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A Oneindia Venture

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Sensex 84,929.36 +0.53%

Nifty 25,966.40 +0.58%

22k Gold ₹ 12,300 /gm

Notes to Accounts of Butterfly Gandhimathi Appliances Ltd.

Mar 31, 2025

3.13.2 Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of '' 10 per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company in proportion to the number of equity shares held by the shareholders, after distribution of all preferential amounts. However, no such preferential amounts exist currently.

Capital reserve

Capital reserve was created on forfeiture of shares as per statutory requirement.

Capital Redemption Reserve

Capital redemption reserve was created on Redemption of Preference Shares as per statutory requirement.

Retained Earnings

Retained earnings are the profits that the Company has earned till date, net-off less any transfers to general reserve, dividends or other distributions paid to shareholders.

Revaluation Surplus

Represents Net gains arising on the revaluation of the company''s properties (other than investment properties). On disposal of the asset, the balance of the revaluation reserve is transferred to retained earnings.

5.3 Assets Held for Sale

Non-current assets or disposal groups comprising of assets and liabilities are classified as ''held for sale'' when all the following criteria are met : (i) decision has been made to sell, (ii) the assets are available for immediate sale in its present condition, (iii) the assets are being actively marketed and (iv) sale has been agreed or is expected to be concluded within 12 month of the Balance sheet date.

Subsequently, such non-current assets and disposal groups classified as ''held for sale'' are measured as the lower of its carrying value and fair value less costs to sell. Non-current assets held for sale are not depreciated or amortised.

The company had decided to move from inhouse to outsourcing within some of the non-core activities and classified certain assets as "asset held for saleâ and consequently provided an impairment loss of '' 211.54 lakhs in FY 2023-24.Asset held for sale is disposed in 2024-25 and the WDV as on 31.3.2025 is Nil. The details of whereas as under:

The carrying amounts of trade receivables, trade payables, capital creditors, cash and cash equivalents, other bank balances, other financial assets and other financial liabilities (other than those specifically disclosed) are considered to be the same as their fair values, due to their short-term nature.

6.2 Fair Value Hierarchy

The fair value of financial instruments as referred to in note 6.1 above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

â¢ Level 1 - Quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

â¢ Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

â¢ Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

6.3 Valuation Technique used to determine Fair Value:

Specific valuation techniques used to value financial instruments include:

1. Use of quoted market prices for Listed instruments

2. Expected credit loss model valued by the independent valuer

7. Financial Risk Management

The Company is primarily exposed to fluctuation in Market risk, Credit risk and Liquidity risk. The Company has a risk management policy which addresses the risk associated with the financial asset and liabilities.

Risk management framework

The Company''s Board of Directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company has constituted a Risk Management Committee (RMC) for identification, evaluation and mitigation of operations, strategic and external risks. RMC has the overall responsibility for monitoring and recovering the Risk Management Plan and associated practices of the Company.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The RMC oversees how management monitors compliance with the company''s risk management policies and procedures and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

7.1 Market Risk

Market risk is the risk that changes in market prices - such as foreign exchange rates, interest rates and equity prices - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of investments. Thus, Company''s exposure to market risk is a function of investing and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Market risk comprises two types of risks.

7.1.1 Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit or Loss, other comprehensive income and equity.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Currently the Company follows a policy of hedging 100% of its trade payables. On an overall basis, the Company has hedged 85.2% of its foreign exchange exposure thus minimising the currency risk.

Sensitivity analysis of foreign currency risk for as estimated fluctuation of /- 5% to the outstanding foreign currency exposure is provided below:

7.1.2 Interest Rate Risk

The Company is exposed to short-term and long-term borrowings. Long-term borrowing''s interest rates are fixed and not subject to any interest rate risk. Short-term borrowings, being working capital loans, are subject to interest rate fluctuation based on the performance and external credit rating of the Company.

At the reporting date the interest rate profile of the Company''s interest - bearing financial instruments as follows:

Expected credit loss assessment

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Management believes that the unimpaired amounts that are past due are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk.

7.2 Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers, investment in mutual funds and cash and cash equivalents. The Company makes provision on trade receivables based on Expected Credit loss (ECL) method based on provision matrix.

Trade Receivables:

The Company has outstanding trade receivables amounting to '' 8,170.13 lakhs and '' 8,658.06 lakhs as of March 31, 2025, and March 31, 2024, respectively. Trade receivables are unsecured in nature, except to the extent of security deposits received from the distributors. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Default on account of Trade Receivables happens when the counterparty fails to make contractual payment when they fall due.

7.3 Liquidity Risk

Liquidity needs of the Company are monitored on the basis of monthly and yearly projections. The company''s principal sources of liquidity are cash and cash equivalents, cash generated from the operations and bank borrowings.

The Company manages the liquidity needs by continuously monitoring cash inflows and by maintaining adequate cash and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls.

Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues and repayment of loans arising during the normal course of business as of each reporting date. The Company meets its short-term liquidity requirements primarily through efficient working capital management and by accessing additional and alternative credit facilities available in the financial market. The Company has acceptances in line with supplier''s financing arrangements which might invoke liquidity risk as a result of liabilities being concentrated with few financial institutions instead of a diverse group of suppliers. The Company has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements.

The Company assesses long-term liquidity requirements on a periodical basis and manages them through internal accruals and bank borrowings.

8. Capital Management

Equity share capital and other equity are considered for the purpose of Company''s capital management. The Company manages its capital so as to safeguard its ability to continue as a going concern and to optimize returns to shareholders. The capital structure of the Company is based on management''s judgement of its strategic and day-to-day needs with a focus on total equity so as to maintain investor, creditors and market confidence. The management and the Board of Directors monitor the return on capital as well as the level of dividends to shareholders. The Company may take appropriate steps in order to maintain, or if necessary, adjust, its capital structure.

The Board of Directors seeks to maintain a balance between the higher returns that might be possible with higher levels of borrowings and the advantages and security afforded by a sound capital position.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''total equity''. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents and other bank balances. Total equity comprises all components of equity.

e) Company applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term.

f) The lease agreements do not impose any restrictions or covenants other than the security interests in the leased assets that are held by the lessor.

12. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 âEmployee Benefitsâ

12.1 General description of various defined employeeâs benefits schemes are as under:

a) Provident Fund:

The Company''s Provident Fund (defined contribution fund) is managed by Regional Provident Fund Commissioner. The Company pays fixed contribution to provident fund at pre-determined rate.

b) Gratuity:

Gratuity is a defined benefit plan, in respect of past services provided by the employees is quantified based on the actuarial valuation.

The scheme is funded by the Company and the liability is recognized on the basis of contribution payable to the insurer. Disclosure of information as required under Ind AS-19 have been made in accordance with the actuarial valuation.

b. The Company has been sanctioned a working capital facility of '' 10,500 Lakhs, by SBI Bank, valid upto February 13, 2026 and '' 1,500 Lakhs by IDBI valid upto July 1,2026. The outstanding balance as on March 31, 2025 - '' Nil (Previous Year - '' Nil). This facility is secured by way of a hypothecation of inventories, receivables and other current assets on pari-passu first charge basis both present & future. Further, it is secured by collateral property through equitable mortgage on factory land & buildings and other fixed assets including Plant & machinery along with Corporate Guarantee from Crompton Greaves Consumer Electricals Limited.

