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Notes to Accounts of Nile Ltd.

Mar 31, 2023

Nature and purpose of reserve:

Security Premium: This is the premium received on issue of equity shares and will be utilised as per the applicable provisions of the Act

General Reserve: This amount is transferred from the retained earnings and will be utilised as per the applicable provisions of the Act

Retained Earning: This comprises of net accumulated profits of the Company after the declaration of dividend.

a)** WCTL Gauranteed Emergency Credit Line:

1. '' 8.35 lakhs Working Capital Term Loan obatined from Kotak Mahindra Bank by way of Guaranteed Emergency

Credit Line under ECLG scheme of National Credit Guarantee Trustee Company Ltd (NCGTC) for a tenure of 60

months including 24 months moratorium period.

The above WCTLs were secured by a collateral charge of Industrial Land at Chotuppal TG and Chittor AP, Buildings

etc with Kotak mahindra having paripasu rights with HDFC Bank.

Other Notes:

1. There is no default as on the Balance sheet date in repayment of Principal or Interets thereon to the above WCTLs.

2. The Company has used the borrowings from the financial institutions for the specific purpose for which it was taken on the Balance sheet date.

3. For the borrowings from Banks on the basis of security of current assets, the quarterly returns or statements filed by the Company with the Banks (Kotak Mahindra Bank and HDFC Bank) does not have material variances with the comparision of books of account.

4. Company is not a declared wilful defaulter by any Bank or Financial Institution or other lender

5. There are no charges or satisfaction which are yet to be registered with ROC beyond the statutory period.

(i) Total Open Cash Credit limits of Rs.6000 lakhs [(Current Year Rs.2000 lakhs with Kotak Mahindra Bank and 4000 lakhs with HDFC Bank), (Previous Year Rs.2000 lakhs with Kotak Mahindra Bank and Rs.4000 lakhs with HDFC Bank)]; Total FUBD backed by LC Rs.3000 lakhs [(Current Year Rs.2000 lakhs with Kotak Mahindra Bank and Rs.1000 lakhs with HDFC Bank), (Previous year Rs.2000 lakhs with Kotak Mahindra Bank and Rs.1000 lkahs HDFC Bank)] carries interest @ 6 months MCLR 0.55% p.a. for Kotak Mahindra Bank, and @1 year MCLR 0.5% p.a. for HDFC Bank (Previous year @ 6 months MCLR 0.55% p.a for Kotak mahindra Bank, and @ 1 year MCLR 0.70% p.a. for HDFC Bank), and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the Company consisting Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupathi (including land and builing of corporate office at Hyderabad), and till the renewal of limits kotak Mahindra bank during 11th April ,24 & HDFC Bank during the 31st January, 24

Note no 29: Financial Risk Management Objectives and policies :

The Company''s financial liabilities comprise short-term borrowings and trade and other payables. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s financial assets include trade and other receivables, cash and cash equivalents and deposits.

The Company has a Risk Management Policy based on which risks are identified, measured and managed. The Board of Directors review these risks and related risk management policy.

The different kinds of risks the Company exposed to and its mitigation is discussed as under:

I) Market risk:

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises two types of risk: currency risk and commodity price risk.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s raw material purchase activity. Such foreign currency exposures are mostly hedged by the Company.

(ii) Commodity price risks

The Company is effected by the price volatility of lead in the open market. The Company''s operating activity requires supply of lead on a continuous basis. Due to significant volatility in the lead price, the Company enters into purchase contract with vendors wherein the prices are linked to the quoted London Metal Exchange rates. Similarly, the Company''s selling price of lead to battery manufacturers are linked to such rates.

As the Company''s significant revenue is linked to cost of lead, the impact of change in lead prices on Company''s profit is not expected to be significant.

II) Credit risk :

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

Trade receivables:

Impairment analysis is performed at each reporting date on an individual basis for all the large customers. In addition to a number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.

