Notes to Accounts of Jyoti Resins & Adhesives Ltd.

Mar 31, 2024

Note : During the previous year ended 31st March, 2023 the Company has issued equity shares of face value of Rs. 10 each as bonus shares in the proportion of two bonus equity share of face value of Rs. 10 each for every one equity share of face value of Rs. 10 held.

(ii) Details of rights, preferences and restrictions attached to the shares

The company has only one class of equity shares and the holders of these ordinary shares are entitiled to receive dividends as and when declared by the company. All shares rank equally with regard to the company''s residual assets.

Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in

To maintain or adjust the

capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, borrowings, less cash and cash equivalents, excluding discontinued operations.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any borrowing in the current period. All the borrowings have been paid in full in the current period and there is no balance of outstanding borrowing as at 31 March 2024.

No changes were made in the objectives, policies or processes for managing capital during the years ended 31 March 2024.

As company has no Net Debt Gearing ratio is Not Applicable Dividends

The final dividend on shares is recorded as a liability on the date of approval by the shareholders. The Company declares and pays dividends in Indian rupees.

Companies are required to pay / distribute dividend after deducting applicable withholding income taxes.

The Board of Directors, at its meeting on May 28, 2024, recommended a final dividend of Rs. 9 per equity share for the financial year ended March 31,2024. This payment is subject to the approval of shareholders in the Annual General Meeting (AGM) of the Company.

I. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors along with the top management are responsible for developing and monitoring the Company''s risk management policies.

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

The Company''s audit committee oversees how management monitors compliance with the Company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company,

ii. Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its

contractual obligations, and arises principally from the Company''s trade receivables, certain loans and advances and other financial assets.

The carrying amount of financial assets represents the maximum credit exposure The maximum exposure to credit risk for trade and other receivables are as follows:

Trade receivables

The Company has developed guidelines for the management of credit risk from trade receivables. The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer.

28. Financial instruments - Fair value and risk management

Trade receivables

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue, Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.

The Company''s exposure to credit risk for trade receivables by relationship is as follows:

Cash and cash equivalents

The Company held cash and cash equivalents with credit worthy banks and financial institutions as at the reporting dates which has been measured on the 12-month expected loss basis. The credit worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good with low credit risk. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due.

Investments in equity instruments

Investments in equity instruments majorly includes investment in equity shares of Co-operative banks in furtherance of the credit facities taken by Company from these banks. The credit worthiness of such banks are evaluated by the management on an ongoing basis and is considered to be good with low credit risk.

iii. Liquidity risks

lliquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

iv. Market risks

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is not exposed to market risk primarily related to foreign exchange rate risk (currency risk). It however is exposed to interest rate risk. Thus the Company’s exposure to market risk is just a function of borrowing activities as it doesnot have any transactions in foreign currency which leads to currency risk.

(d) There is no provision to be made with respect to any liability incurred by entering into a contractual obligation.

33. Operating segment

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company''s other components and for which discrete financial information is available. The Company’s chief operating decision-maker (CODM) is considered to be the Company’s Managing Director (''MD''). The Company is engaged in the business of Productions of wood adhesives which are widely used in fast moving consumer market on days. Information reported to and evaluated regularly by the CODM for the purposes of resource allocation and assessing performance focuses on the business as a whole and accordingly, in the context of Operating Segment as defined under the Indian Accounting Standard 108 ''Segment Information'', there is no separate reportable segment. Further Company sells its products only in India and hence there is no separate reportable segment in this context.

(I) There are no amounts due to or due from related parties which have been written off/written back during the year. (ii) Remuneration does not include Gratuity and Leave encashment which is computed for the Company as a whole. Additional Regulatory Information

35. The title deeds of all the immovable properties (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee), as disclosed in Note 2(a) on Property, plant and equipment to the financial statements, are held in the name of the Company.

36. There are no proceedings initiated or are pending against the Company for holding any benami property under the Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

37. Willfull Defaulter

(I) The Company has not defaulted in repayment of loans or other borrowings or in the payment of interest thereon to any lender.

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

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

39. The Registration of charge in respect of secured loans filed to ROC beyond the statutory period is NIL.

40. The company does not have any subsidiary. Therefore clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

42. There is no scheme of arrangements approved by the competent authority in terms of section 230 to 237 of the companies Act, 2013 during the year.

43. The Company has not advanced or loaned or invested funds to any other person or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall (I) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

44. The Company has not received any fund from any person or entities, including foreign entities (Funding Party) with the understanding that the company shall (I) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

45. The Company has not received any fund from any person or entities, including foreign entities (Funding Party) with the understanding that the company shall (I) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

46. The Company has not surrendered or disclosed as income or the previously unrecorded income and related assets during the year in the tax assessments which are not recorded in the books of accounts of the company.

