Home  »  Company  »  Rushil Decor Ltd.  »  Quotes  »  Notes to Account
Enter the first few characters of Company and click 'Go'

Notes to Accounts of Rushil Decor Ltd.

Mar 31, 2023

Purpose of Reserves :

a) Capital Redemption Reserve : As per Companies Act, 2013, capital redemption reserve is created when company purchases its own shares out of free reserves or securities premium. A sum equal to the nominal value of the shares so purchased is transferred to capital redemption reserve. The reserve is utilised in accordance with the provisions of section 69 of the Companies Act, 2013.

b) Security Premium : Securities premium is used to record premium received on issue of shares. The reserve is utilised in accordance with the provisions of the Companies Act, 2013.

c) General Reserve : Under the erstwhile Indian Companies Act, 1956, a general reserve was created through an annual transfer of net profit at a specified percentage in accordance with applicable regulations. Consequent to introduction of Companies Act, 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been withdrawn though the Company may transfer such percentage of its profits for the financial year as it may consider appropriate. Declaration of dividend out of such reserve shall not be made except in accordance with rules prescribed in this behalf under the Act.

d) Amalgamation Reserve : If the amalgamation is an ''amalgamation in the nature of merger'', the identity of the reserves is preserved and they appear in the financial statements of the transferee company.

e) Revaluation Reserve : Amount of reserve created by company when fair market value of assets increase as compared to book value then the difference of profit is transferred to revaluation reserve and if value of any assets decreases then this reserve is used by company for balancing the losses

f) Retained Earnings : Retained Earnings are the profits and gains that the Company has earned till date, less any transfer to general reserve, dividends or other distributions paid to shareholders.

Term loan from Bank of Baroda

Secured by way of

(a) Hypothecation of entire current assets of the Company present and future,

(b) Equitable mortgage of

(i) Land, building and Plant & Machinery belonging to the Company both present and future to be constructed,

(ii) office premises situated at flat no 1 & 2 krinkal apartment, paldi, ahmedabad belonging to the Company

(iii) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, ahmedabad belonging to Shri KrupeshThakkar

(iv) plot stiuated at lati bazar, ahmedabad in the name of Shri Krupesh Thakkar

(c) 2nd Charge over machinery 800 CBM Capacity MDF board unit purchased from Siempelkamp - Germany and other related equipments/machineries financed by Byren LB and LBBW under supplier credit arrangement.

(d) Pledge of fixed deposit of '' 0.93 Crs

(e) secured by way of personal guarantee of Shri Krupesh Thakkar, Mr. Rushil Krupesh Thakkar.

Note: 2

Loan from Foreign Bank

Bayerische Landesbank and LBBW 15 half yearly installments (14 installments of EURO 886583.31 and 1 installment of ECA [LRN.201809103], Germany EURO 886583.30) starting from 15th December, 2021.

Secured by way of hypothecation of machinery, equipment for a Meduim Densiity Fiberboard (MDF) manufacturing plant by Siemplelkamp Maschinen and Anlagenbau GmbH at plant situated of Rushil Decor Limited - Atchutapuram, Vishakhapatman, Andhra Pradesh, India

Note: 3

Business loan from Yes Bank

Secured by way of Equitable Mortgage of a) residential bunglow situated 18,19, Pushpa dhanwa Bunglows, vastrapur, ahmedabad belonging to Shri Kurpeshbhai G. Thakkar b) Rushil Corporate House, Nr GIHED House, off Sindhu Bhawan Road, Nr. S.P.Ring Road, Ahmedabad-380058 belonging to Shri Kurpeshbhai G. Thakkar and also further secured by way of personal gurantee of Shri Krupesh Thakkar

Working Capital facility from Bank of Baroda

Secured by way of

(a) Hypothecation of entire current assets of the Company present and future,

(b) Equitable mortgage of

(i) Land, building and Plant & Machinery belonging to the Company both present and future to be constructed,

(ii) office premises situated at flat no 1 & 2 krinkaL apartment, paldi, ahmedabad belonging to the Company

(iii) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, ahmedabad belonging to Shri Krupesh Thakkar

(iv) plot stiuated at lati bazar, ahmedabad in the name of Shri Krupesh Thakkar

(c) 2nd Charge over machinery 800 CBM Capacity MDF board unit purchased from Siempelkamp - Germany and other related equipments/machineries to be financed by Byren LB and LBBW under supplier credit arrangement.

(d) Pledge of fixed deposit of '' 0.93 Crs

(e) Secured by way of personal guarantee of Shri Krupesh Thakkar and Mr. Rushil Krupesh Thakkar.

*Disclosure of payable to vendors as defined under the "Micro, Small and Medium Enterprise Development Act, 2006" is based on the information available with the Company regarding the status of registration of such vendors under the said Act, as per the intimation received from them on requests made by the Company. There are no overdue principal amounts / interest payable amounts for delayed payments to such vendors at the Balance Sheet date. There are no delays in payment made to such suppliers during the year or for any earlier years and accordingly there is no interest paid or outstanding interest in this regard in respect of payment made during the year or on balance brought forward from previous year.

CONTINGENT LIABILITIES AND CAPITAL COMMITMENTS: a. Contingent liabilities :

(1) Claims against the Company not acknowledged as debts:

Particulars

1. Disputed Excise Demand Matter Under Appeal '' 72.12 Lakhs (P.Y. '' 72.12 Lakhs)

2. Disputed Custom Duty Matter Under Appeal '' 27.56 Lakhs (P.Y. '' 27.56 Lakhs)

Note:

(a) It is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/ authorities.

(b) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

(2) Outstanding Letters of Credit '' 67.40 Lakhs (P.Y. '' 157.93 Lakhs)

(3) Outstanding Bank Guarantee '' 958.84 Lakhs (P.Y. '' 685.98 Lakhs)

(b) Commitments:

(1) Capital Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, '' Nil (previous year '' 874.76 Lakhs).

(2) EPCG Commitments

Future export obligations/commitments under import of Capital Goods at Concessional rate of customs duty. As at 31st March, 2023''9,799.74 Lakhs (Previous Year '' 18,627.67 Lakhs).

E9 FINANCIAL AND DERIVATIVE INSTRUMENTS - Capital Management

The Company''s capital management is intended to create value for shareholders by facilitating the achievement of longterm and short-term goals of the Company.

The Company determines the amount of capital required on the basis of annual business plan coupled with long-term and short term strategic investment and expansion plans. The funding needs are met through equity, cash generated from operations, long-term and short-term bank borrowings.

The Company monitors the capital structure on the basis of net debt to equity ratio and maturity profile of the overall debt portfolio of the Company.

Net debt includes interest bearing borrowings including lease obligations less cash and cash equivalents, other bank balances.

Disclosures

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments.

(ii) Fair Value Measurement

This note provides information about how the Company determines fair values of various financial assets. Fair Value of financial assets and liabilities that are not measured at fair value (but fair value disclosures are required). Management considers that the carrying amounts of financial assets and financial liabilities recognised in the financial statements at an approximate fair values.

(iii) Financial Risk Management Objectives

While ensuring liquidity is sufficient to meet Company''s operational requirements, the Company''s financial management committee also monitors and manages key financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.

Market Risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: interest rate, currency risk and other price risk, such as commodity price risk and equity price risk. Financial instruments affected by market risk include FVTPL (Fair Value through Profit or Loss) investments, trade payables, trade receivables, etc.

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.

The Company''s interest rate risk arises from the Long Term Borrowings with fixed rates. The Company''s fixed rates borrowings are carried at amortised cost.

Liquidity Risk

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The contractual maturity is based on the earliest date on which the Company may be required to pay.

The following are the contractual maturities of non-derivative financial liabilities, based on contractual cash flows:

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade Receivables

An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are grouped into homogenous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 4 and 8, as the Company does not hold collateral as security. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries. The Company has a detailed review mechanism of overdue customer receivables at various levels within organisation to ensure proper attention and focus for realisation.