21. Code of Social Security, 2020

The date on which the Code of Social Security, 2020 ("the codeâ) relating to employee benefits during the employment and post-employment benefit will come into effect is yet to be notified and the related rules are yet to be finalized. The company will evaluate the code and its rules, assess the impact, if any, on account of the same once they become effective.

22. Additional Disclosures

Additional information and disclosures as required under Schedule III to the act to the extent applicable to the company has been disclosed.

(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 transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31, 2025.

(v) The Company has 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.

(vi) The Company has 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.

(vii) The Company has no 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 provisions of the Income Tax Act, 1961).

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(ix) The Company has neither declared nor paid any dividend during the year.

(x) Disclosure on number of layer of companies is not applicable as there are no such transactions.

(xi) There are no scheme of arrangements approved by the Competent authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the year.

(xii) The title deeds of all of the immovable properties included in Property, Plant and Equipment are held in the name of the Company.

(xiii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(xiv) There are no outstanding loans or advances in the nature of loans that are granted to Promoters, Directors, KMPs and the related parties.

23. Fig ures for the comparative period have been regrouped wherever necessary in conformity with the current period classification.

24. The Financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors at their meeting held on 13th May 2025.

Mar 31, 2024

3.14.2 Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of 110/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

3.14.5 There are no bonus shares issued, share issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date.

3.14.6 There are no shares reserved for issue under options and contracts/ commitments for the sale of shares/ disinvestment.

3.14.7 The company has transferred the unpaid or unclaimed dividend amount declared in August 2016 to the Investor Education and Protection Fund (IEPF) fund on October 21, 2023. This transfer was delayed by 10 days due to a technical error faced while filing the form on the Ministry of Corporate Affairs website.

Nature and purpose of reserves General Reserve

General reserve was created for declaration of dividends as per statutory requirement. Security Premium

Security Premium represents premium on preferential shares issued (net of issue expenses). Capital reserve

Capital reserve was created on forfeiture of shares as per statutory requirement.

Capital Redemption Reserve

Capital redemption reserve was created on Redemption of Preference Shares as per statutory requirement.

Retained Earnings

Retained earnings are the profits that the Company has earned till date, net-off any transfers to general reserve, dividends or other distributions paid to shareholders.

Revaluation Surplus

Gains/losses arising on the revaluation of the Company''s owned properties. On disposal of the asset, the balance of the revaluation reserve is transferred to retained earnings.

Note: Above contingent liabilities exclude the demands raised by the Central Excise Department on earlier assessment aggregating to 11,899.67 lakhs which have been allowed in favour of the Company by the CESTAT. The department has filed an appeal with the Honourable Supreme Court, which is pending disposal. Also, with regards to Customs, the appeal filed by the Company against a demand of 148.14 lakhs has been allowed by the Commissioner (Appeals) against which the department has filed an appeal with the CESTAT, which is pending disposal.

Notes:

1. The Company does not expect any reimbursements in respect of the above contingent liabilities.

2. It is not practicable to estimate the timing of cash outflows, if any, in respect of matters pending resolution of the arbitration/ appellate proceedings.

5.3 Assets Held for Sale

Non-current assets or disposal groups comprising of assets and liabilities are classified as âheld for sale'' when all the following criteria are met : (i) decision has been made to sell, (ii) the assets are available for immediate sale in its present condition, (iii) the assets are being actively marketed and (iv) sale has been agreed or is expected to be concluded within 12 month of the Balance sheet date.

Subsequently, such non-current assets and disposal groups classified as âheld for sale'' are measured as the lower of its carrying value and fair value less costs to sell. Non-current assets held for sale are not depreciated or amortised.

The company has decided to move from inhouse to outsourcing within some of the non-core activities and classified certain assets as âasset held for sale" and consequently provided an impairment loss of 1211.54 lakhs. The details of whereas as under:

6.2 Fair Value Hierarchy

The categories used are as follows:

â¢ Level 1 - Quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

â¢ Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices).

â¢ Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

6.3 Valuation Technique used to determine Fair Value:

Specific valuation techniques used to value financial instruments include:

1. Use of quoted market prices for Listed instruments

2. Expected credit loss model valued by the independent valuer

7. Financial Risk Management

Risk management framework

7.1.2 Interest Rate Risk

7.1 Market Risk

Market risk comprises two types of risks.

7.1.1 Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the Statement of Profit or Loss, other comprehensive income and equity.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Currently the Company follows a policy of hedging 100% of its trade payables. On an overall basis, the Company has hedged 52.58% of its foreign exchange exposure thus minimising the currency risk.

7.2 Credit Risk

Trade Receivables:

The Company has outstanding trade receivables amounting to 113,187.65 lakhs and 112,370.80 lakhs as of March 31, 2024, and March 31, 2023, respectively. Trade receivables are unsecured in nature, except to the extent of security deposits received from the distributors. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Default on account of Trade Receivables happens when the counterparty fails to make contractual payment when they fall due.

7.3 Liquidity Risk

The Company assesses long-term liquidity requirements on a periodical basis and manages them through internal accruals and bank borrowings.

The table below provides details regarding the contractual cash outflow for financial liabilities. The table has been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company is required to pay.

Expected credit loss assessment

8. Capital Management

The Company monitors capital using a ratio of âadjusted net debt'' to âtotal equity''. For this purpose, adjusted net debt is defined as total liabilities, comprising interest-bearing loans and borrowings, less cash and cash equivalents and other bank balances. Total equity comprises all components of equity.

e) Company applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term.

f) The lease agreements do not impose any restrictions or covenants other than the security interests in the leased assets that are held by the lessor.

12. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 âEmployee Benefitsâ12.1 General description of various defined employeeâs benefits schemes are as under:

a) Provident Fund:

The Company''s Provident Fund (defined contribution fund) is managed by Regional Provident Fund Commissioner. The Company pays fixed contribution to provident fund at pre-determined rate.

b) Gratuity:

Gratuity is a defined benefit plan, in respect of past services provided by the employees is quantified based on the actuarial valuation.

The summarized position of various defined benefits recognized in the Statement of Profit and Loss, Other Comprehensive Income (OCI) and Balance Sheet and other disclosures are as under:

b. The Company has been sanctioned a working capital facility of 110,500 Lakhs, by SBI Bank, valid upto January 14, 2025. The outstanding balance as on March 31,2024 - 1 Nil (Previous Year - 1 Nil). This facility is secured by way of a hypothecation of inventories, receivables and other current assets on pari-passu first charge basis both present & future. Further, it is secured by collateral property through equitable mortgage on factory land & buildings and other fixed assets including Plant & machinery along with Corporate Guarantee from Crompton Greaves Consumer Electricals Limited.

21. Code of Social Security, 2020

The date on which the Code of Social Security, 2020 (âthe code") relating to employee benefits during the employment and post-employment benefit will come into effect is yet to be notified and the related rules are yet to be finalized. The company will evaluate the code and its rules, assess the impact, if any, on account of the same once they become effective.

22. Additional Disclosures

Additional information and disclosures as required under Schedule III to the act to the extent applicable to the company has been disclosed.

