1. COMPANY OVERVIEW

Hindustan Tin Works Limited ("the company") is a public company incorporated on 11th December, 1958 under the Companies Act, 1956; equity shares of the company are listed on Bombay Stock Exchange, Calcutta Stock Exchange and Delhi Stock Exchange. The company is engaged mainly in the business of Manufacturing of Tin Cans, Printed / Lacquered Sheets, Components and trading in Tin Plates.

2. SIGNIFICANT ACCOUNTING POLICIES:

1 Basis of Preparation of Financial Statements

The financial statement has been brpared to comply in all material respect with the mandatory Accounting Standard notified by the Ceneral Government as per Companies (Accounting Standard) Rules 2006 ( as amended ) read with Circular No. 15/2013 dated September 13, 2013 and General Circular No. 8/2014 dated 04th April 2014 issued by the Ministry of Corporate Affair and the relevant provision of Companies Act 2013. These financial statements have been brpared on an accrual basis and under historical cost convention on the basis of going concern

The accounting policies adopted in the brparation of financial statement are consistent with those of brvious year.

2 Recognition of Income and Expenditure:

Revenues /Income and Costs/Expenditure are generally accounted on accrual, as they are earned or incurred. Sales of Goods are recognized on transfer of significant risks and rewards of ownership which is generally on the dispatch of goods. Company makes export sales by using custom / cenvat paid material against which Company is entitled to import duty free raw material and duty draw back. The accounting for export benefits are on accrual basis and same is reduced from the cost of raw material consumed in the financial statement. In case of advance authorization the estimated amount of export benefits have been recognized in the financial statement and suitable adjustment for the difference arising on actual receipt of material would be made in the year of receipt of material.

3 Uses of Estimates:

The brparation of financial statements in conformity with generally accepted accounting principles requires estimates and assumptions to be made that affect the reported amounts of assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Differences between actual results and estimates are recognised in the period in which the results are known/materialized.

4 Fixed Assets

Fixed assets are stated at cost except Plant & Machinery shifted from erstwhile Sahibabad unit which were revalued on 30.6.92 and the assets of erstwhile Conwel Cans India Ltd. which has been taken on fair market value as per the approved valuer's report.

5 Method of Debrciation:

Debrciation is provided on straight line method with NIL residual value (except in respect of assets belonging to Registered Office Debrciation on which has been provided at Written Down Value with 5.00% residual value) and at the rates and in the manner specified in the Schedule II of the Companies Act, 2013, (net of cenvat as applicable.) Debrciation on additions to assets or on sale/discardment of assets is calculated pro rata from the Date of such addition or up to the Date of such sale/discardment, as the case may be. Difference of Rs.314.66 lacs has been debited to the retain earning as on beginging of the financial year 2014-15 and its Deferred tax effect amounting to Rs.106.95 lacs has been debited to Deferred Tax Liability by crediting in retained earning.

6 Investment

The Company has made long term investments shown under the Head " Non Current Investment" which are stated at cost. Provision for diminishing in value of the long term investment is made only if such a decline is other than temporary in the opinion of the management.

The investment in unquoted equity shares in JV company has now been classified under Current Investment as the same has been disposed off in the Financial Year 2015-16.

7 Value of Inventory

Inventories are valued at cost or net realizable value whichever is lower. The bases of valuation are as follows:-

Raw material, stores & spares : At cost or Net realizable value which ever is lower.

Work-in-process : At raw material cost plus Process cost.

Finished goods : At Market Price or Cost which ever is lower

Accounting of Raw Material purchase & closing stock is net of CENVAT & VAT credit. Claims & refunds, if any, shall be accounted for in the year of determination. The excise duty in respect of closing inventory of finished goods is not included in the valuation of finished goods inventory.

8 Foreign Currency Transaction

(i) Transactions in foreign currency are recorded at the exchange rate published by Custom department for the particular period on which the transaction recorded.

(ii) Current monetary Assets and Liabilities denominated in foreign currency are translated at the exchange rate brvailing at the date of balance sheet and gains or losses on translation are recognized in profit and Loss Account in the respective heads.

(iii) In respect of forward exchange contract assigned to foreign currency Assets / Liabilities, the difference due to change in exchange rate between the inception of forward contract and date of the balance sheet and proportionate brmium / discount for the period up to the date of balance sheet is recognized in the profit loss Account. Any profit or loss arising on settlement / cancellation of forward contract is recognized as income or expense for the year in which they arise.

(iv) Any gain or loss arising on account of exchange difference either on settlement or on translation is accounted for in the Profit & Loss account except in case of long term foreign currency monetary items relating to acquisition of debrciable capital asset (other than regarded as borrowing cost) in which case they are adjusted to the carrying cost of such assets.

9 Research & Development

Revenue expenditure charged to Profit and Loss Account under respective heads of account and capital expenditure added to the cost of Fixed Assets in the year in which it is incurred.

10 Employees Benefits

(i) Defined Contribution Plans such as Provident Fund etc. are charged to the Profit & Loss Account as incurred.

(ii) Defined Benefit Plans - The brsent value of the obligation under such plan isdetermined based on an actuarial valuation using the Projected Unit Credit Method. Actuarial gains and losses arising on such valuation are recognised in the Profit & Loss Account. In case of funded defined benefit plans, the fair value of the plan assets is reduced from the gross obligation under the defined benefit plans, to recognize the obligation on net basis.

