Notes to Accounts of Decolight Ceramics Ltd.

Mar 31, 2015

1. Terms/rights attached to equity shares : *

The Company has only one class of equity shares having a par value of Rs. 10 each. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to approval of the shareholders in the ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder 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.

2. NATURE OF OPERATIONS :

1 Decolight Ceramics Ltd. (the company) having its manufacturing facilities at Morbi, is engaged in the business of Manufacturing of vitrified tiles, Trading of building materials, stores & spares, ceramic raw materials and ceramic semi-finished materials.

2 Previous year's figure have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

3 Long Term and Short Term Borrowings

Secured :

Vehicle Loan From Banks & Financial Institutions :

Amt O/s.

Rs.4,41,236/- Secured against hypothecation of vehicles.

Cash Credit & Letter of Credit from Banks :

Amt O/s.

Rs.34,34,06,395/- (Excluding uncharged interest on CC & LC Rs. 7,91,21,489/-) Secured by Equitable Mortgage of factory land & building, hypothecation of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates.

The rate of interest on the long term and short term borrowings ranges between 11% to 15% p.a. depending upon the prime lending rate / base rate of the banks applicable at different point of time during the year and the interest rate spread agreed with the banks.

Repayment period of long term borrowings is 1 year from the balance sheet date.

3. Unsecured :

From Directors Rs. 296.48 lacs (Rs. 334.17 lacs) carries Nil (Nil) interest rate and is repayable on demand. From Directors resigned during the year Rs. 42.64 lacs (Nil) carries Nil (Nil) interest rate and is repayable on demand.

4. The company has raised the fund of Rs. 3060/- lacs during the year 2010-2011 from issue of Equity Shares on Preferential basis and out of the same, balance as on 31st March, 2015 lying in interest bearing inter-Corporate Deposits (ICD) was Rs. 2757.20/- lacs. It was due for receipt / renewal from respective parties during the year 2011-2012. Due to non-renewal, the company has not booked interest of Rs. 445.07/- lacs (Rs. 445.07/- lacs) on such amount during FY 14-15. If it would have been booked, loss would have been reduced by such amount.

In this context, the management represents that:- management is following up the matter with the respective parties and has filed civil suit / under the process of filing the civil suit for the recovery of the same amount along with the interest. The company is making its all efforts for renewal / receipt of the same.

5. Reasons pertaining to highly undertainty about the Going Concern aspect of the Company:-

a With effect from 28th October, 2013, the short term borrowings avalied from bank have been classified ' as Non Performing Asset (NPA) by the bank and the bank has issued demand notice for the recovery of the outstanding amount alongwith uncharged interest & other expenses. Due to company's failure to repay / settle the amount payable to the bank, the bank has taken symoblic possession of the factory unit.

b During the year 13-14, the company has received various notices from Sales Tax Department for the years

06-07, 07-08, 08-09, 11-12 & 12-13 amounting to Rs. 3,14,66,931 plus applicable interest & penalty. For the recovery of the same, the Sales Tax Department has isssued an order dated 20.07.2013 for creating charge on the factory land as per The Land Revenue Act. During the year 14-15, the company has received notice from Sales Tax Department for the year 10-11 amounting to Rs. 16,31,29,534 against which appeal is being preferred by the company.

c Because of old technology based plant & machineries and also due to sale of certain machineries, the operational efficiency of the company's plant was badly affected and due to which the company could achive production of 324 MT (5400 MT) only as against installed capacity of 84000 MT p.a. during FY 14 15. during the year, for most of the time, the company could not operate its plant continuously.

d It is explained by the management of the company that, the company could achieve total revenue of only Rs. 237.31/- lacs for FY 14-15, as against preceding years total revenue of Rs. 1019.85/- lacs for FY 1314, Rs. 1711.31/- lacs for FY 12-13 and Rs. 6073.81/- lacs for FY 2011-2012, because of the reduced volume of sales operations owing partly to persistent recessionary conditions and partly to restricting the production in one kiln only. Moreover efficiency of the plant & machinery of the company is constantly reducing due to age / old technology factor. Henceforth, manufacturing, operational and financial expenses remained unabsorbed leading to posting a loss before tax, exceptional & Prioer Period items Rs. 2008.88/ - lacs and after tax loss of Rs. 2844.17/- lacs as againts preceding years Rs. 3477.02/- lacs for FY 13 14, Rs. 1444.29/- lacs for FY 12-13 and Rs. 1065.55/- lacs for FY 11-12. It is also further explained that ever since the catastrophic incident occurred to the company in the year 2010-2011, the company's business operations affected badly. This has resulted, in addition to the deferring production in one of the kilns, increased cash flows problems coupled with production disruptions.

e Contingent Liabilities* Rs. In Lacs

2014-2015 2013-2014

Counter guarantee given to the banks against guarantee issued by banks on behalf of company. - 176.14

Excise matters under dispute and under adjudication. 12.82 12.82 (However the company has paid Rs. 6.94 lacs under protest)

Excise search operations matter 980.26 980.26

(The company has paid under protest a sum of Rs.400 lacs as a part of bail condition of court of law at the time of search operations. The company / directors have further submitted solvency certificate for Rs. 325 Lacs to the lower court as per the order of Gujarat High Court. Presently matter pertaining to the show cause notice for duty of Rs. 490.13 Lacs and the amount shown hereinabove of Rs. 980.26 Lacs as contingent liability including alleged penalty, is pending for adjudication at Central Excise Department.)

