wimco limited

261

wimco limited

REPORT OF THE BOARD OF DIRECTORS

TO THE MEMBERS OF WIMCO LIMITED

1. YourDirectorssubmittheirReportforthefinancialyearended31stMarch,2016.

2. COMPANY PERFORMANCE

TheCompany’sbusinessactivitiesaremainly focusedonfabricationandassembly of machinery for tube filling, cartoning, wrapping, materialhandling and conveyor solutions for the FMCG and Pharmaceuticalindustry.

During the year, yourCompany recorded aNet Revenueof` 1,380.74lakhs(previousyear`1,290.45lakhs)registeringamodestgrowthof7%over thepreviousyear.Theoperating lossof theCompanywas`20.68lakhs(previousyear`47.61lakhs).

Due to sluggish demand conditions in the FMCG and Pharmaceuticalindustry,theCompany’sorderbookremainedrelativelyweakduringthefirsthalfoftheyearwithcustomerskeepingtheircapitalexpenditureonhold.Theinvestmentclimate,however,improvedtowardsthesecondhalfoftheyearwithcustomersconfirmingordersforpackagingmachines.YourCompanyishopefulforabetter2016-17.

3. DIVIDEND

Inviewofthelossesincurred,yourDirectorsareunabletorecommendanydividendfortheyearunderreview.

4. DIRECTORS AND KEY MANAGERIAL PERSONNEL

(a) Changes in Directors and Key Managerial Personnel during the year

During the year under review, Mr. K. N. Grant stepped down asChairman and Director of the Company with effect from close ofwork on 22nd January, 2016. Your Directors place on record theirappreciationforthevaluablecontributionmadebyMr.Grantduringhistenure.

Mr.R.Tandon,Director,wasappointedastheChairmanoftheBoardofDirectorsoftheCompany(‘theBoard’)witheffectfrom1stMarch,2016.

(b) Retirement by rotation

InaccordancewiththeprovisionsofSection152(6)oftheCompaniesAct,2013(‘theAct’)andArticle131oftheArticlesofAssociationoftheCompany,Mr.RajendraKumarSinghi(DIN:00009931),Director,willretirebyrotationattheensuingAnnualGeneralMeeting(‘AGM’)oftheCompanyand,beingeligible,offershimselfforre-election.YourBoardhasrecommendedhisre-election.

(c) Declaration of Independence by the Independent Directors

The Independent Directors of your Company have confirmed thattheymeet thecriteriaof IndependenceasprescribedunderSection149(6)oftheActreadwithRule5oftheCompanies(AppointmentandQualificationofDirectors)Rules,2014.

(d) Attributes, qualifications and appointment of Directors

As reported last year, the attributes and qualifications of theIndependentDirectorsasprovidedinSection149(6)oftheActandRule5oftheCompanies(AppointmentandQualificationofDirectors)Rules, 2014 were adopted by the Nomination and RemunerationCommittee.Thesaidattributesandqualifications,asapplicable,werealsoadoptedinrespectoftheotherDirectors.

TwooftheNon-ExecutiveDirectorsoftheCompany,otherthantheIndependent Directors, are executives of ITC Limited, the HoldingCompany, and fulfil the fit and proper criteria for appointment asDirectors.Further,alltheDirectorsoftheCompany,otherthantheIndependentDirectorsandtheManagingDirector,areliabletoretirebyrotationandone-thirdofthemretireeveryyearandareeligibleforre-election.

(e) Remuneration Policy

The Remuneration Policy of the Company, for the Directors, KeyManagerialPersonnelandotheremployeesasapprovedbytheBoard,isenclosedasAnnexure 1 to this Report.

5. BOARD AND BOARD COMMITTEES

TheAuditCommitteeof theBoardpresentlycomprisesMr.R.K.Singhi(Chairman), Mr. S. Banerjee and Mr. P. Chatterjee. The NominationandRemunerationCommitteeof theBoard comprisesMr. P.Chatterjee(Chairman),Mr. S. Banerjee andMr. R. Tandonand theSecurityholdersRelationship Committee comprises Mr. R. K. Singhi (Chairman), Mr. R.SenguttuvanandMr.R.Tandon.

During the year ended 31stMarch, 2016, the followingmeetings of the Board andBoardCommitteeswereheld:

Board / Board Committee Number of meetings Date(s) of meeting(s)

Board 4 28thApril,2015

21stAugust,2015

11thDecember,2015

1stMarch,2016

Board / Board Committee Number of meetings Date(s) of meeting(s)

AuditCommittee 2 28thApril,20151stMarch,2016

NominationandRemunerationCommittee

2 28thApril,20151stMarch,2016

Securityholders RelationshipCommittee

8 30thJune,20157thAugust,20154thSeptember,201511thSeptember,20159thNovember,201524thDecember,201529thFebruary,201622ndMarch,2016

The attendance of the Directors of the Company at the Board and BoardCommitteemeetingsheldduringtheyearisgivenbelow:

Sl. No.

Name of the Director

Number of meetings attended

Board Audit Committee

Nomination and

Remuneration Committee

Securityholders Relationship Committee

1. Mr.R.Tandon* 3 2 2 8

2. Mr.S.Banerjee 4 2 2 N.A.

3. Mr.P.Chatterjee 4 2 2 N.A.

4. Mr.C.R.Dua 1 N.A. N.A. N.A.

5. Mr.D.Dutta 4 N.A. N.A. N.A.

6. Mr.K.N.Grant# 3 N.A. 1 N.A.

7. Mr.R.K.Singhi$ 3 N.A. N.A. 8

8. Mr.R.Senguttuvan 4 N.A. N.A. 8

* CeasedtobeMember&ChairmanoftheAuditCommitteeandChairmanoftheSecurityholdersRelationshipCommitteewitheffectfrom2ndMarch,2016.

# CeasedtobeDirectorwitheffectfromthecloseofworkon22ndJanuary,2016.

$ AppointedMember&ChairmanoftheAuditCommitteeandChairmanoftheSecurityholdersRelationshipCommitteewitheffectfrom2ndMarch,2016.

6. DIRECTORS’ RESPONSIBILITY STATEMENT

AsrequiredunderSection134(5)oftheAct,yourDirectorsconfirmhaving:

i) followed in the preparation of the Annual Accounts, the applicableAccounting Standards with proper explanation relating to materialdepartures,ifany;

ii) selectedsuchaccountingpoliciesandappliedthemconsistentlyandmadejudgementsandestimatesthatarereasonableandprudentsoastogiveatrueandfairviewofthestateofaffairsoftheCompanyattheendofthefinancialyearandofthelossoftheCompanyforthatperiod;

iii) taken proper and sufficient care for the maintenance of adequateaccountingrecords inaccordancewiththeprovisionsof theAct forsafeguarding the assets of the Company and for preventing anddetectingfraudandotherirregularities;

iv) preparedtheAnnualAccountsonagoingconcernbasis;and

v) devisedpropersystemstoensurecompliancewiththeprovisionsofallapplicablelawsandthatsuchsystemsareadequateandoperatingeffectively.

7. SUBSIDIARIES, ASSOCIATES AND JOINT VENTURES

TheCompanydoesnothaveanysubsidiary,associateorjointventure.

8. PARTICULARS OF EMPLOYEES

TherelationsbetweenyourCompanyanditsemployeeshavebeencordialduring the year under review.None of the employees of theCompanyis drawing remuneration exceeding that specified in Rule 5(2) of theCompanies (Appointment and Remuneration of Managerial Personnel)Rules,2014.

9. RISK MANAGEMENT

TheCompany’sriskmanagementframework,designedtobringrobustnesstotheriskmanagementprocessesintheCompany,addressesrisksintrinsictooperations,financialsandcompliancesarisingoutoftheoverallstrategyoftheCompany.

Management of risks vests with the executive management which isresponsiblefortheday-to-dayconductoftheaffairsoftheCompany.The

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InternalAuditorappointedbytheBoardperiodicallycarriesoutriskfocusedaudits with the objective of identifying areas where risk managementprocessescouldbestrengthened.AnnualupdateisprovidedtotheAuditCommittee on the effectiveness of the Company’s risk managementsystemsandpolicies.

10. INTERNAL FINANCIAL CONTROLS

Your Company has in place adequate internal financial controls withrespecttothefinancialstatements,commensuratewithitssizeandscaleofoperations.TheAuditCommitteewhichprovidesguidanceoninternalcontrols, also reviews internal audit findings and implementation ofinternalauditrecommendations.

During the year, the internal financial controls in the Company withrespecttothefinancialstatementsweretestedandnomaterialweaknessin the design or operation of such controls was observed. NonethelessyourCompany recognises that any internal financial control framework,nomatter howwell designed, has inherent limitations and accordingly,regularauditandreviewprocessesensurethatsuchsystemsarereinforcedonanongoingbasis.

11. PARTICULARS OF LOANS, GUARANTEES AND INVESTMENTS

Duringtheyearended31stMarch,2016,theCompanyhasneithergivenanyloanorguaranteenorhasmadeanyinvestmentunderSection186ofthe Act.

12. RELATED PARTY TRANSACTIONS

During the year ended 31st March, 2016, the Company has neitherentered into any contractor arrangementwith its relatedpartieswhichis not at arm’s length nor has the Company entered into anymaterialcontractorarrangementwiththem,intermsofSection188oftheAct.

13. SIGNIFICANT AND MATERIAL ORDERS PASSED BY THE REGULATORS / COURTS / TRIBUNALS

Duringtheyearunderreview,nosignificantormaterialorderswerepassedbytheRegulators/Courts/TribunalsimpactingthegoingconcernstatusoftheCompanyanditsfutureoperations.

14. EXTRACT OF ANNUAL RETURN

TheextractofAnnualReturnintheprescribedFormNo.MGT-9isenclosedasAnnexure 2 to this Report.

