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Notes to Accounts of RIR Power Electronics Ltd.

Mar 31, 2023

The company has only one class of shares referred to as equity shares having a par value of '' 10/- each. Each holder of equity shares is entitled to one vote per share.

The company declares and pays dividend in Indian Rupees. The Company has declared dividend of '' 1.50/- per share during the year ended March 31,2023.

The company''s pending litigations comprise of claims against the Company and proceedings pending with tax and other authorities. The Company has reviewed all its pending litigations and proceedings and has made adequate provisions, wherever required and disclosed the contingent liabilities, wherever applicable, in its financial statements. The Company does not reasonably expect the outcome of these proceedings to have a material impact on its financial statements.

Note: In 2021-22, the Board of Directors approved redemption of 2% Redeemable Optionally Convertible Cumulative Preference Shares in the meeting held August 13, 2021. The remaining balance of unwinding of discount of Interest is treated as Extraordinary item and disclosed separately in the Profit & Loss Account.

NOTE 41 : SEGMENT REPORTING

The Company''s Board of Directors together with the Chief Executive Officer has been identified as the Chief Operating Decision Maker (CODM) as defined under IND AS 108 : ''Operating Segments''. The CODM evaluates the Company''s performance and allocates resources based on an analysis of various performance parameters. The Company is primarily engaged in only one business segment i.e business of manufacturing components for ''Power Electronics''. The Company has accordingly identified this as Operating Segments in accordance with requirements of IND AS 108 : Operating Segments.

NOTE 42 : CORPORATE SOCIAL RESPONSIBILITY

The company is not required to spend any amount during the year on CSR expenditure as per Section 135 of the Companies Act, 2013 read with schedule III.

NOTE 43 : FINANCIAL INSTRUMENTS - FAIR VALUES AND RISK MANAGEMENT :

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.The following methods and assumptions were used to estimate the fair values :

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from bank and financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly fair value of such instruments is not materially different from their carrying amounts.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy based on the lowest level input that is significant to the fair value measurement as a whole. The fair value hierarchy is described as under:

Level 1

This Level hierarchy includes financial instruments measured using quoted prices. This includes quoted equity instruments. The fair value of all the equity instruments which are treated in the stock exchanges is valued using the closing price as at the reporting period.

Level 2

The fair value of derivatives and investment in unquoted equity and unquoted mutual funds instruments 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.The mutual funds are valued using the closing nAv.

Level 3

If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3.

NOTE 44 : FINANCIAL RISK MANAGEMENT:

The Company''s principal financial liabilities comprise loans and borrowings, advances and trade and other payables. The purpose of these financial liabilities is to finance the company''s operations and to provide to support its operations. The Company''s principal financial assets include loans, trade and other receivables and cash and cash equivalents that derive directly from its operations.

The Company''s activities exposes it to Liquidity Risk, Market Risk and Credit Risk. The Board of Directors reviews and agrees policies for managing each of these risks which are summarised as below :

The Company''s activity exposes it to Market Risk, Liquidity Risk, Interest Risk and Credit Risk. This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(A) LIQUIDITY RISK:

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity Risk Management implies maintaining sufficient cash including availability of funding through an adequate amount of committed credit facilities to meet the obligations as and when due.

Liquidity Risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity Risk may result from an inability to sell a financial asset quickly at close to its fair value.

Prudent Liquidity Risk Management implies maintaining sufficient cash and marketable securities and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying business, the Company''s treasury maintains flexibility in funding by maintaining availability under committed credit lines.

(B) MARKET RISK:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk : interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes investments, deposits, foreign currency receivables and payables. The Company''s treasury team manages the Market Risk, which evaluates and exercises independent control over the entire process of market risk management.

(i) Foreign Currency Exposure

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The company has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies.

(ii) INTEREST RISK:

Interest Rate Risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. Since the Company has no borrowings, exposure to risk of change in market interest rate is Nil.

Credit risk is the risk of financial loss to the Company if a customer or counter party fails to meet its contractual obligations. The company is exposed to credit risks from its operating activities, primarily trade receivables, cash and cash equivalents, deposits with banks and other financial instruments. Credit Risk is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

(i) TRADE RECEIVABLES

The Company considers the probability of default upon initial recognition of assets and whether there has been a significant increase in credit risks on an ongoing basis throughout each reporting period.

To assess whether there is a significant change (increase) in credit risk, the Company compares the risk of default occurring on the assets as at the reporting date with the risk of default as at the date of initial recognition. It consider the reasonable and supportive forward looking information such as :

a. Actual or expected significant adverse changes in the business

b. Actual or expected significant adverse changes in the operating results of the counter-party

c. Financial or economic conditions that are expected to cause a significant change to the counter-party''s ability to meet its obligations

d. Significant increase in credit risk on other financial instruments of same counter party.

NOTE 45 : DISCLOSURES OF RATIOS

Additional Regulatory Information pursuant to Clause 6L of General Instructions for preparation of Balance Sheet as given in Part I of Division II of Schedule III to the Companies Act, 2013, are given hereunder to the extent relevant and other than those given elsewhere in any other notes to the Financial Statements.

