Notes to Accounts of SPEL Semiconductor Ltd.

Mar 31, 2025

Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37)

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of
a past event and it is probable that an outflow of resources embodying economic benefits will be required to
settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are discounted, if the effect of the time value of money is material, using pre-tax rates that reflects
the risks specific to the liability. When discounting is used, an increase in the provisions due to the passage
of time is recognised as finance cost. These provisions are reviewed at each Balance Sheet date and
adjusted to reflect the current best estimates.

Necessary provision for doubtful debts, claims, etc., are made if realisation of money is doubtful in the
judgement of the Management.

Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed
by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the
Company or a present obligation that is not recognized because it is not probable that an outflow of
resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases
where there is a liability that cannot be recognized because it cannot be measured reliably. Contingent
liabilities are disclosed separately.

Show cause Notices issued by various Government authorities are considered for evaluation of contingent
liabilities only when converted into demand.

Contingent Assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature
of the contingent assets at the end of the reporting period, and, where practicable, an estimate of their
financial effect. Contingent assets are disclosed but not recognized in the financial statements.

Details of contingent liabilities and contingent assets are tabulated as follows (? in Lakhs)

Non - Current Assets Held for Sale: (Ind AS 105)

Non-current assets or disposal groups comprising of assets and liabilities are classified as ‘held for sale
’ when all of the following criteria''s are met:

i. Decision has been made to sell.

ii. The assets are available for immediate sale in its present condition.

iii. The assets are being actively marketed and

iv. Sale has been agreed or is expected to be concluded within 12 months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the
lower of its carrying value and fair value less costs to sell. Non-current assets held for sale are not
depreciated or amortized.

Operating Segment Reporting (Ind AS 108)

The Company is engaged in the business of "wafer sort, assembly, test and drop-shipment services of IC
chips." and therefore, has reported under each reportable segment as per Ind AS 108 "Operating
Segments"

Financial Instrument: (Ind AS 109)

Financial Assets^

Initial recognition and measurement

Financial assets are measured at fair value on initial recognition, except for trade receivables that do not
contain a significant financing component which are initially measured at transaction price. Transaction
costs that are directly attributable to the acquisition of financial assets, which are not at fair value through
profit or loss, are added to the fair value on initial recognition.

Subsequent measurement

All recognised financial assets are subsequently measured in their entirety either at amortised cost or at
fair value depending on the classification of the financial assets.

Where financial assets are measured at fair value, gains and losses are either recognised entirely in the
statement of profit and loss (i.e.. fair value through profit or loss or ‘FVTPL''), or recognised in other
comprehensive income (i.e. fair value through other comprehensive income or ‘FVTOCI’).

A financial asset is measured at amortised cost (net of any write down for impairment) if it is held within a
business model whose objective is to hold the asset in order to collect contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that represent solely
payments of principal and interest on the principal amount outstanding.

A financial asset is measured at FVTOCI if it is held within a business model whose objective is achieved
by both collecting contractual cash flows and selling financial assets and the contractual terms of the
financial asset give rise on specified dates to cash flows that represents solely payments of principal and
interest on the principal amount outstanding.

All other financial assets are measured at fair value through profit or loss.

All equity investments are measured at fair value, with fair value changes recognised in the statement of
profit and loss, except for those equity investments for which the entity has elected to present fair value
changes in other comprehensive income. However, dividend on such equity investments are recognised in
statement of profit and loss when the Company’s right to receive payment is established.

Investment in associates, joint venture and subsidiaries

The Company accounts for its investment in subsidiaries, associates and joint venture, at cost less
impairment loss except where investments is accounted for in accordance with Ind AS 105, Non-current
Assets Held for Sale and Discontinued Operations, when they are classified as held for sale.

Impairment of Financial Assets:

The Company uses ‘Expected Credit Loss’ (ECL) model, for evaluating impairment of financial assets other
than those measured at fair value through profit and loss. Expected credit losses are measured through a
loss allowance at an amount equal to:

• The 12 months expected credit losses (expected credit losses that result from those default events on
the financial instrument that are possible within 12 months after the reporting date); or

• Full lifetime expected credit losses (expected credit losses that result from all possible default events
over the life of the financial instrument).

For trade receivables the Company applies a simplified approach under which loss allowance is
recognised based on expected lifetime ECL losses to be recognised on each reporting date. The Company
uses a provision matrix that is based on its historical credit loss experience adjusted for relevant forward¬
looking factors. For other assets, the Company uses 12 months ECL to provide for impairment loss were
there is no significant increase in credit risk. If there is significant increase in credit risk since initial
recognition, full lifetime ECL is used.

De-recognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the
financial asset expire or it transfers the financial asset, and the transfer qualifies for de-recognition under
Ind AS 109.

Financial Liabilities

Initial recognition and measurement

Financial liabilities are measured at fair value on initial recognition. Transaction costs that are directly
attributable to the issue of financial liabilities, which are not at fair value through profit or loss, are
deducted from the fair value on initial recognition.

The Company’s financial liabilities include trade and other payables, loans and borrowings including bank
Overdrafts, and derivative financial instruments.

Subsequent measurement

Financial liabilities are classified as measured at amortised cost or fair value through profit or loss (‘FVTPL’).
A financial liability is classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is
designated as such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net
gains and losses, including any interest expense, are recognised in profit or loss.

Other financial liabilities are subsequently measured at amortised cost using the effective interest method.
Interest expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss
on de-recognition is also recognised in profit or loss.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or
expires. When an existing financial liability is replaced by another from the same lender on substantially
different terms, or the terms of an existing liability are substantially modified, such an exchange or
modification is treated as the de-recognition of the original liability and the recognition of a new liability.

The difference in the respective carrying amounts is recognised in the statement of profit and loss

Leases: (Ind AS 116)

Leases in which a substantial portion of the risks and rewards of ownership are retained by the lessor are
classified as operating leases. Payments and receipts under such leases are recognized to the Statement
of Profit and Loss on a straight-line basis over the term of the lease unless the lease payments to the lessor
are structured to increase in line with expected general inflation to compensate for the lessor''s expected
inflationary cost increases, in which case the same are recognized as an expense in line with the contractual
term.

Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances
with original maturity of less than 3 months, highly liquid investments that are readily convertible into cash,
which are subject to insignificant risk of changes in value.

for Venkatesh & Co..

For and Behalf of the Board

Chartered Accoutants
FRN: 004636S

Sd /- Sd /- Sd I-

Sd/- S Chandramohan P Balamurugan R. Venkatesh

CA Dasaraty V Director Director Director

Partner DIN: 00052571 DIN: 07480881 DIN:07242631

M No: 026336
Chennai., May 24, 2025

---

Mar 31, 2024

Earnings per Share & Diluted Earnings per Share (Ind AS 33)

The basic earnings per share are computed by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equityshares outstanding during the period.

Diluted EPS is computed by dividing the net profit after tax by the weighted average number of equity shares considered for deriving basic EPS and also weighted average number of equity shares that could have been issued upon conversion of all dilutive potential equity shares. Dilutive potential equity shares are deemed converted as of the beginning of the period, unless issued at a later date. Dilutive potential equity shares are determined independently for each period presented. The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares, as appropriate.

Impairment of Assets: (Ind AS 36)

At the end of each reporting period, the Company determines whether there is any indication that its assets (property, plant and equipment, intangible assets) have suffered an impairment loss with reference to their carrying amounts. If any indication of impairment exists, the recoverable amount (i.e. higher of the fair value less costs of

disposal and value in use) of such assets is estimated and impairment is recognised, if the carrying amount exceeds the recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

When it is not possible to estimate the recoverable amount of an individual asset, the Company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

When an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss.

Provisions, Contingent Liabilities and Contingent Assets (Ind AS 37)Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event and it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation.

Provisions are discounted, if the effect of the time value of money is material, using pre-tax rates that reflects the risks specific to the liability. When discounting is used, an increase in the provisions due to the passage of time is recognised as finance cost. These provisions are reviewed at each Balance Sheet date and adjusted to reflect the current best estimates.

Necessary provision for doubtful debts, claims, etc., are made if realisation of money is doubtful in the judgement of the Management.

Contingent Liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized because it cannot be measured reliably. Contingent liabilities are disclosed separately.

Show cause Notices issued by various Government authorities are considered for evaluation of contingent liabilities only when converted into demand.

Contingent Assets

Where an inflow of economic benefits is probable, the Company discloses a brief description of the nature of the contingent assets at the end of the reporting period, and, where practicable, an estimate of their financial effect. Contingent assets are disclosed but not recognized in the financial statements.

Non-current assets or disposal groups comprising of assets and liabilities are classified as ‘held for sale’ when all of the following criteria’s are met:

i. Decision has been made to sell.

ii. The assets are available for immediate sale in its present condition.

iii. The assets are being actively marketed and

iv. Sale has been agreed or is expected to be concluded within 12 months of the Balance Sheet date.

Subsequently, such non-current assets and disposal groups classified as held for sale are measured at the lower of its carrying value and fair value less costs to sell. Non-current assets held for sale are not depreciated or amortized.

Operating Segment Reporting (Ind AS 108)

The Company is engaged in the business of ''''wafer sort, assembly, test and drop-shipment services of IC chips.'''' and therefore, has reported under each reportable segment as per Ind AS 108 "Operating Segments"

Information relating to Geographical Areasa. Revenue from External CustomersFinancial Assets:

Financial assets are recognized when the Company becomes a party to the contractual provisions of the instrument.

On initial recognition, a financial asset is recognized at fair value, in case of financial assets which are recognized at fair value through profit and loss (FVTPL), their transaction costs are recognized in the statement of profit and loss. In other cases, the transaction costs are attributed to the acquisition value of the financial asset.

Financial assets are subsequently classified as measured at

• amortized cost

• Fair value through profit and loss (FVTPL)

• Fair value through other comprehensive income (FVOCI).

Financial assets are not reclassified subsequent to their recognition, except if and in the period the Company changes its business model for managing financial assets.

Trade Receivables and Loans:

Trade receivables are initially recognized at fair value. Subsequently, these assets are held at amortized cost, using the effective interest rate (EIR) method net of any expected credit losses. The EIR is the rate that discounts

estimated future cash income through the expected life of financial instrument.

Provision of Expected Credit Loss (ECL) as per Ind AS 109 has not been considered in the books of accounts for the receivables outstanding for a period of more than six months.

Equity Instruments:

All investments in equity instruments classified under financial assets are initially measured at fair value; the Company may, on initial recognition, irrevocably elect to measure the same either at FVOCI or FVTPL. The Company makes such election on an instrument-by-instrument basis. A fair value change on an equity instrument is recognised as other income in the Statement of Profit and Loss unless the Company has elected to measure such instrument at FVOCI. Fair value changes excluding dividends, on an equity instrument measured at FVOCI are recognized in OCI. Amounts recognised in OCI are not subsequently reclassified to the Statement of Profit and Loss. Dividend income on the investments in equity instruments are recognised as ‘other income’ in the Statement of Profit and Loss. The Company does not have any investments in equity instruments as on balance sheet date.

Derecognition

The Company derecognises a financial asset when the contractual rights to the cash flows from the financial asset expire, or it transfers the contractual rights to receive the cash flows from the asset.

Impairment of Financial Asset:

Expected credit losses are recognized for all financial assets subsequent to initial recognition other than financials assets in FVTPL category. For financial assets other than trade receivables, as per Ind AS 109, the Company recognizes 12 month expected credit losses for all originated or acquired financial assets if at the reporting date the credit risk of the financial asset has not increased significantly since its initial recognition. The expected credit losses are measured as lifetime expected credit losses if the credit risk on financial asset increases significantly since its initial recognition. The Company’s trade receivables do not contain significant financing component and loss allowance on trade receivables is measured at an amount equal to life time expected losses i.e., expected cash shortfall. The impairment losses and reversals are recognised in Statement of Profit and Loss.