(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 transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,2024.

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

(ix) The Company has neither declared nor paid any dividend during the year.

(x) Disclosure on number of layer of companies is not applicable as there are no such transactions.

(xi) There are no scheme of arrangements approved by the Competent authority in terms of Sections 230 to 237 of the Companies Act, 2013 during the year.

(xii) The title deeds of all of the immovable properties included in Property, Plant and Equipment are held in the name of the Company.

(xiii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(xiv) There are no outstanding loans or advances in the nature of loans that are granted to Promoters, Directors, KMPs and the related parties.

23. Figures for the comparative period have been regrouped wherever necessary in conformity with the current period classification.

24. The Financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors at their meeting held on May 14, 2024

Mar 31, 2023

Note: Above contingent liabilities exclude the demands raised by the Central Excise Department on earlier assessment aggregating to H1,899.67 lakhs which have been allowed in favour of the Company by the CESTAT. The department has filed an appeal with the Honourable Supreme Court, which is pending disposal. Also with regards to Customs, the appeal filed by the Company against a demand of Rs. 48.14 lakhs has been allowed by the Commissioner (Appeals) against which the department has filed an appeal with the CESTAT, which is pending disposal.

6.2 Fair Value Hierarchy

â¢ Level 1 - Quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

â¢ Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

â¢ Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

6.3 Valuation Technique used to determine Fair Value:

Specific valuation techniques used to value financial instruments include:

1. Use of quoted market prices for Listed instruments

2. Expected credit loss model valued by the independent valuer

7.1 Market Risk

Market risk is the risk of fluctuation in future cash flow of financial instruments due to change in market prices arising on account of currency risk and Interest rate risk.

7.1.1 Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss, other comprehensive income and equity.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Currently the Company follows a policy of hedging 100% of its trade payables. On an overall basis, the Company has hedged 57.69% of its foreign exchange exposure thus minimising the currency risk.

Amount in bracket represents additional cash outflow. Other amounts represent additional cash inflow.

7.1.2 Interest Rate Risk

Company is exposed to short term and long term borrowings. Long term borrowing''s interest rates are fixed and not subject to any interest rate risk. Short term borrowings being working capital loans are subject to interest rate fluctuation based on the performance and external credit rating of the Company

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. It principally arises from the Company''s Trade Receivables.

Trade Receivables:

The Company has outstanding trade receivables amounting to H 12,370.80 lakhs and H 9,276.74 lakhs as of March 31,2023 and March 31,2022, respectively. Trade receivables are unsecured in nature, except to the extent of security deposits received from the distributors. Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Default on account of Trade Receivables happens when the counterparty fails to make contractual payment when they fall due.

Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues and repayment of loans arising during the normal course of business as of each reporting date. The Company meets its short term liquidity requirements primarily through efficient working capital management and by accessing additional and alternative credit facilities available in the financial market. The Company has acceptances in line with supplier''s financing arrangements which might invoke liquidity risk as a result of liabilities being concentrated with few financial institutions instead of a diverse group of suppliers. The Company has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and longterm funding and liquidity management requirements.

The Company assesses long term liquidity requirements on a periodical basis and manage them through internal accruals and bank borrowings.

The Company''s capital comprises equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of Company''s capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The company does so by adjusting dividend paid to shareholders. The total capital as on March 31,2023 is H 28,564.30 Lakhs. (Previous Year: H 23,500.61 Lakhs).

This information has been given in respect of such vendors to the extent they could be treated as ''Micro and Small Enterprises'' on the basis of information available with the Company on which the Auditors have relied upon.

e) Company applied the exemption not to recognize right-of-use assets and liabilities for leases with less than 12 months of lease term.

f) The lease agreements do not impose any restrictions or covenants other than the security interests in the leased assets that are held by the lessor.

12. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 "Employee Benefits"

12.1 General description of various defined employee''s benefits schemes are as under:

a) Provident Fund:

The Company''s Provident Fund (defined contribution fund) is managed by Regional Provident Fund Commissioner. The Company pays fixed contribution to provident fund at pre-determined rate.

b) Gratuity:

Gratuity is a defined benefit plan, in respect of past services provided by the employees is quantified based on the actuarial valuation.

The summarized position of various defined benefits recognized in the Statement of Profit and Loss, Other Comprehensive Income (OCI) and Balance Sheet and other disclosures are as under:

a) Information about major customers

Since the Company primarily operates in one segment - Domestic appliances and there is no reportable Geographical segment either.

Contingent Liabilities and Contingent Assets Warranty:

Provision is made for estimated warranty in respect of products sold which are still under warranty period at the end of the reporting period

17. Disclosure in respect of Indian Accounting Standard 24 "Related Parties Disclosures"

Holding Company

Crompton Greaves Consumer Electricals Limited (CGCEL) (w.e.f. 30.03.22)

Fellow Subsidiaries (Subsidiary of CGCEL)

1. Pinnacles Lighting Project Private Limited

2. Nexuster Lighting Project Private Limited

Name of Post-employment benefit plans with whom transactions were carried out during the year

Butterfly Gandhimathi Appliances Limited Employees Group Gratuity Trust Fund

21. Code of Social Security, 2020

The date on which the Code of Social Security, 2020 ("the code") relating to employee benefits during the employment and postemployment benefit will come into effect is yet to be notified and the related rules are yet to be finalized. The company will evaluate

the code and its rules, assess the impact, if any on account of the same once they become effective.

22. Additional Disclosures

Additional information and disclosures as required under Schedule III to the act to the extent applicable to the company has been

disclosed.

(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 transactions with companies struck off.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with Registrar of Companies beyond the statutory period.

(iv) The Company has not traded or invested in Crypto currency or Virtual Currency during the year ended March 31,2023.

(viii) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

23. Figu res for the comparative period have been regrouped wherever necessary in conformity with current period classification.

24. The Financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of

Directors at their meeting held on 12th May 2023

Mar 31, 2022

7. Financial Risk Management

7.1 Market Risk

Market risk is the risk of fluctuation in future cash flow of financial instruments due to change in market prices arising on account of currency risk and Interest rate risk.

7.1.1 Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss, other comprehensive income and equity.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Currently the Company follows a policy of hedging 100% of its trade payables. On an overall basis, the Company has hedged 57.05% of its foreign exchange exposure thus minimising the currency risk.

7.1.2 Interest Rate Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. It principally arises from the Company''s Trade Receivables.

Trade Receivables:

The Company has outstanding trade receivables amounting to '' 9,276.74 lakhs and '' 7,436.05 lakhs as of March 31, 2022 and March 31, 2021, respectively. Trade receivables are unsecured in nature, except to the extent of security deposits received from the distributors. Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. Default on account of Trade Receivables happens when the counterparty fails to make contractual payment when they fall due.

Credit risk is managed by the Company by continuous monitoring of overdue receivables and also by making adequate provision towards expected credit loss in the books of account as per the simplified approach stated in the accounting policy. With respect to retention money no credit risk is estimated as per terms of the arrangement and accordingly management has not provided for credit loss for the retention money.

