Notes to Accounts of Hipolin Ltd.

Mar 31, 2024

o) Provisions and Contingencies

Provisions are recognised when there is a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and there is a reliable estimate of the amount of the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material). The discount rate used to determine the present value is a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the passage of time is recognised as interest expense.

Contingent liabilities are disclosed when there is a possible obligation arising from past events, the existence of which will be confirmed only by the occurrence or non occurrence of one or more uncertain future events not wholly within the control of the Company or a present obligation that arises from past events where it is either not probable that an outflow of resources will be required to settle the obligation or a reliable estimate of the amount cannot be made.

p) Employee Benefits

(i) Defined contribution plans

Company''s contribution to Provident fund and other funds are determined under the relevant schemes and/or statute and charged to revenue. The Company contributes to a Government administered Provident Fund and has no further obligation beyond making its contribution. The Company makes contributions to state plans namely Employee''s State Insurance Fund and Employee''s Pension Scheme 1995 and has no further obligation beyond making the payment to them. The Company''s contributions to the above funds are charged to Statement of Profit and Loss every year.

(ii) Defined benefit plans

The Company provides for gratuity, a defined benefit plan (the "Gratuity Plan") covering eligible employees, which is funded. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. The Company''s liability is actuarially determined using the Projected Unit Credit method at the end of each year. Remeasurement gains and losses arising from experience adjustments and changes in actuarial assumptions are recognised in the period in which they occur, directly in other comprehensive income. They are included in retained earnings in the statement of changes in equity and in the balance sheet Gratuity Fund contributions are made to a trust administered by the Company which has further invested in Life Insurance Corporation. The contributions made to the trust are recognised as plan assets. The defined benefit obligation recognised in the balance sheet represents the present value of the defined benefit

obligation as reduced by the fair value of plan assets.

(iii) Other employee benefits

Compensated Absences: Accumulated compensated absences, which are expected to be availed at future date from the end of the year and are treated as long term employee benefits. The obligation towards the same is measured at the expected cost of accumulating compensated absences as the additional amount expected to be paid as a result of the unused entitlement as at the year end is not ascertained as per acturial valuation, the same is not provided and not quantified. It is the practice of the company to account for same on payment basis.

q) Segment reporting

The company has only one reportable Bussiness Segment i.e. Detergent Powder & Cake as Primary Segment

r) Earnings per share

i) Basic earnings per share

Basic earnings per share is calculated by dividing:

• The profit/(loss) attributable to owners of the company

• by the weighted average number of equity shares outstanding during the financial year, adjusted for bonus elements in equity shares issued during the year and excluding treasury shares.

(ii) Diluted earnings per share

Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account:

• the after income tax effect of interest and other financing costs associated with dilutive potential equity shares, and

• the weighted average number of additional equity shares that would have been outstanding assuming the conversion of all dilutive potential equity shares.

s) Rounding off

All amounts disclosed in the financial statements and notes have been rounded off to the nearest rupee.

(III) Critical estimates and judgements

The preparation of financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the company''s accounting policies.

The areas involving critical estimates or judgements are:

• Estimation of defined benefit obligation - Note 21

• impairment of trade receivables - Note 32

• Estimation of useful life of tangible assets - Note 1(II)(k)(ii)

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the company.

Risk exposure:

i Investment Risk: For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

ii Liquidity Risk: Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign / retire from the company there can be strain on the cash flows.

iii Market Risk: Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate / government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

iv Legislative Risk: Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation / regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

Fair value hierarchy

All financial instruments have been measured at amortised cost. For all financial instruments referred above that have been measured at amortised cost, their carrying values are reasonable approximations of their fair values. The fair value of financial instruments as referred to in note above have 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 market for identical assets or liabilities (level 1 measurements) and lowest priority to unobservable inputs (level 3 measurements). All financial instruments referred above have been classified as Level 3.

The categories used are as follows :

Level 1 : Level 1 hierarchy includes financial instruments measured using quoted prices.

Level 2: The fair value of financial instruments that are not traded in an active market is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. Considering that all significant inputs required to fair value such instruments are observable, these are included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. Valuation technique used to determine fair value

The fair value of the financial instruments is determined using discounted cash flow analysis.

