Notes to Accounts of W H Brady & Company Ltd.

Mar 31, 2018

I. Reconciliation of Balance Sheet as at 1st April, 2016

(Rs in Lacs)

	Particulars	Notes	Regrouped IND AS Previous GAAP Adjustments	As on April 01,2016
	ASSETS
1	Non Current Assets
	a Property, Plant and Equipment	3	262.75	262.75
	b Investment Property	4,D	3,411.48 2.44	3,413.92
	c Intangible Assets	5	1.06	1.06
	d Investment in Subsidiary	6	2,021.77	2,021.77
	e Financial Assets
	(i) Investment	7,C	101.60 60.91	162.51
	(ii) Trade Receivable	8	55.20	55.20
	f Income tax assets (net)	9	120.81	120.81
	g Deferred Tax Assets (Net)	10	19.14	19.14
	h Other non current assets	11	0.10	0.10
2	Current Assets
	a Inventories	12	411.35	411.35
	b Financial Assets
	Investment
	(i) Trade Receivable	13	365.37	365.37
	(ii) Cash and cash equivalents	14	7.51	7.51
	(iii) Bank Balance other than (iii) above	15	94.15	94.15
	(iv) Other Financial Assets	16	16.05	16.05
	c Other Assets	17	635.05	635.05
	d Income tax assets (net)	18	25.52	25.52
	Total		7,548.91 63.35	7,612.26
	EQUITY AND LIABILITIES
1	Equity
	a Equity Share Capital	19	255.00	255.00
	b Other Equity	20,A,B,C	4,979.88 86.37	5,066.25
2	Non Current Liabilities
	a Financial liabilities
	(i) Borrowings	21	903.58	903.58
	(iii) Trade payables	22	63.63	63.63
	(ii) Other Financial liabilities	23,A	513.67 (101.52)	412.15
	b Provisions	24	23.83	23.83
	c Other non current liabilities	25	101.52	101.52
3	Current Liabilities
	a Financial liabilities
	(i) Borrowings	26	243.94	243.94
	(i) Trade payables	27	210.04	210.04
	(iii) Other financial liabilities	28	248.47	248.47
	b Other current liabilities	29	77.67	77.67
	c Provisions	30,B	29.20 (23.02)	6.18
	Total		7,548.91 63.35	7,612.26

Reconciliations between previous GAAP and Ind AS

II. Reconciliation of Balance sheet as at 31st March, 2017

(Rs in Lacs)

	Particulars	Notes	Regrouped IND AS Previous GAAP Adjustments	As on 31st March, 2017
	ASSETS
1	Non Current Assets
	a Property, Plant and Equipment	3	265.24	265.24
	b Investment Property	4,D	3,210.92 0.94	3,211.86
	c Intangible Assets	5	3.50	3.50
	d Investment in Saubsidiary	6	2,021.76	2,021.76
	e Financial Assets
	(i) Investment	7,C	101.60 88.20	189.80
	(ii) Trade Receivable	8	92.57	92.57
	f Income tax assets (net)	9	110.03	110.03
	g Deferred Tax Assets (Net)	10	14.45	14.45
	h Other non current assets	11	0.09	0.09
2	Current Assets
	a Inventories	12	312.69	312.69
	b Financial Assets
	(i) Trade Receivable	13	329.98	329.98
	(ii) Cash and cash equivalents	14	13.00	13.00
	(iii) Bank Balance other than (iii) above	15	33.01	33.01
	(iv) Other Financial Assets	16	63.11	63.11
	c Other Assets	17	690.16	690.16
	d Income tax assets (net)	18	24.36	24.36
	Total		7,286.49 89.14	7,375.63
	EQUITY AND LIABILITIES
1	Equity
	a Equity Share Capital	19	255.00	255.00
	b Other Equity	20,A,B,C	5,104.60 92.64	5,197.24
2	Non Current Liabilities
	a Financial liabilities
	(i) Borrowings	21	697.41	697.41
	(iii) Trade payables	22	58.90	58.90
	(ii) Other Financial liabilities	23,A	545.79 (72.88)	472.91
	b Provisions	24	25.78	25.78
	c Other non current liabilities	25	69.40	69.40
3	Current Liabilities
	a Financial liabilities
	(i) Borrowings	26	256.07	256.07
	(i) Trade payables	27	15.90	15.90
	(iii) Other financial liabilities	28	249.37	249.37
	b Other current liabilities	29	71.99	71.99
	c Provisions	30	5.66	5.66
	Total		7,286.49 89.14	7,375.63

I. A. Reconciliation of Equity

(Rs in Lacs)