Notes for Ratio:

a There is substantial Increase in Sales due to which profit is also increased which has impact on Ratios.

b The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for

holding any Benami property.

c The Company has availed Cash Credit Limits of limit of '' 12 Crs. The differences arising between the Quarterly filed Statements

with the Bank and books of accounts is due to recognition of gain/loss of foreign exchange fluctuation on receivables/payables in books of accounts after submitting Statements to the Bank.

d The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

e The Company has not been declared as a willful defaulter by any lender who has powers to declare a Group as a willful defaulter at any time during the financial year or after the end of reporting period but before the date when the financial statements are approved.

f The Company does not have any transactions with struck-off companies.

g The Company has not advanced or loaned or invested funds to any other persons or entities, including foreign entities (intermediaries) with the understanding that intermediary shall : i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or an behalf of the Company (Ultimate Beneficiaries), or ii. Provide any guarantee, security or the like on behalf of Ultimate Beneficiaries.

h The Company have not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding that Company shall: i. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or an behalf of the Funding Party (Ultimate Beneficiaries), or ii. Provide any guarantee, security or the like on behalf of Ultimate Beneficiaries.

i The Company have not traded or invested in Crypto currency or Virtual Currency during the financial year.

j The Company does not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provisions of the Income Tax Act, 1961).

NOTE 46 : CAPITAL RISK MANAGEMENT

The Company''s objective when managing capital are to :

(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) maintain an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount of dividends paid to shareholders etc. The Company''s policy is to maintain a stable and strong capital structure and to sustain future development and growth of the business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure. The Company monitors capital using a gearing ratio being a ratio of net debt as a percentage of total capital.

NOTE 47 : Prior year comparatives have been regrouped and reclassified wherever necessary to conform to the current year''s presentation. Amounts and other disclosures for the prior year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

NOTE 48 : All amounts as shown in the various tables and paragraphs included in these Financial Statements and Annual Report have been rounded off or truncated to the nearest Lakhs as per the requirements of Schedule III, unless otherwise stated.

Mar 31, 2018

Note No. 34: FINANCIAL INSTRUMENTS

The following methods and assumptions were used to estimate the fair values:

1.Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short-term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual creditworthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significanteffect on the recorded fairvalue that are not based on observable market data.

Note No.35: FINANCIAL RISK FACTORS

The Company''s principal financial liabilities comprise loans and borrowings, advances and trade and other payables. The purpose of these financial liabilities is to finance the Companyâs operations and to provide to support its operations. The Companyâs principal financial assets include loans, trade and other receivables, and cash and cash equivalents that derive directly from its operations.

The Company''s activities exposes it to Liquidity Risk, Market Risk and Credit risk. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized as below.

(a) Liquidity risk

The risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities that are settled by delivering cash or another financial asset. Liquidity risk management implies maintenance sufficient cash including availability of funding through an adequate amount of committed credit facilities to meet the obligations as and when due.

The Company manages its liquidity risk by ensuring as far as possible that it will have sufficient liquidity to meet its short term and long term liabilities as and when due. Anticipated future cash flows are expected to be sufficient to meet the liquidity requirements of the Company. The Company does not have any undrawn borrowing facilities with the Banks/Financial institutions

(b) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes investment, deposits, foreign currency receivables and payables. The Company''s treasury team manages the Market risk, which evaluates and exercises independent control over the entire process of market risk management.

(i) Foreign currency risk

Currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rates. The Company has foreign currency trade payables and receivables and is therefore exposed to foreign exchange risk. The exchange rates have been volatile in the recent years and may continue to be volatile in the future. Hence the operating results and financials of the Company may be impacted due to volatility of the rupee against foreign currencies.

(ii) Interest rate risk

Interest rate risk is the risk that the fair value of future cash flows of the financial instruments will fluctuate because of changes in market interest rates. The Company''s does not have any long term borrowings. Hence, the Company is not exposed to the interest rate risk.

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. The Company is exposed to credit risks from its operating activities, primarily trade receivables, cash and cash equivalents, deposits with banks and other financial instruments. Credit risk is managed by the Company through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business.

Trade and other receivables

To assess whether there is a significant change increase in credit risk the Company compares the risks of default occurring on the assets as at the reporting date with the risk of default as at the date of initial recognition. It considers the reasonable and supportive forward looking information such as:

(i) Actual or expected significant adverse changes in business.

(ii) Actual or expected significant changes in the operating results of the counterparty.

(iii) Financial or economic conditions that are expected to cause a significant change to the counterparty''s ability to meet its obligations.

(iv) Significant increase in credit risk on other financial instruments of same counterparty.

Note No. 36: CAPITAL RISK MANAGEMENT

The Companyâs objectives when managing capital are to:

(i) safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

(ii) maintain an optimal capital structure to reduce the cost of capital

In order to maintain or adjust the capital structure, the Company may issue new shares, adjust the amount of dividends paid to shareholders etc. The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investor, creditors and market confidence and to sustain future development and growth of its business. The Company will take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

The Company monitors capital using a gearing ratio being a ratio of net debt as a percentage of total capital.

