(Rs. Lacs)
 
 1.a. Contingent Liabilities not provided for   31.3.2011    31.3.2010
 
 i) Claims against the Company not acknowledged as debt
 (excluding legal cases where amounts are 
 unascertainable)                                  81114        75209
 
 ii) Guarantees given by Banks on behalf of the 
     Company                                       62935        27950
 
 iii) Letter of Credit issued by Bank             305146       310579
 
 iv) Sales Tax demands in dispute                  70493        42996
 
 v) Bonds given to Customs Authority                1120          100
 
 vi) Sales Tax liability which may arise on 
 re-assessment or assessment                         214          108
 
 vii) Estimated Tax incidence on amounts disputed 
 in respect of Income Tax cases                     2000          483
 
 viii) Rent Air India Building                      1995         1995
 
 Note: The above claims/demands are at various stages of appeal and in
 the opinion of the company are not tenable.  Further, in some of the
 cases amounts included under contingent liabilities relate to
 commodities handled on Government of India account and liability, if
 any, would be recoverable from Government of India.
 
 1.b. Capital Commitments pending execution          294          NIL
 
 2.  FIXED ASSETS
 
 a) The process of issuance of sub-divided Lease Deeds in respect of STC
 Complex at New Delhi, residential land and flats at Mehrauli Road
 separately in the name of the company and its co-owners is pending.
 (Gross Cost of Land Rs. 104 lakh and Building Rs.2011 lakh)
 
 b) Registration of Deeds of Conveyance in respect of 2 flats at Kolkata
 is pending. (Total Purchase Value Rs. 6 lakh)
 
 c) Lease hold land valuing Rs.129 lakh at Bangalore is yet to be
 registered in favour of the company.
 
 3.  DEBTORS, LOANS, ADVANCES AND CLAIMS
 
 (a) Loans and advances include a sum of Rs. 8739 lakh recoverable from
 one of the parties, against which the company has initiated legal
 actions including criminal proceedings. Yet as a measure of abundant
 caution, full provision has been made in the earlier years.
 
 (b) In respect of a trading operation in Wheat, disposal of goods and
 recovery have not taken place as per contract for which legal actions
 have been initiated. Entire dues including recoverable from FCI
 aggregating to Rs. 5841 lakh has been provided / written off in earlier
 years. Further, the additional sales tax liability that may arise, for
 which the company has given declaration, is not ascertained.
 
 (c) Sundry Debtors include Rs.12199 lakh (Rs.17641 lakh) of one of the
 Associates, which is overdue. The company is in the process of
 reconstruction by Asset Reconstruction Company (India) Limited (ARCIL).
 The dues are fully secured by pledge of Stocks. The decision to run the
 plant is in an advanced stage. No provision is considered necessary.
 
 (d) Sundry Debtors include Rs.113793 lakh (Rs.90311 lakh) of one of the
 Associates, which include overdues of Rs.100375 lakh. The said dues are
 secured by pledge of stocks of Rs. 99065 lakh, Earnest Money Deposit of
 Rs. 3112 lakh, Corporate Guarantee of its holding company etc. As the
 Associate has initiated the process to sell its plant, no provision is
 considered necessary at this stage.
 
 (e) Claims Recoverable include Rs. 2752 lakh towards trading loss
 incurred during 2010-11 on import of pulses on Government account.
 Further, as per minutes dated 14.02.2011 and 25.04.2011 of Ministry of
 Consumer Affairs, claims for 2008-09 and 2009-10 have been revised on
 sold quantity basis and differential actual trading losses of Rs.8167
 lakh have been booked in the current financial year as claim
 recoverable from Ministry of Consumer Affairs.
 
 (f) Sundry Debtors include Rs.56785 lakh (Rs.57942 lakh) on account of
 export of Pharma product to Foreign Buyers on back to back basis. The
 entire amount is overdue. As there is default in payments against
 export bills by the buyers which have ultimately gone into liquidation,
 litigation processes have been initiated by STC as well as by Indian
 Associates and their bankers. A claim of Rs.52786 lakh has been
 admitted by the liquidator. There is, however, a corresponding credit
 under back to back arrangement of Rs. 56894 lakh under sundry
 creditors. In view of this no provision is considered necessary.
 
