Notes To Account

1 Current Investments

Under previous GAAP, the company accounted for investments in equity shares measured at cost. As per Ind AS, investments investments in equity shares have been revalued at fair value. The resulting fair value changes of these investments have been recognised in profit and loss.

2 Deferred tax recognition

Based on improvements in the performance of the company and increasing profitability as a whole, in the opinion of the Management, deferred tax asset shall be recognised for the carryforward of unused tax losses and unused tax credits to the extent that it is probable that future taxable profit will be available against which the unused tax losses and unused tax credits can be utilised.

3 Retained Earnings

Retained earnings as at 1 April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

4 Accounting of other financial assets and liabilities on amortised cost method under effective rate of interest

Financial assets and liabilities have been valued by applying amortised cost method using Effective Interest Rate as per requirements of Ind AS 109 'Financial Instruments'. Subsequent to the transition date, such valuation difference on financial assets and liabilities has been recognized in statement of profit & loss resulting in increase in interest income by Rs.81,70,947/- and increase in finance cost by Rs. 81,70,947/-fortheyearended 31 March, 2017.

5 Prior Period Items

Under Previous GAAP, prior period items were reflected as part of current year expense or income in the statement of profit & loss. Under Ind AS, material prior period items are adjusted to the period to which they relate and in case they relate to the period earlier than period presented, these are adjusted against opening equity of the earliest period presented. Accordingly, the prior period items of Rs. 2,12,2 58/-have been adjusted against equity as on the transition date i.e. 1 April, 2016 resulting in decrease in other equity as on 1 April, 2016 and Rs. 5,18,849/- have been adjusted against equity as on the 31 March, 2017 resulting in decrease in prof it before tax for the year ended 31 March, 2017.

6 Excise Duty

Under previous GAAP, sale of goods was presented as net of excise duty. However, under Ind AS, sale of goods includes excise duty. Excise duty on sale of goods is separately presented on the face of statement of prof it and loss.

7 Accounting of cash discount given to customers

Under previous GAAP, cash discount were accounted as selling and distribution expenses. Under Ind AS, cash discount are reduced from the revenue from operations.

8 Remeasurement of post employment benefit obligations

As per Ind AS, remeasurement of defined benefit plans have been disclosed under 'Other Comprehensive Income" (OCI), which was being debited to statement of profit and loss under previous GAAP.

9 Other Comprehensive Income

As per Ind AS, re-measurement of defined benefit plans have been disclosed under'Other Comprehensive Income" (OCI). The impact of tax has been disclosed separetely. The re-measurement of defined benefit plans was being debited to statement of profit and loss under previous GAAP.

47. In the opinion of Management, any of the assets other than items of property, plant and equipment, intangible assets and Non-Current Investments have a value on realization in the ordinary course of business at least equal to the amount at which they are stated, unless otherwise stated.

48. Borrowing costs attributable to the acquisition or construction of Qualifying Assets amounting to Rs.Nil/- (Previous Year Rs. Nil/-) is capitalized by the company.

49. The Company has entered into certain operating lease agreements and an amount of Rs. 4,21,800/- (P.Y Rs. 1,60,000/-) paid under such agreements has been charged to the Statement of Profit & Loss. These lease are generally non-cancellable and are renewable by mutual consent on mutually agreed terms. There are no restrictions imposed by such agreements.

50. On periodical basis and as and when required, the Company reviews the carrying amounts of its assets and found that there is no indication that those assets have suffered any impairment loss. Hence, no such impairment loss have been provided in the Financial Year 2017-18 (Previous Year Rs.Nil/-)

51. Previous year's figures have been regrouped and rearranged wherever necessary, to make them comparable with those of current year.