Notes to Accounts of IFB Industries Ltd.

Mar 31, 2025

q. Provisions and contingent liabilities

The Company recognises a provision when there is a present obligation as a result of an obligating event that
probably requires outflow of resources and a reliable estimate can be made of the amount of the obligation.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a
third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received
and the amount of the receivable can be measured reliably. When a provision is measured using the cash flows
estimated to settle the present obligation, it''s carrying amount is the present value of those cash flows (when the
effect of the time value of money is material). Insurance claims are accounted for on the basis of claims admitted/
expected to be admitted and to the extent that the amount recoverable can be measured reliably and realisation
in respect thereof is virtually certain.

A disclosure of a contingent liability is made when there is a possible obligation or a present obligation that may,
but probably will not, require an outflow of resources. When there is a possible obligation or a present obligation
and the likelihood of outflow of resources is remote, no provision or disclosure of contingent liability is made.
Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

r. Leases

The Company assesses whether a contract is or contains a lease, at the inception of a contract. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a time in exchange
for a consideration.

i. Company as a lessee

The Company recognises a right-of-use asset and corresponding lease liability at the lease commencement
date with respect to all lease arrangements in which it is a lessee, except for short- term leases (defined as
leases with a lease term of 12 months or less) and leases of low-value assets. For these leases, the Company
recognises the lease payments as an operating expense on a straight-line basis over the term of the lease
unless another systematic basis is more representative of the time pattern in which economic benefits from
the leased assets are consumed.

Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities
include the net present value of fixed payments (including in-substance fixed payments).

The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease liability
adjusted for any lease payments made at or before the commencement date, plus any initial direct costs
incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying
asset or the site on which it is located, less any lease incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the commencement
date over the lease term and evaluated for any impairment losses and adjusted for any remeasurement of
the lease liability. The Company applies Ind AS 36 to determine whether a right-of-use asset is impaired
and accounts for any identified impairment loss as described in the policy for ''Impairment of tangible and
intangible assets''.

Whenever the Company incurs an obligation for costs to dismantle and remove leased assets, restore
the site on which it is located or restore the underlying asset to the condition required by the terms and
conditions of the lease, a provision is recognised and measured under Ind AS 37. To the extent those costs
relate to a right- of-use asset, the costs are included in the right-of-use asset, unless the costs are incurred
to produce inventories.

The lease liability is initially measured at the present value of the lease payments that are not paid at the
commencement date, discounted using the Company''s incremental borrowing rate. It is re-measured when
there is a change in future lease payments arising from a change in an index or rate, if there is a change in
the Company''s estimate of the amount expected to be payable under a residual value guarantee, or if the
Company changes its assessment of whether it will exercise a purchase, extension or termination option.
When the lease liability is re-measured in this way, a corresponding adjustment is made to the carrying
amount of the right-of-use asset or is recorded in the statement of profit or loss if the carrying amount of
the right-of-use asset has been reduced to zero.

In determining the lease term, management considers all facts and circumstances that create an economic
incentive to exercise an extension option, or not exercise a termination option. Extension options (or
periods after termination options) are only included in the lease term if the lease is reasonably certain to be

extended (or not terminated).

For leases terms, the following factors are normally the most relevant:

- If there are significant penalties to terminate (or not extend), the Company is typically reasonably
certain to extend (or not terminate)

- If any leasehold improvements are expected to have a significant remaining value, the Company is
typically reasonably certain to extend (or not terminate)

- Otherwise, the Company considers other factors including historical lease durations and the costs
and business disruption required to replace the leased asset.

The lease term is reassessed if an option is actually exercised (or not exercised) or the Company becomes
obliged to exercise (or not exercise) it. The assessment of reasonable certainty is only revised if a significant
event or a significant change in circumstances occurs, which affects this assessment, and that is within the
control of the lessee.

Variable lease payments that do not depend on an index or rate are not included in the measurement of
the lease liability and right-of-use asset. The related payments are recognised as an expense in the period
in which the event or condition that triggers those payments occurs and are presented in the line ''Other
Expenses'' in the statement of profit or loss.

The right-of-use assets and lease liabilities are presented as a separate line item in the balance sheet.
ii. Company as a lessor

Leases in which the Company does not transfer substantially all the risks and rewards of ownership of the
assets to the lessee are classified as operating leases.

Lease receipts under operating leases are recognised as an income, on a straight-line basis in the statement
of profit and loss over the lease term except where the lease payments are structured to increase in line with
expected general inflation.

The Company does not have any finance lease arrangements.

s. Operating segments

Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision-maker (CODM). The CODM, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the divisional Chief Executive Officers.

Segments are organised based on business which have similar economic characteristics as well as exhibit
similarities in nature of products and services offered, the nature of production processes, the type and class of
customer and distribution methods.

Segment revenue arising from third party customers is reported on the same basis as revenue in the standalone
financial statements. Inter-segment revenue is reported on the basis of transactions which are primarily market
led. Segment results represent profits before finance charges, unallocated expenses and taxes.

"Unallocated expenses" represents revenue and expenses attributable to the Company as a whole and are not
attributable to segments.

t. Financial instruments

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial liability or
equity instrument of another entity. Financial assets and financial liabilities are recognised when the Company
becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are
initially measured at fair value except for trade receivables that do not have a significant financing component
which are measured at transaction price.

Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities
(other than financial assets and financial liabilities at fair value through profit and loss) are added to or deducted
from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction
costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit
and loss are recognised immediately in the statement of profit and loss.

Financial assets and liabilities are offset and the net amount is included in the balance sheet where there is a
legally enforceable right to offset the recognised amounts and there is an intention to settle on a net basis or
realise the asset and settle the liability simultaneously.

u. Financial assets

All regular way purchases or sales of financial assets are recognised and derecognised on a trade date basis.
Regular way purchases or sales are purchases or sales of financial assets that require delivery of assets within
the time frame established by regulation or convention in the marketplace.

All recognised financial assets are subsequently measured in their entirety at either amortised cost or fair value,
depending on the classification of the financial assets.

Classification

Management determines the classification of an asset at initial recognition depending on the purpose for which
the assets were acquired. The subsequent measurement of financial assets depends on such classification.

Financial assets are classified as those measured at:

(a) Amortised cost, where the financial assets are held solely for collection of contractual cash flows and the
contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.

(b) Fair value through other comprehensive income, where the financial assets are held not only for collection of
cash flows arising from payments of principal and interest but also from the sale of such assets. Such assets are
subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value
being recognised in other comprehensive income.

(c) Fair value through profit and loss, where the assets are managed in accordance with an approved investment
strategy that triggers purchase and sale decisions based on the fair value of such assets. Such assets are
subsequently measured at fair value, with unrealised gains and losses arising from changes in the fair value
being recognised in the statement of profit and loss in the period in which they arise.

Trade receivables, cash and cash equivalents, other bank balances, loans and other financial assets are classified
for measurement at amortised cost. Derivative instruments are measured at fair value through profit and loss
while investments may fall under any of the aforesaid classes. However, in respect of particular investments in
equity instruments that would otherwise be measured at fair value through profit and loss, an irrevocable election
at initial recognition may be made to present subsequent changes in fair value through other comprehensive
income.

Financial assets at amortised cost are subsequently measured at amortised cost using effective interest method.
The effective interest method is a method of calculating the amortised cost of an instrument and of allocating

interest income over the relevant period. The effective interest rate is the rate that exactly discounts estimated
future cash receipts (including all fees and points paid or received that form an integral part of the effective
interest rate, transaction costs and other premiums or discounts) through the expected life of the debt instrument,
or, where appropriate, a shorter period, to the net carrying amount on initial recognition.

Trade Receivables

Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business and reflects the Company''s unconditional right to consideration (i.e., payment is due only on
the passage of time). Trade receivables are recognised initially at the transaction price as they do not contain
significant financing components. The Company holds the trade receivables with the objective of collecting the
contractual cash flows and therefore measures it subsequently net of loss allowances.

Cash and Cash Equivalents

For the purpose of presentation in the Statement of Cash Flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other short term, highly liquid investments with original
maturities of three months or less that are readily convertible to known amounts of cash and which are subject
to an in significant risk of changes in value.

Recognition

Financial assets include investments, trade receivables, derivative instruments, cash and cash equivalents, other
bank balances, loans and other financial assets. Such assets are initially recognised at transaction price when the
Company becomes party to contractual obligations. The transaction price includes transaction costs unless the
asset is being fair valued through the statement of profit and loss.

Impairment

At each reporting date a financial asset such as investment, trade receivable, loans and other financial assets held
at amortised cost and financial assets that are measured at fair value through other comprehensive income are
tested for impairment based on evidence or information that is available without undue cost or effort. Expected
credit loss is assessed and loss allowance is recognised if the credit quality of that financial asset has deteriorated
significantly since initial recognition.

Loss allowances for financial assets measured at amortised cost are deducted from the gross carrying amount of
the assets. For debt securities at fair value through other comprehensive income, the loss allowance is recognised
in other comprehensive income and is not reduced from the carrying amount of the financial asset in the balance
sheet.

The gross carrying amount of a financial asset is written off (either partially or in full) to the extent that there is no
realistic prospect of recovery. This is generally the case when the Company determines that the trade receivable
does not have assets or sources of income that could generate sufficient cash flows to repay the amounts subject
to the write-off. However, financial assets that are written off could still be subject to enforcement activities
under the Company''s recovery procedures, taking into account legal advice where appropriate. Any recoveries
made are recognised in statement of profit and loss.

Reclassification

When and only when the business model is changed the Company shall reclassify all affected financial assets
prospectively from the reclassification date as subsequently measured at amortised cost, fair value through other
comprehensive income, fair value through profit and loss without restating the previously recognised gains,
losses or interest and in terms of the reclassification principles laid down in the Ind AS relating to financial
instruments.

De-recognition

Financial assets are derecognised when the right to receive cash flows from the assets has expired, or has
been transferred, and the Company has transferred substantially all of the risks and rewards of ownership.
Consequently, if the asset is one that is measured at:

(a) Amortised cost, the gain or loss is recognised in the statement of profit and loss.

(b) Fair value through other comprehensive income, the cumulative fair value adjustments previously taken to
reserves are reclassified to the statement of profit and loss unless the asset represents an equity investment
in which case the cumulative fair value adjustments previously taken to reserves is reclassified within
equity.

v. Financial liabilities and equity instruments

Classification:

Debt and equity instruments issued by the Company are classified as either financial liabilities or as equity in
accordance with the substance of the contractual arrangements and the definitions of a financial liability and an
equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting
all of its liabilities. Equity instruments issued by the Company are recognised at the proceeds received.

Financial liabilities

Borrowings, trade payables and other financial liabilities are initially recognised at the value of the respective
contractual obligations. They are subsequently measured at amortised cost. Any discount or premium on
redemption / settlement is recognised in the statement of profit and loss as finance cost over the life of the
liability using the effective interest method and adjusted to the liability figure disclosed in the balance sheet.

Financial liabilities are derecognised when the liability is extinguished, i.e., when the contractual obligation is
discharged, cancelled and on expiry.

Trade Payables and Other Financial Liabilities

These amounts represent liabilities for goods and services provided to the Company prior to the end of financial
year which are unpaid. The amounts are unsecured and are usually paid within 30-60 days of recognition. Trade
and other payables are presented as current liabilities unless payment is not due within 12 months after the
reporting period. Other financial liabilities are recognised when the Company becomes a party to the contractual
provisions of the instrument. Other financial liabilities are initially measured at the amortised cost unless at initial
recognition, they are classified as fair value through profit or loss. Other financial liabilities are subsequently
measured at amortised cost using the effective interest rate method. A financial liability is derecognised when
the obligation specified in the contract is discharged, cancelled or expired.

De-recognition

The Company de-recognises financial liabilities when, and only when, the Company''s obligations are discharged,
cancelled or they expire.

w. Earning per share

Basic earnings per share are calculated by dividing the profit and loss for the year attributable to shareholders
by the weighted average number of shares outstanding during the year. For the purpose of calculating diluted
earnings per share, the profit and loss for the year attributable to shareholders and weighted average number of
shares outstanding during the year is adjusted for the effects of all dilutive potential shares.

x. Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the
business less accumulated impairment losses, if any.

Goodwill is not amortised but is reviewed for impairment at least annually. For the purposes of impairment
testing, goodwill is allocated to each of the Company''s cash-generating units (or groups of cash-generating
units) that is expected to benefit from the synergies of the combination. A cash-generating unit to which goodwill
has been allocated is tested for impairment annually, or more frequently when there is an indication that the
unit may be impaired. If the recoverable amount of the cash-generating unit is less than it''s carrying amount, the
impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to
the other assets of the unit pro-rata based on the carrying amount of each asset in the unit. Any impairment loss
for goodwill is recognised directly in the statement of profit or loss. An impairment loss recognised for goodwill
is not reversed in subsequent periods. On disposal of the relevant cash-generating unit, the attributable amount
of goodwill is included in the determination of the profit or loss on disposal.

2. USE OF ESTIMATES AND JUDGEMENTS

The preparation of standalone financial statements in conformity with generally accepted accounting principles
requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities
and disclosure of contingent liabilities at the date of the standalone financial statements and the results of operations
during the reporting period end. Although these estimates are based upon management''s best knowledge of current
events and actions, actual results could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the
revision and future periods if the revision affects both current and future periods.

In particular, information about the significant areas of estimation, uncertainty and critical judgements in applying
accounting policies that have the most significant effect on the amounts recognised in the standalone financial
statements are related to:

(i) Useful life of property, plant and equipment and intangible assets

(ii) Provision for product warranties

(iii) Provision for employee benefits

(iv) Provisions and contingent liabilities

(v) Impairment of investments

(vi) Leases

(vii) Inventory valuation

(viii) Impairment of Goodwill

Useful life of property, plant and equipment and intangible assets - (refer note 1B(e), note 1B(g), note 3A and note
3B):

As described in the material accounting policies, the Company reviews the estimated useful lives of property, plant
and equipment and intangible assets at the end of each reporting period. The Company is required to determine
whether its intangible assets have indefinite or finite life which is a subject matter of judgement.

Provision for product warranties - (refer note 1B(p) and note 18):

Provision is estimated in respect of warranty cost in the year of sale of goods and it represents the present value of
the management''s best estimate of the future outflow of economic benefit that will be required under the Company''s

obligation for warranties. It is estimated by the management on the basis of a technical evaluation and based on
specific warranties, claims and claim history.

The determination of provision for product warranties takes into account assumptions which is a subject matter of
judgement. This reassessment may result in change in depreciation and amortisation expense in future periods.

Provision for employee benefits (refer note 1B(m) and note 32):

The determination of Company''s liability towards defined benefit obligation and other long-term employee benefits
to employees is made through independent actuarial valuation including determination of amounts to be recognised
in the statement of profit and loss and in other comprehensive income. Such valuation depends upon assumptions
determined after taking into account inflation, seniority, promotion and other relevant factors such as supply and
demand factors in the employment market. Information about such valuation is provided in notes to accounts.

Provisions and contingent liabilities (refer note 1B(q) and note 36):

Legal proceedings covering some of the matters are pending against the Company. Due to the uncertainty inherent
in such matters, it is often difficult to predict the final outcome. Where an outflow of funds is believed to be probable
and a reliable estimate of the outcome of the dispute can be made based on management''s assessment of specific
circumstances of each dispute and relevant external advice, management provides for its best estimate of the
liability. Such accruals are by nature complex and can take number of years to resolve and can involve estimation
uncertainty.

Impairment of Investment (refer note 1B(k) and note 5):

The Company estimates the recoverable value of its investments based on future cash flows after considering current
economic trends, estimated future operating results and growth rates. The estimated cash flows are developed using
internal forecasts with key assumptions. The cash flow forecasts are discounted using a suitable discount rate in order
to calculate the present value.

Lease liabilities and Right of use assets - (refer note 1B(r) and note 34:

The Company evaluates if an arrangement qualifies to be a lease as per the requirements of Ind AS 116 "Leases".
Identification of a lease requires significant judgement in assessing the lease term including anticipated renewals and
the applicable discount rate. The lease payments are discounted using the interest rate implicit in the lease, if that rate
can be readily determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate.

Inventory Valuation- (refer note 1B(l) and note 10):

The allocation of fixed production overheads is based on the normal capacity of the production facilities. The actual
capacity of production may be used if it approximates normal capacity. Unallocated overheads are recognized as
an expense in the period in which they are incurred. Variable production overheads are allocated to each unit of
production on the basis of the actual use of the production facilities.

Impairment of Goodwill

Determing whether goodwill is impaired requires an estimation of the value is use of the cash generating usits of
which goodwill has been allocated. The value is use calculation requires the Company to estimate the future cashflows
expected to arise trom the cash-generating unit and a suitable discount rate in order to calculate present value which
is a subject matter of judgement.

The Company obtains independent valuations for its investment properties annually. The evidences for fair value is
current prices in an active market for similar properties. Alternatively the Company considers information from a variety
of sources including current prices in an active market for properties of different nature or recent prices of similar
properties in less active market adjusted to reflect those differences.

The fair values of investment properties have been determined by Nag Chowdhury Associates who is a registered
valuer as defined under Rule 2 of Companies (Registered Valuer and Valuation) Rules, 2017. A valuation model (market
approach) has been adopted and all resulting fair value estimates for investment properties are included in level 3
category. There has been no change in the valuation technique as compared to 31 March 2024.

(iv) The Company has no restrictions on the realisability of its investment properties and no contractual obligations to either
purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

(v) All the title deeds of the investment properties are held in the name of the Company.

Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and
share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The
voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity
capital of the Company.

Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been
paid.

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

factory lands with buildings/ structures/ sheds constructed thereupon and located at Mouza: Bamunari, Pargana: Boro,
P.D.: Dankuni, District: Hooghly, PIN-712250, West Bengal as collateral security until full repayment & settlement of
the principal amount of loan(s)/ credit facility(ies) together with commission, interests, costs & other dues thereof.

The said loan is being paid in equal quarterly installments of Rs. 0.52 crores and with a final installment payment of Rs.
0.53 crores, the same would be discharged by October 2028. The interest rate is 7.25% p.a.

(b) For sanction of term loans amounting to Rs. 50.00 crores (including Capex Letter of Credit amounting to Rs. 15 crores
as its sub-limit) by ICICI Bank Ltd. (Balance as at 31 March 2025 is Rs. 14.00 crores and balance as at 31 March 2024
is Rs. 22.00 crores), following securities have been created:

- Exclusive charge over the movable properties including movable plant and machinery, machinery spares, tools and
accessories and other movables, both present and future, whether installed or not and whether now lying loose or
in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of
the security of these presents be brought into or upon or be stored or be in or about all the Company''s engineering
stamping business''s factories, premises and godowns or wherever else the same may be or be held by any party to the
order or disposition of the Company or in the course of transit or in high seas or on order, or delivery, howsoever and
wheresoever in the possession of the Company and either by way of substitution or addition in such manner that the
security cover of 1.25 times is maintained. The said borrowings of Stamping Division is being repaid in 20 quarterly
installments of Rs. 1.75 crores starting from 19 May 2022. The same would be discharged by February 2027. The rate of
interest is sum of I-MCLR-6M and Spread per annum, subject to a minimum Of I-MCLR-6M.

(c) For sanction of credit facilities amounting to Rs. 60.00 crores and Rs. 10.00 crores by DBS Bank India Ltd. (Balance
as at 31 March 2025 is Nil and balance as at 31 March 2024 is Rs. 3.10 crores), following securities have been created:

- Hypothecation by way of first and exclusive floating charge over all present and future movables plant and machinery,
equipment, appliances, furniture, vehicles, machinery, spares and stores, tools and accessories and other moveables
whether or not installed and whether lying loose or in cases or which are now lying or stored in or about and may
hereafter from time to time during the currency of this deed be brought into or upon or be stored in or about all the
Company''s factories, premises, warehouses and godowns or wherever else the same may be or be held by any party to
the order or disposition of the Company or in the courses of transit or on high seas or on order, or delivery, howsoever
and wheresoever in the possession of the Company and either by way of substitution or addition (all pertaining to
Company''s units located at Kolkata and Bangalore) stored or to be stored at the Company''s Godowns or premises or
wherever else the same may be except asset charged specifically for debt availed, if any for purchase of conventional
press line subject to NOC being sought from DBS. This Term Loan repaid during the year.

(d) For sanction of external commercial borrowings amounting to USD 2.00 crores by Standard Chartered Bank,
London, (Amount as at 31 March 2025: Nil and amount as at 31 March 2024: USD 0.37 crores) following securities
have been created:

- Hypothecation by way of first and exclusive charge over all present and future moveable properties of the Company''s
manufacturing unit of air conditioners in Goa and on the existing plant and machinery of washing machine division
at Goa (Verna) plant (except exclusive charge to term lenders), including without limitations its moveable plant and
machinery, furniture and fittings, equipments, computers, hardware, computer software, machinery spares, tools and
accessories and other movables, both whether now lying loose or in cases or which are now lying or stored in or
about or shall hereafter from time to time during the continuance of the security of these presents be brought into or
upon or be stored or be in or about all the Company''s premises, warehouses, stockyards and godowns or those of the
Company''s agents, affiliates, associates or representatives or at various worksites or at any upcountry place or places
wherever else the same maybe or be held by any party including, without limitation, the following plot no. N-7, Phase
IV, Survey No. 261/10, Verna Industrial Estate, Verna, Goa - 403722. This external commercial borrowings has been
repaid during the year.

a. Provision is estimated in respect ot warranty cost in the year of sale of goods and it represents the present value ot
the management''s best estimate ot the future outflow ot economic benefit that will be required under the Company''s
obligation tor warranties. It also includes provision in respect ot warranty and installation cost in the year ot sale ot
goods by an associate tor which the Company has earned revenue tor providing services. The revenue earned by the
Company tor the same is included under ''Sale ot services'' in Note 21.

b. Provision tor warranty is expected to be utilised over a period ot 1 to 5 years.

c. The estimates may vary as a result ot product quality, availability ot spare parts, price ot raw materials, altered
manutacturing processes and discount rates.

d. Warranty costs are estimated by the management on the basis ot a technical evaluation and based on specific warranties,
claims and claim history.

