Notes to Accounts of NTC Industries Ltd.

Mar 31, 2018

1 In the opinion of the Board the current assets, loans and advances are not less than the stated value if realised in ordinary course of business. The provisions for all known liabilities are adequate. There are no contingent liabilities except stated, as informed by the management.

2 The Business of the company falls under a single segment i.e. Manufacturing of Cigarette and Smoking Mixture. In view of the general classification notified by Central Government in exercise of powers conferred u/s 129 of Companies Act, 2013 for companies operating in single segment, the disclosure requirement as per Indian Accounting Standard - 108 on “Operating Segment” are not applicable to the company. The company’s business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

3 Post Employment Benefits

In accordance with the Payment of Gratuity Act, 1972 of India, the Company provides for gratuity, a defined retirement benefit plan (the ‘Gratuity Plan’) covering eligible employees. Liabilities with regard to such Gratuity Plan are determined by actuarial valuation and are charged to revenue in the period determined.

The following tables sets out the status of the benefit plan as per actuarial valuation as on March 31, 2018 and as recognised in the financial statements in respect of employee benefit schemes:

4 In terms of confirmation of sale of assets of New Tobacco Co. Ltd. (In Liquidation) in favour of the Company vide order dated 19^th April, 2006 of Calcutta High Court. Conveyance deed of Siliguri Property is yet to be executed for transfer of title in favour of the Company.

5 A suit has been filed against the company in the year 1999 for recovery of ‘ 20,000,000/- along with interest which is still pending before the Hon’ble High Court, Kolkata. The company disputes the claim of the party and as the matter is sub-judice no provision for interest has been made.

6 In view of the amendment made in the Union Budget 2003 with retrospective effect, the Company is liable to refund excise duty amounting to Rs. 49,238,160/- received/ receivable in terms of notification no.32/99 dated 8^th July, 1999 issued by the Central Government, on account of Badarpur unit in Assam. The Company had challenged the amendment in Hon’ble High Court at Guwahati and subsequently the matter was transferred to Hon’ble Supreme Court of India. The Hon’ble Supreme Court vide its order dated 19^th September, 2005 has confirmed such retrospective amendment made by the Central Government through its Budget Notification. However, the company was of the view that the amendment was not applicable to it and a clarification / modification petition to that effect was filed and admitted by the Hon’ble Supreme Court. On 31^st October, 2007, the Central Excise Department had passed a fresh adjudication order confirming the demand and in 2008 the company has appealed before the Appellate Tribunal which was brought to the notice of the Hon’ble Supreme Court. The Hon’ble Supreme Court disposed off the petition on 25^th March, 2008 with a direction that appeal shall be decided by appellate authority on merits and in accordance with law. The appeal filed before the Tribunal was disposed off without relief. The Company moved to Hon’ble High court at Guwahati but failed to get any relief against the order dated 19.04.2012, the company has again filled the appeal before the Hon’ble Supreme Court of India. The Hon’ble Supreme Court of India vide order dated 07.02.2014 set aside the order of the Hon’ble High court at Guwahati and requested to deal with the questions of law set aside in its previous order. In terms of this the hon’ble High Court at Guwahati vide its order dated 19.11.2014 remanded the matter to CESTAT at Kolkata for consideration of the matter in accordance of law. The said appeal filed before the CESTAT at Kolkata is allowed vide order dated 03.08.2016 and SCN dated 28.08.2001 and dated 10.09.2001 were set aside.

Further to this the company has accounted for during financial year 2000-01 a sum of Rs. 40,493,280/- as excise duty refund receivable (Badarpur) and a sum of ‘ 21,548,160/- towards excise duty payable (Badarpur) in terms of the above mentioned notification. The reversal effect of the same is given in the books of Account during this year and the balancing figure of Rs, 18,945,120/- has been charged to profit & loss account. The same has been shown as exceptional item in the Statement of Profit & Loss account.

7 The company has during the year under review paid total entry tax due along with upto financial year 2016-17 liability of Rs Rs. 4,56,199/- without waiting for the out come of appeal before the Calcutta High court against the entry tax imposed by state government on the import of input from other states for ease of business.

8 In 2015 a group of minority shareholders had filed a suit against the company in the court of Learned Fourth Civil Judge (Junior Division) at Sealdah, West Bengal and Learned third Civil Judge at Barasat, West Bengal. Since the matter is sub judice in the court, any disclosures given at this moment would be prejudicial to the interest of the company and that of the stakeholders.