 (g) Sundry Debtors include overdues of Rs.39717 lakh (Rs.39761 lakh)
 against exports effected under the EXIM Bank Insurance Linked
 Post-shipment Credit Facility. Since there is delay in repatriation of
 export proceeds the company has initiated legal proceedings with
 defaulting associates. Repayment of some over dues have been received
 and with all-out efforts, which are being made, the Company is
 confident of full recovery hence no provision is considered necessary.
 
 (h) Sundry Debtors include Rs.494 lakh towards reimbursement of loss in
 supply of PDS Items to M/s Gujarat State Civil Supply Corporation under
 the subsidized scheme of Government of India. As the claim is under
 process in Government of India, no provision is considered necessary.
 
 (i) Debtors, loans, advances and claims include Rs.5737 lakh (Rs.1324
 lakh) pertaining to previous year which are under dispute/litigation.
 In some cases, there are corresponding payments withheld or receivables
 relating to commodities handled on Government of India''s accounts.
 Hence no provision is considered necessary.
 
 (j) Balances in parties'' accounts are subject to
 reconciliation/confirmation in many cases and are subject to
 adjustments that may arise on reconciliation.
 
 (k) Claims recoverable considered good include claims lodged on
 Insurance Companies amounting Rs.20.65 lakh, which are in the process
 of acceptance/final settlements.
 
 4.  INVESTMENT
 
 Long term investment include Rs. 282 lakh in its 100% subsidiary
 company namely STCL. Though the subsidiary company is having negative
 net worth as per its Balance Sheet as on 31st March 2010, no provision
 has been made, as the subsidiary company is in business and had Trading
 Profit during 2009-10 and also keeping in view of its long term
 business plan.
 
 5.  LIABILITIES
 
 (a) Current liabilities include balances that are subject to
 reconciliation/ confirmation and consequential adjustments.
 
 (b) Amount outstanding and payable to Micro, Small or Medium
 Enterprises - NIL (NIL).
 
 6.  OTHER TRADE INCOME
 
 Other Income (Trade) includes Exchange Gain (net) Rs.17605 lakh
 (Rs.23426 lakh) comprising Rs.1752 lakh (Rs.31641 lakh) credit and
 Rs.4147 lakh (Rs.8214 lakh) debit. Out of this Rs16439 lakh (Rs. 21660
 lakh) is on account of business associates which is adjusted against
 purchase/ sales as the case may be and to this extent there is no
 impact on the profits for the year.
 
 7.  PURCHASES & SALES
 
 Purchases and Sales mainly represent procurement and/or supply
 undertaken for and on behalf of Business Associates by the Company on a
 fixed trade margin where the ultimate beneficiary is the Associate who
 is also liable to indemnify the losses, if any. The recognition is
 based on the legal and contractual obligations assumed by the Company
 and the transfer of title to the goods passing through it under the
 contract.
 
 8.  ADDITIONAL INFORMATION PURSUANT TO PART II OF SCHEDULE-VI OF THE
 COMPANIES ACT,1956
 
 a) Quantitative details in compliance of para(s) 3(i) (a), 3(ii) (a)
 (1) &(2), 3(ii) (b) and 4-D(c) of Part II, Schedule- VI to the
 Companies Act, 1956 as amended by notification No.GSR.494 (E) dated
 30th October, 1973 is annexed.
 
 9.  INFORMATION ABOUT BUSINESS SEGMENT AS AT 31.03.2011 - attached.
 
 10.  RELATED PARTY TRANSACTION: 1.  Key Management Personnel
 
 i.  Directors
 
 a.  Shri N. K. Mathur Chairman & Managing Director
 
 b.  Shri N. K. Nirmal Director (Finance)
 
 c.  Shri S. S. Roy Burman Director (Marketing)
 
 d.  Shri M. M. Sharma Director (Personnel)
 
 e.  Shri Khalil Rahim Director (Marketing) ii.  Relatives of Directors
 None
 
 Remuneration paid to Directors (Key Management Personnel) has been
 disclosed in Schedule - 17 (A) Overheads - Establishment
 
 2.  Subsidiary - STCL Ltd. (Wholly Owned Subsidiary)
 
 Transactions - Advance Rent received during the year Nil (Rs.438.04
 lakh)
 
