Notes to Accounts of Beardsell Ltd.

Mar 31, 2025

n) Provisions

Provisions are recognized when an enterprise has a present obligation (legal or constructive) as a result of past event and
it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, in respect
of which a reliable estimate can be made of the amount of the obligation. Provisions are not discounted to its present value
and are determined based on best estimate required to settle the obligation at the balance sheet date. These are reviewed
at each balance sheet date and adjusted to reflect the current best estimates.

If the effect of the time value of money is material, provisions are discounted using a current pre-tax rate that reflects,
when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Provisions for warranty-related costs are recognized when the product is sold or service provided. Provision is estimated
based on historical experience and technical estimates. The estimate of such warranty-related costs is reviewed annually.

o) Contingent liabilities

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation. A contingent liability also arises in extremely rare cases where there is a liability that cannot be recognized
because it cannot be measured reliably. The Company does not recognize a contingent liability but discloses its existence
in the financial statements.

p) Segment reporting

The Company identifies primary segments based on the dominant source, nature of risks and returns and the internal
organisation and management structure. The operating segments are the segments for which separate financial information
is available and for which operating profit/loss amounts are evaluated regularly by the executive Management in deciding
how to allocate resources and in assessing performance. Operating segments are reported in a manner consistent with the
internal reporting provided to the chief operating decisionmaker (CODM).

The accounting policies adopted for segment reporting are in line with the accounting policies of the Company. Segment
revenue, segment expenses, segment assets and segment liabilities have been identified to segments on the basis of their
relationship to the operating activities of the segment.

Revenue, expenses, assets and liabilities which relate to the Company as a whole and are not allocable to segments on
reasonable basis have been included under “unallocated revenue / expenses / assets / liabilities”.

q) Borrowing costs

Borrowing costs consist of interest and other costs that an entity incurs in connection with the borrowing of funds.
Borrowing cost also includes exchange differences to the extent regarded as an adjustment to the borrowing costs.
Borrowing costs directly attributable to the acquisition, construction or production of an asset that necessarily takes a
substantial period of time to get ready for its intended use or sale are capitalised as part of the cost of the asset.
Capitalisation of Borrowing Costs is suspended and charged to the statement of profit and loss during extended periods
when active development activity on the qualifying assets is interrupted. All other borrowing costs are expensed in the
period they occur.

r) Fair Value Measurement

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between
market participants at the measurement date. The fair value measurement is based on the presumption that the transaction
to sell the asset or transfer the liability takes place either:

i. In the principal market for the asset or liability, or

ii. In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing
the asset or liability, assuming that market participants act in their economic best interest.

A fair value measurement of a non-financial asset takes into account a market participant’s ability to generate economic
benefits by using the asset in its highest and best use or by selling it to another market participant that would use the asset
in its highest and best use.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are
available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable
inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within
the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value
measurement as a whole:

a) Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities

b) Level 2 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is directly or indirectly observable

c) Level 3 - Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines
whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level
input that is significant to the fair value measurement as a whole) at the end of each reporting period.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the
nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

s) Financial Instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or equity
instrument of another entity.

Financial assets

Initial recognition and measurement

All financial assets are recognised initially at fair value plus, in the case of financial assets not recorded at fair value
through profit or loss, transaction costs that are attributable to the acquisition of the financial asset.

Subsequent measurement

For purposes of subsequent measurement, financial assets are classified in four categories:

i. Financial assets at amortised cost (debt instruments)

ii. Financial assets at fair value through other comprehensive income (FVTOCI) with recycling of cumulative gains
and losses (debt instruments)

iii. Financial assets designated at fair value through OCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)

iv. Financial assets at fair value through profit or loss

Financial assets at amortised cost (debt instruments)

A ‘financial asset’ is measured at the amortised cost if both the following conditions are met:

i. The asset is held within a business model whose objective is to hold assets for collecting contractual cash flows,
and

ii. Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal and
interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees
or costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the profit or loss. The
losses arising from impairment are recognised in the profit or loss. The losses arising from impairment are recognised in
the profit or loss. This category generally applies to trade and other receivables.

Financial assets at fair value through OCI (FVTOCI) (debt instruments)

A ‘financial asset’ is classified as at the FVTOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial
assets, and

b) The asset’s contractual cash flows represent SPPI.

Debt instruments included within the FVTOCI category are measured initially as well as at each reporting date at fair
value. For debt instruments, at fair value through OCI, interest income, foreign exchange revaluation and impairment
losses or reversals are recognised in the profit or loss and computed in the same manner as for financial assets measured
at amortised cost. The remaining fair value changes are recognised in OCI. Upon derecognition, the cumulative fair value
changes recognised in OCI is reclassified from the equity to profit or loss.

Financial assets designated at fair value through OCI (Equity Instruments)

All equity investments in scope of Ind AS 109 are measured at fair value. Equity instruments which are held for trading
are classified as at FVTPL. For all other equity instruments, the Company may make an irrevocable election to present in
other comprehensive income subsequent changes in the fair value. The Company makes such election on an instrument-
by-instrument basis. The classification is made on initial recognition and is irrevocable.

If the Company decides to classify an equity instrument as at FVTOCI, then all fair value changes on the instrument,
excluding dividends, are recognized in the OCI. There is no recycling of the amounts from OCI to P&L, even on sale of
investment. However, the Company may transfer the cumulative gain or loss within equity.

Financial assets at fair value through profit or loss

Financial assets at fair value through profit or loss are carried in the balance sheet at fair value with net changes in fair
value recognised in the statement of profit and loss.

This category includes derivative instruments and listed equity investments which the Company had not irrevocably
elected to classify at fair value through OCI. Equity instruments included within the FVTPL category are measured at fair
value with all changes recognized in the P&L.

Dividends on listed equity investments are recognised in the statement of profit and loss when the right of payment has
been established.

De-recognition

A financial asset (or, where applicable, a part of a financial asset or part of a Company of similar financial assets) is
primarily derecognised (i.e. removed from the Company’s standalone balance sheet) when:

i. The rights to receive cash flows from the asset have expired, or

ii. The Company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay
the received cash flows in full without material delay to a third party under a ‘pass-through’ arrangement; and
either (a) the Company has transferred substantially all the risks and rewards of the asset, or (b) the Company
has neither transferred nor retained substantially all the risks and rewards of the asset, but has transferred control
of the asset.

When the Company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
Company continues to recognise the transferred asset to the extent of the Company’s continuing involvement. In that
case, the Company also recognises an associated liability. The transferred asset and the associated liability are measured
on a basis that reflects the rights and obligations that the Company has retained.

Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the Company could be required to
repay.

Impairment of Financial Assets

In accordance with Ind AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and
recognition of impairment loss on the following financial assets and Credit risk exposure:

i. Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits,
trade receivables and bank balance

ii. Trade receivables or any contractual right to receive cash or another financial asset that result from transactions

The Company follows ‘simplified approach’ for recognition of impairment loss allowance on Trade receivables.

The application of simplified approach does not require the Company to track changes in Credit risk. Rather, it recognises
impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition. For recognition
of impairment loss on other financial assets, the Company determines that whether there has been a significant increase
in the Credit risk since initial recognition. If Credit risk has not increased significantly, 12-month ECL is used to provide
for impairment loss. However, if Credit risk has increased significantly, lifetime ECL is used. If, in a subsequent period,
Credit quality of the instrument improves such that there is no longer a significant increase in Credit risk since initial
recognition, then the entity reverts to recognising impairment loss allowance based on 12-month ECL.

Lifetime ECL are the expected Credit losses resulting from all possible default events over the expected life of a financial
instrument. ECL is the difference between all contractual cash flows that are due to the Company in accordance with the
contract and all the cash flows that the Company expects to receive, discounted at the original EIR. When estimating the
cash flows, the Company is required to consider:

i. All contractual terms of the financial instrument (including prepayment, extension, call and similar options) over
the expected life of the financial instrument. However, in rare cases when the expected life of the financial
instrument cannot be estimated reliably, then the Company is required to use the remaining contractual term of the
financial instrument

ii. Cash flows from the sale of collateral held or other Credit enhancements that are integral to the contractual terms

As a practical expedient, the Company uses a provision matrix to determine impairment loss allowance on portfolio of its
trade receivables. The provision matrix is based on its historically observed default rates over the expected life of the
trade receivables and is adjusted for forward-looking estimates. At every reporting date, the historical observed default
rates are updated and changes in the forward-looking estimates are analysed.

ECL impairment loss allowance (or reversal) recognized during the period is recognized as income/ expense in the
statement of profit and loss (P&L). This amount is reflected under the head ‘other expenses’ in the P&L. The balance
sheet presentation for various financial instruments is described below:

i. Financial assets measured as at amortised cost: ECL is presented as an allowance, i.e., as an integral part of the
measurement of those assets in the balance sheet. The allowance reduces the net carrying amount. Until the asset
meets write-off Criteria, the Company does not reduce impairment allowance from the gross carrying amount.

For assessing increase in Credit risk and impairment loss, the Company combines financial instruments on the basis of
shared Credit risk characteristics with the objective of facilitating an analysis that is designed to enable significant
increases in Credit risk to be identified on a timely basis.

Financial liabilities

Initial recognition and measurement

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of
directly attributable transaction costs.

The Company’s financial liabilities include loans and borrowings including bank overdrafts, financial guarantee contracts,
trade and other payables.

Subsequent measurement

Financial liabilities at fair value through profit and loss

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for
trading if they are incurred for the purpose of repurchasing in the near term. This category also includes derivative
financial instruments entered into by the Company that are not designated as hedging instruments in hedge relationships
as defined by Ind AS 109. Separated embedded derivatives are also classified as held for trading unless they are designated
as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated as such at the
initial date of recognition, and only if the Criteria in Ind AS 109 are satisfied. For liabilities designated as FVTPL, fair
value gains/ losses attributable to changes in own Credit risks are recognized in OCI. These gains/ losses are not
subsequently transferred to P&L. However, the Company may transfer the cumulative gain or loss within equity. All other
changes in fair value of such liability are recognised in the statement of profit and loss.

Financial liabilities at amortised cost (Loans and borrowings)

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the
EIR method. Gains and losses are recognised in profit or loss when the liabilities are derecognised as well as through the
EIR amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an
integral part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

Financial guarantee contracts

Financial guarantee contracts issued by the Company are those contracts that require a payment to be made to reimburse
the holder for a loss it incurs because the specified debtor fails to make a payment when due in accordance with the terms
of a debt instrument. Financial guarantee contracts are recognised initially as a liability at fair value, adjusted for
transaction costs that are directly attributable to the issuance of the guarantee. Subsequently, the liability is measured at
the higher of the amount of loss allowance determined as per impairment requirements of Ind-AS 109 and the amount
recognised less cumulative amortisation.

De-recognition

A financial liability is derecognised when the obligation under the liability is discharged or cancelled or expires. When
an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an exchange or modification is treated as the de-recognition of the
original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognised in
the statement of profit or loss.

Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if there is a currently
enforceable legal right to offset the recognised amounts and there is an intention to settle on a net basis, to realise the
assets and settle the liabilities simultaneously

t) Derivative financial instruments

The Company enters into derivative financial instruments to manage its exposure to foreign exchange rate risks, including
foreign exchange forward contracts. Derivatives are initially recognised at fair value at the date the derivative contracts
are entered into and are subsequently remeasured to their fair value at the end of each reporting period. The resulting gain
or loss is recognised in profit or loss immediately.

u) Use of estimates

The preparation of Standalone Financial Statements in conformity with Ind AS requires the management to make
judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities and
the disclosure of contingent liabilities, like provision for employee benefits, provision for doubtful trade
receivables/advances/contingencies, provision for warranties, allowance for slow/non-moving inventories, useful life of
Property, Plant and Equipment, provision for taxation, etc., during and at the end of the reporting period. Although these
estimates are based on the management’s best knowledge of current events and actions, uncertainty about these
assumptions and estimates could result in the outcomes requiring a material adjustment to the carrying amounts of assets
or liabilities in future periods.

v) Cash and cash equivalents

Cash and cash equivalents in the balance sheet comprise cash at banks and on hand and short-term deposits with an
original maturity of three months or less, that are readily convertible to a known amount of cash and subject to an
insignificant risk of changes in value.

For the purpose of the statement of cash flows, cash and cash equivalents consist of cash and short-term deposits, as
defined above, net of outstanding bank overdrafts as they are considered an integral part of the Company’s cash
management.

w) Dividend

The Company recognises a liability to pay dividend to equity holders of the parent when the distribution is authorised and
the distribution is no longer at the discretion of the Company. As per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders. A corresponding amount is recognised directly in equity.

x) Earnings Per Share (EPS)

Basic earnings per share are calculated by dividing the net profit or loss for the period attributable to equity shareholders
by the weighted average number of equity shares outstanding during the period.

The weighted average number of equity shares outstanding during the period is adjusted for events such as bonus issue,
bonus element in a rights issue, share split, and reverse share split (consolidation of shares) that have changed the number
of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the net profit or loss for the period attributable to equity
shareholders and the weighted average number of shares outstanding during the period are adjusted for the effects of all
dilutive potential equity shares.

y) Equity Investment in Subsidiaries and Controlled entities

Investment in Subsidiaries and Controlled entities are carried at cost in the Separate Financial Statements as permitted
under Ind AS 27.

2.4 New and amended Standards

Amendments to Ind AS 109, Ind AS 107, Ind AS 104 and Ind AS 116: Interest Rate Benchmark Reform - Phase 2

The amendments provide temporary reliefs which address the financial reporting effects when an interbank offered rate
(IBOR) is replaced with an alternative nearly risk-free interest rate (RFR) The amendments include the following practical
expedients:

- A practical expedient to require contractual changes, or changes to cash flows that are directly required by the
reform, to be treated as changes to a floating interest rate, equivalent to a movement in a market rate of interest

- Permit changes required by IBOR reform to be made to hedge designations and hedge documentation without
the hedging relationship being discontinued

- Provide temporary relief to entities from having to meet the separately identifiable requirement when an RFR
instrument is designated as a hedge of a risk component

These amendments had no impact on the standalone financial statements of the Company. The Company intends to use
the practical expedients in future periods if they become applicable.

