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NOTES. SHROFFS ENGINEERING LIMITED, VADODARA ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.05.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 34ST MARCH 2012 NOTES| FORMING PART OF ACCOUNTS (CONTD.. (6) Inventories: The: 1 smode of valuation ofclosing stock is as under. Raw Materials. Components, Stores & Spares and Packaging Materials are valued at cost net of CENVAT and VAT of net recliseble value, whichever is lower Sost is determined on First-in First Out basis ‘Scrap is valued at net realisable value ‘Semi-Finished goods / Work-in-Process are valued at cost of materials and other diract rolated job Finished goods are valued at cost or net reslizable value, whichever is lower. Finished goods cost valuation includes material cost. relevant Overheads and Central Excise Duty wheraver applicable, IV. Stockin wadeis valued atcostor net realisable value, whicheveris lower. Tootsand Jigs are valued at cost or depreciated valixe, whichever is lower. Cost comprises ail cost of purchases, costof conversion & other cost included in bringing the inventory to their present location 8 condition. Revenue Recognition: Sales are recognized when “the risks and rewards" of ownership of the goods is wanslerrad to the customers in accordance with the terms of sale, which is generally on dispatch of goods and. when no ‘significant uncertainty 2s todetermination or realization exists Sales are stated inclusive of Excise Duty but exclusive of Sales Tax and are net off Sales Reluth and allowances. applicable Trade Discounts and. Revenue trom Services are recognizad when such Services are rendered, Dividend income is accounted forwhen the right to receives estabiizhed. Interest Incomeis recognizedanthe timeproportion basis. Other Income is recognized on accrual basis except when the realisation of such income is uncertain, Government Grants are recognized as income in the year of receipt. {8) Retirementand Other Employee Benefits : ‘The Company accounts for Employee's benefits on accrual basis in compliance with provision of Accounting Standards (AS ~15) i, Retirement Benefits inthe form of Provident Fund and Superannuation Fund are defined Contibiition ‘Schemes. The Contributionsto the Scheme are charged to the Profit Loss Statement in the yearwhen the contributions to the fund are due. The Superannuation scheme is funded with an Insurance Company inthe format a qualifying insurance Policy ‘Gratuity lability isa defined banefit obligation and it it provided for, on the basis. of an actuarial, valuation on Projected Net Credit Method made at the end of the each Financial Year. The Scheme is. funded ‘with an Insurance Company in the form of qualifying Insurance Policy. ‘The Company has athe: tong term Emplayee Benoiits in the form of leave Encashment: The liability in fespect of Leave Encashiment is provided for on the bas's of actuarial valuation made at the end of the Financial Year. The aforesaid Leave Encashmentisnotfunded. (9) Borrowing Cost: ‘Borrowing cost attributable to the acquisition or construction of qualifying assets are capitalized es part Of the cast of such Assets. A qualifying asset is one that necessarily takes a substantial period of time to gatready for its intended use. Allother borrowing costsare charged torevenve. SHROFFS ENGINEERING LIMITED, VADODARA NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 34ST MARCH 2012 . (10) ay NOTES FORMING PART OF ACCOUNTS (CONTD... ): Insurance Claims: . Insurance claims are accounted foronactrual basis oron acceptance Excise Duty: Excise Duty in respect of Finished Goods manufactured ty the Company and remaining in Stock, has been provided in the accounts if sny as required by Revised Guidance Note on Accounting Treaiment of Excise Duty issued by the Instiule of Chartered Accountants of India. The effect of Excise Duty on Opening and Closing stock of Finished Goods, if any, is accouinted in the Profitand Loss Account CENVAT and VAT Credit : GENVAT and VAT Credit available are accounted by booking Purchase/Services net of Excise Quty Seivice Tax and VAT. Unutised Credits ate shown as receivables in "Loans and Advances” for adjustment ‘against Excise Duty and VAT payable on dispatch of Products/Materiats, TAXATION: Provision or Current Tax ip made after taking into consideretion benefits admissible under the Provisionsof the Income-TaxAct, 1951 MAT Credit is recognized as 3h asset nly witen and io the extent there is convincing evidence that ihe company will Day normal Income tax during the specified pedod. In the year in whveti the Minenurh Ateratve Tax (MAT) credit becomes eligible fo the recognized as an asset in accordance with the Fecommendations contained in guidance Note issued by the institute of Chartered Accountants of india the said asset is created by way of @ credit fo the profit and loss account and shown as MAT Credit entitlement. The Company reviews the saime al each balance shest date and wiites dow the cairying amount of MAT Cred Entitlement to the extent there is no longer