Notes to Accounts of Modison Ltd.

Mar 31, 2025

(S) Provisions, contingent liabilities and contingent assets

(i) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a
provision is presented in the statement of profit and loss.

(ii) Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognised because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognised because it cannot be measured reliably. The Company
does not recognise a contingent liability but discloses its existence in the financial statements.

(iii) Contingent Assets: Contingent Assets are disclosed, where an inflow of economic benefits is probable.

(T) Investments

On transition to Ind AS, equity investments are measured at fair value, with value changes recognised in
Other Comprehensive Income, except for mutual fund which is fair value through Statement of Profit and
Loss.

Investment in subsidiaries which are of equity in nature carried at cost in the separate financial statements.

(U) Trade receivables

Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost
using the effective interest method, less provision for impairment.

(V) T rade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of
financial year which are unpaid. Trade and other payables are recognised, initially at fair value, and
subsequently measured at amortised cost using effective interest rate method.

(W) Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets
and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12
months for the purpose of classification of its assets and liabilities as current and non current.

(X) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees
Lakhs (upto two decimals), unless otherwise stated as per the requirement of Schedule III (Division II).

Credit Risk Management

The Company source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit
approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company
estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated
based on historical data of the Company. The company has provisioning policy for expected credit losses.

(B) Liquidity Risk

Liquidity risk represents the inability of the Company to meet its financial obligations within stipulated time. To mitigate this risk, the Company maintains sufficient liquidity by way
of working capital limits from banks.

The Company operates in domestic market. The company also has export. The company is having natural hedging as its exports are more than its imports. Hence foreign
currency risk towards export is insignificant.

The Company imports certain materials which is significantly less with respect to total raw material procurement. Currently, Company does not hedge this exposures as it has
natural hedging due to company being net exporter. Nevertheless, Company may wish to hedge such exposures.

(ii) Interest rate risk

The company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the company to cash flow interest rate risk. Company''s policy is to maintain most of its
borrowings at fixed rate using interest rate swaps to achieve this when necessary. During the year March 31,2025, the Company''s borrowings at variable rate were denominated in ?.

The company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows
will fluctuate because of a change in market interest rates.

(ii) Defined Benefit Plan

fa) Gratuity:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days/one month salary last drawn for each completed year of service depending on
the date of joining. The same is payable on termination of service, retirement or death, whichever is earlier. The benefit vests after 5 years of continuous service. The company has taken
valuation from independent actuary who have used the projected unit credit method to determine the liability.

(b) Leave encashment:

The Company has a policy on leave eancashment which is applicable to all. The expected cost of accumulating leave eancashment is determined based on the policy taken by the
company from LIC which provides information on the obligation of the Company.

The plans of the Company exposes to acturial risks such as Investement Risk, Interest rate risk,salary risk and longitivity risk. These risks may impact the obligation of the Company.

48 Leases:

The company''s major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 4.24 Lakhs
(Previous Year: Rs.4.24 Lakhs) are charged as Rent and shown under the Note No. 38 âOther Expensesâ. These leasing arrangements, which are cancelable, range between eleven
months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

The Company''s major leasing arrangements are in respect of investment properties given on leave and licence basis. These leasing arrangements, which are cancellable, is for the period
of 1-2 years and are usually renewable by mutual consent at mutually agreed terms and conditions. The aggregate rentals of Rs. 26.42 Lakhs (Previous Year: Rs.20.44 Lakh) collected
as Licence Fees and shown under Note No. 32 "Other Income".

The company has identified that there were no leases which are in the nature of Right-to-use and hence no lease liability is recognised in the financial statements.

53 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of
Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active
consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the
period in which, the Code becomes effective and the related rules to determine the financial impact are published.

54 As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three
financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare,
destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per
the Act. The funds were utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

58 a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary
shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

b) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise)
that the Company shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

59 There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the
books of account

60 The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

61 The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

62 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority

63 The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

64 No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made
thereunder.

65 The Company has borrowings from banks on the basis of security of current asstes and quarterly returns or statements of current assets filed by the Company with banks are in
agreement with the books of account

66 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

For ML BHUWANIA AND CO LLP For and on Behalf of the Board

Chartered Accountants
FRN: 101484W/ W100197

Vijay Kumar Jain Girdhari Lal Modi Kumar Jay Modi

Partner Managing Director Jt. Managing Director

Membership No. 108374 DIN: 00027373 DIN: 00059396

Place: Mumbai Ramesh M. Kothari Pooja B. Sinha

Dated: 27 May 2025 Chief Financial Officer Company Secretary

Mar 31, 2024

Note No 18.2: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share.

(B) 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 proportion to the number of equity shares held by the shareholders.

Note No. 19.1: Capital reserve mainly represents amount on capital nature account.

Note No.19.2: General reserve reflects amount transferred from statement of profit and loss in accordance with regulations of the Companies Act, 2013.

Note No.19.3: This reserve represents undistributed accumulated earnings of the company as on the Balance sheet date.

Note No.19.4: Revaluation reserve represent revaluation done of certain property plant & equipment in earlier years.

Note No.19.5: The company recognises unrealised and realised gain on equity shares in FVOCI - Equity investments.

* The Additional Commissioner, Central Excise & Service Tax, Valsad, Commissionerate raised demand of ? 1056.11 lakhs (Including interest and penalty) in respect of Exempted Goods and goods returned back. The company had filed an appeal against the impugned order with Commissioner (Appeals), Office of the Commissioner of CGST & Central Excise Commissionerate, Surat. The Commissioner (Appeals) had passed an order in favour of the company. Against the order of Commissioner (Appeals) the Department has filed second appeal with The Customs, Excise and Service Tax Appellate Tribunal (CESTAT). The Management of the company is of the view that there will not be any cash outflow against the said order.

