Notes to Accounts of T & I Global Ltd.

Mar 31, 2018

Notes to Financial Statements for the year ended 31st March, 2018

Particulars	31st March 2018	31st March 2017	1st April 2016
	Rs.	Rs.	Rs.
Share Capital
Authorised Capital
1,00,00,000 (31.03.2017- 1,00,00,000, 01.04.2016 - 1,00,00,000)	100000000	100000000	100000000
Equity Shares of Rs. 10/- each.
Issued, Subscribed & Paid up Capital
50,67,700 (31.03.2017- 50,67,700 , 01.04.2016 - 50,67,700)	50677000	50677000	50677000
Equity Shares of Rs.10/- each fully paid up.

Details of shares in the company held by each sharehloder holding more than 5 per cent shares:

SI. No.	Name of the shareholder	31st March 2018		31st March 2017		1st April 2016
		No. of shares	% of shareholding	No. of shares	% of shareholding	No. of shares	% of shareholding
1	T & l Projects Ltd.	699099	13.8	699099	13.8	699099	13.8
2	Chaman Exports Ltd.	490467	9.67	490467	9.67	490467	9.67
3	Sangeet Bagaria	361510	7.7	361510	7.7	361510	7.7
4	Indu Bagaria	351507	6.94	351507	6.94	351507	6.94
5	Sajjan Bagaria	303310	5.98	303310	5.98	303310	5.98

Note 9 - EQUITY SHARE CAPITAL

The Company has only one class of Equity Share having a par value of Rs.10/- per share.Each shareholder of Equity Share is entitled to one vote. ln the event of the liquidation of the Company equity shareholders are eligible to receive the remaining assets of the company after distribution of all preferencial amount in proportion to their share holding.

Note 10 - RESERVES AND SURPLUS

	Reserves and Surplus				FVOCI equity Investments	Total
	Capital Reserve	Securities Premium Reserve	General Reserve	Retained Earnings
Balance at the beginning of the reporting period i.e. 1st April 2016	-	3,40,00,000	4,16,20,256	8,62,64,289	(5,41,412)	16,13,43,133
Profit for the year	-	-	-	2,12,01,743	-	2,12,01,743
Other comprehensive income	-	-	-	(6,85,209)	12,111	(6,73,098)
Total Comprehensive Income for the year	-	3,40,00,000	4,16,20,256	10,67,80,824	(5,29,301)	18,18,71,779
Transactions with owners in their capacity as owners:
Dividend paid	-	-	-	25,33,850	-	25,33,850
Dividened Tax Paid	-	-	-	5,15,892	-	5,15,892
Balance at the end of the reporting period i.e. 31st March 2017	-	3,40,00,000	4,16,20,256	10,37,31,082	(5,29,301)	17,88,22,037
Profit for the year				4,07,28,372		4,07,28,372
Other comprehensive income				1,78,056	2,15,105)	(37,049)
Total Comprehensive Income for the year		3,40,00,000	4,16,20,256	14,46,37,510	(7,44,406)	21,95,13,360
Transactions with owners in their capacity as owners:
Dividend paid		-		25,33,850		25,33,850
Dividened Tax Paid		-		5,15,892		5,15,892
Transfer to retained earnings						-
Balance at the end of the reporting period i.e. 31st March 2018		3,40,00,000	4,16,20,256	14,15,87,768	(7,44,406)	21,64,63,618

Nature and Purpose of Other Reserves

a) Securities Premium Reserve

Securities Premium Reserve is used to record the premium on issue of shares. The reserve is available for utilisation in accordance with the provisions of the Act.

b) General Reserve

General Reserve is created and utilised in compliance with the provisions of the Act.

c) Retained Earnings

Retained earnings represent accumulated profits earned by the Company and remaining undistributed as on date.

d) FVOCI Equity Investments

The Company has elected to recognise changes in the fair value of certain investments in equity instruments through other comprehensive income. These changes are accumulated within the FVOCI equity investments reserve. The company transfers from this reserve to retained earnings when the relevant equity securities are derecognised.