Conceptual framework for financial reporting under Ind AS issued by ICAI

The Framework is not a Standard and it does not override any specific standard. Therefore, this does not form part of a
set of standards pronounced by the standard-setters. While the Framework is primarily meant for the standard setter for
formulating the standards, it has relevance to the preparers in certain situations such as to develop consistent accounting
policies for areas that are not covered by a standard or where there is choice of accounting policy, and to assist all parties
to understand and interpret the Standards.

The amendments made in following standards due to Conceptual Framework for Financial Reporting under Ind AS
includes amendment of the footnote to the definition of an equity instrument in Ind AS 102 - Share Based Payments,
footnote to be added for definition of liability i.e. definition of liability is not revised on account of revision of definition
in conceptual framework in case of Ind AS 37 - Provisions, Contingent Liabilities and Contingent Assets etc.

The MCA has notified the Amendments to Ind AS consequential to Conceptual Framework under Ind AS vide notification
dated June 18, 2021, applicable for annual periods beginning on or after April 1, 2021.

These amendments had no impact on the standalone financial statements of the Company.

Amendments to Ind AS 116: COVID-19-Related Rent Concessions

MCA issued an amendment to Ind AS 116 COVID19-Related Rent Concessions beyond 30 June 2021 to update the
condition for lessees to apply the relief to a reduction in lease payments originally due on or before 30 June 2022 from 30
June 2021. The amendment applies to annual reporting periods beginning on or after 1 April 2021.

Amendments to Ind AS 105, Ind AS 16 and Ind AS 28

The definition of “Recoverable amount” is amended such that the words “the higher of an asset’s fair value less costs to
sell and its value in use” are replaced with “higher of an asset’s fair value less costs of disposal and its value in use”. The
consequential amendments are made in Ind AS 105, Ind AS 16 and Ind AS 28.

These amendments had no impact on the standalone financial statements of the Company.

14 6 Aggregate number of bonus shares, shares issued on rights basis, shares issued for consideration other than cash and shares bought back during the
'' period of five years immediately preceding the reporting date

(a) On May 05, 2017, one equity share of face value Rs. 10/- each was split into five equity shares of Rs. 2/- each. Accordingly, 1,00,00,000 authorised equity
shares of Rs. 10/- each were sub-divided into 5,00,00,000 authorised equity shares of Rs.2/- each and 46,83,168 fully paid up shares of Rs.10/- each were sub¬
divided into 2,34,15,840 fully paid up shares of Rs.2/- each.

(b) On May 06, 2 017, the Company issued bonus shares to the existing shareholders, in the ratio of 1:5. The Securities premium account was utilised to the
extent of Rs. 93.66 for the issue of said bonus shares.

(c) On January 22, 2 02 2 (Record Date), the Company issued 9,366,336 equity shares of face value ofRs. 2 each on rights basis to the existing shareholders, in
the ratio of 1:3, for an amount aggregating to Rs. 936.63 Lakhs. The shares were issued at a premium of Rs. 8 per share and consequently the securities
premium account was credited by Rs. 749.31 during the year. The Securities premium account was utilised to the extent of Rs. 81.10 towards expenses
incurred for the issue of said shares on rights basis.

(d) On 8th May,2 02 3, the Company alloted 19,71,656 equity shares of face value of Rs.2/- each on preferential allotment to the existing shareholders, for an
amount aggregating to Rs.470.24lakhs. The shares were issued at a premium of Rs.21.85 per share and consequently the securities premium account was
credited by Rs.430.80 lakhs during the year 2023-24

(b) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with
applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the
Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act
2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously
transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(c) Retained earnings

The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and
also considering the requirements of the Companies Act, 2013.

(d) FVTOCI reserve

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are
accumulated within the Equity instruments through Other Comprehensive Income within equity. The Company transfers amounts from this reserve to retained
earnings when the relevant equity securities are derecognised.

Reconciling the amount of revenue recognised in the statement of profit and loss with the contract price

Due to Company''s nature of business and the type of contracts entered with the customers, the company does not have any difference between
the amount of revenue recognized in the statement of profit and loss and the contracted price.

Performance obligation

Information about the Company''s performance obligations are summarised below:

a) Insulation

The revenue from sale of finished goods is recognised at a point in time coinciding with the transfer of control over goods and in case of
contracts, revenue is recognised over a period of time based on progress of performance certified by the customer in line with the
requirements of Ind AS 115.

b) Trading

The revenue from sale of traded goods is recognised at a point in time coinciding with the transfer of control over goods as per Ind AS 115.

A. Defined contribution plans

The Company makes contributions to Provident Fund, Superannuation Fund and Employee State Insurance Scheme which
are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a
specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 112.91 Lakhs (March 31, 2024:
Rs.90.43 Lakhs) for Provident Fund contributions, Rs. 69.59 lakhs (March 31, 2024: Rs.66.89 Lakhs) for Superannuation
Fund contributions and Rs. 1.27 lakhs (March 31, 2024: Rs. 1.45 lakhs) for Employee State Insurance Scheme contributions
in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the
rules of the schemes.

B. Defined benefit plans

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a
gratuity on departure at 15 days salary (last drawn salary) for each completed year of service subject to a maximum of Rs.
20. The Company has invested the plan assets with the insurer managed funds (Life Insurance Corporation). The insurance
company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market
Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term
rate of return expected on investments of the fund during the estimated term of the obligation.

39 Segment Information
Primary Segment

Based on internal reporting provided to the chief operating decision maker, insulation and trading are two reportable
segments for the Company. Insulation Business includes manufacturing of EPS Products / prefabricated panels and related
service activities. Trading includes motors, export of fabrics, telemedicine equipment''s, Information Technology Products etc.
The above segments have been identified taking into account the organisation structure as well as differing risks and returns
of these segments. Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the
segments as also amounts allocated on a reasonable basis. All expenses which are not attributable or allocable to segments
have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are
disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

c. Petition filed with National Company Law Tribunal

The erstwhile Managing Director of the Company had filed petition with National Company Law Tribunal ("NCLT") under
sections 241 to 244 of the Companies Act, 2013 during financial year 2018-19. He has sought certain relief and action against
the directors. The Company has intimated to the stock exchange about the matter filed with the NCLT by the erstwhile
Managing Director. The matter is pending before NCLT and there have been no material updates to this matter. Based on the
review of the petition, the Board is of the view that these matters have no effect on financial statements of the Company.

43 Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires
management to make judgements, estimates and assumptions that affect the reported balances of revenues, expenses, assets
and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or
liabilities affected in future periods.

a) Judgements

In the process of applying the Company’s accounting policies, management has made the following judgements, which have
the most significant effect on the amounts recognised in the financial statements:

(i) Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an
option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the
lease, if it is reasonably certain not to be exercised

The Company has lease contracts that include extension and termination options. The Company applies judgement in
evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it
considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the
commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is
within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a
significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year, are described below. The Company based its assumptions and estimates on parameters available when the financial
statements were prepared. Existing circumstances and assumptions about future developments, however, may change due
to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the
assumptions when they occur.

(i) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the
higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on
available data from binding sales transactions, conducted at arm''s length, for similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived
from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to
or significant future investments that will enhance the asset''s performance of the CGU being tested. The recoverable amount
is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used
for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with indefinite useful lives

(ii) Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are
determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from
actual developments in the future. These include the determination of the discount rate, future salary increases, mortality
rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit
obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated
in India, the management considers the interest rates of government bonds where remaining maturity of such bond
correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend
to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based
on expected future inflation rates.

Further details about gratuity obligations are given in Note 38.

(iii) Allowance for slow/ non-moving inventory and obsolescence

An allowance for Inventory is recognised for cases where the realisable value is estimated to be lower than the
inventory carrying value. The inventory allowance is estimated taking into account various factors, including prevailing
sales prices of inventory item, gross margins and losses associated with obsolete / slow-moving / redundant inventory
items. The Company has, based on these assessments, made adequate provision in the books.

(iv) Allowance for expected credit loss of trade receivables (ECL Provision)

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and
control relating to customer credit risk management. The Company undertakes a detailed review of the credit
worthiness of clients before extending credit. Outstanding customer receivables are regularly monitored. Management
monitors the Company''s net liquidity position through rolling forecasts based on expected cash flows.

Trade receivables comprise a large number of customers. The Company has credit evaluation policy for each customer
and based on the evaluation, credit limit of each customer is defined. Net Trade receivables as on March 31, 2025 is
Rs.6,213.77 (March 31, 2024 - 5,089.40). The Company believes the concentration of risk with respect to trade
receivables is low, as its customers are located in several jurisdictions and industries and operate in largely independent
markets.

The Company uses the expected credit loss model as per Ind AS 109 - ''Financial Instruments'' to assess the impairment
loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables.
The provision matrix considers available external and internal credit risk factors and the Company''s historical
experience in respect of customers. The maximum exposure to credit risk at the reporting date is the carrying value of
each class of financial assets disclosed in Note 09

(v) Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental
borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to
borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the
right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ''would have to pay'',
which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms
and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates)
when available and is reauired to make certain entity-specific estimates.

(vi) Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be
available against which the losses can be utilised. Significant management judgement is required to determine the
amount of deferred tax assets that can be recognised, based upon the likely timing and \the level of future taxable
profits together with future tax planning strategies.

44 Financial risk management objectives and policies

The Company''s principal financial liabilities comprise of bank and other borrowings, deposits, lease liabilities, trade and
other payables and financial guarantee contracts. The main purpose of these financial liabilities is to finance and support
the entity''s operations. The entity''s principal financial assets include trade and other receivables and cash and cash
equivalents that derive directly from its operations.

The entity is exposed to market risk, credit risk and liquidity risk. The entity''s senior management oversees the
management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which
are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes
in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as
equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings,
deposits, FVTOCI investments and derivative financial instruments.

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in
foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the
Company''s operating activities (when revenue or expense is denominated in a foreign currency). The Company has not
hedged any portion of its expected foreign currency sales as at March 31, 2025 and March 31, 2024.

Foreign currency sensitivity

The following demonstrates the sensitivity to a reasonably possible change in the foreign currency exchange rates for Rs.,
with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of
monetary assets and liabilities including non-designated foreign currency derivatives and embedded derivatives. The
sensitivity analysis includes only outstanding unhedged foreign currency denominated monetary items and adjusts their
translation at the period end for a 5% change in foreign currency rates.

(iii) . Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is
exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including
deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The
Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on
management’s internal assessment. The maximum exposure to the credit risk is equal to the carrying amount of financial
assets as of March 31, 2025 and March 31, 2024 respectively.

(iv) . Liquidity Risk

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank
deposits and loans. The table below summarises the maturity profile of the Company''s financial liabilities based on
contractual undiscounted payments.

The management assessed that cash and cash equivalents, trade receivables, loans, current investments, other financial assets, short
term borrowings, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short¬
term maturities of these instruments.

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current
transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to
estimate the fair values:

i. The fair values of quoted equity investments are derived from quoted market prices in active markets.

ii. The fair values of certain unquoted equity investments have been estimated using Discounted Cash-flow Model (DCF). The valuation
is based on certain assumptions like forecast cash-flows, discount rate, etc.

iii. The fair value of borrowings is estimated by discounting expected future cash flows using a discount rate equivalent to the risk-free
rate of return, adjusted for the Credit spread considered by the lenders for instruments of the similar maturity.

iv. Derivatives are fair valued using market observable rates and published prices.

46 Fair Value Hierarchy

Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those
with carrying amounts that are reasonable approximations of fair values. The management assessed that the cash and cash equivalents,
trade receivables, trade payables, fixed deposits, bank overdrafts and other payables approximate their carrying amounts largely due to
the short-term maturities of these instruments.

Notes

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the
measurement date.

Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or
indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

There have been no transfers between the levels during the period.

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as
their fair values, due to their short-term nature.

They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty
credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate.

47 Capital Management

For the purpose of the Company''s capital management, capital includes issued equity capital and other equity reserves attributable to the
equity holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term
goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and long-term fleet
expansion plans. The funding requirements are met through internal accruals and other long-term/short-term borrowings. The Company''s
policy is aimed at combination of short-term and long-term borrowings. The Company monitors capital employed using a Debt equity ratio,
which is total debt divided by total equity and maturity profile of the overall debt portfolio of the Company.

49 Standards issued but not yet effective

Ministry of Corporate affairs has issued Companies (Indian Accounting Standards) Amendment rules, 2022 on March 23, 2022, which contains various
amendments to IndAS. Management has evaluated these and have concluded that there is no material impact on Company''s financial statement.

50 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami
property.

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the
understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate
Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether
recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate
Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vi) The Company has not made any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income
during the year in the tax assessments under the Income Tax Act,1961 (such as search or survey or any other relevant provision of the Income Tax Act,
1961).

(vii) The Company do not have any transactions with companies struck off.

51 Prior year comparatives

The figures of previous year have been regrouped/reclassified, where necessary, to conform to this year''s classification.
The accompanying notes are an integral part of the financial statements
As per our report of even date

For G Balu Associates LLP For and on behalf of the Board of Directors

Chartered Accountants Beardsell Limited

ICAI Firm registration number: 000376S/S200073

Rajagopalan B Amrith Anumolu A V Ram Mohan

Partner Executive Director Independent Director

Membership no.: 217187 DIN:03044661 DIN:02093767

Place: Chennai Place: Hyderabad Place: Chennai

V V Sridharan Kanhu Charan Sahu

Chief Financial Officer Company Secretary

Place: Chennai Place: Chennai

Date : 22-05-2025 Date : 22-05-2025 Date : 22-05-2025

---

Mar 31, 2024

(i) Charge on Assets:

The Rupee term loans from Bank of India are secured by equitable mortgage over the land and buildings there on at Karad (4.10 acres), Coimbatore (3.50 acres), Bonthapally (1.40 acres), Chennai -Thiruvallur (6.98 acres) and Thane (1.85 acres). The Company has deposited the original title deeds of all the above mentioned properties with the Bank. In addition to the above the Company has also hypothecated its Inventory and Trade receivables.

