Notes to Accounts of Sicagen India Ltd.

Mar 31, 2025

L.19 Provisions, contingent liabilities and contingent
assets

Provisions are recognised only when:

a) the company has a present obligation (legal
or constructive) as a result of a past event;

b) it is probable that an outflow of resources
embodying economic benefits will be
required to settle the obligation; and

c) a reliable estimate can be made of the
amount of the obligation.

Provision is measured using the cash flows
estimated to settle the present obligation and
when the effect of time value of money is
material, the carrying amount of the provision is
the present value of those cash flows.
Reimbursement expected in respect of
expenditure required to settle a provision is
recognised only when it is virtually certain that
the reimbursement will be received.

Where the unavoidable costs of meeting the
obligations under the contract exceed the
economic benefits expected to be received under
such contract, the present obligation under the
contract is recognised and measured as a
provision.

Warranties

Provisions for expected cost of warranty
obligations under legislation governing sale of
goods are recognised on the date of sale of the
relevant products at the Management''s best
estimate of the expenditure required to settle the
obligation which takes into account the empirical
data on the nature, frequency and average cost
of warranty claims and regarding possible future
incidences.

Financial assets and financial liabilities are
recognised when the Company becomes a party
to the contractual provisions of the instruments .

Financial assets and financial liabilities are initially
measured at fair value. Transaction costs that are
directly attributable to the acquisition or issue of
financial assets and financial liabilities (other than
financial assets and financial liabilities at fair value
through profit or loss) are added to or deducted
from the fair value of the financial assets or
financial liabilities, as appropriate, on initial
recognition. Transaction costs directly attributable
to the acquisition of financial assets or financial
liabilities at fair value through profit or loss are
recognised immediately in profit or loss.

Contingent liability is disclosed in case of:

a) a present obligation arising from past
events, when it is not probable that an

outflow of resources will be required to
settle the obligation; and

b) a present obligation arising from past
events, when no reliable estimate is
possible.

Contingent assets are disclosed where an inflow
of economic benefits is probable.

Provisions, contingent liabilities and contingent
assets are reviewed at each Balance Sheet date.

1.20 Commitments

Commitments are future liabilities for contractual
expenditure, classified and disclosed as follows:

a) estimated amount of contracts remaining
to be executed on capital account and not
provided for;

b) uncalled liability on shares and other
investments partly paid;

c) funding related commitment to subsidiary,
associate and joint venture companies; and

d) other non-cancellable commitments, if any,
to the extent they are considered material
and relevant in the opinion of
management.

Other commitments related to sales/
procurements made in the normal course of
business are not disclosed to avoid excessive
details.

1.21 Non-current assets held for sale

Non-current assets and disposal groups are
classified as held for sale if their carrying amount
is intended to be recovered principally through a
sale (rather than through continuing use) when
the asset (or disposal group) is available for
immediate sale in its present condition subject
only to terms that are usual and customary for
sale of such asset (or disposal group) and the sale
is highly probable and is expected to qualify for
recognition as a completed sale within one year
from the date of classification.

Non-current assets and disposal groups classified
as held for sale are measured at lower of their
carrying amount and fair value less costs to sell.

1.22 Statement of Cash Flows

Statement of Cash Flows is prepared segregating
the cash flows into operating, investing and
financing activities. Cash flow from operating
activities is reported using indirect method,
adjusting the net profit for the effects of:

i. changes during the period in inventories
and operating receivables and payables
transactions of a non-cash nature;

ii. non-cash items such as depreciation,
provisions, deferred taxes, unrealised
foreign currency gains and losses, and
undistributed profits of associates; and

iii. all other items for which the cash effects
are investing or financing cash flows.

Cash and cash equivalents (including bank
balances) shown in the Statement of Cash Flows
exclude items which are not available for general
use as on the date of Balance Sheet.

1.23 Key sources of estimation

The preparation of financial statements in
conformity with Ind AS requires that the
management of the company makes estimates
and assumptions that affect the reported
amounts of income and expenses of the period,
the reported balances of assets and liabilities and
the disclosures relating to contingent liabilities as
of the date of the financial statements. The
estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates include useful lives of
property, plant and equipment, Intangible assets,

allowance for doubtful debts/advances, future
obligations in respect of retirement benefit plans,
expected cost of completion of contracts,
provision for rectification costs, fair value
measurement etc. Difference, if any, between the
actual results and estimates is recognised in the
period in which the results are known.

1.24 Related Party Transaction

Terms and conditions of transactions with the
related parties

(1) Transactions with the related parties are
made on normal commercial terms and
conditions and at market rates.

(2) The Company is seconding its personnel to
Subsidiary Companies as per the terms and
conditions agreed between the Companies.
The cost incurred by the group towards
superannuation and employee benefits are
recovered from these Companies.

(3) Outstanding balances (other than loan) of
Subsidiaries and Associate at the year - end,
are unsecured and interest free.

This assessment is undertaken each financial year
through examining the financial position of the
related party and the market in which the related
party operates.

42 Contingent Liability

a Appeals pending at High Court for (i) the Assessement year 2009-10 for a demand of C 200 Lakhs ;(ii) for the
AY 2011-12 for a demand of C 1699 Lakhs;(iii) for the AY 2017-18 against reduction of losses with NIL
demand;(iv) Writ Petition with High Court for AY 2017-18 for allowability of Capital Loss for AY 2017-18.
Appeal filed with CIT(A) aganist a demand of C 39 Lakhs for the Assessement year 2015-16. (v) For the AY
2023-24 a demand of C 13.58 Lakhs raised by DCACIT on 30.03.2025. Subsequently Appeal was filed on
21.04.2025.

b Guarantees given by the bankers for performance of Contracts and others C 221.55 Lakhs (PY C 101.43 Lakhs).