(i) There are no charges or satisfaction which are yet to be registered with the Registrar of Companies beyond the statutory

period.

(ii) The borrowing obtained from banks have been applied for the purpose for which such loans were taken.

(iii) Charge and hypothecation details are as follows:

(A) For sanction of working capital facilities amounting to Rs 100 crores by Standard Chartered Bank (Balance as
at 31 March 2025 - Rs. 35.84 crores and 31 March 2024 Nil) following securities have been created

First pari passu charge on the entire current assets of the Company, both present and future. The rate of interest is
Marginal Cost of Funds Lending Rate and Mumbai Interbank Offered Rate for a designated maturity of 1 month
and 3 months, as published by Financial Benchmarks of India Limited.

(B) For sanction of working credit facilities amounting to Rs. 60.00 crores by Kotak Mahindra Bank Ltd (Amount
as at 31 March 2025 - Rs. 40.00 crores and 31 March 2024 Nil), following securities have been created:

- First Pari Passu hypothecation charge on all existing and future current assets of the Company including:

(a) book-debts, receivables, outstanding moneys, claims, demands, bills, contracts, engagements and
securities belonging to or held by the Company and which are now due and owing or accruing and
which may at any time hereafter during the continuance of the security become due and owing or accrue
to the Company.

(b) stocks of raw materials, finished and semi-finished goods, goods in process and consumable stores,
which are now lying or stored in or which may hereafter from time to time during the continuance of the
security be lying or stored in or brought into or be in or about the factories and godowns of the Company
or warehouses, wherever situated; and

(c) related moveables in the course of transit or delivery, whether now belonging or which may hereafter
belong to the Company or which may be held by the person at any place within or outside India to
the order or disposition of the Company and all documents of title including bills of lading, shipping
documents, policies of Insurance and other instruments and documents relating to such moveables
together with benefits of all rights thereto.

- Second pari passu charge on the moveable fixed assets (except those charge to term lenders) if provided
to other working capital bankers.

The rate of interest is Marginal Cost of Funds Lending Rate for a designated period.

(C) Hypothecation details of working capital demand loan by Federal Bank Limited (Amount as at 31 March 2025:
Nil and amount as at 31 March 2024 : Rs. 1.50 crores):

Working capital facilities sanctioned by The Federal Bank Limited is Rs.38.00 crores Out of the sanctioned limit
Rs. 32.00 crores can be used inter-changeably between fund based and non-fund based. Following securities has

32. (i) Defined benefit plan - Gratuity

The Company operates a defined benefit plan for gratuity for its employees.The Company provides for gratuity for its
employees in India who are in continuous service for a period of 5 years or more. It is administered through approved trust in
accordance with its trust deeds and rules. The concerned trust is managed by trustees who provide guidance with regard to
the management of their assets and liabilities and review their performance periodically. Risk mitigation systems are in place
to ensure that the health of the portfolio is regularly reviewed, investments do not pose any significant risk of impairment
and to ensure the adequacy of internal controls.

The Company accounts for the liability for the gratuity benefits payable in the future years based on year end actuarial
valuations.The actuary uses the projected unit credit method.

Risk management

The risks commonly affecting the gratuity liability are expected to be:

1. Interest rate risk - The defined benefit obligation calculated uses a discount rate based on government bonds. If bond
yield falls, the defined benefit obligations will tend to increase.

2. Salary i nflation risk - The present value of the defined benefit obligation is calculated by reference to the salaries of plan
participants. Higher the expected increase in salary, higher the defined benefit obligation.

3. Demographic risk - This is the risk of variability of outcome due to unsystematic nature of decrements that include
mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation
is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It
is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career
employee typically costs less per year as compared to a long service employee.

NOTES :

- The Company is primarily engaged in business of home appliances, engineering (fine blanked components and stamping),
motor and steel. Accordingly the Company considers the above business segment as the primary segment. Segment
revenue, segment results, segment assets and segment liabilities include the respective amount identifiable to each of the
segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business
segment, are shown as unallocable cost and grouped as "Unallocated". Assets and liabilities that cannot be allocated
between the segments are shown as unallocable assets and liabilities and are grouped as "Unallocated". These segments
have been reported in the manner consistent with the internal reporting to divisional Chief executive officer''s, who are the
chief operating decision makers.

- The geographical information considered for disclosure are revenue within India and revenue outside India.

- The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or
more of its revenues from transactions with any single external customer.

* Investments exclude investment in a subsidiary amounting to Rs. 21.60 crores (31 March 2024: Rs. 21.60 crores) and in an
associate amounting to Rs. 97.00 crores (31 March 2024: Rs. 97.00 crores) which are shown at cost in the standalone financial
statements as per Ind AS 27 - ''Separate Financial Statements''.

(iii) Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal
financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market
risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and
financing activities. Accordingly, the Company''s risk management framework has the objective of ensuring that such risks
are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance
with applicable regulation. It also seeks to drive accountability in this regard.

a) Liquidity risks

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquid risk
management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from banks. Furthermore, the Company
has sufficient quantities of finished goods and stock-in-trade which are liquid and readily saleable. Hence the risk
that the Company may not be able to settle its financial liabilities as they become due does not exist.

b) Market risks

The Company does not trade in equities. Treasury activities, focused on managing investments in debt and equity
instruments, are decentralised but administered under a set of approved policies and procedures guided by the
tenets of liquidity, safety and returns. This ensures that investments are only made within the acceptable risk
parameters after due evaluation

The Company''s investments are predominantly held in debt mutual funds. Such investments are susceptible
to market risks that arise mainly from changes in interest rate which may impact the return and value of such
investments. Mark to market movements in respect of these investments are measured at fair value through profit
or loss.

Fixed deposits are held with highly rated banks and generally have a short tenure and are not subject to interest rate
volatility.

The Company has short-term borrowings which are generally not susceptible to interest rate volatility since they
are for short tenure. Long term loans from banks are at highly competitive rates. Hence interest rate fluctuations on
borrowings does not affect the Company significantly.

c) Foreign currency risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar, GBP, SGD, Euro, RMB,
JPY and AED) which are subject to the risk of exchange rate fluctuations.

iii) Foreign currency sensitivity

For every percentage point change in the underlying exchange rate of the outstanding foreign currency
denominated assets and liabilities, holding all other variables constant, the profit before tax would change by
Rs. 2.74 crores for the year ended 31 March 2025 (31 March 2024: Rs 2.25 crores).

d) Credit risk

Credit risk arise from the possibility that the counter party may not be able to settle their obligations. Financial
instruments that are subject to such risk primarily consists of investments, trade receivables, bank deposits, loans,
derivative instruments and other financial assets.

Bank deposits are primarily held with highly rated and different banks.

The Company''s customer base is large and diverse limiting the risk arising out of credit concentration. Further the
credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit
policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities
after due consideration of the counter parties credentials and financial capacity, trade practices and prevailing
business and economic conditions.

In respect of financial guarantee provided by the Company to banks/financial institutions, the maximum exposure
which the Company is exposed to is the maximum amount which the Company would have to pay if the guarantee
is called upon. Based on the expectation at the end of the reporting period, the Company considers that it is more
likely than not that such an amount will not be payable under the guarantees provided.

The Company''s historical experience of collecting receivables and the level of default indicates that the credit risk
is low and generally uniform across markets. Loss allowances are recognised where considered appropriate by the
management.

e) Interest-rate risk

Interest-rate risk is the risk that the fair value or future cash-flows of a financial instrument will fluctuate because
of changes in the market interest rates. The Company''s exposure to the risk of changes in market interest rate
relates primarily to the companies debt obligations with floating interest rates. The risk estimates provided assume
a parallel shift of 50 basis points interest rate across all yield curves. This calculation also assumes that the change
occurs at the balance sheet date and has been calculated based on risk exposures outstanding as at that date. The
year end balances are not necessarily representative of the average debt outstanding during the period.

For every 50 basis point interest rate change, holding all other variables constant, the profit before tax would change
by Rs. 0.49 crores for the year ended 31 March 2025 (31 March 2024: Rs. 0.34 crores).

f) Commodity-price risk

Exposure to market risk with respect to commodity prices primarily arises from the Company''s purchase of imported
raw materials for production of finished goods. Cost of raw materials forms the largest portion of the Company''s
cost of sales. Market forces generally determine prices for such raw materials purchased by the Company. These
prices may be influenced by factors such as supply and demand, production costs and global and regional economic
conditions and growth. Adverse changes in any of these factors may impact the results of the Company. Commodity
price risk exposure is evaluated and managed through operating procedures and sourcing policies.

^AA For investment in equity shares (other than subsidiary and associate), the fair value has been determined using the
discounted cash flow method. The significant unobservable inputs used are earning growth rate and risk adjusted
discount rates. For movement in such investment refer note 22 (v).

All the other financial assets and liabilities that are measured at amortised costs are classified as level 3 fair values in the
fair value hierarchy due to the inclusion of unobservable inputs including counter-party credit risk.

Management uses its best judgement in estimating the fair value of its financial instruments. However, there are inherent
limitations in any estimation techniques. Therefore for substantially all financial instruments, the fair value estimates
presented above not necessarily indicative of the amounts that the company could have realised or paid in sale transactions
as of respective dates. The Company''s policy is to recognise transfers into and out of fair value heirarchy levels as at the
end of the reporting period. There are no transfers between level 1 and 2 during the current and previous year.

Goodwill as stated above is carried at cost and annually tested for impairment in line with applicable Indian Accounting
Standards. The recoverable value of such goodwill has been assessed at value in use using cash flow forecasts based on current
economic trends, estimated future operating results and growth rates. The cash flow forecasts cover a period of five years and
future projections taking the analysis out to perpetuity. The Company has used certain key-assumptions including volume
growth, earnings before interest, tax and depreciation, post-tax discount rate of 19.9% (31 March 2024: 15%) and long-term

growth rate of 3% (31 March 2024: 3%). The outcome of the impairment assessment as on 31 March 2025 for recoverable value
of goodwill has not resulted in any impairment. The management has conducted sensitivity analysis including sensitivity in
respect of discount rates, on the impairment assessment of the recoverable value of goodwill. The Management believes that
no reasonably possible change in any of the key assumptions used in the model would cause the carrying value of goodwill to
materially exceed its recoverable value.

41. The Company has disaggregated revenues from contract with customers for the year by the type of goods and services. The
Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash
flows are affected by industry, market and other economic factors. Refer notes 21 and 33 for revenue disaggregation.

The following table includes revenue expected to be recognised in the future related to annual maintenance contracts and
extended warranty services and advance from customers.

As on 31st March 2024, trade payables includes Rs. 15.63 crores for liabilities under supplier financing. The weighted average of
which have extended the settlement of such original payable to 87 days after physical supply and are due for settlement within
47 days after the year end.

The Company has entered into supplier financing arrangement to ensure easy access of credit to its supplier. The
arrangement is mostly operating in nature as the financing element in the transaction is insignificant and the time
frame in the financing arrangement is mostly consistent with the supplier terms available to the Company. The amount
payable w.r.t. such supplier financing is classified as trade payables.

44. As per the E-Waste (Management) Rules, 2022, as amended, companies dealing in certain categories of products as
specified in Schedule-I therein are required to undertake Extended Producer Responsibility (EPR) for its end-of-life
products. The obligation for a financial year is measured based on sales made in the preceding 9th/10th year and
the Company has met its obligations for the current year. In accordance with Appendix B of Ind AS 37, ''Provisions,
Contingent Liabilities and Contingent Assets'', the Company will have an e-waste obligation for future years, only if it
participates in the market in those years.

45. No proceedings have been initiated on or are pending against the Company for holding benami property under the Benami
Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

48. The Company has complied with the number of layers prescribed under the Companies Act, 2013, read with the Companies
(Restriction on number of layers) Rules, 2017.

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

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

51. (a) No funds have been advanced or loaned or invested (either from borrowed funds or share premium or any other sources

or kind of funds) by the Company to or in any other person(s) or entity(ies), including foreign entities ("Intermediaries"),
with the understanding, whether recorded in writing or otherwise, that the Intermediary shall, whether, directly or
indirectly, lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Company
("Ultimate Beneficiaries") or provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

(b) No funds have been received by the Company from any person(s) or entity(ies), including foreign entities ("Funding
Parties"), with the understanding, whether recorded in writing or otherwise, that the Company shall, whether, 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.

52. The Company is not a Core Investment Company ("CIC") as defined in the regulations made by the Reserve Bank of India.
Further, there are no CICs in the Group (as defined in the Core Investment Companies (Reserve Bank) Directions, 2016) of
which the Company is a part.

53. The Company has filed quarterly returns or statements with the banks for its sanctioned working capital facilities, which are in
agreement with the books of accounts other than those as set out below:

The Company has filed the revised quarterly returns/statements with such banks for above instances, subsequent to the year
ended 31 March 2025, which are in agreement with the books of account. Also for Kotak Mahindra Bank Limited the Company
has filed quaterly returns / statements for the quarters ended 30 September 2024 and 31 December 2024 subsequent to the
year ended 31 March 2025. The Company is yet to submit the returns for the quarter ended 31 March 2025. The quarterly
returns / statements for the year ended 31 March 2024 are materially in agreement with the books of account and there was no
discrepancies that were identified.

54. Audit Trail:

The Ministry of Corporate Affairs (MCA) has made it mandatory for every company, which uses accounting software for
maintaining its books of account, to use only such accounting software which has a feature of recording audit trail of each and
every transaction, creating an edit log of each change made in books of account along with the date when such changes were
made and ensuring that the audit trail cannot be disabled.

The Company uses SAP software to maintain its books of accounts. Implementation of the above notification to ensure enabling
appropriate audit log on financial tables in aforesaid software, which have high frequency database operations would lead to a
severe system performance degradation thereby adversely impacting business operations and users.

In this regard, the Company has designed and implemented adequate review process over direct change at database level.

55. Previous year''s numbers have been regrouped / rearranged, where considered appropriate.

56. There is no income surrendered or disclosed as income during the current or previous year in the tax assessments under the
Income Tax Act, 1961, that has not been recorded in the books of account.

57. The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

Signatures to notes 1 to 57

For Price Waterhouse & Co Chartered Accountants LLP For and on behalf of the Board of Directors of IFB Industries Limited

^{Firm R}eg^istra^{tion Number:} 304026^{E / E -} 300009 Chairman Bikramjit Nag, DIN: 00827155

Executive Director and Service Business Head, HAD Amar Singh Negi, DIN: 08941850

Pinaki Chowdhury Managing Director, Engineering Division P H Narayanan, DIN: 10158148

Partner Chief Financial Officer Soumitra Goswami

Membership Number: 057572 Company Secretary Ritesh Agarwal, M. No: ACS 17266

Kolkata, 28 May 2025 Kolkata , 28 May 2025

---

Mar 31, 2024

1. The Company''s investment properties consist of lands in India and includes an amount of Rs. 0.07 crores (31 March 2023: Rs. 0.07 crores) being assets given on a lease.

2. As at 31 March 2024 and 31 March 2023 the fair values of the properties are Rs. 12.25 crores and Rs. 10.26 crores respectively. These fair values are based on valuations performed by Nag Chowdhury Associates, an accredited independent registered valuer. Nag Chowdhury Associates is a specialist in valuing these types of investment properties. A valuation model (market approach) has been adopted and the valuation is in accordance with that recommended by the International Valuation Standards. The fair value measurement can be categorised into level 3 category. There has been no change in the valuation technique as compared to 31 March, 2023.

3. The Company has no restrictions on the realisability of its investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements. All the title deeds of the investment properties are held in the name of the Company.

4. Information regarding income and expenditure of investment property:

(c) Other receivables - current:

Production Linked Incentive Scheme (PLI) for White Goods (Air Conditioners and LED Lights) manufacturers in India has been notified by the Department for Promotion of Industry and Internal Trade (DPIIT) vide notification No. CG-DL-E-16042021-226671 dated 16.04.2021. The scheme is applicable from FY 2022-2023 to FY 2027-2028.

During 2021-22, the Company applied for the scheme and the same was approved by DPIIT and under the scheme the Company is eligible to receive a certain percentage of sale of eligible products as incentives during the above stated period. Accordingly, under the scheme, the Company received a sanction of Rs. 3.00 crores from DPIIT during the year and the same has been recognised as a separate line item under Note 22 -"Other Income" in the statement of profit and loss for the financial year 2023-24 and has been shown under Note 7 - "Other current financial assets" in the Balance Sheet. The grant has since been received.

(d) The Company has not advanced or loaned or invested funds to any other persons or entities (intermediary) 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 or shall provide guarantee, security or the like to or on behalf of the Company.

1. The cost of inventories recognised as an expense includes Rs. 3.11 crores (31 March 2023 : Rs.3.11 crores) in respect of write-downs of inventory to its net realisable value. Further a sum of Rs. 2.99 crores (31 March 2023: Rs. 2.91 crores) is in respect of reversal of such write-downs. The write downs have been reversed primarily as a result of increased sales price or subsequent disposals.

2. Cost of inventories carried at net realisable value Rs. 4.36 crores (31 March 2023: Rs. 4.41 crores). Carrying amount of inventories carried at net realisable value Rs. 0.54 crores (31 March 2023: Rs. 0.72 crores)

3. Working capital loan from a bank is secured by hypothecation of inventories of the Company''s Steel Division. Value of inventory of the Company''s Steel Division as at 31.03.2024 is Rs. 14.95 crore. For details of complete hypothecation refer Note 20 (note (e)(i)A).

Transfer of financial assets

The Company discounted certain trade receivables with an aggregate carrying amount of Rs. 4.53 crores (31 March 2023: Rs. 1.89 crores) to a bank for cash proceeds of Rs. 4.52 crores (31 March 2023: Rs. 1.87 crores). If the trade receivables are not paid at maturity, the bank has the right to request the Company to pay the unsettled balance. As the Company has not transferred the significant risks and rewards relating to these trade receivables, it continues to recognise the full carrying value of the receivables and has recognised the cash received on the transfer as secured borrowings.

At the end of the reporting period, there were no trade receivables that have been transferred but have not been derecognised.

Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company.

Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

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

(a) For sanction of term loan amounting to Rs. 16.85 crores by Federal Bank Ltd. (Balance as at 31 March, 2024 is Rs. 9.96 crores), the following securities have been created:

The charge shall operate on first charge basis over the Company''s Steel Division''s entire current assets, documents of title to goods/ usance bills, receivables against SB discounted, title on the goods procured under LC, counter guarantee for BG with cash margin, and also plant & machineries as primary security; and by way of equitable mortgage of all that pieces and parcels of factory lands with buildings/ structures/ sheds constructed thereupon and located at Mouza: Bamunari, Pargana: Boro, P.D.: Dankuni, District: Hooghly, PIN-712250, West Bengal as collateral security until full repayment & settlement of the principal amount of loan(s)/ credit facility(ies) together with commission, interests, costs & other dues thereof.

The said loan is being paid in equal quarterly installments of Rs. 0.84 crores and with a final installment payment of Rs. 0.72 crores, the same would be discharged by January, 2027.

(b) For sanction of credit facilities amounting to Rs. 20.00 crores (including Capex Letter of Credit amounting to Rs. 15 crores as its sublimit) and Rs. 30.00 crores by ICICI Bank Ltd. (Balance as at 31 March, 2024 is Rs. 22.00 crores), following securities have been created:

- Exclusive charge over the movable properties including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company''s stamping and

motor business''s factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Company or in the course of transit or in high seas or on order, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition in such manner that the security cover of 1.25 times is maintained. For the limit utilised: (a) the Term Loan of Stamping Division is being repaid in 20 quarterly installments of Rs. 1.75 crores starting from 19 May, 2022. The same would be discharged by February 2027. (b) The Term Loan of Motor Division will be repaid in in 20 quarterly installments of Rs. 0.50 crores starting from 7 December, 2024 and the same would be discharged by September 2029.

(c) For sanction of credit facilities amounting to Rs. 60.00 crores and Rs. 10.00 crores by DBS Bank India Ltd. (Balance as at 31 March, 2024 is Rs. 3.10 crores), following securities have been created:

- Hypothecation by way of first and exclusive floating charge over all present and future movables plant and machinery, equipment, appliances, furniture, vehicles, machinery, spares and stores, tools and accessories and other moveables whether or not installed and whether lying loose or in cases or which are now lying or stored in or about and may hereafter from time to time during the currency of this deed be brought into or upon or be stored in or about all the Company''s factories, premises, warehouses and godowns or wherever else the same may be or be held by any party to the order or disposition of the Company or in the courses of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition (all pertaining to Company''s units located at Kolkata and Bangalore) stored or to be stored at the Company''s Godowns or premises or wherever else the same may be except asset charged specifically for debt availed, if any for purchase of conventional press line subject to NOC being sought from DBS. The Term Loan was prepaid partially on few occasions and finally the balance amount of loan is being repaid in 7 equal quarterly installments starting from March, 2023. This loan would be discharged by September 2024.

