b. Rights, preferences and restrictions attached to equity shares

The Company has only one type of equity share having par value of Rs. 10/- each per share. All shares rank pari passu with respect to dividend, voting rights and other terms. Each shareholder is entitled to one vote per share except, in respect of any shares on which any calls or other sums payable have not been paid. The Company pays and declares dividends in Indian Rupees. Whenever dividend is proposed by the Board of Directors, the same is subject to approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend, if any. The repayment of equity share capital in the event of liquidation and buy back of shares are possible subject to prevalent regulations. In the event of liquidation, normally the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding.

Texmaco has, in terms of a share purchase agreement dated July 20, 2013, agreed to purchase 19,37,960 equity shares held by the erstwhile promoters of the company. However, acquisition of only 9,14,575 equity shares (out of the above) has been completed till 31.03.2016, which have been taken into account while calculating Texmaco’s 42.87% shareholding in the company mentioned above. After acquisition of balance 10,23,385 shares Texmaco holding will increase to 49.07%.

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 ownership of shares.

d. Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date : Nil

1 Bank guarantees

Based on contractual agreements with customers the company has issued bank guarantees aggregating Rs.365.40 crores (PY Rs.377.44 crores). The management believes that none of the bank guarantees will be cashed by any of the customers.

2 Details of dues to micro, small and medium enterprises defined under the MSMED Act, 2006

The company has not received any information from the suppliers regarding there status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence disclosure, if any, relating to the amount paid as at the year end together with interest payable/paid as required under the said act has not been furnished.

3 Disclosure as required under Clause 32 of listing agreement

There is no reportable amount of Loans and advances (excluding advance towards equity) in the nature of loans given to Subsidiaries, Joint Ventures and Associates.

4 During the year company has reconciled majority of its trade receivables/loans and advances. Pursuant to such reconciliation, the company has made a provision for bad debts of Rs. 5477.21 lacs (previous year Rs.1621.05 lacs) in statement of profit & loss for the year ended 31st March 2016. Considering that these trade receivable/loans & advances are pertaining to previous periods before the current management took over, an equivalent amount has been transferred from balance surplus in statement of profit & loss of the earlier years. Considering the above, the same has been classified as an exceptional item.

5 In the opinion of the Board and to the best of their knowledge and belief, the value on realization of loans, advances and current assets in the ordinary course of business will not be less than the amount at which they are stated in the balance sheet.

6 In the opinion of the management except for matters as mentioned above, there are no impairment indicator and as such the impairment exercise has not been carried out by the management.

7 At board meeting held on 31st August 2015, a change has been made in composition of Board of Directors by appointing four additional directors as a nominee from Texmaco Rail & Engineering Limited, after the change Texmaco Rail & Engineering Limited controls the composition of Board of Directors and has become the holding company of Kalindee Rail Nirman (Engineers) Limited.

8 Employee benefits

Defined Benefit Plan (Gratuity Funded and Leave Encashment Non-funded) - As per Actuarial Valuation on 31.03.2016.

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The Scheme is funded with an insurance company in the form of a qualifying insurance policy.

Earned leave not availed during the year can be accumulated with subsequent year up to maximum 90 days. The earned leave accumulated beyond 90 days can be encashed at any point of time.

The following tables summaries the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet for the plan.

a) Disclosure in respect of previous three annual periods as required by paragraph 120n of Accounting Standards - 15 "Employee Benefits" is not presented as the management considers it impracticable in absence of requisite information.

b) The expected return on plan assets has been determined considering several applicable factors mainly the composition of plan assets held, associated risks of assets management, historical results of returns and policies for plan assets.

c) The estimates of future salary increase considered in actuarial valuation take into account inflation, seniority, promotions and other relevant factors such as supply and demand factors in the employment market.

d) Based on the Guidance Note from the Institute of Actuaries of India, the Company's Actuary has reliably measured the provident fund liability in respect of Provident Fund (Trust) and there is no shortfall.

e) Defined Contribution Plan

Employer's contribution to Provident Fund and Other Funds aggregating to Rs.11,578,129 (Previous year Rs.9,634,547) has been included under Note 21 - Employee benefit expense.

e) Actuarial valuation for liability towards Gratuity & Leave encashment started from the current financial year 2015-2016.

9 Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year's classification/disclosure.