Notes to Accounts of JSL Industries Ltd.

Mar 31, 2024

b) Rights, preferences and restrictions attached to shares

Equity shares: The Company has one class of equity shares having a par value of Rs.10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. 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 shareholding.

c) Details of equity shares held by shareholders holding more than 5% of the aggregate shares in the Company

‘Investment in note 6 includes investments in subsidiaries and joint ventures which are carried at cost and hence are not required to be disclosed as per Ind AS 107 “Financial Instruments Disclosures”. Hence, the same have been excluded from the above table.

B. Measurement of fair values

The below analyses financial instruments carried at fair value, by valuation method. The different levels have been defined as follow:

Level 1: Quoted prices in active markets for identical assets and liabilities.

Level 2: Inputs other than quoted prices included within Level 1 that are observabe for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

Level 3: Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

NOTE 35 : Financial instruments - Fair values and risk management

The Company''s principal financial liabilities comprises of trade and other payables. The Company''s financial assets include trade and other receivables, and cash & cash equivalents that it derives directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees the management of these risks. The Company''s senior management is supported by the Board of Directors that advises on financial risks and the appropriate financial risk governance framework for the Company. This provides assurance to the Company''s senior management that the Company''s financial risk activities are governed by appropriate policies and procedure and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The Board of Directors reviews and agrees policies for managing each risk, which are summarised as below:

(i) 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.

The Company is exposed to cedit risk for trade receivables and other financial assets.

Other financial assets

Other financial assets includes loan to employees, security deposits, investments, cash and cash equivalents, other bank balance, advances to employees etc.

• Cash and cash equivalents and Bank deposits are placed with banks having good reputation and past track record with adequate credit rating.

• The Company has given security deposit to various government authorities. Being government authorities, the Company does not have exposure to any credit risk.

Trade and other receivables

The exposure to credit risk on accounts receivables and amounts due from related parties is monitored on an ongoing basis by the management and these are considered recoverable by the company''s management. Accounts receivables were outstanding from few customers and hence the Company has concentration of accounts receivables and cosequent risk to that extent.

In view of the management based on the company''s past history as well as forward looking estimates at the end of each reporting period, receivables are good and fully recoverable.

The following year end trade receivables, loans and other financial assets balances, though overdue, are expected to be realised in the normal course of business and hence, are not considered impaired as at March 31,2021 and March 31,2020 :

(ii) Liquidity Risk

The Company requires funds both for short-term operational needs as well as for long-term investment programmes mainly in growth projects.

Management monitors forecasts of the Company''s liquidity position and cash and cash equivalent on the basis of expected cash flows.

Financing arrangement

The Company had access to the following undrawn borrowing facilities at the end of the reporting period:

(iii) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises of interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings and deposits.

(a) Currency risk

Currency risk faced by the company is minimal as there are minimal foreign currency transactions. Most of the monetary assets and liabilities are denominated in United States Dollar (USD).

(b) Interest rate risk

Interest rate risk is the risk of variability in profit due to change in interest rates on interest bearing assets and interest bearing liabilities.

NOTE - 36 CAPITAL MANAGEMENT

The Company determines the amount of capital required on the basis of the annual business plan coupled with long term and short term strategic investments and expansion plans. The funding needs are met through equity, cash generated from operations, long terms and short term bank borrowings.

The Company monitors capital using a ratio of ‘adjusted net debt'' to ‘adjusted equity''. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents. Adjusted equity comprises all components of equity. The Company’s adjusted net debt to equity ratio is as follows.

NOTE - 38 CAPITAL COMMITMENT AND CONTINGENT LIABILITIES
	Amount in Lakhs
Particulars	31st March 2024	31st March 2023
Estimated value of capital contracts yet to be executed & not provided for
Contingent liabilities not provided for Letter of credit, Guarantees and counter guarantees	352.37	346.40
Liabilities Disputed in appeals Excise duty/ Service Tax/Income Tax	393.45	415.35

NOTE - 39 DISCLOSURES IN RESPECT OF RELATED PARTIES TRANSACTIONS (IND AS 24)

List of Related parties with whom transactions have been taken place during the year.

(a) Controlling Companies: There is no Controlling Company

(b) Subsidiary and Fellow Subsidiary Companies: There is no Subsidiary and Fellow Subsidiary Company

(c) Associate Companies: There is no Associate Company

(d) Other Related Parties

(1) Jyoti Ltd.