(d) For sanction of external commercial borrowings amounting to USD 2.00 crores by Standard Chartered Bank, London, following securities have been created:

- Hypothecation by way of first and exclusive charge over all present and future moveable properties of the Company''s manufacturing unit of air conditioners in Goa and on the existing plant and machinery of washing machine division at Goa (Verna) plant (except exclusive charge to term lenders), including without limitations its moveable plant and machinery, furniture and fittings, equipments, computers, hardware, computer software, machinery spares, tools and accessories and other movables, both whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company''s premises, warehouses, stockyards and godowns or those of the Company''s agents, affiliates, associates or representatives or at various worksites or at any upcountry place or places wherever else the same maybe or be held by any party including, without limitation, the following plot no. N-7, Phase IV, Survey No. 261/10, Verna Industrial Estate, Verna, Goa - 403722. The external commercial borrowings is standing at USD 0.37 crores as at 31 March, 2024. The loan is being repaid in 13 equal quarterly installments starting from 1 October, 2021. The same would be discharged by October, 2024.

(#) The Company has adopted the income approach as prescribed in Ind AS 20 - Accounting for Government Grants and Disclosure of Government Assistance. Government grants received (related to depreciable assets) are set up as deferred income and the same is recognised as income in the Statement of Profit and Loss on a systematic basis over the remaining useful life of the related asset. Any balance remaining as at the year end is shown in note no 17 - "Other Liabilities" as "Deferred government grant". There are no unfulfilled conditions or other contingencies attaching to any government grant that has been recognised. During the year no Government grants has been received related to depreciable assets.

a. Provision is estimated in respect of warranty cost in the year of sale of goods and it represents the present value of the management''s best estimate of the future outflow of economic benefit that will be required under the Company''s obligation for warranties. It also includes provision in respect of warranty and installation cost in the year of sale of goods of an associate for which the Company has earned revenue for providing services. The revenue earned by the Company for the same is included under ''Sale of services'' in Note 21.

b. Provision for warranty is expected to be utilised over a period of 1 to 5 years.

c. The estimates may vary as a result of product quality, availability of spare parts, price of raw materials, altered manufacturing processes and discount rates.

d. Warranty costs are estimated by the management on the basis of a technical evaluation and based on specific warranties, claims and claim history.

(a) The Company has used the borrowings from banks for the specific purpose for which they were taken at the balance sheet date.

(b) The Company has borrowings from banks on the basis of security of current assets and the final quarterly statements of current assets filed by the Company with the banks are materially in agreement with the books of accounts and there is no discrepancy that has been identified.

(c) All charges for the borrowings have been registered with the Registrar of Companies as at the balance sheet date.

(d) The Company has not received any fund from any other persons or entities (Funding Party) with the understanding 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 or shall provide guarantee, security or the like to or on behalf of the Funding Party.

(e) Charge and hypothecation details are as follows:

(i) Credit facilities utilised as at 31 March, 2024

(A) Hypothecation details of working capital demand loan by Federal Bank Limited (Utilised as at 31 March, 2024 Rs. 1.50 crores) as at 31 March, 2024:

Working capital facilities sanctioned by The Federal Bank Limited is Rs.38.00 crores Out of the sanctioned limit Rs. 32.00 crores can be used inter-changeably between fund based and non-fund based. Following securities has been created:

The charge shall operate on first charge basis over the Company''s Steel Division''s entire current assets, documents of title to goods/ usance bills, receivables against SB discounted, title on the goods procured under LC, counter guarantee for BG with cash margin, and also plant & machineries as primary security; and by way of equitable mortgage of all that pieces and parcels of factory lands with buildings/ structures/ sheds constructed thereupon and located at Mouza: Bamunari, Pargana: Boro, P.D.: Dankuni, District: Hooghly, PIN-712250, West Bengal as collateral security until full repayment & settlement of the principal amount of loan(s)/ credit facility(ies) together with commission, interests, costs & other dues thereof.

(ii) Credit facilities unutilised as at 31 March 2024

(B) For sanction of working capital facility amounting to Rs 100 crores by Standard Chartered Bank (Unutilised as at 31 March, 2024) following securities have been created

(i) First pari passu charge on the entire current assets, both present and future.

(ii) First and exclusive charge on the plant & machinery of washing machine division at Goa (Verna) plant (both present and future).

(iii) First and exclusive charge over the plant & machinery of air-conditioner division at Goa, (both present and future).

(C) For sanction of capex facility amounting to Rs. 20.00 crores by Standard Chartered Bank (Unutilised as at

31 March, 2023), following securities have been created:

(i) First and exclusive charge on the plant & machinery of washing machine division at Goa (Verna) plant (both present and future).

(ii) First and exclusive charge over the plant & machinery of air-conditioner division at Goa, (both present and future).

(D) For sanction of credit facilities amounting to Rs. 50.00 crores by ICICI Bank Ltd. (Unutilised as at 31 March,

2023) , following securities have been created:

- First and pari passu charge on all the current assets of the Company - the whole of the Company''s stocks of raw materials, good-in-process, semi-finished and finished goods, consumable stores and spares and such other movables, including book debts, bills whether documentary or clean, both present and future, whether in the possession or under the control of the Company or not, whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Company''s factories, premises and godowns situated at all places of business or wherever else the same may be or be held by any party to the order or disposition of the Company or in course of transit or on high seas or on order or delivery.

- Hypothecation by way of second charge on the moveable properties of the Company (save and except current assets) including its moveable plant and machinery, machinery spares, tools and accessories, non-trade receivables and other moveables both present and future whether in the possession or under the control of the Company or not, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Company''s factories, premises and godowns situated at all places of business or wherever else the same may be or be held by any party to the order or disposition of the Company or in course of transit or on high seas or on order or delivery.

- Hypothecation by way of first and pari passu charge on the receivables of the Company - all amounts owing to and received and / or receivable by, the Company and / or any person on its behalf, all book debts, all cash flows and receivables and proceeds arising from / in connection with business and all rights, titles, interest, benefits, claims and demand whatsoever of the Company into or in respect of all the aforesaid assets, including but not limited to the Company''s cash-in-hand, both present and future. This facility remains unutilised as at 31 March, 2024.

(E) For sanction of credit facilities amounting to Rs. 50.00 crores by HDFC Bank Ltd (Unutilised as at 31 March,

2024) , following securities have been created:

- First pari passu charge by way of hypothecation on all the stock in trade both present and future consisting of raw material, finished goods, goods in process of manufacturing and other goods, movable assets or merchandise whatsoever now.

- First pari passu charge by way of hypothecation on all the book debts, amounts outstanding, monies receivables, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due.

(F) For sanction of credit facilities amounting to Rs. 35.00 crores by DBS Bank Ltd (Unutilised as at 31 March,

2024), following securities have been created:

- Hypothecation by way of first pari passu and floating charge over goods being finished goods, semi-

finished goods, stocks of raw materials, work in process located at various factories/warehouses/ godowns of the Company and whether in transit or lying at any other place and hypothecation by way of first pari passu and floating charge over the Company''s present and future book debts, outstanding monies receivables, claims, bills, contracts, engagements, securities, investments, rights and assets.

- Hypothecation by way of exclusive charge over all present and future movable fixed assets of the engineering division of the company including without limitation its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc stored or to be stored at Company''s godowns or premises situated at 14, Taratala Road, Kolkata and 16/17, Visveswaraiah Industrial Estate, Whitefield Road, Bangalore-560048 (Engineering Division) or wherever else, the same may be.

(G) For sanction of credit facilities amounting to Rs. 60.00 crores by Kotak Mahindra Bank Ltd (Unutilised as at 31 March, 2024), following securities have been created:

- First Pari Passu hypothecation charge on all existing and future current assets of the Company including:

(i) book-debts, receivables, outstanding moneys, claims, demands, bills, contracts, engagements and securities belonging to or held by the borrower and which are now due and owing or accruing and which may at any time hereafter during the continuance of the security become due and owing or accrue to the borrower.

(ii) stocks of raw materials, finished and semi-finished goods, goods in process and consumable stores, which are now lying or stored in or which may hereafter from time to time during the continuance of the security be lying or stored in or brought into or be in or about the factories and godowns of the borrower or warehouses, whichever situate; and

(iii) related moveables in the course of transit or delivery, whether now belonging or which may hereafter belong to the borrower or which may be held by the person at any place within or outside India to the order or disposition of the borrower and all documents of title including bills of lading, shipping documents, policies of Insurance and other instruments and documents relating to such moveables together with benefits of all rights thereto.

32. Defined benefit plan - Gratuity

The Company operates a defined benefit plan for gratuity for its employees. It is administered through approved trust in accordance with its trust deeds and rules. The concerned trust is managed by trustees who provide guidance with regard to the management of their assets and liabilities and review their performance periodically. Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and the investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure the adequacy of internal controls.

The liability arising in the defined benefit plan is determined by an independent professionally qualified actuary using the projected unit credit method.

Risk management

The risks commonly affecting the gratuity liability and the financial results are expected to be:

1. Interest rate risk - The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yield falls, the defined benefit obligations will tend to increase.

2. Salary inflation risk - Higher the expected increase in salary, higher the defined benefit obligation.

3. Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

- The Company is primarily engaged in business of engineering (fine blanked components and stamping), home appliances, motors and steel. Accordingly the Company considers the above business segment as the primary segment. Segment revenue, segment result, segment asset and segment liabilities include the respective amount identifiable to each of the segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallocable corporate cost and grouped as "Unallocated". Assets and liabilities that cannot be allocated between the segments are shown as unallocable corporate assets and liabilities and are grouped as "Unallocated". These segments have been reported in the manner consistent with the internal reporting to divisional CEO''s, who are the chief operating decision makers.

- The geographical information considered for disclosure are revenue within India and revenue outside India.

- The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer.

Leases

The Company is obligated under cancellable leases for residential, office premises, land, warehouses, etc. Total rental expense under cancellable short term operating lease amounted to Rs. 7.46 crores (31 March 2023: Rs. 8.55 crores).

In applying Ind AS 116 - "Leases", the Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics. The leases with remaining lease term of less than 12 ''months are considered as "short term leases".

38. Dues to micro, small and medium enterprises

The Ministry of micro, small and medium enterprises has issued an office memorandum dated 26 August 2008 which recommends that the micro and small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprise Development Act, 2006'' (''MSMED Act, 2006''). Accordingly, the disclosure in respect of the amounts payable to such enterprises has been made in the financial statements based on the information received and available with the Company. Further, in view of the management, the impact of the interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

39. Financial instruments and related disclosures i) Capital management

The Company''s capital management policy is focused on business growth and creating value for shareholders. The Company determines the amount of capital required on the basis of annual business plans and the funding needs are met through internal accruals and bank borrowings.

Investments exclude investment in subsidiaries amounting to Rs. 21.60 crores (31 March 2023: Rs. 21.60 crores) and in an associate amounting to Rs. 97.00 crores (31 March 2023: Rs. 97.00 crores) which are shown at cost in balance sheet as per Ind AS 27 - ''Separate Financial Statements''.

(iii) Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.

a) Liquidity risks

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquid risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from banks. Furthermore, the Company has sufficient quantities of finished goods and stock-in-trade which are liquid and readily saleable. Hence the risk that the Company may not be able to settle its financial liabilities as they become due does not exist.

The following tables shows a maturity analysis of the anticipated cash flows for the Company''s derivative and nonderivative financial liabilities.

b) Market risks

The Company does not trade in equities. Treasury activities, focused on managing investments in debt instruments, are decentralised but administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within the acceptable risk parameters after due evaluation.

The Company''s investments are predominantly held in debt mutual funds. Such investments are susceptible to market risks that arise mainly from changes in interest rate which may impact the return and value of such investments. Mark to market movements in respect of these investments are measured at fair value through Profit and Loss.

Fixed deposits are held with highly rated banks and generally have a short tenure and are not subject to interest rate volatility.

The Company has short-term borrowings which are generally not susceptible to interest rate volatility since they are for short tenure. Long term loans from banks are at highly competitive rates. Hence interest rate fluctuations on borrowings does not affect the Company significantly.

c) Foreign currency risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Euro, RMB, JPY and AED) which are subject to the risk of exchange rate fluctuations.

iii) Foreign currency sensitivity

For every percentage point change in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax would change by Rs. 2.25 crores for the year ended 31 March 2024 (31 March 2023: Rs 2.47 crores).

d) Credit risk

Credit risk arise from the possibility that the counter party may not be able to settle their obligations. Financial instruments that are subject to such risk primarily consists of investments, trade receivables, bank deposits, loans, derivative instruments and other financial assets.

Bank deposits are primarily held with highly rated and different banks.

The Company''s customer base is large and diverse limiting the risk arising out of credit concentration. Further the credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities after due consideration of the counter parties credentials and financial capacity, trade practices and prevailing business and economic conditions.

In respect of financial guarantees provided by the Company to banks/financial institutions, the maximum exposure which the Company is exposed to is the maximum amount which the Company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.

The Company''s historical experience of collecting receivables and the level of default indicates that the credit risk is low and generally uniform across markets. Loss allowances are recognised where considered appropriate by the management.

Goodwill as stated above is carried at cost and annually tested for impairment in line with applicable Accounting Standards. Impairment testing for goodwill has been carried out considering their recoverable amounts which, inter-alia, includes

estimation of their value-in-use based on management projections. These projections have been made for a period of five years and consider various factors, such as market scenario, growth trends, growth and margin projections and terminal growth rates specific to the business. For such projections, discount rate of 15% and long-term growth rate of 3% have been considered. Discount rate has been determined considering the Weighted Average Cost of Capital (WACC) of market benchmarks. Based on the above assessment, no impairment has been recognised during the year.

41. The Company has disaggregated revenues from contract with customers for the year by the type of goods and services. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Refer note 21 for revenue disaggregation.

The following table includes revenue expected to be recognised in the future related to annual maintenance contracts and extended warranty services and advance from customers.

The Company recognized revenue of Rs. 83.02 crores (31 March 2023 : Rs. 70.60 crores) arising from contract liability balances comprising of income received in advance on annual maintenance contracts and extended warranty services and advance from customers at the beginning of the year.

Invoicing in excess of revenues from sale of services are classified as "Income received in advance on annual maintenance contracts and extended warranty services" and Invoicing in excess of revenues from sale of goods are classified as "Advance from customers" in note no 17.

Reasons where the change in the ratios is more than 25% as compared to preceding years:

a) Debt-equity ratio has reduced due to repayments of borrowings and increase in equity (mainly attributable to profit for the year)

b) Earnings before depreciation, interest and tax (EBDITA) has increased due to higher income and decrease in material cost as a % of income. EBDITA being the numerator for the debt service coverage ratio, hence the increase in the ratio.

c) The ratios have been impacted due to increase in profits for the year for reasons stated in (b) above.

d) The increase in working capital for the period is more than the increase in sales and service income (both in no of times), hence the ratio has decreased.

e) Capital employed has not changed significantly, however earnings before interest and tax has increased for reasons stated (b) above

f) There has been a fall in average current investment for the year. This being the denominator for the return on investment. Hence the increase in the ratio

As on 31st March 2023, trade payables includes Rs. 0.88 crores for liabilities under supplier financing. The weighted average of which have extended the settlement of original payable to 61 days after physical supply and are due for settlement with 48 days after the year end.

The Company has entered into supplier financing arrangement to ensure easy access of credit to its supplier. The arrangement is mostly operating in nature as the financing element in the transaction is insignificant and the time frame in the financing arrangement is mostly consistent with the supplier terms available to the Company. The amount payable w.r.t. such supplier financing is classified as trade payables.

44. As per the E-Waste (Management) Rules, 2016, as amended, Companies dealing in certain categories of products as specified in Schedule-I therein are required to undertake Extended Producer Responsibility (EPR) for its end-of-life products. The obligation for a financial year is measured based on sales made in the preceding 9th/10th year and the Company has met its obligations for the current year. In accordance with Appendix B of Ind AS 37, ''Provisions, Contingent Liabilities and Contingent Assets'', the Company will have an e-waste obligation for future years, only if it participates in the market in those years.

45. No proceedings have been initiated or is pending against the Company for holding any benami property under the ''Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

46. The Company has not been declared a wilful defaulter by any banks.

47. Balance outstanding with nature of transaction with struck off companies as per section 248 of the Companies Act, 2013

48. The Company has complied with the number of layers prescribed under (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

49. All transactions have been recorded in the books of accounts and there are no unrecorded income that have been disclosed during the year in the tax assessments under the Income Tax Act, 1961. Moreover there are no unrecorded income and related assets pertaining to previous years.

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

51. The Bangalore factory of Engineering Division at Malur is situated on a leased premises. In the current year, in view of the anticipated increase in volume of business in near future, the Company decided to acquire a plot of land at Malur and construct a factory with adequate infrastructure including deploying robotics to absorb the anticipated workload. The Board of Directors in its meeting held on 2nd November 2023 accorded approval to buy a land with a capital outlay of around Rs. 48.00 crores.

The existing leasing agreement at Malur, has a termination clause, which provides that the lessee (Company) can terminate the said agreement without cause by giving three months written notice to the lessor expressing its intention to terminate the lease deed. The Company has decided to exercise the same and discontinue the lease arrangement at Malur by March 2026 and shift to new location.

Consequent to the above decision for short closing the lease arrangement, the Company has given effect of the same in the financials for FY 23-24 as per INDAS 116 and accordingly the lease liability is remeasured and an amount of Rs. 43.59 crore is recorded as an adjustment to the right-of-use asset, while the excess of lease liability over right-of-use asset of Rs. 4.12 crore is included under ''Other Income'' in the Statement of Profit and loss.

52. The standalone financial statements were approved by the Board of Directors on 28 May 2024.

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Mar 31, 2023

1. The Company''s investment properties consist of lands in India and includes an amount of Rs. 0.07 crores (31 March 2022: Rs. 0.07 crores) being assets given on an lease.

2. As at 31 March 2023 and 31 March 2022 the fair values of the properties are Rs. 10.26 crores and Rs. 7.15 crores respectively. These fair values are based on valuations performed by NagChowdhury Associates, an accredited independent registered valuer. NagChowdhury Associates is a specialist in valuing these types of investment properties. A valuation model (market approach) has been adopted and the valuation is in accordance with that recommended by the International Valuation Standards. The fair value measurement can be categorised into level 3 category. There has been no change in the valuation technique as compared to 31 March, 2022.

3. The Company has no restrictions on the realisability of its investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements. All the title deeds of the investment properties are held in the name of the Company

1. The cost of inventories recognised as an expense includes Rs. 3.11 crores (31 March 2022 : Rs.2.57 crores) in respect of write-downs of inventory to its net realisable value. Further a sum of Rs. 2.91 crores (31 March 2022: Rs. 3.04 crores) is in respect of reversal of such write-downs. The write downs have been reversed primarily as a result of increased sales price or subsequent disposals.

2. Carrying amount of inventories carried at net realisable value Rs. 4.41 crores (31 March 2022: Rs. 4.44 crores).

3. The entire amount of inventories as stated above is pledged as security for borrowings.

Transfer of financial assets

The Company discounted certain trade receivables with an aggregate carrying amount of Rs. 1.89 crores (31 March 2022: Rs. 3.51 crores) to a bank for cash proceeds of Rs. 1.87 crores (31 March 2022: Rs. 3.48 crores). If the trade receivables are not paid at maturity, the bank has the right to request the Company to pay the unsettled balance. As the Company has not transferred the significant risks and rewards relating to these trade receivables, it continues to recognise the full carrying value of the receivables and has recognised the cash received on the transfer as secured borrowings.

At the end of the reporting period, there were no trade receivables that have been transferred but have not been derecognised.

There has been no change in equity share capital during the year.

Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company.

Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

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

(a) For sanction of term loan amounting to Rs. 16.00 crores by Federal Bank Ltd. (Balance as at 31 March, 2023 is Rs. 8.20 crores), the following securities have been created:

The charge shall operate on first charge basis over the Company''s entire current assets documents of title to goods/ usance bills, receivables against SB discounted, title on the goods procured under LC, counter guarantee for BG with cash margin, and also plant & machineries as primary security; and by way of equitable mortgage of all that pieces and parcels of factory lands with buildings/ structures/ sheds constructed thereupon and located at Mouza: Bamunari, Pargana: Boro, P.D.: Dankuni, District: Hooghly, PIN-712250, West Bengal as collateral security until full repayment & settlement of the principal amount of loan(s)/ credit facility(ies) together with commission, interests, costs & other dues thereof.

The said loan will be paid in equal quarterly instalments of Rs. 0.84 crores and would be discharged by July, 2026.

(b) For sanction of credit facilities amounting to Rs. 20,00 crores (including Capex Letter of Credit amounting to Rs. 15 crores as its sublimit) and Rs. 30,00 crores by ICICI Bank Ltd. (Balance as at 31 March, 2023 is Rs. 29.00 crores), following securities have been created:

- Exclusive charge over the movable properties including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company''s stamping and

motor business''s factories, premises and godowns or wherever else the same may be or be held by any party to the order or disposition of the Company or in the course of transit or in high seas or on order, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition in such manner that the security cover of 1.25 times is maintained. For the limit utilised the Term Loan is repayable in 20 quarterly instalments starting from 19 May, 2022.

(c) For sanction of credit facilities amounting to Rs. 60.00 crores and Rs. 10.00 crores by DBS Bank India Ltd. (Balance as at 31 March, 2023 is Rs. 9.30 crores), following securities have been created:

- Hypothecation by way of first and exclusive floating charge over all present and future movable plant and machinery, equipment, appliances, furniture, vehicles, machinery, spares and stores, tools and accessories and other moveables whether or not installed and whether lying loose or in cases or which are now lying or stored in or about and may hereafter from time to time during the currency of this deed be brought into or upon or be stored in or about all the Company''s factories, premises, warehouses and godowns or wherever else the same may be or be held by any party to the order or disposition of the Company or in the courses of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition (all pertaining to Company''s units located at Kolkata and Bangalore) stored or to be stored at the Company''s Godowns or premises or wherever else the same may be except asset charged specifically for debt availed, if any for purchase of conventional press line subject to NOC being sought from DBS. The Term Loan was prepaid partially in 2020-21 and the balance as at 31 March 2021 is repayable in 14 equal quarterly instalments starting from June, 2021.

