Notes to Accounts of Orosil Smiths India Ltd.

Mar 31, 2018

Notes to Accounts

(a) Effect of Ind AS adoption on the balance sheet as at 1 April 2016.

(Amount in Rs)

Particulars	Notes	Previous GAAP*	Adjustment	Amount Under Ind AS
Assets
Non-current assets
Property, plant and equipment	1	20,384,995		20,384,995
Other intangible assets	2	41,846	-	41,846
Financial Assets				-
Investments	3a	3,774,850	(588,165)	3,186,685
Other financial assets	3b	153,736	-	153,736
Total non-current assets		24,355,427	(588,165)	23,767,262
Current assets
Inventories	4	15,286,036	-	15,286,036
Financial assets
Trade receivables	5a	648,518	-	648,518
Cash and cash equivalent	5b	801,021	-	801,021
Other Bank Balance	5c	630,517	-	630,517
Other financial assets	5d	-	-	-
Other current assets	6	3,543,770	-	3,543,770
Total current assets		20,909,862	-	20,909,862
Total assets		45,265,289	(588,165)	44,677,123
Equity and liabilities
Equity
Share capital	7	52,200,000	-	52,200,000
Other equity
Retained earnings	8	(26,337,972)	(588,165)	(26,926,137)
Other reserves	8	15,201,600	-	15,201,600
Total equity		41,063,629	(588,165)	40,475,463
Non current liabilities
Financial Liabilities
Borrowings	9	2,162,119	-	2,162,119
Long term provisions	10	255,055	-	255,055
Total non current liabilities		2,417,174	-	2,417,174

*The Previous GAAP figures have been reclassified to confirm to Ind AS presentation requirement for the purpose of this note.

(b) Effect of Ind AS adoption on the balance sheet as at 31 March 2017

				(Amount in Rs)
Particulars	Notes	Previous GAAP*	Adjustment	Amount Under Ind AS
Assets
Non-current assets
Property, plant and equipment	1	18,178,093		18,178,093
Other intangible assets	2	25,107	-	25,107
Financial Assets				-
Investments	3a	3,374,850	(720,174)	2,654,676
Other financial assets	3b	153,736	-	153,736
Total non-current assets		21,731,786	(720,174)	21,011,612
Current assets
Inventories	4	18,225,396	-	18,225,396
Financial assets
Trade receivables	5a	650,002	-	650,002
Cash and cash equivalent	5b	139,834	-	139,834
Other Bank Balance	5c	323,836	-	323,836
Other financial assets	5d	-	1,000	1,000
Other current assets	6	2,538,156	(1,000)	2,537,156
Total current assets		21,877,224	-	21,877,224
Total assets		43,609,010	(720,174)	42,888,838

Current liabilities
Financial liabilities
Borrowings	11a	1,076,013	-	1,076,013
Trade payables	11b	225,799	-	225,799
Other financial liabilities	11c	-	11,236	11,236
Other current liabilities	12	478,281	(11,236)	467,045
Short term provisions	13	4,393	-	4,393
Total current liabilities		1,784,486	-	1,784,486
Total liabilities		4,201,660	-	4,201,660
Total equity and liabilities		45,265,289	(588,165)	44,677,123

(Amount in Rs)

Particulars	Notes	Previous GAAP*	Adjustment	Amount Under Ind AS
Equity and liabilities
Equity
Share capital	7	52,200,000	-	52,200,000
Other equity
Retained earnings	8	(29,138,172)	(720,174)	(29,858,346)
Other reserves	8	15,201,600	-	15,201,600
Total equity		38,263,429	(720,174)	37,543,254
Non current liabilities
Financial Liabilities
Borrowings	9	967,411	-	967,411
Long term provisions	10	274,676	-	274,676
Total non current liabilities		1,242,087	-	1,242,087
Current liabilities
Financial liabilities
Borrowings	11a	1,194,708	-	1,194,708
Trade payables	11b	2,582,045	-	2,582,045
Other financial	11c
liabilities
Other current liabilities	12	321,524	-	321,524
Short term provisions	13	5,219		5,219
Total current liabilities		4,103,496	-	4,103,496
Total liabilities		5,345,583	-	5,345,583
Total equity and liabilities		43,609,012	(720,174)	42,888,838

* The Previous GAAP Figures have been reclassified to conform to Ind AS presentation requirements for the purpose of this note.

