Notes to Accounts of IFGL Refractories Ltd.(Old)

Mar 31, 2016

The Company does not expect any reimbursements in respect of the above Contingent Liabilities.

1. RELATED PARTY DISCLOSURES :

Related Party Disclosures in keeping with Accounting Standard-18 prescribed under Section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014.

List of Related Parties

2. SEGMENT REPORTING

In terms of Accounting Standard 17 ''Segment Reporting'' prescribed under Section 133 of the Companies Act 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 segment information has been presented in the Consolidated Financial Statements of the Company included in the Annual Report. Given below is the information relating to Geographical Market of the Company :

3. PREVIOUS YEAR FIGURES

Previous Year''s figures have been re-grouped/re-classified wherever necessary to conform with the current year''s classification.

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Mar 31, 2014

As at As at 31st March 31st March 2014 2013

1. CONTINGENT LIABILITIES

a) Claims against the Company not acknowledged as debts :

i) Sales Tax matter under dispute relating to issues of 92.08 49.54

applicability and classification [related payments 10.30 (31.03.2013 : Rs. 5.49)]

ii) Income Tax matters under dispute relating to issues of 15.88 18.25 applicability and determination

iii) Service Tax/Excise Duty matters under dispute relating to 6.57 4.91 issues of applicability and classificati

iv) Custom Duty matters under dispute relating to issues of 140.65 - applicability and classification [related paymentsRs. 12.50 (31.03.2013 : Rs. Nil)]

b) Guarantees

Letter of Comfort/Corporate Guarantee given to Banks against Term Loan, Working Capital and Forward Exchange Contracts provided by them to a Subsidiary [limit Rs. 4,000 (31.03.2013 : Rs. 3,700)] Utilised at year end 3,320.13 2,894.01

The Management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company''s financial position and result of operations.

The Company does not expect any reimbursements in respect of the above Contingent Liabilties.

2. RELATED PARTY DISCLOSURES :

Related Party Disclosures in keeping with Accounting Standard-18 prescribed under ''the 1956 Act'' : List of Related Parties

Where Control exists

Holding Company Bajoria Holdings Private Limited

Subsidiary Companies

(including Step down Subsidiaries)

IFGL Worldwide Holdings Limited

IFGL Exports Limited

IFGL Monocon Holdings Limited

Monocon International Refractories Limited

Monocon Overseas Limited

Mono Ceramics Inc.

Monotec Refratarios Ltda

Tianjin Monocon Refractories Company Limited

Tianjin Monocon Aluminous Refractories Company Limited

Goricon Metallurgical Services Limited

IFGL GmbH

Hofmann Ceramic GmbH

Hofmann GmbH & Co. OHG

Hofmann Ceramic CZ s.r.o.

Hofmann Ceramic Limited

Hofmann Ceramic LLC

Hofmann Pyemetric LLC

IFGL Inc.

EI Ceramics LLC

Fellow Subsidiaries

Heritage Health TPA Private Limited

Bajoria Financial Services Private Limited

IFGL Bio Ceramics Limited

Ganges Art Gallery Private Limited

Bajoria Enterprises Limited

Bajoria Service Providers Private Limited

Others :

Key Management Personnel

S K Bajoria (Chairman)

P Bajoria (Managing Director)

Relatives of Key Management Personnel

Smita Bajoria (Wife of Chairman)

Mihir Bajoria (Son of Chairman)

Akshay Bajoria (Son of Managing Director)

Enterprises in which Key Management Personnel has significant influence

Heritage Insurance Brokers Private Limited Coris Heritage Asia Pacific Private Limited

3. OPERATING LEASE COMMITMENTS

The Company entered into non-cancelable operating lease agreements in connection with certain office spaces. Tenure of lease is for a period of 5 years. Terms of the lease include operating terms of renewal, re-imbursement of maintenance charges, increase in future maintenance charges etc. The future minimum lease commitments of the Company are as follows :

4. SEGMENT REPORTING

In terms of Accounting Standard 17 ''Segment Reporting'' prescribed under ''the 1956 Act'', segment information has been presented in the Consolidated Financial Statements of the Company included in the Annual Report. Given below is the information relating to Geographical Market of the Company :

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Mar 31, 2013

1. GENERAL INFORMATION

IFGL Refractories Limited (the "Company") is a Public Limited Company, incorporated under the Companies Act, 1956. Its shares are listed on the National Stock Exchange of India Limited (NSE) and Bombay Stock Exchange Limited (BSE). The Company is primarily engaged in the manufacturing, trading and selling of Refractory Items used in Steel plants. The Company and its Subsidiaries have manufacturing plants in Asia (India and China), in Europe (Germany and United Kingdom) and in North America (USA). The Company caters to both domestic and international market.