37 The Previous year''s figures have been regrouped, reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

38 The Company has sought Balance Confirmations from trade receivables and trade payables wherever such balance, confirmations are received by the Company, the same are reconciled and appropriate adjustments if requested are made in the books of account.

E9 EXPORT PROMOTION CAPITAL GOODS (EPCG)

Export Promotion Capital Goods (EPCG) scheme allows import of certain capital goods including spares at concessional duty

subject to an export obligation for the duty saved on capital goods imported under EPCG scheme. The duty saved on capital

goods imported under EPCG scheme being Government Grant, is accounted as stated in the Accounting policy on Government

Grant.

EQ OPERATING SEGMENT :

a) Decorative Laminated Sheets

b) Medium Density Fiber Board

c) Polyvinyl Chloride Boards Identification 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 financial statements. Operating segment has 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 (net of allocable income).

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, inventories and other operating assets. Segment liabilities primarily include trade payable and other liabilities. Common assets and liabilities which cannot be allocated to any of the business segment are shown as unallocable assets / liabilities.

Inter segment transfer:

Inter segment revenues are recognised at sales price. The same is based on market price and business risks. Profit or loss on inter segment transfer are eliminated at the group level.

Note: The remuneration of directors and other member of Key Management Personal during the year is short term benefits.

42 In the opinion of the board, current assets, loans and advances are approximately of the value if realised in the ordinary course of business.

DISCLOSURES REGARDING EMPLOYEE BENEFITS

As per Indian Accounting Standard 19 "Employee Benefits" the disclosures are given below:

(i) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organisation established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.

As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation.

(iii) Major risk to the plan

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons: Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the Company there can be strain on the cash flows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognised immediately in the year when any such amendment is effective.

EO CORPORATE SOCIAL RESPONSIBILITY CONTRIBUTION

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 areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief, COVID-19 relief and rural development projects and other activities as mentioned in Schedule VII of the Companies Act, 2013. A CSR committee has been formed by the Company as per the Act. The funds were primarily utilised throughout the year on these activities which are specified in Schedule VII of the Companies Act, 2013:

47 During the year 2018-19, the Company had issued 190372 equity share of '' 10 each at a premium of '' 935/- each on preferential basis to Mr. Rakesh Arora (No of shares 105822) and Mr. Manish Srivastava (No of Shares 84550) on 28th April, 2018. The Company has received share application money from Mr. Manish Srivastava who based in Singapore. Mr. Manish Srivastava has given Share application money of '' 799 Lakhs, while remitting the fund, in the FIRC (Foreign Inward Remittance Certificate), but due to technical error there was a mistake in filing form with authority, by mistake it was written as Repayment of loan instead of Share application money and hence the same requires correction from the remitting bank of Mr. Manish Srivastava. Mr. Manish Srivastava was allotted 84550 equity shares of '' 10 each at premium of '' 935 making total allotment including premium of '' 798.9975 Lakhs and hence there was a surplus of '' 0.0025 Lakh which the Company has asked their banker to refund the said amount to Mr. Manish Srivastava but because of non-compliance of submitting Form FC-GPR to be filed by collecting bank i.e. Axis Bank with Reserve Bank of India, this amount could not be refunded. In spite of repeated reminder to the shareholder Mr. Manish Srivastava, has not got its FIRC Corrected and hence due to the technical difficulty faced by the Company and due to no fault on the part of the Company the said Share application money to the extent refundable is not treated as Violation of Section 73 of the Companies Act, 2013. During current financial year the said Share application Money of '' 0.0025 Lakh has been refunded to Mr. Manish Srivastava.

UNDISCLOSED TRANSACTIONS

As stated & confirmed by the Board of Directors, the Company does not have any 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

E3 BENAMI transactions

As stated & confirmed by the Board of Directors, the Company does not have any Benami property, where any proceeding has been initiated or pending against the Group for holding any Benami property.

E9 LOAN or investment to ultimate beneficiaries

As stated & Confirmed by the Board of Directors, the Company has 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

£3 LOAN OR INVESTMENT FROM ULTIMATE BENEFICIARIES

As stated & Confirmed by the Board of Directors, the Company has 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,

E9 UTILISATION OF TERM LOANS

The Company has applied term loans for the purpose for which the same was obtained during the year.

E9 WILLFUL DEFAULTER

As stated & Confirmed by the Board of Directors, the Company has not been declared willful defaulter by the bank during the year under review.

TRANSACTIONS WITH STRUCK OFF COMPANIES

As stated & Confirmed by the Board of Directors, the Company has not under taken any transactions nor has outstanding balance with the Company Struck Off either under section 248 of the Act or under Section 560 of Companies act 1956.

03 WORKING CAPITAL

The Company has been sanctioned working capital limits from a bank on the basis of security of the current assets. Revised Quarterly returns or statements filed by the Company with such bank are in agreement with the books of accounts.

03 SATISFACTION OF CHARGE /CREATION OF CHARGE

As stated & Confirmed by the Board of Directors, the Company does not have any pending registration or satisfaction of charges with ROC beyond the statutory period.

03 CRYPTO CURRENCY

As stated & Confirmed by the Board of Directors, the Company has not traded or invested in Crypto Currency or Virtual Currency.

03 COMPLIANCE WITH APPROVED SCHEMES OF ARRANGEMENTS

The Company has not applied for any scheme of Arrangements under sections 230 to 237 of the Companies Act 2013.

03 SIGNIFICANT EVENTS AFTER THE REPORTING DATE

There were no significant adjusting events that occurred subsequent to the reporting period.

03 MAINTENANCE OF BOOKS OF ACCOUNTS UNDER SECTION 128 OF THE COMPANIES ACT, 2013

The Company has defined process to take daily back-up of books of account maintained electronically and complied with the provisions of The Companies Accounts) Rules, 2014 (as amended).

61 The Company has assessed internal and external information up to the date of approval of the audited financial statements while reviewing the recoverability of assets, adequacy of financial resources, Performance of contractual obligations, ability to service the debt and liabilities etc. Based on such assessment, the Company expects to fully recover the carrying amounts of the assets and comfortably discharge its debts and obligations. Hence the management does not envisage any material impact on the audited financial statements of the Company for the year ended on 31st March, 2023.

63 The financial statements were authorised for issue by the directors on 04th May, 2023.


Mar 31, 2018

Note:1 Term loan from Bank of Baroda

Secured by way of hypothecation of raw material, stocks, book debt, movable assets of the Company and also secured by way of equitable mortgage of a) land and building and plant and machinery of the Company b) office premises situated at flat no 1 & 2 krinkal apartment, paldi, ahmedabad belonging to the Company c) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, ahmedabad belonging to Mr. Ghanshyambhai Thakkar d) plot situated at lati bazar, ahmedabad in the name of Mr. Ghanshyambhai Thakkar e) Pledge of fixed deposit of '' 0.73 Cr f) Pledge of fixed deposit of '' 0.20 Cr and also secured by way of personal guarantee of Mr. Ghanshyambhai Thakkar and Mr. Krupeshbhai Thakkar.

Note:2

Working Capital facility from Bank of Baroda

Secured by way of hypothecation of raw material, stocks, book debt, movable assets of the Company and also secured by way of equitable mortgage of a) land and building and plant and machinery of the Company b) office premises situated at flat no 1 & 2 krinkal apartment, paldi, ahmedabad belonging to the Company c) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, ahmedabad belonging to Mr. Ghanshyambhai Thakkar d) plot situated at lati bazar, ahmedabad in the name of Mr. Ghanshyambhai Thakkar e) Pledge of fixed deposit of '' 0.73 Cr f) Pledge of fixed deposit of '' 0.20 Cr and also secured by way of personal guarantee of Mr. Ghanshyambhai Thakkar and Mr. Krupeshbhai Thakkar.