Valuation processes

The finance department of the company includes a team that performs the valuations of financial assets and liabilities required for financial reporting purposes, including level 3 fair values. This team reports directly to the Chief Financial Officer (CFO). Discussions of valuation process and results are held between the CFO and the valuation team at least once in three months, in line with the company''s quarterly reporting period. Changes in the fair value are analysed at the end of each reporting period during the quarterly valuation discussion between the CFO and the valuation team.

Fair value of financial assets/liabilities measured at amortised cost

The carrying amounts of trade receivables, cash and cash equivalents, other bank balances, investments, margin money deposits, loans to employees, security deposits, trade payables, capital creditors, interest accrued but not due on borrowings, unclaimed dividends, employee benefit payable and other deposits are considered to be as their fair values, due to their current nature.

The fair values of borrowings have been calculated based on cash flows discounted using a current lending rate. They are classified as level 3 in the hierarchy due to the inclusion of unobservable inputs including counterparty credit risk.

For Level 3 financial instruments, the fair value has been based on present values and the discount rates used, are adjusted for counterparty or own risk.

32 Financial risk management

The Company''s business activities expose it to a variety of financial risks, namely liquidity risk, market risks and credit risk. The Company''s management has overall responsibility for the establishment and oversight of the Company''s risk management framework. The Company has constituted a Risk Management framework, through which management develops and monitors the Company''s risk management policies. The key risks and mitigating actions are also placed before the Board of directors 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 to control and 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 Risk Management framework of the Company is supported by the Finance team and experts of respective business divisions that provides assurance that the Company''s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company''s policies and risk objectives. The activities are designed to:

-protect the Company''s financial results and position from financial risks -maintain market risks within acceptable parameters, while optimising returns; and -protect the Company''s financial investments, while maximising returns.

The Treasury department provides funding and foreign exchange management services for the Company''s operations. In addition to guidelines and exposure limits, a system of authorities and extensive independent reporting covers all major areas of treasury''s activity. "

This note explains the sources of risk which the entity is exposed to and how the entity manages the risk.

(A) Management of Credit Risk

Credit risk is the risk of financial loss to the Company if a customer or counter-party fails to meet its contractual obligations. Cash and cash equivalents & bank balances

The Company is also exposed to credit risk on cash and cash equivalents and bank balances other than cash and cash equivalents. These balances (other than cash on hand) are with high credit rating banks which are governed by Reserve Bank of India. The company believes its credit risk in such bank balances is immaterial.

Security deposits and other receivables

With respect to other financial assets namely security and other deposits and other receivables, the maximum exposure to credit risk is the carrying amount of these classes of financial assets presented in the balance sheet. These are actively monitored and confirmed by the treasury department of the Company.

Trade receivables

The Company measures the expected credit loss of trade receivables from customers based on historical trend, industry practices and the business environment in which the entity operates. Loss rates are based on actual credit loss experience and past trends which is very negligible.

Based on the historical data, loss on collection of receivable as at March 31, 2024 and as at April 01, 2023 is not material hence no provision considered.

(B) Management of Liquidity risk

Prudent liquidity risk management implies maintaining sufficient cash and the availability of funding through an adequate amount of committed credit facilities to meet obligations when due and to close out market positions. Due to the dynamic nature of the underlying businesses, company treasury maintains flexibility in funding by maintaining availability under committed credit lines.

"The Company''s approach to managing liquidity is to ensure that it will have sufficient funds to meet its liabilities when due without incurring unacceptable losses. In doing this, management considers both normal and stressed conditions. Material and sustained shortfall in cash flow could undermine the company''s credit rating and impair investor confidence.

The company maintained a cautious funding strategy, with a positive cash generation from operating activities throughout the year ended March 31, 2024, March 31, 2023 . Cash flow from operating activities provides the funds to service the financing of financial liabilities on a day-to-day basis."

(C) Management of Market Risk

Market risk comprises of foreign currency risk and interest rate risk. Foreign currency risk arises from transactions that are undertaken in a currency other than the functional currency of the company. Further, the financial performance and financial position of the company is exposed to foreign currency risk that arises on outstanding receivable and payable balances at a reporting year end date. Interest rate risk arises from variable rate borrowings that expose the company''s financial performance, financial position and cash flows to the movement in market rates of interest.

