Notes to Accounts of Hardcastle & Waud Manufacturing Company Ltd.

Mar 31, 2024

Terms/Rights attached to equity shares:

The Company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. Final dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing general meeting. In the event of liquidation of the Company, holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportionate to the number of equity shares held by the shareholders.

Nature and Purpose of Reserves

Securities Premium Reserve : The amount received from shareholder against the issue of shares in excess of face value of the equity shares is recognised in Securities Premium Reserve.

General Reserve : General reserve is created from time to time by way of appropriation of retained earnings.

Retained Earnings : Retained earnings are profits that the Company has earned till date, less any appropriations.

Equity Instruments through other comprehensive income : This represents the cumulative gains and losses arising on the revaluation of equity instruments measured at fair value through other comprehensive income, under an Irrevocable option, net of amounts reclassified to retained earnings when such assets are disposed off.

26 Income Tax Expenses

This Note provides an analysis of the Company''s income tax expense and how the tax expenses is affected by non-assessable and non-deductible items.

	As at	As at
CONTINGENT LIABILITIES AND COMMITMENTS (Not Provided for)	31-03-2024	31-03-20 23
	(Â¥ in Lakhs)	(E In Lakhs)
1) CONTINGENT LIABILITIES
Claims not acknowledged as debts* (Demands for Sales Tax and Income Tax under contest)	-	-
2} COMMITMENTS
Estimated amount of contracts remaining to be executed on Capital Account for expanssion of Property Plant & Equipments	71.74	2.93
Estimated amount of contracts remaining to be executed on Capital Account for investments	32.50	107.00

EMPLOYEE BENEFITS (Information as required under Ind AS - 19)

DEFINED BENEFIT :

GRATUITY PLAN

The Company provides for gratuity for employees in India as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity payable on retirement/ termination is the employees last drawn basic salary per month computed proportionately for 15 days salary multiplied by number of years of service.

The gratuity plan is a funded plan and the company makes contributions to LIC of India. The company does not fully fund the liability and maintains a target level of funding to be maintained over a period of time based on estimations of expected gratuity payments.

DEFINED CONTRIBUTION PLANS

The company also has defined contribution plans. Contributions are made to provident fund in India for employees at the rate of 12% of basic salary as per regulations. The contributions are made to registered provident fund administered by the government. The obligation of the company is limited to the amount contributed and it has no further contractual nor any contructive obligation. The expense recognised during the period towards defined contribution plan is Rs 1.87 lacs (March 31, 2023: Rs 1,74 lacs ).

LEAVE OBLIGATIONS

The leave obligations cover the company''s liability for earned leave.

The amount of the provision of Rs 4.36 lacs (March 31, 2023 : Rs 4.69 lacs) is presented as current, since the company does not have an unconditional right to defer settlement for any of these obligations.

2.Measurement of fair values

The Company uses the following hierarchy for determining and disclosing fair values of financial instruments by valuation technique:

Level 1: quoted (unadjusted) prices in active markets for identical assets or liabilities.

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly Level 3: techniques which use inputs that have a sianificant effect on the recorded fair values that are not based on observable market data.

The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair values, as well as the significant unobservable inputs used.

Type Valuation technique

Preference Shares Discounted cash flows: The valuation model considers the present value of expected receipt/payment discounted using appropriate discounting rates.

.. . . .. .. _T . As the fair value in respect of unquoted equity investment in some unquoted investment investee Company could not be reliably estimated, the Company has valued such

Unquoted Equity Investments investment at net asset value as per the latest audited financial statements available

27.10 FINANCIAL RISK MANAGEMENT

The ComDanv has exoosure to the followina risks arisina from financial instruments:

¦ Credit risk;

¦ Liauiditv risk • Market risk

Risk manaaement framework

The Company''s board of directors has overall responsibility for the Company''s risk management, if any. fa) Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations and arises principally from the Company''s Receivables from customers and investment securities.

Trade Receivables

Credit risk is managed through credit approvals, establishing credit limits and continuously monitoring the credit worthiness of customers to which the Company grants credit terms in the normal course of business. In respect of trade receivables, the Company is not exposed to any significant credit risk exposure to any single counter party or any group of counterparties having similar characteristics. Based on historical information about customer default rates management considers credit quality of trade receivables.

(b) Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company has not obtained any fund and non-fund based working capital limits from banks.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude impact of netting agreements.

(c) Market Risk

Market risk is the risk that fair value of future cash flows of a financial instrument will fluctuate because of change in market prices.

(i) Price risk

The Company is not significantly exposed to changes in the prices of equity instruments.

(ii) Foreign currency risk

The Company does not have any foreign Currency exposure.

