Notes to Accounts of Control Print Ltd.

Mar 31, 2018

A) Corporate Information : The Company is a Public Limited Company domiciled in India and incorporated under the Companies Act, 1956, having its registered office at C-106, Hind Saurashtra Industrial Estate, Andheri-Kurla Road, Marol Naka, Andheri (East), Mumbai 400059, India and is listed on BSE Limited and National Stock Exchange of India Limited (NSE). The Company is engaged in manufacturing and supplying of Coding and Marketing Machines and Consumables thereof. It has Country wide Service Network to cater its Customers. It has manufacturing facilities at Nalagarh (Himachal Pradesh), Guwahati (Assam) and R&D Centre/Warehouse at Vasai(Maharashtra), apart from Overseas Branch at Colombo(Sri Lanka).

The Financial Statements for the year ended March 31, 2018 were approved and adopted by the Board on May 25, 2018.

Note:-

1. These figures are inclusive of Assets at Sri Lanka Branch. Depreciation for Assets at Sri Lanka Branch is charged as per standards applicable according to local laws of Sri Lanka and not as per Sch-II of Companies Act, 2013.

2. Deduction in Cost of Asset & Deduction in accumulated depreciation for Sri Lanka Branch Assets are due to foreign exchange conversion.

Note:

1. Of above 5,224,124 Equity Shares were alloted as fully paid up bonus share by Capitalization of General Reserve of the Company on January 14, 2016.

2. On January 08, 2018, the Company has issued and allotted 6,59,340 Equity Shares of Rs. 10/- each at an issue price of Rs. 455 per share to raise Rs. 30 Crore by way of Qualified Institutional Placement (“QIP”) under Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and Section 42 of the Companies Act, 2013 read with Rule 14 of the Companies (Prospectus and Allotment of Securities Rules, 2014). Expenses related to the issue amounting to Rs. 63.22 lakhs have been adjusted against Securities Premium. Use of the net proceeds of the Qualified Institutional Placement is intended for capital expenditure for ongoing and future expansion projects, acquisition, working capital and general corporate purposes and any other purposes as may be permissible under applicable law. The proceeds (net of issue expenses) has been utilised towards reduction of short term bank borrowing for working capital.

Terms/ Rights attached to Equity Shares:

The company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

1 Financial Statements of the Sri Lanka Branch of the Company for the year ended March 31, 2018 is part of Standalone Ind As Financial Statement and the same has been translated in accordance with Ind AS-21 “The effects of changes in the Foreign exchange Rates”. The Branch has incurred a Loss ofRs. 46.25 Lakhs during the financial year ended March 31, 2018.

2 The Company operates in a single Reportable segment, viz Coding & Marking Machines and Consumables thereof.

3 During the year Company has spent ‘ 52.70 Lakhs (PY Rs. 39.49 Lakhs) towards the corporate social responsibility activities in accordance with the section 135 of the companies Act 2013.The Company could not spend entire 2% of its average profit of last three years due to delay in granting permissions by the hospitals for the nutrition project and nonexecution of project for children with special needs.

4 On January 08, 2018, the Company has issued and allotted 659,340 Equity Shares of Rs. 10/- each at an issue price of Rs. 455 per share to raise Rs. 30 Crore by way of Qualified Institutional Placement (“QIP”) under Chapter VIII of the Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations, 2009 and Section 42 of the Companies Act, 2013 read with Rule 14 of the Companies (Prospectus and Allotment of Securities Rules, 2014). Expenses related to the issue amounting to Rs. 63.22 lakhs have been adjusted against Securities Premium. Use of the net proceeds of the Qualified Institutional Placement is intended for capital expenditure for ongoing and future expansion projects, acquisition, working capital and general corporate purposes and any other purposes as may be permissible under applicable law. The proceeds (net of issue expenses) has been utilised towards reduction of short term bank borrowing for working capital.