3. | CAPITAL COMMITMENTS AND CONTINGENT LIABILITIES:_

a. Contingent liabilities:

(1) Claims against the Company not acknowledged as debts

Particulars_

1. Disputed Income Tax Demand Matter Under Appeal '' 10,64,110/- (P.Y '' 61,60,050)

2. Disputed Excise Demand Matter Under Appeal '' 83,96,065/- (P.Y '' 58,87,440/-)

3. Disputed Custom Duty Matter Under Appeal '' 27,55,536/- (P.Y '' 27,55,536)

4. Disputed VAT Liability matter under Appeal '' 16,89,373/- (P.Y '' NIL)

Note:

(a) I t is not practicable for the Company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/ authorities.

(b) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

(2) Outstanding Letters of Credit Rs, 2,69,57,924/-(P. Y Rs, 38,04,964/-)

(3) Outstanding Bank Guarantee Rs, 2,62,12,352/-(PY Rs, 1,73,19,170/-)

b. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, Rs, 107,89,28,751/- (previous year Rs,5,54,10,254/-)

4. FINANCIAL AND DERIVATIVE INSTRUMENTS_

- Capital Management

The Company''s objective when managing capital is to:

- Safeguard its ability to continue as a going concern so that the Company is able to provide maximum return to stakeholders and benefits for other stakeholders.

- Maintain an optimal capital structure to reduce the cost of capital.

The Company''s Board of director''s reviews the capital structure on regular basis. As part of this review the board considers the cost of capital risk associated with each class of capital requirements and maintenance of adequate liquidity.

Disclosures

This section gives an overview of the significance of financial instruments for the Company and provides additional information on balance sheet items that contain financial instruments

The details of significant accounting policies, including the criteria for recognition, the basis of measurement and the basis on which income and expenses are recognized in respect of each class of financial asset, financial liability and equity instrument are disclosed in Note (A) j, k, l and m.

(ii) Fair Value Measurement

This note provides information about how the Company determines fair values of various financial assets

Fair Value of financial assets and liabilities that are not measured at fair value (but fair value disclosures are required).

Management considers that the carrying amounts of financial assets and financial liabilities recognized in the financial statements approximate their fair values.

(iii) Financial Risk Management Objectives

While ensuring liquidity is sufficient to meet Company''s operational requirements, the Company''s financial management committee also monitors and manages key financial risks relating to the operations of the Company by analysing exposures by degree and magnitude of risks. These risks include market risk (including currency risk and price risk), credit risk and liquidity risk.

Market Risk

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

Foreign Currency Risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s operating activities. The Company has a treasury department which monitors the foreign exchange fluctuations on the continuous basis and advises the management of any material adverse effect on the Company.

Interest Rate Risk

The Company''s interest rate risk arises from the Long-Term Borrowings with fixed rates. The Company''s fixed rates borrowings are carried at amortized cost.

Liquidity Risk

The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due.

Management monitors rolling forecasts of liquidity position and cash and cash equivalents on the basis of expected cash flows. In addition, liquidity management also involves projecting cash flows considering level of liquid assets necessary to meet obligations by matching the maturity profiles of financial assets & liabilities and monitoring balance sheet liquidity ratios.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The contractual maturity is based on the earliest date on which the Company may be required to pay.

Credit Risk

Credit risk is the risk that counter party will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables).

Trade Receivables

An impairment analysis is performed at each reporting date on an individual basis for all the customers. In addition, a large number of minor receivables are grouped into homogeneous groups and assessed for impairment collectively. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in Note 4 and 8, as the Company does not hold collateral as security. The Company has evaluated the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries.

The Company has a detailed review mechanism of overdue customer receivables at various levels within organization to ensure proper attention and focus for realization.

5 The Previous year''s figures have been regrouped, reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

6 Balances of Unsecured Loans, Trade Receivables, Payables and Loans and Advances are subject to Confirmation from respective parties

7. OPERATING SEGMENT:_

Primary

The primary segment of the Company, comprising of ‘Decorative, Laminates'', ‘Particle Board'' and ‘Medium Density Fiber Board''.

Segment wise Revenue, Results and capital employed

Primary business segments - Revenue by nature of products:

(i) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organization established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet.

Every Employee who has completed five years or more of service is entitled to Gratuity on terms not less favorable than the provisions of The Payment of Gratuity Act, 1972.

As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation.

(iii) Major risk to the plan

I have outlined the following risks associated with the plan:

A. Actuarial Risk:

It is the risk that benefits will cost more than expected. This can arise due to one of the following reasons:

Adverse Salary Growth Experience: Salary hikes that are higher than the assumed salary escalation will result into an increase in Obligation at a rate that is higher than expected.

Variability in mortality rates: If actual mortality rates are higher than assumed mortality rate assumption than the Gratuity Benefits will be paid earlier than expected. Since there is no condition of vesting on the death benefit, the acceleration of cash flow will lead to an actuarial loss or gain depending on the relative values of the assumed salary growth and discount rate.

Variability in withdrawal rates: If actual withdrawal rates are higher than assumed withdrawal rate assumption than the Gratuity

Benefits will be paid earlier than expected. The impact of this will depend on whether the benefits are vested as at the resignation date.

B. Investment Risk:

For funded plans that rely on insurers for managing the assets, the value of assets certified by the insurer may not be the fair value of instruments backing the liability. In such cases, the present value of the assets is independent of the future discount rate. This can result in wide fluctuations in the net liability or the funded status if there are significant changes in the discount rate during the inter-valuation period.

C. Liquidity Risk:

Employees with high salaries and long durations or those higher in hierarchy, accumulate significant level of benefits. If some of such employees resign/retire from the Company there can be strain on the cash flows.

D. Market Risk:

Market risk is a collective term for risks that are related to the changes and fluctuations of the financial markets. One actuarial assumption that has a material effect is the discount rate. The discount rate reflects the time value of money. An increase in discount rate leads to decrease in Defined Benefit Obligation of the plan benefits & vice versa. This assumption depends on the yields on the corporate/government bonds and hence the valuation of liability is exposed to fluctuations in the yields as at the valuation date.

E. Legislative Risk:

Legislative risk is the risk of increase in the plan liabilities or reduction in the plan assets due to change in the legislation/regulation. The government may amend the Payment of Gratuity Act thus requiring the companies to pay higher benefits to the employees. This will directly affect the present value of the Defined Benefit Obligation and the same will have to be recognized immediately in the year when any such amendment is effective.

8. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

9. Inventories are as taken, valued and certified by the management.

b Re-Classification

b (i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability. b (ii) The Company has re-classified Fixed Deposit Investment from cash and cash equivalents to other bank balances.

b (iii) As per Ind AS, revenue shall be measured at the fair value of the consideration received or receivable. Fair Value is to be adjusted for trade discounts and volume rebates allowed by the entity. The discount and the expected cash flows should be estimated at the time of sale and the expected discount should be recognized as a reduction of revenue.

b (iv) Short/Excess Provision of Tax has been reclassified in Current Tax Expense.

b (v) Money received against Share Warrants has been reclassified to Other Equity.

c Mark to Market Forward Contract

Ind AS 109 requires all derivatives to be measured at fair value and recognize any changes in fair value on the reporting date in profit and loss account unless they are designated in a qualifying hedge relationship. Under previous GAAP derivatives were not measured at fair value. Mark to Market (MTM) gain/(loss) shall be recognized in Profit and Loss account with a corresponding derivative asset/ liability at each reporting date. The Company has hedged its liability in foreign currency by entering into forward contracts.

d Deferred Revenue

Under Indian GAAP, the Company credited capital investment subsidy in capital reserve. Under Ind AS, the Company has to recognize the capital subsidy as deferred revenue and released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e. by equal annual instilments.

e Long Term Borrowings

Ind AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognized in the profit and loss over the tenure of the borrowings as part of the interest expense by applying the effective interest rate method. Under previous GAAP, these transaction costs were charged to profit and loss as and when incurred, or were capitalized to plant and machinery if the same pertains to new project or expansion of existing facility.

f Excise Duty

Under the previous GAAP revenue from sale of products was presented exclusive of excise duty. Under Ind AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of statement of profit and loss as part of expenses

g Deferred Tax

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 Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

In addition, the various transitional adjustments lead to temporary differences. Deferred tax adjustments are recognized in correlation to the underlying transaction in retained earnings.

h Provision for Income Tax

Provision for Income Tax has been increased due to Ind AS Adjustments in Profit & Loss Account. i Government Grant

The deferred revenue relates to the asset related government grant received in earlier years, the same has been accounted for as deferred revenue against the recognition of related assets and depreciation on the same. Further such grant released to profit or loss over the expected useful life in a pattern of consumption of the benefit of the underlying asset i.e. by equal annual instilments.

j Actuarial gain/(loss) on Defined Benefit plans for Employee Benefits:

Under Ind AS, the change in defined benefit liability is split into changes arising out of service and interest cost and changes arising out of measurements. Changes due to service and interest cost are to be recognized in Profit and Loss account and the changes arising out of re-measurements are to be recognized directly in Other Comprehensive Income (OCI).