(c) Reconciliation of total comprehensive income for the year ended 31 March 2017.

(Amount in Rs)

				Amount
Particulars	Notes	Previous GAAP*	Adjustment	Under Ind AS
Income
Revenue from operations
Other income	14	17,712,664	-	17,712,664
Total income (I)	15	298,358	.	298,358
		18,011,022	-	18,011,022
Expenses
Cost of material Consumed		4,459,169	-	4,459,169
Purchase of Traded Goods	16	13,830,371		13,830,371
Change in Inventories of Finished Goods and Stock-in-trade	17	(3,558,981)	-	(3,558,981)
Employee benefits expense	18	1,038,151	-	1,038,151
Finance costs	19	310,696	-	310,696
Other Expenses	20	2,465,176	-	2,465,176
Depreciation and amortization	21	2,266,640	-	2,266,640
Total expense (II)		20,811,222	-	20,811,222
Profit/(loss) before exceptional items and tax		(2,800,200)	_	(2,800,200)
Exceptional items		-	-
Profit/(loss) before tax from continuing operations		(2,800,200)	-	(2,800,200)
Income taxes		-	-
Current tax
Adjustment of tax relating to earlier periods		-	-
Deferred tax (credit) /charge			_
Income tax expense		-	-
(Loss)/Profit for the year		(2,800,200)	-	(2,800,200)

Other Comprehensive Income
A (i) Item that will not be reclassified to profit or loss	7	-	(132,009)	(132,009)
(ii) Income tax relating to items that will not be reclassified to profit or loss
B (i) Item that will be reclassified to profit or loss	8	-	-	-
(ii) Income tax relating to items that will be reclassified to profit or loss	8	-	-	-
Total Comprehensive Income for the vear		(2,800,200)	(132,009)	(2,932,209)

For & on behalf of the Board of Directors		As per our report of even date attached
		For PNG & Co
		Chartered Accountants
		FRN 021910N
B. K. Narula	Karan Suri	Prabhat Kumar
Director	Director	Partner
DIN 00003629	DIN 01193500	M.No. 087257
Rita Narula	Shefali Kesarwani	Sanjay Bana
Director	Company Secretary	CFO
DIN 00006096	M. NO.A52098
Place: Noida
Date: 26.05.2018

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Mar 31, 2015

1. RELATED PARTY DISCLOSURES

(A) List of Related Parties and Relationship

Associates

Sukarma Finance Ltd

Corporate Research & Intelligence Services Ltd.

Key Management Personnel

Mr. B. K. Narula, Director

Mrs. Rita Narula, Director

Mr. Punit Jain, Director [Till June 26,2014)

Mrs. Bhavana Sampath Kumar, Director

Mrs. Pratibha Anand, Company Secretary (W.e.f June 16,2014)

Relatives of Key Management Personnel

Ms. Ridhi Suri Mr.CL Narula

Entities over which Key Management Personnel are able to exercise significant influence

B. K. Narula (HUF)

Xtrems Retails Pvt Ltd.

BKN Educational Society

Sridhi Infra Pvt Ltd.

2. Contingent Liabilities

The Company has given Bank Guarantee to Sales Tax authorities amounting to Rs. 224,249 as at March 31,2015 (Previous year Rs. 211,993).

3. CAPITAL AND OTHER COMMITMENTS

There are no Capital and other commitments outstanding as at March 31,2015.

