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Notes to Accounts of Empire Industries Ltd.

Mar 31, 2019

1. Corporate Information

Empire Industries Limited (the Company) having domicile presence in the state of Maharashtra, India, has been incorporated under Companies Act in year 1900. It is engaged in the business of manufacture of container glass, trading in frozen foods, indenting and real estate. The companyâs shares are listed and publicly traded on the BSE Limited (BSE).

2.1 Current and non-current classification

The Company presents assets and liabilities in the balance sheet based on current/non-current classification.

An asset is current when it is:

- Expected to be realized or intended to sold or consumed in normal operating cycle,

- Held primarily for the purpose of trading,

- Expected to be realized within twelve months after the reporting period, or

- Cash or cash equivalent unless restricted from being exchanged or used to settle a liability for at least twelve months after the reporting period.

All other assets are classified as non-current.

A liability is current when:

- It is expected to be settled in normal operating cycle,

- It is held primarily for the purpose of trading,

- It is due to be settled within twelve months after the reporting period, or

- There is no unconditional right to defer the settlement of the liability for at least twelve months after the reporting period. Deferred tax assets/liabilities are classified as non-current.

All other liabilities are classified as non-current.

(b) Terms / rights attached to equity shares

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

3.A.1. The General Reserve is used from time to time to transfer profits from retained earnings for appropriation purposes. As the General Reserve is created by a transfer from one component of equity to another and it will not be reclassified subsequently to Statement of Profit and Loss.

3.A.2. Other Comprehensive Income (OCI) represent the balance in equity relating to remeasurement gains/(losses) on defined benefit obligations. This will not be reclassified to Statement of Profit and Loss.

4.1 The borrowings from banks on Cash Credit account are secured by hypothecation of Stocks and Book Debts and Second charge on the property of Glass Bottle Division and personal guarantees given by Chairman and Vice-Chairman for entire amount.

The term loan from IndusInd Bank is secured by assignment of lease rentals receivables from some of the licencees of the Companyâs properties situated at Vikhroli and Lower Parel, Mumbai together with first charge on properties leased to HDFC at Empire Plaza, Vikhroli and personal guarantees given by Chairman and Vice Chairman for entire amount.

4.2 Repayment details of Term Loans from a Financial Institution at unamortised cost outstanding as on 31st March, 2019 are as follows

5.1 The borrowings from banks on Cash Credit account are secured by hypothecation of Stocks and Book Debts and Second charge on the property of Glass Bottle Division and personal guarantees given by Chairman and Vice-Chairman for entire amount.

6.1 There are no Micro Small & Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st Mach, 2019. This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company.

6.2 Trade payables are non-interest bearing and are normally settled on 60 to 90 day terms.

In the Financial Year 2015-16, the Investigation Branch of the Sales Tax Department had carried out survey action in the Companyâs premises. The company has paid Rs.86.81 lakhs for the period from April, 2012 to November, 2015. The Company has contested for the entire amount paid at appropriate forum.

NOTE 7 : CORPORATE SOCIAL RESPONSIBILITY EXPENDITURE

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The main focus areas for CSR activities are health care, education, malnutrition and water hygiene and sanitation. A CSR committee has been formed by the company as per the Act to oversee and execute the companyâs CSR policy.

Gross amount spent by the company during the year is Rs.94.80 lakhs (Previous year Rs.94.40 lakhs).

NOTE 8 : CAPITAL COMMITMENT

Estimated amount committed on capital account and not provided for is Rs.2041.48 Lakhs as on 31st March, 2019. (Previous Year Rs.915.46 lakhs)

NOTE 9: Revenue from Contracts with Customers ( Ind AS 115 ):

In March 2018, the Ministry of Corporate Affairs (the MCA), Government of India notified Ind AS 115 âRevenue from Contracts with Customersâ. The standard is applicable to the Company with effect from April 1, 2018

The Company measures the revenues at fair value of the consideration received or receivable after taking in to account the amount of any discount or rebates allowed to the customers. The Company presents revenues net of indirect taxes collected in its statement of profit and loss.

