Gujarat Industries Power Co.

1.  The Company has only one reportable business segment namely Power
 Generation under AS 17.
 
 2.  Related Party Disclosures
 
 In accordance with the Accounting Standard 18 - Related Party
 Disclosures the transactions with related party are given below:
 
 Name of the Related Party Nature of Relationship
 
 Gujarat Urja Vikas Nigam Ltd : Promoter (with significant shareholding
 / influence)
 
 Shri L Chuaungo : Key Management Personnel
 
 3.  Based on the information available with the company, the balance
 due to Micro and Small Enterprises as defined under the Micro, Small
 and Medium Enterprise Development Act, 2006 is Rs.13.21 lacs from the
 following parties. (Previous Year Rs.57.60 lacs)
 
 Ambison Industries, ChloroTech Engineering Co.,Cubic Transmission Pvt.
 Ltd.,Narasimha Engineering Works, Nasha Automation, Switzer Instrument
 Ltd.,Flojet Engineers (P) Ltd.,Indian Engineering Co.
 
 Further no interest during the year has been paid or is payable under
 the terms of the The Micro, Small and Medium Enterprise Development
 Act, 2006.
 
 4.  Post Employment Benefits:
 
 Defined Contribution Plan
 
 The Company makes contributions towards provident fund and pension
 scheme to Defined Contribution retirement benefit plan for qualifying
 employees.
 
 The provident fund plan is operated by the Gujarat Industries Power
 Company Ltd. Provident Fund Trust (the Trust). Eligible employees
 receive benefits from the said trust which is a defined contribution
 plan. Under the plan, the Company is required to contribute a specified
 percentage of employees salary to the retirement benefit plan to fund
 the benefits. The Company has recognised Rs.84.95 lacs ( previous year
 Rs.112.38 lacs) for Provident Fund contributions and Rs.26.58 lacs
 (previous year Rs.25.91 lacs) for Pension Scheme in the Profit and Loss
 Account.
 
 The minimum interest rate payable by the trust to the beneficiaries
 every year is being notified by the Government. The company has an
 obligation to make good the shortfall, if any, between the return from
 the investments of the Trust and the notified interest rate.
 
 Defined Benefit Plan
 
 The Company recognises the liability towards the gratuity at each
 Balance Sheet date.
 
 The present value of obligation is determined based on actuarial
 valuation using the Projected Unit Credit Method, which recognises each
 period of service as 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 and Post Retirement Medical
 Benefits is also recognised in the same manner as gratuity.
 
 Under Post retirement medical benefits, the company would reimburse a
 fixed amount towards the mediclaim policy (subject to ceiling limits)
 to its employees. Such payment is not dependent upon the future salary
 increases, inflation and medical costs trend and therefore the impact
 of increase / decrease in medical cost trends is not required to be
 ascertained.
 
 5.  The value of realizations of Current Assets, Loans and Advances in
 the ordinary course of business will not be less than the value at
 which they are stated in the Balance Sheet.
 
 6.  Confirmation of balances called from the sundry debtors and
 creditors are yet to be received from some parties. Debit / credit
 balances of such parties, so far as these have not been subsequently
 realized or discharged are subject to confirmation / reconciliation.
 Confirmation of balances to the extent received have been reconciled.
 
 7.  Figures of the previous year have been regrouped/re-cast wherever
 necessary.