Notes to Accounts of Monotype India Ltd.

Mar 31, 2017

1. Hon''ble Calcutta High Court vide order dated 9^th December, 2014 had approved the scheme for amalgamation of Mono herbicides Ltd, Gateway Distributor Limited, Unicorn Vyapar Limited, Subhankar Vinimay Limited, Swagatam Tradevin Limited and Lotus Financial Management Private Limited with Monotype India Limited. At the time of Merger, Swagatam Tradevin Limited had Preference Shares of Monotype India Limited in its Stock in Trade and the same was transferred as stock in Trade in books of Monotype India Ltd. In Current Financial Year, Company have corrected treatment of Stock in trade & Preference Share Capital (i.e Eliminating Intercompany holding) in its books and corresponding impact of the same has been given in Amalgamation Adjustment Reserve and subsequently balance of Amalgamation Adjustment Reserve have been transferred to General Reserve.

2. Segment Information

As per the definition of ''Business Segment'' and ''Geographical Segment'' contained in Accounting Standard 17 “Segment Reporting”, the management is of the opinion that the Company''s operation comprise of Trading in Shares and incidental activities thereto, there is neither more than one reportable business segment nor more than one reportable geographical segment, and, therefore, segment information as per Accounting Standard 17 is not required to be disclosed.

3. Related Party Transaction

Disclosure in accordance with Accounting Standard-18 - Related Party transactions during the year

I) Companies/ Firms in which Director, Director''s relatives are Directors/Shareholders/Partners Companies

Truce Multitrade Ltd. BT Divine Power & Mining Corporation Ltd.

Elan Capital Advisors Pvt. Ltd. Pranjali Infrastructure Pvt. Ltd.

Cinch Multitrade Pvt. Ltd. Divine Power & Mining Corporation Ltd.

Pranjali Services Pvt. Ltd. 52 Weeks Entertainment Ltd.

Four Lions Films Pvt. Ltd. Pranjali (India) Pvt Ltd.

Venus Intergrated Textile Park Pvt Ltd Adrina Realties Pvt. Ltd LLP

Innocent Investment Consultants LLP Sandeep Ispat Traders LLP

ii) Key management personnel

Naresh Jain (Whole Time Director) Harsh Jain (CFO and Director)

Rohitash Bhomia (Resigned w.e.f 13/08/2016) Pradeep Gupta (Company Secretary)

iii) Relatives of Key management personnel

Karishma Jain (Daughter of Whole Time Director)

4. Contingent Liability to the extended not provided for

Central Excise Liability under dispute Rs, 16,34,3 7/- (P.Y Rs, 16,34,397 /-).

5. Prior Year Comparatives

Previous year''s figures have been regrouped, rearranged or recanted wherever necessary to confirm to this year''s classification. Figures in brackets pertain to previous year.

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Mar 31, 2016

2. Other Notes on Accounts:

1) Contingent Liabilities in respect of : As at As at

31.03.2016 31.03.2015

(Rs.) (Rs.)

Central Excise Liability under dispute 16,34,397 16,34,397

2) In the opinion of the management, the current assets, loans and advances have the values on realization in the ordinary course of business at least equal to the amounts at which they are stated in the balance sheet except the trade receivables and loans and advances which falls under management''s policy for bad and doubtful debts as taken in the previous years.

3) All Debit and Credit balances are subject to confirmation and reconciliation.

4) There are no dues to Micro, Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties having been identified on the basis of information available with the Company and relied upon by the auditors.

5) Related Parties Disclosures in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India:-

6) The Company operates in one segment and hence no separate disclosure of segment-wise information has been made as per Accounting Standards (AS-17) Segment Reporting issued by the Institute of Chartered Accountants of India.

7) The financial statements for the year ended 31st March, 2016 have been prepared as per the requirement of the Schedule III to the Companies Act, 2013. The previous year''s figures have been accordingly regrouped / classified to confirm to the year''s classification.