NOTE 10 : Details of dues to micro and small enterprises as per MSMED Act, 2006

There are no Micro Small & Medium Enterprises to whom the Company owes dues, which are outstanding for more than 45 days as at 31st Mach, 2019. This information as required to be disclosed under the Micro, Small & Medium Enterprises Development Act, 2006 has been determined to the extent such parties have been identified on the basis of information available with the Company

NOTE 11 : Lease (a) Where the Company is a Lessee:

The future minimum lease payments in respect of operating leases are summarized below

(b) Where the company is a Lessor.

The future minimum lease receipts of such operating leases as at 31st March, 2019 are summarized as below.

XXI Narrations

1 Analysis of Defined Benefit Obligations

The number of members under the scheme have increased by 1.11%

The total salary has increased by 7.85% during the accounting period.

The resultant liability at the end of the period over the beginning of the period has increased by 6.00%.

2 Expected rate of return basis

Scheme is not funded EORA is not applicable

3 Description of plan Assets and Reimbursement conditions: Not Applicable

4 Investment Risk

Since the scheme is unfunded the company is not exposed to investment risk.

5 Longevity Risk

The company is not exposed to risk of the employees living longer as the benefit under the scheme ceases on the employee separating from the employer for any Reason.

6 Risk of salary increase

The company is exposed to higher liability if the future salaries rise more than assumption of salary escalation.

7 Discount Rate

The discount rate has decreased from 7.40% to 7.35% and hence there is an increase in liability leading to actuarial loss due to change in discount rate.

NOTE 12: Related Party Disclosures (As identified by the Management).

a) Related Party Relationship.

i) Key Managerial Personnel ( KMP )

- Mr. Satish Chandra Malhotra - Chairman and Managing Director

- Mr. Ranjit Malhotra - Vice Chairman & Managing Director

- Mr. Dileep Malhotra - Jt. Managing Director

- Mr. Suhas C. Nanda - Director Finance & Company Secretary

ii) Relatives of KMP

- Mr. Kabir Malhotra

- Mrs. Uma Malhotra

- Ms. Anjali Malhotra

iii) Entities Controlled by KMP

- Empire International Pvt. Ltd.

- Randil Trading Company Pvt. Ltd.

- Arjun Transport Company Pvt. Ltd.

- Empire Technical Services Pvt. Ltd.

- Elfab Co. L L C

NOTE 13: Financial Risk Management Objectives and Policies

The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Management Board.

Market Risk is the risk of loss of future earning, fair values or future cash flow that may result from a change in the price of a financial instrument. The value of a financial instrument may change as a result of changes in the interest rates, foreign currency exchange rates, equity prices and other market changes that affect market risk sensitive instruments. Market Risk is attributable to all market risk sensitive financial instruments including investment and deposits , foreign currency receivables, payables and loans and borrowings.

The Company manages market risk through its finance department, which evaluate and exercises independent control over the entire process of market risk management. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates.

Foreign Currency Risk

The Company is not exposed to significant foreign currency risk as at the respective reporting dates.

Liquidity Risk

Liquidity Risk is defined as the risk that the Company will not be able to settle or meet its obligations on time or at a reasonable price. The Companyâs finance department is responsible for liquidity, funding as well as settlement management. In addition, processes and policies related to such risks are overseen by senior management. Management monitors the Companyâs net liquidity through rolling forecasts on the basis of expected cash flows.

Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligation as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking in to account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limit are set accordingly.

The company considers the possibility of default upon initial recognition of asset and whether there has been a significant increse in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increse in credit risk the company compares the risk of a default occuring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

Raw Material and Fuel Price Risk

The company is impacted by the price volatility of certain commodities like raw materials, packing materials and fuel. The Company is impacted by the price volatility of Fuels like Gas, Furnace Oil, etc.