Note 11-SHORT TERM BORROWINGS

	31st March 2018	31st March 2017	1st April 2016
	Rs.	Rs.	Rs.
Secured Loan repayable on demand from bank
Packing Credit from bank	-	158151117	44841280
(Working Capital Loans from Standard Chartered Bank and HSBC Bank, secured by stocks/ Book)
Cash Credit from bank	-	-	11957186
(Working Capital Loans from Standard Chartered bank are secured by hypothecation of stocks, Book debts and personal guarantee of the directors of the company.)
From Corporates	142063147	95876454	65139428
	142063147	254027571	121937894

Note 12- TRADE PAYABLES

	31st March 2018	31st March 2017	1st April 2016
	Rs.	Rs.	Rs.
For Goods and Services	208883899	339894979	215896677
	208883899	339894979	215896677

Note 13 - OTHER FINANCIAL LIABILITIES

	31st March 2018	31st March 2017	1st April 2016
	Rs.	Rs.	Rs.
Unclaimed Dividend	3042763	2291361	2298836
Current maturity of Long term debt	769441	434179	1133544
	3812204	2725540	3432380

Note 14 - PROVISIONS

	31st March 2018	31st March 2017	1st April 2016
	Rs.	Rs.	Rs.
Provision for Employee Benefit
Provision for Leave encashment	572765	639938	525054
Provision for Gratuity Liability	2203513	2249051	1982997
Provision for Income Tax
Provision for Income Tax (Net of Advance Tax)	10369296	2707846	9033133
	13145574	5596835	11541184

Note 15- OTHER CURRENT LIABILITIES

	31st March 2018	31st March 2017	1st April 2016
	Rs.	Rs.	Rs.
Advances from Customers	175531553	103776499	71622132
Commission Payable	47571250	33419484	29182022
Royalty Payable	3820302	3820302	11285802
Government Statutory Dues	2225616	4057415	4043108
Employee Benefits Payable	63093	26095	54385
Sales Tax Deposit	373563	776690	272979
Claim Payable	18327294	18327294	-
Liabilities for Expenses	9627585	8999132	11706543
	257540256	173202911	128166971

Note 16 - REVENUE FROM OPERATIONS

	31st March 2018	31st March 2017
	Rs.	Rs.
SALE OF PRODUCTS
Export (Machinary)	844841218	1109188655
Indigenious (Machinary)	118877772	102658655
Indigenious (Tea)	138373202	145875775
TOTAL A	1102092192	1357723085
OTHER OPERATING REVENUE
Sale of Import Licence	13872011	5379412
Duty Draw Back	14093985	21116937
Installation & Service Charges	6720128	3379468
TOTAL B	34686124	29875817
TOTAL REVENUE FROM OPERATING BUSINESS	1136778316	1387598902

Note 17- OTHER INCOME

	31st March 2018	31st March 2017
	Rs.	Rs.
Interest Income	1772431	885718
Commission Earned	886460	-
Dollar Exchange Difference	23294048	(513529)
Dividend Received	18600	32312
Delivery Charges	-	380099
Misdcelleneous Receipts	-	30000
Subsidy Received	838014	1001364
Discount Received	2500	428580
Profit on Sale of Asset	252635	-
Profit on sale of Shares	210444	57449
TOTAL OTHER INCOME	27275132	2301993

Note 18 - COST OF MATERIALS CONSUMED

	31st March 2018	31st March 2017
	Rs.	Rs.
Opening Stock	16148860	15931460
Add : Purchases - Machinery Divn.	174670786	116573847
Add : Purchase - Green Leaf	39346575	37408412
Less : Closing Stock	(21127582)	(16148860)
TOTAL	209038639	153764859

Note 19 - COST OF MATERIALS CONSUMED

	31st March 2018	31st March 2017
	Rs.	Rs.
Cultivation Expenses	59770102	59890836
Wages & Allowances	1475033	1247003
Consumable Stores &Tools	1374732	678166
Carriage Inward	3934564	3362918
Power & Fuel	18504961	19197382
Processing Charges	8467422	10190777
Entry Tax	390991	606881
TOTAL	93917805	95173963

Note 20 - CHANGES IN INVENTORIES OF FINISHED GOODS, WORK IN PROGRESS AND STOCK IN TRADE

	31st March 2018	31st March 2017
	Rs.	Rs.
Opening Stock of Work in Progress	5235996	6772100
Opening Stock of Manufacturing Finished Goods	29653255	52243219
Opening Stock of Trading Finished Goods	10268415	7331005
TOTAL	45157666	66346324
Closing Stock of Work in Progress	11878586	5235996
Closing Stock of Manufacturing Finished Goods	17426752	29653255
Closing Stock of Trading Finished Goods	10053175	10268415
TOTAL	(39358513)	(45157666)
Net (Increase) / Decrease in Stock	5799153	21188658