Mar 31, 2017

Note:1

Term loan from Bank of Baroda

Secured by way of hypothecation of raw material, stocks, book debt, movable assets of the company and also secured by way of equitable mortgage of a) land and building and plant and machinery of the company b) office premises situated at flat no 1 & 2 krinkal apartment, paldi, Ahmadabad belonging to the company c) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, Ahmadabad belonging to Shri Ghanshyambhai Thakkar d) plot situated at lati bazar, Ahmadabad in the name of Shri Ghanshyambhai Thakkar e) Pledge of fixed deposit of Rs, 0.73 crore f) Pledge of fixed deposit of Rs, 0.20 crore and also secured by way of personal guarantee of Shri Ghanshyambhai Thakkar and Shri Krupeshbhai Thakkar.

Note:1

Working Capital facility from Bank of Baroda

Secured by way of hypothecation of raw material, stocks, book debt, movable assets of the company and also secured by way of equitable mortgage of a) land and building and plant and machinery of the company b) office premises situated at flat no 1 & 2 krinkal apartment, paldi, Ahmadabad belonging to the company c) residential bun glow situated 4, pushpa dhanwa owners association, vastrapur, Ahmadabad belonging to Shri Ghanshyambhai Thakkar d) plot situated at lati bazar, Ahmadabad in the name of Shri Ghanshyambhai Thakkar e) Pledge of fixed deposit of'' 0.73 crore f) Pledge of fixed deposit of'' 0.20 crore and also secured by way of personal guarantee of Shri Ghanshyambhai Thakkar and Shri Krupeshbhai Thakkar.

2. Capital Commitments and Contingent Liabilities:

a. Contingent liabilities :

(1) Claims against the Company not acknowledged as debts Particulars

1. Disputed Income Tax Demand Matter Under Appeal 761,60,050/- (P.Y7NIL)

2. Disputed Excise Demand Matter Under Appeal 7 58,87,440/- (P.YRs, 58,87,440/-)

3. Disputed Custom Duty Matter Under Appeal 727,55,536/- (P.Y7NIL)

Note:

(a) It is not practicable for the company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/authorities.

(b) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

(2) OutstandingLettersofCredit738,04,964/-(P.Y752,45,012/-)

(3) Outstanding Bank Guarantee Rs, 1,73,19,170/-(PY729,42,975/-)

b. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, 7 5,54,10,254/- (previous year7 39,80,000/-)

3. Financial and derivative instruments

Derivative Contracts entered into by the company and outstanding as at March 31, 2017

4. The Previous year''s figures have been regrouped, reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

5. Balances of Unsecured Loans, Trade Receivables, Payables and Loans and Advances are subject to Confirmation from respective parties

6. During the period under review, it has been transpired that while negotiating with one of the foreign suppliers, viz. Shandong Shunitian Chemical Group Co. Ltd. one hacker has hacked the negotiation/conversation and accordingly mailed Proforma invoice from fake email ID to the purchase department of the company and asked to pay 30% of the Proforma invoice amount with specified bank details. Considering this, the company had paid an advance of US $ 26,136 (INR 16.99 lakhs) on 16.12.2016 and while came to know about the fraud, the company had filed necessary complaint online with Internet Crime Complaint Centre for recalling the advance. The company has also lodged a fraud report online with UK Police Department and till the date of this audit report, no recovery has taken place against the same. As informed by the management of the Company, there are fair chances of Recovery and therefore no amount is provided for in the books of accounts.

7. Segment Reporting:

Primary

The primary segment of the Company, comprising of ‘Decorative Laminates’, ‘Particle Board’ and ‘Medium Density Fiber Board’.

Segment wise Revenue, Results and capital employed Primary business segments - Revenue by nature of products:

8 Related Party transaction:

(a) Names of related parties and description of relationship:

Sr. No. Nature of Relationship Name of Related Parties

1 Associate Companies/Enterprise Rushil International

Decoply Agency

Shri Krupa Decorative Veneer Pvt. Ltd. Surya Panel Private Limited Ghanshyam Sales Agency Vir Studdio Pvt. Ltd. (OPC)

Ratnatej Infrastructure Pvt. Ltd.

Vir Decorative Sheets Pvt. Ltd. Ghanshyam Forwarders Pvt Ltd

2 Key Management Personal Ghanshyambhai A. Thakkar

Krupeshbhai G. Thakkar Kaushikbhai J. Thakkar Keyurbhai Gajjar Rushil K. Thakkar Vipul S Vora Hasmukh Modi

3 Relative of key management person Ghanshyambhai A. Thakkar HUF

Krupeshbhai G. Thakkar HUF Krupaben K. Thakkar Saraswatiben N. Thakkar Dinuben G. Thakkar Masumi K. Thakkar Alka G. Thakkar Ambalal D. Thakkar HUF Aditi V. Thakkar Dhara V. Thakkar Dhvanil V. Thakkar Mrunal Keyur Gajjar Manthan K. Thakkar Viresh Thakkar Snehal K Thakkar HUF Alpa S Thakkar

Precision Engineering & Fabrication

Note:- Related parties have been identified by the management.

9. Disclosures Regarding Employee Benefits

As per Accounting Standard 15 “Employee Benefits” the disclosures are given below: Defined Contribution Plan

(i) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organization established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation for the year ended 31st March, 2017 amounted to 7 1,95,86,090/- out of which company has paid 7 75,00,000/- outstanding balance in the books 71,20,86,090/- (Previous yearRs,’ 1,00,05,190/-)

(iii) Actuarial assumptions :

Retirement Agetobeassumedat 60

Rate of Discounting (p.a.) 7.34% for Laminate Segment

7.52% for MDF Segment Future Salary rise (p.a.) 6.00%

Attrition Rates (p.a.) 2.00% p.a. for all service groups

Mortality Table Indian Assured Lives Mortality (2006-08) Ultimate

Vesting Period 5 Years

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

(v) The above details are certified by the actuary.

(vi) Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosure except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 15 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

10. Corporate Social Responsibility contribution-

(a) Gross amount required to be spent by the company during the year 7 22,85,013/- (Previous year 7 16,51,016/-)

Note: The company is in process of Spending Rs 472759 towards Corporate Social Responsibility.

11. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

12. Inventories are as taken, valued and certified by the management.

13. As per the practice consistently followed, Cenvat Duty on finished goods lying in the plants at the end of the period is neither included in expenditure nor valued in such stock, but is accounted for upon clearance of goods.

14. The Government of India, vide notification dated March 30, 2016 and Circular No. 4/2016 dated April 27, 2016 had amended The Companies (Accounting Standards) Rules, 2016 effective from March 30, 2016. According to the amended rules the proposed dividend will not be recorded as a liability as at March 31, 2017 (Refer para 8.5 of AS4- Contingencies and Events occurring after the Balance Sheet date). Accordingly the proposed dividend of 7 0.5/- each per share and tax thereon are not recognized as Liability in the annual accounts of the financial year ending 31/03/2017. However, the same will be considered as Liability on approval of shareholders at ensuing Annual General Meeting.