9. The Company has adopted Indian Accounting Standard (Ind AS), prescribed under Section 133 of the Companies Act, 2013 read with the relevant rules thereunder, with effect from April 01, 2017, with the transition date of April 01, 2016.

10 The figures of previous year have been reclassified and regrouped wherever considered necessary. The accompanying notes 1 to 43 are an integral part of the Financial Statements

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Mar 31, 2016

1. Rights, preferences & restrictions to shares & restrictions on distribution of dividend and repayment of capital

The Company has Issued only data of equity shares, each shareholder a t g*# for one vote per share. Dividend proposed (If any) by frx> Board of Directors, i* subject to the approval of shareholders, except in case of intern dividend. In the event of Liquidation. the shareholders of Ordinary Shares are eligible to receive the remaining assets of the Company after distribution of an the preferential amounts, n proportion to their shareholding.

2. In the opinion of the Board the current assets, loans and advances are not less than the stated value if realized in ordinary course of business. The provisions for all known liabilities are adequate. There are no contingent liabilities except stated, as Informed by the management

3. The Business of the company falls under a single segment i.e. Manufacturing of Cigarette and Smoking Mixture. In view of the general classification notified by Central Government in exercise of powers conferred u/s 129 of Companies Act. 2013 for companies operating in single segment, the disclosure requirement as per Accounting Standard - 17 on "Segment Reporting'' are not applicable to the company, The company''s business Is mainly concentrated In similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

4. In terms of confirmation of sale of assets of New Tobacco Co. Ltd. (In Liquidation) In favour of the Company vide order dated 19''" April, 2006 of Calcutta High Court.. Conveyance deed of Siliguri Property is yet to be executed for transfer of title In favour of the Company.

5. A suit has been filed against tho company in the year 1999 for recovery of Rs.20,000,000/- along with interest which is still pending before the Hon''ble High Court, Kolkata. The company disputes the claim of the party and as the matter is sub-judice no provision for interest has been made.

6. In view of the amendment made in the Union Budget 2003 with retrospective effect, the Company is liable to refund excise duty amounting to Rs.49,238,160/- received/ receivable in terms of notification no,32/99 dated 8^r July, 1999 issued by the Central Government, on account of Badarpur unit in Assam and interest thereon amounting to Rs. 13,51,65,973 (PY Rs 12,56,93,128/-) up to 31“ March, 2016. The Company had challenged the amendment in Hon''ble High Court at Guwahati and subsequently the matter was transferred to Hon''ble Supreme Court of India, The Hon''ble Supreme Court vide its order dated 19^,r September, 2005 has confirmed such retrospective amendment made by the Central Government through its Budget Notification. However, the company was of the view that the amendment was not applicable to it and a clarification / modification petition to that effect was filed and admitted by the Hon''ble Supreme Court. On 31October, 2007, the Central Excise Department had passed a fresh adjudication order confirming the demand and the company has appealed before the Appellate Tnbunal which was brought to the notice of the Hon’ble Supreme Court. The Hon''ble Supreme Court disposed off the petition on 25''^h March, 2008 with a direction that appeal shall be decided by appellate authority on merits and in accordance with law. The appeal filed before the Tribunal was disposed of! without relief. The Company moved to Hon''ble High court at Guwahati but failed to get any relief against the order dated 19.04.2012, the company has again filled the appeal before the Hon''ble Supreme Court of India. The Hon''ble Supreme Court of India vide order dated 07.02.2014 set aside the order of the Hon''ble High court at Guwahati and requested to deal with the questions of law set aside in its previous order. In terms of this the Hon''ble I Ugh Court at Guwahati vide its order dated 19.11,2014 remanded the matter to CESTAT at Kolkata for consideration of the matter in accordance of law The said appeal is still pending to be decided. The company is confident to get the full relief as the entire benefit was passed on to the consumer and as such the company does not accept any further liability and no provision is considered necessary based on the expert legal advice. Further to this the company has accounted for during financial year 2000-01 a sum of Rs. 40,493,280/- as excise duty refund receivable (Badarpur) and Rs.21,648,160/- towards excise duty payable (Badarpur) In terms of the above mentioned notification.

7. The company has during the year under review has filed an appeal before the Calcutta High court against the entry tax imposed by state government on the import of input from other states and accordingly not paid the entry tax to the tune of Rs.2,16,626 (P.Y. Rs, 24,757/-) till the date of financial statements. But the same has been provided for in the financial statements,

8. Contingent Liability in previous year includes Assessed VAT of Rs 110.24 lakhs for the Financial Year 2011-12. Company has preferred appeal before the appellate authority against this order. This demand of VAT is due to wrong treatment of the VAT deducted at source by the government contracted from the transferee company at the time of demerger in 2010*11 and wrongly deposited in the name of the company. The said appeal is decided in favour of Company.

