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Notes to Accounts of Apar Industries Ltd.

Mar 31, 2023

I) Rupee term loan and foreign currency loan from banks are secured as under:

a) Details of security:

The rupees term loan from Kotak Mahindra Bank is secured by charge first charge on property located at Jharsuguda and Lapanga (Movable & Immovable Fixed Assets)

The Foreign Currency Term Loan from State Bank of India, Tokyo is secured by way of a first charge on movable and immovable fixed assets of the company by way of Hypothecation/Equitable Mortgage of Khatalwad Unit and Office Building (Building No. 4 Corporate park, Chembur). Minimum Fixed Assets Coverage Ratio(FACR) of 1.25 to be maintained during the entire tenor of the loan.

b) Terms of repayment and interest rate of term loan :

In respect of Rupee Term Loan from Kotak Bank, it has a moratorium period of 18 months and loan will be repaid in 10 half yearly installments. The repayment has started from 08 September 2019 onwards, first 2 installments of H 7.50 crore each, next 2 installment of H 8.50 crore each, subsequent next 2 installment of H 10.00 crore each and last 4 installments of H 12.00 crore each. The interest is payable at 8.30% p.a.

In respect of foreign currency term loan from State Bank of India, Tokyo, it has a moratorium period of 18 months and loan will be repaid in 20 quarterly installments. The repayment has started from 05 September 2021 onwards, next installments of H 3.79 crore will be paid in Jun 2022, thereafter next 5 installment of H 5.69 crore each, next 1 installment of H 7.57 crore, next 5 installment of H 13.26 crore each, subsequent 2 installment of H 15.16 crore each and last 3 installments of H 18.95 crore each. The interest is payable at 3 months Libor 1.70% on quarterly basis.

The Company does not have any continuing default as on the Balance Sheet date in respect of repayment of principle and interest.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income and the period over which deferred income tax assets will be recovered.

(i) Defined Contribution Plans:

The Company makes contributions towards provident fund, superannuation fund and other retirement benefits to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

The Company recognised H 2.1 crore (previous year H 1.94 crore) for superannuation contribution and other retirement benefit contributions in the Statement of Profit and Loss.

The Company recognised H 6.47 crore (previous year H 5.13 crore) for provident fund contributions in the Statement of Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(ii) 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 recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation.

The obligation for leave encashment is recognised in the same manner as gratuity. The Company provides for leave encashment liabiltiy as per the acturial valuation carried out as at March 31, 2023. The Company has recognised H 1.27 crore (previous year H 3.44 crore) for leave encashment liability in the Statement of Profit and Loss.

As at March 31, 2023, actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company''s financial statements as at reporting date:

Sensitivity analysis is an analysis which will give the movement in liability if the assumptions were not proved to be true on different count. This only signifies the change in the liability if the difference between assumed and the actual is not following the parameters of the sensitivity analysis.

These plan typically exposes the Company to actuarial risks such as salary risk, investment risk, interest yield risk, logentivity risk etc.

The Company has exposure to the following risks arising from financial instruments:

(A) Credit risk ;

(B) Liquidity risk ; and

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company''s risk management policies. The committee reports to the board of directors.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

(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. It arises principally from amounts receivables from customers and loans and advances. The Company''s export receivables are covered under ECGC credit insurance policy. The Company also takes credit insurance for its domestic receivables. The carrying amount of the following financial assets represent the maximum credit exposure:

At March 31, the maximum exposure (age wise) to credit risk for trade receivables is as follows.

Management believes that the unimpaired amounts which are past due are fully recoverable / receivable.

In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on trade receivables and other advances.

The Company follows ''simplified approach'' for recognition of impairment loss on these financial assets. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition.

The entity has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a division wise provision matrix. The provision matrix takes into account historical credit loss experience, delay in receipt of payments and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows :

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations 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 have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or affecting Company''s reputation.

Maturity profile of financial liabilities

TThe following are the remaining contractual maturities of financial liabilities at the reporting date..

Other non-current financial assets

Other non-current financial assets includes earnest money deposit, security deposits to customers. These advances and deposits were made in continuation of business related activities and are made after review as per company''s policy.

Cash and cash equivalents

The Company holds cash and cash equivalents of H 407.68 Crore (Previous year H 242.65 Crore). The cash and cash equivalents are held with the bank and financial institutions having good credit ratings.

Derivatives

Derivatives are entered with counterparties who have good credit ratings.

The gross inflows/(outflows) disclosed in the above table represent the contractual cash flows relating to the financial liabilities which are not usually closed out before contractual maturity.

Contractual outflow of other non current financial liabilities amounting to H 5.09 crores (Previous year H 3.13 crores) has not been included above as the amount cannot be ascertained on reporting date.

Market risk is the risk that changes in market prices â such as foreign exchange rates, interest rates and equity prices â will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.

The Company is exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and market value of investments. Thus, an exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in the foreign currency.

Commodity risk

The Company is affected by the price volatility of certain commodities viz. Aluminum, Copper and Oil. Its operating activities require the ongoing purchase and manufacture of the conductors, cables and oil and thus requires continuous supply of these commodities. Due to the increase in volatility of the price of the commodities namely aluminum and copper, the Company has entered into forward contracts (for which there is an active market).

Currency risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee (H). The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date.

The Company does not use derivative financial instruments for trading or speculative purposes.

Strenghtening of foreign currency as against H will reduce the net profit while weakning of foreign cyrrency as agaisnst H will increase net profit. Sensitivity analysis is unrepresentative of the inherent foreign exchange risk because the exposure at the end of the reporting period does not reflect the exposure during the year.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing borrowings because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing borrowings will fluctuate because of fluctuations in the interest rates.

The objective of hedge accounting is to represent, in the Company''s financial statements, the effect of the Company''s use of financial instruments to manage exposures arising from particular risks that could affect profit or loss.

Currency risk-

The Company''s risk management policy is to hedge its estimated foreign currency exposure in respect of highly forecasted sales. The Company uses forward exchange contracts to hedge its currency risk. Such contracts are generally designated as fair value hedges. Company''s policy is to match the critical terms of the forward exchange contracts with that of the hedged item.

Commodity risk

The Company''s risk management policy is to mitigate the impact of fluctuations in the aluminium/copper prices on highly forecast purchase transactions. The Company uses fowards contract to hedge its commodity risk. Such contracts are generally designated as cash flow hedges.

Interest rate

The Company''s risk management policy is to mitigate its interest rate risk exposure on floating rate borrowings by entering into fixed-rate instruments like interest rate swaps to eliminate the variability of cash flows attributable to movements in interest rates. Such hedges are designated as cash flow hedges.

For derivative contracts designated as hedge, the Company documents at inception the economic relationship between the hedging instrument and the hedged item, the hedge ratio, the risk management objective for undertaking the hedge and the methods used to assess the hedge effectiveness. The hedging book consists of transactions to hedge balance sheet assets or liabilities. The tenor of hedging instrument may be less than or equal to the tenor of underlying hedged asset or liability.

Financial contracts designated as hedges are accounted for in accordance with the requirements of Ind AS 109 depending upon the type of hedge.

Hedge effectiveness is ascertained at the time of inception of the hedge and periodically thereafter. The Company assesses hedge effectiveness both on prospective and retrospective basis. The prospective hedge effectiveness test is a forward looking evaluation of whether or not the changes in the fair value or cash flows of the hedging position are expected to be highly effective on offsetting the changes in the fair value or cash flows of the hedged position over the term of the relationship.

On the other hand, the retrospective hedge effectiveness test is a backward-looking evaluation of whether the changes in the fair value or cash flows of the hedging position have been highly effective in offsetting changes in the fair value or cash flows of the hedged position since the date of designation of the hedge. Hedge effectiveness is assessed through the application of critical terms match method/Dollar offset method. Any ineffectiveness in a hedging relationship is accounted for in the statement of profit and loss

The Company, inter alia, takes into account the following criteria for constructing a hedge structure as part of its hedging strategy:

(a) The hedge is undertaken to reduce the variability in the profit & loss i.e the profit or loss arising from the hedge structure should be lesser than the profit & loss on the standalone underlying exposure. In case of cash flow hedge for covering interest rate risk the hedge shall be only undertaken to convert floating cash flows to fixed cash flows i.e. the underlying has to be a floating rate asset or liability.

(b) At any point in time the outstanding notional value of the derivative deal(s) undertaken for the purpose of hedging shall not exceed the underlying portfolio notional. The hedge ratio therefore does not exceed 100% at the time of establishing the hedging relationship.

(c) At any point in time the maturity of each underlying forming a part of the cluster/portfolio hedged shall be higher than the maturity of the derivative hedging instrument.

For the purpose of the Company''s capital management, capital includes issued capital and other reserves forming part of other equity except cash flow hedge reserve . The primary objective of the Company''s capital management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

Note 44 Contingent Liabilities A) Contingent liabilities not provided for:		(H crore)
^S.^r'' Particulars No.	As at March 31, 2023	As at March 31, 2022
a) Claims against the Company not acknowledged as debts (Refer Note 1)
i) Demand/ Show cause-cum-demand notices received and contested by the Company with the relevant appellate authorities:
Excise duty	8.26	7.08
GST	-	15.39
Customs duty	2.08	2.40
Sales tax	12.06	12.99
Income tax	20.28	10.74
ii) Arbitration award regarding dispute of alleged contractual nonperformance by the Company, against which the Company is in appeal before Bombay High Court.	13.84	15.00
iii) Labour matters	0.05	0.05
iv) Others	7.33	17.13
b) Corporate Guarantees (Refer Note 2)
i) Guarantee given by the Company for credit facilities enjoyed by Petroleum Specialities Pte Ltd.,a wholly-owned subsidiary	-	3.79
ii) Guarantee given by the Company for term loan facilities enjoyed by Petroleum Specialities FZE, a downstream subsidiary company	811.43	450.97
B) Capital commitments		(H crore)
^S.^r. Particulars No.	As at March 31, 2023	As at March 31, 2022
a) Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances)	139.78	39.63

Notes:

1 It is not practicable for the Company to estimate the timing of the cash outflows, if any, in respect of the matters in note a (i) to a

(iv) mentioned in A, pending resolution of the arbitration/appallate proceedings. The liability mentioned as aforesaid includes interest except in cases where the Company has determined that the possibility of such levy is very remote.

2 The cash outflows in respect of Corporate Guarantees mentioned in note b of A, could generally occur upto the period over which the validity of such guarantees extends or it could occur any time during the subsistence of the borrowing to which the guarantees relate.

3 The Company does not expect any reimbursements in respect of the above contingent liabilities.

ii Disaggregated revenue

The chief operating decision maker monitors the operating results of its business segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on Profit or Loss and is measured consistently with profit or loss in the financial statements. Operating segments have been identified on the basis of nature of products / services.

The Company enters into derivative transactions under International Swaps and Derivatives Association (ISDA) master netting agreement. In general, under such agreements the amounts owed by each counterparty on a single day in respect of all transactions outstanding in same currency are aggregated into a single net amount that is payable by one party to other.

In certain circumstances e.g. when a credit event such as default occurs all outstanding transactions under the agreement are terminated, the termination value is assessed and only a net amount is payable in the settlement of all transactions.

