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Notes to Accounts of Stone India Ltd.

Mar 31, 2015

1. Terms and rights attached to equity shares:

The Company has one class of equity shares having par value of Rs 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation the equity shareholders are eligible to receive the remaining assets after discharging all liabilities of the Company, in proportion to their shareholding.

2. The Company has allotted 20,00,000 Warrants on a preferential basis to ISG Traders Limited, a Promoter Group Company on 17th October, 2013 entitling the allottee to apply for and obtain allotment in one or more tranches one Equity Share of Rs.10/- each at a price of Rs.17.50 per share against each such Warrant within 18 months from the date of allotment. Out of above, 5,75,000 and 6,50,000 equity shares ofRs 10/- each at a premium ofRs 7.50 each has been subscribed and allotted on 31st March, 2014 and 7th March, 2015 respectively, leaving a balance of 7,75,000 warrants which have been shown as above.

a) Term Loan from Indian Overseas Bank is secured by exclusive 1st charge on entire plant and machinery and other moveable fixed assets of the Company and equated mortgage of land and building of Nalagarh unit and 2nd pari passu charge on all the current assets of the Company both present & future and is repayable in 60 monthly instalments ofRs. 11.70 each starting from 30thjune, 2011 (increased to Rs. 12.39 from November, 2011) and 52 monthlyinstallment ofRs. 11.73 each startingfrom February, 2012.

b) Vehicle Loan is secured by hypothecation of vehicles and are repayable in 60 monthly instalments ofRs 0.77 starting from April 2012 and 60 monthly instalments ofRs 0.53 starting from May 2012.

c) Current maturities of above loans have been shown under note 10.

a) The development grant including Rs 44.00 (previous year Rs. 100.00) received during the year is for financial support from 'Department of Scientific & Industrial Research' (DSIR) for design and development of'Biological Toilet System' (BTS) (Product) under TDDP release and to be utilized for equipments and other related parts for the said project.

3. In terms of agreement with DSIR, the Company is required to pay annual royalty in lumpsum @26% of the grant so received to National Research Development Corporation(NRDC) on behalf of DSIR for a period of five years from the start of commercial sale of the product. Pending commencement of the commercial operation, no adjustment with respect to the royalty in terms of the agreement has been considered necessary.

4. In respect of demand for increase in rentals amounting to Rs. 228.97 (Previous year Rs 228.97) on leasehold land from Calcutta Port Trust in the earlier years, consequent to Special Leave Petition in Honble Supreme Court filed against the same, the matter has been referred back to the Hon'ble Calcutta High Court for a fresh decision on merit. Pending decision of the Court, eventhough total amount of the demand as on this date is presently not ascertainable, payments are being made as per the directions of the court and charged to the revenue. This along with the provision ofRs. 94.47 made thereagainst in earlier years has been considered adequate by the management. Adjustments required in this respect will be given effect to as finally determined.

a) Cash Credit from Banks are secured byway of Hypothecation of stocks and book debts and are futher secured by way of a second charge on the moveable fixed assets at Kolkata unit of the Company on a pari passu basis.

a) Necessary information from the suppliers required under Micro, Small and Medium Enterprise Development Act, 2006 were not available and as such the disclosure as required in Section 22 of the said Act could not be given in these accounts.

b) Trade payables includes due to related party Rs. 10.35 (Previous year Rs. 66.14).

5. Other liabilities include unbilled procurements, services, expenses etc

6. The Companyhas made full provision for dues to the ESI authorities arising out of the ESI Central - 2ndAmendment Rules, 1996 which has not been deposited with the ESI authorities because of a stay order issued by the Hon'ble Calcutta High Court on 25 April, 1997. Pending final decision and determination of liability in this respect, Rs 51.96 has been provided and includedunder Other Liabilities.

a) Capital advance include Rs. 88.69 being payment for technical knowhow, pending implementation thereof and settlement with party and consequential adjustments arising in this respect.

b) Rs. 208.14paid for technical knowhow, for "Rail Runner" project has also been shown as capital advance.

