Notes to Accounts of Sahyadri Industries Ltd.

Mar 31, 2018

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Rental expenses of Rs. 3.45 Lacs (P.Y. Rs. 3.45 Lacs) in respect of obligation under non-cancellable operating leases have been charged to statement of Profit and Loss. Further a sum of Rs. 39.39 Lacs (P.Y. Rs. 26.64 Lacs) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements : (i) The company has taken premises on operating lease, (ii) Lease rentals are charged to the Profit and Loss Account for the year, (iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms, (v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

36 Earning per Share (EPS)

Particulars	2017-18	2016-17
- Net Profit after tax as per Statement of Profit and Loss
attributable to the Equity Shareholders (Rs. in Lacs) - (A)	2,441.90	299.72
- Basic / Weighted average number of Equity Shares
outstanding during the year - (B)	9,561,500	9,561,500
- Nominal value of Equity Shares (Rs.)	10.00	10.00
- Basic/ Diluted Earning per Share (Rs.) - (A)/(B)	25.54	3.13

Note: The company did not have any potentially dilutive securities in any of the periods presented.

37 Segment information

37.1 Segment description:

Operating segments are reported in a manner consistent with the internal reporting provided to the Chairman and Managing director who are responsible for allocating resources to and assessing the performance of operating segments. Following Business segments have been considered as primary segments:

a) Building Material segment, which consists of manufacturing and trading of asbestos sheets, flat sheets, non-asbestos flat sheets, accessories for roofing products, doors and other building material.

b) Power Generation segment, which consists of generation of electricity through windmills.

37.2 Segment accounting policies:

In addition to the significant accounting policies applicable to the business segments as set out in note 1 above, the accounting policies in relation to segment accounting are as under:

i. Segment revenue and expenses:

Segment revenue and expenses include the respective amounts identifiable to each of the segments. Unallocable items in segment results include income from bank deposits, Dividend, Profit on sale of investments and corporate expenses.

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)
Particulars	As at March 31,2018	As at March 31,2017

ii. Segment assets and liabilities:

Segment assets include all operating assets used by a segment and consist principally of operating

cash, trade receivables, inventories and fixed assets (net of allowances and provisions), which are

reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and

consists principally of creditors and accrued liabilities.

The measurement of each segment''s revenues, expenses and assets is consistent with the accounting

policies that are used in preparation of the Company''s financial statements.

iii. Intersegment revenue:

The company adopts a policy of pricing inter segment revenue at comparable cost to the transferee segment.

(i) Segment Revenue
a) Building Material	26,921.95	27,502.78
b) Power Generation	1,175.45	1,429.02
	28,097.40	28,931.80
Less : Inter Segment Revenue	265.94	406.12
Net Sales / Income from Operations	27,831.46	28,525.68

(ii) Segment Results Profit / (Loss) before tax and interest from each segment

a) Building Material	4,061.49	1,509.89
b) Power Generation
General	354.03	490.65
Extra ordinary	260.78	-
	4,676.31	2,000.54
Less :- (I) Finance cost (II) Unallocable Expenditure net of unallocable Income	1,128.92	1,603.62
Add:- Un-allocable income Net of unallocable Expenditure	18.21	38.27
Profit / (Loss) Before Income Tax	3,565.60	435.18
(III) Segment Assets a) Building Material	22,675.76	23,100.23
b) Power Generation	6,329.46	7,121.92
c) Unallocable	-	-
	29,005.22	30,222.15
(IV) Segment Liablities
a) Building Material	15,679.30	18,462.38
b) Power Generation	249.78	1,132.66
c) Unallocable	-	-
	15,929.08	19,595.04

Notes to the Financial statement for the vear ended March 31,2018

(Rs in Lacs unless otherwise stated)
Particulars	As at March 31,2018	As at March 31,2017
(V) Geographical segment
a) Revenue by location of customers
India	25,677.76	25,457.06
Outside India	2,153.70	3,068.63
	27,831.46	28,525.68
b) Non current assets
India	17,119.79	19,420.83
Outside India	-	-
	17,119.79	19,420.83

38 Corporate Social Responsibility expenditure

Expenditure incurred on corporate social responsibility activities is Rs. 1.24 Lacs (Previous Year -Rs. 7.24 Lacs) Average net profitless) for last three financial years calculated as per section 198 of Companies Act, 2013 is Rs. (119) Lacs.

39 Financial Instruments and Risk Management A) Accounting classification and fair value :

The following table shows the carrying amounts and fair values of Financial assets and financial liabilities including their levels in the fair value hierarchy -

in Lacs

Particulars	As at 3 1st March 2018				As at 3 1st March 2017
	Carrying	Level of inputs used			Carrying	Level of inputs used
	amount				amount
		Level 1	Level 2	Level 3		Level 1	Level 2	Level 3
Financial assets
At Amortised cost
Trade receivables	3,667.44	-	-	-	3,394.99	-	-	-
Cash & cash equivalents	391.04	-	-	-	177.36	-	-	-
Loans & Advances	0.46	-	-	-	2.16	-	-	-
Others
-Non current	314.70	-	-	-	330.86	-	-	-
-current	20.87	-	-	-	16.99	-	-	-
At fair value through OCI
Investments	14.2	-	-	14.2	14.2	-	-	14.2

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Particulars	As at 3 1st March 20 18				As at 3 1st March 20 17
	Carrying	Level of inputs used			Carrying	Level of inputs used
	amount				amount
		Level 1	Level 2	Level 3		Level 1	Level 2	Level 3
Financial Liabilities
At Amortised cost
Borrowings
-Non current	4,141.54	-	-	-	8,165.33	-	-	-
-current	4,679.89	-	-	-	1,662.18	-	-	-
Trade payables	2,787.81	-	-	-	2,781.51	-	-	-
Others
-Non current	-	-	-	-	577.09	-	-	-
-current	2,678.70	-	-	-	3,423.47	-	-	-

The financial instruments are categorised in to three levels based on the inputs used to arrive at fair value measurements as described below-

Level 1 - Quoted prices in active markets for identical assets and liabilities.