(D) Interest rate risk

The Company is mainly exposed to interest rate risk due to its variable interest rate borrowings. The interest rate risk arises due to uncertainties about the future market interest rate of these borrowings. The Company mitigates the interest rate risk for borrowing in functional currency, which is linked with MCLR, by negotiating and fixing the rate at the time of renewal of bank facility which remains effective for one year from the date of renewal. In case of borrowing in foreign currency, which is linked with Libor rate, the company mitigates the risk by fixing the margin at the time of renewal of bank facility which remains effective for one year from the date of renewal.

The Company has various non current and current borrowings whose facilities are on a variable interest rate basis. Refer below table for interest rate exposure.

Note : 33 Capital management (a) Risk management

"The Company considers the Networth of its Balance Sheet as managed capital:

"net worth" means the aggregate value of the paid-up share capital and all reserves created out of the profits , securities premium account and debit or credit balance of profit and loss account, , after deducting the aggregate value of the accumulated losses, deferred expenditure and miscellaneous expenditure not written off, as per the balance sheet, but does not include reserves created out of revaluation of assets, write-back of depreciation and amalgamation.

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimise returns to its shareholders. The capital structure of the Company is based on management''s judgement of the appropriate balance of key elements in order to meet its strategic and day-to day needs.

The Company consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust the capital structure, the Company may adjust the amount of dividends paid to shareholders, reduce capital or issue new shares." Consistent with others in the industry, the company monitors capital on the basis of the following gearing ratios: debts (Total borrowings net of cash and cash equivalents) divided by Total ''equity'' (as shown in the Balance Sheet)

Note : 38 ADDITIONAL REGULATORY INFORMATION REQUIRED BY SCHEDULE-III

a. The Company does not have any benami property where any proceedings have been initiated on or are pending against the Company for holding benami property under the Benami Transactions (Prohibitions) Act, 1988 (45 of 1988) and rules made thereunder.

b. The Company has not been declared willful defaulter by any bank or financial institution or government or any governmentauthority.

c. The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

d. 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:

- directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company (Ultimate Beneficiary) or

- provide any guarantee, security or the like to or on behalf of the ultimate beneficiary.

e. 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

- 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

- provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

f. The Company does not have any 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.

g. The Company has not traded or invested in crypto currency or virtual currency during the year under review.

h. There are no charges or satisfaction which are yet to be registered with Registrar of Companies beyond the statutory period.

i. The Company has no transactions with the Companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

j. The company has no foreign exchange earnings and out go during the year.

The Accompanying Notes are an Integral Part of Financial Statement.

As per our report of even date attached

For S D P M & Co. FOR & ON BEHALF OF THE BOARD

Chartered Accountants

Firm Registration No.: 126741W Sd/- Sd/-

Prafulla Gattani Daxesh Shah

Managing Director Director

DIN : 00147844 DIN:00325284

Sd/- Sd/- Sd/-

Sunil Dad Rumit Shah Anjali Maheshwari

PARTNER Chief Financial Officer Company Secretary

Membership No.: 120702 PAN: AFGPS3296D PAN: AVQPM4709B

UDIN: 24120702BKHIFC8131

Date : 08/05/2024 Date : 08/05/2024

Place: Ahmedabad Place : Ahmedabad

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Mar 31, 2015

1. Corporate Information:

Hipolin Limited ("The Company") was incorporated in March 31,1994 under the provision of the Companies Act, 1956. The Company is engaged in manufacturing of Detergent Powder & Cake and alike products. The manufacturing facility for the same is set up at A/1/1, Nilkanth Ind. Estate, Nr, Iyava Bus Stand, Ta. : Sanand, Dist.: Ahmedabad, Gujarat.The equity shares of the Company are listed on Bombay Stock Exchange Ltd.

2. Rights, Preferences and Restrictions

The authorised share capital of the Company has only one class of shares referred to as 'equity shares' having a par value of Rs.10/-each.

The rights and privileges to equity shareholders are general in nature and defined under the Articles of Association.

