B. The company is paying Anti-Dumping Duty after the same was imposed by Government of India for five years on Soda Ash originating in from (1) China, EU, Kenya, Pakistan, Iran, Ukraine and USA from 03.07.2012 and (2) Turkey and Russia from 18.04.2013. The company has taken up the matter (Mid Term Review) through Trade Association (AIGMF - All INDIA GLASS MANUFACTURER FEDERATION) for removal of these duties on 21.07.2015. DGAD (Director General Anti-Dumping) has for both cases referred as (1) and (2) above, allowed removal of duty on 23.09.2016. However, the matter was challenged in Gujarat High court and accordingly the duty removal is kept in abeyance. On 5th April 2018, DGAD again refused to initiate Sunset Review, thereby proving the grounds that continuation of Anti-Dumping Duty on Soda Ash is not prudent. Though the matter is again reversed by Gujarat High Court, there is a fair chance for removal of Anti-dumping Duty from 2017. In view of judicial uncertainty in the matter, in the accounts for the year 2017-18, the claim is not accounted for and the same has been shown as Contingent Asset.

1._| CAPITALISATION OF EXPENDITURE

The company had capitalized the following expenses of revenue nature incurred for construction of Property, plant and equipment and trial run, to the cost of Property, plant and equipment/capital work-in-progress (CWIP). Consequently, exp

2._| SEGMENT INFORMATION

The Company's exclusive business is manufacturing and selling of Container Glass and as such in the opinion of the management this is the only operating business segment, as per the Indian Accounting Standard (Ind AS) 108 on Operating segment. Thus no separate segment information is disclosed for primary business segment. Secondary information is reported geographically.

3.RELATED PARTY DISCLOSURES

I Names of the related parties and nature of relationship A) Joint Venture Company

HNG Float Glass Limited (Refer Note 2.2.6)

B) Key Managerial Personnels and their relatives.

(i) Mr. Chandra Kumar Somany - Chairman and Non Executive Director (Relative of Key Managerial Personnel) (Till 15th May 2017)

(ii) Mrs. Sudha Somany - Wife of Mr. Chandra Kumar Somany

(iii) Mr. Sanjay Somany - Chairman and Managing Director and Key Managerial Personnel

(iv) Mr. Mukul Somany - Vice Chairman and Managing Director and Key Managerial Personnel

(v) Mr. Rakesh Kumar Sharma - Executive Director and Key Managerial Personnel (Till 28th February 2017)

(vi) Mr. Bharat Somany - Relative of the Director

(vii) Mr. Sujit Bhattacharya - Independent Director (Till 31st March 2017)

(viii) Mr. Ratna Kumar Daga - Independent Director

(ix) Mr. Dipankar Chatterji - Independent Director

(x) Mrs. Rita Bhimani - Independent Director

(xi) Mr. Narayanaswami Sitaraman - Independent Director (w.e.f. 13th April 2017)

C) Enterprises over which any person described in [B (i) to (xi)] above is able to exercise significant influence and with whom the Company has transactions during the year.

AMCL Machinery Limited Mould Equipment Limited Brabourne Commerce Private Limited Rungamattee Trexim Private Limited Saurav Contractors Private Limited Khazana Marketing Private Limited Spotme Tracon Private Limited Spotlight Vanijya Limited

Terms and conditions of transactions with related parties

The sales to and purchases from related parties are made on terms equivalent to those that prevail in arm's length transactions. Outstanding balances at the year-end are unsecured and interest free and settlement occurs in cash. The Company has provided corporate Guarantees to related parties, as disclosed above, towards their borrowing facilities (refer note 2.34.A.2) and no amount/income is being received by the Company in this regard. For the year ended March 31, 2018, the Company has not recorded any impairment allowances in respect of receivables relating to amounts owed by related parties (March 31, 2017: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

4. LEASES

The company has taken certain land on Finance Lease. Carrying Value of Land taken on Lease is Rs, 5056.20 Lakhs (31st March 2017 - Rs, 5121.69 Lakhs).