2014-2015 2013-2014

VAT matters under dispute and under adjudication. 1778.19 146.90

VAT notices for the years 06-07, 07-08, 08-09, 11-12 & 12-13 (Refer Point No. 11(b) above) 314.67 314.67

* Contingent liability produced here in above on the bases of information compiled by the management of the company

f Apart from above points mentioned in notes no. 10 & 11 (a to e), there is a highly uncertainty about the going concern aspect of the company looking to the various other reasons also such as i) Power connection of the factory unit disconnected by the State Electricity Board ii) Bank has filed complain / legal suits on the company for sales of machineries / stock hypothecated to bank without its consent and also for recovery of its entire dues along with the interest iii) Differences in physical verification of plant & machineries taken by bank and management of the company iv) Receivables/advances and Payables/liabilities of the company are subject to confirmation of the concerned parties v) ongoing various litigations by government as well as non-government parties.

In this context, the management represents that:- management is trying its best to resolve all the above issues in its best possible manner and restart the factory operations by involving new management for the company. Hence the financials are prepared on going concern basis.

g Owing to the highly uncertainty about the going concern status of the company in near future due to the reasons mentioned in note no. 11 a to f above, had the accounts for the year ended 31st March, 2015 would have been prepared on realization basis instead of accrual basis by the management of the company, a) the realizable value of plant & machinery as per the bank's latest valuation report comes to approx Rs. 1205.05 lacs at the place of written down value of plant & machinery as per the books of accounts shown as on 31st March, 2015 comes to Rs. 1138.02 lacs b) the realizable value of leasehold land & building as per Dec 12 valuation report comes to approx Rs. 2050 lacs at the place of written down value of Rs. 1174.85 lacs as per the books of accounts shown on 31st March, 2015 c) Trade Receivables& Non-current investments totalling to Rs. 3388.64 lacs stated in books of accounts as recoverable are doubtful for recovery d) Amount of current & non-current liabilities over other current / non-current assets are Rs. 4854.17 lacs as per books of accounts, however final amount payable against it and final payable amount against various contingent liabilities are yet to be ascertained by the management of the company.

6. Litigation *

a Company is having pending ligitaion against it with respect to company's failure to repay / settle the amount payable o/s. as on 31st March, 2015, Rs. 3434.06/- Lacs (Excluding uncharged interest on CC & LC Rs. 791.21/- Lacs) to the bank and bank has taken symoblic possession of the factory unit as mentioned in note 3 and 11(a).

b Company is having pending ligitaion against it with respect to VAT matters under dispute and under adjudication as well as excise search operations of Rs. 2092.86 Lacs plus applicable interest and penalty as mentioned in note 11(e) above.

c Company is having pending ligitaion against it with respect to Excise matters under dispute and under adjudication as well as excise search operations of Rs. 993.08 Lacs plus applicable interest and penalty as mentioned in note 11(e) above.

d Company has filed civil suit / under the process of filing the civil suit for the recovery of the amount lying in ICD Rs. 2757.20/- Lacs plus applicable interest as mentioned in note 10 above.

e In addition, the company is subject to legal proceedings and claims, which have arisen in the ordinary course of business. The management does not reasonable expect that these legal actions, when ultimately concluded and determined, will have a material and adverse effect on the Company's results of operations or financial position.

(* Litigation details produced here in above on the basis of information compiled by the management of the company)

7. No Provision made for material foreseeable losses

a in respect of amount lying in ICD to the tune of Rs. 2757.20/- Lacs plus applicable interest on account of non-renewal / non-receipt of the same.

b in respect of current and non-current trade receivables of Rs. 388.96/- Lacs on account of pending confirmations.

8. Exceptional Items of Rs. 8,30,28,104/- (Rs. 7,89,81,152/-) debited to Profit & Loss A/c. is on account of provision made for doubtful debts of Rs. 1,03,94,983/- (Rs. 5,04,83,373/-) reduction in value of stock due to reduced net realizable value over the normal cost by Rs. 4,43,01,804/- (Rs. 2,84,97,778/-), Rs. 1,97,98,396/- (Nil) on account of insurance claim receivable from insurance company charged to statement of profit & loss looking ot the remote possibility of the claim receipt and Rs. 85,32,921/- on account of adavances written off since not recoverable in opinion of management of the company.

9. Net balances of trade receivables as on 31st March, 2015 of Rs. 55.24/- lacs (net of provision made for doubtful debts Rs. 608.78/- lacs) disclosed under 'trade receivables' and Rs. 333.72/- lacs disclosed under 'other noncurrent assets' are subject to confirmations of the parties concerned.

10. The company has booked total interest cost of Rs. 549.36/- lacs towards working capital facilities from bank under the head finance cost during the year, has not been paid by the company / charged by the bank due to recognition of non-performing asset by the bank since Oct 2013, as per the RBI prudential norms for income recognition.

11. Prior Period Items Rs. 5,00,000/- :

Payment made for marketing expenses in earlier years not debited to Statement of Profit & Loss in respective year, now debited as prior period items during FY 14-15.

12. Quantitative details and valuation of inventories during the year are being relied upon the physical stock verification statement / certificate given by the management of the company.

13. Segment Information :

In accordance with Accounting Standard-17 - "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company has identified its business segment as Manufacturing and Trading of Tiles & Other Building Materials; there are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosure are not applicable.

14. Related Party Disclosures :

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of the transactions with the related parties as defined in the Accounting Standard are given ;

List of Related Parties along with relationship and Transactions

Associates :

Decogold Glazed Tiles Ltd.

Aristo Ceramics

Key Management Personnel :

Girishbhai M. Pethapara - Director Kantilal M. Pethapara - Director

Jayantilal M . Pethapara (ceased to be director w.e.f. 15.12.2014)

15. The company has taken certain premises, factory building, godown & land under cancelable operating leases. The total rental expenses under cancelable operating lease during the year was Rs. Nil (Rs. 0.14 lacs).

16. The company has not received any information from the suppliers regarding their status under the 'Micro, Small and Medium Enterpirse Development Act, 2006' and hence disclosures, if any relating to amounts unpaid as at year end together with interest paid / payable as required under the act have not been furnished.