27.11 Capital Manaaement

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

As at 31st March, 2024, the Company has only one class of equity shares and has low debt. Consequent to such capital structure, there are no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into business based on its long term financial plans.

27.12 Disclosure required under Section 186 (4) of Companies Act,2013

Details of Investment made appear under the respective heads (refer note no. 5, 6 & 9)

27.13 The are no transactions with the Struck oFT Companies under Section 248 or 560 of the Companies, Act 2013

27.14 The Company has not traded or invested in crypto currency or virtual currency during the current period.

An eviction suit was filed against the Company by The Cricket Club of India Ltd. (Landlord) at Hon’ble Small Causes Court, Mumbai [''the Court''], thereby praying for eviction of the Company from the leasehold premises and for mesne profits. The Company has lost the said suit on 14th December, 2021 and the Court had Ordered the Company to vacate the said leasehold premises and further ordered an enquiry to ascertain amount of mesne profits.

The Company has challenged the said order and eviction decree of the Court via appeal before Appellate Bench of the Court and has obtained a Stay on the eviction decree. The Company has been advised that it has an arguable case.

The Stay was allowed by the Appellate Bench of the Court on condition that the Company shall deposit Rs 5,00,000 per month as interim compensation since the date of decree i.e. 14th December, 2021.

. Further, the Company being aggrieved of the said condition, has filed a Writ Petition with Hon''ble Bombay High Court on 9th January, 2023 challenging the unreasonable amount of Rs 5,00,000 fixed as per month compensation. While the hearing and disposal of the petition is j pending, the Hon''ble Bombay High Court has as an interim measure ordered the Company to pay compensation at the rate of Rs 2,00,000 per month. The Company is presently paying compensation at the rate of Rs 2,00,000 per month.

There were six labour cases filed against the Company before a labour court. The Company has contested / opposed the allegations levelled in all the said cases against the Company.

Hearings have been concluded and the Judgements have been made on 28th April, 2023 in all the six matters. Allegation leveled has been dropped due to no employer- employee relation established and no expenses levied.

Items and figures for the previous year have been recast, regrouped and/or re-arranged wherever necessary to conform to the current year''s presentation.

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Mar 31, 2023

1.18 Provisions

A provision s recognised for a present obi gatlon as a resi.lt at past event; If it *t probable that an Outflow of resources will be requ-red to settle the ooMgatkni, in respect of which a rei at e estimate can b« made Provisions arc not discounted to theHr present value and are cetwrr ned based on best estimated amount required to settle the obligation at tbe ba irte sheet date, these are reviewed at each balance street date and adjusted to relect current best estimates .

1.19 Contingent Liabilities

A contingent ''lability Is a possible obWgalon that arises from oast events whose existence wMI be confirmed by Ihe ocmrrenco or nonoccurrence at one or more uncertain future events beyond the control of the Company or a present obligator that is not recognised becausa It Is not probable that an out now of resources w«l be required to settle the obligation. A contingent liability also arises In extremely rare cases where there s a liability that cannot be reecgrnuK! because K cannot be measured reliably. Ihe Company does not recognise a contingent _ liability but disposes its existence In the Bnaneal statements

1.20 Leases

A contract Is, or contains, a lease if the contract conveys the right to control the use cf an identif ed asset for a per sc of time n exchange for consideration.

The Company recognises right of use asset representing Its right to use the underlying asset for the lease term at the lease commencement date. The cost of the right-of-use asset mease red at incept On shall compr.sc of the amount of the initial measurement of the lease liability adjusted lor any lease payments made at cr before the commencement date less any lease Incentives received, plus any ir Uoi direct costs mcjrred and an estimate of costs to be incurred by the lessee in dismantling and removing the underlying asset, restoring the underlying asset to the coodlt or required by the terms and conditions of the lease. or restoring the site on which it s located. The right *of*use assets $ subsequently measured at cost less any accunu ated depredation, accumulated Impairment losses, If any and adjusted for any remeasurement of the lease lability. The nght-of-use asses ts depreciated using the st''aighMine method from the commencement date over the shorter of lease term or useful life of right of use asset. The estimated useful lives of nght-of use assets are determined on the same basts as those of property, plant and equipment, fbght-cf-use assets are tested for impairment whenever there Is any indication that their carrying amounts may not be recoverable. Impairment loss, If any, is recognised m the statement of profit and less.