The ISDA master netting agreement do not meet the criteria for offsetting in the balance sheet. This is because the Company does not have currently legally enforceable right to offset recognized amounts, because the right to offset is enforceable only on default.

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(ii) The Company did not have any material transactions with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the financial year.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company has not traded or invested in crypto currency or virtual currency during the period/year.

(v) The Company has not advanced or loaned or invested funds to any other person / persons or entity / entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of The Company (Ultimate beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company has not received any funds from any person / persons or entity / entities, including foreign entities (funding party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the ultimate beneficiaries,

vii) The Company has no transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

viii) The Company is not declared as wilful defaulter by any bank or financial institution or other lender.

ix) During the year company has not entered into any scheme of arrangement.

Mar 31, 2022

f Terms/rights attached to equity shares

i) The Company has one class of equity shares having a par value of ''10 per share. Each holder of equity shares is entitled to one vote per share.

ii) 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 in proportion to the number of equity shares held by the shareholders.

Events after the reporting date

The Company declares and pays dividends in Indian rupees. The Board of Directors of the Company have recommended final dividend for the financial year 2021 - 22 @ ''15 per share aggregating to ''57.40 crore on 38,268,619 Equity shares of ''10/- each fully paid. This will be paid after approval by shareholders at the ensuing Annual General Meeting.

The actual dividend amount is dependent upon the relevant share capital outstanding as on the record date / book closure.

Rupee term loan and foreign currency loan from banks are secured as under: a Details of security

i The rupees term loan from Kotak Mahindra Bank is secured by charge on property located at Jharsuguda and Lapanga (Movable & Immovable Fixed Assets)

ii The Foreign Currency Term Loan from State Bank of India, Tokyo is secured by way of a First Charge on movable and immovable fixed

assets of the company by way of Hypothecation/Equitable Mortgage of Khatalwad Unit and Office Building (Building No. 4 Corporate

park, Chembur). Minimum Fixed Assets Coverage Ratio(FACR) of 1.25 to be maintained during the entire tenor of the loan.

b Terms of repayment and interest rate of term loan:

i In respect of Rupee Term Loan from Kotak Bank, it has a moratorium period of 18 months and loan will be repaid in 10 half yearly

installments. The repayment has started from 08 September 2019 onwards, first 2 installments of ?7.50 crore each, next 2 installment

of ''8.50 crore each, subsequent next 2 installment of ''10.00 crore each and last 4 installments of ''12.00 crore each. The interest is payable at 8.30% p.a.

ii In respect of foreign currency term loan from State Bank of India, Tokyo, it has a moratorium period of 18 months and loan will be repaid in 20 quarterly installments. The repayment has started from 05 September 2021 onwards, next installments of ''3.79 crore will be paid in June 2022, thereafter next 5 installment of ''5.69 crore each, next 1 installment of ''7.57 crore, next 5 installment of ''13.26 crore each, subsequent 2 installment of ''15.16 crore each and last 3 installments of ''18.95 crore each. The interest is payable at 3 months Libor 1.70% on quarterly basis.

The Company does not have any continuing default as on the Balance Sheet date in repayment of loans and interest.

Working capital loans from banks are secured by:

(i) hypothecation of specified stocks, specified book debts specified movable fixed assets of the Company.

(ii) first charge by way of equitable mortgage by deposit of title deeds of Company''s specified immovable properties, both present and future.

(iii) ''The Company does not have any continuing default as on the Balance Sheet date in repayment of loans and interest.

(iv) The Company has obtained financing from banks for managing its short term and long term funding requirements. The below table provides the reconciliation between quarterly returns filed by the Company with banks and books of accounts.

Note 38 Employee benefits

(i) Defined Contribution Plans:

The Company recognised ''1.94 crore (previous year ''1.95 crore) for superannuation contribution and other retirement benefit contributions in the Statement of Profit and Loss.

The Company recognised ''5.13 crore (previous year ''4.85 crore) for provident fund contributions in the Statement of Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

(ii) Defined Benefit plan:

The obligation for leave encashment is recognised in the same manner as gratuity. The Company provides for leave encashment liabiltiy as per the acturial valuation carried out as at March 31, 2022. The Company has recognised ''3.44 crore (previous year ''1.45 crore) for leave encashment liability in the Statement of Profit and Loss.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at March 31, 2022. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Risk management framework

Note 40 Financial instruments â Fair values and risk management Credit Risk 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, and arises principally from the Company''s receivables from customers and loans and advances. The Company''s export receivables are covered under ECGC credit insurance policy. The Company also takes credit insurance for its domestic receivable''s in Conductor & Cable division.

Management believes that the unimpaired amounts which are past due are fully collectible.

In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on trade receivables and other advances.

Other non-current financial assets

Cash and cash equivalents

The Company holds cash and cash equivalents of ''242.65 Crore (Previous Year ''183.42 Crore). The cash and cash equivalents are held with the bank and financial institutions, with good credit ratings.

Derivatives

Derivatives are entered with counterparties who have good credit ratings.

Note 41 Financial instruments â Fair values and risk management Liquidity Risk Liquidity risk

Maturity profile of financial liabilities

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments but exclude the impact of netting agreements.

Note 42 Financial instruments â Fair values and risk management Risk Market risk

We are exposed to market risk primarily related to foreign exchange rate risk, interest rate risk and the market value of our investments. Thus, our exposure to market risk is a function of investing and borrowing activities and revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Commodity risk

The Company is affected by the price volatility of certain commodities viz. Aluminum, Copper and Oil. Its operating activities require the ongoing purchase and manufacture of the conductors, cables and Oil and thus requires continuous supply of these commodities. Due to the increase in volatility of the price of the commodities namely Aluminum and Copper, the Company has entered into forward contracts (for which there is an active market).

Currency risk

The Company is exposed to currency risk on account of its borrowings and other payables in foreign currency. The functional currency of the Company is Indian Rupee. The Company uses forward exchange contracts to hedge its currency risk, most with a maturity of less than one year from the reporting date.

Company does not use derivative financial instruments for trading or speculative purposes.

Exposure to currency risk

The summary quantitative data about the Company''s exposure to currency risk as reported to the management of the Company is as follows.

interest rate risk

Exposure to interest rate risk

Company''s interest rate risk arises from borrowings. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

Note 44 Financial instruments â Hedge accounting

Currency risk-

Commodity risk

The Company''s risk management policy is mitigate the impact of fluctuations in the aluminium/copper/zinc prices on highly forecast purchase transactions. The Company uses futures contract to hedge its commodity risk. Such contracts are generally designated as cash flow hedges.

interest rate

For derivative contracts designated as hedge, the Company documents at inception the economic relationship between the hedging instrument and the hedged item, the hedge ratio, the risk management objective for undertaking the hedge and the methods used to assess the hedge effectiveness. The hedging book consists of transactions to hedge Balance Sheet assets or liabilities. The tenor of hedging instrument may be less than or equal to the tenor of underlying hedged asset or liability.

Financial contracts designated as hedges are accounted for in accordance with the requirements of Ind AS 109 depending upon the type of hedge. Hedge effectiveness is ascertained at the time of inception of the hedge and periodically thereafter. The Company assesses hedge effectiveness both on prospective and retrospective basis. The prospective hedge effectiveness test is a forward looking evaluation of whether or not the changes in the fair value or cash flows of the hedging position are expected to be highly effective on offsetting the changes in the fair value or cash flows of the hedged position over the term of the relationship.

Hedge effectiveness is assessed through the application of critical terms match method/Dollar offset method. Any ineffectiveness in a hedging relationship is accounted for in the statement of profit and loss

The Company, inter alia, takes into account the following criteria for constructing a hedge structure as part of its hedging strategy:

(c) At any point in time the maturity of each underlying forming a part of the cluster/portfolio hedged shall be higher than the maturity of the derivative hedging instrument.

a. General information

(a) Factors used to identify the entity''s reportable segments, including the basis of organisation -

The operations of the Company are segmented into Primary Segment (Business Segment) & Secondary Segment (Geographical Segment).

(b) Following are reportable segments Reportable segment

Conductor

Transformer & Specialities Oils Power/Telecom Cables

The Chief Operating Decision Maker monitors the operating results of its Business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on Profit or Loss and is measured consistently with profit or loss in the financial statements. Operating segments have been identified on the basis of nature of products / services.

(d) Segment revenue and results:

The expenses and incomes which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocated income).

(e) Segment assets and liabilities::

Segment assets include all operating assets used by the operating segment and mainly consist of property plant and equipment, trade receivables, cash and cash equivalents and inventories. Segment liabilities primarily include trade payables and other liabilities. Common assets and liabilities which cannot be allocated to any of the segments are shown as a part of unallocable assets / liabilities.

1 It is not practicable for the Company to estimate the timing of the cash outflows, if any, in respect of the matters in note a (i) to a (iv) of claims against the Company not acknowleged as debts mentioned in A - Contingent Liabilities, pending resolution of the arbitration/appallate proceedings. The liability mentioned as aforesaid includes interest except in cases where the Company has determined that the possibility of such levy is very remote.

2 The cash outflows in respect of Corporate Guarantees mentioned in note b of A - contingent liabilities, could generally occur upto the period over which the validity of such guarantees extends or it could occur any time during the subsistence of the borrowing to which the guarantees relate.

Company enters into derivative transactions under International Swaps and Derivatives Association (ISDA) master netting agreement. In general, under such agreements the amounts owed by each counterparty on a single day in respect of all transactions outstanding in same currency are aggregated into a single net amount that is payable by one party to other.

In certain circumstances e.g. when a credit event such as default occurs-all outstanding transactions under the agreement are terminated, the termination value is assessed and only a net amount is payable in the settlement of all transactions.

Note 53 Additional Disclosures

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

(ii) The Company did not have any material transactions with companies struck off under section 248 of the Companies Act, 2013 or Section 560 of the Companies Act, 1956 during the financial year.

(iii) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

(iv) The Company have not traded or invested in Crypto currency or Virtual Currency during the period/year.

(v) The Company have not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(vi) The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party (Ultimate Beneficiaries) or

(b) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries,

vii) The Company has no such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961.

viii) The Company is not declared as willful defaulter by any bank or financial Institution or other lender.

ix) During the year company has not entered into any scheme of arrangement.

Note 55 Figures for previous year have been regrouped, wherever necessary

Mar 31, 2018

1. General information

Apar Industries Limited, founded by Late Shri. Dharmsinh D. Desai in the year 1958 is one among the best established companies in India, operating in the diverse fields of electrical and metallurgical engineering. Over the ensuing years it has been offering value added products and services in Power Transmission Conductors, Petroleum Specialties and Power & Telecom Cables

2. Basis of accounting

These financial statements of the Company have been prepared in accordance with the Indian Accounting Standards (Ind AS) to comply with Section 133 of the Companies Act, 2013 (âthe 2013 Actâ), and the relevant provisions of the 2013 Act/ Companies Act 1956 (âthe 1956 Actâ), as applicable. For all periods up to and for the year ended 31 March 2016, the Company has prepared its financial statements in accordance with accounting standards notified under the section 133 of the Companies Act 2013, read together with paragraph 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP).