c) Advance to related parties include Rs. 1006.99 (Previous Year Rs. 1006.99) recoverable from Stone Intermodal Private Limited (SIPL) (a subsidiary) being administrative and other costs allocated and payment for know how etc. for "Rail Runner Project" to be undertaken by the said subsidiary and investment includes Rs 1.00 (Previous Year Rs 1.00) in the said subsidiary. Even though there have been delays in completion of the project, considering the Company's long term involvement with SIPL and the prospects thereof, the Company's exposure therein has been considered good and recoverable.

a) Work-in-Progress is arrived at after conversion of stocks at various stages of completion to equivalent completed production hours and have been valued at normal labour hour rates and allocated overheads apart from the material cost.

b) The valuation of both finished stock and work-in-progress includes allocable production overheads. The production overhead has been allocated on actual / pro-rata basis based on Management estimates of their direct or indirect linkage with production. As conversion to equivalent completed production hours and allocation as above is based on management's technical estimates, the auditors have relied upon the same.

c) Stocks of Rs. 234 lying with third parties are under reconciliation at the year-end and pending consequential adjustments, if any, arising in this respect.

d) Reconciliation of Inventory at different location were in process and pending this, provision of Rs. 467 made, has been considered adequate by the Management.

a) Remuneration paid/payable to Ex-managing Director amounting to Rs.231.19 (including Rs.44.44 for the year (Previous year Rs.75.17) are subject to approval from Central Government.

Remuneration to Managing Director amounting to Rs.33.67 included in Salaries and Wages (excluding performance Bonus of Rs.6.67 yet to be approved by the Board) is subject to approval of shareholders in the ensuing Annual General Meeting and Rs.19.67 being in excess of the prescribed limit is also pending from Central Goverment thereafter

b) Previous year's Salary and Wages was net of refund of Rs 62.10 by the Managing Director pursuant to order dated 29th August, 2013 of Ministry of Corporate Affairs against excess remuneration paid during the period from 1st October, 2009 to 30th September, 2012.

7. Contingent Liabilities and Commitments

Particulars As at As at 31.03.2015 31.03.2014

a) Claims against the Company not acknowledged as debts:

- Sales tax matters in dispute 106.87 94.90

- Service Tax matter in appeal (excluding interest & penalty) 54.70 54.70

- Demand raised by technology supplier for which the arbitration award is awaited 156.00 156.00

On basis of current status of individual cases, the management is of the view that no provision is required in these cases. Further cash outflow in respect of the items mentioned above is dependant upon outcome of final judgement/decision.

b) Commitments on Capital Accounts (net of advances):

Tangible Assets 14.58 10.43

8. Certain debit and credit balances including advances, accounts receivables, trade and other payables, certain bank balances and deposits are subject to confirmation and reconciliation thereof and also with subsidiary ledger. Adjustments required with respect to these will be carried out on ascertainment of amounts thereof.

9. Related Party Disclosures as per AS-18

(A) Related parties with whom the Company had transactions, etc.

a) Enterprise where control exists: Stone Intermodal Private Limited and Stone Biotech Private Limited (Subsidiaries)

b) Associates:

i) Odyssey Travels Limited

ii) Sewand Investments Pvt. Ltd

iii) Julex Commercial Co Ltd

iv) ISG Traders Limited

v) Duncans Industries Limited

c) KeyManagementPersonnel(KMP)

Mr. A. Mondal : Managing Director (upto 22.11.14)

Mr. D. Chakravarty : Managing Director (since 01.12.14)

Mr. S Goenka : Whole Time Director (Upto 14.08.2013)

i) In respect of above parties, there is no provision for doubtful debts as on 31st March 2015 and no amount has been written off or written back during the year in respect of debts due from / to them.

ii) The above Related Parties information is as identified by the Management and relied upon by the auditors.

32) During the year segments have been identified taking into account the nature of the products, the differing risks and returns, the organisational structure and internal reporting system.

a) Primary Segment in formation:

The Companyhas disclosed business segment as primary segment.