convineing evidence to the eect that Company willpay normal income Taxduring the specified peried Dolerted Tax resuiting from "ining Diflerence” between Bok and Taxable Profits accounted tor uking the Tax Rates and Laws that have been enacted or substantively enacted as on the Balance Sheet date. Deferred Tax Assets in fespect of unabsorbed Depreciation and carry forward of Losses if any are recognized if there is viral certalnty that there will be sufficient future Taxable Income available to realise such Losses Prior Period Adjustments : Adusiment of identifiable tems of income and expenditure peramning to the prior period are accourited through "Prior Period Adjustments Account” Prepaid Expenses: Expenses pertainingtb subsequent period are accountedas prepaid expenses Foreign Currency Transactions: Transactions in Foreign Currency are recorded by applying the Exchange Rate prevaling at the date of transactions. any exchange gains of losses arising out of subsequent fluctuation are socounted for in the Profit & Loss Account Monolory items denomnatad in forsign currency remaining uneettied at theend of the year, are translated at closing rates, prevailing on the Balanc=-sheet dats Receivables and Liabilities outstanding in foraign currencies are translated at the exchange (ate prevailing as al theciose oftheyear. In case of Forward Exchange Rate Contracts, the premium or a discount arising at the inception of such forward Exchange Contract, Is amortized as expenses of Income over the lite of the Contract Provisions.and Contingent Liabilities : The company recognizes a Provision when there is'a present obligation 2s 2 resuit of a past.event that probably tequires an culiow of resources ond 2 reliable estimate can be made of the amount. of obligation. A disclosure for 3 Contingent liabiliy is mede when thare is a possible obligation or a present bigation that may, but probably Wil not. require an outiow af resources Where there is @ possiblity thatthe ikethood of autiow of resources is remote, no provision ordisclosure is made. Impairment of Assets : ‘An Asset is treated as impaired when the carrying cost of Assets exceeds its recoverable value. An Impairment joss is charged to tha Proft & Loss Account for the year in which an Assetis identified as impaled. The Impaitment loss. recognized in prior accounting petiod is reversed, if there has been a change in the estimate of recoverable amount ww ow NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.09.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 ASAT ASAT Fathers 34.03.2012 31.03.2011 z z NOTE-2 ‘SHARE CAPITAL AUTHORISED :- 40,00,000 Equity shares of Rs. 10/each [Previous Year 20,00,000 Equity Shares of Rs. 10/-each ISSUED SUBSCRIBED AND PAID UP : 20.51,000Equity Shares of is. 1G/-each Fly poid up. 2,06, 40,000 41,74,80,000 {Previous Year | 17,48,000 Equity Shares of Rs. t0-each = a TOTAL —_2,08,10,000 1,74,80,000 (2) OF the above. (3, 10.400 equity shares were alloted (in FY 2005-2007) as fully paid up Bonus Equly Shares by way ‘capitalisation of General Reserve Account {b) Ofthe above, 96,090 Equity Shares of Ris, 10/-e30h fully paid up, iesued during FY 2008-2007 to the shares holders of earstwhile SJ Clearwater, Pumps Lid. for consideration other than Cash pursuant to Scheme of Amaigamation of M/s: SJ Clearwater Pumps: Limited with the Company, (6) Of the above. 3.131000 Equity Shates of Fis. 10/ exch fuily paid Up ae Isstied/ alloted al a premiuen of Rs. 3O/- per Shate during the year, over and above 5,50,000 equity shares of Rs, 10/- each fully paid up were issued / allstied during FY 2006-2007. A. TERMS AND RIGHTS ATTACHED TO EQUITY SHARES (a) ‘The Company has issued Right Equity Shares of Rs, 10 each fully paid up ata premium of Rs. 30/- per ‘equity share during the year. Each haider of equity share is entitled tone vote per share, The Company daclares and pays dividend in Indian Rupees. The dividend proposed by the Board of Directors 1s: subject to the appravalof share haldersin the ensuing Annual General Meeting. (0). {n the event of liquidation the holders of the equity shares will be entitled jo receive remaining assats of the Company, after disinhution of preferential amounts, The distribution wil be in proportion: to tne humiber of equity shares eld by the Share Holders, RECONGILIATION OF EQUITY SHARES PARTICULARS NUMBERS Equity Shares at the beginning of the Year 17,48,000 17.48,000, Add: Rights Shares issued 3,19.000 0 Equity Shares at the ond of the year 20,649,000 17,48,000 in Value zt zr Equity Shares at the beginning of the Year 4,74,80,000 4,74,80,000 Add: Rights Shares Issued 31.30,000 0 Equity Share Capital at the end of the year 2,06,40,000 4,74,80,000 SHROFFS ENGINEERING LIMITED, VADODARA ‘SHROFFS ENGINEERING LIMITED, VADODARA. SS NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 AS AT ASAT Particulars: 31.03.2012 31.03.2011 z z C LIST OF SHARE HOLDERS HAVING 5% OR MORE SHARES (IN NOS.) PARTICULARS Mr. Praful M, Saraiya No. of Shares Held 348,196 245,753 % of Total Holding Mr. Harshad M. Joshi No, of