47. The Company has not traded or invested in Crypto currency or ^rtual Currency during the financial year.

48. Disclosures under Rule 11(f) of the Company (Audit & Auditors) Rule, 2014 - Dividends

The final dividend on shares is recorded as a liability on the date of approval by the shareholders. The Company declares and pays dividends in Indian rupees.

49. Previous year figures have been recasted/restated wherever necessary including those as required in keeping with revised Schedule III amendments.

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Mar 31, 2023

Provisions and Contingencies

Provisions :

Provisions are recognised when the Companny has a
present obligation (legal or constructive) as a result of a
past event, it is probable that an outflow of resources
embodying economic benefits will be required to settle
the obligation and a reliable estimate can be made of the
amount of the obligation. When the Company expects some
or all of a provision to be reimbursed, for example, under
an insurance contract, the reimbursement is recognised
as a separate asset, but only when the reimbursement
is virtually certain. The expense relating to a provision is
presented in the statement of profit and loss net of any
reimbursement.

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

Contingent Liabilities:

Contingent liabilities are disclosed when there is a possible
obligation arising from past events, the existence of which
will be confirmed only by the occurrence or non occurrence
of one or more uncertain future events not wholly within
the control of the company or a present obligation that
arises from past events where it is either not probable

that an outflow of resources will be required to settle or a
reliable estimate of the amount cannot be made.

Contingent asset:

Contingent Assets is a possible asset that arises from past
events and whose existence will be confirmed only by the
occurrence or non-occurrence of one or more uncertain
future events not wholly within the control of the entity.
Contingent assets are disclosed in the Financial Statements
by way of notes to accounts when an inflow of economic
benefit is probable."

4.23 Empolyees Benefit

(a) Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled wholly
within12 months after the end of the period in which the
employees render the related service are recognized
in respect of employees'' services upto the end of the
reporting period and are measured at the amounts
expected to be paid when the liabilities are settled. The
liabilities are presented as current employee benefit
obligations in the Balance Sheet.

b) Defined Contribution Plan: Monthly contribution to the
provident fund which is under defined contribution
schemes are charged to Statement of Profit & Loss
and deposited with the provident fund authorities on
monthly basis.

c) Defined Benefit Plans: Gratuities to employees are
covered under the employees'' group gratuity schemes
and the premium is paid on the basis of their actuarial
valuation using the projected unit credit method.
Actuarial gain and losses net of deferred taxes arising
from experience adjustments and changes in acturial
assumtions are reccognized in other comprehensive
income in the period in which they arise. Any short falls
in case of premature resignation or termination to the
extent not reimbursed by LIC is being absorbed inthe
year of payment.

d) Termination benefits are charged to the Statement of
Profit and Loss in the year of accrual when the Company
is committed without any possibility of withdrawal of an
offer made to either terminate employment before the
normal retirement date or as a result of an offer made to
encourage volutary retirement.

4.24 Taxes on income

Income tax expense comprises current and deferred tax
expense. Income tax expenses are recognized in statement of
profit and loss, except when they relate to items recognized
in other comprehensive income or directly in equity, in which
case, income tax expenses are also recognized in other
comprehensive income or directly in equity respectively.
Current tax is the tax payable on the taxable profit for the
year, using tax rates enacted or substantively enacted by the

end of reporting period by the governing taxation laws, and
any adjustment to tax payable in respect of previous periods.
Current income tax assets and liabilities are measured at
the amount expected to be recovered from or paid to the
taxation authorities. Management periodically evaluates
positions taken in the tax returns with respect to situations in
which applicable tax regulations are subject to interpretation
and establishes provisions where appropriate. Current year''s
Income Tax Provision is netted off against current year''s
advance tax paid, tax deducted at source receivable and tax
collected at source receivable.

Deferred taxes arising from deductible and taxable temporary
differences between the tax base of assets and liabilities
and their carrying amount in the financial statements are
recognized using substantively enacted tax rates and laws
expected to apply to taxable income in the years in which
the temporary differences are expected to be received or
settled. The deferred tax arising from the initial recognition
of goodwill or an asset or liability in a transaction that is not
a business combination and affects neither accounting nor
taxable profit or loss at the time of the transaction are not
recognized. Deferred tax asset are recognized only to the
extent that it is probable that future taxable profit will be
available against which the deductible temporary differences
can be utilized. The carrying amount of deferred tax assets
is reviewed at each reporting date and reduced to the extent
that it is no longer probable that sufficient taxable profit will
be available to allow all or part of the deferred income tax
assets to be utilized.

Deferred tax assets and liabilities are offset when the
Company has a legally enforceable right to do the same."

4.25 Earning Per Share

(i) Basic earnings per share is computed and disclosed using
the weighted average number of common sharesoutstanding
during the year. Dilutive earning per share is computed and
disclosed using the weighted averagenumber of common
and dilutive common equivalent shares outstanding during
the year, except when the resultswould be anti-dilutive.

