Texmaco

1.  The Company accounts for gratuity liability of its Engineering
 units equivalent to the premium amount paid/ payable to Life Insurance
 Corporation of India (LIC). However, the entire amount of provision for
 gratuity has not been funded with LIC.
 
 2.  The Compensation under the Voluntary Retirement Scheme, payable in
 deferred monthly installments over a period of 4 years, by means of
 post-dated cheques of the value of Rs. NIL (previous year Rs. 0.91
 lakhs) issued to the employees.
 
 3. As per the Agreement with Chambal Fertilizers & Chemicals Ltd., when
 they took over the assets and liabilities of Baddi Unit from 01-10-99,
 Texmaco is liable to pay wages and salary in respect of excess workers/
 staffs taken over by them over and above the required one to run the
 Baddi Unit. The Company has paid Rs. 44.75 lakhs (Previous year Rs.
 39.01 lakhs) during the year to such workers/ staffs including various
 other related expenses. Such expenses have been shown as expenses on
 land and capitalised under the head Land.
 
 4.  Certain Fixed Assets are standing in the name of another party and
 in co-ownership.
 
 5.  Unclaimed dividend amount have been separately funded in the
 respective Bank Accounts.
 
 6.  In the opinion of the management, current assets, loans and
 advances have a value on realisation in the ordinary course of business
 unless otherwise stated, at least to the amount at which they are
 stated.
 
 7.  Balance of debtors and loans and advances are subject to
 confirmation from respective parties.
 
 8.  Related Party Disclosure:
 
 (i) Name of the related parties and relationship:
 
 Parties where control exists Relationship
 
 a) High Quality Steels Limited Subsidiary Company (99.87% of the
 Capital held by the Company) Macfarlane & Company Limited Subsidiary
 Company (71.27% of the Capital held by the Company) Texmaco Machines
 Private Limited Subsidiary Company (99.30% of the Capital held by the
 Company)
 
 b) Lionel India Limited Associate Company (34.28% of the Capital held
 by the Company)
 
 c) Key Management Personnel
 
 Shri S. K. Poddar Chairman
 
 Shri D. H. Kela Wholetime Director
 
 Shri Ramesh Maheshwari President & CEO
 
 d) Relatives of Key Management Personnel
 
 Shri Gaurav Agarwala Relative of Director
 
 9. Employees Benefit Obligation :
 
 The Company has adopted accounting standard (AS-15) (Revised) issued by
 the Institute of Chartered Accountants of India.  As per the
 transitional provision specified in the standard, the difference in the
 liability as per the existing policy followed by the Company and that
 arising on adoption of this standard is required to be charged to
 opening Reserves and Surplus Account. (Contd.)
 
 10.  Details of Shares/Units of Mutual Fund purchased and sold during
 the year:
 
 ACC Equity Shares 1000 of Rs.10 each, Kotak FMP IM Series Mutual Fund
 4000000 Units of Rs. 10 each, JM Money Manager Fund Super plus Plan
 Mutual Fund 1999180.336 Units of Rs. 10 each, Birla Sun Life Quarterly
 Interval Mutual Fund 5000000 Units of Rs.10 each, Reliance Liquid Plus
 Mutual Fund 49943.2445 Units of Rs. 10 each, UTI Liquid plus Mutual
 Fund 39991.442 Units of Rs. 10 each, Lotus India Liquid Mutual Fund
 3993729.844 Units of Rs.10 each.
 
 11.  There is a change in the basis of Accounting Policy of
 amortization in respect of Jigs & Fixtures and Royalty & Knowhow in
 full on yearly basis, instead of one third in earlier years. As a
 result profit for the Financial Year 2008-09 is reduced by Rs. 239.95
 Lakhs.
 
 12. Sales include interdepartmental transfers Rs. 20,061.00 lakhs
 (previous year Rs. 13,351.00 lakhs), tax deducted at source Rs. 735.73
 lakhs (previous year Rs. 263.70 lakhs) excess/(short) realisation of
 bills (net) (Rs. 17.74) lakhs (previous year  Rs. 3.83 lakhs).
 
 13.  Income from investment is on long term investments and it includes
 Rs. 12.60 lakhs from trade investment (previous year Rs. 8.10 lakh).
 
 14.  Export incentives, escalation, insurance claims and other claims
 have been accounted for on accrual basis based on latest data available
 with the Company and where the realisation of the amount is certain.
 
 15.  Consumption of raw materials, components, stores and spares parts
 includes profit/loss on sale thereof.
 
 16.  Previous years figures have been re-grouped/re-arranged wherever
 necessary.