(d) For sanction of external commercial borrowings amounting to USD 2.00 crores by Standard Chartered Bank, London, following securities have been created:

- Hypothecation by way of first and exclusive charge over all present and future movable properties of the Company''s manufacturing unit of air conditioners in Goa and on the existing plant and machinery of washing machine division at Goa (Verna) plant (except exclusive charge to term lenders), including without limitations its moveable plant and machinery, furniture and fittings, equipments, computers, hardware, computer software, machinery spares, tools and accessories and other movables, both whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company''s premises, warehouses, stockyards and godowns or those of the Company''s agents, affiliates, associates or representatives or at various worksites or at any upcountry place or places wherever else the same maybe or be held by any party including, without limitation, the following plot no. N-7, Phase IV, Survey No. 261/10, Verna Industrial Estate, Verna, Goa - 403722. The external commercial borrowings is standing at USD 0.86 crores as at 31 March, 2023. The loan is repayable in 13 equal quarterly instalments starting from 1 October, 2021.

The Company has used the borrowings from banks for the specific purpose for which they were taken at the balance sheet date.

All charges for the borrowings have been registered with the Registrar of Companies as at the balance sheet date.

a. Provision is estimated in respect of warranty cost in the year of sale of goods and it represents the present value of the management''s best estimate of the future outflow of economic benefit that will be required under the Company''s obligation for warranties.

b. Provision for warranty is expected to be utilised over a period of 1 to 5 years.

c. The estimates may vary as a result of product quality, availability of spare parts, price of raw materials, altered manufacturing processes and discount rates.

d. Warranty costs are estimated by the management on the basis of a technical evaluation and based on specific warranties, claims and claim history.

a) Unrecognised deferred tax assets on tax losses and unabsorbed depreciation

At the reporting date, there are no tax losses (31 March 2022: Rs. 12.76 crores), however unabsorbed depreciation amounting to Rs. 15.89 crores (31 March 2022: Rs. 88.66 crores) are available for offset against future profits. There are no deferred tax asset on tax losses in the current year (31 March 2022: Rs. 4.47 crores), however Rs. 4.00 crores (31 March 2022: Rs. 30.99 crores) has been recognised on unabsorbed depreciation.

Unabsorbed depreciation can be carried forward indefinitely.

(a) The Company has used the borrowings from banks for the specific purpose for which they were taken at the balance sheet date.

(b) The Company has borrowings from banks on the basis of security of current assets and the final quarterly statements of current assets filed by the Company with the banks are materially in agreement with the books of accounts and there is no discrepancy that has been identified.

(c) All charges for the borrowings have been registered with the Registrar of Companies as at the balance sheet date

(d) The Company has not received any fund from any other persons or entities (Funding Party) with the understanding 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 or shall provide guarantee, security or the like to or on behalf of the Funding Party.

(e) Charge and hypothecation details are as follows:

(i) Credit facilities utilised as at 31 March, 2023

(A) For sanction of working capital facility amounting to Rs. 100 crores by Standard Chartered Bank (Utilised as at 31 March, 2023: Working capital buyers credit: Rs. 49.04 crores and Working capital demand loan: Rs. 26.50 crores), following securities have been created:

(i) First pari passu charge on the entire current assets, both present and future.

(ii) First and exclusive charge on the plant & machinery of washing machine division at Goa (Verna) plant (both present and future).

(iii) First and exclusive charge over the plant & machinery of air-conditioner division at Goa, (both present and future).

(B) Hypothecation details of working capital demand loan by Federal Bank Limited (Utilised as at 31 March, 2023 Rs. 6.31 crores) as at 31 March, 2023:

Working capital facilities sanctioned by The Federal Bank Limited to the extent Rs. 32.00 crores can be used inter-changeably between fund based and non-fund based. Following securities has been created:

The charge shall operate on first charge basis over the Company''s entire current assets documents of title to goods/ usance bills, receivables against SB discounted, title on the goods procured under LC, counter guarantee for BG with cash margin, and also plant & machineries as primary security; and by way of equitable mortgage of all that pieces and parcels of factory lands with buildings/ structures/ sheds constructed thereupon and located at Mouza: Bamunari, Pargana: Boro, P.D.: Dankuni, District: Hooghly, PIN-712250, West Bengal as collateral security until full repayment & settlement of the principal amount of loan(s)/ credit facility(ies) together with commission, interests, costs & other dues thereof.

(ii) Credit facilities unutilised as at 31 March 2023

(C) For sanction of capex facility amounting to Rs. 20.00 crores by Standard Chartered Bank (Unutilised as at 31 March, 2023), following securities have been created:

(i) First and exclusive charge on the plant & machinery of washing machine division at Goa (Verna) plant (both present and future).

(ii) First and exclusive charge over the plant & machinery of air-conditioner division at Goa, (both present and future).

(D) For sanction of credit facilities amounting to Rs. 50.00 crores by ICICI Bank Ltd. (Unutilised as at 31 March, 2023), following securities have been created:

- First and pari passu charge on all the current assets of the Company - the whole of the Company''s stocks of raw materials, good-in-process, semi-finished and finished goods, consumable stores and spares and such other movables, including book debts, bills whether documentary or clean, both present and future, whether in the possession or under the control of the Company or not, whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Company''s factories, premises and godowns situated at all places of business or wherever else the same may be or be held by any party to the order or disposition of the Company or in course of transit or on high seas or on order or delivery.

- Hypothecation by way of second charge on the moveable properties of the Company (save and except current assets) including its movable plant and machinery, machinery spares, tools and accessories, nontrade receivables and other movables both present and future whether in the possession or under the control of the Company or not, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Company''s factories, premises and godowns situated at all places of business or wherever else the same may be or be held by any party to the order or disposition of the Company or in course of transit or on high seas or on order or delivery.

- Hypothecation by way of first and pari passu charge on the receivables of the Company - all amounts owing to and received and/or receivable by the Company and/or any person on its behalf, all book debts, all cash flows and receivables and proceeds arising from / in connection with business and all rights, titles, interest, benefits, claims and demand whatsover of the Company into or in respect of all the aforesaid assets including but not limited to the Company''s cash-in-hand, both present and future. This facility remains unutilised as at 31 March, 2023.

(E) For sanction of credit facilities amounting to Rs. 50.00 crores by HDFC Bank Ltd (Unutilised as at

31 March, 2023), following securities have been created:

- First pari passu charge by way of hypothecation on all the stock in trade both present and future consisting of raw material, finished goods, goods in process of manufacturing and other goods, movable assets or merchandise whatsoever now.

- First pari passu charge by way of hypothecation on all the book debts, amounts outstanding, monies receivables, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due.

- Exclusive charge on the sum of Rs. 20.00 crores deposited by the Company with the Bank at its branch.

(F) For sanction of credit facilities amounting to Rs. 35.00 crores by DBS Bank Ltd (Unutilised as at 31 March,

2023), following securities have been created:

- Hypothecation by way of first pari passu and floating charge over goods being finished goods, semifinished goods, stocks of raw materials, work in process located at various factories / warehouses / godowns of the company and whether in transit or lying at any other place and hypothecation by way of first pari passu and floating charge over the Company''s present and future book debts, outstanding monies receivables, claims, bills, contracts, engagements, securities, investments, rights and assets.

- Hypothecation by way of exclusive charge over all present and future movable fixed assets of the engg div of the company including without limitation its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc stored or to be stored at Company''s godowns or premises situated at 14, Taratala Road, Kolkata and 16/17, Visveswaraiah Industrial Estate, Whitefield Road, Bangalore-560048 (Engineering Division) or wherever else, the same may be.

(G) For sanction of credit facilities amounting to Rs. 60.00 crores by Kotak Mahindra Bank Ltd (Unutilised as

at 31 March, 2023), following securities have been created:

- First Pari Passu hypothecation charge on all existing and future current assets of the Company including:

(i) book-debts, receivables, outstanding moneys, claims, demands, bills, contracts, engagements and securities belonging to or held by the borrower and which are now due and owing or accruing and which may at any time hereafter during the continuance of the security become due and owing or accrue to the borrower.

(ii) stocks of raw materials, finished and semi-finished goods, goods in process and consumable stores, which are now lying or stored in or which may hereafter from time to time during the continuance of the security be lying or stored in or brought into or be in or about the factories and godowns of the borrower or warehouses, whichever situate; and

(iii) related moveables in the course of transit or delivery, whether now belonging or which may hereafter belong to the borrower or which may be held by the person at any place within or outside India to the order or disposition of the borrower and all documents of title including bills of lading, shipping documents, policies of Insurance and other instruments and documents relating to such moveables together with benefits of all rights thereto.

32. Defined benefit plan - Gratuity

The Company operates a defined benefit plan for gratuity for its employees. It is administered through approved trust in accordance with its trust deeds and rules. The concerned trust is managed by trustees who provide guidance with regard to the management of their assets and liabilities and review their performance periodically or directly through insurance company.Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and the investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure the adequacy of internal controls.

The liability arising in the defined benefit plan is determined by an independent professionally qualified actuary using the projected unit credit method.

Risk management

The risks commonly affecting the gratuity liability and the financial results are expected to be:

1. Interest rate risk - The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yield falls, the defined benefit obligations will tend to increase.

2. Salary inflation risk - Higher the expected increase in salary, higher the defined benefit obligation.

3. Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

- The Company is primarily engaged in business of engineering (fine blanked components and stamping), home appliances, motors and steel. Accordingly the Company considers the above business segment as the primary segment. Segment revenue, segment result, segment asset and segment liabilities include the respective amount identifiable to each of the segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallocable corporate cost and grouped as "Unallocated". Assets and liabilities that cannot be allocated between the segments are shown as unallocable corporate assets and liabilities and are grouped as "Unallocated". These segments have been reported in the manner consistent with the internal reporting to divisional CEO''s, who are the chief operating decision makers.

- The geographical information considered for disclosure are revenue within India and revenue outside India.

- The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer.

34. Leases

The Company is obligated under cancellable leases for residential, office premises, warehouses, etc. Total rental expense under cancellable short term operating lease amounted to Rs. 8.05 crores (31 March 2022: Rs. 3.91 crores).

In applying Ind AS 116 - "Leases", the Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics. The leases with remaining lease term of less than 12 ''months are considered as "short term leases".

38. Dues to micro, small and medium enterprises

The Ministry of micro, small and medium enterprises has issued an office memorandum dated 26 August 2008 which recommends that the micro and small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprise Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises has been made in the financial statements based on the information received and available with the Company. Payable to micro and small enterprises as at 31 March 2023: Rs. 45.76 crores (31 March 2022: Rs. 143.74 crores).

Further, in view of the management, the impact of the interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

39. Financial instruments and related disclosures i) Capital management

The Company''s capital management policy is focused on business growth and creating value for shareholders. The Company determines the amount of capital required on the basis of annual business plans and the funding needs are met through internal accruals and bank borrowings.

Investments exclude investment in subsidiaries amounting to Rs. 21.60 crores (31 March 2022: Rs. 21.60 crores) and in an associate amounting to Rs. 97.00 crores (31 March 2022: Nil) which are shown at cost in balance sheet as per Ind AS 27 -''Separate Financial Statements''.

(iii) Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.

a) Liquidity risks

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquid risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from banks. Furthermore, the Company has sufficient quantities of finished goods and stock-in-trade which are liquid and readily saleable. Hence the risk that the Company may not be able to settle its financial liabilities as they become due does not exist.

The following tables shows a maturity analysis of the anticipated cash flows for the Company''s derivative and nonderivative financial liabilities.

b) Market risks

The Company does not trade in equities. Treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within the acceptable risk parameters after due evaluation.

The Company''s investments are predominantly held in debt mutual funds. Such investments are susceptible to market risks that arise mainly from changes in interest rate which may impact the return and value of such investments. Mark to market movements in respect of these investments are measured at fair value through Profit and Loss.

Fixed deposits are held with highly rated banks and generally have a short tenure and are not subject to interest rate volatility.

The Company has short-term borrowings which are generally not susceptible to interest rate volatility since they are for short tenure. Long term loans from banks are at highly competitive rates. Hence interest rate fluctuations on borrowings does not affect the Company significantly.

c) Foreign currency risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Euro, GBP, RMB, THB, JPY and AED) which are subject to the risk of exchange rate fluctuations.

iii) Foreign currency sensitivity

For every percentage point change in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax would change by Rs. 2.47 crores for the year ended 31 March 2023 (31 March 2022: Rs 3.11 crores).

d) Credit risk

Credit risk arise from the possibility that the counter party may not be able to settle their obligations. Financial instruments that are subject to such risk primarily consists of investments, trade receivables, bank deposits, loans, derivative instruments and other financial assets.

Bank deposits are primarily held with highly rated and different banks.

The Company''s customer base is large and diverse limiting the risk arising out of credit concentration. Further the credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities after due consideration of the counter parties credentials and financial capacity, trade practices and prevailing business and economic conditions.

In respect of financial guarantees provided by the Company to banks/financial institutions, the maximum exposure which the Company is exposed to is the maximum amount which the Company would have to pay if the guarantee is called upon. Based on the expectation at the end of the reporting period, the Company considers that it is more likely than not that such an amount will not be payable under the guarantees provided.

The Company''s historical experience of collecting receivables and the level of default indicates that the credit risk is low and generally uniform across markets. Loss allowances are recognised where considered appropriate by the management.

Goodwill as stated above is carried at cost and annually tested for impairment in line with applicable Accounting Standards. Impairment testing for goodwill has been carried out considering their recoverable amounts which, inter-alia, includes estimation of their value-in-use based on management projections. These projections have been made for a period of five years and consider various factors, such as market scenario, growth trends, growth and margin projections and terminal growth rates specific to the business. For such projections, discount rate of 15% and long-term growth rate of 3% have been considered. Discount rate has been determined considering the Weighted Average Cost of Capital (WACC) of market benchmarks. Based on the above assessment, no impairment has been recognised during the year.

41. The Company has disaggregated revenues from contract with customers for the year by the type of goods and services. The Company believe that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Refer note 21 for revenue disaggregation.

The following table includes revenue expected to be recognised in the future related to annual maintenance contracts and extended warranty services and advance from customers.

The Company recognized revenue of Rs. 70.60 crores (31 March 2022 : Rs. 77.37 crores) arising from contract liability balances comprising of income received in advance on annual maintenance contracts and extended warranty services and advance from customers at the beginning of the year.

The below table shows the movement of income received in advance on annual maintenance contracts and extended warranty services and advance from customers :

Invoicing in excess of revenues from sale of services are classified as "Income received in advance on annual maintenance contracts and extended warranty services" and Invoicing in excess of revenues from sale of goods are classified as "Advance from customers" in note no 17.

Reasons where the change in the ratios is more than 25% as compared to preceding years:

a) Earnings before depreciation, interest and tax (EBDITA) has increased due to higher sales and service income and decrease in material cost, and trade schemes and discounts. EBDITA being the numerator for the debt service coverage ratio, hence the increase in the ratio.

b) The ratios have been impacted due to increase in profits for the year for reasons stated in (a) above.

c) Working capital for the period has reduced due to increase in trade payable whereas sales and service income has increased, hence the ratio has increased.

d) '' Capital employed has not changed significantly, however earnings before interest and tax has increased for reasons stated

above.

e) Current investments have reduced significantly thereby effecting the average current investment. This being the denominator for the return on investment. Hence the increase in the ratio.

44. As per the E-Waste (Management) Rules, 2016, as amended, Companies dealing in certain categories of products as specified in Schedule-I therein are required to undertake Extended Producer Responsibility (EPR) for its end-of-life products. The obligation for a financial year is measured based on sales made in the preceding 9th/10th year and the Company has met its obligations for the current year. In accordance with Appendix B of Ind AS 37, ''Provisions, Contingent Liabilities and Contingent Assets'', the Company will have an e-waste obligation for future years, only if it participates in the market in those years.

45. No proceedings have been initiated or is pending against the company for holding any benami property under the ''Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

46. The Company has not been declared a wilful defaulter by any banks.

48. The Company has complied with the number of layers prescribed under (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

49. All transactions have been recorded in the books of accounts and there are no unrecorded income that have been disclosed during the year in the tax assessments under the Income Tax Act, 1961. Moreover there are no unrecorded income and related assets pertaining to previous years.

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

51. During the year ended 31 March, 2023 IFB Refrigeration Limited (IFBRL), an unlisted public limited company, has issued 9,70,00,000 (Nine crores seventy lacs) fully paid Equity shares of Rs. 10 each amounting to Rs. 97.00 crores in favour of IFB Industries Limited in a phased manner as stated below:

Post the issuance, IFB Industries Limited''s shareholding in IFBRL as on 31.03.2023 is 44.44%. Consequently, IFBRL has become an associate of IFB Industries Limited. Balance shareholding in IFBRL is held by others including individuals.

IFBRL was incorporated on the 11th March 2021. It''s capacity to manufacture refrigerator is 1 million per annum.

IFBRL has acquired 35-acre leasehold land from MIDC, in Ranjangaon, Pune. All construction and machinery installation work were completed by 22 May 2023.

IFBRL will produce a range of direct cool and frost-free refrigerators in the capacities of 193 Litres to 306 Litres in the 1st Phase. There will be a further increase in the range to produce up to 370 Litres capacity Refrigerators in the Phase 2 i.e. by the end of the fiscal year 23 - 24.

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

53. The standalone financial statements were approved by the Board of Directors on 27 May 2023.

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Mar 31, 2022

1. The Company''s investment properties consist of lands in India and includes an amount of Rs. 7 lacs (31 March 2021: Rs. 7 lacs) being assets given on an lease.

2. As at 31 March 2022 and 31 March 2021 the fair values of the properties are Rs. 715 lacs and Rs. 645 lacs respectively. These fair values are based on valuations performed by NagChowdhury Associates, an accredited independent registered valuer. NagChowdhury Associates is a specialist in valuing these types of investment properties. A valuation model (market approach) has been adopted and the valuation is in accordance with that recommended by the International Valuation Standards. The fair value measurement can be categorised into level 3 category. There has been no change in the valuation technique as compared to 31 March, 2021.

3. The Company has no restrictions on the realisability of its investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements. All the title deeds of the investment properties are held in the name of the Company.

Transfer of financial assets

The Company discounted certain trade receivables with an aggregate carrying amount of Rs. 351 lacs (31 March 2021: Nil) to a bank for cash proceeds of Rs. 348 lacs (31 March 2021: Nil). If the trade receivables are not paid at maturity, the bank has the right to request the Company to pay the unsettled balance. As the Company has not transferred the significant risks and rewards relating to these trade receivables, it continues to recognise the full carrying value of the receivables and has recognised the cash received on the transfer as secured borrowings.

At the end of the reporting period, there were no trade receivables that have been transferred but have not been derecognised and the corresponding associated liability.

Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company''s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company.

Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

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

Scheme of Amalgamation

Pursuant to the Scheme of Amalgamation (Refer note 44) the Authorised Equity Share Capital of Trishan Metals Private Limited of Rs. 2,400 lacs has been added in the Authorised Equity Share Capital of IFB Industries Limited. The enhanced Authorised Equity Share Capital of IFB Industries Limited stands at Rs. 8,900 lacs, divided into 8,90,00,000 equity shares of Rs. 10 each.

(a) For sanction of term loan amounting to Rs. 650 lacs by Federal Bank Ltd. (Balance as at 31 March, 2022 is Rs. 128 lacs), the following securites have been created:

1. Primary Security:- First charge on the plant & machineries located at Village / Mouza - Bamunari, NH-2 Delhi Road, Hooghly - 712250, West Bengal.

2. Collateral Security :-Equitable mortgage of Factory land and building along with the properties & Fixed assets ( present & future) located at Village / Mouza - Bamunari, NH-2 Delhi Road, Hooghly - 712250, West Bengal.

The said loan was restructured in September 2020 and thereafter equal quarterly instalments of Rs. 43 lacs is payable for 10 quarters. The entire loan will be discharged by December, 2022.

(b) For sanction of credit facilities amounting to Rs. 2,000 lacs (including Capex Letter of Credit amounting to Rs. 1,500 lacs as its sublimit) and Rs. 3,000 lacs by ICICI Bank Ltd. (Balance as at 31 March, 2022 is Rs. 3,500 lacs), following securities have been created:

- Exclusive charge over the movable properties including movable plant and machinery, machinery spares, tools and accessories and other movables, both present and future, whether installed or not and whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company''s stamping and motor business''s factories, premises and godowns or wherever else the same may be or be held by any party to the

order or disposition of the Company or in the course of transit or in high seas or on order, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition in such manner that the security cover of 1.25 times is maintained. For the limit utilised the Term Loan is repayable in 20 quarterly instalments starting from 19 May, 2022.

(c) For sanction of credit facilities amounting to Rs. 6,000 lacs and Rs. 1,000 lacs by DBS Bank India Ltd. (Balance as at 31 March, 2022 is Rs. 3,139 lacs), following securities have been created:

- Hypothecation by way of first and exclusive floating charge over all present and future moveable plant and machinery, equipment, appliances, furniture, vehicles, machinery, spares and stores, tools and accessories and other moveables whether or not installed and whether lying loose or in cases or which are now lying or stored in or about and may hereafter from time to time during the currency of this deed be brought into or upon or be stored in or about all the Company''s factories, premises, warehouses and godowns or wherever else the same may be or be held by any party to the order or disposition of the Company or in the courses of transit or on high seas or on order, or delivery, howsoever and wheresoever in the possession of the Company and either by way of substitution or addition (all pertaining to Company''s units located at Kolkata and Bangalore) stored or to be stored at the Company''s Godowns or premises or wherever else the same may be except asset charged specifically for debt availed, if any for purchase of conventional press line subject to NOC being sought from DBS. The Term Loan was prepaid partially in 2020-21 and the balance as at 31 March 2021 is repayable in 14 equal quarterly instalments starting from June, 2021.