Financial LiabilitiesInitial recognition and measurement

Financial liabilities are recognised when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortised cost

unless at initial recognition, they are classified as fair value through profit and loss. In case of trade payables, they are initially recognised at fair value and subsequently, these liabilities are held at amortised cost, using the effective interest method.

Subsequent measurement

Financial liabilities are subsequently measured at amortised cost using the EIR method. Financial liabilities carried at fair value through profit or loss is measured at fair value with all changes in fair value recognized in the Statement of Profit and Loss.

Derecognition

A financial liability is derecognized when the obligation specified in the contract is discharged, cancelled or expires.

Leases in which a substantial portion of the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments and receipts under such leases are recognised to the Statement of Profit and Loss on a straight-line basis over the term of the lease unless the lease payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor’s expected inflationary cost increases, in which case the same are recognised as an expense in line with the contractual term.

Note 8: Cash and cash equivalents

Cash comprises cash on hand and demand deposits with banks. Cash equivalents are short-term balances with original maturity of less than 3 months, highly liquid investments that are readily convertible into cash, which are subject to insignificant risk of changes in value.

Note 9: Disclosures required by the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 are as under ¹

(a) The principal amount remaining unpaid at the end of the year - Rs.1.76 lakhs

(b) The delayed payments of principal amount paid beyond the appointed - Nil

(c) Interest actually paid under Section 16 of MSMED Act - Nil

(d) Normal Interest due and payable during the year, for all the delayed payments, as per the agreed terms - Rs. Nil

(e) Total interest accrued during the year and remaining unpaid - Nil

Nature and purpose of Reserves:

i) General Reserve

Represents accumulated profits earned by the Company and remaining undistributed as on date.

ii) Other Comprehensive Income

The reserve is in accordance with provisions of Indian Accounting Standards

iii) Securities Premium Reserve

Represents the premium on issue of equity shares and can be utilized in accordance with the provisions of Companies Act, 2013 ²

1

This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

Note 10:

In compliance with Notification issued by Government of India (MCA) on amended format of Schedule III vide its order dated 24^th March 2021, the figures appearing in financial statements have been rounded off to nearest lakhs (for both current and previous reporting periods).

2

Affected component of equity on voluntary change in accounting policy (Ind AS 18 - Revenue Recognition) for the earliest period presented. Refer to Note No: 2 A) of Annual Accounts

---

Mar 31, 2021

The Chief Exective Officer of the Company has been identified as being the Chief Operating Decision Maker. Based on the internal reporting to the Chief Operating Decision Maker, the Company has identified that it has only one segment which is Integerated circuits based on nature of products, risks, returns and the internal business reporting system.

I he above information regarding Micro, Small and Medium Enterprises have been determined to the extent such parties have beenidentified on the basis of the information available with the company

11 Exception items consists of the following :

a) Unbilled Revenue aggregating to Rs. 1927.63 lakhs (2019-20: Rs.660.31 lakhs) considered no longer receivable based on assessment of recoverabilty of the balances by the Management have been written off in the books of account.

b) Credit Balances amounting to Rs.1647.55 lakhs (2019-20 : Rs.657.59 lakhs) considered no longer payable / required based on review

by the Management have been written back in the books of account.

The above mentioned amounts written off and written back in the books of of account were approved by a resolution passed by the Board of Directors.

(Note 3.14 to The Financial Statements)

The Company is engaged in-house technology upgradation in the process,

12 thereby strengthening the efforts to bring in new products

and improving capacity utilization. The Company''s brand image and capabilities are well acknowledged by customers who have a strong role in improving its top line and would generate commensurate cash accurals in the ensuing years. All the above efforts are supported by the Promoters who have infused funds to improve liquidity to settle obligations as and when they fall due.

( Note 3.15 to the Financial Statements).

The Company has taken into account all the possible impacts of COVID 19

13 pandemic in preparation of these financial statements,

including but not limited to its assessments of liquidity and going concern assumption,recoverable values of its financial and non-financial assets, impact on revenue recognition etc.The Company has carried out this review and assesment based on available internal and external sources of information upto the date of approval of these financial statements. The actual impact of COVID-19 pandemic on the financial results may deffer from that estimated by the Company as on the date of approval of this fiancial statement owing to the uncertain nature and duration of the pandemic.

(Note 3.16 to the Financial Statements)

14 The figures of the previous year have been reclassified / regrouped whever necessary.

---

Mar 31, 2018

Notes to Abridged Ind AS Financial Statements for the year ended 31st March, 2018

(All amounts in Rs Lakhs unless otherwise stated)

1. Basis of Preparation

a) The Abridged Ind AS Financial statements have been prepared on the basis of the complete set of Ind AS financial statments for the year ended March 31st 2018, in accordance with first proviso to Section 136(1) read with Rule 10 of Companies (Accounts) Rules, 2014.

b) The financial statements have been prepared in accordance with Ind AS notified under the companies (Indian Accounting Standards) Rules, 2015, Up to the year ended March 31, 2017, the Company prepared its financial statements in accordance with the requirements of previous GAAP, which includes, Standards notified under the Companies, (Accounting Standards) Rules, 2006, These are the Company''s frist Ind AS financial statements. The date of transition to Ind As is April 1, 2016. In accordance with Ind As 101 on First time adoption of Ind AS, the Company has prepared its first Ind AS financial statements which include :

i) Three balance sheets namely, the opening Balance sheet as at April 1, 2016 (the transition date) by reconignising all assets and liabilities whose recongnition is required by Ind AS, not recognising assets or liablilities which are not permitted by Ind AS, by reclassifying assets and liabilities from previous GAAP as required by Ind AS, and applying Ind AS in measurement of recognised assets and liabilities, and Balance sheets as at March 31, 2018 and 2017 and.

ii) Two statements each of profit and loss; cash flows and changes in equity for the years ended March 31, 2018 and 2017 together with related notes.

c) The same accounting policies have been applied for all the periods presented except when the Company has made use of certain exception and / or exemptions. The financial statements have been prepared on the historical cost basis except for Property, Plant and Equipment and Intangible assets that are measured at fair values at April 1, 2016 and such fair values are consirded as its deemed cost as on the transition date.