15. AUDITORS

The Auditors, Messrs. Deloitte Haskins & Sells, Chartered Accountants(‘DHS’),were appointedwith your approval at theNinety-First AGM toholdsuchofficetilltheconclusionoftheNinety-SixthAGM.YourBoard,intermsofSection139oftheAct,hasrecommendedfortheratificationof the Members the appointment of DHS from the conclusion of theensuingAGMtilltheconclusionoftheNinety-FourthAGM.YourBoard,intermsofSection142oftheAct,hasalsorecommendedfortheapprovaloftheMemberstheremunerationofDHSforthefinancialyear2016-17.AppropriateresolutioninrespectoftheaboveisappearingintheNoticeconveningtheensuingAGMoftheCompany.

16. CONSERVATION OF ENERGY, TECHNOLOGY ABSORPTION, FOREIGN EXCHANGE EARNINGS AND OUTGO

Considering the nature of business of your Company, no comment isrequiredonconservationofenergyandtechnologyabsorption.

Duringtheyearunderreview,theCompanyearnedforeignexchangeof ` 125.76 lakhs,while the totaloutflowof foreignexchangewas` 1.00 lakhs.

17. ACKNOWLEDGEMENT

TheBoardacknowledgesthesupportoftheGovernment,investors,banks,customers,suppliersandbusinessassociatesandthededicationandhardworkofitsemployees.

OnbehalfoftheBoard

R. Tandon R. Senguttuvan Date:3rdMay,2016 Chairman ManagingDirector

Annexure 1 to the Report of the Board of Directors for the financial year ended 31st March, 2016

Remuneration Policy

The Company’s Remuneration Strategy is designed to attract and retaintalentthatgivesitsbusinessauniquecompetitiveadvantageandenablestheCompanytoachieveitsobjectives.

TheCompany’sRemunerationStrategy,whilstfocusingonremunerationandrelatedaspectsofperformancemanagement,isalignedwithandreinforcestheemployeevaluepropositionofasuperiorqualityofworklife,thatincludesanenablingworkenvironment,anempoweringandengagingworkcultureandopportunitiestolearnandgrow.

The Compensation approach endeavours to align each employee with theCompany’sgoals.

POLICY

ItistheCompany’spolicy:

1. To ensure that its Remuneration practices support and encouragemeritocracy.

2. To ensure that Remuneration is market-led and takes into account thecompetitivecontextoftheCompany’sbusiness.

3. To leverage Remuneration as an effective instrument to enhanceperformanceandthereforetolinktheremunerationtobothindividualandcollectiveperformanceoutcomes.

4. ToadoptacomprehensiveapproachtoRemunerationinordertosupportasuperiorqualityofpersonalandworklife,inamannersoastojudiciouslybalanceshorttermwithlongtermpriorities.

5. TodesignRemunerationpracticessuchthattheyreinforcetheCompany’svaluesandcultureandtoimplementtheminamannerthatcomplieswithallrelevantregulatoryrequirements.

Remuneration of Managing / Wholetime Directors, Key Managerial Personnel and Senior Management

1. Remuneration of Key Managerial Personnel and Senior Management isdetermined and recommended by the Nomination and RemunerationCommittee and approved by the Board. Remuneration of ManagingDirector/WholetimeDirector/Managerisalsosubjecttotheapprovaloftheshareholders.

2. Remunerationisreviewedandrevisedperiodically,whensucharevisioniswarrantedbythemarket.

3. Apartfromfixedelementsofremunerationandbenefits,KeyManagerialPersonnel and Senior Management are also eligible for Variable Pay /PerformanceBonuswhichislinkedtotheirindividualperformanceandtheoverallperformanceoftheCompany.

4. Remuneration of KMP on deputation from the Holding Company /subsidiary / fellow subsidiary / associate companies, is aligned to theRemunerationPolicyofthatcompany.

Remuneration of Non-Executive Directors

Non-ExecutiveDirectorsareentitledtositting fees forattendingmeetingsoftheBoardandBoardCommittees,thequantumofwhichisdeterminedbytheBoard,within the limitsprescribedunder theCompaniesAct, 2013and theRulesthereunder.Non-ExecutiveDirectorsarealsoentitledtoreimbursementofexpensesforattendingmeetingsoftheBoardandBoardCommitteesandGeneralMeetings.

Remuneration of Management Staff

1. Remuneration of Management Staff is approved by the Board on therecommendationoftheExecutiveManagementCommittee.

2. Remuneration is reviewedand revisedperiodically,whensucha revisioniswarrantedbythemarket.Thequantumofrevisionis linkedtomarkettrends,thecompetitivecontextoftheCompany’sbusiness,aswellasthetrackrecordoftheindividualemployee.

3. VariablePaycognisesfortheperformanceratingoftheindividualemployeeandtheoverallperformanceoftheCompany.

Remuneration of Non-Management Staff

1. Remuneration of non-management staff is market-led, leveragesperformanceandisapprovedbytheExecutiveManagementCommittee.

2. Remuneration of non-management unionised employees is determinedthroughaprocessofnegotiationswiththerecognisedunion/soremployeerepresentatives,throughalong-termagreement.

3. Remuneration, comprising fixed and variable components, is arrived atbasedonbenchmarkingwithregion-cum-industrypracticesandcognizingformarketdynamics,competitivenessoftheunit,overallperformanceoftheCompany’s business, availability of skills, inflation/cost of living andtheimpactofcostescalationandproductivitygainsonpresentandfuturecompetitiveness.

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wimco limited

Annexure 2 to the Report of the Board of Directors

FORM NO. MGT-9

EXTRACT OF ANNUAL RETURN

as on the financial year ended on 31st March, 2016

[Pursuant to Section 92(3) of the Companies Act, 2013 and Rule 12(1) of the

Companies (Management and Administration) Rules, 2014]

I. REGISTRATION AND OTHER DETAILS

i) CIN : U24291MH1923PLC001082

ii) RegistrationDate : 7thSeptember,1923

iii) NameoftheCompany : WimcoLimited

iv) Category/Sub-CategoryoftheCompany : UnlistedPublicCompanylimitedbyshares

v) AddressoftheRegisteredofficeandcontactdetails : IndianMercantileChambers

R.KamaniMarg,BallardEstate

Mumbai–400001

Phone:022-66314504

Fax:022-22692228

vi) Whetherlistedcompany : No

vii) Name,AddressandContactdetailsofRegistrarandTransferAgent,ifany : N.A.

II. PRINCIPAL BUSINESS ACTIVITIES OF THE COMPANY

Allthebusinessactivitiescontributing10%ormoreofthetotalturnoveroftheCompanyshallbestated:

Sl. No.

Name and Description of main products / services NIC Code of the product/ service

% to total turnover of the Company

1. Fabrication/assemblyofmachinery,includingtubefillingmachines,cartoningmachines,wrappingmachines,loadingmachinesandconveyorsolutions.

28199 100%

III. PARTICULARS OF HOLDING, SUBSIDIARY AND ASSOCIATE COMPANIES

Sl. No.

Name and Address of

the company

CIN/GLN Holding/ Subsidiary/ Associate

% of shares held in the Company

Applicable Section

1. ITCLimited

VirginiaHouse,

37JawaharlalNehruRoad

Kolkata–700071

L16005WB1910PLC001985 Holdingcompany 98.21% 2(46)

IV. SHAREHOLDING PATTERN (Equity Share Capital Breakup as percentage of Total Equity)

(i) Category-wise Shareholding:

Category of Shareholders

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change during

the year

Demat Physical Total % of Total Shares

Demat Physical Total% of Total

Shares

A. Promoters

(1) Indian

a)Individual/HUF

b)CentralGovt.

c)StateGovt.(s)

d)BodiesCorp.

e)Banks/FI

f)AnyOther

–

–

–

18,50,81,193

–

–

–

–

–

–

–

–

–

–

–

18,50,81,193

–

–

–

–

–

98.21

–

–

–

–

–

18,50,81,193

–

–

–

–

–

–

–

–

–

–

–

18,50,81,193

–

–

–

–

–

98.21

–

–

N.A.

N.A.

N.A.

Nil

N.A.

N.A.

Sub-total (A)(1) 18,50,81,193 - 18,50,81,193 98.21 18,50,81,193 - 18,50,81,193 98.21 Nil

(2) Foreign

a)NRIs-Individuals

b)Other–Individuals

c)BodiesCorp.

d)Banks/FI

e)AnyOther

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

–

N.A.

N.A.

N.A.

N.A.

N.A.

Sub-total (A)(2) – – – – – – – – N.A.

Total shareholding of Promoter (A) = (A)(1)+(A)(2)

18,50,81,193 – 18,50,81,193 98.21 18,50,81,193 – 18,50,81,193 98.21 Nil

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Category of Shareholders

No. of Shares held at the beginning of the year No. of Shares held at the end of the year % Change during

the year

Demat Physical Total% of Total

SharesDemat Physical Total

% of Total

Shares

B. Public Shareholding

1. Institutions

a)MutualFunds

b)Banks/FI

c)CentralGovt.

d)StateGovt.(s)

e)VentureCapitalFunds

f)InsuranceCompanies

g)FIIs

h)ForeignVentureCapitalFunds

i)Others(specify)

–

5,027

–

–

–

–

–

–

–

4,844

10,090

–

–

–

–

1,550

–

–

4,844

15,117

–

–

–

–

1,550

–

–

0.00

0.00

–

–

–

–

0.00

–

–

–

4,627

–

–

–

–

–

–

–

4844

10,090

–

–

–

–

1,550

–

–

4844

14,717

–

–

–

–

1,550

–

–

0.00

0.00

–

–

–

–

0.00

–

–

Nil

0.00

N.A.

N.A.

N.A.

N.A.

Nil

N.A.

N.A.

Sub-total (B)(1) 5,027 16,484 21,511 0.01 4,627 16,484 21,111 0.01 0.00

2. Non-Institutions

a)BodiesCorp.

i)Indian

ii)Overseas

b)Individuals

i)Individualshareholdersholdingnominalsharecapitalupto` 1 lakh

ii)Individualshareholdersholdingnominalsharecapital inexcessof `1lakh

67,569

–

15,83,479

–

22,731

–

16,49,472

–

90,300

–

32,32,951

–

0.05

–

1.71

–

65,452

–

15,84,900

–

22,731

–

16,48,511

–

88,183

–

32,33,411

–

0.05

–

1.71

–

0.00

N.A.