(d) For sanction of external commercial borrowings amounting to USD 200 lacs by Standard Chartered Bank, London, following securities have been created:

- Hypothecation by way of first and exclusive charge over all present and future moveable properties of the Company''s manufacturing unit of air conditioners in Goa and on the existing plant and machinery of washing machine division at Goa (Verna) plant (except exclusive charge to term lenders), including without limitations its moveable plant and machinery, furniture and fittings, equipments, computers, hardware, computer software, machinery spares, tools and accessories and other movables, both whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of the security of these presents be brought into or upon or be stored or be in or about all the Company''s premises, warehouses, stockyards and godowns or those of the Company''s agents, affiliates, associates or representatives or at various worksites or at any upcountry place or places wherever else the same maybe or be held by any party including, without limitation, the following plot no. N-7, Phase IV, Survey No. 261/10, Verna Industrial Estate, Verna, Goa - 403722. The external commercial borrowings is standing at USD 135 lacs as at 31 March, 2022. The loan is repayable in 13 equal quarterly instalments starting from 1 October, 2021.

a. Provision is estimated in respect of warranty cost in the year of sale of goods and it represents the present value of the management''s best estimate of the future outflow of economic benefit that will be required under the Company''s obligation for warranties.

b. Provision for warranty is expected to be utilised over a period of 1 to 5 years.

c. The estimates may vary as a result of product quality, availability of spare parts, price of raw materials, altered manufacturing processess and discount rates.

d. Warranty costs are estimated by the management on the basis of a technical evaluation and based on specific warranties, claims and claim history.

a) Unrecognised deferred tax assets on tax losses and unabsorbed depreciation : At the reporting date, tax losses amounting to Rs. 1,276 lacs and unabsorbed depreciation amounting to Rs. 8,866 lacs are available for offset against future profits. A deferred tax asset amounting to Rs. 447 lacs on tax losses and Rs. 3,099 lacs on unabsorbed depreciation has been recognised.

Tax losses are due to expire in assessment year 2031-32. Unabsorbed depreciation can be carried forward indefinitely.

b) Consequent to approval of the Scheme of Amalgamation (Refer note 44), deferred tax assets have been recognised on carry forward tax losses and unabsorbed depreciation pertaining to erstwhile Trishan Metals Private Limited amounting to Rs. 426 lacs. The same has been recognised by reducing the carrying amount of any goodwill related to that acquisition.

(a) The Company has used the borrowings from banks for the specific purpose for which they were taken at the balance sheet date.

(b) The Company has borrowings from banks on the basis of security of current assets and the final quaterly statements of current assets filed by the Company with the banks are materially in agreement with the books of accounts and there is no discrepancy that has been identified.

(c) All charges for the borrowings have been registered with the Registrar of Companies as at the balance sheet date.

(d) The Company has not received any fund from any other persons or entities (Funding Party) with the understanding 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 or shall provide guarantee, security or the like to or on behalf of the Funding Party.

(e) Charge and hypothecation details are as follows:

(i) Credit facilities utilised as at 31 March, 2022

(A) For sanction of working capital facility amounting to Rs 10,000 lacs by Standard Chartered Bank (Utilised as at 31 March, 2022 Rs. 6,203 lacs), following securities have been created

(i) First pari passu charge on the entire current assets, both present and future.

(ii) First and exclusive charge on the plant & machinery of washing machine division at Goa (Verna) plant (both present and future).

(iii) First and exclusive charge over the plant & machinery of air-conditioner division at Goa, (both present and future).

(B) Hypothecation details of cash credit facility by Federal Bank Limited (Utilised as at 31 March, 2022 Rs. 68 lacs) as at 31 March, 2022:

Working capital facilities has been sanctioned by The Federal Bank Limited to the extent Rs. 2,500 lacs. These can be used inter-changeably between fund based and non-fund based. Following securities has been created:

1. Primary security :- Hypothecation of all current assets including entire stocks and book debts (both present and future) relating to plant situated at Village / Mouza - Bamunari, NH-2 Delhi Road, Hooghly - 712250, West Bengal.

2. Collateral security :- Equitable mortgage of factory land & building along with the Fixed assets (present & future) located at Village / Mouza - Bamunari, NH-2 Delhi Road, Hooghly - 712250, West Bengal .

(ii) Credit facilities unutilised as at 31 March 2022

(C) For sanction of capex facility amounting to Rs 2,000 lacs by Standard Chartered Bank (Unutilised as at 31

March, 2022), following securities have been created:

(i) First and exclusive charge on the plant & machinery of washing machine division at Goa (Verna) plant (both present and future).

(ii) First and exclusive charge over the plant & machinery of air-conditioner division at Goa, (both present and future).

(D) For sanction of credit facilities amounting to Rs.5,000 lacs by ICICI Bank Ltd. (Unutilised as at 31 March,

2022), following securities have been created:

- First and pari passu charge on all the current assets of the Company - the whole of the Company''s stocks of raw materials, good-in-process, semi-finished and finished goods, consumable stores and spares and such other moveables, including book debts, bills whether documentary or clean, both present and future, whether in the possession or under the control of the Company or not, whether now lying loose or in cases or which are now lying or stored in or about or shall hereafter from time to time during the continuance of these presents be brought into or upon or be stored or be in or about all the Company''s factories, premises and godowns situated at all places of business or wherever else the same may be or be held by any party to the order or disposition of the Company or in course of transit or on high seas or on order or delivery.

- Hypothecation by way of first and pari passu charge on the receivables of the Company - all amounts owing to and received and / or receivable by, the Company and / or any person on its behalf, all book debts, all cash flows and receivables and proceeds arising from / in connection with business and all rights, titles, interest, benefits, claims and demand whatsoever of the Company into or in respect of all the aforesaid assets, including but not limited to the Company''s cash-in-hand, both present and future. This facility remains unutilised as at 31 March, 2022.

(E) For sanction of credit facilities amounting to Rs. 5,000 lacs by HDFC Bank Ltd (Unutilised as at 31 March,

2022), following securities have been created:

- First pari passu charge by way of hypothecation on all the stock in trade both present and future consisting of raw material, finished goods, goods in process of manufacturing and other goods, movable assets or merchandise whatsoever now.

- First pari passu charge by way of hypothecation on all the book debts, amounts outstanding, monies receivables, claims and bills which are now due and owing or which may at any time hereafter during the continuance of this security become due.

- Exclusive charge on the sum of Rs. 2,000 lacs deposited by the Company with the Bank at its branch.

32. Defined benefit plan - Gratuity

The Company operates a defined benefit plan for gratuity for its employees. It is administered through approved trust in accordance with its trust deeds and rules. The concerned trust is managed by trustees who provide guidance with regard to the management of their assets and liabilities and review their performance periodically or directly through insurance company. Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and the investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure the adequacy of internal controls.

The liability arising in the defined benefit plan is determined by an independent professionally qualified actuary using the projected unit credit method.

Risk management

The risks commonly affecting the gratuity liability and the financial results are expected to be:

1. Interest rate risk - The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yield falls, the defined benefit obligations will tend to increase.

2. Salary inflation risk - Higher the expected increase in salary, higher the defined benefit obligation.

3. Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is important not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

- The Company is primarily engaged in business of fine blanked components, home appliances, motors and steel. Accordingly the Company considers the above business segment as the primary segment. Segment revenue, segment result, segment asset and segment liabilities include the respective amount identifiable to each of the segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallocable corporate cost and grouped as "Unallocated". Assets and liabilities that cannot be allocated between the segments are shown as unallocable corporate assets and liabilities and are grouped as "Unallocated". These segments have been reported in the manner consistent with the internal reporting to divisional CEO''s, who are the chief operating decision makers.

- The geographical information considered for disclosure are revenue within India and revenue outside India.

- The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer.

34. Leases

The Company is obligated under cancellable leases for residential, office premises, warehouses, etc. Total rental expense under cancellable short term operating lease amounted to Rs. 391 Lacs (31 March 2021: Rs. 298 lacs).

In applying Ind AS 116 - "Leases", the Company has applied a single discount rate to a portfolio of leases with reasonably similar characteristics. The leases with remaining lease term of less than 12 months are considered as "short term leases".

38. Dues to micro, small and medium enterprises

The Ministry of micro, small and medium enterprises has issued an office memorandum dated 26 August 2008 which recommends that the micro and small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprise Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises has been made in the financial statements based on the information received and available with the Company. Payable to micro and small enterprises as at 31 March 2022: Rs. 14,374 lacs (31 March 2021: Rs. 10,141 lacs).

Further, in view of the management, the impact of the interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

39. Financial instruments and related disclosures i) Capital management

The Company''s capital management policy is focused on business growth and creating value for shareholders. The Company determines the amount of capital required on the basis of annual business plans and the funding needs are met through internal accruals and bank borrowings.

(iii) Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.

a) Liquidity risks

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquid risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

b) Market risks

The Company does not trade in equities. Treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within the acceptable risk parameters after due evaluation.

The Company''s investments are predominantly held in debt mutual funds. Such investments are susceptible to market risks that arise mainly from changes in interest rate which may impact the return and value of such investments. Mark to market movements in respect of these investments are measured at fair value through Profit and Loss.

Fixed deposits are held with highly rated banks and generally have a short tenure and are not subject to interest rate volatility.

The Company has short-term borrowings which are generally not susceptible to interest rate volatility since they are for short tenure. Long term loans from banks are at highly competitive rates. Hence interest rate fluctuations on borrowings does not affect the Company significantly.

iii) Foreign currency sensitivity

For every percentage point change in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the loss before tax would change by Rs. 311 lacs for the year ended 31 March 2022 (31 March 2021: Rs 308 lacs).

d) Credit risk

Credit risk arise from the possibility that the counter party may not be able to settle their obligations. Financial instruments that are subject to such risk primarily consists of investments, trade receivables, bank deposits, loans, derivative instruments and other financial assets.

Bank deposits are primarily held with highly rated and different banks.

The Company''s customer base is large and diverse limiting the risk arising out of credit concentration. Further the credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities after due consideration of the counter parties credentials and financial capacity, trade practices and prevailing business and economic conditions.

The Company''s historical experience of collecting receivables and the level of default indicates that the credit risk is low and generally uniform across markets. Loss allowances are recognised where considered appropriate by the management.

Goodwill as stated above is carried at cost and annually tested for impairment in line with applicable Accounting Standards. Impairment testing for goodwill has been carried out considering their recoverable amounts which, inter-alia, includes estimation of their value-in-use based on management projections. These projections have been made for a period of five years and consider various factors, such as market scenario, growth trends, growth and margin projections and terminal growth rates specific to the business. For such projections, discount rate of 15% and long-term growth rate of 5% have been considered. Discount rate has been determined considering the Weighted Average Cost of Capital (WACC) of market benchmarks. Based on the above assessment, no impairment has been recognised during the year.

41. The Company has disaggregated revenues from contract with customers for the year by the type of goods and services. The Company believe that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Refer note 21 for revenue disaggregation.

Reasons where the change in the ratios is more than 25% as compared to preceeding years:

a) Earnings before depreciation, interest and tax (EBDITA) has reduced due to increase in material cost, promotion cost, and offices expenses that have increased considerably. EBDITA being the numerator for the debt equity ratio, hence the fall in the ratio.

b) The ratios have been impacted due to fall in profits for the year for reasons stated in (a) above. Further depreciation and amortisation and finance cost have also increased.

c) Working capital for the period has reduced due to increase in trade payable whereas sales and service income has increased, hence the ratio has increased.

d) Capital employed has not changed significantly, however earnings before interest and tax has reduced for reasons stated above.

44. Business Combination Note:

(a) During the year, the Hon''ble National Company Law Tribunal (NCLT), Kolkata Bench vide its order dated 27 January, 2022 has approved the ''Scheme of Amalgamation'' of wholly owned subsidiary of IFB Industries Limited (IFBIL) namely Trishan Metals Private Limited (TMPL) (Transferor Company) with IFBIL (Transferee Company) with appointed date 1 April, 2021. IFBIL filed the certified copy of the said order along with the requisite form with the Registrar of Companies, Kolkata on 19 February, 2022 (effective date).

No voting interest were acquired in the above transaction.

(b) Since it was an amalgamation of a wholly owned subsidiary, no consideration was required to be transferred upon amalgamation. The ''Scheme of Amalgamation'' has accordingly been given effect in the financial statements of the Company from the appointed date. Accordingly the figures presented in the financial statements are after giving effect to the said Scheme. The ''Scheme of Amalgamation'' being a common control transaction, as per the requirement of Appendix C of Ind AS 103 on Business Combinations, the pooling of interest method has been applied and the comparative figures have been restated for the accounting impact of the Scheme. The effects of the ''Scheme of Amalgamation'' has been accounted for in the books of accounts of the Company in accordance with the Scheme and is in accordance with the Indian Accounting Standards.

(c) Acquisition related cost amounting to Rs. 8 lacs (31 March, 2021 Rs 6 lacs) has been included in note no. 29 under ''Office expenses''.

45. Impact of COVID-19 (pandemic)

The spread of COVID-19 has impacted businesses around the globe. The Company''s operations and financial statements for the year ended 31 March 2022 have been impacted by COVID-19 pandemic. On the basis of the assessment done by the management the carrying amounts of assets are recoverable.

46. As per the E-Waste (Management) Rules, 2016, as amended, companies dealing in certain categories of products as specified in Schedule-I therein are required to undertake Extended Producer Responsibility (EPR) for its end-of-life products. The obligation for a financial year is measured based on sales made in the preceding 9th/10th year and the Company has met its obligations for the current year. In accordance with Appendix B of Ind AS 37, ''Provisions, Contingent Liabilities and Contingent Assets'', the Company will have an e-waste obligation for future years, only if it participates in the market in those years.

47. No proceedings have been initiated or is pending against the company for holding any benami property under the ''Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

48. The Company has not been declared a wilful defaulter by any banks.

49. The Company has not identified any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

50. The Company has complied with the number of layers prescribed under (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017.

51. All transactions have been recorded in the books of accounts and there are no unrecorded income that have been disclosed during the year in the tax assessments under the Income Tax Act, 1961. Moreover there are no unrecorded income and related assets pertaining to previous years.

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

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

54. The standalone financial statements were approved by the Board of Directors on 28 May 2022.

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Mar 31, 2019

1. The Company’s investment properties consist of lands in India and it includes an amount of Rs. 7 lacs (31 March 2018: Rs. 7 lacs) being assets given on an operating lease.

2. As at 31 March 2019 and 31 March 2018 the fair values of the properties are Rs. 530 lacs and Rs. 500 lacs respectively. These valuations are based on valuations performed by Nag Chowdhury Associates, an accredited independent valuer. Nag Chowdhury Associates is a specialist in valuing these types of investment properties. A valuation model (market approach) in accordance with that recommended by Indian Institute of Surveyors has been applied. The fair value measurement can be categorised into level 3 category.

3. The Company has no restrictions on the realisability of its investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

4. Information regarding income and expenditure of investment property:

5. The cost of inventories recognised as an expense during the year was Rs. 1,74,890 lacs (31 March 2018: Rs. 1,44,130 lacs).

6. The cost of inventories recognised as an expense includes Rs. 428 lacs (31 March 2018 : Rs. 349 lacs) in respect of writedowns of inventory to its net realisable value. Further a sum of Rs. 219 lacs (31 March 2018: Rs. 306 lacs) is in respect of reversal of such write-downs. The write downs have been reduced primarily as a result of increased sales price or subsequent disposals.

7. Carrying amount of inventories carried at fair value Rs. 1,433 Lacs (31 March 2018: Rs. 898 lacs).

Transfer of financial assets

The Company discounted certain trade receivable with an aggregate carrying amount of Rs. 4,472 lacs (31 March 2018: Rs. 1,940 lacs) to a bank for cash proceeds of Rs. 4,439 lacs (31 March 2018: Rs. 1,916 lacs). If the trade receivable are not paid at maturity, the bank has the right to request the Company to pay the unsettled balance. As the Company has not transferred the significant risks and rewards relating to these trade receivable, it continues to recognise the full carrying amount of the receivables and has recognised the cash received on the transfer as a secured borrowings.

At the end of the reporting period, the carrying amount of the trade receivable that has been transferred but have not been derecognised and the carrying amount of the associated liability is as under:

Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company’s residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company.

Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

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

First and exclusive floating charge over all present and future movable property, plant and equipment of the Company’s engineering division located at Kolkata and Bangalore stored or to be stored at the Company’s godown or premises or wherever else the same may be. The Term Loan is repayable in 16 quarterly installments from the end of the 15th month from the date of first disbursement i.e. 09 March 2016.

a. Provision is estimated in respect of warranty cost in the year of sale of goods and it represents the present value of the management’s best estimate of the future outflow of economic benefit that will be required under the Company’s obligation for warranties.

b. Provision for warranty is expected to be utilised over a period of 1 to 5 years.

c. The estimates may vary as a result of product quality, availability of spare parts, price of raw materials, altered manufacturing processess and discount rates.

d. Warranty costs are estimated by the management on the basis of a technical evaluation and based on specific warranties, claims and claim history.

Hypothecation details for current borrowings existing as at 31 March 2019

For sanction of credit facilities amounting to Rs. 3,500 lacs by DBS Bank Ltd., following securities have been created:

(i) Hypothecation by way of first pari passu and floating charge over goods being finished goods, semi-finished goods, stocks of raw-materials, work-in-process located at various factories/ warehouses/ godowns of the company and whether in transit or lying at any other place and hypothecation by way of first pari passu and floating charge over the company’s present and future book debts, outstanding monies receivables, claims, bills, contracts, engagements, securities, investments, rights and assets.

(ii) Hypothecation by way of exclusive charge over all present and future movable fixed assets of the engineering division of the Company including without limitation its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc. stored or to be stored at Company’s godowns or premises situated at 14, Taratolla Road, Kolkata and 16/17, Visveswaraiah Industrial Estate, Whitefield Road, Bangalore - 560048 (Engineering Division) or wherever else the same may be.

Hypothecation details for credit facilities

For sanction of capex letter of credit amounting to Rs 2,000 lacs by Standard Chartered Bank (undrawn as at 31 March, 2019), following securities have been created:

First charge on existing movable fixed assets of Goa (Verna) plant (except exclusive charge to term lenders) of the company including without limitations its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc stored or to be stored at the company’s godown or premises situated at Plot no L-1, Verna Electronic City, Verna Industrial Estate, Goa - 403722 or wherever else the same may be.

For sanction of working capital facility amounting to Rs 10,000 lacs by Standard Chartered Bank, following securities have been created:

(i) First pari passu charge on all current assets, both present and future.

(ii) First charge on existing movable fixed assets of Goa (Verna) plant (except exclusive charge to term lenders).

(iii) Second charge on the leasehold land and building of Goa (Verna) unit on all that piece and parcel of non-agricultural land bearing at No. L1 situated within the village panchayat of Nagoa, Verna Plateau, Verna Industrial Estate, Taluka Salcete, District South Goa and registration sub district ILHAS in the state of Goa containing by admeasuring 48,695 square meters or thereabout.

8. Defined benefit plan - Gratuity

The Company operates a defined benefit plan for gratuity for its employees. It is administered through approved trust in accordances with its trust deeds and rules. The concerned trusts are managed by trustees who provide guidance with regard to the management of their assets and liabilities and review their performance periodically. Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and the investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure the adequacy of internal controls.

The liability arising in the defined benefit plan is determined by an independent professionally qualified actuary using the projected unit credit method.

Risk management

The risks commonly affecting the gratuity liability and the financial results are expected to be:

1. Interest rate risk - The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yield falls, the defined benefit obligations will tend to increase.

2. Salary Inflation risk - Higher the expected increase in salary will increase the defined benefit obligation.

3. Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is importantly not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

IX. Sensitivity analysis

The sensitivity results below determine their individual impact on the plan’s year end defined benefit obligations. In reality, the plan is subject to multiple external experience items which may move the defined benefit obligations in similar or opposite directions, while the plans’s sensitivity to such changes can vary over time.

NOTES :

- The Company is primarily engaged in business of fine blanked components and home appliances. Accordingly the Company considers the above business segment as the primary segment. Segment revenue, segment result, segment asset and segment liabilities include the respective amount identifiable to each of the segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallocable corporate cost and grouped as “Unallocated”. Assets and liabilities that cannot be allocated between the segments are shown as unallocable corporate assets and liabilities and are grouped as “Unallocated”. These segments have been reported in the manner consistent with the internal reporting to the Board of Directors, who are the chief operating decision makers.

- The geographical information considered for disclosure are revenue within India and revenue outside India.

- The Company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer.

9. Leases

The Company is obligated under cancellable leases for residential, office premises, warehouses, etc. Total rental expense under cancellable operating lease amounted to Rs. 3,127 Lacs (31 March 2018: Rs. 2,352 lacs).

It is not practicable for the Company to estimate the closure of these cases and the consequential timings of cash flows, if any, in respect of the above.