# The management does not expect these demands/claims to succeed. Claims, where the possibility of outflow of resources embodying economic benefits is remote, have not been considered in contingent liability.

40 Capital Management

For the purpose of the Companyâs capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders. The primary objective of the Company capital management is to maximise the shareholder value.

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio and is measured by net debt divided by total capital plus net debt. The Companyâs net debt includes Current and non current borrowings less cash and cash equivalents.

The Board provides guiding principles for overall risk management, as well as policies covering specific areas such as credit risk, liquidity risk, price risk, and other business risks effecting business operation. The company''s risk management is carried out by the management as per guidelines and policies approved by the Board of Directors.

(A) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. Credit risk encompasses the direct risk of default, risk of deterioration of creditworthiness as well as concentration risks. The Company is exposed to credit risk from its operating activities (primarily trade receivables), deposits with banks.

Credit Risk Management

The Company source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated based on historical data of the Company. The company has provisioning policy for expected credit losses.

The maximum exposure to credit risk as at 31 March 2024 & 31 March 2023 is the carrying value of such trade receivables as shown in note 12 of the financials.

(B) Liquidity Risk

The Company imports certain materials which is significantly less with respect to total raw material procurement. Currently, Company does not hedge this exposures as it has natural hedging due to company being net exporter. Nevertheless, Company may wish to hedge such exposures.

Sensitivity Analysis-

The Company is mainly exposed to changes in USD and Euro. The sensitivity analysis demonstrate a reasonably possible change in USD and Euro exchange rates, with all other variables held constant. 5% appreciation/depreciation of USD and Euro with respect to functional currency of the company will have impact of following (decrease)/increase in Profit & vice versa. The exposures is insignificant in case of GBP.

(ii) Interest rate risk

The company''s main interest rate risk arises from long-term borrowings with variable rates, which expose the company to cash flow interest rate risk. Company''s policy is to maintain most of its borrowings at fixed rate using interest rate swaps to achieve this when necessary. During the year March 31,2024, the Company''s borrowings at variable rate were denominated in ?.

The company''s fixed rate borrowings are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS 107, since neither the carrying amount nor the future cash flows will fluctuate because of a change in market interest rates.

Interest rate risk exposure

(D) Price risk

The company is exposed to price risk in basic ingrediants of Company''s raw material. The Company monitors its price risk and factors the price increase in pricing of the products.

(ii) Defined Benefit Plan

(a) Gratuity:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days/one month salary last drawn for each completed year of service depending on the date of joining. The same is payable on termination of service, retirement or death, whichever is earlier. The benefit vests after 5 years of continuous service. The company has taken valuation from independent actuary who have used the projected unit credit method to determine the liability.

(b) Leave encashment:

The Company has a policy on leave eancashment which is applicable to all. The expected cost of accumulating leave eancashment is determined based on the policy taken by the company from LIC which provides information on the obligation of the Company.

The plans of the Company exposes to acturial risks such as Investement Risk, Interest rate risk,salary risk and longitivity risk. These risks may impact the obligation of the Company.

44 Forward Contracts in Foreign Currencies

The Company in accordance with its risk management policies and procedures, enters into foreign currency forward contracts to manage its exposure in foreign exchange rates. The counter party is generally a bank. The foreign exchange forward contracts mature within a period of one month to two years.

The Company uses forward exchange contracts to hedge its exposure in foreign currency on highly probable forecast transactions. The information on derivative instruments is given below. The table below analyzes the derivative financial instruments into relevant maturity groupings based on the remaining period as of the balance sheet date:

47 Leases:

The company''s major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 4.24 Lakhs (Previous Year: Rs.4.35 Lakhs) are charged as Rent and shown under the Note No. 37 âOther Expensesâ. These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

The Company''s major leasing arrangements are in respect of investment properties given on leave and licence basis. These leasing arrangements, which are cancellable, is for the period of 1-2 years and are usually renewable by mutual consent at mutually agreed terms and conditions. The aggregate rentals of Rs. 20.44 Lakhs (Previous Year: Rs.18.84 Lakh) collected as Licence Fees and shown under Note No. 31 "Other Income".

The company has identified that there were no leases which are in the nature of Right-to-use and hence no lease liability is recognised in the financial statements.

(i) Fair Value Hierarchy

This section explains the judgements and estimates made in determining the fair values of the financial instruments that are (a) recognised and measured at fair value and (b) measured at amortised cost and for which fair values are disclosed in the financial statements.

To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into the three levels prescribed under the accounting standard. An explanation of each level follows underneath the table.

Level 1: Level 1 hierarchy includes financial instruments measured using quoted prices. This includes listed equity instruments, traded bonds and mutual funds that have quoted price. The fair value of all equity instruments (including bonds) which are traded in the stock exchanges is valued using the closing price as at the reporting period. The mutual funds are valued using the closing NAV.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-thecounter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers between levels 1 and 2 during the year.

Valuation technique used to determine fair value

Specific valuation techniques used to value financial instruments include:

* the use of quoted market prices or dealer quotes for similar instruments

All of the resulting fair value estimates are included in level 2 except for unlisted equity securities, contingent consideration and indemnification asset, where the fair values have been determined based on present values and the discount rates used were adjusted for counterparty or own credit risk.

Valuation processes

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

52 The Indian Parliament has approved the Code on Social Security, 2020 which would impact the contributions by the company towards Provident Fund and Gratuity. The Ministry of Labour and Employment has released draft rules for the Code on Social Security, 2020 on November 13, 2020, and has invited suggestions from stakeholders which are under active consideration by the Ministry. The Company will assess the impact and its evaluation once the subject rules are notified and will give appropriate impact in its financial statements in the period in which, the Code becomes effective and the related rules to determine the financial impact are published.