(ii) Hire Purchase Agreements:

The carrying value of vehicles held under hire purchase contracts at March 31, 2024 was Rs. 244.39 (March 31, 2023: Rs.134.82). Additions during the year include Rs. 168.04 (March 31, 2023: Rs. 83.26) of vehicles under hire purchase contracts. Assets under hire purchase contracts are hypothecated as security for the related hire purchase liabilities.

Investments at fair value through OCI (fully paid) reflect investment in quoted and unquoted equity securities . These equity shares are designated as FVTOCI as they are not held for trading purpose and are not in similar line of business as the Company. Thus, disclosing their fair value fluctuation in profit or loss will not reflect the purpose of holding. Refer Note 47 for determination of their fair values.

15.3 Terms/ rights attached to shares

The Company has issued only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

Aggregate number of bonus shares, shares issued on rights basis, shares issued for consideration other than cash and shares bought back during the '' period of five years immediately preceding the reporting date

(a) On May 05, 2017, one equity share of face value Rs. 10/- each was split into five equity shares of Rs. 2/- each. Accordingly, 1,00,00,000 authorised equity shares of Rs. 10/- each were sub-divided into 5,00,00,000 authorised equity shares of Rs.2/- each and 46,83,168 fully paid up shares of Rs.10/- each were subdivided into 2,34,15,840 fully paid up shares of Rs.2/- each.

(b) On May 06, 2017, the Company issued bonus shares to the existing shareholders, in the ratio of 1:5. The Securities premium account was utilised to the extent of Rs. 93.66 for the issue of said bonus shares.

(c) On January 22, 2022 (Record Date), the Company issued 9,366,336 equity shares of face value of Rs. 2/- each on rights basis to the existing shareholders, in the ratio of 1:3, for an amount aggregating to Rs. 936.63 Lakhs. The shares were issued at a premium of Rs. 8/- per share and consequently the securities premium account was credited by Rs. 749.31 during the year. The Securities premium account was utilised to the extent of Rs. 81.10 towards expenses incurred for the issue of said shares on rights basis.

(d) On May, 2023, the Company allotted 19,71,656 equity shares of face value of Rs. 2/- each on preferential allotment to the existing shareholders, for an amount aggregating to Rs. 470.24 Lakhs. The shares were issued at a premium of Rs. 21.85/- per share and consequently the securities premium account was credited by Rs. 430.80 Lakhs during the year.

Proposed dividend on equity shares are subject to approval at the annual general meeting and are not recognised as a liability (including dividend distribution tax thereon) as on March 31.

With effect from 1 April 2020, the Dividend Distribution Tax (‘DDT’) payable by the company under section 115O of Income Tax Act was abolished and a withholding tax was introduced on the payment of dividend. As a result, dividend is now taxable in the hands of the recipient.

Nature and purpose of reserves

(a) Securities premium account

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

(b) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(c) Retained earnings

The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013.

(d) FVTOCI reserve

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the Equity instruments through Other Comprehensive Income within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(i) The Indian rupee term loan from banks include:

(a) . Guaranteed Emergency Credit Loan (GECL) (Rs. 310 Lakhs) from Bank of India repayable over a period of 3 years at an average interest rate of 9.25%

(b) . Guaranteed Emergency Credit Loan - Extension (GECL - Extension) (Rs. 150 Lakhs) from Bank of India repayable over a period of 3 years at an average interest rate of 9.25%

(c) . Term loan (Rs. 165 Lakhs) from Bank of India repayable over a period of 7 years excluding morotorium period of six months from September 2023 at an average interest rate of 11.85%

(d) . Term loan (Rs. 225 Lakhs) from Bank of India repayable over a period of 7 years excluding morotorium period of six months from September 2023 at an average interest rate of 11.85%

(e) . Term loan (Rs. 75 Lakhs) from Bank of India repayable over a period of 7 years excluding morotorium period of six months from September 2023 at an average interest rate of 11.85%

(f) . Term loan (Rs. 60 Lakhs) from Bank of India repayable over a period of 5 years excluding morotorium period of three months from June 2023 at an average interest rate of 11.85%

(ii) Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan and taken at an interest rate of 9.35%.

(iii) Deposits from members are accepted at an interest rate of 9.75% to 10.59% (PY - 9.75% to 10.59%) repayable over a period of 1 year to 3 years.

(iv) Loans and advances from related parties are at an interest rate of 12.00%

(v) The Company has not defaulted on any loans payable during the year.

There are no “unbilled” trade payables, hence the same are not disclosed in the ageing schedule.

Based on the information available with the Company, dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2024 amounts to Rs.351.36 (March 31, 2023: Nil). Further, the Company has not paid any interest to any Micro and Small Enterprises during the current and previous year.

Terms and conditions of the above financial liabilities:

Trade payables are non interest bearing and carry a credit period generally between 30 and 60 days For explanations on the Company’s credit risk management processes, refer to Note 45(iii).

Trade receivables are non-interest bearing and are generally on terms of 30 to 90 days.

Contract assets represents unbilled revenues.

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier).

Reconciling the amount of revenue recognised in the statement of profit and loss with the contract price

Due to Company’s nature of business and the type of contracts entered with the customers, the company does not have any difference between the amount of revenue recognized in the statement of profit and loss and the contracted price.

Performance obligation

Information about the Company’s performance obligations are summarised below:

a) Insulation

The revenue from sale of finished goods is recognised at a point in time coinciding with the transfer of control over goods and in case of contracts, revenue is recognised over a period of time based on progress of performance certified by the customer in line with

b) Trading

The revenue from sale of traded goods is recognised at a point in time coinciding with the transfer of control over goods as per Ind AS 115.

The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post-employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. However, the date on which the Code will come into effect has not been notified and the final rules/interpretation have not yet been issued. The Company will assess the impact of the Code when it comes into effect and will record any related impact in the period the Code becomes effective.

37 Earnings Per Share(EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Reconciliation of tax expense and the accounting profit multiplied by Corporate Income tax rate applicable for March 31, 2024 and March 31, 2023:

The Company exercised the option permitted under section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (Amendment) Ordinance 2019, in the earlier years. Accordingly, the Company has recognized Provision for Income Tax for the year and re-measured its Deferred tax asset (or/and deferred tax liability) basis the rate prescribed in the said section. The tax on the Company’s profit before tax differs from the theoretical amount that would arise on using the standard rate of corporation tax in India (25.168%) as follows:

A. Defined contribution plans

The Company makes contributions to Provident Fund, Superannuation Fund and Employee State Insurance Scheme which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 90.43 (March 31, 2023: Rs.82.97) for Provident Fund contributions, Rs. 66.89 (March 31, 2023: Rs.66.16) for Superannuation Fund contributions and Rs. 1.45 (March 31, 2023: Rs. 1.67) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service subject to a maximum of Rs. 20. The Company has invested the plan assets with the insurer managed funds (Life Insurance Corporation). The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

40 Segment Information Primary Segment

Based on internal reporting provided to the chief operating decision maker, insulation and trading are two reportable segments for the Company. Insulation Business includes manufacturing of EPS Products / prefabricated panels and related service activities. Trading includes motors, export of fabrics, telemedicine equipment''s, Information Technology Products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. All expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2024 and March 31, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (Refer Note 9).

42 Leases

Company as a lessee

The Company has lease contracts for rent of building and plant & machinery used in its operations. Leases of building used for office purpose have lease terms between 1 and 6 years, and plant & machinery generally have lease terms for 5 years. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets.

The Company also has certain leases of buildings and vehicles with lease terms of 12 months or less and leases with low value. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

The Company had total cash outflows for leases of Rs. 213.88 lakhs in March 31, 2024 (Rs. 183.32 in March 31, 2023).

Company as Lessor

The Company has entered into operating leases for the sub-lease of buildings and plant & machinery having lease term of less than 1 year. Rental income recognised by the Company during the year is Rs. 52.42 (Previous Year - Rs. 39.21).

43 Commitments and contingent liabilities

a. Commitments

The estimated amount of contracts, net of advances remaining to be executed on capital account and not provided is Rs. Nil (March 31, 2023 : Rs. Nil). _1Q7

b. Contingent liabilities Note i.

a) Matters wherein management has concluded the Company’s liability to be probable have accordingly been provided for in the books. Also refer Note 26.

b) Matters wherein management has concluded the Company’s liability to be possible have accordingly been disclosed under Note 43b(ii) Contingent liabilities below.

c) Matters wherein management is confident of succeeding in these litigations and have concluded the Company’s liability to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process.

Based on its evaluation (including expert advice obtained wherever applicable), the Company believes there it has a strong case on merits and is confident that the demand will not be sustained therefore, no consequential adjustments (including related provision) are considered necessary in the financial statements in this regard.

c. Petition filed with National Company Law Tribunal

The erstwhile Managing Director of the Company had filed petition with National Company Law Tribunal (''''NCLT'''') under sections 241 to 244 of the Companies Act, 2013 during financial year 2018-19. He has sought certain relief and action against the directors. The Company has intimated to the stock exchange about the matter filed with the NCLT by the erstwhile Managing Director. The matter is pending before NCLT and there have been no material updates to this matter. Based on the review of the petition, the Board is of the view that these matters have no effect on financial statements of the Company.

44 Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgements, estimates and assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a) Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

(i) Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised

The Company has lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(i) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model. The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with indefinite useful lives recognised by the Company

(ii) Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 39.

(iii) Allowance for slow/ non-moving inventory and obsolescence

An allowance for Inventory is recognised for cases where the realisable value is estimated to be lower than the inventory carrying value. The inventory allowance is estimated taking into account various factors, including prevailing sales prices of inventory item, gross margins and losses associated with obsolete / slow-moving / redundant inventory items. The Company has, based on these assessments, made adequate provision in the books.

(iv) Allowance for expected credit loss of trade receivables (ECL Provision)

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. The Company undertakes a detailed review of the credit worthiness of clients before extending credit. Outstanding customer receivables are regularly monitored. Management monitors the Company’s net liquidity position through rolling forecasts based on expected cash flows.

Trade receivables comprise a large number of customers. The Company has credit evaluation policy for each customer and based on the evaluation, credit limit of each customer is defined. Net Trade receivables as on March 31, 2024 is Rs.5,089.40 (March 31, 2023 - 4,992.63). The Company believes the concentration of risk with respect to trade receivables is low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The Company uses the expected credit loss model as per Ind AS 109 - ‘Financial Instruments’ to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix considers available external and internal credit risk factors and the Company’s historical experience in respect of customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 09

(v) Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

(vi) T axes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and \the level of future taxable profits together with future tax planning strategies.

45 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise of bank and other borrowings, deposits, lease liabilities, trade and other payables and financial guarantee contracts. The main purpose of these financial liabilities is to finance and support the entity’s operations. The entity’s principal financial assets include trade and other receivables and cash and cash equivalents that derive directly from its operations.

The entity is exposed to market risk, credit risk and liquidity risk. The entity’s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The entity’s exposure to the risk of changes in market interest rates relates primarily to the entity’s long-term debt obligations with floating interest rates. The entity manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the entity’s profit before tax is affected through the impact on floating rate borrowings, as follows

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency). The Company has not hedged any portion of its expected foreign currency sales as at March 31, 2024 and March 31, 2023.

Foreign currency sensitivity

The following demonstrates the sensitivity to a reasonably possible change in the foreign currency exchange rates for Rs., with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities including non-designated foreign currency derivatives and embedded derivatives. The sensitivity analysis includes only outstanding unhedged foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates.

(iii) . Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on management''s internal assessment. The maximum exposure to the credit risk is equal to the carrying amount of financial assets as of March 31, 2024 and March 31, 2023 respectively.

(iv). Liquidity Risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

The management assessed that cash and cash equivalents, trade receivables, loans, current investments, other financial assets, short term borrowings, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

i. The fair values of quoted equity investments are derived from quoted market prices in active markets.

ii. The fair values of certain unquoted equity investments have been estimated using Discounted Cash-flow Model (DCF). The valuation is based on certain assumptions like forecast cash-flows, discount rate, etc.

iii. The fair value of borrowings is estimated by discounting expected future cash flows using a discount rate equivalent to the risk-free rate of return, adjusted for the Credit spread considered by the lenders for instruments of the similar maturity.

iv. Derivatives are fair valued using market observable rates and published prices.

47 Fair Value Hierarchy

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values. The management assessed that the cash and cash equivalents, trade receivables, trade payables, fixed deposits, bank overdrafts and other payables approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

There have been no transfers between the levels during the period.

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.

They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate.

They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

48 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and long-term fleet expansion plans. The funding requirements are met through internal accruals and other long-term/short-term borrowings. The Company’s policy is aimed at combination of short-term and long-term borrowings. The Company monitors capital employed using a Debt equity ratio, which is total debt divided by total equity and maturity profile of the overall debt portfolio of the Company.

In order to achieve this overall objective, the entity’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current and previous periods. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2024 and March 31, 2024.

50 Standards issued but not yet effective

Ministry of Corporate affairs has issued Companies (Indian Accounting Standards) Amendment rules, 2022 on March 23, 2022, which contains various amendments to IndAS. Management has evaluated these and have concluded that there is no material impact on Company’s financial statement.

51 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vi) The Company has not made any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961).

(vii) The Company do not have any transactions with companies struck off.