Note 21 - EMPLOYEE BENEFIT EXPENSES

	31st March 2018	31st March 2017
	Rs.	Rs.
Salaries, Allowances & Bonus	35349208	31163518
Contribution to Provident Fund	5697735	5510300
Contribution to ESI	174414	101470
Staff Welfare	296659	831123
TOTAL	41518016	37606411

Note 22 - FINANCE COST

	31st March 2018	31st March 2017
	Rs.	Rs.
Interest on Hire Purchase	61681	81834
Interest to bank & other fmancial institution (On working capital borrowings valued at amotized cost)	15013118	11009925
TOTAL	15074799	11091759

Note 23 - SELLING EXPENSES

	31st March 2018	31st March 2017
	Rs.	Rs.
Tea Sale Expenses	1098338	3568548
Sales Promotion	1578508	1204976
Advertisement	68615	82311
Commission	30756504	25478960
Discount Allowed	1091499	8672177
Packing Charges	2073961	3058812
Export Expenses	10225557	20075229
Delivery & Forwarding	922752	744677
Warehouse Charges	655694	849132
Freight & Insurance	16991040	17851136
Travelling	18237264	12874979
TOTAL	83699732	94460937

Note 24 - ESTABLISHMENT EXPENSES

	31st March 2018	31st March 2017
	Rs.	Rs.
Rent	1260200	1329250
Insurance	361129	151880
General Expenses	14806970	12967512
Rates & Taxes	823155	690445
Auditors'' Remuneration	135000	159500
Postage & Telephone	1070370	1295831
Bank Charges	3370489	4394777
Legal & Professional Charges	10790974	4377493
Stock Exchange Listing Fees	287500	245000
Conveyance	1680302	1783573
Transportation Charges	8193094	14955140
Loss on Sale of Asset	-	154492
Claim as per Arbitration Award	-	18327294
Vehicle Up-keep Expenses	2553256	2462861
Sundry Balance Written Off	9169645	19048115
Repairs & Maintenance
-Machinery	982663	812322
- Building	332330	69055
- Others	1638954	1942003
Provision for Bad Debts	15000000	15000000
Donation	651000	1000000
TOTAL	73107031	101166543

Note 25 - NOTES ON ACCOUNTS

25.1 Contingent liability not provided for in the accounts for : Sales Tax Rs 6557164/- (Previous Year Rs.601808/-) not acknowledge as debt by the company for which company preferred appeal. Matter is pending with appellate authority.

25.2 Bank Guarantee outstanding Rs.197897624/- (Previous Year Rs.105999311 /-)

25.3 Balance confirmations from some of the debtors,creditors and material lying with third party are still awaited

25.4 The names of small scale industrial undertaking to whom company owes sums outstanding for more than 30 days as at Balance Sheet date are Hi-Tech Engineering Company, Tara Industries, Sanjay Engineering Works, N. M. Concern, S. C. Welding and S.B.M. Engineering Works

25.5 Information about operating segment as required under IND AS - 108 issued by Institute of Chartered Accountants of India.

	Tea Machinery Rs.	Tea Rs.	Total Rs.
1 . Segment Revenue (Net sales/income)	998405114	138373202	1136778316
	(1241723127)	(145875775)	(1387598902)
2. Segment Results	98911491	(17169011)	81742480
(Profit/loss before tax and interest)	(85011441)	(30007114)	(55004327)
Less : i) Interest	15013118	61681	15074799
	(11021973)	(69786)	(11091759)
ii) Other unallocable expenditure net of unallocable income
Total Profit before tax	83898376	(17230692)	66667684
	(73989468)	(30076900)	(43912568)
Other Information
Segment Assets	714156407	178429291	892585698
	(810647519)	(194688476)	(1005335995)
Segment Liabilities	613531178	11913902	625445080
	(763712671)	(12124287)	(775836958)
Share Capital & Reserve			267140618
			(229499037)
Total of Segment liabilities (b c)			892585698
			(1005335995)

b) Information about secondary business segment Revenue by geographical market

India

Outside India

Tea Machinery Rs.	Tea Rs.	Total Rs.
118877772	138373202	257250974
(102658655)	(109826794)	(404250534)
844841218	__	844841218
(585076913)	-	(585076913)