17. Dues from other companies / parties under same management at year end is Rs. NIL

18. Insurance Claim Receivable :

Insurance claim receivable of Rs. 197.98 lacs is on account of balance of claims lodged and sanctioned by the insurance company, resulting due to catastrophic incident occurred to the company during the year 2010-2011. The same expenditure was incurred by the company, however balance claim not sanctioned and under dispute is shown by the company as claim receivable under 'Non-Current Assets' in FY 13-14 and charged to statement of profit & loss in FY 14-15 looking to the remote possibility of the claim receipt.

19. As informed to us by management of the company, the board of directors of the company is constituted with proper balance of executive directors, non-executive directors and independent directors. However the appointment of women director as per section 149(1) of the Companies Act, 2013 is yet to be made.

20. During the audit period, the Company Secretary of the Company Mr. Suresh S. Dave has resigned on 15th December, 2014 and the Company is yet to appoint Company Secretary and Chief Financial Officer (CFO) in whole time employment as per section 203 read with Companies (Appointment and Remuneration of Managerial Personnel) Rules, 2014 of the Companies Act, 2013, as a key managerial persons of the company.

21. In opinion of the Board of Directors of the company Net Current Assets are approximately of the same value as stated, in the normal course of business, and adequate provision has been made for all know liabilities.

22. Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long-term and Short-term Loans & Advances and Non-Current Investments are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

23. Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

24. Figures have been rounded off to nearest rupee and have been regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2014

1 Previous year''s figure have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2 Discontinuing Operations

During the year 2011-2012, the company has exited fully from wind power generation business, to focus and strenghthen its core business and henceforth the company discontinued the power- generation division, which was a seperate segment as per AS-17 Segment Reporting.

3 Long Term and Short Term Borrowings :- Secured :

Vehicle Loan From Banks & Financial Institutions Amt O/s Rs. 5,74,881/- Secured against hypothecation of vehicles. Cash Credit & Letter of Credit from Banks Amt O/s Rs. 33,44,86,187/- (Excluding uncharged interest on CC & LC Rs. 2,02,57,836/-) Secured by Equitable Mortgage of factory land & building, hypothecation of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates.

The rate of interest on the long term and short term borrowings ranges between 11% to 15% p.a. depending upon the prime lending rate / base rate of the banks applicable at different point of time during the year and the interest rate spread agreed with the banks.

Repayment period of long term borrowings is 2 years from the balance sheet date.

4 The company has raised the fund of Rs.3060/- lacs during the year 2010-2011 from issue of Equity Shares on Preferential basis and out of the same, balance as on 31st March, 2014 lying in interest bearing Inter-Corporate Deposits was Rs. 2757.20/- lacs. It was due for receipt / renewal from respective parties during the year 2011-2012. Due to non-renewal, the company has not booked interest of Rs. 445.07/- lacs(Rs. 455.20/- lacs) on such amount during FY 13-14. If it would have been booked, loss would have been reduced by such amount.

In this context, the management is following up the matter with the respective parties and is also under the process of filing the civil suit for the recovery of the same amount along with the interest. The company is making its all efforts for renewal / receipt of the same.

5 With effect from 28th October, 2013, the short term borrowings availed from bank have been classified as Non Performing Asset (NPA) by the bank and the bank has issued demand notice for the recovery of the outstanding amount alongwith uncharged interest & other expenses. Hence there is a every possiblity of bank taking possession of the factory unit in the forseeable near future if the company remains unable to repay / settle the amount payable to the bank.

6 During the year, the company has received various notices from Sales Tax Department for the years 06-07, 07-08, 08-09, 11-12 & 12-13 amounting to Rs.3,14,66,931 plus applicable interest & penalty. For the recovery of the same, the Sales Tax Department has isssued an order dated 20.07.2013 for creating charge on the factory land as per The Land Revenue Act.

6 Because of old technology based plant & machineries, the operational efficiency of the company''s plant was badly affected and due to which the company could achive production of 5400 MT only as against installed capacity of 84000 MT p.a. during FY 13-14. Even after the balance sheet date, the company could not operate its plant continuously.

7 It is explained by the management of the company that, the company could achieve total revenue of only Rs.1019.85/- lacs for FY 13-14, as against preceding years total revenue of Rs.1711.31/- lacs for FY 12-13 and Rs.6073.81/- lacs for FY 2011-2012, because of the reduced volume of sales operations owing partly to persistent recessionary conditions and partly to restricting the production in one kiln only. Moreover efficiency of the plant & machinery of the company is constantly reducing due to age / old technology factor. Henceforth, manufacturing, operational and financial expenses remained unabsorbed leading to posting a loss before tax & exceptional items Rs.2687.21/- lacs and after tax loss of Rs.3477.02/- lacs as against preceding years Rs. 1444.29/- lacs for FY 12-13 and Rs.1065.55/- lacs for FY 11-12. It is also further explained that ever since the catastrophic incident occurred to the company in the year 2010-2011, the company''s business operations affected badly. This has resulted, in addition to the deferring production in one of the kilns, increased cash flows problems coupled with production disruptions.

8 Contingent Liabilities* (Rs. In Lacs) 2013-2014 2012-2013

Counter guarantee given to the banks against guarantee issued by banks on behalf of company. 176.14 148.14

Excise matters under dispute and under adjudication. 12.82 12.82

(However the company has paid ? 6.94 lacs under protest) Excise search operations matter 980.26 980.26

(The company has paid under protest a sum of Rs.400 lacs as a part of bail condition of court of law at the time of search operations. The company / directors have further submitted solvency certificate for Rs. 325 Lacs to the lower court as per the order of Gujarat High Court. Presently matter pertaining to the show cause notice for duty of Rs. 490.13 Lacs and the amount shown hereinabove of Rs. 980.26 Lacs as contingent liability including alleged penalty, is pending for adjudication at Central Excise Department.)