2.1 Terms/Rights attached to Equity Shares

The Company has only one class of Equity Shares having a face value of Rs. 10/- each. Each holder of Equity Shares is entitled to one vote per Share. In the event of liquidation of the Company, the Equity Shareholders will be entiled to receive remaining assets ofthe Company, after distribution of all preferential amounts, in proportion to their Shareholding. The Company in the General Meeting may declare dividends, but no dividend shall exceed the amount recommended by the Board.

2.2 Terms/Rights attached to Redeemable Non Cumulative Preference Shares (RNCPS)

The 5% Redeemable Non Cumulative Preference Shares are redeemable at par at the end of ten years from the date of allotment (i.e. 3rd September 2010) or any earlier date at the option of the Company except that the said Shares shall not be redeemed within the initial period of three years from the date of allotment. In the event of liquidation of the Company, the Preference Shareholders will have priority over Equity Shares in the payment of dividend and repayment of capital.

Every member holding Preference Share Capital shall have the right to vote in respect of all resolutions placed before the Company which directly affect the rights attached to Preference Shares.

3.1 The Loans from State Bank of India and The Hongkong and Shanghai Banking Corporation Limited are secured by hypothecation of stocks of raw materials, stock-in-process, finished goods, consumables, spares, stores, receivables and other current assets on pari passu basis and by a second charge over all Fixed Assets of the Company, situated at Sectors ''A'' and ''B'' of Kalunga Industrial Estate, near Rourkela, on pari passu basis.

4.1 There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end.

5.1 The Company has recognised in the Statement of Profit and Loss for the year ended 31st March 2013 an amount of Rs. 151.54 (31.03.2012 : Rs. 154.19) as expenses under Defined Contribution Plans.

5.2 Provident Fund (Funded)

Provident Fund contributions in respect of employees are made to Trust administered by the Company and it has the liability to Fund any shortfall on the yield of the Trust''s investments over the administered interest rates onanannual basis. These administered interest rates are determined annually predominantly considering the social rather than economic factors. The contribution by the employer and employee together with the interest accumulated thereon are payable to the employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vests immediately on rendering of the services by the employee. Based on the final guidance for measurement of Provident Fund liabilities issued by the Actuarial Society of India, the Company''s liability at the year end ofRs. Nil (31.03.2012 : Rs. 16.68) has been actuarially determined by an independent actuary and provided for.

5.3 Gratuity (Funded)

The Company provides for gratuity, a Defined Benefit Retirement Plan covering eligible employees. As per the Scheme, the Gratuity Trust Fund makes payments to vested employees on retirement, death, incapacitation or termination of employment. For employees joining after 1st April 2003, the amount is based on the respective employee''s eligible salary (half month''s salary) depending on the tenure of the service subject to a maximum amount as per the Payment of Gratuity Act, 1972. For employees joining before 1st April 2003, the amount is calculated similarly as per the Payment of Gratuity Act, 1972 or the Company''s Scheme, whichever is higher. Vesting occurs on completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 2.11 (vi) above, based on which the Company make contribution to the Fund. The most recent actuarial valuation of the Fund was carried out as at 31st March 2013.

5.4 Superannuation (Funded)

In keeping with the Company''s Superannuation Scheme (applicable to employees joined before 31st March 2004), employees are entitled to superannuation benefit on retirement/death/incapacitation/termination. Superannuation Scheme was amended from Defined Benefit Plan to Defined Contribution Plan effective 1st April 2004 and the benefits under the Defined Benefit Plan were frozen as on 31st March 2004. Necessary formalities/approvals have been complied with/obtained. Also refer Notes 2.11 (iv) and (vi) for accounting policy relating to Superannuation.

5.5 Compensated Absence (Unfunded)

The Company provides for accumulated leave benefit for eligible employees (i.e. workmen) at the time of retirement, death, incapacitation or termination of employment, subject to a maximum of one hundred and twenty days based on the last drawn salary. Liabilities are determined by actuarial valuation as set out in Note 2.11 (vii) above.

