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Notes to Accounts of Gravita India Ltd.

Mar 31, 2023

(b) Terms/ rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a face value of Rs. 2 per share. Each equity shareholder is entitled to one vote per share held. The Company declares and pays dividends in Indian Rupees. The final dividend proposed, if any, by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

In the event of liquidation of the Company, the holder of equity shares will be entitled to receive remaining assets of the Company, after payment of all liabilities. The distribution will be in proportion to the number of equity shares held by the shareholders.

(d) During the five years immediately preceding March 31, 2023, the Company has neither allotted any bonus shares nor have any shares been bought back.

(e) No shares has been issued for consideration other than cash in the current reporting year and in last five years immediately preceeding the current reporting year.

(f) Dividend

The Board of Directors, in its meeting held on May 01 2023, had recommended final dividend of Rs 4.35 per equity share of Rs. 2 each amounting to Rs. 30.03 crores for the financial year ended March 31, 2023. This is subject to approval of the members at the ensuring Annual General Meeting.

Description of nature and purpose of each reserve

(a) Security premium

The security premium is the amount paid by shareholder over and above the face value of equity share. Security premium can be utilised as per the provisions of the Companies Act, 2013.

(b) General reserve

The general reserve is created on transfer of profits from retained earnings. General reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income."

(c) Retained earnings

Retained earnings represents surplus in Statement of Profit and Loss."

(d) cash flow hedging reserve

The cash flow hedging reserve represents the cumulative effective portion of gains or losses arising on changes in fair value of designated portion of hedging instruments entered into for cash flow hedges. Such gains or losses will be reclassified to statement of profit and loss in the period in which the hedged transaction occurs.

iii Security disclosure for the outstanding current borrowings are as follows:

1 First pari-passu charge over the entire current assets of the Company including raw material, stock-intrade, finished goods including stocks-in-transit and those lying in godowns, ports, etc and book debts (both present and future).

2 "First pari-passu charge on the entire fixed assets of the Company both present and future, excluding vehicles, assets situated at Plot No. P.A. 011-006, Light Engineering Zone, Mahindra World City - SEZ, Jaipur, assets of Survey no. 233/15 to 233/30, Tiruthani Road, Ananthapuram-panchayat, Narasingharayani Pettah - Post Chittoor, Andhra Pradesh, Survey no. 43 Near National highway no.8A (Patri Gundala road, Village Gundala, Taluka Mundra, Kutch (Gujrat)) and Flat no.402, Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur. But including the following:

(AH amounts in '' 1, unless otherwise stated)

- Flat no. 302, 401, 403 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur.

- Land and building at Jai Chand ka Bas, Diggi Malpura Road, Phagi, Jaipur.

3 First pari-passu charge on Land and house at 3/90, HIG, Mansarovar, Jaipur of Gravita Impex Private Limited (related party) and Flat no. 203 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

4 Personal guarantee of Managing Director Mr. Rajat Agrawal.

5 Corporate guarantee of M/s Gravita Impex Private Limited (Related Party)..

6 Second pari-passu charge on the fixed assets of Chittoor Plant.

v Rate of interest for current borrowings

The Company''s current borrowings facilities have an effective weighted-average contractual rate calculated using the interest rates effective for the respective borrowings as at reporting dates is 7.13% p.a.(previous year: 5.78% p.a)

vi The quarterly returns/statements, in respect of the working capital limits have been filed by the Company with State Bank of India (Lead Banker) and such returns/statements are in agreement with the books of account of the Company for the respective periods.

vii Repayment terms: Cash credit facilities and working capital demand loans are repayable on demand with in a period of less than 12 months. These loans have been used for the specific purpose for which they are taken as at the year end.

viii Refer note 40 and 41 for disclosure of fair values in respect of financial liabilities measured at amortised cost and analysis of their maturity profiles.

i. Disclosures on lease pursuant to Ind AS 116 - Leases

The Company has leases for the factory lands, office premises, equipment, etc. Also, the Company has a leasehold land situated at Plot No. PA-011-006, Mahindra Sez, Village Kalwara, Tehsil Sanganer Distt-Jaipur, which has been taken on a lease for a period of 92 years in the year 2013.

Each lease generally imposes a restriction that, unless there is a contractual right for the Company to sublet the asset to another party, the right-of-use asset can only be used by the Company. Leases contain an option to extend the lease for a further term after mutual consent of both the parties. The Company is prohibited from selling or pledging the underlying leased assets as security against the Company''s other debts and liabilities.

The table below describes the nature of the Company''s leasing activities by type of Right-of-use (ROU) asset recognised on balance sheet:

iii. Lease payments not recognised as a liability

The Company has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis. The Company does not have any liability to make variable lease payments for the right to use the underlying asset recognised in the Financial Statement. The expense relating to payments not included in the measurement of the lease liability for short term leases is Rs. 2.05 crores (previous year: Rs. 1.74 crores).

iv. Total cash outflow for leases for the year ended March 31, 2023 was Rs. 2.84 crores (previous year Rs. 2.92 crores).

(iii) Above mentioned Other current financial assets have been hypothecated as securities with banks/ financial institutions, refer note 17 for details.

(iv) Refer note 40 and 41 for disclosure of fair values in respect of financial assets measured at amortised cost and assessment of expected credit losses.

(v) Represents channel financing facility availed by the Company, which is a part of the supply chain financing arrangement with the channel financing partners, for amount payable to MSME vendors through TReDS portal.

(b) Trade receivables and contract balances

The Company present the right to consideration in exchange for sale of promised products/ service as Trade receivable in the Financials Statements. A receivable is a right to consideration that is unconditional upon passage of time. Trade receivable are presented net of impairment (if any) in the Balance Sheet. Further, impairment of bad and doubtful debts has been created based on expected credit loss method as prescribed in Ind AS 109. Refer note 41 for details of expected credit loss for trade receivables under simplified approach.

(c) Revenue recognised in relation to contract liabilities

Ind AS 115 also requires disclosure of ''revenue recognised in the reporting period that was included in the contract liability balance at the beginning of the period'' and ''revenue recognised in the reporting period from performance obligations satisfied (or partially satisfied) in previous periods. Same has been disclosed as below:

(ii) The Company''s recycling facility at Chittoor, was eligible for incentives available under "Industrial Development Policy 2015-2020", notified by the Andhra Pradesh government. Under the scheme the Company had been granted "Small Industry" status and was eligible for incentives like, power cost reimbursement, interest reimbursement, refund of sales tax/State Goods and services tax paid in cash, etc. Based on such policy, the Company had recognised the incentive computed based on State Goods and Service Tax (''SGST'') paid to Government of Andhra Pradesh. Further, in terms of the Ind AS 20 - "Accounting for Government Grants and Disclosure of Government Assistance", eligible incentive as mentioned above is credited to Statement of Profit and Loss and included under the head "Other operating revenue" on accrual basis. Further, the Company was also entitled for capital grant of Rs. 0.26 crores out of which Rs. 0.01 crores (previous year: Rs. 0.02 crores) has been recognised as amortisation of government grant under the head "Other operating revenue" and balance amount of Rs. 0.14 crores (previous year: Rs. 0.16 crores) has been recognised as deferred government grants under head "Other liabilities".

(iii) During the current year, an amount of Rs. 4.36 crores (previous year: Rs. 3.05 crores) has been recognised under the head "Other operating revenue", which has been credited under electronic credit ledger under Remission of Duties or Taxes on Export Products (''RODTEP'') scheme. .

Note - 35| Contingent liabilities and commitments

Particulars

As at

March 31, 2023

As at

March 31, 2022

(a) Contingent liabilities

(I) Bank guarantees

- Bank guarantee given by the Company

1.99

3.15

(II) claim against the company not acknowledged as debt(ii)

- Excise Duty/Customs Duty/Service Tax/Goods and services Tax

6.19

3.36

Total

8.18

6.51

(i) All the matters above other than guarantee given by the Company are subject to legal proceedings in the ordinary course of business. The management is confident that its position to be upheld in the appeals pending before various appellate authorities and no liability could arise on the Company on account of these proceedings.

Particulars

For the year ended March 31, 2023

For the year ended March 31, 2022

(b) commitments

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

2.62

1.53

Other commitments in the nature of export obligations

23.48

16.16

Total

26.10

17.69

B Fair values hierarchy

The fair value of financial instruments as referred to in note (A) above has been classified into three categories depending on the inputs used in the valuation technique. The hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and lowest priority to unobservable inputs (Level 3 measurements).

The categories used are as follows:

Level 1: Quoted prices for identical instruments in an active market;

Level 2: Directly (i.e. as prices) or indirectly (i.e. derived from prices) observable market inputs, other than Level 1 inputs; and

Level 3: Inputs which are not based on observable market data (unobservable inputs). Fair values are determined in whole or in part using a net asset value or valuation model based on assumptions that are neither supported by prices from observable current market transactions in the same instrument nor are they based on available market data.

Valuation process and technique used to determine fair value

i. The fair value of investments in quoted equity shares is based on the current bid price of respective investment as at the balance sheet date.

ii. The fair value of investments in unquoted equity shares is estimated at their respective costs, since those companies do not have any significant operations and there has neither been any significant change in their performance since initial recognition nor there is any expectation of such changes in foreseeable future.

iii. The Company enters into commodity contracts with financial institutions for hedging price risk of lead arising from its import and export. Fair values of such contracts are determined based on observable rates of the commodity for similar contracts for the remaining maturity on the balance sheet date.The valuation of such instruments is carried out through the rates ( marked to market) confirmed by the respective banks as at the balance sheet date.

iv. There are no significant changes in value of level 3 investment measured at fair value through other comprehensive income.

The management assessed that fair values of current financial assets, cash and cash equivalents, other bank balances, trade receivables, short term borrowings, trade payables, current lease liabilities and other current financial liabilities approximate their respective carrying amounts largely due to the short-term maturities of these instruments. The fair value of the financial assets and liabilities is disclosed at the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and assumptions were used to estimate the fair values:

i. Non-current loans and non-current financial liabilities are evaluated by the Company based on parameters such as interest rates, individual creditworthiness of the counterparty/borrower and other market risk factors

ii. The fair values of the Company''s fixed interest-bearing liabilities, loans and receivables are determined by applying discounted cash flows (''DCF'') method, using discount rate that reflects the issuer''s borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2023 was assessed to be insignificant.

iii. All the other long term borrowing/ short term borrowing facilities availed by the Company are variable rate facilities, and are subject to changes in underlying interest rate indices. Further, the credit spread on these facilities are subject to change with changes in Company''s creditworthiness. The management believes that the current rate of interest on these loans are in close approximation from market rates applicable to the Company. Therefore, the management estimates that the fair value of these borrowings are approximate to their respective carrying values.