¹ The Hon’ble Delhi High Court by its order dated 10 September 2015 set aside the order of Policy Relaxation Committee (PRC) with liberty to the petitioner to file a representation before the PRC. The respondents were directed to pass a reasoned order after giving the opportunity of hearing. The matter was heard by PRC and PRC by its order dated 13 October 2015 rejected the prayer of petitioner. Being aggrieved by PRC’s order the company filed writ application before Division Bench of Delhi High Court. After prolonged hearing the bench by its order dated 03 April 2017 allowed the writ petition and set aside the order of PRC and directed PRC inter-alia to reconsider its order dated 13 October 2015 in the light of observation made by the Division Bench. Subsequently the PRC in its meeting held on 05 September 2017 allowed most of the prayers of the Company and decided inter alia that Regional Authorities (RA) shall ensure that other requirement as per Free Trade Agreements (FTA)/ Hand Book of Procedures (HBP) are complied with. During the year the Company has obtained the necessary Export Obligation Discharge Certificates for 11 nos of above advance licenses from Additional Director General of Foreign Trade, Government of India, Ministry of Commerce & Industry.

10. Dues to micro, small and medium enterprises

The Ministry of micro, small and medium enterprises has issued an office memorandum dated 26 August 2008 which recommends that the micro and small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ‘Micro, Small and Medium Enterprise Development Act, 2006’ (‘the Act’). Accordingly, the disclosure in respect of the amounts payable to such enterprises has been made in the financial statements based on the information received and available with the Company. Payable to micro and small enterprises as at 31 March 2019 : Rs 3,833 lacs (31 March 2018 : 4,728 lacs).

Further, in view of the management, the impact of the interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

11. Financial instruments and related disclosures

i) Capital management

The Company’s capital management policy is focused on business growth and creating value for shareholders. The Company determines the amount of capital required on the basis of annual business plans and the funding needs are met through internal accruals and bank borrowings.

Investments exclude investment in subsidiaries of Rs. 3,360 lacs (31 March 2018: 3,360 lacs) which are shown at cost in balance sheet as per Ind AS 27 - ‘Separate Financial Statements’.

iii) Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company’s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.

a) Liquidity risks

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquid risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The Company has obtained fund and non-fund based working capital lines from banks. Furthermore, the Company has sufficient quantities of finished goods and stock-in-trade which are liquid and readily saleable. Hence the risk that the Company may not be able to settle its financial liabilities as they become due does not exist.

The following tables shows a maturity analysis of the anticipated cash flows for the Company’s derivative and non-derivative financial liabilities.

b) Market risks

The Company does not trade in equities. Treasury activities, focused on managing investments in debt instruments, are centralised and administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within the acceptable risk parameters after due evaluation.

The Company’s investments are predominantly held in debt mutual funds. Such investments are susceptible to market risks that arise mainly from changes in interest rate which may impact the return and value of such investments. Mark to market movements in respect of these investments are measured at fair value through Statement of Profit and Loss.

Fixed deposits are held with highly rated banks and generally have a short tenure and are not subject to interest rate volatility.

The company has short-term borrowings which are generally not susceptible to interest rate volatility since they are for short tenure. Long term loans from banks are at highly competitive rates and as such these loans are not that material taking into account the Company’s asset base. Hence interest rate fluctuations on borrowings does not affect the Company significantly.

c) Foreign currency risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Euro, GBP, RMB and AED) which are subject to the risk of exchange rate fluctuations.

iii) Foreign currency sensitivity

For every percentage point change in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax would change by Rs. 129 lacs for the year ended 31 March 2019 (31 March 2018: Rs 109 lacs).

d) Credit risk

Credit risk arise from the possibility that the counter party may not be able to settle their obligations. Financial instruments that are subject to such risk primarily consists of investments, trade receivables, bank deposits, loans, derivative instruments and other financial assets.

Bank deposits are primarily held with highly rated and different banks.

The Company’s customer base is large and diverse limiting the risk arising out of credit concentration. Further the credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities after due consideration of the counter parties credentials and financial capacity, trade practices and prevailing business and economic conditions.

The Company’s historical experience of collecting receivable and the level of default indicates that the credit risk is low and generally uniform across markets. Loss allowances are recognised where considered appropriate by the management.

Other than financial assets mentioned above, none of the Company’s financial assets are either impaired or past due, and there were no indications that defaults in payment would occur.

e) Fair value hierarchy

The fair value of trade receivables, current loans, other current financial assets, current borrowings, trade payables and other current financial liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

12. Business Combinations

a) The Company entered into business transfer agreement with Ramsons Garments Finishing Equipment Private Limited, Ramsons Udhyog Private Limited and its Promoters at a consideration of Rs. 3,500 lacs to acquire the entire ‘Industrial Laundry Equipment’ business from above two companies. The Company has taken control of the business w.e.f. 18 October, 2018 (acquisition date).

No voting interest were acquired in the above transaction.

Ramsons has been a pioneer in the design and manufacture of Commercial Laundry Equipment. This acquisition is in the same field of business and will help in consolidation and growth of ‘Industrial Landry Equipment’ business of the Company.

b) The acquisition-date fair value of the total consideration transferred was Rs. 3,456 lacs and the interest on present valuation of the same amounted to Rs. 44 lacs. The sum of Rs. 3,500 lacs was paid in cash (online transfer). Out of the above consideration an amount of Rs. 150 lacs was subsequently paid after the year end.

(e) An amount of Rs. 1,317 lacs and a loss of Rs. 233 lacs pertaining to the ‘Industrial Laundry Equipment’ manufacture business from the acquisition date till 31 March, 2019 is included in the Revenue from operations and Profit before tax of the Company.

(f) Acquisition related cost amounting to Rs. 42 lacs has been included in in note no. 30 under ‘Office expenses’.

13. Exceptional item represents gain of Rs. 1,935 lacs towards Compulsory Acquisition of 1578.63 square metres of factory land etc. situated at 16/17, Visveswariah Industrial Estate, Whitefield Road, Bangalore - 560048 by Bangalore Metro Rail Corporation Limited for a consideration of Rs. 1956 lacs. Out of the gain Rs. 26 lacs is towards building and the balance amount of Rs. 1,909 lacs is towards freehold land.

14. The company has adopted new standard on revenue recognition, Ind AS 115 “Revenue from Contract with Customer” and has also appropriately evaluated its revenue recognition policy with effect from 1 April 2018. The Company has used “Modified Retrospective Approach” for transition to Ind AS 115 and thus the previous period/year numbers are not restated. The adoption of the standard did not have any material impact on the financial statements.

The Company has disaggregated revenues from contract with customers for the year ended 31 March 2019 by the type of goods and services. The Company believe that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by industry, market and other economic factors. Refer note 21 for revenue disaggregation.

The Company recognized revenue of Rs. 4,875 lacs (31 March 2018 : Rs. 4,096 lacs) arising from contract liability balances comprising of income earned in advance on annual maintenance contracts and extended warranty services and advance from customers at the beginning of the year.

Invoicing in excess of revenues from sale of services are classified as “Income earned in advance on annual maintenance contracts and extended warranty services” and Invoicing in excess of revenues from sale of goods are classified as “Advance from customers” in note no 17.

15. The standalone financial statements were approved by the Board of Directors on 29 May 2019.

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Mar 31, 2018

1. The Company''s investment properties consist of lands in India and it includes an amount of Rs. 7 lacs (31 March 2017: Rs. 7 lacs and 01 April 2016: Rs. 7 lacs) being assets given on an operating lease.

2. As at 31 March 2018, 31 March 2017 and 01 April 2016 the fair values of the properties are Rs. 500 lacs, Rs. 458 lacs and Rs. 422 lacs respectively. These valuations are based on valuations performed by NagChowdhury Associates, an accredited independent valuer. NagChowdhury Associates is a specialist in valuing these types of investment properties. A valuation model (market approach) in accordance with that recommended by Indian Institute of Surveyors has been applied. The fair value measurement can be categorized into level 3 category.

3. The company has no restrictions on the reliability of its investment properties and no contractual obligations to either purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

4. Information regarding income and expenditure of investment property:

The cost of inventories recognized as an expense during the year was Rs. 1,44,130 lacs (31 March 2017: Rs. 1,22,588 lacs).

The cost of inventories recognized as an expense includes Rs. 349 lacs (31 March 2017 : Rs. 424 lacs) in respect of write-downs of inventory to its net realizable value. Further a sum of Rs. 306 lacs (31 March 2017: Rs. 84 lacs) is in respect of reversal of such write-downs. The write downs have been reduced primarily as a result of increased sales price or subsequent disposals.

Carrying amount of inventories carried at fair value Rs. 898 Lacs (31 March 2017: 1,245 lacs, 01 April 2016: Rs. 761 lacs)

The company discounted certain trade receivable with an aggregate carrying amount of Rs. 1,940 lacs (31 March 2017: Rs. 2,713 lacs) to a bank for cash proceeds of Rs. 1,916 lacs (31 March 2017: Rs. 2,669 lacs). If the trade receivable are not paid at maturity, the bank has the right to request the company to pay the unsettled balance. As the company has not transferred the significant risks and rewards relating to these trade receivable, it continues to recognize the full carrying amount of the receivables and has recognized the cash received on the transfer as a secured borrowings.

voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company.

Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

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

For sanction of term loan amounting to Rs 3,000 lacs by DBS Bank Ltd, following securities have been created :

First and exclusive floating charge over all present and future movable property, plant and equipment of the Company''s engineering division located at Kolkata and Bangalore stored or to be stored at the Company''s go down or premises or wherever else the same may be.

a. Provision is estimated in respect of warranty cost in the year of sale of goods and it represents the present value of the management''s best estimate of the future outflow of economic benefit that will be required under the company''s obligation for warranties.

b. Provision for warranty is expected to be utilized over a period of 1 to 5 years.

c. The estimates may vary as a result of product quality, availability of spare parts, price of raw materials, altered manufacturing processes and discount rates.

d. Warranty costs are estimated by the management on the basis of a technical evaluation and based on specific warranties, claims and claim history.

Hypothecation details for current borrowings existing as at 31 March 2018

For sanction of credit facilities amounting to Rs. 3,500 lacs by DBS Bank Ltd., following securities have been created:

(i) Hypothecation by way of first pari passu and floating charge over goods being finished goods, semi-finished goods, stocks of raw-materials, work-in-process located at various factories/ warehouses/ god owns of the company and whether in transit or lying at any other place and hypothecation by way of first pari passu and floating charge over the company''s present and future book debts, outstanding monies receivables, claims, bills, contracts, engagements, securities, investments, rights and assets.

(ii) Hypothecation by way of exclusive charge over all present and future movable fixed assets of the engineering division of the Company including without limitation its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc. stored or to be stored at Company''s godowns or premises situated at 14, Taratolla Road, Kolkata and 16/17, Visveswaraiah Industrial Estate, Whitefield Road, Bangalore - 560048 (Engineering Division) or wherever else the same may be.

Hypothecation details for credit facilities

For sanction of capex letter of credit amounting to Rs 2,000 lacs by Standard Chartered Bank, following securities have been created:

First charge on existing movable fixed assets of Goa (Verna) plant (except exclusive charge to term lenders) of the company including without limitations its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc stored or to be stored at the company''s godown or premises situated at Plot no L-1, Verna Electronic City, Verna Industrial Estate, Goa - 403722 or wherever else the same may be.

For sanction of working capital facility amounting to Rs 10,000 lacs by Standard Chartered Bank, following securities have been created:

(i) First pari passu charge on all current assets, both present and future.

(ii) First charge on existing movable fixed assets of Goa (Verna) plant (except exclusive charge to term lenders).

(iii) Second charge on the leasehold land and building of Goa (Verna) unit on all that piece and parcel of non-agricultural land bearing at No. L1 situated within the village panchayat of Nagoa, Verna Plateau, Verna Industrial Estate, Taluka Salcete, District South Goa and registration sub district ILHAS in the state of Goa containing by admeasuring 48,695 square meters or thereabout.

33. Defined benefit plan - Gratuity

The Company operates a defined benefit plan for gratuity for its employees. It is administered through approved trust in accordance’s with its trust deeds and rules. The concerned trusts are managed by trustees who provide guidance with regard to the management of their assets and liabilities and review their performance periodically. Risk mitigation systems are in place to ensure that the health of the portfolio is regularly reviewed and the investments do not pose any significant risk of impairment. Periodic audits are conducted to ensure the adequacy of internal controls.

The liability arising in the defined benefit plan is determined by an independent professionally qualified actuary using the projected unit credit method.

Risk management

The risks commonly affecting the gratuity liability and the financial results are expected to be:

1. Interest rate risk - The defined benefit obligation calculated uses a discount rate based on government bonds. If bond yield falls, the defined benefit obligations will tend to increase.

2. Salary Inflation risk - Higher the expected increase in salary will increase the defined benefit obligation.

3. Demographic risk - This is the risk of variability of results due to unsystematic nature of decrements that include mortality, withdrawal, disability and retirement. The effect of these decrements on the defined benefit obligation is not straight forward and depends upon the combination of salary increase, discount rate and vesting criteria. It is importanty not to overstate withdrawals because in the financial analysis the retirement benefit of a short career employee typically costs less per year as compared to a long service employee.

NOTES :

- The Company is primarily engaged in business of fine blanked components and home appliances. Accordingly the Company considers the above business segment as the primary segment. Segment revenue, segment result, segment asset and segment liabilities include the respective amount identifiable to each of the segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallowable corporate cost and grouped as "Unallocated". Assets and liabilities that cannot be allocated between the segments are shown as unallocable corporate assets and liabilities and are grouped as "Unallocated". These segments have been reported in the manner consistent with the internal reporting to the Board of Directors, who are the chief operating decision makers.

- The geographical information considered for disclosure are revenue within India and revenue outside India.

- The company is not reliant on revenues from transactions with any single external customer and does not receive 10% or more of its revenues from transactions with any single external customer.

35. Leases

The Company is obligated under cancellable leases for residential, office premises, warehouses, etc. Total rental expense under cancellable operating lease amounted to Rs. 2,352 Lacs (31 March 2017: Rs. 1,777 lacs).

It is not practicable for the Company to estimate the closure of these cases and the consequential timings of cash flows, if any, in respect of the above.

¹ The Hon''ble Delhi High Court by its order dated 10 September 2015 set aside the order of Policy Relaxation Committee (PRC) with liberty to the petitioner to file a representation before the PRC. The respondents were directed to pass a reasoned order after giving the opportunity of hearing. The matter was heard by PRC and PRC by its order dated 13 October 2015 rejected the prayer of petitioner. Being aggrieved by PRC''s order the company filed writ application before Division Bench of Delhi High Court. After prolonged hearing the bench by its order dated 03 April 2017 allowed the writ petition and set aside the order of PRC and directed PRC inter-alia to reconsider its order dated 13 October 2015 in the light of observation made by the Division Bench. Keeping in mind the direction of Hon''ble Delhi High Court and taking into consideration the genuine hardship expressed in the revised representation by the Company, the PRC in its meeting held on 05 September 2017 allowed most of the prayers of the Company and decided inter alia that Regional Authorities (RA) shall ensure that other requirement as per Free Trade Agreements (FTA)/ Hand Book of Procedures (HBP) are complied with. The Company is now dealing with RA to obtain discharge certificates.

38. Related party disclosures

(A) The Company has the following related parties

Investor Company :	IFB Automotive Private Limited
Subsidiary Companies :	- Trishan Metals Private Limited (TMPL) (w.e.f. 11 July 2016) - Global Automotive and Appliances Pte Limited (GAAL) (w.e.f. 13 July 2017) - Thai Automotive and Appliances Limited (TAAL) - subsidiary of GAAL
Key Management Personnel	Mr. Bijon Nag, Executive Chairman
(KMP) :	Mr. Bikram Nag, Joint Executive Chairman and Managing Director
	Mr. Sudam Maitra, Deputy Managing Director
	Mr. Prabir Chatterjee, Director and Chief Financial Officer
	Mr. G. Ray Chowdhury, Company Secretary
	Mr. A K Nag, President
	Mr. Sujan Kumar Ghosh Dastidar, President, Legal
	Mr. Susanta Das, Head of Personnel and Administration
	Mr. Uma Shankar Ghosh Dastidar, Head - Taxation
	Mr. Rahul Choudhary, Vice President, Corporate affairs and banking (resigned w.e.f. 01 December 2017)
	Mr. Rajat Paul, Assistant Vice President, IT
	Mr. Diptanil Saha, General Manager (GM), Corporate affairs
	Mr. Soumitra Goswami, GM, Accounts and Finance
	Mr. Jayanta Chanda , GM, Finance
	Mr. Ashok Hazra, Assistant General Manager, Internal Audit
	Mr. Rajshankar Ray, Chief Executive Officer (CEO), Home Appliances Division
	Mr. A.S. Negi, National Service Head , Home Appliances Division
	Mr. B.M. Shetye, Vice President, Sustainability, Home Appliances Division
	Mr. Pawan Koul, Head of Goa Factory
	Mr. Sukhdev Nag, National Sales Head
	Mr. T.R. Ramesh, Business Head, Home Appliances Division, Central
	Mr. Ranjan Mohan Mathur, Business Head, Home Appliances Division - North and National Head, IFB Points
	Mr. Abhi it Gangopadhyay, Business Head, East
	Mr. Partha Sen, CEO, Engineering Division
	Mr. K.R.K. Prasad, CEO, Bangalore Engineering Factory.
	Mr. Arup Das, Head Marketing , Engineering Division
	Mr. R. Anand, Head, Motor Division

Other related parties - IFB Agro Industries Limited

- Travel Systems Limited

- IFB Global Limited

- IFB Appliances Limited

- Anjali foundation

Employee trusts where - Indian Fine Blank Limited Employees Gratuity Fund (IFBLEGF)

there is significant influence - IFBL Senior Management Superannuation Fund (IFBLSMSF)

(Employee trusts) - IFBL Employees'' (Category-I) Superannuation Scheme (IFBLESS-Cat-I)

- IFBL Employees (Category Two) Group Superannuation Scheme (IFBLEGSS-Cat two)

39. Dues to micro, small and medium enterprises

The Ministry of micro, small and medium enterprises has issued an office memorandum dated 26 August 2008 which recommends that the micro and small enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprise Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises has been made in the financial statements based on the information received and available with the Company. Payable to micro and small enterprises as at 31 March 2018: Rs 666 lacs (31 March 2017: Rs 475 lacs, 31 March 2016: Rs 283 lacs).

Further, in view of the management, the impact of the interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

40. Financial instruments and related disclosures i) Capital management

The Company''s capital management policy is focused on business growth and creating value for shareholders. The Company determines the amount of capital required on the basis of annual business plans and the funding needs are met through internal accruals and bank borrowings.

Investments exclude investment in subsidiaries of Rs. 3,360 lacs (31 March 2017: 1,200 lacs, 01 April 2016: Nil) which are shown at cost in balance sheet as per Ind AS 27 - ''Separate Financial Statements''.

iii) Financial risk management objectives

The Company has a system-based approach to risk management, anchored to policies and procedures and internal financial controls aimed at ensuring early identification, evaluation and management of key financial risks (such as market risk, credit risk and liquidity risk) that may arise as a consequence of its business operations as well as its investing and financing activities. Accordingly, the Company''s risk management framework has the objective of ensuring that such risks are managed within acceptable and approved risk parameters in a disciplined and consistent manner and in compliance with applicable regulation. It also seeks to drive accountability in this regard.

a) Liquidity risks

Liquidity risk refers to the risk that the Company cannot meet its financial obligations. The objective of liquid risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements.

The company has obtained fund and non-fund based working capital lines from banks. Furthermore, the Company has sufficient quantities of finished goods and stock-in-trade which are liquid and readily saleable. Hence the risk that the company may not be able to settle its financial liabilities as they become due does not exist.

The following tables shows a maturity analysis of the anticipated cash flows for the company''s derivative and no derivative financial liabilities.

b) Market risks

The Company does not trade in equities. Treasury activities, focused on managing investments in debt instruments, are centralized and administered under a set of approved policies and procedures guided by the tenets of liquidity, safety and returns. This ensures that investments are only made within the acceptable risk parameters after due evaluation.

The Company''s investments are predominantly held in debt mutual funds. Such investments are susceptible to market risks that arise mainly from changes in interest rate which may impact the return and value of such investments. Mark to market movements in respect of these investments are measured at fair value through Statement of Profit and Loss.

Fixed deposits are held with highly rated banks and generally have a short tenure and are not subject to interest rate volatility.

The company has short-term borrowings which are generally not susceptible to interest rate volatility since they are for short tenure. Long term loans from banks are at highly competitive rates and as such these loans are not that material taking into account the Company''s asset base. Hence interest rate fluctuations on borrowings does not affect the Company significantly.

c) Foreign currency risk

The Company undertakes transactions denominated in foreign currency (mainly US Dollar, Euro, RMB and THB) which are subject to the risk of exchange rate fluctuations.

For every percentage point change in the underlying exchange rate of the outstanding foreign currency denominated assets and liabilities, holding all other variables constant, the profit before tax would change by Rs 109 lacs for the year ended 31 March 2018 (31 March 2017: Rs 79 lacs).

d) Credit risk

Credit risk arise from the possibility that the counter party may not be able to settle their obligations. Financial instruments that are subject to such risk primarily consists of investments, trade receivables, bank deposits, loans, derivative instruments and other financial assets.

Bank deposits are primarily held with highly rated and different banks.

The Company''s customer base is large and diverse limiting the risk arising out of credit concentration. Further the credit is extended in business interest in accordance with guidelines issued centrally and business-specific credit policies that are consistent with such guidelines. Exceptions are managed and approved by appropriate authorities after due consideration of the counter parties credentials and financial capacity, trade practices and prevailing business and economic conditions.

The Company''s historical experience of collecting receivable and the level of default indicates that the credit risk is low and generally uniform across markets. Loss allowances are recognized where considered appropriate by the management.

Other than financial assets mentioned above, none of the Company''s financial assets are either impaired or past due, and there were no indications that defaults in payment would occur.

e) Fair value hierarchy

The fair value of trade receivables, current loans, other current financial assets, current borrowings, trade payables and other current financial liabilities is considered to be equal to the carrying amounts of these items due to their short-term nature.