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

NOTE 14: Capital Risk Management

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders.

The capital structure of the Company is based on managementâs judgement of the appropriate balance of key elements in order to meet its strategic and day-to-day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

NOTE 15: Fair Value Measurement

Financial Instrument by category and hierarchy

The fair values of the financial assets and liabilities are included at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximizing the use of relevant observable inputs and minimizing the use of unobservable inputs.

The following methods and assumptions were used to estimate the fair values:

1. Fair value of cash and short-term deposits, trade and other short term receivables, trade payables, other current liabilities, short term loans from banks and other financial institutions approximate their carrying amounts largely due to short term maturities of these instruments.

2. Financial instruments with fixed and variable interest rates are evaluated by the Company based on parameters such as interest rates and individual credit worthiness of the counterparty. Based on this evaluation, allowances are taken to account for expected losses of these receivables. Accordingly, fair value of such instruments is not materially different from their carrying amounts.

The fair values for Non-Current borrowings, loans and security deposits were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly.

Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data.

NOTE 16: Operating Segments:

DISCLOSURES AS REQUIRED BY INDIAN ACCOUNTING STANDARD (Ind AS) 108 OPERATING SEGMENTS

Identifications of Segments :

The chief operational decision maker monitors the operating results of its Business segment separately for the purpose of making decision 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 standalone financial statements, Operating segment have been identified on the basis of nature of products and other quantitative criteria specified in the Ind AS 108.

Segment revenue and results:

The expenses and income which are not directly attributable to any business segment are shown as unallocable expenditure & income.

Segment assets and Liabilities:

Segment assets include all operating assets used by the operating segment and mainly consist of property, plant and equipments, trade receivables, Inventory and other operating assets. Segment liabilities primarily includes trade payable and other liabilities. Common assets and liabilities which can not be allocated to any of the business segment are shown as unallocable assets / liabilities.

a) The management has identified following main business segments:

Manufacturing - comprising of manufacturing glass bottles, Trading, Business Support Service, Consultancy, Commission and Property development.

b) Segment Revenue in each of the above domestic business segments primarily include Sales & service, commission income in respect segments.

Segment Revenue comprises of:

- Sales, Commission, Property Development, Property Rent and other Operating Income

- Other income excluding income from investments

c) The Segment revenue in the geographical segments considered for the disclosure are as follows:

- Domestic - comprising of sales to customers located within India and earnings in India.

- International - comprising of sales to customers located outside India and Business support services, consultancy and commission.

d) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

Mar 31, 2018

NOTE 1: FIRST TIME ADOPTION OF IND AS

These are the Company''s first 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, 2017, with a transition date of 1st April, 2016. 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, 2018 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 at the transition date between the Ind AS and Previous GAAP have been recognized directly in equity (retained earnings or another appropriate category of equity).

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

A. Optional Exemptions availed

(a) Deemed Cost

The Company has opted paragraph D7 AA and accordingly considered the carrying value of property, plant and equipment and intangible assets as deemed cost as at the transition date.

(b) The Company has opted for exemption given under para D13AA of Appendix D to Ind AS 101 - First time adoption of Indian Accounting Standards. In accordance with this exemption opted, the Group has continued the policy of adding to/ deleting from the cost of Property, Plant and Equipment, all foreign exchange fluctuations arising on translating of Long Term Foreign Currency Monetary items utilized for acquiring the said Property, Plant and Equipment.

B. Applicable Mandatory Exceptions

(a) 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).

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 :

- Impairment of financial assets based on expected credit loss model.