The Company''s risk management is carried out by a central treasury department (of the Company) under policies approved by the board of directors. The board of directors provides written principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and investment of excess liquidity.

I. Credit risk

Credit risk is the risk that a counterparty fails to discharge its obligation to the Company. The Company''s exposure to credit risk is influenced mainly by loans, cash and cash equivalents, trade receivables, derivative financial instruments and other financial assets measured at amortised cost. The Company continuously monitors defaults of customers and other counterparties and incorporates this information into its credit risk controls.

(a) Credit risk management

The Company assesses and manages credit risk based on internal credit rating system. Internal credit rating is performed for each class of financial instruments with different characteristics. The Company assigns the following credit ratings to each class of financial assets based on the assumptions, inputs and factors specific to the class of financial assets.

Based on business environment in which the Company operates, a default on a financial asset is considered when the counter party fails to make payments within the agreed time period as per contract. Loss rates reflecting defaults are based on actual credit loss experience and considering differences between current and historical economic conditions.

Assets are written off when there is no reasonable expectation of recovery, such as a debtor declaring bankruptcy or a litigation decided against the Company. The Company continues to engage with parties whose balances are written off and attempts to enforce repayment. Recoveries made are recognised in Statement of Profit and Loss.

(i) Investment in subsidiaries (including partnership firms and LLP) are measured at cost as per Ind AS 27, ''Separate financial statements'' and hence, not presented here.

Cash and cash equivalents and bank deposits

Credit risk related to cash and cash equivalents and bank deposits is managed by only accepting highly rated banks and diversifying bank deposits and accounts in different banks across the country.

Derivative financial instruments

Derivative financial instruments are considered to have low credit risk since the contracts are with reputable financial institutions.

Trade receivables

Trade receivables are generally unsecured and non-interest bearing. There is no significant concentration of credit risk. The Company''s credit risk management policy in relation to trade receivables involves periodically assessing the financial reliability of customers, taking into account their financial position, past experience and other factors. The utilization of credit limit is regularly monitored. The Company''s credit risk is mainly confined to the risk of

customers defaulting against credit sales made. Outstanding trade receivables are regularly monitored by credit monitoring Company. The Company has also taken advances from its customers, which mitigate the credit risk to an extent. In respect of trade receivables, the Company recognises an impairment for lifetime expected credit losses after evaluating the individual probabilities of default of its customers which are duly based on the inputs received from the marketing teams of the Company.

Other financial assets measured at amortised cost

Other financial assets measured at amortised cost includes loans to related parties, loans to employees, security deposits and others. Credit risk related to these other financial assets is managed by monitoring the recoverability of such amounts continuously, while at the same time internal control system are in place ensure the amounts are within defined limits.

(b) Expected credit losses for financial assets

(i) Financial assets (other than trade receivables)

Company provides for expected credit losses on financial assets other than trade receivables by assessing individual financial instruments for expectation of any credit losses.

For cash & cash equivalents, other bank balances and derivative financial instruments - Since the Company deals with only high-rated banks and financial institutions, credit risk in respect of cash and cash equivalents, derivative financial instruments, other bank balances and bank deposits is evaluated as very low.

For security deposits paid - Credit risk is considered low because the Company is in possession of the underlying asset.

For other financial assets - Credit risk is evaluated based on Company knowledge of the credit worthiness of those parties and loss allowance is measured. For such financial assets, the Company policy is to provide for 6 month expected credit losses upon initial recognition and provide for lifetime expected credit losses upon significant increase in credit risk.

II. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value.

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company''s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

III. Market risk

(a) Foreign currency risk

The Company is exposed to foreign exchange risk in the normal course of its business. Multiple currency exposures arise from commercial transactions like sales, purchases, borrowings, recognized financial assets and liabilities (monetary items). Certain transactions of the Company act as natural hedge as a portion of both assets and liabilities are denominated in similar foreign currencies. For the remaining exposure to foreign exchange risk, the Company adapts the policy of selective hedging based on risk perception of management. Foreign exchange hedging contracts are carried at fair value. The Company''s exposure to foreign currency changes for all other currencies which are not stated below is not material. Foreign currency exposures that are not hedged by derivative instruments outstanding as on the balance sheet date are as under:

(c) Price risk Exposure

The Company exposure to price risk arises from investments held and classified in the balance sheet either as fair value through other comprehensive income or at fair value through profit or loss. To manage the price risk arising from investments, the Company diversifies its portfolio of assets. There are no investments held by the company which are measured at fair value either through profit and loss or fair value through other comprehensive income, hence the Company is not exposed to price risk.

Note - 42] Capital Management |

For the purpose of the Company''s capital management, capital includes issued capital and all other equity reserves attributable to the equity shareholders of the Company. The primary objective of the Company when managing capital is to safeguard its ability to continue as a going concern and to maintain an optimal capital structure so as to maximize shareholder value.

As at March 31, 2023, the Company is not subject to any externally imposed capital requirements. In order to maintain or achieve an optimal capital structure, the Company allocates its capital for distribution as dividend or re-investment into business based on its long term financial plans. The Company''s management reviews the capital structure of the Company on a periodic basis. As part of review, the management considers the cost of capital and risk associated with each class of capital. The Company also evaluates its gearing measures like Debt Equity Ratio, Debt Service Coverage Ratio, Interest Service Coverage Ratio, Debt to EBIDTA Ratio to arrive at an appropriate level of debt and accordingly evolve its capital structure.

Earned leaves - Long term leaves includes earned leaves. These have been provided on accrual basis, based on year end actuarial valuation.

Casual leaves - Unutilized casual leaves get lapsed at the end of each calendar year. The Company has provided for casual leave for a period of 3 months i.e. from January 2022 till March 2022. However, in current year, the Company has merged the casual leaves with earned leaves as per revised leave policy.

(ii) Defined benefits plans

The employees'' gratuity fund scheme managed by a trust namely ''Gravita India Limited Employees Gratuity Trust'' is defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is determined based on actuarial valuation as at the end of each financial year using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to build up the final obligation.

These plans typically expose the Company to actuarial risks such as investment risk, salary risk, interest rate risk and longevity risk.

Investment Risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Salary Risk - The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan''s liability.

Interest Risk - The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk - The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plans liability.

Employee Stock appreciation rights Scheme

In terms of SEBI (Share Based Employee Benefits) Regulations, 2014, as amended from time to time (''SEBI Regulations''), the Compensation Committee of Board, inter alia, administers and monitors the Gravita Stock Appreciation Rights Scheme 2017 of the Company. The Compensation Committee, at its meeting granted 652,500 (previous year: Nil) Stock Appreciation Rights (''SAR'') to the employees of the Group under Gravita Stock Appreciation rights Scheme 2017. In addition, Gravita Employee Welfare Trust has purchased Nil (previous year:

* The Company has granted 8,25,000 (previous year: 4,02,600) stock appreciation rights to KMP''s which will be exercised at the time of their respective retirement and which are subject to upward and downward revision and in the event of termination of employment of the Unit holder due to cause, all the units shall lapse on the termination of the employment of the Unit holder and shall revert to the pool. The Company shall not have any further obligations towards the Unit holder towards such lapsed units.The Compensation Committee may grant such lapsed units to any eligible employee in accordance with the scheme, at its sole discretion.

Determination of volatility

Volatility is the degree to which price moves, whether it goes up or down. It is a measure of the speed and magnitude of the underlying''s price changes. Historical volatility refers to the actual price changes that have been observed over a specified time. There is no research that demonstrates conclusively how long the historical period used to estimate expected long-term future volatility should be. Hence, we have considered the historical volatility of the shares of the Company on NSE commensurate with the expected life of the share option being valued.

(ii) Detail of transaction and balance outstanding with related parties

The transactions with related parties are made on terms equivalent to those that prevail in arm''s length transactions. Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs through payment. For the year ended March 31, 2023, the Company has not recorded any impairment of receivables relating to amounts owed by related parties (March 31, 2022: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Note - 47 Compliance with Foreign Exchange Management Act, 1999

Trade receivables and trade payables as at 31 March 2023 include amounts aggregate to Rs. 97.11 crores and Rs. 43.41 crores respectively, situated outside India. Out of this aforesaid trade receivables amounting to Rs. Nil are pending for more than 270 days and trade payables amounting to Rs. 5.35 crores are pending for more than 180 days. These balances are under settlement with AD Bank under the regulations of Reserve Bank of India. Based on the information available till date, the management does not expect any adverse consequences to the Company.

As per transfer pricing legislation under section 92 - 92F of the Income -tax Act, 1961, the Company is required to use certain specific methods in computing arm''s length price of international transactions with associated enterprises and maintain documentation in this respect. Since law requires existence of such information and documentation to be contemporanious in nature, the Company has updated the Transfer Pricing study to ensure that the transactions with associate enterprises undertaken are at "Arms length basis". Based on the preliminary study and assessment for the current year, the management is of the view that the same would not have a material impact on these standalone financial statements.

Disclosure relating to provisions recorded in these standalone financial statements pursuant to the Ind AS 37 -Provisions, Contingent Liabilities and Contingent Assets

Segment information has been provided under the Summary of the significant accounting policies and other explanatory information of the consolidated financial statement for the year ended March 31, 2023 as per para 4 of Indian Accounting Standard (Ind AS) 108 "Operating Segments", specified under Section 133 of the Companies Act, 2013.

In the opinion of Board of Directors, current assets have a value on realisation in the ordinary course of business at least equal to the amount at which they are stated in the balance sheet and provisions for all known/ expected liabilities have been made.

Note-52 Other statutory information |

(i) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and the rules made thereunder.

(ii) The Company has not been declared wilful defaulter by any bank or financial institutions or other lenders.

(iii) The Company does not have any transactions with companies struck off under section 248 of the Companies Act, 2013 or section 560 of the Companies Act, 1956.

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

(v) The Company has complied with number of layers prescribed under clause (87) of section 2 of the Act read with Companies (Restriction on number of Layers) Rules, 2017.

(vi) 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 current and preceding 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).

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current and the preceding financial year.

(viii) 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:

- 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

- provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

(ix) 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:

- 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

- provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries.