53 As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects. A CSR committee has been formed by the company as per the Act. The funds were utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

56 a) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

( * in LdkMS)

57 There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account

58 The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

59 The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

60 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority

61 The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

62 No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

63 The Company has borrowings from banks on the basis of security of current asstes and quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of account

64 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

Mar 31, 2023

(S) Provisions, contingent liabilities and contingent assets

(i) Provisions:

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. The expense relating to a provision is presented in the statement of profit and loss.

(ii) Contingent liabilities:

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognised because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognised because it cannot be measured reliably. The Company does not recognise a contingent liability but discloses its existence in the financial statements.

(iii) Contingent Assets: Contingent Assets are disclosed, where an inflow of economic benefits is probable.

(T) Investments

On transition to Ind AS, equity investments are measured at fair value, with value changes recognised in Other Comprehensive Income, except for mutual fund which is fair value through Statement of Profit and Loss.

Investment in subsidiaries which are of equity in nature carried at cost in the separate financial statements.

(U) Trade receivables

Trade receivables are recognised initially at their fair value and subsequently measured at amortised cost using the effective interest method, less provision for impairment.

(V) Trade and other payables

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial year which are unpaid. Trade and other payables are recognised, initially at fair value, and subsequently measured at amortised cost using effective interest rate method.

(W) Operating Cycle

Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non current.

(X) Rounding of amounts

All amounts disclosed in the financial statements and notes have been rounded off to the nearest Rupees Lakhs (upto two decimals), unless otherwise stated as per the requirement of Schedule III (Division II).

(Y) Recent Accounting Pronouncements

Ministry of Corporate Affairs (âMCAâ) notifies new standards or amendments to the existing standards under Companies (Indian Accounting Standards) Rules as issued from time to time. On March 31, 2023, MCA amended the Companies (Indian Accounting Standards) Amendment Rules, 2023, as below:

Ind AS 1 - Presentation of Financial Statements - This amendment requires the entities to disclose their material accounting policies rather than their significant accounting policies. The effective date for adoption of this amendment is annual periods beginning on or after April 1,2023. The Company has evaluated the amendment and the impact of the amendment is insignificant in the standalone financial statements

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - This amendment has introduced a definition of âaccounting estimates'' and included amendments to Ind AS 8 to help entities distinguish changes in accounting policies from changes in accounting estimates. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statements.

Ind AS 12 - Income Taxes - This amendment has narrowed the scope of the initial recognition exemption so that it does not apply to transactions that give rise to equal and offsetting temporary differences. The effective date for adoption of this amendment is annual periods beginning on or after April 1, 2023. The Company has evaluated the amendment and there is no impact on its standalone financial statement.

i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

ii. provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

58 There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the Income Tax Act, 1961, that has not been recorded in the books of account

59 The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

60 The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

61 The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority

62 The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

63 No proceeding has been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

64 The Company has borrowings from banks on the basis of security of current asstes and quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of account

65 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

For ML BHUWANIA AND CO LLP For and on Behalf of the Board

Chartered Accountants

Firm''s Registration Number: 101484W/ W100197

Vijay Kumar Jain G.L. Modi Rajkumar Modi

Partner Managing Director Jt. Managing Director

Membership No. 108374 DIN: 00027373 DIN: 00027449

Place: Mumbai Ramesh Kothari Manika Arora

Dated: 25 May 2023 Chief Financial Officer Company Secretary

Mar 31, 2018

₁ CORPORATE INFORMATION

Modison Metals Limited (herein referred to as "MML" or " the company") is public limited company incorporated and domiciled in India. The address of its registered office is 33, Nariman Bhavan, 227, Nariman Point, Mumbai-400021, Maharashtra, India. The Company is a leading manufacturer of Electrical contacts in all the three segments, LV, MV & HV. The equity shares of the Company are listed on BSE Limited (âBSEâ). The financial statements are presented in Indian Rupee (Rs.).

Notes:

(a) The Company has elected to measure all its property, plant and equipment at the previous GAAP carrying amount i.e. April 1, 2016 as its deemed cost (Gross Block Value) on the date of transition to Ind AS i.e. April 1, 2016.

(b) The Company has availed the deemed cost exemption in relation to the property, plant and equipment, capital work-in-progress and intangibles on the date of transition and hence the net carrying amount has been considered as the gross block carrying amount on that date.

Note No 2: Raw Material inventory includes Goods-in transit Rs. Nil (31st March 2017 Rs. 126.11 Lakhs and 1st April 2016 Rs. 123.62 Lakhs)

Note No 3: As per the policy of inventory valuation of the company, the Silver booked by the customer has been valued at the rate at which the same is booked by customers which is not in consonance with IND AS 2, on "Inventories". However the impact on the profit is not material.

Note No 4: Stores & Spares includes Goods-in transit Rs. Nil (31st March 2017 Rs. Nil and 1st April 2016 Rs. 5.62 Lakhs)

Note No 5: The company can utilise balances only towards settlement of the unpaid dividend.

Note No 6: Margin money deposits amounting to Rs. 71.76 Lakhs (31st March 2017 Rs. 83.06 Lakhs and 1st April 2016 Rs. 172.32 Lakhs) are lying with bank against Bank Guarantees, Buyers Credit and Letter of Credit & Rs. 76.59 Lakhs (31st March 2017 Rs. 50.00 Lakhs and 1st April 2016 Rs. Nil) is lying with Reliance Commodities Limited towards margin for forward commodity contract (Hedging).

Note No 7: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

Note No 8: Secured by Hypothecation of stocks & book debts and further secured by collateral security of all movable and immovable factory properties.

Note No 9: Unsecured Loan from HDFC Bank is repayable after 90 days and is carrying rate of interest 9.80%.