Particulars	Notes	As on 31st March, 2017	As on 1st April, 2016
Total Equity under Previous GAAP Adjustments impact: Gain/ (Loss) Commision - Direct cost attributable to asset capitalised	4,D	5,359.60 2.44	5,234.88 2.44
Provision for Dividend reversed	20,B	-	19.13
Provision for tax on Dividend reversed	20,B	-	3.89
As per reconciliation of Statement of Profit and Loss	III B	3.50	-
Recognised in OCI
Actuarian Loss on defined benefit plan	E	(1.52)	-
Remeasurement of Fair Value of Investments	6,C	88.20	60.91
Total Equity Under Ind AS		5,452.24	5,321.25
III. B. Reconciliation of Statement of Profit and Loss for the year ended March 31, 2017			(Rs in Lacs)
Particulars	Regrouped Notes Previous GAAP	IND AS Adjustments	For the Year ended 31st March, 2017
Revenue from operations	31 2,201.41	52.79	2,254.21
Other income	32 58.85	-	58.85
Total Income (A)	2,260.26	52.79	2,313.06
Expenses
Cost of materials consumed	33 1,080.05	-	1,080.05
Changes in Inventories of Finished Goods, Work-in-Progress and Stock-in-Trade	34 (46.60)		(46.60)
Employee benefit expenses	35,E 236.01	(1.52)	234.48
Finance cost	36,A 90.63	49.31	139.94
Depreciation and amortisation expenses	91.75	-	91.76
Other expense	37,D 407.21	1.50	408.71
Total expenses (B)	1,859.04	49.29	1,908.32
Profit before exceptional item and tax (A-B)	401.23	3.50	404.74
Exceptional item
Profit before tax	401.23	3.50	404.74
Tax expense
a) Current tax	86.00	-	86.00
b) Deferred tax	4.69	-	4.69
c) Taxes related to earlier years	(1.55)	-	(1.55)
Profit/ (loss) for the year	312.09	3.50	315.60
Other Comprehensive Income
A (i) Items that will not be reclassified to Profit or Loss
Remeasurement gains of defined benefit plan		(1.52)	(1.52)
Remeasurement gains of Investments at Fair Value		27.29	27.29
(ii) Income tax relating to items that will not be reclassified to Profit or Loss -		-
B (i) Items that will be reclassified to profit or Loss		-	-
(ii) Income tax relating to items that will be reclassified to Profit or Loss		-	-
Total Other Comprehensive Income		25.77	25.77
Total Comprehensive Income for the year	312.09	29.27	341.37

III. C. Reconciliation of Statement of Cash Flow

There were no material differences between the Statement of Cash Flows presented under Ind AS and the Previous GAAP.

Notes forming part of the financial statements for the year ended March 31, 2018 Notes on reconciliation

A Financial liabilities at amortised cost

Under previous GAAP, financial liabilities were initially recognized at transaction price. Subsequently, any finance cost were recognized based on contractual terms. Under Ind AS, such financial instruments are initially recognized at fair value and subsequently arrived at amortised cost determined using the effective interest rate. Any difference between transaction price and fair value affects profit and loss unless it quantifies for recognition as some other type of liability.

B Proposed dividend

Under the previous GAAP, dividends proposed by the Board of Directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, proposed dividend was recognized as a liability. Under Ind AS, such dividends are recognized when the same is approved by the shareholders in the general meeting

C Financial instruments carried at fair value through profit and loss or through other comprehensive income

Under previous GAAP, investments in long-term equity instrument were carried at cost and tested for other than temporary diminution. Under Ind AS, such investments are carried at fair value through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI) (except for investment in subsidiary).

D Investment property

Under Previous IGAAP, as per Accounting Standard Property, Plant & Equipment is recognised at cost less depreciation. However under Ind AS 101, allows entity to measure Property, Plant & Equipment on the transition date at its fair value or previous IGAAP carrying value (book value) as deemed cost.

The company has elected to measure Investment Property at deemed cost as per Previous IGAAP.

Expenses directly attributable to Investment Property has been capitalised and recognised as expense in Profit & Loss Account over the period on the same basis as income.

E Defined benefit plan

Under Ind AS, remeasurement i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined liability, are recognised in other comprehensive income instead of Statement of Profit and Loss in previous GAAP.

As per our Report of even date For and on behalf of	For and on behalf of the Board of Directors
S S Rathi & Co.	Pavan G. Morarka Vaibhav P. Morarka		Rajiv Kumar Bakshi
Chartered Accountants	Chairman & Managing Director Director		Director
Firm Regn. No. 108726W	DIN: 00174796 DIN : 01630306		DIN : 00264007
D. P. Rathi	R. K. Sharma	Khushmeeta Bafna
Partner	Chief Financial Officer	Company Secretary
Membership No. 042068
Mumbai : May 30, 2018	Mumbai : May 30, 2018

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Mar 31, 2016

Contingent Liabilities are not provided for and are disclosed by way of Notes.

1 The Board of Directors at its meeting held on 20th May 2016 have recommended payment of Dividend ofRs, 19.13 Lacs (Previous year Rs, 25.50 Lacs) @ Rate of Rs, 0.75/-per share (Previous year Rs, 1.00/-per share)

2 Confirmations for credit balances have been verified to the extent the same are available.

3 The details of amounts outstanding to Micro, Small and Medium Enterprises based on available information with the company is as under:

4 There is no amount due and outstanding to be credited to Investor Education and Protection Fund as at 31st March, 2016.