Types of products and Services in each business segment:

Rail product and services: comprising of manufacturing, selling and all other activities incidental thereto Biotoilet: comprising of manufacturing, servicing and maintenance thereof b) Secondary Segment Information

The company's operations are mainly confined within India and as such there are no reportable geographical segments.

Being the first year of segmental reporting, disclosure of comparative figures of the previous year is not applicable.

10. Employee Benefits:

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

a) Defined Contribution Scheme :

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

Employer's Contribution to Provident Fund- Rs. 45.25 (Previous Year Rs. 90.48)

Employer's Contribution to Pension Fund - Rs. 35.65 ( Previous Year Rs. 24.87)

Employer's Contribution to Superannuation Fund- Rs. 8.82 (Previous year Rs. 11.98)

Contribution towards Employees provident fund to company's own trust including shortfall with respect to interest on investments and that payable to employees, pending actuarial determination has fully been provided for in the accounts.

b) The employee's gratuity fund scheme is a defined benefit plan. The present value of obligation 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 obligation for Leave Encashment is recognized in the same manner as gratuity.

Assumptions related to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the period over which the obligation is expected to be settled

* Past Service Cost has been accrued on account of increase in the age limit from 58 years to 60 years and change in leave policy. In the previous year, Past Service Cost has been accrued on account of increase in the Ceiling Limit of Gratuityunder the Payment of GratuityAct, 1972 .

11. All the numerical figures stated hereinabove has been expressed in terms ofRs. in lacs

12. Previous year's figures have been re-arranged / re-grouped wherever necessary.


Mar 31, 2014

1. a) Terms and rights attached to equity shares:

The Company has one class of equity shares having par value of Rs 10/- per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation the equity shareholders are eligible to receive the remaining assets after discharging all liabilities of the Company, in proportion to their shareholding.

The Company has allotted 20,00,000 Warrants on a preferential basis to ISG Traders Limited, a Promoter Group Company on 17th October, 2013 entitling the allottee to apply for and obtain allotment in one or more tranches one Equity Share of Rs.10/- each at a price of Rs.17.50 per share against each such Warrant within 18 months from the date of allotment. Out of above, 5,75,000 equity shares of Rs 10 at a premium of Rs 7.50 each has been subscribed and allotted on 31st March, 2014, leaving a balance of 14,25,000 warrants which have been shown as above.

b) Term Loan from Indian Overseas Bank is secured by exclusive 1st charge on entire plant and machinery and other movable fixed assets of the Company and equated mortgage of land and building of Nalagarh unit and 2nd pari passu charge on all the current assets of the Company both present & future and is repayable in 60 monthly instalments of Rs. 11.70 each starting from 30th June, 2011 (increased to Rs. 12.39 from November, 2011) and 52 monthly instalments of Rs. 11.73 each starting from February, 2012.

c) Vehicle Loan is secured by hypothecation of vehicles and are repayable in 60 monthly instalments of Rs 0.77 starting from April 2012 and 60 monthly instalments of Rs 0.53 starting from May 2012.

d) Current maturities of above loans have been shown under note 9.

2) Contingent Liabilities and Commitments

Particulars As at As at 31.03.2014 31.03.2013 a) Claims against the Company not acknowledged as debts:

* Entry/Sales tax matters in dispute 94.90 70.21

* Service Tax matter in appeal 54.70 54.70 (excluding interest & penalty)

* demand raised by technology supplier for which the arbitration award is awaited 156.00 156.00

On basis of current status of individual cases, the management is of the view that no provision is required in these cases. Further cash outflow in respect of the items mentioned above is dependant upon outcome of final judgement/decision.

b) Commitments on Capital Accounts (net of advances):

Tangible Assets 10.43 16.38

27) Certain debit and credit balances including accounts receivables, trade and other payables and deposits are subject to confirmation and reconciliation. Adjustments required with respect to these will be carried out on ascertainment of amounts thereof.

