UT Limited ('the Company'), is a Public Limited Company and is engaged in the manufacture of Hydraulic Equipments mainly used in Earth Moving / Construction Machines e.g. Excavators, Dumpers, Dozers, Scrappers etc. The Company also manufactures Hydraulic and Traction Elevators. The Company was promoted in the year 1965 by late Mahendra Kumar Jhawar. The Company is listed in Bombay Stock Exchange (BSE Limited). The Company has presently two plants, one at Budge-Budge (West Bengal) and the other at Hosur (Tamil Nadu).

2.1 Defined Contribution Plans

During the period an amount of Rs.18,24 (Previous year Rs. 43,73) has been recognised as expenditure towards Defined Contribution Plans of the Company.

2.2 Post Employment Defined Benefit Plans

I. Gratuity ( Funded)

The Company provides for gratuity, a defined benefit retirement plan covering eligible employees. As per the scheme, the Gratuity Trust Fund, managed by the Life Insurance Corporation of India (LIC) and another insurance company, makes payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount equivalent to the respective employee's eligible salary for fifteen days for each year of completed service subject to a maximum limit as laid down under the Payment of Gratuity Act,1972. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as set out in Note 2.10, based upon which, the Company makes contributions to the Gratuity Fund.

The following Table sets forth the particulars in respect of the aforesaid Gratuity Fund of the Company for the six months ended 31 March, 2013:

Notes:

(i) The estimate of future salary increases take into account inflation, seniority, promotion and other relevant factors.

(ii) The expected return on plan assets is determined after taking into consideration composition of the plan assets held, assessed risks of asset management, historical results of the return on plan assets, the Company's policy for Plan asset management and other relevant factors.

II. Certain employees of the Company receive benefits from provident fund, which is a defined benefit plan and administered by the Trust set up by the Company. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the Company make monthly contributions at specified percentage of the employee's salary to such Provident Fund Trust. The Company has an obligation to fund any shortfall in return on plan assets over the interest rates prescribed by the authorities from time to time. In keeping with the guidance on implementing Accounting Standards (AS) 15 on Employee Benefits issued by the Accounting Standards Board of the Institute of Chartered Accountants of India, a provident fund set up by the Company is treated as a defined benefit plan since the Company is obligated to meet interest shortfall, if any. However, as at period end, no shortfall remains unprovided for. The Actuary has opined that the fund will remain in a comfortable position to meet the interest liability in respect of members in service over the next five years and the fund may be treated as to have no interest liability as at 31 March,2013. During the period, the Company has contributed Rs.1,80 (Previous year Rs. 4,36 ) to the said Provident Fund. [ included under line item " Contribution to Provident and Other Funds " on Note 25].

3.1 In earlier years, the Company was negotiating with its Consortium Bankers for an One Time Settlement (OTS) of its dues. Accordingly, in anticipation of an OTS, the Company did not provide for any interest on its dues to its Consortium Bankers and SICOM in the financial year 2010-11. However, as indicated in Note 3, the OTS did not materialise and accordingly as a matter of prudence, the Company has provided for the interest for the financial year 2010-11 in the financial year 2011-12, although negotiations are on with the Consortium Banks and SICOM for a fresh settlement of the dues.

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 liabilities.

4 The figures for the current period (six months ended 31 March, 2013) are not comparable with the figures of the previous year, as the previous Financial Statements had been prepared for Twelve months ended 30 September, 2012.

5 Segment information for the six months ended 31 March, 2013 in accordance with Accounting Standard (AS) 17 on Segment Reporting prescribed under the Companies Act,1956 (the 'Act')

(I) Primary Segment (Business)

6.1 Remuneration to the Whole Time Director for the period 27th February, 2013 to 31st March, 2013 of Rs.1,61 is awaiting Central Government's approval.

7 Operating Lease Commitments

The Company has entered into cancellable operating lease transactions for office space, employee's residential accommodations etc. Tenure of leases generally vary between one and three years. Terms of these leases include operating term for renewal, increase in rent for future periods, of cancellation etc. Related lease rentals aggregating Rs.10,95 (2011-2012 Rs.14,77) have been debited to Statement of Profit and Loss for the period (included in Rent- Note 27).

8 In view of the loss during six months ended 31 March, 2013 no provision for current income tax has been considered necessary. However, the ultimate income tax liability, if any, for the assessment year 2013-14 will be determined based on the financial results for the year ended 31 March, 2013.

9 Disclosure pursuant to SEBI's circular No SMD/POLICY/CIR-02/2003 :

In view of voluminous data furnishing of particulars such as name, amount outstanding at the period end and maximum amount outstanding during the period in respect of loans and advances in the nature of loan given to employees for medical, housing etc. with interest rate varying from 0 - 4 per cent and repayment terms varying from 1 - 5 years is not considered practicable. Aggregate amount of such advances and loans outstanding at the period end is Rs.1,66 (30 September 2012 ; Rs. 2,37).

10 Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current period's classification / disclosure.