(iii) Other Long term Employee Benefits are recognised in the same manner as Defined Benefit Plans.

11 Accounting for Past Events

A provision is recognized when the Company has a brsent obligation as a result of past event and it is probable that an outflow of resources will be required to settle the obligation, in respect of which a reliable estimate can be made. Provisions except those disclosed elsewhere in the financial statements, are not discounted to their brsent value and are determined based on best estimate required to settle the obligation at each Balance Sheet date and are adjusted to reflect the current best estimates.

12 Borrowing Cost

Borrowing costs includes interest cost and all ancillary costs incurred in connection with the arrangement of borrowings. Borrowing cost is considered as expenditure in the period and charge of to Profit and Loss Account. Fund borrowed for acquisition of qualifying fixed assets are capitalized till the date of commissioning and thereafter charged to Profit and Loss Account.

13 Provisions, Contingent Liabilities and Contingent Assets

Contingent liabilities, if any, are not recognized in the accounts but are disclosed by way of notes. Contingent assets are neither recognized nor disclosed in the financial statements.

14 Taxes on Income

Provision for tax is made as per Income Tax Act, 1961. Deferred tax assets/liabilities resulting from timing difference between book and taxable profit is accounted for considering the tax rate and laws that have been enacted or substantively enacted as on the balance sheet date. Deferred tax assets if any, are recognized and carry forward only to the extent that there is virtual certainty that the asset will be realized in future.

15 Impairment of Assets

An asset is treated as impaired when the carrying cost of assets exceeds its recoverable value. Impairment is charged to the Profit & Loss Account in the year in which an asset is identified as impaired. The impairment loss recognized in the prior accounting periods is reversed if there has been a change in the estimate of recoverable amount.

3. Contingent Liabilities and Commitments

3.1 Contingent Liabilities

(a) In respect of Bank Guarantee outstanding as on 31st March, 2015 amounting to Rs.23.56 lacs (brvious year Rs.20.28 Lacs).

(b )Compensation suit filed under section 12B of MRTP Act by M/s Himalaya International Ltd. has been decided in favour of the complainant by the MRTP Commission (now competition appellate tribunal) vide order dated 07.07.2008. The total amount involved is Rs. 349.75 lacs. The company has filed an appeal before the Hon'ble Delhi High Court for the relief and Hon'ble High Court has remanded back the matter to (now competition appellate appellate tribunal) and the tribunal had judgment in favour of the company. M/s Himalayan International Limited has filed an appeal before Appellate Tribunal for reviewing the decision now appellate tribunal has adjourned the matter sine die till decision of the Hon'ble Delhi High Court in the suit filed by the M\s. Himalaya International Ltd.

(c) Income Tax demand for AY-2012-13 Rs. 16.25 Lacs .

(d) Rs 20,41,309/- for the year 2008-09 to 2014-15 may be payable to Haryana Sales Tax Department towards L.A.D.T. The company has filed an appeal before the Hon'ble High Court Chandigarh for the relief and the Hon'ble High Court has granted stay against L.A.D.T. and declared L.A.D.T. unconstitutional. However no demand has been raised by the Haryana Sales Tax Department.

3.2 Commitments

(a) The estimated amount of contract remaining to be executive on capital account and not provided for, net of advances Rs. 263.08 Lacs. (Previous year Rs.54.62 Lacs)

4. Other liabilities:

(a) There is no goods lying in the custom warehouse so custom duty payable amounting to Rs. Nil (brvious year Nil).

(b) Excise duty payable on finished goods lying in the Godown amounting to Rs. 95.19 lacs (brvious year Rs 31.97 lacs).

5. Information in respect of employees who are in receipt of remuneration in aggregate amounting to Rs. 6000000/- p.a or more, if employed for full year or Rs. 500000/- per month if employed part of the year is not given as no employee falls under the said category.

6. Based on information so far available with the company in respect of MSME (as defined in the Micro Small Medium Enterprises Development Act 2006) there are no delays in payment & dues to such enterprises during the year. There are no outstanding amounts of such Creditors as on 31.03.15. (Previous year outstanding Rs. NIL)

7. The company has an obligation to pay Rs.5.62 lacs on account of Uttar Pradesh Trade Tax as on 31st March, 2012 on account of past events, therefore, a provision Rs.11.52 lacs ( Rs.5.90 lacs already paid) has been made by the company in the books of account as on 31st March, 2012 as required under the Accounting Standard-29 issued by the Institute of Chartered Accountants of India on 'Provisions, Contingent Liabilities and Contingent Assets'. Further, details of Contingent Liabilities have been given above as per the Accounting Standard-29:

8. Earnings In Foreign Currency

Export Goods on FOB Basis Rs. 6711.14 Lacs (Previous Year Rs. 6763.23 Lacs).

9. Previous year's figures have been regrouped/ reclassified wherever practicable to confirm to current year's brsentation.

For and on behalf of the Board of Directors.

SANJAY BHATIA Managing Director

ASHOK KUMAR BHATIA Whole Time Director

M.K. MITTAL AVP (Accounts) & CFO

RAJAT PATHAK VP (Finance) & Chartered Accountants

As per our Report of even date attached

For M.L. Puri & Co.

Company Secretary FRN 002312N

M. L. PURI

(Partner)

M. No. 9198

Place : New Delhi

Date : May 27, 2015