44 DISCLOSURE OF FAIR VALUE MEASUREMENT

44.1 The fair values of financial assets and liabilities are determined at the amount at which the instrument could be
exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of
cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities,
short term loans from banks and other financial instruments approximate their carrying amounts largely due to
their short term maturities of these instruments.

45 ADDITIONAL REGULATORY INFORMATION

(a) The Title deeds of the immovable properties (including investment property,other than properties where
the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in
the name of the Company.

(b) As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets)
and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any),
hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule
III (revised) to the Companies Act, is not applicable.

(c) No proceedings have been initiated or pending against the Company for holding any Benami property
under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or
any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities
(Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary
shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever
by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like
to or on behalf of the Ultimate Beneficiaries except as stated in s.no. (i) & (ii).

(h) The company has not received any funds from any person(s) or entity(ies), including foreign entities
("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company
shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner
whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee,
security or the like on behalf of the Ultimate Beneficiaries.

(i) The Company does not have any transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,
1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(j) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the
Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful
defaulters issued by the Reserve Bank of India.

(k) The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic
returns filed by the Company with such banks are in agreement with the books of accounts of the Company.

(l) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of
Companies have been filed. No registration or satisfaction is pending at the year ended 31st March 2025.

(m) There are no transactions with the Companies whose name are struck off under Section 248 of The
Companies Act, 2013 or Section 560 of the Companies Act, 1956.

46. Financial risk management

The treasury function provides services to the business, co-ordinates access to domestic financial markets,
monitors and manages the financial risks relating to the operations through internal risk reports which analyse
exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest
rate risk and other price risk), credit risk and liquidity risk.

The Company''s principal financial liabilities comprise loans and borrowings in domestic currency, trade payables
and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The
Company''s principal financial assets include trade and other receivables.

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 resulting in a financial loss to the Company. Credit risk arises principally from
trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.

Trade receivables

The Company''s customer profile include public sector enterprises, state owned companies and large private
corporates. Accordingly, the Company''s customer credit risk is moderate. The Company''s average project execution
cycle is around 12 months.

General payment terms include mobilisation advance, monthly progress payments with a credit period ranging
from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions
are substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue
customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Cash and cash equivalents and deposits with banks

The Company has banking operations with highly rated banks including scheduled banks which are owned by
Government of India and Private Sector Banks. The risk of default with government controlled entities is considered
to be insignificant.

Provision for expected credit losses

Loss Allowance is measured using the expected credit loss model on assets where the probability of default is
high and the counter party''s capacity to meet the obligations is not strong using the expected credit loss model.
The Company has assets where the counter- parties have sufficient capacity to meet the obligation and where
the risk of default is very low. Assets are written off when there is no reasonable expectation of recovery, such as
debtor declaring bankruptcy or failing to engage in a repayment plan with the Company.

Where loans or receivables have been written off, the Company continues to engage in enforcement activity to
attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the 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 always have sufficient liquidity to meet its liabilities
when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage
to the Company''s reputation.

The Company manages liquidity risk through cash credit limits and undrawn borrowing facilities by continuously
monitoring forecast and actual cash flows.

The Company''s treasury department is responsible for managing the short term and long term liquidity
requirements of the Company. Typically the Company ensures that it has sufficient cash on demand to meet
expected operational expenses for a period of 60 days, including the servicing of financial obligations, this excludes
the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of
market risk management is to manage and control market risk exposures within acceptable parameters, while
optimising the return.

Interest rate risk

The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating
rate debt. While most of the Company''s outstanding debt in local currency is on fixed rate basis and hence not
subject to interest rate risk.

47. (a) The final dividend proposed in the previous year, declared and paid by the company during the year is in

accordance with Section 123 of the Act, as applicable.

(b) The Board of Director of the Company have proposed final dividend for the year, which is subject to the
approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in
accordance with Section 123 of the Act, as applicable.

48. Previous year''s figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2024

1.19 Provisions, contingent liabilities and contingent assets

Provisions are recognised only when:

a) the company has a present obligation (legal or constructive) as a result of a past event;

b) it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation; and

c) a reliable estimate can be made of the amount of the obligation.

Provision is measured using the cash flows estimated to settle the present obligation and when the effect of time value of money is material, the carrying amount of the provision is the present value of those cash flows. Reimbursement expected in respect of expenditure required to settle a provision is recognised only when it is virtually certain that the reimbursement will be received.

Where the unavoidable costs of meeting the obligations under the contract exceed the economic benefits expected to be received under such contract, the present obligation under the contract is recognised and measured as a provision.

Warranties

Provisions for expected cost of warranty obligations under legislation governing sale of goods are recognised on the date of sale of the relevant products at the Management''s best estimate of the expenditure required to settle the obligation which takes into account the empirical data on the nature, frequency and average cost of warranty claims and regarding possible future incidences.

Financial assets and financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instruments .

Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognised immediately in profit or loss.

