Notes to Accounts of Excel Glasses Ltd.

Mar 31, 2015

A) Rights, preference and restrictions attached to shares

The Company has one class of equity shares having a face value of Rs. 1 per share. Each holder of the equity shares is entoleted to one : vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their holdings.

b) Shares held by holding/ultimate holding company and/or their subsidiaries/associates

None of the shares of the Company are held by the Subsidiaries, Associates or Joint Ventures of the Company.

c) Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date-Nil

(a) Term Loans are secured by way of (i) first equitable mortgage of all immovable properties and fixed assets in or attached thereto, both present and future; (ii) charge by way of hypothecation of the movable assets, present and future; (iii) Personal Guarantee of Mr. Prashant Somani.

(b) Term loan of Rs.725 Lacs from KSIDC carries interest rate 13% p.a. and is repayable in 22 quarterly Installments of fls.32.95 Lacs commeningfromMarch,2013.

(c) Term loan of Rs.725 Lacs from KFC carries interest rate base rate 14% p.a. and is repayable in 48 Monthly Installments of Rs.15.10 Lacs commencing from March,201 a.

The Company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 ("the Act"), hence disclosures required o be made under the Act has not been given.

1. The Company has accepted deposits from companies which, in the opinion of the management, are not treated as deposits accepted in violation of amended Section 3(1)(iii)(d) of the Companies Act, 1956 (with effect from 13/12/2000) as Inter Corporate Deposits are not included in the definition of 'Deposits' pursuant to Rule 2(b) of the Companies (Acceptance of Deposits) Rules, 1975.

2. The Company became a Sick Industrial Company within the meaning of the Sick Industrial Companies (Special Provisions) Act, 1985 as the accumulated losses of the Company have exceeded its net worth as at the Balance Sheet Date.

3. (a) The Company has closed its operations w.e.f. 27th

December 2012 due to labour problems and subsequently it lead to the lock out of the company. In view of the closure, certain accounting details / information were compiled on the basis of the records available on the best efforts basis. The reasonable care has been taken to justify the accuracy of the said information details

(b) The Company has not provided wages, salary & various employee benefits after the Lock-out of the Company. The management expects various waivers / reductions / remissions / concessions in rehabilitation scheme for the Company's revival. However, the Company has provided for the gratuity liability based on the last drawn wages / salary at the time of closure

4. The glass plant of the Company installed in October, 1995 was eligible for concessional power tariff under the Industrial Promotion Incentive Scheme declared by the Government of Kerala (read with Notification dated 6th February, 1992 and subsequent amendment thereof issued by the Government of Kerala) up to 3rd May, 2001 for entire consumption of power. However, the Kerala State Electricity Board ('KSEB') granted exemption only on partial consumption of power. The subject matter is sub-juice before the Hon. High Court of Kerala. As the Company has paid all the dues (including interest) demanded by the KSEB based on the assumption that the Company was eligible for full concessional tariff, the Company does not expect any further liability in this behalf.

5. Deferred Sales Tax Liability includes interests and penalties payable on the deferred sales tax post deferment period. Company's request for the waiver of the same is pending for consideration with the Government of Kerala as the Promoters of the Company have taken necessary steps for revival of the Company.

6. The Company's application for adjustment of VAT refundable against the principal deferred sales tax liability and interest free installment facility for remaining amount is pending with ¦the Government of Kerala. Accordingly, the Company has neither provided interest on VAT refundable from sales tax authorities during the period.

8. Income tax return of the Company has been filed up to assessment year 2014-15. In view of the carried forward losses and provisions of section 115 JB of the Income Tax Act, 1961 the Company does not have taxable income hence the Provision for current income tax is not required to be made. The Company has reversed the provision made for deferred tax asset, in view of the uncertainty of the recoverability of the same within a reasonable period of time.

9. Some of the accounts of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the profit for the period, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current year's financial statements. .