6.1 Net gain of Rs. 160.39 (31.03.2012 : loss of Rs. 298.43) includes Provision for ''Mark to Market'' losses on derivatives of Rs. NIL (31.03.2012 : Rs. 46.90).

7. CONTINGENT LIABILITIES

As at As at 31st March 2013 31st March 2012

a) Claims against the Company not acknowledged as debts :

i) Sales Tax matter under appealdi sputedrelatingto 49.54 49.54 issues of applicability and classification [related payments Rs. 5.49 (31.03.2012 : Rs. 5.49)]

ii) Income Tax matters under disputere lating to issues of 18.25 77.64 applicability and determination

iii) Service Tax / Excise Duty matters under dispu terelating 4.91 1.54 to issues of applicability and classification

b) Guarantees

Letter of Comfort/Corporate Guarantee given to Banks againstTerm Loan, Working Capital and Forward Exchange Contracts provided by them to :

A) a Step down Subsidiary [limit Nil (31.03.2012 : Rs. 9,302.73)]

Utilised at year end Nil (31.03.2012 : Rs. 4,643.22)- - 4,640.22

[Converted at year end rate]

B) a Subsidiary [limit Rs. 3,700 (31.03.2012 : Rs. 3,700)]

Utilisedatyearend 2,894.01 2,348.70

The Management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company''s financial position and result of operations.

8. PREVIOUSYEAR FIGURES

Previous year''s figures have been re-grouped/re-classified wherever necessary to conform with the current year''s classification.

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Mar 31, 2012

1. GENERAL INFORMATION

IFGL Refectories Limited (the "Company") is a Public Limited Company, incorporated under the Companies Act, 1956. Its shares are listed on the National Stock Exchange of India Ltd (NSE) and Bombay Stock Exchange Ltd (BSE). The Company is primarily engaged in the manufacturing, trading and selling of Refractory Items used in Steel plants. The Company and its Subsidiaries have manufacturing plants in Asia (India and China), in Europe (Germany and United Kingdom), in North America (USA) and in South America (Brazil). The Company caters to both domestic and international market.

1.1 TERMS/RIGHTS ATTACHED TO EQUITY SHARES :

The Company has only one class of Equity Shares having a face value of Rs 10/- each. Each holder of Equity Shares is entitled to one vote per Share. In the event of liquidation of the Company, the Equity Shareholders will be entailed to receive remaining assets of the Company, after distribution of all preferential amounts, in proportion to their Shareholding. The Company in the General Meeting may declare dividends, but no dividend shall exceed the amount recommended by the Board.

1.2TERMS/RIGHTS ATTACHED TO REDEEMABLE NON CUMULATIVE PREFERENCE SHARES (RNCPS) :

The 5% Redeemable Non Cumulative Preference Shares are redeemable at par at the end of ten years from the date of allotment (i.e. 3rd September 2010) or any earlier date at the option of the Company except that the said Shares shall not be redeemed within the initial period of three years from the date of allotment. In the event of liquidation of the Company, the Preference Shareholders will have priority over Equity Shares in the payment of dividend and repayment of capital.

Every member holding Preference Share Capital shall have the right to vote in respect of all resolutions placed before the Company which directly affect the rights attached to Preference Shares.

1.1NATURE OF SECURITY AND TERMS OF REPAYMENT OF SECURED BORROWINGS :

a) From The Honking and Shanghai Banking Corporation Limited (HSBC)

To be secured by charge over Plant and Machinery and other Fixed Assets acquired in the project considered for financing, situated at Sectors 'A' and B' of Kalunga Industrial Estate, near Rourkela, and by first charge over all other Fixed Assets and Current Assets of the Company, ranking pari pasu with State Bank of India (SBI).

Repayable in 12 Equated quarterly installments of Rs 62.50 commencing from April 2012 at interest rate of 10.50% per annum.

b) Vehicle Loans from Axis Bank Limited

Vehicle Loans are secured by hypothecation of respective vehicles. Repayable over 1-3 Years at interest rate of 10-12 %.

2.1 The Loan from SBI is secured by hypothecation of stocks of raw materials, stock in process, finished goods, consumables, spares, stores, receivables and other liquid assets etc including goods in transit and by a second charge over all fixed assets of the Company, situated at Sectors 'A' and 'B' of Kalunga Industrial Estate, near Rourkela, ranking pari pasu with HSBC.

