NOTES ON ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2016

1. Significant Accounting Policies and Notes on Accounts:

1.1. Basis for Preparation of Accounts:

The Accounts have been brpared to comply in all material aspects with applicable Accounting Principles in India, the applicable Accounting Standards notified under Section 2, Clause (2) of The Companies Act, 2013 and the relevant provisions thereof. Financial Statements are brpared based on historical cost and on the basis of a going concern. The Company follows the mercantile system of Accounting and recognizes income and expenditure on an accrual basis.

1.2. Fixed Assets:

Fixed Assets are stated at cost of acquisition inclusive of freight, taxes, insurance etc. relating to the acquisition including installation/erection charges up to the date the asset is put to use, as applicable.

Borrowing costs attributable to acquisition /construction or production of a qualifying asset is capitalized as a part of cost of the asset.

Debrciation:

The Company is providing debrciation on Written Down Value (WDV) method in respect of all Fixed Assets capitalized up to 31st March, 1997.

In respect of additions from 1st April 1997, the Company is providing debrciation by adopting Straight Line method. Software, being intangible asset is debrciated at 20% on straight line basis in line with AS 26. Leasehold land is amortized over the period of the Lease. Debrciation on additions during the year is provided on pro-rata basis.

The company has adopted useful lives in accordance with Part C of Schedule II of the Companies Act, 2013 for all tangible fixed assets and accordingly the company has revised the remaining useful life of all existing tangible assets (other than Plant and Machinery and Electrical Installation) as on 01.04.2014.

For Plant and Machinery and Electrical Installation based on internal assessment and independent technical evaluation carried out by Chartered Engineer the company has adopted useful life as stated below which is different from the Useful Life specified under Schedule II of the Companies Act, 2013.

Asset Class- Life Adopted- Life Specified under Part C of Schedule II of the Companies Act 2013

Plant & Machinery -5 to 20 Years -15 Years

Electrical Installation -20 Years -10 Years

In terms of Para 4 of Schedule II of the Companies Act 2013, Major components of machineries have been identified and their useful lives have been technically assessed.

Wherever the useful life of an identified component is assessed to be different from the main asset, debrciation has been worked out on the basis of the assessed useful life.

The useful lives of all the assets have been reviewed and revised wherever necessary.

1.3. Revenue Recognition:

Sales are stated at net of returns and sales tax. The Excise Duty relatable to sales is separately disclosed and deducted from Sales. Sales Revenue is recognized when significant risks and rewards of ownership of the goods have passed to the buyer.

Dividend income from investments is accounted for when the right to receive the payment is established.

Interest Income is recognized on a time proportion basis taking in to account the amount outstanding and the rate applicable.

1.4. Investments:

Investments are classified into Current and Non Current investments. Current investments are stated at the lower of cost and fair value. Non Current investments are stated at cost.

1.5. Impairment of Assets:

Impairment loss, if any is provided to the extent, the carrying amount of the assets exceeds their recoverable amount. Recoverable amount is higher of an asset's net selling price and its value in use. Value in use is the brsent value of estimated future cash flows expected to arise from the continuing use of an asset and from its disposal at the end of its useful life.

(? IN CRORES)

1.6. Trade Receivables and Loans and Advances:

Sundry Debtors and Loans and advances are stated after making adequate provisions for doubtful balances.

1.7. Provisions:

A Provision is recognized when there is a brsent obligation as a result of a past event, it is probable that an outflow of resources will be required to settle the obligation and in respect of which reliable estimate can be made. Provision is not discounted to its brsent value and is determined based on the best estimate required to settle the obligation at the yearenddate. These are reviewed at each year end date and adjusted to reflect the best current estimate.

1.8. Retirement /Post Retirement Benefits:

The Company also provides for retirement/post retirement benefits in the form of Gratuity, Pension, and Leave Encashment. Such benefits are provided for based on the valuations, as at the Balance Sheet date, made by independent actuaries. Termination benefits are recognized as an expense as and when incurred.

1.9. Taxes on Income:

Current Tax is determined as the amount of tax payable in respect of taxable income for the period.

Deferred tax is recognized, subject to the consideration of prudence, on timing differences, being the difference between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods. Deferred tax assets are not recognized on unabsorbed debrciation and carry forward of losses unless there is virtual certainty that sufficient future taxable income will be available against which such deferred tax asset can be realized.