Note-53 Other statutory information |

The figures of previous year have been regrouped/ reclassed to make them comparative with those of current year wherever considered necessary. the impact of such reclassification/ regrouping is not material to the standalone Financial Statements.


Mar 31, 2018

1.1 General Information

Gravita India Limited (‘The Company’) is a public limited Company domiciled and incorporated under the provisions of the Companies Act, 1956. The Company’s equity shares are listed at the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).The registered office of the Company is situated at “Saurabh”, Chittora Road, Harsulia Mod, Diggi-Malpura Road, Tehsil-Phagi, Jaipur-303904 and having principal place of business in Jaipur (Rajasthan), Bhuj (Gujrat), and Chittoor (Andhra Pradesh).

The Principal activities of the Company are - Lead processing, aluminium processing, trade (Lead products and aluminium scrap) and dealing in Turn-key Lead recycling projects. The Company carry out smelting of Lead battery scrap / Lead concentrate to produce secondary Lead metal, which is further transformed into Pure Lead, Specific Lead Alloy, Lead Oxides (Lead sub-oxide, Red Lead, and Litharge) and Lead products like Lead sheets, Lead powder, Lead shot etc.

The financial statements for the year ended 31st March, 2018 were approved by the Board of Directors and authorised for issue on May 28, 2018.

1.2 Statement of Compliance

These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act, as applicable. The financial statements up to the year ended 31st March, 2017 were prepared in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Act (‘Previous GAAP’). These are Company’s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer note 50 for an explanation of the transition from previous GAAP to Ind AS and the effect on the Company’s financial position, financial performance and cash flows.

(i) The credit period generally allowed on sales varies, on case to case basis, business to business, based on market conditions. Maximum credit period allowed is upto 120 days.

(ii) For parri passu charge on trade receivables, refer note 17 and 21.

(iii) There are no customers who represent more than 10% of the total balances of trade receivables.

(v) Transfer of financial asset:

During the year, the Company discounted trade receivables to a bank for cash proceeds. If the trade receivables are not paid at maturity, the bank has the right to request the Company to pay the unsettled balance. As the Company has not transferred the significant risks and rewards relating to these trade receivables, it continues to recognise the full carrying amount of the receivables and has recognised the cash received on the transfer as a secured borrowing.

At the end of the reporting period, the carrying amount of the trade receivables that have been transferred but have not been derecognised amounted to RS.917.85 lacs (at year ended 31st March, 2017 RS.1,158.12 lacs and as at April 01, 2016 RS.458.05 lacs) and the carrying amount of the associated liability is RS.917.85 lacs (at year ended 31st March, 2017 RS.1,158.12 lacs and April 01, 2016 RS.458.05 lacs) (see note 21).

Notes :-

(i) Vehicle loan from banks of RS.328.95 lacs (31st March, 2017 RS.276.57 lacs and April 01, 2016 RS.61.88 lacs) carry interest ranging from 8.40% p.a. to 12.51% p.a. The loans are secured by way of hypothecation of vehicles and repayable in equal monthly instalments over a period of 31 to 60 Months.

(ii) Corporate loan-I of RS.285.92 lacs (31st March, 2017 RS.338.99 lacs and April 1, 2016 RS.372.08 lacs) with currency swing option@ 6months @ LIBOR 3.25% P.A. on fully hedged basis , repayable in 23 quarterly instalments commencing from 31.03.2016 and ending on 30.09.2021.

a) First parri-passu charge over the entire current assets of the Company including raw material, stock in process, finished goods including stocks in transit and those lying in godowns, ports, etc. and book debts (both present and future), along with other banks.

b) Second charge over the entire fixed assets of the Company both present and future (including Equitable Mortgage (EM) of properties disclosed under Note-2) excluding vehicles and entire assets situated at Plot No. P.A. 011-66, Light Engineering Zone, Mahindra World City - Sez, Jaipur and assets of Chittoor plant.

Corporate loan II of RS.201.93 lacs (31st March, 2017 RS.227.58 lacs and April 1, 2016 H Nil) with currency swing option@ 6months @ LIBOR 3.25% P.A. on fully hedged basis. The Rupee loan carry interest rate 14.95% p.a. The loan is repayable in 23 quarterly instalments commencing from March 31, 2016 and ending on Sept 30, 2021. The loan is secured by way of following:

a) First pari-passu charge along with other member bank over the entire fixed assets of the company both present and future (including Equitable Mortgage (EM) of properties disclosed under Note-7) excluding vehicles and entire assets situated at Plot No.P.A. 011-66, Light Engineering Zone, Mahindra World City - Sez, Jaipur and assets of proposed Chittoor plant.

b) First pari-passu charge by way of equitable mortgage of flat no. 203, on first floor in Rajputana Tower situated at plot no , A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

c) First pari-passu charge by way of equitable mortgage of land and house HIG, SFS Block 3, plot no 90, HIG, Mansarovar, Jaipur of Gravita Impex Private Limited.(Related Party)

d) Second charge on the entire current assets of the Company, both present and future.

(iii) PNB Term Loan of RS.1,356.10 lacs (31st March, 2017 RS.1,496.51 lacs and April 1, 2016 H Nil) @ 11.65% P.A. The loan is repayable in 22 quarterly instalments commencing from Oct 1,2017 and ending on Jan 1,2023. The loan is secured by way of following:

a) First charge on the entire block assets present and future of the Chittoor project.

b) Second pari-passu charge on following Immovable Properties.:

Land & Building at Jaychand Ka Bas Harsulia Mod Diggi Malpura Road, Phagi, Jaipur Khasra no. 209/1/5/3, 209/1/4/1, 209/1/5/1 and 209/1/5/2.

Flat no. 203, 302, 401 and 403 located in Rajputana Tower situated at plot no , A-27-B, Tilak Nagar, Shanti Path, Jaipur Residential Land & H No. 3/90, Mansarovar, Jaipur

c) Personal guarantee of Managing Director Mr. Rajat Agrawal.

d) Corporate guarantee of M/s Gravita Impex Pvt Ltd (Related Party)

e) Second Charges on Property situated at Plot No. PA-01 1-006, Mahindra Sez, Village Kalwara, Tehil Sanganer Distt-Jaipur

f) Corporate guarantee of M/s Noble Buildestate Private Limited

(i) Loans repayable on demand from banks are secured by way of:

(a) First pari-passu charge over the entire current assets of the Company including raw material, stock in process, finished goods including stocks in transit and those lying in godowns, ports, etc and book debts (both present and future).

(b) First pari-passu charge on the entire fixed assets of the Company both present and future, excluding vehicles and entire assets situated at Plot No. P.A. 011-66, Light Engineering Zone, Mahindra World City - Sez, Jaipur and assets of chittoor plant, but including the following:

(i) Flat no. 302, 401, 403 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur

(ii) Land and building at Jai Chand ka Bas, Diggi Malpura Road, Phagi, Jaipur.

(c) First pari-passu charge on the following other assets:

(i) Land and house at 3/90, HIG, Mansarovar, Jaipur of Gravita Impex Private Limited (related party)

(ii) Flat no. 203 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

(d) Charge over certain of the Company’s trade receivables (refer note 6(v))

(e) Personal guarantee of Managing Director Mr. Rajat Agrawal

(f) Corporate guarantee of M/s Gravita Impex Private Limited (related party).

(g) Second pari passu charge on the fixed assets of Chittoor Plant both present and future including land and building , plant and machinery and other fixed assets

(h) Corporate guarantee of M/s Noble Buildestate Private Limited

(1) Consequent to introduction of Good and Service Tax (GST) with effect from 1st July, 2017, Central Excise, Value Added Tax (VAT) etc. have been subsumed into GST. In accordance with Indian Accounting Standard -18 on Revenue and Schedule III of the Companies Act, 2013 and unlike Excise Duties Like GST, VAT etc. are not part of Revenue. Accordingly the figures for the period upto June 30, 2017 are not strictly relatable to those thereafter. The following additional information is being provided to facilitate to such understanding:

* All the matters above other than guarantee given by the Company are subject to legal proceedings in the ordinary course of business. The legal proceedings, when ultimately concluded, in the opinion of the management, will not have a material effect on the results of the operations or financial position of the Company.

Note 2 - Dues to Micro and Small Enterprises

Dues to Micro and Small Enterprises have been determined to the extent such parties have been identified on the basis of information collected by the Management. This has been relied upon by the auditors.

Note 3 - Corporate Social Responsibility Expenditure

The gross amount required to be spent by the Company for CSR expenditure during the year is RS.21.13 lacs (previous year RS.13.58 lacs); and the amount spent (already paid for purposes other than construction / acquisition of any asset) is RS.26.22 lacs (previous year RS.12.79 lacs). The amount spent for construction / acquisition of any capital asset is RS.2.50 lacs.

Note 4 - Disclosure under Ind-AS 17 “Leases”

(i) Operating leases :

General description of the Company’s operating lease arrangements:

The Company has entered into operating lease arrangements for lease of certain facilities and office premises.

Some of the significant terms and conditions of the arrangements are:

- agreements are generally executed for the period of 11 months and may generally be terminated by either party by serving a notice period

- the lease arrangements are generally renewable on the expiry of the lease period subject to mutual agreement;

- the Company shall not sublet, assign or part with the possession of the premises without prior written consent of the lessor.

Note 5: In the year 2013-14, the Excise Department, under the provisions of Section 12F of Central Excise Act, 1944, had seized past books and records of the Company upto 10th February, 2014.In this regard, no show cause notice has been received by the Company till date. The management is confident that the matter will get resolved in due course and no material liability would arise on resolution of this matter. The Company is in process to release the books of accounts.

Note 6 - Proposed Dividend

The Board of Directors, in its meeting held on May 28, 2018, have recommended a final dividend of RS.0.70 per equity share of RS.2/- each aggregating to RS.578.84 lacs (including corporate dividend tax) for the financial year ended 31st March, 2018. The recommendation is subject to the approval of shareholders in the ensuing Annual General Meeting. The Board of Directors, in its meeting held on May 15, 2017, recommended a final dividend of RS.0.60 per equity share of RS.2/- each for the financial year ended 31st March, 2017 and the same was approved by the shareholders at the Annual General Meeting held on August 8, 2017. This resulted in outflow of RS.412.23 lacs (excluding corporate dividend tax).

Note: (i) Carrying value of the financial assets and liabilities designated at amortised cost approximates its fair value.