Note No.37 : SEGMENT REPORTING :

The Company''s Board of Directors together with the Chief Executive Officer has been identified as the Chief Operating Decision Maker (CODM) as defined under Ind AS 108 "Operating Segments". The CODM evaluates the Company''s performance and allocated the resources based on an analysis of various performance indicators. The Company is primarily engaged in the only one business segment i.e. business of manufacturing components for âPower Electronicsâ. The Company has accordingly identified this as Operating segments in accordance with requirements of Ind AS 108 on âOperating segmentsâ.

Note No.39 : FIRSTTIMEADOPTION OF INDAS

The accounting policies set out in Note 1, have been applied in preparing the financial statements from the year ended March 31,2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 01, 2016 (the Company''s date of transition). In preparing its opening Ind AS balance sheet, the Company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP). An explanation of how the transition from previous GAAP to Ind AS has affected the Company''s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and exceptions availed

A. IndAS optional exemptions (i) Deemed Cost

The Company on first time adoption of Ind AS, has elected to continue with the carrying value for all of its property, plant & equipment and other intangible assets as recognized in the financial statements as at the date of transition to IndAS, measured as per the previous GAAP and use that as its deemed costs as at the date of transition.

B. IndAS mandatory exemptions

(i) Estimates

An entityâs estimates in accordance with IndASs at the date of transition to IndAS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies).

Ind AS estimates as at April 01, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP

The Company made estimates for following item in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Impairment of financial assets based on expected credit loss model.

(ii) Classification and measurement of financial assets

IndAS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

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

The Company has elected to apply derecognition requirements for financial assets and financial liabilities in Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS.

C. Transition to IndAS - Reconciliations

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

(i) Reconciliation of Balance sheet as at April 1,2016(Transition date)

(ii) (A) Reconciliation of Balance sheet as at March 31,2017

(B) Reconciliation of total comprehensive income for the year ended March 31,2017

(iii) Reconciliation of Equity as at April 1,2016 and March 31,2017

(iv) Impact on cash flow statement for the period ended March 31,2017

The presentation requirements under previous GAAP differs from IndAS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The regrouped previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with previous GAAP.

(iv) Impact on cash flow statement for the period ended March 31,2017

There is no material impact on the cash flow on account of Ind AS Transition.

Other Notes to First-time adoption:

(i) Remeasurement of post-employment benefit obligations : Under Ind AS, re-measurements 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 recognized in Other Comprehensive Income (OCI) instead of profit or loss. Under the previous GAAP, these re-measurements were forming part of the profit or loss for the year. As a result of this change there is no impact on the total equity as at March 31,2017.

(ii) Fair valuation of financial assets - Interest free deposits : Under the previous GAAP, interest free lease security deposits (that are refundable in cash on completion of lease term) are recorded at transaction price. Under Ind AS All financial assets are required to be recognized at fair value. Accordingly, the Company has fair valued the security deposits and the difference between the fair value and transaction value of the security deposit has been recognized as prepaid rent. .---_v

(iii) 2% Redeemable Optionally Convertible Cumulative Preference shares : Under Previous GAAP, these preference share were considered as part of Share capital. Under Ind AS, since this being a Financial Instruments, and considering the terms of the preference shares, the has been classified as financial liability.

(iv) Adjustments to revenue : Under previous GAAP, the Company accounted revenue net of trade discounts, sales taxes and excise duties. Under Ind AS, revenue is being recognized at fair value of consideration received or receivable, gross of excise duty. Excise duty is being charged under Other expenses. Any sales incentive, discounts or rebates in any form including cash discounts given to customer are being considered as reductions to selling price and revenue is presented on net basis.

(v) Treasury Shares : Under previous GAAP, the Company has shown the treasury shares as a part of Its investment. Under Ind AS, there being separate guidance available, the same has been shown as reduction from the share capital.

(vi) Deferred taxes : Under previous GAAP, deferred taxes were recognized based on profit and loss approach i.e. tax impact on difference between the accounting income and taxable income. Under Ind AS, deferred tax is being recognized by following balance sheet approach i.e. tax impact on temporary difference between the carrying value of asset and liabilities in the books and their respective tax base. Also, deferred tax have been recognized on the adjustments made on transition to Ind AS. Deferred tax asset has been recognized to the extent Company has reasonable certainty over future taxable profits as against virtual certainty under the previous GAAP.

(vii) Other Comprehensive Income: Under Ind AS, all items of income and expense recognized during the year should be included in profit or loss for the year, unless a standard requires or permits otherwise. Items of income and expense that are not recognized in profit or loss are shown in the Statement of Profit and Loss as âother comprehensive incomeâ. The concept of other comprehensive income did not exist under previous GAAP.

