Notes to Accounts of Signet Industries Ltd.

Mar 31, 2024

15.2 Terms / Rights attached to Equity Shares :

The company has only one class of equity shares having a par value of Rs. 10 per share (Previous Year Re. 10 Each). Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

A. 5% Non Convertible, Non Cumulative Redeemable Preference Shares

Preference Shares are Non Convertible, Non Cumulative, Redeemable and have a par value of Rs.10/- per share. Each Preference Shareholder is eligible for one vote per share only on resolution affecting their rights and interest. Shareholders are entitled to dividend at the rate of 5% p.a. which is non cumulative. In the event of liquidation of the Company, before redemption, the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

The Company has allotted 50,00,000 ,5% Non Convertible, Non Cumulative, Redeemable Preference Shares of Rs. 10/-each on 8th October 2012. The preference shares are redeemable at par , not being after 20 years from the date of allotment.

B. 2% Non Convertible, Non Cumulative Redeemable Preference Shares

Preference Shares are Non Convertible, Non Cumulative, Redeemable and have a par value of Rs.10/- per share. Each Preference Shareholder is eligible for one vote per share only on resolution affecting their rights and interest. Shareholders are entitled to dividend at the rate of 2% p.a. which is non cumulative. In the event of liquidation of the Company before redemption the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

The Company has allotted 54,00,000 ,2% Non Convertible, Non Cumulative, Redeemable Preference Shares of Rs. 10/-each at a premium of Rs. 40/- per share on 27th March 2015 and 6,00,000 Shares on 14th May, 2015. The preference shares shall be redeemed at Rs. 80/-(Rupees Eighty only) after the end of fifth year but within a period of 20 years either in one or more than one trenches as may be determined by the board of directors of the company in its absolute discretion.

a. Working Capital Loans from Banks amounting to Rs.19345.30 lacs (Pre. Year Rs.19927.61 lacs ) are secured by hypothecation of stock of raw materials, work in process, finished goods, other current assets and charge on book debts, second pari passu charge on the Property ,plant & equipment (both present and future) of the company, extension of equitable mortgage of the immovable properties situated at Industrial Area Pithampur and Kelodhala, Dewas Naka, Indore and personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of M/s Kamdeep Marketing Private Limited.

First pari passu charge of consortium banks by way of equitable mortgage on Immovable property situated at Survey No. 314/2 situated at Kelodhala, Dewas Naka, Indore and Immovable property situated at Survey No. 314/3 situated at Kelodhala, Dewas Naka, Indore and further ; First charge of consortium banks by way of equitable mortgage ranking pari passu with SVC Bank on Immovable property situated at Block No. 1, Khajrana, 1307/2, Gulmohar Colony, Indore, Office Premises situated at 114-116 Trade House, 14/3 South Tukoganj, Indore and Office Premises situated at 315-316 Trade House, 14/3 South Tukoganj, Indore

b. The Compnay has availed channel finance facility fron Standard Chartered Bank, interest @ 1 MONTH MIBOR 4.97% P,A, The said facility oustanding as at 31st March, 2024 Rs 353.32 lacs (Pre.Year Rs.352.76) is without any Guarantee & security.

c. The Compnay has taken unsecured Purchase Invoice discounting facility to the extent of Rs 300 lacs from Unity Small finance bank ,interest @ 11.50% P.A .The said facility oustanding as at 31st March, 2024 Rs 300.44 Lacs (Pre.Year Rs.300 Lacs).The Demand Promissory note & Personal guarantee of Mr Mukesh Sangla & Saurabh sangla is given against this facility.

d. The company has availed unsecured trade discounting to the extent of 5200 lakhs at the M1 Plateform.The rate of discounting (interest) varied on each transaction & depends on the lowest bid of the particiapating bank.The said facility oustanding as at 31st March, 2024 Rs 5014.73 lakhs (Pre.Year Rs.872.02 Lacs).

e. The Compnay has taken unsecured Purchase Invoice discounting facility to the extent of Rs 1000 lacs from Aditya Birla Finance ltd ,interest @ STRR- 8% P.A .The said facility oustanding as at 31st March, 2024 Rs.986.85 (Pre.Year Rs.997.92 Lacs).Personal guarantee of Mr Mukesh Sangla & Saurabh sangla is given against this facility.Lien Marked is also provided to Aditya Birla Finance ltd on Aditya Birla Sun Life floating rate Mutual Fund of Rs 100 Lacs.

f. The Compnay has taken unsecured Purchase Invoice discounting facility to the extent of Rs 1000 lacs from Cholamandalam Investment & Finance Company Ltd. ,interest @ "Chola Reference Rate - 5.28% P.A" .The said facility oustanding as at 31st March, 2024 Rs.403.69 (Pre.Year Rs.Nil).Post dated Cheques is given against this facility.Lien Marked is also provided to Cholamandalam Investment & Finance Company Ltd on Fixed Deposit of Rs 150 Lacs.

1. The company does not expect any reimbursement in respect of the above contingent liabilities.

2. It is not practical to estimate the timing of cash outflow if any, in respect of matter (a) above pending resolution of the appellate proceedings. Further the liability mentioned in (a) above includes interest except in cases where the company has determined that the possibility of such levy is remote.

Secured Long term borrowing aggregating to Rs 4374.46 Lacs (Previous Year Rs. 5967.45 Lacs) including interest accrued Rs. Nil/- (Previous year Rs. Nil) are further secured by personal guarantee of directors Mr. Mukesh Sangla, Mr. Saurabh Sangla and others. Corporate guarantee of Kamdeep Marketing Private Limited is given to consortium member banks.

(b) Interoperate Deposits amounted Rs. Nil (Previous Year Rs. 300 lacs) are repayable by the end of 2025. The rate of interest is 9% P.A (Previous Year 9 % P.A).The interoperate deposit is brought in as stipulated by the Banks under their sanction of working capital facilities.

(c) Loan from related party amounted Rs. 607.30 lacs (Previous Year Rs. 301.00 lacs) are repayable by the end of 2025. The rate of interest is 9% P.A (Previous Year 9 % P.A).The Loan from related party is brought in as stipulated by the Banks under their sanction of working capital facilities.

(d) Loan from Others amounted Rs. 314.50 (Previous Year Rs. Nil) is taken from Oxyzo Financial Services Pvt. Ltd. Repayable in 18 monthly installments of 31.00 lacs (including interest) commencing from September 2023 and last Installment due in February 2025, Rate of Interest "14.20% p.a." (Pre. Yr. Nil) as at the end of year.

b. Leave Encashment

Liability in respect of leave encashment is determined using actuarial valuation carried out as at Balance sheet date.Acturial gain & losses are recognized in full in statement of Profit & loss for the year in which they occur. Liability on account of leave encashment as at the year end RS. 79.81 lacs (P.Y Rs.83.86 Lacs).

Note 45 (a) ''Financial risk management objectives and policies Risk management framework

The Company''s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company''s primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company''s risk management assessment policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes. a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies income or value of it''s holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return. i) Interest rate risk

Interest rate risk is the risk the the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.

The Company''s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks and others. Currently company is not using any mitigating factor to cover the interest rate risk.

Interest rate sensitivity

The Company has taken Intercorporate loan at fixed rate of interest and are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS - 107, since neither the carrying amount nor the future cash flow will fluctuate because of change in market interest rate.