0.00

N.A.

c)Others(specify)

-NonResidentIndians

23,185 10,860 34,045 0.02 25,242 10,860 36,102 0.02 0.00

Sub-total (B)(2) 16,74,233 16,83,063 33,57,296 1.78 16,75,594 16,82,102 33,57,696 1.78 Nil

Total Public Shareholding (B)=(B)(1)+ (B)(2)

16,79,260 16,99,547 33,78,807 1.79 16,80,221 16,98,586 33,78,807 1.79 Nil

C. Shares held by Custodian forGDRs&ADRs

– – – – – – – – N.A.

Grand Total (A+B+C) 18,67,60,453 16,99,547 18,84,60,000 100 18,67,61,414 16,98,586 18,84,60,000 100.00 Nil

(ii) Shareholding of Promoters:

Sl. No.

Shareholder’s Name

Shareholding at the beginning of the year Shareholding at the end of the year% change in shareholding

during the yearNo. of Shares % of total Shares of the Company

% of Shares pledged /

encumbered to total Shares

No. of Shares% of total

Shares of the Company

% of Shares pledged /

encumbered to total Shares

1. ITCLimited 18,50,81,193 98.21 Nil 18,50,81,193 98.21 Nil Nil

(iii) Change in Promoters’ Shareholding (please specify, if there is no change):

Sl.No.

Shareholdingatthebeginningoftheyear CumulativeShareholdingduringtheyear

No.ofShares %oftotalSharesoftheCompany

No.ofShares %oftotalSharesoftheCompany

Atthebeginningoftheyear

NochangeduringtheyearDate wise Increase / Decrease in PromotersShareholdingduringtheyear

Attheendoftheyear

(iv) Shareholding Pattern of top ten Shareholders (other than Directors, Promoters and Holders of GDRs and ADRs):

Sl. No. For each of the Top ten Shareholders

Shareholding at the beginning of the year Cumulative Shareholding during the year

No. of Shares % of total Shares of the Company


1. Rajdev Singh

Atthebeginningoftheyear 30,100 0.02

DatewiseIncrease/DecreaseinShareholdingduringtheyear – N.A. – N.A.

Attheendoftheyear 30,100 0.02

2. Sardar Gur Bachan Singh




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wimco limited

Sl. No.

For each of the Top ten ShareholdersShareholding at the beginning of the year Cumulative Shareholding during the year



3. Biren Dolatrai Nayak




4. Prakash T. Tulsiani




5. MSPL Limited


DatewiseIncrease/DecreaseinShareholdingduringtheyear – N.A. –- N.A.


6. Mathura Nath Banerjee




7. Sardar Paramjit Singh




8. Cawas Mistry




9. S. Rajdev Singh




10. Rishra Investments Limited




(v) Shareholding of Directors and Key Managerial Personnel: None of the Directors and Key Managerial Personnel hold any share in the Company.

V. INDEBTEDNESS

IndebtednessoftheCompanyincludinginterestoutstanding/accruedbutnotdueforpayment:NIL

VI. REMUNERATION OF DIRECTORS AND KEY MANAGERIAL PERSONNEL

A. Remuneration to Managing Director, Wholetime Directors and/or Manager: (Amountin `)

Sl. No.

Particulars of Remuneration R. Senguttuvan (Managing Director)

(refer Note 1)

1. Grosssalary

(a)SalaryasperprovisionscontainedinSection17(1)oftheIncome-taxAct,1961 –

(b)ValueofperquisitesunderSection17(2)oftheIncome-taxAct,1961 –

(c)ProfitsinlieuofsalaryunderSection17(3)oftheIncome-taxAct,1961 –

2. StockOption –

3. SweatEquity –

4. Commission-as%ofprofit-others,specify

–

5. Others,pleasespecify –

Total Amount (A) –

CeilingaspertheAct `30,00,000perannum(referNote2)

Note 1: ITC Limited (ITC), the Holding Company, has deputed the services of Mr. R. Senguttuvan to the Company without levy of any charge. Accordingly, Mr. Senguttuvan’s remuneration for the financial year ended 31st March, 2016 has been borne by ITC.

Note 2: Ceiling as per Part II of Schedule V to the Companies Act, 2013 has been disclosed, considering that the Company has not made profits during the financial year ended 31st March, 2016.

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B. Remuneration to other Directors: (Amountin `)

Sl. No.

Name of the Directors Particulars of Remuneration Total Amount

Fee for attending Board and Board Committee meetings

Commission Independent Directors’ Meeting Fee

1. Independent Directors

S.Banerjee 1,20,000 Nil 10,000 1,30,000

P.Chatterjee 1,20,000 10,000 1,30,000

Total Amount (B)(1) 2,40,000 20,000 2,60,000

2. Other Non-Executive Directors

K.N.Grant Nil Nil Nil Nil

C.R.Dua 20,000 20,000

D.Dutta 80,000 80,000

R.K.Singhi Nil Nil

R.Tandon Nil Nil

Total Amount (B)(2) 1,00,000 Nil Nil 1,00,000

Total Amount (B) = (B)(1) + (B)(2) 3,60,000

Total Managerial Remuneration (A + B) 3,60,000

Overall ceiling as per the Act `30,00,000perannum

(referNote)

Note: Ceiling as per Part II of Schedule V to the Companies Act, 2013 has been disclosed, considering that the Company has not made profits during the financial year ended 31st March, 2016.

C. Remuneration to Key Managerial Personnel other than MD / Manager / WTD: (Amountin`)

Sl. No.

Particulars of Remuneration S. K. Sipani

(Company Secretary)

(refer Note 1)

S. Pal

(Chief Financial Officer)

(refer Note 2)

1. Grosssalary

(a)SalaryasperprovisionscontainedinSection17(1)oftheIncome-taxAct,1961 – 20,63,771

(b)ValueofperquisitesunderSection17(2)oftheIncome-taxAct,1961 – 3,63,627

(c)ProfitsinlieuofsalaryunderSection17(3)oftheIncome-taxAct,1961 – –

2. StockOption – –

3. SweatEquity – –

4. Commission

-as%ofprofit

-others,specify

– –

5. Others,pleasespecify – –

Total Amount – 24,27,398

Note 1: ITC Limited (ITC) has deputed the services of Mr. S. K. Sipani to the Company without levy of any charge. Accordingly, Mr. Sipani’s remuneration for the financial year ended 31st March, 2016 has been borne by ITC.

Note 2: Mr. S. Pal is on deputation from ITC Limited.

VII. PENALTIES / PUNISHMENT / COMPOUNDING OF OFFENCES against the Company, Directors and other Officers in Default under the Companies Act, 2013 : None

OnbehalfoftheBoard

R. Tandon R. Senguttuvan Date:3rdMay,2016 Chairman ManagingDirector

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INDEPENDENT AUDITOR’S REPORT

To the Members of WIMCO Limited

Report on the Financial Statements

Wehave audited the accompanyingfinancial statementsofWIMCOLimited(“theCompany”),whichcomprise theBalanceSheetasatMarch31,2016,theStatementofProfitandLossandtheCashFlowStatementfortheyearthenended,andasummaryofsignificantaccountingpoliciesandotherexplanatoryinformation.

Management’s Responsibility for the Financial Statements

TheCompany’sBoardofDirectorsisresponsibleforthemattersstatedinSection134(5)oftheCompaniesAct2013(“theAct”)withrespecttothepreparationofthesefinancialstatementsthatgiveatrueandfairviewofthefinancialposition,financialperformanceandcashflowsoftheCompanyinaccordancewiththeaccounting principles generally accepted in India, including the AccountingStandardsprescribedundersection133oftheAct,asapplicable.

Thisresponsibilityalso includesmaintenanceofadequateaccountingrecordsinaccordancewiththeprovisionsoftheActforsafeguardingtheassetsoftheCompany and for preventing and detecting frauds and other irregularities;selection and application of appropriate accounting policies; makingjudgments and estimates that are reasonable and prudent; and design,implementationandmaintenanceofadequate internalfinancialcontrolsthatwere operating effectively for ensuring the accuracy and completeness ofthe accounting records, relevant to the preparation andpresentation of thefinancialstatementsthatgiveatrueandfairviewandarefreefrommaterialmisstatement,whetherduetofraudorerror.

Auditor’s Responsibility

Ourresponsibilityistoexpressanopiniononthesefinancialstatementsbasedonouraudit.

We have taken into account the provisions of the Act, the accounting andauditingstandardsandmatterswhicharerequiredtobeincludedintheauditreportundertheprovisionsoftheActandtheRulesmadethereunderandtheOrderundersection143(11)oftheAct.

We conducted our audit of the financial statements in accordancewith theStandards on Auditing specified under Section 143 (10) of the Act. ThoseStandards require that we comply with ethical requirements and plan andperformtheaudittoobtainreasonableassuranceaboutwhetherthefinancialstatementsarefreefrommaterialmisstatement.

Anauditinvolvesperformingprocedurestoobtainauditevidenceaboutthe amounts and disclosures in the financial statements. The proceduresselecteddependon theauditor’s judgment, including theassessmentof therisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.Inmakingthoseriskassessments,theauditorconsidersinternalfinancialcontrolrelevanttotheCompany’spreparationofthefinancialstatementsthatgiveatrueandfairviewinordertodesignauditproceduresthatareappropriateinthecircumstances.Anauditalsoincludesevaluatingtheappropriatenessofaccountingpoliciesusedandthereasonablenessoftheaccountingestimatesmade by the Company’s Directors, as well as evaluating theoverallpresentationofthefinancialstatements.

We believe that the audit evidence we have obtained is sufficient andappropriatetoprovideabasisforourauditopinion.