There were no transfers between Level 1 and Level 2 during the year ended 31 March 2018 and 31 March 2017.

41. First-time adoption of Ind AS

i) Ind AS 101 - First-time adoption of Indian Accounting Standards provides a suitable starting point for accounting in accordance with Ind AS and is required to be mandatorily followed by first-time adopters. The Company has prepared the opening balance sheet as per Ind AS as of 01 April 2016 (the transition date) by:

a) recognizing all assets and liabilities whose recognition is required by Ind AS,

b) not recognizing items of assets or liabilities which are not permitted by Ind AS,

c) reclassifying items from previous GAAP to Ind AS as required under Ind AS, and

d) applying Ind AS in measurement of recognized assets and liabilities.

iii) Ind AS 101 mandates certain exceptions and allows first-time adopters exemptions from the retrospective application of certain requirements under Ind AS. The Company has applied the following exemptions in the financial statements:

a) Property, plant and equipment and intangible assets were carried in the Balance sheet prepared in accordance with previous GAAP as at 31 March 2016. Under Ind AS, the Company has elected to regard such carrying values as deemed cost at the date of transition.

iv) In addition to the above, the principal adjustments made by the Company in restating its previous GAAP financial statements, including the balance sheet as at 01 April 2016 and the financial statements as at and for the year ended 31 March 2017 are detailed below:

a) Under previous GAAP, current investments were stated at lower of cost and fair value. Under Ind AS, these financial assets have been classified as FVTPL on the date of transition and fair value changes after the date of transition has been recognized in statement of profit and loss.

b) Under previous GAAP, the premium or discount arising at the inception of forward exchange contracts entered into, to hedge existing assets/ liabilities were amortized as expense or income over the life of the contracts. Exchange

difference on such contracts were recognized in the statement of profit and loss in the reporting period in which the exchange rates changed. Any profit or loss arising on cancellation or renewal of such a forward exchange contract were recognized as income or as an expense for the period. Under Ind AS, such derivative financial instruments are recognized at fair value through profit or loss and are subsequently re-measured to their fair value at the end of each reporting period. The resulting gains / losses is recognized in the statement of profit and loss.

c) Under previous GAAP, discounting of provisions was not permitted and provisions were measured at the best estimate of the expenditure required to settle the obligation at the balance sheet date without considering the effect of discounting. Under Ind AS, provisions are measured at discount amounts, if the effect of time value of money is material. The Company has discounted the provision for warranty to present value at reporting dates. Consequently, the unwinding of discount has been recognized as a finance cost.

d) Under previous GAAP, actuarial gains and losses related to the defined benefit schemes for gratuity were recognized in statement of profit and loss. Under Ind AS, actuarial gains and losses and the return on plan assets, excluding amounts included in the net interest expense on the defined benefit liability are recognized in other comprehensive income instead of profit and loss. Consequently, the tax effect of the same has also been recognized in other comprehensive income instead of statement of profit and loss.

e) Under previous GAAP, all the lands were presented as fixed assets. Under Ind AS, the Company has reclassified lands given on operating lease and the lands held for a currently undetermined future use as investment property. Such reclassification has resulted in decrease in the value of property, plant and equipment by Rs. 11 lacs as at 01 April 2016 and 31 March 2017 and a corresponding increase in the value under Investment property as at respective dates.

f) Under previous GAAP, leasehold lands were presented as fixed assets and depreciated over the period of lease. Under Ind AS, such properties have been classified as Prepaid Lease rent (refer note 9 ''Other assets'') and have been amortized over the period of the lease. This has resulted in decrease in net book value of property, plant and equipment by Rs. 18 lacs as at 01 April 2016 and by Rs. 14 lacs as at 31 March 2017 and a corresponding increase in other assets by Rs. 18 lacs as at 01 April 2016 and by Rs. 14 lacs as at 31 March 2017.

Such reclassification has resulted in decrease in depreciation and amortization expense by Rs. 4 lacs for the year ended 31 March 2017 and a corresponding increase in other expenses by Rs. 4 lacs but does not affect profit before tax and profit for the year ended 31 March 2017.

g) Under previous GAAP, grants received from the Government authorities with reference to investments under investment subsidy schemes and no repayment were ordinarily expected in respect thereof were treated as capital reserve. Under Ind AS, grants received from Government authorities are required to be recognized in the statement of profit and loss over the life of the asset. Accordingly, capital reserve amounting to Rs 25 lacs received as a part of investment subsidy in earlier years was recognized as retained earnings. However, there was no change in the equity as at 01 April 2016 and 31 March 2017.

2. The standalone financial statements were approved by the Board of Directors on 29 May 2018.

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Mar 31, 2017

1. Dues to Micro, Small and Medium Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2017 has been made in the financial statements based on information received and available with the Company. A sum of Rs. 475 lacs is payable to Micro and Small Enterprises as at 31 March 2017 (31 March 2016 Rs. 283 lacs). Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

2. Employee benefits

(a) Gratuity and leave encashment

The Company operates a defined benefit scheme for gratuity for which a separate fund is maintained and other long-term benefit plan like leave encashment which is managed through an insurance company. Annual actuarial valuations are carried out by independent actuaries using the Projected Unit Credit Method.

It is not practicable for the Company to estimate the closure of these cases and the consequential timings of cash flows, if any, in respect of the above.

(#) The Company obtained a bank guarantee of Rs. 16 lacs in connection with the execution of a civil contract awarded by the State Health Department, Government (Govt.) of West Bengal. Following a dispute, the State Health Department, Govt. of West Bengal invoked the said Bank Guarantees whereupon the Company challenged such invocation by way of a writ petition before the Hon''ble Calcutta High Court. The Hon''ble Calcutta High Court allowed an interim order of injunction dated 22 May 2003 restraining the State Health Department not to give any effect to the invocation of the guarantee till further order with the condition that the guarantee shall be renewed from time to time. The bank guarantee expired and has not been renewed since the case has been dismissed by the Hon''ble Calcutta High Court. The amount has been included in Claims against the Company not acknowledged as debts as at 31 March 2017 and 31 March 2016.

(*) The Hon''ble Delhi High Court by its order dated 10 September 2015 set aside the order of Policy Relaxation Committee (PRC) with liberty to the petitioner to file a representation before the PRC. The respondents were directed to pass a reasoned order after giving the opportunity of hearing. The matter was heard by PRC and PRC by its order dated 13 October 2015 rejected the prayer of petitioner. Being aggrieved by PRC''s order the company filed writ application before Division Bench of Delhi High Court. After prolonged hearing the bench by its order dated 03 April 2017 allowed the writ petition and set aside the order of PRC and directed PRC interalia to reconsider its order dated 13 October 2015 in the light of observation made by the Division Bench.

3. Segment reporting- Information pursuant to Primary Business segment

The Company is primarily engaged in business of home appliances and engineering components. Accordingly the Company considers the above business segment as the primary segment. Segment revenue, segment result, segment asset and segment liabilities include the respective amount identifiable to each of the segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallocable corporate cost and grouped as "Unallocated". Assets and liabilities that cannot be allocated between the segments are shown as unallocable corporate assets and liabilities and are grouped as "Unallocated".

There is no geographical segment identified by the Company.

4. Related party transactions

The Company has the following related parties in accordance with Accounting Standard 18 "Related Party Disclosures".

Investor Company : IFB Automotive Private Limited

Subsidiary Company : Trishan Metals Private Limited (w.e.f. 11 July 2016)

Companies that have a IFB Agro Industries Limited, Travel Systems Limited, Thai Automotive and

member(s) of KMP in Appliances Limited, Global Automotive and Appliances Limited, IFB Global

common : Limited

Company over which a KMP IFB Appliances Limited is able to exercise significant influence :

Enterprise over which a Anjali foundation

relative of KMP is able to exercise significant influence :

Key Management Personnel Mr. Bijon Nag, Executive Chairman

^{(KMP) :} Mr. Bikram Nag, Joint Executive Chairman and Managing Director

Mr. Sudam Maitra, Deputy Managing Director Mr. Prabir Chatterjee, Director and CFO Mr. A K Nag, President

Mr. Rahul Choudhary, Vice President, Corporate affairs and banking

Mr. Rajshankar Ray, CEO, Home Appliances Division

Mr. A.S. Negi, National Service Head , Home Appliances Division

Mr. Jayanta Chanda , Service Accounts Head, Home Appliance Division

Mr. Partha Sen, CEO, Engineering Division

Mr. K.R.Krishna Prasad, CEO, Bangalore Engineering Factory.

Mr. B.M. Shetye, Vice President, Sustainability, Home Appliances Division

Mr. G. Ray Chowdhury, Company Secretary

Mr. Susanta Das, Head of Personnel and Administration

Mr. Uma Shankar Ghosh Dastidar, Head - Taxation

Mr. Arup Das, Head Marketing , Engineering Division

Mr. Diptanil Saha, GM, Corporate Affairs

Mr. Sukhdev Nag, Business Head, Home Appliances Division, South

Mr. T.R. Ramesh, Business Head, Home Appliances Division, East

Mr. Ranjan Mohan Mathur, , Business Head, Home Appliances Division, North

Mr. Soumitra Goswami, GM, Accounts and Finance

Mr. Ashok Hazra, AGM - Internal Audit

Mr. R. Anand, Head, Motor Division

The above figures does not include cash balance held in foreign currency.

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

For and on behalf of the Board of Directors of IFB Industries Limited

Joint Executive Chairman and Managing Director Bikram Nag

Director Dr. Rathindra Nath Mitra

Director and Chief Financial Officer Prabir Chatterjee

Company Secretary G. Ray Chowdhury

Kolkata 26 May 2017

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Mar 31, 2016

1. Estate, Taluka Salcete, District South Goa and registration sub district ILHAS in the state of Goa containing by admeasuring 48,695 square meters or thereabout.

(&) For sanction of capex letter of credit amounting to Rs 1,000 lacs by Standard Chartered Bank, following charge have been created:

First charge on existing movable fixed assets of Goa (Verna) plant (except exclusive charge to term lenders) of the company including without limitations its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables, etc. stored or to be stored at the company''s godown or premises situated at Plot no L-1, Verna Electronic City, Verna Industrial Estate, Goa - 403 722 or wherever else the same may be.

(A) For sanction of working capital facility amounting to Rs. 9,000 lacs by Standard Chartered Bank, following charge have been created:

(i) First charge on all current assets, both present and future.

(ii) First charge on existing movable fixed assets of Goa (Verna) plant (except exclusive charge to term lenders).

(iii) Second charge on the leasehold land and building of Goa (Verna) unit on all that piece and parcel of non-agricultural land bearing at No. L1 situated within the village panchayat of Nagoa, Verna Plateau, Verna Industrial Estate, Taluka Salcete, District South Goa and registration sub district lLHAS in the state of Goa containing by admeasuring 48,695 square meters or thereabout.

(*) For sanction of credit facilities amounting to Rs. 3,500 lacs by DBS Bank Ltd., following charge have been created :

(i) Hypothecation by way of first pari passu and floating charge over goods being finished goods, semi-finished goods, stocks of raw-materials, work-in-process located at various factories / warehouses / godowns of the company and whether in transit or lying at any other place and hypothecation by way of first pari passu and floating charge over the company''s present and future book debts, outstanding monies receivables, claims, bills, contracts, engagements, securities, investments, rights and assets.

(ii) Hypothecation by way of exclusive charge over all present and future movable fixed assets of the engineering division of the Company including without limitation its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc. stored or to be stored at Company''s godowns or premises situated at 14, Taratolla Road, Kolkata and 16/17, Visveswaraiah Industrial Estate, Whitefield Road, Bangalore - 560048 (Engineering Division) or wherever else the same may be.

2. Leases

The Company is obligated under cancellable leases for residential, office premises, warehouses, etc. Total rental expense under cancellable operating lease amounted to Rs. 1,305 Lacs (31 March 2015 : Rs. 898 Lacs).

3. Changes in Accounting Policy and Accounting Estimates

Pursuant to the notification of Schedule II to the Companies Act, 2013, with effect from 1 April 2014, the Company had changed the policy of providing depreciation of buildings from written down value (WDV) method to straight line method (SLM) thereby resulting in a surplus of Rs. 844 Lacs for the year ended 31 March 2015.

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013 and its subsequent amendment by Ministry of Corporate Affairs, the Company charged off the carrying value of assets net of residual value, where the remaining useful life of the asset was determined to be nil as on 1 April 2014 to the Statement of Profit and Loss. Thereby for such assets, the Company has charged an amount of Rs. 1,196 Lacs as depreciation in the Statement of Profit and Loss for the year ended 31 March 2015.

As a result of change in estimated useful life as prescribed in Schedule II of the Companies Act, 2013, the depreciation charge for the year ended 31 March 2015 is higher by Rs. 1,496 Lacs.

4. Dues to Micro and Small Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated 26 August 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2016 has been made in the financial statements based on information received and available with the Company. A sum of Rs. 283 lacs is payable to Micro and Small Enterprises as at 31 March 2016 (31 March 2015 : Rs. 398 lacs). Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

5. Employee benefits

(a) Gratuity and leave encashment

The employees'' gratuity fund scheme, determined as post-employment benefit, is managed through Insurance Companies under a defined benefit plan. The present value of obligation is determined based on an actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for unfunded leave encashment determined as other long-term benefit plan is recognized in the same manner as gratuity.

(b) Provident Fund, Superannuation Fund and other defined contribution schemes:

The company contributed Rs. 944 Lacs (31 March 2015 : Rs. 785 Lacs) to defined contribution scheme (Provident Fund, superannuation fund and others) during the year ended 31 March 2016.

6. Disclosure requirement for Derivatives Instruments

The Company uses foreign currency hedges to manage its risks associated with foreign currency fluctuations relating to certain existing foreign currency payables. The Company does not use derivative contracts for trading or speculative purposes.

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

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Mar 31, 2015

1. Rights, preferences and restrictions attached to equity shares

The Company has a single class of equity shares. Accordingly, all equity shares rank equally with regard to dividends and share in the Company's residual assets. The equity shares are entitled to receive dividend as declared from time to time. The voting rights of an equity shareholder on a poll (not on show of hands) are in proportion to its share of the paid-up equity capital of the Company.

Voting rights cannot be exercised in respect of shares on which any call or other sums presently payable have not been paid.

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

(i) Exclusive charge on moveable fixed assets financed by the bank.

(ii) First charge on existing movable fixed assets of Goa (Verna) plant (except exclusive charge to term lenders).

(iii) First and exclusive charge on the leasehold land and building of Goa (Verna) unit on all that piece and parcel of non- agricultural land bearing at No. LI situated within the village Panchayat of Nagoa, Verna Plateau, Verna Industrial Estate,

Taluka Salcete, District South Goa and registration sub district ILHAS in the state of Goa containing by admeasuring 48695 square meters or thereabout and bounded as follows: On or towards the north: proposed 30 meters wide road, on or towards the south : open space reserved for gardening, on or towards the east: proposed road of 25 meters wide, on or towards the west: proposed road of 20 meters wide together with all buildings and structures standing thereon or to be erected hereafter and the plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future.

(*) For sanction of working capital facility amounting to Rs. 9,000 lacs by Standard Chartered Bank, following securities have been created:

(i) First charge on all current assets, both present and future.

(ii) First charge on existing movable fixed assets of Goa (Verna) plant (except exclusive charge to term lenders).

(iii) Second charge on the leasehold land and building of Goa (Verna) unit on all that piece and parcel of non-agricultural land bearing at No. LI situated within the village Panchayat of Nagoa, Verna Plateau, Verna Industrial Estate, Taluka Salcete, District South Goa and registration sub district lLHAS in the state of Goa containing by admeasuring 48695 square meters or thereabout and bounded as follows: On or towards the north: proposed 30 meters wide road, on or towards the south: open space reserved for gardening, on or towards the east: proposed road of 25 meters wide, on or towards the west: proposed road of 20 meters wide together with all buildings and structures standing thereon or to be erected hereafter and the plant and machinery attached to the earth or permanently fastened to anything attached to the earth, both present and future.

(*) For sanction of working capital facility amounting to Rs. 3,500 lacs by DBS Bank Ltd., following securities have been created:

(i) Hypothecation by way of first pari passu and floating charge over goods being finished goods, semi-finished goods, stocks of raw-materials, work-in-process located at various factories / warehouses godowns of the company and whether in transit or lying at any other place and hypothecation by way of first pari passu and floating charge over the company's present and future book debts, outstanding monies receivables, claims, bills, contracts, engagements, securities, investments, rights and assets.

(ii) Hypothecation by way of exclusive charge over all present and future movable fixed assets of the engineering division of the Company including without limitation its movable plant and machinery, furniture and fittings, equipment, computer hardware, computer software, machinery spares, tools and accessories and other movables etc. stored or to be stored at Company's godowns or premises situated at 14, Taratolla Road, Kolkata and 16/17, Visveswaraiah Industrial Estate, Whitefield Road, Bangalore - 560048 (Engineering Division) or wherever else the same may be.

2. Leases

The Company is obligated under cancellable leases for residential, office premises, warehouses, etc. Total rental expense under cancellable operating lease amounted to Rs. 898 Lacs (31 March 2014 : Rs. 772 Lacs).

3. Changes in Accounting Policy and accounting estimates

Pursuant to the notification of Schedule II to the Companies Act, 2013, with effect from 1 April 2014, the Company has changed the policy of providing depreciation of buildings from written down value (WDV) melhod to straight line method (SLM) thereby resulting in a surplus of Rs. 844 Lacs for the year ended 31 March 2015.

Pursuant to the transition provisions prescribed in Schedule II to the Companies Act, 2013 and its subsequent amendment by Ministry of Corporate Affairs, the Company has an option to charge off the carrying value of assets net of residual value, where the remaining useful life of the asset was determined to be nil as on 1 April 2014 either to the opening balance of retained earnings or to the Statement of Profit and Loss. Thereby for such assets, the Company has charged an amount of Rs. 1,196 Lacs as depreciation in the Statement of Profit and Loss. If the same is adjusted against the opening balance of retained earnings then the profit before tax for the year would be Rs. 7,123 Lacs and profit after tax would be Rs. 5,763 Lacs.

As a result of all the above stated changes the depreciation charge for the year ended 31 March 2015 is higher by Rs. 1,496 Lacs.

4. Dues to Micro and Small Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an office memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated after filing of the Memorandum in accordance with the 'Micro, Small and Medium Enterprises Development Act, 2006' ('the Act'). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2015 has been made in the financial statements based on information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

5. Employee benefits

(a) Gratuity and leave encashment

The employee's gratuity fund scheme, determined as post-employment benefit, is managed through Insurance Companies under a defined benefit plan. The present value of obligation is determined based on an actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for unfunded leave encashment determined as other long-term benefit plan is recognized in the same manner as gratuity.

I. Percentage of each category of plan assets to the fair value of plan assets as at 31 March 2015

The plan assets of the fund has been invested 100% (previous year 100%) with the schemes of insurance companies.

II. Provident Fund, Superannuation Fund and other defined contribution schemes:

The company contributed Rs. 785 Lacs (31 March 2014 : Rs. 642 Lacs) to defined contribution scheme (Provident Fund, superannuation fund and others) during the year ended 31 March 2015.

6 Contingent Liabilities : Rs. Lacs

31 March 2015 31 March 2014

i) Disputed sales tax matters, excise matters, income tax matters and 1,653 1,564 other matters contested in appeals. (These disputes mostly relate to arbitrary disallowances of claims of the Company under various state laws, which are under appeal. The management is of the view that these demands are not sustainable in law and is hopeful of succeeding in appeals.)

ii) Other claims against the Company not acknowledged as debts (#) 16 39

iii) Custom duty and interest obligation for advance licenses (*) 681 -

(#) The Company obtained a bank guarantee of Rs. 16 lacs in connection with the execution of a civil contract awarded by the State Health Department, Government (Govt.) of West Bengal. Following a dispute, the State Health Department, Govt. of West Bengal invoked the said Bank Guarantees whereupon the Company challenged such invocation by way of a writ petition before the Hon'ble Calcutta High Court. The Hon'ble High Court allowed an interim order of injunction dated 22 May 2003 restraining the State Health Department not to give any effect to the invocation of the guarantee till further order with the condition that the guarantee shall be renewed from time to time. The bank guarantee expired and has not been renewed since the case has been dismissed by the Hon'ble Calcutta High Court. The amount has been included in Claims against the Company not acknowledged as debts as at 31 March 2015 and 31 March 2014.

(*) Pursuant to direction from Directorate General of Foreign Trade (DGFT) dated 24 February 2010, the period for fulfilment of export obligations against 11 advance licenses was extended by 5 years with effect from 29 September 2009 which is remaining outstanding as at 31 March 2015. The Company has filed an application on 9 September 2014 before the 'Policy Interpretation Committee', DGFT to clarify the ambiguity regarding the date of fulfilment of export obligation. Simultaneously the Company has also applied before the 'Policy Relaxation Committee', DGFT, on 31 July 2014 for clubbing of the referred advance licenses. The Company expects a favourable order from DGFT.

7. Related party transactions

The Company has the following related parties in accordance with Accounting Standard 18 "Related Party Disclosures".

Investor Company : IFB Automotive Private Limited.