52 Prior year comparatives

The figures of previous year have been regrouped/reclassified, where necessary, to conform to this year’s classification.

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Mar 31, 2023

*On transition to Ind AS (i.e. 1 April 2016), the Company had elected to continue with the carrying value of all Property, plant and equipment measured as per the previous GAAP and use that carrying value as the deemed cost of Property, plant and equipment.

(i) Charge on Assets:

The Rupee term loans from Bank of India are secured by equitable mortgage over the land and buildings there on at Karad (4.10 acres), Coimbatore (3.50 acres), Bonthapally (1.40 acres), Chennai -Thiruvallur (6.98 acres) and Thane (1.85 acres). The Company has deposited the original title deeds of all the above mentioned properties with the Bank. In addition to the above the Company has also hypothecated its Inventory and Trade receivables.

(ii) Hire Purchase Agreements:

The carrying value of vehicles held under hire purchase contracts at March 31, 2023 was Rs. 134.82 (March 31, 2022: Rs. 71.29). Additions during the year include Rs. 83.26 (March 31, 2022: Rs. 16.51) of vehicles under hire purchase contracts. Assets under hire purchase contracts are hypothecated as security for the related hire purchase liabilities.

*On transition to Ind AS (i.e. 1 April 2016), the Company had elected to continue with the carrying value of all Intangible assets measured as per the previous GAAP and use that carrying value as the deemed cost of Intangible assets.

Investments at fair value through OCI (fully paid) reflect investment in quoted and unquoted equity securities . These equity shares are designated as FVTOCI as they are not held for trading purpose and are not in similar line of business as the Company. Thus, disclosing their fair value fluctuation in profit or loss will not reflect the purpose of holding. Refer Note 52 for determination of their fair values.

Loans to employees are non-derivative financial assets which generate interest income for the Company. Vehicle loans to employees are secured by hypothecation of vehicles acquired out of the loan.

No trade receivables are due from directors or other officers of the Company either severally or jointly with any other person.

No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or other receivable are due from firms or private companies respectively in which any director is a partner, a director or a member.

For terms and conditions relating to related party receivables, refer note 45

Trade Receivables are non-interest bearing and generally have credit period ranging from 30 - 90 days.

17.3 Terms/ rights attached to shares

The Company has issued only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

17 6 Aggregate number of bonus shares, shares issued on rights basis, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date

(a) On May 05, 2017, one equity share of face value Rs. 10/- each was split into five equity shares of Rs. 2/- each. Accordingly, 1,00,00,000 authorised equity shares of Rs. 10/- each were sub-divided into 5,00,00,000 authorised equity shares of Rs.2/- each and 46,83,168 fully paid up shares of Rs.10/- each were sub-divided into 2,34,15,840 fully paid up shares of Rs.2/- each.

(b) On May 06, 2017, the Company issued bonus shares to the existing shareholders, in the ratio of 1:5. The Securities premium account was utilised to the extent of Rs. 93.66 for the issue of said bonus shares.

(c) On January 22, 2022 (Record Date), the Company issued 9,366,336 equity shares of face value of Rs. 2 each on rights basis to the existing shareholders, in the ratio of 1:3, for an amount aggregating to Rs. 936.63 Lakhs. The shares were issued at a premium of Rs. 8 per share and consequently the securities premium account was credited by Rs. 749.31 during the year. The Securities premium account was utilised to the extent of Rs. 81.10 towards expenses incurred for the issue of said shares on rights basis.

Nature and purpose of reserves

(a) Securities premium account

Securities premium is used to record the premium on issue of shares. The reserve can be utilised only for limited purposes such as issuance of bonus shares in accordance with the provisions of the Companies Act, 2013.

(b) General reserve

Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with the specific requirements of Companies Act, 2013.

(c) Retained earnings

The amount that can be distributed by the Company as dividends to its equity shareholders is determined based on the financial statements of the Company and also considering the requirements of the Companies Act, 2013.

(d) FVTOCI reserve

The Company has elected to recognise changes in the fair value of certain investments in equity securities in other comprehensive income. These changes are accumulated within the Equity instruments through Other Comprehensive Income within equity. The Company transfers amounts from this reserve to retained earnings when the relevant equity securities are derecognised.

(i) The Indian rupee term loan from banks include:

(a) . Term loans from Bank of India (Rs. 975) secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the title deeds of all its properties. The term loan is repayable over a period of 7 years and the average floating interest rate is 12.10% to 13.10% (previous year - 12.10% to 13.10%)

(b) . Covid Emergency Support Scheme (CESS) term loan (Rs. 160) from Bank of India repayable over a period of 18 months at an average interest rate of 7.35% (PY 7.95%)

(c) . Guaranteed Emergency Credit Loan (GECL) (Rs. 310) from Bank of India repayable over a period of 3 years at an average interest rate of 7.50%

(d) . Guaranteed Emergency Credit Loan - Extension (GECL - Extension) (Rs. 150) from Bank of India repayable over a period of 3 years at an average interest rate of 7.50%

(ii) Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan and taken at an interest rate of 9.50% to 10.50%.

(iii) Deposits from members are accepted at an interest rate of 9.75% to 10.59% (PY - 9.75% to 10.75%) repayable over a period of 1 year to 3 years.

(iv) Inter corporate deposits are accepted at an interest rate of 11.00%

(v) Loans and advances from related parties are at an interest rate of 12.00%

(vi) The Company has not defaulted on any loans payable during the year.

There are no “unbilled” trade payables, hence the same are not disclosed in the ageing schedule.

Based on the information available with the Company, there are no dues to enterprises as defined under Micro, Small and Medium Enterprises Development Act, 2006, as at March 31, 2023 (March 31, 2022: Nil). Further, the Company has not paid any interest to any Micro and Small Enterprises during the current and previous year.

Terms and conditions of the above financial liabilities:

Trade payables are non interest bearing and carry a credit period generally between 30 and 60 days For explanations on the Company’s credit risk management processes, refer to Note 49.

Contract assets represents unbilled revenues.

A contract liability is the obligation to transfer goods or services to a customer for which the Company has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration before the Company transfers goods or services to the customer, a contract liability is recognised when the payment is made or the payment is due (whichever is earlier).

Reconciling the amount of revenue recognised in the statement of profit and loss with the contract price

Due to Company’s nature of business and the type of contracts entered with the customers, the company does not have any difference between the amount of revenue recognized in the statement of profit and loss and the contracted price.

Performance obligation

Information about the Company’s performance obligations are summarised below:

a) Insulation

The revenue from sale of finished goods is recognised at a point in time coinciding with the transfer of control over goods and in case of contracts, revenue is recognised over a period of time based on progress of performance certified by the customer in line with the requirements of Ind AS 115.

b) T rading

The revenue from sale of traded goods is recognised at a point in time coinciding with the transfer of control over goods as per Ind AS 115.

41 Earnings Per Share(EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

Reconciliation of tax expense and the accounting profit multiplied by Corporate Income tax rate applicable for March 31,2023 and March 31,2022:

The Company exercised the option permitted under section 115BAA of the Income-tax Act, 1961 as introduced by the Taxation Laws (.Amendment) Ordinance 2019, in the earlier years. Accordingly, the Company has recognized Provision for Income Tax for the year and re-measured its Deferred tax asset (or/and deferred tax liability) basis the rate prescribed in the said section. The tax on the Company’s profit before tax differs from the theoretical amount that would arise on using the standard rate of corporation tax in India (25.168%) as follows:

43 Employee benefits

A. Defined contribution plans

The Company makes contributions to Provident Fund, Superannuation Fund and Employee State Insurance Scheme which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs. 82.97 (March 31, 2022: Rs.75.19) for Provident Fund contributions, Rs. 66.16 (March 31, 2022: Rs.58.04) for Superannuation Fund contributions and Rs. 1.67 (March 31, 2022: Rs. 2.24) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of sendee subject to a maximum of Rs. 20. The Company has invested the plan assets with the insurer managed funds (Life Insurance Corporation). The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

44 Segment Information Primary Segment

Based on internal reporting provided to the chief operating decision maker, insulation and trading are two reportable segments for the Company. Insulation Business includes manufacturing of EPS Products / prefabricated panels and related service activities. Trading includes motors, export of fabrics, telemedicine equipment''s, Information Technology Products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. All expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

46 Leases

Company as a lessee

The Company has lease contracts for rent of building and plant & machinery used in its operations. Leases of building used for office purpose have lease terms between 1 and 6 years, and plant & machinery generally have lease terms for 5 years. The Company’s obligations under its leases are secured by the lessor’s title to the leased assets. Generally, the Company is restricted from assigning and sub-leasing the leased assets.

The Company also has certain leases of buildings and vehicles with lease terms of 12 months or less and leases with low value. The Company applies the ‘short-term lease’ and ‘lease of low-value assets’ recognition exemptions for these leases.

The Company had total cash outflows for leases of Rs. 183.32 in March 31, 2023 (Rs. 180.34 in March 31, 2022).

Company as Lessor

The Company has entered into operating leases for the sub-lease of buildings and plant & machinery having lease term of less than 1 year. Rental income recognised by the Company during the year is Rs. 39.21 lakhs (Previous Year - Rs. 38.01 lakhs).

47 Commitments and contingent liabilities

a. Commitments

The estimated amount of contracts, net of advances remaining to be executed on capital account and not provided is Rs. Nil (March 31, 2022 : Rs. Nil).

b. Contingent liabilities

Note i.

a) Matters wherein management has concluded the Company’s liability to be probable have accordingly been provided for in the books.

Also refer Note 29.

b) Matters wherein management has concluded the Company’s liability to be possible have accordingly been disclosed under Note 49b(ii) Contingent liabilities below.

c) Matters wherein management is confident of succeeding in these litigations and have concluded the Company’s liability to be remote. This is based on the relevant facts of judicial precedents and as advised by legal counsel which involves various legal proceedings and claims, in different stages of process.

Based on its evaluation (including expert advice obtained wherever applicable), the Company believes there it has a strong case on merits and is confident that the demand will not be sustained therefore, no consequential adjustments (including related provision) are considered necessary in the financial statements in this regard.

c. Petition filed with National Company Law'' Tribunal

The erstwhile Managing Director of the Company had filed petition with National Company Law Tribunal ("NCLT") under sections 241 to 244 of the Companies Act, 2013 during financial year 2018-19. He has sought certain relief and action against the directors. The Company has intimated to the stock exchange about the matter filed with the NCLT by the erstwhile Managing Director. The matter is pending before NCLT and there have been no material updates to this matter. Based on the review of the petition, the Board is of the view that these matters have no effect on financial statements of the Company.

48 Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgements, estimates and assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a) Judgements

In the process of applying the Company''s accounting policies, management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

(i) Determining the lease term of contracts with renewal and termination options — Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably certain not to be exercised

The Company has lease contracts that include extension and termination options. The Company applies judgement in evaluating whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability to exercise or not to exercise the option to renew or to terminate.

b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

(i) Impairment of non-financial assets

Impairment exists when the carrying value of an asset or cash generating unit exceeds its recoverable amount, which is the higher of its fair value less costs of disposal and its value in use. The fair value less costs of disposal calculation is based on available data from binding sales transactions, conducted at arm’s length, for similar assets or observable market prices less incremental costs for disposing of the asset. The value in use calculation is based on a DCF model.

The cash flows are derived from the budget for the next five years and do not include restructuring activities that the Company is not yet committed to or significant future investments that will enhance the asset’s performance of the CGU being tested. The recoverable amount is sensitive to the discount rate used for the DCF model as well as the expected future cash-inflows and the growth rate used for extrapolation purposes. These estimates are most relevant to goodwill and other intangibles with indefinite useful lives recognised by the Company

(ii) Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans operated in India, the management considers the interest rates of government bonds where remaining maturity of such bond correspond to expected term of defined benefit obligation.

The mortality rate is based on publicly available mortality tables for the specific countries. Those mortality tables tend to change only at interval in response to demographic changes. Future salary increases and gratuity increases are based on expected future inflation rates.

Further details about gratuity obligations are given in Note 45.

(iii) Allowance for slow/ non-moving inventory and obsolescence

An allowance for Inventory is recognised for cases where the realisable value is estimated to be lower than the inventory carrying value. The inventory allowance is estimated taking into account various factors, including prevailing sales prices of inventory item, gross margins and losses associated with obsolete / slow-moving / redundant inventory items. The Company has, based on these assessments, made adequate provision in the books.

(iv) Allowance for expected credit loss of trade receivables (ECL Provision)

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. The Company undertakes a detailed review of the credit worthiness of clients before extending credit. Outstanding customer receivables are regularly monitored. Management monitors the Company’s net liquidity position through rolling forecasts based on expected cash flows.

Trade receivables comprise a large number of customers. The Company has credit evaluation policy for each customer and based on the evaluation, credit limit of each customer is defined. Net Trade receivables as on March 31, 2023 is Rs.4,992.63 (March 31, 2022 - 4,034.32). The Company believes the concentration of risk with respect to trade receivables is low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(All amounts are in lakhs of Indian Rupees, unless otherwise stated)

The Company uses the expected credit loss model as per Ind AS 109 - ‘Financial Instruments’ to assess the impairment loss or gain. The Company uses a provision matrix to compute the expected credit loss allowance for trade receivables. The provision matrix considers available external and internal credit risk factors and the Company’s historical experience in respect of customers. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in Note 12

(v) Leases - estimating the incremental borrowing rate

The Company cannot readily determine the interest rate implicit in the lease, therefore, it uses its incremental borrowing rate (IBR) to measure lease liabilities. The IBR is the rate of interest that the Company would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an

asset of a similar value to the right-of-use asset in a similar economic environment. The IBR therefore reflects what the Company ‘would have to pay’, which requires estimation when no observable rates are available or when they need to be adjusted to reflect the terms and conditions of the lease. The Company estimates the IBR using observable inputs (such as market interest rates) when available and is required to make certain entity-specific estimates.

