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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Bemco Hydraulics Ltd.

Mar 31, 2025

Note (i)

The amount due from Subsidiary i.e. Bemco Fliudtechnik LLP is 3: 122.55 Lakhs (P.Y 3: 39.07 Lakhs) in which one of the director is also a partner in LLP. (Refer Note 5.41 - Related Party Transactions)

Note (ii)

A case was filed for the recovery of the doubtful advance against B. H. Bhattiwala ("Respondent") in the court of the Hon'' ble Prl. District Judge, Belgaum. The order was passed on 30^th August, 2011 in favour of Bemco Hydraulics Limited directing the respondent to pay a sum of 3: 5 Lakhs along with interest at 6% per annum amounting to 3: 2.73 Lakhs i.e. total of 3: 7.73 Lakhs by delivery of any property specifically decreed or by attachment or sale of Moveable or immovable properties.

However, when summons were issued to the respondent it was found that the respondent has passed away and his spouse and legal hiers have not responded to the summons yet.

Therefore, on basis of prudence the claim awarded has not been recognised as income niether the provision against the debt has been reversed considering the uncertainly in relation to receipt of the claims.

Note (iii)

Disputed entry tax Rs. Nil (Previous Year Rs. 1.05 Lakhs).

(e) Rights, Preferences and Restrictions attached to Equity Shares of ^ 10/- each.

The Company has Equity Shares having par value of ^ 10/- per share. Each holder of Equity Shares is entitled to one vote per share. Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors subject to 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 the remaining assets of the company, after distribution of all preferential amounts, in proportion to their shareholding.

A. Nature and purpose of reserves:

1. Capital Redemption Reserve (CRR):

The Company is created Capital Redemption Reserve form it''s Retained for redemption of Cumulative Redeemable Preference Shares. Capital Redemption Reserve can be utilised as per the provisions of the Companies Act, 2013.

2. Security Premium:

Security premium is created when shares are issued at premium. The reserve can be utilised in accordance with the provisions of the Act.

3. General Reserve

General reserve was created from time to time by way of transfer of profits from retained earnings for appropriation purposes. The reserve can be utilised as per the provisions of the Act.

4. Capital Reserve:

On the date of transition to Ind AS the balance outstanding in the Revaluation Reserve against Property, Plant & Equipment as per Previous GAAP has been transferred to the Capital Reserve.

5. Retained Earnings

Retained earnings are the accumulated profits earned by the Company till date, less transfer to general reserves, dividend (including dividend distribution tax) and other distributions made to the shareholders. Retained Earnings can be utilised as per the provisions of the Act.

5. Other Comprehensive income

The company has elected to recognise changes in the fair value of investments in equity instruments and changes in remeasurement of gratuity obligation- actuarial gains in other comprehensive income.

B. Consequent to Finance Act, 2024 reducing the rate of long term capital gains tax from 20% to 12.50% on immoveable property Deferred tax has been recalculated on Leasehold Property and the consequent reduction amounting to Rs. 322.08 lakhs has been adjusted to Capital Reserve.

Redeemable Preference Shares

Rights, Preferences and Restrictions attached to Preference Shares of ^ 100/- each

The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share. In the event of liquidation of the Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital but shall not be entitled to any surplus arising thereto.

The rights of preference shares are further governed by Section 47 of the Companies Act, 2013.

General Description, details of security and other conditions attaching to:

BANK OF BARODA

Cash Credit (CC) availed from Bank of Baroda is secured by hypothecation ofGoods/ Book Debts/ Current Assets/ Movable Machinery/ Vehicles (Other than those financed by Other Banks / NBFCs)/ other fixed assets. The CC is further secured by Eqitable mortgage of selfoccupied Industrial Property located at S.No.691, New No.343 at Majagaon Udyambag, Belgaum,Karnataka-590008. The tenure of twelve months subject to payable on demand/ annual review. There is an unconditional and irrevocable personal gurantee of two directors of the company {Refer Note 5.41} and the loan is further secured by corporate guarantee given by two companies, Mohta Capital Pvt Ltd(MCPL) and Sri Ramachandra Enterprises Pvt Ltd (SRE). The faciliy amount is K 750 Lakhs with a floaing interest rate of 8.10% (Repo Rate 6% Plus mark up2.10%)spread over and above Bankâs BRLLR and SP Rate. The interest is payable monthly.

The quarterly returns or statements of current assets filed by the Company with banks are in agreement with the books of accounts . There were no material discrepancies

(2) Nature of Provisions

(a) Product warranties: The Company gives warranties on certain products and services in the nature of repairs / replacement, which fail to perform satisfactorily during the warranty period. Provisons made represents the amount of the expected cost of meeting such obligation on account of rectification/ replacement. The timing of outflows is expected to be within a period of 2 years.

(b) Provision for Leave Encashment includes annual leave and vested long service leave entitlement accrued and compensation claims made by employees.

5.28	a) CONTINGENT LIABILITIES AND COMMITMENTS Description of Contingent Liabilities
5.28	CLAIMS AGAINST THE COMPANY /DISPUTED LIABILITIES NOT ACKNOWLEDGED AS DEBTS:

	Particulars	31-03-2025	31-03-2024
		^ in Lakhs	^ in Lakhs
(i)	Entry Tax Demand Disputed in Appeal (Excluding Interest)	-	2.10
(ii)	GST Demand Disputed in Appeal	32.38	32.38

(iii) Spl. C. S. No. 546/2016

One of the Parties of the company namely "Mahesh Enterprises" has filed a suit for recovery of ^ 69.20 Lakhs (Previous Year: ^ 69.20 lakhs) in the Honâble Civil Court of Nagpur. The case is still pending.

(iv) A Party of the company namely "D. Khandelwal Steel Corporation Limited" has filed a suit for recovery of ^ 146.36 Lakhs (Previous Year: ^ 146.36 Lakhs) in the Honâble Civil Court of Nagpur. The case is till pending.

Note: The Company has been advised that the above demands/ cases is likely to be either deleted or substantially reduced and shall not have any material adverse effect on its financial position. Hence, No provision has been created for the same.

b) COMMITMENTS

Capital commitment (net of advance) Rs. Nil.

All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India (LIC). LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years.

(vii) The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

ix) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

x) Retirement age 60 years or 70 years if extension is given.

xi) Average Duration

Weighted average duration of the plan (based on discounted cash flows using mortality, withdrawal and interest rate) is 11.37 years.

xii) Expected future benefit payments

The following benefits payments, for each of the next five years and the aggregate five years there after, are expected to be paid:

xiii) The above cash flows have been arrived at based on the demographic and financial assumptions as mentioned earlier.

xiv) Expected contributions for the next year

The company has contributed Rs. 30.05 Lakhs to its gratuity fund in 2025. The Company intends to contribute Rs. 50.00 Lakhs towards its gratuity fund in 2026.

xv) Sensitivity Analysis

Sensitivity analysis indicates the influence of a reasonable change in certain significant assumptions on the outcome of the Defined benefit obligaion (DBO) and aids in understanding the uncertainty of reported amounts. Sensitivity analysis is done by varying one parameter at a time and studying its impact.

xvi) Risk exposure and asset liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed here under, as companies take on uncertain long term obligations to make future benefit payments.

1) Liability risks

(i) Asset-Liability Mismatch Risk

Risk which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements. Hence companies are encouraged to adopt asset-liability management.

(ii) Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.

