a) Refer Note 11 for information on property, plant and equipment pledged as security by the company.

b) During the year ended 31st March 2018, borrowing costs of Rs. 3.28 lakh (31st March 2017 is Rs. 0.76 lakh) have been capitalised.

c) Deduction / adjustments from gross block and depreciation for the year represents disposal / retirement of asset.

d) On Transition to Ind AS, the carrying value of property, plant and equipment under the previous GAAP have been considered to be the deemed cost under Ind AS.

a) As on 31st March, 2016 pending capitalization pertain to PU Plant and the same is capitalised during the financial year 2016-2017

a) On Transition to to Ind AS, the carrying value of Investment property under the previous GAAP have been considered to be the deemed under Ind AS.

b) No Depreciation is provided on the investment property due to possession not offered by the builder to the company.

Note (a) : Including deposit (ACD) with Uttar Haryana Bijli Vitran Nigam Ltd. Rs. 53.91 lakh and GAIL is Rs. 23.00 lakh)

Note (b) : The Company receive an insurance claim of ‘ 86.03 lakh during 2003-2004 in respect of destruction of a part of factory buildings, plant and machinery and inventory in a fire accident on 23rd/24th November, 2001 which had resulted in book loss of ‘ 135 lakh. Balance claim of ‘ 48.97 lakh has been shown as receivable. A petition against Insurance Company for payment of balance amount with interest has been filed and admitted by Delhi High Court. There are fair chances at the balance claim of ‘ 48.97 lakh will be allowed by the Court in favour of the Company. Final adjustment of Insurance Claim in the accounts will be made after settlement of claim by the Court.

b) Rights, preferences and restrictions attached to shares :

Company has only one class of equity shares having a par value of ‘ 10/-. Each holder of equity shares is entitled to one vote per share. In the event of liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company, after distribution of all preferential amounts. The distribution will be proportion to the number of equity shares held by the shareholders.

Note :

a) Accounts balances of the customers, in whose case(s) confirmation / reconciliation has not been received have been taken as per the balance appearing in the books. Any differences arising on account of such reconciliations, which are not likely to be material, are accounted for as and when these reconciliations are completed.

b) The information as required to be disclosed under The Micro, Small and Medium Enterprises Development Act, 2006 (“the Act”) has been determined to the extent such parties have been identified by the Company, on the basis of information and records supplied by them. This information has been relied upon by the auditors. Disclosure in respect of interest due on delayed payment has been determined only in respect of payments made after the receipt of information, with regards to filing of memorandum, from the respective suppliers. Disclosure as required under Section 22 of the Act, is as under :

Note : 1 - First-time Adoption of Ind AS

The company has prepared its first Financial Statements in accordance with Ind AS for the year ended 31st March 2018. For periods up to and including the year ended 31st March 2017, the Company prepared its financial statements in accordance with Indian GAAP, including accounting standards notified under the Companies (Accounting Standards) Rule, 2006 (as amended). The effective date for Company’s Ind AS Opening Balance Sheet is 1st April 2016 (the date of transition to Ind AS).

The accounting policies set out in Note have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March, 2017 and in the preparation of an opening Ind AS Balance Sheet as at 1st April, 2016 (the Company’s date of transition). According to Ind AS 101, the first Ind AS Financial Statements must use recognition and measurement principles that are based on standards and interpretations that are effective at 31st March, 2018, the date of first-time preparation of Financial Statements according to Ind AS. These accounting principles and measurement principles must be applied retrospectively to the date of transition to Ind AS and for all periods presented within the first Ind AS Financial Statement.

Any resulting differences between carrying amounts of assets and liabilities according to Ind AS 101 as of 1 April 2016 compared with those presented in the Indian GAAP Balance Sheet as at 31st March 2016, are recognized in equity under retained earnings within the Ind AS Balance Sheet.

An explanation of how the transition from previous GAAP to Ind AS has affected the company’s financial position, financial performance and cash flow is set out in the following tables and notes.

Optional exemptions availed and mandatory exceptions.

In the Ind AS Opening Balance Sheet as at 1st April 2016, the carrying amounts of assets and liabilities from the Indian GAAP as at 31st March, 2016 are generally recognized and measured according to Ind AS in effect as on 31st March, 2018. For certain individual cases, however, Ind AS 101 provides for optional exemptions and mandatory exceptions to the general principles of retrospective application of Ind AS. The Company has made use of the following exemptions and exceptions in preparing its Ind AS Opening Balance Sheet :

I Property, plant and equipment & Intangible assets

Ind AS 101 permits a 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, measured as per the previous Gaap and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by Ind AS 38, Intangible Assets.

Accordingly, the company has elected to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value.

Defined Benefit Plan

The employees’ gratuity fund scheme managed by a Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognized each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit to build up to final obligation.