(vi) Taxes

Deferred tax assets are recognised for unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and \the level of future taxable profits together with future tax planning strategies.

49 Financial risk management objectives and policies

The Company’s principal financial liabilities comprise of bank and other borrowings, deposits, lease liabilities, trade and other payables and financial guarantee contracts. The main purpose of these financial liabilities is to finance and support the entity’s operations. The entity’s principal financial assets include trade and other receivables and cash and cash equivalents that derive directly from its operations.

The entity is exposed to market risk, credit risk and liquidity risk. The entity’s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments and derivative financial instruments.

(i) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The entity’s exposure to the risk of changes in market interest rates relates primarily to the entity’s long-term debt obligations with floating interest rates. The entity manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the entity’s profit before tax is affected through the impact on floating rate borrowings, as follows

Particulars	March 31.2023		March 31.2022
Increase / decrease in interest rate	1%	-1%	1%	-1%
Impact on profit before tax	(26.21)	26.21	(13.72)	13.72

(ii) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency). The Company has not hedged any portion of its expected foreign currency sales as at March 31, 2023 and March 31, 2022.

(All amounts are in lakhs of Indian Rupees, unless otherwise stated)

(iii) . Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. The Company only deals with parties which has good credit rating/ worthiness given by external rating agencies or based on management''s internal assessment. The maximum exposure to the credit risk is equal to the carrying amount of financial assets as of March 31, 2023 and March 31, 2022 respectively.

(iv) . Liquidity Risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans. The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments.

The management assessed that cash and cash equivalents, trade receivables, loans, current investments, other financial assets, short term borrowings, trade payables and other current financial liabilities approximate their carrying amounts largely due to the short-term maturities of these instruments.

The fair value of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

i. The fair values of quoted equity investments are derived from quoted market prices in active markets.

ii. The fair values of certain unquoted equity investments have been estimated using Discounted Cash-flow Model (DCF). The valuation is based on certain assumptions like forecast cash-flows, discount rate, etc.

iii. The fair value of borrowings is estimated by discounting expected future cash flows using a discount rate equivalent to the risk-free rate of return, adjusted for the Credit spread considered by the lenders for instruments of the similar maturity.

iv. Derivatives are fair valued using market observable rates and published prices.

51 Fair Value Hierarchy

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values. The management assessed that the cash and cash equivalents, trade receivables, trade payables, fixed deposits, bank overdrafts and other payables approximate their carrying amounts largely due to the short-term maturities of these instruments.

The following table provides the fair value measurement hierarchy of the Company’s assets and liabilities.

Notes

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

There have been no transfers between the levels during the period.

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature.

They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate.

They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

52 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital and other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company’s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and long-term fleet expansion plans. The funding requirements are met through internal accruals and other long-term/short-term borrowings. The Company’s policy is aimed at combination of short-term and long-term borrowings. The Company monitors capital employed using a Debt equity ratio, which is total debt divided by total equity and maturity profile of the overall debt portfolio of the Company.

In order to achieve this overall objective, the entity’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current and previous periods. No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2023 and March 31, 2022.

54 Standards issued but not yet effective

Ministry of Corporate affairs has issued Companies (Indian Accounting Standards) Amendment rules, 2022 on March 23, 2022, which contains various amendments to IndAS. Management has evaluated these and have concluded that there is no material impact on Company’s financial statement.

55 Other Statutory Information

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

(ii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iii) The Company has not traded or invested in Crypto Currency or Virtual Currency during the financial year.

(iv) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(v) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

(vi) The Company has not made any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act,1961 (such as search or survey or any other relevant provision of the Income Tax Act, 1961).

(vii) The Company do not have any transactions with companies struck off.

56 Prior year comparatives

The figures of previous year have been regrouped/reclassified, where necessary, to conform to this year’s classification.

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Mar 31, 2018

1. Corporate information

Beardsell Limited ("the Company") is a prominent manufacturer and supplier of Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings that have wide industrial applications. The company also undertakes erection, commissioning and maintenance works in the field of hot and cold insulation solutions. The company has major manufacturing facilities in Thane, Chennai, Hyderabad and Karad and branches with geographical spread across India. In addition, the company has trading operations in domestic and international market.

These financial statements were authorised for issue in accordance with a resolution of the directors on May 28, 2018.

(a) Charge on assets

The Rupee term loans from Bank of India are secured by equitable mortgage over the land and buildings there on at Karad (4.10 acres), Coimbatore (3.50 acres), Bonthapally (1.40 acres), Chennai -Thiruvallur (6.98 acres), Bihar (3.93 acres), Dahej (2.50 acres) and Thane (1.85 acres). The Company has deposited the original title deeds of all the above mentioned properties with the Bank. In addition to the above the Company has also hypothecated its stocks and book debts.

(b) Hire purchase arrangements

The carrying value of vehicles held under hire purchase contracts at March 31, 2018 was Rs. 189.81 lakhs (March 31, 2017: Rs. 261.47 lakhs and April 01, 2016: Rs. 154.24 lakhs). Additions during the year include Rs.23.95 lakhs (March 31, 2017: Rs. 147.18 lakhs) of vehicles under hire purchase contracts. Assets under hire purchase contracts are pledged as security for the related hire purchase liabilities.

2. Terms / rights attached to shares

The Company has issued only one class of equity shares having a par value of Rs.2/- per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the company, after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

As per records of the company, including its register of shareholders / members and other declarations received from shareholders regarding beneficial interest, the above shareholding represents both legal and beneficial ownership of shares.

3. Aggregate number of bonus shares, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceeding the reporting date

(a) On May 05, 2017, one equity share of face value Rs. 10/- each was split into five equity shares of Rs. 2/- each. Accordingly, 10,000,000 authorised equity shares of Rs. 10/- each were sub-divided into 5,00,00,000 authorised equity shares of Rs.2/- each and 4,683,168 fully paid up shares of Rs.10/- each were sub-divided into 23,415,840 fully paid up shares of Rs.2/- each.

(b) On May 06, 2017, the Company issued bonus shares to the existing shareholders, in the ratio of 1:5. The Securities premium account was utilised to the extent of Rs. 93.66 lakhs for the issue of said bonus shares.

(i) The Rupee term loans from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the title deeds of all its properties. These term loans are repayable over a period of 7 years and the average floating interest rate is 10.50% (previous year - 11.00%)

(ii) Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan and taken at an interest rate of 9.50% to 10.50%.

(iii) Public deposits are accepted at an interest rate of 9.75% to 10.59%

(iv) Inter corporate deposits are accepted at an interest rate of 11.00% to 13.00%

(v) Loans and advances from related parties are at an interest rate of 12.00%

# Sale of finished goods includes excise duty collected from customers of Rs 286.42 lakhs (March 31, 2017: Rs.1,145.73 lakhs). Sale of goods net of excise duty is Rs 12,336.28 lakhs (March 31, 2017: Rs. 14,068.34 lakhs). Revenue from operations for periods up to June 30, 2017 includes excise duty. From July 01, 2017 onwards the excise duty and most indirect taxes in India have been replaced withGoods and Service Tax (GST). The Company collects GST on behalf of the Government. Hence, GST is not included in Revenue from operations. In view of the aforesaid change in indirect taxes, Revenue from operations year ended March 31, 2018 is not comparable March 31, 2017.

4. Exceptional items

On November 29, 2017, the Company has transferred leasehold rights on land situated at Plot No. N-32 located at Additional Patalganga Industrial Area, Taluka - Panvel, Maharashtra along with the sale of factory building constructed by the Company on the leasehold land for an aggregate consideration of Rs. 800 lakhs to V-ensure Pharma Technologies Private Limited. Rs.244.75 lakhs being gain on disposal during this year ended March 31, 2018 is shown as an exceptional item.

5. Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders of the Company by the weighted average number of equity shares outstanding during the year plus the weighted average number of equity shares that would be issued on conversion of all the dilutive potential equity shares into equity shares.

EPS has been restated for the comparative period giving effect to the revised number of shares post stock split of one share having a face value of Rs.10/- into five shares of Rs.2/- each and bonus issue of one share for every five shares as metioned in note 17.5 (a) and (b).

6. Employee benefits

A. Defined contribution plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.86.44 Lakhs (March 31, 2017: Rs.73.56 Lakhs) for Provident Fund contributions, Rs.73.56 Lakhs (March 31, 2017: Rs.59.91 Lakhs) for Superannuation Fund contributions and Rs.6.30 Lakhs (March 31, 2017: Rs.4.39 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

B. Defined benefit plans

Gratuity

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service gets a gratuity on departure at 15 days salary (last drawn salary) for each completed year of service subject to a maximum of Rs. 20 Lakhs. The Company has invested the plan assets with the insurer managed funds (Life Insurance Corporation). The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation.

7. Segment information Primary segment

Based on internal reporting provided to the chief operating decision maker, insulation and trading are two reportable segments for the Company. Insulation Business includes manufacturing of EPS Products/ prefabricated panels and related service activities. Trading includes motors, export of fabrics, telemedicine equipments, Information Technology Products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Segment revenue, results, assets and liabilities include the respective amounts identifiable to each of the segments as also amounts allocated on a reasonable basis. All expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable.

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. There have been no guarantees provided or received for any related party receivables or payables. For the year ended March 31, 2018, the Company has not recorded any impairment of receivables relating to amounts owed by related parties.

8. Commitments and contingencies

a. Leases

Operating lease commitments - Company as lessee

The Company has entered into operating lease arrangements for certain office premises. The leases are non-cancellable and are for a period of 5 years. The lease agreements provide for an increase in the lease payments by 6 to 7 % every year.

The Company has paid Rs.172.61 lakhs (March 31, 2017: Rs. 108.47 lakhs) during the year towards minimum lease payment.

Operating lease commitments - Company as lessor

The Company has entered into operating leases on its investment property portfolio consisting of certain land, buildings and plant & equipment. All leases include a clause to enable upward revision of the rental charge on an annual basis according to prevailing market conditions. The lessee has the option to either renew the lease for a further period as may be decided upon by mutual consent or vacate the premises. The total rents recognised as income during the year is Rs.46.60 lakhs (March 31, 2017: Rs.43.91 lakhs).

9. Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the recognition and measurement principles of Ind AS requires management to make judgements, estimates and assumptions that affect the reported balances of revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a) Judgements

In the process of applying the accounting policies, management has made judgement relating to determination of lease classification which has the most significant effect on the amounts recognised in the financial statements.

Operating leases - Company as lessor

The Company has entered into leases on its investment properties. The Company has determined, based on an evaluation of the terms and conditions of the arrangements such as the lease term not constituting a substantial portion of the economic life of the property, that it retains all the significant risks and rewards of ownership of these properties and so accounts for the contracts as operating leases.

b) Estimates and assumptions

The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the financial statements were prepared. Existing circumstances and assumptions about future developments, however, may change due to market changes or circumstances arising that are beyond the control of the Company. Such changes are reflected in the assumptions when they occur.

Defined benefit plans

The cost of the defined benefit plan and other post-employment benefits and the present value of such obligation are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, mortality rates and attrition rate. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

10. Financial risk management objectives and policies

The Company''s principal financial liabilities comprise of bank and other borrowings, deposits, trade and other payables. The main purpose of these financial liabilities is to finance and support the entity''s operations. The entity''s principal financial assets include trade and other receivables and cash and cash equivalents that derive directly from its operations.

The entity is exposed to market risk, credit risk and liquidity risk. The entity''s senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarised below.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk include loans and borrowings, deposits, FVTOCI investments and derivative financial instruments.

Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The entity''s exposure to the risk of changes in market interest rates relates primarily to the entity''s long-term debt obligations with floating interest rates. The entity manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

Interest rate sensitivity

The following table demonstrates the sensitivity to a reasonably possible change in interest rates on that portion of loans and borrowings affected. With all other variables held constant, the entity''s profit before tax is affected through the impact on floating rate borrowings, as follows

Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency). The Company has not hedged any portion of its expected foreign currency sales as at March 31, 2018, March 31, 2017 and April 01, 2016.

Foreign currency sensitivity

The following demonstrates the sensitivity to a reasonably possible change in the foreign currency exchange rates for INR, with all other variables held constant. The impact on the Company''s profit before tax is du e to changes in t he fair value of monetary assets and liabilities including non-designated foreign currency derivatives an d embedded derivatives. The sensitivity analysis includes only outstanding unhedged foreign currency denominated monetary items and adjusts their translation at the period end for a 5% change in foreign currency rates.

In management''s opinion, the sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Credit risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. The maximum exposure to the credit risk is equal to the carrying amount of financial assets as of March 31, 2018, March 31, 2017 and April 01, 2016 respectively.

Liquidity Risk

The Company''s objective is to maintain a balance between continuity of funding and flexibility through the use of bank deposits and loans.

The table below summarises the maturity profile of the Company''s financial liabilities based on contractual undiscounted payments (including interest payments)

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs are inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the asset or liability.

There have been no transfers between the levels during the period.

The carrying amounts of trade receivables, trade payables, capital creditors and cash and cash equivalents are considered to be the same as their fair values, due to their short-term nature. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate.

They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

11. Capital management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity holders. The primary objective of the Company''s capital management is to maximise the shareholder value.

The Company''s capital management is intended to create value for shareholders by facilitating the meeting of long-term and short-term goals of the Company. The Company determines the amount of capital required on the basis of annual operating plans and long-term product and other strategic investment plans. The funding requirements are met through internal accruals, external commercial borrowings and other long-term/short-term borrowings. The Company''s policy is aimed at combination of short-term and long-term borrowings. The Company monitors capital employed using a Debt equity ratio, which is total debt divided by total equity and maturity profile of the overall debt portfolio of the Company. The Company includes within net debt, borrowings including interest accrued on borrowings less cash and short-term deposits.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any interest-bearing loans and borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the years ended March 31, 2017 and March 31, 2018.