Level 2 - Inputs other than the quoted prices included within level 1 that are observable for assets or

liability eitherdirectly or indirectly.

Level 3 - Inputs based on unobservable market data

Management uses its best judgement in estimating fair value of financial instruments. However there are inherent limitations in any estimation techniques. Therefore forsubstantiallyallfinancial instruments, the fair value estimates presented above are not necessarily indicative of the amounts that the company could have realised or paid in sale transactions as on respective date. As such the fair value of financial instruments subsequent to the reporting date may be different form the amounts reported at each reporting date.

B) Financial Risk Management

The company has a exposure to the following risks arising from financial instruments -

- Credit risk

- Liquidity risk

- Market risk

i. Risk Management

The Company''s senior management oversees the management of these risks. The senior management assesses the unpredictability of the financial environment and seeks to mitigate potential adverse effects on the financial performance of the company.

ii. 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) and from its financing activities, including deposits with banks and financial institutions and otherfinancial instruments.

Trade Receivables

Customer credit risk is managed subject to the Company''s established policy, procedures and control relating to customer credit risk manangment. Credit quality of a customer is assessed based on an extensive credit rating socrecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored.

Cash and cash equivalents

Bank deposits are made with reputed banks and hence credit risk associated with it is generally low.

iii. Liquidity Risk

Liquidity risk is defined as the risk that the company will not be able to settle or meet its obligations on time. The company''s approach to managing liquidity is to ensure as far as possible, that it will have sufficient liquidity to meet its liability when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the comapny''s reputation. The table below analyses the company''s financial liabilities into relevant maturity grouping based on their contractual maturities

				Rs. in Lacs
Particulars	Less than 1	1 to 5 Years	>5 Years	Total
Year ended 31st March 2018
Borrowings	4,679.89	4,141.54	-	8,821.43
Other Financial Liabilities	2,678.70	-	-	2,678.70
Trade & Other Payable	2,787.81	-	-	2,787.81
	10,146.40	4,141.54	-	14,287.94
Particulars	Less than 1	1 to 5 Years	>5 Years	Total
		Year
Year ended 31st March 2017
Borrowings	1,662.18	8,165.33	-	9,827.51
Other Financial Liabilities	3,423.47	577.09	-	4,000.56
Trade & Other Payable	2,781.51	-	-	2,781.51
	7,867.15	8,742.42	-	16,609.57

iii. Market Risk

Market risk is the risk of loss of future earnings, fair values or future cash flows that may result from change in the price of financial instruments. Market risk comprise of three types of risks: interest risk, foreigh currency fluctuation risk and other price risk such as commodity price risk. The objective of market risk management is to manage and control market risk exposure within acceptable parameters while optimizing profits.

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Foreign currency risk

The summary of quantitative data about company''s exposure to currency risk is as follows:

		Rs. in Lacs
Particulars	31.03.2018	31.03.2017
Trade Receivables
US$	520.78	2,939.12
Trade Payables
US$	651.61	124.94
Trade Advances
US$	397.74	1,274.34
Advance form customers
US$	-	228.36
Foreign currency borrowings
US$	-	183.82
Net exposure to foreign currency risk (assets)	266.90	3,676.34

Foreign currency sensitivity analysis

The following table demonstrates sensitivity to a reasonable possible change in foreign currency exchange rates with all other variables held constant:

Rs. in Lacs
Change in US $	Profits/(Loss)		Equity net of tax
	31.03.2018	31.03.2017	1.03.2018	31.03.2017
5% increase	13.35	183.82	9.14	124.29
5% decrease	(13.35)	(183.82)	(9.14)	(124.29)

Interest rate risk

The company''s exposure to the changes in market interest rate relates to floating rate obligations. The exposure of the company''s borrowings to interest rate changes at the end of the reporting period are as follows:

		Rs. in Lacs
Particulars	31.03.2018	31.03.2017
Borrowings Floating (includes current and non-current maturities)	5,589.32	6,214.91
Fixed( includes current and non-current maturities)	4,056.54	5,130.26
Total	9,645.86	11,345.17

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Interest rate sensitivity analysis

The following table demonstrates sensitivity to a reasonable possible change in interest rates with all other variables held constant

Change in Interest Rate	Profits/(Loss)		Equity net of tax
	31.03.2018	31.03.2017	1.03.2018	31.03.2017
2% increase	(111.79)	(124.30)	(76.54)	(84.05)
2% decrease	111.79	124.30	76.54	84.05

40 Capital Management

The company''s objectives when managing capital are to (a) maximize shareholders value and provide benefit to other stakeholders and (b) maintain an optimal capital structure to reduce the cost of capital.