Note No.40 : RECENTACCOUNTING PRONOUNCEMENTS INDAS115 - Revenue from Contracts with Customers

On March 28, 2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amended Rules, 2018 (âamended rulesâ). As per the amended rules, Ind AS 115 âRevenue from contracts with customersâ supersedes Ind AS 11, âConstruction contractsâ and Ind AS 18, âRevenueâ and is applicable for all accounting periods commencing on or after 1 April 2018. Ind AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The model specifies that revenue should be recognized when (or as) an entity transfer control of goods or services to a customer at the amount to which the entity expects to be entitled. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers. The new revenue standard is applicable to the Company from 1 April 2018.

The management is yet to assess the impact of the aforesaid amendments on the Companyâs financial information.

IndAS21 - Foreign currency transactions and advance consideration:

On March 28,2018, Ministry of Corporate Affairs ("MCA") has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 effective from April 1,2018 containing Appendix B to Ind AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

This amendment will not have any material impact on the financial statements of the Company.

Note No.41: The financial statements were approved for issue by the Board of Directors on May 24,2018.

Note No. 42: The figures of the previous years have been regrouped or reclassified wherever necessary to make them comparable.

Mar 31, 2015

NOTE 1 : DISCLOSURE UNDER TME MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

Based on the information available with the Company and further clarification sought from all the suppliers, none of our suppliers are registered/covered under the Micro, Small and Medium Enterprises Development Act, 2006.

NOTE 2 : INCOME TAX AND SALES TAX ASSESSMENTS

Income Tax assessments have been completed upto the Assessment Year 2012-13 and adjustments in the accounts have been made upto the said Assessment year.

Sales Tax assessments have been completed upto 31st March, 2011.

NOTE 3 : UNPAID AND UNCLAIMED DIVIDENDS

Unclaimed dividends of Rs. 7,46,660/- are lying in Unpaid Dividend Accounts of the Company awaiting Dividend claims from the shareholders for the Financial Year 2009-10; 2010-11; 2011-12 and 2012-13. In terms of Section 124 of the Companies Act, 2013 read with the Companies (Declaration & Payment of Dividend) Rules, 2014, any dividend remaining unpaid/unclaimed for a period of seven years, needs to be transferred to the Investor Education and Protection Fund (IEPF). Shareholders who have not received Dividend for Financial Year 2009-10; 2010-11; 2011-12 and 2012-13 are hereby requested to ensure that they claim the dividend(s) from our Registrar and Transfer Agents - M/s Adroit Corporate Services Pvt. Ltd. before the said amount is transferred to the Investor Education and Protection Fund.

NOTE 4 : The financial statements are prepared under Schedule III of the Companies Act, 2013. Accordingly, the previous year's figures have been re-grouped/re-classified to conform to the current year's classification.

Mar 31, 2014

1. 3,750,000 Equity Shares out of the issued, subscribed and paid up share capital were issued to the erstwhile shareholders of Orient Semiconductors Pvt. Ltd. pursuant to the scheme of Amalgamation.

2. 4,050,000 2% Redeemable Optionally Convertible Cummulative Preference Shares out of the issued, subscribed and paid up share capital were issued to the erstwhile shareholders of Orient Semiconductors Pvt. Ltd. pursuant to the scheme of Amalgamation.

3. The Advance Income Tax for the Assessment Years 1987-88 and 1988-89 relate to matter under dispute with Income Tax Department, the judgement of which has already been passed by the Tribunal in favour of the Company. Accordingly, there is no demand of Tax due from the Company. The Company is yet to receive refund of the said amount.

4. During the year 1999 - 2000 the Government of Gujarat vide notice issued under Land Acquisition Act, 1894 had acquired 15000 Sq. ft. of land belonging to the Company for purpose of widening of Vadodara - Halol road and had awarded compensation of only Rs. 46,309/- towards acquisition. The Company had filed an application against the Govt, of Gujarat, with the Deputy Collector, Godhra Region claiming inadequacy of compensation towards the above mentioned acquisition of land. The case is pending before statutory authorities.

As at 31st As at 31st March, 2014 March, 2013 (Amt. in Rs.) (Amt. in Rs.)

OTHER DISCLOSURE NOTES : 27 to 41

NOTE 5 : CONTINGENT LIABILITIES

Contingent Liabilities not provided for in respect of :

(a) Guarantee issued to the Development Commissioner in respect of E.O.U. unit 15,000,000 15,000,000

(b) Performance Guarantee issued by Banks 1,583,216 2,732,541

6. During the year, the Company was not required to make any contribution under the Scheme of Group Gratuity with Life Insurance Corporation of India (LIC) as per the deferred plan of contribution sanctioned by LIC. The total fund requirements is worked out by LIC at Rs. 23,19,645/- to administer total Gratuity Liability of the Company.

NOTE 7 : DISCLOSURE UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006 Based on the information available with the Company and further clarification sought from all the suppliers, none of our suppliers are registered / covered under the Micro, Small and Medium Enterprises Development Act, 2006.