5 EMPLOYEE BENEFIT OBLIGATIONS

(A) Defined Benefit Plans:

Gratuity Plan

In accordance with the provisions of the Payment of Gratuity Act, 1972, the Company has a defined benefit plan which provides for gratuity, covering eligible employees. The Plan provided a lump sum gratuity amount to eligible employees at retirement, termination or death. Liabilities with regard to Gratuity plan are determined by actuarial valuation, performed by an independent actuary, at each Balance Sheet date using the projected unit credit method.

Assumptions regarding future mortality have been based on published statistics and mortality tables. The discount rate is based on the Government securities yield.

(vi) Sensitivity Analysis:

The sensitivity of the defined benefit obligation to changes in the weighted principal assumptions is:

The sensitivity analysis have been determined based on reasonably possible changes of the respective assumptions occurring at the end of the reporting period, while holding all other assumptions constant.

The sensitivity analysis presented above may not be representative of the actual change in the projected benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

(viii) Characteristics ofdefined benefit plans and associated risks:

The Company has an unfunded Defined benefit gratuity plan. Gratuity is paid from company as and when it becomes due and is paid as per company scheme for Gratuity. During the year, the company has changed the benefit scheme in line with Payment of Gratuity Act, 1972 by increasing monetary ceiling from Rs. 10 Lakhs to Rs. 20 Lakhs. Change in liability (if any) due to this scheme change is recognised as past service cost.

Gratuity is a defined benefit plan and company is exposed to following Risks:

- Salary Risk- The Present value of the defined benefit plan liability is calculated by reference to the future salaries of members. As such, an increase in the salary of the members more than assumed level will increase the plan’s liability.

- Interest Rate Risk- A falls in the discount rate which is linked to the Government securities. Rate will increase the present value of the liability requiring higher provision.

- Asset Liability Matching Risk- The plan faces the ALM risk as to the matching cash flow. Company has to manage payout based on pay as you go basis from own funds.

- Mortality Risk- Since the benefits under the plan is not payable for life time and payable till retirement age only, plan does not have any longevity risk.

6 FIRST TIME ADOPTION OF IND AS

These are the Company’s first financial statements prepared in accordance with Ind AS. The company has prepared the opening balance sheet as per Ind AS as of April 01, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required, not recognising items of assets or liabilities which are not permitted, reclassifying items from previous GAAP to Ind AS and applying Ind AS in measurement of recognised assets and liabilities. However this principle is subject to the certain exception and certain optional exemptions availed by the company as detailed below.

Set out below are the applicable Ind AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to Ind AS.

A. Optional Exemptions

Investments in subsidiaries, joint ventures and associates

The Company has opted and accordingly considered the Previous GAAP carrying amount of Investments as deemed cost as at the transition date.

B. Applicable Mandatory Exceptions

(a) Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies). Ind AS estimates as at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

1. Investments in equity instruments carried at FVTPL; and

2. Impairment offinancial assets based on expected credit loss model.

(b) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:

1. The Reconciliation of Standalone Balance Sheet as previously reported under Indian GAAP and Ind AS as at March 31,2017 and April 01, 2016

2. The Reconciliation of Net Profit reported under Indian GAAP for the year ended March 31, 2017

3. The Reconciliation of Other Equity reported under Indian GAAP for the year ended March 31, 2017

Use of fair value as deemed cost

The Company has revalued all it’s property, plant and equipment as on April 01, 2016 (transition date) and considered the fair value as deemed cost. As per provision of the Ind AS “Property, Plant and Equipment held for use in supply of goods or services, for rental to others or for administrative purpose and expected to be used during more than one period”. In accordance of the same company has capitalised coding and marking machines used for Rental, CPC in opening Ind AS balance sheet. Detailed list of property, plant and equipment is disclosed here in below as required by Ind AS.