The equity shareholders shall have:

I) One vote and poll when present in person (including a body corporate by duly authorised representative) or by an agent duly authorised under a power of attorney or by a proxy his voting right shall be in proportion to his share to the paid equity share capital of the company. However, no member shall exercise any voting rights in respect of any share registered in his name on which any class or other sums presently Payable by him have not been paid or in regard to which the company has exercised any right of lien.

ii) subject to the rights of person if any, entitled to share with special rights as to dividends, all dividends shall be declared and paid according to the amount paid or credited as paid to the shares in respect where of the dividend is payable.

3. Previous year's figures have been regrouped, reworked, rearranged and reclassified whenever necessary.

4. SEGMENT REPORTING

The Company has only one reportable business segment i.e. Detergent Powder & cake as primary segment.

5. RELATED PARTY TRANSACTION DISCLOSURES

a) List of related parties with whom transactions have taken place during the year and relationship

SR. No. Name

1 Shri Bhupendra J. Shah

2 Shri Jaykumar J. Shah

3 Shri Shailesh J. Shah

4 Shri Daxesh B. Shah* Key Managerial Personnel

5 Shri Rumit B. Shah*

6 Shri Vivek S. Shah*

7 Shri Bharat J. Shah

8 Shri Subhash J. Shah



1 Shri Bharat J. Shah**

2 Shi Subhash J. Shah**

3 Shri Apurva S. Shah Relatives of Key Managerial Personnel

4 Shri Daxesh B. Shah

5 Shri Rumit B. Shah

6 Shri Vivek S. Shah

* Shri Daxesh B. Shah, Vivek S. Shah and Shri Rumit B. Shah resigned as Key Managerial Personnel w.e.f. 13.02.2015 but remain as a relative of Key Mangerial personnel from the same date of resignation

** Shri Bharat J. Shah and Shri Subhash J. Shah were resigned as relatives of Key Managerial Personnel w.e.f.13.02.2015 but were appointed as Key Mangerial Personnel from the same date i.e., 13.02.2015

6. Contingent Liabilities Not Provided For In Accounts:

Rs. (In Lacs)

2014-15 2013-14

In respect of Bank Guarantee issued

In favour of Government of India. 169.00 244.00

In respect of disputed Income Tax matters 42.69 -

7. Excise Duty amounting to Rs. 0.20 lacs (Previous Year Rs. 0.83 lacs) on finished goods not cleared is neither provided nor is the same considered for valuation of closing stock. This has no impact on the profit/ loss of the accounting year.

8. a) In the opinion of the Directors, Current assets , Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

b) The confirmations of some parties for the amount due to them/ amount due from them as per books of accounts are not received. Necessary adjustments, if any, will be made when the accounts are reconciled/ settled.

9. Since it is not possible to ascertain with reasonable certainty the quantum of accruals in respect of certain Insurance and other claims, Excise and custom duty Refund, Interest on overdue bills from customers, etc., the same are to be accounted on cash basis.

10. Earning Pershare(EPS):

The earnings considered in ascertaining the Company's Basic EPS in the attributable net profit /(loss) to the equity shareholders'. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the period:

11. All the Raw Materials, Components and other items consumed are indigenous. There is no consumption of imported Raw material, Components and other items.

12. Based on the information available with the company the balance due to Small Enterprise as under Micro, Small and Medium Enterprise Development Act, 2006("MSMED Act") is Rs. 3,25,408/-

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Mar 31, 2014

1.1. Previous year''s figures have been regrouped, reworked, rearranged and reclassified wherever necessary.

20013-14 2012-13 Rs.in Lacs Rs.in Lacs

1.2. Contingent Liabilities Not Provided For In Accounts :

Bank Guarantee issued in favour Government of India. 244.00 244.00

1.3. Excise duty amounting to Rs. 0.83 lac (Previous year Rs. 4.61 LACS) on Finished Goods not cleared is neither provided for nor the same is considered for valuation of closing stock. This has no impact on the profit of the accounting year.

1.4. (a) In the opinion of the Directors, Current assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

(b) The confirmations of some of the parties for the amounts due to them / amount due from them as per books of accounts are not received. Necessary adjustments, if any, will be made when the accounts are reconciled / settled.

1.5. Since it is not possible to ascertain with reasonable certainty the quantum of accruals in respect of certain Insurance and other claims, Excise and custom duty Refund, Interest on overdue bills from customers, etc., the same are accounted on cash basis.