Shares Held 2A2 519 1,82,880 % of Total Helding NOTE .3 RESERVES & SURPLUS CAPITAL RESERVE Opening Balance 9,80,000 980,000 ‘Add. Addition during the Year a 5 Less Utiisation during the Year : = Closing Balance (a) 980,000 SECURITIES PREMIUM, Opening Balance 55,00,000 56,00,000 ‘Add. Addition during the Year 93,90,000 - Less Utilisation during the Year : - Closing Balance ®) 1,48,90,000 GENERAL RESERVE Opening Balance 4,73,70,000 4,73,70,000 ‘Add. Transfer from Profit and Loss Account : Less . Appropriations - : Closing Balance 4,73;70,000 PROFIT AND LOSS ACCOUNT Opening Batance 63,19,023 13,38,687 Profi/(Loss) During the Year (89,42,752) 70,31,962 ‘Transie' to Reserves : - Proposed Dividend - (17.48.00) Dividend Distribution Tax” - (2.83, 576 Closing Balance (0) (26.23.751) 63,19,023, 6,06,16,269 6,01,69,023 NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 ASAT ASAT Particulars: "31.93.2012 31.03.2011 x x NOTE -4 LONG TERM BORROWINGS SECURED From Bank FromAXiS BANK LIMITED - Term Loan | = 2.18.015 From AXIS BANK LIMITED - Term Loan ti 200,655,568 : From Others ~ From KOTAK MAHINDRA PRIME LIMITED: 5,35,410 13,03,954 (Against Hypothacation of Vehicles) 2,05,00,978 15,21,969 UNSECURED ‘DEPOSITS ‘Loans and Advances from Relaied Parties $7,69,900 : From athers: 14,87,000 13,64,500 TOTAL 2,68,07.07 05,469 Dotails of Securities offered 4. TermLoan-t obtained from Axis Bank Lid. Vadodarais secured by way ofexciusive first charge an the Plant an d Machinenes, Equipments procured outof the said sanctioned Term Laan. 2. Term Loan - 2 obiained from’Axis Bank Lid., Vadodara is secured by way of exclusive first charge on the Plant and Machineries, Factory Building, and other property situated at Plot No. 21 (A) Alindra - Savi GIDC Estate, Manjusar. Vadodare, procured out of said TermLoan 3. Above Tetm Loans are further secured by way of hypothecation of entire current assets of the company and ‘equitable morigage of immovable propertiesin the nameof the Company, 4, Lean from KOTAK MAHINDRA PRIME LIMITED is secured by way of hypothecation of specific Vehicles. Terms of Repayment: Term Loan -1 from Axis Bank Lid. for procutement of Certain specific plant and machineries, equipments is repayable in equalled monthly installments of Rs. 2.08,000/- starting from 18-02.2071. The last installment of Rss, 1,08,528 shall be payable on 30.09.2012 2. Term Loan- 2 from Axis Bark Licl for procurement of Plant and Machineties, Equipment, construction of buildings and other infrastructure facilities situated at Alindra Savi, Manjuser, Dist. Vedodera, is repayable in monthly installments of Rs. 12,50,000. starting from 01.10.2011, the last installment shall be payable on 01.09.2014 3. On the above term joans from Axis Bank Ltd. the Rate ©. Interest agreed upon is at Base Rate + 3.50% pate 19.50% g.@ es0n March31st2012. 4 Loan from Kotak Mahindra Prime Ltd. for Vehicles, is repayable in equated monthly installments starting from 18.01.2010 and ranging up to 16 05.2011 with a step down repayment schedule with test installment ranging 4rom 10.12.2012 to 04.05.2014 for Rs. 1830/- and 12,282) respectively Rate of Interest Applicable is ranging ‘trom 9.31% 10 13,59% p.@. respectively on reducing balance. 5. Deposits ftom Direstors, Share Holders and Public carry interest rate @ 10% to 11% pa. and having maximum maturity period of 3 Years. ‘SHROFFS ENGINEERING LIMITED, VADODARA NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 ASAT ‘ASAT Particulars: 31.03.2012 34.03.2011, z x NOTE-§ DEFERRED TAX LIABILITY Deferred Tax Liabilities 29,94,797 40,786,398 Deferred Tax Asset (29,94,797) 10.83 601) Deterried tax Liabilities (Net = 29.94.757 NOTE -6 LONG TERM PROVISIONS Provision for Employee Benefits Leave Encashment (Non Funded) 12,07,878 807,521 12,07.879 8,07,521 NOTE ‘SHORT TERM BORROWINGS, SECURED Loans repayable on demand From AXIS BANK LIMITED (Working Capital Fackities) 6.21,33,719 7,28,32,301 TOTAL 6,21,33,719 7,28,32,301 UNSECURED Loans and Advances trom related parties 1,85,60,000 95,6000 Other ICs 25,00,000 - ‘Security Deposits 54,53,660 §3,68,650 TOTAL TOTAL 8.78.60, Cash Cresit Facilities (WOF) are secured by way of exclusive first charge / hypothecation on the entire Current Assets and hypothecation of all Fixed Assets of the Company as well as mortgage of immovable Properties. Ca Credit Facilties are repayable on demand and cary interest @ Base Rate +350 p.a,|e. 13.50% p.a. ason the Balance Sheet Date, Deposits rom Directors. Share Holders and Public carry interest rate @ 10% to 11% p.a and havin maturity within ‘12month from the date of Balance Sheet. NOTE-8 TRADE PAYABLES Trade Payables ForGeads 10,28,13,977 14,48,05,781 For Capital Expenses 38,44,221 480,564 For Expenses 4,28,91.115 78,31,545 (Outotthe Above total Outstanding to MSM Enterprise.are Rs. Ni) Rete: Note No. 28 11,94,49,313 12,34,47,890 NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 Particulars NOTE-8 OTHER CURRENT LIABILITIES ‘Curent maturites of lngtermdebt Foi Secured Loans For Fixed Deposits For Loans and advences fromreiated parties