Notes:

1. All Property, Plant and Equipment revalued as on April 01, 2016.

2. Independent valuer has been appointed for valuation of immovable properties for Land, Factory & Office Premise, etc.

3. Other Assets like Furniture & Fixtures, Office Equipments etc are revalued on the basis of certificates received from branch head. Equity Investment at FVTPL

Under previous GAAP, investments were measured at cost less diminution in value which is other than temporary. Under Ind AS, Company has designated these Investments at Fair Value Through Profit or Loss (FVTPL), accordingly these investments are required to be measured at fair value. At the date of transition to Ind AS, difference between the fair value of the instruments and its Previous GAAP carrying amount has been recognised in retained earnings.

Investment in subsidiaries, joint venture and associates

The Company has carried its investment in subsidiary at cost (as appearing in previous GAAP).

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 and accordingly, provision for proposed dividend was recognised as a liability. Under Ind AS, such dividends are recognised when the same is declared by the shareholders in the general meeting."

Other Comprehensive Income

Under Ind AS, remeasurements gains or losses (i.e. actuarial gains and losses, excluding interest expense on the net defined benefit liability) are recognised in other comprehensive income instead of profit and loss. Under the previous GAAP, these remeasurements were forming part of the profit and loss for the year.

Retained Earnings

Any difference on account of transition from previous GAAP to Ind As while preparing opening Ind AS Balance Sheet as on April 01, 2016 is adjusted under the head retained earnings.

Deferred Tax

Under Previous GAAP, deferred taxes were recognised for the tax effect of timing differences between accounting profit and taxable profit for the year using the income statement approach. Under Ind AS, deferred taxes are recognised using the balance sheet approach for future tax consequences of temporary differences between the carrying value of assets and liabilities and their respective tax bases. The above difference, together with the consequential tax impact of the other Ind AS transitional adjustments lead to temporary differences and deferred tax has been recognised on the same.

Gratuity

Under the previous GAAP, cost relating to post employment benefit obligations including actuarial gain/losses were recognised in Profit & Loss. Under Ind AS, actuarial gain/losses on the net defined benefit liability are recognised in other comprehensive income instead of profit & loss.

7 Previous year figures have been regrouped, reclassified wherever necessary.

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Mar 31, 2016

Terms/ Rights attached to Equity Shares:

The Company has only one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.

1. Financials of the Sri Lanka Branch of the Company for the year ended March 31, 2016 amounting to loss of Rs.0.61 Cr have been consolidated with the Standalone results under the non-integral method of AS-11 on the effects of changes in the Foreign exchange Rates.

2. The Company has issued Confirmation to its Debtors and Creditors which are in the process of being reverted by the parties there of the process of reconciliation of the balances is on progress.

3. The Company operates in a single Reportable segment, viz. Coding & Marking Solutions and Consumables thereof.

4. In the opinion of the Board, the Current Assets, Loans and Advances have a value on realization not less than what have been stated in the Balance Sheet and Provision of all known Liabilities have been made.

5. During the year, the Company has paid Rs.41.03 Lakhs to Learning Link Foundation towards the Corporate Social Responsibility (CSR) activities in accordance with the Section 135 of the companies Act, 2013. Out of it, the institution has spent Rs.31.35 Lakhs on CSR. The under spend amount was due to a delay in signing the MOU with Pune Municipal Corporation and Himachal Pradesh Government for project implementation.

6. Previous year figures have been regrouped wherever necessary.

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Mar 31, 2015

Terms/Rights attached to Equity Shares:

The Company has only one class of Equity Shares having a par value of Rs. 10 per share. Each holder of Equity Shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the Company, the holders of Equity Shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of Equity Shares held by the shareholders.