NOTE 8 : INCOME TAX AND SALES TAX ASSESSMENTS

Income Tax assessments have been completed upto the Assessment Year 2011-12 and adjustments in the accounts have been made upto the Assessment year 2011-12.

Sales tax assessments have been completed upto 31st March, 2010.

NOTE 9 : UNPAID AND UNCLAIMED DIVIDENDS

There are no unclaimed interest due and payable by the Company, as on 31st March, 2014. However, there are still Rs. 7,52,870/- lying in Unpaid Dividend Account of the Company awaiting Dividend claims from the shareholders for the Financial Year 2009-10; 2010-11; 2011-12 and 2012-13. In terms of Section 205A and 205C of The Companies Act, 1956, the Company is required to transfer the amount of dividend remaining unclaimed for a period of seven years from the date of transfer in the unpaid dividend account of the Company to Investor Education and Protection Fund (IEPF). Shareholders who have not received Dividend for Financial Year 2009-10; 2010-11; 2011-12 and 2012-13 are hereby requested to ensure that they claim the dividend(s) from our Registrar and Transfer Agents - M/s. Adroit Corporate Services Pvt. Ltd. before the said amount is transferred to the Investor Education and Protection Fund.

NOTE 10 :

Consequent to the notification under the Companies Act, 1956, the financial statements are prepared under revised Schedule VI. Previous year''s figures have been re-grouped/ re-classified wherever necessary to correspond with the current year''s classification/ disclosure.

Mar 31, 2013

NOTE 1 : EMPLOYEE BENEFITS

Disclosure as required by Accounting Standard 15

(a) The amount recognized in the Statement of Profit and Loss are as follows:

2.1) During the year, the Company was not required to make any contribution under the Scheme of Group Gratuity with Life Insurance Corporation of India (LIC) as per the deferred plan of contribution sanctioned by LIC. The total fund requirements is worked out by LIC at Rs. 30,03,878/- to administer total Gratuity Liability of the Company.

NOTE 3 : RELATED PARTY TRANSACTIONS

Information on related party transactions as required by Accounting Standard 18. I. LIST OF RELATED PARTIES :

Key Managerial Personnel :

(a) Mrs. Bhavna H. Mehta Related party relationship is as identified by the Company and relied upon by the Auditors.

NOTE 4 : DISCLOSURE UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

Based on the information available with the Company and further clarification sought from all the suppliers, none of our suppliers are registered / covered under the Micro, Small and Medium Enterprises Development Act, 2006.

NOTE 5 : INCOME TAX AND SALES TAX ASSESSMENTS

Income Tax assessments have been completed upto the Assessment Year 2011-12 and adjustments in the accounts have been made upto the Assessment year 2011-12.

Sales tax assessments have been completed upto 31st March, 2010.

NOTE 6 : UNPAID AND UNCLAIMED DIVIDENDS

There are no unclaimed interest due and payable by the Company, as on 31st March, 2013. However, there is still Rs. 5,54,769/- lying in Unpaid Dividend Account of the Company awaiting Dividend claims from the shareholders for the Financial Year 2009-10; 2010-11 and 2011-12. In terms of Section 205A and 205C of The Companies Act, 1956, the Company is required to transfer the amount of dividend remaining unclaimed for a period of seven years from the date of transfer in the unpaid dividend account of the Company to Investor Education and Protection Fund (IEPF). Shareholders who have not received dividend for Financial Year 2009-10; 2010-11 and 2011-12 are hereby requested to ensure that they claim the dividend(s) from our Registrar and Transfer Agents - M/s Adroit Corporate Services Pvt. Ltd. before the said amount is transferred to the Investor Education and Protection Fund.

Currently, there is no amount due to be transferred to Investor Education and Protection Fund in terms of Section 205 C (1) of the Companies Act, 1956 vide notification dated October 1, 2001. The unpaid dividend amounts shall be credited to the said fund as and when they become due.

NOTE 7 :

Consequent to the notification under the Companies Act, 1956, the financial statements are prepared under revised Schedule VI. Previous year''s figures have been re-grouped/ re-classified wherever necessary to correspond with the current year''s classification/ disclosure.

Mar 31, 2012

1.1) Vehicle Loan are secured by hypothecation of Vehicles against which Loans have been taken from Banks.

1.2) Loans from Directors is inclusive of interest accrued and due to Directors.

2.1) Cash credit from bank is secured by hypothecation of stocks and current assets as primary security and by first charge on Land and Building under Survey Nos. 338/ P1, 338/P2, 338/P3 and 338/P4 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, as collateral security to the bank. The said facility is further secured by lien on STDR of Rs. 50 Lacs kept with the bank.

3.1) There is no amount due and outstanding to be credited to Investor Education and Protection Fund as at 31st March, 2012. These amounts shall be credited to the Fund as and when they become due.

3.2) Statutory Remittances include amount due and payable to various Government and statutory authorities.

4.1) Provision for employee benefits includes provision for bonus and ex-gratia.

5.1) Gross Block of Fixed Assets includes Land, Building and Machinery which have been revalued on 30/05/1986 for Rs. 2,029,839.