7.3 Liquidity Risk

Short term liquidity requirements consist mainly of sundry creditors, expense payable, employee dues and repayment of loans arising during the normal course of business as of each reporting date. The Company meets its short term liquidity requirements primarily through efficient working capital management and by accessing additional and alternative credit facilities available in the financial market. The Company has acceptances in line with supplier''s financing arrangements which might invoke liquidity risk as a result of liabilities being concentrated with few financial institutions instead of a diverse group of suppliers. The Company has established an appropriate liquidity risk management framework for the management of the Company''s short, medium and long-term funding and liquidity management requirements.

The Company assesses long term liquidity requirements on a periodical basis and manage them through internal accruals and bank borrowings.

8. Capital Management

The Company''s capital comprises equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of Company''s capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The company does so by adjusting dividend paid to shareholders. The total capital as on March 31, 2022 is '' 23,500.61 Lakhs. (Previous Year: '' 22,399.48 Lakhs).

d) The Company has committed to leases of Plant & Machinery which will commence in financial year 2022-23 having monthly lease payments of '' 10.44 Lakhs and security deposit & advance rentals made for such leases is '' 102.10 Lakhs.

e) The lease agreements do not impose any restrictions or covenants other than the security interests in the leased assets that are held by the lessor

12. Disclosure in respect of Indian Accounting Standard (Ind AS)-19 "Employee Benefits"

12.1 General description of various defined employee''s benefits schemes are as under:

a) Provident Fund:

The Company''s Provident Fund (defined contribution fund) is managed by Regional Provident Fund Commissioner. The Company pays fixed contribution to provident fund at pre-determined rate.

b) Gratuity:

Gratuity is a defined benefit plan, in respect of past services provided by the employees is quantified based on the actuarial valuation.

21. Code of Social Security, 2020

The date on which the Code of Social Security, 2020 ("the code") relating to employee benefits during the employment and post-employment benefit will come into effect is yet to be notified and the related rules are yet to be finalized. The company will evaluate the code and its rules, assess the impact, if any on account of the same once they become effective

22. Figures for the comparative period have been regrouped wherever necessary in conformity with current period classification.

23. The Financial statements were reviewed and recommended by the Audit Committee and has been approved by the Board of Directors at their meeting held on 11^th May 2022.

Mar 31, 2018

* Tax payable under the normal provisions is Nil for the year ended 31.03.2018 after setting of the unabsorbed accumulated losses. Hence reconciliation of effective tax rate under normal tax computation does not arise.

** As the Company is liable to pay tax under section 115JB of the Income Tax Act 1961. The effective tax rate reconciliation is provided as per the rate applicable for MAT.

1.1 Terms / Rights attached to Equity Shares

The Company has only one class of equity shares having a par value of Rs..10/- per share. The holders of the equity shares are entitled to receive dividends as declared from time to time, and are entitled to voting rights proportionate to their share holding at the meetings of shareholders.

Terms of Payment:

i. Term Loan from Banks (including vehicle loans) are repayable over a period of 3 to 6 years.

ii. Term Loan from Others (including vehicle loans) are repayable over a period of 5 to 15 years.

Security Provided:

a. Term Loan from Banks are Secured

i. By first charge by way of hypothecation of specific Plant and Machinery and Other Fixed Assets / Vehicles acquired out of loan and Equitable Mortgage of certain Land and Building of the Company at Pudupakkam.

ii. Retention money held by Tamil Nadu Civil Supplies corporation (TNCSC) and collateral security of Land and Structure thereon at Pudupakkam.

iii. Personal Guarantee of the Promoter Directors.

b. Other Term Loans:

a. Vehicle Loans are Secured by hypothecation of vehicles purchased out of such loan.

b. Other Term Loans are Secured by Equitable Mortgage of Undivided Land and office complex Building at Egattur.

2.1 Secured by hypothecation by way of first charge on Inventories, book debts, present and future excluding Retention Money receivable from Tamil Nadu Civil Supplies Corporation (TNCSC) and collateral paripassu charge of Land and Buildings, the title deeds of which are in the course of transfer in the Companyâs name and also by the paripassu second charge on other Fixed Assets of the Company at Pudupakkam along with personal Guarantee of Promoter Directors.

3.1 Details with respect to Related Parties details are disclosed in note no 45

3.2 No interest due on these outstandings under MSME Act, 2006.

4 - Corporate Information:

Gandhimathi Appliances Limitedâ, was originally incorporated as Private Limited Company on 24th February 1986 and was converted into a Public Limited Company on 25th April 1990. The name of the Company was changed to âButterfly Gandhimathi Appliances Limitedâ (BGMAL), with effect from 25th October 2011. BGMAL is listed with Bombay Stock Exchange Limited (BSE) and National Stock Exchange Limited (NSE). BGMAL is involved in manufacturing and Trading of a wide range of domestic kitchen and electrical appliances under the brand âBUTTERFLYâ

5 - Transition to IND AS

These are the Companyâs first Financial Statements prepared in accordance with Ind AS. The Accounting Policies set out in note 34 have been applied in preparing the Financial Statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (The Companyâs date of transition).

5.1 - In preparing its first Ind AS financial statements in accordance with Ind AS 101 First-time Adoption of Indian Accounting Standards, the Company has applied the relevant mandatory exceptions and certain optional exemptions from full retrospective application of Ind AS. Material optional exemptions applied by the Company and applicable mandatory exceptions for the Company are as follows:

5.2 - A: Ind AS optional exemptions and mandatory exceptions availed

1. Deemed cost of Property Plant and Equipment

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 as required to be made as per para 10 of Ind AS 101.

The Company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

2. Evaluation of arrangements in the nature of Lease

Ind AS 101 allows an entity to determine whether an arrangement existing at the date of transition to Ind ASs contains a lease on the basis of facts and circumstances existing at the date of transition to Ind AS, except where the effect is expected to be not material. The Company has elected to determine whether the arrangements existing contains a lease on the basis of the facts existing on transition date.

3. Revenue from Contracts with Customers

A first-time adopter is not required to restate contracts that were completed before the earliest period presented. A completed contract is a contract for which the entity has transferred all of the goods or services identified in accordance with previous GAAP. Accordingly the Company has not restated the contracts completed in accordance with the previous GAAP as at the transition date.

5.2 - B: Ind AS mandatory exceptions

1. Estimates

An entityâs estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in Mutual fund carried at FVPL

- Impairment of financial assets based on Expected Credit Loss model.

2. Classification and measurement of Financial Assets

As required under Ind AS 101, the Company has assessed the classification and measurement of financial assets based on the facts and circumstances that existed at the date of transition to Ind AS.

6 - Disclosures in respect of Ind AS 107 - Financial Instruments

6.1 - Financial Instruments by Categories

The carrying value and fair value of financial instruments by categories were as follows:

6.2 - Fair Value Hierarchy

- Level 1 - Quoted prices (unadjusted) in active markets for identical Assets or Liabilities.

- Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3 - Inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).

6.3 - Valuation Technique used to determine Fair Value:

Specific valuation techniques used to value financial instruments include:

- Use of quoted market prices for Listed instruments

7 - Financial Risk Management

7.1 - Market Risk

Market risk is the risk of fluctuation in future cash flow of financial instruments due to change in market prices arising on account of currency risk and Interest rate risk.