The Company measures tl>e least* liability at the present value of the lease payments that are not paid at the commencement date of the lease. The lease payments are discounted using the interest rate implicit m the lease, if that rate can be readily determined. If that rate cannot be reacily determined, the Company uses increments borrowing rate. For leases with reasonably surlier characteristics, the Company, on a lease by Haase basis, may adopt e ther the incremental borrowing rate specific to the lease or the incremental borrowing rate for the portfolio as a whole The lease payments shall indude rued payments, variable lease payments, residual value guarantees, exerase piroe Of i purchase option where the Com pony is reasonably certain to exercise that opt or and payments of penalties for terminating the Irase, if the lease term reflects the lessee exeresmg m oppen to term nate the kase The leese lleb»ty Is subsequently remeasured by Increasing the carrying amount to reflect interest on the lease liability, redutj >y t ie dirying amount to reflect the ease payments made and ¦eneasunr.g the carrying imount to reflect c*ty reassessment or lease modifications or to reflect revised InsubsUince fixed leaser payments. The company recognise* th« anrount of the re-measurement of lease liability due to mod''ficado''i as on adjustment to the right of-use asset and statement of profit and loss depending upon the nature of modification. Where the carrying amount of the ngnt*of-usa asset u reduced to ard then# U a ijrtl’er r

The Company has elected not to apply J e lequ remen*^ of Ind AS 110 Leases to short-term leases of all assets that have a lease term of 12 (norths or kss and leases ''or which the underlying asset is of tow value. The lease payments associated with these leases are recognized as an expense on a ''.ua#gh:- ine basis over the kase term.

Company as a lessor

at She inception of the kase tv Company classifies each of its leases as cither an ope*at ng leave or a I nance lease. Io classify each lease, tin* Company mlfctS 11 Ovtiall assessment of whether t*K kase transfer* subKentaUy all of fhe risks ard aw.irrK incidental to owncrsUp of the underlying asset. If this is the case, then the leave is a finance lease, 4 no: then it .s an operating lease The Company recognises kase payments received under operating leases as Income on a straight - line basts over the loase tmru.

26.11 Capital Management

For the p jrpose of the Company''s capital management, capital includes Issued capita'' and all other eculty leseives attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital Is to safeguard its ability lo continue as a gemg concern and to maintain an optimal capital structure so as to maximize shareholder value.

As at 31st March, 7023, the Company has only one class of equity snares and has low debt. Consequent to seen capital structure, there arc no externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company a Be cates its capital for distribution as dividend or reinvestment Into business based on Its long term financial plans.

26.12 Other Non-Current Assets include deposits of I NIL (Previous Year <13.00 lacs) w.th Sales Tax Authorities in respect of contested demands raised against the Company.

26.13 Disclosure required under Section 186 (4) of Companies Act,2013

Oetmls of Investment made appear under the respective heads (refer note no. 5, 6 & S)

26.14 The are no transactions with the Struck off Companies under Section 2a8 or S60 of the Companies, Act 2013.

26.15 The Company has not traded or divested in crypto currency or virtual currency during the current period.

26.16 Pursuant to the amendments to Schedule IQ v,de MCA circular dated March 24. 2021, the following ratios ore presented:

26.17 An eviction suit was hied against the Company by The Cricket dub of India IM. (landlord) at I Ion tee Sme''l Causes Court. Mumbai I''the Court’), thereby

praying for eviction of the Company from the leasehold premises and far mesne profits. The Company has lost the said sc t on 14th December, 2021 and the Court had Ordered the Company to vacate the said leasehold premises and further ordered an enquiry to ascertain amount of mesne profits.

The Company has challenged the said oidet and ev.ction decree of the Court via appeal before Appellate Bench of the Court and has obtained a Stay on the eviction decree The Company has been advised that It has an arguable case.

Trie Stay was showed by the Appellate Bench of the Court on condition that the Company shall deposit Its 5,00.000 per month as Interim compensation since the date of decree I e. l

Further, the Company being aggrieved ol the said condition, has Med a Writ vetltoc with Montle Bombay High Court on 9th January, 3023 challenging the unreasonable amount of Its 5.00,000 Fixed as per month compensation. Wh a the nearing and disposal of the petition is perseIng. the Hon blc Bombay High couit has as an interim measure ordered the Company to pay compens.it on at the rate of Rs 2,00,000 per month. The Company Is presently paying compensation at the rate ot Ks 2,00.000 per month

26.18 There were six labour cases feed aga.nsl the Company before a labour court. The Company has contested / opposed the allegations levelled In an the said cases against the Company.

Hearings have been concluded and the Judgements have been made on 28th April, 2023 In an the sot matters. However, the Company Is yet to receive the copy of the Judgements and not a wane about the outcome of judgment.

26.19

Items and ligutes for the previous year nave been recast, regrouped and/or rearranged wherever necessary to conform to the current year''s presentation. Signatories to Notes 1 to 26

As per our report of even date attached For and on behalf of the Board

For GMJ ft CO

Chartered Accountants N

Firm Registration No. 103429W ~ __ • -Vf'' .