5 a) The Accounting Standard -15 on ‘Employee benefit’ prescribed by the Central Government, has become applicable tc the company from 1 st April, 2008. In accordance with provisions of Accounting Standard (AS-15), the liability for privilege leave at the yearend has been actuarially ascertained at Rs, 25.78 Lacs against which the provision of Rs, 23.83 Lacs was helc up to 31.03.2015. Accordingly a sum of Rs, 1.96 Lacs has been provided during the year.

b) Details of Employee Benefits as required by the Accounting Standard-15 "Employee Benefits" are as follows:

7. Defined Contribution Plans Rs, in lacs

During the year ended 31st March 2016, the company has recognized the following amounts in the profit loss account:

- Contribution to Provident Fund and Family Pension Fund. 6.45

The above amounts are included in ‘Contribution to Provident Fund’ and other funds'' under ‘Payment to and provisions for employees in Note 27

8. Defined Benefit Plan (Funded)

a. Ageneral description of the Employees Benefit Plan:

The company has an obligation towards gratuity, a funded benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement/death while in employment or on termination of the employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

VII The expected rate of return on the plan assets is based on the average long term rate of return expected on investment of the Fund during the estimated term of the obligations. The expected return on plan assets is Rs, 2.01 Lacs

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

9 RELATED PARTY DISCLOSURES: (AS-18)

A) List of related parties where control exist

Sr. No. Name of the Related Party Relationship

1 Brady & Morris Engg. Co. Ltd. Subsidiary Company

2 Brady Services Pvt. Ltd. Associates

3 Brady Telesoft Pvt. Ltd. Associates

4 Brady Air Pvt Ltd (Formerly known as Brady Air Ltd) Associates

5 Brady Estates Pvt. Ltd. (Formerly known as Brady Futures Pvt Ltd Associates

6 Global Tradecrackers Pvt Ltd Associates

7 Zoeftig Bradys AOP of Subsidiary

8 Mr. Pavan G. Morarka Managing Director

(Key Management Personnel)

9 Mr. Vaibhav Morarka Director (Son of Managing Director)

10 Mr. RKSharma _v Chief Financial Officer

11 Ms. Khushbu Desai Company Secretary

10 CONTINGENT LIABILITIES AND COMMITMENTS

I Contingent Liabilities

a. Inland Guarantees sanctioned by Bank aggregating to Rs, 300 Lacs (Previous Year Rs, 300 Lacs). The outstanding amount is Rs, 170.54 Lacs (Previous year t 148.71 Lacs), and Inland Letter of Credit sanctioned by Bank aggregating to Rs, 50 Lacs (Previous year Rs, 50 Lacs ) The Outstanding amount is Rs, NIL (Previous year Rs, NIL) is secured by way of extension of charge on Stock, Book Debts, Hypothecation of Plant & Machinery and Properties as referred to in Note ''7'' of the Balance Sheet under the heading of Secured Loans from banks-Cash Credit.

b. Claims against the Company by the Income Tax Department on completion of Income Tax Assessments for which appeal effects are pending not acknowledged as Debts Rs, 29.07 Lacs (Previous year Rs, 19.43 Lacs ) against which payment has been made of Rs, 29.48 Lacs (Previous year Rs, 19.15Lacs)

c. Claims against the Company by the Sales Tax Department on completion of Sales Tax Assessment for which appeals have been filed, not acknowledged as debts Rs, 23.02 Lacs (Previous Year Rs, 46.38 Lacs), against which payment of Rs, 6.42Lacs (Previous yearRs, 15.18 Lacs) has been made.

d. Claims made by ex-employees of the Company and pending before the appropriate authorities in respect of dues, reinstatement, permanency etc. which are contested by the Company the liability whereof is indeterminate.

e. The Company is contingently liable in respect of differential liability of bonus under The Payment of Bonus(Amendment)Act, 2015 which has come into force from 1st April, 2014. For the year 2014-15 the liability whereof is estimated at Rs, 0.59 Lacs which is not provided in view of the matter is subjudice before various High Courts in the country.

II Estimated amount of capital commitments not provided for in the accounts, net of advances aggregate to Rs, 1500 Lacs (Previous year Rs, 1500 Lacs ).

11 SEGMENT INFORMATION (AS-17)

The Company is engaged primarily in marketing of material handling equipments, textile machinery and stores etc. Accordingly there are no separate reportable segments as per Accounting Standard -17 dealing with segment reports.

12 The position as on 31.03.2016 in respect of 20,000 Ordinary Shares of Shree Changed Sugar Mills Limited held-as securities against the loan given by the Company, continues to be same as reported last year, in as much as the application made u/s 111 of the Companies Act, 1956, against the refusal to transfer the shares in the name of the Company by the said Company is not yet disposed off and the said Company has still not returned these shares on refusal of transfer.

13 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2015

1. The Reconciliation of the number of Shares outstanding:

The Company has not issued any Equity Shares during the year.

2. The Details of Shareholders holding more than 5% Shares:

3. 84,290 (Previous Year 84,290) Equity Shares are alloted as fully paid up pursuant to contracts, without payments being received in cash

4. The Company has only one class of equity and preference shares having a par value of Rs.10 per share. Each Equity Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of theirshareholding.

5. The above facilities are further collaterally secured against commercial building at 414, Senapati Bapat Marg, Lower Parel, Mumbai-400013 by way of first charge on the prime and collateral security as mentioned above.