Effective April 1, 2016, the Company has adopted all the Ind AS standards and the adoption was carried out in accordance with Ind AS 101, First time adoption of Indian Accounting Standards, with April 1, 2015 as the transition date. The transition was carried out from Indian Accounting Principles generally accepted in India as prescribed under Section 133 of the 2013 Act, read with Rule 7 of the Companies (Accounts) Rules, 2014 (Indian GAAP), which was the previous GAAP.

Accounting policies have been consistently applied except where a newly issued accounting standard is initially adopted or a revision to an existing accounting standard requires a change in accounting policy hitherto in use.

3. Functional and presentation currency

These financial statements are presented in Indian rupees (INR), which is the Companyâs functional currency. All amounts have been rounded off to two decimal places to the nearest crore, unless otherwise indicated.

4. Basis of measurement

The financial statements have been prepared on the historical cost basis except for the following items:

- certain financial assets and liabilities (including mutual fund investments and derivatives) that are measured at fair value;

- defined benefit plans - plan assets measured at fair value;

- share-based payments;

5. Key estimates and assumptions

The preparation of financial statements in accordance with Ind AS requires use of estimates and assumptions for some items, which might have an effect on their recognition and measurement in the (i) balance sheet and (ii) statement of profit and loss. The actual amounts realised may differ from these estimates.

Estimates and assumptions are required in particular for:

- Determination of the estimated useful lives of tangible assets

Useful lives of tangible assets are based on the life prescribed in Schedule II of the Companies Act, 2013. In cases, where the useful lives are different from that prescribed in Schedule II, they are based on technical advice, taking into account the nature of the asset, the estimated usage of the asset, the operating conditions of the asset, past history of replacement, anticipated technological changes, manufacturersâ warranties and maintenance support.

- Recognition and measurement of defined benefit obligations

The obligation arising from defined benefit plan is determined on the basis of actuarial assumptions. Key actuarial assumptions include discount rate, trends in salary escalation, actuarial rates and life expectancy. The discount rate is determined by reference to market yields at the end of the reporting period on government bonds. The period to maturity of the underlying bonds correspond to the probable maturity of the post-employment benefit obligations.

- Recognition of deferred tax assets

Deferred tax assets and liabilities are recognized for the future tax consequences of temporary differences between the carrying values of assets and liabilities and their respective tax bases, and unutilized business loss and depreciation carryforwards and tax credits. Deferred tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, depreciation carry-forwards and unused tax credits could be utilized.

- Recognition and measurement of other provisions

The recognition and measurement of other provisions are based on the assessment of the probability of an outflow of resources, and on past experience and circumstances known at the balance sheet date. The actual outflow of resources at a future date may therefore vary from the amount included in other provisions.

- Discounting of long-term financial assets/liabilities

All financial assets/liabilities are required to be measured at fair value on initial recognition. In case of financial liabilities which are required to subsequently measure at amortised cost, interest is accrued using the effective interest method.

- Fair value of financial instruments

Derivatives and investments in mutual funds are carried at fair value. Derivatives include Foreign Currency Forward Contracts, Commodity futures contracts and Interest Rate Swaps. Fair value of Foreign Currency Forward Contracts and commodity future contracts are determined using the fair value reports provided by merchant bankers and LME brokers respectively. Fair values of Interest Rate Swaps are determined with respect to current market rate of interest.

- Sales incentives and Customer Loyalty Programmes

Rebates are generally provided to distributors or dealers as an incentive to sell the Companyâs products. Rebates are based on purchases made during the period by distributor / customer. The company determines the estimates of benefit accruing to the distributors/ dealers based on the schemes introduced by the Company.

The amount allocated to the loyalty program/ incentive is deferred, and is recognised as revenue when the Company has fulfilled its obligations to supply the discounted products under the terms of the program or when it is no longer probable that the points under the program will be redeemed.

The cash incentives offered under various schemes are in the nature of sales promotion and provisions for such incentives are provided for.

6. Measurement of fair values

The Companyâs accounting policies and disclosures require the measurement of fair values for financial instruments.

The Company has an established control framework with respect to the measurement of fair values. The management regularly reviews significant unobservable inputs and valuation adjustments. If third party information, such as broker quotes or pricing services, is used to measure fair values, then the management assesses the evidence obtained from the third parties to support the conclusion that such valuations meet the requirements of Ind AS, including the level in the fair value hierarchy in which such valuations should be classified.

When measuring the fair value of a financial asset or a financial liability, the Company uses observable market data as far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation techniques as follows.

- Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.

- Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).

- Level 3: inputs for the asset or liability that are not based on observable market data (unobservable inputs).

If the inputs used to measure the fair value of an asset or a liability fall into different levels of the fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level of the fair value hierarchy as the lowest level input that is significant to the entire measurement.

The Company recognises transfers between levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

7. IND AS 115- Revenue from Contracts with Customers

On March 28, 2018, the Ministry of Corporate Affairs had notified Ind AS 115, Revenue from Contract with Customers. The core principle of the new standard is that an entity should recognise revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entityâs contracts with customers.

The standard permits two possible method of transition:

- Retrospective Approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with IND AS 8, Accounting Policies, Changes in Accounting Estimates and Errors.

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch up approach)

The effective date of adoption of IND AS 115 is financial period beginning on or after April 1, 2018.

The Company will adopt the standard on April 1, 2018 by using cumulative catch up transition method and accordingly comparative for the year ending or ended March 31, 2018 will not be retrospectively adjusted. As at the date of this report, the Company management does not expect that the impact of the Companyâs results of operations and financial position will be material upon adoption of IND AS 115.

g. Terms/rights attached to equity shares

i) The Company has one class of equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

ii) The Company declares and pays dividends in Indian rupees. The Board of Directors of the Company has recommended dividend for the financial year 2017 -18 @ Rs.9.50/- per share aggregating to Rs.43.83 crore (including dividend tax Rs.7.47 crore) on 38,268,619 Equity shares of Rs.10/- each fully paid. This will be paid after approval by shareholders at the ensuing Annual General Meeting..

iii) 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 in proportion to the number of equity shares held by the shareholders.

Nature and purpose of reserves

i. Cash flow hedging reserve

The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging instruments used in cash flow hedges.

ii. Securities premium reserve

The Securities Premium used to record the premium received on the issue of shares. It is utilised in accordance with the provisions of the Companies Act 2013. The reserve also comprises the profit on treasury shares sold 16,35,387.

iii. Capital reserve

The reserve comprises of profits/gains of capital nature earned by the Company and credited directly to such reserve.

iv. Capital redemption reserve

Capital redemption reserve represents amounts set aside by the Company for future redemption of capital.

v. General reserve

General reserve forms part of the retained earnings and is permitted to be distributed to shareholders as part of dividend.

Details of security:

a Rupee term loans and foreign currency loan from banks are secured as under:

i The Foreign Currency term loan from Union Bank of India, Hong Kong , is secured by first charge by way of equitable mortgage by deposit of title deeds of Companyâs Athola properties and exclusive hypothecation charge on the assets acquired by the Company with the proceeds of the facility situated at other locations.

ii The rupees term loan from ING Vysya Bank Ltd (now Kotak Mahindra Bank) is secured by first charge by way of mortgage of Companyâs Khatalwad properties and hypothecation of movable plant and machinery at Khatalwad excluding movable machinery hypothecated to ECB Lenders.

iii The rupees term loan from Kotak Mahindra Bank is secured by first charge by way of equitable mortgage by deposit of title deed of Companyâs Jharsuguda properties, (including hypothecation of Plant & Machinery and Mortgage of Land & Building), extension of charge on Khatalwad property (Movable & Immovable Fixed Assets) and hypothecation of identifiable movable fixed assets at other locations. [Hypothecation of identifiable movable fixed assets at other locations to be made available if the asset cover by mortgages at Khatalwad & Jharsuguda properties is less than 1.25 times of outstanding terms loans (including the term loan from ING Vysya Bank Ltd.)]

b Terms of repayment of term loan :

i In respect of Rupee Term Loan from ING Vysya Bank Ltd (now Kotak Mahindra Bank) repayment in 7 quarterly installments till September, 2019, 6 installments of Rs.3.33 crore each and last installment of Rs.3.34 crore.

ii In respect of Foreign Currency Term Loans from Union Bank of India,Hongkong; last installment in May, 2018 Rs.14.88 crore.

iii In respect of Rupee Term Loan from Kotak Bank, it has a moratorium period of 18 months and loan will be repaid in 10 half yearly installments. The repayment will start from 08 September 2019 onwards, first 2 installments of Rs.7.50 crore each, next

2 installment of Rs.8.50 crore each, subsequent next 2 installment of Rs.10.00 crore each and last 4 installments of Rs.12.00 crore each

The Company does not have any continuing default as on the Balance Sheet date in repayment of loans and interest.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

Note :

Working capital loans from banks (secured) are secured by :

(i) hypothecation of specified stocks, specified book debts of the Company.

(ii) first charge by way of equitable mortgage by deposit of title deeds of Companyâs specified immovable properties, both present and future.

The Company does not have any continuing default as on the Balance Sheet date in repayment of loans and interest.

There are no Micro, Small and Medium Enterprises, to whom the company owes dues, which are outstanding for more than 45 days as at the balance sheet date. The above information regarding Micro, Small and Medium Enterprises has been determined to the extent such parties have been identified on the basis of information available with the Company.

A. Basic earnings per share

The calculation of basic earnings per share has been based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding.

B. Diluted earnings per share

There are no dilutive instruments as at 31/03/2018 and as at 31/03/2017, hence diluted earnings per share is same as basic earnings per share.

(i) Defined Contribution Plans:

The Company recognised Rs.1.71 crore (previous year Rs.1.69 crore) for superannuation contribution and other retirement benefit contributions in the Statement of Profit and Loss.

The Company recognised Rs.3.94 crore (previous year Rs.3.58 crore) for provident fund contributions in the Statement of Profit and Loss.

(ii) Defined Benefit Plan:

The Employeesâ 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 recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation.The obligation for leave encashment is recognised in the same manner as gratuity.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at March 31, 2018. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Companyâs financial statements as at balance sheet date:

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Comapanyâs financial statements as at balance sheet date:

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include the fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

Assets that are not financial assets (such as receivables from statutory authorities, export benefit receivables, prepaid expenses, advances paid and certain other receivables) amounting to Rs.270.18 Crore and Rs.181.40 Crore as of March 31, 2018 & March 31, 2017, respectively, are not included.

Our Liabilites that are not financial liabilities (Such as statutory dues payable. deffered revenue, advances from customers & certain other accruals) amounting to Rs.96.91 Crores & Rs.145.89 crores as of March 31, 2018 & March 31, 2017 respectively are not included.

Note: The fair value for financial instruments such as trade receivables, cash and cash equivalents, trade payables etc have not been disclosed because the carrying values approximate the fair value.

B. Measurement of fair values

Valuation techniques and significant observable inputs

The following tables show the valuation techniques used in measuring Level 2 fair values, as well as the significant observable inputs used (if any).

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk ;

- Liquidity risk ; and

- Market risk

Risk management framework

The Companyâs board of directors has overall responsibility for the establishment and oversight of the Companyâs risk management framework. The board of directors are responsible for developing and monitoring the Companyâs risk management.

