1. CORPORATE INFORMATION

DHP India Limited (“the Company”) is a listed entity incorporated in India. The Company is a mid-sized manufacturing Company of Engineering Goods like Liquified Petroleum Gas Regulator (LP GAS Regulator), Accessories and Parts thereof. The Company is ISO 9001 : 2008 Certified. The Company manufactures various designs of LP Gas Regulators, its Parts and Accessories as per requirement of export markets. As per Section 148 of the Companies Act, 2013 read with Companies (Cost Records and Audit) Rules, 2014, the product of the Company covered under Non-Regulated Sector, which are as below

1.1 Cenvat, Vat and GST Input Credit: Central Excise Duty payment elements, Custom Duty payment elements, Service Tax payment elements, Goods and Services Tax payment elements on Purchase / Import / Reverse Charges payment, whichever applied, covered and allowable as Cenvat Credit, State Vat Credit, GST Credit (IGST/CGST/SGST) are accounted for in the books in the period in which the underlying service received is accounted.

1.2 Taxes on Income : The provision for current income tax is the amount of tax payable on taxable income for the year as determined in accordance with the provisions of the Income Tax Act, 1961. Provision for deferred tax assets/liabilities charged to Statement of Profit and Loss measured on differences of Valuation of Deferred Tax Assets/Liabilities from one Balance Sheet date to next Balance Sheet date.

1.3 Earning per share : The Basic Earning Per Share is computed by dividing the Net Profit/(Loss) after Tax including any Other Comprehensive Income i.e. Total Comprehensive Income, by the weighted average number of equity shares outstanding during the year. Diluted Earning Per Share is computed by divining the Net Profit/(Loss) after Tax including any Other Comprehensive Income i.e. Total Comprehensive Income as adjusted for dividend, interest and other charges to expense or income relating to the dilutive potential equity shares, by the weighted average number of equity shares considered for deriving basic earnings per share and the weighted average number of equity shares which could have been issued on conversion of all dilutive potential equity shares. The Company has not issued any shares during the year end and no extraordinary expenses incurred, hence the basis and diluted earning per shares of before and after extraordinary items are same.

1.4 Dividend and Dividend Tax : As per Ind AS presentation the Dividend and their taxed appropriates from Profit and Loss on actual dividend declaration basis. There are no provisions made for proposed dividend and their taxes, which will be approved in forthcoming Annual General Meeting.

1.5 Hedge accounting : The Company used foreign currency forward contracts to hedge its risk associated with foreign currency fluctuations relating to highly probable forecast transactions. The Company designates such forward exchange contracts in a cash flow hedging relationship by applying the hedge accounting principles set out in Accounting Standard (AS) - 30. This forward exchange contracts are stated at fair value of each reporting date. The MTM (Marked to Market) losses are provided on the Statement of Profit and Loss and the MTM (marked to market) profit, if any are disclosed in the Notes.

1.6 Derivative contracts : The Company enters into derivative contracts in the nature of forward exchange contracts with an intension to hedge its existing assets and liabilities and highly probable transactions. Derivative contracts which are closely linked to the existing assets and liabilities are accounted as per the policy stated for “Foreign currency transactions and translations”. Derivative contracts designated as a hedging instrument for highly probable forecast transactions are accounted as per the policy stated for “Hedge accounting”. The MTM (Marked to Market) losses are recognized in the Statement of Profit and Loss. Gain arising on the same are not recognized, until realized, on grounds of prudence.

1.7 Segment reporting : The Company has only one primary segment i.e. manufacturing of Engineering Goods like Liquified Petroleum Gas Regulator (LP Gas Regulator), accessories and parts thereof. The Secondary segment of its geographical markets like domestics (within India) and export (outside India) are reportable regularly.

1.8 Operating Cycle : Based on the nature of products/activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

2.1 Details on derivatives instruments and unhedged foreign currency exposures

A Only one derivative as "Forward exchange contracts" is open as on 31st March, 2018. These transactions have been undertaken to act as economic hedges for the Company's exposures to various risks in foreign exchange markets and may/may not qualify or designated as hedging instruments. The Forward exchange contracts, which are not intended for trading or speculative purpose but for hedge purposes to establish the amount of reporting currency available at the settlement date of certain receivables. The accounting for these transactions is stated in Notes of accounts. The details of exposures are as below:-

2.2 Corporate Social Responsibility (CSR):

CSR amount to be spent as per Section 135 of the Companies Act, 2013 read with Schedule VII thereof by the Company during the year is Rs. 19,05,000/- (Previous Year Rs.17,41,000/-) and the entire CSR expenses Contributed/paid to Prime Minister national Relief Fund.

2.3 Events after the Reporting period :

The Board of Directors have recommended final equity dividend of Rs.2.50 per fully paid-up equity shares of Rs.10/- each, i.e. @25% of the total Equity Share Capital, aggregating Rs.75 laks plus expected dividend distribution tax of Rs.15.42 lakh for out of profit of Financial Year 2017-18 (year ended 31/03/2018). The actual dividend amount and their taxes will be reflected at the time of actual declaration in AGM.

2.4 Details of Deferred Tax Assets :

(a) During the year, the Company recorded the cumulative net timing difference as a "Deferred Tax Assets” up to 31st March, 2018 of Rs. 25,21,000/- (Previous Year Deferred Tax Liability Rs. 4,30,847/-). The Net Deferred Tax Assets of Rs.29,51,847/- credited to Statement of Profit & Loss for the year ended 31st March, 2018. (Previous Year deferred tax liability debited of Rs.34,50,847/-).

(b) In the current financial year Income Tax Liability for the year ended 31st March, 2018 has been determined after taking after into consideration the benefits available under the provisions of the Income Tax Act, 1961 and accordingly Rs.3,80,95,699/- for Current Year Income tax year has been provided. (Previous year Rs.3,82,97,626/- for Provision for Taxation and a Refund of Rs.15,070/- for earlier year has been provided). The above provision for Income Tax in the opinion of the Management, adequate.

(c) The Income-Tax assessment of the Company has been completed up to Assessment Year 2017-2018. No Scrutity Notice and or any re-opening Notices etc. received from the Income Tax Department.

2.5 Approval of Financial Statements :

The Standalone Ind AS Financial Statements were approved by the Board of Directors of the Company on 14th May, 2018.

2.6 Previous Year Figures :

The above statement is prepared according to the Companies Act, 2013 and Ind AS format. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/reclassified wherever necessary to correspond with the current year’s classification/disclosures.

2.7 Other Information :

Other information required by the Companies Act, 2013 are either nil or not applicable in the circumstances of the Company.