(2) Insutech Industries Ltd

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Mar 31, 2015

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

The company has only one class of equity shares having a par value of ' 10 per share. Each holder of equity shares is entitled to one vote per share.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution/repayments of all creditors. The distribution will be in proportion to the number of equity shares held.

(b) Shares held by holding or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate.

There is no Shares held by holding or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate.

(c) Shares reserved for issue under option and contracts/commitments for the sales of shares/disinvestments, including the terms and amounts.

There is no such shares reserved for issue under option and contracts/commitments for the sales of shares/disinvestments, including the terms and amounts.

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

There is no such transaction occurred during the period of five years immediately preceding the reporting date:

(e) Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date.

The Company did not issue any type of security/preference shares.

(f) Calls Unpaid (Showing aggregate value of calls unpaid by directors and officers)

There are no calls unpaid.

(g) Forfeited shares (amount originally paid up)

There are no forfeited shares.

2.(a) Term loans from Bank were taken during the financial year 2010-11 and 2013-14 which were repayable in 60 monthly installments each along with interest, from the date of loan plus moratorium period. The Term Loans are secured by pari passu first charge on the Land, Building, Plant and Machinery, Office Equipments, Furniture and Fixtures and Other Fixed Assets of the Company. Further, these loans are also guaranteed by the personal guarantee of Promoter Directors. Term loans carrying interest @ 13.75%

(b) Other Loans (Vehicle) were taken during the financial year 2013-14, 2014-15. The loan is repayable in 36 monthly installments each along with interest, from the date of loan. The loans are hire purchase against each vehicle acquired by the Company. Other Loans (Vehicle) carrying interest @ 9% to 12%

(c) Installments payable within 12 months from the reporting date is classified as current maturities and balance amount of Term Loan shown as Non-Current part.

3.(a) Cash credit from Banks is secured by paripassu first charge hypothecation of inventory and trade receivables and other current assets of the company pertaining to manufacturing division. The Cash Credit is repayable on demand and carrying interest @ 13.50% Per Annum.

** During the financial year 2013-14 M/s. Raghuvir Investment Private Limited merged with M/ s. Insutech Industries Limited. Due to merger, shares of Insutech Industries Limited are issued in the ratio of 101:1 to the investors of M/s. Raghuvir Investment Private Limited. Consequently company has been issued 348 no of shares of M/s. Insutech Industries Limited in lieu of 3515 no of shares of M/s. Raghuvir Investment Private Limited. In turn there is a permanent diminishing in the value of Investment by Rs. 3,48,020/- for which no provision is made till date in accordance with AS 13.

*** Share Application Money with Jyoti Limited amounting to Rs. 5,50,00,000/- is pending for allotment.

4. Contingent liabilities not provided : 2014-15 2013-14 in respect of (Rs. Lacs) (Rs. Lacs)

a) Income Tax 46.82 46.56

b) Guarantees 600.34 559.88

c) Excise duty matters 183.68 183.68

5. An amount of Rs. 8,53,147/- representing difference between Depreciation on Revalued Assets and Original Cost of assets is transferred from Revaluation Reserve to Profit & Loss Account.

6. The Company contributes to the Gratuity Fund which has taken a Group Gratuity Policy with Life Insurance Corporation of India for future payments of retirement gratuity to its employees. The premium thereon has been so adjusted as to cover the liability under the Scheme in respect of all employees at the end of their future anticipated services with the Company.

7. In respect of Income-Tax & Sales Tax Assessments for earlier years, the Company has preferred appeals against the relevant demands which are pending before the Appellate Authorities. The Company expects no liability on this account.

8. (a) The accounts of Debtors, Creditors and Advances are subject to confirmation / reconciliation. The management does not expect any material difference affecting the financial statements on reconciliation / adjustments.

(b) In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

9. The Company is engaged in manufacturing of engineering goods only and therefore only one reportable segment in accordance with Accounting Standard 17 (Segment Reporting) issued by the Institute of Chartered Accountants of India.

10. Capital work in progress relates to Building and Machinery under Installation, Which are not completed and hence shown under the head of Capital Work-In- Progress.

