SIGNIFICANT ACCOUNTING POLICIES AND NOTES FORMING PART OF THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 31st MARCH, 2015

OVERVIEW :

Incorporated in the state of Maharashtra in 1979, the Company was originally named Sudarshan Aluminium Industries Limited. In April, 1994, the name of the company was changed to Sudal Industries Limited.

The Company is in the business of manufacturing of Aluminium Extrusions, Aluminium Alloys, Down Stream Products.

A. SIGNIFICANT ACCOUNTING POLICIES

1. GENERAL :

(a) The financial statements are brpared on the basis of historical cost convention, and on the accounting principles of a going concern.

(b) Accounting Policies not specifically referred to otherwise are consistent and in consonance with the applicable Accounting Standards brscribed by the Companies (Accounting Standards) Rules, 2006 to the extent applicable.

(c) All expenses and income to the extent ascertainable with reasonable certainty are accounted for on accrual basis.

2. USE OF ESTIMATES :

The brparation of financial statements in conformity with Generally Accepted Accounting Principles (GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and the disclosures of contingent liabilities on the date of financial statements and reported amounts of revenue and expenses for that year. Actual results could differ from these estimates. Any revision to accounting estimates is recognized prospectively.

3. FIXED ASSETS :

(a) Leasehold Land, Buildings, Plant and Machinery and Electrical Installations are stated at revalued amounts less debrciation.

(b) Other Assets are stated at cost less debrciation.

(c ) The Company capitalizes intangible asset where it is reasonably estimated that the asset has an enduring useful life.

4. IMPAIRMENT OF ASSETS :

In accordance with AS-28 on 'Impairment of Assets' issued by the Institute of Chartered Accountants of India, where there is an indication of impairment of the Company's assets related to cash generating units, the carrying amounts of such assets are reviewed at each Balance Sheet date to determine whether there is any impairment. The recoverable amount of such assets is estimated as the higher of its net selling price and its value in use. An impairment loss is recognized whenever the carrying amount of such assets exceeds its recoverable amount. Impairment loss is recognized in the Profit and Loss Account.

5. INVESTMENTS :

Long term investments are stated at cost.

6. VALUATION OF INVENTORIES :

(a) Inventories are valued at the lower of the cost and net realizable value. Cost is assigned on FIFO basis. Obsolete, defective and unserviceable stocks are provided for

(b) Finished goods and work-in-process include cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition excluding aluminium scrap which is valued at estimated cost.

(c ) Dies being a specialised item (included in stores & spares inventories) are valued on the basis of valuation of such stocks at the year end carried out by a government approved valuer considering its residual useful life and replacement value.

7. DEbrCIATION/ AMORTIZATION :

(a) Value of Leasehold Land is amortized over the period of lease.

(b) On vehicles, Furniture & Fixtures and Office Equipments, debrciation is provided on written down value method as per the life specified in Schedule II to Companies Act, 2013.

(c ) On Buildings, debrciation is provided on straight line method at the useful life specified in Schedule II to the Companies Act,2013

(d ) On plant and equipment, the debrciation is provided as per the life specified for continuous Industrial unit in Schedule II to Companies Act, 2013.

(e) In respect of addition made by way of revaluation to certain fixed assets, the debrciation is provided on the basis of future estimated life to these assets.

(f ) Intangible assets are amortized over their useful life.

8. ACCOUNTING FOR TAXES ON INCOME :

(a) Provision for Income Tax is made on the basis of the estimated taxable income for the current accounting period in accordance with the Income Tax Act, 1961.

(b ) Deferred tax resulting from timing difference between book and tax profits is accounted for under the liability method, at the current rate of tax, to the extent that the timing differences are expected to reverse. Deferred tax assets are recognised and carried forward only if there is a reasonable certainty that they will be realised and are reviewed for the appropriateness of their respective carrying values at each balance sheet date. Credit Entitlement in respect of Minimum Alternate Tax (MAT) is considered on management estimation of regular taxation in future.

9. SALES AND OTHER OPERATING INCOME :

Revenue from sale of goods is recognized when significant risks and rewards of ownership are transferred to the customers. Sales are inclusive of packing charges recovered. Conversion job income is accounted for on the completion of the job.

10. TRANSLATION OF FOREIGN CURRENCY :

(a) Transactions in foreign currency are recorded at the rate of exchange in force at the date of transaction.

(b) Foreign currency assets and liabilities except those for acquisition of fixed assets as at the end of the year are translated at the exchange rates brvailing at the date of the Balance Sheet and resultant gains/ losses are recognised in the Statement Profit and Loss.

(c ) Foreign currency liability relating to acquisition of fixed assets is stated at the brvailing rate of exchange at the year end and the resultant gains/ losses are adjusted to the cost of assets.

11. EMPLOYEE BENEFITS :

Contributions towards provident fund are made under defined contribution retirement benefit plans for qualifying employees. The provident fund plan is operated by the Regional Provident Fund Commissioner. The contributions are charged to Statement of Profit and Loss in the respective year.

Gratuity liability under the Payment of Gratuity Act, 1972 is a defined benefit obligation which is not funded and is provided for on the basis of the actuarial valuation made at the end of each financial year.

Short term compensated absences are provided for based on estimates. Long Term compensated absences are provided for based on actuarial valuation made at the end of each financial year.

Actuarial gains / losses are immediately taken to Statement of profit and loss and are not deferred.

12. BORROWING COSTS :

Borrowing costs attributable to acquisition and construction of qualifying assets are capitalized as a part of the cost of such asset up to the date when such asset is ready for its intended use. Other borrowing costs are charged to Statement of Profit and Loss.

13. PROVISIONS, CONTINGENT LIABILITIES AND CONTINGENT ASSETS :

The Company recognises a provision when there is a brsent obligation as a result of a past event that probably requires an outflow of resources and a reliable estimate can be made of the amount of the obligation. A disclosure for a contingent liability is made when there is a possible obligation or a brsent obligation that made, but probably will not, require an outflow of resources. Where there is possible obligation or a brsent obligation that the likelihood of outflow resources is remote, no provision or disclosure is made.

14. GOVERNMENT GRANTS :

Grants and subsidies from the government are recognized if the following conditions are satisfied:

- There is reasonable assurance that the Company will comply with the conditions attached to it.

- Such benefits are earned and reasonable certainty exists of the collection.

Government grants or subsidies given with reference to the total investment in an undertaking or setting up of new industrial undertaking is treated as capital receipt and credited to capital reserve. The said capital reserve will not be available for distribution of dividend nor is considered as deferred income.

1. Pursuant to enactment of the Companies Act 2013 (the Act), the company has, effective 1st April,2014, reviewed and revised the estimated useful life of certain fixed assets, in accordance with Schedule II to the Act. Accordingly, the company has given impact of Rs. 5,25,227 on account of assets whose useful life already exhausted on 1st April 2014 to Retained Earnings and Rs. 3,32,65,875 in respect of revalued Assets acquired prior to 31st March,2004, whose cost has been fully written off, the revalued amount for the same has been transferred to Revaluation Reserve. If the company had continued with the brviously assessed useful lives, charge for debrciation for the year would have been lower by Rs. 21,65,687.

2. The brvious year figures have been regrouped/ rearranged/ reclassified, wherever necessary to conform to the current year brsentation.

For and on behalf of the Board of Directors

Sudarshan S. Chokhani

Managing Director

Ketan R. Shirwadkar

Company Secretary

Mukesh V. Ashar

CFO and Director

Place : Mumbai

Date : 26th May, 2015