(iii) Future Salary Escalation and Inflation Risk

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead to uncertainties in estimating this increasing risk.

2) Asset Risks

All plan assets are maintained in a trust fund managed by a public sector insurer viz; LIC of India. LIC has a sovereign guarantee and has been providing consistent and competitive returns over the years.

The company has opted for a traditional fund where in all assets are invested primarily in risk averse markets. The company has no control over the management of funds but this option provides a high level of safety for the total corpus. A single account is maintained for both the investment and claim settlement and hence 100% liquidity is ensured. Also interest rate and inflation risk are taken care of.

C. Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

The amounts outstanding are unsecured and will be settled in cash. No expense has been recognised in the current or prior years for bad & doubtful debts in respect of the amounts owed by related parties.

No guarantees have been given during the year.

D. Details of any Guarantees Given or Received

Two Directors of the Company including Shri Anirudh Mohta (Managing Director) have given Personal Gurantee for the following Financial Arrangements:

(i) Cash Credit facility availed from Bank of Baroda.

Note: The aforesaid credit facilities is also secured by corporate guarantee from Sri Ramachandra Enterprises Private Limited and Mohta Capital Private Limited. For details of terms and tenure of the above financial Arrangements kindly Refer Note 5.22.

Foreign Currency Sensitivity Analysis

The Company is mainly exposed to the currency : EURO

The following table details the Company''s sensitivity to a 5% increase and decrease in the ^ against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the ^ strengthens 5% against the relevant currency. For a 5% weakening of the ^ against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Equity Risk

There is no material equity risk relating to the Companys'' equity investments which are detailed in note 5.04 "Investments". The Companys'' equity investments majorly comprises of Long Term Investments rather than trading purpose.

Interest Risk

There is no material interest risk relating to the Company''s financial liabilities which are detailed in Note 5.17, 5.21 and 5.24. Credit Risk

Credit Risk is the risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit Risk arises from Companys'' activities in investments and other receivables from customers. The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The Company generally has set a policy of receiving 80 percent of the sale proceeds as an advance after the orders get finalized and remaining 20 percent at the time of dispatch and commissioning.

Liquidity Risk

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term,and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

All current financial liabilities are repayable within one year. The contractual maturities of non current liabilities are disclosed in Note No. 5.17.

Liquidity Risk Table

The following table detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial laibilities based on the earliest date on which the company can be required to pay.

5.43 Capital Management

The Company''s policy is to maintain a stable and strong capital structure with a focus on total equity so as to maintain investors, creditors and market confidence and to sustain future development and growth of its business. In order to maintain the capital structure, the Company monitors the return on capital, as well as the level of dividends to equity shareholders. The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to all its shareholders. For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves and debt includes non-current borrowings, current borrowings and certain components of other financial liabilities.

FAIR VALUE HIERARCHY

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market conditions (i.e., an exit price), regardless of whether that price is directly observable or estimates using a valuation technique.

The Company determines fair values of its financial instruments according to the following hierarchy:

Level 1 - valuation based on quoted market price: financial instruments with quoted prices for identical instruments in active markets that the Company can

access at the measurement date.

Level 2 - valuation using observable inputs: financial instruments with quoted prices for similar instruments in active markets or quoted prices for identical or similar instruments in inactive markets and financial instruments valued using models where all significant inputs are observable.

Level 3 - valuation technique with significant unobservable inputs: financial instruments valued using valuation techniques where one or more significant inputs There were no transfers between level 1, level 2 and level 3.

Disclosure as per PARA 91 of Ind As 113 "Fair Value Measurnments"

(a) The investments in quoted and unquoted equity shares are measured at fair value on recurring basis. The quoted shares are valued at the closing price available on the recognised stock exchange.

(b) Break up value (Level III inputs) is used to measure unquoted equity shares on a recurring basis . The difference between the last year fair value and current year is charged to Other Comprehensive Income. {Refer Note 5.37}

5.45 Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. manufacturing and sale of hydraulic press machine and related equipments'' which primarily includes Hydraulic Presses, Equipments and Portable re-railing equipmets and the activities incidental thereto, hence does not have any reportable Segments as per Ind AS 108 "Operating Segments".

Note 1: Revenues from external customers attributed to an individual foreign country were not material hence have not been separately disclosed.

Note 2: Revenues from external customers to individual countries are attributed based on the destination of export sales made.

(b) All Non-Current Assets held by the entity, required to be disclosed as per this para are located in the entity''s country of domicile.

(iii) Information about Major Customers as Required by PARA 34

Revenue from One customers of the companyâs Rerailing equipment business represent ^ 2667.28Lakhs (Previous Year ^ 1,117.56Lakhs ) of the companyâs total revenue which is more than 10% of the companyâs total revenue.

5.46 A. Revenue Stream

The Company is principally engaged in the business of manufacture of wide range of Portable re-railing equipment, Light weight re-railing equipment, Hydraulic Re-railing equipment, Re-railing Systems, Hydraulic press, Wheel fitting press and Straightening press. Sale of Service includes installation charges. Other sources of revenue include Freight, Packing Charges, Annual Service Contracts etc.

5.47 Additional Regulatory Information as required by Schedule III to the Companies Act, 2013:

a) The title deeds of the Immovable Property (other than properties where the company is the lessee and the lease arrangements are duly executed in favour of the lessee) are held in the name of the Company.

b) The company does not have any investment property at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

c) The company has not revalued its Property, Plant and Equipment during the current year and previous year.

d) The company has not granted any loans or advances in the nature of loan to promoters, directors, KMP and the related parties (as defined under Companies Act, 2013), either severally or jointly with any other person, which are repayable on demand or without specifying any terms or period of repayment during the curent and the previous year. Accordingly, disclosures as required under this para is not applicable.

e) The company does not have any capital work-in-progress at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

f) The company does not have any intagible asset under development at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

g) There has been no proceeding initiated or pending against the company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and the rules made thereunder during the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

h) The company has not been declared as wilful defaulter by any bank or financial institution or other lender during the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

i) The company has not entered into any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956 during the current and previous year. Accordingly, disclosures as required under this para is not applicable.

j) There are no charges or satisfaction pending for registration with the Registrar of Companies beyond the statutory period. Accordingly, disclosures as required under this para is not applicable.

k) The company only has one wholly owned subsidiary and accordingly compliance with number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with Companies (Restriction on Number of Layers) Rules, 2017 is not applicable.

m) No Scheme of Arrangements has been approved by the Competent Authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) during the current year and previous year with the understanding (whether recorded in writing or otherwise) that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(B) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) during the current year and previous year with the understanding (whether recorded in writing or otherwise) that the company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

o) There are no transactions not recorded in the books of accounts that has been surrendered or disclosed as income in the books of account during the current year and previous year in the tax assessment under the Income Tax Act, 1961.

q) The Company has not traded or invested in Crypto Currency or Virtual Currency during the current year and previous year and therefore, the disclosures as sought is not applicable.

5.48 Proposed Final Dividend for F.Y. 2024-25 is K 2.00 per equity share of face value of K 10 each amounting to K 43.734 lakhs (Previous Year -K. 43.734 Lakhs).

5.49 The figures for the corresponding previous year have been regrouped/ reclassified wherever necessary, to make them comparable.