11. The Company has Investments in shares of Insutech Industries Limited of 348 Shares of Rs.10 each. There is a permanent diminishing in the value of Investment by Rs. 3,48,020/- for which no provision is made as per AS 13.

12. Inter-company group accounts are subject to reconciliation.

13. Discloser as per amendment to clause 32 of the Listing Agreement. Loans and advances in the nature of Loans given to Associates and Others.

14. As required by Accounting Standard (AS) - 18 "Related parties Disclosures" issued by the Institute of Chartered Accountants of India are as follows.

List of Related parties with whom transactions have been taken place during the year.

(a) Associate Company : Jyoti Ltd. Insutech Industries Ltd Navrachana Educational Resources Ltd.

(b) Key Management Personnel :

Chairman : Mr. R. N. Amin

Wholetime Director : Mrs. T. R. Amin

Non-Executive Director : Dr. K. K. Thakkar

Chief Executive Officer : Mr. K. J. Gupta

Chief Financial Officer : Mr. A. L. Parikh

Company Secretary : Mr. B. P. Patel

15. Value of all imported and indigenous raw materials, spare parts and components consumed during the financial year along with percentage of each to the total consumption.

16. Previous Year's figures are regrouped / rearranged wherever necessary.

17. Figures in brackets indicate previous year's figures.

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Mar 31, 2014

(a) Shares reserved for issue under option and contracts/commitments for the sales of shares/disinvestments, including the terms and amounts.

There is no such shares reserved for issue under option and contracts/commitments for the sales of shares/disinvestments, including the terms and amounts.

(b) Aggregate number of bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

There is no such transaction occurred during the period of five years immediately preceding the reporting date:

(c) Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date.

The Company did not issue any type of security/preference shares.

(d) Calls Unpaid (Showing aggregate value of calls unpaid by directors and officers)

There is no calls unpaid.

(e) Forfeited shares (amount originally paid up)

There is no forfeited shares.

(a) Term loans from Bank were taken during the financial year 2009-10,2010-11 and 2011-12 which were repayable in 60 monthly installments each along with interest, from the date of loan plus moratorium period. The Term Loans are secured by paripassu first charge on the Land, Building, Plant and Machinery, Office Equipments, Furniture and Fixtures and Other Fixed Assets of the Company. Further, these loans are also guaranteed by the personal guarantee of Promoter Directors. Term loans carrying interest @ 13.50%

(b) Other Loans (Vehicle) were taken during the financial year 2009-10, 2010-11, 2011-12 and 2013-14. The loan is repayable in 36 monthly installments each along with interest, from the date of loan. The loans are hire purchase against each vehicle acquired by the Company.Other Loans (Vehicle) carrying interest @ 9% to 12%

(c) Installments payable within 12 months from the reporting date is classified as current maturities and balance amount of Term Loan shown as Non-Current part.

2013-14 2012-13 (Rs. Lacs) (Rs. Lacs)

2. Contingent liabilities not provided in respect of:

a) Income Tax 46.56 50.52

b) Guarantees 559.88 596.55

c) Letter of Credit - 30.90

d) Excise duty matters 183.68 183.68

3. An amount of Rs. 12,59,220/- representing difference between Depreciation on Revalued Assets and Original Cost of assets is transferred from Revaluation Reserve to Profit & Loss Account.

4. The Company contributes to the Gratuity Fund which has taken a Group Gratuity Policy with Life Insurance Corporation of India for future payments of retirement gratuity to its employees. The premium thereon has been so adjusted as to cover the liability under the Scheme in respect of all employees at the end of their future anticipated services with the Company.

5. In respect of Income-Tax & Sales Tax Assessments for earlier years, the Company has preferred appeals against the relevant demands which are pending before the Appellate Authorities. The Company expects no liability on this account.

6. (a) The accounts of Debtors, Creditors and Advances are subject to confirmation / reconciliation. The management does not expect any material difference affecting the financial statements on reconciliation/ adjustments.

(b) In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

7. The Company is engaged in manufacturing of engineering goods only and therefore only one reportable segment in accordance with Accounting Standard 17 (Segment Reporting) issued by the Institute of Chartered Accountants of India.

8. Capital work in progress relates to Building and Machinery under Installation, Which are not completed and hence shown under the head of Capital Work-In-Progress.