9. In the preceding financial year a group of minority shareholders had filed a suit against the company in the court of Learned Fourth Civil Judge (Junior Division) at Sealdah, West Bengal. Since the matter is subjudice In the court, any disclosures given at this moment would be prejudicial to the interest of the company and that of the stakeholders.

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Mar 31, 2015

A. Rights, preferences & restrictions to shares & restrictions on distribution of dividend and repayment of capital

The Company has issued only class of equity shares having p ar v alue of 10/- per share . Each shareholder is eligible for one vote per share. Dividend proposed (if any) by the Board of Directors, is subject to the approval of shareholders, except in case of interim dividend. In the event of Liquidation, the shareholders of Ordinary Shares are elig ible to rec eive th e re maining assets of the Company after distribution of all the preferential amounts, in proportion to their shareholding.

2.1. In the opinion of the Board the current assets, loans and advances are not less than the stated value if realised in ordinary course of business. The provisions for all known liabilities are adequate. There are no contingent liabilities except stated, as informed by the management.

2.2. The Business of the company falls under a single segment i.e. Manufacturing of Cigarette and Smoking Mixture. In view of the general classification notified by Central Government in exercise of powers conferred u/s 129 of Companies Act, 2013 for companies operating in single segment, the disclosure requirement as per Accounting Standard - 17 on "Segment Reporting" are not applicable to the company. The company's business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

* Detail of assets does not include value of part of a building given on lease since its separate value could not be ascertained from whole block.

2.3. Post Employment Benefits

a) Defined Contribution Plans: The Company has recognised an expense of Rs.24,29,349/- (Previous Year Rs. 25,04,661/-) towards the defined contribution plans.

b) Defined Benefit Plans: As per actuarial valuation as on March 31,2015 and recognised in the financial statements in respect of employee benefit schemes:

The Estimates of future salary increases, considered in actuarial valuation takes account 5 of inflation, seniority, promotion and other relevant factors such as supply and demand in employment market.

Discount rate is based upon the market yields available on Government Bonds at the 6 accounting date with a term that matches with that of liabilities

2.4. Related party disclosures:-

In terms of Accounting Standard-18 on "Related Party Disclosures", related party disclosures are as ^^^^^under:

(i) Other related parties with whom the company had transactions:-

Note: - (i) Previous year figures have been given in brackets.

(ii) As the liability of gratuity and compensated absence are provided on actuarial basis for the company as a whole, the amount pertaining to the directors are not ascertainable and therefore not included in the above

(iii) Related party relationships are identified by the company on the basis of available information.

2.5. In terms of confirmation of sale of assets of New Tobacco Co. Ltd. (In Liquidation) in favour of the Company vide order dated 19th April, 2006 of Calcutta High Court, the Joint Special Officers executed the deed and / or deeds of conveyance in respect of all the immovable properties except property at siliguri in favour of Company or its nominee and issued necessary sale certificates for plant & machineries and all assets and properties in favour of the Company. Conveyance deed of Siliguri Property is yet to be executed for transfer of title in favour of the Company.

2.6. During the year under review company has formed four wholly owned subsidiaries. In terms of strategic decision to unlock the land bank of the company some surplus land and buildings were got registered in the name of the two wholly owned subsidiaries. These surplus land and buildings are being used for construction of warehouses and godown to generate rental income.

2.7 A suit has been filed against the company in the year 1999 for recovery of Rs. 20,000,000/- along with interest which is still pending before the Hon'ble High Court, Kolkata. The company disputes the claim of the party and as the matter is sub-judice no provision for interest has been made.