Contingent liability is disclosed in case of:

a) a present obligation arising from past events, when it is not probable that an

outflow of resources will be required to settle the obligation; and

b) a present obligation arising from past events, when no reliable estimate is possible.

Contingent assets are disclosed where an inflow of economic benefits is probable.

Provisions, contingent liabilities and contingent assets are reviewed at each Balance Sheet date.

1.20 Commitments

Commitments are future liabilities for contractual expenditure, classified and disclosed as follows:

a) estimated amount of contracts remaining to be executed on capital account and not provided for;

b) uncalled liability on shares and other investments partly paid;

c) funding related commitment to subsidiary, associate and joint venture companies; and

d) other non-cancellable commitments, if any, to the extent they are considered material and relevant in the opinion of management.

Other commitments related to sales/ procurements made in the normal course of business are not disclosed to avoid excessive details.

1.21 Non-current assets held for sale

Non-current assets and disposal groups are classified as held for sale if their carrying amount is intended to be recovered principally through a sale (rather than through continuing use) when the asset (or disposal group) is available for immediate sale in its present condition subject only to terms that are usual and customary for sale of such asset (or disposal group) and the sale is highly probable and is expected to qualify for recognition as a completed sale within one year from the date of classification.

Non-current assets and disposal groups classified as held for sale are measured at lower of their carrying amount and fair value less costs to sell.

1.22 Statement of Cash Flows

Statement of Cash Flows is prepared segregating the cash flows into operating, investing and financing activities. Cash flow from operating activities is reported using indirect method, adjusting the net profit for the effects of:

i. changes during the period in inventories and operating receivables and payables transactions of a non-cash nature;

ii. non-cash items such as depreciation, provisions, deferred taxes, unrealised foreign currency gains and losses, and undistributed profits of associates; and

iii. all other items for which the cash effects are investing or financing cash flows.

Cash and cash equivalents (including bank balances) shown in the Statement of Cash Flows exclude items which are not available for general use as on the date of Balance Sheet.

1.23 Key sources of estimation

The preparation of financial statements in conformity with Ind AS requires that the management of the company makes estimates and assumptions that affect the reported amounts of income and expenses of the period, the reported balances of assets and liabilities and the disclosures relating to contingent liabilities as of the date of the financial statements. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates include useful lives of property, plant and equipment, Intangible assets,

allowance for doubtful debts/advances, future obligations in respect of retirement benefit plans, expected cost of completion of contracts, provision for rectification costs, fair value measurement etc. Difference, if any, between the actual results and estimates is recognised in the period in which the results are known.

1.24 Related Party Transaction

Terms and conditions of transactions with the related parties

(1) Transactions with the related parties are made on normal commercial terms and conditions and at market rates.

(2) The Company is seconding its personnel to Subsidiary Companies as per the terms and conditions agreed between the Companies. The cost incurred by the group towards superannuation and employee benefits are recovered from these Companies.

(3) Outstanding balances (other than loan) of Subsidiaries and Associate at the year - end, are unsecured and interest free.

This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged.

Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously.

The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

The Expected Contribution for the next year to Defined Benefit Plans (Gratuity- Funded) is ? 17.44 lakhs.

The Weighted Average Duration (gratuity) as at the Valuation date is 3.11 years.

The Weighted Average Duration (leave benefits) as at valuation date is 3.54 years.

41 Re lated Pa rty Tra nsactio n

a. List of related parties where control exists Name of the Related Party Wholly owned Subsidiary

Wilson Cables Private Limited

South India House Estates & Properties Limited

Danish Steel Cluster Private Limited

Enterprise over which a Director is able to exercise significant influence

Firstgen Distribution Private Limited SIDD Life Sciences Private Limited Medihub Sciencetec Private Limited i3 Securities Private Limited

Southern Petrochemical Industries Corporation Limited Tuticorin Alkali Chemicals & Fertilizers Limited A M Foundation Navia Markets Ltd

Enterprise over which a Director''s Relative is a partner and is able to exercise significant influence

South India Investments & Associates

45 ADDITIONAL REGULATORY INFORMATION

(a) The Title deeds of the immovable properties (including investment property,other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) are held in the name of the Company.

(b) As per the Company''s accounting policy, Property, Plant and Equipment (including Right of Use Assets) and intangible assets are carried at historical cost (less accumulated depreciation & impairment, if any), hence the revaluation related disclosures required as per Additional Regulatory Information of Schedule III (revised) to the Companies Act, is not applicable.

(c) No proceedings have been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(d) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

(e) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) that the Intermediary shall (i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries except as stated in s.no. (i) & (ii).

(h) The company has not received any funds from any person(s) or entity(ies), including foreign entities ("Funding Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, directly or indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party ("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(i) The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

(j) The Company is not declared as willful defaulter by any bank or financial institution (as defined under the Companies Act, 2013) or consortium thereof or other lender in accordance with the guidelines on willful defaulters issued by the Reserve Bank of India.

(k) The Company has sanctioned facilities from banks on the basis of security of current assets. The periodic returns filed by the Company with such banks are in agreement with the books of accounts of the Company.

(l) All applicable cases where registration of charges or satisfaction is required to be filed with Registrar of Companies have been filed. No registration or satisfaction is pending at the year ended 31st March 2024.

(m) There are transactions with the Companies whose name a re struck off under Section 248 of The Companies Act, 2013 or Section 560 of the Companies Act, 1956 and the details are as follows:

46. Financial risk management

The treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risks relating to the operations through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company''s principal financial liabilities comprise loans and borrowings in domestic currency, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include trade and other receivables.