(ii) On 19 September 2022, the company allotted 80,00,000
equity shares of face value of H 10 each as bonus shares in
the proportion of two bonus equity share of face value of H 10
for every one equity share of face value of H 10 held as on the
record date, by capitalising an amount of H 8 crores from the
free reserves. The bonus shares were listed on BSE Limited
w.e.f. 22 September 2022.

(iii) The above changes are reflected in the Earnings Per Share
for current year as well as previous year.

4.26 Recent accounting pronouncements

Ministry of Corporate Affairs ("MCA") notifies new standard
or amendments to the existing standards under Companies
(Indian Accounting Standards) Rules as issued from time
to time. On March 31, 2023, MCA amended the Companies

(Indian Accounting Standards) Rules, 2015 by issuing the
Companies (Indian Accounting Standards) Amendment
Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their
material accounting policies rather than their significant
accounting policies. Accounting policy information, together
with other information, is material when it can reasonably be
expected to influence decisions of primary users of general
purpose financial statements. The Company does not expect
this amendment to have any significant impact in its financial
statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred
tax on transactions such as leases and decommissioning
obligations. The amendments narrowed the scope of the
recognition exemption in paragraphs 15 and 24 of Ind AS
12 (recognition exemption) so that it no longer applies to
transactions that, on initial recognition, give rise to equal
taxable and deductible temporary differences. The Company
is evaluating the impact, if any, in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting
Estimates and Errors

The amendments will help entities to distinguish between
accounting policies and accounting estimates. The definition
of a change in accounting estimates has been replaced with a
definition of accounting estimates. Under the new definition,
accounting estimates are "monetary amounts in financial
statements that are subject to measurement uncertainty"
Entities develop accounting estimates if accounting policies
require items in financial statements to be measured in a
way that involves measurement uncertainty. The Company
does not expect this amendment to have any significant
impact in its financial statements.

Ind AS 107 - Financial Instruments - Disclosures

Information about the measurement basis for financial
instruments shall be disclosed as a part of material
accounting policy information. The Company does not
expect this amendment to have any significant impact in
its financial statements. The Company does not expect this
amendment to have any significant impact in its financial
statements"

4.27 Assets held for sale

Sale of business is classified as held for sale, if their carrying
amount is intended to be recovered principally through
sale rather than through continuing use. The condition
for classification as held for sale is met when disposal
business is available for immediate sale and the same is
highly probable of being completed within one year from
the date of classification as held for sale.

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Mar 31, 2018

1 Corporate information

Jyoti Resins and Adhesives Limited (‘The Company’) is a public limited company incorporated and docmiciled in India. The address of its registered office is 405-406, Rajkamal Plaza-B, Opposite Sakar-III, Nr. Samruddhi Building, Ashram road, Income tax, Ahmedabad - 380014, Gujarat, India. The Company is in the business of manufacturing of high grade synthetic resin adhesives with its EURO7000 brand. The Company has a huge plant with the capacity of 1000 tons/month, which is located at Santej, Ahmedabad.

2 Basis of preparation of financial statements

2.1 Basis of Preparation

The Financial Statements are prepared in accordance with Indian Accounting Standards (Ind AS) notified under Section 133 of the Companies Act, 2013 (Act) read with Rule 4A of Companies (Accounts) Second Amendment Rules, 2015, Companies (Indian Accounting Standards) Rules, 2015; and the other relevant provisions of the Act and Rules thereunder. The Financial Statementshavebeenpreparedunder historical cost convention basis except for certain financial assets and financial liabilities which have been measured at fair value.

The Company has adopted IndAS and the adoption was carried out in accordance with IndAS 101, First-Time Adoption of Indian Accounting Standards. The transition was carried out from the Indian Accounting Principles generally accepted in India as prescribed under under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies ( Accounts) Rules 2014 and the relevant provisions of the Companies Act , 2013 (‘the 2013 Act’) / Companies Act 1956 (‘the 1956 Act’) as applicable (Indian GAAP). For all the periods upto 31st March 2017, Company prepared its financial statements in accordance with (Indian GAAP).These financial statements for the year ended 31 March 2018 are the first the Company has prepared in accordance with Ind AS. Refer to note 4 for information on how the Company adopted Ind AS.

Accounting policies have been consistently applied except where a newly-issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in the accounting policy hitherto in use.

The Company’s presentation and functional currency is Indian Rupees (‘) and all values are rounded to the nearest digits.

2.2 Use of estimates

The preparation of the Company’s IndAS financial statements requires management to make informed judgements, reasonable assumptions and estimates that affect the amounts reported in the financial statements and notes thereto. Uncertainty about these could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in the future periods. These assumptions and estimates are reviewed periodically based on the most recently available information. Revisions to accounting estimates are recognized prospectively in the Statement of Profit & Loss in the period in which the estimates are revised and in any future periods affected.