Forthe purpose of company''s capital management, capital includes issued equity capital and all other equity reserves attributable to the equity holders.

Rs. in Lacs
Particulars	31.03.2018	31.03.2017
Total Debt (Bank and other borrowings)	9,645.86	11,345.17
Equity	13,076.14	10,627.11
Debt to Equity (net)	0.74	1.07

41 Related party transactions :

List of persons and the relationship with related parties as certified by management with whom transaction have taken place during the year with value of transactions is as follows :

NAME OF THE RELATED PARTY -

I) Associates -
a) Poonam Roofing Products Pvt.Ltd.	b) Poonam Tiles	c) JVS Comatsco Industries Pvt Ltd

II ) Key Management Personnel -
a) Mr.Jayesh P. Patel - Director	b) Mr.Satyen V. Patel - Director

Ill ) Relatives of Key Management Personnel -
a) Mr. Purushottam L. Patel*	b) Mr.Vallabh L. Patel *	c) Mrs. B.P.Patel
d) Mrs. P. V. Patel	e)VL Patel (HUF)	f)SV Patel (HUF)
g) Mrs. Shilpa J Patel	h) Mr. V. V. Patel	i) Mrs. Geeta S.Patel
j) Mrs. Trilochana V Patel	k)VV Patel (HUF)

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

Transactions during the year with related parties

Rs. in Lacs
Nature of Transactions	Associates		Key Management Personnel		Relatives Of Key Management
	2017-18	2016-17	2017-18	2016-17	2017-18	2016-17
1 ) Transactions during the year
a) Unsecured Loan
a) Taken during the year	456.80	15.63	105.50	210.50	415.60	-
b) Repaid during the year	2.00	52.75	115.00	28.12	1,731.30	9.50
b) Revenue Items
Labour Charges Expenses	58.47	130.53	-	-	-	-
Lease Charges Expenses	-	-	-	-	-	-
Trade Mark Fees	2.42	2.31	-	-	-	-
c) Interest
Interest on Unsecured Loan paid	144.43	127.30	62.84	211.65	286.98	200.80
during the year
d) Rent paid	0.30	0.30	-	-	-	-
e) Managerial Remuneration paid	-	-	118.58	120.16	8.60	-
during the year**
f) Dividend Paid	-	-	-	-	-	-
g) Rent Deposit paid back	-	-	-	-	-	11.00
2) Balance outstanding as on year end
a) Debts Due	4.02	3.04	-	0.01	-	-
b) Debts receivable	-	-	3.18	-	-	-
c) Unsecured Loan / ICD	1,594.98	1,140.18	516.00	1,907.00	1,890.80	1,825.00
d) Interest Payable on Unsecured Loan	-	133.48	-	242.17	-	201.44
e) Deposits	-	-	-	-	-	-

transactions with Mr PL. Patel and Mr. V.L. Patel were included during last year under KMP but in current year transactions with them are included under relatives of KMP as they retired as directors during the year. Hence for KMP and relatives of KMP previous years figures are not comparable. ** Manegerial remuneration includes employers PF contribution but excludes post employment benefit of gratuity and Provision for leave benefit scheme, as separate figures for KMP and relatives of KMP is not available being actuarially detremined on an overall basis.

42 Income Tax

42.1 Reconciliation of tax expenses and accounting profit multiplied by tax rate

		Rs in Lacs
Particulars	Year ended	Year ended
	31.03.2018	31.03.2017
Profit before income tax expense	3,576.56	461.82
Tax at the Indian tax rate of 34.608% ( 2016-17 : 33.063%)	1,237.78	152.69
Effect of non-deductible expenses	6.19	(9.47)
Effect of tax exempt income	(164.73)	(0.39)
Effect of income at special rate	(60.69)	-
Effect of deferred tax change in rate	109.00	-
Other	-	6.71
Income Tax expense of current year	1,127.54	149.55

42.2 Deferred Tax Liabilities/ (Assets) (net)

The balance comprise of temporary differences attributable to

			Rs in Lac
Particular	As at 31.03.2018	As at 31.03.2017	As at 31.03.2016
Deferred Tax Liabilities
Relating to PPE WDV	2,069.20	2,334.67	2,637.51
	2,069.20	2,334.67	2,637.51
Deferred Tax Assets
Expenses allowable on payment liabilities	(235.18)	(139.13)	(243.73)
Defined Benefit Obligations	(10.96)	(26.63)	(10.83)
Tax Losses	-	(258.12)	(614.83)
	(246.15)	(423.89)	(869.40)
Tax Credit Available
MAT credit entitlement	(718.45)	(1,136.55)	(1,069.10)
Net Deferred Tax Liabilities	1,104.60	774.23	699.01

Movement in deferred tax liablilities

Particulars	PPE WDV	Others	Total
As on 01. 04.201 6	2,637.51	-	2,637.51
Charged/(credited)
To Profit and loss	(302.84)	-	(302.84)
ToOCI
As on 31. 03.2017	2,334.67	-	2,334.67
Charged/(credited)
To Profit and loss	(265.47)	-	(265.47)
ToOCI
As on 31. 03.201 8	2,069.20	-	2,069.20

