Notes to Accounts of Bombay Cycle & Motor Agency Ltd.

Mar 31, 2018

a) Terms / rights attached to Equity Shares.

The company has only one class of equity shares of par value of Rs. 10/- each. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to approval by the share holders at the ensuing Annual General Meeting.

In the event of liquidation, the shareholders are eligible to recover the remaining assets of the company after distribution of all preferential amounts, in proportion of their shareholding.

General Reserve:

The General reserve is created from time to time by transfer of profits from retained earnings to general reserve for appropriation purposes. As the General reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income, hence General reserve is not required to be reclassified subsequently to the statement of profit and loss.

Retained earnings:

Retained earnings includes the Company’s cumulative earnings less losses.

Remeasurements of the net defined benefit Plans:

Remeasurements of defined benefit liability comprises actuarial gains and losses and return on plan assets.

The Board of Directors in their meeting held on 25^th May, 2018 proposed a dividend of Rs. 5/- per share. The proposal is subject to approval of shareholders at the Annual General meeting to be held on 13^th Aug, 2018 and if approved would result in a cash outflow of approximately Rs. 1,205,553/- which is inclusive of corporate dividend tax of Rs. 205,553/-.

Dividend recognised as distribution to equity shareholders for the year ended March 31, 2018 was Rs. 5/- per share.

1) Corporate Information:

The Company was formed in 1919 with the main object to undertake business of sales and servicing of motor cars and at present its Automobile division situated at Churchgate is operational for serving of motor cars. The company diversified its operations in Restaurant and Banquets services at its Hospitality Division situated at Opera House.

2) First-time adoption of Ind A S:

I) Transition to Ind AS: These are the company’s first financial statements prepared in accordance with Ind AS. The accounting policies set out in note 23 (3) have been applied in preparing the financial statements for the year ended 31^st March 2018, the comparative information presented in these financial statements for the year ended 31^st March 2017 and in the presentation of an opening Ind AS balance sheet at 1^st April 2016 (the Company’s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amount reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position and financial performance is set out in the following tables and notes.

II) Reconciliations under Ind AS 101: Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

a) Deemed cost for Property, Plant and Equipment (PPE), Intangible assets and Investment property: Ind AS 101 permits a first time adopters to continue with the carrying value for all its property, plant and equipment and intangible assets as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the company has elected to measure all of its PPE, intangible asset and investment property at their previous GAAP carrying values.

b) The remaining mandatory exceptions either do not apply or are not relevant to the Company.

3. Cash Flow Statements:

Cash flows are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals or accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flow from operating, investing and financing activities of Company are segregated.

Amendment to Ind AS 7: Statement of Cash Flows

The amendment to Ind AS 7 requires the entities to provide disclosures that enable users of financial statements to evaluate changes in liabilities arising from financial activities, including both changes arising from cash flows and non-cash changes. These amendments are effective from annual periods beginning on or after 1^st April, 2018.

4. Employee Benefits:

The disclosures required under Ind AS-19 “Employee Benefits” are given below:

Defined Contribution Plan

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

Defined Benefit Plan:

a) Gratuity: The liability in respect of employees is provided in the books based on the actuarial valuation. The liability is discharged by the company by making regular payments on the basis of calculation as per Payment of Gratuity Act, 1972.

Except one employee whose liability has been funded by taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the policy is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

b) Leave Encashment: The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to each employee at the year end, valued based on salaries including allowances of the last month of the Accounting Year.

Reconciliation of Defined Benefit obligation and fair value of plan assets is as under:

a) Actuarial Assumptions

The financial and demographic assumptions on annual basis used for valuation as at the Valuation Date are shown below. The assumptions as at the Valuation Date are used to determine the Present Value of Defined Benefit Obligation at that date.

5. Operating Segment:

Segment wise disclosure of information as per Ind-AS-108 on “Operating Segment” is as below:

1. Segments have been identified in line with the Ind-AS-108.

2. Company has disclosed Business Segment as the primary segment.

3. Composition of Business Segment:

4. The Segment Revenue, Results, Assets and liabilities include the respective amounts Identifiable and amounts allocated on reasonable basis.