(ii) This does not include investment in subsidiaries which have been carried at cost

Note 7 - Capital Management

The Company manages its capital to ensure that it will be able to continue as a going concern and provide reasonable return to the shareholders through maintaining reasonable balance between Debt and equity. The capital structure of the Company consists of net debt (borrowings net of cash and cash equivalents) and total equity of the Company. The Company is not subject to any externally imposed capital requirements. The Company’s management reviews the capital structure of the Company on a periodic basis. As part of review, the management considers the cost of capital and risk associated with each class of capital. The Company also evaluates its gearing measures like Debt Equity Ratio, Debt Service Coverage Ratio, Interest Service Coverage Ratio, Debt to EBIDTA Ratio to arrive at an appropriate level of debt and accordingly evolve its capital structure.

Note 8 - Financial Risk Management

The Company is exposed to various financial risks arising from its underlying operations and finance activities. The Company is primarily exposed to market risk (i.e. interest rate and foreign currency risk), to credit risk and liquidity risk. The Company’s Corporate Treasury function plays the role of monitoring financial risk arising from business operations and financing activities. Financial risk management within the Company is governed by policies and guidelines approved by the senior management and the Board of Directors. These policies and guidelines cover interest rate risk, foreign currency risk, credit risk and liquidity risk. Company policies and guidelines also cover areas such as cash management, investment of excess funds and the raising of short and long-term debt. Compliance with the policies and guidelines is managed by the Corporate Treasury function within the Company. Review of the financial risk is done on a periodical basis by the Managing Director and the Board of Directors. The objective of financial risk management is to contain, where deemed appropriate, exposures on net basis to the various types of financial risks mentioned above in order to limit any negative impact on the Company’s results and financial position. In accordance with its financial risk policies, the Company manages its market risk exposures by using specific type of financial instruments duly approved by the Board of Directors as and when deemed appropriate. It is the Company’s policy and practice neither to enter into derivative transactions for speculative purpose, nor for any purpose unrelated to the underlying business. The Board of Directors / Managing Director reviews and approves policies for managing each of the above risks.

(a) 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 three types of risk: interest rate risk, foreign currency risk and other price risk, such as equity price risk and commodity risk. Financial instruments affected by market risk includes loans and borrowings, deposits, investments and derivative financial instruments. The Company enters into the derivative contracts as approved by the Board to manage its exposure to foreign currency risk.

(i) Foreign Currency Risk Management

Foreign currency risk also known as Exchange 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. Foreign currency risk in the Company is attributable to Company’s operating activities and financing activities. In the operating activities, the Company’s exchange rate risk primarily arises when revenue / costs are generated in a currency that is different from the reporting currency (transaction risk). The Company hedges the exposures based on a duly approved policy by the Board. The information is monitored by the Audit committee and the Board of Directors on a periodical basis. This foreign currency risk exposure of the Company are mainly in U.S. Dollar (USD) and Euro (EUR). The Company’s exposure to foreign currency changes for all other currencies is not material. The carrying amounts of the Company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting periods expressed in H are as follows:

Foreign currency sensitivity analysis

The Company is mainly exposed to USD and EUR.

The following table details the Company’s sensitivity to a 1% increase and decrease in the H against the relevant foreign currency. The sensitivity analysis includes only outstanding foreign currency denominated monetary items as tabulated above and adjusts their translation at the period end for 1% change in foreign currency rates. A positive number below indicates an increase in profit before tax or vice-versa.

Foreign exchange derivative contracts

The Company uses derivative financial instruments exclusively for hedging financial risks that arise from its commercial business or financing activities. The Company’s corporate treasury team manages its foreign currency risk by hedging transactions that are expected to occur within of 12 to 15 months for hedges of forecasted sales, purchases and capital expenditures. When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency. All identified exposures are managed as per the policy duly approved by the Board of Directors.

(ii) Interest Rate Risk Management

Interest rate risk arises from movements in interest rates which could have effects on the Company’s net income or financial position. Changes in interest rates may cause variations in interest income and expenses resulting from interest-bearing assets and liabilities. The Company’s exposure to the risk of changes in market interest rates relates primarily to the Company’s long-term debt obligations with floating interest rates.

(b) Credit risk management

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) and from its financing activities, including deposits with banks and financial institutions, foreign exchange transactions and other financial instruments. To manage trade receivables, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and ageing of such receivables

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy.

Balances with banks were not past due or impaired as at the year end. In other financial assets that are not past dues and not impaired, there were no indication of default in repayment as at the year end.

The age analysis of trade receivables as of the balance sheet date have been considered from the due date and disclosed in the note no. 6 above.

The Company has used a practical expedient by computing the expected loss allowance for financial assets based on historical credit loss experience and adjustments for forward looking informations.

(c) Liquidity risk management

Liquidity risk is the risk that the Company will encounter difficulty in raising funds to meet commitments associated with financial instruments that are settled by delivering cash or another financial asset. Liquidity risk may result from an inability to sell a financial asset quickly at close to its fair value

The Company has an established liquidity risk management framework for managing its short term, medium term and long term funding and liquidity management requirements. The Company’s exposure to liquidity risk arises primarily from mismatches of the maturities of financial assets and liabilities. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

(ii) Maturities of financial liabilities

The tables below analyse the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities. The amount disclosed in the table are the contractual undiscounted cash flow.

Note 9 - Employee Benefits Plans

(i) Defined Contribution Plans

The Company makes contribution towards employees’ provident fund and employees’ deposit linked insurance scheme for qualifying employees. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as specified in the rules of the schemes, to these defined contribution schemes. The Company has recognised for contributions to these plans in the statement of profit and loss as under :

(ii) Defined benefits plans

The employees’ gratuity fund scheme managed by a trust namely Gravita India Limited Employees Gratuity Trust is defined benefit plan. The gratuity plan provides for a lump sum payment to the employees at the time of separation from the service on completion of vested year of employment i.e. five years. The liability of gratuity plan is determined based on actuarial valuation as at the end of each financial year using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employees benefit entitlement and measures each unit separately to build up the final obligation. Earned leaves - Long term leaves includes earned leaves. These have been provided on accrual basis, based on year end actuarial valuation.

These plans typically expose the company to actuarial risks such as investment risk, salary risk, interest rate risk and longevity risk.

Investment Risk - The probability or likelihood of occurrence of losses relative to the expected return on any particular investment.

Salary Risk -The present value of defined benefit plan is calculated with the assumption of salary increase rate of plan participants in future. Deviation in rate of increase in salary in future for plan participants from the rate of increase in salary used to determine the present value of obligation will have a bearing on the plan’s liability.

Interest Risk -The plan exposes the Company to the risk of fall in interest rates. A fall in interest rates will result in an increase in the ultimate cost of providing the above benefit and will thus result in an increase in value of the liability.

Longevity Risk -The present value of defined benefit plan liability is calculated by reference to the best estimate of the mortality of plan participants both during and after employment. An increase in the life expectancy of the plan participants will increase the plans liability.

Sensitivity analysis of the defined benefit obligation

The significant actuarial assumption for the determination of defined benefit obligations are discount rate and expected salary increase. The sensitivity analysis below have been determined based on reasonably possible changes of the respective assumptions occurring at the end of reporting period, while holding all other assumptions constant.

Note 10 - Employee Share Based Payments

The members of the Company at its Annual General Meeting held on July 27, 201 1 had approved the issue of Stock Options to eligible employees/directors of the Company and its subsidiaries. Accordingly, the Board at their meeting held on August 10, 2011 approved the “Gravita ESOP 2011” Scheme. A Compensation Committee was formed to govern the Gravita ESOP 2011 Scheme which has approved first, second, third and fourth grant of options on September 23, 201 1, July 5, 2012, July 1, 2013 and April 1, 2015 respectively. Details are as follows:

Fair value of share options granted during the year

The fair value of options granted is estimated using the Black Scholes Option Pricing Model after applying the key assumption which are tabulated below. The expected volatility has been calculated using the daily stock returns on NSE, based on expected life options of each vest. The expected life of share option is based on historical data and current expectation and not necessarily indicative of exercise pattern that may occur.

During the year ended 31st March, 2018, the Company recorded employee share based payment expense of RS.30.02 lacs (Previous year RS.55 lacs) in the statement of profit and loss.

Note 11 - Segment Reporting

As per Ind AS 108 “Operating Segments”, Segment information has been provided under the Notes forming part of the Consolidated financial statements.

Note 12 - Related Party Disclosures under Accounting Standard Ind-AS - 24 “Related Party Disclosure

(i) Name of related parties and nature of related party relationship (a) Subsidiaries:

Note 13 Fair Value Hierarchy

Some of the Company’s financial assets and liabilities are measured at fair value at the end of each reporting period. The following table presents fair value hierarchy of financial assets measured at fair value on a recurring basis:

During the year ended 31st March, 2018, there were no transfers between Level 1 and Level 2 fair value measurements, and no transfers in to and out of Level 3 fair value measurements.

Level 1 inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement date.

Level 2 inputs other than quoted prices included within level 1 that are observable for the assets or liability, either directly or indirectly.

Level 3 inputs are unobservable inputs for the assets or liability.

Note 14 (a) - Transition to Ind AS - Principle and reconciliations

Overall principle

These are the Company’s first financial statement prepared in accordance with Ind AS, accordingly the Company has prepared the opening balance sheet as per Ind AS as of April 1, 2016 (the transition date) by recognising all assets and liabilities whose recognition is required by Ind AS, not recognising items of assets or liabilities which are not permitted by Ind AS, by reclassifying items from previous GAAP to Ind AS as required under Ind AS, and applying Ind AS in measurement of recognised assets and liabilities. However, this principle is subject to the exception and certain optional exemptions availed by the Company as detailed below :

A. Mandatory exceptions Estimates

The estimates as at April 1, 2016 and as at 31st March, 2017 are consistent with those made for the same dates in accordance with Indian GAAP (after adjustments to reflect any differences in accounting policies) apart from impairment of financial assets based on expected credit loss model where application of Indian GAAP did not require estimation

The estimates used by the Company to present these amounts are in accordance with the Ind AS which reflects conditions as at April 1, 2016 the date of transition to Ind AS and as at 31st March, 2017.