Movement in deferred tax assets
Particulars	Expenses allowable on payment basis	Defined Benefit Obligation	Tax Losses	Total
As on 01. 04.201 6	(243.73)	10.83)	(614.83)	(869.40)
Charged/(credited)
To Profit and loss	104.60	(25.02)	356.71	436.29
ToOCI	-	9.22	-	9.22
As on 31 .03.201 7	(139.13)	(26.63)	(258.12)	(423.89)
Charged/(credited)
To Profit and loss	(96.05)	11.84	258.12	173.91
ToOCI		3.83	-	3.83
As on 31 .03.201 8	(235.18)	(10.96)	-	(246.15)

Particulars	2017-18	2016-17
Total Deferred Tax charged/ (credited) to profit and loss	(91.56)	133.45
Total Deferred Tax charged/ (credited) to OCI	3.83	9.22

43 First Time adoption of Ind AS Transition to Ind As

These are the company''s first financial statements prepared in accordance with Ind AS. For the period upto and including the year ended 31st March, 2017, the company prepared its financial statements in accordance with the accounting standards notified under section 133 of the Companies Act, 2013 read together with of the Companies (Accounts) Rules, 2014 (Indian GAAP). Accordingly, the company has prepared financial statements to comply with Ind AS for the year

Notes to the Financial statement for the year ended March 31,2018

(Rs in Lacs unless otherwise stated)

ending 31st March 2018 together with comparative date as at the end for the year ended 31st March, 2017 as described in summary of significant accounting policies. In preparing these financial statements, Company''s opening balance sheet was prepared as at 1st April, 2016, the Company''s date of transition to Ind AS. This note explains the principle adjustments made by the company in restating with Indian GAAP financial statements, including the balance sheet as at 1 st April, 2016 and financial statements as at and for the year ended 31 st March, 2017.

Ind AS 101 allows first time adopters certain exemptions and exceptions from the retrospective application of certain requirements under Ind AS.

(i) Estimates

An entity''s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with the estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

Ind AS estimates as at 1st April 2016 are consistent with the estimates as at the same date made in confirmity with previous GAAP. The Company made estimates for the following item in accordance with Ind AS at the date of transition as these were not required under previous GAAP:

- Investment in equity instruments carried at FVOCI

- Impairment of financial assets based on expected credit loss method

(ii) Classification and measurement of Financial assets

Ind AS 101 requires an entity to assess classification and measurement of financial assets on the basis of the facts and circumstances that exist at the date of transition to Ind AS. Accordingly the company has applied the above requirement prospectively.

(iii) Deemed Cost

Ind AS 101 permits a first time adpoter to elect to fair value of its property, plant and equipment as recognised in financial statements as at the date of transition to Ind AS, measured as per previous GAAP and use that as its deemed cost as at the date of transition or apply principles of Ind AS retrospectively. Ind AS 101 also permits the first time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognised in the financial statements as at the date of transition to Ind AS. This exepmtion can also be used for intangible assets covered by Ind AS 38.

The company has elected to consider the carrying value of its property, plant and equipment, capital work in progress and intangibles as its deemed cost on the date of transition to Ind AS.

---

Mar 31, 2016

1 Terms / rights attached to equity shares

The company has only one class of equity shares having face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity sahres held by the shareholders.

* includes payable to related party Rs. 1.26 (P.Y. Rs. 1.26)

** There are no amount due for payment to the Investor Education and Protection Fund Under Section 125 of the Companies Act, 2013 as at the year end.

***Includes interest accrued but not due of Rs.68.18 (P.Y. Rs.55.81), and includes payable to related party of '' 0.90 (P.Y. NIL)

****Includes payable to employees, forward contract payables etc & includes payable to employees from related parties of Rs. 0.01 (P.Y. Rs. 0.08)

*Balance with bank includes balance in unclaimed dividend A/c of Rs.14.09 (P.Y. Rs.13.31)

**Deposit with banks includes restricted bank deposit of Rs.45.32 (P.Y. Rs.51.41) on account of margin money for Guarantees and L/C''s. Deposits with bank also includes deposit of Rs. 19.08 (previous year Rs. 25.01) with maturity of more than 12 months, which includes restricted deposits of Rs. 19.08 (P.Y. 19.52). Deposits other than restricted deposits can be withdrawn by the company at any point without prior notice or penalty on the principal.

2 : Remittances in foreign currencies on accounts of Dividend to non - resident shareholders.

NIL NIL

3 : Foreign Exchange Earnings

On account of export of goods on FOB basis 5,441.56 5024.90

4 : TRIAL RUN EXPENSES

During the year the Company had commenced commercial production at it''s Vijaywada Plant on 4th May, 2015. The Company has capitalized expenditure incurred during trial run net off realisable value of material produced, amounting to Rs.66.82 lacs.

5 : Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the Accounting Standard are given below.

6 Forward Cover Contracts :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

7 Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments : Recognition and Measurement")

a) In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company had entered into Derivative contracts to offset the foreign currency risk and floating interest risk arising from the amounts denominated in currencies other than the Indian rupee and rate of interest determined at LIBOR. The counter party to the Company''s foreign currency interest swap contracts was a bank. These contracts were entered into to hedge the foreign currency risks of firm commitments and highly probable forecasted transactions.

As on year end all derivative contracts relating to cash flow hedge have been closed as corresponding foreign currency term loan is fully repaid.