5. The Managing Director of the Company acts as the Chief Operating Decision Maker (“CODM”)

The CODM evaluates the Company’s performance and allocates resources based on an analysis of various performance indicators by operating segments.

6. Related Party Disclosure:

Disclosure requirements as per Ind-AS-24 “Related Party Disclosure”are as follows:

* Parties identified by the Management and relied upon by the auditors.

$ All the related party transactions were made on terms equivalent to those that prevail in an arm’s length transactions.

7. EARNING PER SHARE

The Earning per share according to Ind-AS-33 is as under:

8. CONTINGENT LIABILITIES & ASSETS AS PER IND-AS 37:

(1) CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

(i) Contingent liabilities

Directors and management based on legal opinion obtained, are of opinion that Company has fair chance of winning all these above cases and as such no provision has been made in the books of account and consequently in attached financial statements for the same.

b) Guarantees;

1) Counter guarantees of Rs. 1 lac to bank against guarantees issued on company’s behalf secured by pledge of deposits of Rs. 276,135 /- (Previous year Rs. 259,466/-).

9. MICRO, SMALL AND MEDIUM ENTERPRISES:

a) As at 31^st March, 2018, there are no Micro, Small and Medium Enterprises, as defined in the Micro, Small, Medium Enterprises Development Act, 2006, to whom the group owes dues on account of principal amount together with interest and accordingly no additional disclosures have been made.

b) The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the auditors.

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Mar 31, 2017

1. Employee Benefits:

The disclosures required under Accounting Standard 15 (AS-15) “Employee Benefits” are given below:

Defined Benefit Plan:

2. Gratuity: The Liability in respect of employees is provided in the books based on the actuarial valuation. The liability is discharged by the company by making regular payments on the basis of calculation as per Payment of Gratuity Act, 1972.

Except one employees whose liability has been funded by taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the policy is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

3. Leave Encashment: The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to each employee at the year end, valued based on salaries including allowances of the last month of the Accounting Year.

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Mar 31, 2016

1) Employee Benefits:

The disclosures required under Accounting Standard 15 (AS-15) “Employee Benefits” are given below:

Defined Contribution Plan

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

Defined Benefit Plan:

a) Gratuity: The Liability has been funded separately by taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the policy is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

b) Leave Encashment: The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to each employee at the year end, valued based on salaries including allowances of the last month of the Accounting Year.

The estimates of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

Directors and management based on legal opinion obtained, are of opinion that Company has fair chance of winning all these above cases and as such no provision has been made in the books of account and consequently in attached financial statements for the same.

a) Guarantees;

2) Counter guarantees of Rs, 1/- lac to bank against guarantees issued on companyRs,s behalf secured by pledge of deposits of Rs, 242,410/- (Previous year Rs, 224,764/-).

3) MICRO, SMALL AND MEDIUM ENTERPRISES:

The Company has not received any declarations from its suppliers regarding their registration under “The Micro, Small and Medium Enterprises Development Act, 2006”. Hence the information required to be given in accordance with Section 22 of the said Act is not ascertainable and therefore not given.

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Mar 31, 2015

1) In the opinion of the Board, all assets other than fixed assets and non-current investments have realizable value in the ordinary course of business which is not different from the amount at which it is stated.

2) Cash flow statement as required by Accounting Standard 3 (AS-3) and Listing Agreement with The BSE is as per "Annexure".

3) Pending reconciliation of accounts of certain parties and in absence of confirmation of the parties, amount of balances in the accounts of Sundry Creditors, Sundry Debtors, Loans and Advances and Deposits (received as well as paid) shown in the attached Balance Sheet are as per books of accounts. Necessary adjustment entries if any, will be passed and recorded in the books of account after receipt of confirmation and reconciliation of such balances.