10. Prior period income / expenses have been credited/ debited to the respective head of accounts in the statement of Profit & Loss.

11. Related Party Transactions:

In accordance with the Accounting Standard 18 - "Related Party

Disclosures" issued by the Institute of Chartered Accountants of India, there is no related party transactions during the period.

12. The Company is having only one reportable segment of Glass Bottle manufacturing in terms of the Accounting Standard 17 regarding Segmental Reporting.

---

Mar 31, 2014

1. a) Rights, preferenace and restrictions attached to shares.

The Compnay has one class of equity shares having a face value of Rs. 1 per share. Each holder of the equity shares is entilited to one vote per share. In the event of liquidation, the equity shareholders are eleible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their holdings.

b) Shares held by holding/ ultimate holding company and / or their subsidiaries/ associates None of the shares of the Company are held by the Subsidiaries, Associates or Joint Ventures of the Company.

c) Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date-Nil

2. (a) Term Loans are secured by way of (i) first equitable mortgage of all immovable properties and fixed assets in or attached thereto, both present and future; (ii) charge by way of hypothecation of the movable assets, present and future; (iii) Personal Guarantee of Mr. Prashant Somani.

(b) Term loan of Rs.725 Lacs from KSIDC carries interest rate 13% p.a. and is repayable in 22 quarterly installments of Rs.32.95 Lacs commening from March, 2013.

(c) Term loan of Rs.725 Lacs from KFC carries interest rate base rate 14% p.a. and is repayable in 48 Monthly installments of Rs. 15.10 Lacs commencing from March, 2013.

(d) All the Inter Corporate Deposits - Others were unsecured.

(e) Term Loan availed from Public Financial Instituitions are treated as Non Performing Assets by the said Instituitions.

(d) Defered Loan from Vat Authorities have not been repaid / adjusted for the last reporting period due to labour problem.

3. Contingent Liabilities Is not accounted in respect of:

Sr. Category Lic.No. Date Order Penalty No. of Lic. issued by imposed customs for by Rs. customs (Excluding interest @ 18%

1 Advance 1010027117 10.08.2007 88,91,777 NIL License

2 Advance 1010024558 09.10.2006 97,85,229 NIL License

3 EPCG 1030000825 31.03.2006 2,11,46,240 NIL License Demand notice

Sr. Category Penalty Present No. of Lic. imposed position by DGFT. 1 Advance 1,68,43,812 Appeal is License pending for hearing with Customs and Addl. DGFT, Chennai 2 Advance 2,21,95,264 Appeal is License pending for hearing with Addl. DGFT, Chennai.

Appeal to be filed against customs order of 29.09.2014

3 EPCG NIL Applied for License EO Extn.

4. The Company has accepted deposits from companies which, in the opinion of the management, are not treated as deposits accepted in violation of amended Section 3(1 )(iii)(d) of the Companies Act, 1956 (with effect from 13/12/2000) as Inter Corporate Deposits are not included In the definition of ''Deposits'' pursuant to Rule 2(b) of the Companies (Acceptance of Deposits) Rules,1975.

5. The Company became a Sick Industrial Company within the meaning of the Sick Industrial Companies (Special Provisions) Act, 1985 as the accumulated losses of the Company have exceeded its networth as at the Balance Sheet Date.

6. (a) The Company has closed its operations w.e.f. 27th December 2012 due to labour problems and subsequently it lead to the lock out of the company. In view of the closure, certain accounting details / information were compiled on the basis of the records available on the best efforts basis. The reasonable care has been taken to justify the accuracy of the said information details

(b) The Company has not provided wages, salary & various employee benefits after the Lock-out of the Company. The management expects various waivers / reductions / remissions / concessions in rehabilitation scheme for the Company''s revival. However, the Company has provided for the gratuity liability based on the last drawn wages / salary at the time of closure

7. The glass plant of the Company installed in October, 1995 was eligible for concessional power tariff under the Industrial Promotion Incentive Scheme declared by the Government of Kerala (read with Notification dated 6th February, 1992 and subsequent amendment thereof issued by the Government of Kerala) upto 3rd May, 2001 for entire consumption of power. However, the Kerala State Electricity Board (''KSEB'') granted exemption only on partial consumption of power. The subject matter is sub-judice before the Hon. High Court of Kerala. As the Company has paid all the dues (including interest) demanded by the KSEB based on the assumption that the Company was eligible for full concessional tariff, the Company does not expect any further liability in this behalf.