5.50 All amounts in the financial statement are in K Lakhs.

Mar 31, 2024

(i) The amount due from Subsidiary i.e. Bemco Fliudtechnik LLP is K 15.05 lakhs (P.Y ^ 10.16 Lakhs) in which one of the director is also a partner in LLP. (Refer Note 5.41 - Related Party Transactions)

(ii) Other than above, no trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

The amount due from Subsidiary i.e. Bemco Fliudtechnik LLP is ^ 39.07 Lakhs (P.Y ^ 81.53 Lakhs) in which one of the director is also a partner in LLP. (Refer Note 5.40 - Related Party Transactions)

Note (ii)

A case_wgs filed for the recovery of the doubtful advance against B. H. Bhattiwala ("Respondent") in the court of the Hon"ble Prl. District Judge, Belgaum. The order was passed on 30^th August, 2011 in favour of Bemco Hydraulics Limited directing the respondent to pay a sum of K 5 Lakhs along with interest at 6% per annum amounting to ^ 2.73 Lakhs i.e. total of ^ 7.73 Lakhs by delivery of any property specifically decreed or by attachment or sale of Moveable or immovable properties.

However, when summons were issued to the respondent it was found that the respondent has passed away and his spouse and legal hiers have not responded to the summons yet.

Therefore, on basis of prudence the claim awarded has not been recognised as income niether the provision against the debt (las been reversed considering the uncertainity in relation to receipt of the claims.

Note (iii)

Included in above is amount of ^ 1.05 Lakhs deposited against the total demand of ^ 2.10 Lakhs for Entry Tax due under the Karnataka Tax on Entry of Goods Act, 1979 for financial years 2006-07, 2007-08, 2008-09 & 2009-10. An appeal has been preferred with the Hon'' ble Joint Commissioner of Commercial Taxes (Appeals), the case is still pending in the forum. Also refer note no. 5.28(a).

Nature and purpose of reserves:

1. Capital Redemption Reserve (CRR):

2. Security Premium:

Security premium is created when shares are issued at premium. The reserve can be utilised in accordance with the provisions of the Act.

3. General Reserve

General reserve was created from time to time by way of transfer of profits from retained earnings for appropriation purposes. The reserve can be utilised as per the provisions of the Act.

4. Capital Reserve:

On the date of transition to Ind AS the balance outstanding in the Revaluation Reserve against Property, Plant & Equipment as per Previous GAAP has been transferred to the Capital Reserve.

5. Retained Earnings -

Rights, Preferences and Restrictions attached to Preference Shares of ^ 100/- each

The rights of preference shares are further governed by Section 47 of the Companies Act, 2013.

Details of continuing defaults in respect of Deferred Payment Liabilities Terms of Repayment

The total outstanding with respect to Deferred Payment Liabilities are 2.85 Lakhs Euros ( Previous Year: 2.85 Lakhs).

The Company has a continuing default of ^ 254.79 Lakhs (Previous Year ^ 252.97 Lakhs) in respect of deferred payment liabilities as at the balance sheet date which is included in the amount ''Current portion of deferred liability for Intangible Assets'' as disclosed under note no. 5.22.

General Description, details of security and other conditions attaching to:

BANK OF BARODA

Cash Credit (CC) availed from Bank of Baroda is secured by hypothecation of Goods/ Book Debts/ Current Assets/ Movable Machinery/ Vehicles (Other than those financed by Other Banks / NBFCs)/ other fixed assets. The CC is further secured by Eqitable mortgage of self-occupied Industrial Property located at S.No.691, New No.343 at Majagaon Udyambag, Belgaum,Karnataka-590008. The tenure of twelve months subject to payable on demand/ annual review. There is an unconditional and irrevocable personal gurantee of two directors of the company {Refer Note 5.40} and the loan is further secured by corporate guarantee given by two companies, Mohta Capital Pvt Ltd(MCPL) and Sri Ramachandra Enterprises Pvt Ltd (SRE). The faciliy amount is ^ 1250 Lakhs with a floaing interest rate of 9.25% (0.50% spread over and above Bank''s BRLLR and SP Rate. The interest is payable monthly.

(2) Nature of Provisions

(b) Provision for Leave Encashment includes annual leave and vested long service leave entitlement accrued and compensation claims made by employees.

5.28 a) CONTINGENT LIABILITIES AND COMMITMENTS Description of Contingent Liabilities CLAIMS AGAINST THE COMPANY /DISPUTED LIABILITIES NOT ACKNOWLEDGED AS DEBTS:
Particulars	31-03-2024 ^ in Lakhs	31-03-2023 R in Lakhs
(i) Entry Tax Demand Disputed in Appeal (Excluding Interest)	2.10	2.10
(ii) GST Demand Disputed in Appeal	32.38	-

(iii) Spl. C. S. No. 546/2016

One of the Parties of the company namely "Mahesh Enterprises" has filed a suit for recovery of K 69.20 Lakhs (Previous Year: ^ 69.20 lakhs) in the Hon''ble Civil Court of Nagpur. The case is still pending.

(iv) A Party of the company namely "D. Khandelwal Steel Corporation Limited" has filed a suit for recovery of ^ 146.36 Lakhs (Previous Year* ^ 146.36 Lakhs) in the Hon''ble Civil Court of Nagpur. The case is till pending.

Note: T fd Company has been advised that the above demands/ cases is likely to be either deleted or substantially reduced and shall not have any material adverse effect on its financial position. Hence, No provision has been created for the same.

b) COMMITMENTS

Capital commitment (net of advance) Rs. Nil. ''

ix) The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

x) Retirement age 60 years or 70 years if extension is given.

xi) Average Duration

Weighted average duration of the plan (based on discounted cash flows using mortality, withdrawal and interest rate) is 10.79

xii) Expected future benefit payments

Â¦yie following benefits payments, for each of the next five years and the aggregate five years there after, are expected to be paid:

xiii) The above cash flows have been arrived at based on the demographic and financial assumptions as mentioned earlier.

xiv) Expected contributions for the next year

The company has contributed Rs. 27.72 Lakhs to its gratuity fund in 2024. The Company intends to contribute Rs. 30.00 Lakhs towards its gratuity fund in 2025.

xv) Sensitivity Analysis ,

Age of the members at the valuation date is taken as their nearest age at that date,

xvi) Risk exposure and asset liability matching

Provision of a defined benefit scheme poses certain risks, some of which are detailed here under, as companies take on uncertain long term obligations to make future benefit payments.

1) Liability risks

(i) Asset-Liability Mismatch Risk

Risk,which arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the

â¢ . defined benefit liabilities, the company is successfully able to neutralize valuation swings caused by interest rate movements.

- â¢*

Â¦^J '' Hence companies are encouraged to adopt asset-liability management.

(ii) Discount Rate Risk

Variations in the discount rate used to compute the present value of the liabilities may seem small, but in practise can have a significant impact on the defined benefit liabilities.

(iii) Future Salary Escalation and Inflation Risk

2) Asset Risks

C. Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

No guarantees have been given during the year.

D. Details of any Guarantees Given or Received

Two Directors; of the Company including Shri Anirudh Mohta (Managing Director) have given Personal Gurantee for the following Financial Arrangernerits:

(i) Cash Credit facility availed from Bank of Baroda.