Opinion

In our opinion and to the best of our information and according to theexplanationsgiventous,theaforesaidfinancialstatementsgivetheinformation

requiredbytheActinthemannersorequiredandgiveatrueandfairviewinconformitywith theaccountingprinciplesgenerallyaccepted in Indiaof thestateofaffairsoftheCompanyasatMarch31,2016,anditslossanditscashflowsfortheyearendedonthatdate.

Report on Other Legal and Regulatory Requirements

1. AsrequiredbySection143(3)oftheAct,wereportthat:

a) Wehavesoughtand,obtainedalltheinformationandexplanationswhichtothebestofourknowledgeandbeliefwerenecessaryforthepurposeofouraudit.

b) In our opinion proper books of account as required by law havebeenkeptbytheCompanysofarasappearsfromourexaminationofthosebooks.

c) TheBalanceSheet,theStatementofProfitandLoss,andtheCashFlowStatementdealtwithbythisReportareinagreementwiththebooksofaccount;

d) Inouropinion,thefinancialstatementscomplywiththeAccountingStandardsprescribedundersection133oftheAct,asapplicable.

e) OnthebasisofwrittenrepresentationsreceivedfromthedirectorsasonMarch31,2016,andtakenonrecordbytheBoardofDirectors,none of the directors is disqualified as onMarch 31, 2016, frombeingappointedasadirectorintermsofSection164(2)oftheAct.

f) WithrespecttotheadequacyoftheinternalfinancialcontrolsoverfinancialreportingoftheCompanyandtheoperatingeffectivenessof such controls, refer to our separate Report in “Annexure A”.OurreportexpressesanunmodifiedopinionontheadequacyandoperatingeffectivenessoftheCompany’sinternalfinancialcontrolsoverfinancialreporting.

g) With respect to theothermatters tobe included in theAuditor’sReport in accordancewith Rule 11 of the Companies (Audit andAuditors) Rules, 2014, in our opinion and to the best of ourinformationandaccordingtotheexplanationsgiventous:

i. The Company does not have any pending litigations whichwouldimpactitsfinancialposition.

ii. TheCompanydidnothaveanylong-termcontractsincludingderivative contracts for which there were any materialforeseeablelosses.

iii. TherewerenoamountswhichwererequiredtobetransferredtotheInvestorEducationandProtectionFundbytheCompany.

2. As required by the Companies (Auditor’s Report) Order, 2016 (“theOrder”)issuedbytheCentralGovernmentintermsofSection143(11)oftheAct,wegivein“AnnexureB”astatementonthemattersspecifiedinparagraphs3and4oftheOrder.

ForDeloitte Haskins & Sells

CharteredAccountants

(Firm’sRegistrationNo.302009E)

Ketan Vora

Place:Kolkata Partner

Date:May3,2016 (MembershipNo.100459)

ANNEXURE “A” TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 1(f) under ‘Report on Other Legal and Regulatory Requirements’ of our report of even date)

Report on the Internal Financial Controls Over Financial Reporting under Clause (i) of Sub-section 3 of Section 143 of the Companies Act, 2013 (“the Act”)

We have audited the internal financial controls over financial reporting ofWIMCOLimited(“theCompany”)asofMarch31,2016inconjunctionwithourauditof thefinancial statementsof theCompany for theyearendedonthatdate.

Management’s Responsibility for Internal Financial Controls

TheCompany’smanagement is responsible for establishingandmaintaininginternal financial controls based on “the internal control over financialreporting criteria established by the Company considering the essentialcomponents of internal control stated in the Guidance Note on Audit ofInternalFinancialControlsOverFinancialReporting issuedbythe InstituteofChartered Accountants of India”. These responsibilities include the design,implementationandmaintenanceofadequate internalfinancialcontrolsthat

wereoperatingeffectivelyforensuringtheorderlyandefficientconductofitsbusiness, including adherence to company’s policies, the safeguarding of itsassets, the prevention and detection of frauds and errors, the accuracy andcompletenessoftheaccountingrecords,andthetimelypreparationofreliablefinancialinformation,asrequiredundertheCompaniesAct,2013.

Auditor’s Responsibility

OurresponsibilityistoexpressanopinionontheCompany'sinternalfinancialcontrolsoverfinancialreportingbasedonouraudit.WeconductedourauditinaccordancewiththeGuidanceNoteonAuditofInternalFinancialControlsOverFinancialReporting(the“GuidanceNote”)issuedbytheInstituteofCharteredAccountantsofIndiaandtheStandardsonAuditingprescribedunderSection143(10)oftheCompaniesAct,2013,totheextentapplicabletoanauditofinternal financial controls. Those Standards and the Guidance Note requirethatwecomplywithethicalrequirementsandplanandperformtheaudittoobtainreasonableassuranceaboutwhetheradequateinternalfinancialcontrolsover financial reportingwas establishedandmaintainedand if such controlsoperatedeffectivelyinallmaterialrespects.

Ourauditinvolvesperformingprocedurestoobtainauditevidenceaboutthe

268

wimco limited

adequacy of the internal financial controls system over financial reportingandtheiroperatingeffectiveness.Ourauditofinternalfinancialcontrolsoverfinancial reporting included obtaining an understanding of internal financialcontrols over financial reporting, assessing the risk that amaterialweaknessexists, and testing and evaluating the design and operating effectiveness ofinternal controlbasedon the assessed risk. Theprocedures selecteddependontheauditor’s judgement, includingtheassessmentoftherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror.

We believe that the audit evidence we have obtained is sufficient andappropriatetoprovideabasisforourauditopinionontheCompany’sinternalfinancialcontrolssystemoverfinancialreporting.

Meaning of Internal Financial Controls over Financial Reporting

A company's internal financial control over financial reporting is a processdesignedtoprovidereasonableassuranceregardingthereliabilityoffinancialreporting and the preparation of financial statements for external purposesin accordance with generally accepted accounting principles. A company'sinternal financial control over financial reporting includes those policies andproceduresthat(1)pertaintothemaintenanceofrecordsthat,inreasonabledetail, accurately and fairly reflect the transactions and dispositions of theassets of the company; (2) provide reasonable assurance that transactionsare recorded as necessary to permit preparation of financial statements inaccordancewith generally accepted accountingprinciples, and that receiptsand expenditures of the company are beingmade only in accordancewithauthorisationsofmanagementanddirectorsofthecompany;and(3)providereasonableassuranceregardingpreventionortimelydetectionofunauthorisedacquisition, use, or disposition of the company's assets that could have amaterialeffectonthefinancialstatements.

Inherent Limitations of Internal Financial Controls over Financial Reporting

Becauseoftheinherentlimitationsofinternalfinancialcontrolsoverfinancialreporting, including the possibility of collusion or improper managementoverrideofcontrols,materialmisstatementsduetoerroror fraudmayoccurandnotbedetected.Also,projectionsofanyevaluationoftheinternalfinancialcontrolsoverfinancial reportingto futureperiodsaresubjecttotheriskthattheinternalfinancialcontroloverfinancialreportingmaybecomeinadequatebecauseofchangesinconditions,orthatthedegreeofcompliancewiththepoliciesorproceduresmaydeteriorate.

Opinion

Inouropinion,tothebestofourinformationandaccordingtotheexplanationsgiven tous, theCompanyhas, inallmaterial respects,anadequate internalfinancial controls system over financial reporting and such internal financialcontrols over financial reporting were operating effectively as atMarch 31,2016,basedon“theinternalcontroloverfinancialreportingcriteriaestablishedby the Company considering the essential components of internal controlstated in the Guidance Note on Audit of Internal Financial Controls OverFinancialReportingissuedbytheInstituteofCharteredAccountantsofIndia”.




Ketan Vora



ANNEXURE B TO THE INDEPENDENT AUDITOR’S REPORT

(Referred to in paragraph 2 under ‘Report on Other Legal and Regulatory Requirements’ section of our report of even date)

(i) (a) TheCompanyhasmaintainedproperrecordsshowingfullparticulars,includingquantitativedetailsandsituationoffixedassets.

(b) The fixed assets were physically verified during the year by theManagementinaccordancewitharegularprogrammeofverificationwhich, in our opinion, provides for physical verification of all thefixedassetsatreasonableintervals.Accordingtotheinformationandexplanationgiven tous,nomaterial discrepancieswerenoticedonsuchverification.

(c) According to the information and explanations given to us andthe records examined by us and based on the examination of theregisteredsaledeedprovidedtous,wereport that, the titledeeds,comprisingalltheimmovablepropertiesoflandwhicharefreehold,areheldinthenameoftheCompanyasatthebalancesheetdate.

(ii) As explained to us, the inventories were physically verified duringtheyearbytheManagementatreasonableintervalsandnomaterialdiscrepancieswerenoticedonphysicalverification.

(iii) TheCompanyhasnotgrantedany loans, securedorunsecured, tocompanies,firms,LimitedLiabilityPartnershipsorotherpartiescoveredintheregistermaintainedundersection189oftheCompaniesAct,2013.

(iv) TheCompanyhasnotgrantedanyloans,madeinvestmentsorprovideguaranteesandhencereportingunderclause(iv)oftheCARO2016isnotapplicable.

(v) According to the information and explanations given to us, theCompanyhasnotacceptedanydepositduringtheyear.Therearenounclaimeddepositsoutstandingatanytimeduringtheyear.

(vi) ThemaintenanceofcostrecordshasnotbeenspecifiedbytheCentralGovernmentundersection148(1)oftheCompaniesAct,2013.

(vii) Accordingtotheinformationandexplanationsgiventous,inrespectofstatutorydues:

(a) The Company has been regular in depositing undisputed statutorydues,includingProvidentFund,Employees’StateInsurance,Income-tax, Sales Tax,Service Tax,Customs Duty, Excise Duty, Value AddedTax, cess and other material statutory dues applicable to it to theappropriateauthorities.