The calculation is based on historical data of credit losses. The maximum exposure to credit risk at the reporting date is the carrying value of trade receivables disclosed in these financial statements as the Company does not hold collateral as

security.

The Company has evaluated the concentration of risk with respect to trade receivables as low based on historical data. Capital Management :

The Company''s objective when managing capital (defined as net debt and equity) is to safeguard the Company''s ability to continue as a going concern in order to provide returns to shareholders and benefit for other stakeholders, while protecting and strengthening the Balance Sheet through the appropriate balance of debt and equity funding. The Company manages its capital structure and makes adjustments to it, in light of changes to economic conditions and strategic objectives of the Company.

Note no 30: Contingent Liabilities and commitments :-

(to the extent not provided for)

(A) Contingent Liabilities:

(i) Claims against the Company not acknowledged as debt:

a) The Commissioner of Central Excise, Tirupati, had issued a show-cause notice C.No.127/TCCE/2014-Adjn. (C.Ex.) dated 03.09.2014 alleging short payment of central duty on clearances of excisable goods manufactured in the guise of job work and cleared the same to M/s. Amararaja Batteries Ltd. Subsequently, three more periodical Show Cause Notices were also issued on the same issue. Details of the Show Cause Notices are provided below:

S.No.	SCN No.	Date	Period Covered	Duty Demanded
1	127/TCCE/2014-Adjn. (C.Ex.)	03.09.2014	11/2009-02/2014	'' 852.37 lakhs
2	14/TCCE/2015-Adjn (C.Ex)	09.03.2015	03/2014-12/2014	'' 205.12 lakhs
3	98/TCCE/2015-Adjn. (C.Ex)	06.01.2016	01/2015-10/2015	'' 174.96 lakhs
4	21/TCCE/2017-Adjn (C.Ex)	27.11.2017	11/2015-06/2017	'' 432.19 lakhs

The main contention of the Show cause notices were that M/s. Nile Limited has cleared job worked goods to M/s. Amara Raja Batteries and claimed exemption under Notification No. 214/86 dated 25.03.1986, however, the said exemption is not available to M/s. Nile Limited inasmuch as they have contravened the provisions of the exemption notification as when providing job work services on the goods of M/s. Amara Raja Batteries Limited, M/s. Nile Limited had used their own inputs to manufacture the final products and therefore are not eligible for the said exemption.

The above Show cause notices were adjudicated and decided by the Commissioner of Central Tax, Tirupati vide Order-in-Original No. TTD-EXCUS-000-COM-03 to 06-19-20 dated 31.07.2019. The adjudicating authority had confirmed the above demands along with interest and penalties.

M/s. Nile Limited has filed an appeal along with a pre-deposit appeal amount of '' 124.85 lakhs before the Hon''ble Customs, Excise and Service Tax Appellate Tribunal (CESTAT) Hyderabad against the order passed by the Commissioner of Central Tax, Tirupati. The issue is pending before the CESTAT and has not been listed as of 31.03.2023.

The Company''s Legal Counsel confirmed the validity of the appeals filed by the Company in the above matters. Considering the Legal Advice, the demand has not been provided for, but disclosed as a Contingent Liability.

(ii) Guarantees and letters of credit:

(a) Letters of Credit issued by Bankers - '' NIL (Previous year - '' NIL) .

(b) Customer bills discounted with Banks backed by LC - '' NIL/-(Previous year NIL)

(iii) Other money for which the Company is contingently liable:

Amount claimed by a supplier, not accepted as liability - '' 197.74 lakhs (Previous year '' 197.74 lakhs). The City Civil Court, Secunderabad, in their order dated 2^nd June, 2016, directed the Company to pay '' 39.22 Lakhs plus interest @18% p.a. from the date of filing of the suit till the date of realisation.