Foreign Currency Sensitivity Analysis

The Company is mainly exposed to the currency : EURO

The following table details the Company''s sensitivity to a 5% increase and decrease in the K against the relevant foreign currencies. 5% is the sensitivity rate used when reporting foreign currency risk internally to key management personnel and represents management''s assessment of the reasonably possible change in foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the K strengthens 5% against the relevant currency. For a 5% weakening of the * against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Equity Risk

There is no material equity risk relating to the Companys¹ equity investments which are detailed in note 5.04 "Investments". The Companys¹ equity investments majorly comprises of Long Term Investments rather than trading purpose.

Interest Risk

There is no material interest risk relating to the Company''s financial liabilities which are detailed in Note 5.16, 5.21 and 5.23. Credit Risk ,

Credit Risk is ^e-risk that a customer or counterparty to a financial instrument fails to perform or pay the amounts due causing financial loss to the company. Credit Risk arises from Companys'' activities in investments and other receivables from customers. The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The Company generally has set a policy of receiving 80 percent of the sale proceeds as an advance after the orders get finalized and remaining 20 percent at the time of dispatch and commissioning.

Liquidity Risk

All current financial liabilities are repayable within one year. The contractual maturities of non current liabilities are disclosed in Note No. 5.17.

Liquidity Risk Table

The following table detail the Companyâs remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The tables have been drawn up based on the undiscounted cash flows of financial laibilities based on the earliest date on which the company can be required to pay.

5.43 Capital Management

Level 1: Quoted Prices in active markets for identical assets;

Level 3: Inputs other than observable market data, are used for deriving fair value.

Disclosure as per PARA 91 of Ind As 113 "Fair Value Measurnments"

(a) The investments in quoted and unquoted equity shares are measured at fair value on recurring basis. The quoted shares are valued at the closing price available on the recognised stock exchange.

5.45 Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. manufacturing and sale of hydraulic press machine and related equipments'' which primarily includes Hydraulic Presses, Equipments and Portable rerailing equipmets and the activities incidental thereto, hence does not have any reportable Segments as per Ind AS 108 "Operating Segments".

(ii) Information about Geographical Area as Required by PARA 33

(a) Reveunues From External Customers Amount of Revenue ( ^ in Lakhs)

(I) Attributed to the entity''s country of domicile 6,730.69 (Previous Year: 4557.74)

(II) Attributed to all foreign countries in total from which the entity 404.43 (Previous Year; 47.51) derives revenues

Note 1: Revenues from external customers attributed to an individual foreign country were not material hence have not been separately disclosed.

Note 2: Revenues from external customers to individual countries are attributed based on the destination of export sales made.

(b) All Non-Current Assets held by the entity, required to be disclosed as per this para are located in the entity''s country of domicile.

(iii) Information about Major Customers as Required by PARA 34

Revenue from One customers of the company''s Rerailing equipment business represent ^ 1,117.56 Lakhs (Previous Year ^ 684.68Lakhs ) of the company''s total revenue which is more than 10% of the company''s total revenue.

5.46 A. Revenue Stream

5.47 Additional Regulatory Information as required by Schedule III to the Companies Act, 2013:

b) The company does not have any investment property at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

c) The company has not revalued its Property, Plant and Equipment during the current year and previous year.

d) The company has not granted any loans or advances in the nature of loan to promoters, directors, KMP and the related parties (as define4>âunder Companies Act, 2013), either severally or jointly with any other person, which are repayable on demand or without specifying any terms or period of repayment during the curent and the previous year. Accordingly, disclosures as required under this para is not applicable.

e) The company does not have any capital work-in-progress at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

f) The company does not have any intagible asset under development at the end of the current year and previous year. Accordingly, disclosures as required under this para is not applicable.

j) There are no charges or satisfaction pending for registration with the Registrar of Companies beyond the statutory period. Accordingly, disclosures as required under this para is not applicable.

l) Analytical Ratios

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

p) The Company is covered under Section 135 of Companies Act, 2013. Disclosures as required as follows:

q) The Company has not traded or invested in Crypto Currency or Virtual Currency during the current year and previous year and therefore, the disclosures as sought is not applicable.

5.48 Proposed Dividend for F.Y. 2023-24 is ^ 2.00 per equity share of face value of ^ 10 each amounting to ^ 43.734 lakhs (Previous Year -Nil), subject to approval at the insuring AGM of the Company and here is not recognised as liability.

5.49 The figures for the corresponding previous year have been regrouped/ reclassified wherever necessary, to make them comparable.

5.50 All amounts in the financial statement are in ^ Lakhs.

Mar 31, 2018

5.40 As per Ind AS 24, the disclosures odf transactions with the related parties are given below:

List of related parties where control exists and also related parties with whom transactions have taken place and relationships:

(a) Subsidiary

Bemco Fluidtechnik LLP (Incorporated on 13-02-2015. Formerly Bemco Fluidtechnik Private Limited upto 26-02-17)

(b) Key Management Personnel

Shri Madan Mohan Mohta - Chairman

Shri Anirudh Mohta - Managing Director

Shri R.M. Shah

Shri N.K. Daga

Shri Dilip Chandak

Shri R.B. Patil

Miss Amruta Tarale

Smt. Urmila Devi Mohta

(d) Enterprises where key management personnel have significant influence:

U. D. Finnvest Pvt Ltd

Mohta Capital Pvt Ltd

Bemco Precitech Pvt Ltd

U.D.Polyproducts Pvt Ltd

Sree Ramachandra Enterprises Private Limited

The following related party transactions were carried out during the year.

(All Figures in Rs)

Nature of Transactions	Subsidiary		Key Management Personnel		Relatives of Key Management Personnel		Enterprises where Key Management Personnel have significant influence
Nature of Transactions	2017-2018	2016-2017	2017-2018	2016-2017	2017-2018	2016-2017	2017-2018	2016-2017
I. Property, Plant & Equipment Sale of Plant & Machinery - Bemco Fluidtechnik LLP		12,78,028
II. Financial Assets
Trade Receivables
- Bemco Fluidtechnik LLP	6,35,653	2,64,074	-	-	-	-	-	-
III. Preference Share Capital
11% Cumulative Redeemable Preference Shares of Rs 100/- each
- Mohta Capital Private Limited	_	_	_	_	_	_	1,88,88,960	1,88,86,142
- U.D. Finvest Private Limited							64,62,013	64,61,049
- Sri Ramachandra Enterprises Private Limited							64,62,013	64,61,049
IV. Financial Liabilities
Short Term Borrowings
Accepted During the Year
- Sri Ramachandra Enterprises Private Limited							1,00,000
- Mohta Capital Private Limited	-	-	-	-	-	-	3,32,00,000	2,95,45,000
Repaid During the Year (Including Interest)
- U.D. Finnvest Private Limited	_	_	_	_	_	_	27,244	82,000
- Sri Ramachandra Enterprises Private Limited	_	_	_	_	_	_	6,188	1,01,720
- Mohta Capital Private Limited	-	-	-	-	-	-	3,24,91,404	2,73,60,000
Balance as at Year End (including interest)
- U.D. Finnvest Private Limited	-	-	-	-	-	-	2,54,401	2,54,401
- Sri Ramachandra Enterprises Private Limited	-	_	_	_	_	-	1,00,917	-
- Mohta Capital Private Limited	.	.	.	.	.	-	4,63,14,201	4,34,72,459
- Bemco Precitech Pvt Ltd							1,45,780	1,45,780
- U.D. Polyproducts Pvt Ltd							2,15,197	2,15,197
Trade Payables
- Bemco Fluidtechnik LLP	9,90,397	6,59,447