31st March 31st March 1 CONTINGENT LIABILITIES AND COMMITMENTS 2015 2014

(i) Contingent Liabilities

(A) Counter Guarantees given by the company to the bank against the Bank 2,134,734 1,451,095

Guarantees

(B) Demands against the Company not ackno wledged as debts in respect of :-

1) Maharashtra VAT Assessment for the Financial Year 2005-06, against 473,777

which Company has preferred an appeal to Joint Commissioner of Sales Tax (Appeals) Mumbai

2) Central Sales Tax Assessment for the Financial Year 2005-06, against 3,327,458 which Company has preferred an appeal to Joint Commissioner of Sales Tax (Appeals) Mumbai

3) Central Sales Tax Assessment for the Financial Year 2007-08, against 925,147 which Company has preferred an appeal to Joint Commissioner of Sales Tax (Appeals) Mumbai

4) Central Sales Tax Assessment for the Financial Year 2008-09 against 4,057,828 which Company has preferred an appeal to Joint Commissioner of Sales Tax (Appeals) Mumbai

5) Central Sales Tax Assessment for the Financial Year 2009-10, against 6,904,384 which Company has preferred an appeal to Joint Commissioner of Sales Tax (Appeals) Mumbai

(C)The company is in arbitration proceedings with Videojet INC.,USA and the amount is not ascertainable pending the outcome of the matter.

(ii) Commitments

Estimated amount of contracts remaining to be executed on capital 17,988,816 75,265,833 account (net of Advances)

2 Financials of the Sri Lanka Branch of the Company for the period July 2014 to March 2015 amounting to loss of Rs. 0.19 Cr have been consolidated with the Standalone results under the Non - Intergral method of AS-11 on the effects of changes in the Foreign Exchange Rates

3 Pursuant to Enactment of the Companies Act 2013 ('the Act') the Company has, effective from the 1st April 2014 reviewed and revised the useful life of its fixed Assets generally in accordance with the provisions of the schedule II of the Act. The consequential impact (after considering the transition provision specified in Schedule II is additional depreciation charge of Rs. 57.52 lacs for the year ended 31st March 2015 and adjustment of Rs. 19.90 lacs (Net of deferred tax) against the retained earnings

4 The Company has issued Confirmation to its Debtors and Creditors which are in the process of being reverted by the parties thereof. The process of reconciliation of the balances is on progress.

5 The Company operates in a single Reportable segment, viz Coding & Marking Solutions and Consumables thereof.

6 In the opinion of the Board, the Current Assets, Loans and Advances have a value on realisation not less than what have been stated in the Balance Sheet and Provision of all known Liabilities have been made.

7 During the year Company has incurred Rs. 423,060 towards the Corporate Social Responsibility activities in accordance with the Section 135 of the Companies Act 2013. The Company could not spend entire 2% of its average profit of last three years as there was delay in the process of initiation of the school adoption program as approved by the Board.

8 Previous year figures have been regrouped whereever necessary.

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Mar 31, 2014

1 RELATED PARTY DISCLOSURES :

Related Party Disclosures required under AS – 18 are given below:

I Name of the Related Parties Relationship

Silver Plastochem Pvt. Ltd. exists

Key Management Personnel Mr. Basant Kabra

Mr. Shiva Kabra

2 CONTINGENT LIABILITIES AND COMMITMENTS Rs. Rs.

(i) Contingent Liabilities 2013-14 2012-13

(A) Counter Guarantees given by the company to the bank against the Bank Guarantees 1,451,095 1,005,838

(B) Demands against the Company not acknowledged as debts in respect of 1) Income Tax for Assessment Year 2007- 08, against which Company has preferred an appeal to Commissioner of Income Tax (Appeals), Mumbai - 2,033,460

2) Maharashtra VAT Assessment for the Financial Year 2005-06, against which Company has preferred an appeal to Joint Commissioner of Sales Tax (Appeals) Mumbai. Company has 473,777 473,777 deposited Rs. 72,000/- to obtain stay

3) Central Sales Tax Assessment for the Financial Year 2005-06, against which Company has preferred an appeal to Joint Commissioner of Sales Tax (Appeals) Mumbai. Company has 3,327,458 3,327,458 deposited Rs. 500,000/- to obtain stay

(ii) Commitments Estimated amount of contracts remaining to be executed on capital account (net of Advances) 75,265,833 31,024,600

3 BALANCE CONFIRMATIONS

The Company has issued Confirmation to its Debtors and Creditors which are in the process of being reverted by the parties thereof. The process of reconciliation of the balances is in progress.