8 : Operating Lease :

Where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, they are classified as Operating Lease.

Operating lease payments are recognized as an expense in the Profit and Loss Account.

Rental expenses of Rs.3.45 (P.Y. Rs.3.45) in respect of obligation under non-cancellable operating leases have been charged to Profit and Loss Account.

Further a sum of Rs.67.87 (P.Y. Rs.91.50) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements :

(i) The company has taken premises, Vehicle, Plant and Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

Notes

9) The Company has two business segments namely Building Material Products and Power Generation by Windmills.

10) Segment Revenue include External Sales directly identifiable with segment.

11) Inter segment Revenue includes power generation for captive consumption.

12) Expenses and assets those are directly identifiable are considered for Segment Reporting.

13 :List of persons and the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.

14 :The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the accounting standards for material foreseeable losses on such long term contracts (including derivative contracts) has been made in the books of accounts.

15 : Previous years figures have been regrouped and rearranged wherever necessary.

---

Mar 31, 2015

1. CORPORATE INFORMATION:

The company is engaged in the production of Cement Sheets and Accessories, trading of steel doors & in generation of wind power electricity . The company presently has four operational manufacturing units situated at Maharashtra, Tamilnadu and Gujarat. The company has set up Wind Turbine Generators in Maharashtra, Rajasthan &Tamilnadu.

2. BASIS OF PREPARATION :

These financial statements of the company have been prepared in accordance with the Generally Accepted Accounting Principles in India ('Indian GAAP') to comply with the Accounting Standards specified under Section 133 of the Companies Act, 2013, read with Rule 7 of the Companies (Accounts) Rules, 2014 and the relevant provisions of the Companies Act, 2013. The financial statements have been prepared under the historical cost convention on accrual basis, except for certain financial instruments which are measured at fair value.

3.1 Terms / rights attached to equity shares:

The company has only one class of equity shares having a face value of' 10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

4.1 Working Capital loans are secured by entire current assets of the Company, collateral security of fixed assets of the Company and personal guarantee of two Directors.

5.1 As defined under Micro, Small and Medium Enterprises Development Act, 2006, the disclosure in respect of the amount payable to such enterprises as at 31st March,2015 has been made in the financial statement based on information receivedavailableand identified bythecompany.

6.1 Additional disclosure as per AS 15 is provided in note number 38

Rs in Lacs except as otherwise stated

PARTICULARS Year Ending Year Ending March 31, 2015 March 31, 2014

7 : CONTINGENT LIABILITIES AND COMMITMENTS ( TO THE EXTENT NOT PROVIDED FOR)

7.1 Contingent Liabilities not provided for:

a) Bank Guarantees 28.77 26.47

b) Due towards disputed statutory liability 194.42 67.09

(Total amount disputed Rs.210.53 lacs, amount paid Rs. 16.11 lacs, net under protestRs. 194.42 lacs)

c) Claims against the company not acknowledged as debts 0.41 0.33

7.2 Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account net of advances and not provided for 794.69 1210.37

8: TRIAL RUN EXPENSES

During the year the Company had commenced trial run at it's Vijaywada Plant on 18th February, 2015. The commercial prodution has not started. The Company has capitalised expenditure incurred during trial run net off realisable value of material produced,amountingto Rs.76.37lacsto preoperativeexpenses.

9 : DISCLOSURE PURSUANT TO ACCOUNTING STANDARD 15 ( REVISED) EMPLOYEES BENEFITS

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants ofIndia, which is effective from 1stApril,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the AccountingStandard aregiven below.

B. Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encasement is defined benefit plan. The present value of the obligation is based on Actuarial Valuation using Projected unit credit method.

10 DISCLOSURE AS REQUIRED BY AS - 11 "THE EFFECT OF CHANGES IN FOREIGN EXCHANGE RATES" :

10.1 Forward Cover Contracts :

The company has used forwardcover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

10.2 Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments: Recognition and Measurement")

a) In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk and floating interest risk arising from the amounts denominated in currencies other than the Indian rupee and rate of interest determined at LIBOR. The counter party to the Company's foreign currency interest swap contracts is a bank. These contracts are entered into to hedge the foreign currency risks of firm commitments and highly probable forecasted transactions. The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31,2015 as required by AS 30 and accordingly the MTM Loss of 197.45 is recognized inthe Hedging Reserve.

11 : OPERATING LEASE:

Where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, they are classified as Operating Lease.

Operating lease payments are recognised as an expense in the Profit and Loss Account.

Rental expenses of 3.45 (P.Y. 3.04) in respect of obligation under non-cancellable operating leases have been charged to Profit and Loss Account. Further a sum of 91.50 (P.Y. 88.20) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements:

(i) The company has taken premises, Vehicle, Plant and Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

12: List of persons and the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.

13: The Company has a process whereby periodically all long term contracts (including derivative contracts) are assessed for material foreseeable losses. At the year end, the Company has reviewed and ensured that adequate provision as required under any law / accounting standards for material foreseeable losses on such longterm contracts (including derivative contracts) has been made in the books of accounts.

14: Previous years figures have been regroupedand rearranged wherever necessary.

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Mar 31, 2014

1. CORPORATE INFORMATION:

The company is engaged in the production of Cement Sheets and Accessories, trading of steel doors & in generation of wind power electricity. The company presently has four manufacturing units situated at Maharashtra, Tamilnadu and Gujarat. The company has set up Wind Turbine Generators in Maharashtra, Rajasthan & Tamilnadu.