Mar 31, 2016

Note:1

Term loan from Bank of Baroda

Secured by way of hypothecation of raw material, stocks, book debt, movable assets of the company and also secured by way of equitable mortgage of a) land and building and plant and machinery of the company b) office premises situated at flat no 1 & 2 krinkal apartment, paldi, ahmedabad belonging to the company c) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, ahmedabad belonging to Shri Ghanshyambhai Thakkar d) plot stiuated at lati bazar, ahmedabad in the name of Shri Ghanshyambhai Thakkar e) Pledge of fixed deposit of '' 0.73 crore f) Pledge of fixed deposit of '' 0.20 crore and also secured by way of personal guarantee of Shri Ghanshyambhai Thakkar and Shri Krupeshbhai Thakkar.

Note :2 Secured against pledge of keyman Insurance policies of directors.

Note :3

Loan from Karnataka VAT

Secured by way of second charge on Land & Building,Plant & Machinery of Plot No.58,59,60(P), Amble Industrial Area,Gowdanhalli, Chikmagalur.Further secured by way of Bank guarantee. The loan is repayable in 3 equal annual installment commencing from 01/04/2021 and ending on 01/04/2023.

Secured by way of hypothecation of raw material, stocks, book debt, movable assets of the company and also secured by way of equitable mortgage of a) land and building and plant and machinery of the company b) office premises situated at flat no 1 & 2 krinkal apartment, paldi, ahmedabad belonging to the comapny c) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, ahmedabad belonging to Shri Ghanshyambhai Thakkar d) plot stiuated at lati bazar, ahmedabad in the name of Shri Ghanshyambhai Thakkar e) Pledge of fixed deposit of '' 0.73 crore f) Pledge of fixed deposit of '' 0.20 crore and also secured by way of personal guarantee of Shri Ghanshyambhai Thakkar and Shri Krupeshbhai Thakkar.

4. Capital Commitments and Contingent Liabilites:

?. Contingent liabilities :

(1) Claims against the Company not acknowledged as debts Particulars

1. Disputed Income Tax Demand Matter Under Appeal Rs, NIL (P.Y Rs, 39,50,870/-)

2. Disputed Sales Tax Demand Matter Under Appeal Rs, NIL (P.Y Rs, 6,81,63,402/-)

3. Disputed Excise Demand Matter Under Appeal Rs, 58,87,440/- (P.Y Rs, NIL)

4. During the year under review, Company has received Show Cause Notice from Excise Dept Mysore for wrong a ailment of cenvat credit on capital goods and input services, against the said Show cause notice the company has submitted its Reply. (Amount Rs, 70,75,855/-)

5. During the year under review, Company has received Show Cause Notice from Excise Dept Hassan for wrongly a ailment of cenvat credit on capital goods such as Aluminum CR Sheets against the said Show cause notice the company has submitted its Reply. (Amount Rs, 1,36,300/-)

?. During the year under review ,company has received Show Cause Notice from Custom Department Ahmadabad for wrong a ailment of benefit against Stores & Components Clearance benefit under on Status Holder Incentive Scrip Scheme against the said Show cause notice the company has submitted its Reply.(Amount Rs, 22,55,536/-)

Note:

(a) It is not practicable for the company to estimate the timings of cash outflows, if any, in respect of the above, pending resolution of the respective proceedings as it is determinable only on receipt of judgments/decisions pending with various forums/ authorities.

(b) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

(2) Outstanding Letters of Credit Rs, 52,45,012/-(P.Y Rs, 2,68,26,028/-)

(3) Outstanding Bank Guarantee Rs, 29,42,975/- (PY Rs, NIL) a. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, Rs, 39,80,000/- (previous year Rs, Nil)

5. Financial and derivative instruments

Derivative Contracts entered into by the company and outstanding as at March 31, 2016 (a) For hedging currency

6. The Previous year’s figures have been regrouped reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

7. Balances of Unsecured Loans, Trade Receivables, Payables and Loans and Advances are subject to Confirmation from respective parties

8. Segment Reporting:

Primary

The primary segment of the Company, comprising of ‘Decorative Laminates’ , ‘Particle Board’ and ‘Medium Density Fiber Board’ .

Segment wise Revenue, Results and capital employed Primary business segments - Revenue by nature of products:

9. Related Party transaction:

(a) Names of related parties and description of relationship:

Sr. No. Nature of Relationship Name of Related Parties

1 Associate Companies/Enterprise Rushil International

Vertex Laminate Pvt. Ltd.

Decoply Agency

Shri Krupa Decorative Veneer Pvt. Ltd. Ghanshyam Sales Agency Vir Studdio Pvt. Ltd.

Ratnatej Infrastructure Pvt. Ltd.

Ghanshyam Forwarders Pvt Ltd (Previously known as Vertex Laminate Pvt Ltd)

2 Key Management Personal Ghanshyambhai A. Thakkar

Krupeshbhai G. Thakkar Kaushikbhai J. Thakkar Krupaben K. Thakkar Keyurbhai Gajjar Rushil K. Thakkar Vipul S Vora Hasmukh Modi

3 Relative of key management person Ghanshyambhai A. Thakkar HUF

Krupeshbhai G. Thakkar HUF Saraswatiben N. Thakkar Dinuben G. Thakkar Alka G. Thakkar Ambalal D. Thakkar HUF Aditi V. Thakkar Dhara V. Thakkar Dhvanil V. Thakkar Mrunal Keyur Gajjar Manthan K. Thakkar Snehal K Thakkar HUF Alpa S Thakkar

Precision Engineering & Fabrication

Note:- Related parties have been identified by the management.

(i) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organization established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation for the year ended 31st March, 2016 amounted to '' 1,25,05,190 out of which company has paid Rs, 25,00,000/- so outstanding balance in the books Rs, 1,00,05,190/- (Previous year Rs, 56,60,115/-)

(iii) Actuarial assumptions :

Retirement Age to be assumed at 60

Rate of Discounting (p.a.) 8.38%

Future Salary rise (p.a.) 8.00%

Attrition Rates (p.a.) For ages 40 yrs & Below 5.00 % p.a. &

For ages 41 yrs and above 1.00 % p.a.

Mortality Table Indian Assured Lives Mortality (2006-08) Ultimate

Vesting Period 5 Years

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

(v) The above details are certified by the actuary.

(vi) Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosure except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 15 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

10. Corporate Social Responsibility contribution-

(a) Gross amount required to be spent by the company during the year Rs, 16,51,016/- (Previous year Rs, 15,51,758/-)

(b) Amount spent during the year on:

11. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

12. Inventories are as taken, valued and certified by the management.

13. As per the practice consistently followed, Cenvat Duty on finished goods lying in the plants at the end of the period is neither included in expenditure nor valued in such stock, but is accounted for upon clearance of goods.

1

This includes only membership / chairmanship in Audit Committee and Stakeholders Relationship Committee of all Public Limited Company excludes private limited companies, foreign companies, companies registered under Section 8 of the Companies Act, 2013.

(C) Information supplied to the Board of Directors

The dates of Board and Committee Meetings were communicated to the Directors and Committee members respectively well in advance in compliance with various provision of the law. Members were given agenda in details along with necessary documents and information in advance of each meeting of the Board and Committee(s) by email as well as in meeting itself also except price sensitive information which was available in meeting only. However, in case of business necessities or urgencies, some resolutions were passed by way of circulation.


Mar 31, 2015

Note:1

Term loan from Bank of Baroda

Secured by way of hypothecation of raw material, stocks, book debt, movable assets of the company and also secured by way of equitable mortgage of a) land and building and plant and machinery of the company b) office premises situated at flat no 1 & 2 krinkal apartment, paldi, ahmedabad belonging to the company c) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, ahmedabad belonging to Shri Ghanshyambhai Thakkar d) plot stiuated at lati bazar, ahmedabad in the name of Shri Ghanshyambhai Thakkar e) Pledge of fixed deposit of '' 0.73 crore f) Pledge of fixed deposit of '' 0.20 crore and also secured by way of personal guarantee of Shri Ghanshyambhai Thakkar and Shri Krupeshbhai Thakkar.