2.8 In view of the amendment made in the Union Budget 2003 with retrospective effect, the Company is liable to refund excise duty amounting to Rs. 49,238,160/- received/ receivable in terms of notification no.32/99 dated 8th July, 1999 issued by the Central Government, on account of Badarpur unit in Assam and interest thereon amounting to Rs. 12,56,93,128 (PY Rs. 11,62,20,283/-) upto 31st March, 2015. The Company had challenged the amendment in Hon'ble High Court at Guwahati and subsequently the matter was transferred to Hon'ble Supreme Court of India. The Hon'ble Supreme Court vide its order dated 19th September, 2005 has confirmed such retrospective amendment made by the Central Government through its Budget Notification. However, the company was of the view that the amendment was not applicable to it and a clarification / modification petition to that effect was filed and admitted by the Hon'ble Supreme Court. On 31st October, 2007, the Central Excise Department had passed a fresh adjudication order confirming the demand and the company has appealed before the Appellate Tribunal which was brought to the notice of the Hon'ble Supreme Court. The Hon'ble Supreme Court disposed off the petition on 25th March, 2008 with a direction that appeal shall be decided by appellate authority on merits and in accordance with law. The appeal filed before the Tribunal was disposed off without relief. The Company moved to Hon'ble High court at Guwahati but failed to get any relief against the order dated 19.04.2012, the company has again filled the appeal before the Hon'ble Supreme Court of India. The Hon'ble Supreme Court of India vide order dated 07.02.2014 set aside the order of the Hon'ble High court at Guwahati and requested to deal with the questions of law set aside in its previous order. In terms of this the hon'ble High Court at Guwahati vide its order dated 19.11.2014 remanded the matter to CESTAT at Kolkata for consideration of the matter in accordance of law. The company is confident to get the full relief as the entire benefit was passed on to the consumer and as such the company does not accept any further liability and no provision is considered necessary based on the expert legal advice. Further to this the company has accounted for during financial year 2000-01 a sum of Rs. 40,493,280/- as excise duty refund receivable (Badarpur) and Rs. 21,548,160/- towards excise duty payable (Badarpur) in terms of the above mentioned notification.

2.9 During the year it is decided to appeal before the Calcutta High court against the entry tax imposed by state government on the import of input from other states and accordingly not paid the entry tax to the tune of Rs. 24,757/- till 31st March 2015.

2.10 During the year under review, company has disposed a portion of surplus and vacant land and building appurtenant thereto with the purpose to unlock idle land bank of the company, for which approval from shareholders was obtained by way of Postal Ballot notice dated 14.11.2014. A group of shareholders have filed a suit against the company and its officers and have obtained an interim injunction which challenges the disposal contending the disposal at a value below the fair market value. The matter is sub-judice and the management states that the disposal is at fair market value and at terms and conditions with an aim to draw future benefit. The management further states that the transaction has not caused any financial loss to either the company or its shareholders and does not foresee any provision to be made for any future liability arising due to the above transaction.

2.11 Contingent Liability includes Assessed VAT of Rs. 110.24 lakhs for the Financial Year 2011-12. Company has preferred appeal before the appellate authority against this order. This demand of VAT is due to wrong treatment of the VAT deducted at source by the government contractee from the transferee company at the time of demerger in 2010-11 and wrongly deposited in the name of the company.

2.12 Contingent liabilities : ( Rs. in Lacs) Particulars As at 31.03.15 As at 31.03.14

a) Claims against the company not acknowledged as debt 144.54 144.54

b) Disputed Liabilities relating to Central Excise Demand 9006.02 8911.29

c) Disputed Liabilities rela ting to VAT 110.24 -

d) Disputed Liabilities relating to Entry Tax 0.25 -

2.13 During the year under review, the company has changed the method of providing depreciation on Fixed Assets from WDV to SLM. Pursuant to such change, Depreciation for current year is short by Rs. 31.73/- lacs. Further depreciation upto 31.03.14 has been charged in excess by Rs. 515.55 lacs.

2.14 During the year under review, Unpaid & Unclaimed Dividend for the financial year 2006-07 was due to be transferred to the credit of Investor Education & Protection Fund (IEPF). However, due to some technical errors the same was delayed and transferred before the signing of financial statements.

2.15 The figures of previous year have been reclassified and regrouped wherever considered necessary.

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Mar 31, 2014

1.1. The Company is in communication with its suppliers to ascertain the applicability of “The Micro, Small and Medium Enterprises Development Act, 2006". As at the date of this balance sheet the company has not received any communications from any of its suppliers regarding the applicability of the Act to them. This has been relied upon by the auditors.

1.2. In the opinion of the Board the current assets, loans and advances are not less than the stated value if realised in ordinary course of business. The provisions for all known liabilities are adequate. There are no contingent liabilities except stated, as informed by the management.