4. Based on the information available with the management, there are no outstanding dues to Micro, Small and Medium Enterprises as per Micro, Small and Medium Enterprise Development Act, 2006 as at year end

5. Gratuity and Post Employment Benefit Plans

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

The following tables summarize the components of net benefit expense recognized in the Statement of profit & loss and amounts recognized in the balance sheet for the respective plans: "Included in the head Contribution to Provident and Other Funds

Notes:

Information relating to experience adjustment in the actual valuation of gratuity as required by Para 120 (n)(ii) of the Accounting Standard 15 [Revised) on Employee Benefits is not available with the Company.

6. LEASE COMMITMENTS

The Company has entered into operating lease transaction for renting of Office and resi dential premises. The terms of leases includes terms of renewal, increase of rent of premises in future period and terms of cancellation etc. The leases are cancellable in nature. The Company has made payment of Rs. 149,040 (previous year Rs. 473,952) recognized as an expense in the Statement of Profit & Loss for the year ended March 31,2015.

7. The estimated useful life of certain fixed assets have been revised in accordance with Schedule 11 of the Companies Act, 2013 with effect from April 01,2014. Pursuant to the above mentioned changes in useful lives, the depreciation for the year ending March 31,2015 amounting Rs. 11.40 Lacs has been accounted for in the books of accounts.

8. The Company has identified Fixed Assets amounting Rs. 10.47 Lacs as held for s ale and therefore it has been discarded from Fixed Assets at its book value or net realizable value, whichever is lower.

9. The Company does not have any exposure in respect of foreign currency denominated assets and liabilities (not hedged by derivative ins truments) as at 31 March 2015.

10. Balance of Trade Receivables, Trade Payables and Loans and Advances are subject to independent confirmations and reconciliation.

11. Deferred Taxes

Keeping in view the prudence and absence of virtual certainty of future taxab le income, the deferred tax assets on unabsorbed business losses and depreciation has not been created as on the reporting date.

12. Previous year figures have been taken from financial statements audited and opined by previous statutory auditors.

13. PREVIOUS YEAR COMPARATIVES

Previous year figures have been reclassified to conform to this year's classification.

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Mar 31, 2014

Note: 1

Related party Disclosures

i) Associates Sukarma Finance Ltd Corporate Research & Intelligence Services Ltd

ii) Key Management Personnel

Mr. B. K. Narula Mrs. Rita Narula Mr. Punit Jain Mr. Mahesh Prasad Mrs.Bhavana Sampath Kumar

iii) Relatives of Key Management Personnel

Ms. Ridhi Suri Mr. C L Narula

iv) Entities over which Key Management Personnel are able to exercise significant influence

B. K. Narula (HUF)

Xtrems Retails Pvt. Ltd BKN Educational Society Sridhi Infra Pvt. Ltd

Note: 2

Segment Reporting

Based on the guiding Principles given in Accounting Standards on "Segment Reporting" issued by the "Institute of Chartered Accountants of India", the Company is having only one segment as primary segment based on nature of product/ services rendered.

Note: 3

Disclosure pursuant to Accounting Standard 15 on "Employee Benefits Defined contribution plans

The Company''s employee provident fund scheme is a defined contribution plans. A sum of Rs. 51,815 has been recognized as ar. expense in relation to the scheme and shown under Personnel Expenses in the Profit and Loss account.

4) The Company does not have any exposure in respect of foreign currency denominated assets and liabilities [not hedged by derivative instruments) as at 31 March 2014.

5) The Company has taken office premises on an operating lease, with an option of renewal at the end of the lease term. Lease payments charged during the year to the Statement of Profit & Loss aggregate to Rs 3,86,652 The future lease payments under non cancellable operating lease is Nil.

6) These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Company Act 1956. Previous year figures have been regrouped / reclassified wherever considered necessary.

7) Balance of Debtors and Creditors are subject to confirmations.

8) Based on the information presently available with the management, there are no dues outstanding to micro and small enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006.

9) Share Application Money pending allotment

As at 31st March 2014, the Company had received an amount of Rs. 21,768,000/- towards share application money towards 3 5 % optionally convertible preference share of Rs. 10 each at a premium of Rs. 10 each. The share application money was received by conversion of amount of loan and interest payable to M/s Sridhi Infra Pvt Ltd. and Xtrems Retails Ltd. of Rs. 2,17,68,000/-. The share application money was received pursuant to an invitation to offer shares and in terms of such invitation; the Company is required to complete the allotment formalities after receiving the approval from shareholders in the EGM. The Company has sufficient authorized capital to cover the allotment of these shares.