6. The details of amounts outstanding to Micro, Small and Medium Enterprises based on available information with the company is as under:

7. There is no amount due and outstanding to be credited to Investor Education and Protection Fund as at 31 st March, 2015

8. As reported earlier,the company had filed appeal with the company law board against the dismissal of the companie's application by the said board in 1982 in connection with the transfer of 54000 eqity shares of the Ganesh Flour Mills Co. Ltd. to its name. The appeal is pending for final hearing and disposal.However, by way of abundant caution, the company during year ended 31st March,1994, stated the value of the said investment at a token figure of Rs.1 each by writing off the investment.

9. DEFERRED TAX ASSETS

The company has carried forward losses as per books and also as per Income Tax Act. Deferred Tax Assets for the current year are not accounted for in the absence of prudence and virtual certainty for sufficient future income as required by Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

10. Estimated amount of Contracts remaining to be executed on capital account and not provided for in accounts aggregate to Rs. NIL ( P.Y. Rs. NIL)

11. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF ( Rs. in Lacs)

2014-15 2013-14

Bank Gurantees given to Clients 543.89 499.18

Income tax Demands (including interest) - matter under rectification. A.Y. 2010-11 7.23 7.23

Income tax Demands (including interest) - matter under rectification. A.Y. 2011-12 6.13 6.13

Income tax Demands (including interest) - matter under rectification. A.Y. 2012-13 3.64 3.64

VAT under Appeal F.Y.2002-03 - 0.75

CST under Appeal F.Y.2004-05 4.50 4.50

CST under Appeal F.Y.2010-11 9.34 -

Claim of warranty expenses made by dealer - -

Claims made by the ex-employees of the company and pending before the appropriate authorities in respect of dues, reinstatement, premanency etc, which are contested by the company the liability whereof is indeterminate.

12. RELATED PARTY INFORMATION

(A) Name of related party and Description of relationship nature of relationship

Name of related party

1. Where signiicant influence exists:

W.H.Brady & Co Ltd Holding Company

2. Key Management Personnel:

Mr.Pavan G. Morarka Chairman

Mr. Vaibhav Morarka Executive Director

Mr.Rajendrakumar Pandey CFO

Ms Madhura Dabke Company Secretary

3. Other Related Parties

Brady Estates Pvt Ltd Associate (Formerly Known as Brady Futures Pvt.Ltd.)

Brady Services Pvt Ltd Associate

Brady Telesoft Pvt Ltd Associate

Brady Air Pvt. Ltd Associate

Global Trade Crackers Pvt.Ltd Associate

Shivam Holding Pvt. Ltd. Associate

Zoeftig Bradys Association of Persons (AOP)

(B) Related party relationship is as identified by the Company on the basis of information available with them and relied upon by the Auditors

13. Previous year's figures have been regrouped wherever necessary to make them comparable with current year.

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Mar 31, 2014

1a) The Accounting Standard - 15 on ''Employee benefit'' prescribed by the Central Government, has become applicable to the company from 1st April, 2008. In accordance with provisions of Accounting Standard (AS-15), the liability for privilege leave at the year end has been actuarially ascertained atRs. 23.33/- lacs against which the provision ofRs. 17.28/- lacs was held upto 31.03.2013. Accordingly a sum ofRs. 6.05/- lacs has been provided during the year.

b) Details of Employee Benefits as required by the Accounting Standard-15 "Employee Benefits" are as follows:

2. Defined Contribution Plans Rs. in lacs

During the year ended 31 st March 2014, the company has recognized the following amounts in the profit loss account: - Contribution to Provident Fund and Family Pension Fund. 5.08

The above amounts are included in ''Contribution to Provident Fund'' and other funds'' under ''Payment to and provisions fa employees in Note 27

3. Defined Benefit Plan (Funded)

a. Ageneral description of the Employees Benefit Plan:

The company has an obligation towards gratuity, a funded benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement/death while in employment or on termination of the employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

4 CONTINGENT LIABILITIES AND COMMITMENTS

I Contingent Liabilities

a. Inland Guarantees sanctioned by Bank aggregating to Rs. 300.00/- lacs (Previous Year Rs. 300.00/-lacs). The outstanding amount is Rs.132.69,/-lacs (Previous yearRs. 122.81/- lacs), and Inland Letter of Credit sanctioned by Bank aggregating to Rs. 50.00/- lacs(Previous year Rs. 50.00/- lacs) The Outstanding amount is Rs. NIL (Previous year Rs. NIL) is secured by way of extension of charge on Stock, Book Debts, Hypothecation of Plant & Machinery and Properties as referred to in Note 7'' of the Balance Sheet under the heading of Secured Loans from banks-Cash Credit.

b. Claims against the Company by the Income Tax Department on completion of Income Tax Assessments for which appeal effects are pending not acknowledged as Debts Rs. 8.93/- lacs (Previous year Rs. 8.93/- lacs) against which payment has been made of Rs.12.95/- lacs (Previous yearRs. 12.95/- lacs).

c. Claims against the Company by the Sales Tax Department on completion of Sales Tax Assessment for which appeals have been filed, not acknowledged as debts Rs. 9.28/- lacs (Previous Year Rs. 9.28/- lacs), against which payment ofRs. 0.27/- lacs (Previous yearRs. 0.27/-lacs) has been made.

d. Claims made by ex-employees of the Company and pending before the appropriate authorities in respect of dues, reinstatement, permanency etc. which are contested by the Company the liability whereof is indeterminate.