1.3. The Business of the company falls under a single segment i.e. Manufacturing of Cigarette and Smoking Mixture. In view of the general classification notified by Central Government in exercise of powers conferred u/s 211(3C) of Companies Act, 1956 for companies operating in single segment, the disclosure requirement as per Accounting Standard - 17 on “Segment Reporting" are not applicable to the company. The company''s business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

a) Defined Contribution Plans: The Company has recognised an expense of Rs.34, 28,655/- (Previous Year Rs. 26, 81,672/-) towards the defined contribution plans.

b) Defined Benefit Plans: As per actuarial valuation as on March 31, 2014 and recognised in the financial statements in respect of employee benefit schemes:

1.4. Related party disclosures:-

In terms of Accounting Standard-18 on "Related Party Disclosures", related party disclosures are as under:

(i) Other related parties with whom the company had transactions:- (A) Key Management Personnel and their relatives:-

(B) Enterprises over which Key Management Personnel / major shareholders / their relatives have significant influence: -

1.5. The Hon''ble High Court, Kolkata has confirmed sale of assets of New Tobacco Co. Ltd. (In Liquidation) in favour of the Company vide its order dated 19th April, 2006 and directed the Joint Special Officers to execute the deed and / or deeds of conveyance in respect of immovable properties and to issue necessary sale certificates for plant & machineries and all assets and properties in favour of the Company. Conveyance deeds of properties were to be executed for transfer of title in favour of the Company and the same is in the process.

1.6. In view of the amendment made in the Union Budget 2003 with retrospective effect, the Company is liable to refund excise duty amounting to Rs. 49,238,160/- received/ receivable in terms of notification no.32/99 dated 8th July, 1999 issued by the Central Government, on account of Badarpur unit in Assam and interest thereon amounting to Rs 1,16,220,283/- (PY Rs.1,06,747,438/-) upto 31st March, 2014. The Company had challenged the amendment in Hon''ble High Court, Guwahati and subsequently the matter was transferred to Hon''ble Supreme Court of India. The Hon''ble Supreme Court vide its order dated 19th September, 2005 has confirmed such retrospective amendment made by the Central Government through its Budget Notification. However, the company was of the view that the amendment was not applicable to it and a clarification / modification petition to that effect was filed and admitted by the Hon''ble Supreme Court. On 31st October, 2007, the Central Excise Department had passed a fresh adjudication order confirming the demand and the company has appealed before the Appellate Tribunal which was brought to the notice of the Hon''ble Supreme Court. The Hon''ble Supreme Court disposed off the petition on 25th March, 2008 with a direction that appeal shall be decided by appellate authority on merits and in accordance with law. The appeal filed before the Tribunal was disposed off without relief. The Company moved to Hon''ble Guwahati High court and failed to get any relief. The company has again filled the appeal before the Hon''ble Supreme Court of India which set aside the impugned order and remanded the matter to the High Court with a request to deal with the questions of law.The company is confident to get the full relief as the entire benefit was passed on to the consumer and as such the company does not accept any further liability and no provision is considered necessary based on the expert legal advice. Further to this the company has accounted for during financial year 2000-01 a sum of Rs. 40,493,280/- as excise duty refund receivable (Badarpur) and Rs.21,548,160/- towards excise duty payable (Badarpur) in terms of the above mentioned notification.

1.7 A suit has been filed against the company in the year 1999 for recovery of Rs.20,000,000/- along with interest which is still pending before the Hon''ble High Court, Kolkata. The company disputes the claim of the party and as the matter is subjudice no provision for interest has been made.

1.8. Contingent liabilities :

As at 31st March,(Rs. in Lacs)

2014 2013

a) Interest claims against the company not acknowledged as debt 144.54 144.54

b) Disputed Liabilities relating to Central Excise

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Mar 31, 2013

A POST EMPLOYMENT BENEFITS

a) Defined Contribution Plans : The Company has recognised an expense of Rs. 2,681,672/- (Previous year Rs. 3,528,187/-) towards the defined contribution plans.

B RELATED PARTY DISCLOSURES

In terms of Accounting Standard-18 on "Related Party Disclosures", related party disclosures are as under: (i) Other related parties with whom the company had transactions:

The Hon''ble High Court, Calcutta has confirmed sale of assets of New Tobacco Co. Ltd. (In Liquidation) in favour of the Company vide its order dated 19th April, 2006 and directed the Joint Special Officers to execute the deed and/or deeds of conveyance in respect of immovable properties and to issue necessary sale certificates for plant & machineries and all assets and properties in favour of the Company. Conveyance deed of some properties is yet to be executed for transfer of title in favour of the Company.