Key Management Personnel (KMP) : Mr. Bijon Nag, Executive Chairman

Mr. Bikram Nag, joint Executive Chairman and Managing Director

Mr. Sudam Maitra, Deputy Managing Director

Mr. Prabir Chatterjee, Director and CFO

Mr. Gautam Dasgupta, Mentor

Mr. A K Nag, President

Mr. Rajshankar Ray, CEO, Home Appliances Division

Mr. A.S. Negl, National Service Head, Home Appliances Division

Mr. Jayanta Chanda, Service Accounts Head, Home Appliance Division

Mr. Govindaraj Collegal, Head, Goafactory

Mr. Partha Sen, CEO, Kolkata Engineering Factory

Mr. K.R.Krishna Prasad, CEO, Bangalore Engineering Factory

Mr. B.M. Shetye, Vice President, R&D, Home Appliances Division

Mr. G. Ray Chowdhury, Company Secretary

Mr. Susanta Das, Head of Personnel and Administration

Mr. Uma Shankar Ghosh Dastidar, Head - Taxation

Mr. Arup Das, Head Marketing, Engineering Division

Mr. Diptanil Saha, GM, Corporate Affairs

Mr. Sukhdev Nag, Regional Manager, Home Appliances Division, South

Mr.T.R. Ramesh, Regional Manager, Home Appliances Division, East

Mr. Ranjan Mohan Mathur, Regional Manager, North

Mr. Soumitra Goswami, DGM, Accounts and Finance

Mr. Ashok Hazra, AGM - Accounts, Bangalore Engineering Factory

Mr. R. Anand, Head, Motor Division

Companies that have a member(s) IFB Agro Industries Limited, of KMP in common : Travel Systems Limited, Thai Automotive and Appliances Limited, Global Automotive and Appliances Limited, IFB Global Limited.

Company over which a KMP is able IFB Appliances Limited. to exercise significant Influence :

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

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Mar 31, 2013

1. Leases

The Company is obligated under cancellable leases for residential, ofce premises, warehouses, etc. Total rental expense under cancellable operating lease amounted to Rs. 740 Lacs (31 March 2012: Rs. 635 Lacs).

2. Dues to Micro, Small and Medium Enterprises

The Ministry of Micro, Small and Medium Enterprises has issued an ofce memorandum dated August 26, 2008 which recommends that the Micro and Small Enterprises should mention in their correspondence with its customers the Entrepreneurs Memorandum Number as allocated afer fling of the Memorandum in accordance with the ''Micro, Small and Medium Enterprises Development Act, 2006'' (''the Act''). Accordingly, the disclosure in respect of the amounts payable to such enterprises as at 31 March 2013 has been made in the fnancial statements based on information received and available with the Company. Further in view of the Management, the impact of interest, if any, that may be payable in accordance with the provisions of the Act is not expected to be material. The Company has not received any claim for interest from any supplier as at the balance sheet date.

3. Employee benefts

(a) Gratuity and leave encashment

The employee''s gratuity fund scheme, determined as post-employment beneft, is managed through Insurance Companies under a defned beneft plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee beneft entitlement and measures each unit separately to build up the fnal obligation. The obligation for unfunded leave encashment determined as other long term beneft plan is recognized in the same manner as gratuity.

The following tables sets out the status of the gratuity plans and leave encashment under AS 15 - Employee benefts

4. Commitments and contingent liabilities:

Rs. Lacs 31 March 2013 31 March 2012

i) Outstanding capital commitments for tangible assets 3,037 2,258

ii) Outstanding capital commitments for intangible assets 893 17

iii) Disputed sales tax maters, excise maters, income tax maters and other 1,445 689 maters contested in appeals

(These disputes mostly relate to arbitrary disallowances of claims of the Company under various state laws, which are under appeal. The management is of the view that these demands are not sustainable in law and is hopeful of succeeding in appeals.)

iv) Other claims against the Company not acknowledged as debts (#) 116 76

v) Corporate guarantee to bank on behalf of associate company - 100

(#) The Company obtained a bank guarantee of Rs. 16 lacs in connection with execution of a civil contract awarded by State Health Department, Government (Govt.) of West Bengal. Following a dispute, the State Health Department, Govt. of West Bengal invoked the said Bank Guarantees whereupon the Company challenged such invocation by way of a writ petition before the Hon''ble Calcuta High Court. The Hon''ble High Court allowed an interim order of injunction dated 22 May 2003 restraining the respondent not to give any efect to the invocation of the guarantee till further order with the condition that the guarantee shall be renewed from time to time. The bank guarantee expired and has not been renewed since the case has been dismissed by the Hon''ble Calcuta High Court. The amount has been included in Claims against the Company not acknowledged as debts as at 31 March 2013 and 31 March 2012.

5. Related party transactions

The Company has the following related parties in accordance with Accounting Standard 18 "Related Party Disclosures" notifed under Section 211 (3C) of the Companies Act, 1956. Investor Company: IFB Automotive Private Limited

Associate Company: IFB Agro Industries Limited, Travel Systems Limited, Thai Automotive and

Appliances Limited, Global Automotive and Appliances Limited, IFB Appliances Limited

Key Management Personnel: Mr. Bion Nag, Executive Chairman

Mr. Bikram Nag, Joint Executive Chairman and Managing Director

Mr. Prabir Chaterjee, Additional Director and CFO

Mr. Dipak Mitra, President - Legal

Mr. A. K. Nag, Sr. Vice President, Corporate Afairs

Mr. Gautam Dasgupta, Mentor

Mr. Rajshankar Ray, CEO, Home Appliances

Mr. A.S. Negi, National Service Head, Home Appliances

Mr. Partha Sen, CEO, Kolkata Engineering Factory

Mr. K.R.Krishna Prasad, CEO, Bangalore Engineering Factory

Mr. B.M. Shetye, Vice President, R & D, Home Appliances

Mr. Dipak Sen, Vice President, Corporate Afairs & Strategies

Mr. G. Ray Chowdhury Company Secretary

Mr. Susanta Das, Head of Personnel and Administration

Mr. Uma Shankar Ghosh Dastidar, Head - Taxation

Mr. Sukhdev Nag, Product Head, Microwave Ovens, Dishwasher

Mr. Arup Das, Head Marketing , Engineering

Mr. Diptanil Saha, DGM, Corporate Afairs

Mr. T.R. Ramesh, Regional Manager, East

Mr. Ranjan Mohan Mathur, Regional Manager, North

Mr. Jayanta Chanda, Finance Head, Goa Factory

Mr. Soumitra Goswami, DGM, Accounts and Finance

Mr. Ashok Hazra, AGM - Accounts, Bangalore Engineering

Mr. Ritesh Agarwal, Deputy Company Secretary & Head Banking

6. Disclosure requirement for Derivatives Instruments

The Company uses foreign currency hedges to manage its risks associated with foreign currency fuctuations relating to certain existing foreign currency payables. The Company does not use derivative contracts for trading or speculative purposes.

7. The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under Section 92-92F and Specifed Domestic Transactions'' (SDT) under Section 92BA of the Income Tax Act 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the international transactions and specifed domestic transaction entered into with the associated enterprises during the fnancial year. The management is of the opinion that its international transactions with associated enterprises are at arm''s length so that the aforesaid legislation will not have any impact on the fnancial statements, particularly on the amount of tax expense and that of provision for taxation to be recognised.

8. Previous year''s fgures have been regrouped/ reclassifed wherever necessary to correspond with the current year''s classifcation.

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Mar 31, 2012

A. Rights, preferences and restrictions attached to equity shares

The company has only class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share other than the partly paid shares which have been forfeited.

In the event of liquidation of the company, the holders of equity shares will be entitled to receive remaining assets of the company.

The distribution will be in proportion to the number of equity shares held by the shareholders.

b. Shares issued under Employees Stock Purchase Scheme

During the year the Company has issued 61,900 (31 March 2011: 701,850) fully paid equity shares of Rs. 10 each to its employees under IFB Industries Limited - Employees Stock Purchase Scheme 2008 at premium of Rs. 5 per share.

Provision for warranty

The Company warrants that their products will perform in all material respects in accordance with the Company's standard specifications in effect at the time of delivery of the products to the customers for the warranty period. Accordingly based on specific warranties, claims and claim history the Company provides for warranty claims. The movements in the provision for warranty cost is as follows :

Note : (a) R and D denotes Research and Development

(b) For sanction of import letter of credit amounting to Rs 3,000 lacs for import of capital goods by Standard Chartered Bank, following securities have been created :

(i) First charge on all present and future movable fixed assets of the Company situated at Goa Plant (except exclusive charge to term lenders).

(ii) Exclusive charge on plant & machinery financed by the Bank including movable plant & machinery, furniture & fittings, equipments, computer hardware & software, machinery spares tools, accessories and other movables.

(iii) First and exclusive charge over company's immovable property i.e.., non-agricultural land bearing at No. LI SIT within the village panchayat of Nago, Verna Plateau, Verna Industrial Estate, Taluka Salcete, District South Goa (Goa) admeasuring 48695 square meters together with all buildings and structures thereon or to be thereon and all plant and machinery installed thereon or to be thereon.

(c) For sanction of import letter of credit amounting to Rs 3,000 lacs for raw materials and other trade related goods by Standard Chartered Bank, following securities have been created:

(i) First charge on all current assets, both present and future.

(ii) Second charge on existing movable fixed assets of Goa unit (except exclusive charge to term lenders) and company's immovable properties i.e., non-agricultural land bearing at No. LI SIT within the village panchayat of Nago, Verna Plateau, Verna Industrial Estate, Taluka Salcete, District South Goa (Goa) admeasuring 48695 square meters together with all buildings and structures thereon or to be thereon and all plant and machinery installed thereon or to be thereon.

(*) Includes semi finished process components and semi finished tools amounting to Rs. 533 lacs (31 March, 2011 : Rs. 672 Lacs) and semi finished motors amounting to Rs. 69 lacs (31 March, 2011: Rs. 119 Lacs).

The company has entered into a mutual compromise settlement in respect of one of the past claims on the company, pertaining to a business discontinued since year 1999-2000. As per the terms of settlement, the company has paid a sum of Rs. 150 lacs (31 March 2011: Nil).

This amount has been recognized as an exceptional item for the year.

1. Impairment

The Company has reviewed potential generation of economic benefits from its cash generating units and concluded that there are no further impairments during the year.

2. Dues to Micro, Small and Medium Enterprises

Information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

3. Employee Benefits

(a) Gratuity and Leave Encashment

The employee's gratuity fund scheme, determined as post employment benefit, is managed through Insurance Companies under a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for unfunded leave encashment determined as other long term benefit plan is recognized in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

VI. Percentage of each category of plan assets to the fair value of plan assets as at March 31,2012

The plan assets of the trust has been invested 100% (previous year 100%) with the schemes of insurance companies

(b) Provident Fund and Superannuation Fund:

In addition to the above benefits, employee of the company receives benefits from provident fund and superannuation fund, a defined contribution plan. The employee and employer each make monthly contribution to Government's Provident Fund equal to 12% of the covered employee's eligible salary. The company contributed Rs. 467 lacs (Previous year Rs. 352 lacs) to defined contribution scheme during the year ended March 31, 2012.

4. Commitments and contingencies : Rs.' lacs

March 31,2012 March 31, 2011

i) Outstanding capital commitments for tangible assets 2,258 1,276

ii) Outstanding capital commitments for intangible assets 17 18

iii) Disputed sales tax matters, excise duties, income tax contested in 689 484 appeals (These disputes mostly relate to arbitrary disallowances of

claims of the Company under various state laws, which are under appeal. The management is of the view that these demands are not sustainable in law and is hopeful of succeeding in appeals.)

iv) Indemnity bonds executed in favour of excise and customs 150 100

v) Guarantees given by the bankers on behalf of the Company 118 61

vi) Letter of credits 226 538

vii) Corporate Guarantee for Advance licenses 603 1,498

viii) Claims against the Company not acknowledged as debts (#)(@) 76 470

ix) Corporate Guarantee to bank on behalf of Associate Company 100 100

(#) The Company obtained a bank guarantee of Rs. 16 lacs in connection with execution of a civil contract awarded by State Health Department, Government (Govt.) of West Bengal. Following a dispute the Health Department, Govt. of West Bengal invoked the said Bank Guarantees whereupon the Company challenged such invocation by way of a writ petition before the Hon'ble Calcutta High Court. The Hon'ble High Court was pleased to allow interim order of injunction dated May 22, 2003 restraining the respondent not to give any effect to the invocation of guarantees till further order with the condition that the guarantee shall be renewed from time to time. The bank guarantee expired and has not been renewed since the case has been dismissed by the Hon'ble Calcutta High Court. The amount has been included in Claims against the Company not acknowledged as debts as at 31st March 2012 and 31st March 2011.

(@) As at 31st March 2011, claims against the company not acknowledged as debts included a claim relating to material rejection amounting to Rs. 454 lacs. During the year the company has entered into a mutual compromise settlement wherein the Company has settled and paid an amount of Rs. 150 lacs as settlement amount. The same has been recognized as an exceptional item for the year ended 31st March 2012.

(figures for the previous year, March 31, 2011, have been shown below each item)

Segment revenue, segment result, segment asset and segment liabilities include the respective amount identifiable to each of the segments as also amounts allocated on reasonable basis. The expenses, which are not directly relatable to the business segment, are shown as unallowable corporate cost and grouped as "Unallocated". Assets and liabilities that cannot be allocated between the segments are shown as unallowable corporate assets and liabilities and are grouped as "Unallocated".

5. Disclosure requirement for Derivatives Instruments

The Company uses foreign currency hedges to manage its risks associated with foreign currency fluctuations relating to certain existing foreign currency payables. The Company does not use derivative contracts for trading or speculative purposes.

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

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Mar 31, 2011

1. Share Capital

During the year the Company has issued 701,850 (previous year 891,599) fully paid equity shares of Rs. 10 each to its employees under IFB Industries Limited - Employees Stock Purchase Scheme 2008 of which 701,850 (previous year 812,199) shares were issued at premium of Rs 5 per share.

2. Impairment

The Company has reviewed potential generation of economic benefits from its cash generating units and concluded that there is no further impairments during the year.

3. Dues to Micro, Small and Medium Enterprises

There are no Micro, Small and Medium Enterprises, to whom the Companies owes dues, which are outstanding for more than 45 days as at March 31, 2011 except for the details mentioned below. Information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Employee Benefits

(a) Gratuity and Leave Encashment

The employee's gratuity fund scheme, determined as post employment benefit, is managed through Insurance Companies under a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for unfunded leave encashment determined as other long term benefit plan is recognized in the same manner as gratuity.

VI. Percentage of each category of plan assets to their fair value of plan assets as at March 31,2011

The plan assets of the trust has been invested 100% (previous year 100%) with the schemes of insurance companies.

(b) Provident Fund and Superannuation Fund :

In addition to the above benefits, employee of the company receives benefits from provident fund and superannuation fund, a defined contribution plan. The employee and employer each make monthly contribution to Government's Provident Fund equal to 12% of the covered employee's eligible salary. The company contributed Rs. 35,220 thousand (Previous year Rs. 32,134 thousand) to defined contribution scheme during the year ended March 31, 2011.

5. Commitments and contingencies:

March 31,2011 March 31, 2010 (Rs.'000) (Rs.'000)

i) Outstanding capital commitments 129,366 302,479

ii) Disputed sales tax matters, excise duties contested in appeals 48,421 46,608

(These disputes mostly relate to arbitrary disallowances of claims of the Company under various state laws, which are under appeal. The management is of the view that these demands are not sustainable in law and is hopeful of succeeding in appeals.)

iii) Indemnity bonds executed in favour of excise and customs 10,000

iv) Guarantees given by the bankers on behalf of the CompanyO(#) 6,780 21,019

v) Letter of credits 53,772

vi) Corporate Guarantee for Advance licenses 149,844 149,844

vii) Claims against the Company not acknowledged as debts (#)(@) 47,004 45,958

viii) Corporate Guarantee to bank on behalf of Associate Company 10,000

6 At 31st March 2010, bank guarantees includes four bank guarantees of Rs 13,734 thousand in favour of DGFT in respect of EPCG licenses. Such Bank guarantees were invoked by the beneficiaries and the company has disputed the claim by way of writ petition filed before the Calcutta High Court. The Hon'ble High Court had earlier granted an order of status quo on September 18, 2003 and since extended from time to time. In the meantime, the said guarantees expired on September 30, 2003.Thereafter the Hon'ble High Court by an Order dated May 11, 2010 directed the company to renew the said guarantees The said order dated May 11, 2010 was modified by a further order dated May 19, 2010 directing the company to deposit the aggregate amount of guarantees in the form of fixed deposits in favour of The Registrar/Calcutta High Court, original Side to secure possible claim of DGFT in place of old bank guarantees. The company has made the fixed deposit pursuant to the said order amounting to Rs 13,800 thousands which have been lodged by the Company's banker Standard Chartered Bank with the DGFT.

At 31st March 2010, the Company had an outstanding provision of Rs 81,880 thousands for customs duty payable to DGFT due to non- fulfillment of export obligations under Advance License and EPCG Schemes. Pursuant to direction from the DGFT dated 24th February 2010 the period for fulfillment of export obligations against 11 Advance Licenses was extended by 5 years with effect from 29th September 2009. Moreover vide direction from DGFT dated 23rd February 2011, the Company got an extension for fulfillment of export obligations under 5 EPCG Licenses for a period of 12 years from 30th January 2009 to 29th January 2021. Consequent to such directions from DGFT, the Company has written back the provision of Rs 81,880 thousand and recognized the same as Other Income for the year ended 31st March 2011.

(#) At 31st March 2010, Guarantees given by the bankers on behalf of the Company included a bank guarantee of Rs 1,563 thousand obtained in connection with execution of a civil contract awarded by State Health Department, Govt, of West Bengal. Following a dispute the Health Department, Govt, of West Bengal invoked the said Bank Guarantees whereupon, the Company challenged such invocation by way of a writ petition before the Hon'ble Calcutta High Court. The Hon'ble High Court was pleased to allow interim order of injunction dated May 22, 2003 restraining the respondent not to give any effect to the invocation of guarantees till further order with the condition that the guarantee shall be renewed from time to time. The bank guarantee expired and has not been renewed since the case has been dismissed by the Hon'ble Calcutta High Court. The amount has been included in Claims against the Company not acknowledged as debts as at 31st March 2011.

(@) Includes claim relating to material rejection amounting to Rs. 45,441 thousands (Previous year Rs. 45,958 thousand). The management is of the opinion that the claim is not tenable.

7. Previous year's figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2010

1. Share Capital

During the year the Company has issued 5,000,000 fully paid equity shares of Rs. 10 each at par on preferential basis to the promoters of the Company as per the order dated September 11, 2009 of the Board for Financial Reconstruction (BIFR) under Sick Industrial Companies (Special Provision) Act 1985, as amended (SICA). The Company has also issued 891,599 fully paid equity shares of Rs.10 each to its employees under IFB Industries Limited - Employees Stock Purchase Scheme 2008 of which 812,199 shares were issued at premium of Rs. 5 per share.

The Company has redeemed 16,000,000 5% cumulative redeemable preference shares of Rs. 10 each out of profits of the Company and consequently a sum of Rs. 160,000 thousand equal to the nominal amount of shares redeemed, has been transferred to Capital Redemption Reserve Account.

2. Impairment

The Company has reviewed potential generation of economic benefits from its cash generating units and concluded that there is no further impairments during the year.

3. Dues to Micro, Small and Medium Enterprises

There are no Micro, Small and Medium Enterprises, to whom the Companies owes dues, which are outstanding for more than 45 days as at March 31, 2010 except for the details mentioned below. Information as required to be disclosed under the Micro, Small and Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

4. Employee Benefits

(a) Gratuity and Leave Encashment

The employees gratuity fund scheme, determined as post employment benefit, is managed through Insurance Companies under a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for unfunded leave encashment determined as other long term benefit plan is recognized in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

VI. Percentage of each category of plan assets to their fair value of plan assets as at March 31, 2010

The gratuity fund administered and managed by Aviva Life Insurance has invested 35% (previous year 64%) in Government of India Securities, 32% (previous year 22%) in Equities, 20% (previous year 9%) in Corporate Bonds and balance 13% (previous year 5%) in Money market investment.

The Company has not received any break-up of the compositions of investment by category with respect to Gratuity fund administered and managed by Life Insurance Corporation of India and hence disclosure required for compositions of investment for plan assets under Accounting Standard 15 on Employee Benefits have not been given to that extent.

(b) Provident Fund and Superannuation Fund :

In addition to the above benefits, employee of the company receives benefits from provident fund and superannuation fund, a defined contribution plan. The employee and employer each make monthly contribution to Governments Provident Fund equal to 12% of the covered employees eligible salary. The company contributed Rs. 32,134 thousand (Previous year Rs. 27,705 thousand) to defined contribution scheme during the year ended March 31, 2010.

5. Related party transactions

The Company has the following related parties in accordance with Accounting Standard 18 issued by the Institute of Chartered Accountants of India :

Associate Companies:

IFB Agro Industries Limited, Travel Systems Private Limited CPL Projects Limited

Investor Company: IFB Automotive Private Limited

Key Management Personnel:

Mr. Bijon Nag, Executive Chairman

Mr. Bikram Nag, Joint Executive Chairman and Managing Director

Mr. Gautam Dasgupta, President & CEO

Mr. Dipak Mitra, President- Legal

Mr. A K Nag, Sr. Vice President, Corporate Affairs

Mr. S Bhattacharya, Chief Financial Officer

Mr. Indroneel Goho, Vice President - Finance

Mr. B.M. Shetye, Vice President

Mr. P Chatterjee, Vice President - Finance

Mr. Siddhartha Chatterjee, Unit Head Engineering

Mr. G. Ray Chowdhury, Company Secretary

Mr. Rajshankar Ray, Vice president- Sales

Mr. A.S. Negi, Vice President

Mr. B.D. Jung, President R&D

Mr. T.R. Ramesh, Regional Manager West

Mr. Sukhdev Nag, Regional Accountant South

Mr. Jayanta Chanda, Finance Head, Goa Factory

Mr. Ranjan Mohan Mathur, Regional Manager North

Mr. Arup Das, Senior Manager

6. Previous years figures have been regrouped and rearranged wherever necessary.