Advances from Customers Amount due to Ditectors Inierest Accruedbut: notDue en Borrowings: Statutory and Other dues Unpaid dividends NOTE-10 SHORT TERMPROVISIONS Provision for Employee Benefits ~Gratuity (funded) Leave Encashment(Non-Funded) Other Provisions Proposed Dividend Corporate Dividend Tax Provision for Excise Duty on Finished Goods ASAT ASAT $34.03.2012 34.03.2011 z t 700,000 261732 4,08,813, 269,174 - 17.48,000 : 2:83,578 22.48,350 25,78.307 2755163, 540,791 ee NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 1.082012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2072 3 NOTE - 11 FIXED ASSETS al [ ASSETS ___ GROSS BLOCK (AT COST) I ECIATION NET BLOCK B Deduction Batance | Addition Aicet | Balance | Totalup to | Provided Total upto | Asat | asat NG DESCRIPTIONS ason | ourng™e | Sas” | aso | 01.082011 | During |aentneng 31082012 | 34052012 axonaen | ITS 1 01.04.2014 | Year Tennsle Ady 31.03.2012 the year & During. | Year _ | = [AVFXED ASSETS = = x z z = & as z 2 1 | Bulging 2,28,48,085) 2,99,48.4: -| §.27.94.523|' 62.20.0381] 8,38,867 =| 90)58,098)|1.4628,.034| 1S 2 | Plant Structure “| (83.21.44 -|_ 89,21,413 23,181 =| 23161) ‘e2/98.250 s 4 | teamaegiactineros — |27970 770) 61.85.479 14,94,048|3.2661.208|1.8806,716| 1721416] 82.067 | 194as'ser] et eee 1,2364.081 4 | Technical KnowHow |” 1068028 -|10.08,028) “t0.88,026 = -| 198,028) + HE 5 | Electrical instaiatons | 16.42.97] 85.79.02 -|1.0222.008} 791,300) 1,04,949 >| 8.90340) 9325658) 851.577, IS & | Fumie Fixture & | 1,6494818| 1220240 3161,628] 1169,50.492| 73.68516| 1109503| 74799 84.00.8311) 79,83,120/ 81.26.3001 2 Ofice Equipments * | 8 7_| Vehicles’ 1.08.40,901| _11,35.467|_3,20202|1.47,88.166 | 3021,1421 40,08.671| _77,49.406| 79,1970] [> = TOTAL (A) Rs: | 7,99,63,568) 6.63,90,002) 21,76,177 13.31.76 859 §,98,98,695) 9.32.76, 168|4.38,87,721] ||| 2 5) LEASE HOLD ASSETS GROSS | sr, Balance | Agaion LEASE EQUILISATION ACCOUNT(S) | OUTSTANDING LEASE VALUE Total upto | Provided | peduetin) | Total upto] Asat DESCRIPTIONS OF ason | Duting The 01.06.2011 | During 99.03.2092) 31.09.2012) 31.03.2011 No, “ASSETS enanon| te the ye Paustments | ss z ay, {ez Lease Hold Land 4.83,132 |7,84,22 26; =i oi 47.455 =| 62.260 |1..66.43.135) TOTAL (8) & 1.83,132 |1,84,22,264 = 44,804 17,455) -|___62,289 | 1,85,43,136) 1328 GROSS BLOCK (A¥6) € | 6,01,46,690 7,98,12,344 21,7677 3.61,20,64% 49,29,484) 10,08,172|3,89 60.984 1 [Tey 2010-41 & 7,96.17,521]4,18,60,262 33,531,095] #,01.48 800) 3,37 6 18,24 308) 4 80,26,048 | .144_44,51,9%8) 20,92.422/ 3.61.20 540| 4.40 26, 06613,78,66,376 SICAPITAL-WORKIN | Balsnco as ADDITION |CAPITALISED| BALANCE As | PROGRESS: on 01.04.2014 During The ‘on 31.03.2012 — x. fers) Land | 7220310 7 7220319 = | Plant and Machineries 11,55,000 | 1,21,93,197 1,22.64.490| 10,63,707 Buicings 20,48,007|7,07.85:796 110286 558) 19,37,845, | | =| 2541512 5:02. 500| Electrical instaliations 1.86815) 71.37.28 68,78 403) 4 TOTAL(C) Rs. _|1,06,08,732!9,20.57,787,3,72,40.361| 54.26,1 I _| NOTES :- Tre ree Cutis iu and os Endres Inca Asses nla a Eiojes elderce undo readies shone oc ther onnuse @. YSAT.TI8. PY. 1342279, Oe vale of ease elder ines premium of® 46,372. pak tote Conputnt Authory and beg wren et popariaraialy ovr the Lecce ried S_Sovovina® cont coplsized sng yar ended 2st March 2012 wos ©. 1984738 CoctlaViokin Popes also ees Belong Cos tt heel of? 247 SHROFFS ENGINEERING LIMITED, VADODARA NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 ae ASAT x Particulars 31.03.2012 31.03.2011 = z NOTE - 12 NON-CURRENT INVESTMENTS |. NON-TRADE INVESTMENTS IN EQUITY SHARES > 30C0 EautyShares of 2Seach tly pardupot Go Op BenieofBarodaiUioqsotee) 76,000 > 2200 Equity Shares of nolan Overseas Bank ofS. 1Oeachfuly ass Up 78,600 NON-TRADE INVESTMENTS IN GOVT SECURITIES National Savings Certiicate (Vill Series) Unquoted) 6,000 ‘CRogreqate Matket valve ot quotedinvestmenisat Match 31, 2012'6 <. 5,58,340/-(PY &, 9,46.440-) Total Non-Current investment 59,600 4,59,600 NOTE-43 LONG TERM LOANS ANDADVANGES Unsecured Considered Good: Security Deposits 16.67.1060 4 9 16,67,109 13,53.939 NOTE-14 OTHER NON CURRENTASSETS Miscellaneous Expenciture (to the Sxtentnotw/of!) - 10 . TOTAL © 35zt0 NOTE-15 INVENTORIES Rew Materia 4.73,95,724 5,05,40,189 Packing Material 42,89,795 44,946.77 Work in Process (Semi Finished 3.95.54 584 4.39,97,728 Stock-in-Trage 4,86,03,793 5,58,40.570 Stores and Spares 85,01 198 47.81.728 {33,75,091 75,65 ,35.071 NOTE-16 ‘TRADE RECEIVABLES (UNSECURED) Over Six Months i Good 31.11.9680 25,20,733 Doubtful 829,000 9,23,000, Below Six Months Good 5,96,89,398 656.99,747 Doubtful 5,96,24,358. Less Provision for Doubttul Debts: SHROFFS ENGINEERING LIMITED, VADODARA NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31,03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 ASAT ASAT Particulars: 31.93.2012 31.03.2011 x NOTE-17 CASH AND CASHEQUIVALENTS CashonHand 2,94:603 9,83,063 Balance with Banks InCurrentaccounts 69,16,.245 118.3741 Earmarked CurrentAccounts -Unpaid Dividend 14,90,033 £0,708 Liquid Fund Deposits 33,41311, 21,3317, Othar Bank Balances -Margin Maney Deposits 19.86,043. 