8. Deferred Sales Tax Liability includes interests and penalties payable on the deferred sales tax post deferment period. Company''s request for the waiver of the same is pending for consideration with the Government of Kerala as the Promoters of the Company have taken necessary steps for revival of the Company.

9. The Company''s application for adjustment of VAT refundable against the principal deferred sales tax liability and interest free installment facility for remaining amount is pending with the Government of Kerala. Accordingly, the Company has neither provided interest on VAT refundable from sales tax authorities during the period.

10. Income tax return of the Company has been filed up to assessment year 2014-15. In view of the carried forward losses and provisions of section 115 JB of the Income Tax Act, 1961 the Company does not have taxable income hence the Provision for current income tax is not required to be made. The Company has reversed the provision made for deferred tax asset, in view of the uncertainty of the recoverability of the same within a reasonable period of time.

11. Some of the accounts of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the profit for the period, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current year''s financial statements.

12. Prior period income / expenses have been credited/ debited to the respective head of accounts in the statement of Profit & Loss.

13. Related Party Transactions:

In accordance with the Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, there is no related party transactions during the period.

14. The Company is having only one reportable segment of Glass Bottle manufacturing in terms of the Accounting Standard 17 regarding Segmental Reporting.

---

Sep 30, 2012

A) Rights, preferences and restrictions attached to shares

The Company has one class of equity shares having a face value of Rs. 1 per share. Each holder of the equity shares is entitled to one vote per share. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their holdings.

b) Shares held by holding / ultimate holding company and / or their subsidiaries / associates None of the shares of the Company are held by the Subsidiaries, Associates or Joint Ventures of the Compny.

c) Aggregate number of shares issued for consideration other than cash during the period of five years immediately preceding the reporting date - Nil

(a) Term Loans are secured by way of (i) first equitable mortgage of all immovable properties and fixed assets in or attached thereto, both present and future; (ii) charge by way of hypothecation of the movable assets, present and future; (iii) Personal Guarantee of Mr. Prashant Somani, Managing Director.

(b) Term loan of Rs.725 Lacs from KSIDC carries interest rate 13% p.a. and is repayable in 22 quarterly Installments of Rs.32.95 Lacs commening from March,2013

(c) Term loan of Rs.725 Lacs from KFC carries interest rate base rate 14% p.a. and is repayable in 48 Monthly Installments of Rs.15.10 Lacs commencing from March,2013.

1. Contingent Liabilities in respect of:

(Rupees in Lacs)

S. Particulars 30th 31st No September, December, 2012 2011

I. For non-fulfillment of export obligations as per the terms of Advance Auth. Licenses * :

- Customs Duty 51.63 51.63

- Interest / Penalties Not Quantifiable Not Quantifiable

ii. Interest / Penalties etc. on non payment / delayed payment of statutory liabilities like Provident fund, ESIC, Gratuity etc. Not Quantifiable Not Quantifiable

iii. Estimated amounts of contracts remaining to be executed on capital account not provided for (net of advances) Nil Nil

* The Company has submitted its application to the empowered committee for extension of the export obligation period in view of the closure of the plant for last 3 years and same is under consideration.

2. The Company has accepted deposits from companies which, in the opinion of the management, are not treated as deposits accepted in violation of amended Section 3(1 )(iii)(d) of the Companies Act, 1956 (with effect from 13/12/2000) as Inter Corporate Deposits are not included in the definition of ‘Deposits'' pursuant to Rule 2(b) of the Companies (Acceptance of Deposits) Rules, 1975.