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Mar 31, 2014

1) Contingent Liabilities in respect of: As at As at 31.03.2014 31.03.2013

Central Excise Liability under dispute 16,34,397 16,34,397

2) In the opinion of the management, the current assets, loans and advances have the values on realization in the ordinary course of business at least equal to the amounts at which they are stated in the balance sheet except the trade receivables and loans and advances which falls under management''s policy for bad and doubtful debts as taken in the previous years.

3) Debit and Credit balances are subject to confirmation and reconciliation.

4) There are no dues to Micro, Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties having been identified on the basis of information available with the Company and relied upon by the auditors.

5) The Company operates in one segment and hence no separate disclosure of segment-wise information has been made as per Accounting Standards (AS-17) Segment Reporting issued by the Institute of Chartered Accountants of India.

6) In view of the revision to the Schedule VI as per notification issued by the Central Government, the financial statement for the year ended 31st March, 2014 have been prepared as per the requirement of the Revised Schedule VI to the Companies Act, 1956. The previous year''s figures have been accordingly regrouped / classified to confirm to the year''s classification.

The accompanying notes are an integral part of the financial statements

Note:Previous Year figures has been regrouped/rearranged wherever considered necessary.

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Mar 31, 2013

1) In the opinion of the management, the current assets, loans and advances have the values on realization in the ordinary course of business at least equal to the amounts at which they are stated in the balance sheet except the trade receivables and loans and advances which falls under management''s policy for bad and doubtful debts as taken in the previous yea''

2) Debit and Credit balances are subject to confirmation and reconciliation.

3) There are no dues to Micro, Small & Medium Enterprises as at Balance Sheet date and no interest has been paid to any such parties. This is based on the information on such parties having been identified on the basis of information available with the Company and relied upon by the audito''

4) Related Parties Disclosures in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India :- Related Parties and description of relationship

a. Promoter Company : Swagatam Tradevin Limited

b. Nature of transaction with the related party

Promoter Company : Swagatam Tradevin Limited Unsecured Loan Taken : 56,084/- Amount Outstanding at year end : 3,56,084/- Previous Year Balance : 3,00,000

5) The Company operates in one segment and hence no separate disclosure of segment- wise information has been made as per Accounting Standards (AS-17) Segment Reporting issued by the Institute of Chartered Accountants of India.

6) In view of the revision to the Schedule VI as per notification issued by the Central Government, the financial statement for the year ended 31st March, 2013 have been prepared as per the requirement of the Revised Schedule VI to the Companies Act, 1956. The previous year''s figures have been accordingly regrouped/classified to confirm to the year''s classification.

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Mar 31, 2012

I. Terms/rights attached to equity shares

The Company’s authorised capital consists of two classes of shares, referred to as equity shares and preference shares, having par value of Rs. 10/- and Rs. 100/- each respectively. Each holder of equity shares is entitled to one vote per share. The Preference shareholders have a preferential right over equity share holders , in respect of repayment of capital and payment of dividend. However, no such preference shares have been issued by the Company during the years ended 31st March,2011 & 31st March,2012.The Preference Shares shall be redeemed at par at the end of 20 years from the date of allotment, i.e. 30.03.2018.The Company has the option to however, redeem the shares at par at any time after the expiry of an initial period of 60 months from the date of allotment, i.e. after 30.03,2003 by giving the shareholders three month notice of its intention to do so.

1. Contingent liabilities in respect of :

As at As at 31.03.2012 31.03.2011 (Rs.) (Rs.)

Excise liability under dispute 16,34,397 16,34,397

The above figures represent the amount as on 31.03.1999, since the updated figures as on 31.03.2012 are not available.

2. The operations of the manufacturing units of the Company at Bangalore has been suspended from 01.08.1999 subsequently closed and disposed off. Further, the marketing and other Offices of the Company have also been closed and have become non operational. Earlier the various credit balances details

retrieved prior to the suspension of operations and such other adjustments as considered necessary by the management are taken on the basis of available records. The balances compiled was not reconciled with the primary and secondary records since various supporting and other related details were not accessible and these records could not be made available for verification.