(b) Classification and measurement of financial assets

As required under Ind AS 101 the company has assessed the classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

C. Transition to Ind AS - Reconciliations

The following reconciliations provide a quantification of the effect of significant differences arising from the transition from previous GAAP to Ind AS as required under Ind AS 101:

I. Reconciliation of Balance sheet as at April 1, 2016 (Transition Date)

I. The Audited Financial statement of the Company for the quarter and year ended March 31, 2018 have been reviewed by the Audit Committee and approved by the Board of Directors of the Company in the meeting held on Wednesday, May 30, 2018. The Statutory auditors have expressed an unqualified audit opinion. The information presented above is extracted from the audited financial statements. The financial statements are prepared in accordance with the Indian Accounting Standards (Ind-AS) as prescribed under Section 133 of the Companies Act, 2013 read with Companies (Indian Accounting standards) Rules 2015 (as amended).

2. The Company has adopted Ind-AS for the first time in F.Y.2017-18 with the transition date as at April 1, 2016, and the adoption was carried out in accordance with Ind-AS 101-First time adoption of Indian Accounting Standards. The transition was carried out from Generally Accepted Accounting Prinsiples in India as prescribed under Sec 133 of the Companies Act, 2013 read with the Rule 7 of the Companies (Accounts) Rules, 2014 (IGAAP).

3. Reconciliation between IGAAP and Ind-AS

These reconciliation statement has been provided in accordance with circular CIR/CFD/FAC/62/2016 issued by SEBI dated July 05, 2016 on account of implementation of Ind-AS by listed companies.

Explanation for reconciliation of Statement of Profit & Loss & Statement of Equity as previously reported under IGAAP to Ind-AS

1.1 In accordance with Ind AS 109-Financial Instruments, the loan processing fees which is already charged to the statement of profit and loss under IGAAP is reversed and netted off with the respective loans under Ind-AS as per the amortized cost method.

1.2 In accordance with Ind AS 109-Financial Instruments, all term loans (net of loan processing fees) are carried at amortized cost and the interest cost is charged to the statement of profit and loss as per Effective interest rate (EIR) method.

1.3 As per Ind-AS 19 Employee Benefit, the changes on account of re-measurements of employeeâs defined benefit plans is charged to other comprehensive income and is reversed from the statement of profit and loss as recognized earlier under IGAAP.

1.4 The company has given interest free security deposits for properties taken on lease from third parties. These security deposits are measured at amortized cost under Ind-AS 109 - Financial Instruments. The interest income on security deposit is recognized in the statement of profit and loss as per the EIR method and the pre-paid rent expenses is recognized in the statement of profit and loss under straight line method.

1.5 The company has taken interest free security deposits for properties given on lease to third parties. These security deposits are measured at amortized cost under Ind-AS 109 - Financial Instruments. The interest expense on security deposit is recognized in the statement of profit and loss as per the EIR method and the pre-received rent income is recognized in the statement of profit and loss under straight line method.

1.6 In accordance with Ind-AS 109 - Financial Instruments, the company has provided provision for doubtful debts using expected credit loss method.

4. In Business Segment based on the âmanagement approachâ as defined in Ind-AS 108- Operating segments has been presented. The accounting principles used in the preparation of the financial statements are consistently applied to record revenue and expenditure in individual segments.

5. Other Income for the year ended March, 2018 is comprising of profit from sale of Asset amounting to Rs.1680 Lakhs.

2. FAIR VALUE MEASUREMENT

Financial Instrument by category and hierarchy

The following methods and assumptions were used to estimate the fair values:

The fair values for loans, security deposits and investment in preference shares were calculated based on cash flows discounted using a current lending rate. They are classified as level 3 fair values in the fair value hierarchy due to the inclusion of unobservable inputs including counter party credit risk.

The fair values of non-current borrowings are based on discounted cash flows using a current borrowing rate. They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own credit risk.

For financial assets and liabilities that are measured at fair value, the carrying amounts are equal to the fair values.

The Company uses the following hierarchy for determining and disclosing the fair value of financial instruments by valuation technique:

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

Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable, either directly or indirectly. Level 3: techniques which use inputs that have a significant effect on the recorded fair value that are not based on observable market data

NOTE 3: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Companyâs financial risk management is an integral part of how to plan and execute its business strategies. The Companyâs financial risk management policy is set by the Management Board.