Derecognition of financial assets and financial liabilities

The Company has applied the derecognition requirements of financial assets and financial liabilities prospectively for transactions occurring on or after transition date

Classification and measurement of financial instruments (I) Financial Instruments: (Security deposits paid)

Financial assets / liabilities like security deposits paid, has been classified and measured at amortised cost on the basis of the facts and circumstances that existed at the date of transition to Ind AS

(II) Impairment of financial assets

The Company has applied the impairment requirements of Ind AS 109 retrospectively; however, as permitted by Ind AS 101, it has used reasonable and supportable information that is available without undue cost or effort to determine the credit risk at the date that financial instruments were initially recognised in order to compare it with the credit risk at the transition date. Further, the Company has not undertaken an exhaustive search for information when determining, at the date of transition to Ind AS, whether there have been significant increases in credit risk since initial recognition, as permitted by Ind AS 101.

B. Optional exemptions Deemed cost for property, plant and equipment and intangible assets

The Company has opted to measure all of its property, plant and equipment and intangible assets at their previous GAAP carrying value and use that carrying value as its deemed cost.

Investment in equity shares of subsidiaries and partnership firms at deemed cost

The Company has opted to measure its investment in subsidiaries and partnership firms at their previous GAAP carrying value in separate financial statement and use that carrying value as its deemed cost.

Past business combinations

The Company has opted to apply Ind AS 103 ‘Business combination’ prospectively to business combinations occurring after its transition date. Business combinations occurring prior to the transition date have not been restated.

Determining whether an arrangement contains a lease

Appendix C to Ind AS 17 requires an entity to assess whether a contract or arrangement contains a lease. In accordance with Ind AS 17, this assessment should be carried out at the inception of the contract or arrangement. However, the Company has used Ind AS 101 exemption and assessed all arrangements based on conditions in place as at the date of transition.

Designate of previously recognised financial instrument

The Company has elected this exemption and opted to designate financial asset at FVTPL as per Ind AS 109 based on facts and circumstances that existed as on transition date.

Notes to first time adoption : -

(a) Leasehold Land

Under previous GAAP, the leasehold land was considered as part of property, plant and equipment as being long lease. As per Ind AS-17 leasehold land of RS.466.42 lacs has now been classified as operating lease and the premium paid on leasehold land is amortized over the period of the lease. The proportionate over amortized amount of RS.0.22 lacs upto the date of transition is adjusted against retained earnings in the opening balance sheet.

(b) Borrowings

Under previous GAAP, transaction costs incurred in connection with long term borrowings were charged off on in the year of borrowing or were taken to Capital work in progress, if related to particular asset. 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 recognised in profit and loss over the tenure of the borrowings as part of interest expense using effective interest rate method.

(c) Ind AS adjustment on partnership firm

The partnership firms, where Company is a partner, have also adopted Ind AS for the first time with effect from Apr 01, 2016. The proportionate impact on Partner’s capital of RS.17.68 lacs has been adjusted from the retained earnings and Current investment of the Company as on transition date. Consequently, the proportionate impact on Partner’s capital of RS.16.18 lacs for the year ended 31st March, 2017 has been adjusted from Other operating revenue and from Current investment of the Company.

(d) Financial guarantee contract

Under previous GAAP, financial guarantees were not recognised in the balance sheet. Under Ind AS, financial guarantee contracts are accounted as financial liabilities and measured initially at fair value and subsequently as given in note 1 (ix) (iii). Accordingly, as at April 1, 2016 a financial liability has been recognised with a corresponding debit to current investment and differential impact for the year ended 31st March, 2017 was taken in statement of profit and loss.

(e) Proposed dividend on equity shares and dividend tax thereon

Under previous GAAP, dividend proposed by the Board of directors after the balance sheet date but before the approval of the financial statements were considered as adjusting events and accordingly it was recognised as provision in the books of account. Under Ind AS, such dividends are recognised when the same is approved by the shareholders in the annual general meeting. Accordingly, Proposed dividend on equity shares and dividend tax thereon of RS.164.69 lacs earlier recognised in the same financial year is reversed and recognised in the year of approval by the shareholders in the annual general meeting. Further this treatment is only for final dividend and not for proposed dividend.

(f) Deferred tax assets / liabilities

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 the various transitional adjustments lead to temporary differences. According to the accounting policies, the company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity. Such adjustments amounting to RS.10.82 lacs as at 31st March, 2017 and RS.10.24 lacs as at April 1, 2016.

(g) Actuarial gains/losses on defined benefit obligation

Under previous GAAP in respect of defined benefit plan, actuarial gains and losses were recognised in profit and loss. Under Ind AS, the actuarial gains and losses forming part of re-measurement of the net defined benefit liability / asset is recognised in other comprehensive income. Consequently, the tax effect of the same has also been recognised in other comprehensive income under Ind AS instead of profit and loss. There is no impact on the total equity.

(h) Share based payment valued at fair value

Under previous GAAP, the cost of equity-settled employee share-based payments was recognised using the intrinsic value method. Under Ind AS, the cost of equity-settled employee share-based payments is recognised based on the fair value of the options as on the grant date. The change does not affect total equity, but there is a increase in profit before tax as well as total profit for the year ended 31st March, 2017 by RS.3.54 lacs.

(i) Excise duty

Under previous GAAP, revenue from sale of goods was presented net of excise duty under revenue from operations. Whereas, under Ind AS, revenue from sale of goods includes excise duty. The corresponding excise duty expense of RS.2,441.60 lacs is presented separately on the face of the statement of profit and loss. The change does not affect total equity as on April 1, 2016 and 31st March, 2017 and profit for the year ended 31st March, 2017.

(j) Grouping of foreign exchange fluctuation gain changed from other expenses to other income in Statement of profit and loss for the year ended 31st March, 2017. The change does not affect total equity as on April 1, 2016 and 31st March, 2017 and profit for the year ended 31st March, 2017.

(k) Other comprehensive income

Under previous GAAP, there was no concept of other comprehensive income. Under Ind AS, specified items of income, expense, gains, or losses are required to be presented in other comprehensive income.

(l) Minimum Alternate Tax (MAT) credit entitlement

Under previous GAAP, Minimum Alternate Tax (MAT) credit forms part of non-current assets which as per the requirements of Ind AS 12 has been shown as a part of deferred tax assets (net). (As at 31st March, 2017: RS.288.76 lacs, As at April 1, 2016: RS.94.04 lacs). At the time of filling of Income tax return for the previous year 2016-17, tax provision was understated by RS.202.19 lacs. Since the Company was under MAT provisions, the company paid the amount of incremental provision in the current year and recognised MAT credit for the same.

(m) Turnover discount

Under previous GAAP, turnover discount was shown under other expenses. However, under Ind AS, sale of goods is presented net of turnover discount of RS.57.29 lacs. Thus sale of goods under Ind AS has decreased for the year ended 31st March, 2017 with a corresponding decrease in other expenses. The change does not affect total equity as on April 1, 2016 and 31st March, 2017 and profit for the year ended 31st March, 2017.

(n) There is reclassification of net cash flow from operating activities to financing activities in relation to Ind-AS adjustment for certain trade receviables under debt factoring arrangements which do not qualifty for derecognition, due to recourse arrangement in place. The change does not affect total cash flow as on 31st March, 2017.


Mar 31, 2017

Notes:

(1) Vehicle loan from banks carry interest ranging from 8.40% p.a. to 12.51% p.a. The loans are secured by way of hypothecation of vehicles and repayable

in equal monthly installments over a period of 31 to 60 Months.

(2) Corporate loan-I of B338.99 lacs (Previous Year B372.08 lacs) with currency swing option@ 6months @ LIBOR 3.25% PA. on fully hedged basis,

repayable in 23 quarterly installments commencing from 31.03.2016 and ending on 30.09.2021.

a) First pari-passu charge over the entire current assets of the Company including raw material, stock in process, finished goods including stocks in transit and those lying in god owns, ports etc. and book debts (both present and future), along with other banks.

b) Second charge over the entire fixed assets of the Company both present and future (including Equitable Mortgage (EM) of properties disclosed under Note-7) excluding vehicles and entire assets situated at Plot No. PA. 011-66, Light Engineering Zone, Mahindra World City - SEZ, Jaipur and assets of Chittoor plant.

Corporate loan II of B227.58 lacs (Previous Year B289.29 lacs) with currency swing option@ 6months @ LIBOR 3.25% PA. on fully hedged basis. The

Rupee loan carry interest rate 14.95% p.a. The loan is repayable in 23 quarterly installments commencing from 31.03.2016 and ending on 30.09.2021.

The loan is secured by way of following:

a) First pari-passu charge along with other member bank over the entire fixed assets of the company both present and future (including Equitable Mortgage (EM) of properties disclosed under Note-7) excluding vehicles and entire assets situated at Plot No. PA. 011-66, Light Engineering Zone, Mahindra World City - SEZ, Jaipur and assets of proposed Chittoor plant.

b) First pari-passu charge by way of equitable mortgage of flat no. 203, on first floor in Gravita Tower situated at plot no. A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

c) First pari-passu charge by way of equitable mortgage of land and house HIG, SFS Block 3, plot no 90, HIG, Mansarovar, Jaipur of Gravita Impex Private Limited.

d) Second charge on the entire current assets of the Company, both present and future.

(3) PNB Term Loan of B1496.51 lacs (Previous Year B0.00 lacs) @ 11.65% PA. The loan is repayable in 22 quarterly installments commencing from

01.10.2017 and ending on 01.01.2023. The loan is secured by way of following:

a) Exclusive charge on the entire block assets present and future of the proposed Chittor project. Value after completion of project shall be B22.59 Crore (Hard Cost)

b) Second pari-passu charge on following Immovable Properties:

Land & Building at Jaychand Ka Bas Harsulia Mod Diggi Malpura Road, Phagi, Jaipur Khasra no. 209/1/5/3, 209/1/4/1, 209/1/5/1

Land & Building at Jaychand Ka Bas Harsulia Mod Diggi Malpura Road, Phagi, Jaipur Khasra no. 209/1/5/2

Flat no. 302, in Rajputana Tower situated at plot no , A-27-B, Tilak Nagar, Shanti Path, Jaipur

Flat no. 403, in Rajputana Tower situated at plot no , A-27-B, Tilak Nagar, Shanti Path, Jaipur

Flat no. 401, in Rajputana Tower situated at plot no , A-27-B, Tilak Nagar, Shanti Path, Jaipur

Flat no. 203, in Rajputana Tower situated at plot no , A-27-B, Tilak Nagar, Shanti Path, Jaipur

Residential Land & H No. 3/90, Mansarovar, Jaipur

c) Personal guarantee of Mr. Rajat Agrawal

d) Corporate guarantee of M/s Gravita Impex Pvt Ltd

e) Second Charges on Property situated at Plot No. PA-011-006, Mahindra SEZ, Village Kalwara, Tehsil Sanganer Distt-J aipur

Notes:

(1) Loans repayable on demand are secured by way of:

(a) First pari-passu charge over the entire current assets of the Company including raw material, stock in process, finished goods including stocks in transit and those lying in godowns, ports etc and book debts (both present and future).