In view of the amendment made in the Union Budget 2003 with retrospective effect, the Company is liable to refund excise duty amounting to Rs. 49,238,160/- received/receivable in terms of notification no. 32/99 dated 8th July, 1999 issued by the Central Government, on account of Badarpur unit in Assam and interest thereon amounting to Rs. 1,06,747,438/- upto 31st March, 2013. The Company had challenged the amendment in Hon''ble High Court, Guwahati and subsequently the matter was transferred to Hon''ble Supreme Court of India. The Hon''ble Supreme Court vide its order dated 19th September, 2005 has confirmed such retrospective amendment made by the Central Government through its Budget Notification. However, the company was of the view that the amendment was not applicable to it and a clarification/modification petition to that effect was filed and admitted by the Hon''ble Supreme Court. On 31st October, 2007, the Central Excise Department had passed a fresh adjudication order confirming the demand and the company has appealed before the Appellate Tribunal which was brought to the notice of the Hon''ble Supreme Court. The Hon''ble Supreme Court disposed off the petition on 25th March, 2008 with a direction that appeal shall be decided by appellate authority on merits and in accordance with law. The appeal filed before the Tribunal was disposed off without relief. The Company moved to Hon''ble Guwahati High Court and failed to get any relief. Now Company has filled the appeal before the Hon''ble Supreme Court of India. The Company is confident to get the full relief as the entire benefit was passed on to the consumer and as such the company does not accept any further liability and no provision is considered necessary based on the expert legal advice. Further to this the company has accounted for during financial year 2000-01 a sum of Rs. 40,493,280/- as excise duty refund receivable (Badarpur) and Rs. 21,548,160/- towards excise duty payable (Badarpur) in terms of the above mentioned notification.

A suit has been filed against the company in the year 1999 for recovery of Rs. 20,000,000/- along with interest which is still pending before the Hon''ble High Court, Calcutta. The company disputes the claim of the party and as the matter is subjudice no provision for interest has been made.

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Mar 31, 2012

A. The rights, preferences and restrictions attaching to shares and restrictions on distribution of dividend and repayment of capital

The Company has only class of equity shares having a par value of Rs10 per share. Each Shareholder is eligible for one vote. Dividend proposed (if any) by the Board of Directors, is subject to the approval of Shareholders, except in case of interim dividend.

1.1 The Company is in communication with its suppliers to ascertain the applicability of "The Micro, Small and Medium Enterprises Development Act, 2006". As at the date of this balance sheet the Company has not received any communications from any of its suppliers regarding the applicability of the Act to them. This has been relied upon by the auditors.

1.2 In the opinion of the Board the current assets, loans and advances are not less than the stated value if realized in ordinary course of business. The provisions for all known liabilities are adequate. There are no contingent liabilities except stated, as informed by the management.

1.3 The Business of the Company falls under a single segment i.e. Manufacturing of Cigarette and Smoking Mixture. In view of the general classification notified by Central Government in exercise of powers conferred u/s 211 (3C) of Companies Act, 1956 for companies operating in single segment, the disclosure requirement as per Accounting Standard - 17 on "Segment Reporting" are not applicable to the Company. The Company's business is mainly concentrated in similar geographical, political and economical conditions; hence disclosure for geographical segment is also not required.

1.4 Post Employment Benefits

a) Defined Contribution Plans: The Company has recognised an expense of Rs3,528,187/- (Previous Year Rs3,422,544/-) towards the defined contribution plans.

Note: -

i) Previous year figures have been given in brackets.

ii) As the liability of gratuity and compensated absence are provided on actuarial basis for the Company as a whole, the amount pertaining to the directors are not ascertainable and therefore not included in the above

iii) Related party relationships are identified by the Company on the basis of available information.

1.5 The Hon'ble High Court, Kolkata has confirmed sale of assets of New Tobacco Co. Ltd. (In Liquidation) in favour of the Company vide its order dated 19th April 2006 and directed the Joint Special Officers to execute the deed and / or deeds of conveyance in respect of immovable properties and to issue necessary sale certificates for plant & machineries and all assets and properties in favour of the Company. Conveyance deed of some properties is yet to be executed for transfer of title in favour of the Company since connected proceedings are pending before the Hon'ble High Court, Kolkata.