Notes:

i) In respect of above parties, there is no provision for doubtful debts as on 31st March 2014 and no amount has been written off or written back during the year in respect of debts due from/to them.

ii) The above Related Parties information is as identified by the Management and relied upon by the auditors.

3) Employee Benefits:

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

a) Defined Contribution Scheme :

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

Employer''s Contribution to Provident Fund - Rs. 90.48 (Previous Year Rs. 48.54)

Employer''s Contribution to Pension Fund - Rs. 24.87 (Previous Year Rs. 25.26)

Employer''s Contribution to Superannuation Fund - Rs. 11.98 (Previous year Rs. 12.11)

Contribution towards Employees provident fund to company''s own trust including shortfall with respect to interest on investments and that payable to employees, pending actuarial determination has fully been provided for in the accounts.

Note:

Assumptions related to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the period over which the obligation is expected to be settled

* Past Service Cost has been accrued on account of increase in the age limit from 58 years to 60 years and change in leave policy. In the previous year, Past Service Cost has been accrued on account of increase in the Ceiling Limit of Gratuity under the Payment of Gratuity Act, 1972 .

4) The Company is engaged primarily in the business of "Rail Products" and all other activities are incidental thereto. The Company''s Bio-Toilet venture is in the process of implementation. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

5) All the numerical figures stated hereinabove has been expressed in terms of Rs. in lacs

6) Previous year''s figures have been re-arranged/re-grouped wherever necessary.


Mar 31, 2013

1) Contingent Liabilities and Commitments

Particulars As at 31.03.2013 As at 31.03.2012

a) Claims against the Company not acknowledged as debts:

- in respect of Sales tax matters under appeals at different levels 7,021 7,021

- in respect of Income tax matters in appeal at Hon''ble High Court at Kolkata 1,348 1,348

- Service Tax matter in appeal at CESTAT,

Kolkata (excluding Interest and Penalty) 5,470 ___

- demand raised by technology supplier for which the arbitration award is awaited 15,600 15,600

b) Commitments on Capital Accounts (net of advances):

Tangible Assets 1,638 1,881

Intangible Assets ___ 18,870



2) Certain debit and credit balances including accounts receivables, trade payables and loans &advances are subject to confirmation and reconciliation arising therefrom.

3) Related Party Disclosures:

(A) Name of related parties

(a) Enterprise where control exists: Stone Intermodal Private Limited and Stone Biotech Private Limited (Subsidiaries)

(b) Associates: i) Duncans Tea Limited ii) Odyssey Travels Limited iii) Shubh Shanti Services Limited iv) NRC Limited v) Sewand Investments Pvt. Ltd vi) Dail Consultants Ltd vii) Duncans Industries Ltd viii) Kavita Marketing Pvt. Ltd ix) Julex Commercial Company Ltd x) ISG Traders Limited xi) Continuous Forms (Calcutta) Limited

(c) Key Management Personnel (KMP)

Mr. A. Mondal : Managing Director & CEO

Mr. S. Goenka : Wholetime Director

(B) The parties listed in (b) above though not required to be disclosed as per requirements of AS-18, have been included hereinabove in view of the requirement of Clause 32 of the Listing Agreement.

4) Employee Benefits:

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

a) Defined Contribution Scheme :

Contribution to Defined Contribution Plan, recognized for the year are as under : Employer''s Contribution to Provident Fund – Rs. 4,854 (Previous Year Rs. 4,084) Employer''s Contribution to Pension Fund – Rs. 2,526 (Previous Year Rs. 2,547) Employer''s Contribution to Superannuation Fund – Rs. 1,211 (Previous Year Rs. 1,268)

b) Defined Benefit Scheme

The employee''s gratuity fund scheme is a defined benefit plan. The present value of obligation 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 obligation for Leave Encashment is recognized in the same manner as gratuity.

5) The Company is engaged primarily in the business of "Rail Products" and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are not material to become reportable for the purpose. Accordingly, the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

6) All the numerical figures stated hereinabove has been expressed in terms of Rs. in thousand.

7) Previous year''s figures have been re-arranged / re-grouped wherever necessary.