Note No 10: The company has not received information from vendors regarding their status under the Micro,Small and Medium Enterprises Development Act,2006 and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act,have not been given.

Note No 11: Goods and Service Tax (GST) have been effective from July 1, 2017. Consequently, excise duty, value added tax (VAT), Service tax etc. have been replaced with GST. Until June 30, 2017, ''Sale of products'' included the amount of excise duty recovered on sales. With effect from July 1, 2017, ''Sale of products'' excludes the amount of GST recovered. Accordingly, revenue from ''Sale of Products, and ''Revenue from operations'' for the year ended March 31, 2018 are not comparable with those of previous year. Excise duty on sales amounting to Rs. 401.60 Lakhs (31st March, 2017 : Rs. 1,718.72 Lakhs) has been included in sales in Statement of Profit and Loss.

12 Capital Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. The Company monitors capital using a gearing ratio and is measured by net debt divided by total capital plus net debt. The Companyâs includes net debt is equal to trade and other payables less cash and cash equivalents.

The Board provides guiding principles for overall risk management, as well as policies covering specific areas such as credit risk, liquidity risk, price risk, and other business risks effecting business operation. The companyâs risk management is carried out by the management as per guidelines and policies approved by the Board of Directors.

(A) Credit Risk

Credit Risk Management

The Company source of credit risk at the reporting date is from trade receivables as these are typically unsecured. This credit risk has always been managed through credit approvals, establishing credit limits and continuous monitoring the creditworthiness of customers to whom credit is extended in the normal course of business. The Company estimates the expected credit loss based on past data, available information on public domain and experience. Expected credit losses of financial assets receivable are estimated based on historical data of the Company. The company has provisioning policy for expected credit losses.

13 Financial Risk Management

(B) Liquidity Risk

The Companyâs principal sources of liquidity are âcash and cash equivalentsâ and cash flows that are generated from operations. The Company has no outstanding term borrowings. The Company believes that its working capital is sufficient to meet its current requirements. Hence the Company does not perceive any liquidity risk. The company has significant high receivables & liquid inventory compared to payable, hence significantly low liquidity risk.

(c) Market risk Foreign currency risk

The Company imports certain materials which is significantly less with respect to total raw material procurement. Currently, Company does not hedge this exposures as it has natural hedging due to company being net exporter.

Nevertheless, Company may wish to hedge such exposures.

Sensitivity Anaysis-

(ii) Defined Benefit Plan

(a) Gratuity:

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days/one month salary last drawn for each completed year of service depending on the date of joining. The same is payable on termination of service, retirement or death, whichever is earlier. The benefit vests after 5 years of continuous service.

(b) Leave encashment:

The Company has a policy on leave eancashment which is applicable to all. The expected cost of accumulating leave eancashment is determined based on the policy taken by the company from LIC which provides information on the obligation of the Company.

The plans of the Company exposes to acturial risks such as Investement Risk, Interest rate risk,salary risk and longitivity risk. These risks may impact the obligation of the Company.

14 SEGMENT REPORTING

The Company''s business activity falls within a single Primary segment viz. : "Manufacturing of Electrical Contacts". Since the sales outside India is more than 10% of the total sales, geographical segment is reported as the secondary segment.

15 LEASES:

The companyâs major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 10.77 Lakhs (Previous Year: 12.54 Lakhs) are charged as Rent and shown under the Note No. 41 âOther Expensesâ. These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

The Company''s major leasing arrangements are in respect of investment properties given on leave and licence basis. These leasing arrangements, which are cancellable, is for the period of 2 years and are usually renewable by mutual consent at mutually agreed terms and conditions. The aggregate rentals of Rs. 13.24 Lakhs (March 2017: Nil) collected as Licence Fees and shown under Note No. 33 "Other Income".

16 FIRST TIME ADOPTION OF IND AS

The Company has adopted Ind AS with effect from 1st April 2017 with comparatives being restated. Accordingly the impact of transition has been provided in the Opening Reserves as at 1st April 2016. The figures for the previous period have been restated, regrouped and reclassified wherever required to comply with the requirement of Ind AS and Schedule III.

Explanation 1 - Exemptions and exceptions availed

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

(I) Ind AS Optional exemptions

Deemed Cost - Property, Plant and Equipment, Capital work-in-progress and Intangible Assets

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment 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. This exemption can also be used for intangible assets covered by Ind AS 38 Intangible Assets. Accordingly, the Company has elected to measure all of its property, plant and equipment, Capital work-in-progress and intangible assets at their previous GAAP carrying values.

(II) Ind AS mandatory exemptions

(i) Estimates

An entity''s estimates in accordance with Ind AS'' at the date of transition to Ind AS shall be consistant with the estimates made for the same date in accordance with the previous GAAP (after adjustments to reflect any difference in accounting policies) unless there is an objective evidence that those estimates were in error.

(ii) Classification and measurement of financial assets (other than equity instruments)

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

(iii) De-recognition of financial assets and financial liabilities

Ind AS 101 requires a first time adopter to apply the de-recognition provisions for Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows first time adopter to apply the derecognition requirements provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past Ind AS 101 retrospectively from the date of entity''s choosing, transactions was obtained at the time of initially accounting for the transactions.

Note No.:

1 Property, Plant and Equipment and Investment Property

Under the previous GAAP, Investment Property was grouped under Non- current Investment. Under Ind AS, the same is treated as Investment property under Ind AS 41 at carrying cost under previous GAAP. There is no impact on the total equity and profit.