 Balance at the year end - Nil (Rs. 438.04 lakh)
 
 The following officials of STC held key Management position in the
 above company:
 
 Name of the officials Designation
 
 Sh. NK Mathur Chairman
 
 Sh. N.K. Nirmal Director
 
 11.  DISCLOSURE AS PER AS-15 (EMPLOYEES BENEFIT)
 
 General description of various defined employee benefit schemes are as
 under:
 
 A.  Provident Fund
 
 Company pays fixed contribution to Provident Fund at predetermined
 rates to a separate trust, which invests the funds in permitted
 securities. The contribution to the fund for the year is recognized as
 expense and is charged to the Profit & Loss Account. The obligation of
 the Company is to make such fixed contribution and to ensure a minimum
 rate of return to the members as specified by the Government. Overall
 interest earnings and cumulative surplus is more than the statutory
 interest payment requirement
 
 B.  Post-Retirement Medical Facility (PRMF)
 
 The Company has Post-Retirement Medical Facility (PRMF), under which
 retired employee and the spouse are provided medical facilities in the
 empanelled hospitals. They can also avail treatment as Out-Patient
 subject to a ceiling fixed by the Company. Post retirement medical
 benefits are recognised in the books as per the actuarial valuation.
 
 C.  Leave
 
 The Company provides for Earned Leave (EL) benefit and Half Pay Leave
 (HPL) benefit to the employees of the Company which accrue annually at
 30 days and 20 days respectively. EL subject to a maximum of 300 days
 is en-cashable while in service/on superannuation /death. 50% of EL
 subject to a maximum of 150 days is en- cashable on resignation. EL is
 en-cashable while in service leaving a minimum balance of 15 days twice
 in a year. HPL is en-cashable only on superannuation/death up-to the
 maximum of 300 days (150 days full pay) as per the rules of the
 Company. The liability for EL and HPL is recognised in the books as per
 the actuarial valuation.
 
 D.  Gratuity
 
 The Company has a defined benefit gratuity plan. Every employee who has
 rendered continuous service of five years or more is entitled to get
 gratuity at 15 days salary (15/26 x last drawn basic salary plus
 dearness allowance) for each completed year of service subject to a
 maximum of Rs. 10 lakh on superannuation, resignation, termination,
 disablement or death. The liability for gratuity is recognized in the
 books as per the actuarial valuation.
 
 E.  Other Benefits
 
 Service awards are given to regular employees for rendering continuous
 service in the Company for long service rendered by them on completion
 of 15/25/30/35 years of service. Beside this, service award @ Rs.1000/
 - per year for each completed year of service is also given at the time
 of retirement subject to a maximum of Rs. 30,000/-. The liability on
 this account is recognised in the books as per the actuarial valuation.
 
 F.  Pension
 
 In pursuance to the guidelines issued by the Department of Public
 Enterprises, regarding revision of pay scales w.e.f. 1.1.07 inter-alia
 providing for superannuation benefits up to 30% of basic pay plus DA
 including CPF, gratuity, pension and post-superannuation medical
 benefits, the company had formulated a pension scheme for its retiring
 employees. Under the scheme the employer is to contribute 9% of Basic
 Pay   D.A of eligible employees.
 
 The Pension Scheme has been approved by Govt. of India. The process for
 implementation of the Pension Scheme including creation of trust is on
 in consultation with LIC. A provision of Rs. 464 lakh (Rs. 931 lakh)
 has been made on estimated basis for the year.
 
 12.  GENERAL
 
 a) The company has a system of physical verification of inventories and
 fixed assets in phased manner at regular interval and verified with
 Books of Accounts and records. Differences observed, if any, are dealt
 with accordingly in the books.
 
 b) As required by the Accounting Standard-28 on impairment of Assets,
 the company has carried out the assessment of impairment of assets.
 There has been no impairment loss during the year.
 
 c) Wherever necessary, previous year''s figures have been
 re-arranged/re-grouped to make them comparable with those of the
 current year.
 
 d) Accounting policies, Schedules and Notes on accounts attached form
 an integral part of the accounts.
 
 e) Values in brackets indicate corresponding previous year figure.