'' / l\ Sx^ ''

, Asf**'' //*<&''--Banwari Lai 3atia Piyishkumar Mehta

[/V /y //*/MUMBAI \ * ft Managing Director Director

CAAtulJam l(p ( FRN NO. ) £]) _ DIN; 00016823 DIN t 08772311

;r»»,

Place: Mumbai Praved Mithallal Dubey \ Snilta Aehrekar

Date : 10th May 2023 chief Financial officer Company Secretary

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Mar 31, 2015

Unallocated costs: The unallocated segment includes general corporate income and expense items which are not allocated to any business segment.

Segment policies: The Company prepares its segment information in conformity with the accounting policies adopted for preparing and presenting the financial statements for the company as a whole

Basic Farris per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders by to weighted average number of equity shares outstanding during the period. For the purpose of calculating diluted earnings per share, the net profit or loss for the period at buyable to equity shareholders and the weighted average number of shares outstanding during the period are adjusted for Ihe effects of all dilutive potential equity shares.

The company has only one class of shares having a par value of Rs 10 per share. Each holder of equity shares is entitled to declares and pays dividends in Indian Rupees. Div,dend proposed by the Board of Directors is subject to approval of the shareholders.

a) In the event he event holders of the Company, holders of equity shares w„, be entitled to receive remaining assets of the Company, after distributor of all preferential amounts. The distribution will be proportionate to the number of equity shares held by the shareholder

1.1 Buildings include Rs,750 being value of fully paid shares in Co - operative Housing Societies.

1.2 Trade marks (original cost NIL) were valued at Rs. 1350 lacs by an independent chartered accountants firm on 30 04 2001 and are shown net of 11310 lacs since sold

1.3 Deductions/Adjustments of Depreciation include Rs. 7.75,115 transferred to General Reserve representing the carrying value of assets whose "useful life" is already over as under

(Electrical Installation Rs. 857. Office Equipments Rs. 7,45,011 and Furniture & Fixtures Rs. 29,247).

Total minimum lease rental obligations

2. Loans and Advances include deposits of Rs. 1,10,000 (Previous Year Regular 1.10.000) with Central Excise Dep't and Rs.15,07,522 (Previous Year Rs. 16,86,222) with Sales As in respect contested demands raised against the Company. Part of these demands pending in adjudication and/or in first appeals included under Contingent Liabilities not provided for.

3. Trade Receivables include Nil (Previous Year Rs. 17,00,00,000) recoverable towards sale of land,

4. Sales exclude Sales Tax/VAT amounting to 19,86.934 (Previous Year Rs. 12,16,533) collected from customers and paid to She concerned Government.

5. There are no amounts due and outstanding, to be credited to Investor Education & Protection Fund as on the date of the Balance Sheet,

6. Items and figures for the previous year have been recast, regrouped and/or re-arranged wherever necessary to conform to the current year's presentation.

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Mar 31, 2014

1. Terms/Rights attached to equity shares:

a) The Company has only one class of equity shares having a par value of Rs 10 per share Each holder of equity shares is entitled to one vote per share The Company declares and pays dividends in Indian Rupees. Dividend proposed by the Board of Directors is subject to approval of the shareholders

b) In the event of liquidation of the Company, holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportionate to the number of equity shares held by the shareholders.

As at 31st As at 31st March. 2013 March. 2013

Interest Interest ( Rs) ( Rs)

2. Contingent Liabilities and Commitments

1) Contingent Liabilities

a) Guarantees

b) Claims not acknowledged as debts 24,10,095 43,38,870 (Demands for Excise and Sales Tax under contest) Future Profitability may be affected to the extent indicated if such liabilities crystallise

3. Commitments

Estimated amount of contracts remaining 33,103,291 79,999,313 to be executed on Capital Account and not provided for

4. RELATED PARTY DISCLOSURES (As per Accounting Standard 18): (as identified by the management and relied by the auditors)

i) Control :

Mr. B. L. Jatia

II) Associated Companies:

Hawco Lubricants Pvt. Ltd (formerly known as Hawco Lubricants Ltd) Winmore Leasing & Holdings Limited Concept Highland Business Private Limited Key Management Personnel:

Mr. B. L. Jatia - Chairman & Managing Director

5. Loans and Advances include deposits of 110,000 (Previous Year Rs 110,000) with Central Excise Deptt and 1686,222 (Previous Yea Rs 1.686,222) with Sales Tax Authorities in respect of contested demands raised against the Company. Part of these demands pending in adjudication and/or in first appeals is included under Contingent Liabilities Not Provided For.

6. Trade Receivables include Rs. 170.000,000 (Previous Year Rs. 180.000.000) recoverable towards sale of land (since received).