							(All Figures in Rs)
Nature of Transactions	Subsidiary		Key Management Personnel		Relatives of Key Management Personnel		Enterprises where Key Management Personnel have significant influence
	2017-2018	2016-2017	2017-2018	2016-2017	2017-2018	2016-2017	2017-2018	2016-2017
V. Other Financial Liablities
Guarantee Commision Payable as at Year End
- Mohta Capital Private Limited							2,06,259	1,03,129
- U.D. Finvest Private Limited							41 ,027	20,514
- Sri Rama Chandra Enterprise Private Limited							1,08,220	54,110
VI. Revenue From Operations
Sale of Goods
- Bemco Fluidtechnik LLP	2,30,464	2,10,410	-	-	-	-	-	-
VII. Other Income
Lease Rental
- Bemco Fluidtechnik LLP	1,20,000	1,20,000	-	-	-	-	-	-
VIII. Expenses
Purchase of Raw Materials
- Bemco Fluidtechnik LLP	44,50,130	30,76,587	-	-	-	-	-	-
Finance Cost
- U.D. Finnvest Private Limited					_		_	38,103
- Sri Ramachandra Enterprises Private Limited	_	_	_	_	_		_	9,816
- Mohta Capital Private Limited	-	-	-	-	-	-	23,07,164	27,69,980
- Bemco Precitech Private Limited	_	_	_	_	_	_	17,350	17,347
- U.D.Polyproducts Private Limited	-	-	-	-	-	-	25,605	26,150
Employee Benefit Expense
- Shri Anirudh Mohta	_	_	57,57,482	22,78,426	_	_	_	_
- Shri RB Patil			9,22,109	7,74,469
- Smt Amruta Tarale			4,58,580	3,65,798
Other Expenses
Sitting Fees
- Shri Madan Mohan Mohta	-	-	7,000	5,000	-	-	-	-
- Smt Urmila Devi Mohta	_	_	_	_	7,000	5,000	_	_
- Shri R.M. Shah			6,000	4,000
- Shri N.K. Daga			7,000	4,000
- Shri Dilip Chandak			7,000	5,000
Guarantee Commision
- U.D. Finnvest Private Limited	_	_	_	_	_	_	1,84,876	22,793
- Sri Ramachandra Enterprises Private Limited	-	-	-	-	-	-	4,87,459	60,122
- Mohta Capital Private Limited	-	-	-	-	-	-	9,29,440	1,14,588

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions.

Compensation of key management personnel of the Group

The remuneration of director and other member of key management personnel during the year as follows;

Particulars	2017-2018 Rs.	2016-17 Rs.
Short-term employee benefits	70,32,001	33,01,865
Post-employment benefits	9,01,770	4,48,028
Other Long Term Benefits	-	-
Termination benefits	-	-
Share Based Payments	-	-
Total compensation paid to key management personnel	79,33,771	37,49,893

5.41 Foreign Currency Risk

The following table shows foreign currency exposures in Euro on financial instruments at the end of the reporting period.

	Foreign Currency Exposure
Particulars	As at 31-03-2018 Euro	As at 31-03-2017 Euro	As at 01-04-2016 Euro
Trade and Other Payables
- Deferred Payment Liabilities	4,00,000	4,00,000	7,70,000
Trade & Other Receivables
-Trade Receivables	5,181	-	-

Foreign Currency Sensitivity Analysis

The Company is mainly exposed to the currency: EURO

The following table details the Company''s sensitivity to a 5% increase and decrease in the Rs. against the relevant foreign currencies. 5% is the sensitivity rate used foreign exchange rates. This is mainly attributable to the exposure outstanding on receivables and payables in the Company at the end of the reporting period. The sensitivity analysis includes only outstanding foreign currency denominated monetary items and adjusts their translation at the period end for a 5% charge in foreign currency rate. A positive number below indicates an increase in the profit or equity where the Rs. strengthens 5% against the relevant currency. For a 5% weakening of the Rs. against the relevant currency, there would be a comparable impact on the profit or equity, and the balances below would be negative.

Impact of profit or loss and Equity

	Euro Impact
Particulars	31-03-2018	31-03-2017	01-04-2016
Increase in Exchange Rate by 5%	(16,57,190)	(14,08,000)	(29,18,300)
Decrease in Exchange Rate by 5%	16,57,190	14,08,000	29,18,300

Equity Risk

There is no material equity risk relating to the Comapnys'' equity investments which are detailed in note 5.03 "Investments". The Companys'' equity investments majorly comprises of strategic investments rather than trading purpose.

Interest Risk

There is no material interest risk relating to the Company''s financial liabilities which are detailed in Note 5.16, 5.21 and 5.23

Credit Risk

Credit Risk arises from Companys'' activities in investments and other receivables from customers. The Company has a prudent and conservative process for managing its credit risk arising in the course of its business activities. The Company has set a policy of receiving 80 percent of the sale proceeds as an advance after the orders get finalized and remaining 20 percent at the time of dispatch and commissioning.

Liquidity Risk

Ultimate responsibility for liquidity risk management rests with the Board of Directors, which has established an appropriate liquidity risk management framework for the management of the Company''s short-term.and long-term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows, and by matching the maturity profiles of financial assets and liabilities.

All current financial liabilities are repayable within one year. The contractual maturities of non current liabilities are disclosed in Note No. 5.16

Liquidity Risk Table

Particulars	Less Than 1 year	1 -5 years	Total	Carrying Amount
As at 31-03-3018	Rs.	Rs.	Rs.	Rs.
i) Borrowings	12,03,99,533	44,59,946	12,48,59,479	12,48,59,479
ii) Other Financial Liabilities	25,22,295	1,56,040	26,78,335	26,78,335
	12,29,21,828	13,21,53,800	12,75,37,814	12,75,37,814
As at 31-03-3017
i) Borrowings	12,91,43,439	49,28,586	13,40,72,025	13,40,72,025
ii) Other Financial Liabilities	45.04.031	1.56.040	46.60.071	46.60.071
	13,36,47,470	50,84,626	13,87,32,096	13,87,32,096
As at 01-04-2016
i) Borrowings	14,48,30,113	49,78,903	14,98,09,016	14,98,09,016
ii) Other Financial Liabilities	67,19,921	25,000	67,44,921	67,44,921
	15,15,50,034	50,03,903	15,65,53,937	15,65,53,937

Capital Management

The Group manages its capital to ensure that entities in the Group will be able to continue as going concern while maximising the return to stakeholders through optimisation of debt and equity balance. The capital structure of the Group consists of net debt (borrowings as detailed in note 5.16,5.21 and 5.23 off set by cash and bank balances) and total equity of the Group. The Group is not subject to any externally imposed capital requirements.

Gearing Ratio

Particulars	As at 31-03-2018	As at 31-03-2017	As at 01-04-2016
Debt	20,90,56,646	21,29,77,173	25,79,00,957
Cash and Bank Balances	(2,24,38,421)	(1,52,19,522)	(1,29,57,228)
Net Debt	18,66,18,225	19,77,57,651	24,49,43,729
Total Equity	33,71,14,164	32,51,18,973	29,55,68,147
Net Debt to Total Equity	55.36%	60.83%	82.87%

Debt is defined as long-term borrowings, short-term borrowings and current maturity of long-term borrowings , as described in notes 5.16, 5.21 and 5.23.