The Company manages market risk through its treasury department, which evaluate and exercises independent control over the entire process of market risk management. The treasury department recommends risk management objectives and policies, which are approved by Senior Management and the Audit Committee. The activities of this department include management of cash resources, implementing hedging strategies for foreign currency exposures, borrowing strategies, and ensuring compliance with market risk limits and policies.

Interest Rate Risk

Interest rate risk is the risk that fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. In order to optimize the company''s position with regards to interest income and interest expenses and to manage the interest rate risk, treasury performs a comprehensive corporate interest rate risk management by balancing the proportion of fixed rate and floating rate financial instruments in its total portfolio.

Credit Risk

Credit risk arises from the possibility that counter party may not be able to settle their obligation as agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, and analysis of historical bad debts and ageing of accounts receivable. Individual risk limit are set accordingly.

The company considers the possibility of default upon initial recognition of asset and whether there has been a significant increase in credit risk on an ongoing basis throughout each reporting period. To assess whether there is a significant increase in credit risk the company compares the risk of a default occurring on the asset as at the reporting date with the risk of default as at the date of initial recognition.

NOTE 4 : CAPITAL RISK MANAGEMENT

The Company aims to manage its capital efficiently so as to safeguard its ability to continue as a going concern and to optimize returns to our shareholders.

The capital structure of the Company is based on management''s judgment of the appropriate balance of key elements in order to meet its strategic and day- to- day needs. We consider the amount of capital in proportion to risk and manage the capital structure in light of changes in economic conditions and the risk characteristics of the underlying assets. The Company may take appropriate steps in order to maintain, or if necessary adjust, its capital structure.

Mar 31, 2017

1. Terms / rights attached to equity shares

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.

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.

2. The Board of Directors in its meeting held on 23rd May, 2017 has proposed a dividend of Rs.25/- per Equity Share for the Financial Year ended 31^st March, 2017. The proposal is subject to the approval of shareholders at the Annual General Meeting to be held on 27^th July, 2017. The total dividend for the year ended 31^st March, 2017 when appropriated, shall amount to Rs.18,05,36,410/- (including corporate Dividend Tax of Rs.3,05,36,460/-).

3. The value of stocks includes all taxes and duties. Cenvat is credited to statement of Profit & Loss on consumption basis. Cenvat related to year-end stock is carried forward in Balance Sheet under the head âOther Liabilities''.

4. Excise duty liability on Finished Goods stock has not been provided and also not included in the valuation of Finished Goods stock. However, it has no impact on Statement of Profit & Loss.

5. The previous year''s figures have been regrouped / reclassified wherever necessary.

6. Segment wise information for the year ended 31^st March, 2017 :

Segments have been identified in line with the âAccounting standard on segment reportingâ (AS-17), taking into account, the nature of products and services, the organization and internal reporting structure as well as differential risk of these segments.

(a) The management has identified following main business segments: Manufacturing - comprising of manufacturing glass bottles, Trading, Business Support Service, Consultancy and Commission.

(b) Segment Revenue in each of the above domestic business segments primarily include Sales & service, commission income in respective segments.

Domestic - comprising of sales to customers located within India and earnings in India.

International - comprising of sales to customers located outside India and Business support services, consultancy and commission.

(d) Segment Revenue, Results, Assets and Liabilities include the respective amounts identifiable to each of the segments and amounts allocated on a reasonable basis.

7. Notes on Financial Statements for the Year ended 31st March, 2017.

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

Notes referred to above form an integral part of the Balance Sheet and Statement of Profit and Loss.

Mar 31, 2016

1. Terms / rights attached to equity shares

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. 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.

* Balances with Banks include Unclaimed Dividend of Rs, 71.40 lakhs (Previous year Rs, 64.59 lakhs)

# Fixed Deposits with Banks include Deposits against Bank Guarantees issued by banks of Rs, 66.36 lakhs (Previous year Rs, 85.21 lakhs) with maturity of more than 12 months.