25.6 Related Party Disclosure

Related party disclosure under IND AS - 24 issued by the Institute of Chartered Accountants of India, The reauired informations are as under:

ii) Related Parties transactions during the year under review

Rs. in Lacs

Name	Relation	Nature of Transactions	Transection during the year	Outstanding Amount	Previous Year	Previous Year Outstanding
			Rs.	Rs.	Rs.	Rs.
Mr. Sajjan Bagaria	Executive Chairman	Remuneration	1620000	Nil	1620000	Nil
Mr. Vineet Bagaria	Managing Director	Remuneration	2376000	Nil	2376000	Nil
Mr. Viraj Bagaria	Director	Remuneration/ Higher Education	300000	Nil	2835801	Nil
Mr. Vishnu Baheti	CFO	Remuneration	598080	Nil	544947	Nil
Mrs. Sunita Baheti	Relative of CFO	Remuneration	156000	Nil	156000	Nil
Vineet Bagaria (HUF)	Relative of Directors	Rent	108000	Nil	108000	Nil
Mrs. Seema Bagaria	Relative of Directors	Rent	162000	Nil	162000	Nil
Sri Vineet Bagaria	Managing Director	Rent	300000	NIL	300000	Nil
Mrs. Indu Bagaria	Relative of Directors	Rent	114000	Nil	114000	Nil
T & l Projects Ltd.	Associate Company	Purchase/Sale	557907933	57944866	760240594	21649270
Chanman Exports Ltd.	Associate Company	Rent /Interest	13413653	2094288	6780395	NIL
Vertex Agro	Associated Firm	Purchase	5602340	5042157	5821140	6639817
Sky Touch Construction Pvt. Ltd.	Associate Company	Purchase	Nil	Nil	12126270	5459320

25.7 Basic and diluted earnings per share	For the year ended 31st March 2018	For the year ended 31st March 2017
	Rs.	Rs.
Profit after Tax	40728372	12064694
Number of Equity Shares of Rs.10/- each	5067700	5067700
Basic and Diluted earnings per share	8.04	4.18

25.8 Pursuant to IND AS - 12 Income tax, the Deferred tax of Rs.1060688/- for the year ended 31/03/2018 has been credited to Profit & Loss Account.

i) Key Management Personnel:

Name	Designation
Sajjan Bagaria	Executive Chairman
Vineet Bagaria	Managing Director

25.9 Foreign Currency Earnings and Outgoes	For 2017-18	For 2016-17
Expenditure in Foreign Currency	Rs.	Rs.
Foreign Travel	11041409	8034658
Commission	15527422	19785847
Royalty	-	7465500
Imported material	33468350	27756103
Earning in Foreign Currency
Export Goods calculated on FOB basis	967842317	692455850
25.10 Managerial Remuneration
Salary	4219200	3869667
Contribution to Provident Fund	274080	251280
Other Perquisites	420000	420000
	4913280	4540947

The above Managerial remuneration paid to whole time directors is in excess of limn prescribed under schedule v of the Companies Act 2013. Hence company have taken prior approval from central Government for excess payment of remuneration to managerial personnel from 1st August, 2013 for a period of five years.

25.11 Auditors'' Remuneration

Statutory Audit Fee	135000	149500
	135000	149500

25.12 Figures for the Previous year (put within brackets) have been regrouped / rearragned wnerever round necessary for comparable with those of the current year.

In terms of our report of even date attached

For D. K. Mitra & Co.
Chartered Accountants
Firm Reg. No. 328904E	For and on behalf of the Board
D. K. Mitra
Partner
Membership No. 017334	Sajjan Bagaria	Executive Chairman (DIN 00074501)
Kolkata	Vineet Bagaria	Managing Director (DIN 00100416)
Dated: 30th May 2018	Vishnu Baheti	Chief Financial Officer

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Mar 31, 2016

Note :

1. This form of Proxy in order to be effective should be duly completed and deposited at the Registered Office of the Company, not less than 48 hours before the commencement of the Meeting.

2. A Proxy need not be a member of the Company.

3. For the resolutions, Explanatory Statement and Notes, please refer to the Notice of the 26th Annual General Meeting.

4. A person can act as a proxy on behalf of member(s) not exceeding fifty and holding in the aggregate not more than 10% of the total share capital of the Company carrying voting rights. A member holding more than 10% of the total share capital carrying voting rights may appoint a single person as proxy and such person not acts as a proxy for any other person or shareholder.