5.2) Depreciation on Assets acquired through amalgamation are provided on Straight Line Method basis.

5.3) Depreciation on revalued assets has been adjusted against Revaluation Reserve.

5.4) Individual fixed assets having cost upto Rs. 5,000/- are written off during the year.

6.1) The Advance Income Tax for the period 1987-89 relates to matter under dispute with Income Tax Department, the judgement of which has already been passed by the Tribunal in favour of the Company. Accordingly there is no demand of tax due from the Company. The Company is yet to receive the refund of the said amount.

7.1) During the year 1999 - 2000, the Government of Gujarat vide notice issued under Land Acquisition Act, 1894 had acquired 15000 Sq. ft. of Land belonging to the Company for purpose of widening of Vadodara - Halol road and had awarded compensation of only Rs. 46,309 towards acquisition. The Company had filed an application against the Govt, of Gujarat, with the Deputy Collector, Godhra Region claiming inadequacy of compensation towards the above mentioned acquisition of Land. The case is pending before statutory authorities.

8.1) The Company has made provision of Rs. 3,831,278 for recovery of amount due from two State Government undertakings against whom legal proceedings have been initiated and the matter is subject to adjudication.

NOTE 9 : CONTINGENT LIABILITIES

Contingent Liabilities not provided for in respect of

(a) Guarantee issued to the Development

Commissioner in respect of E.O.U. unit 15,000,000 15,000,000

(b) Performance Guarantee issued by Banks 2,846,805 1,666,418

(c) Letter of Credit 1,986,903 4,498,103

10.1) During the year, the Company was not required to make any contribution under the Scheme of Group Gratuity with Life Insurance Corporation of India (LIC) as per the deferred plan of contribution sanctioned by LIC. The total fund requirements is worked out by LIC at Rs. 33,01,757 to administer total Gratuity Liability of the Company.

NOTE 11 : RELATED PARTY TRANSACTIONS

Information on related party transactions as required by Accounting Standard 18.

I. LIST OF RELATED PARTIES:

Key Managerial Personnel, their enterprise where transactions have taken place:

(a) Mrs. Bhavna H. Mehta

(b) Mr. Manoj P. Mehta

(c) Plus Securities Management Pvt. Ltd.

NOTE 12 : DISCLOSURE UNDER THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

Based on the information available with the Company and further clarification sought from all the suppliers, none of our suppliers are registered / covered under the Micro, Small and Medium Enterprises Development Act, 2006.

NOTE 13 : INCOME TAX AND SALES TAX ASSESSMENTS

Income Tax assessments have been completed upto the Assessment Year 2010-11 and adjustments in the accounts have been made upto the Assessment year 2010-11.

Sales tax assessments have been completed upto 31st March, 2008.

NOTE 14 : UNPAID AND UNCLAIMED DIVIDENDS

There are no unclaimed interest due and payable by the Company, as on 31st March, 2012. However, there is still Rs. 3,49,846 lying in Unpaid Dividend Account of the Company awaiting Dividend claims from the shareholders for the Financial Year 2009-10 and 2010-11. In terms of Section 205A and 205C of the Companies Act, 1956, the Company is required to transfer the amount of dividend remaining unclaimed for a period of seven years from the date of transfer in the unpaid dividend account of the Company to Investor Education and Protection Fund (IEPF). Shareholders who have not received dividend for Financial Year 2009-10 and 2010-11 are hereby requested to ensure that they claim the dividend(s) from our Registrar and Transfer Agents - Adroit Corporate Services Pvt. Ltd. before the said amount is transferred to the Investor Education and Protection Fund.

NOTE 15 :

Consequent to the notification under the Companies Act, 1956, the financial statements for the year ended 31st March, 2012 are prepared under revised Schedule VI. Accordingly, the previous year's figures have also been re-grouped/ re-classified to conform to the current year's classification.

Mar 31, 2011

(Amt in Rs Lakhs)

(i) Contingent Liabilities in respect of :- 2010-11 2009-10

(a) Guarantees issued by the Company to

the Development Commissioner at Kandla 150.00 150.00

in respect of E.O.U. unit

(b) Against performance Guarantee issued by Banks 16.66 8.77

(c) Letter of Credit 45.00 25.00

(ii) (a) Cash Credit Advances

(I) From Union Bank of India is secured by hypothecation of stocks and current assets and by first charge on Land and Building under Survey Nos. 338/P2, 338/P3 and 338/P4 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, as collateral security to the bank. The said facility is further secured by lien on STDR of Rs. 82 Lacs kept with the bank.

(II) From State Bank of India is secured by hypothecation of stocks and current assets and by first charge on land and building under Survey No. 338/1 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, of the erstwhile Orient Semi conductors Pvt. Ltd. (since merged), as collateral security to the bank. The said facility is further secured by lien on STDR of Rs. 50 Lacs kept with the bank.