3. There are no dues due to the small scale and ancillary industrial undertakings.

4. As the manufacturing units of the company at Bangalore had been closed, the management is exploring possibilities of other business activities. Pending utilization of funds in other business activities, these have been deployed temporarily in Shares & Securities / Loans and Advances. In the opinion of the management, the company as such has not undertaken any activity meant for Non-Banking Financial Companies as its business operations, requiring adherence to the requirement of various directions issued by Reserve Bank of India for Non-Banking Financial Companies.

5. The accumulated losses of the company are in excess of its net worth. The management is exploring possibility of other business activities for the company, and accordingly, the accounts have been prepared on the basis that the Company is a going concern.

a. The above related party information has been disclosed to the extent such parties have been identified by the management on the basis of information available. This has been relied upon by the Auditors.

6. The operations of the Company had been closed since 01-08-1999 (Refer Note no. 12.B.2 ), therefore the surplus funds are deployed in deposits and investments and that is the only reportable segment as specified in Accounting Standard 17 issued by the Institute of Chartered Accountants of India.

Preference shares being non-cumulative the Earning Per Share has been computed without considering the dividend on preference shares. Accordingly, the Earning Per Share of previous year has been shown on the same basis.

7. a. Provision for current tax has not been made due to losses during the year.

b. The company has significant amount of carry forward losses and depreciation under the Income Tax Act. However, as a matter of prudence deferred tax assets arising on account of the same has not been created by the management.

8. Previous year figures:

During the year ended 31st March 2012, Revised Schedule VI notified under the Companies Act, 1956 became applicable to the Company, for preparation and presentation of its Financial Statements. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements .However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also reclassified the previous year figures in accordance with the requirements applicable in the current year.

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Mar 31, 2010

1. Contingent liabilities in respect of: As at As at

31.03.10 31.03.09

Excise liability under dispute 16,34,397 16,34,397

The above figures represent the amount as on 31.03.1999, since the updated figures as on 31.03.2010 are not available.

2. The operations of the manufacturing units of the Company at Bangalore had been suspended from 01.08.1999 subsequently closed and disposed off. Further, the marketing and other Offices of the Company have also been closed and have become non operational. Earlier The various credit balances details retrieved prior to the suspension of operations and such other adjustments as considered necessary by the management are taken on the basis of available records. The balances compiled was not reconciled with the primary and secondary records since various supporting and other related details were not accessible and these records could not be made available for verification.

3. There are no dues due to the small scale and ancillary industrial undertakings.

4. As the manufacturing units of the company at Bangalore had been closed, the management is exploring possibilities of other business activities. Pending utilization of funds in other business activities, these have been deployed temporarily in Shares & Securities / Loans and advances. In the opinion of the management, the company as such has not undertaken any activity meant for Non-Banking Financial Companies as its business operations, requiring adherence to the requirement of various directions issued by Reserve Bank Of India for Non-Banking Financial Companies.

5. The accumulated losses of the company are in excess of its net worth. The management is exploring possibility of other business activities for the company, and accordingly, the accounts have been prepared on the basis that the Company is a going concern.

6. Related party disclosure in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India:

a. Names of Related parties and description of relationship Associate Company - Jalan Chemical Industries Private Limited

b. Nature of transaction with the related party Associate Company:

Payment of Unsecured Loan - Rs. 12,50,000/-

Unsecured Loan Taken - Rs. 80,000/-

Amount outstanding at year-end - Rs. 22,46,886/-

c. The above related party information has been disclosed to the extent such parties have been identified by the management on the basis of information available. This has been relied upon by the Auditors.

7. The operation of the company had been closed since 01-08-1999 (Refer Note No. 2 of Notes on Accounts), therefore the surplus funds are deployed in deposits and investments and that is the only reportable segment as specified in Accounting Standard 17 issued by The Institute of Chartered Accountants of India.

8. a. Provision for current tax has been made as per the provisions of the Income Tax Act, 1961.

b. The Company has significant amount of carry forward losses and depreciation under the Income Tax Act. However as a matter of prudence deferred tax assets arising on account of the same has not been created by the management.