---

Mar 31, 2015

1.1 RETIREMENT BENEFITS:

i) Defined Contribution Plan

The Company makes defined contribution to Government recognised Provident & other funds which are recognised in the Profit & Loss account. The Company's contribution to the aforesaid Provident Fund was Rs.4130589/- (Previous Year Rs. 3745489/-)

ii) Defined Benefit Plan (funded)

The employees' gratuity fund scheme managed by Life Insurance Corporation of India / Reliance General life insurance company limited is a defined benefit plan. The Insurance Companies makes payment to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment subject to maximum of Rs.10 Lacs. Vesting occurs upon completion of five years of service.

iii) Medical Insurance Premium Re-imbursement (unfunded)

The Company has a scheme of re-imbursement of medical expenses including medical insurance premium subject to a maximum of 5% of the Basic Salary to employees.

iv) Leave Encashment

As per the Company rules employees are entitled to get accumulated leave upto 30 days,which are encashed in the following year. An amount of Rs.510755/-(Previous Year 537376/-) accrued in this account as on 31/03/2015 has duly been provided.

1.2 Employees State Insurance

The company has paid Rs 185936/- (Previous year 213436/-) to ESI for F.Y 2014-15 which comprises Rs 50186 /- (Previous Year 57795/-) towards Employee's Contribution and and Rs 135750 /- (Previous Year Rs.155641/-) towards Employer's contribution

1.3 Contingent liability not provided for in the accounts for : Sales Tax Rs.4242009/- (Previous Year Rs.4570000/-) and Income Tax Rs 1183764/- (Previous Year 604000/-) not acknowledge as debt by the company for which company preferred appeal.Matter is pending with appellate authority.

1.4 Bank Guarantee outstanding Rs.66021659/- (Previous Year Rs.4138454/-)

1.5 In the opinion of Board of Directors, the diminution of market value of Quoted Investment are of temporary in nature as such diminution has not been considered in the Accounts under review.Quantum of diminution is Rs.906866/- (Previous Year Rs.4051045/-)

1.6 Balance confirmations from some of the debtors,creditors and material lying with third party are still awaited

1.7 The names of small scale industrial undertaking to whom company owes sums outstanding for more than 30 days as at Balance Sheet date are Hi-Tech Engineering Company,

1.8 Information about primary business segment as required under Accounting Standard 17 issued by Institute of Chartered Accountants of India.

1.9 Figures for the Previous year (put within brackets) have been regrouped / rearranged wherever found necessary for comparable with those of the current year.

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Mar 31, 2014

1 Term loan from Financial Institutions and Banks are secured by hypothecation of Vehicle

2a) Working Capital Loans from Standard Chartered bank and HSBC Bank are secured by hypothecation of stocks,Book debts and personal Guarantee of the Directors of the company.

2b) Working Capital Loans from Standard Chartered bank are secured by hypothecation of stocks,Book debts and personal Guarantee of the Directors of the company.

3 RETIREMENT BENEFITS:

i Defined Contribution Plan

The Company makes defined contribution to Government recognised Provident & other funds which are recognised in the Profit & Loss account. The Company''s contribution to the aforesaid Provident Fund was Rs.3745489/- (Previous Year Rs. 3634925/-)

ii Defined Benefit Plan (funded)

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India / Reliance General life insurance company limited is a defined benefit plan. The Insurance Companies makes payment to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment subject to maximum of Rs.10 Lacs. Vesting occurs upon completion of five years of service.

iii Medical Insurance Premium Reimbursement (unfunded)

The Company has a scheme of reimbursement of medical expenses including medical insurance premium subject to a maximum of 5% of the Basic Salary to employees.

iv Leave Encashment

As per the Company rules employees are entitled to get accumulated leave upto 30 days,which are encashed in the following year. An amount of Rs.537376/- accrued in this account as on 31/03/2014 has duly been provided.

4 Employees State Insurance

The company has paid Rs.213,436/- (Previous year 131847/-) to ESI for F.Y 2013-14 which comprises Rs.57,795/ - (Previous Year 35900/-) towards Employee''s Contribution and Rs.155641/- (Previous Year Rs.95847/-) towards Employer''s contribution

5 Contingent liability not provided for in the accounts for : Sales Tax Rs.4570000/- (Previous Year Rs. 45451286/-) and Income Tax Rs 604000/- (Previous Year 604000/-) forA.Y.2004-05 and Rs.NIL (Previous Year Rs.127000/-) for A.Y.2008-09 not acknowledged as debt by the company for which Company preferred appeal. Matter is pending before the appellate authority.