The Companyâs risk management framework, are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Companyâs activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

Note Financial instruments 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, and arises principally from the Companyâs receivables from customers and loans and advances. The companies export receivables are covered under ECGC credit insurance policy.

The carrying amount of following financial assets represents the maximum credit exposure:

At March 31, the maximum exposure to credit risk for trade and other receivables age wise was as follows.

Management believes that the unimpaired amounts which are past due are fully collectable.

In accordance with Ind-AS 109, the Company applies Expected Credit Loss (ECL) model for measurement and recognition of impairment loss on trade receivables and other advances.

The Company follows simplified approachâ for recognition of impairment loss on these financial assets. The application of simplified approach does not require the Company to track changes in credit risk. Rather, it recognises impairment loss allowance based on lifetime ECLs at each reporting date, right from its initial recognition

The entity has used a practical expedient by computing the expected credit loss allowance for trade receivables based on a division wise provision matrix. The provision matrix takes into account historical credit loss experience and adjusted for forward-looking information. The expected credit loss allowance is based on the ageing of the days the receivables are due and the rates as given in the provision matrix. The provision matrix at the end of the reporting period is as follows :

Other non-current financial assets includes earnest money deposit, security deposits to customers. This advances and deposits were made in continuation of business related activities and are made after review as per companies policy.

Cash and cash equivalents

The Company holds cash and cash equvalents of Rs.235.35 Crore as on 31 March 2018 (Rs.96.66 Crore as on 31 March 2017). The cash and cash equivalents are held with the bank and financial institutions, with good credit ratings.

Derivatives

Derivatives are entered with counterparties who have good credit ratings.

Guarantee given by the Company for credit facilities enjoyed by subsidiary.

Guarantees were given by Apar Industries Limited for credit facilities enjoyed by Petroleum Specialities Pte Ltd.,a wholly-owned subsidiary Rs.81.48 Crore* (Previous Year Rs.81.08 Crore*) and by Petroleum Specialities FZE ,a downstream subsidiary company Rs.263.98 Crore* (Previous Year Rs.275.66 Crore*).

Guarantees to the bank are for punctual performance by the Company of all the Companyâs obligation under facility agreement.

â* Guarantee amount are in USD and are translated using closing rate as on 31 st March.

Liquidity risk

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

Maturity profile of financial liabilities

The gross inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash flows relating to the financial liabilities which are not usually closed out before contractual maturity. The disclosure shows net cash flow amounts for derivatives that are net cash-settled and gross cash inflow and outflow amounts for derivatives that have simultaneous gross cash settlement.

Note HUn Financial instruments - Fair values and risk management Risk 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 Companyâs income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt.

Commodity risk

The Company is affected by the price volatility of certain commodities viz. Aluminum, Copper and Oil. Its operating activities require the ongoing purchase and manufacture of the conductors, cables and Oil and thus requires continuous supply of these commodities. Due to the increase in volatility of the price of the commodities namely Aluminum and Copper, the Company has purchased forward contracts (for which there is an active market).

Currency risk

Company do not use derivative financial instruments for trading or speculative purposes.

Following is the derivative financial instruments to hedge the foreign exchange rate risk as of March 31, 2018:

Exposure to currency risk

The summary quantitative data about the Companyâs exposure to currency risk as reported to the management of the Group is as follows. The following are the remaining contractual maturities of financial liabilities at the reporting date.

Sensitivity analysis

A reasonably possible strengthening (weakening) of the Indian Rupee against all other currencies at 31 March would have affected the measurement of financial instruments denominated in a foreign currency and affected profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores any impact of forecast sales and purchases.

Interest Rate Risk

In order to manage the risk of changing interest rates, the Company has entered into Interest Rate Swaps, whereby it switches its existing floating USD interest rate to USD fixed interest rates. This structure helps it hedge the risk of fluctuations in USD 6 month LIBOR on its USD Loan.

Exposure to interest rate risk

Companyâs interest rate risk arises from borrowings. The interest rate profile of the Companyâs interest-bearing financial instruments as reported to the management of the Company is as follows.

Interest rate sensitivity for fixed rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

A reasonably possible change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency exchange rates, remain constant.

The objective of hedge accounting is to represent, in the Companyâs financial statements, the effect of the Companyâs use of financial instruments to manage exposures arising from particular risks that could affect profit or loss.

Currency risk-

The Companyâs risk management policy is to hedge its estimated foreign currency exposure in respect of highly forecasted sales. The Company uses forward exchange contracts to hedge its currency risk. Such contracts are generally designated as cash flow hedges. Companyâs policy is to match the critical terms of the forward exchange contracts with that of the hedged item.

Commodity risk

The Companyâs risk management policy is mitigate the impact of fluctuations in the aluminium/copper prices on highly forecast purchase transactions. The Company uses futures contract to hedge its commodity risk. Such contracts are generally designated as cash flow hedges.

Interest rate

The Companyâs risk management policy is to mitigate its interest rate risk exposure on floating rate borrowings by entering into fixed-rate instruments like interest rate swaps to eliminate the variability of cash flows attributable to movements in interest rates. Such hedges are designated as cash flow hedges.

For derivative contracts designated as hedge, the Company documents at inception the economic relationship between the hedging instrument and the hedged item, the hedge ratio, the risk management objective for undertaking the hedge and the methods used to assess the hedge effectiveness. The hedging book consists of transactions to hedge Balance Sheet assets or liabilities. The tenor of hedging instrument may be less than or equal to the tenor of underlying hedged asset or liability.

The Company, inter alia, takes into account the following criteria for constructing a hedge structure as part of its hedging strategy:

(c) At any point in time the maturity of each underlying forming a part of the cluster/portfolio hedged shall be higher than the maturity of the derivative hedging instrument.

For the purpose of the Companyâs capital management, capital includes issued capital and other equity reserves . The primary objective of the Companyâs Capital Management is to maximise shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using Adjusted net debt to equity ratio. For this purpose, adjusted net debt is defined as total debt less cash and bank balances

Note Segment reporting A. General Information

(a) Factors used to identify the entityâs reportable segments, including the basis of organisation -

The operations of the Company are segmented into Primary Segment (Business Segment) & Secondary Segment (Geographical Segment).

(b ) Following are reportable segments Reportable segment

Conductor

Transformer & Specialities Oils Power/Telecom Cables

(c ) Identification of segments:

The chief operational decision maker monitors the operating results of its Business Segments separately for the purpose of making decisions about resource allocation and performance assessment. Segment performance is evaluated based on Profit or Loss and is measured consistently with profit or loss in the financial statements. Operating segments have been identified on the basis of nature of products / services.

(d ) Segment revenue and results:

The expenses and incomes which are not directly attributable to any business segment are shown as unallocable expenditure (net of unallocated income).

(e ) Segment assets and liabilities:

A. List of Related Parties

a). Subsidiary Companies:

(1). Petroleum Specialities Pte. Ltd, Singapore (Wholly owned subsidiary of Apar Industries Limited - 100%)

(2). Petroleum Specialities FZE, Sharjah (Wholly owned subsidiary of Petroleum Specialities Pte. Ltd - 100%)

(3). Apar Transmission & Distribution Projects Private Limited (Wholly owned subsidiary of Apar Industries Limited - 100%)

(4). CEMA Optilinks Private Limited (Majority owned subsidiary of Apar Industries Limited - 99%)

b). Key Managerial Personnel:

Mr. K. N. Desai - Chairman & Managing Director Mr. C. N. Desai - Managing Director Mr. V. C. Diwadkar- Chief Financial Officer Mr. Sanjaya Kunder- Company Secretary

c). Chairman having significant influence:

Dr. N. D. Desai - Non Executive Chairman - Upto 16.10.2016

d). Relatives of Key Managerial Personnel

Ms. Maithili N. Desai Mrs. Noopur Kushal Desai Mr. Rishabh K. Desai Ms. Gaurangi K. Desai Mrs. Jinisha C. Desai Mr. Devharsh C. Desai Ms Nitika C. Desai Mrs. Vineeta R. Srivastava Mr. Rajeev Srivastava Ms. Krishangi R. Srivastava Mrs. Vinaya S. Kunder Master Akshat S. Kunder Mrs. Arti V. Diwadkar Mr. Amit V. Diwadkar

e). Entities over which significant influence is exercised by key management personnel/individuals having significant influence

Apar Corporation Private Ltd

Scope Private Limited and itsâ subsidiaries, viz

a) Apar Investment ( Singapore ) Pte. Ltd

b) Apar Investment Inc.

Kushal N. Desai Family Trust Apar Technologies Private Ltd Apar Technologies Pte. Ltd.

Chaitanya N. Desai Family Private Trust Maithili N. Desai Family Private Trust Catalis World Private Ltd

Gayatri Associates AIL Benefit Trust

Maithili Trusteeship Services Private Limited Kushal N. Desai Family Private Trust Narendra D. Desai Family Private Trust

Note WM Master Netting

The following table presents the recognised financial instruments that are offset, or subject to enforceable master netting arrangements and other similar agreements but not offset, as at March 31, 2018 and March 31, 2017.

Mar 31, 2017

Note:-

There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as on 31st March 2017.

A. Basic earnings per share

The calculation of basic earnings per share has been based on the following profit attributable to ordinary shareholders and weighted-average number of ordinary shares outstanding.

(i) Defined Contribution Plans:

The Company recognized Rs. 1.58 crore (previous year Rs. 1.37 crore) for superannuation contribution and other retirement benefit contributions in the Statement of Profit and Loss.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company recognized Rs. 3.58 crore (previous year Rs. 3.11 crore) for provident fund contributions in the Statement of Profit and Loss.

(ii) 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 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 obligation for leave encashment is recognized in the same manner as gratuity.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at March 31, 2017. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognized in the Company''s financial statements as at balance sheet date:

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognized in the Companyâs financial statements as at balance sheet date:

B. Measurement of fair values

Valuation techniques and significant observable inputs

The following tables show the valuation techniques used in measuring Level 2 fair values, as well as the significant observable inputs used (if any).

The Group has exposure to the following risks arising from financial instruments:

- Credit risk ;

- Liquidity risk ; and

- Market risk

Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework. The board of directors are responsible for developing and monitoring the Company''s risk management.

The Company''s risk management framework, are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

Note Financial instruments

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, and arises principally from the Company''s receivables from customers and loans and advances. The companies export receivables are covered under ECGC credit insurance policy.

The carrying amount of following financial assets represents the maximum credit exposure:

Other non-current financial assets

Cash and cash equivalents

The Company holds cash and cash equivalents of Rs. 96.67 Crore as on 31 March 2017 (Rs. 89.45 Crore as on 31 March 2016). The cash and cash equivalents are held with the bank and financial institutions, with good credit ratings.

Derivatives

Derivatives are entered with counterparties who have good credit ratings.

Guarantee given by the Company for credit facilities enjoyed by subsidiary.

Guarantees were given by Apar Industries Limited for credit facilities enjoyed by Petroleum Specialties Pte Ltd.,a wholly-owned subsidiary Rs. 81. 08 Crore* (Previous Year Rs. 82.83 Crore*) and by Petroleum Specialties FZE ,a downstream subsidiary company Rs. 275.66 Crore* (Previous Year Rs. 76.20 Crore*).

Guarantees to the bank are for punctual performance by the Company of all the Company''s obligation under facility agreement.