2. BASIS OF PREPARATION :

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standard) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3. Share Capital

3.1 Terms / rights attached to equity shares:

The company has only one class of equity shares having a face value of Rs. 10/- per share. Each holder of equity share is entitled to one vote per share.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity sahres held by the shareholders.

4. Long Term Borrowings

* Rupee Term loans excepting loans against vehicles are secured by exclusive first charge on assets financed by / mortgaged to / hypothecation in favour of Term lending Bank and personal guarantee of four Directors in three cases and two directors in one case. Loans against vehicle are secured by hypothecation of vehicles purchased.

** Foreign Currency Term loans are secured by exclusive first charge on assets financed, receivables of project financed and personal guarantee of one Director.

5. Short Term Borrowings

5.1 Working Capital loans are secured by entire current assets of the Company, collateral security of fixed assets of the Company and personal guarantee of two Directors.

6. CONTONGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

6.1 Contingent Liabilities not Year Ending Year Ending provided for: March 31, 2014 March 31, 2014

a) Bank Guarantees 26.47 66.71

b) Due towards disputed statutory liability 67.09 5.29 (Total amount disputed Rs. 72.42, amount paid Rs. 5.33, net under protest Rs. 67.09)

c) Claims against the company not 0.33 0.00 acknowledged as debts

6.2 Commitments

a) Estimated amount of contracts remaining to be executed on Capital Account net of advances and not provided for 1210.37 2368.27

7. Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the Accounting Standard are given below.

Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encasement is defined benefit plan. The present value of the obligation is based on Actuarial Valuation using Projected unit credit method.

8. Disclosure as required by AS -11 "The Effect of changes in Foreign Exchange Rates" :

8.1 Forward Cover Contracts :

The company has used for ward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

8.2 Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments: Recognition and Measurement")

In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk and floating interest risk arising from the amounts denominated in currencies other than the Indian rupee and rate of interest determined at LIBOR. The counter party to the Company''s foreign currency interest swap contracts is a bank. These contracts are entered into to hedge the foreign currency risks of firm commtments and highly probable forecasted transactions.The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31,2014 as required by AS 30 and accordingly the MTM Gain of 34.11 is recognized in the Hedging Reserve.

9. Operating Lease :

Where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, they are classified as Operating Lease.

Rental expenses of 3.04 (P.Y. 3.00) in respect of obligation under non-cancellable operating leases have been charged to Profit and Loss Account. Further a sum of 88.20 (P.Y. 88.40) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements :

(i) The company has taken premises, Vehicle, Plant and Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

10. Segment Wise Revenue / Results and Capital Employed

Notes :-

1) The Company has two business segments namely Building Material Products and Power Generation by Windmills.

2) Segment Revenue include External Sales directly identifiable with segment.

3) Inter segment Revenue includes power generation for captive consumption.

4) Expenses and assets those are directly identifiable are considered for Segment Reporting.

11. List of persons and the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.

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Mar 31, 2013

1.CORPORATE INFORMATION:

The company isengagedin the production ofCement Sheets and Accessories, trading ofsteel doors& ingeneration of wind power electricity.The company presently has four manufacturing units situatedat Maharashtra, Tamilnadu and Gujarat.The companyh assetup Wind Turbine Generators in Maharashtra, Rajasthan & Tamilnadu.

2.BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standard) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

3 : Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the Accounting Standard are given below.

A. Defined contribution plan

Contribution to the defined contribution plan recognized as expense for the year are as under

B. Defined Benefit Plan

The Employee Gratuity Fund Scheme and Leave Encasement is defined benefit plan. The present value of the obligation is based on Actuarial Valuation using Projected unit credit method.

4 Disclosure as required by AS - 11 "The Effect of changes in Foreign Exchange Rates" : 37.1 Forward Cover Contracts :

The company has used forwardcover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

The details of such forward contracts are as under :

4.1 Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments : Recognition and Measurement")

a) In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk and floating interest risk arising from the amounts denominated in currencies other than the Indian rupee and rate of interest determined at LIBOR. The counter party to the Company''s foreign currency interest swap contracts is a bank. These contracts are entered into to hedge the foreign currency risks of firm commtments and highly probable forecasted transactions. The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31, 2013 as required by AS 30 and accordingly the MTM Gain of 123.89 is recognized in the Hedging Reserve.

b) The following are the outstanding derivative Contracts entered into by the Company which have been designated as Cash Flow Hedges as on March 31,2013:

5 : Operating Lease :

Where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item, they are classified as Operating Lease.

Operating lease payments are recognised as an expense in the Profit and Loss Account.

Rental expenses of 3.00 (P.Y. 3.00 ) in respect of obligation under non-cancellable operating leases have been charged to Profit and Loss Account. Further a sum of 88.40 (P.Y. 87.15) has been charged to Profit and Loss Account in respect of cancellable operating leases.

General description of leasing arrangements :

(i) The company has taken premises, Vehicle, Plant and Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

6 : List of persons and the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.

7 : Previous years figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2012

1. CORPORATE INFORMATION :

The company is engaged in the production of Cement Sheets and Accessories, trading in comply and steel doors & in generation of wind power electricity. The company presently has four manufacturing units situated at Maharashtra, Tamilnadu and Gujarat. The company has set up Wind Turbine Generators in Maharashtra, Rajasthan & Tamilnadu.