In the assessment of the Company, the most significant effects of use of judgments and/or estimates on the amounts recognized in the financial statements relate to the following areas:

- Useful lives of property, plant & equipment;

- Valuation of inventories;

- Measurement of recoverable amounts of assets / cash-generating units;

- Assets and obligations relating to employee benefits;

- Evaluation of recoverability of deferred tax assets; and

- Provisions and Contingencies.

3 Explanation of transition to Ind AS

As stated in Note 2.1, these are the Company’s first financial statements prepared in accordance with Ind AS. For the year ended 31 March 2017, the Company had prepared its financial statements in accordance with Companies (Accounting Standards) Rules, 2006, notified under Section 133 of the Act and other relevant provisions of the Act (‘previous GAAP’).

The accounting policies set out in Note 2 have been applied in preparing these financial statements for the year ended 31 March 2018 including the comparative information for the year ended 31 March 2017 and the opening Ind AS balance sheet on the date of transition i.e. 1 April 2016.

In preparing its Ind AS balance sheet as at 1 April 2016 and in presenting the comparative information for the year ended 31 March 2017, the Company has adjusted amounts reported previously in financial statements prepared in accordance with previous GAAP. This note explains the principal adjustments made by the Company in restating its financial statements prepared in accordance with previous GAAP, and how the transition from previous GAAP to Ind AS has affected the Company financial position, financial performance and cash flows.

Optional exemptions availed and mandatory exceptions

In preparing these financial statements, the Company has applied the below mentioned optional exemptions and mandatory exceptions.

A. Optional exemptions availed

1. Property plant and equipment

As per Ind AS 101 an entity may elect to:

(i) measure an item of property, plant and equipment at the date of transition at its fair value and use that fair value as its deemed cost at that date

(ii) use a previous GAAP revaluation of an item of property, plant and equipment at or before the date of transition as deemed cost at the date of the revaluation, provided the revaluation was, at the date of the revaluation, broadly comparable to:

- fair value;

- or cost or depreciated cost under Ind AS adjusted to reflect, for example, changes in a general

(iii) use carrying values of property, plant and equipment as on the date of transition to Ind AS (which are measured in accordance with previous GAAP prescribed under Ind AS 101) if there has been no change in its functional currency on the date of transition.

As permitted by Ind AS 101, the Company has elected to continue with the carrying values under previous GAAP for all the items of property, plant and equipment.

B. Mandatory exceptions

1. Estimates

As per Ind AS 101, an entity’s estimates in accordance with Ind AS at the date of transition to Ind AS at the end of the comparative period presented in the entity’s first Ind AS financial statements, as the case may be, should be consistent with estimates made for the same date in accordance with the previous GAAP unless there is objective evidence that those estimates were in error. However, the estimates should be adjusted to reflect any differences in accounting policies.

As per Ind AS 101, where application of Ind AS requires an entity to make certain estimates that were not required under previous GAAP, those estimates should be made to reflect conditions that existed at the date of transition (for preparing opening Ind AS balance sheet) or at the end of the comparative period (for presenting comparative information as per Ind AS).

The Company’s estimates under Ind AS are consistent with the above requirement. Key estimates considered in preparation of the financial statements that were not required under the previous GAAP are listed below:

- Impairment of financial assets based on the expected credit loss model.

- Determination of the discounted value for financial instruments carried at amortised cost.

2. Derecognition of financial assets and liabilities

As per Ind AS 101, an entity should apply the derecognition requirements in Ind AS 109, Financial Instruments, prospectively for transactions occurring on or after the date of transition to Ind AS. However, an entity may apply the derecognition requirements retrospectively from a date chosen by it if the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the derecognition principles of Ind AS 109 prospectively for transactions occuring on or after the date of transition to Ind AS.

3. Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable.

Accordingly, the Company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

Notes to the reconciliation between previous GAAP and IndAS:

(A) Fair value of investments in equity instruments recognized in Statement of profit and loss

Under Ind AS, Investment in equity shares is classified for fair value through profit and loss as it is in the nature of trading. Under previous GAAP, long-term investments are carried at cost less provision for diminution in the value of investment, other than temporary. This difference has resulted in decrease of equity by Rs. Nil as at 31 March 2017 (Rs. 33,354 as at 1 April 2016).

(B) Deferred tax on transitional adjustments

The impact of transition adjustments together with Ind AS mandate of using balance sheet approach (against profit and loss approach in the previous GAAP) for computation of deferred taxes has resulted in charge to the Reserves, on the date of transition, with consequential impact to the Statement of Profit and Loss for the subsequent periods.