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

4. The expected rate or return on plan assets held, assessed risks, historical results of return on plan assets and the Company’s policy for plan assets management.

5. Provision for retirement gratuity liability as at 31st March, 2018 to all eligible employees, amounting to Rs. 26.90 Lakh has been made as per Actuarial Valuation by LIC of India and an amount of Rs. 26.90 lakh has been paid to LIC of India as contribution for current year up to 31st March, 2018.

Note - 2 - Fair Value Measurement

All financial assets and liabilities viz. security deposits, trade receivables, cash and cash equivalents, claims recoverable, borrowings, trade payables, interest accrued but not due on borrowings, employee related liabilities, payable to related parties and payable for expenses are measured at amortized cost.

This section represents the judgements and estimates made in determining the fair values of the financial instruments that are measured at amortized cost and for which fair values are disclosed in the financial statements along with their respective carrying value.

The carrying amounts of security deposits, short term trade receivables, cash and cash equivalents, claim recoverable, borrowings, trade payables, interest accrued but not due on borrowings, employee related liabilities, payable to related parties and payable for expenses are considered to be the same as their fair values, due to their short-term nature.

Note - 3 Financial Risk Management

The Company’s principal financial liabilities comprise loans and borrowings domestic currency, trade payables and other payables. The main purpose of these financial liabilities is to finance the Company’s operations. The Company’s principal financial assets include trade & other receivables, and cash and short-term deposits that derive directly from its operations.

The Company is exposed to the following risks from its use of financial instruments :

- Credit risk

- Liquidity risk

- Market risk

This note presents information about the Company’s exposure to each of the above risks, the Company’s objectives policies and processes for measuring and managing risk.

a) Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations resulting in a financial loss to the Company. Credit risk arises principally from trade receivables, loans & advances, cash & cash equivalents and deposits with banks and financial institutions.

Trade receivables

On account of adoption of Ind AS 109, the Company uses expected credit loss model to assess the impairment loss or gain. The Company takes into account available external and internal credit risk factors such as credit defaults, and the Company’s historical experience for customers.

A default occurs when in the view of management there is no significant possibility of recovery of receivables after considering all available options for recovery.

Cash and cash equivalents and Deposits with banks

The company has banking operations with scheduled banks regulated by Reserve Bank of India. The risk of default with state regulated entities is considered to be insignificant.

Recoverable from related parties

The company has amount recoverable. The risk of default with entities is considered to be insignificant.

Provision for expected credit losses Financial assets for which loss allowance is measured using life time expected credit losses

The Company has customer with capacity to meet the obligations and therefore the risk of default is negligible or nil. 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 behavior and extensive analysis of customer credit risk. Hence, no impairment loss has been recognised during the reporting periods in respect of trade receivables.

Financial assets for which loss allowance is measured using 12 month expected credit losses

The company has assets where the counter-parties have sufficient capacity to meet the obligations and where the risk of default is very low. Hence based on historic default rates, the Company believes that, no impairment allowance is necessary in respect of above mentioned financial assets.

b) Liquidity risk

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

The Company has an appropriate liquidity risk management framework for the management of short, medium and long term funding and liquidity management requirements. The Company manages liquidity risk by maintaining adequate banking facilities and reserve borrowing facilities by continuously monitoring forecast and actual cash flows.

The Company’s treasure department is responsible for managing the short term and long term liquidity requirements of the Company. Short term liquidity situation is reviewed daily be Treasury. The Board of directors has established policies to manage liquidity risk and the Company’s treasury department operates in line with such policies. Any breaches of these policies are reported to the Board of Directors. Long term liquidity position is reviewed on a regular basis by the Board of Directors and appropriate decisions are taken according to the situation.

c) Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices will affect the Company’s income or the value of its holdings of financial instruments. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return. The Board of directors is responsible for setting up to policies and procedures to manage market risks of the Company.

Interest rate risk

The Company is exposed to interest rate risk arising from long term borrowing with floating interest rate. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowing will fluctuate with changes in interest rate.

Refer Note 11 and 14 for interest rate profile of the Company’s interest-bearing financial instrument at the reporting date.

Note - 4— Segment Information

The Company has presented segment information in the consolidated financial statement which are presented in the same financial report. Accordingly, in terms of Paragraph 3 of Ind AS 108 ‘Operating Segments’, no disclosures related to segments are presented in the standalone financial statements.

Note - 5

Balances of Sundry Debtors, Sundry Creditors, Advances, other Parties and bank balances shown in the Accounts for the financial year 2017-18 are subject to Confirmation/Reconciliation.

Note - 6

In the opinion of the management, the value of assets, other than fixed assets, on realization in the ordinary course of business, will not be less than the value at which these are stated in the Balance Sheet.

Note - 7

As required by Ind AS 36, an assessment of impairment of assets was carried out and based on such assessment, the Company is of the opinion that no case of impairment of assets exists.