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Mar 31, 2013

Notes: 1

Related party Disclosure

Related party disclosure as required under accounting standard on "Related Party Disclosures " issued by the Institute of Chartered Accountants of India are given below

a) Relationship:

i) Associates

B. K. Overseas Ltd.

Sukarma Finance Ltd

BKN Educational Society

Corporate Research & Intelligence Services Ltd.

Solar Renewable Urja Pvt. Ltd.

ii) Key Management Personnel

Mr. B. K. Narula Mrs. Rita Narula

iii) Relatives of Key Management Personnel

Ms. Ridhi Suri Ms. Sidhi Narula

iv) Entities over which Key Management Personnel are able to exercise significant influence

Yes Travels & Hospitality Ltd

B. K. Narula (HUF)

Notes: 2

Segment Reporting

Based on the guiding Principles given in Accounting Standards on "Segment Reporting" issued by the "Institute of Chartered Accountants of India", the Company is having only one segment as primary segment based on nature of product / services rendered

Notes: 3

Disclosure pursuant to Accounting Standard 15 on "Employee Benefits Defined contribution plans

The Company''s employee provident fund scheme is a defined contribution plans. A sum of Rs.124,891 has been recognized as an expense in relation to the scheme and shown under Personnel Expenses in the Profit and Loss account.

Defined benefit plans Gratuity

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act or as per the Company''s Scheme whichever is more beneficial.

4) The Company does not have any exposure in respect to foreign Currency denominated assests and liabilities (not hedged by derivative instruments) as at 31st March 2013.

5) The Company has taken office premises on an operating lease , with an option of renewal at the end of the lease term. Lease payments charged during the year to the statement of Profit & Loss aggregate to Rs. 97,0068 The future lease payments under non cancellable operating lease is NIL.

6) These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Company Act 1956. Previous year figures have been regrouped / reclassified wherever considered necessary.

7) Balance of Debtors and Creditors are subject to confirmations.

8) Based on the information presently available with the management, there are no dues outstanding to micro and small enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006.

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Mar 31, 2012

A) The Company had only one class of Shares referred to as Equity Share having par value of Rs.10/- per share. Each Equity Shareholder is entitled to one vote per share.

Notes: 1

Contingent Liability

Contingent liabilities not provided for in the books of accounts

As at 31-3-2012 As at 31-3-2011

Particulars

Outstanding guarantees given to banks 115,000 115,000

Notes: 2

Related party Disclosure

Related party disclosure as required under accounting standard on "Related Party Disclosures " issued by the Institute of Chartered Accountants of India are given below

a) Relationship:

i) Associates

B. K. Overseas Ltd.

Sukarma Finance Ltd

BKN Educational Society

Corporate Research & Intelligence Services Ltd.

Solar Renewable Urja Pvt. Ltd.

ii) Key Management Personnel

Mr. B. K. Narula

Mrs. Rita Narula

iii) Relatives of Key Management Personnel

Ms. Ridhi Suri

Ms. Sidhi Narula

iv) Entities over which Key Management Personnel are able to exercise significant influence

Yes Travels & Hospitality Ltd

B. K. Narula (HUF)

Notes: 3

Segment Reporting

Based on the guiding Principles given in Accounting Standards on "Segment Reporting" issued by the "Institute of Chartered Accountants of India", the Company is having only one segment as primary segment based on nature of product / services rendered

Notes: 4

Disclosure pursuant to Accounting Standard 15 on "Employee Benefits Defined contribution plans

The Company's employee provident fund scheme is a defined contribution plans. A sum of Rs.124,891 has been recognized as an expense in relation to the scheme and shown under Personnel Expenses in the Profit and Loss account.