The Company preferred an appeal before the Hon''ble High Court at Hyderabad. The Hon''ble High Court on 31^stOctober, 2016 gave an interim stay on the trial court''s order, and directed the Company to deposit '' 60 Lakhs

to the credit of the suit. Accordingly, the Company deposited '' 60 Lakhs to the credit of the suit. Based on legal opinion, no liability will arise to the Company in this regard.

(B) Commitments:

Estimated amount of works remaining to be executed on capital account, net of advances - '' NIL/- (Previous Year '' NIL) There is no adverse impact of pending litigations on the Financial Position of the Company.

a) The Increase in Current Ratio is mainly due to reduction in Bills Discounting with the Banks.

b) The Reduction in Debt-Equity Ratio is majorly due to repayment of CC loans at the end of the year and reduction in Borrowings.

c) The Increase in Debt-Service Coverage Ratio is majorly due to downfall in Interest payments Borrowings.

d) There is an increase in Trade Payable Turnover ration due to hike in Purchases and utilization of Stock during the year.

e) There was an increase in Investment in MF during a part of this year where in the Profits have been accumulated.

Note no 36: Disclosure U/s.186(4) of the Companies Act, 2013

(i) Loans given, guarantees issued, security provided - as below (PY : Nil)

Loans granted to Wholly Owned Subsidiaries without specifying any terms or period of repayment ( Interest Charged at 10 year Bond yield rate - 7.11%)

(ii) Investments made:

Name of the Company in which investment was made and Amount of investment:

1. Nirmalya Extracts Pvt Ltd - Equity Instrument - as reported in note 33 above

2. Nile Li-Cycle Pvt Ltd - Equity Instrument - as reported in note 33 above Note no 37: Other Disclosures

1. The Company has complied with the number of layers prescribed under Clause 87 of Sec.2 of the Act read with the Companies (Restriction on number of layers) Rules 2017.

2. During the year, no scheme of arrangements has been approved by the competent authority in terms of Sec.230 to 237 of the Act, in which the Company is a party.

3. a) The Company has not advanced or loaned or invested funds (either borrowed funds or share premium or any other

sources or kind of funds) to any other person(s) or entity(ies) including foreign entities (intermediaries) with the understanding (whether recorded in writing or otherwise) that the intermediary shall (i) 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 (ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

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

4. Additional Regulatory Disclosures to the extent applicable has been reported in the Notes to Accounts.

Other Points :

(i) In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of at least equal to the amount at which they are stated in the balance sheet.

(ii) Previous year''s figures have been regrouped wherever necessary to confirm to the layout adopted in the current year.

Mar 31, 2018

Notes to financial statements

The Company has a Risk Management Policy based on which risks are identified, measured and managed. The Board of Directors review these risks and related risk management policy.

The different kinds of risks the company exposed to and its mitigation is discussed as under:

I Market risk:

(i) Foreign currency risk:

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company''s exposure to the risk of changes in foreign exchange rates relates primarily to the Company''s raw material purchase activity. Since the company''s sales prices to the customers are re-calculated every month, based on the prevailing foreign exchange rates, the foreign currency risk is eliminated.

(ii) Commodity price risks:

The Company is affected by the price volatility of Lead in the international market. The Company''s selling price of Lead to battery manufacturers is linked to the international prices. However, there is a time lag between the procurement of imported raw materials and the sale of finished goods to the customers. To mitigate the impact of price fluctuations in the interim period, the company hedges on the London Metal Exchange against raw material purchases.

II) Credit risk:

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

Trade receivables

Impairment analysis is performed at each reporting date on an individual basis for all the large customers. In addition, a number of minor receivables are grouped into homogenous groups and assessed for impairment collectively.

The Company has evaluated the concentration of risk with respect to trade receivables as low, based on historical data.