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 resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.

Trade receivables

The Company''s customer profile include public sector enterprises, state owned companies and large private corporates. Accordingly, the Company''s customer credit risk is moderate. The Company''s average project execution cycle is around 12 months.

General payment terms include mobilisation advance, monthly progress payments with a credit period ranging from 45 to 90 days and certain retention money to be released at the end of the project. In some cases retentions are substituted with bank/corporate guarantees. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

Loans and advances

Cash and cash equivalents and deposits with banks

The Company has banking operations with highly rated banks including scheduled banks which are owned by Government of India and Private Sector Banks. The risk of default with government controlled entities is considered to be insignificant.

Provision for expected credit losses

Loss Allowance is measured using the expected credit loss model on assets where the probability of default is high and the counter party''s capacity to meet the obligations is not strong using the expected credit loss model. The Company has assets where the counter- parties have sufficient capacity to meet the obligation and where the risk of default is very low. Assets are written off when there is no reasonable expectation of recovery, such as debtor declaring bankruptcy or failing to engage in a repayment plan with the Company.

Where loans or receivables have been written off, the Company continues to engage in enforcement activity to attempt to recover the receivable due. Where recoveries are made, these are recognised in profit or loss.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the 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 always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company manages liquidity risk through cash credit limits and undrawn borrowingfacilities by continuously monitoring forecast and actual cash flows.

The Company''s treasury department is responsible for managing the short term and long term liquidity requirements of the Company. Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Financing arrangements

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

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk

The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating rate debt. While most of the Company''s outstanding debt in local currency is on fixed rate basis and hence not subject to interest rate risk.

47. (a) The final dividend proposed in the previous year, declared and paid by the company during the year is in

accordance with Section 12S of the Act, as applicable.

(b) The Board of Director of the Company have proposed final dividend for the year, which is subject to the approval of the members at the ensuing Annual General Meeting. The amount of dividend proposed is in accordance with Section 123 of the Act, as applicable.

48. Previous year''s figures have been regrouped and rearranged whenever necessary.

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Mar 31, 2018

Notes to Investments

1. During the year, the preference shares held in Green Star Fertilizers Ltd have been completely redeemed.

2. During the year, the Company has acquired 28,33,880 equity shares representing 40% equity capital of Danish Steel Cluster Private Ltd and completed 100% acquisition.

3. During the year, the Company has received 16,48,000 equity shares of Mercantile Ventures Ltd (MVL) valuing Rs.4.12 crores, originally allotted to Manali Petrochemicals Ltd (MPL) against the old outstanding dues payable by MVL, which was adjusted against the payment due from MPL towards supply of materials by the Company before demerger.

4. The equity shares held in Southern Petrochemicals Industries Corporation Ltd which are considered as strategic in long term investments have been duly revalued at market value as per Ind AS.

5. All Quoted Investments have been fair valued at the prevailing Market Price as per Ind AS.

6. All Investments are fully paid up.

7. Refer Note 39 for valuation of Investments relating to First Time Adoption of Ind AS

The company is making provisions for loans & advances which have been outstanding for a period of three years or more based on Expected Credit Loss (ECL) model. However, any advances with cetainty of loss is provided for even with lower aging.

The Company has a detailed review mechanism for overdue customer receivables at various levels within the organisation to ensure proper attention and focus for realisation.The company is making provisions for trade receivables outstanding for a period of three years or more based on Expected Credit Loss (ECL) model. However, any trade receivable with certainty of loss is provided for even with lower aging of debt.

8. 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: NIL

9. Credit facilities availed from Banks/NBFCs by way of Channel Financing arrangements for the Company were secured by way of hypothecation of relevant stocks.

10. Working capital facilities availed were secured by hypothecation of stocks and receivables of all Divisions and creation of equitable mortgage by way of deposit of title deeds of certain immovable assets of the Company as collateral security.

11. Contingent Liability

a. Appeal is pending at High Court for the Assessement year 2009-10 for a demand of Rs.200 Lakhs.Appeal filed with ITAT (A) for a demand of Rs.1699 Lakhs for the Assessment year 2011-12. Appeal filed with CIT (A) for a demand of Rs.151 Lakhs for the Assessement year 2015-16. Provision has not been made for any of the above demands.

b. Guarantees given by the bankers for performance of Contracts and others Rs.572.45 Lakhs (Rs.378.20 Lakhs).

A) The Company has identified Business Segment as the Primary Segment and Geographic Segment as the Secondary Segment for disclosure.

The Company’s Primary segment has been identified as business segment based on nature of products, returns and Internal Business Reporting System as per Ind AS 108.

B) The Business Segments identified are Trading and Manufacturing.

C) The Geographical Segment considered for disclosure are India and Rest of the World. All sales facilities are located in India. Geographical segments are based on the location of the customer who is invoiced or in relation to which the revenue is otherwise recognised.

D) Segmental assets include all the operating assets used by the respective segment and principally consists of operating cash, debtors, inventories and fixed assets.

