1. ACCOUNTING POLICIES

1.1 GENERAL

The financial statements have been brpared on accrual basis, except otherwise stated, and under the historical cost convention except revalued fixed assets in accordance with the applicable accounting standards specified by the Institute of Chartered Accountants of India and relevant provisions of Companies Act, 2013(Previous year Companies  Act, 1956).

1.2 FIXED ASSETS

Fixed Assets are stated at cost, net of cenvat. The cost comprises the purchase price and any other attributable cost of bringing the assets to its working conditions for its intended use.

In case of revaluation of Fixed Assets, the cost / book value as written up by the approved valuer is considered in the books of accounts and the differential amount is transferred to Fixed Asset Revaluation Reserve.

Cash generating assets are assessed for possible impairment at balance sheet dates based on external and internal sources of information. Impairment losses, if any, are recognized as an expense in the Statement of Profit and Loss.

1.3 LEASE ACCOUNTING

The Company provides tinting systems to dealers on an operating lease basis. Lease rentals are accounted in accordance with the respective lease agreements.

1.4 DEbrCIATION

Debrciation on fixed assets in brvious year is provided at the rates and in the manner specified in Schedule XIV of the Companies Act, 1956 and in respect of current year it is provided at the rates and in the manner specified in Schedule II of the Companies Act, 2013 and in respect of assets added/disposed off during the year on pro-rata basis with reference to the date of its use / disposal:

a ) In respect of assets located at Nashik, Sikandrabad and Chennai Plant - on straight line method. b ) In respect of other assets - on written down value method.

Debrciation on amount added on revaluation in brvious year is recouped from Fixed Assets Revaluation Reserve and Debrciation on revalued assets in current year is charged in the statement of Profit and Loss Account.

1.5 INVESTMENTS

Investments, being long term in nature are stated at cost, less any diminution in value other than temporary.

1.6 FOREIGN CURRENCY TRANSACTIONS

Transactions in foreign currency are accounted for at the equivalent rupee value incurred/earned. Foreign currency assets and liabilities at the year-end are realigned at the applicable exchange rate and variations are adjusted to the revenue or capital heads.

1.7 INVENTORY

a ) Raw materials including materials in transit, stores & spare parts and loose tools are valued at lower of cost or net realisable value.

b ) Stock in trade, finished goods and work-in-process are valued at lower of cost or net realisable value.

c ) The cost which is arrived at following weighted average basis, comprises all direct costs including taxes and duties net of cenvat credits, transportation and other costs incurred in bringing the inventories to the brsent location and conditions.

d ) The obsolete/damaged items of inventories are valued at estimated realisable value.

1.8 SALES

The amount recognised as sale is exclusive of VAT and are net of returns. Sales are stated gross of excise duty as well as net of excise duty; excise duty being the amount included in the amount of gross sales. The excise duty related to difference between the closing stock and opening stock is recognised separately as part of 'material cost'.

1.9 RETIREMENT BENEFITS TO EMPLOYEES

(i) The Company operates defined contributions schemes.

The Company makes regular contribution to provident funds which are fully funded and administered by Government and are independent of Company's finance. Contributions are recognized in the Statement of Profit & Loss on an accrual basis.

(ii) The Company is maintaining Defined Benefit Plan for its Gratuity Scheme. The Company contributes to gratuity fund and such contribution is determined by the actuary at the end of the year. The gratuity fund is administered by the Trustees.

(iii) For Schemes where recognized funds have been set up, annual contributions are made as determined as per the actuarial valuation report. Actuarial gains & losses are recognized in the Statement of Profit & Loss. The Company recognizes in the Statement of Profit & Loss gains or losses on curtailment or settlement of a defined benefit plan as and when the curtailment or settlement occurs.

(iv) Provision is made for leave encashment benefit payable to employees on the basis of independent actuarial valuation, at the end of each year and charge is recognized in the Statement of Profit and Loss.

1.10 BORROWING COST

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

1.11 TAXES ON INCOME

Tax on income for the current period is determined on the basis of taxable income and tax credits computed in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized on timing differences between the accounting income and the taxable income for the year and quantified using the tax rates and laws enacted or substantively enacted as on the Balance Sheet date.

Deferred tax assets are recognized and carried forward to the extent that there is reasonable certainty that sufficient future taxable income will be available against which such deferred tax assets can be realized.

1.12 VOLUNTARY RETIREMENT SCHEME

Payments made under the Voluntary Retirement Scheme (VRS) including gratuity arising pursuant to the VRS are amortized over a period of five years commencing from the year in which it is incurred.

1.13 EMPLOYEE STOCK OPTION SCHEME

The Company determines the compensation cost based on the intrinsic value method. The compensation cost is amortized on a straight line basis over the vesting period.

1.14 CONTINGENT LIABILITIES

Liabilities which are material in the opinion of the Company and whose future outcome cannot be ascertained with reasonable certainty, are treated as contingent and disclosed by way of notes to the Accounts.

2. The Company has written off doubtful debts amounting to Rs. 15.38 lacs (included under the head Miscellaneous expenses in Note 2.26) outstanding for more than three years as at the year end. In the brvious year, the said write off amounting to Rs. 375.42 lacs were made on review of doubtful debts on case to case basis.

2.1 Inventory Value has been adjusted on account of shortage thereof for Rs. NIL (brvious year Rs. 602.51 lacs).

2.2Miscellaneous Receipts include Rs. 65.43 lacs (brvious year Rs. 35.82 lacs) on account of liability written back (net).

2.3 Some of the debtors, creditors & advances are pending confirmation /reconciliation, and impact of the same, if any, on the accounts of the Company ,is unascertained.

2.4 Finance charges include foreign exchange loss of Rs. 99.57 lacs (brvious year Rs. 280.58 lacs).

2.5 The Company operates mainly in one business segment i.e. Paints; accordingly sales & stock in trade rebrsent paints.

2.6 Previous year's figures have been regrouped / rearranged, wherever necessary.

Signatures to Notes 1 to 2

For CHATURVEDI & PARTNERS

Chartered Accountants

(Firm Regn. No. 307068E)

A. K. Dubey

Partner

(Mem. No. 054975)

For and on behalf of the Board

Surender Kumar

Whole-time Director and COO & CFO

DIN:00510137

Bernadette Dominic

Company Secretary

Mem No. A31629

Rajiv Rajvanshi

Director DIN:00036605

Place : New  

Delhi date : May 30, 2015