The sensitivity analysis below have been determined based on exposure to interest rates (variable) for borrowing at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates. If the interest rates had been 1% higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on companies profit in that financial year would have been as below:

ii) Foreign currency risk

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign currency forward contract and option contracts to mitigate the risk of changes in exchange rate on foreign currency exposure.

Sensitivity to foreign currency risk

The following table demonstrates the sensitivity in the USD currencies if the currency rate is increased/(decreased) by 1% with all other variables held constant. The below impact on the Company''s profit before tax is based on changes in the fair value of unhedged foreign currency monetary assets and liabilities at balance sheet date:

(b) Credit risk

"Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.

Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk.

Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss.

The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company''s past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date."

"Trade and other receivables

Exposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Impaired amounts are based on lifetime expected losses based on the best estimate of the management. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss related to several customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances. The movement in the allowance for impairment in respect of trade and other receivables during the year was as follows. "

Investments

The Company limits its exposure to credit risk by generally investing in counter -parties that have good credit rating . The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

Cash & Cash Equivalents

The Company holds cash & cash equivalent with credit worthy banks of RS. 24.26 lacs as at 31st March 2024 & RS. 135.35 lacs as at 31st March 2023The credit worthiness of such banks is evaluate by management on an ongoing basis and is considered to be good.

(c) Liquidity risk

"Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due. The Company has obtained fund and non-fund based working capital lines from various banks. The company''s treasury department is responsible for liquidity, funding as well as settlement management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the company''s net liquidity position through rolling forecasts on the basis of expected cash flows."

46 .Capital Management

"For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company''s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition 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 (buy back its shares) or issue new shares.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2024 and 31st March, 2023."

Note 47. Financial Instruments by Category and fair value heirarchy

"Set out below, is a comparison by class of the carrying amounts and fair value of the Company''s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values.

The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties."

"To provide an indication about the reliability of the inputs used in determining fair value, the Company has classified its financial instruments into three levels prescribed under the Ind AS. An explanation for each level is given below.

Level 1:Quoted (unadjusted) market prices in active markets for identical assets or liabilities.

Level 2: Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable

Level 3: Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable."

48. Pursuant to disclosure pertaining to Section 186 (4) of the Companies Act, 2013

a. Investment made and outstanding as at the year end is classified under respective heads.

b. Guaranties/Securities given & o/s as at the end of the year are nil (PY. Nil).

49. Information relating to derivative instruments :-

a. The Company has no foreign currency/forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The company does not use forward contracts for speculative purposes.

50. Interest Income Rs 126.26 Lacs (Pre. Year Rs.102.55 Lacs) included in Interest Received (Note 29 Other Income) represents interest earned on FDRs pledged with banks for various credit facilities availed by the company.

54. Additional Regulatory Information

• The company has not granted Loans or Advances in the nature of loans to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are: (a) repayable on demand or (b) without specifying any terms or period of repayment.

• The company neither have any Benami property nor any proceedings have been initiated or pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

• The company is not declared wilful defaulter by any bank or financial Institution or other lender.

• The company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

• The company has no subsidiary Company hence compliance with the number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017 is not applicable.

•(A) The company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other sources or kind of funds) to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) 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;

(B) The company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall

(i) 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

(ii) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

• The Company does not have any transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

56. Dividend Paid during the year ended march 31, 2024 include an amount of Rs. 0.50 per equity share towards final dividend for the year ended march 31, 2023 dividend paid by the company are based on profit available for distribution.

57. Previous year''s figures are regrouped / rearranged wherever considered necessary to make them comparable with current year''s figures.

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Mar 31, 2023

xvi. Provisions, Contingent Liabilities and Contingent Assets

Provisions are recognised when there is a present legal or constructive obligation as a result of past events and it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and the amount can be
reliably estimated. Provisions are not recognized for future operating losses.

Provisions are measured at the present value of management''s best estimate of the expenditure required to settle the
present obligation at the end of the reporting period. The discount rate used to determine the present value is a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The increase in the
provision due to the passage of time is recognised as interest expense.

A contingent liability is a possible obligation that arises from past events whose existence will be confirmed by the
occurrence or non-occurrence of one or more uncertain future events beyond the control of the Company or a present
obligation that is not recognized because it is not probable that an outflow of resources will be required to settle the
obligation, or the amount of the obligation cannot be measured with sufficient reliability. The Company does not
recognize a contingent liability but discloses its existence in the financial statements

A contingent asset 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 Company.
Contingent assets are not recognized, but its existence is disclosed in the financial statements

xvii. Lease

A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time
in exchange for consideration.

As per the requirements of Ind AS 116 the company evaluates whether an arrangement qualifies to be a lease. In
identifying a lease the company uses significant judgment in assessing the lease term (including anticipated renewals) and
the applicable discount rate.

The Company determines the lease term as the non-cancellable period of a lease, together with both periods covered by an
option to extent the lease if the company is reasonably certain to exercise that option; and periods covered by an option to
terminate the lease if the Company is reasonably certain not to exercise that option. The Company revises the lease term if
there is a change in the non-cancellable period of a lease.

Company as a lessee

The Company accounts for each lease component within the contract as a lease separately from non-lease components of
the contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone
price of the lease component and the aggregate stand-alone price of the non-lease components.

Right of Use Assets

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the lease
commencement date. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any
lease incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in
dismantling and removing the underlying asset or restoring the underlying asset or site on which it is located.

The right-of-use assets is subsequently measured at cost less any accumulated depreciation, accumulated impairment
losses, if any and adjusted for any remeasurement of the lease liability. The right-of-use assets is depreciated using the
straight-line method from the commencement date over the lease term. Right-of-use assets are tested for impairment
whenever there is any indication that their carrying amounts may not be recoverable and impairment loss, if any, is
recognised in the statement of profit and loss.

Leasehold lands are amortized over the period of lease.

Lease Liability

The Company measures the lease liability at the present value of the lease payments that are not paid at the commencement
date of the lease. 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. For leases with
reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate
specific to the lease or the incremental borrowing rate for the portfolio as a whole.

The lease liability is subsequently remeasured by increasing the carrying amount to reflect interest on the lease liability,
reducing the carrying amount to reflect the lease payments made and remeasuring the carrying amount to reflect any
reassessment or lease modifications. The company recognises the amount of the re-measurement of lease liability due to
modification as an adjustment to the right-of-use asset and statement of profit and loss depending upon the nature of
modification. Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the
measurement of the lease liability, the Company recognises any remaining amount of the re-measurement in statement of
profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 Leases to short-term leases of all assets that have a
lease term of 12 months or less and leases for which the underlying asset is of low value. The lease payments associated
with these leases are recognized as an expense on a straight-line basis over the lease term.

xviii. Impairment of Non-Financial Assets

The company assesses at each reporting date whether there is any objective evidence that a non-financial asset or a group
of non-financial assets are impaired. If any such indication exists, the company estimates the amount of impairment loss.
For the purpose of assessing impairment, the smallest identifiable group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from other assets or group of assets is considered as cash
generating unit. If any such indication exists, an estimate of the recoverable amount of the individual asset/cash generating
unit is made.