* Guarantee amount are in USD and are translated using closing rate as on 31 st March.

Note MM Financial instruments - Fair values and risk management Liquidity Risk Liquidity risk

Maturity profile of financial liabilities

Interest Rate Risk

Interest rate sensitivity for fixed rate instruments

Cash flow sensitivity analysis for variable-rate instruments

Note HOT Financial instruments - Hedge accounting

Currency risk-

The Group''s risk management policy is to hedge its estimated foreign currency exposure in respect of highly forecasted purchase transaction. The Group uses forward exchange contracts to hedge its currency risk. Such contracts are generally designated as cash flow hedges. Group''s policy is to match the critical terms of the forward exchange contracts with that of the hedged item.

Commodity risk

The Group''s risk management policy is mitigate the impact of fluctuations in the aluminum/copper prices on highly forecast purchase transactions. The Group uses futures contract to hedge its commodity risk. Such contracts are generally designated as cash flow hedges. Interest rate

The Group''s risk management policy is to mitigate its interest rate risk exposure on floating rate borrowings by entering into fixed-rate instruments like interest rate swaps to eliminate the variability of cash flows attributable to movements in interest rates. Such hedges are designated as cash flow hedges.

Qualifying criteria

For derivative contracts designated as hedge, the Company documents at inception the economic relationship between the hedging instrument and the hedged item, the hedge ratio, the risk management objective for undertaking the hedge and the methods used to assess the hedge effectiveness. The hedging book consists of transactions to hedge Balance Sheet assets or liabilities. The tenor of hedging instrument may be less than or equal to the tenor of underlying hedged asset or liability.

Financial contracts designated as hedges are accounted for in accordance with the requirements of Ind AS 109 depending upon the type of hedge.

Note Hn Capital Management

For the purpose of the Company''s capital management, capital includes issued capital and other equity reserves . The primary objective of the Company''s Capital Management is to maximize shareholders value. The Company manages its capital structure and makes adjustments in the light of changes in economic environment and the requirements of the financial covenants.

The Company monitors capital using Adjusted net debt to equity ratio. For this purpose, adjusted net debt is defined as total debt less cash and bank balances

Note Segment reporting

A. General Information

(a) Factors used to identify the entityâs reportable segments, including the basis of organization -

The operations of the Company are segmented into Primary Segment (Business Segment) & Secondary Segment (Geographical Segment).

(b ) Following are reportable segments

Reportable segment

Conductor

Transformer & Specialties Oils Power/Telecom Cables

(c ) Identification of segments:

(d ) Segment revenue and results:

The expenses and incomes which are not directly attributable to any business segment are shown as unallowable expenditure (net of unallocated income).

(e ) Segment assets and liabilities:

(3). Petroleum Specialties FZE, Sharjah (100% subsidiary of Petroleum Specialties Pte. Ltd)

(4). Apar Transmission & Distribution Projects Private Limited ( 100 % Subsidiary of Apar Industries Limited)

b). Key Managerial Personnel:

Mr. K. N. Desai - Chairman and Managing Director (Chairman w.e.f. 08.11.2016)

Mr. C. N. Desai - Managing Director Mr. V. C. Diwadkar- Chief Financial Officer Mr. Sanjaya Kunder- Company Secretary

c). Chairman having significant influence:

Dr. N. D. Desai - Non Executive Chairman - Upto 16.10.2016

d). Relatives of Key Managerial Personnel Mrs. M. N. Desai

Mrs. Noopur Kushal Desai Mr. Rishabh K. Desai Ms. Gaurangi K. Desai Mrs. Jinisha C. Desai Mr. Devharsh C. Desai Ms Nikita C. Desai Mrs. Vineeta R. Srivastava Mr. Rajeev Srivastava Ms. Krishangi R. Srivastava Mrs. Arti V. Diwadkar Mr. Amit V. Diwadkar Mrs. Vinaya S. Kunder Master Akshat S. Kunder

e). Entities over which significant influence is exercised by key management personnel/individuals having significant influence

Apar Corporation Private Ltd

Scope Private Limited and its'' subsidiaries, viz

a) Apar Investment ( Singapore ) Pte. Ltd

b) Apar Investment Inc.

Apar Technologies Private Ltd Apar Technologies Pte. Ltd.

Chaitanya N. Desai Family Private Trust Maithili N. Desai Family Private Trust

Kushal Chaitanya N. Desai Family Trust (Trust dissolved on 31.03.2017)

Chaitanya N. Desai Family Trust (Trust dissolved on 31.03.2017)

Catalis World Private Ltd Gayatri Associates

Maithili Trusteeship Services Private Limited Kushal N. Desai Family Private Trust Narendra D. Desai Family Private Trust

Note KM SBN_

Details of Specified Bank Notes (SBN) held and transacted during the period from 8th November, 2016 to 30th December, 2016:

Note Explanation to transition to Ind AS

A. Transition to Ind AS

These are Company''s first standalone financial statements prepared in accordance with Ind AS. The company has adopted Indian Accounting Standards (Ind AS) notified by the Ministry of Corporate Affairs with effect from 1st April 2016, with a transition date of 1st April 2015. Ind AS 101-First-time Adoption of Indian Accounting Standards requires that all Ind AS standards and interpretations that are issued and effective for the first Ind AS financial statements which is for the year ended 31st March 2017 for the company, be applied retrospectively and consistently for all financial years presented. Consequently, in preparing these Ind AS financial statements, the Company has availed certain exemptions and complied with the mandatory exceptions provided in Ind AS 101, as explained below. The resulting difference in the carrying values of the assets and liabilities as the transition date between the Ind AS and previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity).

B. Set out below are the Ind AS 101 mandatory exceptions applied in the transition from previous GAAP to Ind AS and optional exemptions availed as applicable.

B.1 Ind AS mandatory exceptions B.1.1 Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with 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 1 April 2015 are consistent with the estimates as at the same date made in conformity with previous GAAP. The company made estimates for following items in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

1. Determination of whether significant risk, rewards and controls are transferred to the customer

2. Fair valuation of financial instruments (including derivative instruments)

3. Impairment of financial instruments

B.1.2 De-recognition of financial assets and liabilities

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to IndAS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition requirements in Ind AS 109 retrospectively from a date of the entity''s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognized as a result of past transactions was obtained at the time of initially accounting for those transactions. The company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

B.1.3 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.

B.2 Ind AS optional exemptions

B.2.1 Deemed cost

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment and Other Intangible assets as recognized 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. Accordingly, the Company has elected to measure all of its property, plant and equipment, intangible assets at their previous GAAP carrying value.

B.2.2 Deemed cost for investments in subsidiaries, joint ventures and associates

Ind AS 101 permits a first time adopter to elect to continue with the carrying value of its investments in subsidiaries, joint ventures and associates as recognized in the financial statements as at the date of transition to Ind AS. Accordingly, the Company has elected to measure all its investments in subsidiaries, joint ventures and associates at their previous GAAP carrying value.

B.2.3 Share based payments

Ind AS 101 permits entities not to apply Ind AS 102 Share-based payment to equity instruments that vested before the date of transition to Ind AS. Accordingly, the Company has elected to measure only the unvested stock options on the date of transition as per Ind AS 102.

B.2.4 Business Combinations

A first-time adopter may elect not to apply Ind AS 103 retrospectively to past business combinations (business combinations that occurred before the date of transition to Ind ASs). Accordingly, the company has not restated any of the past business combinations. for business combinations prior to 1 April 2015, goodwill represents amount recognized under the previous GAAP subject to adjustments as prescribed under Ind AS 101

Note Explanation to transition to Ind AS (continued)

For the purposes of reporting as set out in Note 1, we have transitioned our basis of accounting from Indian generally accepted accounting principles ("IGAAPâ) to Ind AS. The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2017, the comparative information presented in these financial statements for the year ended 31 March 2016 and in the preparation of an opening Ind AS balance sheet at 1 April 2015 (the "transition dateâ).

In preparing our opening Ind AS balance sheet, we have adjusted amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected our financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables. On transition, we did not revise estimates previously made under IGAAP except where required by Ind AS.

Note Explanation to transition to Ind AS (continued)

Notes

a Treasury Shares :-

Under Indian GAAP, Treasury Shares were shown as receivable under other current asset. However as per para 33 of Ind AS 32, Financial Instruments: Presentation, If an entity reacquires its own equity instruments, those instruments (treasury shares'') shall be deducted from equity. b Proposed dividend :-

Under Indian GAAP, proposed dividends are recognized as a liability in the period to which they relate, irrespective of when they are declared. Under Ind-AS, a proposed dividend is recognized as a liability in the period in which it is declared by the Company (usually when approved by shareholders in a general meeting) or paid. c Loan processing fees :

Under Indian GAAP, all costs which are directly attributable and incremental to the origination of borrowing required to be charged to Profit and Loss account. Under Ind AS, this costs required to be reduced from the borrowing at inception and recognize as finance cost in Statement of profit and loss subsequent to the date of transition over the tenure of borrowing. d Income tax impact of above adjustments:

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of the balance sheet approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. e Revenue

Revenue from sale of goods has been recognized only when the risk, rewards and control in the goods passes to the buyer, hence, cost corresponding to the revenue has been deferred.

Excise Duty

Under previous GAAP, revenue from sale of goods was presented net of the excise duty on sales. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. Excise duty is presented in the Statement of Profit and Loss as an expense. This has resulted in an increase in the revenue from operations and expenses for the year ended 31 March 2016. The total comprehensive income for the year ended and equity as at 31 March 2016 has remained unchanged.

Cash incentives - Under IGAAP, cash incentives provided to customers were recorded under Other expenses. Under Ind AS, all such cash incentives given to customers are recorded net off revenue. This has resulted in reduction in sales and other expenses and will have no impact on profit. f Fair Valuation of derivatives:

Under Indian GAAP, the premium and discount on forward contracts were amortized over the contract period. However, under Ind AS all derivatives are measured at fair value at each reporting period and changes therein are recognized in profit and loss.

g Financial Liabilities:

As per Schedule III of companies act, financial liabilities are disclosed as other financial liabilities, which are earlier shown as other current liabilities. h Interest free deposit & Advance rent

As per Ind AS 109, all financial assets and liabilities are to be measured at fair value on initial recognition. Accordingly, security deposits placed / collected in relation to arrangements which are non-cancellable for limited periods, are to be recognized at their respective fair values and the difference between fair value and transaction price is recognized in opening reserves at the transition date and changes thereafter have to be recognized in statement of profit and loss. i Fair valuation of investments:

Under Indian GAAP, the Company accounted for long term investments at cost less provision for other than temporary diminution in the value of investments. Under Ind AS, the Company has designated such investments as FVTPL , which are measured at fair value. At the date of transition to Ind AS, difference between the instruments'' fair value and Indian GAAP carrying amount has been recognized in the statement of profit and loss. j Bill discounted without recourse

Under Ind AS, the trade receivables without recourse have been derecognized and corresponding discounting charges have been expensed as finance cost.

k Employee Benefit

Both under IGAAP and Ind-AS, the Company recognized costs related to its post-employment defined benefit plan on an actuarial basis. Under IGAAP, the entire cost, including actuarial gains and losses, are charged to profit or loss. Under Ind-AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognized immediately in the balance sheet with a corresponding debit or credit to retained earnings through OCI.