12. First-time adoption of Ind AS

These financial statements, for the year ended March 31, 2018, are the first time the Company has prepared in accordance with Ind AS. For periods up to and including the year ended March 31, 2017, the Company prepared its financial statements in accordance with accounting standards notified under section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP), as amended.

Accordingly, the Company has prepared financial statements which comply with Ind AS applicable for periods ending on March 31, 2018, together with the comparative period data as at and for the year ended March 31, 2017, as described in the summary of significant accounting policies. In preparing these financial statements, the Company''s opening balance sheet was prepared as at April 01, 2016, the Company''s date of transition to Ind AS. This note explains the principal adjustments made by the Company in restating its Indian GAAP financial statements, including the balance sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.

Exemptions applied

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions:

(a) Deemed cost for property, plant and equipment and investment property

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities subject to that there is no change in functional currency. This exemption can also be used for investment property covered by Ind AS 40 Investment Properties. Accordingly, the Company has elected to measure all of its property, plant and equipment and investment property at their previous GAAP carrying value.

(b) Business combination

Ind AS 101 permits first time adopter to choose the exemption of not restating business combinations occurred prior to the date of transition. If the exemption is chosen, the carrying amount of assets and liabilities under IGAAP shall be the carrying amount in the opening Ind AS Balance Sheet subject to the permissible adjustments specified under the standard. The Company availed the exemption provided under Ind AS 101 as explained above and did not restate any of the amount of assets and liabilities.

(c) Investments in subsidiary and jointly controlled entity

In the preparation of separate financial statements, Ind AS 27 Separate Financial Statements requires an entity to account for its investments in subsidiaries, jointly controlled entities and associates either at cost or in accordance with Ind AS 109. If a first-time adopter measures such an investment at cost, it can measure that investment at one of the following amounts in its separate opening Ind AS balance sheet:

- Cost determined in accordance with Ind AS 27

- Deemed cost, defined as

- Fair value determined in accordance with Ind AS 113 at the date of transition to Ind AS, or

- Previous GAAP carrying amount at the transition date.

A first-time adopter may choose to use either of these bases to measure investment in each subsidiary, joint venture or associate where it elects to use a deemed cost. Accordingly, the Company has opted to carry the investment in subsidiary and jointly controlled entity at the Previous GAAP carrying amount at the transition date.

Mandatory exceptions

a) Estimates

The estimates at April 01, 2016 and at March 31, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from the following items where application of Indian GAAP did not require estimation:

- Impairment of financial assets based on expected credit loss model

The estimates used by the Company to present these amounts in accordance with Ind AS reflect conditions at April 01, 2016, the date of transition to Ind AS and as of March 31, 2017 and March 31, 2018.

(b) Classification and measurement of financial assets

The Company has classified the financial assets in accordance with Ind AS 109 on the basis of facts and circumstances that exist at the date of transition to Ind-AS.

(c) Impairment of financial assets

At the date of transition to Ind AS, the Company has determined that assessing whether there has been a significant increase in credit risk since the initial recognition of a financial instrument would require undue cost or effort, hence the Company has recognised a loss allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument is derecognised (unless that financial instrument is low credit risk at a reporting date).

13 (a) Footnotes for reconciliation of balance sheet and profit & loss statement as previously reported under IGAAP to Ind AS

1 Reclassification

Previous periods'' figures have been re-grouped / re-classified, where necessary to comply with Ind AS accounting.

The Company determines classification of certain assets and liabilities as financial/ non financial assets and liabilities. Transitional adjustments made by Company represents reclassification of non financial assets and liabilities to other assets and liabilities

2 Deferred tax

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has to account for such differences.

3 Excise duty on sale of goods

Under Indian GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is included as part of sales in the face of statement of profit and loss. Thus sale of goods under Ind AS for the year ended March 31, 2017 has increased by Rs.1,145.73 lakhs with a corresponding increase in expenses.

4 Defined benefit liabilities

Both under Indian GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis. Under Indian GAAP, the entire cost, including actuarial gains and losses, are charged to the statement of profit and loss. Under Ind AS, remeasurements (comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability) are recognised immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

5 Lease equilisation

Under the previous GAAP, leases need to be straight-lined over the period of non-cancellable term. As per Ind AS 17, lease payments under an operating lease shall be recognised as an expense on a straight-line basis over the lease term unless either another systematic basis is more representative of the time pattern of the user''s benefit even if the payments to the lessors are not on that basis or the payments to the lessor are structured to increase in line with expected general inflation to compensate for the lessor''s expected inflationary cost increases. Since the payments to the lessor does not vary because of any factors other than general inflation, the Company has reversed the expense recognised on a straight-line basis.

6 Fair valuation of investments

Under Indian GAAP, the Company accounted for long term investments in unquoted and quoted equity shares as investment measured at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has designated such investments as FVTOCI investments. Ind AS requires FVTOCI investments to be measured at fair value. At the date of transition to Ind AS, difference between the instruments fair value and Indian GAAP carrying amount has been recognised as a separate component of equity, in the FVTOCI reserve, net of related deferred taxes.

7 Other comprehensive income

Under Indian GAAP, the Company has not presented other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind AS. Further, Indian GAAP profit or loss is reconciled to total comprehensive income as per Ind AS.

8 Statement of cash flows

The transition from Indian GAAP to Ind AS has not had a material impact on the statement of cash flows.

14. Standards issued but not yet effective

The standard issued, but not yet effective up to the date of issuance of the Company''s financial statements is disclosed below.

Ind AS 115 Revenue from Contracts with Customers

Ind AS 115 was notified on March 28, 2018 and establishes a five-step model to account for revenue arising from contracts with customers. Under Ind AS 115, revenue is recognised at an amount that reflects the consideration to which an entity expects to be entitled in exchange for transferring goods or services to a customer.

The new revenue standard will supersede all current revenue recognition requirements under Ind AS. This new standard requires revenue to be recognized when promised goods or services are transferred to customers in amounts that reflect the consideration to which the Company expects to be entitled in exchange for those goods or services. Adoption of the new rules could affect the timing of revenue recognition for certain transactions of the Company. Ind AS 115 is effective for the Company in the first quarter of fiscal 2019 using either one of two methods: (i) retrospectively to each prior reporting period presented in accordance with Ind AS 8 Accounting Policies, Changes in Accounting Estimates and Errors, with the option to elect certain practical expedients as defined within Ind AS 115 (the full retrospective method); or (ii) retrospectively with the cumulative effect of initially applying Ind AS 115 recognized at the date of initial application (April 01, 2018) and providing certain additional disclosures as defined in Ind AS 115 (the modified retrospective method).

The Company continues to evaluate the available transition methods and its contractual arrangements. The ultimate impact on revenue resulting from the application of Ind AS 115 will be subject to assessments that are dependent on many variables, including, but not limited to, the terms of the contractual arrangements and the mix of business. The Company''s considerations also include, but are not limited to, the comparability of its financial statements and the comparability within its industry from application of the new standard to its contractual arrangements. The Company has established an implementation team to implement Ind AS 115 related to the recognition of revenue from contracts with customers and it continues to evaluate the changes to accounting system and processes, and additional disclosure requirements that may be necessary. A reliable estimate of the quantitative impact of Ind AS 115 on the financial statements will only be possible once the implementation project has been completed.

Amendments to Ind AS 12 - Recognition of Deferred Tax Assets for Unrealised Losses

The amendments clarify that an entity needs to consider whether tax law restricts the sources of taxable profits against which it may make deductions on the reversal of that deductible temporary difference. Furthermore, the amendments provide guidance on how an entity should determine future taxable profits and explain the circumstances in which taxable profit may include the recovery of some assets for more than their carrying amount.

Entities are required to apply the amendments retrospectively. However, on initial application of the amendments, the change in the opening equity of the earliest comparative period may be recognised in opening retained earnings (or in another component of equity, as appropriate), without allocating the change between opening retained earnings and other components of equity. Entities applying this relief must disclose that fact.

These amendments are effective for annual periods beginning on or after April 01, 2018. These amendments are not expected to have any impact on the Company.

Amendments to Ind AS 40 - Transfers of Investment Properly

The amendments clarify when an entity should transfer property, including property under construction or development into, or out of investment property. The amendments state that a change in use occurs when the property meets, or ceases to meet, the definition of investment property and there is evidence of the change in use. A mere change in management''s intentions for the use of a property does not provide evidence of a change in use.

Entities should apply the amendments prospectively to changes in use that occur on or after the beginning of the annual reporting period in which the entity first applies the amendments. An entity should reassess the classification of property held at that date and, if applicable, reclassify property to reflect the conditions that exist at that date. Retrospective application in accordance with Ind AS 8 is only permitted if it is possible without the use of hindsight.

The amendments are effective for annual periods beginning on or after April 01,2018. The Company will apply amendments when they become effective. However, since Company''s current practice is in line with the clarifications issued, the Company does not expect any effect on its financial statements.

15. Prior year comparatives

The figures of previous year have been regrouped/reclassified, where necessary, to conform to this year''s classification.

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Mar 31, 2016

Employee Benefits

1. Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognized Rs.66.15 Lakhs (Year ended 31 March, 201 5 Rs.56.69 Lakhs) for Provident Fund contributions, Rs.55.66 Lakhs (Year ended 31 March, 201 5 Rs.47.93 Lakhs) for Superannuation Fund contributions and Rs.3.1 7 Lakhs (Year ended 31 March, 201 5 Rs.3.1 9 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

2. Defined benefit plans Gratuity

The following table sets forth the status of Gratuity Plan of the Company and the amount recognized in the Balance Sheet and Statement of Profit and Loss.

3 Estimate of amount of contribution in the immediate next year: Rs.55.00 Lakhs (RY.- Rs.28.00 Lakhs)

4 The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation. The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 1 20(n)(ii) of AS 1 5 (Revised) on "Employee Benefits" are not readily available in the valuation report and hence, are not furnished.

5 As the fair value of the planned assets is more than the liability, an amount of Rs. 1 3.27 Lakhs (RY.- Rs. 1 7.29 Lakhs) has not been recognized in the books on a conservative basis.

6 Segment Information (a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading. Insulation Business includes manufacturing of EPS Products/ prefabricated panels and related service activities. Trading includes motors, export of fabrics, telemedicine equipments, Information Technology Products etc. The above segments have been identified taking into account the organization structure as well as differing risks and returns of these

7 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

---

Mar 31, 2015

1. Terms attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.10/- per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. Repayment of capital will be in proportion to the number of equity shares held.

2. The Rupee term loan from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the Title Deeds of all its properties except at Thane and Bihar. These term loans are repayable over a period of six years and the floating interest rate is 13.1 0% (P.Y. 11.50% to 12.00%)

3. For current maturities of long term borrowings, refer Item (a) in Note 9- Other Current Liabilities.

4. Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan and are payable over a period of two to four years. For current maturities of hire purchase loans, refer item (b) in Note 9- Other Current Liabilities.

5. The Company has not defaulted in repayment of the loans, public deposits and interest thereon.

6. Working capital facilities from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the Title Deeds of all its properties except at Thane and Bihar.

7. The company has not defaulted in repayment of the loans, public deposits and interest thereon.

8. Current maturities of long-term debt pertains to secured term loans taken from banks. Refer Note 4.1 under Long-term borrowings for details of security and terms of repayment.

9. Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan.

10. These amounts represent dividend warrants issued to the Shareholders which remained unpresented as on 31st March 2015. There are no amounts due to be transferred to Investor Education and Protection Fund as on 31st March 2015 (P.Y.: Rs. Nil).

11. Of the above, the balances that meet the definition of Cash and cash equivalents as per AS 3 Cash Flow Statements is Rs.269.68 Lakhs (Rs. 440.21 Lakhs)

12. Balances with banks - Other earmarked accounts represent fixed deposits made in pursuance of Rule 3A of the Companies (Acceptance of Deposits) Rules 1975.

13. Contigent Liabilities and Commitments (to the extent not provided for)

As at As at Particulars March 31, 2015 March 31, 2014

(Rs. in Lakhs)

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts 22.77 22.77

(b) Sales tax demands against which the Company has filed appeals and for which no provision is considered necessary as the 608.47 465.93 Company is hopeful of successful outcome in the appeals.

(c) CST demands in respect of which the High Court has pronounced an - 162.13 order quashing the proceedings and redirected the proceedings to the Assessing Officer, as confirmed by the legal counsel.

631.24 650.83

Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities. Nature Amount Payment Period to Name of the statute of dues made which the amount relates Rs. in Lakhs

Sales Tax Acts Sales Tax 45.09 9.67 1995-96 of various states -Local (40.50) (6.07) 2000-01

2001-02

2003-04

2005-06

2006-07

2007-08

2008-09

2009-10 2010-11

Central Sales Sales Tax 563.38 45.65 1995-96 Tax Act, 1956 -CST (587.56) (27.65) 2000-01

2001-02

2003-04

2005-06

2006-07

2007-08

2008-09

2009-10

2010-11

608.47 55.32

(628.06) (33.72)

Forum where Name of the statute dispute is pending

Sales Tax Acts Deputy of various states Commissioner, Assistant Commissioner & other appellate authorities

Central Sales High Court, Tax Act, 1956 Deputy Commissioner & CTO of various states

Note: Figures in bracket relates to the previous year

(ii) Commitments

(a) Estimated amount of contracts remaining to be executed and not 189.48 127.72 provided for in these accounts (net of advances) in respect of purchase of tangible assets.

(b) Commitments towards investments - 48.11

14. Memorandum of Understanding

During the year, the Company has entered into Memorandum of Understanding ("MOU") with an entity effective 01.09.2014 to operate its EPS division. In accordance with the terms of the MOU, the Company has to absorb 50% of the interest costs and share of profits/ losses of this division. Accordingly the Company has absorbed finance costs of this division amounting to Rs.19.62 lakhs and share of losses amounting to Rs.16.16 lakhs.

