Notes to Accounts of Remi Sales & Engineering Ltd.

Mar 31, 2014

1. SHARE CAPITAL

a) Terms/Rights Attached to Equity Shares:

The company has only one class of equity shares having par value of Rs. 10/-each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

2. SHORT TERM BORROWING

[Secured by first hypothecation charge on entire current assets consisting of finished goods and receivables. Extension of Equitable Mortgage of land at Brahmanwel, Dist. Dhule, and hypothecation of Windmill. The Loans also guaranteed by two corporate bodies and two individuals.]

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Mar 31, 2013

1.1 Contingent Liabilities not provided for :

i) Bank Guarantees given Rs. 47,46,154.00 (P.Y. Rs. 10,76,891.00)

ii) Claim of third party towards rent not acknowledged by Company

Rs. 30,07,038.00 ( P.Y. Rs. 30,07,038.00) iii) Sales Tax demand disputed in appeal Rs. 59,47,031/- (P.Y. 59,47,031) iv) Bills discounted with State Bank of India

Rs.23,02,788/- (P.Y. NIL)

1.2 Payment to Micro, Small & Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

1.3 Segment Reporting: The Company operates in two segments namely (i) Trading and (ii) Wind Power Generation. Since revenue, result and assets of wind power generation are below the prescribed criteria and hence the same is not treated as reportable segment.

1.4 Value of Imports calculated on CIF basis: Rs.32,20,702/- (P.Y. Rs. 33,10,544/-)

1.5 Expenditure in foreign currency - Travelling expenses Rs.3,48,767/- (P.Y. 4,11,747/-)

- Payment of Imported Material Rs.32,20,702/- (P.Y 3310544/-)

- Sales promotion 274963 (P.Y. NIL)

1.6 Disclosures in accordance with Revised AS 15 on Employee Benefits".

(vi) The Overall expected rate of return on assets is based on the expectation of the Average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

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

1.7 Previous year figures are regrouped, rearranged and reclassified, wherever necessary to confirm with current year presentation.

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Mar 31, 2012

A) Terms/ Rights Attached to Equity Shares:

The company has only one class of equity shares having par value of Rs. 10/-each holder of equity shares is entitled to one vote per share. The compnay delcares and pays dividend in Indian Rupees.

In the event of liquidation of the company, the holders of the equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

1.1 Related parties disclosures:-

1. (a) Key Management Personnel : Shri Sandeep Kasera (b) Associate Concerns

Kuberkamal Ind. Invest. Ltd., Remi Securities Ltd., Rajendra Finance P. Ltd., Remi Finance & Invest. P. Ltd. Bajrang Finance Ltd.

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

Transactions carried out with related parties referred in above, in ordinary course of business.



(Rs. in Lacs) Related Parties Nature of Transactions Referred in Referred in 1(a) above 1(b) above.

Expenses

Interest paid - 2.41

(11.77)

Salaries 17.31

(14.85)

Finance

Loans and Advances taken - 20.00

(175.00)



1.2 Contingent Liabilities not provided for :

i) Bank Guarantees given Rs. 10,76,891.00 (P.Y. Rs.6,53,525.00)

ii) Guarantees given to bank on behalf of third party Rs. Nil

( P.Y.Rs. 4,30,00,000/-) iii) Claim of third party towards rent not acknowledged by Company

Rs. 30,07,038.00 ( P.Y. Rs. 30,07,038.00) iv) Sales Tax demand disputed in appeal Rs. 59,47,031/- (P.Y. Nil)

1.3 Payment to Micro, Small & Medium Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

1.4 Value of Imports calculated on CIF basis: Rs.33,10,544/- (P.Y. Rs. 41,18,441/-)

1.5 Expenditure in foreign currency - Travelling expenses Rs.4,11,747/- (P.Y. 1,09,557/-)

Payment of Imported Material Rs.33,10,544/- (P.Y. 79,46,861/-)

1.6. Disclosures in accordance with Revised AS – 15 on Employee Benefits".

(A) Defined Contribution Plans: The Company has recognized the following amounts in the Profit and Loss Account for the year.

For the year ended March 31, 2012

Contribution to Employees' Provident Fund 995730 (878615)

(iii) Amount recognized in the Balance Sheet including a reconciliation of the

Present Value of Defined Benefit Obligation and the Fair Value of Assets:-

(vi) The Overall expected rate of return on assets is based on the expectation of the Average long term rate of return expected on investments of the Fund during the estimated term of the obligations.

(vii) The Actual Return on Plan assets is as follows

Rs. (a) Actual return on plan assets 648037.00 (519512.00)

(viii) Following are the Principal Actuarial Assumptions used as at the balance sheet date.

Gratuity Leave Encashment

(a) Rate of Interest. 8.75% 0.09%

(8.25%). (8.25%).

(b) Salary growth 7.00% 7.00%

(6.50%). (6.50%).