Cash flow statement

The transition from previsous GAAP to IndAS has not had a material impact on the statement of cash flows.

Capital management

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

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The Company includes within net debt, borrowings, less cash and cash equivalents, excluding discontinued operations

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

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

Due to non Utilization of CC Limits of Banks gearing ratio has changed drastically in comparision to previsos years. Earnings per share (EPS)

Basic and diluted earnings per share

The calculation of basic earnings per share is based on loss attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding as follows:

Details of security for the secured loans repayable on demand:

1. Working capital loans from Kalupur Commercial Co-operative bank limited is by secured by hypothecation of all stock and book debts.

2. Working capital loan from Ahmedabad Mercantile Co-operative bank limited is primarily secured by way hypothecation of all stock and book debts. Collateral security for the said loan is i) Mortgage of (1) Block No: 873, Mouje Santej, Ta: Kalol, Mehsana (2) 21/A, Trimurthi Bunglow, Thaltej, Ahmedabad (3) Pride Icon, Science City, Ahmedabad. Further it is guranted by by following direcors: (1) Jagdish Patel (2) Utkarsh Patel (3) Jyotika Patel.

3. Secured Loan consists of Car loan taken from Axix Bank

4. FINANCIAL INSTRUMENTS - FAIR VALUE AND RISK MANAGEMENT

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy.

Fair value hierarchy:

Level 1 - Quoted prices (unadjusted) in active market for identical assets or liabillities.

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

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

Determination of fair values

Equity investments : Equity investments traded in an active market determined by reference to their quoted market prices. Other equity investments where quoted prices are not available, fair values are determined by reference to the expected discounted cash flows from the underlying net assets or current market value of net assets.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

a) credit risk (see (C)(ii));

b) liquidity risk (see (C)(iii)); and

c) market risk (see (C)(iv)).

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors along with the top management are responsible for developing and monitoring the Company’s risk management policies.

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

The Company’s audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company,

ii. Credit risk

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s trade receivables, certain loans and advances and other financial assets.

The carrying amount of financial assets represents the maximum credit exposure.

The maximum exposure to credit risk for trade and other receivables are as follows:

Trade receivables

The Company has developed guidelines for the management of credit risk from trade receivables. The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine incurred and expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses Given that the macro economic indicators affecting customers of the Company have not undergone any substantial change, the Company expects the historical trend of minimal credit losses to continue, Further, management believes that the unimpaired amounts that are past due by more than 30 days are still collectible in full, based on historical payment behavior and extensive analysis of customer credit risk.

The Company’s exposure to credit risk for trade receivables by relationship is as follows:

Cash and cash equivalents

The Company held cash and cash equivalents with credit worthy banks and financial institutions as at the reporting dates which has been measured on the 12-month expected loss basis. The credit worthiness of such banks and financial institutions are evaluated by the management on an ongoing basis and is considered to be good with low credit risk. Also, no impairment loss has been recorded in respect of fixed deposits that are with recognised commercial banks and are not past due.

Investments in equity instruments

Investments in equity instruments majorly includes investment in equity shares of Co-operative banks in furtherance of the credit facities taken by Company from these banks. The credit worthiness of such banks are evaluated by the management on an ongoing basis and is considered to be good with low credit risk.

iii. Liquidity risks

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company has current financial assets of Rs. (March 31, 2017: Rs. 402,600,720; April 1, 2016: 21,1747,939), which the management believes is sufficient to meet all its liabilities maturing during the next 12 months amounting to Rs. (March 31, 2017: Rs. 159,452,368; April 1, 2016: Rs. 162,294,947).

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, including contractual interest.

iv. Market risks

Market risk is the risk of loss of future earnings or fair values or future cash flows that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign exchange rates and other market changes that affect market risk sensitive instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables. The Company is not exposed to market risk primarily related to foreign exchange rate risk (currency risk). It however is exposed to interest rate risk. Thus the Company’s exposure to market risk is just a function of borrowing activities as it doesnot have any transactions in foreign currency which leads to currency risk.

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

There are no Micro and Small Enterprises, to whom the Company owes dues as at the Balance Sheet date. The above information has been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

5. Operating segment:

An operating segment is a component of the Company that engages in business activities from which it may earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the Company’s other components and for which discrete financial information is available. The Company’s chief operating decisionmaker (CODM) is considered to be the Company’s Managing Director (‘MD’). The Company is engaged in the business of Productions of wood adhesives which are widely used in fast moving consumer market on days. Information reported to and evaluated regularly by the CODM for the purposes of resource allocation and assessing performance focuses on the business as a whole and accordingly, in the context of Operating Segment as defined under the Indian Accounting Standard 108 ‘Segment Information’, there is no separate reportable segment.

Further Company sells its products only in India and hence there is no separate reportable segment in this context.