An impairment loss is calculated as the difference between an asset''s carrying amount and recoverable amount. Losses are
recognized in profit or loss and reflected in an allowance account. When the company considers that there are no realistic
prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently
decreases and the decrease can be related objectively to an event occurring after the impairment was recognized, then the
previously recognized impairment loss is reversed through profit or loss.

When an impairment loss subsequently reverses, the carrying amount of the asset (or a cash-generating unit) is increased
to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying
amount that would have been in place had there been no impairment loss been recognized for the asset (or cash-generating
unit) in prior years. A reversal of an impairment loss is recognized immediately in Statement of Profit and Loss, taking into
account the normal depreciation/amortization.

xix. 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 instruments also include derivative contracts such as foreign currency foreign
exchange forward contracts, interest rate swaps and currency options; and embedded derivatives in the host contract.

i. Financial assets
Classification

The Company shall classify financial assets and subsequently measured at amortised cost, fair value through other
comprehensive income (FVOCI) or fair value through profit or loss (FVTPL) on the basis of its business model for
managing the financial assets and the contractual cash flow characteristics of the financial asset.

Initial recognition and measurement

All financial assets are recognised initially at fair value. Transaction costs that are attributable to the acquisition of
the financial asset is adjusted to the fair value, in the case of financial assets not recorded at fair value through profit
or loss. Purchases or sales of financial assets that require delivery of assets within a time frame established by
regulation or convention in the market place (regular way trades) are recognised on the trade date, i.e., the date that
the company commits to purchase or sell the asset.

Financial Assets measured at amortised cost

A financial asset is measured at the amortised cost if both the following conditions are met:

a) The asset is held within a business model whose objective is to hold assets for collecting contractual cash
flows, and

b) Contractual terms of the asset give rise on specified dates to cash flows that are solely payments of principal

and interest (SPPI) on the principal amount outstanding.

After initial measurement, such financial assets are subsequently measured at amortised cost using the effective interest
rate (EIR) method. Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or
costs that are an integral part of the EIR. The EIR amortisation is included in finance income in the statement of profit and
loss. The losses arising from impairment are recognised in the statement of profit and loss. This category generally applies
to trade and other receivables.

Financial Asset measured at fair value through other comprehensive income (FVOCI)

A financial asset ismeasured at FVOCI if both of the following criteria are met:

a) The objective of the business model is achieved both by collecting contractual cash flows and selling the financial
assets, and

b) The asset''s contractual cash flows represent SPPI.

Financial assets included within the FVOCI category are measured initially as well as at each reporting date at fair
value. Fair value movements are recognized in the other comprehensive income (OCI). However, the company
recognizes interest income, impairment losses & reversals and foreign exchange gain or loss in the profit and loss.

On derecognition of the non-derivative debt instruments designated at FVOCI, cumulative gain or loss previously
recognised in OCI is reclassified from the equity to profit and loss. Whereas onderecognition of the equity
instruments designated at FVOCI, cumulative gain or loss previously recognised in OCI is reclassified from the
equity to retained earnings.

Interest earned whilst holding FVOCI debt instrument is reported as interest income using the EIR method.
Financial Asset measured at fair value through profit and loss (FVTPL)

FVTPL is a residual category for financial asset. Any financial asset, which does not meet the criteria for categorization as at
amortized cost or as FVOCI, is classified as at FVTPL.

In addition, the company may elect to classify a financial asset, which otherwise meets amortized cost or FVOCI criteria, as at
FVTPL. However, such election is allowed only if doing so reduces or eliminates a measurement or recognition inconsistency
(referred to as ''accounting mismatch'').

Financial assets included within the FVTPL category are measured at fair value with all changes recognized in the profit and
loss.

Derecognition

A financial asset (or, where applicable, a part of a financial asset or part of a company of similar financial assets) is primarily
derecognised (i.e. removed from the company''s balance sheet) when:

i. The rights to receive cash flows from the asset have expired, or

ii. The company has transferred its rights to receive cash flows from the asset or has assumed an obligation to pay the received
cash flows in full without material delay to a third party under a ''pass-through'' arrangement; and either (a) the company has
transferred substantially all the risks and rewards of the asset, or (b) the company has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.

iii. When the company has transferred its rights to receive cash flows from an asset or has entered into a pass-through
arrangement, it evaluates if and to what extent it has retained the risks and rewards of ownership. When it has neither
transferred nor retained substantially all of the risks and rewards of the asset, nor transferred control of the asset, the
company continues to recognise the transferred asset to the extent of the company''s continuing involvement. In that case,
the company also recognises an associated liability. The transferred asset and the associated liability are measured on a
basis that reflects the rights and obligations that the company has retained.

iv. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the
original carrying amount of the asset and the maximum amount of consideration that the company could be required to
repay.

Impairment of financial assets

In accordance with Ind-AS 109, the Company applies expected credit loss (ECL) model for measurement and recognition
of impairment loss on the following financial assets and credit risk exposure:

a) Financial assets that are debt instruments, and are measured at amortised cost e.g., loans, debt securities, deposits,
and bank balance.

b) Trade receivables.

The Company follows ''simplified approach'' for recognition of impairment loss allowance on:

i. Trade receivables which do not contain a significant financing component.

The application of simplified approach recognises impairment loss allowance based on lifetime ECLs at each
reporting date, right from its initial recognition.

ii. For recognition of impairment loss on other financial assets and risk exposure, the Company determines that
whether there has been a significant increase in the credit risk since initial recognition. If credit risk has not increased
significantly, 12-month ECL is used to provide for impairment loss. However, if credit risk has increased
significantly, lifetime ECL is used. If, in a subsequent period, credit quality of the instrument improves such that
there is no longer a significant increase in credit risk since initial recognition, then the entity reverts to recognising
impairment loss allowance based on 12-month ECL.

ii. Financial liabilities
Classification

The Company classifies all financial liabilities as subsequently measured at amortised cost, except for financial liabilities
at fair value through profit or loss. Such liabilities, including derivatives that are liabilities, shall be subsequently
measured at fair value.

Initial recognition and measurement

Financial liabilities are classified, at initial recognition, as financial liabilities at fair value through profit or loss, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.

All financial liabilities are recognised initially at fair value and, in the case of loans and borrowings and payables, net of directly
attributable transaction costs.

The company''s financial liabilities include trade and other payables, loans and borrowings including bank overdrafts, financial
guarantee contracts and derivative financial instruments.

Financial liabilities measured at fair value through profit or loss.

Financial liabilities at fair value through profit or loss include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at fair value through profit or loss. Financial liabilities are classified as held for trading if
they are incurred for the purpose of repurchasing in the near term. This category also includes derivative financial instruments
entered into by the group that are not designated as hedging instruments in hedge relationships as defined by Ind-AS 109.
Separated embedded derivatives are also classified as held for trading unless they are designated as effective hedging
instruments.

Gains or losses on liabilities held for trading are recognised in the profit or loss.

Financial liabilities designated upon initial recognition at fair value through profit or loss are designated at the initial date of
recognition, and only if the criteria in Ind-AS 109 are satisfied. For liabilities designated as FVTPL, fair value gains/ losses
attributable to changes in own credit risk are recognized in OCI. These gains/loss are not subsequently transferred to P&L.
However, the company may transfer the cumulative gain or loss within equity. All other changes in fair value of such liability are
recognised in the statement of profit or loss.