3. The Company became a Sick Industrial Company within the meaning of the Sick Industrial Companies (Special Provisions) Act, 1985 as the accumulated losses of the Company have exceeded its networth as at the Balance Sheet Date.

4. Capital Restructuring:

The scheme of arrangement between shareholders and the Company''s under section 391 to 394 read with section 78,80, 100 to 104, 106 of the Companies Act, 1956 was been approved by the Hon''ble High Court of Kerala in Company petition No. 45/2011 vide their order dated 07.02.2012, effect of the same have been accounted on 05.03.2012 in the accounts during the period.

5. The glass plant of the Company installed in October,1995 was eligible for concessional power tariff under the Industrial Promotion Incentive Scheme declared by the Government of Kerala (read with Notification dated 6th February, 1992 and subsequent amendment thereof issued by the Government of Kerala) upto 3rd May, 2001 for entire consumption of power. However, the Kerala State Electricity Board (‘KSEB'') granted exemption only on partial consumption of power. The subject matter is sub-judice before the Hon. High Court of Kerala. As the Company has paid all the dues (including interest) demanded by the KSEB based on the assumption that the Company was eligible for full concessional tariff, the Company does not expect any further liability in this behalf.

6. The Company''s application for adjustment of VAT refundable against the principal deferred sales tax liability and interest free installment facility for remaining amount is pending with the Government of Kerala. Accordingly, the Company has neither provided interest on VAT refundable from sales tax authorities during the period.

7. Income tax assessment of the Company has been completed up to assessment year 2011 -12. In view of the carried forward losses and provisions of section 115 JB of the Income Tax Act, 1961 the Company does not have taxable income hence the Provision for current income tax is not required to be made. The Company has reversed the provision made for deferred tax asset, in view of the uncertainty of the recoverability of the same within a reasonable period of time.

8. Some of the accounts of Sundry Debtors, Creditors and Loans & Advances are subject to confirmations, reconciliations, and . adjustments, if any, having consequential impact on the profit for the period, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current year''s financial statements.

9. In the opinion of the management, the current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and other known liabilities is adequate and is not in excess of what is required.

10. Related Party Transactions:

In accordance with the Accounting Standard 18 - "Related Party Disclosures" issued by the Institute of Chartered Accountants of India, the transactions with related parties are given below:

a. Parties where control exists:

Subsidiaries: The Company does not have any subsidiaries.

b. Other Related Parties with whom transactions have taken place during the period:

Himgiri Finlease Pvt Ltd.

One Time Leafin Pvt Ltd.

c. Key Management Personnel:

Managing Director : Mr. Prashant Somani

11. The Company is having only one reportable segment of Glass Bottle manufacturing in terms of the Accounting Standard 17 regarding Segmental Reporting.

12.The financial statement for the previous accounting period ended December 31,2011 had been prepared as per the then applicable, pre-revised Schedule VI to the Companies Act, 1956. Consequent to the notification of Revised Schedule VI under the Companies Act, 1956, the financial statements for the period ended September 30, 2012 are prepared as per Revised Schedule VI. Accordingly, previous year figures have also been reclassified to conform to this year''s classification. The adoption of Revised Schedule VI for previous years figures does not impact recognition and measurement principles followed for preparation of financial statements.

---

Sep 30, 2010

1. Contingent Liabilities in respect of:

(Rupees in Lacs) Current Year Previous Year

i. Entry Tax on Import of Furnace Oil claimed by Sales Tax Authorities against Which appeal filed before the Hon. High Court of Kerala was decided in favour of the Company. However State Govt of Kerala challenged the same before the Hon. Supreme Court. 27.86 27.86

ii. For Non-fulfillment of export obligation as per the terms of Advance Authorisation Licenses :

- Customs Duty 51.63 23.12

- Penalties Not Not

Quantifiable Quantifiable

iii. Interest & Penalties for non redemption of Preference Shares Not Not Quantifiable Quantifiable



2. Estimated amounts of contracts remaining to be executed on capital account not provided for (net of advances) Rs.450 Lacs Lacs approx. (Previous Year Rs. 150 Lacs).

