1.(c) Rights, preferences and restrictions attached to shares :

The Company has issued Equity shares with Voting rights only of Face value of Rs.10 each and each share carries right to one vote. The Company issued 4% Cumulative Redeemable Preference Shares of Face value of Rs.100 each. These shares are redeemable within the statutory permissible time period as per the terms of the issue. Such shares carries prior right to receive dividend over equity shareholders.

(i) Installments falling due in respect of all the above loans up to 31.03.2017 have been grouped under "Current Maturities of Long Term Debt" (Refer Note 9).

(ii) Nature of Security and terms of repayment for long term secured borrowing :-

(a) Nature of Security : Term loans from Banks/Financial Institutions are secured by way of first mortgage of all immovable properties and hypothecation of all the Company's movables (save and except book debts and stock) including movable machinery, spares and tools both present and future ranking pari-passu inter-se subject to prior charge created/to be created in favour of the Banks/Financial Institutions on specified movable assets for securing borrowing for working capital requirements and personal guarantee of the Executive Chairman.

Trade Payable includes Rs.64,889 Lacs towards acceptances (Previous Year Rs.67,607 Lacs) and Rs.14.52 Lacs (Previous Year Rs.12.83 Lacs) due to Micro, Small and Medium Enterprises Undertakings.

Sale of Manufactured Goods includes export sales of Rs.56,831.84 Lacs (Previous Year Rs.64,145.19 Lacs) Sale of Traded Goods includes export sales of Rs.Nil Lacs (Previous Year Rs.Nil Lacs)

Note:

i) During the year under review the Company has sold fixed assets for an amount of Rs.4,273 Lacs and earned profit of Rs.2,443 Lacs.

ii) During the year under review the Company has sold 13,33,332 Equity Shares of Shreeyam Power and Steel Industries Limited at a price arrived on the basis of valuation report of an Independent Chartered Accountant. The Company has made loss of Rs.199 Lacs on the sale of the said Equity Shares.

Employee costs include Managerial remuneration of Rs.146.01 Lacs paid to Mr. Santosh Shahra, Executive Chairman in excess of the permissible limits, under the Provision of Section 197 read with Schedule V of the Companies Act, 2013. The Company proposes to apply to the Central Government for the necessary approval and also to obtain approval of the members in the ensuing Annual General Meeting.

Defined Benefit Plan :

(a) A General description of the Employees Benefit Plan:

The Company has an obligation towards gratuity, a funded defined benefit retirement plan covering eligible employees. The plan provides for lump sum payment to vested employees at retirement, death while in employment or on termination of the employment of an amount equivalent to 15 days salary payable for each completed year of service or part thereof in excess of six months. Vesting occurs upon completion of five years of service.

b) Expenses recognized during the year under the head "Employees Remuneration and Benefits"

In case of gratuity as per the actuarial certificate net cost required to recognized in the Profit and Loss Account is (Rs.35.09) Lacs (previous year Rs.103.23 Lacs).

VI. The major categories of plan assets as a percentage of the total plan assets

Insurer Managed Funds 100% 100%

Note : The details of investment made by the insurer is not readily available with the Company. The estimates of Rate of Escalation in salary considered in actuarial valuation takes into accour inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

As the investment is with the insurance company, list of investment is not available so expected return is assumed to be taken from benchmark rate available on government securities for the tenure of 15 years i.e. the average future service calculated individually.

2. During the year the Company has paid an amount of Rs.26.54 Lacs as lease rent, charged to Profit & Loss Account (Previous Year Rs.25.29 Lacs).

3. The Company is carrying the Electrical Turnkey project. During the year total Contract Revenue recognized is Rs.651.42 Lacs.

4. Balances of debtors, creditors, deposits and advances are partly confirmed.

5. The figures of previous year have been regrouped wherever necessary to conform the Current years classification.