Loans and borrowings

After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the EIR
method. Gains and losses are recognised in profit or loss when the liabilities are de-recognised as well as through the EIR
amortisation process.

Amortised cost is calculated by taking into account any discount or premium on acquisition and fees or costs that are an integral
part of the EIR. The EIR amortisation is included as finance costs in the statement of profit and loss.

This category generally applies to interest-bearing loans and borrowings.

Derecognition

A financial liability is de-recognised when the obligation under the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing
liability are substantially modified, such an exchange or modification is treated as the derecognition of the original liability and
the recognition of a new liability. The difference in the respective carrying amounts is recognised in the statement of profit or
loss.

Offsetting

Financial assets and financial liabilities are offset and the net amount is presented in the balance sheet when, and when the

company has a legally enforceable right to set off the amount and it intends either to settle them on net basis or to realize the asset
and settle the liability simultaneously

xx. Derivative financial instruments

The company uses derivative financial instruments, such as forward currency contracts, interest rate swaps and forward
commodity contracts, to hedge its foreign currency risks, interest rate risks and commodity price risks, respectively. Such
derivative financial instruments are initially recognized at fair value on the date on which a derivative contract is entered
into and are subsequently re-measured at fair value. Derivatives are carried as financial assets when the fair value is
positive and as financial liabilities when the fair value is negative.

xxi. Measurement of fair values

The Company''s accounting policies and disclosures require the measurement of fair values for financial instruments.

The Company has an established control framework with respect to the measurement of fair values. The management
regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker
quotes or pricing services, is used to measure fair values, then the management assesses the evidence obtained from the
third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair
value hierarchy in which such valuations should be classified.

When measuring the fair value of an asset or a liability, the Company uses observable market data as far as possible. Fair
values are categorized into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as
follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: inputs other than quoted prices included in 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 asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then
the fair value measurement is categorized in its entirety in the same level of the fair value hierarchy as the lowest level
input that is significant to the entire measurement.

The Company recognizes transfers between levels of the fair value hierarchy at the end of the reporting period during
which the change has occurred.

C. Mandatory exceptions applied - Standard Issued but not yet effective

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:

(a) 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.

(b) 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 Initial recognition exemption
of Ind AS 12 so that it no longer applies to transactions that, on initial recognition, give rise to equal taxable and
deductible temporary differences. Accordingly, companies will need to recognise a deferred tax asset and a deferred
tax liability for temporary differences arising on transactions such as initial recognition of a lease and a
decommissioning provision.

(c) Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors - The definition of a "change in
accounting estimates" has been replaced with a definition of "accounting estimates". Accounting estimates are
defined as "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 is evaluating the impact, if any, in its financial statements and does not expect to have these amendments to
have any significant impacts in its financial statements.

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Mar 31, 2018

1.1 Terms / Rights attached to Equity Shares :

The company has only one class of equity shares having a par value of Rs. 1 per share (Previous Year Re. 1 Each). Each shareholder is eligible for one vote per share. The dividend proposed by the Board of Directors is subject to the approval of shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts in proportion to their shareholding.

1.2 For the period of five years immediately preceding the date at which the Balance Sheet is prepared i.e. 31st March, 2018, the company has not allotted any bonus shares,any shares pursuant to contract(s) without payment being received in cash and bought back any shares/class of shares.

2.1 Terms / Rights attached to Preference Shares :

A. 5% Non Convertible, Non Cumulative Redeemable Preference Shares

Preference Shares are Non Convertible, Non Cumulative, Redeemable and have a par value of Rs.10/- per share. Each Preference Shareholder is eligible for one vote per share only on resolution affecting their rights and interest. Shareholders are entitled to dividend at the rate of 5% p.a. which is non cumulative. In the event of liquidation of the Company before redemption the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

The Company has allotted 50,00,000 ,5% Non Convertible, Non Cumulative, Redeemable Preference Shares of Rs. 10/- each on 8th October 2012. The preference shares are redeemable at par , not being after 20 years from the date of allotment.

B. 2% Non Convertible, Non Cumulative Redeemable Preference Shares

Preference Shares are Non Convertible, Non Cumulative, Redeemable and have a par value of Rs.10/- per share. Each Preference Shareholder is eligible for one vote per share only on resolution affecting their rights and interest. Shareholders are entitled to dividend at the rate of 2% p.a. which is non cumulative. In the event of liquidation of the Company before redemption the holders of preference shares will have priority over equity shares in the payment of dividend and repayment of capital.

The Company has allotted 54,00,000 ,2% Non Convertible, Non Cumulative, Redeemable Preference Shares of Rs. 10/- each at a premium of Rs. 40/- per share on 27th March 2015 and 6,00,000 Shares on 14th May, 2015. The preference shares shall be redeemed at Rs. 80/-(Rupees Eighty only) after the end of fifth year but within a period of 20 years either in one or more than one trenches as may be determined by the board of directors ofthe company in its absolute discretion.

Note :

a.(i) Working Capital Loans from Banks amounting to Rs.16096.18 Lacs(Pre. Year Rs.10616.39 Lacs, As on 1stApril 2016 Rs. 8754.24 Lacs) are secured by hypothecation of stock of raw materials, work in process, finished goods, other current assets and charge on book debts, second pari passu charge on the Fixed Assets (both present and future) of the company, extension of equitable mortgage of the immovable properties situated at Industrial Area Pithampur and Kelodhala, Dewas Naka, Indore and personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of M/s Kamdeep Marketing Private Limited.

First pari passu charge of consortium banks by way of equitable mortgage on Immovable property situated at Survey No. 314/2 situated at Kelodhala, Dewas Naka, Indore and Immovable property situated at Survey No. 314/3 situated at Kelodhala, Dewas Naka, Indore and further ; First charge of consortium banks by way of equitable mortgage ranking pari passu with SVC Bank on Immovable property situated at Block No. 1, Khajrana, 1307/2, Gulmohar Colony, Indore, Office Premises situated at 114-116 Trade House, 14/3 South Tukoganj, Indore and Office Premises situated at 315-316 Trade House, 14/3 South Tukoganj, Indore

a.(ii) Short Term Borrowings aggregating to Rs.16096.18 Lacs(Pre. Year Rs.10616.39 Lacs, As on 1st April 2016 Rs. 8754.24 Lacs) are secured by Personal Guarantee of Directors Mr. Mukesh Sangla & Mr. Saurabh Sangla and Mrs. Monika Sangla and corporate guarantee of M/s Kamdeep Marketing Private Limited.

b.The Company has availed buyer’s credit outstanding as at 31st March,2018 Rs.3151.43 Lacs (Pre.Year Rs. 4764.09 Lacs, As on 1st April 2016 Rs. 3647.71 Lacs) is guaranteed by the bank against lien in Non Fund Based limit.

c.The Compnay has availed loan from Axis Bank under Channel Financing Scheme, the said facility oustanding as at 31st March, 2018 Rs. 315.12 Lacs (Pre.Year Rs. 239.62 Lacs, As on 1st April 2016,Rs. 140.93 Lacs) is Guaranteed by Directors Mr. Mukesh Sangla and Mr. Saurabh Sangla.

3. Leases (Where company is Lessee)

The Company has taken various premises under operating leases with no restrictions and are renewable/ cancelable at the option of either parties. There is no escalation clause in the lease agreement. There is no sub-leases. There are no restrictions imposed by lease arrangements.