NOTES TO FIRST TIME IND AS ADOPTION RECONCILIATION :

Items relating to total equity and Other comprehensive income

(a) Impact of Fair valuation as deemed cost for Property, Plant and Equipment: Under Indian GAAP, the property, plant and equipment is carried at cost less accumulated depreciation and amortisation. Ind AS 101 allows entity to elect to measure Property, Plant and Equipment on the transition date at its fair value or previous GAAP carrying value (book value) as deemed cost. Entire classes of PPE have been fair valued as on date of transition. The resulting impact of fair valuation is reflected in the reserves.

(b) Impact on Fair Valuation of Investments: As per IND AS 101, the fair value of investments in equity is determined by reference to their quoted prices on the reporting date. In the absence of the quoted price, the fair value of the equity is measured using valuation techniques.

(c) Impact on Trade Receivables and Loans and advances: The Company is making provisions for trade receivables and loans and advances outstanding for a period of three years or more based on Expected Credit Loss (ECL) model. However, any trade receivable or advance with certainty of loss is provided for even with lower aging.

(d) Derecognition of Proposed Dividend: Proposed Dividend has to be recognized upon approval by the shareholders in the Annual General Meeting. Accordingly, Proposed Dividend has been reversed with corresponding credit to Equity as at the date of transition i.e. 1^st April 2016 and recognized in the Equity during the year ended 31^st March 2017 as declared and paid.

(e) Other comprehensive income: Under Indian GAAP, the Company has not presented the other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP loss to loss as per Ind AS. Further, Indian GAAP loss is reconciled to total comprehensive income as per Ind AS.

12 DISCLOSURE OF FAIR VALUE MEASUREMENT:

12.1 The fair values of financial assets and liabilities are determined at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Fair value of cash and short-term deposits, trade and other short-term receivables, trade payables, other current liabilities, short term loans from banks and other financial instruments approximate their carrying amounts largely due to the short term maturities of these instruments.

Valuation techniques used to determine the fair value

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 significant effect on the recorded fair value that are not based on observable market data.

13. Financial risk management

The treasury function provides services to the business, co-ordinates access to domestic financial markets, monitors and manages the financial risks relating to the operations through internal risk reports which analyse exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and other price risk), credit risk and liquidity risk.

The Company’s principal financial liabilities comprises of loans and borrowings in domestic currency, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade and other receivables.

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 resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.

Trade receivables

The Company primarily sells goods to customers comprising, of dealers, institutions, public sector enterprises, state owned companies and large private corporates. Accordingly, the Company’s customer credit risk is low. General payment terms include a credit period ranging from 60 to 120 days. On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables and unbilled revenues. The provision matrix takes into account available external and internal credit risk factors such as credit defaults, credit ratings from international credit rating agencies and the Company’s historical experience for customers. Management considers the factors that may influence the credit risk of its customer base, including the default risk of the industry.

Loans and advances

Cash and cash equivalents and deposits with banks

The Company has banking operations with highly rated banks including scheduled banks which are owned by Government of India and Private Sector Banks. The risk of default with government controlled entities is considered to be insignificant.

Provision for expected credit losses

For financial assets loss allowance is measured using 36 months expected credit loss model. However, any trade receivable with certainty of loss is provided for even with lower aging of debt.

The Company has assets where the counter- parties have sufficient capacity to meet the obligations and where the risk of default is very low.

Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the 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 always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company manages liquidity risk through cash credit limits and undrawn borrowing facilities by continuously monitoring forecast and actual cash flows.

The Company''s treasury department is responsible for managing the short term and long term liquidity requirements of the Company. Typically the Company ensures that it has sufficient cash on demand to meet expected operational expenses for a period of 60 days, including the servicing of financial obligations, this excludes the potential impact of extreme circumstances that cannot reasonably be predicted, such as natural disasters.

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company''s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

Interest rate risk

The Company''s exposure to changes in interest rates relates primarily to the Company''s outstanding floating rate debt. While most of the Company''s outstanding debt in local currency is on fixed rate basis and hence not subject to interest rate risk.

14. Previous year''s figures have been regrouped and rearranged in line with Ind AS wherever necessary.

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Mar 31, 2017

1 16,02,350 equity shares of Southern Petrochemical Industries Corporation Ltd (SPIC) pledged with lenders prior to demerger and pending under dispute were released through settlement of outstanding dues as per the Memorandum of Compromise entered into with lenders along with other entities. Further, the dispute over 38,23,600 equity shares of SPIC pledged with lenders prior to demerger was settled and the value of that shares adjusted against the outstanding dues by the the lenders prior to demerger was taken into account.

2 3,85,104 equity shares of SPIC pledged prior to demerger were released and the said shares are in the process of name transfer.

3 1,00,00,000 equity shares of South India House Estates & Properties Ltd vested in the books of the Company under the earlier demerger scheme and pending under dispute for name transfer were registered in Company''s favour upon settlement of outstanding dues.

4 No provision is considered necessary for short fall in market value of certain quoted investments ascertained on individual basis amounting to Rs.862.16 Lakhs (Rs.981.34 Lakhs) as a significant portion of it relates to companies promoted by the Company which are considered temporary in nature.

5 Certain investments held in other entities are considered as strategic long term investments and hence the evaluation of intrinsic value of such long term investments will be undertaken by the Company in an appropriate manner in future.

6. Contingent Liability

7. Appeals filed with ITAT (A) for a demand of Rs.1699 Lakhs (Assessment year 2011-12). Provision has not been made for the demand.

8. Guarantees given by the bankers for performance of Contracts and others Rs.378.20 Lakhs C265.58 Lakhs ).

9. During the year the company had obtained approval from the board for adoption of the IND AS which would be applicable from the Financial Year 2017-18 with the transition date as 1^st April 2016.