4) Previous year's figures have been regrouped / restated / rearranged wherever necessary to make them comparable with current year's figures.

5) Other applicable prescribed items that are NIL are not included in the attached accounts and above notes.

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

Defined Benefit Plan :

a) Gratuity : The Liability has been funded separately by formation of Gratuity Fund and taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the same is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

b) Leave Encashment : The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to employees at the year end, valued at salaries excluding allowances of the last month of Accounting Year.

The estimates of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

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Mar 31, 2014

1) Details of CONTINGENT LIABILITIES & COMMITMENTS - to the extent not provided for :-

Particulars (Rs. in Lacs)

a) Income Tax assessments are 1.35 - complete up to A.Y 2011-2012. Demands raised for A.Y 2011-12, appeal there of filed as Company does not foresee any liability.

b) Assessments under MVAT Act - - up to Financial Year ended 31.03.2009 have been closed and no dues are unpaid to that date. For subsequent years, the final liability remains indeterminate.

c) Claims, as notified not 1222 1222 acknowledged as Debts, though in the opinion of management, Company has full chance of claims not succeeding in view of the recent Supreme Court judgment dated 11.02.2014 in Civil Appeal no. 1970 of 2014 out of SLP (civil) no. 20625 of 2010.

d) Municipal property taxes not 11.33 - payable now pursuant to Bombay High court order dated 24.02.2014 in writ petition no. 2592 of 2013.

e) Penalty under Central Excise 6 6 laws against which appeal by the company is pending.

f) Counter guarantees to bank 1 1 against guarantees issued on company''s behalf secured by pledge of deposits of Rs. 199,199/- (Previous year Rs. 183,407/-).

g) Additional/Continuing suit - - claims by certain creditors, disputed by company, amount not ascertainable, the matters being subjudice.

h) Commitment : Interest on car 0.26 - loan from Volkswagen Finance Pvt.Ltd. for balance loan period.

2) In the opinion of the Board, all assets other than fixed assets and non-current investments have realizable value in the ordinary course of business which is not different from the amount at which it is stated.

3) Cash flow statement as required by Accounting Standard 3 (AS-3) and listing agreement with The Bombay Stock Exchange is as per "Annexure".

4) Pending reconciliation of accounts of certain parties and in absence of confirmation of the parties, amount of balances in the accounts of Sundry Creditors, Sundry Debtors, Loans and Advances and deposits (received as well as paid) shown in the attached Balance Sheet are as per books of accounts. Necessary adjustment entries if any, will be passed and recorded in the books of account after receipt of confirmation and reconciliation of such balances.

5) Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as follows:

6) Previous year''s figures have been regrouped / restated / rearranged wherever necessary to make them comparable with current year''s figures.

7) Other applicable prescribed items that are NIL are not included in the attached accounts and above notes.

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

Defined Benefit Plan :

a) Gratuity : The Liability has been funded separately by formation of Gratuity Fund and taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the same is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

b) Leave Encashment : The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to employees at the year end, valued at salaries excluding allowances of the last month of Accounting Year.

The estimates of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

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Mar 31, 2013

1) Commitment:

Estimated amount of contract remaining to be executed on capital account and not provided for, is Rs. 49 lacs.

2) In the opinion of the Board, all assets other than fixed assets and non-current investments have realizable value in the ordinary course of business which is not different from the amount at which it is stated.

3) Cash flow statement as required by Accounting Standard 3 (AS-3) and listing agreement with The Bombay Stock Exchange is as per "Annexure".

4) Pending reconciliation of accounts of certain parties and in absence of confirmation of the parties, amount of balances in the accounts of Sundry Creditors, Sundry Debtors, Loans and Advances and deposits (received as well as paid) shown in the attached Balance Sheet are as per books of accounts. Necessary adjustment entries if any, will be passed and recorded in the books of account after receipt of confirmation and reconciliation of such balances.