The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.126.84 Lacs (Pre. Year Rs. 109.83 Lacs). The company has not recognized any contingent rent as expense in the statement of profit and loss.

4. Related Party Disclosure

A. Relationships

Key Management Personnel

Shri Mukesh Sangla - Managing Director

Shri Saurabh Sangla - Director

Mr. J.C. Paliwal - Chief Financial Officer

Mrs. Preeti Singh - Company Secretary

B. Relative of Key Managerial Personnel

Smt. Monika Sangla-Wife of Managing Director

C. Other parties / Companies where key managerial persons or their relatives have significant influence and where transaction taken place during the year.

Adroit Industries (India) Limited

Note: Related party relationship is as identified by the Company on the basis of information available

Note 5: First time adoption of Ind AS

First Ind AS financial statements

These are the Company’s first separate financial statements prepared in accordance with Ind AS applicable as at 31 March 2018.

The accounting policies set out in note B have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet as at 1 April 2016 (the date of transition). In preparing its opening Ind AS balance sheet, the Company has restated the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2014 and other relevant provisions ofthe Act (previous GAAP or Indian GAAP) so as to comply in all material respects with Ind AS.

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is as follows:

First-time adoption

Following are the applicable Ind AS 101 optional exemptions and exceptions to retrospective application of Ind AS applied in the transition from previous GAAP to Ind AS.

I) Optional exemptions

a) Property, plant and equipment and intangible assets

Ind AS 101 permits to measure all its property, plant & equipments at their previous GAAP carrying value i.e. being deemed cost represented by Gross Block reduced by accumulated depreciation on April 01, 2016.

II) Exceptions to retrospective application of Ind AS

a) Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP except where Ind AS required a different basis for estimates as compared to the previous GAAP.

De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that 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 applied the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

D) Classification and measurement of financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial instrument meet the condition of Ind AS 109 on the basis ofthe facts and circumstances that exist at the date of transition to Ind AS.

6.1 Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS in accordance with Ind AS 101:

I. Reconciliation of Balance sheet as at July 1, 2015 and March 31, 2016

II. Reconciliation of Statement of Profit and Loss for the year ended March 31, 2016 III. Reconciliation of Equity as at July 1, 2015 and March 31, 2016

The presentation requirements under Previous GAAP differs from Ind AS and hence Previous GAAP information has been regrouped for ease of reconciliation with Ind AS. The Regrouped Previous GAAP information is derived from the Financial Statements of the Company prepared in accordance with Previous GAAP.

6.2 Notes to Reconciliation

1 The Company measures recovery of debtors on Expected Credit Loss Model.The unwinding of discount on account of above upto the date of transition is also recognised in retained earnings. Subsequent unwinding is recognised in statement of profit and loss account.

2 Under previous GAAP, investment in equity instruments were classified into long term and current investments. Long term investments were carried at cost less provision other than temporary in nature. Current investments were carried at lower of cost or fair value. Under Ind AS, these investments are require to be measured at fair value either through OCI (FVTOCI) or through Profit & loss (FVTPL). The company has opted to fair value these investments through other comprehensive income (FVTOCI). Accordingly, resulting fair value change of these investments have been recognised in Other Equity under Equity Instruments through other comprehensive income as at the date of transition and subsequently in the statement of profit & loss in other comprehensive income for the year.

3 The company has issued two class of preference shares bearing 2% and 5% coupon rate.For compound financial instruments that have both equity as well as liability component, Ind AS 32 requires splitting the two components and separately recognizing ‘equity component of compound financial instrument’. Such equity component is required to be presented as a part of ‘Other Equity’ under this head. On the other hand, the ‘liability component of compound financial instrument’ is required to be presented as a part of ‘Borrowings’, accordingly disclosure is given.

4 Ind AS 109 requires transaction costs incurred towards borrowings to be deducted from the transaction value on initial recognition. These cost are recognised in profit & loss over the tenure of borrowings as a part of the interest expense by applying effective interest rate method.

5 Under the previous GAAP, dividend proposed by the board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events. Accordingly, provision for proposed dividend including dividend distribution tax was recognised as liability. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the general meeting.Accordingly liability for proposed dividend as at 1st April,2016 included under provisions as per previous GAAP have been reversed with corrosponding adjustments to retained earnings.Consequently total equity increased by the amount of proposed dividend and related dividend distribution tax.

6 Deferred Tax have been recognized on adjustments made on transition to IND AS on 1st April,2016 to retained earnings.

7 Under Previous GAAP, the cost relating to post employment defined benefit obligation including acturial gain/losses were recognised in profit and loss. Under the Ind AS, actuarial gain/losses on the net defined liability are recognised in the comprehensive income instead of profit and loss

8 Under previous GAAP, the Company accounted for revenue net of trade discounts, sales taxes and excise duties. Under Ind AS, the Company will recognise revenue at fair value of consideration received or receivable. Any sales incentive, cash discounts or rebates in any form given to customers will be considered as reductions from revenue.

Note 7 ‘Financial risk management objectives and policies

Risk management framework

The Company’s activities expose it to a variety of financial risks, including market risk, credit risk and liquidity risk. The Company’s primary risk management focus is to minimize potential adverse effects of risks on its financial performance. The Company’s risk management assessment policies and processes are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls, and to monitor such risks and compliance with the same. Risk assessment and management of these policies and processes are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Board of Directors and the Audit Committee are responsible for overseeing these policies and processes.

a) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates (currency risk) and interest rates (interest rate risk), will affect the companies income or value of it’s holding of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimising the return.

i) Interest rate risk

Interest rate risk is the risk the the fair value or future cash flow of a financial instrument will fluctuate because of changes in market interest rate. Fair value interest rate risk is the risk of changes in fair value of fixed interest bearing financial instrument because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instrument will fluctuate because of fluctuations in the interest rates.

The Company’s exposure to the risk of changes in market interest rates relates primarily to the borrowing from banks and others. Currently company is not using any mitigating factor to cover the interest rate risk.

Interest rate sensitivity

The Company has taken Intercorporate loan at fixed rate of interest and are carried at amortised cost. They are therefore not subject to interest rate risk as defined in Ind AS - 107, since neither the carrying amount nor the future cash flow will fluctuate because of change in market interest rate.

The sensitivity analysis below have been determined based on exposure to interest rates (variable) for borrowing at the end of the reporting period and the stipulated change taking place at the beginning of the financial year and held constant throughout the reporting period in case of term loans that have floating rates. If the interest rates had been 1% higher or lower and all the other variables were held constant, the effect on Interest expense for the respective financial years and consequent effect on companies profit in that financial year would have been as below :

ii) Foreign currency risk

The Company enters into transactions in currency other than its functional currency and is therefore exposed to foreign currency risk. The Company analyses currency risk as to which balances outstanding in currency other than the functional currency of that Company. The company enters in to derivative financial instrument such foreign currency forward contract and option contracts to mitigate the risk of changes in exchange rate on foreign currency exposure.

Following table analysis foreign currency assets and liabilities on balance sheet date.