Mar 31, 2012

A) Loan taken from Indian Overseas Bank is secured by exclusive 1st charge on entire plant and machinery and other moveable fixed assets of the Company and equated mortgage of land and building of Nalagarh unit and 2nd pari pasu charge on all the current assets of the Company both present & future and is repayable in 60 monthly instalments of Rs. 1170/- each starting from 30 th June, 2011 (increased to Rs. 1239/- from November, 2011) and 52 monthly installment of Rs. 1173/- starting from February, 2012.

b) Loan taken from Orix Auto Infrastructure services Ltd. is secured against Plant & Machinery acquired against the said loan and is repayable in Rs. 48/- equated monthly instalments of Rs. 40/- each (starting from December 2007) and Rs. 888/- each (starting from February 2008).

c) Finance Lease obligation is secured against Cars taken on Finance Lease and is repayable in 60 monthly instalments of Rs. 39/- each starting from April 2007.

a) In respect of demand for increase in rentals amounting to Rs. 22,897 (Previous year and previous period Rs. 22,897) on leasehold land from Calcutta Port Trust in the earlier years, the Company has preferred a Special Leave Petition in Hon'ble Supreme Court against the judgment of Hon'ble High Court on the matter. The Supreme Court has referred the said matter to the Calcutta High Court for a fresh decision on merit. Pending decision of the Court, provision amounting to Rs. 9,448 made their against has been considered adequate by the management and included under 'Other Payables'.

b) The Company has made full provision for dues to the ESI authorities arising out of the ESI Central) - 2nd Amendment Rules, 1996 which could notbe deposited with the ESI authorities because of a stay order issued by the Calcutta High Court on 25 April, 1997. Upon appeal by the department, the stay order was set aside by the Division Bench of the Calcutta High Court on 16 March, 2004. In 2009-10, the company received a claim of Rs. 3,317 for the year ended 31st March 2002 against which it had deposited Rs. 1,306 and adjusted the liability to that extent. The balance liability of Rs. 5,196 has been carried forward under 'Other Payables' pending final decision and determination of liability in this respect and the same has been considered to be adequate.

a) The Deed Of Conveyance/Registration relating to building at Gopalpur, Orissa is in the process of being executed by the Company and the stamp duty payable in respect thereof will be accounted for on assessment. However, the said property is in the Company's possession.

b) Fixed Assets include flat at New Delhi in which the Company has one - third ownership share and is in the Company's joint possession.

c) Furniture, fittings and Electrical installations includes computer & computer peripherals.

* Items below Rs. 5000 each have been depreciated @ 100%

d) Carrying value of Fixed Assets of the Colour Monitor Unit at Kustia Road being affected due to obsolescence was considered for impairment as on 1st April, 2004 and Rs. 24,100 equivalent to the entire book value of the fixed assets was considered as an impairment loss in the said financial year.

e) Certain plant and machineries and land and building of the company as on 31.12.2001 and 01.01.2007 were revalued by the approved valuer on net replacement cost basis and fair value basis respectively and surplus of Rs. 424,965/- arising there from was credited to Revaluation Reserve. Depreciation includes additional charge of Rs. 6269/- for the year ended 31st March, 2012 (Previous year Rs. 9,149/-) due to revaluation of fixed assets. Accordingly, equivalent amount has been transferred from capital reserve to Profit and Loss Account.

a) Work-in-Progress is arrived at after conversion of stocks at various stages of completion to equivalent completed production hours and have been valued at normal labour hour rates and allocated overheads apart from the material cost.

b) The valuation of both finished stock and work-in-progress includes allocable production overheads. The production overhead has been allocated on actual/pro-rata basis based on Management estimates of their direct or indirect linkage with production. As conversion to equivalent completed production hours and allocation as above is based on management's technical estimates, the auditors have relied upon the same.

