Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Rental expenses of Rs. 3.45 Lacs (P.Y. Rs. 3.45 Lacs) in respect of obligation under non-cancellable operating leases have been charged to statement of Profit and Loss. Further a sum of Rs. 39.39 Lacs (P.Y. Rs. 26.64 Lacs) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements : (i) The company has taken premises on operating lease, (ii) Lease rentals are charged to the Profit and Loss Account for the year, (iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms, (v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

36 Earning per Share (EPS)

Note: The company did not have any potentially dilutive securities in any of the periods presented.

37 Segment information

37.1 Segment description:

Operating segments are reported in a manner consistent with the internal reporting provided to the Chairman and Managing director who are responsible for allocating resources to and assessing the performance of operating segments. Following Business segments have been considered as primary segments:

a) Building Material segment, which consists of manufacturing and trading of asbestos sheets, flat sheets, non-asbestos flat sheets, accessories for roofing products, doors and other building material.

b) Power Generation segment, which consists of generation of electricity through windmills.

37.2 Segment accounting policies:

In addition to the significant accounting policies applicable to the business segments as set out in note 1 above, the accounting policies in relation to segment accounting are as under:

i. Segment revenue and expenses:

Segment revenue and expenses include the respective amounts identifiable to each of the segments. Unallocable items in segment results include income from bank deposits, Dividend, Profit on sale of investments and corporate expenses.

Notes to the Financial statement for the year ended March 31,2018

ii. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating

cash, trade receivables, inventories and fixed assets (net of allowances and provisions), which are

reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and

consists principally of creditors and accrued liabilities.

The measurement of each segment's revenues, expenses and assets is consistent with the accounting

policies that are used in preparation of the Company's financial statements.

iii. Intersegment revenue:

The company adopts a policy of pricing inter segment revenue at comparable cost to the transferee segment.

(ii) Segment Results Profit / (Loss) before tax and interest from each segment

Notes to the Financial statement for the vear ended March 31,2018

38 Corporate Social Responsibility expenditure

Expenditure incurred on corporate social responsibility activities is Rs. 1.24 Lacs (Previous Year -Rs. 7.24 Lacs) Average net profitless) for last three financial years calculated as per section 198 of Companies Act, 2013 is Rs. (119) Lacs.

39 Financial Instruments and Risk Management A) Accounting classification and fair value :

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

in Lacs

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

The financial instruments are categorised in to three levels based on the inputs used to arrive at fair value measurements as described below-

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Inputs other than the quoted prices included within level 1 that are observable for assets or

liability eitherdirectly or indirectly.

Level 3 - Inputs based on unobservable market data

Management uses its best judgement in estimating fair value of financial instruments. However there are inherent limitations in any estimation techniques. Therefore forsubstantiallyallfinancial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the company could have realised or paid in sale transactions as on respective date. As such the fair value of financial instruments subsequent to the reporting date may be different form the amounts reported at each reporting date.

B) Financial Risk Management

The company has a exposure to the following risks arising from financial instruments -

- Credit risk

- Liquidity risk

- Market risk

i. Risk Management

The Company's senior management oversees the management of these risks. The senior management assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the company.

ii. Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and financial institutions and otherfinancial instruments.

Trade Receivables

Customer credit risk is managed subject to the Company's established policy, procedures and control relating to customer credit risk manangment. Credit quality of a customer is assessed based on an extensive credit rating socrecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

Cash and cash equivalents

Bank deposits are made with reputed banks and hence credit risk associated with it is generally low.

iii. Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time. The company's approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liability when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the comapny's reputation. The table below analyses the company's financial liabilities into relevant maturity grouping based on their contractual maturities

iii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from change in the price of financial instruments. Market risk comprise of three types of risks: interest risk, foreigh currency fluctuation risk and other price risk such as commodity price risk. The objective of market risk management is to manage and control market risk exposure within acceptable parameters while optimizing profits.

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Foreign currency risk

The summary of quantitative data about company's exposure to currency risk is as follows:

Foreign currency sensitivity analysis

The following table demonstrates sensitivity to a reasonable possible change in foreign currency exchange rates with all other variables held constant:

Interest rate risk

The company's exposure to the changes in market interest rate relates to floating rate obligations. The exposure of the company's borrowings to interest rate changes at the end of the reporting period are as follows:

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Interest rate sensitivity analysis

The following table demonstrates sensitivity to a reasonable possible change in interest rates with all other variables held constant

40 Capital Management

The company's objectives when managing capital are to (a) maximize shareholders value and provide benefit to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital.

Forthe purpose of company's capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders.

41 Related party transactions :

List of persons and the relationship with related parties as certified by management with whom transaction have taken place during the year with value of transactions is as follows :

NAME OF THE RELATED PARTY -

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Transactions during the year with related parties

transactions with Mr PL. Patel and Mr. V.L. Patel were included during last year under KMP but in current year transactions with them are included under relatives of KMP as they retired as directors during the year. Hence for KMP and relatives of KMP previous years figures are not comparable. ** Manegerial remuneration includes employers PF contribution but excludes post employment benefit of gratuity and Provision for leave benefit scheme, as separate figures for KMP and relatives of KMP is not available being actuarially detremined on an overall basis.

42 Income Tax

42.1 Reconciliation of tax expenses and accounting profit multiplied by tax rate

42.2 Deferred Tax Liabilities/ (Assets) (net)

The balance comprise of temporary differences attributable to

Movement in deferred tax liablilities

43 First Time adoption of Ind AS Transition to Ind As

These are the company's first financial statements prepared in accordance with Ind AS. For the period upto and including the year ended 31st March, 2017, the company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act, 2013 read together with of the Companies (Accounts) Rules, 2014 (Indian GAAP). Accordingly, the company has prepared financial statements to comply with Ind AS for the year

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

ending 31st March 2018 together with comparative date as at the end for the year ended 31st March, 2017 as described in summary of significant accounting policies. In preparing these financial statements, Company's opening balance sheet was prepared as at 1st April, 2016, the Company's date of transition to Ind AS. This note explains the principle adjustments made by the company in restating with Indian GAAP financial statements, including the balance sheet as at 1 st April, 2016 and financial statements as at and for the year ended 31 st March, 2017.

Ind AS 101 allows first time adopters certain exemptions and exceptions from the retrospective application of certain requirements under Ind AS.

(i) Estimates

An entity's estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with the 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 confirmity with previous GAAP. The Company made estimates for the following item in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI

- Impairment of financial assets based on expected credit loss method

(ii) Classification and measurement of Financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Accordingly the company has applied the above requirement prospectively.

(iii) Deemed Cost

Ind AS 101 permits a first time adpoter to elect to fair value of its property, plant and equipment as recognised in financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition or apply principles of Ind AS retrospectively. Ind AS 101 also permits the first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS. This exepmtion can also be used for intangible assets covered by Ind AS 38.

The company has elected to consider the carrying value of its property, plant and equipment, capital work in progress and intangibles as its deemed cost on the date of transition to Ind AS.