5) The Company during the year under review commenced servicing of high value cars of interna- tionally reputed brands in its Automobile Division. As a precursor to refurbish the infrastructure there, a special utility survey was carried out which revealed many assets were not giving useful results and were in impaired state of affairs. A thorough evaluation of their functioning was carried out and all impaired items of fixed assets were segregated, scrap value ascertained and appropri- ate impairment loss has been booked in the books of account which has been shown under Extraordinary items in the attached Statement of Profit and Loss.

6) Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party Disclosure" is- sued by the Institute of Chartered Accountants of India are as follows:

7) Previous year’s figures have been regrouped / restated / rearranged wherever necessary to make them comparable with current year’s figures.

8) Other applicable prescribed items that are NIL are not included in the attached accounts and above notes.

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

Defined Benefit Plan :

a) Gratuity : The Liability has been funded separately by formation of Gratuity Fund and taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the same is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

b) Leave Encashment : The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to employees at the year end, valued at salaries excluding allowances of the last month of Accounting Year.

The estimates of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

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Mar 31, 2012

1) Details of CONTINGENT LIABILITIES - to the extent not provided for :-

Particulars (Rs in Lacs)

(a) Income Tax assessments are completed up to A.Y. 2010-2011. No demands are raised in view of past unabsorbed losses. The final liability in respect of unassessed years remains indeterminate.

(b) Assessments under MVAT Act up to Financial Year ended 31.03.2007 have been closed and no dues are unpaid to that date. For subsequent years, the final liability remains indeterminate.

(c) Claims not acknowledged as Debts. In the opinion of 1,222 1,222 management, Company has fair chance of claims not succeeding and legal proceedings are going on.

(d) Penalty under Central Excise laws against which 6 6 appeal by the company is pending.

(e) Counter guarantees to bank against guarantees issued on company's behalf secured by pledge of deposits 1 1 of Rs1,69,120/- (Previous year Rs1,63,938/-).

(f) Additional/Continuing suit claims by certain creditors, disputed by company, amount not ascertainable, the matters being subjudice.

Gratuity : The Liability has been funded separately by formation of Gratuity Fund and taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the same is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

Leave Encashment : The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to employees at the year end, valued at salaries excluding allowances of the last month of Accounting Year.

2) In the opinion of the Board, all assets other than fixed assets and non-current investments have realizable value in the ordinary course of business which is not different from the amount at which it is stated.

3) Cash flow statement as required by Accounting Standard 3 (AS-3) and listing agreement with The Bombay Stock Exchange is as per 'Annexure -1'.

4) Pending reconciliation of accounts of certain parties and in absence of confirmation of the parties, amount of balances in the accounts of Sundry Creditors, Sundry Debtors, Loans and Advances and deposits (received as well as paid) shown in the attached Balance Sheet are as per books of accounts. Necessary adjustment entries, if any, will be passed and recorded in the books of account after receipt of confirmation and reconciliation of such balances.

5) Disclosure requirements as per Accounting Standard 18 (AS-18) 'Related Party Disclosure' issued by the Institue of Chartered Accountants of India are as follows.

6) Previous year's figures have been regrouped / restated / rearranged wherever necessary to make them comparable with current year's figures under revised Schedule VI.

7) Other applicable prescribed items that are NIL are not included in the attached accounts and above notes.

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

Defined Benefit Plan :

a) Gratuity : The Liability has been funded separately by formation of Gratuity Fund and taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the same is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

b) Leave Encashment : The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to employees at the year end, valued at salaries excluding allowances of the last month of Accounting Year.

The estimates of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

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Mar 31, 2011

OTHER DISCLOSURES :

1. Segments have been identified in line with the Accounting Standard AS-17.

2. Company has disclosed Business Segment as the primary segment.

3. The Segment Revenue, Results, Assets and liabilities include the respective amounts identifiable and amounts allocated on reasonable basis.

4. Accounting policies of the segment are the same as those described in the Significant Accounting Policies as referred in Schedule "P(A)" to the Accounts.