1.10. Foreign Currency Transactions:

Transactions in foreign currency are recorded at exchange rates brvailing at the time of the transactions and exchange difference arising from foreign currency transaction are dealt with in the profit and loss account and capitalized where they relate to the Fixed Assets. Current Assets and Liabilities at year end are being converted at closing rates and exchange gains /losses are dealt with in the profit and loss account, as per AS 11.

1.11 Grant / Subsidies

Grant / subsidy received under "Central Investment Subsidy Scheme "is directly credited to capital reserve.

1.12 Inventories

Inventories are valued at lower of cost, computed on a weighted average basis and estimated net realizable value, after providing for cost of obsolescence and other anticipated losses, wherever considered necessary. Finished goods and work in Progress include cost of conversion and other costs incurred in bringing the inventories to their brsent location and condition.

1.13 Borrowing Costs

Borrowing costs that are attributable to the acquisition or construction of qualifying assets are capitalized as part of cost of such asset. As per AS-16 "Borrowing costs", a qualifying asset is one that takes necessarily substantial period of time to get ready for its intended use. All the other borrowing costs are expensed as and when incurred.

1.14 Earnings Per Share

Basic earnings per share is calculated by dividing the net profit or loss for the year attributable to equity share holders by weighted average number of equity shares outstanding during the year. For the purpose of calculating diluted earnings per share, the net profit or loss for the year attributable to equity share holders and weighted average number of shares outstanding during the year are adjusted for the effects of dilutive part of equity shares, if any.

1.15 Segment Reporting Identification of Segments

The Company has complied with AS 17 "Segment Reporting" with the business as its primary segment. The risk and awards are very similar in different geographical areas and hence there is no reportable secondary segment as defined in AS-17.

Segment Policies

(i)Revenues have been identified to segments on the basis of their relationship to the operative activities of the segment. Revenues and expenses that relate to the enterprise as a whole and are not allocable to segments on a reasonable basis have been included under " Un-allocable expenses ".

ii)Inter segment revenue and expense are eliminated.

NOTES ON ACCOUNTS FOR THE YEAR ENDED 31st MARCH, 2016

2.1. Previous year figures are given in brackets

2.2. The brvious year's figures have been regrouped and reclassified wherever necessary to make them comparable with the figures of the current year.

2.3. Fringe Benefit Tax (till the time of abolition) was paid under protest, since the matter is pending before The Hon'ble Subrme Court of India. In case of a favorable decision, the company would be entitled to seek refund of the same. Amount: Rs. 1.97 Crores (P/Y: Rs. 1.97 Crores)

2.4. Based on data received from Vendors, the amount due to MSMED is ascertained as Rs. 30.38 Crores . There are no over dues.

2.5. The company has two segments namely Kitchen Appliances and Property & Investment for reporting purposes.

2.6. Pursuant to the Approval of shareholders to the proposed scheme of Demerger between TTK Prestige Limited (TTKPL) and Triveni Bialeti Industries Private Limited (TBI) for the purpose of transferring the Kitchen Appliances Division of TBI to TTKPL, The Honourable High Court of Madras has approved the scheme. However, the approval of The Honourable High Court of Bombay is awaited.

The Appointed Date being 01.04.2012, appropriate effect will be given in the Books of Accounts for the Assets /Liabilities including adjustments for taxes paid in accordance with the sanction of the Courts.

2.7. Exceptional items rebrsents Compensation paid in respect of Voluntary Retirement scheme done at Hosur facilities.

2.8. Forward Exchange Contract

As at the year end, the Company has not entered into any Forward Exchange Contract (or other derivative instruments). The year end foreign currency exposures, which are only in respect of Export receivables, that have not been hedged by aderivative instrument or otherwise amount to Rs.3.71 crores (USD 559807.71) and Rs. 2.56 crores (EURO 3,41,293.76).

As per our report attached

For Messrs. S. VISWANATHAN LLP

Chartered Accountants

Firm's Registration Number : 004770S/S200025

C.N. SRINIVASAN

Partner

Membership No. 18205

For and on behalf of the Board

T.T. Jagannathan Executive Chairman DIN No.: 00191522

Chandru Kalro  Managing Director DIN No.: 03474813

Dileep K. Krishnaswamy Director DIN No.: 00176595

K. Shankaran Director & SecretaryDIN No.: 00043205

V. Sundaresan Chief Financial Officer PAN No.: AKEPS1782M

Coimbatore

23rd May 2016