1.6 In view of the amendment made in the Union Budget 2003 with retrospective effect, the Company is liable to refund excise duty amounting to Rs 49,238,160/- received/ receivable in terms of notification no.32/99 dated 8th July 1999 issued by the Central Government, on account of Badarpur unit in Assam and interest thereon amounting to Rs 97,274,593/- upto 31 st March 2012. The Company had challenged the amendment in Hon'ble High Court, Guwahati and subsequently the matter was transferred to Hon'ble

Supreme Court of India. The Hon'ble Supreme Court vide its order dated 19th September 2005 has confirmed such retrospective amendment made by the Central Government through its Budget Notification. However, the Company was of the view that the amendment was not applicable to it and a clarification / modification petition to that effect was filed and admitted by the Hon'ble Supreme Court. On 31st October 2007, the Central Excise Department had passed a fresh adjudication order confirming the demand and the Company has appealed before the Appellate Tribunal which was brought to the notice of the Hon'ble Supreme Court. The Hon'ble Supreme Court disposed off the petition on 25th March 2008 with a direction that appeal shall be decided by appellate authority on merits and in accordance with law. The appeal filed before the Tribunal was disposed off without relief. The Company moved to Hon'ble Guwahati High court and failed to get any relief. Now company has filled the appeal before the Hon'ble Supreme Court of India. The Company is confident to get the full relief as the entire benefit was passed on to the consumer and as such the Company does not accept any further liability and no provision is considered necessary based on the expert legal advice. Further to this the Company has accounted for during financial year 2000-01 a sum of Rs40,493,280/- as excise duty refund receivable (Badarpur) and Rs21,548,160/- towards excise duty payable (Badarpur) in terms of the above mentioned notification.

1.7 A suit has been filed against the Company in the year 1999 for recovery of Rs20,000,000/- along with interest which is still pending before the Hon'ble High Court, Kolkata. The Company disputes the claim of the party and as the matter is subjudice no provision for interest has been made.

1.8 Contingent liabilities: (Amount in Rs) As at As at Particulars 31st March 2012 31st March 2011

a)Claims against the Company not acknowledged as debt 14,453,701 14,453,701

b)Disputed Liabilities relating to Central Excise Demand 872,183,000 862,710,000

1.9 The figures of previous year have been reclassified and regrouped wherever considered necessary.

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Mar 31, 2010

1. Scheme of Arrangement:- The Demerger Committee of the Company at its meeting held on 21.05.2010 adopted the Certified Copy of Order of the Honble High Court, Calcutta sanctioning the scheme of arrangement with M/s. RDB Realty & Infrastructure Limited (RDBRIL). The Certified copy of the order has been filed with the Registrar of the Company on 24.05.2010. In terms of the scheme the entire real estate undertaking of the company including all rights, title and interest stands transferred to and vested in RDBRIL without further act or deed w.e.f the Appointed Date 01.04.2009. Accordingly all assets & liabilities pertaining to the “Real Estate Undertaking” of the Company, as appearing in the books of accounts as on 01-04-2009 stands transferred to RDBRIL.

In Consideration of the Demerger, RDBRIL will issue and allot its shares to the shareholders of RDB Industries Limited in the ratio of one equity share of face value of Rs.10/- each fully paid up for every one equity shares of Rs.10/- each held by the shareholders of RDB Industries Limited.

Before demerger the Real Estate Undertaking of the company was classified as “Real Estate Division” under business segment for the purpose of Segment Reporting as per AS-17.

The initial disclosure about demerger of the Real Estate Undertaking was made to the concerned stock exchanges on the same day as outcome of the meeting of the Demerger Committee of the Company held on 9th June, 2009.

In accordance with the Scheme, with effect from the Appointed Date i.e. 01.04.2009 and upto and including Effective date, the Company shall be deemed to have been carrying on all business and activities relating to Real Estate Undertaking, and shall also stand possessed of the properties so to be vested in RDBRIL , for and on account of and in trust of RDBRIL. All profits or losses accruing to the Real Estate Undertaking shall be treated as the profits of RDBRIL.

Pursuant to the scheme of demerger and in view of para 11 of AS 21, the Consolidated Financial Statements are not prepared, because its control over RDB Realty & Infrastructure Limited, a wholly owned subsidiary company is intended to be temporary as the subsidiary shall cease to be a subsidiary of the Company on issue of shares (pending allotment), in the near future.

