Sunil Hitech Engineers

1 i.  Term Loan from Kotak Mahindra Bank is secured by way of
 hypothecation of respective assets, first pari-passu charge on specific
 movable assets of the Company procured out of Term Loan.
 
 ii.  Term Loan from L & T Finance Limited Bank is secured by way of
 first pari-passu charge on specific movable assets of the Company
 procured out of Term Loan.
 
 iii.  Term Loan facility from Standarad Chartered Bank is secured by
 way of first pari-passu charge on specific movable assets of the
 Company procured out of Term Loan/LC facility.
 
 iv.  Term Loan from UCO Bank is secured by way of first pari-passu
 charge on specific movable and immovable fixed assets of the Company
 procured out of Term Loan.
 
 v.  The LC facility from the Axis Bank is secured byway of first and
 exclusive charge on current assets, movable plant & machinery.
 
 vi.  Working Capital facilities from consortium bankers i.e. UCO bank,
 SBI, Union Bank of India, Oriental Bank of Commerce & HSBC Bank is
 modified on 29th July, 2008 are secured by way of hypothecation of
 stock & book debts both present & future of the Company, first
 pari-passu charge (hypothecation] on the moveable fixed assets,
 Personal Guarantees of Chairman, and other Directors.
 
 vii.  The office premises loan from the ICICI Finance Company is
 secured by assets procured from the funds out of the said Loan.
 
 viii. Housing Loans from UCO Bank, HDFC Bank, ICICI Bank are secured
 byway of equitable mortgage of immovable property procured out of loan.
 
 ix. Housing Loan from HDFC Bank is secured by way of immovable property
 procured out of above loan.
 
 x.  Mobilisation Advances from clients are secured against bank
 guarantees.
 
 xi.  Hire purchase finance [Term Loan) from Kotak Mahindra Bank, L&T
 Finance, Tata Capital, Standard Chartered Bank is secured by way of
 hypothecation of respective asset, first pari-passu charge on the
 movable fixed assets.
 
 xii.  Loans in foreign currencies equivalent to Rs. 258.80 Lacs
 (forming part of loan from banks - IDBI Mumbai) are secured by first
 mortgage on the Companys movable properties i.e. cranes at certain
 locations and/or by hypothecation of movables at those locations (save
 & except book debts] both present & future.
 
 2.  Contingent liabilities not provided for
 
 i.  In respect of Sales Tax matters for which the Company has preferred
 appeals with appropriate authorities - Rs. 61.20 Lacs (P.Y. Rs. 61.20
 Lacs).
 
 ii.  In respect of Excise & service tax matters for which the Company
 has preferred appeals with appropriate authorities - Rs. 110.03 Lacs
 (P.Y. Nil).
 
 iii.  In respect of service tax matters for which the Company has not
 acknowledged as debts - Rs. 337.96 Lacs (P.Y. Rs. 408.61 Lacs).
 
 iv.  In respect of Letter of Credits with banks - Rs. 5,674.00 Lacs
 (P.Y Rs. 596.23 Lacs).
 
 v. In respect of counter guarantees given to bank against guarantees
 given by bank Rs. 15,571.00 Lacs (P.Y. Rs. 11,785.54 Lacs).
 
 3.  Capital Commitments
 
 i.  Estimated amount of Contracts remaining to be executed on Capital
 Account (Net of Advances) Rs. 1,500.00 Lacs [P.Y. Rs. 494.87 Lacs).
 
 ii.  The Company has undertaken to provide continued financial support
 to its subsidiaries, Sunil Hi-tech Engineers & Mfg. Pvt. Ltd.
 
 4.  The transactions entered (before the date of contract agreement)
 with the Associate Company amounting to Rs. 3,092.76 Lacs, in relation
 to which the Company has not taken prior approval of the Central
 Government under section 297 of the Companies Act, 1956. The Company
 has applied for compounding under section 297 for the transactions
 entered with Gangakhed Sugar & Energy Pvt. Ltd. - its an Associate
 Company for the services rendered vide Letter of Agreement dated 11th
 Dec, 2008 from the period 11th Dec, 2008 to 28th Feb, 2009.  Whereas
 the Company has got the approval from Central Government for the
 services entered after 1st April, 2009 vide Letter dated 31st March,
 2009.
 
 5.  The Company has applied for compounding under section 297 for the
 transactions entered with Sunil Hitech Eng. & Mfg. Pvt Ltd -its
 Subsidiary Company for the purchase of goods vide Letter of Agreement
 dated 1st April, 2008 from the period 1st April to 28th Feb, 2009,
 however approval is not yet received from the Central Government for
 the aforementioned period. Whereas the Company has got the approval
 from Central Government for the services entered after 1st April, 2009
 vide Letter of Agreement dated 31st March, 2009.
 