(b) First pari-passu charge on the entire fixed assets of the Company both present and future, excluding vehicles and entire assets situated at Plot No. PA. 011-66, Light Engineering Zone, Mahindra World City - SEZ, Jaipur and assets of proposed chittoor plant, but including the following:

(i) Flat no. 302, 401, 403 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur.

(ii) Land and building at Jai Chand ka Bas, Diggi Malpura Road, Phagi, Jaipur.

(c) First pari-passu charge on the following other assets:

(i) Land and house at 3/90, HIG, Mansarovar, Jaipur of Gravita Impex Private Limited (related party).

(ii) Flat no. 203 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

(d) Personal guarantee of Managing Director Mr. Rajat Agrawal.

(e) Corporate guarantee of M/s Gravita Impex Private Limited (related party).

Note:-

Figures in brackets are related to financial year 2015-16

Year end balances include foreign currency reinstatement, wherever applicable.

Note 1 ?

In the year 2013-14, the Excise Department, under the provisions of Section 12F of Central Excise Act, 1944, had seized past books and records of the Company up to February 10, 2014. In this regard, no show cause notice has been received by the Company till date. The management is confident that the matter will get resolved in due course and no material liability would arise on resolution of this matter. The Company is in process to release the books of accounts.

Note 2

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation of domestic and international transactions with the associated enterprises during the financial year and expects such records to be in existence latest by November 30, 2017. The Management is of the opinion that its international and domestic transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

Note 3

The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.

Note 4

There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

Note 5

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2016

a) First pari-passu charge over the entire current assets of the Company including raw material, stock in process, finished goods including stocks in transit and those lying in godowns, ports, etc. and book debts (both present and future), along with other banks.

b) Second charge over the entire fixed assets of the Company both present and future (including Equitable Mortgage (EM) of properties disclosed under Note-7) excluding vehicles and entire assets situated at Plot No. P.A. 011-66, Light Engineering Zone, Mahindra World City - Sez, Jaipur and assets of proposed Chittoor plant.

## Corporate loan II of Rs. 289.29 lacs (Previous Year Nil) with currency swing option @ 6months @ LIBOR 3.25% p.a. on fully hedged basis. The company do not opted for currency swing as the last disbursement date was 31st March, 2016.

The Rupee loan carry interest rate 11.95% p.a. The loan is repayable in 23 quarterly installments commencing from 31.03.2016 and ending on 30.09.2021. The loan is secured by way of following:

a) First pari-passu charge along with other member bank over the entire fixed assets of the company both present and future (including Equitable Mortgage (EM) of properties disclosed under Note-7) excluding vehicles and entire assets situated at Plot No. PA. 011-66, Light Engineering Zone, Mahindra World City - Sez, Jaipur and assets of proposed Chittoor plant.

b) First pari-passu charge by way of equitable mortgage of flat no. 203, on first floor in Rajputana Tower situated at Plot No. A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

c) First pari-passu charge by way of equitable mortgage of land and house HIG, SFS Block 3, Plot No 90, HIG, Mansarovar, Jaipur of Gravita Impex Private Limited.

d) Second charge on the entire current assets of the Company, both present and future.

### The Foreign currency loan in the previous year was secured by way of following:

a) Pledge of liquid investments in fixed deposits.

b) Second charge on entire current assets and fixed assets including immovable property of the Company except immovable property situated at Plot No. P.A. 011-066, Light Engineering Zone, Mahindra World, City - SEZ, Jaipur.

c) Mortgage of Flat No. 402 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

d) Extension of charge on the fixed assets including immovable property situated at Plot No. P.A. 011-066, Light Engineering Zone, Mahindra World, City - SEZ, Jaipur.

e) Corporate guarantee of M/s Gravita Infotech (formerly known as M/s Gravita Technomech).

f) Personal guarantee of Managing Director Mr. Rajat Agrawal.

Notes:

# Loans repayable on demand are secured by way of:

a) First pari-passu charge over the entire current assets of the Company including raw material, stock in process, finished goods including stocks in transit and those lying in godowns, ports, etc and book debts (both present and future).

b) First pari-passu charge on the entire fixed assets of the Company both present and future, excluding vehicles and entire assets situated at Plot No. PA. 011-66, Light Engineering Zone, Mahindra World City - Sez, Jaipur and assets of proposed chittoor plant, but including the following:

(i) Flat no. 302, 401, 403 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur.

(ii) Land and building at Jai Chand ka Bas, Diggi Malpura Road, Phagi, Jaipur.

c) First pari-passu charge on the following other assets:

(i) Land and house at 3/90, HIG, Mansarovar, Jaipur of Gravita Impex Private Limited (related party).

(ii) Flat no. 203 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

d) Personal guarantee of Managing Director Mr. Rajat Agrawal.

e) Corporate guarantee of M/s Gravita Impex Private Limited (related party).

Note 1:

In the year 2013-14, the Excise Department, under the provisions of Section 12F of Central Excise Act, 1944, had seized past books and records of the Company upto February 10, 2014.In this regard, no show cause notice has been received by the Company till date. The Management is confident that the matter will get resolved in due course and no material liability would arise on resolution of this matter. The Company is in process to release the books of accounts.

Note 2:

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation of domestic and international transactions with the associated enterprises during the financial year and expects such records to be in existence latest by November 30, 2016. The Management is of the opinion that its international and domestic transactions are at arm''s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

Note 3: Corporate Social Responsibility Expenditure

(a) Gross amount required to be spent by the company during the year Rs. 24.89 lacs

(b) Amount spent during the year on :

(i) Construction/acquisition of any asset Rs. Nil

(ii) On purposes other than (i) above Rs. 4.45 lacs

Note 4:

The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.

Note 5:

There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

Note 6:

During the year, the Company has sold and realized its investments in a wholly owned subsidiary Gravita Mozambique LDA to a wholly owned subsidiary Gravita Netherlands BV at a profit of Rs. 252.98 lacs.

Note 7:

Previous year''s figures have been regrouped / reclassified wherever necessary to correspond with the current year''s classification / disclosure.


Mar 31, 2015

1. Corporate Information

Gravita India Limited ('the Company') is a public company incorporated under the provisions of the Companies Act, 1956. Its business operations currently encompass three business areas - Lead processing, trade (lead products and aluminium scrap) and dealings in Lead and Turn-key Lead Recycling projects. The Company carry out smelting of Lead battery scrap / Lead concentrate to produce Secondary Lead metal, which is further transformed into Pure Lead, Specific Lead Alloy Lead Oxides (Lead Sub-Oxide, Red Lead, and Litharge) and Lead products like Lead Sheets, Lead Powder, Lead Shot, etc. The Company has Lead processing unit at Jaipur (Rajasthan) and Bhuj (Gujarat), trading unit at Vishwa Karma Industrial Area, Jaipur and Turn-Key Lead Recycling unit at SEZ, Jaipur (Rajasthan).

2. (a) Terms /rights attached to equity shares

The Company has only one class of shares referred to as equity shares having a face value of Rs. 2 per share. Each equity shareholder is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The final dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in the case of interim dividend.

In the event of liquidation of the Company, the holders of equity shares will be entitled to receive the remaining assets of the Company after distribution of all preferential amounts.

3. Notes:

# Term loans from banks carry interest ranging from 9.57% p.a. to 10.82% p.a. The loans are secured by way of hypothecation of vehicles and repayable in equal monthly installments over a period of 3 to 5 years.

## Foreign currency loans represent two loans from Export Import Bank of India which carries interest ranging from 6 months USD LIBOR 5% p.a. to LIBOR 6% p.a. The loans are repayable in 18/20 equal quarterly installments as per the due dates specified in the respective loan agreements. Loans are secured by way of the following:

First loan:

(a) Pledge of liquid investments in fixed deposits.

(b) Second charge on entire current assets and fixed assets including immovable property of the Company except immovable property situated at Plot No. P.A. 01 1-066, Light Engineering Zone, Mahindra World City - SEZ, Jaipur.

(c) Mortgage of Flat no. 402 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

(d) Extension of charge on the fixed assets including immovable property situated at Plot No. P.A. 01 1-066, Light Engineering Zone, Mahindra World City - SEZ, Jaipur.

(e) Corporate guarantee of M/s Gravita Infotech (formerly known as M/s Gravita Technomech).

(f) Personal guarantee of Managing Director Mr. Rajat Agrawal.

Second Loan:

(a) Mortgage of immovable property Plot No. P.A. 01 1-066, Light Engineering Zone, Mahindra World City - SEZ, Jaipur

4. Notes:

# Loans repayable on demand are secured by way of:

(a) First pari-passu charge over the entire current assets of the Company including raw material, stock in process, finished goods including stocks in transit and those lying in godowns, ports, etc and book debts (both present and future).

(b) First pari-passu charge on the entire fixed assets of the Company including the following:

(i) Flat no. 302, 401,403 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur.

(ii) Land and building at Jai Chand ka Bas, Diggi Malpura Road, Phagi, Jaipur.

(c) First pari-passu charge on the following other assets:

(i) Land and house at 3/90, HIG, Mansarovar Jaipur of Gravita Impex Private Limited (related party).

(ii) Flat no. 203 in Gravita Tower, A-27-B, Tilak Nagar, Shanti Path, Jaipur of Managing Director Mr. Rajat Agrawal.

(d) Cash collateral (Fixed Deposits) of Rs. 275.00 lacs.

(e) Personal guarantee of Managing Director Mr. Rajat Agrawal

(f) Corporate guarantee of M/s Gravita Impex Private Limited (related party).