VAT matters under dispute and under adjudication. 146.90 -

VAT notices for the years 06-07, 07-08, 08-09, 11-12

&12-13 (Refer Point No. 12 above) 314.67 -

* Contingent liability produced here in above on the bases of information compiled by the management of the company.

9 Exceptional Items of Rs. 7,89,81,152/- debited to Profit & Loss A/c. is on account of provision made for doubtful debts of Rs. 5,04,83,373 & reduction in value of stock due to reduced net realizable value over the normal cost by Rs. 2,84,97,778/-.

10 Net balances of trade receivables as on 31st March, 2014 of Rs. 611.98/- lacs (net of provision made for doubtful debts Rs. 504.83/- lacs) are subject to confirmations of the parties concerned.

11 The company has booked total interest cost of Rs. 475.56/- lacs towards working capital facilities from bank under the head finance cost during the year, out of which Rs. 202.58/- lacs has not been paid by the company / charged by the bank due to recognition of non-performing asset by the bank since Oct 2013, as per the RBI prudential norms for income recognition.

12 Prior Period Items Rs. 36,33,334/- : Provision for value added tax of Rs. 36.33/- lacs on the sale of Windmill Project in March 2012 has not been provided in the year 2011-2012, hence the same has been provided and disclosed as prior period items in the year 2012-2013.

13 Disclosure under Accounting Standard - 15 (Revised) on ''Post Employment Benefits''

Gratuity Benefits

The Company has defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on departure at 15 days salary (Last drawn salary) for each completed year of service.

The following table summarizes the component of net benefit expenses recognized in Statement of Profit & Loss.

14 Segment Information:-

In accordance with Accounting Standard-17 – "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company has identified its business segment as Manufacturing and Trading of Tiles & Other Building Materials; there are no other primary reportable segments. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosure are not applicable.

15 Related Party Disclosures:

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of the transactions with the related parties as defined in the Accounting Standard are given :

List of Related Parties along with relationship and Transactions :-

Associates

Decogold Glazed Tiles Ltd. Aristo Ceramics

Key Management Personnel

Girishbhai M. Pethapara Jayantilal M . Pethapara Kantilal M. Pethapara

16 The company has taken certain premises, factory building, godown & land under cancelable operating leases. The total rental expenses under cancelable operating lease during the year was Rs. 0.14 lacs (Rs. 0.14 lacs).

17 The company has not received any information from the suppliers regarding their status under the ''Micro, Small and Medium Enterpirse Development Act, 2006'' and hence disclosures, if any relating to amounts unpaid as at year end together with interest paid / payable as required under the act have not been furnished.

18 Dues from other companies / parties under same management at year end is Rs. NIL

19 Insurance Claim Receivable

Insurance claim receivable of Rs. 197.98 lacs is on account of balance of claims lodged and sanctioned by the insurance company, resulting due to catastrophic incident occurred to the company during the year 2010-2011. The same expenditure was incurred by the company, however balance claim not sanctioned and under dispute is shown by the company as claim receivable.

20 In opinion of the Board of Directors of the company Net Current Assets are approximately of the same value as stated, in the normal course of business, and adequate provision has been made for all know liabilities.

21 Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long-term and Short-term Loans & Advances and Non-Current Investments are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

22 Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

23 Figures have been rounded off to nearest rupee and have been regrouped, rearranged and reclassified wherever necessary.

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Mar 31, 2013

Nature of Operations :-

Decolight Ceramics Ltd. (the company) having its manufacturing facilities at Morbi, was mainly engaged in Manufacturing of vitrified tiles during the year. During the year, the company has not carried out manufacturing activity for alluminium composite panels. During the year, the company has carried out other business operations like Trading of ceramic tiles, ceramic raw materials and ceramic semi-finished materials.

1 Previous year''s figure have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2 Equity Convertible Warrants : -

28,237,500 Equity Convertible Warrants were alloted on preferential basis during the year 2009- 2010, which was being convertible within 18 months from the date of allotment of warrant i.e. any time on or before June 7, 2011, exercisable at the option of the warrant holders into one equity share per warrant at Rs.10.25 (including premium of Re.0.25) per equity share of the nominal value of Rs. 10 each. Application cum allotment money were received of Rs. 2.75 (including premium of Re.0.25) per equity convertible warrant during the year 2009-2010. However, since allottee has not paid balance allotment money, application cum allotment already received to the tune of Rs. 705.94 lacs were forfeited as per the agreed terms and conditions, same has been credited to Reserves & Surplus, considering the same as capital receipt in the year 2011-2012.

3 Discontinuing Operations

During the year 2011-2012, the company has exited fully from wind power generation business, to focus and strenghthen its core business and henceforth the company discontinued the power- generation division, which was a seperate segment as per AS-17 Segment Reporting.

4 Long Term and Short Term Borrowings :- Secured :

Term Loan & Corporate Loan From Banks

Amt O/s

Rs. 1,10,45,860/- Secured by Equitable Mortgage of factory land & building, hypothecation of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates.

Cash Credit from Banks

Amt O/s

Rs. 31,66,77,072/- Secured by Equitable Mortgage of factory land & building, hypothecation of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage &

Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates.

The rate of interest on the long term and short term borrowings ranges between 11% to 15% p.a. depending upon the prime lending rate / base rate of the banks and financial institutions applicable at different point of time during the year and the interest rate spread agreed with the banks.

Repayment period of long term borrowings is 1 year from the balance sheet date.

The company has made certain defaults in repayment of loans and interest. The details of continuing defaults as at March 31, 2013 are as follows.

4 The company has raised the fund of Rs. 3060/- lacs during the year 2010-2011 from issue of Equity Shares on Preferential basis. Out of the same, Rs. 213/- lacs is utilized for the objects of the issue and the balance Rs. 2847/- lacs was lying in interest bearing Inter-Corporate Deposits. During the year 2012-2013, Rs. 14.80 lacs received back and balance outstanding as on 31st March, 2013 was Rs. 2832.20/- lacs. It was due for receipt / renewal during the year 2011-2012. Due to non- renewal, the company has not booked interest of Rs. 455.20/- lacs (Rs. 368.69/- lacs) on such amount. If it would have been booked, loss would have been reduced by such amount.