Notes:

(i) There are no amounts due to or due from related parties which have been written off / written back during the year.

(ii) Figures in brackets relate to the previous year .

(iii) Remuneration does not include Gratuity and Leave encashment which is computed for the Company as a whole.

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Mar 31, 2015

1. SHARECAPITAL

1.1 The company has only one class of ordinary equity shares and the holders of these ordinary shares are entitiled to receive dividends as and when declared by the company. All shares rank equally with regard to the company's residual assets.

2 : NOTES FORMING PART OF ACCOUNTS FOR THE PERIOD ENDED MARCH 31, 2015.

1. The balances in respect of Sundry Debtors, Current Liabilities and Loans and Advances are subject to confirmations and reconciliations, if any.

2. In the opinion of Board of Directors & Management, the Current Assets, Current Liabilities, Unsecured Loans, Loans and Advances are approximately of the value sated, if realized in the ordinary course of business. The Provisions for depreciation and for all known liabilities are adequate and not in excess of amounts reasonably necessary.

3. In the opinion of Management, the Company is mainly engaged in a single segment of manufacturing & trading of non ferrous metals, therefore there are no separate reportable segments as per Accounting Standard (AS-17) "Segment Reporting".

4. Related Party Transaction :

As per Accounting Standard 18 on "Related Party Disclosures", disclosure of transactions with related parties as defined therein are given below.

List of related parties with whom transactions have taken place and Nature of relationship.

Key Management Personnel ("KMP") :-

* Jagdish N. Patel - Managing Director

* Utkarsh J. Patel - Director

* Jyotika Jagdish Patel - Director

Transactions with Related Parties during the year :

The following transactions were carried out with the Related Parties in the ordinary course of business.

5. Employee Benefits :

a) Defined Benefit Plan :

Liability in respect of present future liability of gratuity has been ascertained and provided in the accounts of Rs. 1175000/- (Previous Year-Rs.900000). The employee's gratuity fund is managed by a trust (Life insurance corporation of India) is a defined benefit plan.

b) Defined Contribution Plan :

The Company has recognized the following amount in Statement of Profit and Loss which is included under contribution to funds.

6. Expenditure incurred on employees who were in receipt of not less than Rs.60,00,000/- per year if employed throughout the year and Rs.5,00,000/- per month if employed for a part of a month is NIL.

7. The Company has not received information from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006. Hence, disclosure, if any, relating to amount unpaid as at the Balance Sheet date together with interest paid or payable as per the requirement under the said act, have not been made.

8. In the opinion of the Board, Current Assets, Loans and Advances have a value of the least equal to the amounts shown in the Balance Sheet, if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary.

10. Previous year's figures have been regrouped, reclassified & rearranged wherever considered necessary.

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Mar 31, 2014

1. The balances in respect of Sundry Debtors, Current Liabilities and Loans and Advances are subject to confirmations and reconciliation if any.

2. In the opinion of Board of directors & Management, the current assets, current liabilities, unsecured loans, loans and advances have been approximately of the value sated, if realized in the ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of amounts reasonably necessary.

3. Additional information pursuant to the provisions of New Schedule VI of the Companies Act, 1956.

4. Employee Benefits :

a) Defined Benefit Plan :

The Company has started staff gratuity scheme with LIC w.e.f 01-05-2009 in respect of present future liability of gratuity has been ascertained and provided in the accounts. Rs. 900000 has been deposited in staff gratuity scheme with LIC (Pre. Yr. – Rs. 550000/- provided for). There are 73 employees in the said scheme.

b) Defined Contribution Plan :

The Company has recognized the following amount in P & L account which is included under contribution to funds.

5. The Company deals in mainly in one product segment i.e. Adhesives and hence requirements of AS- 17 "Segment Reporting" issued by Institute of Chartered Accountants of India are not applicable.

6. Sundry creditors do not include any amount due to SSI undertakings as per identification made from available information.

7. RELATED PARTY DISCLOSURES :

As per Accounting standard 18 on "related party disclosures:, disclosures of transactions with related parties as defined therein are given below.

8. Name of the related parties and Relationship :

(a) Subsidiary :N.A.

(b) Key Management Personnel:

Shri Jagdish N. Patel Managing Director

Shri Chandulal C. Patel Executive Director

Shri Utkarsh J Patel Executive Director

(c) Other related enterprise with significant influence :

9. Investment of the company have been considered by the management to be of long-term nature and hence they are valued at cost of acquisition. In respect of quoted investments where the market value is lower than the acquisition cost, no provision is made for diminution in the value of such investments, since in the opinion of the board it is a temporary phenomenon and no provision is necessary.

10. In the opinion of the Board, current assets, loans and advances have a value of the least equal to the amounts shown in the Balance sheet, if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary.