10. Previous year’s figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2015

1. Contingent Liability

a Appeals filed with ITAT for a likely demand of Rs. 200 Lakhs (Assessment year 2009-10). Appeals filed with CIT(A) for a demand of Rs. 1699 Lakhs (Assessment year 2011-12). Provision has not been made for both demands. b Guarantees given by the bankers for performance of Contracts and others Rs.447.04 Lakhs (Rs.415.63 Lakhs).

2. Previous year's figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2014

1. Out of 30,17,349 equity shares of Southern Petrochemical Industries Corporation Ltd (Spic), 19,87,454 shares pledged with lenders prior to demerger are yet to be released and out of which, 16,02,350 shares are under dispute and still pending for adjudication before the Hon''ble High Court of Madras.

2. Further 38,23,600 shares of Spic pledged with lendor prior to demerger and entitled to be transferred to the books of accounts of the Company are also under dispute and pending for adjudication before the Hon''ble High Court of Madras. In the event of the above dispute being settled in Company''s favour, the aforesaid shares shall be taken into account in the books of the Company on the date of settlement.

3. 1,00,00,000 Equity shares of South India House Estates & Properties Ltd vested in the books of the Company under the earlier demerger scheme, are yet to be registered in the name of the Company due to some pending litigations. The name transfer will be effected in Company''s in favour after obtaining necessary judicial clearance from the Hon''ble High Court of Madars as specified in Clause 7.5 of the earlier demerger Scheme.

4. No provision is considered necessary for short fall in market value of certain quoted investments ascertained on individual basis amounting to Rs.1046.97 Lakhs (Rs.848.61 Lakhs) significant portion of which relates to companies promoted by the Company which considered temporary in nature.

5. The Company is in the process of evaluating the intrinsic value of its long term investment held by it and its subsidiaries and towards this the company is identifying an independent expert who will offer opinion on Fair value of the various shares. The company shall endeavor to obtain this report in ensuing financial year. On receipt of the above report, necessary revaluation of investment shall be undertaken.

2. Contingent Liability

a Appeals filed with ITAT for a likely demand of Rs.200 Lakhs (Assessment year 2009-10). Appeals filed with CIT(A) for a demand of Rs.1699 Lakhs (Assessment year 2011-12). Provision has not been made for both the demands.

b The Company has received legal notice from the lawyers of M/s Innovative Salary Services and Payroll Advisory Private Limited (ISS) in respect of certain matters specified in the Share Purchase Agreement ("SPA") executed between the Company & its subsidiary with ISS on various matters including collection of receivables.

3. Guarantees given by the bankers for performance of Contracts and others Rs. 415.63 Lakhs (Rs. 585.51 Lakhs).

4. Sales Tax demand together with penalties under appeal amounts to Nil (Rs.1.32 Lakhs ).

5. Provision for taxation includes Rs. 0.60 Lakhs (Rs. 0.60 Lakhs) towards wealth tax.

6. Previous year''s figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2013

1.1 Out of 30,17,349 equity shares in Southern Petrochemical Industries Corporation Ltd (Spic) as shown under the investment schedule, 19,87,454 equity shares of Spic pledged with lenders prior to demerger are yet to be released and out of which, 16,02,350 equity shares of Spic are under dispute and still pending for adjudication before the Hon''ble High Court of Judicature at Madras.

1.2 Further 38,23,600 equity shares of Spic pledged with prior to demerger and entitled to be transferred to the books of accounts of the Company under earlier demerger scheme, are not shown in the schedule of investments as they are under dispute and still pending for adjudication before the Hon''ble High Court of Madras. In the event of the above dispute being settled in Company''s favour, the aforesaid shares shall be taken into account in the books of the Company from the effective date of settlement.

1.3 1,00,00,000 equity shares of South India House Estates & Properties Ltd vested in the books of the Company under the earlier demerger scheme, are yet to be registered in the name of the Company due to some pending litigations. The name transfer will be effected in Company''s favour after obtaining necessary judicial clearance from the Hon''ble High Court of Madras as specified in Clause 7.5 of the earlier demerger scheme.

1.4 23,60,205 equity shares of MCC Finance Limited vested in the Company under earlier demerger scheme have till FY 2011-12 not been accounted in the books since the value of investments relating to MCC Finance Limited were not realizable as Company was in liquidation.The shares of MCC Finance Limited (Now renamed as Mercantile Ventures Limited) are now valued at Rs.10/- each based on the price at which allotments were made to various stakeholders under the scheme of arrangement sanctioned by Hon''ble High Court of Madras. This upward valuation of shares of Mercantile Ventures Limited comes to Rs.2.36 crores which has been taken to Exceptional Items under Schedule 27. It may be noted that Accounting Standard - 13 "Accounting for Investments" permits reversal of previous permanent diminution in the value of Long Term Investments. The Company has complied with the principles enunciated under this standard.

1.5 No provision is considered necessary for short fall in market value of certain quoted investments ascertained on individual basis amounting to Rs.848.61 Lakhs (Rs.697.75 Lakhs) significant portion of which relates to Companies promoted by the Company which is considered temporary in nature.

2.1 Other Bank Balances include Margin Money which is due for realization after 12 months.

2.2 The claim pending with Consumer Appellate Tribunal as at FY 2011-12 was decided against the Company during the year. The attendant expenditure is also charged off.