5 The balances of trade receivables as on 31st March, 2013 are subject to confirmations of the parties concerned and includes trade receivables which are outstanding for more than a year which are considered as good by the management.

6 Quantitative details and valuation of closing inventories are being relied upon the physical stock verification statement / certificate given by the management of the company.

7 It is explained by the management of the company that, the company could achieve income from operations of only Rs. 171,130,749/- as against Rs. 607,381,226 of year 2011-2012, because of the reduced volume of sales operations owing partly to persistent recessionary conditions and partly to restricting the production in one kiln only, manufacturing, operational and financial expenses remained unabsorbed leading to posting a loss after tax of Rs. 144,429,077/- for the year 2012-2013 as against the reported loss after tax of Rs. 106,555,078/- for the year 2011-2012. It is also further explained that ever since the catastrophic incident occurred to the company in the year 2010-2011, the company''s business operations affected badly. This has resulted, in addition to the deferring production in one of the kilns, increased cash flows problems coupled with production disruptions.

8 Prior Period Items Rs. 36,33,334/- :Provision for value added tax of Rs. 36.33/- lacs on the sale of Windmill Project in March 2012 has not been provided in the year 2011-2012, hence the same has been provided and disclosed as prior period items in the year 2012-2013.

9 Disclosure under Accounting Standard - 15 (Revised) on ''Post Employment Benefits''

Gratuity Benefits

The Company has defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on departure at 15 days salary (Last drawn salary) for each completed year of service.

The following table summarizes the component of net benefit expenses recognized in Statement of Profit & Loss.

10 Segment Information:-

In accordance with Accounting Standard-17 – "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Company has identified its business segment as Manufacturing and Trading of Tiles & Other Building Materials; there are no other primary reportable segments, as the company exited fully from Windmill Project in the previous year. The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosure are not applicable.

11 Related Party Disclosures:

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of the transactions with the related parties as defined in the Accounting Standard are given:

List of Related Parties along with relationship and Transactions :-

Associates

Decogold Glazed Tiles Ltd.

Aristo Ceramics

Key Management Personnel

Girishbhai M. Pethapara Jayantilal M . Pethapara Kantilal M. Pethapara

12 The company has taken certain premises, factory building, godown & land under cancelable operating leases. The total rental expenses under cancelable operating lease during the year was Rs. 0.14 lacs (Rs. 3.22 lacs).

13 The company has not received any information from the suppliers regarding their status under the ''Micro, Small and Medium Enterpirse Development Act, 2006'' and hence disclosures, if any relating to amounts unpaid as at year end together with interest paid / payable as required under the act have not been furnished.

* Contingent liability produced here in above on the bases of information compiled by the management of the company

14 Dues from the other companies / parties under the same management at year end is as below: Deco Gold Glazed Tiles Ltd. Rs. 0.59 Lacs./- (Rs. 12.23/- Lacs).

15 Insurance Claim Receivable

Insurance claim receivable of Rs. 1 97.98 lacs is on account of balance of claims lodged and sanctioned by the insurance company, resulting due to catastrophic incident occurred to the company during the year 201 0-2011. The same expenditure was incurred by the company, however balance claim not sanctioned and under dispute is shown by the company as claim receivable.

16 In opinion of the Board of Directors of the company Net Current Assets are approximately of the same value as stated, in the normal course of business, and adequate provision has been made for all know liabilities.

17 Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long-term and Short-term Loans & Advances and Non-Current Investments are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

18 Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

19 Figures have been rounded off to nearest rupee and have been regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2012

Nature of Operations :-

Decolight Ceramics Ltd.(the company) having its manufacturing facilities at Morbi, is engaged in Manufacturing of vitrified tiles & alluminium composite panels. However during the year, the company has not carried out manufacturing activity for alluminium composite panels. The company has also carried out other business operations like Trading of ceramic tiles, ceramic raw materials and Wind Power Generation Income. However, the company has discontinued Wind Power Generation Project from March, 2012

1. Previous year's figure have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2. Equity Convertible Warrants :-

28,237,500 Equity Convertible Warrants were allotted on preferential basis during the year 2009-2010, which was being convertible within 18 months from the date of allotment of warrant i.e. any time on or before June 7, 2011, exercisable at the option of the warrant holders into one equity share per warrant at Rs.10.25 (including premium of Re.0.25) per equity share of the nominal value of Rs.10 each. Application cum allotment money were received of Rs. 2.75 (including premium of Re.0.25) per equity convertible warrant during the year 2009- 2010. However, since allottee has not paid balance allotment money, application cum allotment already received to the tune of Rs. 705.94 lacs were forfeited as per the agreed terms and conditions, same has been credited to Reserves & Surplus, considering the same as capital receipt.

3. Discontinuing Operations :-

During the year, the company has exited fully from wind power generation business, to focus and strenghthen its core business and henceforth the company discontinued the power- generation division, which is a separate segment as per AS-17 Segment Reporting.

4. Long Term and Short Term Borrowings :- Secured :

Term Loan & Corporate Loan From Banks

Amt O/s

Rs.31,825,449/- Secured by Equitable Mortgage of factory land & building, hypothecation of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates

Term Loan From Financial Institutions

Amt O/s

Rs.2,748,865/- Secured by Equitable Mortgage of collaterals from directors and guarantee of directors.

Vehicle Loan From Banks & Financial Institutions

Amt O/s

Rs.14,863/- Secured against hypothecation of vehicles.

Cash Credit and Letter of Credits from Banks

Amt O/s

Rs.308,936,196/- Secured by Equitable Mortgage of factory land & building, hypothecation of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates.