11. The companies have not received information''s from the suppliers regarding their status under the Micro, small and Medium Enterprises Development Act, 2006. Hence, disclosure, if any relating to amount unpaid as at the balance sheet date together with interest paid or payable as per the requirement under the said act, have not been made.

12. The Company has during the year adopted Accounting Standard; -22 "Accounting For Taxes on Income" issued by The Institute of Chartered Accountants of India, Consequently the company recorded net differed tax income as at 31st March 2014, is Rs.183607/- as a increased profit and loss Account on March 2014.

13. Figures of the Previous Financial Year 2012-13 have been regrouped / reclassified wherever necessary to conform to the current year classification and presentation

14. Expenditure incurred on employees who were in receipt of not less than Rs.24,00,000/- per year if employed throughout the year and Rs.200000/- per month if employed for a part of a month - Rs. NIL

15. Additional information pursuant to the provisions of new schedule VI to the Companies Act, 1956 to the extent applicable, is given below.

(a) Income & Expenditure in Foreign Currency :

CIF Value of Income & Expenses : NIL

16 Generic names of the three principal products of the company :

(1) Item Code No.(ITC Code) : 35061000 Product Description : ADHESIVES

(2) Item Code No.(ITC Code) : 320890.02 Product Description : PAINTS

(3) Item Code No.(ITC Code) : 390703.01 Product Description : ALKYD RESINS

Note : Classification of products under ITC Code being a technical nature is not verified by the Auditors.

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Mar 31, 2013

1. The balances in respect of Sundry Debtors, Current Liabilities and Loans and Advances are subject to confirmations and reconciliation if any.

2. In the opinion of Board of directors & Management, the current assets, current liabilities, unsecured loans, loans and advances have been approximately of the value sated, if realized in the ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of amounts reasonably necessary.

3. As the company operates in a single segment engaged in Transport service, Accounting Standards 17 on Segment Reporting is not applicable.

4. Additional information pursuant to the provisions of New Schedule VI of the Companies Act, 1956.

5. Employee Benefits :

a) Defined Benefit Plan :

The Company has started staff gratuity scheme with LIC w.e.f 01-05-2009 in respect of present future liability of gratuity has been ascertained and provided in the accounts. Rs. 550000 has been deposited in staff gratuity scheme with LIC (Pre. Yr. – Rs. 684045/- provided for). There are 73 employees in the said scheme.

b) Defined Contribution Plan :

The Company has recognized the following amount in P & L account which is included under contribution to funds.

6. The Company deals in mainly in one product segment i.e. Adhesives and hence requirements of AS- 17 "Segment Reporting" issued by Institute of Chartered Accountants of India are not applicable.

7. Sundry creditors do not include any amount due to SSI undertakings as per identification made from available information.

8. RELATED PARTY DISCLOSURES :

As per Accounting standard 18 on "related party disclosures:, disclosures of transactions with related parties as defined therein are given below.

1. Name of the related parties and Relationship :

(a) Subsidiary :N.A.

(b) Key Management Personnel:

Shri Jagdish N. Patel Managing Director

Shri Chandulal C. Patel Executive Director

Shri Utkarsh J Patel Executive Director

(c) Other related enterprise with significant influence :

9. Investment of the company have been considered by the management to be of long-term nature and hence they are valued at cost of acquisition. In respect of quoted investments where the market value is lower than the acquisition cost, no provision is made for diminution in the value of such investments, since in the opinion of the board it is a temporary phenomenon and no provision is necessary.

10. In the opinion of the Board, current assets, loans and advances have a value of the least equal to the amounts shown in the Balance sheet, if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary.

11. The companies have not received information''s from the suppliers regarding their status under the Micro, small and Medium Enterprises Development Act, 2006. Hence, disclosure, if any relating to amount unpaid as at the balance sheet date together with interest paid or payable as per the requirement under the said act, have not been made.

12. The Company has during the year adopted Accounting Standard; -22 "Accounting For Taxes on Income” issued by The Institute of Chartered Accountants of India, Consequently the company recorded net differed tax income as at 31st March 2013, is Rs.144966/- as a increased profit and loss Account on March 2013.

13. Figures of the Previous Financial Year 2011-12 have been regrouped / reclassified wherever necessary to conform to the current year classification and presentation.

14. Expenditure incurred on employees who were in receipt of not less than Rs.24,00,000/- per year if employed through out the year and Rs.200000/- per month if employed for a part of a month - Rs. NIL

15. Additional information pursuant to the provisions of new schedule VI to the Companies Act, 1956 to the extent applicable, is given below .