Note 5 : Contingent Liabilities And Commitments

(Rs. in Lacs)

For the year For the year ended ended March 31,2015 March 31,2014 Contingent liabilities

Corporate guarantee given to banks for loans availed by the following partnership firms

* M/s Gravita Metals 2,275.00 2,275.00

Dues outstanding 990.02 741.62

* M/s Gravita Metal Inc 500.00 500.00

Dues outstanding 342.06 346.38

Corporate guarantee given to banks for loans availed by the following subsidiary

* Gravita Global Pte Limited 312.95 300.50

Dues outstanding - - Guarantee given to government authorities on behalf of partnership 500.00 500.00 firms

Claims against the Company not acknowledged as debt #

Income Tax 20.52 9.96

Excise Duty/Customs Duty/Service Tax 20.70 72.59

Value Added Tax/Central Sales Tax 4.54 132.81

# All the matters are subject to legal proceedings in the ordinary course of business. The legal proceedings, when ultimately concluded, in the opinion of the management, will not have a material effect on the results of the operations or financial position of the Company.

6. Defined Benefit Plan

The employees' gratuity fund scheme managed by a Trust namely Gravita India Limited Employees Gratuity Trust is a defined benefit plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognises each period of service as giving rise to additional unit of employee benefit entitlement and measures each unit separately to build up the final obligation. The obligation for leave encashment is recognised in the same manner as gratuity.

Note 7 : Segment Reporting

As per Accounting Standard (AS) 17 "Segment Reporting", Segment information has been provided under the Notes forming part of the Consolidated Financial Statements.

Note 8 :

During the previous year, the Excise Department, under the provisions of Section 12F of Central Excise Act, 1944, had seized past books and records of the Company upto February 10, 2014. In this regard, no show cause notice has been received by the Company till date. The management is confident that the matter will get resolved in due course and no material liability would arise on resolution of this matter. The Company is in process to release the books of accounts.

Note 9 :

The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under sections 92-92F of the Income Tax Act, 1961. Since the law requires such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation of domestic and international transactions with the associated enterprises during the financial year and expects such records to be in existence latest by November 30, 2015. The Management is of the opinion that its international and domestic transactions are at arm's length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for taxation.

Note 10 :

Pursuant to the enactment of the Companies Act, 2013 w.e.f. April 1, 2014, the Company has reviewed the estimated economic useful lives of its fixed assets generally in accordance with that provided in the Schedule II to the Companies Act, 2013. As a result (after considering the transitional provision specified in the schedule II), the depreciation charge for the current year is higher by Rs. 31.14 lacs and depreciation amounting to Rs. 22.57 lacs (net of deferred tax liabilities of Rs. 10.03 lacs) has been adjusted from the opening balance of retained earnings.

Note 11 :

The Company does not have any long-term contracts including derivative contracts for which there are any material foreseeable losses.

Note 12 :

There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

Note 13 :

Previous year's figures have been regrouped / reclassified wherever necessary to correspond with the current year's classification / disclosure.


Mar 31, 2013

CORPORATE INFORMATION

Gravita India Limited (‘the Company'') is a public Company incorporated under the provisions of the Companies Act, 1956. The Company is carrying out smelting of Lead Ore / Lead Concentrate / Lead Battery Scrap to produce primary & secondary Lead Metal, which is further transformed into Pure Lead, Specific Lead Alloy, Lead Oxides (Lead Sub-Oxide, Red Lead, and Litharge) and Lead Products like Lead Sheets, Lead Pipes etc. with proven technology and processes. The Company has state-of-the-art Lead Processing unit at Jaipur (Rajasthan) and recently installed a unit at Bhuj (Gujarat).

1. SEGMENT REPORTING

As per Accounting Standard (AS) 17 on "Segment Reporting”, Segment information has been provided under the Notes to Consolidated Financial Statements.

2. RELATED PARTY TRANSACTIONS 33.1 Related Party Disclosure a. List of Subsidiaries

Gravita Exim Limited and its Associate Navam Lanka Limited (Associate from 06th January, 2013) Gravita Ghana Limited Gravita Mozambique LDA

Gravita Senegal S.A.U (Subsidiary up to 26th December, 2012) Gravita Energy Limited Gravita Infra Private Limited

Noble Build Estate Private Limited (Subsidiary from 03rd July, 2012) Gravita Global Pte Limited and its Subsidiary - Gravita Netherlands BV and its subsidiaries

- Gravita Senegal S.A.U (Subsidiary from 27th December, 2012)

- Gravita Nicaragua S.A.

- Gravita Trinidad & Tobago Limited

b. Associates

Gravita Honduras SA DE CV (Associate up to 25th September, 2012) Navam Lanka Limited (Associate up to 05th January, 2013)

c. Limited Liability Partnership Firms

Gravita Technomech LLP (in process of strike off)

d. Partnership Firms

M/s Gravita Metals (formerly known as M/s KM Udyog) M/s Gravita Metal Inc (formerly known as M/s Metal Inc) M/s Gravita Technomech

e. Enterprises having same Key Management Personnel and/or their relatives as the reporting enterprise: Gravita Exim Limited

Gravita Ghana Limited

Gravita Mozambique LDA

Gravita Senegal S.A.U (Subsidiary up to 26th December, 2012)

Gravita Energy Limited

Gravita Infra Pvt. Ltd.

Noble Build Estate Pvt Ltd.

Gravita Global Pte Ltd

Gravita Netherlands BV

Navam Lanka Ltd.

Gravita Honduras SA DE CV (Associates up to 25th September, 2012)

Gravita Technomech LLP (in process of strike off)

M/s Gravita Metals (formerly known as M/s KM Udyog)

M/s Gravita Metal Inc (formerly known as M/s Metal Inc)

M/s Gravita Technomech

Gravita Impex Pvt. Limited

Saurabh Farms Limited

Shah Buildcon Pvt. Limited

Jalousies India Pvt. Limited

Surana Professional Services Pvt Limited

M/s R.Surana & Company

M/s Surana Associates

Gravita Nicaragua S.A

Gravita Trinidad And Tobago Ltd

f. Key Management Personnel Dr. Mahavir Prasad Agarwal Mr. Rajat Agrawal

Mr. Rajeev Surana

3 DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CUIRRENCY EXPOSURE

The Company used forward exchange contracts to hedge against its foreign currency exposure relating to the underlying transaction. The Company does not enter into any derivative instruments for trading or speculative purpose. There are no outstanding foreign currency contracts as on 31-Mar-2013.

4. The previous year figures have been shown in bracket and regrouped/reclassified, wherever necessary to conform to the current year presentation.


Mar 31, 2012

A) Terms/Rights attached to Equity Shares

The Company has only one class of equity shares having a face value of Rs10/- per share. Each equity share holder is entitled to one vote per share. The Company declares and pays dividends in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

The Board of Directors of the Company have declared interim dividend @ 10% amounting to Rs1/- per share on the paid up capital of the Company in the meeting held on 3rd February 2012.

For the year ended 31st March 2012, the amount of per share final dividend recognised as distributions to equity shareholders is Rs3/- per share (31st March 2011: Rs4/- per share).

The Company has acquired approval of shareholders by way of postal ballot on 11-May-2012 for sub-division of face value of equity share from Rs10 per share to Rs2 per share.

In the event of liquidation of the Company , the holders of equity shares will be entitled to receive the remaining assets of the Company, after distribution of all preferential amounts.

b) Shares held by the holding/ultimate holding company and/or their subsidiaries/associates: - Nil

c) Aggregate number of bonus shares issued, shares issued for consideration other than cash and shares bought back during the period of five years immediately preceding the reporting date:

During the F.Y. 2009-10 the Company has allotted one fully paid bonus share against two fully paid equity shares by capitalisation of Reserves amounting to Rs33,400,000/-.

d) Shares reserved for issue under options

The Company has reserved issuance of 681000 Equity Shares of Rs10/- each for offering to eligible employees of the Company and its subsidiaries under Employees Stock Option Scheme (ESOS). During the year company has granted 80076 options to the eligible employees at a price of Rs10/- per share plus all applicable taxes, as may be levied in this regard on the Company. The options would vest over a maximum period of 4 year. 16,258 options were lapsed during the year ended 31st March 2012. For further details refer to Director's Report.

For Working Capital Loan from Banks

Working Capital Loan are secured by way of hypothecations (Floating Charge) on stocks (including raw material, work-in- progress, finished goods), Book Debts and/or Equitable mortgage of factory land, buildings, flats, guarantees and Fixed Deposits.

Details of dues to Micro, Small and Medium Enterprises as defined under MSMED Act, 2006

The Company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures regarding:

(a) Amount due and outstanding to suppliers as at the end of accounting year.

(b) Interest paid during the year.

(c) Interest payable at the end of accounting year.

(d) Interest accrued and unpaid at the end of the accounting year, have not been given.

The Company is making efforts to get the confirmations from the suppliers as regards their status under the Act.

*Unpaid Share Application money of Rs17.31 lacs, was remained unreflected in the balance sheet as on 31.03.201 1, which has no impact on Profit and Loss of the Company. The figure has been now incorporated in the balance sheet as on 31.03.2012.

1 EXCEPTIONAL ITEMS

Exceptional items includes profit on sale of subsidiary amounting to Rs 32.17 Lacs

The Company has taken certain assets on Operating Lease agreement with:

A. Rajat Agrawal

Major terms of the Agreement are as under:

i. Monthly Lease Rent Rs35,000/-

ii. Tenure of the lease: Lease agreement valid till dated 30th November, 2012

B. Rajat Agrawal

Major terms of the Agreement are as under:

i. Monthly Lease Rent Rs35,000/-

ii. Tenure of the lease: Lease agreement valid till dated 30th November, 2012

C. Rajat Agrawal

Major terms of the Agreement are as under:

i. Monthly Lease Rent Rs130,000/-

ii. Tenure of the lease: Lease agreement valid till dated 14th September 2012

D. Saurabh Farms Limited

Major terms of the Agreement are as under:

i. Monthly Lease Rent Rs2,000/-

ii. Tenure of the lease: Lease agreement valid till dated 30th November, 2012

E. Archna Gupta & Vijay Gupta

Major terms of the Agreement are as under:

i. Monthly Lease Rent Rs13,128/-

ii. Tenure of the lease: Lease agreement valid till dated 31st August 2012

2. SEGMENT REPORTING

The Company is a one-segment company in the business of Lead Smelting & Refining. Hence, no further disclosures are required under AS-17, other than those already provided in the financial statements.