The rate of interest on the long term and short term borrowings ranges between 11% to 15% p.a. depending upon the prime lending rate / base rate of the banks and financial institutions applicable at different point of time during the year and the interest rate spread agreed with the banks.

Repayment period of long term borrowings ranges from 1 to 3 years from the balance sheet date.

5. The company has raised the fund of Rs. 3060/- lacs during the year 2010-2011 from issue of Equity Shares on Preferential basis. Out of the same, Rs. 213/- lacs is utilized for the objects of the issue, balance amount of Rs. 2847/- lacs was lying in interest bearing Inter-Corporate Deposits. It was due for receipt /renewal during the year. Due to non- renewal, the company has not booked interest of Rs. 368.69/- lacs on such amount. If it would have been booked, loss would have been reduced by such amount.

6. Provision for value added tax of Rs. 36.33/- lacs on the sale of Windmill Project in March 2012 has not been provided. If it would have been made, loss would have been increased by such amount. However, the company has made the said provision after balance sheet date.

7. Disclosure under Accounting Standard - 15 (Revised) on 'Post Employment Benefits' Gratuity Benefits

The Company has defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on departure at 15 days salary (Last drawn salary) for each completed year of service.

The following table summarizes the component of net benefit expenses recognized in Profit & Loss Account.

The estimated future salary increases, considered in actuarial valuation, takes into account the effect of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

8. Segment Information:-

The company has identified two reportable segment viz. "Manufacturing, Trading and Work Contract of tiles and other building materials" & "Wind Power Generation". The other items include commission income which is not related to two reportable segments.

Segment have been identified and reported taking into account nature of product and services and deferring risk and rewards from them. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies:

(a) Revenue and expenses have been identified to a segment on the basis of relationship to the corresponding segment. Revenue and expenses, which relate to enterprise as a whole and are not allocable to a segment on reasonable basis, have been deducted from total column.

(b) Segment assets and segment liabilities represents assets and liabilities in respective segments. Assets and liabilities that cannot be allocated to as segment on a reasonable basis have been disclosed as 'Unallocable.

The reportable segment is further described below:

(i) Manufacturing of vitrified tiles & alluminium composite panels Trading of other ceramic tiles and commodities items, Work contracts for ceramic and alluminium section works

(ii) Power generation for captive consumption through installation of windmill.

(iii) The other items include commission income which is not related to two reportable segments.

(II) Secondary Segment Information:

The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosure are not applicable.

9. Related Party Disclosures:

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of the transactions with the related parties as defined in the Accounting Standard are given :

List of Related Parties along with relationship and Transactions :-

Associates

Decogold Glazed Tiles Ltd.

Aristo Ceramics

Key Management Personnel

Girishbhai M. Pethapara Jayantilal M . Pethapara Kantilal M. Pethapara

10. The company has taken certain premises, factory building, godown & land under cancelable operating leases. The total rental expenses under cancelable operating lease during the year was Rs. 3.22 lacs (Rs. 26.85 lacs).

11. Based on the information / documents / parties identified by the company and to the extent information available / gathered, information as required to be disclosed as per Micro, Small and Medium Enterprise Development Act, 2006 have been determined as follows:

12. Contingent Liabilities* Rs. In Lacs

2011-2012 2010-2011

Counter guarantee given to the banks against guarantee issued by banks on behalf of company. 227.19 227.19

Letter of credits issued by the bank on behalf of the company. - 269.87

Service Tax matters under dispute and under adjudication - 1.49

Excise matters under dispute and under adjudication. 12.82 58.50 (However the company has paid Rs. 6.94 lacs under protest)

Excise search operations matter 980.26 980.26

(The company has paid under protest a sum of Rs.400 lacs as a part of bail condition of court of law at the time of search operations. The company / directors have further submitted solvency certificate for Rs. 325 Lacs to the lower court as per the order of Gujarat High Court. Presently matter pertaining to the show cause notice for duty of Rs. 490.13 Lacs and the amount shown hereinabove of Rs. 980.26 Lacs as contingent liability including alleged penalty , is pending for adjudication at Central Excise Department.)

* Contingent liability produced here in above on the bases of information compiled by the management of the company

13. Dues from the other companies / parties under the same management at year end is as below: Deco Gold Glazed Tiles Ltd. Rs. 12.23 Lacs./- (Rs. 19.34/- Lacs).

14. In opinion of the Board of Directors of the company Net Current Assets are approximately of the same value as stated, in the normal course of business, and adequate provision has been made for all know liabilities.

15. Balances of Trade Payables, Unsecured Loans, Trade Receivables, Long-term and Short-term Loans & Advances and Current Investments are subject to the confirmation of the parties concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

16. Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

17. Figures have been rounded off to nearest rupee and have been regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2011

Nature of Operations :-

Decolight Ceramics Ltd. (the company) having its manufacturing facilities at Morbi, is engaged in Manufacturing of vitrified tiles & alluminium composite panels. However during the year, the com- pany has not carried out manufacturing activity for alluminium composite panels. The company has also carried out other business operations like Trading of ceramic tiles, building materials ceramic raw materials, Work contracts for ceramic and alluminium section works, Wind Power Generation and Commission for capital goods.

1. Previous year's figure have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2. Preferential Issue of Equity Shares : -

During the year 30,000,000 Equity Shares alloted on preferential basis at Rs. 10.20 (including premium of Rs. 0.20) per equity share of the nominal value of Rs. 10 each. Application cum allotment money received of v 10.20 (including premium of Rs. 0.20) per equity share.

3. Equity Convertible Warrants : -

28,237,500 Equity Convertible Warrants alloted on preferential basis being convertible within 18 months from the date of allotment of warrant i.e. any time on or before June 7, 2011, exercisable at the option of the warrant holders into one equity share per warrant at Rs. 10.25 (including premium of Rs. 0.25) per equity share of the nominal value of Rs. 10 each. Application cum allotment money received of Rs. 2.75 (including premium of Re.0.25) per equity convertible warrant.