7. Sales exclude Sales Tax/VAT amounting to Rs 1.216.533 (Previous Year Rs. 1,014,863) collected from customers and paid to the concerned Government.

8. There are no amounts, due and outstanding, to be credited to Investor Education & Protection Fund as on the date of the Balance Sheet.

9. Promotor Group :

Mr Banwari Lai Jatia and his group consisting of Achal Exim Private Limited, Akshay Ayush Impex Private Limited, Acacia Impex Private Limited, Anand Veena Twisters Private Limited. Concept Highland Business Private Limited Hardcastle Petrofer Private Limited, Hawcoplast Investments & Trading Limited, Horizon Impex Private Limited, Houghton Hardcastle (India) Limited, Hawco Lubricants Private Limited, Saubhagya Impex Private Limited, Shri Ambika Trading Co Private Limited, Subh Ashish Exim Private Limited, Vandeep Tradelinks Private Limited, Vishwas Investment & Trading Co. Private Limited. Winmore Leasing & Holdings Limited, West Pioneer Properties (India) Private Ltd, West Leisure Resorts Ltd, Amit BL Properties Private Ltd, Ridhika Properties Private Ltd, Westlife Development Ltd. Hadcastle Restaurants Pvt. Ltd, Makino Holdings Ltd, J & K Speciality Chemicals LLR Hawco Petrofer LLP Smt Lalita Devi Jatia, Smt Usha Devi Jatia, Shri Amit Jatia, Smt Smita Jatia. Shri Akshay Jatia. Shri Ayush Jatia, Shri Anurag Jatia. Smt Shalini Jatia, Miss Ridhika Jatia. Banwarilal Jatia * HUF, Amit Jatia - HLIF and Anurag Jatia - HLIF.

10. Items and figures for the previous year have been recast, regrouped and/or re-arranged wherever necessary to conform to the current year's presentation

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Mar 31, 2013

1.01

CONTINGENT LIABILITIES AND COMMITMENTS As at 31 St March, 2013 As at 31 st March, 2012

1) CONTINGENT LIABILITIES

a) Guarantees

b) Claims not acknowledged as debts 4,338,870 4,338,870 (Demands for Excise and Sales Tax under contest)

Future Profitability may be affected to the extent indicated if such liabilities crystallise.

2) COMMITMENTS

Estimated amount of contracts remaining to be executed on Capital

Account and not provided for 79,999,313 -

1.02 Other Debts shown under ''Trade Receivables" include Rs. 18,00,00,000 recoverable towards sale of land 2418 Sales exclude Sales Tax/VAT amounting toRs. 10,14.863 (Previous YearRs.7,01,962) collected from customers and paid to the concerned Government.

1.03 There ere no amounts, due and outstanding, to be credited to investor Education & Protection Fund as on the date of the Balance Sheet

1.04 Promoter Group:

Mr Banwari Lai Jatia & his group consisting of Achal Exim Pvt. Ltd., Akshay Ayush Impex Pvt. Ltd., Acacia Impex Pvt. Ltd Triple A Foods Pvt Ltd Anand Veen a Twisters Pvt. Ltd., Concept Highland Business Pvt. Ltd., Hardcastle Petrofer Pvt. Ltd., Hardcastle Restaturants Pvt Ltd HawcoDlast nvestments & Trading Ltd., Horizon Impex Pvt. Ltd.. Houghton Hardcastle (India) Ltd., Saubhagya impex Pvt. Ltd., Shri Ambika Trading Co Pvt Ltd Subh Ashish Exim Pvt Ltd., Vandeep Trade Links Private Limited, Vishwas Investment S Trading Co. Pvt. Ltd. West Leisure Resorts Pvt Ltd,. Westlife Development Ltd., Westpoint Leisureparks Private Limited, Winmore Leasing & Holdings Ltd., Hawco Lubricants Ltd., Shri Anurag Jatia-HUF Smt, Lalita Devi Jatia, Smt.Usha Devi Jatia, Shri Amir Jatia,Smt. Smita Jatia,Shri Akshay jatia''shri Ayush jatia, Smt shalini Jatia, Miss Ridhika Jatia, Banwarilal Jatia-HUF, Amit Jatia-HUF and Anurag Jatia-HUF.

1.05 Items and figures for the previous year have been recast, regrouped and/or re-arranged wherever necessary to confirm to the current year''s presentation.

Signatories to Notes 1 to 24

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Mar 31, 2012

1.1 To the best of knowledge of the Company, none of the creditors is a 'Small enterprise' within its meaning under clause (m) of section 2 of the Micro,Small and Medium Enterprises Development Act, 2006 and therefore principal amount,interest paid/payable or accrued is NIL.