40,70,087 Cheques ontiand 773,840 = 7,45,03,475 78504414 ‘Note: Margin Money Deposits are subject ofist charge to secure tne Company's Working Capital Facies. NOTE-18 SHORT TERMLOANS ANDADVANCES OTHERS (CONSIDERED GOOD) Advanceto Suppliers For Capital Expenditure 26,58,302 626.247 For Other Expenses: 727,088 577.980 Prepaid Expenses 819,015 620,388, ‘Advances toEmployees: 12,59,034 9.55019 Balance with Statutory Authariios 4,92,99,173 2.44,03,231 ‘Advance Income Tax (Natof Provision of Tax/Incl. MAT) 64,64,820 62.42.8657 TOTAL 3,92,19,433 3,35,15,522 NOTE-19 OTHER CURRENTASSETS: Insurance Ciaim Receivable : 89,327 Enchahge Diflerence Receivable - 133,657 Interestacerued but not due 25,022 87,436 Other 42,014 51,877 74,636, 342,297 NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 21.03.2012 AND THE PROFIT ND LOSS STATEMENT Particulars NOTE - 20 REVENUEFROM OPERATION SALEOF GOODS Domestic(Gross) Export Less Excise Duty SALEOF SCRAP TRADED GOODS INCOME FROMSERVICES OTHER OPERATING REVENUE Handing Charges SHROFFS ENGINEERING LIMITED, VADODARA, \R ENDED 31ST MARCH 2012 FOR THE 2091.2012 x 36,46,09,620 2,53,93,737 ¥7,00.03.657 wa 38,47,77,073 ®) 7,28,772 (c) 2,20,99,653 (2) 40.733 TOTAL(A+8+C+D) #1,86,16,232 14,15,947 TOTAL = _44,48,847_ TOTALREVENUEFROMOPERATIONS 42,00,32,179 NOTE-24 OTHERINCOME Interest OnBank Deposits OnOthers Dividend ‘OnNon Cutrentinvestments Net gain onsaleo! Fixed Assets Esa Other Non-Operating Income (Net of Expenses) NOTE -22 COSTOF MATERIAL CONSUMED Faw Materials Consumption Stock atCommencemer Add: Purchases: Freightand Octrolon Purchase Less. SlockatCicse Packing Materials Consumption Stock af Commencement Add Purchases: Loss: StockatCioee ‘Total Consumption of Materials NOTE-23 CHANGEININVENTORIES ‘Stockat Commencement ‘Work in Plocess/ Semi finished Finished Goods Werk-in-Process /Semi Finished Finished Goods: Traded Goods ‘Stock Decreased (Increased) by TOTAL oy FOR THE YEAR 2010-2011 z 37,99,65,781 9101.48 582 47.01,12,375 1189.01.348 45,42,11,027 13,25,507 41,88,74,491 34,460 (A7,18,42,485 44,03,500 14,03,500 A7,28.45,985 2,98,34,771 2/50,91.044 21925513 5,80,18,325 4.39,97,729 NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 FOR THE YEAR ASAT Particulars ~ Rot-2012 31.03.2011 2 z NOTE-24 EMPLOYEE BENEFITS EXPENSES Salaries, Wages, Bonus etc 4.98.48 953 4.52,90.667 GoninbutontoPF.,ES.1 andother Statutory funds 45.38,235, 43161,244 \Workmen end Siaif Weifare Expenses 82,35,473 NOTE-25 FINANCE COSTS: Intorest Expenses Intereston Term Loan 897,452 Iotereston Working Capita! 73,72.534 Intaroston Others 56.24,608 ‘Bank Commission and Charges: 14.26.681 TS3.44, NOTE-26 OTHEREXPENSES {A) Manufacturing . Consumption of Sioreand Spares 58,85,534 i Pawerand fue! Expenses 787 26,47,288 ‘Other Manufacturing Expanses: 450,627 798 REPAIRSAND MAINTENANCE 265,184 19.41.2042 3168415 3.41889 30,48.557 52'80,535 ‘SubTotal(A) —7,02.45.074 7,43,03,218 201,493 1,70,043 Bad Debts Writen OF 3 19;34,009, Less Provision for Doubtful Debts . (11,414,000) Chaiity & Donation Expenses 41,41,557 392974 ‘Communication Expenses 21/90,938 1842877 Computer Expense 416.518 384,478 Directors’ Sitting Fees Expenses ‘90,000 ‘88,000 Generaland Miscellaneous Expenses 4457,735 34,59. 968 Legal and Professional Services Charges 40,46.363 35.36 709 Losson Sale otAssets 212.648 408417 Printing & Stationery Expenses 20,368,618 16,65.455, Rates and Taxes 6,43,457 611,342. Rent Expenses 25,94,098 22.49.5293 Insurance Expenses 14,10,098 10,413,615 Prior Period Expenses 95,787 342 768 Miscalancous Expense Whitten Off 36210 52.619 Excess Provision for Taxation 425288 SubTotal(®) _1,8243,500 52,76,081 (€)Salling and Distribution Advertisement Expenses 28.97,670 $490,708 ‘After SaleService Expenses 29°87 964 28,76 508 CashDiscount 79,50,943 77.40,248 Commission oh Salas 13)04,764 89.422 Seaneyates 10.14)004 7.44208 Traveling expenses 1,92 /841426 1.90.25 480 Encisa/VAT and Solos Tax 1,24,489 2117721 Freight Outwara 65;58/561 87/53.643 Sales Promotion Expenses 34/38, 242, 32/54. 858 SubTotal(c) —375.79.173 415,83,354 TOTAL (A+8+C) _6,60,66,747 774,73,554 SHROFFS ENGINEERING LIMITED, VADODARA NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 Particulars 27, Contingent Liabilities & Commitments: 4 ContingontLiabitites : b commitms 5, Esliniated amount of Contracts remaining to be executed on vents : ASAT _ 34.03.2012 ital Account and not provides for (Netof Advances of oe 80,85,S4ti-. PY.