1) CONTINGENT LIABILITIES :

a) Income Tax assessments are complete up to A.Y. 2009-2010. Company has preferred appeals before higher authorities for A.Y 2002-2003 against certain disallowances. No demands are raised in view of past unabsorbed losses. The final liability in respect of unassessed years remains indeterminate.

b) Assessments under MVAT Act up to Financial Year ended 31.03.2007 have been closed and no dues are unpaid to that date. For subsequent years, the final liability remains indeterminate.

c) Claims not acknowledged as DebtsRs 1,222 Lacs (Previous Year Rs 1,211 Lacs). In the opinion of management, Company has fair chance of claims not succeeding and legal proceedings are going on.

d) Additional/Continuing suit claims by certain creditors, disputed by company, amount not ascertainable, the matters being subjudice.

e) Counter guarantees of Rs 1,00,000/- (Previous year Rs 1,00,000/-) to bank against guarantees issued on company's behalf secured by pledge of deposits of Rs 1,63,938/- (Previous year Rs 1,55,307/-).

2) Significant Accounting Policies are as per "Schedule 'P' (A)".

3) Cash flow statement as required by Accounting Standard 3 (AS-3) and listing agreement with The Bombay Stock Exchange are as per "Annexure I". Additional information as required under Part IV of Schedule VI to the Company's Act, 1956, are as per "Annexure II".

4) Pending reconciliation of accounts of certain parties and in absence of confirmation of the parties, amount of balances in the accounts of Sundry Creditors, Sundry Debtors, Loans and Advances and deposits (received as well as paid) shown in the attached Balance Sheet are as per books of accounts. Necessary adjustment entries if any, will be passed and recorded in the books of account after receipt of confirmation and reconciliation of such balances.

5) The Company has received permission under the provision of Section 211 (4) of the Companies Act, 1956, from the Government of India, Ministry of Corporate Affairs for exemption from disclosure of contents of paragraph 3(i)(a) and 3(ii)(d) of part II of Schedule VI of the Companies Act, 1956. Accordingly the said information has not been given in the attached accounts and notes thereon.

6) Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party Disclosure" issued by the Institute of Chartered Accountants of India are as per "Schedule 'P '(D)".

7) Deferred tax asset under Accounting Standard 22 (AS-22) of ICAI has been written off in finality as all the carried forward losses have been set off against profits.

8) Details of Opening Stock, Purchases, Closing Stock, Consumption (for food and beverage items) and Cost of Sales (for automobile dealership and service station activities) and Sales are given in "Schedule 'P' (B)",

9) Segment wise disclosure information as per Accounting Standard 17 (AS-17) on "Segment Reporting", issued by The Institute of Chartered Accountants of India is as per "Schedule 'P' (C)".

10) Previous year's figures have been regrouped / restated / rearranged wherever necessary to make them comparable with current year's figures.

11) Other applicable prescribed items that are NIL are not included in the attached accounts and above notes.

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

Defined Benefit Plan

a) Gratuity : The Liability has been funded separately by formation of Gratuity Fund and taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the same is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

b) Leave Encashment: The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to employees at the year end, valued at salaries excluding allowances of the last

- month of Accounting Year.

The estimates of rate of escalation in salary is considered in actuarial valuation, taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

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Mar 31, 2010

1. Segments have been identified in line with the Accounting Standard AS-17.

2. Company has disclosed Business Segment as the primary segment.

4. The Segment Revenue, Results, Assets and liabilities include the respective amounts identifiable and amounts allocated on reasonable basis.

5. Accounting policies of the segment are the same as those described in the Significant Accounting Policies as referred in Schedule "P" to the Accounts.