4 The Company operates in a single reportable segment, viz Coding & Marking Solutions and Consumables thereof.

5 In the opinion of the Board, the Current Assets, Loans and Advances have a value on realisation not less than what have been stated in the Balance Sheet and Provision of all known Liabilities have been made.

6 PREVIOUS YEAR FIGURES

Previous year figures have been regrouped wherever necessary.

7 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with Section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

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Mar 31, 2013

1 BALANCE CONFIRMATIONS

The Company has issued Confirmation to its Debtors and Creditors which are in the process of being reverted by the parties thereof.The process of reconciliation of the balances is on progress.

2 The Company operates in a single reportable segment, viz Coding & Marking Solutions and Consumables thereof.

3 In the opinion of the Board, the Current Assets, Loans and Advances have a value on realisation not less than what have been stated in the Balance Sheet and Provision of all known Liabilities have been made,

4 PREVIOUS YEAR FIGURES

Previous year figures have been regrouped wherever necessary.

5 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

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Mar 31, 2012

The company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting. In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in the proportion to the number of equity shares held by the shareholders.

A) Car loan from Kotak Mahindra Bank is secured by creating a Charge on the cars purchased from the loan amount. The Loan is repayable in 59 monthly installments starting from June, 201 land the last installment is due in April, 2016.

1 BALANCE CONFIRMATIONS

The Company has issued Confirmation to its Debtors and Creditors which are in the process of being reverted by the parties thereof. The process of reconciliation of the balances is on progress.

2 The Company operates in a single reportable segment, viz, Coding and Marking and Consumables thereof.

3 In the opinion of the Board, the Current Assets, Loans and advances have a value on realization not less than which they have stated in the Balance Sheet and Provision of all known liabilities have been made.

4 PREVIOUS YEAR FIGURES

The financial statements for the year ended 31st March, 2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the year ended 31 st March,2012 are prepared as per Revised Schedule VI. Accordingly, the previous year figures have also been reclassified to confirm to this year's classification. The adoption of Revised Schedule VI for previous year figures does not impact recognition and measurement principles followed for preparation of financial statements.

5 The Ministry of Corporate Affairs, Government of India, vide General Circular No. 2 and 3 dated 8th February 2011 and 21st February 2011 respectively has granted a general exemption from compliance with section 212 of the Companies Act, 1956, subject to fulfillment of conditions stipulated in the circular. The Company has satisfied the conditions stipulated in the circular and hence is entitled to the exemption. Necessary information relating to the subsidiaries has been included in the Consolidated Financial Statements.

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Mar 31, 2011

1. The Company operates in a single reportable segment viz. Coding and Marking Machine and Consumables thereof.

2. In the opinion of the Board, the Current Assets, Loans & Advances have a value on realization not less than which they have stated in the Balance Sheet and provisions for all known liabilities have been made.

3. During the year company has issued 3,75,000 convertible warrants into Equity shares to the promoters and promoter group on preferential warrants and pursuant to the said promoters exercise of option of conversion allotted them 3,75,000 Equity Shares of face value of Rs. 10/- each, at the rate of Rs. 36.25/- per shares (including Rs. 26.25/- as premium) and has allotted 54,400 Equity shares at the rate of Rs. 10/- per share to the Employees of the Company under Employees Stock Option Scheme of the Company.

4. The Company had filed a suit against IDBI in respect of amount appropriated by them towards sale of promoters/guarantors shares in the earlier years and the same is still pending before the Honorable High Court of Mumbai. There is no amount outstanding to the financial institution due to the said appropriation.