II Estimated amount of capital commitments not provided for in the accounts, netofadvances aggregate toRs. 1200.00/- Lacs (Previous yearRs. NIL).

5 SEGMENTINFORMATION(AS-17)

The Company is engaged primarily in marketing of material handling equipments, textile machinery and stores etc. Accordingly there are no separate reportable segments as per Accounting Standard -17 dealing with segment reports.

6 The position as on 31.03.2014 in respect of 20,000 Ordinary Shares of Shree Changdeo Sugar Mills Limited held as securities against the loan given by the Company, continues to be same as reported last year, in as much as the application made u/s 111 of the Companies Act, 1956, against the refusal to transfer the shares in the name of the Company by the said Company is not yet disposed off and the said Company has still not returned these shares on refusal of transfer.

7 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2013

1 CONTINGENT LIABILITIES AND COMMITMENTS

I Contingent Liabilities

a. Inland Guarantees sanctioned by Bank aggregating to Rs. 300.00/- Lacs (Previous Year Rs. 300.00/-Lacs). The outstanding amount is Rs. 122.81/- Lacs (Previous year Rs. 153.75/- Lacs), and Inland Letter of Credit sanctioned by Bank aggregating to Rs. 50.00/- Lacs (Previous year Rs. 50.00/-Lacs) The Outstanding amount is Rs. NIL (Previous yearRs. NIL) is secured by way of extension of charge on Stock, Book Debts, Hypothecation of Plant & Machinery and Properties as referred to in Note ''7 '' of the Balance Sheet under the heading of Secured Loans from banks-Cash Credit.

b. Claims against the Company by the Income Tax Department on completion of Income Tax Assessments for which appeals filed are pending not acknowledged as Debts Rs. 8.93/- Lacs (Previous year Rs. 22.351- Lacs) against which payment has been made of Rs. 12.95/-Lacs (Previous year Rs. 26.54/-Lacs).

c. Claims against the Company by the Sales Tax Department on completion of Sales Tax Assessment for which appeals have been filed, not acknowledged as debtsRs. 9.28/- Lacs (Previous YearRs. 9.28/- Lacs), against which payment of Rs. 0.27/-Lacs (Previous year Rs. 0.27/-Lacs) has been made.

d. Claims made by ex-employees of the Company and pending before the appropriate authorities in respect of dues, reinstatement, permanency etc. which are contested by the Company the liability whereof is indeterminate.

II Estimated amount of capital commitments not provided for in the accounts, net of advances aggregate to NIL

(Previous year NIL).

2 SEGMENT INFORMATION (AS-17)

The Company is engaged primarily in marketing of material handling equipments, textile machinery and stores etc. Accordingly there are no separate reportable segments as per Accounting Standard -17 dealing with segment reports.

3 The position as on 31.03.2013 in respect of 20,000 Ordinary Shares of Shree Changdeo Sugar Mills Limited held as securities against the loan given by the Company, continues to be same as reported last year, in as much as the application made u/s 111 of the Companies Act, 1956, against the refusal to transfer the shares in the name of the Company by the said Company is not yet disposed off and the said Company has still not returned these shares on refusal of transfer.

4 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2012

1.1 850000 (850000) Shares out of the issued, subscribed and paid up share capital were allotted as Bonus Shares in the last five years out of Profit & Loss account.

2.1 Company has not received any information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, under said Act have not been made.

2.2 Confirmations for debit & credit balances have been verified to the extent the same are available.

3.1 Company has not received any information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, under said Act have not been made.

3.2 Confirmations for debit & credit balances have been verified to the extent the same are available.

4.1 During the financial year 2006-07, Building on Lease Hold Land at Mumbai was revalued atRs. 6,100.00/- Lacs against value of Rs. 1,283.27/- Lacs on the basis ot revaluation report dated 01-11 -2006 from Registered valuer & Revaluation reserve of Rs. 4,816.73/- Lacs was created for the increase in value of the Building.

4.2 Depreciation on Building includes Depreciation as relatable to increase on account ot revaluation Rs. 209.50/- Lacs (Previous year Rs. 220.52/- Lacs) is charged to Revaluation Reserve.

5.1 Deductions from Capital Work in Progress represents transfer to relative Fixed Assets / Expenses on Completion / Installation.

6.1 Confirmations for debit & credit balances have been verified to the extent the same are available.

7.1 Confirmations for debit & credit balances have been verified to the extent the same are available.

8.1 Loans and advances to related parties include Rs. 4.86/- Lacs (Previous Year Rs. NIL) paid to Brady Ikusi Systems Pvt Ltd towards Joint Venture Share.