 6.  In terms of the approval of the shareholders of the Company and as
 per the applicable Statutory provisions including Security and Exchange
 Board of India (Disclosure and Investor Protection) Guidelines 2000,
 the Company, on 14th August, 2007, has issued and allotted 38,00,000
 warrants on preferential basis to entities in the Promoter Group
 entitling them to apply for equivalent number of fully paid up equity
 shares of Rs. 10/- each of the Company, at the price of Rs. 146/- per
 equity shares. The Shareholder has paid an amount equal to 10% of the
 value at the time of allotment of warrant. The warrant holders have a
 right to apply for equity shares within 18 months from the date of
 allotment of the warrants. The shareholders did not exercise above
 option within the above time frame (before 30th April, 2009) henceforth
 as per SEBI guidelines it has to be forfeited and transferred to the
 Capital Reserve A/c.
 
 7.  i.  Company has paid capital advances of Rs. 200 lacs and 94 lacs
 to Sadodaya Laxmi Infra Pvt.  Ltd. (Company in which relative of the
 director is (interested) and Global Realities respectively in FY
 2007-08. Till the date, title deed not get executed in the name of
 Company.
 
 ii. Capital advances includes an amount of Rs. 725.79 lacs paid to
 Gokul Construction against Registered Agreement for Sale dated 4th Jan,
 2008. However as per information and explanation given to us, Title
 Deed is expected to be registered in the name of Company in F.Y. 09-10.
 
 8.  Amount of Rs. 11.25 Cr deposited with Maharashtra State Mining
 Corporation
 
 SHEL has been selected as a highest bidder for mine in a JV with
 Maharashtra State Mining Corporation. The mine is located at Jamni
 Adkoli, Wani (nearWardha), Maharashtra.
 
 Having been selected as a highest bidder, SHEL was asked to deposit a
 sum of Rs. 11.25 crs and same has been deposited on 28th April, 2008.
 Company is awaiting LOI from Maharashtra Govt, to initiate process for
 forming a JV Company.
 
 9.  In the opinion of Board of Directors all the Current Assets, Loans
 and Advances have a value on realisation in the ordinary course of
 business at least equal to the amount at which they are stated and that
 all the known liabilities relating to the year have been provided for.
 
 10.  Profit for the year has been arrived after adjusting prior period
 debits of Rs. 80.57 Lacs (P.Y. Rs. 9.40 Lacs) and prior period credits
 of Rs. 3.95 Lacs (P.Y. Nil) charged/ credited to Profit & Loss Account.
 
 11. Related Party Disclosures (as identified and certified by the
 management)
 
 As per Accounting Standard 18 issued by the Institute of Chartered
 Accountants of India, the disclosures of transactions with the related
 parties as defined in the Accounting Standard are given below:
 
 i.  List of related parties where control exists and related parties
 with whom transactions have taken place and relationships:
 
 Sr. No. Name of the Related Party              Relationship
 
 1.      Sunil Hi-Tech Enqq, & Mfg. Pvt, Ltd.   Subsidiary Company 
                                                (Control exists)
 
 2.      Ganqakhed Sugar & Energy Pvt. Ltd.     Associate Company
 
 3.  a) R.M. Gutte
 
     b) Mrs. S. R. Gutte
 
     c) Sunil R. Gutte                    Key Management Personnel
 
     d) Vijay R. Gutte
 
     e) M. N. Mohanan
 
     f) S. K. K. Ramaiah_
 
 4.a) Swati Phad                          Relative of Director
 
 5.a) Sunil Hitech Energy Pvt. Ltd.       
 
 Enterprises over which Key Managerial Personnel/relatives of them
 
 b) Sadoday Laxmi Infra. Pvt. Ltd.          
 
 are able to exercise significant influence
 
 19. Opening Stock & Closing Stock
 
 Note: Opening Stock & Closing Stock of Trading based items are nit.
 
 12.  The Company has not provided information of vendors regarding
 their status under the Micro, Small and Medium Enterprises Development
 Act, 2006 and hence disclosures relating to amounts unpaid as at the
 year end together with interest paid/payable under this Act have not
 been given.
 
 13.  Segment Information
 
 Primary Segment Reporting: Business Segments
 
 The Companys business segments were classified into Project, and 0 &
 M, Supply.
 
 Segment Composition:
 
 Project Segment: This segment is engaged in the business of
 Fabrication, Erection & Commissioning of Boilers (Power Plants),
 Erection, Testing, Commissioning of ESP, Transmission & Distribution
 and EPC Contract.
 
 O & M, Supply Segment: This segment is engaged in the business of
 Repair & Maintenance, Overhauling, and Renovations of Boilers and
 auxiliaries, Ash Handling Systems etc. and Supply of Economizer Coils,
 Reheater Coils, and Raiser Tubes & J Bends at various Thermal Power
 Plants.
 
 Inter Segment Transfer: Segment revenues, segment expenses and segment
 results include transfer between business segments that are made based
 on negotiation between segments with reference to the costs, market
 prices and business risks, within the overall optimisation objective
 for the Company and are comparable with competitive market prices
 charged to external customers. Inter-segment transfer are eliminated on
 consolidation.
 
 During the year Segment Reporting has been reconstituted in line with
 the revised reporting norms of the Company.  -
 
 Consequently, segment figures for the previous year have been
 regrouped.