The Company has acquired certain assets under financial lease, the cost of which is included in the Gross Blocks of Buildings and Vehicles. The lease term is 75 years (Rishikesh and Head Office) and 95 years (In case of Sinnar) for Building. The lease term is 3-5 years for Vehicles, after which the legal title will pass on the Company. The lease has been recognized as an asset at the present value of the minimum lease payments. Minimum lease payments payable in future at the balance sheet date and their present value are as under:

Assets taken under Operating Leases:

Certian office premises, Office equipments and system storage and support are obtained on operating lease. There is no contingent rent in the lease agreements. The lease term is for 1-3 years and is renewable at the mutual agreement of both the parties. There is no escalation clause in the lease agreements. There are no restrictions imposed by lease agreements. There are no sublease and all the leases are cancelable in nature. The aggregate lease rentals are charged as "Rent" in Note '2.30' of the financial statement.

I The Company is incurring losses since Financial Year 2012-2013 which have resulted in reduction of net-worth. Due to depressed market demand and resultant adverse financial performance, the lenders had restructured the term loans w.e.f. December 2014 and laid stipulations thereof which among other things included moratorium in repayment of installments, infusion of equity by Promoters in various periods and fresh valuation of its assets by a Valuer registered with Institute of Valuers. The company has paid Principal for the quarter ended September 2017 and interest thereon till October 2017. However Principal for the quarters ended December 2017 & March 2018 and interest (comprising interest on Term loan and cash credit) for November / December 2017 to March 2018 aggregating to Rs, 13682.34 Lakhs have not been paid. Letter of Credit and interest for November / December 2017 to March 2018 aggregating to Rs, 3470.82 Lakhs has also not been paid on due dates. Penal interest and other claims aggregating to Rs, 237.17 Lakhs has also not been paid. Subsequently, the lenders have asked for fresh projections of profitability and consequent repayment of loans. The company has submitted such projections to the lenders which are under consideration. The company and its promoters are in the process of regularising the above situations. Considering the ameliorative measures taken by the company, expected improvement in the performance of the Company over a period of time and its asset coverage, the accounts of the Company have been prepared on a going concern basis.

The Hon'ble Supreme Court vide its order dated 11th November 2016 has upheld the constitutional validity of levy of Entry Tax. This is being given effect to by the various state governments subject to follow up decisions before various judicial forums and appropriate authorities and the amount of said levy is yet to be determined. Accordingly, the same has not been recognized by the company. In the event of the levy being held sustainable, amount on overall basis in this respect has been estimated to be Rs, 2059 Lakhs (excluding amount of interest if any there against refer note no. 2.34) and the same will be given effect to on determination thereof.

5. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

The Company has a defined benefit gratuity plan. Every employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972. The scheme is funded with the insurance companies.

The Company also extends benefit of compensated absences to the employees, whereby they are eligible to carry forward their entitlement of earned leave for encashment upon retirement/separation. This is an unfunded plan.

The Company has a separate Provident Fund Trust (funded) whereby, all the employees are entitled to benefits as per Provident Fund Act / Trust Deed. Any shortfall for the Trust is borne by the Company, hence the same is treated as a defined benefit scheme.

As per Ind AS "Employee Benefits" (Ind AS - 19), the disclosures of Employee Benefits as defined in the Standard are given below:

The Actuarial Society of India has issued the final guidance for measurement of provident fund liabilities during the quarter ended December 31, 2011. The actuary has accordingly provided a valuation and based on the below provided assumptions there is no shortfall as at 31st March 2018; 31st March 2017.

The Company contributed ' NIL towards provident fund during the year ended March 31, 2018 (' NIL during the year ended March 31, 2017).

b) Defined Benefit Plan

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

The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the act, employee who has completed five years of service is entitled to specific benefit. The level of benefits provided depends on the member's length of service and salary at retirement age.

V. Compensated Absences

The actuarial liability of Compensated Absences (Unfunded) of accumulated privileged leave of the employees of the company as at 31st March 2018 is Rs, 430.30 Lakhs ( 31st March 2017 is Rs, 440.59 Lakhs, 31st March 2016 is Rs, 384.70 Lakhs).

VI. In respect of Gratuity (funded), the funds are managed by the Insurers. Accordingly, the percentage or amount that each major category constitutes the Fair value of total plan assets and effect thereof on overall expected rate of return on asset have not been disclosed.

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

The expected rate of return on plan assets is determined considering several applicable factors, mainly the composition of plan assets held, assessed risks, historical results of return on plan assets and the Company's policy for plan assets management.

The contributions expected to be made by the Company for the year 2018-19 is yet to be determined.