%_11245.479) » Lingala abiineecn Soresand € Other Commitments: |" Disputed income Tax libiities | Dighuted Sales Tax liabilves iii Guarantees, Letter of Creditsete: forpurchase ofmatenal ‘The Sales-tax Assessments of the Com; further Sales Tax Liabilities in this reso stated above ‘The Income-tax Asssserents of the Company have been ry have been completed jer Investments party paid & 46.86.27 50,17,808 1a5.111840 up to 2007-2008 and Company expects no @rtuhey inal aul tsi may ange ov account of deputed. fosities os, ASAT 34.03.2011 2 3,56,98,004 Year 2008-2008 corresponditig to the Accounting Yeat 2007-2008 and the Company has proferred against the disputed tax lability for the amountof Rs. 46,66.277. the disputed TaxLiabitty hasbeen paid partly ti the Currert Year, Pending disposalof the Company's appeals, Dotails of Auditor's Remuneration (a) -AsStatutory Auditors (b) As TaxAuditors (c) OtherServices (6) Reimbursementof Expenses MSMED Undertakings dues: Under the Micro, Small & Madium Enterprises Development Act, 2008 which came Into force from 2nd October, 2006, certain disclosures ere required fo be made relating to Micto, Small & Medium Enierprises. The Company is in the process of comping relevant information from its supplers sbout their coverage into the sald Act. Since. the folevant information is not ready evalable, no disclosures have been made fn the Account. However, n view fof the amendment. the Impact of Interest, if any, that may be payable in sccardance with the Provisions ef the Act isnotexpected toe material 36, Dotalls of Manufactured! Traded Goods (a) Manufectured Goods: Se No. Finished Products : Category FortheYyear 2011-2012 z 4,140,000. 30,0000- 10,000/- 51.496/- 2011-42 by the Deparment upto the Assessment ‘appeals Forthe Year 2010-2014 2010-11 ‘Sales Closing | Gpening Nnwentory | Inventory z — ‘Salea ‘Cioning inventory ‘36,67.89.621) 4,39.87.368| 0,09,99,710 36,31.99,544| Sosanis| 237.0549 240,93.40 501455] 25,32,170 9,78.23005 28,32.170] 21,40,014) 53,09,097| 1626207] 64.604 48,90,081 54.604] 11,385,682) 39,0,95,024) * 070) 532,908,800 145,56,14527) 6: 32,06,580| 2.59,07,081 Workin Process/Semi Finished Products) Category 2010-11, Opening E ‘Opening & Closing = Bare Pumps! Bare Motsre’Gempanents / Spares and Others: 43997729 agasar7 | 4,39,97,728 | NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT. AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 (b) Traded Goods : Sr No. Category 2011-12 2010-11 “Gpening | Purchase | Sales | Closing Inventory inventory z z z z ‘Opening | Purchase Inventory z z Sales & | Pumpsets | 25.44,091 |2,00.01,184)2.90,57,712) 40,17.995 Sparesicomp =| 1ceere] tee] 7687 orantOthare T 2t92.543 | 1,36,56.702| 758.7440 Total | 2,02,00,772) 2,30,09,683) 40,84,972 31 RawMaterials and Components Consumed tem Description Reet AS Value &. "aransts | 1a68700 1.58,74.491) 25,44.091 | 2 Value ® Stainjess Steel 1.96,77.772 Winding Wire 3,66,85,457 Piastic Parts & powder 1,04,90.527 Casting 3,50,05,769 Stampings 294,04 965 Other Items: 11.81,22,082 24,93,26,552 | 34,08,14,139 1.88,44,696 9184.52.980 '62,72.497 477.16:538 4.97,90,555| 17,99,37,803 Particutars of Goods: jue of Raw Materials Components, Stores & Tools Consumed in Foreign Currency/income 2010-2014 ] [et] | Total) RAW MATERIALS & COMPONENTS CONSUMED STORES & TOOLS CONSUMED Incigenous Indigenous 24,93,26.552 55,85,534 100 VALUE OF IMPORT OI jateriais N ‘Componé b) Traded Goods IF BASIS OF 3 Raw Mé oon, c) Otmers (R & OExD.) 26.97.345 Expenditire in Foreign Currency in respect of (on Payment Basis) Traveling Exp. Earnings in Foreign Exchange on account of Export ‘of goods on FOB hesis 100,354 2,50,88.465 8,72,21,951 NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND 33 LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 Nature of Prior Period items (AS-5): loosen |Z Particulars FY: 2019-42 | FY; 2010-41 z z Material Cost (Including Processing Charges) 90,755 88,893 Payment & Provisions for Employees: (1,734) 12,034 ‘Selling & Distribution Expenses 9,620 1,58,120, Administrative Expenses 85,322 60,960 Finance Charges (Interest) (7,428) 22.761 Sales Value (66,225) = Total 704,310 | 342,760 | Disclosure as perAccounting Standard _28- (impairment of Assets) According to the tachnieal assessment carried out by the Compary, thet has been no impairment in the carrying cost to Cash Generation unite ofthe Company interms of Accounting Standard. 28 (AS 28) sued by the Institute of Chartered Accountants of India Disclosureas perAccounting Standard 11 Foreign Currency Transactions: ‘2. The Company enters into Forward Exchange Contacts being derivative instruments, which are notintended for rading cr speculative purposes, but for hedge purpose fo establish the amount of reporting currency required ar available at the date of certain payable and recelvatle “The Outstanding Forwatd Exchange contacts entered into by the Company ason31stMarch2012 No cf Contracts 40 Value in Foreign Currency USD 105) Millions ValueinINRatYearend 2.534 78 Lacs There are no Foreign Currency exposures that remained unhedged as on 3ist March 2012 except one receivable of USD § 4583 Disclosureas per Accounting Standard -17 (Segment Reporting): {Primary Business Seamen's. ‘The Company's Operations predortinanity comprise of only one Segment Le, Engineering (Manufacturing Of Submersible Pumpssts and its Components). In view of the seme, separate segment information 1s:n0t Tequiredio be cisciosedas per the requirement of Accounting Standard 17. Secondary Business Segment The Ansiyais of Geographical segment is based on the Geographical localicn of the Customers. The