15. Employee Benefits

A. Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.56.69 Lakhs (Year ended 31 March, 2014 Rs.48.39 Lakhs) for Provident Fund contributions, Rs.47.93 Lakhs (Year ended 31 March, 2014 Rs.40.50 Lakhs) for Superannuation Fund contributions and Rs.3.19 Lakhs (Year ended 31 March, 2014 Rs.3.55 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

16. Estimate of amount of contribution in the immediate next year: Rs.28.00 Lakhs (P.Y.- Rs.25 Lakhs)

17. The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation. The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 120(n)(ii) of AS 15 (Revised) on "Employee Benefits" are not readily available in the valuation report and hence, are not furnished.

18. As the fair value of the planned assets is more than the liability, an amount of Rs. 17.29 Lakhs (P.Y.- Rs.2.80 Lakhs) has not been recognised in the books on a conservative basis.

19. Segment Information

(a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading. Insulation Business includes manufacturing of EPS Products/ prefabricated panels and related service activities. Trading includes motors, export of fabrics, telemedicine equipments, Information Technology Products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. The geographical segments of the Company are India and others.

20. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification/disclosure.

---

Mar 31, 2014

Corporate Information

Beardsell Limited ("the Company") is a prominent manufacturer and supplier of Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings that have wide industrial applications. The company also undertakes erection, commissioning and maintenance works in the field of hot and cold insulation solutions. The company has manufacturing facilities in Thane, Chennai, Hyderabad and Karad and branches with geographical spread across India. In addition, the company has trading operations in domestic and international market.

1. Terms attached to equity shares

The Company has issued only one class of equity shares having a par value of Rs.l 0/- per share. Each holder of equity share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. Repayment of capital will be in proportion to the number of equity shares held.

2. The Rupee term loan from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the Title Deeds of all its properties except at Thane. These term loans are repayable over a period of six years and the floating interest rate range from 11.50% to 12.00% (RY. 12.75% to 14.25%)

3. The Company has not defaulted in repayment of the loans, public deposits and interest thereon.

4. For current maturities of long term borrowings, refer Item (a) in Note 9- Other Current Liabilities.

5. Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan and are payable over a period of two to four years. For current maturities of hire purchase loans, refer item (b) in Note 9- Other Current Liabilities.

6. Working capital facilities from Bank of India are secured by exclusive charge on the entire fixed and current assets of the Company. They are also secured by deposit of the Title Deeds of all its properties except at Thane.

7. The company has not defaulted in repayment of the loans, public deposits and interest thereon.

8. In accordance with the Notification No.GSR71 9 (E) dated 16.11.2007 issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro and Small Enterprises as defined underthe Micro,Small and Medium Enterprises Development Act, 2006. Since there are no dues to such enterprises, no disclosures are required to be made underthe said Act.

9. Current maturities of long-term debt pertains to secured term loans taken from banks. Refer Note 4.1 under Long-term borrowings for details of security and terms of repayment.

10. Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan.

11. These amounts represent dividend warrants issued to the Shareholders which remained unpresented as on 31 st March 2014. There are no amounts due to be credited to Investor Education and Protection Fund as on 31 st March 2014 (RY.: Rs. Nil).

12. Represents vehicle loans given to employees secured by respective vehicles.

13. Represents amounts paid to Saideep Polytherm, a Partnership firm. A Memorandum of understanding has been executed with the firm on May 7, 2014 for the Company to become a partner in the firm for a total capital contribution of Rs. 112.15 lakhs.

14. Of the above, the balances that meet the definition of Cash and cash equivalents as per AS 3 Cash Flow Statements is Rs.440.21 Lakhs (Rs. 218.11 Lakhs)

15. Balances with banks - Other earmarked accounts represents fixed deposits made in pursuance of Rule 3A of the Companies (Acceptance of Deposits) Rules 1975 .

16. Sales of services comprise of income from erection, commissioning and maintenance of hot and cold insulation solutions.

17. Others include raw materials such as Isocynate, chemicals and wire mesh, none of which individually accounts for more than 10% of the total consumption.

18. Other borrowing cost includes loan processing charges, guarantee charges, loan facilitation charges and other ancillary costs incurred in connection with borrowings.

19. Legal and Professional charges include an amount of Rs.6.00 lakhs (RY.: Rs.6.20 lakhs) paid to a law firm in which one of the directors is a partner.

20 Contigent Liabilities and Commitments (to the extent not provided for)

As at As at Particulars March 31, 2014 March 31,2013 (Rs. in Lakhs)

(i) Contingent Liabilities

(a) Claims against the Company not 22.77 22.77 acknowledged as debts

(b) Sales tax demands against which the Company has filed

appeals and for which no provision 465.93 31 6.85 is considered necessary as the Company is hopeful of successful outcome in the appeals.

(c)CST demands in respect of which the High Court has pronounced an order quashing the 162.13 - proceedings and redirected the proceedings to the Assessing Officer, as confirmed by the legal counsel. 628.06 316.85

Future cash outflows in respect of the above matters are determinable only on receipt of judgements / decisions pending at various forums / authorities.

Payment Period to Name of the statute nature Amount made which the ofdues Rs. in Lakhs amount relates

Sales Tax Acts Sales Tax 40.50 6.07 1995-96 of various states -Local (43.52) (3.70) 1998-99 2000-01 2001-02 2003-04 2005-06 2006-07 2008-09 2009-10

Central Sales Sales Tax 587.56 27.65 1995-96 Tax Act, 1956 -CST (273.33) (12.65) 2000-01 2001-02 2003-04 2005-06 2006-07 2008-09 2009-10 2010-11 628.06 33.72 2011-12 (316.85) (16.35)

Forum where Name of the statute dispute is pending

Sales Tax Acts Deputy of various states Commissioner, Assistant Commissioner & other appellate authorities

Central Sales High Court, Tax Act, 1956 Deputy Commissioner & CTO of various states

Note: Figures in bracket relates to the previous year

(ii) Commitments

(a) Estimated amount of contracts remaining 127.72 62.1 8 to be executed and not provided for in these accounts (net of advances)

in respect of purchase of tangible assets.

(b) Letters of Credit established for - 268.94 purchases of raw materials

(c) Commitments towards investments 48.11 - (Refer Note 13.2)

21 Employee Benefits

A. Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, for qualifying employees. Under the Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.48.39 Lakhs (Year ended 31 March, 2013 Rs.49.43 Lakhs) for Provident Fund contributions, Rs.40.50 Lakhs (Year ended 31 March, 2013 Rs.36.95 Lakhs) for Superannuation Fund contributions and Rs.3.55 Lakhs (Year ended 31 March, 2013 Rs.3.74 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

22. Estimate of amount of contribution in the immediate next year: Rs. 25.00 Lakhs (RY.-Nil)

23. The Company has invested the plan assets with the insurer managed funds. The insurance company has invested the plan assets in Government Securities, Debt Funds, Equity shares, Mutual Funds, Money Market Instruments and Time Deposits. The expected rate of return on plan asset is based on expectation of the average long term rate of return expected on investments of the fund during the estimated term of the obligation. The details of experience adjustments arising on account of plan assets and liabilities as required by paragraph 1 20(n)(ii) of AS 15 (Revised) on "Employee Benefits" are not readily available in the valuation report and hence, are not furnished.

24. As the fair value of the planned assets is more than the liability, an amount of Rs. 2.80 Lakhs (RY. - Rs.50.73 Lakhs) has not been recognised in the books on a conservative basis.

25 Segment Information

(a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading, insulation Business includes manufacturing of EPS products / Pre-tabricated panels and related service activities. Trading includes motors, export of fabrics, tele-medicine equipments, Information Technology products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Revenues and expenses directly attributable to segments are reported under each reportable segments. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to the segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. The geographical segments of the Company are India and others.

26 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2013

Corporate Information

Beardsell Limited ("the Company") is a prominent manufacturer and supplier of Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings that have wide industrial applications. The company also undertakes erection, commissioning and maintenance works in the field of hot and cold insulation solutions. The company has manufacturing facilities in Thane, Chennai, Hyderabad and Karad and branches with geographical spread across India. In addition, the company has trading operations in domestic and international market.

1.1 Current maturities of long-term debt pertains to secured term loan taken from IDBI Bank Limited. Refer Note 4.1 under Long-term borrowings for details of security and terms of repayment.

1.2 Hire purchase loans are secured by hypothecation of vehicles acquired out of the loan.

1.3 These amounts represent dividend warrants issued to the Shareholders which remained unpresented as on 31st March, 201 3. There are no amounts due to be credited to Investor Education and Protection Fund as on 31 st March 201 3 (RY.: Rs. Nil).

2 Contigent Liabilities and Commitments (to the extent not provided for)

As at As at Particulars March 31, 2013 March 31, 2012 Rs. in Lakhs)

(i) Contingent Liabilities

(a) Claims against the Company not acknowledged as debts 22.77

(b) Sales tax, Income tax and demands against which the 316.85 217.90 Company has filed appeals and for which no provision is considered necessary as the Company is hopeful of successful outcome in the appeals.

Future cash outflows in respect of the above matters are determinable only on receipt of judgments / decisions pending at various forums / authorities.

3 Employee Benefits

A. Defined Contribution Plans

The Company makes Provident Fund, Superannuation Fund and Employee State Insurance Scheme contributions which are defined contribution plans, forqualifying employees. Underthe Schemes, the Company is required to contribute a specified percentage of the payroll costs to fund the benefits. The Company recognised Rs.49.43 Lakhs (Year ended 31 March, 201 2 Rs.46.49 Lakhs) for Provident Fund contributions, Rs.36.95 Lakhs (Year ended 31 March, 201 2 Rs.40.05 Lakhs) for Superannuation Fund contributions and Rs.3.74 Lakhs (Year ended 31 March, 201 2 Rs.3.24 Lakhs) for Employee State Insurance Scheme contributions in the Statement of Profit and Loss. The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

4.1 Estimate of a mount of contribution in the immediate next year: Rs. Nil (RY- Rs. 23 Lakhs)

4.2 In the absence of detailed information regarding Plan assets which is funded with Life Insurance Corporation of India, the composition of each major category of plan assets, the percentage or amount for each category to the fair value of plan assets has not been disclosed.The details of experience adjustments arising on account of plan assets and liabilities as required by paragraphl 20(n)(ii) of AS 15 (Revised) on "Employee Benefits" are not readily available in the valuation report and hence, are notfurnished.

4.3 As the fair value of the planned assets is more than the liability, an amount of Rs. 50.73 Lakhs (RY- Rs.3.65 Lakhs) has not been recognised in the books on a conservative basis.

5 Segment Information

(a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading. Insulation Business includes manufacturing of EPS Products/ prefabricated panels and related service activities. Trading includes motors, export of fabrics, telemedicine equipments, Information Technology Products etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments. Revenues and expenses directly attributable to segments are reported under each reportable segment. Expenses which are not directly identifiable to each reportable segment have been allocated on the basis of associated revenues of the segment and manpower efforts. All other expenses which are not attributable or allocable to segments have been disclosed as unallocable expenses. Assets and liabilities that are directly attributable or allocable to segments are disclosed under each reportable segment. All other assets and liabilities are disclosed as unallocable. The geographical segments of the Company are India and others.

6 Related party transactions (as identified by the management and relied upon by the auditors)

Details of related parties:

(a) Key Management Personnel (KMP) - Mr. BharatAnumolu -Managing Director

- Mr, S.V.Narasimha Rao - Executive Director

(b) Relatives of KMP - Mrs. A. Jayasree- Mother of Managing Director

- Mr. Amrith Anumolu - Brother of Managing Director

- Mr. S Arun (HUF) - HUF, wherein son of Executive Director is the Karta j

7 Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.

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Mar 31, 2012

Corporate Information

Beardsell Limited ("the Company") is a prominent manufacturer and supplier of Expanded Polystyrene products, popularly known as thermocole and Prefabricated Buildings that have wide industrial applications. Company also undertakes erection, commissioning and maintenance works in the field of hot and cold insulation solutions. The company has own manufacturing facilities in Thane, Chennai and Hyderabad and branches with geographical spread across India. In addition, the company has operations of trading in Motors and Fabrics.

1.1 Terms attached to equity shares

The Company has issued only one class of equity shares having at par value of Rs.10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the Annual General Meeting. Repayment of capital on liquidation will be in proportion to the number of equity shares held.

1.2 On October 31, 2011, the Company has allotted 4,00,000 Equity Shares of face value of Rs.10/- each at a premium of Rs.48/- per share to promoters of the Company by conversion of 4,00,000 Fully Convertible Equity Warrants issued on October 27, 2010, vide the approval of members of the Company at the General Meeting held on September 27, 2010. On March 28, 201 2, the Company has further allotted 4,50,000 Equity Shares of face value of Rs. 10/- each at a premium of Rs. 48/- per share to the promoters of the company upon conversion of 4,50,000 Fully Convertible Equity Warrants issued on October 10, 2011, vide the approval of members of the Company at the General Meeting held on September 28, 2011. Consequent to these allotments the Paid-up Share Capital has increased from Rs. 383.32 Lakhs to Rs. 468.32 Lakhs. The premium on such allotments amounting to INR 408.00 Lakhs has been credited to securities premium account.

2.1 The Rupee term loan from IDBI is secured by first charge on the entire fixed assets of the Company excluding specific assets already charged with Bank of India on pari passu basis. They are also secured by deposit of the Title Deeds of one of its property. This term loan is repayable over a period of seven years and the interest rates range from 1 3% to 1 4.25%.

2.2 The company has not defaulted in repayment of the loans, public deposits and interest thereon.

2.3 For current maturities of long term borrowings, refer Item (a) in Note 9 - Other Current Liabilities.

3.1 Working capital facilities from Bank of India are secured by first charge on current assets and charge on specific Fixed Assets of the Company, on pari passu basis, with IDBI Bank Limited in respect of its term loan.