Defined benefit plans Gratuity

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act or as per the Company's Scheme whichever is more beneficial.

e. The major categories ofplan assets as a percentage of the fair value of total plan assets are as follows

Not applicable.

f. Return on plan assets

Not Applicable

The discount rate is based on the prevailing market yields of Indian government securities as at the balance sheet date for the estimated term of the obligations.

The salary escalation rate is based on estimates of salary increases, which take into account inflation, promotion and other relevant factors.

5) These financial statements have been prepared in the format prescribed by the Revised Schedule VI to the Company Act 1956. Previous year figures have been regrouped / reclassified wherever considered necessary.

6) Balance of Debtors and Creditors are subject to confirmations.

7) Based on the information presently available with the management, there are no dues outstanding to micro and small enterprises covered under the Micro, Small and Medium Enterprises Development Act, 2006.

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Mar 31, 2010

(1) Previous year figures have been regrouped and reclassified, wherever considered necessary.

(2) Contingent Liability

Contingent liabilities not provided for in the books of accounts.

As at March 31, 2010 As at Mar 31, 2009

Outstanding guarantees given by banks 1,15,000 1,15,000

Estimated amount of claims against the Company not acknowledged as debts in respect of:

- Customer Claims NIL NIL

- Others* 4,250 NIL

(3) Related party Disclosure

Related party disclosure as required under accounting standard on "Related Party Disclosures " issued by the Institute of Chartered Accountants of India are given below:

a) Relationship:

i) Parties where Control Exists

Partnership Firm - JDTI, Chandigarh ii) Associates

B. K. Overseas Ltd.

Sukarma Finance Ltd.

Corporate Research & Intelligence Services Ltd.

iii) Key Management Personnel

Mr. B. K. Narula

Mrs. Rita Narula iv) Relatives of Key Management Personnel

Ms Ridhi Narula

(4) Balance of Debtors and Creditors are subject to confirmations.

(5) Stock of commodities with students/Job workers are subject to confirmation.

(6) Figures in brackets represent previous year figures.

(7) Segment Reporting

Based on the guiding Principles given in Accounting Standards on "Segment Reporting" issued by the "Institute of Chartered Accountants of India", the Company primary segment is based on nature of product / services rendered.

Segment Accounting Policies

In addition to the significant Accounting Policies as applicable to the business segment as set out in note "A" of the Schedule 14 of the Notes to the Accounts, the accounting policies in relation to segment accounting are as under:

a) Segment Assets and Liabilities

Assets and Liabilities, which are directly attributable to a particular Segment, are classified as the Assets and Liabilities of the segment. Segment Assets include all operating assets used by the segment and consist principally of inventories, sundry debtors and loans and advances. Segment Assets and Liabilities exclude Assets and Liabilities, which cannot be classified into a particular Segment and are depicted as common Assets and Liabilities. These common Assets / Liabilities include:

Fixed Assets - Reserve & Surplus

Investments - Provision for Taxes

Fixed Deposit with Banks - Deferred Tax Assets/Liabilites

Share Capital - Misc. Expenditure (to the Extent

not written off)

Cash and Bank Balance - Secured Loans

Provision for Gratuity & Encashment

b) Segment Revenue and Expenses

Revenue and Expenses, which are directly attributable to a particular Segment, are classified as Revenue and Expenses of the Segment. Revenue and Expenses, which cannot be allocated to a particular Segment, have been depicted as Companys Revenue and Expenses. These Common Revenue / Expenses include:

Interest Expenses - Provision for Taxes

Misc. Income - Depreciation

8. Disclosure pursuant to Accounting Standard 15 on "Employee Benefits":

Defined contribution plans

The Companys employee provident fund scheme is a defined contribution plans. A sum of Rs.98,760 has been recognised as an expense in relation to the scheme and shown under Personnel Expenses in the Profit and Loss account.

Defined benefit plans

Gratuity

Gratuity is payable to all eligible employees of the Company on superannuation, death and permanent disablement, in terms of the provisions of the Payment of Gratuity Act or as per the Companys Scheme whichever is more beneficial.