Term of Repayment

Working Capital facility from Bank of Baroda

Secured by way of hypothecation of raw material, stocks, book debt, movable assets of the company and also secured by way of equitable mortgage of a) land and building and plant and machinery of the company b) office premises situated at flat no 1 & 2 krinkal apartment, paldi, ahmedabad belonging to the comapny c) residential bunglow situated 4, pushpa dhanwa owners association, vastrapur, ahmedabad belonging to Shri Ghanshyambhai Thakkar d) plot stiuated at lati bazar, ahmedabad in the name of Shri Ghanshyambhai Thakkar e) Pledge of fixed deposit of Rs. 0.73 crore f) Pledge of fixed deposit of Rs. 0.20 crore and also secured by way of personal guarantee of Shri Ghanshyambhai Thakkar and Shri Krupeshbhai Thakkar.

2. Capital Commitments and Contingent Liabilites:

a. Contingent liabilities :

(1) Claims against the Company not acknowledged as debts

(i) Disputed Income Tax Demand Matter under Appeal Rs. 39,50,870 (P.Y Rs. 12,56,878)

(ii) Disputed Sales Tax Demand Matter under Appeal Rs. 6,81,63,402 (P.Y Rs. NIL)

(iii) Suit filed against the company u/s 92 of the Factories Act, 1948 and u/s 304A of the Indian Penal Code with respect to an accident which took place at the medium density fibre board manufacturing plant, Chikmagalur in the state of Karnataka with Additional Civil Judge, Senior Division, Chikmagalur, Karnataka [ (Amount Rs. NIL)(P.Y amount Unascertainable)]

(iv) Suit filed against the company under the Factories Act, 1948 with respect to particle board manufacturing plant, Navalgadh, Gujarat, with Judicial Magistrate (First Class) Court, Dhrangadhra,Gujarat [( Amount Unascertainable)(P.Y Amount Unascertainable)]

Note:

(a) It is not practicable for the company to estimate the timings of cash outflows, if any, in respect of the above,pending resolution of the respective proceedings as it is determinable only on receipt of judgements/ decisions pending with various forums/ authorities.

b) The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed as contingent liabilities where applicable, in its financial statements.The Company does not expect the outcome of these proceedings to have a materially adverse effect on its financial results.

(2) Outstanding Letters of Credit Rs. 2,68,26,028 (P.Y Rs. 60,29,033)

b. Commitments:

Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, Rs. Nil/- (previous year Rs. 2,38,10,646/-)

3. During the year under review, the company has sold sizable fixed assets of its Navalgadh Unit resulted in loss of Rs. 601.91 lacs. The said loss is reflected under the extraordinary item in the statement of Profit & Loss.

4. Financial and derivative instruments

Derivative Contracts entered into by the company and outstanding as at March 31, 2015.

(a) For hedging currency

5. Pursuant to the requirement of the Companies Act, 2013, effective from 1st April, 2014 the company has reassessed remaining useful life of the fixed assets, prescribed by Schedule II of the act, or actual useful life of the asset which ever is lower. In case of any asset whose useful life has completed as above, the carrying value (net of residual value) of Rs. 19.17 lakh (net of deferred tax credit of Rs. 9.21 lakhs) has been adjusted in the opening balance of retained earnings as on 01- 4-2014 and in other cases the carrying value has been depreciated over the remaining of the revised life of the asset and recognized in the statement of Profit and loss.

6. The Previous year''s figures have been regrouped reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

7. Balances of Unsecured Loans, Trade Receivables, Payables and Loans and Advances are subject to Confirmation from respective parties

8. Segment Reporting:

Primary

The primary segment of the Company, comprising of ''Decorative Laminates'' , ''Particle Board'' and ''Medium Density Fiber Board''.

9. Related Party transaction:

(a) Names of related parties and description of relationship:

Nature of Relationship

1 Associate Companies/Enterprise

Rushil International

Vertex Laminate Pvt. Ltd.

Decoply Agency

Shri Krupa Decorative Veneer Pvt. Ltd.

Ghanshyam Sales Agency Vir Studdio Pvt. Ltd.

Ratnatej Infrastructure Pvt. Ltd.

Ghanshyam Forwarders Pvt Ltd

(Previously known as Vertex Laminate Pvt Ltd)

2 Key Management Person

Ghanshyambhai A. Thakkar

Krupeshbhai G. Thakkar

Kaushikbhai J. Thakkar

Krupaben K Thakkar

Keyurbhai Gajjar

Rushil K. Thakkar

Vipul S Vora

Hasmukh Modi

3 Relative of key management person

Ghanshyambhai A. Thakkar HUF

Krupeshbhai G. Thakkar HUF

Saraswatiben N. Thakkar

Dinuben G. Thakkar

Alka G. Thakkar

Ambalal D. Thakkar HUF

Aditi V. Thakkar

Dhara V. Thakkar

Dhvanil V. Thakkar

Mrunal Keyur Gajjar

Manthan K. Thakkar

Snehal K Thakkar HUF

Alpa S Thakkar

Precision Engineering & Fabrication

(i) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organization established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation for the year ended 31st March, 2015 amounted to Rs. 81,60,115/- out of which company has paid Rs. 25,00,000/- so outstanding balance in the books Rs. 56,60,115/- (Previous year Rs. 61,39,162/-)

(iii) Actuarial assumptions :

Retirement Age to be assumed at 58 Rate of Discounting (p.a.) 7.92%

Future Salary rise (p.a.) 8.00%

Attrition Rates (p.a.) For ages 40 yrs & Below 5.00 % p.a. & For ages 41 yrs and above 1.00 % p.a.

Mortality Table Indian Assured Lives Mortality (2006-08) Ultimate

Vesting Period 5 Years

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

(v) The above details are certified by the actuary.

(vi) Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosure except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 15 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

10. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

11. Inventories are as taken, valued and certified by the management.

12. In absence of the complete information regarding the status of the suppliers as micro, small or medium enterprise as per the micro, small and medium enterprise development act, 2006 the information regarding the amount due to such parties as on the balance sheet date and provision for interest if any required by the said act is not been made.


Mar 31, 2014

1. Capital Commitments and Contingent Liabilities:

a. Contingent liabilities :

PARTICULARS As At As At 31st March, 2014 31st March, 2013 (in Rs.) (in Rs.)

Outstanding Letter of Credit 6029033 28221500

Disputed Income Tax Demand- Matter under Appeal 1256878 1256878

There is a case u/s.92 of the Factories Act,1948 as well as u/s. 304A of 100000 100000 the Indian Penal Code for accidents at Chikmagalur, Medium density fiber board manufacturing plant. The case is at additional Civil Judge, Senior Division, Chikmagalur. The matter is pending for decision by court.

There is a case of the Factories Act,1948 for accidents at Navalgadh, 100000 - Particle board manufacturing plant. The case is at Judicial Magistrate (first class) court,Dhrangadhra. The matter is pending for decision by court.

Theft of Cash ( Also refer note no 32 of Notes on Financial Statements) 600000 -

b. Commitments:

(i) Estimated amount of contracts remaining to be executed on capital account and not provided for net of advances, Rs. 2,38,10,646/- (previous year Rs. NIL)

2. The Previous year’s figures have been regrouped reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

3. Balances of Unsecured Loans, Trade Receivables, Payables and Loans and Advances are subject to Confirmation.

4. A theft of Rs.6 lacs while carrying the cash from the bank account had taken place during the year under review. The company has lodged First Information Report with the Police authorities as well as lodged the claim with the insurance company for the same. Pending the settlement of the claim, no entry for the loss on account of theft of cash has been made in the books of accounts.

5. During the year under review, the company has discontinued its particle board manufacturing activities at its Navalgadh Unit with effect from 22.02.2014. The company has also surrendered necessary licenses under excise authorities and with effect from 01.03.2014 the said Navalgadh unit has been leased out to third party for carrying out the operations.

6. Segment Reporting:

Primary

The primary segment of the Company, comprising of ‘Decorative Laminates’ , ‘Particle Board’ and ‘Medium Density Fiber Board’.