4. Loan Funds :-

Term Loan & Corporate Loan From Banks

Amt O/s

Rs. 131,908,135/- Secured by Equitable Mortgage of factory land & building, hypothecation of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates.

Working Capital Loan From Banks

Amt O/s

Rs. 289,977,367/- Secured by Equitable Mortgage of factory land & building, hypothecation of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates.

Term Loan From Financial Institutions

Amt O/s

Rs. 39,168,530/- Secured by Hypothecation of windmill plant & machineries and Equitable Mortgage of its leasehold land rights being financed, Equitable Mortgage of collaterals from directors and guarantee of directors.

Vehicle Loan From Banks

Amt O/s

Rs. 432,628/- Secured against hypothecation of vehicles.

5. Exceptional Items

During the year ended March 31, 2010, the company has to pay to customers amount of Rs. 45.12 lacs on account of damaged goods claim lodged by the parties. This being expenditure of exceptionally high looking to the volume of business, the company has identified Rs. 38.44 lacs as exceptional item of the expenditure being over and above normal expenditure considered and identified at Rs. 6.68 lacs.

6. Disclosure under Accounting Standard - 15 (Revised) on 'Post Employment Benefits' Gratuity Benefits.

The Company has defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on departure at 15 days salary (Last drawn salary) for each completed year of service.

7. Segment Information:-

The company has identified two reportable segment viz. "Manufacturing, Trading and Work Contract of tiles and other building materials" & "Wind Power Generation". The other items include commission income which is not related to two reportable segments.

Segment have been identified and reported taking into account nature of product and services and deferring risk and rewards from them. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies:

(a) Revenue and expenses have been identified to a segment on the basis of relationship to the corresponding segment. Revenue and expenses, which relate to enterprise as a whole and are not allocable to a segment on reasonable basis, have been deducted from total column.

(b) Segment assets and segment liabilities represents assets and liabilities in respective segments. Assets and liabilities that cannot be allocated to as segment on a reasonable basis have been disclosed as 'Unallocable'.

The reportable segment is further described below:

(i) Manufacturing of vitrified tiles & alluminium composite panels Trading of other ceramic tiles and commodities items, Work contracts for ceramic and alluminium section works

(ii) Power generation for captive consumption through installation of windmill.

(iii) The other items include commission income which is not related to two reportable segments.

(II) Secondary Segment Information:

The major and material activities of the company are restricted to only one geographical segment i.e. India, hence the secondary segment disclosure are not applicable.

8. Related Party Disclosures:

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of the transactions with the related parties as defined in the Accounting Standard are given :

List of Related Parties along with relationship and Transactions :-

Associates

Decogold Glazed Tiles Ltd.

Decogold Electronics Ltd.

Sweta Ceramics

Aristo Ceramics

Relatives Of Key Management Personnel

Mayur K. Pethapara

Hemal G. Pethapara

Hiralben Girishbhai

Poonamben Mansukhbhai

Ramaben M. Pethapara

Sadhnaben B. Kadivar

Vasantaben R. Patel

Lataben K. Pethapara

Key Management Personnel

Girishbhai M. Pethapara

Jayantilal M . Pethapara

Kantilal M. Pethapara

9. The company has taken certain premises, factory building, godown & land under cancelable operating leases. The total rental expenses under cancelable operating lease during the year was Rs. 26.85 lacs (Rs. 83.80 lacs).

10. Contingent Liabilities* Rs. In Lacs

2010-2011 2009-2010

Counter guarantee given to the 227.19 185.27 banks against guarantee issued by banks on behalf of company. Letter of credits issued by the 269.87 - bank on behalf of the company. Service Tax matters under dispute and under adjudication 1.49 -

Excise matters under dispute and under adjudication. 58.50 58.50 (However the company has paid Rs. 6.94 lacs under protest)

Excise search operations matter 980.26 980.26

(The company has paid under protest a sum of Rs. 400 lacs as a part of bail condition of court of law at the time of search operations. The company / directors have further submitted solvency certificate for Rs. 325 Lacs to the lower court as per the order of Gujarat High Court. Presently matter pertaining to the show cause notice for duty of Rs. 490.13 Lacs and the amount shown hereinabove of Rs. 980.26 Lacs as contingent liability including alleged penalty, is pending for adjudication at Central Excise Department.)

* Contingent liability produced here in above on the bases of information compiled by the management of the company

11. Dues from the other companies under the same management at year end is as below: Deco Gold Glazed Tiles Ltd. Rs. 19.34 Lacs./- (Rs.102.83/- Lacs).

12. In opinion of the Board of Directors of the company Net Current Assets are approximately of the same value as stated, in the normal course of business, and adequate provision has been made for all know liabilities.

13. Balances of Creditors, Unsecured Loans, Debtors, Loans & Advances and Investments are subject to the confirmation of the party concerned. Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

14. Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

15. Figures have been rounded off to nearest rupee and have been regrouped, rearranged and reclassified wherever necessary.

---

Mar 31, 2010

Nature of Operations:-

Decolight Ceramics Ltd. having its manufacturing facilities at Morbi, is engaged in Manufacturing of vitrified tiles & alluminium composite panels, Trading of other ceramic tiles and commodities items, Work contracts for ceramic and alluminium section works and Wind Power Genration.

1 Previous years figure have been reworked, regrouped, rearranged and reclassified wherever necessary. Accordingly, amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to the current year.

2 Equity Convertible Warrants: -

28,237,500 Equity Convertible Warrants alloted on preferential basis being convertible within 18 months from the date of allotment of warrant i.e. any time on or before June 7, 2011, exercisable at the option of the warrant holders into one equity share per warrant at Rs. 10.25 (including premium of Re.0.25) per equity share of the nominal value of Rs.10 each. Application cum allotment money received of Rs. 2.75 (including premium of Re.0.25) per equity convertible warrant.