7.1.1 - Foreign Currency Exchange Rate Risk

The fluctuation in foreign currency exchange rates may have potential impact on the statement of profit or loss and other comprehensive income and equity.

The Company evaluates the impact of foreign exchange rate fluctuations by assessing its exposure to exchange rate risks. Currently the Company follows a policy of hedging 100% of its trade payables. On an overall basis, the Company has hedged 90% of its foreign exchange exposure thus minimising the currency risk.

Sensitivity analysis of foreign currency risk for as estimated fluctuation of /- 5% to the outstanding foreign currency exposure is provided below.

Amount in bracket represents additional cash outflow. Other amounts represents additional cash inflow.

7.1.2 - Interest Rate Risk

Company is exposed to short term and long term borrowings. Long term borrowingâs interest rates are fixed and not subject to any interest rate risk. Short term borrowings being working capital loans are subject to interest rate fluctuation based on the performance and external credit rating of the Company

At the reporting date the interest rate profile of the Companyâs interest - bearing financial instruments as follows:

The interest expenses and impact on account of Increase/decrease of 100 basis points in interest rates at the balance sheet date is provided in table below:

7.2 - Credit Risk

Credit risk refers to the risk of default on its obligation by the counterparty resulting in a financial loss. It principally arises from the Companyâs Trade Receivables.

Trade Receivables

The Company has outstanding trade receivables amounting to Rs. 13,055.76 lakhs and Rs. 8,796.10 lakhs as of March 31, 2018 and March 31, 2017, respectively.

Trade receivables are unsecured in nature, except to the extent of security deposits received from the distributors. Companyâs exposure to credit risk is influenced mainly by the individual characteristics of each customer. The Company is not exposed to concentration of credit risk to any one single customer. Default on account of Trade Receivables happens when the counterparty fails to make contractual payment when they fall due.

7.3 - Liquidity Risk

Liquidity needs of the Company are monitored on the basis of monthly and yearly projections. The Companyâs principal sources of liquidity are cash and cash equivalents, cash generated from the operations and bank borrowings.

We manage our liquidity needs by continuously monitoring cash inflows and by maintaining adequate cash and cash equivalents. Net cash requirements are compared to available cash in order to determine any shortfalls.

We assess long term liquidity requirements on a periodical basis and manage them through internal accruals and bank borrowings.

8 - Capital Management

The Companyâs capital comprises equity share capital, retained earnings and other equity attributable to equity holders. The primary objective of Companyâs capital management is to maximize shareholders value. The Company manages its capital and makes adjustment to it in light of the changes in economic and market conditions. The total capital as on March 31, 2018 is Rs. 18,021 Lakhs. (Previous Year: Rs. 17,516 Lakhs ).

9 - Disclosure in respect of Indian Accounting Standard (Ind AS)-19 âEmployee Benefitsâ

9.1 - General description of various defined employeeâs benefits schemes are as under:

a) Provident Fund:

The Companyâs Provident Fund (defined contribution fund) is managed by Regional Provident Fund Commissioner. The Company pays fixed contribution to provident fund at pre-determined rate.

b) Gratuity:

Gratuity is a defined benefit plan, in respect of past services provided by the employees is quantified based on the actuarial valuation.

9.2 The summarized position of various defined benefits recognized in the Statement of Profit and Loss, Other Comprehensive Income(OCI) and Balance Sheet and other disclosures are as under:

10 - Disclosure in respect of Indian Accounting standard (Ind AS)-108: âOperating Segmentsâ

Since the Company primarily operates in one segment -Domestic appliances and there is no reportable Geographical segment either.

The Company has not derived revenues from any customer which amount to 10 per cent or more of Companyâs revenues.

11 - Disclosure in respect of Indian Accounting Standard (Ind AS)-33 âEarnings Per Share(EPS)â

a) Basic EPS

The earnings and weighted average number of ordinary shares used in the calculation of Basic EPS is as follows:

b) Diluted EPS

The earnings and weighted average number of ordinary shares used in the calculation of Diluted EPS is as follows:

12 - Disclosure in respect of Indian Accounting Standard (Ind AS)-37 âProvisions, Contingent Liabilities and Contingent Assetsâ Warranty:

Provision is made for estimated warranty in respect of products sold which are still under warranty period at the end of the reporting period.

13 - Disclosure in respect of Indian Accounting Standard 24 âRelated Parties Disclosuresâ

Key Managerial Personnel

Mr.V.M.Lakshminarayanan, Chairman & Managing Director

Mr.V.M.Balasubramaniam, Vice-Chairman & Managing Director

Mr.V.M.Seshadri, Managing Director

Mr.V.M.Gangadharam, Executive Director

Mr.V.M.Kumaresan, Executive Director-Technical

Mr.K.S. Ramakrishnan - Company Secretary & General Manager (Legal) (CS)

Mr. Prakash Iyer - Chief Executive Officer (CEO)

Mr. R. Nagarajan - Chief Financial Officer (CFO)

Relatives of Key Managerial Personnel:

Mr. V.M.L.Karthikeyan Mr. G.Viswanathan Mr. V.M.L.Senthilnathan Mr. V.M.L.Ganesan Mr. V.M.G.Mayuresan

13.1 - Related Parties:

Enterprises owned or significantly influenced by Key Management Personnel or their Relatives

LLM Appliances Private Limited

V.M.Chettiar & Sons LLP

Butterfly Quality Centre Private Limited

Butterfly Industrial Designs Private Limited

Swaminathan Enterprises Private Limited

Sivagurunathan Industries

East West Combined Industries

Mrinalini Industries

Bean and Leaf Beverages Private Limited H&S Supply Chain Solution Private Limited Chrysalis Home Needs Private Limited Wintronix (HK) Holdings Limited

During the year Company spent Rs. 30.19 Lakhs towards CSR obligations of an earlier financial year.

14 - Disclosure in respect of Indian Accounting Standard (Ind AS)-8 âAccounting Policies, Changes in Accounting Estimates and Errorsâ

Consequent to the Order passed under the provisions of Chapter XIX - A of the Income-tax Act, 1961, income amounting to Rs.. 2.06 crores and tax liability amounting to Rs.. 5.72 crores (including interest element of Rs.. 1.90 crores) pertaining to earlier years to earliest reporting period presented had been reckoned in Retained Earnings as at April 01, 2016 and Rs.. 0.15 crores relating to Interest for the f.y. 2016-17 is reckoned under Finance cost in that financial year.

(i) Investments in Quoted Instruments:

Under the previous GAAP, investments in mutual funds were classified as long-term investments or current investments based on the intended holding period. Long-term investments were carried at cost less provision for permanent diminution in the value of such investments. Current investments were carried at lower of cost and market value.

Under Ind AS, these investments are required to be measured at fair value. The resulting fair value changes subsequently accounted in the statement of profit or loss for the year ended 31 March 2017. Consequent to the above, the total equity as at 31 March 2017 increased by Rs. 0.08 Lakhs and profit for the year ended 31 March 2017 increased by Rs. 0.08 Lakhs.

(ii) Trade Receivables:

Under the previous GAAP, Provisions for bad and doubtful debts made only when the Company incurred credit loss.