5.42 Fair value measurements hierarchy

	As at 31-03-2018			As at 31-3-2017			As at 01-04-2016
Particulars	Carrying Amount	Level of Input used in		Carrying Amount	Level of Input used in		Carrying Amount	Level of Input used in
	Carrying Amount	Level 1	Level 3	Carrying Amount	Level 1	Level 3	Carrying Amount	Level 1	Level 3
Financial Assets At Amortised Cost
Trade Receivables	10,45,29,385	-	-	12,55,42,744	-	-	9,41,01,762	-	-
Cash and Bank Balance	2,24,38,421	-	-	1,52,19,522	-	-	1,29,57,228	-	-
Loans	12,11,700	-	-	9,74,590	-	-	9,44,590	-	-
Other Financial Assets	62,44,105	-	-	1,38,73,355	-	-	91,88,581	-	-
At FVTOCI
Investments	23,26,473	16,46,469	6,15,004	21,19,411	14,39,407	61,15,004	16,76,279	11,26,167	4,85,112
Financial Liabilities At Amortised Cost
Borrowings	16,48,61,465	-	-	17,64,34,264	-	-	22,48,06,158	-	-
Trade Payables	10,91,17,910	-	-	10,27,61,922	-	-	9,51,83,594	-	-
Other Financial Liabilities	4,76,61,844	-	-	4,43,35,701	-	-	3,82,05,980	-	-

There are no transfers between levels 1and 2 during the year.

Level 1: Quoted Prices in active markets for identical assets;

Level 3: Inputs other than observable market data, are used for deriving fair value.

5.43 Revenue from Major Customers

Revenue from one customer of the company''s Rerailing equipment business is INR 10,28,82,661 (including excise duty and GST) which is more than 10% of the company''s total revenue.

5.46 Segment Information

Operating segments are reported in a manner consistent with the internal reporting provided to the Chief Operating Decision Maker ("CODM") of the Company. The CODM, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Managing Director of the Company. The Company operates only in one Business Segment i.e. manufacturing and sale of hydraulic press machine and related equipments'' which primarily includes Hydraulic Presses, Euipments and Portable re-railing equipmets and the activities incidental thereto within India, hence does not have any reportable Segments as per Ind AS 108 "Operating Segments". The performance of the Company is mainly driven by sales made locally and hence, no separate geographical segment is identified.

As Per our Report of Even Date attached				For and on behalf of the Board of Directors
For S JAYKISHAN
Chartered Accountants
Firm Regn. No.:309005E
Vivek Newatia	R B Patil	Amruta Tarale	M M Mohta	Anirudh Mohta
Partner	CFO	Company Secretary	Chairman	Managing Director
Membership No.:062636	PAN:AANPP9374M	ACS - 42288	DIN: 0068884	DIN:00065302
Place : Camp Belgaum
Date: 22-05-2018

Mar 31, 2014

1. (a) Rights/preferences attached to Equity Shares

The Company has Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors subject to 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 any of the remaining assets of the company, after distribution of all preferential amounts.

(b) Rights, Preferences and Restrictions attached to Preference Shares of Rs. 100/- each

The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to the said shares. In the event of liquidation of the Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital but shall not be entitled to any surplus arising thereto.

2. Note:

(i) Term loan from Bank of Maharashtra is secured by equitable mortgage of Land & Building and 1st charge on the Fixed Assets of the company on pari-passu basis with State Bank of India and personal guarantee of three directors of the company. Interest payable thereon is at base rate 4.75% repayable in 54 monthly installments of Rs. 1.86 lacs each after a moratorium period of 6 months. Interest shall be serviced as and when applied. As on 31-03-2014, 43 installments are due for repayment amounting to Rs. 79,53,500/- excluding interest (P.Y. Rs. 1,00,44,000/-).

(ii) Term loan from State Bank of India is secured by equitable motrgage of Land & Building and 1st charge on the Fixed Assets of the company pari-passu basis with Bank of Maharashtra and personal guarantee of three directors of the company. Interest payable thereon is at base rate 4.60% repayable in 40 monthly installments after a moratorium period of 8 month. Of the 40 installments, first 20 installments would be of Rs 2 lacs each and the balance 20 installments would be of Rs. 3 lacs each. As on 31-03-2014, 31 installments are due for repayment amounting to Rs. 82,00,000.00 excluding interest (P.Y. Rs. 1,00,00,000/-).

(iii) Motor Car Loans from banks are secured by hypothecation of motor car, repayable in equated monthly installments carrying interest on reducing balance method varying between 10% per annum to 12.5% per annum. As on 31-03-2014 734 installments (Previous Year 542 installments) are due for repayment amounting to Rs 62,55,421/- excluding interest (Previous Year Rs 60,37,599/-)

3. Note

(i) Cash credit availed from Bank of Maharashtra is secured by hypothecation of inventory and receivables upto 120 days as primary security and equitable mortgage of factory land and building and personal guarantee of three directors of the Company. Interest on cash credit is payable at floating rate being base rate of respective bank plus spread varying between 5% to 5.50% at monthly rests.

(ii) Cash credit availed from State bank of India is secured by hypothecation of inventory and receivables upto 120 days as primary security and equitable mortgage of factory land and building and personal guarantee of three directors of the Company. Interest on cash credit is payable at floating rate being base rate of respective bank plus spread varying between 4% to 4.50% at monthly rests.

(iii) Raw Material Assistance Scheme availed from NSIC is secured by bank guarantee amounting to Rs 10,000,000/ -. Interest is payable @ 11% per annum on amount outstanding. Additional interest at the rate of 2% percent per annum is payable if payment is not made within stipulated time limit.

(iv) As on 31-03-2014 , default in repayment of Cash Credit ("CC") limit maintained with Bank of Maharashtra ("BOM") amounts to Rs 66,53,031/-

(v) As on 31-03-2014 , default in repayment of Cash Credit ("CC") limit maintained with State Bank of India ("SBI") amounts to Rs 1,50,469/-.

4. a) Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuer''s Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery : Market value basis, present cost less depreciation

The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve.

b) Total depreciation for the year is Rs. 1,25,73,117 /- (Previous year Rs. 67,07,372/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs. 5,28,310/ - (Previous year Rs. 5,33,454/-) has been recouped from Revaluation Reserve and the balance of Rs. 1,20,44,807/- (Previous year Rs. 61,73,918/-) is charged to the Statement of Profit and Loss.

5. The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as exports are insignificant.

6. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has made an assessment of assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

7. Stores consumed in the current year and previous year is 100% indigenous.

8. The estimated amount of contracts remaining to be excuted on capital account not provided for amounts to Rs. Nil (P.Y. Rs. 8,34,000/-) (net of advance)

9. Warranty expenses on rectification work are accounted for on natural heads as and when incurred & charged to provision on year end. Warranty expenses include Rs. Nil/- (P.Y. Rs. 34,84,549/-) on account of free supplies of materials under warranty period.

10. Disclosures pursuant to Accounting Standards AS - 29 "Provisions, Contingent Liabilities and Contingent Assets"

(Figures in Rs.)

Particulars Balance as at Additions Amount paid/ Balance 01/04/2013 during the reversed/ as at year used during 31/03/2014 the year

Provision for Liquidated Damages - 2,15,69,891 2,15,69,891 -

Provision for Warranty Claims 9,01,148 - 1,85,231 7,15,917

11. Previous period figures have been recast/restated wherever necessary.

12. The company had issued 3,40,000 Equity Shares of Rs. 10/- each at a premium of Rs. 50/- per share on preferential basis to Promoters and an Independent Investor aggreagting to Rs. 204 lakhs during the year. The funds raised on preferential basis has been utilised for repayment of unsecured loans and redemption of preference shares.

