ESS DEE Aluminium

1.  Share Capital
 
 1.1 During the financial year 2006-07 Company raised Rs.15,673.22 Lacs
 by way of an initial public offering of 69.66 Lacs equity shares of
 Rs.10 each and received a premium of Rs.14,976.64 Lacs Expenses
 incurred in connection with the IPO of Rs.1,156.56 Lacs was charged off
 against the Share Premium Account. The money raised by this issue has
 been utilized for the purpose of the issue viz setting up of additional
 facilities for aluminium foil based packaging products at Daman
 (presented under CWIP), general corporate purposes and meeting the IPO
 expenses.The unutilized portion was temporarily invested in units of
 Mutual Funds and Bank Deposits.
 
 1.2 During the year the Company raised Paid-up Share Capital of
 Rs.141.00 Lacs by making a preferential issue of 14.10 Lacs equity
 shares of Rs.10 each and received premium of Rs. 7,966.50 Lacs
 
 2.  Arrangement for revival of India Foils Ltd
 
 The Company has joined hands with Madras Aluminium Limited (MALCO), the
 current promoters of India Foils Limited (IFL), to work towards revival
 of IFL through a Rehabilitation Scheme in consultation with the
 operating agency and subject to BIFR approvals and regulations as may
 be necessary. Pursuant to this arrangement an amount of Rs.80 crores
 has been deposited with, and a Guarantee of Rs.50 Crores has been
 provided to, IL & FS Trust Company Limited, the Escrow Agent.  The
 Escrow Agent is authorized to invest these funds in liquid debt funds.
 The Company has borrowed secured term loan of Rs.50.00 crores from DSP
 Merrill Lynch Capital Limited and a Guarantee facility of Rs.50.00
 crores from Infrastructure Leasing & Financial Services Limited for
 this purpose. The net expenses incurred in connection with this
 arrangement and the deposit placed with the escrow agent has been
 presented under Current Assets as Advance given for acquisition .
 
 The break-up of the amount is as under:-
 
                                                               Rs. Lacs
 
 Amount deposited with Escrow Agent along with 
 dividend re-invested                                         8,042.22
 Finance Cost including interest pertaining to this arrangement 106.56
 Legal & Professional Charges pertaining to this arrangement     36.49
 Other Expenses pertaining to this arrangement                     Nil
 Less: Dividends on funds deployed by Escrow agent -            (42.22)
 
 TOTAL                                                        8,143.05
 
 The funds deployed by the escrow agent as on March 31,2008 are as
 under:- KotakFlexi Debt Scheme 7,96,36,481.759 no of units NAV as on
 31/03/08 Rs 10.0311
 
 3.  Contingent Liabilities
 
 a) Guarantees: - The Company has given guarantee to the electricity
 supply undertakings aggregating to Rs 13.80 Lacs (PY 13.80 Lacs) which
 is secured by fixed deposit under lien to the bank to the extent of Rs
 3.45 Lacs. (PY 11.28 Lacs)
 
 b) The Company is under obligation under the EPCG and Advance License
 scheme to export Aluminium Foil and PVC film. The contingent liability
 under the guarantee amounted to Rs 258.77 Lacs (PY 258.77 Lacs), which
 is secured by fixed deposit under lien to the bank to the extent of Rs
 258.77 Lacs. (PY 258.77 Lacs).
 
 c) infrastructure leasing & Financial Services Limited has issued a
 guarantee for Rs. 5,000.00 Lacs in favour of IL&FS Trust Company
 Limited, the escrow agent as security for the purpose referred to in
 Notes 2 above.
 
 4.  Payments to Directors
 
 Exclusive of future liabilities in respect of retirement benefits like
 contribution to gratuity fund, provision for leave encashment on
 retirement and other retirement benefits.
 
 5.  Small Scale Undertakings to whom amounts are outstanding for more
 than 30 days as per agreed terms of payment have been determined based
 on information available with the company are as follows.
 
 Amar-Deo Plastic, Anand Chemicals, Chamber Packaging,Twisters Pvt.
 Ltd., Dag Printing Inks Company, Gujarat Polymers, Hi Tech Coatings,
 Lalita Chem Industries Pvt. Ltd., Liberty Chemicals, Novelty Roto
 Engineers, Purvi Engg. & Plasticizers (P) Ltd., Santoshi Polymers,
 Setco Chemicals Pvt. Ltd., Surya Old Fort Plastics, halan Paper
 Converters, Ravira Poly Plast Industries, Rishab tapes, Roto-coatinks
 and Packaging, Venus Chemicals.
 
 6.  Suppliers/service providers covered under Micro, Small and Medium
 Enterprises Development Act, 2006 have not furnished the information
 regarding filing of necessary memorandum with the appropriate
 authority. Hence, information required to be disclosed u/s 22 of the
 said Act is not given.
 
 7.  In the opinion of the Board, the Current Assets, Loans and Advances
 have value on realization in the ordinary course of business at least
 equal to the amount at which they are stated.
 
 8 Segment Reporting (Accounting Standard - 17)
 
 Hitherto, the Company had identified two business segments viz;
 Aluminum Foil and FVC Film. During the year a review was made of the
 inherent risks and rewards in our business activities. The Companys
 entire activity is of advanced packaging solutions and as such there
 are no risks and rewards that vary significantly between these two
 components of the business.  As such there is only business segment
 viz; advanced packaging solutions. Accordingly, no disclosure is
 required to be made underAS-17
 
 9 Related Party Disclosures (Accounting Standard 18)