Under Ind AS, Trade Receivables are recognized initially at fair value and subsequently measured at amortized cost using effective Interest method, less allowance for Impairment. Expected credit loss has been provided based on the simplified approach. Amount of provisions made over and above the existing provisions are Rs. 260.30 Lakhs and Rs. 16.09 Lakhs as on 1^st April 2016 and 31^st March 2017 respectively.

(iii) Retention Receivables:

The Company has retention receivables from its debtors which are interest-free. Under Ind AS, these receivables being Financial Assets have been stated at Fair value on Initial Recognition and subsequently measured at Amortized Cost using Effective rate of Interest. Difference between transaction value and amortized cost has been adjusted in the carrying value of such balances and accounted as prepayment Rs. 125.07 Lakhs as on April 01, 2016 & Rs. 73.16 Lakhs which will be unwound over the period of retention.

(iv) Deferred Tax:

Under previous GAAP, deferred tax asset/liabilities were recognised on temporary timing difference between taxable income and accounting income.

Under Ind AS, Company has recognized Deferred Tax Assets/ Liability being the difference between tax base and carrying value and also Unutilised MAT Credit entitlements has been regrouped as per requirement of IND AS . The Company has created Deferred Tax Liability for difference in carrying value of PPE between books and Income tax and Deferred Tax Assets in case of Re-measurement of Defined Benefit Obligations, losses carried forward.

Due to the Ind AS adjustments as at the date of transition and for the year ended 31 March 2017, deferred tax asset created for Rs. 274.17 Lakhs (1 April 2016 - Rs. 260.10 Lakhs). As a result, total equity increased by Rs. 274.17 Lakhs as at 31 March 2017 (1 April 2016 - Rs. 260.10 Lakhs)

(v) Proposed Dividend:

Under previous GAAP, proposed dividend is recognized as liability in the period to which it relates. Under Ind AS, Dividend is adjusted directly in equity in the period in which it is paid, irrespective of the period to which it relates. Accordingly, an amount of 268.99 Lakhs towards proposed dividend (including Dividend distribution tax) recognised as liability in F.Y. 2015-16 as per previous GAAP has been reversed & the same is adjusted in Equity in the F.Y. 2016-17, when distributed.

(vi) Long Term Borrowings:

Under previous GAAP, the Company recognized the processing fee incurred for availing term loan as an expense, in the respective Financial Years.

Under Ind AS, the issue expenses have been net-off against the Loan proceeds and the Effective Interest rates (EIR) have been recomputed based on the cash flows. Interest has been recomputed in line with the Effective Interest rates and accounted under Ind AS. The Processing fee adjusted against retained earnings Rs.. 20.24 Lakhs in 2016-17 (01 April, 2016 - Rs.. 24.93 Lakhs). Additional Interest expenses recognized under Ind AS, applying EIR for the F.Y. 2016-17 - Rs.. 33.50 Lakhs.

(vii) Other Equity:

Note on Ind AS Adjustments which impact the Equity, are provided separately under the respective heads.

(viii) Provisions:

Provisions for warranty have been recomputed by revisiting the assumptions thereupon, the impact of same in the retained earnings is Rs. 148.24 Lakhs for the FY 2016-17 (01 April 2016 - Rs. 488.37 Lakhs).

15.1 - Explanations for Reconciliation of Statement of Profit & Loss as previously reported under IGAAP to IND AS

(i) Other Income:

Under the IND AS, financial assets and financial liabilities are measured at fair value on transition date; Impact of subsequent re-measurement of financial asset using effective interest rate is included under Other Income amounting to 108.93 Lakhs

(ii) Employee Benefits/OCI:

As per previous GAAP, gains and losses on re-measurement of net defined benefit liability are recognized in Statement of Profit & Loss, whereas as per Ind AS, the same shall be recognized in Other Comprehensive Income, by accumulating in a separate component of Equity. An amount of 42.64 Lakhs has been recognized as gain on re-measurement of net defined benefit liability for the F.Y. 2016-17.

(iii) Finance Cost

Under the IND AS, financial assets and financial liabilities are measured at fair value on transition date; Impact of subsequent measurement of financial liability using effective interest rate and unwinding of discount on financial asset is included under finance cost of Rs. 121.22 Lakhs

(iv) Other Expenses

Impact on account of expected credit loss, warranty and cash discount amounting to Rs. 413.88 Lakhs grouped under other expenses.

16 - The previous yearâs figures have been regrouped and reclassified wherever necessary to conform to the current year classification / presentation.

Mar 31, 2017

1. DISCLOSURE ON RELATED PARTY TRANSACTION

2. Key Management Personnel Mr.V.M.Lakshminarayanan, Chairman & Managing Director Mr.V.M.Balasubramaniam, Vice-Chairman & Managing Director Mr.V.M.Seshadri, Managing Director Mr.V.M.Gangadharam, ExecutiveDirector Mr.V.M.Kumaresan, Executive Director-Technical Mr.K.S. Ramakrishnan - Company Secretary &

General Manager (Legal)

Mr. Prakash Iyer - Chief Executive Officer Mr. R. Nagarajan - Chief Financial Officer

3. Enterprises in which key management LLM Appliances Private Limited personnel and their Relatives have V.M.Chettiar & Sons LLP Significant influence Butterfly Quality Centre Private Limited

Butterfly Industrial Designs Private Limited Swaminathan Enterprises Private Limited Sivagurunathan Industries East West Combined Industries Mrinalini Industries

Bean and Leaf Beverages Private Limited H&S Supply Chain Solution Private Limited Chrysalis Home Needs Private Limited

4. Relatives of Key Management Personnel Mr.V.M.L.Karthikeyan

Mr.V.M.G.Viswanathan

Mr.V.M.L.Senthilnathan

Mr.V.M.L.Ganesan

Mr.V.M.G.Mayuresan

Finance, Department of Economic Affairs No. SO. 340E, dated the 8^th November 2016.

5. SEGMENT INFORMATION IN ACCORDANCE WITH AS17 ISSUED BY ICAI.

The Company operates in only one segment viz. Domestic Appliances.

For the purpose of this clause the term "Specified Bank Notes" shall have the same meaning provided in the notification of the Govt of India, in the Ministry of

6. DURING THE YEAR NO PROVISION MADE FOR CSR ACTIVITY AND ?. 7.30 LAKHS WAS SPENT AGAINST THE LAST YEAR PROVISION OF ?. 58.10 LAKHS.

7. PREVIOUS YEAR''S FIGURES HAVE BEEN REGROUPED AND RECLASSIFIED WHEREVER NECESSARY TO CONFORM TO THIS YEAR''S CLASSIFICATION.

Mar 31, 2016

1. Excise duty

CENVAT credit/Service Tax credit on inputs and other capital goods are accounted fully and to the extent the sum availed is adjusted towards payment of excise duty on dispatches leaving the unutilized balance being carried forward to subsequent year and kept under Loans and Advances.

2. Taxes on Income:

Current tax is determined as the amount of Tax payable in respect of Taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognized, subject to the consideration of prudence, on timing difference, being the difference between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of unabsorbed depreciation and unabsorbed losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realize such assets. Other deferred tax assets are recognized if there is reasonable certainty that there will be sufficient future taxable income available to realize such assets.