8.2 a) The Accounting Standard - 15 on 'Employee benefit' prescribed by the Central Government, has become applicable to the company from 1st April, 2008. In accordance with provisions of Accounting Standard (AS-15), the liability for privilege leave at the year end has been actuarially ascertained at Rs. 11.24/- Lacs against which the provision of Rs. 10.22/- Lacs was held upto 31.03.2011. Accordingly a sum of Rs. 1.02/- Lacs has been provided during the year.

b) Details of Employee Benefits as required by the Accounting Standard-15 "Employee Benefits" are as follows:

2. Defined Benefit Plan (Funded)

a. A general description of the Employees Benefit Plan:

The company has an obligation towards gratuity, a funded benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement/death while in employment or on termination of the employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

b. Details of defined benefit Plan - As per Actuarial Valuation as on 31st March, 2012.

9 CONTINGENT LIABILITIES AND COMMITMENTS

I Contingent Liabilities

a. Inland Guarantees sanctioned by Bank aggregating to Rs. 300.00/- Lacs (Previous Year Rs. 150.00/- Lacs). The outstanding amount is Rs. 153.75/- Lacs (Previous year Rs. 114.37/- Lacs), and Inland Letter of Credit sanctioned by Bank aggregating to Rs. 50.00/- Lacs (Previous year Rs. 50.00/- Lacs) The Outstanding amount is Rs. NIL (Previous year X 5.02/- Lacs) is secured by way of extension of charge on Stock, Book Debts, Hypothecation of Plant & Machinery and Properties as referred to in Note '7 ' of the Balance Sheet under the heading of Secured Loans from banks-Cash Credit.

b. Claims against the Company by the Income Tax Department on completion of Income Tax Assessments for which appeals filed are pending not acknowledged as Debts Rs. 22.35/- Lacs (Previous year Rs. 22.35/- Lacs) against which payment has been made of 126.54/- Lacs (Previous year X 26.54/- Lacs).

c. Claims against the Company by the Sales Tax Department on completion of Sales Tax Assessment for which appeals have been filed, not acknowledged as debts Rs. 9.28/- Lacs (Previous Year Rs. 9.28/- Lacs), against which payment of Rs. 0.27/- Lacs (Previous year 10.27/- Lacs) has been made.

d. Claims made by ex-employees of the Company and pending before the appropriate authorities in respect of dues, reinstatement, permanency etc. which are contested by the Company the liability whereof is indeterminate.

II Estimated amount of capital commitments not provided for in the accounts, net of advances aggregate to NIL (Previous year NIL).

10 SEGMENT INFORMATION (AS-17)

The Company is engaged primarily in marketing of material handling equipments, textile machinery and stores etc. Accordingly there are no separate reportable segments as per Accounting Standard - 17 dealing with segment reports.

11 The position as on 31.03.2012 in respect of 20,000 Ordinary Shares of Shree Changdeo Sugar Mills Limited held as securities against the loan given by the Company, continues to be same as reported last year, in as much as the application made u/s 111 of the Companies Act, 1956, against the refusal to transfer the shares in the name of the Company by the said Company is not yet disposed off and the said Company has still not returned these shares on refusal of transfer.

12 The previous year figures have been regrouped / reclassified, wherever necessary to conform to the current year presentation.

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Mar 31, 2012

1. SHARE CAPITAL

1.1 The reconciliation of the number of shares oustanding:

The Company has issued 75,00,000 Non-redeembale & non-cumulative preference shares during the year.

1.2 84,290 (Previous Year 84,290) Equity Shares are allotted as fully paid up pursuant to contracts, without payments being received in cash

1.3 15,00,000 (Previous Year 15,00,000) Equity Shares are allotted as Bonus Shares by capitalisation of Profits.

1.4 The Company has only one class of equity and preference shares having a par value of Rs. 10 per share. Each Equity Shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company, after distribution of all preferential amounts, in proportion of their shareholding.

2. DEFERRED TAX LIABILITY

The company has carried forward losses as per books and also as per Income Tax Act. Deferred Tax Assets for the current year are not accounted for in the absence of prudence and virtual certainty for sufficient future income as required by Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

3. SHORT TERM BORROWINGS

3.1.1 The term Loan II is secured by equitable mortgage of Factory Land & Building at Plot No.326-B, Sarsa Kanera Roa Sarsa Patia, Village Kanera, Dist. Kanera. Gujarat and Extension of Factory Land and Building at Vatva.

3.1.2 The term loan III of Rs. 250 lacs is secured by hypothecation of Plant and Machinery acquired by utilizing the term loan Extension of equitable mortgage of properties already mortgaged with the Bank to cover our entire exposure to the company.

3.1.3 The term loan IV of Rs. 1 crore is secured by equitable mortgage of plot of land to be acquired utilizing the term loans with further extension of equitable mortgage of properties already mortgaged with the Bank to cover our entire exposure to the company.

3.1.4 The above facilities are further collaterally secured against commercial building at 414, Senapati Bapat Marg, Lower Parel, Mumbai-400 013, Factory land & building at 505, GIDC, Phase IV, Vatva, Ahmedabad and Factory Land & Building at Plot No.326-B, Sarsa Kanera Road, Sarsa Patia, Village Kanera, Dist. Kanera. Gujarat, by way of first charge on the prime and collateral security as mentioned above. The term loan IV is collaterally secured against the equitable mortgage of plot of land to be acquired utilizing the term loans with further extension of equitable mortgage of properties.