6 Bank Guarantee outstanding Rs.4138454/- (Previous Year Rs.26440218/-)

7 In the opinion of Board of Directors, the diminution of market value of Quoted Investment are of temporary in nature as such diminution has not been considered in the Accounts under review.Quantam of diminution is Rs 4051045/- (Previous Year Rs.3120519/-). The investment in Equity Shares of Efcon Securities Ltd and Prudential International Ltd., in view of the non-existence of the above mentioned companies, the amount is to be written of in the next financial year.

8 Balance confirmation from some of the debtors, creditors and material lying with third party are still awaited.

9 The names of small scale industrial undertaking to whom company owes sums outstanding for more than 30 days as at Balance Sheet date are Hi-Tech Engineering Company, Tara Industries, Sanjay Engineering Works, N. M. Concern, S. C. Welding and S.B.M. Engineering Works

10 Information about primary business segment as required under Accounting Standard 17 issued by Institute of Chartered Accountants of India.

11 Related Party Disclosure

Related party disclosure under Accounting Standard 18 issued by the Institute of Chartered Accountants of India. The required informations are as under: i) Key Management Personnel:

Name Designation

Sajjan Bagaria Executive Chairman

Vineet Bagaria Managing Director

Kalyan Kumar Nanda Executive Director (Marketing)

12 Figures for the Previous year (put within brackets) have been regrouped / rearranged wherever found necessary for comparable with those of the current year.

---

Mar 31, 2013

1.1 RETIREMENT BENEFITS: ,

i) Defined Contribution Plan

The Company makes defined contribution to Government recognised Provident & other funds which are recognised in the Profit & Loss account. The Company''s contribution to the aforesaid Provident Fund was Rs 3634925/-(Previous Year Rs.2348027/-)

ii) Defined Benefit Plan (funded)

The employees''gratuity fund scheme managed by Life Insurance Corporation of India / Tata AIG life insurance company limited is a defined benefit plan. The Insurance Companies makes payment to vested employees ortheir nominees upon retirement, death, incapacitation or cessation of employment subject to maximum of Rs. 10 Lacs. Vesting occurs upon completion of five years of service.

iii) Medical Insurance Premium Re-imbursement (unfunded)

The Company has a scheme of re-imbursement of medical expenses including medical insurance premium subject to a maximum of 5% of the Basic Salary to employees.

iv) Leave Encashment

As per the Company rules employees are entitled to get accumulated leave upto 30 days, which are encashed in the following year. An amount of Rs.453236/-accrued in this account as on 31/03/2013 has duly been provided.

1.2 Employees State Insurance

The company has paid Rs. 131847/-(Previous year 53199/-) to ESI for F.Y2012-13 which comprises Rs35900/ - (Previous Year 21002/-) towards Employee''s Contribution and Rs 95847/- (Previous Year Rs.32197/-) towards Employer''s contribution "

1.3 Contingent liability not provided forinthe accounts for:Sales Tax Rs.45451286/-(Previous Year Rs.17993739/ -) and Income Tax Rs 604000/- (Previous.Year 604000/-) for A.Y.2004-05 and Rs.1.27000/- (Previous Year Rs. 127000/-)) forA.Y.2008-09 not acknowledged as debt by the company for which Company preferred appeal. Matter is pending before the appellate authority.

1.4 Bank Guarantee outstanding Rs. 26440218/- (Previous Year Rs.6906000/-)

1.5 In the opinion of Board of Directors, the diminution of market value of Quoted Investment are of temporary in nature as such diminution has not been considered in the Accounts under review.Quantam of diminution is Rs 3120519/-(Previous Year Rs.1725474/-)

1.6 The names of small scale industrial undertaking to whom company owes sums outstanding for more than 30 days as at Balance Sheet date are Hi-Tech Engineering Company, Tara Industries, Sanjay Engineering Works, N. M. Concern, S. C. Welding and S.B.M. Engineering Works

1.7 Figures forthe Previous year (put within brackets) have been regrouped / rearragned wherever found necessary for comparable with those of the current year.