9. The Company has Investments in shares of Insutech Industries Limited of 348 Shares of Rs. 10 each. There is a permanent diminishing in the value of Investment by Rs. 3,48,020/- for which no provision is made as per AS 13.

10. Inter-company group accounts are subject to reconciliation.

11. Disclosures for defined benefit plans based on actuarial reports as on 31st March, 2014.

12. As required by Accounting Standard (AS) - 18 "Related parties Disclosures" issued by the Institute of Chartered Accountants of India are as follows.

List of Related parties with whom transactions have been taken place during the year.

(a) Associate Company : Jyoti Ltd.

Insutech Industries Ltd.

(b) Key Management Personnel :

Chairman : Mr. R. N. Amin

Wholetime Director : Mrs. T. R. Amin

Non-Executive Director : Dr. K. K. Thakkar

13. Previous Year''s figures are regrouped / rearranged wherever necessary.

14. Figures in brackets indicate previous year''s figures.

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Mar 31, 2013

2012-13 2011-12 (Rs. Lacs) (Rs. Lacs)

1. Estimated values of Capital Contracts yet to be executed and not provided for 8.93 21.70

2. Contingent liabilities not provided in respect of:

a) Income Tax 50.52 51.95

b) Guarantees 596.55 549.49

c) Letter of Credit 30.90 25.63

d) Excise duty matters 183.68 183.68

3. An amount of Rs. 13,51,039/- representing difference between Depreciation on Revalued Assets and Original Cost of assets is transferred from Revaluation Reserve to Profit & Loss Account.

4. The Company contributes to the Gratuity Fund which has taken a Group Gratuity Policy with Life Insurance Corporation of India for future payments of retirement gratuity to its employees. The premium thereon has been so adjusted as to cover the liability under the Scheme in respect of all employees at the end of their future anticipated services with the Company.

5. In respect of Income-Tax & Sales Tax Assessments for earlier years, the Company has preferred appeals against the relevant demands which are pending before the Appellate Authorities. The Company expects no liability on this account.

6. (a) The accounts of Debtors, Creditors and Advances are subject to confirmation / reconciliation. The management does not expect any material difference affecting the financial statements on reconciliation/ adjustments. (b) In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

7. The Company is engaged in manufacturing of engineering goods only and therefore only one reportable segment in accordance with Accounting Standard 17 (Segment Reporting) issued by the Institute of Chartered Accountants of India.

8. Capital work in progress relates to Building and Machinery under Installation, Which are not completed and hence shown under the head of Capital Work-in-Progress.

9. Inter-company group accounts are subject to reconciliation.

10. Value of all imported and indigenous raw materials, spare parts and components consumed during the financial year along with percentage of each to the total consumption.

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Mar 31, 2012

(a) 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.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution/repayments of all creditors. The distribution will be in proportion to the number of equity shares held.

(b) Shares held by holding or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate.

There is no Shares held by holding or its ultimate holding company including shares held by or by subsidiaries or associates of the holding company or the ultimate holding company in aggregate.

(c) Shares reserved for issue under option and contracts/commitments for the sales of shares/disinvestments, including the terms and amounts.

There is no such shares reserved for issue under option and contracts/commitments for the sales of shares/disinvestments, including the terms and amounts.

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

There is no such transaction occurred during the period of five years immediately preceding the reporting date:

(f) Terms of any securities convertible into equity/preference shares issued along with the earliest date of conversion in descending order starting from the farthest such date.

The Company did not issued any type of security/preference shares.

(g) Calls Unpaid (Showing aggregate value of calls unpaid by directors and officers) There is no calls unpaid.

(h) Forfeited shares (amount originally paid up)

There is no forfeited shares.

(a) Term loans from Bank was taken during the financial year 2009-10, 2010-11 and 2011-12. The loan is repayable in 60 monthly installments each along with interest, from the date of loan plus moratorium period. The Term Loans are secured by paripassu first charge on the Land, Building, Plant and Machinery, Office Equipments, Furniture and Fixtures and Other Fixed Assets of the Company. Further, these loans are also guaranteed by the personal guarantee of Promoter Directors. Term loans carrying interest @ 12% to 17%.

(b) Other Loans (Vehicle) was taken during the financial year 2009-10, 2010-11 and 2011-12. The loan is repayable in 36 monthly installments each alongwith interest, from the date of loan. The loans are hire purchase against each vehicle acquired by the Company. Other loans (Vehicle) carrying interest @ 9% to 12%.