3. Foreign Currency transactions

Transactions in foreign currency are recorded at exchange rate prevailing at the time of the transactions and exchange difference arising from foreign currency transaction are dealt within the Profit and Loss Statement and capitalized where they relate to the Fixed Assets. Current Assets and Liabilities at the year end are being converted at closing rates and exchange gains / losses are dealt within the Profit and Loss Statement, as per AS 11.

4. Segment Information in accordance with AS17 issued by ICAI.

The Company operates in only one segment viz. Domestic Appliances.

5. Previous year''s figures have been regrouped and reclassified wherever necessary to conform to this year''s classification.

Mar 31, 2015

NOTE 1

Rs. In Lakhs

CONTINGENT LIABILITIES AND COMMITMENTS As at 31st As at 31st (TO THE EXTENT NOT PROVIDED FOR) March, 2015 March, 2014

(i) CONTINGENT LIABILITIES

1 Claim against the Company not acknowledged as debts

Central Excise 982.09 2,158.57

Sales Tax 115.95 476.92

Employee State Insurance matter. 9.35 2.30

Claims on merged erstwhile Gangadharam Appliances Limited not acknowledged as debts comprising of

Central Excise 24.00 24.00

Employee State Insurance 16.70 12.24

Labour matter 47.08 43.67

2 Guarantee

Liabilities to banks on counter Guarantees given by the Company. 1,096.00 443.40

Guarantees issued to Commercial Tax Department 30.87 6.00

Guarantees issued to Central Excise Department 3.00 -

3 Other money for which the Company is contingently liable

In term of the Memorandum of Compromise executed on 1.11.2000 by the Company Amount Not Amount Not and M/s. L.G.Varadarajulu & others, determinable determinable Coimbatore in the matter of patents/ designs dispute in the manufacture of Table Top Wet Grinders, the Company is liable to pay to the latter such damages as may be determined by the Court, in the event of the suit C.S.No.613 of 1999 pending in the High Court of judicature at Chennai being decreed in their favour.

(ii) COMMITMENTS

Estimated amount of contracts remaining 87.22 72.33 to be executed on capital account and not provided for

2. EXCISE DUTY:

CENVAT credit/Service Tax credit on inputs and other capital goods are accounted fully and to the extent the sum availed is adjust- ed towards payment of excise duty on despatches leaving the unutilised balance being carried forward to subsequent year and kept under Loans and Advances.

3. TAXES ON INCOME:

Current tax is determined as the amount of Tax payable in respect of Taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised, subject to the consideration of prudence, on timing difference, being the difference between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of unabsorbed depreciation and unabsorbed losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Other deferred tax assets are recognized if there is rea- sonable certainty that there will be sufficient future taxable income available to realise such assets.

4. FOREIGN CURRENCY TRANSACTIONS:

Transactions in foreign currency are recorded at exchange rate prevailing at the time of the transactions and exchange difference arising from foreign currency transaction are dealt within the Profit and Loss Statement and capitalized where they relate to the Fixed Assets. Current Assets and Liabilities at the year end are being converted at closing rates and exchange gains / losses are dealt within the Profit and Loss Statement, as per AS 11.

5. The Company is not liable for Corporate Social Responsibility (CSR) expenses as required under section 135 of Companies Act, 2015.

6. Previous year's figures have been regrouped and reclassified wherever necessary to conform to this year's classification.

Mar 31, 2013

1. Excise duty:

CENVAT credit/Service Tax credit for Excise Duty on inputs and other capital goods is accounted fully and to the extent the sum availed is adjusted towards payment of excise duty on despatches leaving the unutilised balance being carried forward to subsequent year and kept under Loans and Advances.

2. Trade Receivables and Loans and advances:

Sundry Debtors and Loans and Advances are stated after making adequate provisions for doubtful balances. In the evaluation of the Managing Director, Sundry Debtors and Loans and Advances have the value on realisation in the ordinary course of business at least equal to the amount at which they are stated.

3. Disclosure under the Micro Small and Medium Enterprises Development Act, 2006:

The particulars required to be disclosed under the Micro Small and Medium Enterprises Development Act, 2006 relating to unpaid balances, interest payable thereon to such small scale industries as defined in the said Act could not be disclosed for want of information on the status of those sundry creditors.

4.Taxation:

Current tax is determined as the amount of Tax payable in respect of taxable income for the year determined in accordance with the provisions of the Income Tax Act, 1961.

Deferred tax is recognised, subject to the consideration of prudence, on timing difference, being the difference between the taxable incomes and accounting income that originate in one period and are capable of reversal in one or more subsequent periods.

Deferred tax assets in respect of unabsorbed depreciation and unabsorbed losses are recognized only if there is virtual certainty that there will be sufficient future taxable income available to realise such assets. Other deferred tax assets are recognized if there is reasonable certainty that there will be sufficient future taxable income available to realise such assets.

5. Foreign Currency transactions:

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

6. In the current year, the Company with necessary statutory approvals raised Share Capital on preferential basis received from Reliance Alternative Investments Fund and issued 24,51,000 equity shares off. 10/- each at a premium of Rs..398 per share aggregating Rs..100 Crores and eight thousand.

7. Disclosure on Related Party Transaction

1. Key Management Personnel Mr.V.M.Lakshminarayanan,

Chairman & Managing Director Mr.V.M.Balasubramaniam, Director Mr.V.M.Seshadri, Managing Director Mr.V.M.Gangadharam, Executive Director Mr.V.M.Kumaresan, Executive Director-Technical

2. Enterprises in which key management personnel and their Relatives have Significant influence

LLM Appliances Limited Butterfly Constructions Limited Butterfly Marketing Private Limited V.M. Chettiar& Sons India Private Limited Butterfly Quality Center Private Limited Chrysalis Home Needs Private Limited Swaminathan Enterprises Private Limited Sivagurunathan Industries Butterfly Home Appliances East West Combined Industries Vetrivel Transport Mrinalini Industries

3. Relatives of Key Management Personnel Mr.V.M.L.Karthikeyan

Mr.V.M.S.Namasivayam Mr.V.M.GViswanathan Mr.V.M.L.Senthilnathan Mr.V.M.S.Kumaraguru Mr.V.M.L.Ganesan Mr.V.M.S.Selvamuthukumaran Mr.V.M.GMayuresan Mrs.A.Gandhimathi Mr.RElansudar

8. Segment Information in accordance with AS17 issued by ICAI. The Company operates in only one segment viz. Domestic Appliances.

9. The previous year figures have been regrouped and reclassified wherever necessary.

Mar 31, 2012

Notes:

1. Vehicles include Assets acquired on "Hire Purchase"

2. Freehold Land includes Rs. 10,00,000/- and Freehold Buildings include Rs. 15,37,686/- in respect of which the transfer of title deeds to the name of the company is pending

3. Usage Right of Trade Marks represents assignment of trade marks for future usage and the amount written off during the year on account of amortization by charging off to Profit and Loss account as Usage right of Trade Marks.

4. Additions to Plant & Machinery includes machineries purchased under term loan assistance from banks and Hire Purchase/ Finance Companies.