5. Other Liabilities include Rs. 1,50,00,000/- received as advance against sale of Delhi immovable property of the Company. As per agreement with buyer, the Company is entitled to forfeit the said amounts, if the buyer does not comply with the conditions of sale within the stipulated time. The buyer has since failed to comply with the conditions and hence, the Company has forfeited these amounts received in accordance with the terms of the agreement. The buyer has filed suit in the Court for recovery of the advances paid by them. The Company contends that as per the agreement, it is not required to be refunded. However, based on the directives issued by the Court, the Company has deposited FDR of this amount with the Court.

6. On December 31, 2005 shareholders approved via Postal Ballot, an Employee Stock Option Plan 2006 (ESOP 2006). The Plan provided an issuance of 3,69,200 equity shares of Rs. 10/- each to the employee of the Company. Compensation Committee administered the ESOP 2006. Based on the recommendation of the Compensation Committee, the options were granted at Rs. 10/- per share per option on the date of grant.

These options vested over a period of three years ending on 31.03.2011. The company has issued 1,69,600 shares to its employees under the said ESOP 2006 scheme during the Financial Year 2010-11.

As At 31/03/11 As At 31/03/10 Rs. Rs.

7. Contingent Liabilities not provided for:

a) Counter Guarantees given by the company to the bank against the Bank Guarantees 72,94,609 60,87,939

b) Estimated amount of contracts remaining to be executed on capital account (net of Advances) 16,20,000 4,00,20,000

8. There was no impairment of loss on fixed assets on the basis of review carried out by the management during the year.

9. As per AS 22 on Accounting for taxes on income issued by ICAI, the Company has adjusted the deferred tax liability as on 31st March, 2011 of Rs. 24,84,432/- for the year by debiting to Profit and Loss Account.

The components of deferred tax liability for the Current financial year are :-

Depreciation Rs. 15,57,341/-

Deferred Revenue Expenditure Rs. 9,27,091/-

10. Related Party Disclosures, as required by AS – 18 'Related Party Disclosures' are given below:

I Relationships

a) Where control exists Silver Plastochem Pvt. Ltd.

b) Key Management Personnel

Mr. Basant Kabra - Silver Plastochem Pvt. Ltd.

11. As per the Company, there are no creditors who fall under the definition of Small Scale Industries as defined under Clause (i) of Section 3 of the Industries (Development and Regulation) Act, 1951.

12. Additional information pursuant to Schedule VI Part II of the Companies Act, 1956:

13. Disclosure as required by Accounting Standard 19, "Leases", issued by the Institute of Chartered Accountants of India are given below:

The Company has taken various residential, office and Godown premises under operating lease or leave and license agreements. These are renewable by mutual consent on mutually agreeable terms.

Lease payments are recognised in the statement of Profit and Loss under 'Rent' in Schedule'O'.

14. The Company has entered into a MOU with M/s. Liberty Chemicals Pvt. Ltd., in the month of August, 2008, towards purchase of its property and a sum of Rs. 1,35,00,000/- was paid as advance. Subsequently the Company has acquired all the shares of M/s. Liberty Chemicals Pvt. Ltd., in the month of April, 2011 after considering the assets and liabilities of Liberty Chemicals Pvt. Ltd.

15. The Company has issued confirmations to its debtors which are in the process of being reverted by the parties thereof. The process of reconciliation of the balances is in progress.

16. The previous year's figures have been regrouped and rearranged wherever necessary, to confirm to the classification adopted for the current year.

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Mar 31, 2010

1) The Company operates in a single reportable segment viz. Coding and Marking Machine and Consumables thereof.

2) In the opinion of the Board, the Current Assets, Loans & Advances have a value on realisation not less than which they have stated in the Balance Sheet and provisions for all known liabilities have been made.