1.6. Impairment ofAssets.

The carrying amounts of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an assets exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use the estimated future cash flows are discounted to the present value at the weighted average cost of capital. During the year there is no impairment losses on assets of the Company.

1.7. Employee benefits

The accounting liability on account of gratuity and leave is accounted as per AS 15 dealing with Employee benefits.

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment.

1.8. Earning Per Share (EPS) The earnings considered in ascertaining the company''s Basic EPS in the attributable net profit or loss to the equity shareholder''s as per AS - 20 "Earnings per Share". The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the period.

1.9. Based on information available with the Company the balance due to Small Enterprise as under the under MSMED Act, 2006 is Rs. 7,05,617/-

1.10. Additional Depreciation on increased amount on revaluation of Fixed Assets amounting to Rs. 263821 (Previous year Rs. 263821) is charged to Profit and loss Account

1.11. SEGMENTAL REPORTING

The Company operates in only one segment i .e. detergent powder and cake.

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Mar 31, 2013

1. Excise duty amounting to Rs. 4.61 lacs (Previous year Rs. 3.82 LACS) on Finished Goods not cleared is neither provided for nor the same is considered for valuation of closing stock. This has no impact on the profit of the accounting year.

2. (a) Intheopinion of the Directors, Current assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

(b) The confirmations of some of the parties for the amounts due to them / amount due from them as per books of accounts are not received. Necessary adjustments, if any, will be made when the accounts are reconciled / settled.

3. Since it is not possible to ascertain with reasonable certainty the quantum of accruals in respect of certain Insurance and other claims, Excise and custom duty Refund, Interest on overdue bills from customers, etc., the same are to be accounted on cash basis.

The Company has not employed any person drawing remuneration of Rs. 5,00,000/per month or more or Rs. 60,00,000/- per annum.

4. Impairment of Assets.

The carrying amounts of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an assets exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use the estimated future cash flows are discounted to the present value at the weighted average cost of capital. During the year there is no impairment losses on assets of the Company.

5. Employee benefits

The accounting liability on account A-gratuity and leave is accounted as per AS 15 dealing with Employee benefits.

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and tenure of employment.

In accordance with the requirements of the new Accounting Standard (AS 22) dealing with the taxes on income issued by The Institute of Chartered Accounts of India, the net deferred liability relating to previous year amounting to Rs. 161.25 lacs has been adjusted against the general reserve and profit and loss account of Rs. 78.10 lacs and Rs. 83.15 lacs respectively. The net Deferred Tax Liability for the current year of Rs. (18.54) lacs (p.y Rs. 3.50 lacs) has adjusted for reversing timing difference.

6. Earnings Per Share (EPS) The earnings considered in ascertaining the company''s Basic EPS in the attributable net profit or loss to the equity shareholder''s as per AS -20 "Earnings per Share" issued by ICAI. The'' number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the period.

7. Based on information available with the Company the balance due to Small Enterprise asunder the under MSMED Act, 2006 is 8,91,567/-

8. Additional Depreciation on increased amount on revaluation of Fixed Assets amounting to Rs. 263821 (Previous year Rs. 263821) is charged to Profit and loss Account

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Mar 31, 2012

1. Previous year's figures have been regrouped, reworked, rearranged and reclassified wherever necessary.

20011-12 2010-11 Rs.inLacs Rs.in Lacs

2. CONTINGENT LIABILITIES NOT PROVIDED FOR IN ACCOUNTS:

Bank Guarantee issued in favour Government of India. 244.00 219.00

3. Excise duty amounting to Rs.3.82lacs (Previous year Rs.1.37 LACS) on Finished Goods not cleared is neither provided for nor the same is considered for valuation of closing stock. This has no impact on the profit of the accounting year.

4. (a) In the opinion of the Directors, Current assets, Loans and Advances have the

value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

(b) The confirmations of some of the parties for the amounts due to them / amount due from them as per books of accounts are not received. Necessary adjustments, if any, will be made when the accounts are reconciled / settled.

5. Since it is not possible to ascertain with reasonable certainty the quantum of accruals in respect of certain Insurance and other claims, Excise and custom duty Refund, Interest on overdue bills from customers.etc, the same are to be accounted on cash basis.