1) Contingent Liabilities and Commitments

Particulars As at 31.03.2012 As at 31.03.2011

Claims against the Company not acknowledged as debts:

- in respect of Sales tax matters in dispute 7,021 4,501

- in respect of Income matters in dispute 1,348 1,348

- demand raised by technology supplier for which the 15,600 15,600 arbitration award is awaited

Commitments on Capital Accounts (net of advances)

Tangible Assets 1,881 5,253

Intangible Assets 18,870 18,870

2) Certain debit and credit balances including trade receivables (Note 15), trade payables (Note 8), loans and advances (Note 13 &17) are subject to confirmation and reconciliation arising therefrom.

3) Related Party Disclosures:

(A) Related parties with whom the Company had transactions, etc.

(a) Enterprise where control exists: Stone Intermodal Private Limited and Stone Biotech Private Limited (Subsidiaries)

(b) Associates:

i) Duncans Tea Limited

ii) Odyssey Travels Limited

iii) Shubh Shanti Services Limited

iv) Andhra Cements Limited

v) NRC Limited

vi) Sewand Investments Pvt. Ltd

vii) Dail Consultants Ltd

viii) Duncan Industries Ltd

ix) Kavita Marketing Pvt. Ltd

x) Julex Commercial Pvt Ltd

(c) Key Management Personnel (KMP)

Mr. A. Mondal : Managing Director & CEO

Mr. S.V. Goenka : Wholetime Director

d) Relative of director/KMP : Mrs. Indu Goenka

(B) The parties listed in (b) above though not required to be disclosed as per requirements of AS-18, have been included hereinabove in view of the requirement of Clause 32 of the Listing Agreement.

(C) Statement showing details of AS-18 related transactions:

Notes:

i) In respect of above parties, there is no further provision for doubtful debts as on 31st March 2012 and no amount has been written off or written back during the year in respect of debts due from/to them.

ii) The above Related Parties information is as identified by the Management and relied upon by the auditors.

4) Employee Benefits:

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

a) Defined Contribution Scheme :

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

Employer's Contribution to Provident Fund - Rs. 4,084 (Previous Year Rs. 3,335)

Employer's Contribution to Pension Fund - Rs. 2,547 (Previous Year Rs. 2,408)

Employer's Contribution to Superannuation Fund - Rs. 1,268 (Previous Year Rs. 1,305)

b) Defined Benefit Scheme

The employee's gratuity fund scheme is a defined benefit plan. The present value of obligation 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 obligation for Leave Encashment is recognized in the same manner as gratuity.

Note:

a) Assumptions related to future salary increases, attrition, interest rate for discount and overall expected rate of return on Assets have been considered based on relevant economic factors such as inflation, market growth and other factors applicable to the period over which the obligation is expected to be settled.

b) Past Service Cost has been accrued on account of increase in the age limit from 58 years to 60 years and change in leave policy. In the previous year, Past Service Cost has been accrued on account of increase in the Ceiling Limit of Gratuity under the Payment of Gratuity Act, 1972.

c) Certain employees are deployed for various projects at the subsidiary and their salaries are debited to these companies. However, the amount of benefits like gratuity and leave encashment remains included in the cost as above.

5) The Company is engaged primarily in the business of "Rail Products" and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

6) All the numerical figures stated hereinabove has been expressed in terms of Rs. in thousand.

7) Previous year's figures have been re-arranged / re-grouped wherever necessary.


Mar 31, 2010

As at As at 31.03.10 31.03.09

1) Contingent Liabilities to the extent quantified:

Claims against the Company not acknowledged as debts

– in respect of Sales tax matters in dispute 5,974 5,974

– in respect of Income matters in dispute 1,607 —

2) a) Work-in-Progress arrived at after conversion of stocks at various stages of completion to equivalent completed production hours, which have been valued at normal labour hour rates and allocated overheads apart from the material cost.

b) The valuation of both finished stock and work-in-progress includes allocable production overheads. The production overhead has been allocated on actuals/pro-rata basis based on Management estimates of their direct or indirect linkage with production. As conversion to equivalent completed production hours and allocation as above is based on technical management estimates, the auditors have relied upon the same.