3) During the year Company has allotted 3,50,000 Equity shares to the promoters on preferential basis at the rate Rs. 29.75 per shares and has allotted 48,000 Equity shares at the rate ofRs. 10/-per shares to the Employees of the Company under Employees Stock Option Scheme of the Company.

4) The Company had filed a suit against IDBI in respect of amount appropriated by them towards sale of promoters/guarantors shares in the earlier year is still pending before the Honourable High Court of Mumbai. There is no amount outstanding to the financial institution due to the said appropriation.

5) Other Liabilities include Rs. 1,50,00,000 received as advance against sale of Delhi immovable property of the Company. As per agreement with the buyer, the Company is entitled to forfeit the said amount, if the buyer does not comply with the conditions of sale within the stipulated time. The buyer has since failed to comply with the conditions and hence, the Company has forfeited this amount received in accordance with the terms of the agreement. The buyer has filed suit in the Court for recovery of the advances paid by them. The Company contends that as per the agreement, it is not required to be refunded. However, based on the directives issued by the Court, the Company has deposited FDR of this amount with the Court.

6) On December 31, 2005 shareholders approved via Postal Ballot, an Employee StockOption Plan 2006 (ESOP2006). The Plan provided an issuance of3,69,200 equity shares of Rs. 10/-each to the employee of the Company. Compensation Committee administers the ESOP 2006. Based on the recommendation of the CompensationCommittee,theoptionsweregrantedatRs.10/-pershare per option on the date of grant. These ODtions vest over a Deriod of three vears from the arant date.

The Total Accounting Charge on account of ESOPs is Rs. 1.18 crores amortized over a vesting period of three years on a straightline basis. The Accounting charge for the Current Year isRs. 2,46,881/-

7) Contingent Liabilites not provided for: Asat31/03/10(Rs.) Asat31/03/09(Rs.)

a) Counter Guarantees given by the Company 60,87,939 12,43,500 to the bank against the Bank Guarantees

b) Estimated amount of contracts remaining to be 4,00,20,000 2,95,00,000 executed on capital account (net of Advances)

8) There was no impairment of loss on fixed assets on the basis of review carried out by the management durii the year.

9) As per AS 22 on Accounting for taxes on income issued by ICAI, the Company has adjusted the deferred tax liability as on 31 st March, 2010 of Rs. 19,87,109/- for the year by debiting to Profit and Loss Account.

The components of deferred tax liability for the Current financial year are :-

Depreciation Rs. (1,73,555/-)

Deferred Revenue Expenditure Rs. 21,60,664/-

10) As per the Company, there are no creditors who fall under the definition of Small Scale Industries as defined under Clause (i) of Section 3 of the Industries (Development and Regulation) Act, 1951.

11) Based on the information available with the Company, there is no outstanding amount due from suppliers who are registered as Micro, Small or Medium enterprises under "The Micro, Small and Medium Enterprises Development Act, 2006" as at 31 st March, 2010.

12) Additional information pursuant to Schedule VI Part II of the Companies Act, 1956:

13) Disclosure as required by Accounting Standard 19, "Leases", issued by the Institute of Chartered Accountants of India are given below: The Company has taken various residential, office and godown premises under operating lease or leave and licence agreements. These are renewable by mutual consent on mutually agreeable terms. Lease payments are recognised in the statement of Profit and Loss underRent in ScheduleO

14) Earnings Per Share: Earnings per share is calculated by dividing the profit attributable to the equity shareholders by the weighted average number of equity shares outstanding during the year. The numbers used in calculating basic and diluted earnings per equity share are as stated below:

15) In accordance with the Accounting Standard AS-16 on Borrowing Cost issued by the Institute of Chartered Accountants of India, the Company has capitalized interest on borrowing for assets taking substantial time for being ready for use up to the time the asset is ready for use. Consequently profit for the year is higher byRs. 2,53,874.31.

16) The previous years figures have been regrouped and rearranged wherever necessary, to confirm to the classification adopted for the current vear.