2. Segment wise information for the year ended 31st March, 2016 :

Segments have been identified in line with the "Accounting standard on segment reporting " (AS-17), taking into account, the nature of products and services, the organization and internal reporting structure as well as differential risk of these segments.

Mar 31, 2015

1.1 Terms / rights attached to equity shares

The Company has only 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. 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. 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.

The borrowings from banks on Cash Credit account are secured by hypothecation of Stocks and Book Debts and Second charge on the property of Glass Bottle Division and personal guarantees given by Chairman and Vice-Chairman.

The term loan from IndusInd Bank is secured by assignment of lease rentals receivable from some of the licencees of the Company''s properties situated at Vikhroli and Lower Parel, Mumbai together with first charge on properties leased to TCS at Empire Plaza, Vikhroli.

NOTES :

(1) In accordance with the provision Specified in Part C of Schedule II to the Companies Act. 2013, effective from 1st April, 2014, the Company has reassessed the remaining useful lives of its fixed assets and based on this, the Company has charged depreciation for the year ended 31st March, 2015. Consequently, the transitional impact of Rs. 14.50 Lakhs (net of deferred tax - Rs. 7.46 Lakhs) has been adjusted to retained earnings.

(2) During the year, the Company''s leasehold land at Ambernath was transferred to "Building WIP" as the Company has decided to carryout constructions of flats / industrial and commercial galas on the said land.

(Rs. in lakhs) As at 31st As at 31st March, 2015 March, 2014

2. Contingent liabilities not provided for :

a) Guarantees given by the Banks 1,584.31 1,155.15

b) Letters of Credits/Buyers Credit 2,565.51 553.05

c) Claims against the Company not acknowledged as debts 19.55 29.81

d) Estimated amount of contracts remaining to be executed on Capital Account (Net of advances) 60.57 2,337.75

e) Excise demand disputed by the Company. 18.59 27.34

f) Service tax demand disputed by the Company. 2.11 2.11

g) Income Tax matters in respect of which appeals are pending 306.99 160.70

h) Sales tax demand disputed by the Company. 427.60 259.19

3. The value of stocks include all taxes and duties. Cenvat is credited to statement of Profit & Loss on consumption basis. Cenvat related to year-end stock is carried forward in Balance Sheet under the head ''Other Laibilities''.

4. Excise duty liability on Finished Goods stock has not been provided and also not included in the valuation of Finished Goods stock. However, it has no impact on Statement of Profit & Loss.

5. The previous year''s figures have been regrouped / reclassified wherever necessary.

Mar 31, 2014

(Rs. in lakhs)

As at 31st As at 31st March, 2014 March, 2013

1. Contingent liabilities not provided for :

a) Guarantees given by the Banks 1,155.15 685.76

b) Letters of Credits 553.05 480.59

c) Claims against the Company not acknowledged as debts 29.81 29.81

d) Estimated amount of contracts remaining to be executed 2,337.75 3,445.22 on Capital Account (Net of advances)

e) Excise demand disputed by the Company. 27.34 27.34

f) Service tax demand disputed by the Company. 2.11 2.11

g) Income Tax matters in respect of which appeals are pending 160.70 54.10

h) Sales tax demand disputed by the Company. 259.19 -

2. The value of stocks include all taxes and duties. Cenvat is credited to statement of Profit & Loss on consumption basis. Cenvat related to year-end stock is carried forward in Balance Sheet under the head ''Other Laibilities''.

3. Excise duty liability on Finished Goods stock has not been provided and also not included in the valuation of Finished Goods stock. However, it has no impact on statement of Profit & Loss Account.

4. The previous year''s figures have been regrouped / reclassified wherever necessary.

Mar 31, 2013

1.1 Terms / rights attached to equity shares

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.