Mar 31, 2016

A. Terms/rights attached to equity shares

i) The Company has one class of equity shares having a par value of Rs, 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

ii) During the year ended 31st March 2016, the amount of per share final equity dividend recognised as distributions to equity shareholders is Rs, Nil, ( Previous year Rs, 3.50 ).

iii) During the year ended 31st March 2016, the amount of per share interim dividend recognised as distributions to equity shareholders is Rs, 6.50 (including special dividend @ Rs, 1 per share on account of 100th Birth Anniversary of late Shri Dharmsinh D. Desai, Founder of the Company), ( Previous year rupee Rs, Nil ).

iv) 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 in proportion to the number of equity shares held by the shareholders.

b. Shares reserved for issue under options

The Company provides share-based payment to its employees. During the year ended 31st March 2016, an Employee Stock Option Plan (ESOP) was in existence. The relevant details of the scheme and the grant are as below :

Members'' approval was obtained at the Annual General Meeting held on 9th August, 2007 for introduction of Employee Stock Option Scheme to issue and grant up to 1,616,802 options, but the Board has granted 175,150 options till date.

During the year, Company has alloted 266 equity shares of Rs, 10 each to employees of the Company under Employee stock option plan 2007 at an exercise price of Rs, 207.05 per share.

The Employee stock option plan 2007 was terminated on 26th May, 2015 upon lapse of exercise period of the options.

c. Disclosures as required by Accounting Standard (AS) 14 Accounting for Amalgamations At the hearing held on 23rd October, 2015, the Honorable High Court of Gujarat at Judicature at Ahmadabad have sanctioned the Scheme of Amalgamation of Apar Lubricants Limited (ALL) (wholly-owned subsidiary of the Company) with Apar Industries Limited (AIL) w.e.f. 1st January, 2015 (being the Appointed Date). The effective date of the Scheme is 10th November, 2015, being the date on which Certified Copy of the High Court Order and the Scheme filed with Registrar of Companies, Gujarat.

Pursuant to the Scheme :

(i) The Authorised Share Capital of AIL enhanced by Rs 10 crore and now stands at Rs. 1,019,987,500 divided into 101,998,750 Equity Shares of Rs. 10 each;

(ii) The ALL stand dissolved without winding-up; and

(iii) The Scheme has accordingly been given effect to in the financial statements with effect from the Appointed date. All the assets and liabilities excluding fixed assets of ALL have been transferred to the "Company at the book value as recorded in books of Transferor Company. Fixed assets have been recorded at its estimated market value. The Company has followed ''Purchase Method'' of accounting as per the Accounting Standard (AS) 14 ''Accounting for Amalgamations'' notified under Section 211 (3C) of the Companies Act, 1956 and as per the Scheme approved by the Honourable High Court.

(iv) The net loss Rs, 0.00 crore of the Transferor Company from the appointed date i.e. 1st January, 2015 till 31st March, 2015 has been transferred to the surplus in Statement of profit and loss in the books of the Company, thereby adjusting opening reserves. This loss has been arrived at after charging amortisation of Goodwill of Rs, 0.44 crore (net of tax) for the relevant period.

(v) In view of amalgamation, current year figures are not strictly comparable to those of the previous year.

Note:

Â The Foreign Currency term loan from Credit Agricole CI Bank, Singapore, is secured by exclusive charge on the assets acquired by the Company with the proceeds of the facility.

Â The Foreign Currency term loan from Union Bank of India, Hong Kong , is secured by first charge by way of equitable mortgage by deposit of title deeds of Company''s Athola properties and exclusive hypothecation charge on the assets acquired by the Company with the proceeds of the facility situated at other locations.

Â The rupees term loan from ING Vysya Bank Ltd (now Kotak Mahindra Bank) is secured by first charge by way of equitable mortgage by deposit of title deed of Company''s Khatalwad properties and hypothecation of movable plant and machinery at Khatalwad excluding movable machinery hypothecated to ECB Lenders.

Terms of repayment of term loan :

Â In respect of Foreign Currency Term Loans from Credit Agricole CI Bank, Singapore; in August 2016 Rs, 13.25 crore.

Note:

Working capital loans from banks of Rs, 148.90 crore are secured by : (i) hypothecation of specified stocks, specified book debts of the Company.

(ii) first charge by way of equitable mortgage by deposit of title deeds of Company''s specified immovable properties, both present and future.

Note :

(i) There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as at 31 March 2016.

(ii) Includes deposit of Rs, 4.58 crore under lien.

(iii) Against letters of credit for Company''s import of raw materials and working capital loans.

A. List of Related Parties a). Subsidiary Companies:

(1). Petroleum Specialties Pte. Ltd, Singapore

(2). Quantum Apar Speciality Oil Pty. Ltd (subsidiary of Petroleum Specialities Pte. Ltd)

(3). Apar Lubricants Ltd (formerly Apar Chematek Lubricants Ltd )(Amalgamated w.e.f 1st January 2015)

(4). Petroleum Specialities FZE, Sharjah (100% subsidiary of Petroleum Specialities Pte. Ltd)

b). Key Managerial Personnel:

Mr. K. N. Desai - Managing Director Mr. C. N. Desai - Managing Director Mr. V. C. Diwadkar- Chief Financial Officer Mr. Sanjaya Kunder- Company Secretary

c). Chairman having significant influence:

Dr. N. D. Desai - Non Executive Chairman

d). Relatives of Key Managerial Personnel

Mrs. M. N. Desai Mrs. Noopur Kushal Desai Mr. Rishabh K. Desai Ms. Gaurangi K. Desai Mrs. Jinisha C. Desai Mr. Devharsh C. Desai Ms. Nitika C. Desai Mrs. Vineeta R. Srivastava Mr. Rajeev Srivastava Ms. Krishangi R. Srivastava Mrs. Vinaya S. Kunder Master Akshat S. Kunder Mrs. Arti V. Diwadkar Mr. Amit V. Diwadkar

e). Entities over which significant influence is exercised by key management personnel/individuals having significant influence:

Apar Corporation Private Ltd. Kushal Chaitanya N. Desai Family Trust Scope Private Limited and its'' subsidiaries, viz. Chaitanya N. Desai Family Trust

a) Apar Investment ( Singapore ) Pte. Ltd. Catalis World Private Ltd.

b) Apar Investment Inc. Gayatri Associates Apar Technologies Private Ltd AIL Benefit Trust Chaitanya N. Desai Family Private Trust Maithili Trusteeship Services Private Limited Maithili N. Desai Family Private Trust Kushal N. Desai Family Private Trust Narendra D. Desai Family Private TrusT

Mar 31, 2015

1] Cash flow statement has been prepared under the indirect method as set out in the Accounting Standard [AS] 3 Cash Flow Statements.

2] Purchase of fixed assets includes movement of capital work-in-progress during the year.

3] Cash and cash equivalents represents cash and bank balances and include margin money of Rs. 5.91 crore; [Previous year Rs. 136.06 crore] and unrealised gain of Rs. 0.38 crore; [Previous year unrealised loss of Rs. 0.20 crore] on account of translation of foreign currency bank balances.

4] Previous year''s figures have been regrouped wherever necessary.

Note Contingent Liabilities and Commitments

31 March 2015 31 March 2014

A) Contingent liabilities not provided for:

[a] Claims against the Company not acknowledged as debts -

[i] Demand/ Show cause-cum-demand notices received and contested by the Company with the relevant appellate authorities:

Excise duty [also refer note [iii] below] 7.15 7.19

Service tax 0.20 0.20

Customs duty 4.81 4.81

Sales tax 12.88 12.72

[ii] Arbitration award regarding dispute of alleged contractual non-performance by the 9.28 8.66

Company, against which the Company is in appeal before Bombay High Court.

[iii] Interest on delayed payment of excise duty, [which duty payment was revenue neutral] 4.45 4.45 on certain deemed exports. Department has filed appeal in the Supreme Court against High Court Order in Company''s favour.

[iv] Labour matters 2.12 7.43

[v] Others 6.47 6.35

[b] Bills of exchange discounted 57.84 243.64

[c] Taxation:

Disputed demands of income tax 6.99 6.99

B) Capital commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided 5.80 14.47 for [net of advances]

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 recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit seperately to build up the final obligation.The obligation for leave encashment is recognised in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotions and other relevant factors including supply and demand in the employment market.

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 asset management.

Note Related Party Disclosures

A. List of Related Parties

a) . Subsidiary Companies:

(1) . Petroleum Specialities Pte. Ltd, Singapore

(2) . Quantum Apar Speciality Oils Pty. Ltd. (subsidiary of Petroleum Specialities Pte. Ltd.)

(3) . Apar Lubricants Ltd. (Formarly Apar Chematek Lubricants Ltd./

(4) . Petroleum Specialities FZE, Sharjah (100% subsidiary of Petroleum Specialities Pte. Ltd.) incorporated on 18th November, 2014)

b) . Key Managerial Personnel:

Mr. K. N. Desai - Managing Director & Chief Executive Officer

Mr. C. N. Desai - Managing Director

Mr. V. C. Diwadkar- Chief Financial Officer

Mr. Sanjaya Kunder- Company Secretary

c) . Chairman having significant influence:

Dr. N. D. Desai - Non Executive Chairman

d) . Relatives of Key Managerial Personnel

Mrs. M. N. Desai Mrs. Noopur Kushal Desai Mr. Rishabh K. Desai Ms. Gaurangi K. Desai Mrs. Jinisha C. Desai Mr. Devharsh C. Desai Ms. Nitika C. Desai Mrs. Vineeta R. Srivastava Mr. Rajeev Srivastava Ms. Krishangi R. Srivastava Mrs. Vinaya S. Kunder Master Akshat S. Kunder Mrs. Arti V. Diwadkar Mr. Amit V. Diwadkar

e). Entities over which significant influence is exercised by key management personnel/individuals having significant influence:

Apar Corporation Private Ltd. Scope Private Limited and its'' subsidiaries, viz. a] Apar Investment ( Singapore ] Pte. Ltd. b] Apar Investment Inc. Kushal N. Desai Family Trust Chaitanya N. Desai Family Private Trust Maithili N. Desai Family Private Trust

Kushal Chaitanya N. Desai Family Trust Chaitanya N. Desai Family Trust Catalis World Private Ltd. Gayatri Associates AIL Benefit Trust Maithili Trusteeship Services Private Limited Kushal N. Desai Family Private Trust Narendra D. Desai Family Private Trust

Note Km Segment Information

The Company''s operations predominantly relate to manufacture of Conductors, Transformer/Speciality Oils and Power/Telecom cables which businesses have been identified as primary segments based on the Company''s risk profile and internal reporting structure.

1) During the year, further allocation of unallocated common expenses to segments has resulted in consideration of additional cost in conductor Rs. 7.39 crore, oil Rs. 8.75 crore, cable Rs. 4.41 crore and others Rs. 0.64 crore . Consequently unallocated expenses net of income is lower by Rs. 21.19 crore. The figures for previous year have been regrouped accordingly.

2) In line with organisation structure and internal financial reporting, certain products have been clubbed under conductor segment. Hitherto, these were being reported under cable segment. Accordingly, the following amounts have been regrouped from cable segment to conductor segment for current and previous year.