2 Trade Receivable

As per Ind AS 109, the company is required to apply expected credit loss model for recognising the allowance for doubtful debts. As a result, the allowance for doubtful debts increased byRs.6.16 Lakhs as at 31 March 2017 (1 April 2016 Rs. Nil). Consequently, the total equity as at 31 March 2017 decreased by Rs. 4.03 Lakhs (1 April 2016 Rs. Nil) and profit for the year ended 31 March 2017 decreased by Rs. 6.16 Lakhs.

3 Deposits with Government Authorities

Under the previous GAAP, security deposit placed with Government authorities were grouped as short term loans & advances. Under Ind AS, the security deposit placed with the government authorities is in accordance with the taxation regulations. There is no contractual agreement for placing such a deposit, it is not a financial instrument. Hence the security deposit is not a financial asset under IND AS 32 (Financial Instrumnets). This change the amount of deposits regroup with other current assets of Rs. 34.70 Lakhs as at 31 March 2017 (1 April 2016 Rs. 3.46 Lakhs). There is no impact on the total equity and profit.

4 Deferred Tax

Under previous GAAP, deferred taxes were recognised based on Profit & loss approach i.e. tax impact on difference between the accounting income and taxable income. under Ind AS, deferred tax is recognised by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of assets and liabilities in the books and their respective tax base. The impact is on account of deferred tax on timing difference on Expected Credit Loss.

5 Revenue from operations

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended 31 March 2017 by Rs. 1,718.72. There is no impact on the total equity and profit.

6 Remeasurements of post-employment benefit obligations

Under Ind AS, remeasurements i.e. actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss. Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. As a result of this change, the profit for the year ended 31 March 2017 increased by Rs. 22.19 Lakhs (1 April 2016 Rs.2.81 Lakhs). There is no impact on the total equity as at 31 March 2017 (1 April 2016).

17 The previous year figures have been regrouped/reclassified, wherever necessary to conform to the current presentation as per the schedule III of Companies Act, 2013.

Mar 31, 2016

Note No 1.: Terms/rights attached to equity shares

2 OPERATING LEASES DISCLOSURES Assets Taken on Lease

The company''s major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 13,10,177/- (Previous Year: 912,610/-) are charged as Rent and shown under the Note No. 26 âOther Expensesâ. These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

3 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

4 SIGNIFICANT ACCOUNTING POLICIES

wherever necessary to confirm to the current presentation as per the schedule III.

5 The previous year figures have been regrouped/reclassified

Mar 31, 2015

Note No 1.1: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(B) 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 proportion to the number of equity shares held by the shareholders.

Note No 2: Terms of Repayment, Nature of Securities in respect of Term Loans

(2.1) Rupee loan from Bank of India amounting to Rs.Nil (Previous Year : Rs.53,95,885/-) carries interest rate ranging from 12.45% to 13% p.a and was repayable in 12 quarterly installments. This loan facility was secured by first pari pasu charge on all (present and future) factory fixed assets of the company including equitable mortgage on the factory land and building at Vapi & Mumbai Office.

(2.2) Vehicle loan taken from ICICI Bank Limited carried interest @ 10.49% and is repayable in 36 monthly installment. The loan is secured by hypothecation of Vehicle.

(2.3) Vehicle loan taken from BMW Financial Services carried interest rate @ 9% and is repayable in 36 monthly installment. The loan is secured by hypothecation of Vehicle.

3 CONTIGENT LIABILITIES AND COMMITMENTS

a) CONTIGENT LIABILITIES

Particulars As at As at March 31,2015 March 31,2014

Disputed Income Tax LiabiIites 12,393,245 7,112,460

Disputed Sales Tax Liabilites 733,430 -

Disputed Central Excise & Service Tax Liabilities 1,735,873 1,730,140

Bond issued under Advance Licence Scheme - 1,524,318

Bond issued under Export Promotion Capital Goods Scheme 27,580,188 23,968,842

42,442,736 34,335,760

Notes:

(a) The segment revenue in the geographical segments considered for disclosure are as follows:-

(i) Revenue within India includes sales to customers located within India and Earnings in India.

(ii) Revenue outside India includes sales to customers located outside India and Earnings outside India.

(b) Segment Revenue, Segment Assets and Capital Expenditure include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

4 RELATED PARTY DISCLOSURES

(A) Names of related parties and description of relationship:

1. Enterprises over which key management personnel and relative of such personnel have significant influence

i) Modison (Partnership Firm)

ii) Modison Copper Pvt. Ltd.

iii) Modicon Pvt. Ltd.

iv) Dishah Innovative Solutions Pvt. Ltd.

v) Modison Engineering Pvt. Ltd.

2. Enterprises over which Company has Control:

i) Modison Contacts Pvt Ltd (w.e.f. 05/03/2015)- Subsidiary Company

3. Key Management Personnel

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

i) Mr. Kumar Jay Modi Wholetime Director

4. Relatives of Key Management Personnel

i) Mrs. Chandramani Devi Modi Mother of Mr. Rajkumar Modi

5 OPERATING LEASES DISCLOSURES Assets Taken on Lease

The company's major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 912,610/- (Previous Year: 579,850/-) are charged as Rent and shown under the Note No. 26 "Other Expenses". These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

6 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

7 The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the schedule III.

Mar 31, 2014

Note No 1.1: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(B) 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 proportion to the number of equity shares held by the shareholders.

Note No 2: Terms of Repayment, Nature of Securities in respect of Term Loans

(3.1) Rupee loan from Bank of India amounting to Rs.53,95,885/- (Previous Year : Rs.2,96,25,603/-) carries interest rate ranging from 12.45% to 13% p.a and was repayable in 11 quarterly installments. This loan facility was secured by first pari pasu charge on all (present and future) factory fixed assets of the company including equitable mortgage on the factory land and building at Vapi.

(3.2) Vehicle loan taken from BMW Financial Services carried interest rate ranging from 9% to 9.32% and was repayable in 36 monthly installment. The loan was secured by hypothecation of Vehicle.

