Notes to the Financial Statements for the year ended 31st March, 2016

Note 1.

Significant Accounting Policies:

a. Basis of accounting:

The Financial statements are brpared under the historical cost convention on an accrual basis and are in accordance with the requirements of the Companies Act, 2013 (“the Act”) and comply with the Accounting Standards specified under Section 133 of the Act read with Rule 7 of the Companies (Accounts) Rules, 2014.

The brparation of financial statements requires the management to make estimates and assumptions in the reported amounts of assets and liabilities (including current liabilities) as of the date of the financial statements and the reported income and expenses during the reporting period. Management believes that the estimates used in brparation of the financial statements are prudent and reasonable. Future results could differ from these estimates.

b. Fixed assets and Debrciation/Amortisation:

All fixed assets are at cost of acquisition less debrciation/amortisation.

The carrying value of the fixed assets as on April 1, 2015 as well as the additions during the year have been debrciated over the remaining useful life of the assets on the written down value method as brscribed under Part C of Schedule II to the Companies Act, 2013.

Debrciation on additions to Fixed Assets has been provided on a prorata basis from the date of such additions.

c. Borrowing costs:

Borrowing costs that are directly attributable to the acquisition of qualifying assets are capitalised for the period until the asset is ready for its intended use. A qualifying asset is an asset that necessarily takes substantial period of time to get ready for its intended use. Other borrowing costs are recognised as an expense in the period in which they are incurred. No borrowing costs were eligible for capitalisation during the year.

d. Inventories:

Inventories are valued at cost or net realisable value whichever is lower. Cost is arrived at on the basis of weighted average method and includes applicable production overheads.

e. Investments:

Long-term investments are stated at cost. Provision for diminution is made to recognise a decline, other than temporary, in the value of long-term investments, where applicable.

Current Investments are stated at lower of cost and fair value.

f. Impairment of Assets:

An asset is considered as impaired in accordance with Accounting Standard 28 on Impairment of Assets when at the balance sheet date there are indications of impairment and the carrying amount of the assets, or where applicable the cash generating unit to which the asset belongs, exceeds its recoverable amount (i.e. the higher of the asset’s net selling price and value in use).

The carrying amount is reduced to the recoverable amount and the reduction is recognized as an impairment loss in the Statement of Profit and Loss.

g. Retirement Benefits:

The Company has various schemes of Retirement benefits such as Provident Fund, Superannuation and Gratuity. The Superannuation and Gratuity Schemes are duly approved by Income-tax authorities and the Company’s contributions to all these schemes are charged against revenue every year. The Gratuity and Superannuation Fund benefits are administered by a Trust formed for this purpose through the Life Insurance Corporation of India. In respect of gratuity, a provision has been made on the basis of an actuarial valuation as at the end of the year.

The liability in respect of employees eligible for Leave encashment is provided for on the basis of an actuarial valuation as at the end of the year.

h. Foreign currency transactions:

Transactions in foreign currencies are recorded at the exchange rate brvailing on the date of the transaction. In respect of monetary items denominated in foreign currencies, exchange differences arising out of settlement or on conversion at the closing rate are recognised in the Statement of Profit and Loss, there being no liability incurred in foreign exchange for the purpose of acquiring fixed assets.

i. Taxation:

Provision for taxation has been made in accordance with the Income-tax laws and rules brvailing at the time of the relevant assessment years. Deferred tax has not been recognised in view of the position stated in Note 39.

j. Earning per share:

The Company reports basic and diluted earning per share (EPS) in accordance with Accounting Standard 20 Earnings per share.

k. Contingent Liabilities:

Provision is made for all known liabilities. Contingent liabilities if any are disclosed in the accounts by way of a note.

2. During the Year the Company has provided Rs.47.39 Lakhs (Previous Year Rs. 41.01 Lakhs) on account of Gratuity and Rs. 11.82 Lakhs (Previous Year Rs. Nil) on account of Superannuation Payable to its employees. The amounts due as on 31st March 2016 to the Gratuity Fund and Superannuation Fund are Rs. 260.24 Lakhs (Previous Year Rs. 258.84 Lakhs) and Rs. 32.36 Lakhs (Previous Year Rs. 34.89 Lakhs) respectively.

3. Certain balances for the receivables and payables of the Company are subject to reconciliation, confirmation and consequential adjustments/provisions, the amounts whereof have not been determined.

4. During the year, the Company has incorporated a wholly owned subsidiary in Ajman Free Trade Zone, UAE. However, to date, no investment in the shares of the subsidiary has been made.

5. The figures for the brvious year have been regrouped/restated wherever necessary to conform to the classification of the current year.

As per our report of even date attached

For SORAB S. ENGINEER & CO.

Chartered Accountants

Firm Registration No. 110417W

CA N. D. ANKLESARIA

Partner

Membership No. 10250

For and on behalf of the Board

Jai Prakash Agarwal Chairman

Vishal Jain Director

F.K. Banatwalla Director

C. B. Sagvekar Vice President and Company Secretary

M. G. Naik Chief Financial Officer

Mumbai, 19th May, 2016