Mar 31, 2013

A) The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

b) The Actual Return on Plan Assets is as follows (Rs.) 13,76,969 (10,72,645)

The estimates of future salary increases considered in actuarial valuation takes into account inflation, seniority, promotion and other relevant factors.

c) Retirement age 58 years or 70 years if extension is given

(1.1) Related party disclosures (where transactions have taken place).

i Key Management personnel:

Shri Madan Mohan Mohta

Shri Anirudh Mohta

ii Relatives of Key management personnel:

Smt. Urmila Devi Mohta

iii Enterprises where key management personnel have significant influence:

U. D. Finn vest Pvt Ltd

Mohta Capital Pvt Ltd

Bemco Precitech Pvt Ltd

U.D.Polyproducts Pvt Ltd

Related party relationship in terms of AS-18 - Related party Disclosures have been certified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18.

iv In respect of above parties, there is no provision for doubtful debts as at year end and no amount has been written off or written back during the year in respect or debts due rrom / to tnem.

v The following related party transactions were carried out during the year.

(1.2) a) Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuer''s Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery : Market value basis, present cost less depreciation

The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve.

b) Total depreciation for the year is Rs. 67,07,372/- (Previous year Rs. 93,76,051/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs. 5,33,454/- (Previous year Rs. 5,37,118/-) has been recouped from Revaluation Reserve and the balance of Rs. 61,73,918 /- (Previous year Rs. 88,38,333/-) is charged to the Statement of Profit and Loss .

(1.3) The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as exports are insignificant.

(1.4) In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has made an assessment of assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

(1.5) a)Disclosure of the amount due to the Micro, Small & Medium Enterprises(on the basis of the information and records available with the management)

(1.6) The estimated amount of contracts remaining to be excuted on capital account not provided for amounts to Rs. 8,34,000/- (P.Y. Rs. NIL) (net o advance)

(1.7) Warranty expenses on rectification work are accounted for on natural heads as and when incurred & charged to provision on year end.Warranty expenses include Rs. 34,84,549/- (P.Y. Rs. 71,285/-) on account of free supplies of materials under warranty period.

(1.8) Previous period figures have been recast/restated wherever necessary.

Mar 31, 2012

(i) Terms/rights attached to Equity Shares

The Company has Equity Shares having par value of Rs. 10/- per share. Each holder of Equity Shares is entitled to one vote per share. Holders of Equity Shares are entitled to dividend, in proportion to the paid up amount, proposed by Board of Directors subject to 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 any of the remaining assets of the company, after distribution of all preferential amounts.

(II) Terms/rights attached to Preference Shares

(1) Rights/preferences attached to Preference Shares

The dividend on preference shares proposed by the Board of Directors is subject to approval of shareholders in the ensuing Annual General Meeting. Each holder of Preference Share is entitled to one vote per share only on resolutions placed before the Company which directly affect the rights attached to the said shares. In the event of liquidation of the Company before redemption of preference shares, the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital but shall not be entitled to any surplus arising thereto.

Note:

(i) Term loan(s) are secured by charge on all Fixed assets except fixed assets otherwise exclusively charged. Amount of term loan due as on 31.03.2011 has been fully paid in the financial year 2011-2012. Interest @ BPLR of respective bank plus spread of 2% is chargeable on reducing balance method on the said term loan(s). As on 3.1-03-2011 seven installments are due for repayment amounting to Rs 752,626/-.

(ii) Finance Lease obligations are with respect to various hire purchase agreements entered into by the company for acquisition of motor cars from time to time. All such agreements are secured by hypothecation of respective motor car. Obligation under such agreement(s) is repayable in equated monthly installments. Interest thereon is payable as per respective agreement on reducing balance method varying between 10% per annum to 12.5% per annum. As on 31-03-2012 488 installments (Previous Year 657 installments) are due for repayment amounting to Rs 3,595,851/- including interest (Previous Year Rs 4,780,341/-)

Note

(i) Cash credit availed from banks is secured by hypothecation of inventory and receivables up to 120 days as primary security and equitable mortgage of factory land and building and personal guarantee of three directors of the Company as collateral security. Interest on cash credit is payable at floating rate being base rate of respective bank plus spread varying between 4.75% to 6.75%.

(ii) Raw Material Assistance Scheme availed from NSIC is secured by bank guarantee amounting to Rs 10,000,000/-. Interest is payable @ 11% per annum on amount outstanding. Additional interest at the rate of 2% percent per annum is payable if payment is not made within stipulated time limit.

(iii) Packing credit facility availed is secured by hypothecation of inventory for packing credit. Interest on packing credit is payable at floating rate being base rate of respective bank plus spread of 1.25%

(iv) As on 31-03-2012 the Cash Credit ("CC") limit maintained with Bank of Maharashtra ("BOM") and State Bank of India ("SBI") has been overdrawn by Rs 3,718,499/- and Rs 5,281,883/- respectively. CC limit with BOM and SBI has been overdrawn since 26-03-2012 and 25-02-2012 respectively and was cleared on 05- 05-2012 and 12-04-2012.

a) Retirement age 58 years or 70 years if extension is given (2.29)

a) Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuer's Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery : Market value basis, present cost less depreciation The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve

b) Total depreciation for the year is Rs. 9,376,051/- (Previous year Rs. 1,05,65,188/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs.537,718/- (Previous year Rs. 5,37,118/-) has been recouped from Revaluation Reserve and the balance of Rs.8,838,333 /- (Previous year Rs. 1,00,28,070/-) is charged to the Profit and Loss Statement.

(1.1) The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as exports are insignificant.

(1.2) In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has assessed assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

(1.3) The financial statements have been prepared as per the format prescribed by Revised Schedule VI to the Companies Act, 1956 ('the schedule') issued by Ministry of Corporate Affairs vide Notification No. S.O. 447(E), dated 28-2-2011 [As Amended by Notification No.F.IMo. 2/6/2008-CL-V, dated 30-3-2011], Previous period figures have been recast/restated to confirm to the classification required by the Revised Schedule VI.

Mar 31, 2011

1. a) The Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuers Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery Etc. : Market value basis, present cost less depreciation

The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve.

b) Total depreciation for the year is Rs. 1,05,65,188/- (Previous year Rs. 1,00,33,272/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs. 5,37,118/- (Previous year Rs. 5,29,972/-) has been recouped from Revaluation Reserve and the balance of Rs. 1,00,28,070/- (Previous year Rs. 95,03,299/-) is shown in the Profit and Loss account.

2. The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as4. exports are insignificant.

3. EMPLOYEE BENEFITS

c. The overall expected rate of return on assets is based on the expectation of the average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

d. The Actual Return on Plan Assets is as follows (Rs.)

Actual return on plan assets Rs. 9,34,273/-

f. Retirement age 58 years or 70 years if Extension is given.

g. The liability for gratuity has increased by Rs. 11.35 Lacs during the year due to increase in the statutory maximum limit of gratuity payable to an employee from Rs.3.50 lacs to Rs. 10.00 lacs vide Payment of Gratuity (Amendment) Act, 2010 w.e.f 24.05.2010.