(b) There are no dues of Income-tax, Sales Tax, Service Tax, CustomsDuty, Excise Duty and Value Added Tax as onMarch 31, 2016 onaccountofdisputes.

(viii) In our opinion and according to the information and explanationsgiventousthecompanyhasnottakenanyloansorborrowingsfromfinancial institutions, banks and government or has not issued anydebentures.Hencereportingunderclause(viii)ofCARO2016isnotapplicabletotheCompany.

(ix) In our opinion and according to the information and explanationsgiventousthecompanyhasnotraisedmoneysbywayofinitialpublicofferorfurtherpublicoffer(includingdebtinstruments)ortermloansandhencereportingunderclause(ix)oftheCARO2016Orderisnotapplicable.

(x) Tothebestofourknowledgeandaccordingtotheinformationandexplanations given to us, no fraud by the Company and no fraudon the Company by its officers or employees has been noticed orreportedduringtheyear.

(xi) In our opinion and according to the information and explanationsgiven to us, the Company has not paid / provided managerialremunerationandhence reportingunderclause (xi)of theOrder isnotapplicable.

(xii) TheCompany is not aNidhiCompany andhence reportingunderclause(xii)oftheCARO2016Orderisnotapplicable.

(xiii) In our opinion and according to the information and explanationsgiventoustheCompanyisincompliancewithSection188and177of the Companies Act, 2013, where applicable, for all transactionswith the relatedpartiesand thedetailsof relatedparty transactionshavebeendisclosedinthefinancialstatementsetc.asrequiredbytheapplicableaccountingstandards.

(xiv) DuringtheyeartheCompanyhasnotmadeanypreferentialallotmentorprivateplacementofsharesorfullyorpartlyconvertibledebenturesandhencereportingunderclause(xiv)ofCARO2016isnotapplicabletotheCompany.

(xv) In our opinion and according to the information and explanationsgiventous,duringtheyeartheCompanyhasnotenteredintoanynon-cash transactions with its directors or persons connected withthemandhenceprovisionsofsection192oftheCompaniesAct,2013arenotapplicable.

(xvi) TheCompanyisnotrequiredtoberegisteredundersection45-IAoftheReserveBankofIndiaAct,1934.




Ketan Vora



269

wimco limited

BALANCE SHEET AS AT MARCH 31, 2016

As at Asat Note March 31, 2016 March31,2015 (` in Lacs) (ìnLacs)

EQUITY AND LIABILITIES

Shareholders’funds

Sharecapital 1 1,884.60 1,884.60

Reservesandsurplus 2 (1,657.14) (1,636.46)

Non-current liabilities

Long-termprovisions 3 11.35 6.17

Current liabilities

Tradepayables 4

Totaloutstandingduesofmicroenterprisesandsmallenterprises – –

Totaloutstandingduesofcreditorsotherthanmicro

enterprisesandsmallenterprises 426.61 411.60

Othercurrentliabilities 5 157.30 124.94

Short-termprovisions 6 3.78 2.05

TOTAL 826.50 792.90

ASSETS

Non-current assets

Fixedassets 7

Tangibleassets 69.19 75.61

Intangibleassets 0.03 0.03

Deferredtaxasset(net) 8 – –

Long-termloansandadvances 9 37.81 37.11

Current assets

Inventories 10 207.02 278.15

Tradereceivables 11 286.76 192.08

Cashandbankbalances 12 58.78 86.97

Short-termloansandadvances 13 166.91 122.95

TOTAL 826.50 792.90

Theaccompanyingnotes1to33areanintegralpartoftheFinancialStatements

Intermsofourreportattached

For Deloitte Haskins & Sells

CharteredAccountants ForandonbehalfoftheBoard

KETAN VORA RAJIV TANDON R SENGUTTUVAN

Partner Chairman Managing Director

S K SIPANI SAURABH PAL

Company Secretary Chief Financial Officer

Place:Kolkata Place:Kolkata

Date:May3,2016 Date:May3,2016

270

wimco limited

STATEMENT OF PROFIT AND LOSS FOR THE YEAR ENDED MARCH 31, 2016

For the year ended Fortheyearended Note March 31, 2016 March31,2015 (` in Lacs) (ìnLacs)

INCOME

GrossRevenuefromsaleofproductsandservices 14 1,484.48 1,379.50

Less:Exciseduty 103.74 89.05

NetRevenuefromsaleofproductsandservices 1,380.74 1,290.45

Otheroperatingrevenue 15 0.77 1.75

Revenue from operations 1,381.51 1,292.20

Otherincome 16 9.36 11.14

Total Revenue 1,390.87 1,303.34

EXPENSES

Costofmaterialconsumed 17 792.40 824.51

Changesininventoriesoffinishedgoods,work-in-progress andstock-in-trade 18 138.19 (28.21)

Employeebenefitsexpense 19 221.62 195.05

Financecost 20 2.27 4.82

Depreciationandamortisationexpense 7 6.94 7.14

Otherexpenses 21 250.13 347.64

Total Expenses 1,411.55 1,350.95

(Loss) / Profit before tax (20.68) (47.61)

TaxExpense – –

(Loss) / Profit after tax (20.68) (47.61)

Earningsperequityshare(`)-basicanddiluted 22 (0.01) (0.03)

Facevalue(`) 1.00 1.00











271

wimco limited

CASH FLOW STATEMENT FOR THE YEAR ENDED MARCH 31, 2016

For the year ended Fortheyearended March 31, 2016 March31,2015 (` in Lacs) (ìnLacs)

A. Cash flow from operating activities

(Loss) / Profit before exceptional items and taxation (20.68) (47.61)

Adjustments for:

DepreciationandamortisationExpense 6.94 7.14

DoubtfulandBaddebts – 15.27

DoubtfulandBadadvances,loansanddeposits – 2.68

Interestexpenditure 2.27 4.82

Operating loss before working capital changes (11.47) (17.70)

Adjustments for:

Tradereceivables (94.68) 116.77

LoansandadvancesandOthercurrentassets (44.66) 32.37

Inventories 71.13 26.91

TradePayables,Othercurrentandlong-termliabilitiesandProvisions 54.27 (29.91)

Cash (used in) / generated from operations before taxation (25.41) 128.44

Incometaxpaid(netofrefunds) – (36.66)

Net cash (used in) / generated from operations (25.41) 91.78

B. Cash flow from investing activities

PurchaseofFixedAssets (0.51) (1.27)

Netcash(usedin)/generatedfrominvestingactivities (0.51) (1.27)

C. Cash flow from financing activities

Interestpaid (2.27) (4.82)

Netcashusedinfinancingactivities (2.27) (4.82)

D. Net increase / (decrease) in cash and cash equivalents (A+B+C) (28.19) 85.69

E. Reconciliation

Cash and cash equivalents at the beginning of the year 86.97 1.28

Cash and cash equivalents at the end of the year 58.78 86.97

(28.19) 85.69

Cash and cash equivalents comprise of

Cashonhand 0.03 0.36

Balanceswithbanks 58.75 86.61

58.78 86.97











272

wimco limited

NOTES TO THE FINANCIAL STATEMENTS

As at Asat March 31, 2016 March31,2015

(` in Lacs) (ìnLacs)1. Share capital Authorised 35,00,00,000(2015:35,00,00,000)Equitysharesof`1(2015:`1)each

[seenote(B)(a)below] 3,500.00 3,500.001,13,00,000(2015:1,13,00,000)Redeemablepreferencesharesof`100each 11,300.00 11,300.00

TOTAL 14,800.00 14,800.00

Issued 18,84,60,000(2015:18,84,60,000)Equitysharesof`1each [seenote(B)(a)below] 1,884.60 1,884.60

Subscribed and paid up 18,84,60,000(2015:18,84,60,000)Equitysharesof`1eachfullypaidup [seenote(B)(a)below] 1,884.60 1,884.60

TOTAL 1,884.60 1,884.60

A) Reconciliation of number of shares As at Asat March 31, 2016 March31,2015

Equity shares (No. of Shares) (` in Lacs) (No.ofShares) (ìnLacs)

Balanceasatthebeginningoftheyear 18,84,60,000 1,884.60 18,84,60,000 1,884.60 Balanceasattheendoftheyear 18,84,60,000 1,884.60 18,84,60,000 1,884.60

B) Rights, preferences and restrictions attached to shares

(a) TheOrdinarySharesoftheCompany,havingparvalueof`1/-pershare,rankparipassuinallrespectsincludingentitlementtodividend.Repaymentofcapital

intheeventofwindingupoftheCompanywillinteraliabesubjecttotheprovisionsoftheArticlesofAssociationoftheCompanyandasmaybedeterminedby theCompanyinGeneralMeetingpriortosuchwindingup.


(` in Lacs) (ìnLacs)C) Shares held by Holding Company

Equity shares 18,50,81,193(2015:18,50,81,193)Equitysharesof ` 1each,fullypaidup areheldbyITCLimited(HoldingCompany) 1,850.81 1,850.81


(No. of Shares) (No.ofShares)D) Name of share holders holding more than 5% of the shares of the Company

Equity Shares

ITCLimited(HoldingCompany) 18,50,81,193 18,50,81,193

98.21% 98.21%


(` in Lacs) (ìnLacs)2. Reserves and surplus

Capital subsidy 14.93 14.93

(Deficit) in the Statement of Profit and Loss

Balanceatthebeginningoftheyear (1,651.39) (6,128.80)

Add:TransferfromDemergerAdjustmentAccount – (1,507.22)

Less:AdjustmentofLossofNon-Engineering

BusinessduringtheFinancialyear2013-14 – 1,321.14

Add:Reversalofrevaluationreservecreditedto

StatementofProfitandLossfrom

Generalreserve(pertainingtoNon-EngineeringBusiness) – (236.57)

Add:IncomeTaxpaymentpertainingtoEngineering

businessfortheyear2013-14 – (36.66)

Less:AdjustmentpursuanttoSchemeofArrangement – 5,000.00

(1,651.39) (1,588.11)

Add:Lossfortheyear (20.68) (47.61)

Add:Adjustmentonaccountofdepreciationon

FixedassetsunderCompaniesAct2013 – (15.67)

Less:TransferfromGeneralReserve – (1,672.07) – (1,651.39)

TOTAL (1,657.14) (1,636.46)

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wimco limited

NOTES TO THE FINANCIAL STATEMENTS (CONTD.)