Note No. 2.1:

The Company has not received any information from Vendors regarding their status under the Micro, Small and Medium Enterprise Development Act, 2006 and hence disclosures relating to amounts unpaid as at the end of reporting period together with interest paid/payable under this Act have not been given. The same has been relied upon by the Auditors.

Note No. 3.1: Rupee loan from Bank of India amounting to Rs. Nil (Previous Year : Rs. 47,80,388/-) carried interest rate ranging from 12.45% to 13%p.a and was repayable in 18 quarterly installments. This loan facility was secured by first pari pasu charge on all (present and future) factory fixed assets of the company including equitable mortgage on the factory land and building at Vapi.

Note No. 3.2: Vehicle loan taken from Axis Bank amounting to Rs. Nil (Previous Year : 13,06,758/-) carried interest rate @ 9.32% and was repayable in 36 monthly installments. The loan was secured by hypothecation of Vehicle.

Note No. 4.1: The amount of dividend per share of Re. 1.25 (Previous Year Re. 1.00) has been proposed to be distributied to equity shareholders for the year ended 31/03/2014. The total amount of dividend shall be Rs.47,456,097 /- including dividend distribution tax Rs. 6,893,597/- (Previous Year Rs. 37,964,878/- including dividend distribution tax Rs.5,514,878/-).

2 Derivatives: HEDGED:

The Company has entered into Forward Hedged Exchange Contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables including firm committment. The following are the outstanding Forward Exchange Contracts entered into by the Company:

3 RELATED PARTY DISCLOSURES

(A) Names of related parties and description of relationship:

1. Enterprises over which key management personnel and relative of such personnel have significant influence

i) Modicon Pvt. Ltd. ii) Modison Copper Pvt. Ltd. iii) Disha Innovative Solutions Pvt. Ltd. iv) Modison

2. Key Management Personnel

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

i) Mr. Kumar Jay Modi Wholetime Director

3. Relatives of Key Management Personnel

i) Mrs. Chandramani Devi Modi Mother of Mr. Rajkumar Modi

Note: Related Party relationship is as identified by the company and relied upon by the Auditors.

Note No 30.1: Director remuneration for previous year includes Rs. 69,93,549/- being provision made towards increase in remuneration of Mr. G.L.Modi w.e.f. 09.07.2012, the same was not paid pending the Central Government approval. During the year approval has been received and payment has been made as per the approval.

4 OPERATING LEASES DISCLOSURES

Assets Taken on Lease

The companyÂs major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 5,79,850/- (Previous Year: 5,47,050/-) are charged as Rent and shown under the Note No. 24 "Other Expenses". These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

5 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

6 The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the revised schedule VI.

Mar 31, 2013

1 EMPLOYEE BENEFITS

The disclosures as required under the Accounting Standard 15 (Revised) are as under:

The Company has schemes for the long term benefits such as Provident Funds, Gratuity and Leave encashment. In case of funded scheme, the funds are recognised by the Income tax authorities and administered through trustees/appropriate authorities. The Company''s benefit plans include gratuity and leave encashment. The companies Defined Contribution Plan includes Provident Fund. Accordingly related disclosure are as under:

2 Derivatives:

HEDGED:

The Company has entered into Forward Hedged Exchange Contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables including firm committment. The following are the outstanding Forward Exchange Contracts entered into by the Company:

3 RELATED PARTY DISCLOSURES

(A) Names of related parties and description of relationship:

1. Enterprises over which key management personnel and relative of such personnel have significant influence

i) Modicon Pvt. Ltd.

ii) Modison Copper Pvt. Ltd.

iii) Disha Innovative Solutions Pvt. Ltd.

iv} Modison

2. Key Management Personnel

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

3. Relatives of Key Management Personnel

i) Mr. Kumar Jay Modi Son of Mr. G. L. Modi

ii) Mrs. Chandramani Devi Modi Mother of Mr. Rajkumar Modi

Note: Related Party relationship is as identified by the company and relied upon by the Auditors.

4 OPERATING LEASES DISCLOSURES

Assets Taken on Lease

The company''s major leasing arrangements are in respect of staff quarters and office premises taken on Leave and License basis. The aggregate lease rentals of Rs 5,47,050/- {Previous Year: 4,24,272/-) are charged as Rent and shown under the Note No. 24 "Other Expenses". These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions

5 Balances of Trade Receivables, Trade Payables and''Loans and Advances are subject to confirmation and consequential adjustment, if any.

6 The previous year figures have been regrouped/reclassified, wherever necessary to confirm to the current presentation as per the revised schedule VI.

Mar 31, 2012

Note No 1.1: Terms/rights attached to equity shares

(A) The company has only one class of equity shares having a par value of Re. 1 per share. Each holder of equity shares is entitled to one vote per share. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(B) The amount of dividend per share of Re. 1.00 (Previous Year Re. 1.00) has been proposed to be distributied to equity shareholders for the year ended 31/03/2012. The total amount of dividend shall be Rs.37,714,201 /- including dividend distribution tax Rs. 5,264,201/- (Previous Year Rs. 37,714,201/- including dividend distribution tax Rs.5,264,201/-).

(C) 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 proportion to the number of equity shares held by the shareholders.

Note No 1.2: Details of sub-division of shares during the period of five years Immediately preceding the reporting date :

In the Financial Year 2007-08, 32,45,000 Equity Shares of Rs.10 each fully paid were sub-divided into 32,450,000 Equity Shares of Re.1 each fully paid up.

Note No 2.1: Terms of Repayment. Nature of Securities in respect of Term Loans

(i) Foreign currency loan from Citi Bank carries interest rate of 4.10% p.a. and is repayable in 12 quarterly installments, These facilities are secured by first pari pasu charge on all (Present and Future) factory fixed assets of the company including equitable mortgage on the factory land & building at Vapi..