(c) Installments payable within 12 months from the reporting date is classified as current maturities and balance amount of Term Loan shown as Non-Current part.

2011-12 2010-11 (Rs Lacs) (Rs Lacs)

1.Estimated values of Capital Contracts yet to be executed and not provided for 21.70 307.15

2.Contingent liabilities not provided in respect of:

a) Income Tax 51.95 51.95

b) Guarantees 549.49 406.45

c) Letter of Credit 25.63 12.90

d) Excise duty demand in case of classification of products-matter under appeal Nil Nil

e) Excise duty matters Amount unascertainable.

3. An amount of Rs 19,34,518/- representing difference between Depreciation on Revalued Assets and Original Cost of assets is transferred from Revaluation Reserve to Profit & Loss Account.

4. The Company contributes to the Gratuity Fund which has taken a Group Gratuity Policy with Life Insurance Corporation of India for future payments of retirement gratuity to its employees. The premium thereon has been so adjusted as to cover the liability under the Scheme in respect of all employees at the end of their future anticipated services with the Company.

5. In respect of Income-Tax & Sales Tax Assessments for earlier years, the Company has preferred appeals against the relevant demands which are pending before the Appellate Authorities. The Company expects no liability on this account.

6. (a) The accounts of Debtors, Creditors and Advances are subject to confirmation /reconciliation. The management does not expect any material difference affecting the financial statements on reconciliation/ adjustments.

(b) In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

7. The Company is engaged in manufacturing of engineering goods only and therefore only one reportable segment in accordance with Accounting Standard 17 (Segment Reporting) issued by the Institute of Chartered Accountants of India.

8. Capital work in progress relates to Building and Machinery under Installation, Which are not completed and hence shown under the head of Capital Work-in-Progress.

9. Inter-company group accounts are subject to reconciliation.

10. During the year ended 31st March, 2012 the revised schedule VI under the Companies Act, 1956 has become applicable to the company for preparation and presentation of its financial statements. The adoption of revised schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosure made in the financial statements. The Company has also reclassified the previous year's figures in accordance with the requirements applicable in the current year. In view of this reclassification certain figures of current year are not strictly comparable with those of previous year.

11. Figures in brackets indicate previous year's figures.

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Mar 31, 2011

1. Estimated values of Capital Contracts yet to be executed and not provided for Rs.3,07,15,360/- (Previous Year Rs. 17,50,953)

2. Contingent liabilities not provided in respect of:

(a) Excise duty demand in case of classification of products-matter under appeal Rs. Nil (Previous Year Rs. Nil)

(b) Excise duty matters - amount unascertainable.

3. An amount of Rs.20,53,167/- representing difference between depreciation on Revalued Assets and Original Cost of assets is transferred from Revaluation Reserve to Profit & Loss Account.

4. The Company contributes to the Gratuity Fund which has taken a Group Gratuity Policy with Life Insurance Corporation of India for future payments of retirement gratuity to its employees. The premium thereon have been so adjusted as to cover the liability under the Scheme in respect of all employees at the end of their future anticipated services with the Company.

5. In respect of Income-Tax & Sales Tax Assessments for earlier years, the Company has preferred appeals against the relevant demands which are pending before the Appellate Authorities. The Company expects no liability on this account. During the year the Company has adjusted Sales Tax liability amounting to Rs. 12,38,900/- of Previous Years charged to Profit and Loss Account.

6. The Company is engaged in manufacturing of engineering goods only and therefore is only one reportable segment in accordance with Accounting Standard 17 (Segment Reporting ) issued by the Institute of Chartered Accountants of India.

7. Inter-company group Accounts are subject to reconciliation.

8. Excise Duty on Finished Goods Stock has been accounted/included in the Profit and loss account.

9. (a) The accounts of Debtors, Creditors and Advances are subject to confirmation / reconciliation.

The management does not expect any material difference affecting the financial statements on reconciliation/adjustments.

(b) In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

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Mar 31, 2010

I. Significant accounting policies of the Company :

(a) Income

(i) Sales are net of discounts allowed and are accounted for on despatch of products.

(ii) Service Income is recognised as revenue after the service is rendered and invoiced to the customer.