2. Complete Balance sheet, Statement of profit and Loss (Including Other Comprehensive Income), the statement of cash flows,the statement of Changes in equity, other statements and notes thereto prepared as per the requirements of Divison II to the Schedule III to the Act are available at the Company''s website at link : www.spel.com.Copy of the financial statements is also available for inspection at the registered office of the Company during working hours for period of 21 days before the date of AGM.

Notes to Abridged Ind AS Financial Statements for the year ended 31st March, 2018

(All amounts in Rs Lakhs unless otherwise stated)

5. DEFERRED TAX LIABILITIES (NET) (Note 1.4 to the Ind AS Financial Statements)
Particulars	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
a) Deferred tax liabilities	27,06.64	29,20.80	37,67.24
b) Deferred tax (assets)	(459.22)	(7,27.54)	(5,42.34)
	22,47.42	21,93.26	32,24.90

6. CURRENT FINANCIAL ASSETS - CASH AND BANK BALANCES

(Note 1.7(a) to the Ind AS Financial Statements)

Cash and Cash Equivalents

	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
i) Balances with banks in current ac	count 0.20	5,53.01	1.05
ii) Cash on hand	0.27	0.38	1.14
	0.47	5,53.39	2.19
b) Other Bank Balances
ii) Margin money deposits #	60.55	60.03	51.25
	61.02	6,13.42	53.44

7. REVENUE FROM OPERATIONS (Note 2.1 of Ind AS Financial Statements)	Year Ended March 31, 2018	Year Ended March 31, 2017
a) Sale of products
Export sales
	37,27.62	29,89.00
b) Revenue from services	-
	4,33.03	5,62.86
c) Other operating revenues	_
- Scrap sales	-	0.00
	5.66	1.36
	41,66.31	35,53.22

Notes to Abridged Ind AS Financial Statements for the year ended 31st March, 2018

(All amounts in Rs Lakhs unless otherwise stated)

8. EXCEPTIONAL ITEMS (Note 2.9 of the Ind AS Financial Statements)	Year Ended March 31, 2018	Year Ended March 31, 2017
a) Loss on Transfer of Immovable Property (Refer Note 2.9(a)	-	3,30.78
b) Provision for inventory written back (Net)	(1,66.81)	-
(Refer Note 2.9 (b))	-
c) Inventory written off (Refer Note 2.9 (b))	33.34	20,39.13
	(1,33.47)	23,69.91

(a) Provision for inventory written-back (net) in the current year is based on the accounting policy for obsolete/ non-moving inventory adopted from the transition date(April 1, 2016).Value of Inventory written off in current year represents loss on settlement of insurance claim .Inventory written-off in previous year is due to customers cancelling their orders due to change in technology and opting not to reimport the finished products produced from raw material supplied by them.

(b) Loss on transfer of Immovable Property comprising Land and Building in the previous year is recognised on the basis of agreements entered into, surrender of possession of the said properties in lieu of part consideration and legal opinion obtained in the matter during the previous year.

9. Contingent Liabilities
( Note 3.9 of the Ind AS Financial Statements) Claims against the Company not	As at March 31, 2018	As at March 31, 2017	As at April 1, 2016
acknowledged as debts (net)
i) Income tax demand (Refer Note 7(a) below	4,46.47	3,02.83	40.19
ii) Letter of credit for letter of purchases	1,84.81	2,56.27	1,41.09

(a) These have been disputed by the Company on account of issues of applicability and classification. Future cash outflows in respect of the above are determinable only on receipt of judgement / decisions pending with various forums / authorities.

10.

Commitments ( Note 3.10 of the Ind AS Financial Statements)

Nil

Nil

Nil

Significant Related Party Transactions	2018	2017	April 1, 2016
a) List of parties where control exists
Ultimate Holding company
- Natronix Semiconductor Technology Pvt. Limited
a. Business Promotion - Marketing fee	83.51	98.84
b. Trade payable (net)	2,25.47	1,64.31	94.28
b) Subsidiary company
- Spel America Inc.
a. Business Promotion - Marketing fee	-	-
b. Trade payable	35.79	35.60	54.11
c) Fellow subsidiaries
- Natronix Semiconductor Technology Limited
a. Sale of goods	4.25	-
b. Trade receivable	0.37	-
d) Key management personnel
Mr. D Balakrishnan, CEO and Director Remuneration	39.29	34.27
Mr.V.Srinivasan, Chief Financial Officer Remuneration (From April 02, 2016)	15.47	14.74
Mr S S Arunachalam, Company Secretary Remuneration	13.58	12.40

11. Segment Information

( Note 3.7 to the Ind AS Financial Statements)

The Company is principally engaged in a single business segment viz. Integerated circuits based on nature of products, risks, returns and the internal business reporting system, there is no other reportable segment in terms of Ind AS 108 "Operating Segments".

12. Related Party Disclosure

( Note 3.8 to the Ind AS Financial Statements )

a) List of Parties where control exists

Ultimate Holding Company

Natronix Semiconductor technology Pvt. Limited

Subsidiary Company

b) Other Related Parties Fellow Subsidiary

Natronix Semiconductor technology Pvt. Limited

Subsidiary

- Spel America Inc.