(` in Lacs) (ìnLacs)3. Long-term provisions

Provisionsforemployeebenefits(seenote19)

Provisionforcompensatedabsences 11.35 6.17

TOTAL 11.35 6.17

4. Trade payables

Totaloutstandingduesofmicroenterprisesandsmallenterprises(seenote26) – –

Totaloutstandingduesofcreditorsotherthanmicroenterprisesandsmall enterprises(seenote24forpayablestorelatedparties) 426.61 411.60

TOTAL 426.61 411.60

5. Other current liabilities

Advancesfromcustomers 122.55 95.07

Employeebenefitspayable 18.33 10.65

Statutoryduespayable* 4.95 16.68

PayabletotheHoldingCompany(seenote24forduespayabletorelatedparties) 11.47 2.54

TOTAL 157.30 124.94

*Statutoryduespayableinclude

VATandOthers 4.95 16.68

4.95 16.68

6. Short-term provisions Provisionsforemployeebenefits(SeeNote19) Provisionforcompensatedabsences 3.78 2.05

TOTAL 3.78 2.05

7. Fixed assets Fixed Assets Balances as at March 31st 2016

(ìnLacs)

Tangible assets and intangible assets

GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION / IMPAIRMENT NET BLOCK

As at April 1, 2015

Additions during the

year

Trasferred out on

demerger

Disposal / Adjustments during the

year

As at March

31, 2016

As at March 31, 2016

Depreciation for the year

Trasferred out on

demerger

Disposal/ Adjustments during the

year


As at March 31, 2016Depreciation Impairment Depreciation Impairment

Tangible assets FreeholdlandLeaseholdlandBuildingsPlantandEquipment Computers OfficeEquipmentsFurnitureandFixturesMotorcars,lorries,tractors

47.92–

105.4717.5642.3126.4315.42

6.61

– –– –

0.20 0.32

– –

– ––– – –––

– ––– – –––

47.92

– 105.47

17.56 42.51 26.75 15.42

6.61

––

101.7311.3734.4224.2612.23

2.10

––––––––

––

0.700.563.250.650.940.83

––––––––

––––––––

––

102.4311.9337.6724.9113.172.93

––––––––

47.92 –

3.04 5.63 4.83 1.84 2.25 3.68

TOTAL 261.72 0.51 – – 262.23 186.11 – 6.94 – – 193.05 – 69.19

Intangible assets

Computersoftware 0.52 – – – 0.52 0.49 – – – – 0.49 – 0.03

TOTAL 0.52 – – – 0.52 0.49 – – – – 0.49 – 0.03

Fixed Assets Balances as at March 31st 2015 (ìnLacs)

Tangible assets and intangible assets

GROSS BLOCK ACCUMULATED DEPRECIATION / AMORTISATION / IMPAIRMENT

NET BLOCK As at April 1, 2014

Additions during

the year

Trasferred out on

demerger

Disposal / Adjustments during the

year


As at April 1, 2014Deprecia-

tion for the year

Trasferred out on demerger

Disposal/ Adjustments during the

year


Depreciation Impairment Depreciation Impairment

Tangible assets FreeholdlandLeaseholdlandBuildingsPlantandEquipment Computers OfficeEquipmentsFurnitureandFixturesMotorcars,lorries,tractors

11,481.72247.28

4,127.935,572.13153.62 110.22 403.97137.96

– – – – –

0.960.31

–

11,433.80247.28

4,022.465,554.57111.3184.75

388.86131.35

– – – – – – – –

47.92–

105.4717.5642.3126.4315.42

6.61

– 0.66

3,723.894,022.84132.3868.51251.9579.91

167.73246.62

––––––

––

0.700.583.210.56 1.26 0.83

167.73247.28

3,623.024,012.05104.5556.81241.1178.64

––

0.16 –

3.38 12.00 0.13

–

––

101.7311.3734.4224.2612.23

2.10

– – – – – – – –

47.92–

3.746.197.892.173.194.51

TOTAL 22,234.83 1.27 21,974.38 – 261.72 8,280.14 414.35 7.14 8,531.19 15.67 186.11 – 75.61

Intangible assets

Computersoftware 289.84 – 289.32 – 0.52 274.85 – – 274.36 – 0.49 – 0.03

TOTAL 289.84 – 289.32 – 0.52 274.85 – – 274.36 – 0.49 – 0.03

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wimco limited



(` in Lacs) (ìnLacs)8. Deferred tax asset (net)

Tax effect of items constituting deferred tax liabilities

Ondifferencebetweenbookbalanceandtaxbalanceoffixedassets 0.51 1.28

Tax effect of items constituting deferred tax assets

Unabsorbeddepreciationcarriedforward 54.89 54.02

DisallowancesunderSection40(a)(i),43BoftheIncomeTaxAct,1961 6.14 4.02

Provisionfordoubtfuldebts/advances – 20.20

Broughtforwardbusinesslosses 136.99 131.79

198.02 210.03Deferredtaxasset(net)recognised* – –

*Deferredtaxassethasbeenrecognizedonlytotheextentofthedeferredtaxliabilitiesasthisamountisconsideredtobevirtuallycertainofrealization

9. Long-term loans and advances

Unsecured, considered good

AdvanceIncometaxandTaxdeductedatsource 37.81 37.11

Less:Allowanceforbadanddoubtfulloansandadvances – –

TOTAL 37.81 37.11

10. Inventories

Rawmaterials 156.79 89.73

Work-in-progress 50.23 164.92

Finishedgoods-manufactured – 23.50

TOTAL 207.02 278.15

11. Trade receivables Tradereceivablesoutstandingforaperiodexceedingsixmonthsfromthedatetheyaredueforpayment: Unsecured,consideredgood 5.35 – Unsecured,considereddoubtful – 54.36 Less:Provisionfordoubtfuldebts – (54.36)

5.35 –OthersTradeReceivables* 281.41 192.08

TOTAL 286.76 192.08

*Seenote24forreceivablesduefromrelatedparties

12. Cash and Bank Balances

Cashandcashequivalents(AsperAS3CashFlowStatement)

Cashonhand 0.03 0.36Balanceswithbanks:

-InCurrentaccounts 6.32 13.71 -Cashcredit(includingworkingcapitaldemandloan)withbanks* 52.43 72.90

TOTAL CASH & BANK BALANCES 58.78 86.97

*SecuredbyhypothecationofallstockintradepresentandfutureoftheCompanyincludingrawmaterials,finishedgoods,tradingproductsandstock-in-processandpresentandfuturebookdebts,outstandingreceivables,claimsandbills.

13. Short-term loans and advances

Unsecured,consideredgoodunlessotherwisestated Sundryadvancestosuppliers,employees,etc. Consideredgood 3.55 1.10 Considereddoubtful 5.08 5.08

8.63 6.18

Less:Allowanceforbadanddoubtfulloansandadvances (5.08) (5.08)

3.55 1.10 Prepaidexpenses – 12.47

Balanceswithgovernmentauthorities# 163.26 109.28

Deposits Consideredgood 0.10 0.10

Considereddoubtful – –

0.10 0.10 Less:Provisionfordoubtfuldeposits – –

0.10 0.10

TOTAL 166.91 122.95

#Balanceswithgovernmentauthorities CENVAT/ServiceTaxcreditreceivable 7.09 4.41VATrefundreceivable 156.17 104.87

163.26 109.28

275

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For the year ended Fortheyearended March 31, 2016 March31,2015

(` in Lacs) (ìnLacs)14. Gross revenue from sale of products and services (seenote27)

SaleofProducts 1,468.21 1,287.75 Saleofservices 16.27 91.75

TOTAL 1,484.48 1,379.50

15. Other operating revenue SaleofScrap 0.77 1.75

TOTAL 0.77 1.75

16. Other income

MiscellaneousIncome 9.36 11.14

TOTAL 9.36 11.14

17. Cost of materials consumed Rawmaterialsincludingpackingmaterials (includingprovisionmadeforobsoleteRawmaterials)

OpeningStock 89.73 144.85 Add:Purchases 859.46 769.39 Less:Closingstock (156.79) (89.73) Costofmaterialsconsumed(seenote29) 792.40 824.51

TOTAL 792.40 824.51

18. Changes in inventories of finished goods, work-in-progress and stock-in-trade (includingprovisionmadeforobsoleteinventories)

Stockattheendoftheyear Finishedgoods – 23.50 Work-in-progress 50.23 164.92

Total (A) 50.23 188.42

Less:Stockatthebeginningoftheyear

Finishedgoods 23.50 7.98 Workinprogress 164.92 152.23

Total (B) 188.42 160.21

Decrease/(Increase)instocks[B-A] 138.19 (28.21)

19. Employee benefits expense

Salariesandwages 190.83 160.02 Contributiontoprovidentandotherfunds 10.76 11.80 Workmenandstaffwelfareexpenses 20.03 23.23

221.62 195.05

Less:Recoveries – –

TOTAL 221.62 195.05

(ìnLacs)

Defined Benefit Plans

Gratuity (Funded) Leave Encashment (Unfunded)

2016 2015 2016 2015

Change in obligation during the year1.Obligationatthebeginningoftheyear2.Servicecost3.Interestcost4.Actuariallosses/(gains)5.Benefits’payments6.Obligationsattheendoftheyear

48.13 2.66 3.61

(2.21)(0.28)

391.262.753.51

(2.44)(346.95)

8.22 2.06 0.62 5.82

(1.59)

103.831.890.651.31

(99.46)

51.91 48.13 15.13 8.22

Change in plan assets

1.Planassetsatthebeginningoftheyear2.Expectedreturnonplanassets3.Contributionbyemployers4.Benefits’payments5.Actuarial(losses)/gains6.Planassetsattheendoftheyear