2. BASIS OF PREPARATION:

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in India (Indian GAAP). The Company has prepared these financial statements to comply in all material respects with the accounting standards notified under the Companies (Accounting Standards) Rules, 2006, (as amended) and the relevant provisions of the Companies Act, 1956. The financial statements have been prepared on an accrual basis and under the historical cost convention.

1.1 Terms / rights attached to equity shares:

The company has only one class of equity shares having a face value of Rs10/- per share. Each holder of equity shares is entitled to one vote per share.

In the event of Liquidation of the Company, the holders of equity shares will be entitled to receive remaining assets of the Company. The distribution will be in proportion to the number of equity shares held by the shareholders.

*Rupee Term loans excepting loans against vehicles are secured by exclusive first charge on assets financed by /mortgaged to/hypothecation in favor of Term lending Bank and personal guarantee of four Directors in three cases and guarantee of two directors in one case.

**Foreign Currency Term loans are secured by exclusive first charge on assets financed, exclusive first charge on receivables of project financed and personal guarantee of one Director.

***Rupee Term loans from banks and NBFC for vehicles are secured by hypothecation on vehicles purchased.

7.1 Working Capital loans are secured by pari-passu hypothecation charge of Stock of Raw Material, stock in process, Consumables, Stores, Finished Goods. Book Debts & other current assets & fixed assets and personal guarantee of two Directors.

*Balance with bank includes balance in unclaimed dividend A/c of Rs 16.76 lacs (previous year Rs 9.60 lacs) and restricted bank deposit of Rs 4.95 (previous year Rs 214.95) on account of margin money deposit against Guarantees and L/C' s. **Deposits with bank includes deposit of 14.95 (previous year Rs 44.22) with maturity of more than 12 months. These deposits can be withdrawn by the company at any point without prior notice or penalty on the principal.

3.1 Expenditure in foreign currency on various accounts are reported in note number 32

4 : CONTONGENT LIABILITIES & COMMITMENTS TO THE EXTENT NOT PROVIDED FOR

4.1 Contingent Liabilities not provided for: Year ended Year ended

31st March 2012 31st March 2011

a) Bank Guarantees 4.95 210.00

b) Claims against the company not acknowledged as debts 0.00 43.81

4.2 Commitments

a) Estimated amount of contracts remaining to be executed

on Capital Account net of advances & not provided for 48.18 2809.71

5 : Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

As per Accounting Standard 15 "Employees Benefits", the disclosure of employee benefits as defined in the Accounting Standard are given below.

A. Defined contribution plan

Contribution to the defined contribution plan recognized as expense for the year are as under

6 (Disclosure as required by AS - 11 'The Effect of changes in Foreign Exchange Rates")

6.1 Forward Cover Contracts :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

The details of such forward contracts are as under:

6.2 Cash Flow Hedae (Disclosure as required by AS - 30 "Financial Instruments : Recognition and Measurement"!

a) In accordance with its risk management policy & business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk & floating interest risk arising from the amounts denominated in currencies other than the India rupee & rate of interest determined at LIBOR. The counter party to the Company's foreign currency interest swap contracts is a bank. These contracts are entered into to hedge the foreign currency risks of firm commitments and highly probable forecasted transactions. The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31,2012 as required by AS 30 and accordingly the MTM Gain of 461,92 is recognized in the Hedging Reserve.

b) The following are the outstanding derivative Contracts entered into by the Company which have been designated as Cash Flow Hedges as on March 31,2012:

Rental expenses of 3.00 (RY. 3.00) in respect of obligation under non-cancellable operating leases have been charged to Profit & Loss Account. Further a sum of 87.15 (RY. 78.23) has been charged to Profit & Loss Account in respect of cancellable operating leases.

General description of leasing arrangements:

(i) The company has taken premises, Vehicle & Plant & Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

Notes

:-l) The Company has two business segments namely Building Material Products & Power Generation by Windmills.

:-2) Segment Revenue include External Sales directly identifiable with segment.

:-3) Inter segment Revenue includes power generation for captive consumption.

:-4) Expenses and assets those are directly identifiable are considered for Segment Reporting.

7 : List of persons & the relationship with related parties with whom transaction have taken place during the year with value of transactions as required by Accounting Standard 18 "Related Party Disclosure" is enclosed in Annexure.

8 : Previous year's figures have been regrouped and rearranged wherever necessary.

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Mar 31, 2011

Year ended Year ended 31st March 2011 31st March 2010

1) Contingent Liabilities not provided for :

a) Bank Guarantees 21,000,000 22,078,217 (Including Gurantee In favour of MARKFED Rs. 21,000,000/- Refer Note No.1 (p)

b) Letter of Credit 3,750,178 16,808,484

c) Claims against the company not acknowledged as debts 4,381,094 4,381,094

2) Operating Lease :

Where the lessor effectively retains substantially all the risks & benefits of ownership of the leased item, they are classified as Operating Lease. Operating lease payments are recognised as an expense in the Profit & Loss Account.

Rental Expenses of Rs. 300,000/- (P.Y. Rs. 300,000/-) in respect of obligation under non cancellable operating leases have been charged to Profit & Loss Account. Further sum of Rs. 7,823,276/- (P.Y. Rs. 6,955,704/-) has been charged to Profit & Loss Account in respect of cancellable operating Leases.