4. OTHER CURRENT LIABILITIES

4.1 There is no amount due and outstanding to be credited to Investor Education and Protection Fund as at 31st March, 2012

5. The Company has remitted dividend amounting to Rs. NIL (P.Y. Rs. 2.09 Lacs) in respect of shares held by Non-Residents.

6 Estimated amount of Contracts remaining to be executed on capital account and not provided for in accounts aggregate to Loss Rs. 0.63 (P.Y. Rs. 75.74 Lacs)

7. CONTINGENT LIABILITIES NOT PROVIDED FOR IN RESPECT OF

(Rs. in Lacs)

2011-12 2010-11

Bank Gurantees given to Clients 444.65 486.72

Letter of Credit given to Clients - 74.54

Income tax Demands (including interest) - matter under rectification 9.73 9.73

Claim of warranty expenses made by dealer 3.22 3.22

8. RELATED PARTY INFORMATION

(A) Name of related party and nature of Description of relationship relationship

Name of related party

1. Where significant influence exists:

W.H.Brady & Co Ltd Holding Company

2. Key Management Personnel:

Mr. Pavan G. Morarka Chairman

3. Other Related Parties

Brady Estates Pvt Ltd (Formerly Known as Brady Futures Pvt.Ltd.) Associate

Brady Telesoft Pvt Ltd Associate

Brady Air Ltd Associate

Global Trade Crackers Pvt.Ltd Associate

Zoeftig Bradys Association of Persons (AOP)

(C) There are no provisions for doubtful debts or amounts written off save and except write back to credit to profit and loss account of exceptional items by waiver off amount due by holding company amounting to Rs. 92.21 Lacs.

(D) Related party relationship is as identified by the Company on the basis of information available with them and relied upon by the Auditors

9. Previous year's figures have been regrouped wherever necessary to make them comparable with current year.

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Mar 31, 2011

1. Estimated amount of capital commitments not provided for in the accounts, net of advances aggregate to NIL (Previous year Rs. 6,56,250/-).

2. The Company is contingently liable in respect of:

a. Inland Guarantees sanctioned by Bank aggregating to Rs1,50,00,000/- (Previous Year Rs. 1,00,00,000/-). The outstanding amount is Rs.1,14,37,203/- (Previous year Rs. 88,29,076/-), and Inland Letter of Credit sanctioned by Bank aggregating to Rs.50,00,000/-(Previous year Rs.50,00,000/-) The Outstanding amount is Rs.5,02,177/- (Previous year Rs. 3,97,466/-) is secured by way of extension of charge on Stock, Book Debts, Hypothecation of Plant & Machinery and Properties as referred to in Schedule 'C of the Balance Sheet under the heading of Cash Credit.

b. Claims against the Company by the Income Tax Department on completion of Income Tax Assessments for which appeals filed are pending not acknowledged as Debts Rs.22,35,332/- (Previous year Rs. 39,90,392/-) against which payment has been made of Rs.26,53,757/- (Previous year Rs.10,71,132/-).

c. Claims against the Company by the Sales Tax Department on completion of Sales Tax Assessment for which appeals have been filed, not acknowledged as debts Rs.9,07,558/- (Previous Year Rs. 9,09,031/-), against which payment of Rs.27,098/- ( Previous year Rs.21,496/-) has been made.

d. Claims made by ex-employees of the Company and pending before the appropriate authorities in respect of dues, reinstatement, permanency etc. which are contested by the Company the liability whereof is indeterminate.

3. The position as on 31.03.2011 in respect of 20000 Ordinary Shares of Shree Changdeo Sugar Mills Limited held as securities against the loan given by the Company, continues to be same as reported last year, in as much as the application made u/s 111 of the Companies Act, 1956, against the refusal to transfer the shares in the name of the Company by the said Company is not yet disposed off and the said Company has still not returned these shares on refusal of transfer.

4. SEGMENT INFORMATION (AS-17)

The Company is engaged primarily in marketing of material handling equipments, textile machinery and stores etc. Accordingly there are no separate reportable segments as per Accounting Standard - 17 dealing with segment reports.

5. DEFERRED TAXATION:

As per Accounting Standard 22 on "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India, the deferred tax for the year has been recognised in the Profit & Loss account.

6 Confirmations for Debit & Credit balance have been verified to the extent the same are available.

7 Company has not received any information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, under said Act have not been made.

8. a) The Accounting Standard -15 on 'Employee benefit' prescribed by the Central Government, has become applicable to the company from 1st April, 2008. In accordance with provisions of Accounting Standard (AS-15), the liability for privilege leave at the year end has been actuarially ascertained at Rs. 10,22,278/- against which the provision of Rs.7,20,023/- was held upto 31.03.2010. Accordingly a sum of Rs.3,02,255/- has been provided during the year.