Sensitivity to foreign currency risk

The following table demonstrates the sensitivity in the USD currencies if the currency rate is increased/(decreased) by 1% with all other variables held constant. The below impact on the Company’s profit before tax is based on changes in the fair value of unhedged foreign currency monetary assets and liabilities at balance sheet date :

(b) Credit risk

Credit risk is the risk that arises from the possibility that the counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss.Financial assets that are subject to such risk, principally consist of trade receivables, Investments and loans and advances. None of the financial insturments of the company results in material concentration of credit risk.Financial assets are written off when there is no reasonable expectation of recovery, however, the Company continues to attempt to recover the receivables. Where recoveries are made, these are recognised in the Statement of Profit and Loss.The impairment for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making these assumptions and selecting the inputs to the impairment calculation, based on the Company’s past history, existing market conditions as well as forward looking estimates at the end of each balance sheet date.

Trade and other receivablesExposures to customers outstanding at the end of each reporting period are reviewed by the Company to determine expected credit losses. Historical trends of impairment of trade receivables do not reflect any significant credit losses. Impaired amounts are based on lifetime expected losses based on the best estimate of the management. Further, management believes that the unimpaired amounts that are past due by more than 180 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk. The impairment loss related to several customers that have defaulted on their payments to the Company and are not expected to be able to pay their outstanding balances, mainly due to economic circumstances. The movement in the allowance for impairment in respect of trade and other receivables during the year was as follows.

Investments

The Company limits its exposure to credit risk by generally investing in counter -parties that have good credit rating . The Company does not expect any losses from non-performance by these counter-parties apart from those already given in financials, and does not have any significant concentration of exposures to specific industry sectors or specific country risks.

(c) Liquidity risk

Liquidity risk is the risk that the Company will not be able to meet its financial obligations as they become due.The Company has obtained fund and non-fund based working capital lines from various banks. The company’s treasury department is responsible for liquidity, funding as well as settlement management. In addition, process and policies related to such risk are overseen by senior management. Management moniters the company’s net liquidity position through rolling forecasts on the basis of expected cash flows.

Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stake holders.The Company manages its capital structure and makes adjustments in light of changes in the financial condition 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 (buy back its shares) or issue new shares.No changes were made in the objectives, policies or processes for managing capital during the year ended 31st March, 2018 and 31st March, 2017.

Note 8 Financial Instruments by Category and fair value heirarchy

Set out below, is a comparison by class of the carrying amounts and fair value of the Company’s financial instruments, other than those with carrying amounts that are reasonable approximations of fair values.The fair values of the financial assets and financial liabilities included in the level 2 and level 3 categories above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

9. Information relating to derivative instruments :-

a. The Company has no foreign currency/forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The company does not use forward contracts for speculative purposes.

b. Foreign exchange currency exposure not covered by derivative instrument or otherwise outstanding as at 31st March 2018 are given below :-

10. Intangible assets under development amounting to 0.45 Lacs (Previous Year 0.45 Lacs, as at 1st April, 2016, 0.45 Lacs) represent fees paid for acquisition of Patent.

11. Interest Income Rs.164.09 Lacs (Pre. Year Rs. 174.19 Lacs) included in Interest Received (Note 27 Other Income) represents interest earned on FDRs pledged with banks for various credit facilities availed by the company.

12. The expenditure required by the company for complying with the provision for CSR Expenditure required under section 135 ofCompanies Act, 2013 is as follows:-

However company has spent Rs. Nil (Pre. Yr. Rs.109.70 Lacs) on account of CSR activities other than capital expenditure during the year (Previous Yr. Nil)

13. Previous year’s figures are regrouped / rearranged wherever considered necessary to make them comparable with current year’s figures.

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Mar 31, 2016

Note :

a. (i) Working Capital Loans from Banks amounting to Rs. 87,54,23,520/- (Pre. Year Rs. 72,84,17,092/-) are secured by hypothecation of stock of raw materials, work in process, finished goods, other current assets and charge on book debts, second pari passu charge on the Fixed Assets (both present and future) of the company, extension of equitable mortgage of the immovable properties situated at Industrial Area Pithampur and Kelodhala, Dewas Naka, Indore and personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of M/s Kamdeep Marketing Private Limited.

(ii) Short Term Borrowings aggregating to Rs. 87,54,23,520/- (Pre. Year Rs. 72,84,17,092/-) are secured by Personal Guarantee of Directors Mr. Mukesh Sangla & Mr. Saurabh Sangla and Mrs. Monika Sangla and corporate guarantee of M/s Kamdeep Marketing Private Limited.

b. (i) During the year Company has availed buyer’s credit as at 31st March 2016 Rs. NIL (Pre. Year 54,66,625/-) is secured by hypothecation of stocks and book debts and by earmarking the letter of credit facilities sanctioned by the banks, personal guarantee of Mr. Mukesh Sangla and Mr. Saurabh Sangla, Directors of the company and Mrs. Monika Sangla and Corporate Guarantee of M/s Kamdeep Marketing Private Limited.

(ii) During the year Company has availed buyer’s credit, the said facility outstanding as at 31 st March 2016 Rs. NIL (Pre. Year 13,23,68,620/-) is secured by lien on Fixed Deposits (included in Balances with banks in deposit accounts in note 16) and balance Rs. 36,47,71,405/- (Pre. Year Rs. 16,95,22,645/-) by earmarking the letter of credit facilities sanctioned by the banks.

c. During the year compnay has availed loan from Axis Bank under Channel Financing Scheme, the said facility outstanding as at 31st March, 2016 Rs. 1,40,93,122/- (Pre. Year Rs. NIL) are Guaranteed by Directors Mr. Mukesh Sangla and Mr. Saurabh Sangla.

d. Interoperate Deposit amounting Rs. 2500000/- is repayable in 91 days.

1. In the opinion of the Board of Directors, Current, Non-Current Assets, Loans and Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.

2. Trade Payable includes bills payable for purchase of goods Rs.1,17,94,70,511 /- (Pre. Yr. Rs. 1,32,57,20,044/-).

3. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

a. Trade Payables includes Rs. 37,61,610/- (Previous Year Rs. 51,233/-) amount payable to Micro and Small Enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME).

4. Leases (Where company is Lessee)

The Company has taken various premises under operating leases with no restrictions and are renewable/ cancelable at the option of either parties. There is no escalation clause in the lease agreement. There is no sub-leases. There are no restrictions imposed by lease arrangements.

5. During the year company has made sales on consignment basis Rs.90,87,52,348/- (Pr. Yr. Rs.1,71,66,15,251/-) commission income from which is included in sales of services.

6. Intangible assets under development amounting to Rs 45,000 (Previous Year 45000) represent fees paid for acquisition of Patent.

7. Interest Income Rs. 2,13,64,152/- (Pre. Year Rs. 3,57,20,715/-) included in Interest Received (Note 20 Other Income) represents interest earned on FDRs pledged with banks for various credit facilities availed by the company.

8. Income Tax authorities have carried out a search u/s 132 of the Income Tax Act at the premises of the company and others in November 2011. The Demand raised by Assessing Officer has been substantially been reduced in First Stage of Appeal i.e. CIT (Appeal) and Second Stage of Appeal i.e. ITAT. Some of the issues has been redirected to Assessing Officer for Re-examination which in the opinion of the management and consultants are either to be deleted or substantially reduced and accordingly no provision has been made for the liability and disclosed as contingent / disputed liability.

9. Previous year’s figures are regrouped / rearranged wherever considered necessary to make them comparable with current year’s figures.