5. Additions in Freehold Land and Building includes the Leasehold Land and Building held by the Company as on 31.03.2011 acquired during the year.

Note 1

CONTIGENT LIABILITIES

AND COMMITMENTS As at As at (TO THE EXTENT NOT 31st March, 31st March, PROVIDED FOR) 2012 2011

CONTIGENT LIABILITIES

1 Claim against the Company not

acknowledged as debts Rs. In lakhs Rs. In lakhs

a Claim against the Company under litigation against which Bank Guarantee has been provided 7.26 7.26

b Central Excise demand on merged erstwhile Gangadhram Appliances Limited under appeal disputed 22.94 -

c Claim by Employees State Insurance Corporation towards ESI contribution/interest /damages on merged

erstwhile Gangadharam Appliances Limited disputed. 12.24 -

d Claim by Employees State Insurance Corporation towards ESI contribution on Job work parties 9.56 -

e Claim by Employees Provident Fund authorities towards damages on merged erstwhile Gangadharam Appliances Limited 21.66 -

f Claim against the Company before Labour Court by terminated employees of the Company / merged erstwhile Gangadharam Appliances Limited disputed. 43.67 -

2 Guarantee

Liabilities to bank on Counter Guarantee towards supply/performance to Tamilnadu Civil Supplies Corporation and Indian Oil Corporation 688.80 15.00

3 Other money for which the Company is contingently liable

In term of the Memorandum of Compromise executed on 1.11.2000 by the Company and M/s. L.G.Varadarajulu & others, Coimbatore in the matter of patents/designs dispute in the manu facture of Table Top Wet Grinders, the Company is liable to pay to the latter such damages as may be determined by the Court, in the event of the suit C.S.No.613 of 1999 pending in the High Court of judicature at Madras being Amount Not Amount Not decreed in their favour. determinable determinable

COMMITMENTS NOT PROVIDED FOR

Estimated amount of contracts remaining to be executed on capital account and not provided for 259.36 -

Note: 2

OTHER NOTES TO FTOANCIAL'STATEMENTS

1. Significant Accounting Policies

(Forming part of the Financial Statements for the year ended on 31st March, 2012)

(i) Basis for Preparation of accounts: ,

The Accounts have been prepared to comply in all material aspects with applicable accounting principles in India, the applicable Accounting Standard notified under Section 211 (3C) of the Companies Act, 1956 and the Financial Statements have been prepared on the historical cost convention and in accordance with normally accepted accounting principles.

All the Assets and Liabilities have been classified as current and non-current as per criteria set out in Revised Schedule VI, to the Companies Act, 1956 for preparation and presentation of financial statements of the Company under report. The adoption of revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements. However, it has significant impact on presentation and disclosures made in the financial statements. The Company has also re-classified the previous year figures in accordance with the requirements applicable in the current year. .

(ii) Fixed Assets and Depreciation:

Fixed Assets are capitalized at acquisition cost, including directly attributable cost of bringing the ;

assets to their working condition for the intended use less CENVAT Credits.

Depreciation on Fixed Assets has been provided on the basis of straight line method at the rates specified in Schedule XIV to the Companies Act, 1956. In respect of additions/deductions made during the year, depreciation is charged on pro-rata basis from the day of addition/up to the date of deletions in the financial year.

Usage Right of Trade Marks are amortized over the period of Usage.

(iii) Inventories:

Inventories are stated at lower of cost or net realizable value. Cost includes all direct costs and other applicable manufacturing overheads and in ascertaining the cost, FIFO method is adopted.

(iv) Revenue recognition:

Revenue in respect of sale of products is recognized at the point of dispatch to customers. Sales also includes products which are manufactured through third party on Contract basis, which represents invoiced :

value of goods including excise duty and are net of sales tax, returns and inter-branch transfers. The excise duty is separately disclosed and deducted from sales. Export sales are accounted at the prevailing rate of exchange as on the date of invoicing. The difference in the rate of exchange, if any, is accounted at the time of realization.

(v) Impairment of Assets: '

As on the Balance sheet date, the Company's assets net of accumulated depreciation is not less than the recoverable amount of those assets. Hence, there is no impairment loss on the assets of the Company.

(vi) Research & Development Expenditure:

Revenue Expenditure on Research & Development is charged off to the Profit and Loss account in the period in which it is incurred.

(vii) Staff Terminal Benefits :

a) Accrued Liability for gratuity has been provided in the accounts in accordance with the provisions of the Payment of Gratuity Act, 1972, calculated on the basis of Actuarial Valuation method in accordance with the guidelines of the Institute of Chartered Accountants of India under Accounting Standard (AS 15). During the year, the Company has entered into an agreement with Life Insurance Corporation of India, for managing the Gratuity and Superannuation Fund.

The Company contributes to the said superannuation fund covering specified employees. The contributions are by way of annual premium payable in respect of superannuation policy issued by the LIC of India which confers benefits to those specified employees based on policy norms.

b) Contribution to Provident fund are accounted at the applicable rates and paid over to the appropriate statutory authorities.

c) Accrued liability for encashment of leave to employees is accounted on calendar year basis, in accordance with the Company's Rules and paid to the employees after the year end.

As per Accounting Standard AS-15 (Revised) Employee Benefits, the disclosures as defined in the Accounting Standard are given below:

Jun 30, 2010

As on As on 30.06.2010 31.12.2008 Rs Rs

1 Contingent Liabilities not provided for Claim against the Company under litigation against which, Bank Guarantee has been provided 726,000 726,000

2 Licensed and Installed Capacity (per annum) and Actual Production

3 Disclosure on Related Party Transaction

Names of related parties and description of relationship:

1. Key Management Personnel

Mr. V.M.Lakshminarayanan, Chairman Mr. V.M.Balasubramaniam, Managing Director Mr. V.M.Gangadharam, Executive Director Mr. V.M.Kumaresan Executive Director Technical

2. Enterprises in which key management personnel and their relatives have significant influence

Butterfly Constructions Limited Butterfly Home Appliances Butterfly Quality Center Private Limited Butterfly Marketing Private Limited Swaminathan Enterprises Private Limited Gangadharam Appliances Limited LLM Appliances Limited Sivagurunathan Industries Vishalss Enterprises

3. Relatives of Key Management Personnel

Mr. V.M.L.Karthigeyan Mr. V.M.L.Senthilnathan Mr. V.M.G.Viswanathan Mr. V.M.S.Selvamuthukumaran. Mr. V.M.LGanesan

4 Honble Board for Industrial and Financial Reconstruction (BIFR) has de-registered the Companys reference under the provisions of Sick Industrial Companies (Special Provisions) Act, 1965 on 31.08.2009 and the Company is no longer a Sick Industrial Company with in the meaning of that Act.

5 As on the Balance sheet date, the Companys assets net of accumulated depreciation is not less than the recoverable amount of those assets. Hence, mere is no impairment loss on the assets of the Company.

6 The Financial Year of the Company has been extended for a period of eighteen months upto 30th June,

7 The Figures for the period 31.12.2008 have been regrouped and rearranged to conform with the current period.

8 Statement pursuant to Part IV of Schedule VI of the Companies Act, 1956. Balance Sheet Abstract and Companys General Business Profile.

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