As per the Accounting Standard [AS] 28 Impairment of Assets, the Company has reviewed the potential generation of economic benefit from its fixed assets and accordingly, necessary impairment loss has been provided in the financial statements.

Mar 31, 2014

Note 1 Contingent Liabilities and Commitments

(Rs. in crore )

31 March 2014 31 March 2013 A) Contingent liabilities not provided for:

(a) Claims against the Company not acknowledged as debts -

(i) Demand/ Show cause-cum-demand notices received and contested by the Company with the relevant appellate authorities:

Excise duty (also refer note (iii) below) 7.19 4.65

Service tax 0.20 0.20

Customs duty 4.81 2.90

Sales tax 12.72 10.54

(ii) Arbitration award regarding dispute of alleged contractual non-performance by the 8.66 7.94 Company, against which the Company is in appeal before Bombay High Court.

(iii) Interest on delayed payment of excise duty, (which duty payment was revenue neutral) 4.45 4.45 on certain deemed exports. Department has fled appeal in the Supreme Court against High Court Order in Company''s favour.

(iv) Labour matters 7.43 6.80

(v) Others 6.35 6.07

(Rs. in crore )

31 March 2014 31 March 2013

(b) Guarantee given by the Company for credit facilities enjoyed by Petroleum Specialities - 54.29 Pte. Ltd., a wholly-owned subsidiary

(c) Bills of exchange discounted 243.64 206.61

(d) Taxation:

Disputed demands of income tax 6.99 6.99

B) Capital commitments

Estimated amounts of contracts remaining to be executed on capital account and not provided for (net of advances) 14.47 13.93

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 recognises 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 obligation for leave encashment is recognised in the same manner as gratuity.

Note 2 Related Party Disclosures

A. List of Related Parties

a). Subsidiary Companies:

(1). Petroleum Specialties Pte. Ltd., Singapore

(2). Quantum Apar Specialty Oil Pty. Ltd. (subsidiary of Petroleum Specialties Pte. Ltd.)

(3). Apar ChemateK Lubricants Ltd. (w.e.f. 26th September, 2012)

b). Joint Venture Company:

Apar ChemateK Lubricants Ltd. (Up to 25th September, 2012, became subsidiary w.e.f. 26th September, 2012)

c). Key Managerial Personnel:

Mr. K. N. Desai - Managing Director Mr. C. N. Desai - Joint Managing Director

d). Chairman having significant influence: Dr. N. D. Desai - Non Executive Chairman

e). Relatives of Key Managerial Personnel Mrs. M. N. Desai Mrs. Noopur Kushal Desai Mr. Rishabh K. Desai Ms. Gaurangi K. Desai Mrs. Jinisha C. Desai Master Devharsh C. Desai Ms. Nitika C. Desai Mrs. Vineeta R. Srivastava Mr. Rajeev Srivastava Ms. Krishangi R. Srivastava

c. Segment revenue and results

The expenses which are not directly attributable to the business segment are shown as unallowable corporate/other expenses (net of miscellaneous income).

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consists principally of fixed assets, debtors and inventories.

Segment liabilities primarily include creditors and other liabilities.

Assets and liabilities that cannot be allocated between the segments are shown as a part of unallowable corporate assets and liabilities respectively.

Note 3

As per the Accounting Standard (AS), 28 Impairment of Assets, the Company has reviewed the potential generation of economic benefit from its fixed assets and accordingly, necessary impairment loss has been provided in the financial statements.

Note 4

H ''0 ''indicate amount less than Rs. 50,000

Note 5

Figures for previous year have been regrouped, wherever necessary.

Mar 31, 2013

NOTE 1 RELATED PARTY DISCLOSURES

A. List of Related Parties

a) Subsidiary Companies:

(1) Petroleum Specialities Pte. Ltd., Singapore

(2) Quantum Apar Speciality Oil Pty. Ltd. (subsidiary of Petroleum Specialities Pte. Ltd.)

(3) Apar ChemateK Lubricants Ltd. (w.e.f. 26.09.2012)

(4) Marine Cables & Wires Private Limited (Amalgamated with Company from 1st April, 2012)

b) Joint Venture Company:

Apar ChemateK Lubricants Ltd. (Upto 25.09.2012, became subsidiary w.e.f. 26.09.2012)

c) Key Managerial Personnel:

Mr. K. N. Desai - Managing Director Mr. C. N. Desai - Joint Managing Director

d) Chairman having significant influence: Dr. N. D. Desai - Non Executive Chairman

e) Relatives of Key Managerial Personnel: Mrs. M. N. Desai

Mrs. Noopur Kushal Desai Mr. Rishabh K. Desai Ms. Gaurangi K. Desai Mrs. Jinisha C. Desai Mr. Devharsh C. Desai Ms. Nikita C. Desai Mrs. Vineeta R. Srivastava Mr. Rajeev Srivastava Ms. Krishangi R. Srivastava

f) Entities over which significant influence is exercised by key management personnel/individuals having significant influence:

Apar Corporation Private Ltd. Kushal Chaitanya N. Desai Family Trust

Scope Private Limited and its'' subsidiaries, viz Chaitanya N. Desai Family Trust

a) Apar Investment ( Singapore ) Pte. Ltd. Catalis World Private Ltd.

b) Apar Investment Inc. Gayatri Associates Kushal N. Desai Family Trust AIL Benefit Trust Apar Technologies Private Ltd.

NOTE 2

Rs. ''0 ''indicate amount less than Rs. 50,000

NOTE 3

As per the Accounting Standard (AS), 28 Impairment of Assets, the Company has reviewed the potential generation of economic benefit from its fixed assets and accordingly, necessary impairment loss has been provided in the financial statements.

Mar 31, 2012

A Terms/rights attached to equity shares

(i) The Company has only one class of equity shares having a par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

(ii) During the year ended 31 March, 2012, the amount of per share dividend recognised as distributions to equity shareholders is Rs. 4/-, (Rs. 6 for FY 2011).

(iii) 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 in proportion to the number of equity shares held by the shareholders.

b. Shares reserved for issue under options

The Company provides share-based payment to its employees. During the year ended 31 March, 2012, an Employee Stock Option Plan (ESOP) was in existence.The relevant details of the scheme and the grant are as below:

Members' approval was obtained at the Annual General Meeting held on 9th August, 2007 for introduction of Employee Stock Option Scheme to issue and grant upto 1,616,802 options but the Board has granted 175,150 options till date.

c. Aggregate number of bonus shares issued for consideration other than cash during the period of five years immediately preceding the reporting date :

The Company has allotted 8,084,008 fully paid Bonus Equity Shares of Rs. 10 each, on 12th January, 2007 by utilisation of Rs. 80.84 million out of Capital Redemption Reserve in the ratio of 1 Bonus Equity Share for 3 equity shares held.

* For Conductor Nalagarh Plant from Himachal Pradesh State Industrial Development Corporation Limited,Shimla.

**Effective 1 st April, 2011, the Company has started accounting for derivative contracts, entered into to hedge commodity/ forex unexecuted firm commitments and highly probable forecast transactions.Gains or losses arising out of fair valuation of derivative contracts are recognised in the statement of profit and loss or balance sheet, as the case may be, after applying the test of hedge effectiveness. Gains or losses are recognised as 'Cash Flow Hedge Reserve1 in the balance sheet when the hedge is effective and where the hedge is ineffective the same is recognised in the Statement of profit and loss. Gain and losses on roll over or cancellation of derivative contract which qualify as effective hedge are recognised in the Statement of profit and loss in the same period in which the hedge item is accounted.

Note:

a) Out of Working capital loans from banks (secured) Rs. 647.96 million are secured by -

- hypothecation of specified stocks, specified book debts of the Company and movable plant and machinery at Nalagarh Unit.

- first charge by way of equitable mortgage by deposit of title deeds of Company's specified immovable properties, both present and future.

- first charge by way of equitable mortgage by deposit of title deeds of certain immovable properties of Apar Corporation Private Limited, a related party.

b) Balance Working capital loans (Secured) Rs. 65.41 million pertaining to erstwhile Uniflex Cables Ltd.(UCL) are secured by hypothecation of stock and debts of the cable division and first charge on the fixed assets of the cable division.

Note:

(a) There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as on 31st March, 2012.

(b) Other payable includes security deposit, book overdraft and advance from customers.

a. Includes Rs. 5.69 million, (Previousyear f5.87 million) for capital expenditure on Research and development (Refer Note 31 (A)).

b. In line with Notification No G.S.R. 914(E) dated 29th December, 2011 issued by the Ministry of Corporate Affairs, Government of India in respect of accounting periods commencing on or after the 1st April, 2011 for an enterprise which had earlier exercised the option under paragraph 46 and at the option of any other enterprise, the exchange differences arising on reporting of long-term foreign currency monetary items at rates different from those at which they were initially recorded during the period, or reported in previous financial statements, in so far as they relate to the acquisition of a depreciable capital asset, can be added to or deducted from the cost of the asset and shall be depreciated over the balance life of the asset.

Accordingly, Rs. 2.56 million (Previousyear f nil) have been capitalised to Plant and Machinery and Rs. 26.94 million, (Previous year Rs. nil) debited to Capital work in progress. (Refer Note 1(l4)(v))

** Marine Cables & Wires Private Limited (MCWPL), a wholly-owned subsidiary of erstwhile Uniflex Cables Limited (UCL) has been declared as a sick industrial company by the Hon'ble Board for Industrial and Financial Reconstruction (BIFR). Draft Rehabilitation Scheme (DRS) for its1 expeditious revival which, inter alia, includes a Scheme of Amalgamation with the Company with cut off date as at 31st March, 2010 has been submitted to BIFR by Operating Agency (OA) appointed by BIFR, for its consideration. The shareholders of the Company have approved the DRS subject to the approval of BIFR. BIFR approval is awaited.

Note: 1. GRATUITY AND OTHER POST-EMPLOYMENT BENEFIT PLANS

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 recognises 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 obligation for leave encashment is recognised in the same manner as gratuity.

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotions and other relevant factors including supply and demand in the employment market.

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 asset management.

Note: 2. RELATED PARTY DISCLOSURES

A. List of Related Parties

a) Subsidiary Companies:

(1) Petroleum Specialties Pte. Ltd., Singapore

(2) Power Oil Specialities Products FZE Sharjah (closed on 21st February, 2011)

(3) Quantum Apar Specialities Oil Pty. Ltd (subsidiary of Petroleum Specialities Pte. Ltd.)

(4) Marine Cables & Wires Private Limited (subsidiary of Apar Industries Limited after amalgamation of Uniflex Cables Ltd.)

b) Joint Venture Company:

Apar Chematek Lubricants Limited

c) Key Managerial Personnel:

Mr. K. N. Desai - Managing Director

Mr. C. N. Desai - Joint Managing Director

d) Chairman having significant influence:

Dr. N. D. Desai - Non Executive Chairman

e) Relatives of Key Managerial Personnel

Mrs. Noopur Kushal Desai

Mrs. Vineeta R. Srivastava

Mr. Rishabh K. Desai

Mrs. Jinisha C. Desai

Ms. Gaurangi K. Desai

Mrs. M. N. Desai

Mr. Rajeev Srivastava

Mr. Devharsh C. Desai

Ms. Krishangi R. Srivastava

Kum. Nikita C. Desai

f) Entities over which significant influence is exercised by key management personnel/individuals having significant influence:

Apar Corporation Private Ltd. Kushal Chaitanya Desai Family Trust

Scope Private Limited and its' subsidiaries, viz Chaitanya N. Desai Family Trust

a) Apar Investment (Singapore) Pte. Ltd. Catalis World Private Ltd.

b) Apar Investment Inc. Gayatri Associates

Kushal N. Desai Family Trust AIL Benefit Trust

Apar Technologies Private Ltd.