(b) Accounting of claims

(i) Insurance claims receivable are accounted for on the basis of Surveyor's Report depending on the merits of the case. Claims payable are accounted for at the time of acceptance.

(ii) Claims raised by Government Authorities regarding taxes and duties which are disputed by the Company are accounted based on the legality of each claim. Adjustments, if any, are made in the year in which disputes are finally settled.

(c) Retirement Benefits: Retirement benefits to employees are provided as follows :

(i) Gratuity : Gratuity payable to employees is provided for by payment to Gratuity Trust Funds on the basis of amounts determined by Life Insurance Corporation of India under Group Gratuity Scheme.

(ii) Superannuation : Superannuation payable to certain employees is provided by payments to Superannuation Trust Fund as per Superannuation Scheme.

(iii) Company's Contributions Paid / Payable to Provident Fund is charged to Profit & Loss Account.

(iv) The Company extends the benefit of encashment of leave to its employees while in service as well as on retirement. However, it does not have any defined Retirement Benefit Scheme in this behalf. Though, encashment is at the discretion of the management for the leave accumulated while in services, as well as on retirement, it is provided for during the year.

(d) Fixed Assets

Fixed Assets include assets purchased on Hire Purchase basis and are stated at cost of acquisition (net of cenvat wherever applicable) except Land, Buildings & Machineries which were revalued in the year 2006 in case of JSL Industries Ltd., and Land & building & Machineries acquired on account of Amalgamation with JEM Industries Ltd. & Jyoti Pumps and Electricals Ltd. are stated at market value which were revalued in the year 2004.

An amount representing difference between depreciation on Revalued Assets and Original Cost of assets is transferred fromRevaluation Reserve to Profit & Loss Account.

(e) Payments for acquisition of technical know-how is capiatlised to the relevant assets account and depreciation is provided as and when it is put to use.

(f) Investments

Investments are stated at cost and income thereon is accounted on accrual basis.

(g) Research&Development

R&D expenditure of revenue nature is charged to Profit & Loss Account. Capital expenditure is capitalised in the year in which it is incurred and depreciation is provided on such assets as applicable.

(h) Inventories

Raw Materials and components are stated at weighted average cost, Work-in-progress is valued at cost and Finished Goods are valued at lower of cost or market value.Pattern tools are valued at cost, net of amortization.

(i) Contingent Liabilities

Contingent Liabilities are disclosed after careful evaluation of the facts and legal aspects of the matter involved.

(j) Foreign Currency Transactions

Transactions in Foreign exchange are accounted for at the exchange rate prevailing on the date of receipt. Gain/ Loss arising out of fluctuation in the exchange rate is accounted for on realisation.

II. Other Notes

1. Estimated value of Capital contracts yet to be executed and not Provided for Rs.17,50,953/- (Previous year Rs. Nil).

2. Contingent liabilities not provided in respect of :

(a) Excise duty demand in case of classification of products-matter under appeal - Rs. NIL (Previous Year Rs. NIL)

(b) Other excise duty matters - amount unascertainable.

3. An amount of Rs. 20,64,463/- representing difference between Depreciation on Revalued Assets and Original Cost of assets is transferred from Revaluation Reserve to Profit & Loss Account.

4. The Company contributes to the Gratuity Fund which has taken aGroup Gratuity Policy with Life Insurance Corporation of India for future payments of retirement gratuity to its employees. The premium thereon have been so adjusted as to cover the liability under the Scheme in respect of all employees at the end of their future anticipated services with the Company.

5. In respect of Income-Tax & Sales Tax Assessments for earlier years, the Company has preferred appeals against the relevant demands which are pending before the Appellate Authorities. The Company expects no liability on this account & therefore liability is not provided in the books.

6. A Director of the Company has given personal Guarantee aggregating to Rs. 594.95 Lacs for various facilities granted to the Company by Banks.

7. As required by the Notification No. GSR 129 (E) dated 22nd February,1999 issued by the Department of Company Affairs, Ministry of Law, Justice and Company Affairs, the following are the small scale under takings to which the Company owe Rs. 1,00,000/- and above which are outstanding for more than 30 days.