Key Managerial Personnel

Mr.D.Balakrishnan CEO and Director

Mr.V Srinivasan Chief Financial Officer

Mr. S S Arunachalam Company secretary

Notes to the Ind AS 2Financial Statements

(All amounts in Rs Lakhs unless otherwise stated)

13. Disclosures required under the Micro, Small & Medium Development Act, 2006

(Note 3.14 to the Ind AS Finanical Statements)

The Company has certain dues to suppliers registered under Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act). The disclosures pursuant to the said MSMED Act are as follows:

Particulars	2017-18	2016-17	2015-16
The Principal amount (2017-18 : 2.30; 2016-17 : 2.60; 2015-16: 3.76 ) and the interest due (2017-18 : 5.56 ;2016-17 : 3.99; 2015-16: 3.10 ) thereon remain unpaid to suppliers at the end of each accounting year.	7.86	6.59	6.86
The amount of Interest paid by the buyer in terms of Section 16 of the Micro, Small and Medium Enterprises Development Act, 2006 along with the amount of payment made to the supplier beyond the appointed day during the accounting year.	-	-	-
Principal amounts paid to suppliers registered under the MSMED Act, beyond the appointed day during the year	0.30	0.98	2.48
The amount of interest accrued and remaining unpaid at the end of each accounting year.	1.57	0.89	1.04
The amount of further interest remaining due and payable even in the succeeding years until such date when the interest dues above are actually paid to the small enterprises, for the purpose of disallowance of a deductible expenditure u/s 23 of the Micro, Small and Medium Enterprises Development Act, 2006.	5.56	3.99	3.10

The above information regarding Micro, Small and Medium Enterprises have been detemined to the extent such parties have been indentified on the basis of information available with the Company.

14. The Company is facing the trend of declining top-line. The Company is engaged in-house technology upgradation in the process, thereby strengthening the efforts to bring in new products and improving Capacity utilization. The Company''s brand image and capabilities are well acknowledged by customers who have a strong role in improving its top line and would generate commensurate cash accruals in the ensuing years. All the above efforts are supported by promoters who have infused funds to improve liquidity to settle obligations as and when they fall due.The Company, in preparing the financial statements on a going concern basis, has kept in view all the above said parameters of business. (Note 3.16 to the Ind AS Finanacial Statements)

15. SPEL America Inc has elected to dissolve and consequently has not been considererd for consolidation for the year. (Note 3.17 to the Ind AS Finanacial Statements)

16. The figures for the previous year have been reclassified / regrouped wherever necessary.

As Per our report of even date	For and on behalf of the Board
For M.S.Krishnaswami & Rajan	K.Ravikumar	N.Suryanarayanan	M. Jayasankar
Chartered Accountants	Director	Director	Director
Firm Registration No. 01554S	DIN: 001 19753	DIN: 02282919	DIN: 00048351
M S Murali - Partner		D.Balakrishnan	Enakshi Bhattacharya
Membership No. 26453		Directors CEO	Director
Place: Chennai		DIN: 02131242	DIN: 05277571
Date: May 29, 2018		V Srinivasan	S.S. Arunachalam
		Chief Financial Officer	Company Secreatry

---

Mar 31, 2016

1. Depreciation (Note 30 of the Financial Statement) -

During the previous year, pursuant to the notification of Schedule II to the Companies Act, 2013 with effect from Apr 1, 2014, the Company revised the estimated useful life of some of its assets to align the useful life with those specified in Schedule II. The details of previously applied depreciation rates / useful life are as follows:

Pursuant to the transitional provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets,(net of residual value, if any), where the remaining useful life of the asset was determined to be nil as on Apr1, 2014, and has adjusted an amount of '' 31,40,593 (net of deferred tax of '' 14,04,404) against the opening Surplus balance in the Statement of Profit and Loss under Reserves and Surplus in the previous year.

Further, pursuant to the adoption of lower useful life prescribed in Schedule II to the Companies Act, 2013, the depreciation expenses in the statement of profit and loss for the previous year is higher by Rs, 51,66,988 and consequent loss for the previous year is higher by the said amount as a result of the change in the useful life of the assets, as detailed above.

2. Long Term Borrowings (Note 3.2 & 3.3 of the Financial Statements)

i) The term loan is repayable in 16 equal quarterly installments commencing from 25.04.2012. The applicable interest rate is 14.25% p.a payable monthly. The principal amount of ''1,46,44,719 due on Jan 25, 2016 is outstanding as at Mar 31, 2015 along with overdue interest of Rs, 16,58,903.

ii) The interest payable on deposits from others are in the range of 10% to 10.25% p.a payable quarterly. The interest due on Dec 31, 2013, Mar 31, 2014 and for all four quarters of 2014-2015 amounting to Rs, 1,34,76,459 is outstanding as at Mar 31, 2015.

3. Exceptional Item (Note 28 of the Financial Statements)

The production was stopped for 27 days during the year due to the breakdown of the air-conditioning plant. The depreciation charged on plant and machinery Rs, 46,82,160, Employee benefit expenses Rs, 57,07,904, Power and Fuel Rs, 9,45,000 and Miscellaneous Expenses Rs, 1,04,424 for the staid period has accordingly been considered and disclosed as an Exceptional Item.

4. Segment information (Note 39 of the Financial Statements)

The Company’s primary segment is identified as business segment based on nature of products, risks, returns and the internal business reporting system and secondary segment is identified based on the geographical location of the customers as per Accounting Standard 17. The Company is principally engaged in a single business segment viz Integrated Circuits for overseas market. Hence, the Company does not have separate non-overseas reportable geographical segment.

5. The figures for the previous year have been reclassified / regrouped / amended, wherever necessary.

---

Mar 31, 2015

1. Reconciliation of the Equity shares outstanding at the beginning and at the end of the reporting period

2. Rights attached to equity shares

The Equity share holders are entitled to receive dividends as and when declared; a right to vote in proportion to holding etc. and their rights, preferences and restrictions are governed by / in terms of their issue under the provisions of the Companies Act, 2013.

As per records of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

3. Details of Shareholders other than the Holding Company more than 5% of the total share capital -Nil

4. Aggregate number of shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceeding the report dated is Nil

5. Shares reserved for issue under options :

Company has not reserved any equity shares for issue under the employee stock option plan (ESOP) of the company.

6. Term loan from banks are secured by first charge on all immovable assets including land and building at 5, CMDA Industrial Estate, Maraimalai Nagar and other movable/immovable fixed assets of the Company. Further secured by second over entire stocks, book debts and all other current assets of the Company, both present and future. Term Loan and is also secured by personal gaurantee of Dr.A.C.Muthiah.

7. The term loan is repayable in 16 equal quarterly instalments commmencing from 25.04.2012. The applicable interest rate is 14.25% p.a payable monthly. The principal amount of ' 1,40,70,000 due on Jan 25, 2015 is outstanding as at Mar 31, 2015 along with overdue interest of ' 28,78,977.