52.774.80

–(0.28)25.59

388.332.44

–(346.95)

8.95

–––––

–––––

82.88 52.77 – –

Reconciliation of present value of the obligation and the fair value of the plan assets1.Fairvalueofplanassetsattheendoftheyear2.Presentvalueofthedefinedbenefitobligationattheendoftheyear3.Asset/(liability)recognisedinthebalancesheet

82.8851.91

–

52.7748.13

–

–15.13(15.13)

–8.22(8.22)

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Notes forming part of the financial statements

Defined Benefit Plans

Gratuity (Funded) Leave Encashment (Unfunded)

2016 2015 2016 2015

Cost for the period1.Servicecost2.Interestcost3.Returnonplanassets4.Actuariallosses/(gains)

2.66 3.61

(4.80)(27.80)

2.753.51

(2.44)(11.39)

2.06 0.62

–5.82

1.890.65

–1.31

Net cost (26.32) (7.57) 8.50 3.85

Investment details of plan assetsTheGratuitySchemeisinvestedinaGroup-cum-LifeAssurancecashaccumulationpolicyofferedbyLifeInsuranceCorporation(LIC)ofIndiaActuarial Assumptions:1.DiscountRate2.Salaryescalation3.Expectedreturnonplanassets

7.50%5.00%6.15%

7.75%5.00%5.78%

7.50%5.00%

7.75%5.00%

(ìnLacs)

NetAsset/(Liability)recognizedinbalancesheet (includingexperienceadjustmentimpact)

For the year endedMarch 31, 2016




Gratuity Leave Encashment




1.Presentvalueofdefinedbenefitobligation 51.91 15.13 48.13 8.22 391.26 103.83 389.35 95.51

2.Fairvalueonplanassets 82.88 – 52.77 – 388.33 – 345.02 –

3.Status[(deficit)/surplus] 30.97 (15.13) 4.64 (8.22) (2.93) (103.83) (44.33) (95.51)

A. Theexcessoffairvalueofplanassetsoverpresentvalueofdefinedbenefitobligationhasnotbeenrecognizedbasedonprudence.

B. Basisusedtodetermineexpectedrateofreturnonassets:

TheGratuityschemeisinvestedinaGroup-cum-lifeassurancecashaccumulationpolicyofferedbyLifeInsuranceCorporationofIndia(LIC).TheinvestedreturnearnedonthepolicycomprisesbonusesdeclaredbyLIChavingregardtoLIC’sinvestmentearnings.Theinformationontheallocationofthefundintomajorassetclassesandexpectedreturnoneachmajorclassarenotreadilyavailable.WeunderstandthatLIC’soverallportfolioofassetsiswelldiversifiedandassuch,thelong-termreturnonthepolicyisexpectedtobehigherthantherateofreturnonCentralGovernmentbonds.

C. Theestimatesoffuturesalaryincreases,consideredinactuarialvaluation,takeaccountofinflation,seniority,promotionandotherrelevantfactorssuchassupplyanddemandintheemploymentmarket.


(` in Lacs) (ìnLacs)

20. Finance cost Interestexpense 2.27 4.82

TOTAL 2.27 4.82

21. Other expenses

Consumptionofstoresandspareparts 3.23 1.00 Sub-ContractingExpenses 52.44 52.50 Powerandfuel 33.54 20.17 RepairsandMaintenance -Buildings 1.58 3.66 -Machinery 0.68 0.54 -Others 4.26 10.64 Ratesandtaxes 3.70 8.60 Insurance 0.11 3.93 Maintenanceandupkeep 13.87 16.38 Travellingandconveyance 64.23 84.40 Printingandstationery 7.13 8.08 Freightandforwarding 11.38 17.48 Warehousingcharges – 1.55 Advertisingandsalespromotioncharges 3.68 1.75 Bankcharges 0.37 1.10 Informationtechnologyservices 10.51 9.90 Traininganddevelopment 0.43 1.51 Professionalfees 14.84 46.41 Postageandtelephonecharges 8.57 10.14 Netlossonforeigncurrencytransactionsandtranslation (1.01) 0.16 PaymenttoAuditors(seenote25) 2.59 5.45 Directors’sittingfees 3.60 1.80 DoubtfulandBaddebts – 15.27 DoubtfulandBadadvances,loansanddeposits – 2.68 Miscellaneousexpenses 10.40 22.54

TOTAL 250.13 347.64

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(` in Lacs) (ìnLacs)22. Earnings per share (Loss)/Profitaftertax,attributabletoequityshareholders(A) (20.68) (47.61) Weightedaveragenumberofequityshares(B) 188,460,000 188,460,000 Earningpershare-basicanddiluted(in `)(A/B) (0.01) (0.03) Nominalvalueofanequityshare(in `) 1.00 1.00

23. Segment information for the year ended March 31, 2016

A. Information about primary business segments :

Thecompany’soperationscompriseofonlyonesegmenti.e.Fabrication/AssemblyofMachines.Hence,separatesegmentalinformationisnotrequiredtobegivenaspertherequirementsofAccountingStandard17.

B. Information about secondary business segments : (ìnlacs)

March 31, 2016 March 31, 2015

India Outside India Total India Outside India Total

Sales 1,293.94 190.55 1,484.48 1,326.97 52.53 1,379.50

CarryingAmountofSegmentAssets 762.25 26.44 788.69 749.37 6.42 755.79

CapitalExpenditure 0.51 – 0.51 1.27 – 1.27

24. Related Party Disclosures

1. Parties exercising control over the Company:

Related Party Relationship

ITCLimited HoldingCompany

2. Other related Parties with whom the Company had transactions

Related Party Relationship

SuryaNepalPrivateLimited(SNPL) Fellowsubsidiary

3. Key Management Personnel

R.Tandon Non-ExecutiveDirector

R.K.Singhi Non-ExecutiveDirector

D.Dutta Non-ExecutiveDirector

C.R.Dua Non-ExecutiveDirector

S.Banerjee IndependentDirector

P.Chatterjee IndependentDirector

R.Senguttuvan* ManagingDirector

S.K.Sipani* CompanySecretary

S.Pal ChiefFinancialOfficer

*NoremunerationispaidbytheCompanytotheManagingDirectorandCompanySecretaryinaccordancewiththetermsoftheirappointment.

4. Transaction with Related Parties (ìnLacs)

Holding Company Fellow Subsidiary Key Management Personnel Total

ITC LIMITED SNPL

2016 2015 2016 2015 2016 2015 2016 2015

Saleofgoodsandservices 3.95 201.35 24.76 13.95 – – 28.71 215.31

Purchaseofrawmaterialsandcomponents – – – – – – – –

Purchaseofservices – – – – – – – –

Expensesreimbursed 9.64 – – – – – 9.64 –

Expensesrecovered 162.71 136.06 – – – – 162.71 136.06

RemunerationofManageronDeputationReimbursed 20.64 2.54 – – – – 20.64 2.54

Directors’SittingFees – – – – 3.60 1.80 3.60 1.80

Rentreceived – – – – – – – –

Loansandadvancesgivenduringtheyear – – – – – – – –

Outstandingloansandadvances(Dr) – – – – – – – –

Loansandadvancestakenduringtheyear – – – – – – – –

RepaymentofloansandadvancesbytheCompany – – – – – – – –

Unsecuredloans(Cr) – – – – – – – –

Outstandingreceivables – 33.48 24.76 – – – 24.76 33.48

Outstandingpayables 11.47 2.54 – – – – 11.47 2.54

Advancepayable – – – – – – – –

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(` in Lacs) (ìnLacs)25. Auditors’ remuneration

Paymentstotheauditoras

a. StatutoryAuditfees 1.44 1.43b. TaxAuditFees 1.15 2.57c. Out-of-pocketexpenses – 1.45

Total 2.59 5.45

26. Micro, small and medium scale business entities:

TherearenoMicro,SmallandMediumEnterprises, towhomtheCompanyowesdues,whichareoutstanding formorethan45daysduringtheyearandasatMarch31,2016andMarch31,2015.ThisinformationasrequiredtobedisclosedundertheMicro,SmallandMediumEnterpriseDevelopmentAct,2006,hasbeendeterminedtotheextentsuchpartieshavebeenidentifiedonthebasisofinformationavailablewiththeCompany.


(` in Lacs) (ìnLacs)27. Sale of products and services

SaleofFinishedGoods -EngineeringProductsincludingSpares(manufactured) 1,468.21 1,287.75

SaleofEngineeringservices 16.27 91.75

TOTAL 1,484.48 1,379.50

28. Details of Raw Materials and Finished Goods Inventories

Rawmaterials -Machinepartsandsub-assemblies 156.79 89.73

TOTAL 156.79 89.73

FinishedGoods -EngineeringMachines – 23.50

TOTAL – 23.50

29. Details of consumption and purchases

(a) Details of raw materials/packing materials consumed Machineparts&sub-assemblies 792.40 796.30

TOTAL 792.40 796.30

(b) Value of imported and indigenous materials consumed 2016 2015 % % Raw materials Imported – – – – Indigenous 100.00 100.00 792.40 796.30

100.00 100.00 792.40 796.30 Stores and spare parts

Imported – – – – Indigenous 100.00 100.00 3.23 1.00

100.00 100.00 3.23 1.00

30. Expenditure in foreign currency

Foreigntravel 1.00 0.55

31. Earnings in foreign exchange

ExportsofgoodscalculatedonFOBbasis 125.76 32.84

32. Unhedged foreign currency exposure not covered by forward contract

March 31, 2016 March 31, 2015 March 31, 2016 March 31, 2015 (` in Lacs) (USD in Lacs) (` in Lacs) (USD in Lacs)

TradeReceivables 1.68 0.03 6.13 0.10

33. Significant Accounting Policies

1. Basis of Preparation of Financial Statements

A. The financial statements of the Company have been prepared inaccordancewiththeGenerallyAcceptedAccountingPrinciplesinIndia(Indian GAAP) to comply with the Accounting Standards specifiedunderSection133oftheCompaniesAct,2013,readwithRule7oftheCompanies (Accounts) Rules, 2014 and the relevant provisions of theCompaniesAct, 2013 (“the2013Act”) /CompaniesAct, 1956 (“the1956Act”),asapplicable.