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Mar 31, 2015

1. Pursuant to enactment of new Companies Act 2013 and as per the Schedule II of the Companies Act 2013; with effect from 1st April 2015 Company has revised the useful life of fixed Assets for providing depreciation on it. Accordingly, carrying amount as on 1st April 2014 has been depreciated over the remaining revised useful life of the fixed assets. Due to this change the depreciation for the year ended 31st March, 2015 is lower by Rs. 96,17,670 and profit before tax for the year ended 31st March, 2015 is higher to the extent of Rs. 96,17,670. In accordance with transitional provision in respect of assets whose useful life is already exhausted as on 1st April 2014, depreciation Rs. 4,44,985 (Net of tax expenses of Rs. 235504) has been recognized in the opening balance of retained earnings in accordance with the requirements of Schedule II of the Act.

2. Intangible assets under development amounting to Rs 45,000 represent fees paid for acquisition of Patent.

3. Interest Income Rs.3,57,20,715/- (Pre. Year Rs.4,09,27,293) included in Interest Received (Note 20 Other Income) represents interest earned on FDRs pledged with banks for various credit facilities availed by the company.

4. Income Tax authorities have carried out a search u/s 132 of the Income Tax Act at the premises of the company and others in November 2011. The Demand raised by Assessing Officer has been substantially been reduced in First Stage of Appeal i.e. CIT (Appeal) further in the opinion of the management and consultants the demand raised is likely to be either deleted or substantially reduced and accordingly no provision has been made for the liability and disclosed as contingent / disputed liability.

5. Previous year's figures are regrouped / rearranged wherever considered necessary to make them comparable with current year's figures.

6. Company Information, Significant Accounting policies and practices adopted by the Company are disclosed as under :

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Mar 31, 2014

1. Contingent Liabilities and Commit merits (to the extent not provided for)

A. Contingent Liabilities 2013-14 2012-13

a. Outstanding Bank Guarantee 9,27,35,795 7,59,70,000

b. Income Tax/ Sales tax/ Excise Duty demand 33,18,55,700 35,41,844 disputed in appeal (Net of amount paid)

c. Corporate Guarantee given on behalf of others 10,00,00,000 10,00,00,000

B, Commitments

Estimated amount of contracts remaining to be 82,87,205 17,93,217 executed capital commitment (Net of Advance)

2. In the opinion of the Board of Directors, Current. Non-Current Assets, Loans and Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.

3. Trade Payable includes bills payable for purchase of goods Rs. 1,20,54,56,482/- (Pre. Yf Rs. 89,95,28,266/-).

4. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

a. Trade Payables includes Rs.2,29,486/- (Previous Year Ps. Nil) amount due to Micro, Small and Medium Enter- prises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME).

c. The information has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

5. Leases (Where company is Lessee)

The Company has taken various premises under operating leases with no restrictions and are renewable/ cancelable at thG option of either parties. There is no escalation clause in the lease agreement. There are no sub-leases. There are no restrictions imposed by lease arrangements,

The aggregate amount of operating lease payments recognized in the statement of prof it and loss is Rs. 80,40,121/- (Pre, Year Rs65,04,016/-). The company has not recognized any contingent rent as expense in the statement of profit and loss.

6. Related Party Disclosure

A. Relationships

Key Management Personnel

Shri Mukesh Sangla - Managing Director

Shri Saurabh Sangla - Director

B. Relative of Key Managerial Personnel

Smt. Monika Sangla - Wife of M. D.

C. Associates

Adroit Industries (India) Limited Note: Related party relationship is as identified by the Company and relied upon by the Auditors

7. During the year company has salGS on consignment basis Re. 140,76,33,513/-(R. Yr. Rs. 117,05,66,493/- }commission income from which is included in sales of services.

8. Information relating to derivative instruments :-

a. The Company has no foreign currency/forward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The company does not use forward contracts for speculative purposes,

9. Income Tax authorities has carried out a search u/s 132 of the Income Tax Act at the premises of the company and others in November 2011. In the opinion of the management and consultant s the demand raised is likely to be either deleted or substantially reduced and accordingly no provision has been made for the liability and disclosed as contingent / disputed liability.

10. The financial statements have been prepared in line with the requirements of Revised Schedule VI of Compa- nies Act, 1956 as intreduced by the Ministry of Corporate Affairs from the financial year ended on 31a March 2012, Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle.

11. Previous year''s figures are regrouped / rearranged wherever considered necessary to make them comparable with current year''s figures.

13. Company Information, Sgnificant Accounting policies and practices adopted by the Company are disclosed as under:

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Mar 31, 2013

1. Contingent Liabilities and Commitments (to the extent not provided for) (Figures in Rs.)

1 A. Contingent Liabilities 2012-13 2011-12

a. Outstanding Bank Guarantee 7,59,70,000 5,09,38,000

b. Income Tax/ Sales tax / Excise Duty demand 35,41,844 45,08,361 disputed in appeal (Net of amount paid)

c. Corporate Guarantee given on behalf of others 10,00,00,000 10,00,00,000

B. Commitments

Estimated amount of contracts remaining to be 17,93,217 executed capital commitment (Net of Advance)

2. In the opinion of the Board of Directors, Current Assets Loans & Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.

3. Trade Payable include bills payable for purchase of goods Rs. 89,95,28,266/- (Pre. Year Rs. 56,95,30,000/-).

4. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

a. Trade Payables includes Rs. Nil (Previous Year Rs. Nil) amount due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Deveopment Act, 2006 (MSME).

b. The details of amount outstanding to Micro, Small and Medium Enterprises are as under:

c. The information has been determhed to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

5. Leases (Where company is Lessee)

The Company has taken various premises under operating leases with no restrictions and are renewable/ cancelable at the option of either parties. There is no escalation clause in the lease agreement. There is no sub-leases. There are no restrictions imposed by lease arrangements.

The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs.65,04/) 16/- (Pre. Year Rs. 54,4 5,6 92/-). The company has not recognized any contingent rent as expense h the statement of profit and loss.

6. Related Party Disclosure

A. Relationships

Key Management Personnel

Shri Mukesh Sangla - Managing Director

Shri Saurabh Sangla - Director

B. Relative of Key Managerial Personnel

Smt. Monka Sangla - Wife of M.D.

C. Associates

Adroit Industries (India) Limited

7. During the year company has sales on consignment basis Rs. 117,05,66,493/- (Pre. Yr Rs. 98,18,11,145/-) commission hcome from which is included in sales of services.

8. Information relating to derivative instruments :-

a. The Company has no foreign currency/for ward contracts to hedge its risks associated with foreign currency fluctuations relating to certain firm commitments and forecasted transactions. The company does not use forward contracts for speculative purposes.

b. Foreign exchange currency exposure not covered by derivative instrument or otherwise outstanding as at 31st March 2013 are given below :-

9. The financial statements have been prepared in line with the retirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31sl March 2012. Accordingly, assets and liabilities are classified between current and non -current considering 12month perbd as operating cycle.

10. Previous year''s figures are regrouped /rearranged wherever considered necessary to make them comparable with current year''s figures.