8. The interest payable on deposits from others are in the range of 10% to 10.25% p.a payable quarterly. The interest due on Dec 31,2013, Mar 31,2014 and for all four quarters of 2014-2015 amounting to ' 1,34,76,459 is outstanding at year end.

9. The Secured borrowings representing Working Capital Loans (Packing Credit, Overdraft Facility and Buy- ers Credit) from Banks are secured by hypothecation by way of first charge over the entire stocks and all other current assets of the Company both present and future. Further secured by the second charge on the immovable assets of all the exisiting fixed assets of the Company.

10. Additions to Plant & Machinery during the year includes Rs. Nil (Previous year ' 11,45,628) towards exchange gain adjusted in fixed assets as per GOI Notification (GO No. GSR225(E) dated Mar 31, 2009).

11. Leasehold improvements comprise capital expenditure on leased premises and is depreciated over the period of lease being lower than the life specified in Schedule II to the Act..

e. Contingent Liabilities and commitments (to the extent not provided)

Mar 31, 2015 Mar 31, 2014

(i) Contingent Liabilities

* Letter of Credit for import purchases 2,96,58,183 4,83,63,368

* Income Tax Demand 40,19,136 40,19,136

Future cash outflows in respect of the above are determinable only on receipt of judgement/ decisions pending with various forums / authorities

(ii) Capital commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for Nil Nil

12. Pursuant to the transitional provisions prescribed in Schedule II to the Companies Act, 2013, the Company has fully depreciated the carrying value of assets,(net of residual value, if any), where the remaining useful life of the asset was determined to be nil as on Apr 1, 2014, and has adjusted an amount of ' 31,40,593 (net of deferred tax of ' 14,04,404) against the Opening Surplus Balance in the Statement of Profit and Loss under Reserves and Surplus.

13. Further, pursuant to the adoption of lower useful life prescribed in Schedule II to the Companies Act, 2013, the depreciation expenses in the statement of profit and loss for the year is higher by ' 51,66,988 and consequent loss for the year is higher by the said amount as a result of the change in the useful life of the assets, as detailed above.

14. Employee benefit plans - Defined Contribution Plans

The Company makes Provident Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 99,92,152 (Year ended Mar 31, 2014 Rs. 92,85,735) for Provident Fund contributions and Rs. 12,79,543 (Year ended Mar 31, 2014 Rs. 17,14,227) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes. The Company also makes Gratuity Scheme contributions in the nature of defined contribution plans, for qualifying employees. The Company recognised Rs. 46,00,638 (Year ended Mar 31, 201Rs.3,48,324) for Gratuity Fund contributions.

15. Gratuity

The Company has a gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summarize the components of net benefit expense recognised in the statement profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan. Statement of Profit and Loss

16. Segment information

The Company's primary segment is identified as business segment based on nature of products, risks, returns and the internal business reporting system and secondary segment is identified based on the geographical location of the customers as per Accounting Standard 17. The Company is principally engaged in a single business segment viz Integrated Circuits for overseas market. Hence, the Company does not have seperate non-overseas reportable geographical segment.

17. The figures for the previous year have been reclassified / regrouped / amended, wherever necessary.

---

Mar 31, 2014

1.1 Rights attached to equity shares

The Equity share holders are entitled to receive dividends as and when declared; a right to vote in proportion to holding etc. and their rights, preferences and restrictins are governed by / in terms of their issue under the provisions of the Companies Act, 1956.

1.2 Shares held by holding/ ultimate holding company and/ or their subsidiaries/ associates and details of shareholders holding more than 5% shares in the company:

Out of equity shares issued by the company, shares held by its holding company, ultimate holding company and their subsidiaries/associates are as below:

As per records of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownerships of shares. The change in shareholding as above took place on Mar 24, 2014

1.3 Aggregate number of shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the report dated is NIL

1.4 Shares reserved for issue under options Company has not reserved any equity shares for issue under the employee stock option plan (ESOP) of the company.

2.1 Term loan from banks are secured by first mortgage of fixed assets acquired out of Bank Finance, Equitable Mortgage releating to factory land and building at 5, CMDA Industrial Estate, Maraimalai Nagar. First Charge on the existing Plant and Machinery and other Fixed Assets for Term Loan and is also secured by personal gaurantee of Dr.A.C.Muthiah.

2.2 The term loan is repayable in 16 equal quarterly instalments commmencing from 25.04.2012. The applicable interest rate is 13.25% p.a payable monthly. The principal amount of Rs.85,18,130 due on Jan 25, 2014 was paid on Apr 25, 2014. However there is no interest overdue.

2.3 The interest payable on deposits from others are in the range of 10% to 10.25% p.a payable quarterly. The interest due on Dec 31, 2013 and Mar 31, 2014 amounting to Rs.40,99,580 is outstanding at year end.

3.1 The Secured borrowings representing Working Capital Loans from Banks are secured by hypothecation by way of first charge on the current assets of the Company viz. Stock of Raw materials, Stocks in Process, Semi-finished and Finished Goods, Stores and Spares not relating to Plant and Machinery (Consumables, Stores and Spares) Bills receivables, Book debts, deposits and all other movables excluding such movables as may be permitted by Banks in their discretion from time to time, both present and future, wherever situated and further secured by the second charges on the immovable assets of the Company both present and future. The charge on current assets of the Company will rank pari passu with the existing charges created and/or agreed to be created thereon in favour of Banks.