3.1 The Other Non-Operative Income includes the following write back made during the year:

a). Rs.1.59 Crores on account of Consultancy charges, provision made in the earlier years.

b). Rs.1.57 Crores on account of Sales Tax payments for earlier years. This liability is no longer payable on account of settlement under Samadhaan Scheme.

4. Contingent Liability

a Income Tax - For the Assessment year 2009-10 we have filed before CIT-Appeals against the Department order for treatment of Long Term Capital Gain as Short Term Capital Gain. The amount disputed is Rs.1377 Lakhs for which tax provision has not been made.

b The Company has received legal notice from lawyers of M/s Innovative Salary Services and Payroll Advisory Private Limited (ISS) in respect of certain matters specified in the Share Purchase Agreement ("SPA") executed between the Company & its subsidiary with ISS on various matters including collection of receivables.

5. Guarantees given by the bankers for performance of Contracts and others Rs. 585.51 Lakhs (Rs.518.29 Lakhs).

6. Sales Tax demand together with penalties under appeal amounts to Rs.1.32 Lakhs (Rs.1.72 Lakhs).

7. Provision for taxation includes Rs. 0.60 Lakhs (Rs.0.33 Lakhs ) towards Wealth Tax.

8. Previous year''s figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2012

1.1 Term loan facility availed from a Bank during the current FY 2011-12 for the purpose of working capital requirement as well as modernization and expansion of existing showrooms and service stations of commercial vehicles division was secured by way of creation of equitable mortgage by deposit of title deeds of certain immovable assets of the company as collateral security.

1.2 Working capital facilities availed from a Bank were secured by hypothecation of stocks and receivables of all divisions except commercial vehicles division and creation of equitable mortgage by way of deposit of title deeds of certain immovable assets of the Company as collateral security.

2.1 Others include advance from customers and others and interest accrued.

3.1 Credit facilities availed from Banks/NBFCs by way of Channel Financing/Inventory Funding Arrangements for commercial vehicles division were secured by hypothecation of vehicles stocks.

4.1 Other payable includes statutory dues, security deposits and advance from customers.

4.2 During the year, the Company has acquired 50 lakhs 11 % Non-convertible Preference Shares of Creenstar Fertilizers Ltd amounting to Rs 5000 lakhs. The above investment was made pursuant to the special resolution dated 21.10.2011 passed by the shareholders thro' postal ballot.

4.3 As at 01,04.2011, the Company has acquired 100% equity capital of M/s Wilson Cables Private Ltd, Singapore and thus, Wilson Cables has become a wholly owned subsidiary of the Company with effect from 01.04.2011.

4.4 1987454 equity shares of Southern Petrochemical Industries Corpn. Ltd pledged with lenders prior to demerger are yet to be released and out of which, 1602350 shares are under dispute and still pending for adjudication before the Hon'ble High Court of Judicature at Madras.

4.5 3823600 equity shares of Southern Petrochemical Industries Corpn. Ltd, pledged with lenders prior to

demerger and entitled to be transferred to the books of accounts of the Company under earlier demerger scheme, are not shown in the schedule of investments as they are under dispute and still pending for adjudication before the Hon'ble High Court of Madras. In the event of the above dispute being settled in Company's favour, the aforesaid shares shall be taken into account in the books of the Company from the effective date of settlement.

4.6 2450 equity shares of Southern Petrochemical Industries Corpn. Ltd and 63 equity shares of First Leasing Co. of India Ltd which are erroneously lying in the books and not physically available with the Company have been eliminated from the books and rectified during the year.

4.7 The investment value of 5000 equity shares of Coffee Products (India) Ltd which are considered not realizable have been written off this year.

4.8 10000000 equity shares of South India House Estates & Properties Ltd vested in the books of the Company under the earlier demerger scheme, are yet to be registered in the name of the Company due to some pending litigations. The name transfer will be effected in Company's favour after obtaining necessary judicial clearance from the Hon'ble High Court of Madras as specified in Clause 7.5 of the earlier demerger scheme.

4.9 2360205 equity shares of MCC Finance Ltd vested in the Company under the earlier demerger scheme were not accounted in the books of accounts since the value of the investments relating to MCC Finance Ltd, a Company which is in liquidation, was considered not realizable. During the year, the said MCC Finance Ltd has filed an application along with a scheme of arrangement before the Hon'ble High Court of Judicature at Madras for settlement of outstanding dues to its creditors and revival of that Company. In the event of any dues being settled or any steps being taken for revival upon sanction of the above scheme by the Court, the aforesaid equity shares shall be taken into account in the books of accounts of the Company from the effective of date of settlement and revival.

4.10 No provision is considered necessary for short fall in market value of certain quoted investments ascertained on individual basis amounting to Rs 697.75 lakhs (Rs 756.20 lakhs) significant portion of which relates to Companies promoted by the Company which is considered temporary in nature.

4.11 5,00,000 9% Redeemable Convertible Preference Shares of Rs 100 each held in EDAC Engineering Ltd aggregating Rs 500 lakhs were redeemed on partial redemption basis during the year.

5.1 Other Bank Balances include Margin Money which is due for realization after 12 months.

5.2 Claim pending with Consumer Appellate Tribunal for adjudication.

6. CONTINGENT LIABILITY

The Income Tax Assessment of the Company has been completed up to the Assessment Year 2009-10. The disputed demand outstanding up to the said assessment year is Rs 437 lakhs. Based on the decision of the Appellate Authority & the interpretation of other relevant provisions, the Company has been legally advised that the demand is likely to be either decreased or substantially reduced and accordingly no provision has been made.