3 Loan Funds :-

Term Loan & Corporate Loan From Banks

Amt O/s

Rs.207,849,825/- Secured by Equitable Mortgage of factory land & building, hyphothication of plant & machineries, hypothecation of stock & book-debts, Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relatives and associates.

Working Capital Loan From Banks

Amt O/s

Rs.273,632,290/- Secured by Equitable Mortgage of factory land & building, hyphothication of plant & machineries, hypothecation of stock & book-debts. Equitable Mortgage & Hypothecation of collaterals from associate concern & relatives of directors and guarantee of directors, their relaives and associates.

Term Loan From Financial Institutions

Amt O/s

Rs.41,255,000/- Secured by Hypothecation of windmill plant & machineries and Equitable Mortgage of its leasehold land rights being financed, Equitable Motgage of collaterals from directors and guarantee of directors.

Vehicle Loan From Banks & Financial Institutions *

Amt O/s

Rs.2,066,675/- Secured against hypothecation of vehicles.

4 Exceptional Items

During the year ended March 31, 2010, the company has to pay to customers amount of Rs. 45.12 lacs on account of damaged goods claim lodged by the parties. This being expenditure of exceptionally high looking to the volume of business, the company has identified Rs. 38.44 lacs as exceptional item of the expenditure being over and above normal expenditure considered and identified at Rs. 6.68 lacs.

5 During the financial year, as per the terms of equity convertible warrants issued, the company received application cum allotment money of Rs. 776.53 lacs for 2,82,37,500 equity convertible warrants at Rs. 2.75 each {including premium of Re. 0.25 per warrant} out of exercise price of Rs 10.25 per equity share. Out of* the total proceeds of Rs. 776.53 lacs; Rs. 570.00 lacs are lying as investment with interest bearing inter corporate deposits pending the utilization. The remaining amount has been utilized during the year for general corporate purpose in terms of the object of the issue.

6 Disclosure under Accounting Standard -15 (Revised) on Post Employment Benefits Gratuity Benefits

The Company has defined benefit gratuity plan. Every employee who has completed five years or more of services gets a gratuity on departure at 15 days salary (Last drawn salary) for each completed year of service.

The following table summarizes the component of net benefit expenses recognized in Profit & Loss Account.

7 Segment Information:-

The company has identified two reportable segment viz. "Manufacturing and Trading of tiles and other building materials" & "Wind Power Generation". The other items which is not related to wind power generation and not being of significant value has been shown along with main reportable segment of manufacturing and trading of tiles & other building materials.

Segment have been identified and reported taking into account nature of product and services and deferring risk and rewards from them. The accounting policies adopted for segment reporting are in line with the accounting policy of the company with following additional policies:

(a) Revenue and expenses have been identified to a segment on the basis of relationship to the corresponding segment. Revenue and expenses, which relate to enterprise as a whole and are not allocable to a segment on reasonable basis, have been deducted from total column.

(b) Segment assets and segment liabilities represents assets and liabilities in respective segments. Assets and liabilities that cannot be allocated to as segment on a reasonable basis have been disclosed as Unallocable.

8 Related Party Disclosures:

As per Accounting Standard 18, issued by the Institute of Chartered Accountants of India, the disclosure of the transactions with the related parties as defined in the Accounting Standard are given :

List of Related Parties along with relationship and Transactions :-

Associates

Decogold Glazed Tiles Ltd.

Decogold Electronics Ltd.

Sweta Ceramics

Aristo Ceramics

Relatives Of Key Management Personnel

Mayur K. Pethapara

Hemal G. Pethapara

Hiralben Girishbhai

Poonamben Mansukhbhai

Ramaben M. Pethapara

Sadhnaben B. Kadivar

Vasantaben R. Patel

Lataben K. Pethapara

Key Management Personnel

Girishbhai M. Pethapara

Jayantilal M . Pethapara

Kantilal M. Pethapara

9 The company has taken certain premises, factory building, godown & land under cancelable operating leases. The total rental expenses under cancelable operating lease during the year was Rs. 83.80 lacs (Rs. 61.22 lacs).

10 Based on the information /documents/ parties identified by the company and to the extent information available / gathered, informations as required to be disclosed as per Micro,

11 Contingent Liabilities* Rs. In Lacs

2009-2010 2008-2009

Counter guarantee given to the banks against guarantee

issued by banks on behalf of company. 185.27 185.27

Letter of credits issued by the bank on behalf of the company. - 74.65

Excise matters under dispute and under adjudication. 58.50 58.50

(However the company has paid Rs. 6.94 lacs under protest)

Excise search operations matter 980.26 980.26

(The company has paid under protest a sum of Rs.400

lacs as a part of bail condition of court of law at the time

of search operations. The company/directors have further

submitted solvency certificate for Rs. 325 Lacs to the

lower court as per the order of Gujarat High Court.

Presently matter pertaining to the show cause notice for

duty of Rs. 490.13 Lacs and the amount shown hereinabove of Rs. 980.26 Lacs as contingent liability including alleged penalty , is pending for adjudication at Central Excise Department.)

* Contingent liability produced here in above on the bases of information compiled by the management of the company

12 Dues from the other companies under the same management at year end is as below: Deco Gold Glazed Tiles Ltd. Rs. 102.83 Lacs./- (Rs. 20.06/- Lacs).

13 In opinion of the Board of Directors of the company Net Current Assets are approximately of the same value as stated, in the normal course of business, and adequate provision has been made for all know liabilities.

14 Wherever confirmation of the parties for the amounts due to them / amounts due from them as per books of accounts are not received, necessary adjustments, if any, will be made when the accounts are reconciled / settled.

15 Wherever no vouchers and documentary evidences were made available for our verification, we have relied on the authentication given by management of the company.

16 Figures have been rounded off to nearest rupee and have been regrouped, rearranged and reclassified wherever necessary.