1) CONTINGENT LIABILITIES :

a) Guarantee given to a limited company, in respect of hire purchase finance provided at Companys request in respect of Sales affected by the Company in an earlier year. Current Year Rs. 2,646/- (Previous Year Rs. 2,646/-).

b) Income Tax assessments are complete upto A.Y. 2007-2008. Company has preferred appeals before higher authorities for A.Y. 2002-03 against certain disallowances. No demands are raised in view of past unabsorbed losses. The final liability in respect of unassessed years remains indeterminate.

c) Assesments under M. Vat Act up to Financial year ended 31-03-2007 have been closed and no dues are unpaid till that date. For subsequent years, the final liability remains inderterminate.

d) Additional suit claims by certain book creditors, disputed by company, amount not ascertainable.

e) Counter guarantees of Rs. 1,00,000/- (Previous year Rs. 1,00,000/-) to bank against guarantees issued on Companys behalf secured by pledge of deposits of Rs.1,55,307/- (Previous year Rs.1,44,641/-).

2) Claims not acknowledged as Debts :- Demand from The Central Excise authorities by way of a penalty of Rs. 19,60,000/- against which the Company had filed an appeal before the higher authorities. The said appeal has been allowed by remanding back the matter to the Commissioner of Central Excise for further verification. Till date there is no further notice from the Commissioner of Central Excise. In the opinion of the management, the Company has fair chance of the penalty being dropped.

3) Significant Accounting Policies are as per "Schedule P (A)".

4) Cash flow statement as required by Accounting Standard 3 (AS-3) and listing agreement with The Bombay Stock Exchange as per "Annexure I". Additional information as required under Part IV of Schedule VI to the Companys Act, 1956 as per "Annexure II".

5) Pending reconciliation of accounts of certain parties and in absence of confirmation of the parties, amount of bal- ances in the accounts of Sundry Creditors, Sundry Debtors, Loans and Advances and deposits (received as well as paid) shown in the attached Balance Sheet are as per books of accounts. Necessary adjustment entries, if any, will be passed and recorded in the books of account after receipt of confirmation and reconciliation of such balances.

6) The Company has received permission under the provision of section 211(4) of the Companies Act, 1956, from the Government of India, Ministry of Corporate Affairs for exemption from disclosure, of contents of paragraph 3(i)(a) and 3(ii)(d) of part II of Schedule VI of the Companies Act, 1956. Accordingly the said information has not been given in the attached accounts and notes thereon.

7) Disclosure requirements as per Accounting Standard 18 (AS-18) "Related Party Disclosuressued by the Institute of Chartered Accountants of India, are as per "Schedule P (D)".

8) Deferred tax asset permitted under Accounting Standard 22 of ICAI on net brought forward losses, brought in books in earlier year is written off on the basis of notional tax on the profits of each year at prevailing tax rates.

9) Adequate provision for taxation u/s. 115JB of The Income Tax Act, 1961 has been made for the current year. Eligible MAT. credit is being accounted as recoverable asset under sperate head in schedule of Loans and Advances.

10) The Earning per share according to the Accounting Standard 20 (AS-20) on the subject issued by The Institute of Chartered Accountants of India is as under:

11) Details of Opening Stock, Purchases, Closing Stock, Consumption (for food and beverage items) and cost of sales (for automobile dealership and service station activities) and Sales are given in "Schedule P (B)".

12) Segment wise disclosure information as per Accounting Standard 17 (AS-17) on" Segment Reporting ", issued by The Institute of Chartered Accountants of India is as per "Schedule P (C)".

13) Previous years figures have been regrouped / rearranged wherever necessary to make them comparable with current years figures.

14) Other applicable prescribed items that are NIL are not included in the attached accounts and above notes.

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

Defined Benefit Plan

a) Gratuity: The Liability has been funded separately by formation of Gratuity Fund and taking out Group Gratuity Scheme Policy from Life Insurance Corporation of India. The annual premium under the same is accounted as contribution to Gratuity Fund. At the time of actual payment of Gratuity, any shortfall on account of premature retirement is accounted as expenditure of that year.

b) Leave Encashment: The Company provides for estimated leave encashment liability each year on the basis of accumulated leave due to employees at the year end, valued at salaries excluding allowances of the last month of Accounting Year.

The estimates of rate of escalation in salary considered in actuarial valuation, taken into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.