2. Related party disclosures:- In terms of Accounting Standard-18 on "Related Party Disclosures" related party disclosures are as under: (i) Enterprises where control exists (A) Subsidiaries:-

S.No. Name of Company

1 Bahubali Tie-Up Private Ltd.*

2 Baron Suppliers Private Ltd.*

3 Bhagwati Builders & Development Pvt. Ltd.*

4 Bhagwati Plasto Works Private Ltd.*

5 Headman Mercantile Private Ltd.*

6 Oswal Manufacturing Co. Private Ltd.*

7 Kasturi Tie-Up Private Ltd.*

8 Triton Commercial Private Ltd.*

9 Rathi Ess En Finance Co. Private Ltd.*

10 Raj Construction Projects Private Ltd.*

11 RD Devcon Pvt. Ltd.*

12 RDB Realty & Infrastructure Ltd.

(B) Partnership Firms:-

S.No Name of Company

1 Bindi Developers*



- Transfer to RDB Realty & Infrastructure Limited on demerger of Real Estate Undertaking w.e.f. 01/04/2009

(ii) Other related parties with whom the company had transactions:- (A) Key Management Personnel & their relatives:-

S.No. Name Designtion /Relationship

1 Sunder Lal Dugar Chairman & Managing Director (CMD)

2 Ravi Prakash Pincha Executive Director

(B) Enterprises over which Key Management Personnel/Major Shareholders/Their Relatives have Significant Influence: -

1 Electrical Manufacturing Co.Ltd.

2 Pyramid Sales Private Ltd.

3 RD Motors Private Ltd.

4 Sri S.L.Dugar Charitable Trust

3. The Honble High Court, Kolkata has confirmed sale of assets of New Tobacco Co. Ltd. (In Liquidation) in favour of the company vide its order dated 19th April, 2006 and directed the Joint Special Officers to execute the deed and/or deeds of conveyance in respect of immovable properties and to issue necessary sale certificates for plant & machineries and all assets and properties in favour of the Company. Conveyance deed of some properties is yet to be executed for transfer of title in favour of the Company since connected proceedings are pending before the Honble High Court, Kolkata.

4. In view of the amendment made in the Union Budget 2003 with retrospective effect, the company is liable to refund excise duty amounting to Rs. 68,183,280/- received/ receivable in terms of notifi -cation no.32/99 dated 8th July, 1999 issued by the Central Government, on account of Badarpur unit in Assam and interest thereon amounting to Rs.40,437,517/- upto 31st March,2006. The company has challenged the amendment in Honble High Court, Guwahati and subsequently the matter is transferred to Honble Supreme Court of India. The Honble Supreme Court vide its order dated 19th September, 2005 has confirmed such retrospective amendment made by the Central Government through its Budget Notification. However, the company is of the view that the amendment is not applicable to it and a clarification/modification petition to that effect was filed and admitted by the Honble Supreme Court. On 31st October, 2007, the Central Excise Department has passed a fresh adjudication order confirming the demand and the Company has appealed before the Appellate Tribunal which was brought to the notice of the Honble Supreme Court. The Honble Supreme Court disposed off the petition on 25th March, 2008 with a direction that appeal shall be decided by appellate authority on merits and in accordance with law. The appeal filed before the Tribunal is still pending. The Company is confident to get the full relief as the entire benefit was passed on to the consumer and as such the company does not accept any further liability and no provision is considered necessary based on the expert legal advice. Further to this the company has accounted for during financial year 2000-01 a sum of Rs. 40,493,280/- as excise duty refund receivable (Badarpur) and Rs.21,548,160/- towards excise duty payable (Badarpur) in terms of the above mentioned notification.

5. A suit has been filed against the company in the year 1999 for recovery of Rs.20,000,000/- along with interest which is still pending before the Honble High Court, Kolkata. The company disputes the claim of the party and as the matter is subjudice no provision for interest has been made.

6. The Company is in communication with its suppliers to ascertain the applicability of “The Micro, Small and Medium Enterprises Development Act, 2006". As on the date of this Balance Sheet the Company has not received any communications from any of its suppliers regarding the applicability of this Act to them.

7. Contingent Liabilities

a) Claims against the company not acknowledged as debts Rs. 14,453,701/- (Previous year Rs.14,453,701/-)

b) Disputed liabilities relating to Central Excise Demands Rs.921,837,000/- (Previous year Rs.913,702,000/-)

8. In the opinion of the Board the Current Assets, Loans and Advances are not less than the stated value if realised in ordinary course of business. The provision for all known liabilities is adequate and not in excess of the amount reasonably necessary. There is no contingent liability except stated and informed by the Management.

9.Figures for the Previous Year are not comparable due to demerger of "Real Estate Undertaking" of the company with its wholly owned subsidiary company RDB Realty & Infrastructure Limited w.e.f. 01/04/2009 in terms of the scheme of arrangement as approved by the Honble High Court of Calcutta vide its order dated 12/04/2010 filed with the Registrar of Companies on 24/05/2010.

9.The figures of Previous Year have been recast and regrouped wherever considered necessary.