3. The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the year end together with interest paid / payable as required under the said Act have not been given.

4. The Company has accepted deposits from companies which, in the opinion of the management, are not treated as deposits accepted in violation of amended Section 3(1)(iii)(d) of the Companies Act, 1956 (with effect from 13/12/2000) as Inter Corporate Deposits are not included in the definition of Deposits pursuant to Rule 2(b) of the Companies (Acceptance of Deposits) Rules, 1975.

5. The Company has become a potential Sick Industrial Company within the meaning of Section 23 (1) of the Sick Industrial Companies (Special Provisions) Act, 1985 as the accumulated losses of the Company have resulted into erosion of more than fifty percent of its networth during the immediately preceding four financial years. However, the accounts have been prepared On a "going concern basis" as the management expects substantial relief and concessions from the secured lenders / Stale Govern- ment, based on the steps being taken by the Company for early revival.

6. Companys operations are lying closed since July,2008 due to sudden collapse of the furnace and regenerator. In view of the closure, certain accounting details / information were compiled on the basis of the records available on the best efforts basis. The reasonable care has been taken to justify the accuracy of the said information details.

7. The Company has consistently following the practice of accounting Excise Duty in respect of finished goods held at the factory premises on the basis of clearances, which is not in accordance with the guidance note issued by the Institute of Chartered Accountants of India. However, non-provision of liability on this account estimated at Rs. 8.02 Lacs (Previous year Rs. 8.02 Lacs) has no effect on the profit (Loss) of the period.

8. (i) Arrears of Fixed Cumulative Dividend of Rs. Rs.792.58 lacs (Previous Year Rs. 693.77 lacs) accrued on Cumulative Redeem- able Preference Shares not provided due to inadequacy of profits.

(ii) The Company has not provided for interest, penalties accrued on default of the payment of dividend accrued or redemption amount due on preference shareholders as the Company is in discussion with the Preference Shareholders for waivers and concessions as per the revival package submitted to them.

(iii) The Cumulative Redeemable Preference Shares of Rs.952.72 Lacs (Previous Year Rs.236.61 Lacs) became due for redemption could not be redeemed due to the non-availability of funds.

(iv) In absence of divisible profits a sum of Rs.952.72 Lacs (Previous Year Rs. 452.71 Lacs) has not been set apart and transferred to Capital Redemption Reserve Account towards redemption of Cumulative Redeemable Preference Shares issued to Financial Institutions.

9. Secured Lenders

The Company has entered into negotiated settlement with few of the secured lenders and arranged /paid the amount as per terms of respective sanction letters. Accordingly a sum of Rs.1822.84 Lacs (consisting of Rs. 526.53 lacs on account of waiver of interest and a sum of Rs. 1296.31 Lacs on account of remission of principal liabilities) has been written back to Profit and Loss account as exceptional item.

(a) Terms Loans:

Term Loans are secured by way of (i) first equitable mortgage of all immovable properties and fixed assets in or attached thereto, both present and future; (ii) charge by way of hypothecation of the movable assets, present and future (subject to prior charge in favour of the bankers for working capital); (iii) Personal Guarantee of Mr. Prashant Somani, managing Director and (iv) pledge of a part of the Shareholdings of the Promoters and their relatives / associates. The term Lender has the right to convert at their option the whole of the overdue outstanding amount of the Loans into fully paid up Equity Shares at par in case the Company commits default in payment or repayment of three consecutive installments of principal amounts of the loan or interest thereon or any combination thereof.

