. Pvt. Ltd.

Spirax Marshall Ltd.

v. Associate Company Formex Pvt. Ltd.

10. ADDITIONAL INFORMATION PURSUANT TO THE PROVISIONS OF PARAGRAPHS 3, 4C AND 4D OF PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956 :

11. The Previous Years figures have been re-grouped wherever necessary in order to conform the current years classification.

 
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