Geographically segment considered for disclosure are as follows ‘Sales wihin India including Sales to Cusiomers located within india. Sales outside India including Sales to customers located outside india Information pertaining to GeographicalSegments: eet ~——] Current Year] Previous Year] Periiesters, in Lacs Tintacs 2011-2012 | __ 2010-2011 _| ‘Revenue Within trai 396109} 3670.51 250.80 872.22 4211.98 Carrying value of Segment Assets ‘Within ini [esa Outside india 462.51 TOTAL 3605.83 SHROFFS ENGINEERING LIMITED, VADODARA SHROFFS ENGINEERING LIMITED, VADODARA NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 34ST MARCH 2012 ii, Fixed Assets by Geographical Location - : ‘The Company has common Fixed Assets for producing goods far Domestic as well as Overseas markets, There are no Fixed Assets situated outside india Hence, additional sagmentwise information for FivediAssets! Additions to Fixed Assais has not been furnished 37 Disclosure as per Accounting Standard - 16 (EMPLOYEE BENEFITS): Disclosure as requited by Accounting Standard (AS-16) - “Employee Benefits” issued by the institute of ‘Chartered Accountants of Indiaisas under 2) Defined Contribution Plans : The Company has recognizes the following amounis in the Profit & Lass Ascountfor the Year. | Particulars 2011-2012 | 2040-2011 | (Tn. Lacs} 26:32 650 | Contibution ta Provident Fund Contribution to Superannuation Fund * *Superannuatioy The Superannuation Scheme is funded with an Insurance Company in the form ofa qualifying Insurance Policy, Besides the Company hessiified and taken Annuity Policy trorn tha Life Insuranee Comporaticn of India io Koto Mahendra Old Mutual Life insurance Ltd., However, accumulated funds lying with Life Insurance Corporation of Indie are pending for transfer to Kotak Mahendra Old Mutial Life insurance Ltd. There are na ebligations ‘thar than the Contribution payable to the respective Funds, Defined Benofit Plans 1 Gratuity a The Company has defined gratuity plan. Every emoloyee who has completed five years of more of service gets a gratuity on departure, effactive at 15 days salary (last drawn salary) for each completed years of service The Company has formed a Gratuity Trust and taken policy from the Life insurance Corporation of India for managing thelr group Gratuity Scheme. The Company makes contribution to Life Insurance Corparation of india at ond of avery year based on actuerial valuation carried by them for which data Is given by the Company. Major . assumptions made for determination of Defined benefits Liability summarized as under __ Actuarial Assumptions ; Method adopted Projected Unit Credit Method Retirement Age 60 Years Withdrewal Rates 4,09 % Per Annum Future Salary Rise 7.5 % Per Annum Rate of Discounting 3.00% PerAnnum Mortality Table LG (1994'96) ULTIMATE _| {i Leave Encashment Provision towards leave encashiment is made on the basis of actuarial valuation based on folowing assumptions Rale of Discounting 8.00% Per Annum Future Salary Rise 7.50% Per Annum NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT| AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 SHROFFS ENGINEERING LIMITED, VADODARA li Change in Plan Assets ‘Sheet as Provision GRATUITY FUNDED LEAVE-PL UNFUNDED Pettoa: 07.04.2011 | 01.04.2010 | Of,082011 | 01.04.2010 To 34-09-2012 | To 31-03-2011 To To z |" 31032012 | 31-03-2011 Fair value ofthe plan atthe beginning | 7.44,62506| i2ac6470| NA NA. ‘Actual Retuin on Plan Assets 1396403) 1225519 [ NA NA Employers Contribution 2.62400] 825275 | NA NA ‘Actual Benefit paid during the Year (6.26.780)| (2:26.858)| NA NA Plan Assets at the olose 1.84.44598) 1.44,62,508 | NA NA, iv Change in Benefit obligations : GRATUITY FUNDED LEAVE-PL UNFUNDED Period ‘Of042011 | 01042010 | 1082013 | 04.04.2090 Tostazot2 | rostasaon | Tost-at-a02| Yost as20n ‘Adivarial Value of Projected Banaht a (a) Geena tales, | 12858440 | | 1o7E.686 Interest Cost toze7s | 867,100 Service Cost 10.54.8655 | 966777 pal ‘Actuarial Gan’ (Loss) on Obligations | (6.26780) | (3.11.910) | _(1.99,104) Benetts Paid (11.08.373) | (2,26,858) | (231.830) | (6,22.748) "PEO atthe end (Closing Balance) 7,563 | | 16, 10,76 685 Net Assets / Liability recognized in the Balance Sheet : f 7 GRATUITY FUNDED LEAVE-PL UNFUNDED As at 07.04.2017 04.06.2010 04.04.2045 01.64.2030 To 31-03-2012 | Yo $1-03-2011| To 34-03-2012| To 31.03.2011 t =: = z si | Present value of the Obligation .92,07.563 | 1.265890 | 16.10.5060 | 10,76.095 | Far value of pian assets 1.54,44,538 | 1.44,82,508 NL NIL _Over-funded Liability 2.96,975 | 18,24,066 | 16,1056 | 10.76.6905 Unrecognized - actuarial gainsiiosses Nik | NIL Nik NL ‘Over funded liability yet to berecognized —2.36,075 | 18.24,066 nit we in Balance Sheet as asset | Uniunded liabiliy recognized in Balance | NIL NL 16,10,506 | 10,76.605 SHROFFS ENGINEERING LIMITED, VADODARA NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PRO AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 vi_Net Employee Benefit Expenses : GRATUITY FUNDED? | LEAVE-PL UNFUNDED € Period GroszOy | oLoRzTTO | OF.04-2011 a atokzoi2 | s.o320i | s103 2012 04-04-2012 31-032091 Interest Gost 10,12,675 | 667,193 861,135 84274 Setvice Cost 866,277 402 Actual retum on plan assets 13,36,403 | 12.25.5619 5, NIL ‘Actual Gein/(Loss) recognized .