(a) Income & Expenditure in Foreign Currency :

CIF Value of Income & Expenses : NIL

16 Generic names of the three principal products of the company :

(1) Item Code No.(ITC Code) : 35061000 Product Description : ADHESIVES

(2) Item Code No.(ITC Code) : 320890.02 Product Description : PAINTS

(3) Item Code No.(ITC Code) : 390703.01 Product Description : ALKYD RESINS

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Mar 31, 2012

1. The balances in respect of Sundry Debtors, Current Liabilities and Loans and Advances are subject to confirmations and reconciliation if any.

2. In the opinion of Board of directors & Management, the current assets, current liabilities, unsecured loans, loans and advances have been approximately of the value sated, if realized in the ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of amounts reasonably necessary.

3. As the company operates in a single segment engaged in Transport service, Accounting Standards 17 on Segment Reporting is not applicable.

4. Employee Benefits :

a) Defined Benefit Plan :

The Company has started staff gratuity scheme with LIC w.e.f 01-05-2009 in respect of present future liability of gratuity has been ascertained and provided in the accounts. Rs. 500000 has been deposited in staff gratuity scheme with LIC (Pre. Yr. – Rs. 684045/- provided for). There are 73 employees in the said scheme.

b) Defined Contribution Plan :

The Company has recognized the following amount in P & L account which is included under contribution to funds.

5. The Company deals in mainly in one product segment i.e. Adhesives and hence requirements of AS- 17 "Segment Reporting" issued by Institute of Chartered Accountants of India are not applicable.

6. Sundry creditors do not include any amount due to SSI undertakings as per identification made from available information.

7. RELATED PARTY DISCLOSURES :

As per Accounting standard 18 on "related party disclosures:, disclosures of transactions with related parties as defined therein are given below .

1. Name of the related parties and Relationship

(a) Subsidiary :N.A.

(b) Key Management Personnel :

Shri Jagdish N. Patel : Managing Director

Shri Chandulal C. Patel : Executive Director

(c) Other related enterprise with significant influence : NIL

2. Details relating to parties referred to (b)&(c) above

Key Management Persons : Other related Enterprise

Directors Remuneration Paid : 6,00,000 --

8. Investment of the company have been considered by the management to be of long-term nature and hence they are valued at cost of acquisition. In respect of quoted investments where the market value is lowerthan the acquisition cost, no provision is made for diminution in the value of such investments, since in the opinion of the board it is a temporary phenomenon and no provision is necessary.

9. In the opinion of the Board, current assets, loans and advances have a value of the least equal to the amounts shown in the Balance sheet, if realized in the ordinary course of business. The provision for all known liabilities is adequate and not in excess of amount considered reasonably necessary

10 . The companies have not received information''s from the suppliers regarding their status under the Micro, small and Medium Enterprises Development Act, 2006. Hence, disclosure, if any relating to amount unpaid as at the balance sheet date together with interest paid or payable as per the requirement under the said act, have not been made.

11. Figures of the Previous Financial Year 2010–11 have been regrouped / reclassified wherever necessary to conform to the current year classification and presentation.

12. Expenditure incurred on employees who were in receipt of not less than Rs.24,00,000/- per year if employed through out the year and Rs.200000/- per month if employed for a part of a month - Rs. NIL

13. Additional information pursuant to the provisions of new schedule VI to the Companies Act, 1956 to the extent applicable, is given below .

(a) Income & Expenditure in Foreign Currency :

CIF Value of Income & Expenses : NIL

14. Generic names of the three principal products of the company :

(1) Item Code No.(ITC Code) : 390791.00 Product Description : MALEIC RESINS

(2) Item Code No.(ITC Code) : 320890.02 Product Description : PAINTS

(3) Item Code No.(ITC Code) : 390703.01 Product Description : ALKYD RESINS

Note : Classification of products under ITC Code being a technical nature is not verified by the Auditors.

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Mar 31, 2010

(1) Figures have been rounded off to the nearest rupee and previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary.

(2) Auditors Remuneration : Rs. 11000/-. (Previous year Rs.11,000/-)

- For Statutory Audit : Rs. 7,000/-

- For Tax Audit : Rs. 4,000/-

(3) Managing Directors Gross Remuneration: Rs.6,00,000/- (Previous year Rs.4,80,000/-)

(4) Working capital Loans are secured by hypothecation of stock of Raw materials, work-in-progress, finished goods, other materials & book debts of the Company.

(5) The deferred tax asset has not been recognised, as there is no reasonable certainty of sufficient taxable income being available against which such deferred tax assets can be realised. Provision for Fringe Benefit Tax is made in accordance with provisions relating to the levy of this tax as contained in Chapter XII-H of the Income Tax Act, 1961.

(6) The Company deals in mainly in one product segment i.e. Adhesives and hence requirements of AS-17 "Segment Reporting" issued by Institute of Chartered Accountants of India are not applicable.

(7) Sundry creditors do not include any amount due to SSI undertakings as per identification made from available information.

(8) Debit & Credit balances are subject to confirmations & adjustments, if any.