2.2 The Loan from HSBC is secured by charge on current assets and second charge over all the Fixed Assets of the Company ranking pari pasu with that created in favour of SBI.

3.1 DUES TO THE MICRO, SMALL AND MEDIUM ENTERPRISES :

Information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company. The Disclosures relating to Micro and Small Enterprises as at 31st March 2012 are as under:

4.1 Current maturities of Long-Term Debt as at 31st March 2011 comprised of Term Loans from SBI, which were repaid during 2011-2012. The Company is in the process of releasing the charges created on specified Plant and Machinery to secure these loans.

4.2 There are no amounts due for payment to the Investor Education and Protection Fund under Section 205C of the Companies Act, 1956 as at the year end.

5.1 During the year the Company has made provision for disputed liabilities relating to entry tax in Odisha, based on its own assessment of the amount it may be required to incur to meet such obligation.

6.1 Acquired under a lease of 99 years with a renewal option.

7.1 Technical Know-how represents technical drawings, designs etc. relating to manufacture of the Company's products and acquired pursuant to various agreements conferring the right to usage only.

8.1 IFGL Exports Limited became a Subsidiary with effect from 30th March 2012.

8.2 Shares of IFGL Exports Limited are pledged with Export Import Bank of India for loans granted by them to IFGL Exports Limited.

9.1 The Company had paid remuneration in excess of the limits laid down in the Companies Act, 1956 aggregating to X 86.94 to the Chairman and Managing Director during the year ended 31.03.2011. During the current year, orders from Central Government dated 17th February 2012 were received directing waiver of Rs 63.57 and recovery of balance Rs 23.37 from the Chairman and Managing Director of the Company. The said amounts have been recovered and credited to Salary, Wages and Bonus for the current year.

9.2 The Company has recognized in the Statement of Profit and Loss for the year ended 31st March 2012 an amount of Rs 154.19 (31.03.2011: Rs 131.76) as expenses under Defined Contribution Plans.

9.3 PROVIDENT FUND (FUNDED):

Provident Fund contributions in respect of employees are made to Trust administered by the Company and it has the liability to fund any shortfall on the yield of the trust's investments over the administered interest rates onanannual basis. These administered interest rates are determined annually predominantly considering the social rather than economic factors. The contribution by the employer and employee together with the interest accumulated thereon are payable to the employees at the time of their separation from the Company or retirement, whichever is earlier. The benefits vests immediately on rendering of the services by the employee. Based on the final guidance for measurement of Provident Fund liabilities issued by the Actuarial Society of India, the Company's liability at the yearend of Rs 16.68 has been actuarially determined by an independent actuary and provided for.

9.4 GRATUITY (FUNDED) :

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the Scheme, the Gratuity Trust Fund makes payments to vested employees on retirement, death, incapacitation or termination of employment. For employees joining after 1st April 2003, the amount is based on the respective employee's eligible salary (half month's salary) depending on the tenure of the service subject to a maximum of Rs 10 as per the Payment of Gratuity Act, 1972. For employees joining before 1st April 2003, the amount is calculated similarly as per the Payment of Gratuity Act, 1972 (with the cap of Rs 10) or the Company's Scheme, whichever is higher. Vesting occurs on completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 2.11 (vi) above, based on which the Company makes contribution to the Fund. The most recent actuarial valuation of the Fund was carried out as at 31st March 2012.

9.5 SUPERANNUATION (FUNDED) :

In keeping with the Company's Superannuation Scheme (applicable to employees joined before 31st March 2004), employees are entitled to superannuation benefit on retirement/death/incapacitation/termination. Superannuation Scheme was amended from Defined Benefit Plan to Defined Contribution Plan effective 1st April 2004 and the benefits under the Defined Benefit Plan were frozen as on 31st March 2004. Necessary formalities/approvals have been complied with/obtained. Also refer Notes 2.11 (iv) and (vi) for accounting policy relating to Superannuation.

9.6 COMPENSATED ABSENCE (UNFUNDED) :

The Company provides for accumulated leave benefit for eligible employees (i.e. workmen) at the time of retirement, death, incapacitation or termination of employment, subject to a maximum of one hundred and twenty days based on the last drawn salary. Liabilities are determined by actuarial valuation as set out in Note 2.11 (vii) above.