(iia) Rupee loan from Bank of India amounting to Rs.4,962,607/- (March 31, 2011: Rs. 9,967,248/-) carries interest rate of 13.50%p.a and is repayable in 11 quarterly installments. This loan facility is secured by first pari pasu charge on all (Present and Future) factory fixed assets of the company including equitable mortgage on the factory land & building at Vapi.

(iib) Rupee loan from Bank of India amounting to Rs. 16,532,791/- (March 31, 2011: Rs. Nil) carries interest rate of 13.50% p.a and is repayable in 18 quarterly installments. This loans facility is secured by first pari pasu charge on all (Present and Future) factory fixed assets of the company including equitable mortgage on the factory land & building at Vapi.

(iii) Vehicle loan taken from Axis Bank carries interest rate @ 9.31% and is repayable in 36 monthly installments. The loan is secured by hypothecation of vehicle. .

(iv) Vehicle loan taken from BMW financial services carries interest rate @9.31% and is repayable in 36 monthly installment. The loan is secured by hypothecation of Vehicle.

Note No. 3.1 : Accounting Policy of Deferred Tax

The Deferred Tax for timing difference between Book Profits and Tax Profits for the year is accounted for using the tax rate and laws that have been enacted or substantially enacted as of the Balance Sheet Date. Deferred Tax assets arising from timing differences are recognized to the extent there is a virtual certainty that these would be realized in future and are reviewed for the appropriateness of their respective carrying values at each Balance Sheet Date,

Note No. 4.1:

Working capital facilities are secured by Hypothecation of stocks & book debts and further secured by collateral security of all movable and immovable factory properties.

Note No. 5.1 : Accounting Policies of Inventories Valuation

Consumable tools, raw material, packing material, work in progress, finished goods and stores & spares have been valued at lower of cost and net realisable value. Cost of finished goods and work-in-progress has been ascertained at estimated cost, Cost of raw material has been ascertained on weighted average cost basis. Cost of other inventories has been ascertained on First-ln-First-Out method (FIFO). Silver booked by customers for their process work has been valued at the rates at which the same is booked by them. Scrap is valued at Net Realizable Value.

Note No. 6.1 : Goods in transit

Raw Material includes goods in transit Rs. Nil (Previous Year Rs. 939,381/-)

7 CONTIGENT LIABILITIES AND COMMITMENTS

a) CONTIGENT LIABILITIES

Particulars As at As at

March 31, 2012 March 31,2011

Disputed Income Tax Liabiiites 1,312,740 456,084

Disputed Service Tax Liabilities 2,410,252 -

Bond issued under Advance Licence Scheme 1,670,761 -

Bond issued under Export Promotion Capital Goods 793,194 3,369,825

Scheme - -

6,186,947 3,825,909

b) COMMITMENTS

Particulars As at As at

March 31, 2012 March 31, 2011

Estimated amounts of Contracts remaining to be executed on Capital account and not provided

for (Net of Advances) 71,048,449 31,281,400 71,048,449 31,281,400

Note No. 8.1: Accounting Policies of Employee Benefit

i) Short Term Employee benefits are recognised as an expense at the undiscounted amounts in the Statement of Profit and Loss of the year in which the related service is rendered.

ii) Contribution payable to the recognised Provident Fund which is Defined Contribution Scheme is charged to Statement of Profit and Loss.

iii) Liabilities in respect of Defined Benefit Plans are determined based on actuarial valuation made by an independent actuary as at the Balance Sheet date. The actuarial gains or losses are recognised immediately in the Statement of Profit and Loss.

iv) In case of non-member of the Gratuity Fund, the same is provided as per the approval of Central Government and as per Payment of Gratuity Act, 1972, wherever applicable.

9 EMPLOYEE BENEFITS

The disclosures as required under the Accounting Standard 15 (Revised) are as under:

The Companay has schemes for the long term benefits such as Provident Funds, Gratuity and Leave encashment. In case of funded scheme,the funds are recognised by the Income tax authorities and administered through trustees/appropriate authorities.The Company's benefit plans include gratuity and leave encashment.The companies Defined Contribution Plan includes Provident Fund. Accordingly related diclosure are as under:

10 Derivatives:

HEDGED:

The Company has entered into Forward Hedged Exchange Contracts, being derivative instruments for hedge purpose and not intended for trading or speculation purposes, to establish the amount of currency in Indian Rupees required or available at the settlement date of certain payables and receivables. The following are the outstanding Forward Exchange Contracts entered into by the Company:

11 OPERATING LEASES DISCLOSURES Assets Taken on Lease

The company's major leasing arrangements are in respect of staff quarters and office premises taken on Leave and Licence basis. The aggregate lease rentals of Rs 424,272/- (Previous Year: 409,160/-) are charged as Rent and shown under the Note No. 24 "Other Expenses". These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

12 The Company has paid a contribution of Rs. Nil (Previous Year Rs. 50,000/-) to Bharatiya Janata Party, a political party.

13 Balances of Trade Receivables, Trade Payables and Loans and Advances are subject to confirmation and consequential adjustment, if any.

14 The Financial Statement for the year ended 31st March 2011 had been prepared as per the then applicable, prerevised Schedule VI of the Companies Act, 1956. Consequent to the notification under the Companies Act, 1956, the Financial Statement for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly the previous year's figures have also been reclassified to conform to the year's classification.

Mar 31, 2011

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) is Rs. 31,281,400 (previous year Rs. 6,758,250).

(Amount in Rupees)

2010-11 2009-10

2. CONTIGENT LIABILITIES:

a) Disputed Income Tax Liability 456.084 NIL

b) Bonds issued under Export Promotion Capital Goods 3,369,825 NIL Scheme

3. The Company has not received information from Vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006, and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given. The same has been relied upon by the Auditors.