Notes to Financial Statement for the year ended Mar 31, 2014

(All amounts are in Indian Rupees unless otherwise stated)

* Deposits is lien marked with IOB with respect to Buyer''s Credit for Nil (Previous year - Rs.1,34,20,000)

# Margin money deposit with a carrying amount of Rs.68,59,865 (Previous year:Rs.76,74,136) are given as security for opening of letter of credit with banks

Note:

Provisions for/contribution to employee retirement/post retirement and other employee benefits which are based on actuarial valuations done on an overall Company basis are excluded above

e. Contingent Liabilities and commitments (to the extent not provided). Mar 31, 2014 Mar 31, 2013

i) Contingent Liabilities

- Service Tax Demand - 1,86,100

- Letter of Credit for import purchases 4,83,63,368 3,55,10,607

- Income tax Demand 40,19,136 1,79,57,319

ii) Capital commitments

- Estimated amount of contracts remaining to be executed on capital account and not Nil Nil provided for

Notes to financial statements for the year ended Mar 31, 2014

(All amounts are in Indian rupees unless otherwise stated)

4. Employee benefit plans - Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service.

The following tables summarize the components of net benefit expense recognised in the Statement Profit and Loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

The assumptions of future salary increases, take into account of inflation,seniority, promotion and other relevant factors,such as supply and demand in the employment market.

5. Foreign currency exposures

The Company does not use any derivative instruments to hedge its foreign currency exposures. The details of foreign currency balances which are not hedged as at the balance sheet date are as below:

6. Dues to Micro, Small and Medium Enterprises

Dues to Micro, Small and Medium Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management.

Information required to be disclosed under Micro, Small and Medium Enterprises Development Act 2006 as at Mar 31, 2014 is Nil (Mar 31,2013 - Nil)

7. The figures for the previous periods have been reclassified / regrouped / amended, wherever necessary.

---

Mar 31, 2013

1. Employee benefit plans - Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service. The following tables summarize the components of net benefit expense recognised in the statement profit and loss and the funded status and amounts recognised in the balance sheet for the Gratuity plan.

2. Dues to Micro, Small and Medium Enterprises

Dues outstanding to enterprises covered under Micro, Small and Medium Enterprises Development Act, 2006, based on the information available with the Company as at Mar 31, 2013 amounts to NIL.

3. Impairment of Assets has been considered as per AS 28 & there is no impairment as on Mar 31, 2013.

4. Prior year comparatives

Previous year''s figures have been regrouped wherever necessary.

---

Mar 31, 2012

1-a Terms/rights attached to the equity shares

The Company has only one class of equity shares having a par value of Rs 10 per share. Each holder of equity is entitiled to one vote per share.

In the event of liquidation of the company, the holder of equity shars will be entitled to received 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-b Shares reserved for issue under options Company has not reserved any equity shares for issue under the employee stock option (ESOP) plan of the company

Note :

A Term loans from Banks are secured by first mortgage of fixed assets acquired out of Bank Finance. Equitable Mortgage relating to Factory Land and Building at 5 CMDA Industrial Estate, Maraimalai Nagar. First Charge on the existing Plant & Machinery and other Fixed Assets for Term Loan.

B Working Capital Loans from Banks are secured by hypothecation by way of first charge on the current assets of the Company viz. Stock of Raw materials, Stocks in Process, Semi-finished and Finished Goods, Stores and Spares not relating to Plant and Machinery (Consumables, Stores and Spares) Bills receivables, Book debts, deposits and all other movables excluding such movables as may be permitted by Banks in their discretion from time to time, both present and future, wherever situated and further secured by the second charges on the immovable assets of the Company both present and future. The charge on current assets of the Company will rank pari passu with the existing charges created and/or agreed to be created thereon in favour of Banks.

C Other Terms and Condition of Sanction

C1 Security Documents Including Personal guarantee of Dr. A. C. Muthiah. Credit report of the guarantors to be provided.

C2 Any escalation in project cost due to exchange rate fluctuation will be borne by the Company.

1Contingent Liabilities

Estimated value of contracts remaining to be executed on capital account and not provided for Rs Nil (Previous year Rs 5,97,500 hundred)

Year ended Year ended Mar 31, 2012 Mar 31, 2011 (Rs in Hundred) (Rs in Hundred)

Claims against the Company not acknowledged as debts 19,500 19,500

Guarantees given to Central Excise/banks on behalf of other companies with corresponding counter guarantees from them 5,20,000 5,20,000

Service Tax Demand 1,861 -

Income-tax demand 2,23,089 36,410

Letters of Credit for import purchases 5,26,290 4,19,060

Labour Case 15,000 -

2-G3 Notes:

1 The effect of Morbidity and With drawal have been factored by Constructing a Multiple Decrement Table on assumption of above Mortality table.

2 All the assumptions above have been set following discussions with the Company in this regard.

3 We understand that the assumptions of Future Salary increases (Which has been set in Consultation with the company), take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

3-G1 One of the principal assumptions is the discount rate ,which should be based Upon the market yields available on Government bonds at the accounting date with a term that matches that of the liabilities.

3-G3 Notes:

1 The effect of Morbidity and With drawal have been factored by Constructing a Multiple Decrement Table on assumption of above Mortality table.

2 All the assumptions above have been set following discussions with the Company in this regard.

3 We understand that the assumptions of Future Salary increases (Which has been set in Consultation with the Company), take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market.

4 Impairment of Assets has been considered as per AS 28 & there is no impairment as on Mar 31, 2012.

5 The company has changed its accounting policy during the year to account for gains or losses on cash flow hedge in the appropriate equity account i.e., Hedge Reserve account. This is different from the method hitherto followed to recognize the same in Profit and Loss account.

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

---

Mar 31, 2011

1. Estimated value of contracts remaining to be executed on capital account and not provided for Rs. 597.50 lakhs (Previous year Rs 13.11 lakhs)

2. Contingent Liabilities

Particulars Year ended Year ended

Mar 31, 2011 Mar 31, 2010

Rs. in lakhs Rs. in lakhs

i. Letters of Credit for import purchases 419.06 538.76

ii. Bank Guarantee given for Job work 0.10 0.10

iii. Guarantees given to Central Excise / banks on behalf of other companies with corresponding counter guarantees from them 520.00 520.00

iv. Claims against the Company not acknowledged as debts 45.91 45.91

3. The company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 on Accounting Standard 11 (AS-11) notifed by Government of India on Mar 31, 2009 (GO No.GSR225(E) dated Mar 31, 2009). The exchange difference adjusted in the carrying amount of fxed assets during the accounting period is Rs.18.99 lakhs (decrease) (Previous year decrease Net Rs. 409.71 lakhs).