4. Related party disclosures (where transactions have taken place).

i. Key Management personnel:

Shri Madan Mohan Mohta

Shri Anirudh Mohta

ii. Relatives of Key management personnel:

Smt. Urmila Devi Mohta

iii. Enterprises where key management personnel have significant influence:

U. D. Finnvest Pvt Ltd

Sri Ramachandra Enterprises Pvt Ltd

Mohta Capital Pvt Ltd

Bemco Precitech Pvt Ltd

U.D.Rolyproducts Pvt Ltd

Related party relationship in terms of AS-18 - Related party Disclosures have been certified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18.

iv. In respect of above parties, there is no provision for doubtful debts as on 31st March 2011 (as on 31st March 2010 NIL/-) and no amount has been written off or written back during the year (previous year Rs. NIL/-) in respect of debts due from/to there

5. Deferred Tax Assets / Liability is recognized as per Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

b. Deferred tax assets and liabilities are being offset as they relate to taxes on income levied by the same governing taxation laws.

6. Excise duty deducted from sales is the total excise duty collected during the year on sales. Excise duty on opening and closing stock of inventory has been deducted from respective stock values

7. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has assessed assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

8. (a) Company has written to the suppliers asking them to confirm their status under Micro, Small & Medium Enterprises Development Act 2006, however no intimation has been received from any of the suppliers.

9. Amount due within one year in respect of term loan and vehicle loan (including overdue amounts as at 31st March 2011) is Rs. 29.20 lacs (as on 31st March 2010 Rs. 66.67 Lacs).

10.

a. 11% 14,732 Cumulative Redeemable Preference Shares of Rs. 100/- each aggregating to Rs. 14,73,200/- are redeemable at the premium of Rs. 60/- each on 31st March 2012.

b. 11% 18,000 Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs. 18,00,000/- are redeemable at par on 31st March 2014.

c. 11% 20,000 Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs. 20,00,000/- are redeemable at par on 31st March 2020.

11. Balances in Sundry Debtors, Advance from Customers, Sundry Creditors, Loans and Advances are subject to confirmation from respective parties. In the opinion of the management, this shall not have any material impact on the financial statements.

12. In the opinion of the Board, Current Assets, Loans & Advances (other than those considered doubtful) have a value on realisation equal to the amounts at which they are rated in the Balance Sheet in the ordinary course of business.

13. Contingent Liabilities not provided for:

a) Unexpired Bank Guarantees Rs. 864.17 Lacs (As on 31.03.2010 Rs. 500.15 Lacs)

14. QUANTITATIVE & OTHER INFORMATION PURSUANT TO REQUIREMENTS OF PART II OF SCHEDULE VI TO THE COMPANIES ACT, 1956.

a. CAPACITY AND PRODUTION:

NOTE:

i. It is not practicable to indicate precisely the installed capacity of each item manufactured by the Company mentioned above, as the Companys plant has the capacity of producing various items, which is over-lapping for each product. The installed capacities, as indicated above are estimates as certified by the Management. Due to changes in prices, inflation, product-mix etc., the installed capacity has been enhanced suitably, wherever necessary.

ii. Figures in respect of actual production of Axial Piston Pumps include 57 nos. (42 nos.) used for captive consumption.

iii. No license is required for manufacture of any of the products of the Company.

iv. Installed capacity has been certified by the management & relied upon by the Auditors. being a technical matter.

d. Stores consumed in the current year and previous year is 100% indigenous.

15. Figures for the previous year have been regrouped, re-arranged wherever necessary.

Mar 31, 2010

1. a) The Land, Building, Plant and Machinery, Office equipment and major portion of other fixed assets acquired before 4th October 1999 were revalued on the basis of the valuation of these assets carried out by a firm of registered valuer. According to the Valuers Report these fixed assets were valued on the following basis:

Land : Market value basis

Building : Present day cost less depreciation

Machinery Etc. : Market value basis, present cost less depreciation

The surplus arising thereon as compared to net book value amounting to Rs.468.73 lacs was credited to Revaluation Reserve.

b) Total depreciation for the year is Rs. 1,00,33,272/- (Previous year Rs. 95,39,768/-), out of this the extent of depreciation charged on the write up on account of revaluation amounting to Rs. 5,29,972/- (Previous year Rs. 5,15,885/-) has been recouped from Revaluation Reserve and the balance of Rs. 95,03,299/- (Previous year Rs. 90,23,883/-) is shown in the Profit and Loss account.

2. The Company is engaged in the manufacturing and sale of hydraulic press machine and related equipments, which as per the Accounting Standard AS-17 is considered the only reportable business segment. The geographical segment is not relevant as exports are Nil.

3. EMPLOYEE BENEFITS

a. Post Retirement Benefits : Defined Contribution Plans

4. Related party disclosures (where transactions have taken place).

i. Key Management personnel:

Shri Madan Mohan Mohta

Shri Anirudh Mohta

ii. Relatives of Key management personnel:

Smt. Urmila Devi Mohta

iii. Enterprises where key management personnel have significant influence: U. D. Finn vest Pvt Ltd Sri Ramachandra Enterprises Pvt Ltd Mohta Capital Pvt Ltd Bemco Precitech Pvt Ltd U.D.Polyproducts Pvt Ltd

Related party relationship in terms of AS-18 - Related party Disclosures have been certified by the management and relied upon by the Auditors. There are no related parties where control exists in terms of AS-18.

iv. In respect of above parties, there is no provision for doubtful debts as on 31st March 2010 and no amount has been written off or written back during the year in respect of debts due from to them.

5. Deferred Tax Assets / Liability is recognized as per Accounting Standard - 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

a. The break up of deferred tax assets and liabilities and reconciliation of current year charge/credit is as under

6. Excise duty deducted from sales is the total excise duty collected during the year on sales. Excise duty on opening and closing stock of inventory has been deducted from respective stock values

7. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS 28), the management has assessed assets in use and considering the business prospects related thereto, no provision is considered necessary on account of impairment of Assets.

8. Amount due within one year in respect of term loan and vehicle loan (including overdue amounts as at 31st March 2010) is Rs. 66.67 lacs (as on 31st March 2009 Rs. 29.88 Lacs).

9. a. 11% 14,732 Cumulative Redeemable Preference Shares of Rs. 100/- each aggregating to Rs. 14,73,200/- are redeemable at the premium of Rs. 60/- each on 31st March 2012.

b. 11% 18,000 Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs. 18,00,000/- are redeemable at par on 31st March 2014.

c. 11% 20,000 Cumulative Redeemable Preference Shares of Rs.100/- each aggregating to Rs. 20,00,000/- are redeemable at par on 31st March 2020.

10. Balances in Sundry Debtors, Advance from Customers, Sundry Creditors, Loans and Advances are subject to confirmation from respective parties. In the opinion of the management, this shall not have any material impact on the financial statements.

11. In the opinion of the Board, Current Assets, Loans & Advances (other than those considered doubtful) have a value on realisation equal to the amounts at which they are stated in the Balance Sheet in the ordinary course of business.

12. Contingent Liabilities not provided for:

a) Claims against the Company not acknowledged as debts (ESIC) Rs. Nil (As on 31.03.2009 Rs. 1.55 Lacs).

b) Unexpired Bank Guarantees Rs. 500.15 Lacs (As on 31.03.2009 Rs. 610.29Lacs)

13. Figures for the previous year have been regrouped, re-arranged wherever necessary.

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