Terms Rights attached to equity shares

The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity share is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees.

The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts.

The distribution will be in proportion to the no. of equity shares held by the shareholder.

2. EMPLOYEE BENEFITS

i) Short Term Employee Benefits.

All employee benefits payable wholly within twelve months of rendering the service are classified as short term employee benefits.

Benefits such as salaries, wages, short terms compensated absences, etc., and the expected cost of bonus, ex-gratia are recognised in the period in which the employee renders the related service.

ii) Long Term Employee Benefits

The disclosures as per the revised AS-15 are as under:

A. Brief description of the 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 death or resignation or retirement at 15 days [last drawn salary] for each completed year of service.

The scheme is funded with an insurance company in the form of a qualifying insurance policy.

Leave Wages: The leave wages are payable to all eligible employees at the rate of daily salary for each day of accumulated leave on death or on resignation or upon retirement on attending superannuation age.

C. Defined Benefit Plan:

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined benefit plan.

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognized in the same manner as gratuity.

3. Contingent Liability and commitments

a) Guarantee given by Bank on behalf of the Company - Nil {Previous Year Rs Nil }, against which the company has given counter guarantee.

b) Demands made by the Income Tax Department towards Wealth Tax - Rs. 15.43 Lacs {Previous Year Rs 15.43 Lacs),against which the Company has preferred appeals.

c) Demands made by Employees State Insurance Corporation Rs 5.08 Lacs (Previous Year Rs 5.08 Lacs) against which Company has preferred appeals

d) Demands made by Service Tax Department Rs 0.98 Lacs (Previous Year Rs Nil) against which Company has preferred appeals

4. The Company's business comprises entriely of manufacture and sale of engineering goods, which is confined to the terriotorial, limits of the country, where the risks and returns are largely similar.

As such, the Company has only one business segment and only one georgraphical segment.

5. Related Party disclosure

Associated Companies

The Ravalgaon Sugar Farm Ltd

Carina Finvest Ltd