7. Related Party transaction:

(a) Names of related parties and description of relationship:

Sr. No Nature of Relationship Name of Related Parties

1 Associate Companies/Enterprise Rushil International

Vertex Laminate Pvt. Ltd.

Decoply Agency

Shri Krupa Decorative Veneer Pvt. Ltd.

Ghanshyam Sales Agency

Vir Studdio Pvt. Ltd.

Ratnatej Infrastructure Pvt. Ltd.

2 Key Management Person Ghanshyambhai A. Thakkar

Krupeshbhai G. Thakkar

Kaushikbhai J. Thakkar

Krupaben K Thakkar

Keyurbhai Gajjar

Rushil K. Thakkar

3 Relative of key management Ghanshyambhai A. Thakkar HUF person Krupeshbhai G. Thakkar HUF

Saraswatiben N. Thakkar

Dinuben G. Thakkar

Rushil K. Thakkar

Alka G. Thakkar

Ambalal D. Thakkar HUF

Aditi V. Thakkar

Dhara V. Thakkar

Dhvanil V. Thakkar

Mrunal Keyur Gajjar

Manthan K. Thakkar

(i) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organization established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation for the year ended 31st March, 2014 amounted to Rs. 61,39,162/- (Previous year Rs. 41,71,447/-)

(iii) Actuarial assumptions :

Retirement Age to be assumed at 58

Rate of Discounting (p.a.) 9.25%

Future Salary rise (p.a.) 8.00%

Attrition Rates (p.a.) For ages 40 yrs & Below 5.00 % p.a. & For ages 41 yrs and above 1.00 % p.a.

Mortality Table Indian Assured Lives Mortality (2006-08) Ultimate Vesting Period 5 Years

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

(v) The above details are certified by the actuary.

(vi) Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosure except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 15 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

8. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

9. Inventories are as taken, valued and certified by the management.

10. In absence of the complete information regarding the status of the suppliers as micro, small or medium enterprise as per the micro, small and medium enterprise development act, 2006 the information regarding the amount due to such parties as on the balance sheet date and provision for interest if any required by the said act is not been made.

11. As per the practice consistently followed, Cenvat Duty on finished goods lying in the plants at the end of the period is neither included in expenditure nor valued in such stock, but is accounted for upon clearance of goods.


Mar 31, 2013

1. Capital Commitments and Contingent Liabilities:

a. Contingent liabilities :

PARTICULARS As At As At 31st March, 2013 31st March, 2012 (in Rs.) (in Rs.)

Corporate Guarantee given by the company NIL 20055357 for loan taken by Vertex Laminate Pvt. Ltd.

Outstanding Letter of Credit 28221500 16759603

Disputed Income Tax Demand 1256878 NIL

- Matter under Appeal

Disputed Custom Duty 770000 770000

b. Commitments:

(i) Estimated amount of contracts remaining to be execu ted on capital account and not provided for net of advances, Rs. NIL/- (previous year Rs. 54,89,869/-)

2. The expenses in connection with the issue of equity shares amounting to Rs. 33,02,627/- has been adjusted against Security Premium account.

3. The Previous year''s figures have been regrouped reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

4. Balances of Unsecured Loans, Trade Receivables, Payables and Loans and Advances are subject to Confirmation.

5. Disclosures Regarding Employee Benefits

As per Accounting Standard 15 " Employee Benefits" the disclosures are given below :

Defined Contribution Plan

Contribution to defined contribution plan, recognized as expense for the year is as under :

(i) Defined Contribution Plan: Employee benefits in the form of Provident Fund are considered as defined contribution plan and the contributions to Employees Provident Fund Organization established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act, 1948, respectively, are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan: Retirement benefits in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation for the year ended 31st March, 2013 amounted to Rs. 41,71,447/- (Previous year Rs. 32,12,844/-)

(iii) Actuarial assumptions :

Mortality Table (LIC) LIC 1994-1996

Discount Rate (per annum) 8

Expected rate of return on plan assets (per annum) -

Rate of escalation in salary (per annum) 6

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

(v) The above details are certified by the actuary.

(vi) Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosure except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 15 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

6. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

7. Inventories are as taken, valued and certified by the management.

8. In absence of the complete information regarding the status of the suppliers as micro, small or medium enterprise as per the micro, small and medium enterprise development act, 2006 the information regarding the amount due to such parties as on the balance sheet date and provision for interest if any required by the said act is not been made.

9. As per the practice consistently followed, Cenvat Duty on finished goods lying in the plants at the end of the period is neither included in expenditure nor valued in such stock, but is accounted for upon clearance of goods.


Mar 31, 2012

1. Capital Commitments and Contingent Liabilities:

a) Contingent liabilities :

(i) Corporate Guarantee of Rs. 2,00,55,357 (P.Y Rs. 6,00,00,000/-) Given by company for loan taken by Vertex Laminates Pvt ltd

(ii) Outstanding Letter of Credit Rs. 1,67,59,603/- (Previous Year Rs. 2,03,00,014 /-)

(iii) Custom Duty of Rs. 7.70 lakh (Rs. 3.85 lakh each for Unit MRPL and Unit RHPL) demanded by the Central Excise and Customs Authority being disputed by the company, has not been accounted for. The company has deposited Rs. 4.08 lakh ( Rs. 2.04 lakh each for Unit MRPL and Unit RHPL) under protest till the date of our audit and the same has been clubbed under the head Loans & Advances.

b) Commitments:

(i) Estimated account of contracts remaining to be executed on capital account and not provided for net of advances, Rs. 54,89,869/- (previous year Rs. 2,38,64,322/-)

2. During the year the Company has came out with its Initial Public Offering (IPO) Comprising of 56,43,750 Equity shares of Rs. 10/-each as at a premium of Rs. 62/- per share aggregating to Rs. 5,64,37,500/-.The Security premium of Rs.62/- per share amounting to Rs. 34,99,12,500/- has been credited to Security Premium account. The expenses in connection with issue of Equity Shares amounting to Rs. 1,94,62,774 /- has been adjusted against Securities Premium account. The Funds raised though Initial Public Offering have been utilized as under:

3. Financial and derivative instruments

Derivative Contract enter into by the company and outstanding as at March 31, 2012

(a) For hedging currency

(b) The Company uses forward contracts to hedge its risk associated with foreign currency fluctuation. The Company does not use forward contracts for speculative purposes.

4. The Previous year's figures have been regrouped reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

5. Balances of Trade Receivables ,Trade Payables ,Unsecured loans and Loans and Advances are subject to Confirmation from Respective parties.

6. Segment Reporting:

Primary

The primary segment of the Company, comprising of 'Decorative, Laminates' and 'Particle Board'.

Segment wise Revenue, Results and capital employed

Primary business segments - Revenue by nature of products:

7. Disclosures Regarding Employee Benefits

As per Accounting Standard 15 " Employee Benefits" the disclose of employee benefits as defined in the Accounting Standard are given below :

Defined Contribution Plan

: (i) Defined Contribution Plan : Employee benefits in the form of Provident Fund and ESIC are considered as defined contribution plan and the contributions to Employees Provident Fund Organization established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act,1948,respectively,are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan : Retirement benefit in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation for the year ended 31st March, 2012 amounted to Rs. 32,12,844/- (Previous year Rs. 22,54,241/-)

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

(v) The above information is certified by the actuary.

(vi) Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosure except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 15 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

8. In the opinion of the Board of Directors, the current assets, loans and advances are approximately of the value stated, if realized in the ordinary course of business and the provisions for depreciation and all known and ascertained liabilities are adequate and not in excess of the amounts reasonably necessary.

9. Inventories are as taken, valued and certified by a Director.

10. In absence of the complete information regarding the status of the suppliers as micro, small or medium enterprise as per the micro, small and medium enterprise development act, 2006 the information regarding the amount due to such parties as on the balance sheet date and provision for interest if any required by the said act is not been made.

11. As per the practice consistently followed, Cenvat Duty on finished goods lying in the plants at the end of the period is neither included in expenditure nor valued in such stock, but is accounted for upon clearance of goods. This has no effect on profit/loss for the period.