The basis used to determine overall Expected Return on Assets and the major categories of Plan Assets are as follows:

The major portion of the assets is invested in units of Insurers and Government Bonds. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the Expected Rate of Return on the Fund have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching Government Bonds.

The estimate of future salary increases takes into account inflation, seniority, promotion and other relevant factors.

9.7 Net loss of Rs 298.43 includes Provision for' Mark to Market' losses on Derivatives of Rs 46.90 (31.03.2011: Nil)

10. CONTINGEN TLIABILITIES

As at As at

31st March 2012 31st March 2011

a) Claims against the Company not acknowledged as debts :

i) Sales Tax matter under appeal disputed relating to issues of 49.54 49.54

applicabilityand classification [related payments Rs 5.49 (31.3.2011 : Rs 5.49)]

ii) Income Tax matters under dispute relating to issues of 77.64 78.83

applicability and determination

iii) Service Tax matters under dispute relating to issues of 1.54 1.54

applicability and classification

b) Guarantees

Letter of Comfort/Corporate Guarantee given to Banks against Term Loan, Working Capital and Forward Exchange Contracts provided by them to :

A) a Step down Subsidiary [limit 114.17 lacs

(31.03.2011: 166.51 lacs)]

Utilized at year end 56.96 lacs (31.03.2011 : 84.55 lacs)- 4,640.22 6,163.84

[Converted at year end rate]

B) a Subsidiary [limit Rs 3,700 (31.03.2011: Rs 2,700)]

Utilized at year end 2,348.70 962.20

The Management believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company's financial position and result of operations.

The Company does not expect any reimbursements in respect of above Contingent Liabilities.

11. PREVIOUS YEAR FIGURES

The revised Schedule VI has become effective from 1st April 2011 for the preparation of Financial Statements. This has significantly impacted the Disclosure and Presentation made in the Financial Statements. Previous year's figures have been re-grouped/re-classified wherever necessary to correspond with the current year's classification/disclosure.

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Mar 31, 2011

1. Estimated amounts of Capital Commitments (net of advances) outstanding as at 31 st March 2011 and not provided for isRs. 136.49 (Previousyear-Rs. 893.93).

(All figures are inRs. in lacs)

2. Contingent Liabilities not provided for:

2010-2011 2009-2010

a) Claims against the Company not acknowledged as debts:

i) Sales tax matter under appeal [net ofRs. 5.49 44.06 44.06 (previousyear-Rs. 5.49) paid under protest]

ii) Income tax matters under dispute 78.83 15.88

iii) Service tax matters under dispute 1.54 33.62

b) Letter of comfort/Corporate Guarantee given to banks against term loan, 12,138.90 8,949.89 working capital and Forwards Exchange Contracts facility provided by them to a step down subsidiary [ limit £ 16.65 million, (previousyear-£12.98 million)]

Utilised at year end £8.45 million, (previous year-£5.02 million) 6,163.84 3,461.09 [Converted at year end rate]

c) Corporate Guarantee given to Exim Bank against term loan availed by a 2,700.00 Nil

Body Corporate

Utilised at year end 962.20 Nil

3. The Company, in March 2004, withdrew its application for exemption under Para 39 of the Employees' Pension Scheme, 1995 (EPS, 95) pending with the Regional Provident Fund Commissioner (RPFC) at Rourkela. Subsequent thereto, from April 2004, the Company has been depositing contributions under EPS, 95 with the RPFC. A sum ofRs. 81.72 has been paid in earlier years to RPFC from the Company's Superannuation Fund towards contribution (as estimated by the Company) under EPS, 95 for the period 16th November 1995 to 31 st March 2004 in respect of employees continuing in the Company's employment as on 31 st March 2004. RPFC has however demanded contribution also for persons who ceased to be employees of the Company in said period, which has been disputed by the Company.

RPFC had raised a demand ofRs. 27.26 in March 1998 on the Company towards contribution under EPS, 95 for the period 16th November 1995 to 31 st January 1998, which was stayed by the Hon'ble Orissa High Court in a petition filed before them by the Company. The matter was disposed off by the Hon'ble High Court vide it's Order dated 3rd March 2009 whereby liberty was granted to RPFC to take steps for recovery of amount due, if the same was found not deposited, no communication has since been received from RPFC.

4. Disclosure in respect of Employee Benefits in keeping with Accounting Standard 15.

A. In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employee Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance), employer established provident fund trusts are treated as Defined Benefit Plan since the Company is obligated to meet interest shortfall, if any, with respect to covered employees. However, there is no such interest shortfall at the year end.