General description of leasing arrangements :

(i) The company has taken premises, vehicle & plant & machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

3) i) Forward Cover Contracts (Disclosure as required by AS - 11 "The Effect of changes in Foreign Exchange Rates") :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

4) ii) Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments :Recognition and Measurement")

a) In accordance with its risk management policy & business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk & floating interest risk arising from the amounts denominated in currencies other than the Indian rupee & rate of interest determined at LIBOR. The counter party to the Company's foreign currency interest swap contracts is a bank. These contracts are entered to hedge the foreign currency risks of firm commitment and highly probable forecasted transactions. The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31, 2011 as required by AS 30 and accordingly the MTM Loss of Rs. 3,837,565/- is recognized in the Hedging Reserve.

5) Disclosure pursuant to Accounting Standard 15 ( Revised) Employees Benefits

The Company has adopted revised Accounting Standard 15 " Employees Benefits", issued by the Institute of Chartered Accountants of India, which is effective from 1st April,2007.

B Defined Benefit Plan

The Employee Gratuity Fund Scheme & Leave Encashment is defined benefit plan. The present value of the obligation is based on Actuarial Valuation using Projected unit credit method.

6) Related Party Disclosure :-

The Company has entered into transactions in the ordinary course of business with related party at arms length. The details of related party's are reported in the Annexure.

7) As defined under Micro,Small & Medium Enterprises Development Act,2006, the disclosure in respect of the amount payable to such enterprises as at 31st March,2011 has been made in the financial statement based on information received available and identified by the company.

8) Previous years figures have been regrouped and rearranged wherever necessary.

Annexure - Related Party Disclosures { AS- 18 }

List of persons & the relationship with related parties with whom transaction have taken place during the year with value of transactions (as certified by management)

Name of the related party -

I) Associates -

a ) Poonam Roofing Products Pvt.Ltd. ( PRPPL )

b ) Parv Ventures

c ) JVS Coatmatco Industries Pvt. Ltd .

d) Sudarshan Pipes Pvt. Ltd.

e) Poonam Tiles

f) Mahanagar Constructions

g) Sahyadri Enerco Pvt. Ltd.

h) PVRB Agro Products Pvt Ltd.

II ) Key Management Personnel -

a) Mr.Vallabhbhai L. Patel - Director

b) Mr. Purushottambhai L. Patel - Director

c) Mr.Jayesh P. Patel - Director

d) Mr.Satyen V. Patel - Director

III ) Relatives of Key Management Personnel -

a) Mr. V. V. Patel b) Mr. Chetan P. Patel

c) Mrs. B.P.Patel d) Mrs. Parvti Patel

e) Mr. J.V. Patel f) Mrs.Geeta S.Patel

g) Mrs. Harsha J. Patel h) Mrs. Kalpana Patel

i) Malvi Patel k) Mrs. Rashmi P Patel

l) Pranil S. Patel m) Dhemahee S. Patel

Gratutity Contribution :-

The contribution to gratuity funds has been made on a group basis & separate figures applicable to an individual employee are not available & therefore, contribution to gratuity funds has not been considered in the above computation.

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Mar 31, 2010

1)Contingent Liabilities not provided for : Year ended Year ended 31 st March 31 st March 2010 2009

a) Bank Guarantees 22,078,217 22,078,217 (Including Gurantee In favour of MARKFED Rs.2,10,00,000/- Refer Note No.1 (p)

b) Letter of Credit 16,808,484 3,021,548 c) Claims against the company not acknowledged as debts 4,381,094 4,381,094

General description of leasing arrangements :

(i) The company has taken premises, Vehicle & Plant & Machinery on operating lease.

(ii) Lease rentals are charged to the Profit and Loss Account for the year.

(iii) There are no sub-leases.

(iv) These leases are usually renewable by mutual consent on mutually agreeable terms.

(v) Future lease rental payments are determined on the basis of the lease payments as per the agreement.

2) Forward Cover Contracts (Disclosure as required by AS - 11 "The Effect of changes in Foreign Exchange Rates") :

The company has used forward cover contracts to hedge its exposure to the movements in foreign currency exchange rates. Such forward covers are used to reduce the risk which may result from foreign rates fluctuations, and is not used by the company for trading or speculation purposes.

3) Cash Flow Hedge (Disclosure as required by AS - 30 "Financial Instruments : Recognition and Measurement")

a) In accordance with its risk management policy and business plan, the company has hedged its cash flows. The Company has entered into Derivative contracts to offset the foreign currency risk & floating interest risk arising from the amounts denominated in currencies other than the Indian rupee & rate of interest determind at LIBOR. The counter party to the Companys foreign currency interest swap contracts is a bank. These contracts are entered to hedge the foreign currency risks of firm commtments and highly probable forecasted transactions.The Management has assessed the effectiveness of its hedging contracts outstanding as on March 31, 2010 as required by AS 30 and accordingly the MTM Loss of Rs. 36,552,788/- is recognized in the Hedging Reserve.

4) Related Party Disclosure :-

The Company has entered into transactions in the ordinary course of business with related party at arms length.

The details of related partys are reported in the Annexure.

5) Previous years figures have been regrouped and rearranged wherever necessary.