The financial statements have been prepared on accrual basis underthehistoricalcostconvention.Theaccountingpoliciesadopted in the

preparationofthefinancialstatementsareconsistentwiththosefollowedinthepreviousyear.

B. Goingconcernassumption:Asat31March2016,thenetworthoftheCompany has been substantially eroded due to accumulated losses /restructuring.Thefinancialstatementshavebeenpreparedonagoingconcernbasisastheholdingcompanyiscommittedtoprovidefinancialsupport,asapprovedbytheshareholdersoftheCompany,asandwhensought.

2. Use of Estimates

ThepreparationofthefinancialstatementsinconformitywithIndianGAAP

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wimco limited

requirestheManagementtomakeestimatesandassumptionsconsideredinthereportedamountsofassetsandliabilities(includingcontingentliabilities)andthereportedincomeandexpensesduringtheyear.TheManagementbelievesthattheestimatesusedinpreparationofthefinancialstatementsareprudentandreasonable.Futureresultscoulddifferduetotheseestimatesandthedifferencesbetweentheactualresultsandtheestimatesarerecognisedintheperiodsinwhichtheresultsareknown/materialise.

3. Fixed Assets / Depreciation Tangible Assets

I. FixedassetsarestatedatcostofacquisitionlessaccumulateddepreciationandimpairmentlossexceptincaseofcertainFreeholdLandandcertainBuildings, which are shown at revalued amounts less accumulateddepreciation.

Intangible AssetsII. Application software, which is not an integral part of the related

hardware,isshownasintangibleasset.DepreciationIII. Depreciation on Fixed Assets, Tangible and Intangible is calculated in

amannerthatamortizesthecostoftheassetsaftercommissioning(orotheramountsubstitutedforcost),lessitsresidualvalue,overtheirusefullivesasspecifiedinScheduleIIoftheCompaniesAct,2013

4. Valuation of Inventories Inventoriesarevaluedatthelowerofcostandnetrealisablevalue. Inventories of RawMaterials, Stores and Spares are valued on aweighted

averagecostbasis. Finishedandsemi-finishedgoodsincludecostofconversionandothercosts

incurredinbringingtheinventoriestotheirpresentlocationandcondition.5. Foreign Currency Transactions Transactionsdenominatedinforeigncurrencyarerecordedattheexchange

rateprevailingonthedateofthetransactions.Exchangedifferencesarisingon foreignexchangetransactionssettledduringtheyearare recognized inthestatementofprofitandlossfortheyear.

Monetary assets and liabilitiesdenominated in foreign currencies as at thebalancesheetdatearetranslatedattheclosingexchangeratesonthatdate;theresultantexchangedifferencesarerecognisedinthestatementofprofitandloss.

6. Revenue Recognition Revenuefromsaleofgoodsisrecognisedontransferofallsignificantrisksand

rewardsofownershiptothebuyer.Salesareaccountedforinclusiveofexcisedutybutnetofsalestaxanddiscounts.

Service income is accrued as services are rendered, based on respectivecontractualterms.

7. Taxes on Income Currenttaxistheamountoftaxpayableonthetaxableincomefortheyear

asdeterminedinaccordancewiththeapplicabletaxratesandtheprovisionsoftheIncomeTaxAct,1961andotherapplicabletaxlaws.

MinimumAlternateTax(MAT)paidinaccordancewiththetaxlaws,whichgives futureeconomicbenefits inthe formofadjustmentto future incometaxliability,isconsideredasanassetifthereisconvincingevidencethattheCompanywillpaynormalincometax.Accordingly,MATisrecognisedasanasset intheBalanceSheetwhen it ishighlyprobablethat futureeconomicbenefitassociatedwithitwillflowtotheCompany.

Deferred tax is recognised on timing differences, being the differencesbetween the taxable income and the accounting income that originate inoneperiodandarecapableofreversal inoneormoresubsequentperiods.Deferred tax ismeasured using the tax rates and the tax laws enacted orsubstantivelyenactedasat the reportingdate. Deferred tax liabilitiesarerecognised forall timingdifferences.Deferredtaxassetsare recognised fortiming differences of items other than unabsorbed depreciation and carryforwardlossesonlytotheextentthatreasonablecertaintyexiststhatsufficientfuturetaxableincomewillbeavailableagainstwhichthesecanberealised.However, if there areunabsorbeddepreciation and carry forwardof lossesanditemsrelatingtocapitallosses,deferredtaxassetsarerecognisedonlyifthereisvirtualcertaintysupportedbyconvincingevidencethattherewillbesufficient future taxable incomeavailable to realise theassets.Deferred taxassetsandliabilitiesareoffsetifsuchitemsrelatetotaxesonincomeleviedbythesamegoverningtaxlawsandtheCompanyhasalegallyenforceablerightforsuchsetoff.Deferredtaxassetsarereviewedateachbalancesheetdatefortheirrealisability.

8. Employee benefits Employeebenefits includeprovident fund, superannuation fund,employee

stateinsurancescheme,gratuity,andcompensatedabsences. Short-term employee benefits Theundiscountedamountofshort-termemployeebenefitsexpectedtobe

paid in exchange for the services rendered by employees are recognisedduringtheyearwhentheemployeesrendertheservice.Thesebenefitsinclude

performance incentive and compensated absences which are expected tooccurwithintwelvemonthsaftertheendoftheperiodinwhichtheemployeerenderstherelatedservice.

Post-employment benefits ThecontributionstowardsprovidentfundaremadetoaCompanymanaged

providentfund.TheinterestratepayablebytheTrusttothebeneficiarieseveryyearisbeingnotifiedbytheGovernment.TheCompanyhasanobligationtomakegoodtheshortfall,ifany,betweenthereturnfromtheinvestmentsoftheTrustandthenotifiedinterestrate.

The Company’s approved Superannuation Pension Scheme applicableto certain employees is a defined contribution plan funded with the LifeInsuranceCorporationofIndia(LIC).Theannualcontributionsmadeunderthepolicyarerecognisedasanexpense inthestatementofprofitandlossduringtheperiodinwhichtheemployeerenderstherelatedservice.

Fordefinedbenefitplansintheformofgratuityfund,thecostofprovidingbenefitsisdeterminedusingtheProjectedUnitCreditmethod,withactuarialvaluationsbeingcarriedoutateachbalancesheetdate.ActuarialgainsandlossesarerecognisedintheStatementofProfitandLossintheperiodinwhichtheyoccur.Pastservicecostisrecognisedimmediatelytotheextentthatthebenefitsarealreadyvestedandotherwiseisamortisedonastraight-linebasisover the average period until the benefits become vested. The retirementbenefit obligation recognised in the Balance Sheet represents the presentvalue of the defined benefit obligation as adjusted for unrecognised pastservicecost,asreducedbythefairvalueofschemeassets.

Other Long-term employment benefits Compensated absences which are not expected to occur within twelve

monthsaftertheendoftheperiodinwhichtheemployeerenderstherelatedservicesarerecognizedasaliabilityatthepresentvalueofthedefinedbenefitobligationatthebalancesheetdate.ThediscountratesusedfordeterminingthepresentvalueoftheobligationunderdefinedbenefitplanarebasedonthemarketyieldsonGovernmentsecuritiesasatthebalancesheetdate.

9. Provisions and Contingencies AprovisionisrecognisedwhentheCompanyhasapresentobligationasa

resultofpasteventsand it isprobablethatanoutflowofresourceswillberequiredtosettletheobligation inrespectofwhichareliableestimatecanbemade. Provisions (excluding retirement benefits) are not discounted totheirpresentvalueandaredeterminedbasedonthebestestimaterequiredto settle the obligation at the balance sheet date. These are reviewed ateachbalancesheetdateandadjustedtoreflect thecurrentbestestimates.Contingent liabilities aredisclosed in theNotes.Contingent assets arenotrecognisedinthefinancialstatements.

10. Earnings per share (EPS) Basicearningspershareiscomputedbydividingthenetprofitfortheperiod

attributable to the equity shareholders by the weighted average numberof equity shares outstanding during the reporting period. Diluted EPS iscomputedbydividingthenetprofitfortheperiodattributabletotheequityshareholders by the weighted average number of equity and equivalentdilutiveequitysharesoutstandingduringtheperiod,exceptwheretheresultswouldbeanti-dilutive.

11. Cash and Cash Equivalents Cash comprises cash on hand and demand deposits with banks. Cash

equivalents are short-term balances (with an original maturity of threemonthsor lessfromthedateofacquisition),highly liquidinvestmentsthatarereadilyconvertibleintoknownamountsofcashandwhicharesubjecttoinsignificantriskofchangesinvalue.

12. Cash Flow Statement Cashflowsare reportedusing the indirectmethod,wherebyprofit / (loss)

beforeextraordinaryitemsandtaxisadjustedfortheeffectsoftransactionsofnon-cashnatureandanydeferralsoraccrualsofpastorfuturecashreceiptsorpayments.Thecashflowsfromoperating,investingandfinancingactivitiesoftheCompanyaresegregatedbasedontheavailableinformation.

13. Operating Cycle Basedonthenatureofproducts/activitiesoftheCompanyandthenormal

time between acquisition of assets and their realisation in cash or cashequivalents,theCompanyhasdetermineditsoperatingcycleas12monthsforthepurposeofclassificationofitsassetsandliabilitiesascurrentandnon-current.

ForandonbehalfoftheBoard

RAJIV TANDON R SENGUTTUVAN Chairman ManagingDirector

S. K. SIPANI SAURABH PAL CompanySecretary ChiefFinancialOfficer

Place:Kolkata Date:3rdMay,2016


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