The Company is having diverse package portfolio, from 4lead (1mm x 1mm) to 80leads (12mm x 12mm). To have a common base for capacity calculation, the widely accepted industry standard Twenty Lead Equivalent (TLE) for leaded packages and Three Millimetre equivalent (TMME) for Leadless packages is used.

In the above table, numbers are appropriately converted into TLE (available leaded capacity: 214 Million) and TMME( available lead- less capacity:259 Million) to address the statutory requirements. Accordingly the Capacity utilisation is 75% and 90% respectively.

4. Segmental Reporting

The Integrated Circuits is the only segment for the company

5. Impairment of Assets has been considered as per AS 28 & there is no impairment as on Mar 31, 2011

6. The Company has during the year, adopted the principles of Accounting Standard 30 - Financial instruments: Recognition and measure- ment, issued by the Institute of Chartered Accountants of India, in respect of forward contracts for frm commitments and highly probable forecast transactions meeting necessary criteria for designation as "Cash fow hedges". The gains and losses on effective Cash fow hedges are recognised in Hedge Reserve Account till the underlying forecasted transaction occurs. There is however no impact on the proft for the year due to the aforesaid change.

7. Previous years figures have been regrouped wherever necessary.

---

Mar 31, 2010

1. Estimated value of contracts remaining to be executed on capital account and not provided for Rs.13.11 iakhs (Previous year Rs.7.60 lakhs)

2. Contingent Liabilities & Provisions

a. In respect of: Year ended Year ended Mar 31, 2010 Mar 31, 2009 Rs. in lakhs Rs. in iakhs

i. Letters of Credit for Import Purchases 538.76 395.87

ii. Bank Guarantee given for Job work 0.10 0.10

iii. Guarantees given to Central Excise/ Banks on 520.00 520.00 behalf of other companies with corresponding counter guarantees from them.

b. Claims against the Company not acknowledged as debts - Rs.45.91 iakhs (Previous year - Rs.45.91 iakhs).

3. The company has opted for accounting the exchange difference arising on reporting of long term foreign currency monetary items in line with Companies (Accounting Standards) Amendment Rules 2009 on Accounting Standard 11 (AS-11) notified by Government of India on Mar 31, 2009 (GO No.GSR225(E) dated Mar 31, 2009). The exchange difference adjusted in the carrying amount of fixed assets during the accounting period is Rs.409.39 lakhs (decrease) (Previous year increase Net Rs.1046.89 lakhs). The amount of profit on exchange differences included in the Profit and Loss Account for the period is Rs.99.39 lakhs (Net) (Previous year gain Net Rs.105.67 lakhs).

4. Other income of Rs.149.17 lakhs (Previous year Rs.222.27 lakhs) represents exchange profit Rs.99.39 lakhs, interest from deposits Rs.11.87 lakhs, scrap sales Rs.13.33 lakhs, lease rental income Rs.6.30 lakhs and Miscellaneous income of Rs.18.28 lakhs. (Tax deducted at source Rs.4.48 lakhs)

5. Segmental Reporting

The Integrated Circuits is the only segment for the company

6. Related party disclosure under Accounting Standard 18:

Nature of Relationship Name of the Party

A. Holding Company Southern Petrochemical

Industries Corporation Limited

B. Subsidiary Company SPEL America Inc.

C. Key Management Dr. AC Muthiah Personnel Chairman

Mr. Ar Rm Arun Vice Chairman Mr. D. Balakrishnan Chief Executive Officer Mr. N. Sivashanmugam Chief Financial Officer

D. Enterprise owned by/over ChipTest Engineering Limited which Key Management Vice Chairman is the Personnel is abie to Chairman for the exercise significant Holding Company of influence ChipTest Engineering Ltd

Cherrytec Intelisolve Limited Vice Chairman is the Chairman of Cherrytec Intelisolve Limited.

Valingro Exponenta Limited. Vice Chairman is Chairman in Valingro Exponenta Limited

Natronix Semiconductor Technology Limited Vice Chairman is Chairman in Natronix Semiconductor

Technology Limited.







D. Enterprise owned by/over which Key Management Personnel is abie to exercise significant influence

Name of Nature of Transaction with Value Relationship

A. Holding Company Balance as on Mar 31, 2010 :

a. Current Account P.s.1.77 lakhs (Dr) b. Guarantee issued Rs.520.00 lakhs

B.Subsidiary Company Marketing Fee - Rs.t 55.80 lakhs Balance Outstanding to them as on Mar 31,2010 Rs.0.90 lakhs

C. Key Management Personnel Personal Guarantee Commission - Rs.24.47 lakhs

Profit Commission - Rs.29.37 lakhs *

Remuneration - Rs.28.35 lakhs **

Remuneration - Rs.25.27 lakhs

D. Enterprise owned by/over which Key Management Personnel is abie to exercise significant influence Characterization Charges Rs.235.84 lakhs Test Engineering Charges Rs.69.79 lakhs Reliability Testing Income - Rs.4.68 lakhs Rental Income - Rs.5.52 lakhs Balance Outstanding to them as on Mar 31. 2010 Rs.113.41 lakhs

Balance Outstanding to them as on Mar 31, 2010 Rs.0.58 lakhs towards ERP implementation.

Corporate Communications charges of Rs. 18.00 lakhs. Balance Outstanding to them as on Mar 31,2010 Rs. 4.63 lakhs

Manpower Deputation Charges of Rs.15.00 iakhs. Balance Outstanding to them as on Mar 31, 2010 Rs.6.03 lakhs

* Provision has been made, subject to the statutory approvals.

** part of the year.

7. No Provision for Income Tax has been made in the current year considering the carried forward losses of the company. However, tax has been provided considering Minimum Alternate Tax as per the Income Tax Act. In pursuant to the provisions of Income Tax Act, MAT credit of Rs.49.26 iakhs has been for carry forward during this year for adjustment against the future tax payments.

8. impairment of Assets has been considered as per AS 28 & there is no impairment as on Mar 31, 2010.

9. Previous years figures have been regrouped wherever necessary.