4. Balances of Sundry Debtors, Loans & Advances and Creditors are subject to confirmation and consequential adjustment, if any.

5. Employee Benefits:

The disclosures as required under the Accounting Standard 15 (Revised) are as under: - The Company has schemes for long-term benefits such as Provident Fund, Gratuity and leave encashment. In case of funded scheme, the funds are recognized by the Income tax authorities and administered through trustees / appropriate authorities. The Companys defined benefit plans include gratuity and leave encashment. The companies Defined Contribution Plan includes Provident Fund. Accordingly related disclosures are as under:

6. RELATED PARTY DISCLOSURES:

a) LIST OF RELATED PARTIES AND RELATIONSHIPS:

PARTIES WHERE CONTROL EXIST:

I Companies / Partnership Firms / Proprietorship Concerns where the companys director (s) along with their relatives are Director(s) / Partners) / Proprietor hold more than 50% voting power or share:

i) Modicon Pvt. Ltd. (Formerly Modison Private Ltd.)

ii) Modison Copper Pvt. Ltd.

iii) Modison Chemtech Pvt. Ltd.

iv) Modison Contacts Pvt. Ltd.

v) Modison

vi) Modison Investments

vii) Modison International

viii)Anujay Corporation

II KEY MANAGEMENT PERSONNEL:

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

III RELATIVES OF KEY MANAGEMENT PERSONNEL:

Mr. S. M. Mody, Mr. Prakash Modi, Mr. Kumar Jay Modi, Mrs. Rama S. Modi, Mr. Anand Modi, Mr. O. P. Modi, Mrs. Chandramani Devi Modi, Mrs. Gini Devi Modi, Mrs. Lalita Devi Modi, Mr. Amit Modi, Mrs. Sarla G Modi, Mohanlal Modi H.U.F., G. L. Modi H.U.F., S. M. Mody H.U.F. and Mohanlal Modi (Estate).

7. OPERATING LEASES DISCLOSURE.

Assets Taken on Lease

The companys major leasing arrangements are in respect of staff quarters and office premises taken on Leave and Licence basis. The aggregate lease rentals of Rs 409,160 and Rs. Nil (Previous Year: 480,500 and Rs.400,000) are charged as Rent and shown under the Schedule of "Manufacturing Expenses" and "Sales, Administrative & Other Expenses" respectively. These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

8. Previous year figures have been re-grouped / rearranged / restated wherever considered necessary to make them comparable with those of the current year.

Mar 31, 2010

1. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of advances) is Rs. 6,758,250 (previous year Rs. 1,433,737)

2. CONTINGENT LIABILITIES:

(Amount in Rupees)

2009-10 2008-09

a) Disputed Custom Duty NIL 2,500,000

3. The Company has not received information from Vendors regarding their status under the Micro, Small and Medium Enterprises Development Act 2006, and hence disclosures relating to amounts unpaid as at the year end together with interest paid / payable under this Act have not been given. The same has been relied upon by the Auditors.

4. Balances of Sundry Debtors, Loans & Advances and Creditors are subject to confirmation and consequential adjustment, if any.

5. Employee Benefits:

The disclosures as required under the Accounting Standard 15 (Revised) are as under:-

The Company has schemes for long-term benefits such as Provident Fund, Gratuity and leave encashment. In case of funded scheme, the funds are recognized by the Income tax authorities and administered through trustees / appropriate authorities. The Companys defined benefit plans include gratuity and leave encashment. The companies Defined Contribution Plan includes Provident Fund. Accordingly related disclosures are as under:

6. RELATED PARTY DISCLOSURES:

a) LIST OF RELATED PARTIES AND RELATIONSHIPS:

I PARTIES WHERE CONTROL EXIST:

Companies / Partnership Firms / Proprietorship Concerns where the companys director (s) along with their relatives are Director(s) / Partner(s) / Proprietor hold more than 50% voting power or share:

i) Modison Pvt. Limited

ii) Modison Copper Pvt. Ltd.

iii) Modison Chemtech Pvt. Ltd.

iv) Modison Contacts Pvt. Ltd.

v) GLM Properties Pvt. Ltd.

vi) Modison

vii) Modison Investments

viii) Modison International

ix) Anujay Corporation

II KEY MANAGEMENT PERSONNEL:

i) Mr. G. L. Modi Managing Director

ii) Mr. Rajkumar Modi Wholetime Director

III RELATIVES OF KEY MANAGEMENT PERSONNEL:

Mr. S. M. Mody, Mr. P. C. Modi, Mr. Kumar Jay Modi, Mrs. Rama S. Modi, Mr. Anand Modi, Mr. O. P. Modi, Mrs. Chandramani Devi Modi, Mrs. Gini Devi Modi, Mrs. Lalita Devi Modi, Mr. Amit Modi, Mrs. Sarla G Modi, Mohanlal Modi H.U.F., G. L. Modi H.U.F., S. M. Mody H.U.F. and Mohanlal Modi (Estate).

7. OPERATING LEASES DISCLOSURE:

Assets Taken on Lease

The companys major leasing arrangements are in respect of residential / office premises taken on Leave and Licence basis. The aggregate lease rentals of Rs.480,500 and Rs.400,000 (Previous Year: 559,982 and Rs.2,400,000) are charged as Rent and shown under the Schedule of "Manufacturing Expenses" and "Sales, Administrative & Other Expenses" respectively. These leasing arrangements, which are cancelable, range between eleven months and three years generally or longer and are usually renewable by mutual consent at mutually agreed terms and conditions.

8. Previous year figures have been re-grouped / rearranged / restated wherever considered necessary to make them comparable with those of the current year.

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