1.2 CONTINGENT UABILmES AND COMMITMENTS

As at 31st March, 2012 As at 31st March, 2011 Current Year Previous Year Rs. Rs.

a) Guarantees - 45,000

b) Claims not acknowledged as debts 4,338,870 4,425,324

(Demands for Excise and Sales Tax under contest)

Future Profitability may be affected to the extent indicated if such liabilities crystallise.

1.3 RELATED PARTY DISCLOSURES (As per Accounting Standard 18): (as identified by the management and relied by the auditors)

i) Control: Mr Banwari La! Jatia

Mr Banwari Lai Jatia

ii) Associated Companies:

Hawcoplast Investments & Trading Limited Global Trendz Limited Hawco Lubricants Limited Winmore Leasing & Holdings Limited Concept Highland Business Private Limited Key Management Personnel:

Mr Banwari Lai Jatia - Chairman & Managing Director

1.4 As there is no diminution in value of investments as on 31st March 2012, in the opinion ot the directors of the company, no provision therefor is required.

1.5 Loans and Advances include deposits ofRs. 1,10,000 (Previous Year Rs. 1,10,000) with Central Excise Deptt and Rs. 16,86,222 (Previous Year Rs. 17,23,109) with Sales Tax Authorities in respect of contested demands raised against the Company. Part of these demands pending in adjudication and/or first appeals is included under Contingent Liabilities Not Provided For.

1.6 There are no shares in Unclaimed Suspense Account.

1.7 Other Debts shown under Trade Receivables" include Rs. 18,00,00,000 recoverable towards sale of land.

1.8 Sales exclude Sales Tax/VAT amounting to Rs. 7,01,962 (Previous Year Rs. 39,94,317) collected from customers and paid to the concerned Government.

1.9 There are no amounts, due and outstanding, to be credited to Investor Education & Protection Fund as on the date of the Balance Sheet.

1.10 Promotor Group:

Mr Banwari Lai Jatia & his group consisting of Achal Exim Pvt. Ltd, Akshay Ayush Impex Pvt. Ltd, Acacia Impex Pvt. Ltd, Triple A Foods Pvt. Ltd, Anand Veena Twisters Pvt. Ltd, Concept Highland Business Pvt. Ltd, Hardcastle Petrofer Pvt. Ltd, Hardcastle Restaturants Pvt. Ltd, Hawcoplast Investments & Trading Ltd, Horizon Impex Pvt. Ltd, Houghton Hardcastle (India) Ltd, Saubhagya Impex Pvt. Ltd, Shri Ambika Trading Co. Pvt. Ltd, Subh Ashish Exim Pvt. Ltd, Vandeep Trade Links Pvt. Ltd, Vishwas Investment & Trading Co. Pvt. Ltd, West Leisure Resorts Pvt. Ltd, Westlife Development Ltd, Westpoint Leisureparks Pvt. Ltd, Winmore Leasing & Holdings Ltd, Hawco Lubricants Ltd, Shri Anurag Jatia, Smt Lalita Devi Jatia, Smt Usha Devi Jatia, Shri Amit Jatia, Smt Smita Jatia, Shri Akshay Jatia, Shri Ayush Jatia, Smt Shalini Jatia, Miss Ridhika Jatia, Banwarilal Jatia - HUF, Amit Jatia - HUF and Anurag Jatia - HUF.

1.11 Items and figures for the previous year have been recast, regrouped and/or re-arranged wherever necessary to conform to the current year's presentation.

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Mar 31, 2011

1) Related Party Disclosures (as identified by the management and relied by the auditors)

i) Control

MrB. L. Jatia

ii) Associate Companies

Hawcoplast Investments & Trading Limited

Global Trendz Limited

Winmore Leasing & Holdings Limited

2) Segment Information

NOTES:

1) Industrial Chemicals segment includes heat treatment products, maintenance products, sealants and synthetic resins.The Investment segmenl relates primarily to the activity of Investment The Garments segmenrrelates to the activity of sale & purchase of Readymade Garments.

2) The operations of The company are entirely in India and hence, there are no other reportable geographical segments

3) Contingent Liabilities not provided for: As at 31st MARCH, 2011 (Rs. Lacs)

a) Guarantees 0.45

b) Claims not acknowledged as debts 44.25 (Demands for Excise and Sales Tax under contest)

Future Profitability may be affected to the extent indicated if such liabilities crystallise.

4) Other Income (Schedule I) includes income tax deducted at source Rs.11.47 lacs (Previous Year Rs. 18.77 Lacs).

5) Interest shown in Profit & Loss Account (Schedule K) represents interest on loans for other than fixed period.