3.2 The company has not defaulted in repayment of the loans, public deposits and interest thereon.

4.1 In accordance with the Notification No.GSR719(E) dated 16.11.2007 issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to Micro, Small and Medium Enterprises Act as defined under the Micro, Small and Medium Enterprises Development Act, 2006. Since there are no dues to such enterprises, no disclosures are required to be made under the said Act.

5.1 Current maturities of long-term debt pertains to secured term loan taken from IDBI Bank Limited. Refer Note 4.1 under Long-term borrowings for details of security and terms of repayment.

7.1 Of the above, the balances that meet the definition of cash and cash equivalents as per AS 3 cash flow statements is Rs.208.56 Lakhs (PY. Rs. 243.52 Lakhs)

7.2 Balances with banks - Other earmarked accounts represents fixed deposits made in pursuance of Rule 3A of the Companies (Acceptance of Deposits) Rules, 1 975.

7.3 Balances with banks includes deposits amounting to Rs.10 Lakhs (PY. Rs. 25 Lakhs) which have a maturity of more than 12 months from the Balance Sheet date.

8.1 Sales of services comprise of income from erection, commissioning and maintenance of hot and cold insulation solutions.

9.1 Others include raw materials such as isocynate, chemicals and wire mesh, none of which individually accounts for more than 10% of the total consumption.

10.1 Legal and professional charges include -

(a) An amount of Rs. 2.15 Lakhs paid to a law firm in which one of the directors is a partner. This is subject to approval of share holders in the ensuing general meeting in accordance with provisions of Section 314 and other applicable provisions of the Companies Act, 1 956.

(b) An amount of Rs. 0.80 Lakhs incurred for a Director, in his capacity as a technical advisor. This is subject to the approval of shareholders in the ensuing general meeting in accordance with provisions of Section 314 and other applicable provisions of the Companies Act, 1 956.

11 Segment Information

(a) Primary Segment

The Company has identified business segments as its primary segment. Business segments are primarily insulation and trading. Insulation Business includes manufacturing of EPS Products/ Prefab panels and related service activities. Trading includes motors, exports etc. The above segments have been identified taking into account the organisation structure as well as differing risks and returns of these segments.

(b) Secondary segment

As the sales and assets outside India is less than 10% of total sales/ assets, there are no reportable geographical segments.

12 Related party transactions

Details of related parties:

(a) Key Management Personnel (KMP) - Mr. Bharat Anumolu - Managing Director

- Mr. S.V.Narasimha Rao - Executive Director

(b) Relatives of KMP - Mrs. A. Jayasree- Mother of Managing Director

- Mr. Amrith Anumolu - Brother of Managing Director

- Mr. S Arun (HUF) - HUF, wherein son of Executive Director is the Karta

13 Subsequentevents

On April 4, 2012 the promoters of the Company made an open offer for acquisition of 12,17,624 shares (representing 26% of the total paid up equity share capital) at Rs.58/- per share from public shareholders, in accordance with Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 201 1 and subsequent amendments thereto. The offer opened on June 7, 2012 and closed on June 20, 2012. Holders of 8,55,516 shares have accepted the offer, consequent to which the promoters' shareholding has increased from 57.64% to 75.91%. In order to comply with clause 40A of the Listing agreement, the promoters have sold 44,003 shares in the open market on July 26, 201 2 and July 27, 2012 to reduce their holdings to 74.96%.

14 The Revised Schedule VI has become effective from 1 April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.

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Mar 31, 2010

As on As on Mar 31,2010 Mar 31,2009

1.01 Contingent liabilities

(Rs. in Lakhs)

Uncalled Liability in respect of partly paid shares held as investments 0.36 0.36

Claims against the Company not acknowledged as debts 2.00 2.00

Capital Commitments (Net of Advances) 150.99 60.45

Disputed Sales Tax demands 14.04 16.89



Name of the Nature of . Amount Payment statute dues made

Sales tax acts of Sales Tax 6.44 3.85 various States

(9.29) (3.05)

Central Sales Sales Tax 7.60 2.65 Tax Act

(7.60) (2.65)

Name of the Period to which Forum where statute the amt. relates dispute is pending

Sales tax acts of 1982-83tol985-86 Deputy Commissioner various States 1989 - 90 to 1995-96 & Assistant Commissioner 1997-98 & other appellate 1998-99 authorities 2000 - 01 2001 - 02 2003 - 04

Central Sales 1993 - 94 to 1995-96 Deputy Commissioner Tax Act 1997-98 & CTO of various states 2000 - 01 2001 - 02 2003 - 04

1.02 Income tax appeal

An appeal is pending before CIT (Appeals) against the order of the Assessing Officer for the assessment year 2005 - 2006 in respect of disputed tax demand of Rs. 1 1 2.75 lakhs which includes interest of Rs. 20.03 lakhs. The entire amount has been paid. The Company is advised that there are reasonable chances of success in the appeal. Accordingly, no provision is considered necessary.

1.03 Excise duty

Excise duty on sales for the year has been disclosed as reduction from turnover. Excise duty related to the difference between the closing stock and opening stock has been included in Schedule 1 3 forming part of the accounts.

1.04 Working capital facilities

Working capital facilities of the Company are secured by first charge on current assets and charge on specific fixed assets of the Company, on pari passu basis, with IDBI Bank Ltd. in respect of its Term Loan.

1.05 Term loan

Term Loan from IDBI Bank Ltd. is secured by First charge on the entire fixed assets of the Company excluding specific assets already charged with Bank of India on pari passu basis. They are also secured by deposit of Title Deeds of one of its property.

1.06 Deposits from public

(a) Fixed deposits maturing within one year is Rs. 7.98 lakhs (Rs. 1 9.1 1 lakhs).

(b) Fixed deposits under cash and bank balances includes an amount of Rs. 3.00 lakhs (Rs. 3.00 lakhs) deposited in pursuance of Rule 3A of the Companies (Acceptance of Deposits) Rules, 1 975.

1.07 Micro Enterprises & Small Enterprises

In accordance with the Notification No: GSR 71 9 (E) dated 1 6.11.2007 issued by the Ministry of Corporate Affairs, certain disclosures are required to be made relating to micro, small and medium enterprises as defined under the Micro, Small and Medium Development Act, 2006. The Company is in the process of compiling relevant information from its suppliers about their coverage under this Act. Since the relevant information is not readily available, no disclosures have been made in these financial statements.

1.08 Contracts-in-progress

In respect of contracts-in-progress, as on March 31, 201 0, the aggregate cost incurred and the profit recognized is Rs. 225.35 lakhs (Rs. 96.48 lakhs) and Rs. 24.87 lakhs (Rs. 12.95 lakhs) respectively. Advance from contract customers amount to Rs. 1 22.90 lakhs (Rs. 70.39 lakhs). Contracts receivables amount-to Rs.282.30 lakhs (Rs.291.72 lakhs).

1.09 During the year, the Court convened Extra Ordinary General Meeting was held on 9th of September 2009 and the Shareholders have approved the Scheme of Merger of the wholly owned subsidiary Viraat Granites Private Limited with the Company. Necessary petitions have been filed with Honourable High Court of Madras for the sanction of said Scheme, which is pending.

1.10 Other Income includes

- Rs.230.00 Lakhs received on account of Surrender of Tenancy Rights in respect of a property situated at Hyderabad

- Rs.25.03 Lakhs received on account of settlement of Insurance claim relating to Stock made in earlier years and interest of Rsl 0.29 Lakhs forthe delay in settlement.

The Company has considered business segment as the Primary Segment for disclosure.

Insulation Business includes manufacturing of EPS Products/Prefab Panels and related contracting activities.

Trading includes Chemicals, Motors and Exports, etc.

The above Segments have been identified taking into account the organization structure as well as the differing risks and returns of these segments.

(b) Secondary segment

As the sales and assets outside India is less than 1 0% of total sales/assets, there are no reportable geographical segments.

15.14 Related Party Transactions (as identified by the management and relied upon by Auditors)

(a) Subsidiary Company - M/s. Viraat Granites Private Limited

(b) Key management personnel - Mr. Bharat Anumolu - Managing Director (From 29.06.2009)

Mr. S. V. Narasimha Rao - Executive Director (From 29.06.2009)

Mr. A. V Ramalinqan - Executive Director (Till 20.05.2009)

1.11 Prior period comparatives

Prior year figures have been reclassified / re-grouped wherever necessary to conform to the current years classification.

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Mar 31, 2000

1. (a) No provision has been made in the accounts towards disputed Income Tax demands under appeal amounting to Rs.58.22 lakhs as the Company is advised that there are reasonable chances of success in the appeal. Hence, no provision is considered necessary as of date.

31 st March 2000 31 st March 1999 (Rs. in lakhs)

(b) Maximum liabilities under guarantees and indemnities given by the Company 40.00 40.00

(c) Contingent liability in respect of

i) Bills/Cheques discounted (since cleared in full) 11.51 12.23

ii) Other matters 32.00 32.00

iii) Suit filed in respect of property held under lease agreement amount not ascertainable.

iv) Uncalled liability in respect of partly paid 0.68 - shares held as investments.

(d) Claims against the company not acknowledged as debts in 74.71 74.21 respect of disputed sales tax demands of Rs.l 18.23 lakhs including Rs.43.52 lakhs stayed by courts. The company is advised that there are reasonable chances of successful outcome of appeals and no provision is considered necessary as of date.

(e) Estimated amount of contracts remaining to be executed on Capital Account and not provided for 11.53 4.25

(f) i) The Companys EPS Factory at Velappanchavadi, Chennai ceased to work due to labour unrest resulting in the termination of the employment of the workers in the factory with effect from 06.01.98. The conciliation proceedings are in progress. As the entry into the factory was prevented by the workers, the figures relating to value of assets and liabilities at the factory have been estimated based on the records and informations available after writing down appropriate amount for deterioration in quality of stocks and stores and these have been considered in the preparation of the accounts. However, no provision has been made in the accounts for liability, if any, arising out of termination of the employment of the workers as the amount is not ascertainable.

ii) Majority of the retrenched workers of EPS Thane factor/ have filed a case in the Labour Court against retrenchment which is pending. No provision has been made in the accounts towards liability if any, arising out of retrenchments as the amount is not ascertainable.

(g) No Provision has been made in the accounts towards gratuity liability of retrenched employees who have not accepted the settlement amounting to Rs.30.30 lakhs and this will be accounted on payment basis as and when claimed by the employees.

2. Pursuant to the Partnership Agreement entered into between the Company and Mettur Textiles Private Limited on Nth December 1 982, the Company brought into Common Stock of the partnership firm "Mettur Textiles" all assets and liabilities of its Textile and Thread Division with effect from 1 st January 1 983. Based on the Supplemental partnership Agreement entered into between the Company, Mettur Textiles Private Limited and Rukmini Investments Private Limited dated 3rd March 1983, Rukmini Investments Private Limited, became a Partner in the firm "Mettur Textiles" and the Company retired from the Partnership with effect from 28th February 1 983. The Profit/Loss of Mettur Textiles for the two months ended 28th February 1 983 has not yet been ascertained and hence not been dealt with in the accounts of the Company. A sum of Rs.56.88 lakhs is due from Mettur Textiles Private Limited and Rukmini Investments Private Limited after adjustment of the claims made by them. Suits have been filed for the recovery of the amount.

3. (a) Packing Credit and Cash Credit loans are secured by:

i) Hypothecation of stocks of Raw Materials, Work-in-Progress, Finished Goods, Stores and Spares, Trading Stocks and Book debts belonging to the Company.

ii) Second charge on all block assets to cover the entire working capital facilities of the Company.

(b) (i) Term Loans from Industrial Development Bank of India and Others are secured by hypothecation of machinery acquired from the loans.

(ii) Instalments falling due within one year Rs. 140.29 lakhs (1 999 : Rs. 1 71.78 lakhs).

(iii) Fixed Deposits maturing within one year is Rs. 117.22 lakhs. (1999 : Rs. 232.09 lakhs).

(c) Term Loans from Industrial Investment Bank of India Ltd., Industrial Development Bank of India are secured by First pari passu charge on the Fixed Assets of the Company excluding machinery bought out of loans from institutions and others. The Debentures issued in February 1991 have been fully redeemed during the year. Term Loans from Industrial Investment Bank of India Limited and Industrial Development Bank of India are guaranteed by two Directors.

4. Intercorporate Deposit for Rs.30.00 lakhs and Hire purchase instalments for Rs.3.41 lakhs have been guaranteed by Chairman and Managing Director.

5. In respect of long term Investments in Shin-Ho-Petro Chemical (I) Ltd., no provision is considered necessary for the diminution in the value as steps taken for the rejuvenation of the company have yielded results.

6. Pursuant to Note 1 (D) Excise Duty payable on finished goods held at the factories amounting to Rs.4.47 lakhs (1999 : Rs.6.27 lakhs) have been debited to expenditure and included in stock valuation. However, this accounting treatment has no impact on the loss for the year.

7. Letters have been sent to parties having debit/credit balances requesting them to confirm the balances due by/to them and replies have been received only from some of the parties.

8. Fixed deposits under cash and bank balances represent amount deposited in pursuance of Rule 3 A of the Companies (Acceptance of Deposits) Rules 1975.

9. Loans and advances include:

(i) Due by a Private Limited Company in which a Director of this Company is a Director / Member Rs.Ni! (1999 : Rs. 0.16 lakhs).

(ii) Due by an officer of the Company Rs.2.88 lakhs (1999 : Rs. 3.04 lakhs). Maximum amount due at any time during the year Rs.3.19 lakhs. (1999 : Rs. 3.10 lakhs)

10. Comparative figures for the previous year have been reclassified wherever necessary to conform to this years classification.