(b) Term Loan Advances

(I) From Union Bank of India is secured by hypothecation of plant and machinery purchased and by first charge on land and building under Survey Nos. 338/P2, 338/P3 and 338/P4 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, as collateral security to the bank. The said facility is further secured by lien on STDR of Rs. 82 Lacs kept with the bank.

(II) From State Bank of India is secured by Hypothecation plant and machinery purchased and by first charge on land and building under Survey No. 338/1 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, of the erstwhile 100% EOU, Orient Semiconductors Pvt. Ltd.(since merged) as collateral security to the Bank. The said facility is further secured by lien on STDR of Rs. 50 Lacs kept with the bank.

(c) Vehicle Loans From Union Bank of India is secured by hypothecation of the vehicles purchased.

(iii) During the year 1999 - 2000 the Government of Gujarat vide notice issued under Land Acquisition Act 1984 had acquired 15000 Sq. ft. of land belonging to the Company for purpose of widening of Vadodara - Halol road and had awarded compensation of Rs. 46,309/- towards acquisition. The Company had filed an application against the Govt. of Gujarat, with the Deputy Collector, Godhra Region claiming inadequacy of compensation towards the above-mentioned acquisition of land. The case is pending to be heard.

(iv) Confirmations have been received from most of the Debtors and Creditors. The letters were sent to the parties containing a note to the effect that the correctness would be presumed if not contested. Debtors outstanding for more than 180 days amount to Rs. 13.15 Lacs (Previous year Rs. 17.31 Lacs) are considered recoverable as per management. During the year Debtors of Rs. 0.21 Lacs (Previous year Rs. 2.86 Lacs) were considered as bad and written off, However no provision for bad and doubtful debts has been made during the year (Previous Year Rs. 8.04 Lacs). Adequate provisions have been made towards amount due from two State Government undertakings against whom legal proceedings have been initiated for recovery amounting to Rs. 38.31 Lacs. The earnest money deposits received from customers are also not confirmed.

(v) Employee Benefits

Disclosure as required by Accounting Standard 15

a) The amount recognized in the statement of Profit and Loss Account are as follows:

(vii) In accordance with Accounting Standard - 28 ÃImpairment of AssetsÃ, the Company has not written off any assets during the year. There are no other assets of this nature. Hence no future liability.

(viii) Income tax assessments have been completed upto the Assessment Year 2008-09 and adjustments in the accounts have been made up to the Assessment year 2008-09. Appeals/ rectifications arising out of assessments/appeals are pending before the Income Tax Authorities.

(ix) During the year, the Company has made provision for Deferred Tax Liability relating to the Current Year of Rs. 23.82 Lacs (Previous Year Rs. 47.77 Lacs) as per AS-22 on Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India.

(x) As on the date of the balance sheet Sales-tax assessments have been completed up to 31st March 2007.

(xi) Depreciation on revalued assets amounting to Rs. 3,945/- has been directly adjusted against Capital Reserve on revaluation of assets.

(xii) As on the date of the balance sheet there are no unclaimed/unpaid deposits as per Companies (Acceptance of Deposits) Rules 1975.

(xvi) There are no unclaimed interest due and payable by the Company, however as on the date of this report there are still Rs 2,26,930/- lying in Unpaid Dividend Account of the Company awaiting Dividend claims from the shareholders for the Financial Year 2009-10. In terms of Section 205A and 205C of The Companies Act, 1956, the Company is required to transfer the amount of dividend remaining unclaimed for a period of seven years from the date of transfer in the unpaid dividend account of the Company to Investor Education and Protection Fund (IEPF). Shareholders are hereby requested to ensure that they claim the dividend(s) from our Registrar and Transfer Agents Ã M/s Adroit Corporate Services Pvt. Ltd. before the said amount is transferred to the Investor Education and Protection Fund.

Currently, there is no amount due to be transferred to Investor Education and Protection Fund in terms of Section 205 C. (1) of the Companies Act, 1956 vide notification dated October 1, 2001.

(xv) The Board of Directors in their meeting held on 30th May, 2011 have recommended a dividend of Rs. 0.75/- per equity share of Rs. 10/- each for the Financial Year ended 31st March, 2011 subject to approval of shareholders at the ensuing Annual General Meeting of the Company.

(xvii) Figures of previous year have been regrouped/ rearranged wherever necessary.

Mar 31, 2010

(Fig. in Rs.)

Current Previous Year Year

(i) Contingent liabilities in respect of :-

(a) Guarantees issued by Banks towards Bond given by the Company to the Development Commissioner of Kandla in respect of EOU Unit. 158.77 158.77 (b) Letter of Credit 25.00 -

(ii) (a) Cash Credit Advances

(I) From Union Bank of India is secured by hypothecation of stocks and current assets and by first charge on Land and Building under Survey Nos. 338/P2, 338 /P3 and 338 / P4 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, installed therein as collateral security to the bank. The said facility is further secured by lien on STDR of Rs.75 Lacs kept with the bank.