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Mar 31, 2012

1 Term loan from Financial Institutions and Banks are secured by hypothecation of Vehicle 2a) Working Capital Loans from Standard Chartered bank are secured by hypothecation of stocks,Book debts and personal Guarantee of the Directors of the company

2a) Working Capital Loans from Standard Chartered bank are secured by hypothecation of stocks,Book debts and personal Guarantee of the Directors of the company

3.1 Retirement Benefits

i Defined Contribution Plan

The Company makes defined contribution to Government recognised Provident & other funds which are recognised in the Profit & Loss account. The Company's contribution to the aforesaid Provident Fund was Rs 23.48 Lacs (Previous Year Rs.23.13 Lacs)

ii Defined Benefit Plan (funded)

The employees' gratuity fund scheme managed by Life Insurance Corporation of India / Tata AIG life insurance company limited is a defined benefit plan. The Insurance Companies makes payment to vested employees or their nominees upon retirement, death, incapacitation or cessation of employment subject to maximum of Rs.10 Lacs. Vesting occurs upon completion of five years of service.

iii Medical Insurance Premium Re-imbursement (unfunded)

The Company has a scheme of re-imbursement of medical expenses including medical insurance premium subject to a maximum of 5% of the Basic Salary to employees. The scheme is in the nature of Defined Benefit Plan.

v Leave Encashment

As per the Company rules employees are entitled to get accumulated leave upto 30 days,which are encashed in the following year. An amount of Rs.3.93 Lacs accrued in this account as on 31/03/2012 has duly been provided.

3.2 Employees State Insurance

The company has paid Rs.0.53 Lac (Previous year 0.42 Lac) to ESI for F.Y 2011-12 which comprises Rs.0.21 Lac (Previous Year 0.11 Lac) towards Employee's Contribution and and Rs 0.32 Lac (Previous Year Rs. 0.30 Lac) towards Employer's contribution

3.3 Contingent liability not provided for in the accounts for : Sales Tax Rs.157.65 Lacs (Previous Year Rs.128.28 lacs) and Income Tax Rs 6.04 lacs (Previous Year 6.04 lac) for A.Y.2004-05 and Rs.1.27 Lacs (Previous Year Rs.1.27 lacs) ) for A.Y.2008-09 not acknowledged as debt by the company for which Company preferred appeal. Matter is pending before the appellate authority.

3.4 Bank Guarantee outstanding Rs.69.06 lac (Previous Year Rs.48.30 lac)

3.5 In the opinion of Board of Directors, the diminution of market value of Quoted Investment are of temporary in nature as such diminution has not been considered in the Accounts under review.Quantam of diminution is Rs 17.25 lacs (Previous Year Rs.28.84 lacs)

3.6 The names of small scale industrial undertaking to whom company owes sums outstanding for more than 30 days as at Balance Sheet date are Hi-Tech Engineering Company, Tara Industries, Sanjay Engineering Works, N. M. Concern, S. C. Welding and S.B.M. Engineering Works

3.7 Figures for the Previous year (put within brackets) have been regrouped / rearragned wherever found necessary for comparable with those of the current year.

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Mar 31, 2010

1 (i) Contingent liability not provided for in the accounts for: Sales Tax Rs.128.28 lac (Previous YearRs.22.29 lac) and Income Tax Rs.6.04 lac (Previous Year 6.04 lac) for A.Y.2004-05 and Rs.1.27 Lac (nett)) for A.Y.2008-09 not acknowledged as debt by the company for which Company preferred appeal. Matter is pending before the appellate authority.

(ii) Bank Guarantee outstanding Rs.17.26 lac (Previous Year Rs.27.30 lac)

2 In the opinion of Board of Directors, the diminution of market value of Quoted Investment are of temporary in nature as such diminution has not been considered in the Accounts under review.Quantam of diminution is Rs 21.83 lac (Previous Year Rs.45.64 lac).

3 The names of small scale industrial undertaking to whom company owes sums outstanding for more than 30 days as at Balance Sheet date are Hi-Tech Engineering Company, Tara Industries, Sanjay Engineering Works, N. M. Concern, S. C. Welding and S.B.M. Engineering Works.

4. Related Party Disclosure

Related party disclosure under Accounting Standard 18 issued by the Institute of Chartered Accountants of India. The required informations are as under:

i) Key Management Personnel:

Name Designation

Sajjan Bagaria Executive Chairman

Vineet Bagaria Managing Director

Kalyan Kumar Nanda Executive Director (Marketing)

5. Figures for the Previous year (put within brackets) have been regrouped / rearragned wherever found necessary for comparision with those of the current year.