9. Defined Benefit Plan (Funded)

a. A general description of the Employees Benefit Plan:

The company has an obligation towards gratuity, a funded benefit retirement plan covering eligible employees. The plan provides for lump sum payment to,vested employees at retirement/death while in employment or on termination of the employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

b. Details of defined benefit Plan - As per Actuarial Valuation as on 31 st March, 2011.

10. The provision for Income Tax & Wealth Tax made in the Accounts, is considered adequate having regard to the provisions of the Income Tax Act, 1961 and Wealth Tax act 1957 as amended upto date.

11. No provision is required in respect of impairment of assets as required by Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.

12. Figures of the previous year have been regrouped wherever necessary to conform to the presentation for the current year.

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Mar 31, 2010

1. Estimated amount of capital commitments not provided for in the accounts, net of advances aggregate to Rs.656250/- (Previous year Rs. NIL).

2. The Company is contingently liable in respect of:

a. Inland Guarantees sanctioned by Bank aggregating to Rs100,00,000/- (Previous Year Rs. 100,00,000/-). The outstanding amount is Rs.88,29,076/-(Previous year Rs.74,89,673/-), and Inland Letter of Credit sanctioned by Bank aggregating to Rs.50,00,000/-(Previous year Rs.50,00,000/-) The Outstanding amount is Rs.3,97,466/- (Previous year Rs.674,627/-) is secured by way of extension of charge on Stock, Book Debts, Hypothecation of Plant & Machinery and Properties as referred to in Schedule C of the Balance Sheet under the heading of Cash Credit.

b. Claims against the Company by the Income Tax Department on completion of Income Tax Assessments for which appeals filed are pending not acknowledged as Debts Rs.39,90,392/- (Previous year Rs.26,47,611/-) against which payment has been made of Rs. 10,71,132/- (Previous year Rs. 10,71,132/-).

c. Claims against the Company by the Sales Tax Department on completion of Sales Tax Assessment for which appeals have been filed, not acknowledged as debts Rs.9,09,031/- (Previous Year Rs. 9,09,031/-), against which Rs.21,496/- payment ( Previous year Rs.21,496/-) has been made.

d. Claims made by ex-employees of the Company and pending before the appropriate authorities in respect of dues, reinstatement, permanency etc. which are contested by the Company the liability whereof is indeterminate.

3. During the year, besides the facilities sanctioned as stated in Schedule "C of the Notes as above, the Company had been sanctioned and subsequent amendments made in the following facilities from Bank.

The above Term Loan is secured by :

(a) Charge of movable assets, if any, purchased out of banks term loan for Renovation of office premises.(for Term Loan II)

(b) Hypothecation of receivables(out of Aviation Contracts - Term Loan I)

(c) Power of Attorney for books debts arising out of execution of contracts as Term Loan I.

(d) Personal guarantee of Mr.Pavan G.Morarka, Chairman & Managing Director to secure the above Term Loans.

(e) First pari passu charge of Companys property at Mumbai by way of mortgage For security of the Term Loan. From the above facilities Rs.187.21 lacs have been availed of till date from Term loan II for Office Renovation.

4. The position as on 31.3.2010 in respect of 20000 Ordinary Shares of Shree Changdeo Sugar Mills Limited held as securities against the loan given by the Company, continues to be same as reported last year, in as much as the application made u/s 111 of the Companies Act, 1956, against the refusal to transfer the shares in the name of the Company by the said Company is not yet disposed off and the said Company has still not returned these shares on refusal of transfer.

5. SEGMENT INFORMATION (AS-17)

The Company is engaged primarily in marketing of material handling equipments, textile machinery and stores etc. Accordingly there are no separate reportable segments as per Accounting Standard - 17 dealing with segment reports.

6. RELATED PARTIES DISCLOSURES: (AS-18)

A) Particulars of parties where control exists.

SI. No Name Particulars

1 Brady & Morris Engg. Co. Ltd 80.70% of the equity capital as on 31.3.10 is held by the Company.

2 Other related parties :

Brady Services Pvt. Ltd. Associate

Brady Telesoft Pvt. Ltd. Associate

Brady Air Ltd. Associate

Brady Futures Pvt Ltd. Associate

Global Tradecracker Ltd. Associate

3 Mr.Pavan G. Morarka Managing Director (Key Management Personnel)

7 Confirmations for Debit & Credit balance have been verified to the extent the same are available.

8 The Company has not received any information from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, under said Act have not been made.

9. a) The Accounting Standard -15 on Employee benefit prescribed by the Central Government, has become applicable to the company from 1st April, 2008. In accordance with provisions of Accounting Standard (AS-15), the liability at the year end has been actuerily ascertained at Rs.7,20,023/- against which the provision of Rs.8,28,029/- was held upto 31.03.2009. Accordingly a sum of Rs.1,08,006/- has been written back during the year.

10. The provision for Income Tax & Wealth Tax made in the Accounts, is considered adequate having regard to the provisions of the Income Tax Act, 1961 and Wealth Tax act 1957 as amended upto date.

11. No provision is required in respect of impairment of assets as required by Accounting Standard - 28 issued by the Institute of Chartered Accountants of India.

12. Figures of the previous year have been regrouped wherever necessary to conform to the presentation for the current year.

13. Company Profile: As per statement enclosed.