3) Certain debit and credit balances including debtors, creditors and loans and advances are subject to confirmation and reconciliation arising there from.

4) In respect of demand for increase in rentals amounting to Rs. 22,897 (Previous year Rs. 22,897) on leasehold land from Calcutta Port Trust in the earlier years, the Company has preferred a Special Leave Petition in Honble Supreme Court against the judgment of Honble High Court on the matter. The Supreme Court during the year has referred the said matter to the Calcutta High Court for a fresh decision on merit. Pending decision of the Court, provision amounting to Rs. 9,448 made their against has been considered adequate by the management.

5) The Company has made full provision for dues to the ESI authorities arising out of the ESI Central) – 2nd Amendment Rules, 1996 which could not be deposited with the ESI authorities because of a stay order issued by the Calcutta High Court on 25 April, 1997. Upon appeal by the department, the stay order was set aside by the Division Bench of the Calcutta High Court on 16 March, 2004. During the year the company has received a claim of Rs. 3,317 for the year ended 31st March 2002 against which it has deposited a sum of Rs 1,306 and adjusted the opening liability to that extent and the balance liability has been carried forward pending the final decision in this respect.

6) Related Party Disclosures:

(A) Related parties with whom the Company had transactions, etc.

(i) Enterprise where control exists: Stone Intermodal Private Limited (Subsidiary)

(ii) Associates:

i. Duncans Tea Limited

ii. Odyssey Travels Limited

iii. Shubh Shanti Services Limited

iv. Andhra Cements Limited

v. NRC Limited

vi. Sewand Investments Pvt. Ltd

vii. Dail Consultants Ltd

viii. Duncan Industries Ltd

ix. Kavita Marketing Pvt. Ltd

(iii) Key Management Personnel (KMP)

A. Mondal : Managing Director & CEO

Shrivardhan Goenka : Wholetime Director

(iv) Relative of director/KMP : Mrs. Indu Goenka

(B) The parties listed in (ii) above though are not required to be disclosed as per requirements of AS-18, these have been included hereinabove in view of the requirement of Clause 32 of the Listing Agreement.

7) Certain plant and machineries and land and building of the company as on 31.12.2001 and 01.01.2007 were revalued by the approved valuers on net replacement cost basis and fair value basis respectively and surplus of Rs. 424,965 arising there from was credited to Revaluation Reserve. Depreciation includes additional charge of Rs.10,052 for the year (Previous year Rs. 10,143) due to revaluation of fixed assets. Accordingly, equivalent amount has been transferred from capital reserve to Profit and Loss Account.

8) Employee Benefits :

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

Defined Contribution Scheme :

Contribution to Defined Contribution Plan , recognized for the year are as under : Employers Contribution to Provident Fund- Rs. 2,280 Employers Contribution to Pension Fund – Rs. 2,435 Employers Contribution to Superannuation Fund- Rs. 1,911

9) The Company is engaged primarily in the business of " Rail Products" and all other activities are incidental thereto. Further, the company sells primarily in the domestic market where its operations are governed by the same set of risks and returns and the overseas sales are insignificant. Accordingly the separate primary and secondary segment reporting disclosure as envisaged in Accounting Standards (AS-17) on Segment Reporting is not applicable to the company.

10) The company is in the process of compiling information with regard to suppliers covered under Micro, Small and Medium Enterprise development Act, 2006. To the extent identified, the Company has no information from the suppliers under the Act and accordingly the disclosure as required in Section 22 of the said Act could not be given in these accounts.

11) The Company is in the process of appointing a Whole time Company Secretary as required in terms of Section 383A of Companies Act, 1956.

12) Loans and advances includes Rs. 32,026 ( Previous Year Rs. 14,349 ) recoverable from Stone Intermodal Private Limited (a subsidiary) being administrative and other costs allocated for the development of the product for "Rail Runner Project" to be undertaken by the said subsidiary.

13) All the numerical figures stated hereinabove has been expressed in terms of thousand (Rs). (23) Previous Years figures have been re-arranged/re-grouped wherever necessary.

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