According to the actuary, actuarial valuation cannot be applied to reliably measure provident fund liabilities in absence of guidance from the Actuarial Society of India. Accordingly, the Company is currently not in a position to provide other related disclosures as required by the aforesaid AS 15 read with the ASB Guidance. During the year, the Company has contributed Rs. 35.57 (previous year - Rs. 27.67) to the Provident Fund.

B. Gratuity (Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the Scheme, the Gratuity Trust fund makes payments to vested employees on retirement, death, incapacitation or termination of employment. For employees joining after 1 st April 2003, the amount is based on the respective employee's eligible salary (half month's salary) depending on the tenure of the service subject to a maximum of Rs. 10 as per the Payment of Gratuity Act, 1972. For employees joining before 1 st April 2003, the amount is calculated similarly as per the Payment of Gratuity Act, 1972 (with the cap of Rs. 10) or the Company's scheme, whichever is higher. Vesting occurs on completion of five years of service. Liabilities with regard to the Gratuity plan are determined by actuarial valuation as set out in Note 1 (j) (vi) above, based on which the Company makes contribution to the fund. The most recent actuarial valuation of the fund was carried out as at 31 st March 2011.

C. In keeping with the Company's Superannuation Scheme (applicable to employees joined before 31st March 2004), employees are entitled to superannuation benefit on retirement/death/incapacitation/termination. Superannuation Scheme was amended from Defined Benefit Plan to Defined Contribution Plan effective 1 st April 2004 and the benefits under the Defined Benefit Plan were frozen as on 31 st March 2004. Necessary formalities/approvals have been complied with/obtained. Also refer Notes 1 (j) (iv) and (vi) for accounting policy relating to superannuation.

D. Leave Encashment (Unfunded)

The Company provides for accumulated leave benefit for eligible employees (i.e. workmen) at the time of retirement, death, incapacitation or termination of employment, subject to a maximum of one hundred and twenty days based on the last drawn salary. Liabilities are determined by actuarial valuation as set out in Note 1 (j) (vii) above.

The basis used to determine overall expected return on assets and the major categories of Plan Assets are as follows : The major portion of the assets is invested in units of Insurers and Government Bonds. Based on the asset allocation and prevailing yield rates on these asset classes, the long term estimate of the expected rate of return on the fund have been arrived at. Assumed rate of return on assets is expected to vary from year to year reflecting the returns on matching Government Bonds.

The estimate of future salary increases takes into account inflation, seniority, promotion and other relevant factors.

4.2 The Company has recognised, in the Profit and Loss Account, an amount of Rs. 131.76 (previous year - Rs. 96.01) as expenses under defined contribution plans.

5. Related Party Disclosures in keeping with Accounting Standard-18 prescribed under 'the Act'.

a) List of Related Parties

Where Control exists:

Holding Company

Bajoria Holdings Private Limited

Subsidiary Companies (including step down subsidiaries)

IFGL Worldwide Holdings Limited

IFGLMonocon Holdings Limited

Monocon International Refractories Limited

Monocon Overseas Limited

Mono Ceramics Inc.

MonotecRefratariosLtda

Tianjin Monocon Refractories Company Limited

Tianjin Monocon Aluminous Refractories Company Limited

Goricon Metallurgical Services Limited

Goricon LLC

IFGL GmbH

Hofmann Ceramic GmbH

HofmannGmbH&Co.OHG

Hofmann Ceramic CZs.r.o.

Hofmann Ceramic Limited

Hofmann Ceramic LLC

Hofmann Pyemetric LLC

IFGL Pyemetric LLC

IFGL Inc.

El Ceramic LLC (w.e.f. September 10,2010)

CUSC International Limited (w.e.f. September 10,2010)

Fellow Subsidiaries

Heritage Health TPA Private Limited

Bajoria Financial Services Private Limited

IFGL Bio Ceramics Limited

Ganges Art Gallery Private Limited

Bajoria Enterprises Limited

Bajoria Service Providers Private Limited

Others

Key Management Personnel

S K Bajoria (Chairman)

P Bajoria (Managing Director)

Relatives of Key Management Personnel

B P Bajoria

Mihir Bajoria

Enterprises in which key management personnel has significant influence

Heritage Insurance Brokers Private Limited

Coris Heritage Asia Pacific Private Limited

IFGL Exports Limited

6. Expenses include reimbursements to/by the Company.

7. Previous year's figures have been re-arranged and re-grouped wherever necessary to make the same comparable with the current year's figures.