6) Sales include sales tax/VAT collected Rs. 39.94 lacs (Previous Year Rs. 71.52 lacs). Payments towards sales tax/VAT have been debited to the Profit & Loss Account

7) To the best of knowledge of the Company, none of the creditors is a "Small Enterprise" within its meaning under clause (m) of section 2 of the Micro, Small & Medium Enterprises Development Act, 2006 and therefore principal amount, interest paid/payable or accrued to such enterprises is Nil.

8) Exchange difference (net gain) arising from foreign currency transactions amounting to Rs. 0.80 lac (Previous Year Rs. 6.12 lacs) has been accounted for under the respective revenue heads in the Profit and Loss Account

9) Loans and Advances include deposits of Rs. 1.10 lacs (Previous Year Rs.1.10 lacs) with Central Excise Dept and Rs. 17.23 lacs (Previous Year Rs. 16.70 lacs) with Sales Tax Authorities in respect of contested demands raised against the Company. Part of these demands pending in adjudication and/or first appeals is included under Contingent Liabilities Not Provided for.

10) A charge was created on stocks.stores, book debts and some fixed assets of the Company in favour of a bank in consideration of facility of cash credit, guarantees and letters of credit issued / to be issued upto a limit Nil (Previous Year Rs. 110.00 lacs). The said charge has since been vacated.

11) The Company on 08.11.2009 issued fully paid 7,500 zero percent Unsecured .Compulsorily Convertible Debentures of Rs. 10,000/- each aggregating to Rs. 750 Lacs.The holders of the debentures have been allotted nine fully paid equity shares of Rs. 10/- each in the Company's capital for each debenture without any further payment on 08.05.2011.

12) There are no shares in Unclaimed Suspense Account.

13) There are no amounts, due and outstanding, to be credited to Investor Education & Protection Fund as on the date of the Balance Sheet.

14) Following discontinuance of activities at its Sarigam Factory, Assets forming part of Plant & Machineries & Other Fixed Assets of the said factory have been written down to their recoverable amounts being the estimated selling prices (Rs. 11.89 lacs) as estimated by the management. The resultant impairment loss of Rs. 21.85 lacs has been provided for in the Profit and Loss Account.

15) During the year, the Company discontinued operation of its Sarigam Factory. Date of Initial Disclosure Event Discontinuance completed by

Carrying Amount of Total Assets Carrying Amount of Total Liabilities Amount of Revenue during the Year Amount of Expenses during the Year Amount of Profit/(Loss) during the Year (After considering impairment of assets) Tax payable thereon , 6.06 Net Cash Flow from Operating Activities Net Cash Flow from Investing Activities Net Cash Flow from Financing Activities Net Cash lnflow/(0utflow)

22) During the year, the Company has re-determined the useful life of Motor Vehicles & Office Computers. Consequently, the Company has started providing depreciation on the said assets at rates higher than those prescribed in Schedule XIV of the Companies Act. 1956 in accordance with paragraph 23 of Accounting Standards AS-6: Consequently, Depreciation for the year on these assets is higher by Rs. 7.19 lacs and Profit on Sale of Assets is higher by Rs. 4.78 lacs which has been provided for in the Accounts Thereby, each of the Profit For the Year, surplus shown under Reserves & Surplus aQd Fixed Assets is lower by Rs.2.41 lacs

23) Promoter Group:

Mr B, L. Jatia & his group consisting of Achal Exim Pvt. Ltd, Akshay Ayush Impex Pvt. Ltd, Acacia Impex Pvt. Ltd, Anand Veena Twisters Pvt. Ltd, Concept Marbles Pvt. Ltd. Hardcastle Petrofer Pvt. Ltd, Hardcastle Restaturants Pvt. Lid, Hawcoplast Investments & Trading Ltd, Horizon Impex Pvt. Ltd, Houghton Hardcastle (India) Ltd, Hawco Lubricants Ltd, Saubhagya Impex Pvt. Ltd. Shri Ambika Trading Co. Pvt, Ltd, Subh Ashish Exim Pvt. Ltd, Triple A Foods Pvt. Ltd, Vandeep Tradelinks Pvt. Ltd, Vishwas Investment & Trading Co, Pvt: Ltd, West Leisure Resorts Pvt. Ltd, Westltfe Development Ltd, Westpoint Realtors Pvt. Ltd, Winmore Leasing & Holdings Ltd, Smt Lalita Devi Jatia, Smt Usha Devi Jatia. Shri Amit Jatia, Smt Smita Jatia, Shri Akshay Jatia, Shri Ayush Jatia, Shri Anurag Jatia, Smt Shalini Jatia. Miss Ridhika Jatia, Banwarilal Jatia - HUF, Amit Jatia - HUF and Anurag Jatia - HUF.