Automech Industries Ashmor Electricals India Pvt.Ltd. Akar Packeging Amity Brass Component Amity Thermosets Pvt.Ltd. Aim Auto Enterprises Ambica Sales Corp. Blue Pack Cartons P. Ltd. Chetan Fastner Manufacturers Deep Industries Dashrath Metal Indus Deep Metal Cast Elite Casting Gujarat Wire Metal Indu. Greapwell Products Gujarat Switchgears Mfg Co. HariOmPlaters Jalaram Steel Industries Janak Industries Jyoti Copper Craft Pvt.Ltd. Kundan Elect. Components Krishna Engineering Industries Kapson Enterprises Kakadia Metal Industries LaxmiWoodWorks Modern Engg. & Spring Co. Malwa Strips Pvt. Ltd. Nuts ScrewMFGCo. NewIndia Extrusion P. Ltd. Niksan Engi. Co. Pvt. Ltd. Omkar Industries Preeti Industries Precicast Corporation Precision Industrial Products Prashant Engg.Works Precision Foundry & Engg. Co. Pressgel Insulation Pvt. Ltd. Priyank Engineering Power Meta Techniks Rajesh Rivet Industries Rajesh Electrical Contact Rainbow Powdercoats Shreeji Enterprises Shree Gautam Packers Shree Cable Shree Ratneshwari Engg.Works Siddharath Industries Shree Laxmi Industries Shree Aurombica Graphics Shreeji Enterprises Shree Saroja Rubber Products Shivshakti Foundry Pvt. Ltd. Sunny Metal Parts Shree Ganesh saw Mill Taskant Oil P. Ltd. Techno Fab Transtamp India Pvt Ltd. Transflex Engineers vijay Auto Engg.Works Vimal & co. Vallabh Engineers Vishal Fab(India) Pvt.Ltd.

8. The Company is manufacturing engineering goods i.e. Switchgears and allied products. All other activities of the company revolve around the same business. As such, there are no separate reportable segments as defined by AS 17.

9. During the year the Company has other income of Rs.9,92,957/- (Previous Year Rs.10,12,164/-) being the freight & Insurance recovered from parties for despatches made to them during the year.

10. TAXATION:

Deferred Taxation :

Deferred Tax (Liability)/Assets on account of:

As at 31st March, 2010

Depreciation 8,63,788 Total Deferred Tax (Liability)/Assets 8,63,788

In accordance with "Accounting Standard 22" the Company has provided the Deferred Tax (Liability)/Assets of Rs.8,63,788/- for the year.

11. As required by Accounting Standard (AS) 18 "Related parties Disclosures" issued by the Institute of Chartered Accountants of India are as follows:

List of Related parties with whom transactions have been taken place during the year

(a) Associate Company : Jyoti Ltd., : Insutech Industries Pvt.Ltd.

(b) Key Management Personnel Chairman : Mr. R.N. Amin Wholetime Director : Mrs. T.R. Amin Non - Executive Directors : Dr. K.K. Thakkar : Mr. Y.N. Vinchurkar : Mr. P.V. Krishnan

(c) Transanctions with related parties during the year 2009-10

Nature of Transactions Associate Companies Key Management Personnel

Purchases Rs. 4,45,152/- -- Sales Rs. 2,61,49,373/- -- Managerial Remuneration -- Rs. 28,91,500/- / Sitting Fees / Consultancy Trade Mark Usage Rs. 17,66,196/- --

12. Intercompany group Accounts are subject to reconciliation.

13. Excise Duty on sales amounting to Rs. 2,98,80,588/- (Previous Year Rs.3,74,41,455/-) has been reduced fromSales in Profit & Loss account and Excise Duty on Increase in Inventory of Finished Goods amounting to Rs. 5,50,250/-(Previous Year Rs. 9,40,105/-) has been accounted in Profit & Loss Account.

14. (a) The accounts of Debtors, Creditors and Advances are subject to confirmation / reconciliation. The management does not expect any material difference affecting the financial statements on reconciliation / adjustments.

b) In the opinion of the Board, Current Assets, Loans and Advances have a value on realization in the ordinary course of business at least equal to the amount at which they are stated.

15. Disclosure as per amendment to clause 32 of the Listing Agreement. Loans and Advance in the nature of Loans given to Associates and others

Name of the Relationship Amount Outstanding Investment in shares Company As on 31-03-2010 of the Company (Rs. In Lacs) No. of Shares

Jyoti Ltd. Associate -Nil- 10,74,239