(b) Working Capital Loans:

The Company has entered into negotiated settlement with all the working capital lenders and arranged /paid the amount as per terms of respective sanction letters. An amount of Rs.130 Lacs remained unpaid as on Balance Sheet date is shown as secured debts - working capital dues. This amount was continue is secured by way of hypothecation of Raw Materials, Stores & Spares, Packing Materials, Finished Goods, Stock in Process and Book Debts, Joint Equivatable of all immovable proper- ties present and future (subject to prior charge in favour of Term Lenders) and Personal Guarantee of Mr. Prashant Somani, managing Director / Mr. Ravindra Somani.

10. a) During the year, three of the term lenders of the Company namely ICICI Bank Ltd, IFCI Ltd and IL & FS Financial Services Ltd have assigned their entire outstanding term loans alongwith interest / penal interest accrued thereon to M/s. Parijat Shipping and Finale Ltd, a Non Banking Finacial Company on as it is where it is basis. Accordingly, entire Secured Term Loans of Rs.1,578.71 Lacs as shown in the Balance Sheet date (P/Y Rs. Nil) represent amount due to M/s. Parijat Shipping and Finale Ltd.

b) The Company has not provided for interest on these term loans subsequent to the assignments as the Company /its promoter is in discussion with the new term lender for waivers and concessions in accordance with the revival package submitted to them.

11. The glass plant of the Company installed in October,1995 was eligible for concessional power tariff under the Industrial Promotion Incentive Scheme declared by the Government of Kerala (read with Notification dated 6th February,1992 and subsequent amend- ment thereof issued by the Government of Kerala) upto 3rd May, 2001 for entire consumption of power. However, the Kerala State Electricity Board (KSEB) granted exemption only on partial consumption of power. The subject matter is sub-judice before the Hon. High Court of Kerala. As the Company has paid all the dues (including interest) demanded by the KSEB based on the assumption that the Company was eligible for full concessional tariff, the Company does not expect any further liability in this behalf.

12. Deferred Sales Tax Liability includes interests and penalties payable on the deferred sales tax post deferment period. Companys request for the waiver of the same is pending for consideration with the Government of Kerala as the Promoters of the Company have taken necessary steps for revival of the Company.

13. Power & Fuel Expenses includes Rs.57.55 lacs (Previous Period Rs.88.49 Lacs) being the amount paid towards invoices raised by the KSEB Limited towards the minimum demand charges during the Closure Period. In terms of the G.O.(Rt) No.209/2008/PD Dated 02.08.2008 and subsequent modifications thereof, the Company is eligible for the waiver/refund of the minimum demand charges, if it re-commences operations.

14. Income tax assessment of the Company has been completed up to assessment year 2006-07. In view of the carried forward losses and provisions of section 115 JB of the Income Tax Act, 1961 the Company does not have taxable income hence the Provision for current income tax is not required to be made.

The Company has not provided deferred tax assets accrued during the year over and above the carried forward amount in view of the closure of the plant presently and uncertainty over the recoverability such an extra deferred tax asset.

15. No provision has been made in respect of obsolete and non moving stores, spares, tools & moulds, identification of which will be carried out after restarting of the operations and the management is hopeful to realize the benefits equivalent to the value at which these items have been stated upon restarting of the plant.

16. Some of the accounts of Sundry Debtors, Creditors, Banks / Lenders and Loans & Advances are subject to confirmations, reconciliations, and adjustments, if any, having consequential impact on the profit for the year, assets and liabilities, the amounts whereof are presently not ascertainable. However, the management does not expect any material difference affecting the current years financial statements.

17. In the opinion of the management, the current assets, loans and advances have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet. The provision for depreciation and other known liabilities is adequate and is not in excess of what is required.

18. The Company is having only one reportable segment of Glass Bottle manufacturing in terms of the Accounting Standard 17 regarding Segmental Reporting.

19. Previous years figures have been regrouped and rearranged wherever necessary to conform the current periods presenta- tion.