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Mar 31, 2010

1) Related Party Disclosures (as identified by the management and relied by the auditors)

i) Control Mr : B. L. Jatia

ii) Associate Companies : Hawcoplast Investments & Trading Limited, Global Trendz Limited, Winmore Leasing & Holdings Limited

iii) Key Management Personne Promotor :



Mr B. L. Jatia & his group consisting of Achal Exim Pvt. Ltd, Akshay Ayush Impex Pvt. Ltd, Acacia Impex Pvt. Ltd, Anand Veena Twisters Pvt. Ltd, Concept Marbles Pvt. Ltd, Hardcastle & Waud Mfg Co. Ltd, Hardcastle Petrofer Pvt. Ltd, Hawcoplast Investments & Trading Ltd, Horizon Impex Pvt. Ltd, Houghton Hardcastle (India) Ltd, Hawco Lubricants Pvt. Ltd, Saubhagya Impex Pvt. Ltd, Shri Ambika Trading Co. Pvt. Ltd, Subh Ashish Exim Pvt. Ltd, Triple A Foods-Pvt. Ltd, Vandeep Tradelinks Pvt. Ltd, Vishwas Investment & Trading Co. Pvt. Ltd,West Leisure Resorts Pvt. Ltd, Westlife Development Ltd, Westpoint Realtors Pvt. Ltd, Winmore Leasing & Holdings Ltd, Hardcastl Restaturants Pvt. Ltd, Shri Ganpati Enterprises, Smt Lalita Devi Jatia, Smt Usha Devi Jatia, Shri Amit Jatia, Smt Smifa Jatia, Master Akshay Jatia, Master Ayush Jatia, Shri Anurag Jatia, Smt Shalini Jatia, Miss Ridhika Jatia, Banwarilal Jatia - HUF, Amit Jatia - HUF, Anurag Jatia - HUF. Directors: Mr N, S. Karnavat, Mr Hasmukh Gandhi, Mr Tushar G.Agarwal & Mr O. P.Adukia

2) Contingent Liabilities not provided for: As at 31st March, 2010 As at 31st March, 2009

(Rs lacs) (Rs lacs)

a) .Guarantees 3.53 4.86

b) Claims not acknowledged as debts 38.09 83.29 (Demands for Excise, Sales Tax, etc. under contest)

c) Liability on partly paid shares - 148.65 Future Profitability may be affected to the extent indicated if such liabilities crystallise.

3) The Company has made payment of Nil (Previous Year Rs 0.06 Lac) to a Gratuity Fund including insurance premium charged by LIC.

4) Other Income (Schedule I) includes income tax deducted at source Rs 18.77 lacs (Previous Year Rs 24.53 Lacs).

5) Interest shown in Profit & Loss Account (Schedule K) represents interest on loans for other than fixed period .

6) Sales include sales tax/VAT collected Rs 71.52 lacs (Previous Year Rs 64.82 lacs). All payments towards sales tax/VAT have been debited to the Profit & Loss Account.

7) Expenses on Research and Development include Nil being payment to research and development staff (Previous Year Rs 0.66 lac).

8) To the best of knowledge of the Company, none of the creditors is a "Small Enterprise" within its meaning under clause (m) of section 2 of the Micro, Small & Medium Enterprises Development Act, 2006 and therefore principal amount, interest paid/payable or accrued to such enterprises is Nil.

9) Exchange difference (net gain) arising from foreign currency transactions amounting to Rs 6.12 lacs (Previous Year net loss Rs 0.76 lac) has been accounted for under the respective revenue heads in the Profit and Loss Account

10 Loans and Advances include deposits of Rs 1.10 lacs lacs) with Central Excise Deptt and Rs 16.70 lacs (Previous Year Rs 15.36 lacs) with Sales Tax Authorities in respect of contested demands raised against the Company. Part of these demands pending in adjudication and/or first appeals is included under Contingent Liabilities Not Provided for.

11) A charge has been created on stocks. stores, book debts and some fixed assets of the Company in favour of a bank in consideration of facility of cash credit, guarantees and letters of credit issued / to be issued upto a limit of Rs 110.00 lacs on behalf of the Company (Previous Year Rs 110.00 lacs).

12) The Company on 08.11.2009 issued fully paid 7,500 zero percent Unsecured .Compulsorily convertible Debentures of Rs 10,000/- each aggregating to Rs 750 Lacs. The holders of the debentures shall be allotted nine fully paid equity shares of Rs 10/- each in the Companys capital for each debenture without any further payment on 08.05.2O11.

13) There are no amounts, due and outstanding, to be credited to Investor Education & Protection Fund as on the date of the Balance Sheet.

14) Items and figures for the previous year have been recast, regrouped and or rearranged wherever necessary to conform to the current years presentation.