Terms/rights attached to equity shares

The company has only one class of equity shares having par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

(b) Details of shareholders holding more than 5% shares in the Company

As per the records of the company, including its register of shareholders/members and other declaration received from the shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares.

Money received against Share Warrants represents the amount received towards warrants which entitles the warrant holders to convert the warrants into equal number of equity shares of the face value of ' 10/- each.

During the Period under review, the Company has issued and allotted 50,00,000 convertible warrants on preferential basis at ' 75 each convertible into equal number of equity shares to Promoter/Promoter group entities.

The Warrant holders are entitled to exercise the option of conversion upon payment of balance amount i.e. 75% of total consideration before the expiry of 18 months from the date of allotment.

Note:-

1. Foreign Currency Loan (ECB )-1 of USD 7.32 Million from ICICI BANK carries interest @ 6 mths LIBOR plus 4%. The loan is repayable in 22 quarterly installments starting from 18 months from the date of first draw-down i.e. 3^rd Oct'11.

2. Foreign Currency Loan (ECB)-2 of USD 3.3 Million from ICICI BANK carries interest @ 6 mths LIBOR plus 4 %. The loan is repayable in 22 quarterly Installment starting from 18 months from the date of first draw-down i.e. 1^st June'11.

3. Foreign Currency Loan (ECB)-3 of USD 4 Million from ICICI BANK carries interest @ 6 mths LIBOR plus 4 %. The loan is repayable in 22 quarterly Installment starting from 18 months from the date of first draw-down i.e. 29^th April'11.

4. Foreign Currency Loan (ECB) of USD 5.5 Million from Standard Chartered Bank carries interest @ LIBOR plus 2.90%. The loan is repayable in 16 equal quarterly instalments beginning from 15^th month from the date of first draw-down i.e. 3^rd Oct'11.

5. Indian ruppee loan from State Bank of India carries interest @ 12.50%. The loan is repayable in 16 quarterly installments of Rs.1.5625 crores each after moratorium of 1 year from the date of loan i.e. 28.09.2012.

The working capital loans, fund based as well as non fund based from banks are secured by way of first hypothecation charge on the stocks/book debts, both present and future and second charge on pari-passu basis on the fixed assets of the Company.

NOTE 6 : Company, as policy, obtains balance confirmation from Sundry Debtors, Sundry Creditors and other advances on monthly/quarterly/half yearly basis depending upon quantum of transactions made with the parties. Considering the same, the Company does not have all balance confirmation as at 31^st March, 2016 the effect of the same, if any which is not likely to be material will be adjusted at the time of confirmation.

NOTE 7 : Excise duty of Rs. 10.84 Crores charged on Sales.

NOTE 8 : The Company has made a provision of doubtful debts for Rs.4.95 Crores.

NOTE 9 : SEGMENT WISE REVENUE, RESULTS AND CAPITAL EMPLOYED

NOTE 10 : i n the opinion of the Board the current assets are approximately of the value stated, if realized in the ordinary course of business. The provision of all known liabilities is adequate and not in excess of the amount reasonably necessary.

NOTE 11 : DISCLOSURE UNDER MICRO, SMALL & MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006

Under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME) which came into force from 2^nd October, 2006, certain disclosures are required to be made relating to MSME. On the basis of information and record available with the Company, the following disclosures are made for the amounts due to Micro, Small and Medium Enterprises:

NOTE 12 : CONTINGENT LIABILITIES

13. Bank Guarantees: Rs.335.25 Crores (Previous year Rs.261.76 Crores) includes the bank guarantees amounting to USD 54,25,915 (INR 35.99 Crores) invoked by the beneficiaries in respects of certain contracts in Ethiopia under execution, against which the Company has got permanent injunction from Ethiopian court. The matter is under arbitration proceedings on direction of Ethiopian court. During the year, the Company has made a provision for Rs.4.95 Crores in the Financial Statement.

14. Sales Tax Assessment demand for Financial Year 2011-12 of Rs.0.09 Crore was raised by the UP Sales Tax Department and the Company has filed the appeal and the tribunal has granted stay against the demand.

NOTE 15:

Current period figures are for 9 Months, hence not comparable with previous year figures of 12 Months.

The previous year figures have been regrouped or reclassified as and where found necessary.