6. Impairment of Assets.

The carrying amounts of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an assets exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use the estimated future cash flows are discounted to the present value at the weighted average cost of capital. During the year there is no impairment losses on assets of the Company

7. Employee benefits

The accounting liability on account of gratuity and leave is accounted as per AS 15 dealing with Employee benefits.

The Company operates a defined benefit plan (the Gratuity Plan) covering eligible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee's salary and tenure of employment.

8. Based on information available with the Company the balance due to Small Enterprise asunder the underMSMEDAct,2006is 14,45,592/-.

9. Information required intermsofpart iv of Schedule (VI) of the Company Act,1956 is attached.

10. Additional Depreciation on increased amount on revaluation of Fixed Assets amounting to Rs. 263821 (Previous year Rs. 263821) is charged to Profit and loss Account

11. In accordance with the requirements of the new Accounting Standard (AS 22) dealing with the taxes on income issued by The Institute of Chartered Accounts of India, the net deferred liability relating to previous year amounting to Rs. 161.25 lacs has been adjusted against the general reserve and profit and loss account of Rs. 78.10 lacs and 83.15 lacs respectively. The net Deferred Tax Liability for the current year of Rs. 3.50 lacs (p.y Rs.0.48 lacs) has adjusted for reversing timing difference.

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Mar 31, 2010

1. Previous years figures have been regrouped, reworked, rearranged And reclassified

2009-10 2008-09 Rs.in Lacs Rs.in Lacs

2. CONTINGENT LIABILITIES NOT PROVIDED

FOR IN ACCOUNTS:

(i) Tax liability in respect thereof demanded by the income tax department forwhich 10.46 27.85 the appeal is pending.

(ii) Bank Guranty issued in favour Government of India. 219.00 70.00



3. Excise duty amounting to Rs.4.53 lacs (Previous year Rs.6.72 LACS) on Finished Goods not cleared is neither provided for nor the same is considered for valuation of closing stock. This has no impact on the profit of the accounting year.

4. (a) In the opinion of the Directors, Current assets, Loans and Advances have the value at which they are stated in the Balance Sheet, if realized in the ordinary course of business.

(b) The confirmations of some of the parties for the amounts due to them / amount due from them as per books of accounts are not received. Necessary adjustments, if any, will be made when the accounts are reconciled / settled.

5. Since it is not possible to ascertain with reasonable certainty the quantum of accruals in respect of certain Insurance and other claims, Excise and custom duty Refund, Interest on overdue bills from customers,etc., the same are to be accounted on cash basis.

6. Impairment of Assets.

The carrying amounts of assets are reviewed at each balance sheet date, if there is any indication of impairment based on internal/external factors. An impairment loss will be recognized wherever the carrying amount of an assets exceeds its estimated recoverable amount. The recoverable amount is greater of the assets net selling price and value in use. In assessing the value in use the estimated future cash flows are discounted to the present value at the weighted average cost of capital. During the year there is no impairment losses on assets of the Company.

7. Employee benefits

The accounting liability on account of gratuity and leave is accounted as per AS 15 dealing with Employee benefits.

The Company operates a defined benefit plan (the Gratuity Plan) covering^Mgible employees, which provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employees salary and tenure of employment.

8. Earning Per Share (EPS) The earnings considered in ascertaining the companys Basic EPS in the attributable net profit or loss to the equity shareholders as per AS -20 "Earnings per Share" issued by ICAI. The number of shares used in computing Basic EPS is the weighted average number of shares outstanding during the period.

9. Based on information available with the Company the balance due to Small Enterprise asunder the under MSMEDAct,2006 is 8,36,784/-.

10. Information required intermsofpart iv of Schedule(VI)of the Company Act,1956 is attached.

11. Additional Depreciation on increased amount on revaluation of Fixed Assets amounting to Rs.263821 (Previous year Rs.263821) is charged to Profit and loss Account

12. In accordance with the requirements of the new Accounting Standard (AS 22) Dealing with the taxes on income issued by The Institute of Chartered Accounts of India, the net deferred liability relating to previous yearamounting to Rs. 161.25 lacs has been adjusted against the general reserve and profit and loss account ofRs. 78.10 lacs and 83.15 lacs respectively. The net Deferred Tax Liability forthe current year of Rs. 4.66 lacs Rs.23.83 lacs) has adjusted for reversing timing difference.