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.

2. The value of stocks include all taxes and duties. Cenvat is credited to statement of Profit & Loss on consumption basis. Cenvat related to year-end stock is carried forward in Balance Sheet under the head ''Other Laibilities''.

3. Excise duty liability on Finished Goods stock has not been provided and also not included in the valuation of Finished Goods stock. However, it has no impact on statement of Profit & Loss Account.

4. The previous year''s figures have been regrouped / reclassified wherever necessary.

5. Segment wise information for the year ended 31st March, 2013 :

Segments have been identified in line with the "Accounting standard on segment reporting" (AS-17), taking into account, the nature of products and services, the organization and internal reporting structure as well as differential risk of these segments.

Mar 31, 2012

1.1 Terms / rights attached to equity shares

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.

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.

(Rs in lakhs)

As at As at

31st March, 31st March,

2012 2011

2. Contingent liabilities not provided for :

a) Guarantees given by the Banks 806.54 868.27

b) Letters of Credits 98.71 31.61

c) Claims against the Company not acknowledged as debts 29.81 29.81

d) Estimated amount of contracts remaining to be executed on Capital Account. 179.55 848.67

e) Excise demand disputed by the Company. 10.73 10.73

f) Custom Duty demand disputed by the Company. 13.50 -

g) The Income Tax assessment of the Company has been completed upto Assessment Year 2009-10. The disputed demand outstanding for the said Assessment Year is Rs 54.10 lakhs (Previous Year - Nil). Based on the decisions of the Appellate authorities and the interpretations of other relevant provisions, the Company has been legally advised that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

3. The value of stocks include all taxes and duties. Modvat is credited to Profit & Loss Account on consumption basis Cenvat related to year-end stock is carried forward in Balance Sheet under the head 'Other Laibilities'.

4. Excise duty liability on Finished Goods stock has not been provided and also not included in the valuation of Finished Goods stock. However, it has no impact on Profit & Loss Account.

5. The previous year's figures have been regrouped / reclassified to conform to this year's classification which is as per Revised Schedule VI. The adoption does not impact recognition and measurement principles followed for preparation of financial statements as at 31st March, 2011.

6. Segment wise information for the year ended 31st March, 2012 :

Segments have been identified in line with the "Accounting standard on segment reporting" (AS-17), taking into account, the nature of products and services, the organization and internal reporting structure as well as differential risk of these segments.

Note: Figures in the brackets are for the previous year.

Related party relationship is as identified by the Company and relied upon by the Auditors.

Mar 31, 2010

(1) Secured loans from banks to the extent of Rs.18,05,148 (Previous year Rs.28,83,98,094) and Unsecured loans from banks to the extent of Nil (Previous year Rs.1,58,18,044) are guaranteed by Chairman and Vice-Chairman.

(2) Future Licence Fees amounting to Rs. Nil (Previous year Rs.2,107.47 lacs) receivable from Licensees in respect of property is securitized with the Bankers.

(3) There was no impairment loss of Fixed Assets on the basis of review carried out by the Management in accordance with Accounting Standard 28 issued by the Institute of Chartered Accountants of India.

(4) Estimated amount of contracts remaining to be executed on Capital Account and not provided for Rs.1,39,93,090 (Previous year Rs1,62,68,306).

(5) The value of stocks include all taxes and duties. Modvat is credited to Profit & Loss Account on consumption basis Cenvat related to year-end stock is carried forward in Balance Sheet under the head Other Liabilities.

(6) Excise duty liability on Finished Goods stock has not been provided and also not included in the valuation of Finished Goods stock. However, it has no impact on Profit & Loss Account.

(7) Figures in respect of the previous year have been regrouped and rearranged wherever necessary.

(8) The Company has been recognising in the financial statements the deferred tax assets/liabilities, in accordance with the Accounting Standard 22 "Accounting for Taxes on Income" issued by the Institute of Chartered Accountants of India.

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