Note: 3. SEGMENT INFORMATION

The Company's operations predominantly relate to manufacture of Conductors, Transformer/Speciality Oils and Power/ Telecom cables which businesses have been identified as primary segments based on the Company's risk profile and internal reporting structure.

c. Segment revenue and results

The expenses which are not directly attributable to the business segment are shown as unallocable corporate/other expenses (net of miscellaneous income).

Segment assets and liabilities

Segment assets include all operating assets used by the business segment and consist principally of fixed assets, debtors and inventories. Segment liabilities primarily include creditors and other liabilities.

Assets and liabilities that cannot be allocated between the segments are shown as a part of unallocable corporate assets and liabilities respectively.

Note: 4. Rs. '0 'indicate amount less than Rs. 5,000

Note: 5. As per the Accounting Standard (AS) 28 Impairment of Assets, the Company has reviewed the potential generation of economic benefit from its fixed assets. Accordingly, no impairment loss is required to be provided in the financial statements.

Note: 6. Till year ended 31 st March, 2011, the Company was using pre-revised Schedule VI to the Companies Act, 1956 for preparation and presentation of its financial statements. During the year ended 31 March, 2012,the Revised Schedule VI notified under the Companies Act, 1956, has become applicable to the Company. The Company has reclassified previous year's figures to confirm to this year's classification. The adoption of Revised Schedule VI does not impact recognition and measurement principles followed for preparation of financial statements.

Mar 31, 2011

(Amount in Rupees)

As at 31.03.2011 As at 31.03.2010

1. Contingent liabilities not provided for :

(a) Bills of exchange discounted 2,565,754,276 1,311,439,622

(b) Taxation: Disputed demands of income tax 39,915,009 -

(c) (i) Guarantee given by the Company for credit facilities enjoyed by Petroleum Specialities Pte Ltd., a wholly-owned subsidiary 446,000,000 673,650,000

(ii) Guarantee given by the Company for credit facilities enjoyed by Uniflex Cables Limited, a subsidiary company. 1,000,000,000 1,250,000,000

(d) Claims against the Company not acknowledged as debts - (i) Demand/ Show cause-cum-demand notices received and contested by the Company with the relevant appellate authorities:

Excise duty (also refer note (iii) below) 43,526,440 36,817,515

Service tax 1,984,896 1,984,896

Customs duty 31,166,096 31,004,925

Sales tax 62,696,327 56,012,976

(ii) Arbitration award regarding dispute of alleged contractual non-performance by the Company, against which the Company is in appeal before

Bombay High Court. 70,215,141 65,631,906

(iii) Interest on delayed payment of excise duty, (which duty payment was revenue neutral) on certain deemed exports. Department has filed appeal in the Supreme Court against High Court Order in Company's favour. 44,507,841 44,507,841

(iv) Labour matters 16,431,439 16,431,439

2. The Company has issued and allotted 3,636,363 Equity shares (10.11% post allotment) of Rs. 10 each at a premium of Rs. 210 per share on preferential allotment basis on 4th May, 2011 to Templeton Strategic Emerging Markets Fund III, L.D.C. Post allotment, the paid-up capital, of the Company has been increased to Rs. 35,97,23,940 consisting of 3,59,72,394 Equity shares of Rs. 10 each fully paid.

3. During the year, the Company has closed operations of Poweroil Speciality Products FZE, Sharjah, a wholly-owned subsidiary, as there was no likelyhood of the said subsidiary reaching break-even. Consequent to closure, the Company has written-off advances and investment of Rs.3,972,864 and Rs.1,967,274 respectively.

4. The Company has entered into non-speculative commodity forward contract in order to hedge its exposure to fluctuations in the metal prices against requisite firm price sales contracts (received / to be received) for its conductor segment. The mark - to - market losses on such contracts, in accordance with the Announcement dated 28th March, 2008, issued by the Institute of Chartered Accountants of India, amounting to Rs. 280,401,393 as at 31st March, 2011 (Rs. 400,027,218 as at 31st March, 2010), has not been provided in the financial statements, as in the opinion of the management, such loss is notional in nature and the said loss would get extinguished on execution of firm sale price orders corresponding to these commodity forward contracts.

5. The Company has an equity investment of Rs. 278,833,569 (net of impairment provision of Rs. 555,538,198) in Uniflex Cables Limited ('UCL') , a subsidiary company. UCL has taken various steps to improve its productivity, debottlenecking of manufacturing facility, expansion of production line and markets, strengthening of managerial resources etc. and losses incurred by the UCL are reducing gradually. The equity investment of Rs. 278,833,569, loans and advances and debtors aggregating to Rs.1,880,541,637, (Previous year Rs. 800,240,013) are considered good.

6. The compensation committee of directors (CCD) of the Company, at its meeting held on 27th May, 2008 have granted 175,150 options at an exercise price of Rs. 207.05 per option to eligible employees/directors. The above options will vest in three installments (1/3rd each) on 27th May, 2009, 27th May, 2010 and 27th May , 2011 respectively. As of date, no employee has exercised any options. The Company has obtained in-principle approval for the listing of the entire 1,616,802 equity shares to be issued and alloted on exercise of options, as and when exercised, under the Scheme.

7. The exchange rate differences arising on purchases/vendor balances and those on account of sales/receivables have been grouped under 'Raw materials consumed' and 'Sales' respectively. Similarly, exchange rate differences on other transactions have been shown under 'Other expenses' or 'Other income', as the case may be. The net exchange difference gain so grouped, for the year is Rs. 57,610,176; (Previous year Rs.187,456,828).

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 recognises 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 obligation for leave encashment is recognised in the same manner as gratuity.

8. Disclosure pursuant to Accounting Standard (AS) 18 Ã Related party disclosures A. List of Related Parties

a) Subsidiary Companies:

(1) Petroleum Specialties Pte. Ltd, Singapore

(2) Power Oil Specialities Pte. FZE Sharjah

(3) Quantum Apar Speciality Oil Pty. Ltd. (subsidiary of Petroleum Specilaties Pte. Ltd.)

(4) Uniflex Cables Ltd.

(5) Marine Cables & Wires Private Limited (subsidiary of Uniflex Cables Ltd.)

b) Joint Venture Company: Apar Chematek Lubricants Ltd.

c) Key Managerial Personnel:

Mr. K. N. Desai - Managing Director Mr. C. N. Desai - Jt. Managing Director

d) Chairman having significant influence: Dr. N. D. Desai - Non executive Chairman

e) Relatives of Key Managerial Personnel Mrs. Noopur Kushal Desai

Mrs. Vineeta R. Srivastava Mr. Rishabh K. Desai Mrs. Jinisha C. Desai Ms. Gaurangi K. Desai Mrs. M. N. Desai Mr. Rajeev Srivastava Mr.Devharsh C. Desai Ms. Krishangi R. Srivastava Kum. Nikita C. Desai

f) Entities over which significant influence is exercised by key management personnel/individuals having significant influence: Apar Corporation Private Ltd.

Scope Private Limited and its' subsidiaries, viz

a) Apar Investment ( Singapore ) Pte. Ltd.

b) Apar Investment Inc. Kushal N. Desai Family Trust Apar Technologies Private Ltd.

Kushal Chaitanya Desai Family Trust Chaitanya N. Desai Family Trust Catalis World Private Ltd. Apar Masat Conductors Ltd. Gayatri Associates

Further, DRS also envisage issue of one equity share of Rs. 10 each of the Company to the shareholders of the UCL in exchange of ten equity shares of Rs. 10 each held by them in UCL. Such allottee shall be entitled to the final dividend of Rs. 3.50 per share recommended by the directors at it's meeting held on 27th May,2011, only if, the new shares are allotted to them before the declaration of said final dividend at the ensuring 22nd Annual General Meeting.

9.Marine Cables & Wires Private Limited (MCWPL), a wholly-owned subsidiary of Uniflex Cables Limited (UCL) has been declared as a sick company by the BIFR. For its' expenditious revival, MCWPL has prepared a Draft Rehabilitation (DRS) proposal which, inter alia, includes a Scheme of Amalgamation with the Company, with effect from 1st April, 2010 (Transfer date). The shareholders of the Company have approved the DRS subject to the approval of BIFR and other regulatory approvals. The said draft proposal has been furnished to the Operating Agency (OA) appointed by BIFR and all concerned parties. The OA report to BIFR in this regard is awaited. The effect of the Scheme of Amalgamation will be accounted for in the financial statements on completion of the Amalgamation process.

10.Disclosure pursuant to Accounting Standard (AS) 17 Segment Reporting :

The Company's operations predominantly relate to manufacture of Conductors and Transformer/Speciality Oils which businesses have been identified as primary segments based on the Company's risk profile and internal reporting structure.

iv) The Company's fixed assets are located entirely in India. Segment Revenue and Results

The expenses which are not directly attributable to the business segment are shown as unallocable corporate/other expenses (net of miscellaneous income). Segment assets and liabilites

Segment assets include all operating assets used by the business segment and consist principally of fixed assets, debtors and inventories.

Segment liabilities primarily include creditors and other liabilities.

Assets and liabilities that cannot be allocated between the segments are shown as a part of unallocable corporate assets and liabilites respectively.

11.There are no amounts due and outstanding to be credited to the Investor Education and Protection Fund as at 31st March,2011.

12. As per the Accounting Standard (AS), 28 Impairnment of Assests, the Company has reviewed the potential generation of economic benefit from its fixed assets. Accordingly, no impairment loss is required to be provided in the financial statements.

* Company's application for manufacture has been taken on record and registered by the concerned Government authorities.

** Equivalent to MT.

$ Opening and Closing Stock is included in work-in-process as the same is for captive consumption.

Notes:

a) Installed capacities are certified by Management of the Company and not verified by the auditors as this is a technical matter.

b) In cases where installed capacities exceed the licensed capacities, the Company's applications to the Government for regularisation of the same have been accepted in part only or are pending with the Government.

c) Includes : (A) Conversion by the Company on customers' account, captive consumption, and sample for testing.

d) In some of the classes of goods listed above, the licences are available in terms of more than one unit. In such cases, the quantitative information is expressed in terms of the units in which the items are sold. Further, in the cases where the licensed capacity has also been shown in the units in which the goods are sold (alongwith the units in which the licence has been issued), the conversion has been relied on by the auditors without verification as this is a technical matter.

e) Figures in brackets pertain to the previous year.

f) In respect of item (i) , the quantities stated against production, turnover and stock of goods produced are in KL, except one product i.e. Flex Oil A-Super, Greases included under the head "Other Specialities Oils".

13. Previous year figures have been regrouped, wherever necessary.

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