3. RELATED PARTY DISCLOSURE

a. List of Subsidiaries

i) Gravita Exim Limited

ii) Gravita Ghana Limited

iii) Gravita Mozambique LDA

iv) Gravita Senegal S.A.U

v) Gravita Energy Limited

vi) Gravita Infra Pvt. Ltd.

vii) Gravita Technomech LLP

viii) M/s Gravita Technomech

ix) M/s Gravita Metals (formerly known as M/s KM Udyog)

x) M/s Gravita Metal Inc (formerly known as M/s Metal Inc)

xi) Gravita Georgia Limited (Subsidiary upto 23rd September 2011)

xii) Floret Tradelink Limited (Subsidiary upto 18th May 2011)

xiii) Penta Exim Limited (Subsidiary upto 6th May 2011)

b. Associates

i) Navam Lanka Ltd.

ii) Gravita Honduras SA DE CV

iii) Pearl Landcon Pvt Limited

c. Enterprises having same Key Management Personnel and/or their relatives as the reporting enterprise:

i) Gravita Impex Pvt. Limited

ii Saurabh Farms Limited

iii) Gravita Honduras SA DE CV

iv) Gravita Metal Inc (formerly known as Metal Inc)

v) Navam Lanka Limited

vi) Shah Buildcon Pvt. Limited

vii) Jalousies India Pvt. Limited

viii) Surana Professional Services Pvt Limited

ix) Gravita Exim Ltd.

x) Gravita Energy Ltd.

xi) Gravita Infra Pvt. Ltd.

xii) Gravita Technomech LLP.

xiii) M/s Gravita Technomech

xiv) M/s Gravita Metals (formerly known as M/s KM Udyog)

xv) Gravita Ghana Ltd.

xvi) R. Surana & Company

xvii) Surana Associates

d. Key Management Personnel

i) Dr. Mahavir Prasad Agarwal

ii) Shri Rajat Agrawal

iii) Shri Rajeev Surana

4. CONTINGENT LIABILITIES (Rs in Lacs)

Particulars As at As at 31st March 2012 31st March 2011

Bank Guarantees to Custom authorities for import of Raw material against Advance licences: - 7.77

Letter of Credit for import of raw material 21.74 35.70

Bank Guarantee to BSE 22.50 22.50

5. DERIVATIVE INSTRUMENTS AND UNHEDGED FOREIGN CURRENCY EXPOSURE

The Company used forward exchange contracts to hedge against its foreign currency exposure relating to the underlying transaction and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purpose. There are no outstanding foreign currency contracts as on 31-Mar-2012.


Mar 31, 2011

1. These financial statements are prepared for the period 01-Apr-2010 to 31-Mar-2011. Corresponding figures are reported for the year ended on 31-Mar-2010.The previous years figures have been reworked, regrouped, rearranged and reclassified wherever necessary. Amounts and other disclosures for the preceding year are included as an integral part of the current year financial statements and are to be read in relation to the amounts and other disclosures relating to current year.

2. Contingent Liabilities not provided for: (Rs. in Lacs)

Particulars As at As at

31 March 2011 31 March 2010

Bank Guarantees to Custom authorities for import

of Raw material against Advance Licenses 7.77 20.31

Letter of Credit for import of raw material 35.70 75.55

Bank Guarantee to BSE 22.50 0.00

3. Estimated amount of contracts remaining to be executed on Capital Account and not provided for - Rs. NIL.

4. The liability in respect of payment under employees leave encashment and gratuity has been provided on actuarial valuation in line with Accounting Standard 15 (Revised). Since there is not much change in the conditions and circumstances between 31-Mar-2010 and 31-Mar-2011, therefore defined benefit obligations are taken on the basis of last year provisions.

5. Micro & Small Enterprises Dues:-

The company has not received any intimation from suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act 2006 and hence disclosures regarding:

(a) Amount due and outstanding to suppliers as at the end of accounting year.

(b) Interest paid during the year

(c) Interest payable at the end of accounting year

(d) Interest accrued and unpaid at the end of the accounting year, have not been given.

The company is making efforts to get the confirmations from the suppliers as regards their status under the Act.

6. Segment Reporting

The company is a one-segment company in the business of Lead Smelting & Refining. Hence, no further disclosures are required under AS-17, other than those already provided in the financial statements.

7. Related Party Disclosure

a. Subsidiaries

i) Gravita Exim Limited

ii) Gravita Ghana Limited

iii) Gravita Mozambique LDA

iv) Gravita Senegal S.A.U

v) Gravita Georgia Ltd

vi) Gravita Energy Ltd.

vii) Gravita Infra Pvt. Ltd.

viii) Floret Tradelink Ltd.

ix) Gravita Technomech LLP.

x) Gravita Technomech

xi) K.M Udyog

xii) Penta Exim Ltd.

b. Enterprises having same Key Management Personnel and/or their relatives as the reporting enterprise

i) Gravita Impex Pvt. Limited

ii) Saurabh Farms Limited

iii) Gravita Honduras S.A.

iv) Pearl Landcon Pvt Limited

v) Navam Lanka Limited

vi) Shah Buildcon Pvt. Limited

vii) Jalousies India Pvt. Limited

viii) Surana Professional Services Pvt Limited

ix) Gravita Exim Ltd.

x) Penta Exim Ltd.

xi) Gravita Energy Ltd.

xii) Gravita Infra Pvt. Ltd.

xiii) Floret Tradelink Ltd.

xiv) Gravita Technomech LLP.

xv) Gravita Technomech

xvi) K.M Udyog

xvii) Gravita Georgia Ltd

xviii) Gravita Ghana Ltd.

xix) R.Surana & Company

xx) Surana Associates

c. Associates

i) Navam Lanka Ltd.

ii) Gravita Honduras SA

iii) Pearl Landcon Pvt Limited

d. Key Management Personnel

Dr. Mahaveer Prasad Agarwal

Shri Rajat Agrawal

Shri Rajeev Surana

8. The Company used forward exchange contracts to hedge against its foreign currency exposure relating to the underlying transaction and firm commitments. The Company does not enter into any derivative instruments for trading or speculative purpose. There are no outstanding foreign currency contracts as on 31-Mar-2011.

9. During the year the Company has made an Initial Public Offer (IPO) of 3,600,000 equity shares at a premium of Rs.115 against which total expenses of Rs.261.54 lacs were incurred which were adjusted against Share Premium.

10. The Company has taken certain assets on operating lease agreement with:

A. Archana Gupta and Vijay Gupta

Major Terms of the agreement are as under:

i. Monthly lease rent: Rs.11,550

ii. Tenure of the lease: Lease agreement valid till 30th Sept. 2011

iii. Lease Deposit: Rs.11,000

B. Rajat Agrawal

Major Terms of the agreement are as under:

i. Monthly lease rent: Rs.33,000

ii. Tenure of the lease: Lease agreement valid till 31st Dec. 2011

iii. Lease Deposit: NIL

C. Rajat Agrawal

Major Terms of the agreement are as under:

i. Monthly lease rent: Rs.33,000

ii. Tenure of the lease: Lease agreement valid till 31st Dec. 2011

iii. Lease Deposit: NIL

D. Rajeev Surana (H.U.F)

Major Terms of the agreement are as under:

i. Monthly lease rent: Rs.30,000

ii. Tenure of the lease: Lease agreement valid till 28th Feb. 2014

iii. Lease Deposit: NIL

E. Saurabh Farms Ltd.

Major Terms of the agreement are as under:

i. Monthly lease rent: Rs.1500

ii. Tenure of the lease: Lease agreement valid till 31st Dec 2011

iii. Lease Deposit: NIL

F. Suraj Mal Jangid

Major Terms of the agreement are as under:

i. Monthly lease rent: Rs.11500

ii. Tenure of the lease: Lease agreement valid till 3rd Nov 2011

iii. Lease Deposit: NIL

11. Company has entered into partnership with Gravita Technomech for 51% share on 3rd March 2011.Company has also entered into partnership with K.M Udyog for 55% share on 30th March 2011.Hence both are new subsidiaries of the company.


Mar 31, 2010

These financial statements are prepared for the period Ol-Apr-2009 to 31-Mar-2010. Corresponding figures are reported for the year ended on 31-Mar-2009.

1. The Company has issued one fully paid up bonus equity shares for every two fully paid equity shares held in the company as on 06-09-2009 as per the share holders approval in the extra-ordinary general meeting of the members of the company held on 27-Aug-2009, by capitalizing a sum of Rs.334.00 (in Lacs) out of Companys general reserve as on 07-09-2009.

2. Contingent Liabilities not provided for:

(Amount in Lacs)

Particulars 31-Mar-2010 31-Mar-2009

Bank Guarantees to Custom authorities for import of Raw material 20.31 25.95 against Advance Licenses:

Bank Guarantees to Excise authorities for CT-1 Bond - 1.25

Letter of Credit 75.55 0.00

3. Estimated amount of contracts remaining to be executed on Capital Account and not provided for- Rs. NIL.

4. The liability in respect of payment under employees leave encashment and gratuity has been provided on actuarial valuation in line with Accounting Standard 15 (Revised). Since there is not much change in the conditions and circumstances between 31-Mar-2009 and 31-Mar-2010, therefore defined benefit obligations are taken on the basis of last year provisions.

5. Micro & Small Enterprises Dues:-

The company has not received any intimation from suppliers regarding their status under the micro, small and medium enterprises development Act 2006 and hence disclosures regarding:

(a) Amount due and outstanding to suppliers as at the end of accounting year.

(b) Interest paid during the year

(c) Interest payable at the end of accounting year

(d) Interest accrued and unpaid at the end of the accounting year, have not been given.

6. Segment Reporting:

The company is a one-segment company in the business of Lead Smelting & Refining. Hence, no further disclosures are required under AS-17, other than those already provided in the financial statements.

7. Related Party Disclosure

a. Subsidiary/Joint Venture

Gravita Exim Limited Gravita Ghana Limited Gravita Mozambique LDA Gravita Senegal S.A. Pagrik Ethiopia P.L.C. Gravita Zambia Limited Penta Exim Pvt. Limited Floret Trade link Private Limited Gravita Georgia Ltd

b. Enterprises having same Key Management Personnel and/or their relatives as the reporting enterprise:

Gravita Impex Pvt. Limited

Saurabh Farms Limited

Gravita Honduras S.A.

Pearl Landcon Pvt. Limited

Navam Lanka Limited

Shah Buildcon Pvt. Limited

Jalousies India Pvt. Limited

Surana Professional Services Pvt Limited

c. Key Management Personnel:

Dr. Mahaveer Prasad Agarwal Shri Rajat Agrawal Shri Rajeev Surana Dinesh Kumar Govil Arun Kumar Gupta Yogesh Mohan Kharbanda

8. The figures of Previous year have been regrouped/reclassified, where necessary, to conform to the current years classification.

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