Mar 31, 2011

1. Estimated account of contracts remaining to be executed on capital account and not provided for net of advances, Rs. 2,38,64,322/- (previous year Rs. 19,99,77,175/-)

2. Contingent Liability :

(i) Claim against the Company not acknowledged as debts for L.C. issued by bank Rs. 2,03,00,014/- (Previous Year Rs. 7,57,86,015/-)

(ii) Custom Duty of Rs 7.70 lakh (Rs 3.85 lakh each for Unit MRPL and Unit RHPL) demanded by the Central Excise and Customs Authority being disuputed by the company, has not been accounted for. The company has deposited Rs 4.08 lakh (Rs 2.04 lakh each for Unit MRPL and Unit RHPL) till the date of our audit under protest and the same has been clubbed under the head Loans & Advances.

(iii) Interest of Rs. 15,12,986/- (unit MRPL) on amount of income tax payable raised by income tax department being disputed by the company has not been accounted. The company has deposited Rs. 15,12,986/- and the same has been clubbed under the head Loans & Advances.

3. The Previous year’s figures have been regrouped reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

4. Managerial Remuneration: Rs. 43,30,549/- (Previous Year Rs. 42,72,949/-)

5. Confirmation of balances received / to be received from debtors, creditors, consignment agents and advances are required to be reconciled whenever necessary and suitably adjusted.

6. Sundry debtors considered good include Rs 3,51,090/- for the recovery of which the Company has initiated legal actions.

7. As per information and explanation given to us, company has started installation of plant and machineries for the production of Medium Density Fibre Board at Chikmagalur, in state of Karnataka and has obtained Term loan for the said purpose. Said project is under process. All the expenditure including interest incurred till the last day of the year are capitalized under the head “Pre Operative Expenditure”

8. Disclosures Regarding Employee Benefits :

(i) Defined Contribution Plan : Employee benefits in the form of Provident Fund and ESIC are considered as defined contribution plan and the contributions to Employees Provident Fund Organization established under The Employees Provident Fund and Miscellaneous Provisions Act 1952 and Employees State Insurance Act,1948,respectively,are charged to the profit and loss account of the year when the contributions to the respective funds are due.

(ii) Defined Benefit Plan : Retirement benefit in the form of Gratuity are considered as defined benefit obligation and are provided for on the basis of third party actuarial valuation, using the projected unit credit method, as at the date of the Balance Sheet. As the Company has not funded its liability, it has nothing to disclose regarding plan assets and its reconciliation. Defined Benefit Obligation for the year ended 31st March, 2011 amounted to Rs. 22,54,241/- (Previous year Rs. 16,51,039/-)

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

(v) The above information is certified by the actuary.

(vi) Para 132 of Accounting Standard 15 (revised 2005) does not require any specific disclosure except where expense resulting from compensated absence is of such size, nature or incidence that its disclosure is relevant under Accounting Standard 5 or Accounting Standard 18. In the opinion of the management the expense resulting from compensated absence is not significant and hence no disclosures are prepared under various paragraphs of AS 15 (revised 2005).

9 . Figures have been rounded to the nearest rupee value.

10. Trade deposit received from Dealers/Customers, consignment agents are clubbed under unsecured loans received from others.

11. Company has raised equity share capital of Rs 5,64,37,500/- divided into 56,43,750 Shares of Rs 10/- each with a premium of Rs 62/- per share, through Initial Public Offer during the Financial Year 2011-2012. Such shares are allotted on 2nd July, 2011 . Provision for proposed dividend @ 5 % on equity share capital i.e. on total 1,44,00,000 equity shares have been made.

12. All items of inventories as on 31st March, 2011 is taken as inventories taken, value and certified by management of the company.

13. During the Year company has started to maintain inventory record of process stock.

14. Deferred Tax :

a) Consequent to the issuance of Accounting Standard 22 ‘ Accounting for Taxes on Income the Institute of Chartered Accountant of India , the Company has recognized the deferred tax liability aggregating to Rs. 67,73,670/- in the profit and loss account in the current year.

15. Segment Reporting :

Primary

‘Business’ is the primary segment of the Company, comprising of ‘Decorative Laminates’ and ‘Particle Board’.

Primary business segments – Revenue by nature of products: * Net of trading Sales of Rs. 1,09,11,247/- (previous year Rs 1,04,74,728/-)

16. The balance due to directors during the period. Maximum Balance Rs.10,63,80,157/- Cr and Minimum Balance Rs.6,37,357/- ( Previous Year : Maximum Balance Rs. 5,43,09,065/-Cr and Minimum Balance Rs. 22,157/- )

17. Sundry creditors includes Rs. 10,16,289/- due to Small Scale & Ancillary industrial unit which is outstanding for more than 30 days as at the Balance Sheet date. (Previous year Rs. 6,01,088 /-) This disclosure is based on the information available with the company, regarding the status of the suppliers.

18. As per the practice consistently followed, Cenvat Duty on finished goods lying in the plants at the end of the period is neither included in expenditure nor valued in such stock, but is accounted for on clearance of goods. This has no effect on profit/loss for the period.

Notes to Cash Flow :-

1. All figures in bracket are outflow.

2. The above Cash Flow Statement has been prepared under the ‘ Indirect Method’ as set out in Accounting Standard 3 on “ Cash Flow Statement “ issued by The Institute of Chartered Accountant of India.


Mar 31, 2009

1. Estimated account of contracts remaining to be executed on capital account and not provided for net of advances, Rs. 7,26,96,199/- (previous year Rs. NIL)

2. Contingent Liability:

Claim against the Company not acknowledged as debts for L.C. issued by bank Rs. 1,31,71,807/- (Previous Year Rs. 3,25,30,685/-)

3. The Previous year's figures have been regrouped reworked, rearranged and reclassified wherever necessary to make them comparable with current year figures.

5. Managerial Remuneration: Rs. 42,83,734/-. (Previous Year Rs. 41,00,000/-)

6. Confirmation of balances received I to be received from debtors, creditors, consignment agents and advances are required to be reconciled whenever necessary and suitably adjusted.

7. Sundry debtors considered good include Rs. 16.59 lakhs for the recovery of which the Company has initiated legal actions.

8. As information and explanation given to us, Company has started installation of Plant and Machineries for the production of Particle Board at Navalgadh, Dhangadhra, which is under process. For said purpose company has obtained Term Loan from Allahabad Bank which is under process. All the expenditure including interest incurred till the last day of the year are capitalized under the head "Pre-Operative Expenditure".

9. Based on the guiding principles given in the Accounting Standard on Segment Reporting (AS 17) the Company is primarily in the business of manufacture and sale of Laminated Sheets which mainly have similar risk and returns. The Company's business activity falls within a single geographical business segment (Laminated Sheet), hence it has no primary reportable segments.

10. Figures have been rounded to the nearest rupee value.

11. Trade deposit received from Dealers/Customers, consignment agents are clubbed under unsecured loans Received From Others.

12. Commission income received during the year Rs. 26.50 lakhs are clubbed with miscellaneous income under the head other income. (Previous Year Rs. 118 Lakhs)

13. All items of inventories as on 31st March, 2009 is taken as inventories taken, valued and certified by management of the company.

14. Deferred Tax:

a) Consequent to the issuance of Accounting Standard 22 ' Accounting for Taxes on Income' the Institute of Chartered Accountants of India, the Company has recognized the deferred tax liability aggregating to Rs 19,13,524/- in the profit and loss account in the current year.

b) Break up of Deferred Tax Liabilities and Deferred Tax Assets into major components of the respective balances are as under:

15. Sundry creditors includes Rs. 11,38,499 due to Small Scale & Ancillary industrial unit which is outstanding for more than 30 days as at the Balance Sheet date. (Previous year Rs. 23,30,506/-) This disclosure is based on the information available with the company, regarding the status of the suppliers.

16. As per the practice consistently followed, Cenvat Duty on finished goods lying in the plants at the end of the year is neither included in expenditure nor valued in such stock, but is accounted for on clearance of goods. This has no effect on profit/loss for the year.

Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X