(II) From State Bank of India is secured by hypothecation of stocks and current assets and by first charge on land and building under Survey Nos. 338/1 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, of the EOU Unit, installed therein as collateral security to the bank. The said facility is further secured by lien on STDR of Rs. 50.00 Lacs kept with the bank.

(b) Term Loan Advances

(I) From Union Bank of India is secured by hypothecation of plant and machinery purchased and by first charge on land and building under Survey Nos. 338/P2, 338 /P3 and 338 / P4 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, installed therein as collateral security to the bank. The said facility is further secured by lien on STDR of Rs.75.00 Lacs kept with the bank.

(II) From State Bank of India is secured by Hypothecation plant and machinery purchased and by first charge on land and building under Survey Nos. 338/1 situated at Baska, Taluka Halol, District Panchmahal and hypothecation of entire plant and machinery and other fixed assets both present and future, of the EOU Unit, installed therein as collateral security to the Bank. The said facility is further secured by lien on STDR of Rs.50.00 Lacs kept with the bank.

(c) Vehicle Loans From Union Bank of India is secured by hypothecation of the vehicles purchased.

(iii) During the year 1999 - 2000 the Government of Gujarat vide notice issued under Land Acquisition Act 1984 had acquired 15000 Sq. ft. of land belonging to the Company for purpose of widening of Vadodara - Halol road and had awarded compensation of Rs. 46,309/- towards acquisition. The Company had filed an application against the Govt, of Gujarat, with the Deputy Collector, Godhra Region claiming inadequacy of compensation towards the above-mentioned acquisition of land. The case is pending to be heard.

(iv) Confirmations have been received from most of the Debtors and Creditors. The letters sent to the parties containing a note to the effect that the correctness would be presumed if not contested. Debtors outstanding for more than 180 days amount to Rs. 74.12 Lacs (Previous year Rs.88.53 Lacs) are considered recoverable as per management. During the year Rs. 2.86 Lacs (Previous year Rs. 1.00 Lacs) was considered bad and written off and a further provision for bad and doubtful debts has been made for Rs. 8.04 Lacs (Previous Year: Rs.10.45 Lacs) during the year. The same also includes dues from three state Government undertakings against whom legal proceedings have been initiated for recovery amounting to Rs. 39.31 Lacs towards which provision has been made as mentioned above. The earnest money deposits received from customers are also not confirmed.

During the year, the Company has contributed Rs. 31.25 Lacs under the Scheme of Group Gratuity with Life Insurance Corporation of India (LIC) as per the deferred plan of contribution sanctioned by LIC against the total fund requirements worked out by LIC at Rs. 46.00 Lacs to administer the total Gratuity Liability of the Company.

(vii) In accordance with Accounting Standard - 28 Impairment of Assets the Company has not written off any assets during the year. There are no other assets of this nature. Hence no future liability.

(viii) Income tax assessments have been completed up to the Assessment Year 2007-08 and adjustments in the accounts have been made up to the Assessment year 2007-08.

(ix) During the year, the Company has made provision for Deferred tax liability relating to the current year of Rs. 47.48 Lacs (Previous Year: Rs. 111.70) as per AS-22 on Accounting for Taxes on Income, issued by the Institute of Chartered Accountants of India.

(x) As on the date of the balance sheet Sales-tax assessments have been completed up to 31st March, 2007.

(xi) Depreciation on revalued assets amounting to Rs. 4,530/- has been directly adjusted against Capital Reserve on revaluation of assets. (xii) As on the date of the balance sheet there are no unclaimed/unpaid deposits as per the Companies (Acceptance of Deposits) Rules, 1975.

(xiii) Sundry creditors include Rs. 88.62 Lacs due to small-scale industrial undertakings (SSI) to the extent such parties have been identified from the available documents/information. The names of SSI units to whom amounts are due for more than 30 days are furnished below.

1. M. M. Associates

2. Shree Ambica Steel Industries

3. Dinbond Engg.Worls

4. McCom Industries(l) PvtLtd.

5. S. P. Rubber Industries

6. Ganesh Industries

7. Sri Ram Fluxes

8. Shri Ram Industries

9. Sahjanand Engg.Works

10. Aseem Technologies Pvt.Ltd.

11. Western Rubber Industries India Pvt.Ltd.

12. Shree Tulja Industry

13. Hylite Cables Pvt.Ltd.

14. Gujarat Engg.Works Pvt.Ltd.

15. Samir Tech-Chem Pvt. Ltd.

16. Shreejee Electricals

17. Silica Scientific Works

(xiv) There are no unclaimed amounts due against interest and dividend payable by the Company. As such no amount is due to be transferred to the Investor Education and Protection Fund in terms of section 205 C (1) of the Companies Act, 1956 vide notification dated October 1, 2001.

(xv) The Board of Directors recommended a dividend of Rs.0.60 per equity share for the year ended 31st March, 2010 in their meeting held on 23rd July, 2010. Though, the accounts for the year were duly approved in their meeting held on 29th May, 2010, for the limited purpose of appropriation as a result of the proposed dividend, the accounts were amended to show the appropriation and corresponding effect in the balance sheet.

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