(11.08.373)_|_(3.11,910)_|_(1,86,104) (66,330) Net Cost 49,99,500 | 6,19,661 7,65 644 9,468,022 vii Investment of Plan Assets (Gratuity Funded) df0az011 To Period 31.03-2012 07.04.2010 ‘To, 31-03-2011 Investment with Insurer - LIC of India 100% 100% ‘The Company's planned assets, as per the information derived from the Life insurance Corporation of india are in excess of the Projected Benefit obligations as at 31st Match, 2012 as certified by consulting actuary, ‘ASthe matter of prudence, the said excess is not recognized in the Accounts of the Gompany during the year under consideration. However, if terms of the Gratuity Annuity Policy issued by LIC. the Company has marie minimum Provision of Rs. 1,00,000/- to cover-up current year's liability on account of excess accumulated Plan Assets available in conformity with te consulting actuary and the said contribution is deposited with LIC on Dt. 18,04.2012 38) DISCLOSURE AS PER ACCOUNTING STANDARD 22 - (DEFERRED TAX LIABILITY (NET) The break-up of Deferred Tax Provision as at 31.03.2012 is as under: AS ON 34.03.2012 A) Deferred Tax Liability : z - Difference between income Tax and Book Depreciation 54,883,743 8) Deferred Tax Assets: 8) Items covered U/s : 438 of Income Tax Act 686.419 4) Provision for Doubtul Debts ¢) Unabsorbed Business Losses/Depreciation for the year 59,02,387 G) NET DEFERRED TAX (ASSETS)LIABILITY (A-B) *(4.13.644) *As a matter of prudence, Deferred Tax Assets are recognized only to the extent of Deferred Tax Lisbiltes provided in the Books of Accounts amounting to ®. 29,94.797 Hence, as at 31st March 2012 Deferred Tax Assets/Liabilties in the Books of Accounts are NIL ASON 31.03.2011 829.294 254,207 10/83,601, NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 2011-2012 2010-2011 zt zt Profit(Loss) attributable to Equity Shareholders &. (89,42,752) ©. 70,11,963 Basic/Waighted Average No. of Equity Shares Outstanding 16,968,085 %.17,48,000 NominalFace value. per Equity Share z 10 z 10 Batie/Diluted Earning per Equity Share 44.87) z 401 40 Disclosure as per Accounting Standard 18 “Related Party Disclosures” (a) Relationship KEY MANAGEMENT PERSONNEL & | ENTERPRISE OVER Whicl KEY MANAGE: THEM RELATIVES MOAVE SETUGANTIMLUENGE Mir Profil M, Saraiya@ His Relatives. | TMU Industies Lid {Chairman and Managing Director) | Trenspek Siox Industry Lt. ‘Ws. Cheina P Saraiva Prakrayat! investment Pvt. Li. Ms. KtiyallR. Decal resent Data Products Pvt Lie Ms Keil P Saraiva Agiocel Industries | No Paresh M1 Saraiva Mr, Sunt M. Saya ‘Mrs. Bindu Kt Sth re Vie. Sarai Me Manan & Saraive No. Krupa P Sorniya (Me, Harshad M. Jothi & His Relatives : Whole-Time Director) Wes Nita H. Joshi Mrz. P.M. doshi Me Shiressh Mi. Joshi {b) The following transactions were carried out with the related parties in Ordinary course of Business ENTERPRISE OVER WHICH KEY MANAGEMENT PERSONNEL & THEIR NATURE OF TRANSACTION RELATIVES HAVE SIGNIFICANT IWFLUENCE —————— 2044-2012 2010-2018 SALES Goods INCOME Interest on Deposits > EXPENDITURE Interest On ICD 15,58.517 608.413 Rent Compensation Exps 8,70,000 OUTSTANDING AS AT BALANCE SHEET DATE, Payable 5 Loan ICD Recawed 96,60,000 'SHROFFS ENGINEERING LIMITED, VADODARA NOTES ANNEXED TO AND FORMING PART OF THE BALANCE SHEET AS AT 31.03.2012 AND THE PROFIT AND LOSS STATEMENT FOR THE YEAR ENDED 31ST MARCH 2012 (6) Transactions with Key Management Personnel and their relatives = ise ene aincem | eiocamn | *H — oe? = | 1 | Remuneration 86,00,000 80.00.00 2 | Directors Siting Fees 12,000 20,000 3 | Interest On Fixe Deposit 12.63.201 41,93:390 4 | Fixed Deposit Accented 48,30,000 24,25,000 5 | Fixed Deposit Repad 21,20,000 45;50,000 8 | Bivitend Pad 12,90,420, 12.40,835 Outstanding as at Balance Sheot Date: 1 | Fixed Deposit 1,10,65000/ 1.48.58,000 2 | Remuneration Payabi to Decore 792,700 $1604 | 41 Balances of Debiors, Creditors, Loans and Adv&nces are subject to confirmation, reconciliation andconsaquential adjustment, any, {nthe Opinion of the Board, the Current Assets, Loans and Advances are approximately of the value stated, if realized in the Ordinary Course: of Business: Provisions for all liown Liabilties are adequate and notin excess of the amount reasonably necessary. Previous Year's Figures: ‘The Revised Schedule VI has become effective from 1 st April 2011 for the preparation of Financial Statements. This has significantly impacted the disclosure ahd presentation made in the Financial ‘Statements. Previous Year's figures have been regrouped / reclassifies whelever necessary to ‘correspond with the Current Yeer's classification / disclosure. ‘AS per oUF attached report af even date For and on behall of the Board For PARIKH SHAH CHOTALIA 8 ASSOCIATES PRAFUL M. SARAIYA, Chartered Accountants ‘Chairman & Managing Directar CA RAHUL H. PARIKH HARSHAD M. JOSHI Partner Whole-Time Director Membership No. : 105642