7 Guarantees given by the bankers for performance of Contracts and others Rs 518.29 lakhs (Rs 436.35 lakhs).

8 Letter of credit outstanding for purchase of materials is Rs Nil (Rs 25.04 lakhs)

9 Sales Tax demand together with penalties under appeal amounts to Rs Nil (Rs 1.72 lakhs)

10 Provision for taxation includes Rs 0.33 lakhs (Rs 0.31 lakhs) towards wealth tax.

11 Previous year's figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2011

1 In accordance with accounting Standard-29, the following is considered as Contingent Liability and Provision a Sales tax and Income tax demands together with penalties under appeal amounts to Rs.1.72 lakhs. (Rs.1.72 lakhs)

b Guarantees given by bankers for Performance of Contracts and others- Rs.436.35 lakhs. (Rs.227.14 lakhs)

2 Letter of Credit outstanding for purchase of materials is Rs.25.04 (Rs. Nil).

3 Investments

No provision is considered necessary for shortfall in market value of certain quoted investments ascertained on individual basis amounting to Rs.756.20 lakhs (Rs.630.88 lakhs) significant portion of which relate to companies promoted by the Company which is considered temporary in nature.

4 Sundry Debtors, Loans and Advances and Deposits include certain overdue and confirmed balances. Some of the accounts are under reconciliation. These include

a Rs.405.82 lakhs (Rs.1238.15 lakhs) covered by court cases under arbitration.

b Advance to a subsidiary amounting to Rs.5548.13 lakhs (Rs.6727.54 lakhs) is considered good and recoverable as the intrinsic value of the investments held by that company are more than the values stated in the books of that company.

5 Provision for taxation includes Rs.0.31 lakhs (Rs.0.16 lakhs) towards Wealth tax.

6 Balance with central excise authorities includes unutilized cenvat credit of Rs.7.55 lakhs (Rs.15.45 lakhs).

7 Letters of confirmation of balances in personal accounts of suppliers, debtors and principals, loans and advances and in-operative bank accounts have been called for and where not received is being followed up.

8 During the year, the Company has divested its stake held in SDB Cisco(India) Ltd. on 09.08.2010 and as a result, SDB Cisco and its subsidiary viz. Modern Protection and Investigations Ltd, ceased to be the subsidiaries of the Company w.e.f. 09.08.10.

9 Events occurring after the Balance Sheet date - The company has acquired 100% of the equity of M/s Wilson Cables Private Limited, Singapore as at 01.04.11 and this company will become a wholly owned subsidiary for the year ending 31.03.12.

10 Previous year's figures have been regrouped and rearranged wherever necessary.

11 Related Party Disclosure

1 Related parties where control exists

Subsidiary Companies

South India House Estates and Properties Ltd.

SDB Cisco (India) Ltd.

Modern Protection & Investigations Ltd. (subsidiary of SDB Cisco)

2 Other related parties with whom trade transactions have taken place during the year Key Management Personnel

S Arumugam Managing Director

Managerial Remuneration Rs.35.00 lakhs p.a. (Rs.30 lakhs p.a.)

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Mar 31, 2010

1 In accordance with Accounting Standard -29, the following is considered as Contingent Liability and Provision.

a Sales tax and Income tax demands together with penalties under appeal amounts to Rs.1.72 lakhs. (Rs.1.72 lakhs)

b Guarantees given by bankers for Performance of Contracts and others- Rs.227.14 lakhs (Rs.272.60 lakhs).

2 Letter of Credit outstanding for purchase of materials is Nil (Rs. 148.03 lakhs).

3 Investments

No provision is considered necessary for shortfall in market value of certain quoted investments ascertained on individual basis amounting to Rs.630.88 lakhs (Rs.1047.61 lakhs) significant portion of which relate to companies promoted by the Company which is considered temporary in nature.

4 Sundry Debtors, Loans and Advances and Deposits include certain overdue and confirmed balances. Some of the accounts are under reconciliation. These include

a Rs. 1238.1 5 lakhs (Rs.2392.54 lakhs) covered by court cases under arbitration.

b Advance to a subsidiary amounting to Rs.6727.54 lakhs (Rs.6921.16 lakhs) is considered good and recoverable as the intrinsic value of the investments held by that company are more than the values stated in the books of that company.

5 Provision for taxation includes Rs.0.16 lakhs (Rs.0.10 lakhs) towards Wealth tax.

6 Balance with central excise authorities includes unutilised cenvat credit of Rs. 1 5.45 lakhs (Rs.1.81 lakhs).

7 Letters of confirmation of balances in personal accounts of suppliers, debtors and principals, loans and advances and in-operative bank accounts have been called for and where not received is being followed up.

8 Previous years figures have been regrouped and rearranged wherever necessary.

9 Related Party Disclosure

1 Related parties where control exists

Subsidiary Companies

South India House Estates and Properties Ltd.

SDB Cisco (India) Ltd.

Modern Protection & Investigations Ltd.

2 Other related parties with whom trade transactions have taken place during the year Key Management Personnel

S Arumugam Director and CEO * ;

* Designation was changed as Managing Director with revised terms w.e.f 01.04.10