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Mar 31, 2010

1. The Company, in March 2004, withdrew its application for exemption under Para 39 of the Employees Pension Scheme, 1995 (EPS, 95) pending with the Regional Provident Fund Commissioner (RPFC) at Rourkela. Subsequent thereto, from April 2004, the Company has been depositing contributions under EPS, 95 with the RPFC. A sum of Rs. 81.72 has been paid in earlier years to RPFC from the Companys Superannuation Fund towards contribution (as estimated by the Company) under EPS, 95 for the period 16th November 1995 to 31 st March 2004 in respect of employees continuing in the Companys employment as on 31 st March 2004. RPFC has however demanded contribution also for persons who ceased to be employees of the Company in said period, which has been disputed by the Company.

RPFC had raised a demand of Rs. 27.26 in March 1998 on the Company towards contribution under EPS, 95 for the period 16th November 1995 to 31 st January 1998, which was stayed by the Honble Orissa High Court in a petition filed before them by the Company. The matter was disposed off by the Honble High Court vide its order dated 3rd March 2009 whereby liberty was granted to RPFC to take steps for recovery of amount due, if the same was found not deposited, no communication has since been received from RPFC.

2. Balance including interest thereon due to Micro and Small Enterprises as defined under The Micro, Small and Medium Enterprises Development Act, 2006 as identified based on the available confirmations is Rs. 48.44 (previous year Rs. 20.44). No interest has been paid during the year. The amount of interest payable for the period of delay in making payment beyond the appointed day is Rs. 2.62 (previous year Rs. 2.91) and interest accrued and remaining unpaid at the year end is Rs. 9.36 (previous year Rs. 6.74).

3. Disclosure in respect of Employee Benefits in keeping with Accounting Standard 15

A. In keeping with the Guidance on implementing Accounting Standard (AS) 15 on Employee Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India (ASB Guidance), employer-established provident fund trusts are treated as Defined Benefit Plans since the Company is obligated to meet interest shortfall, if any, with respect to covered employees.

According to the actuary, acturial valuation cannot be applied to reliably measure provident fund liabilities in absence of guidance from Acturial Society of India. Accordingly, the Company is currently not in a position to provide other related disclosures as required by the aforesaid AS 15 read with the ASB Guidance. However, having regard to the position of the Fund and the return on investments, the Company does not expect any deficiency in the foreseeable future.

B. In keeping with the Companys gratuity scheme (a defined benefit plan), employees joined after 31 st March 2003 are entitled to gratuity benefit (at one half months eligible salary for each completed year of service) on retirement/death/incapacitation/ termination and there is no ceiling for employees joined before 31 st March 2003. Also refer Note 1 (k) for accounting policy relating to gratuity.

(AlltiguresareinRs.it 11. Related Party Disclosures in keeping with Accounting Standard -18 prescribed under the Act.

a) List of Related Parties

Where Control exists

Holding Company Bajoria Holdings Private Limited

Subsidiary Companies (including step down subsidiaries) IFGL Worldwide Holdings Limited

IFGL Monocon Holdings Limited Monocon International Refractories Limited Monocon Overseas Limited Mono Ceramics Inc Monotec Refratarios Ltda Tianjin Monocon Refractories Company Limited Tianjin Monocon Aluminous Refractories Company Lim Goricon Metallurgical Services Limited Goricon LLC IFGL GmbH

Hofmann Ceramic GmbH HofmannGmbH&Co.OHG Hofmann Ceramic CZs.r.o. Hofmann Ceramic Ltd Hofmann Ceramic LLC IFGL Pyemetric LLC

Fellow Subsidiaries Heritage Health TPA Pvt Limited

Bajoria Financial Services Pvt Limited IFGL Bio Ceramics Limited Ganges Art Gallery Pvt Limited Bajoria Enterprises Limited IFGL Exports Limited

Others

Key Management Personnel S K Bajoria (Chairman)

P Bajoria (Managing Director)

Relatives of Key Management Personnel

B P Bajoria, Father of S K Bajoria

Enterprises in which key management Heritage Insurance Brokers Pvt Limited personnel has significant influence Coris Heritage Asia Pacific Pvt Limited