(c) Withdrawal late 1% 1%

(1%) (1%)

(d) Mortality Rates LIC(1994-96) - LIC(1994-96) - Ultimate Ultimate Mortality Mortality Rate Rate



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

1.7 Till the year ended 31st March, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956, for preparation and presentation of its Financial Statements. During the year ended 31st March 2012, the revised Schedule VI to the Companies Act, 1956 has become applicable to the Company. The Company has reclassified previous year figures to confirm to this year's classification. The adoption of this revised Schedule VI does not impact recognition and measurement principles followed for preparation of Financial Statements.

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Mar 31, 2011

1) Other Long-term Employee Benefit:

Liability for Compensated Absences (unutilized leave benefit) is provided on the basis of valuation, as at the Balance Sheet date carried out by an independent actuary. The actuarial valuation method used for measuring the liability is the Projected Unit Credit method in respect of past service.

2) Termination benefits are recognized an expense as and when incurred.

3) The actuarial gains and losses arising during the year are recognized in the Profit and Loss Account of the year without resorting to any amortization.

i. Sales

Sales are net of sales tax, sales returns, claims and discount etc.

ii. Inventories

Goods in trade have been valued "At Cost" or market value whichever is less.

iii. Taxes on Income

Tax expense for the year comprises of current tax and deferred tax. Current tax provision has been determined on the basis of reliefs, deductions available under the Income Tax Act. Deferred Tax is recognized for all timing differences, subject to the consideration of prudence, applying the tax rates that are applicable on Balance Sheet date.

iv. Impairment of Assets

Impairment of assets are assessed at each balance sheet date and loss is recognized wherever the receivable amount of an assets less than its carrying amount.

v. Foreign Currency Transaction

a) Foreign currency transactions are recorded at exchange rate prevailing on the date of transaction.

b) Foreign currency receivable/payables at the year end an translated at exchange rates applicable as on that date.

c) Any gains or losses arising due to exchange differences at the time of translation or settlement are accounted for in the Profit & Loss Account.

vi. Provisions, Contingent Liabilities and Assets

Liabilities which are material and whose future outcome cannot be ascertained with reasonable certainty are treated as contingent and disclosed by way of notes on accounts. Contingent assets are neither recognized nor disclosed in the financial statements.

4. Closing stock of inventory includes stock of Rs. 83,84,040/- (P.Y. Rs.83,84,040/- lying with third party. The party cancelled the order after sale was effected and the products installed at their locations in earlier year. The matter is disputed in Court and the Company is hopeful of favorable order and hence no provision is made for decline in realizable value of the said products, if any.

5. Payment to Micro & Small Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

6. Disclosures in accordance with Revised AS 15 on Employee Benefits".

The Accounting Standard – 15 (Revised 2005) on "Employee Benefits" issued by the Institute of Chartered Accountants of India has been adopted by the Company effective from April 1, 2007.

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Mar 31, 2010

1. Contingent Liabilities not provided for:

i) Bank Guarantees given Rs. 7,85,107.00 (P.Y. Rs. 16,33,941.00)

ii) Guarantees given to bank on behalf of third party Rs.4,30,00,000/-

(P.Y.Rs. 8,46,00,000/-) iii) Claim of third party towards rent not acknowledged by Company Rs. 30,07,038.00 ( P.Y. Rs. 30,07,038.00).

2. Closing stock of inventory includes stock of Rs. 83,84,040/- (P.Y. Rs.83,84,040/- lying with third party. The party cancelled the order after sale was effected and the products installed at their locations in earlier year. The matter is disputed in Court and the Company is hopeful of favourable order and hence no provision is made for decline in realizable value of the said products, if any.

3. Payment to Micro & Small Enterprises are made in accordance with the agreed credit terms and to the extent ascertained from available information, there was no amount overdue beyond the period specified in Micro, Small and Medium Enterprises Development Act, 2006.

4. Value of Imports calculated on CIF basis: Rs. 2,04,30,097/- (P.Y. Rs. 1,07,68,041/-)

5. Expenditure in foreign currency - Travelling expenses Rs.2,18,857/- (P.Y. 1,69,025/-)

- Payment of Imported Material Rs.1,97,01,914/- (P.Y. 1,10,25,824/-)

6. Related parties disclosures:-

1. (a) Key Management Personnel :

Shri Sandeep Kasera

(b) Associate Concerns

Kuberkamal Ind. Invest. Ltd., Remi Securities Ltd., Rajendra Finance P. Ltd., Remi Finance & Invest. P. Ltd. Bajrang Finance Ltd.

Note: Related party relationship is as identified by the Company and relied upon by the Auditors.

7. Disclosures in accordance with Revised AS-15 on Employee Benefits".

The Accounting Standard -15 (Revised 2005) on "Employee Benefits" issued by the Institute of Chartered Accountants of India has been adopted by the Company effective from April 1,2007.

8. Disclosures in accordance with Revised AS -15 on Employee Benefits".

The Accounting Standard -15 (Revised 2005) on "Employee Benefits" issued by the Institute of Chartered Accountants of India has been adopted by the Company effective from April 1,2007.

9. Additional information pursuant to part IV schedule VI to the Companies Act, 1956 are as per Annexure enclosed.

10. Previous years figures have been regrouped and rearranged wherever necessary in order to make them comparable with current year figures.