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Mar 31, 2012

1. Contingent Liabilities 2011-12 2010-11

a. Bank Guarantee 50938000 21150000

b. Income Tax/ Sales tax / Excise Duty demand 4508361 5105014 disputed in appeal (Net of amount paid )

c. Estimated amount of contracts remaining to be -- 60753329 executed capital commitment (Net of Advance)

d. Corporate guarantee given on behalf of others 100000000 --

2. In the opinion of the Board of Directors, Current Assets Loans & Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.

3. Trade Payable include bills payable for purchase of goods Rs.5695.30 Lacs (Pre. Year Rs. 2305.20 Lacs).

4. Disclosures required under Section 22 of the Micro, Small and Medium Enterprises Development Act, 2006

a. Trade Payables includes Rs. Nil (Previous Year Rs. Nil) amount due to micro and small enterprises registered under the Micro, Small and Medium Enterprises Development Act, 2006 (MSME).

b. No interest is paid / payable during the year to any enterprise registered under MSME.

c. The information has been determined to the extent such parties have been identified on the basis of informa- tion available with the Company. This has been relied upon by the Auditors.

5. Consequent upon action u/s 132(1) of the Income Tax Act, 1961 was carried out during the year at company's premises, factory, residential premises of its directors and its associates the company offered additional income of Rs. 996 lacs in the form of stock of chick peas agricommodity, for taxation to avoid protracted litigation with revenue authorities and included proceeds thereof amounting to Rs. 1045 lacs under the head " Revenue from operation".

6. Leases (Where company is Lessee)

The Company has taken various premises under operating leases with no restrictions and are renewable / cancelable at the option of either parties. There is no escalation clause in the lease agreement. There is no sub- leases. There are no restrictions imposed by lease arrangements. The aggregate amount of operating lease payments recognized in the statement of profit and loss is Rs. 5445692 (Pre. Year Rs.4472440). The company has not recognized any contingent rent as expense in the statement of profit and loss.

7. Related Party Disclosure

A. Relationships

Key Management Personnel

Shri Mukesh Sangla - Managing Director

Shri Saurabh Sangla - Director

B. Relative of Key Managerial Personnel

Smt. Monika Sangla - Wife of M.D.

8. The financial statements have been prepared in line with the requirements of Revised Schedule VI of Companies Act, 1956 as introduced by the Ministry of Corporate Affairs from the financial year ended on 31st March 2012. Accordingly, assets and liabilities are classified between current and non-current considering 12 month period as operating cycle. Consequently, the company has re-classified previous year figures to confirm to this year's classification.

COMPANY INFORMATION

Signet Industries Limited was incorporated on January 29, 1985 under the Companies Act 1956, having its registered office in Mumbai. Company is engaged in Manufacturing of Micro Irrigation System (DRIP), Sprinkler Pipe / PVC Pipe & Agro fittings and its Allied Products, all type of House Hold & Plastic Moulded Furniture. The Company's shares listed on The Stock Exchange Mumbai, and Madhya Pradesh Stock Exchange, Indore. The equity shares of the Company have been permitted for trading on the National Stock Exchange of India Ltd. w.e.f. May 30, 2012, pursuant to circular No. 460/2012 dated May 28, 2012, issued by National Stock Exchange and same also traded on Bombay Stock Exchange.

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Mar 31, 2011

1. CONTINGENT LIABILITIES 2010-11 2009-10

a. Bank Guarantee 21150000 10350000

b. Income Tax/ Sales tax /Excise Duty demand disputed in appeal 5105014 3140976 (Net of amount paid)

c. Estimated amount of contracts 60753329 Nil remaining to be executed capital commitment (Net of Advance)

2. In the opinion of the Board of Directors, Current Assets Loans & Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.

3. Sundry creditors include bills payable for purchase of goods Rs.2305.20 Lacs (Pre, Year Rs. 1450.22 Lacs).

4. There are no delay in payment to Micro, Small and Medium enterprises as required under the Micro, Small and Medium Enterprises Development Act, 2006. The information given in Schedule "Current Liabilities" regarding Micro, Small and Medium enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company. This has been relied upon by the Auditors.

5. During the year Company has availed buyer's credit, the said facility outstanding as at 31st March 2011, was Rs. 399.08 lacs (Pre. Year Rs. 92.43 lacs), is guaranteed by bank against ear-marking of drawing power in credit limits. In Balance Sheet the said amount is shown as unsecured loans from Banks in Shcedule D.

6. LEASES (Where company is Lessee)

The Company has taken various premises under cancelable operating leases for its business purpose. These lease agreements are normally renewed on expiry.

7. RELATED PARTY DISCLOSURE

A. RELATIONSHIPS

1. KEY MANAGEMENT PERSONNEL

Shri Mukesh Sangla - Managing Director

Shri Saurabh Sangla - Director

B. RELATIVES OF KEY MANAGERIAL PERSONNEL

Smt. Monika Sangla Wife of M.D.

8. Disclosure as per AS -15 (Revised) 'Employee Benefits':

Reconciliation of opening and closing balances of Defined benefit obligation.

9. Previous years figures have been re-grouped or re-arranged wherever considered necessary.

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Mar 31, 2010

1. CONTTNGNENT LIABILITIES 2009-10 2008-09

a. Bank Guarantee 10350000 --

b. Income Tax/Sales tax/Excise Duty demand 3140976 5934086 disputed in appeal (Net of amount paid)

2. In the opinion of the Board of Directors, Current Assets Loans & Advances have value on realization in the ordinary course of business at least equal to the amount at which they are stated in the Balance Sheet and that the provision for known liabilities is adequate and reasonable.

3. Previous years figures have been re-grouped or re-arranged wherever considered necessary.

4. Balances of creditors, debtors, Bank, deposits and advances are partly confirmed.

5. Sundry creditors include bills payable for purchase of goods Rs. 145021712 (Pre. Year Rs. 282700000).

6. The company has not received information from vendors regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosure relating to amount unpaid as at the year end together with interest paid / payable under this Act have not been given.

7. During the year Company has availed buyers credit, the said facility outstanding as at 31st March 2010, was Rs. 92.43 lacs (Pre. Year Rs. 1717.02 lacs), is guaranteed by bank against pledged of fixed deposits receipts with them and LC limit ear-marking. In Balance Sheet the said amount is shown as unsecured loans from Banks in Shcedule D and the fixed deposit of Rs.95 lacs (Pre, Year Rs. 247 lacs) are included under Bank Balance with scheduled bank in " Deposit Account" Schedule G.

8. During the year company has issued 3243000 equity shares as bonus shares by capitalizing surplus in Profit and Loss account as per resolution passed in General Meeting.

9. LEASES (Where company is Lessee)

The Company has taken various premises under cancelable operating leases for its business purpose. These lease agreements are normally renewed on expiry.

10. The name of the company is changed from Signet Overseas Limited to Signet Industries Limited, vide fresh certificate of incorporation issue by Registrar of companies on dated 11.01.2010.

11. RELATED PARTY DISCLOSURE

A. RELATIONSHIPS

1. KEY MANAGEMENT PERSONNEL

Shri Mukesh Sangla - Managing Director

Shri Saurabh Sangla - Director

B. RELATIVES OF KEY MANAGERIAL PERSONNEL

Smt. Monika Sangla Wife of M.D.

Note : Related party relationship is as identified by the Company and relied upon by the Auditors.

12. Disclosure as per AS -15 (Revised) Employee Benefits:

Reconciliation of opening and closing balances of Defined benefit obligation.