(iii) Fair Value Technique

The fair values of the financial assets and liabilities are included at the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between participants at the measurement date. The following methods and assumptions were used to estimate the fair values:

a) The fair value of cash and cash equivalents, trade receivables, trade payables, current financial liabilities and borrowings approximate their carrying amount largely due to the short-term nature of these instruments. The board considers that the carrying amounts of financial assets and financial liabilities recognized at cost/amortized costs in the financial statements approximates their fair values.

b) Fair Value of Long term debt approximates their carrying value subject to adjustments made for transaction cost.

c) Investments in liquid and short- term mutual funds are measured using quoted market prices at the reporting date multiplied by the quantity held.

6._| FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company's financial liabilities comprise borrowings, capital creditors and trade and other payables. The main purpose of these financial liabilities is to finance the Company's operations. The Company's financial assets include trade and other receivables, cash and cash equivalents, investments at cost/fair value and deposits.

The Company is exposed to market risk, credit risk and liquidity risk. The Company's senior management oversees the management of these risks. The Board of Directors reviews and agrees policies for managing each of these risks, which are summarized below:

I) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and other price risk, such as raw material and fuel price risk . Financial instruments affected by market risk include FVTPL investments, trade payables, trade receivables, etc.

(a) Foreign currency risk

The company undertakes transactions denominated in different foreign currencies primarily in USD and consequently exposed to exchange rate fluctuations. Exchange Rate exposures are managed within approved policy parameters. The carrying amounts of the company's foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period are as disclosed under note no. 2.36 above.

Foreign currency sensitivity

The company is principally exposed to foreign currency risks against USD. Sensitivity of profit or loss arises mainly from USD denominated receivables and payables.

* The above sensitivity do not include foreign currency risk on borrowings amounting to Rs, 617 Lakhs (31st March 2017 - Rs, 640 Lakhs) which are capitalized with the Property, Plant and Equipment and not charged to Statement of Profit and Loss.

(b) Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company's exposure to the risk of changes in market interest rates relates primarily to the Company's long-term debt obligations with floating interest rates.

(c) Raw Material and Fuel Price Risk

The company is impacted by the price volatility of certain commodities like raw materials, packing materials and fuel. The Company is impacted by the price volatility of Fuels like Gas, Furnace Oil, etc. To minimize the risk related to fuel price change, the Company uses alternate fuel based on their market prices. The Company swaps and uses alternate fuels based on the cost of energy efficiency and, hence, quantification of sensitivity is not practical. To mitigate the volatility in market price of major raw materials, the company has entered into fixed price contract.

II) Credit risks

Credit risk is the risk that counterparty 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).

Trade receivables

Credit quality of a customer is assessed based on an appraisal of customer creation form and individual credit limits are defined in accordance with this assessment and performance of the customer. Outstanding customer receivables are regularly monitored.

An impairment analysis is performed at each reporting date on an individual basis for all the customers. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 2.7. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are located in several geographical locations.

III) Liquidity Risk

The Company's objective is to at all times maintain optimum level of liquidity to meet its cash and collateral requirement at all times. The need of the funds of the company are being met by internal accrual and borrowings. The short and medium term requirements are met through the committed lines of credit.

7. CAPITAL MANAGEMENT

For the purpose of the Company's capital management, capital includes issued equity capital, share premium and all other reserves attributable to the equity holders of the Company. The primary objective of the Company's capital management is to maximize the shareholder value. The Company manages its capital structure and makes adjustments in line with changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares or sale assets to reduce debt. The Company monitors capital using a gearing ratio, which is net debt divided by total capital plus net debt. The company includes within net debt, interest bearing long term loans and borrowings less cash and cash equivalents.

The capital structure of the Company consists of Rs, 14664.98 Lakhs (Refer Note No. 2.13 & 2.14). The company is not subject to any externally imposed capital requirements.

8. GEARING RATIO

The Company has long term Debt of Rs, 1,93,277.17 Lakhs as on 31st March 2018 (31st March 2017 : 2,03,944.10 Lakhs). Accordingly the Company has 0.93 gearing ratio as at 31st March 2018 and 0.83 gearing ratio as at 31st March 2017.

9. SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES AND ASSUMPTIONS

The preparation of the Company's financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

10. These financial statements have been approved by the Board of Directors of the Company on 16th May 2018 for issue to the _| shareholders for their adoption.