Capital Management:

Additional Information as required under Part II of Schedule III to the Companies Act, 2013 to the extent applicable to the company:

i) Details of imported & indigenous Raw Materials, Spare parts and components consumed and their percentage to total consumption:

	Year ended with March, 2018		Year ended with March, 2017
	(%) to total consumption	Value Rs.in Lakhs	(%) to total consumption	Value Rs.in Lakhs
(a) Raw Materials:
Indigenous	69.71	37,163.14	58.95	28,670.17
Imported	30.29	16,148.75	41.05	19,962.47
TOTAL	100.00	53,311.89	100.00	48,632.64
(b) Spare parts & Components
Indigenous	98.16	2,058.29	97.48	2,326.06
Imported	1.84	38.44	2.52	60.17
TOTAL	100.00	2,096.73	100.00	2,386.23

ii)	Value of imports calculated on GIF Basis:
- Raw materials		16,186.83	17,685.65
- Components & Spare parts		58.58	50.94
- Unrecoverable advance		52.02	0.00
Total		16,297.43	17,736.59
Hi)	Earnings in Foreign exchange:
Export of goods on FOB basis-Lead		227.09	-
iv)	Expenditure in foreign currency on account of:
- Traveling expenses		4.41	3.22
- Professional Charges		8.97	1.36
- Subscription charges		4.07	3.65
- Others/Delegate fee		4.16	0.09
v)	Amount remitted in foreign currency on account of dividend:
-Amount of Dividend		3.00	1.80
- Number of non-resident Shareholders (Nos)		1	1
- Number of Shares held by them(Nos)		60,000	60,000
- Year to which dividend related		2017-18 Interim Dividend / 2nd Interim Dividend	2016-17 Interim dividend

Other Points :

(i) In the opinion of the board, assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of at least equal to the amount at which they are stated in the balance sheet.

(ii) Previous year''s figures have been regrouped wherever necessary to conform to the layout adopted in the current year.

Notes to financial statements for the year ended March 31, 2018

2. Property, Plant and Equipment

(Rs. In Lakhs)

SI. No.	PARTICULARS	GROSS BLOCK				DEPRECIATION					NET BLOCK
SI. No.	PARTICULARS	As at 01.04.2017	Additions	Deductions	Total As at 31.03.2018	Upto 31.03.2017	For the year	On assets whose useful life is expired	On deductions	Total Upto 31.03.2018	As at 31.03.2018	As at 31.03.2017
A)	Tangible assets:
(i)	Freehold Land	450.36	-	-	450.36	-	-	-	-	-	450.36	450.36
(ii)	Buildings	1,950.50	292.13	-	2,242.63	447.20	72.44	-	-	519.64	1,722.99	1 ,503.30
(iii)	Plant & Equipment	3,131.30	3.98	-	3,135.28	1,773.59	265.32	-	-	2,038.91	1,096.37	1,357.71
(iv)	Furniture & Fittings	24.77	4.52	-	29.29	17.91	2.56	-	-	20.47	8.82	6.86
(v)	Vehicles	153.50	59.72	64.66	148.56	72.95	20.02	-	24.04	68.93	79.63	80.55
(vi)	Office Equipment	49.72	59.48	5.50	103.70	44.71	27.60	-	5.50	66.81	36.89	5.01
	TOTAL	5,760.15	419.83	70.16	6,109.82	2,356.36	387.94	-	29.54	2,714.76	3,395.06	3,403.79
	Previous year	5,612.90	271 .75	124.50	5,760.15	2,119.88	341 .90	-	105.42	2,356.36	3,403.79	3,493.02

NOTE:

(i) For Propery, plant and equipment exisiting as on April 1, 2016, i.e. date of transition to Ind AS, the company has used Indian GAAP carrying value as deemed cost as permitted by Ind-AS 101 - First Time Adoption. Accordingly, the net WDV as per Indian GAAP as on 1st April, 2016 has been considered as Gross Block under Ind-AS.

Notes to financial statements Continued . . .

(Rs. In lakhs)

Particulars	As at 31st March,2018	As at 31st March,2017	As at 1st April,2016
Investments
Investments in equity instruments -At cost - unlisted - fully paid-up:
(i) Equity shares in GLW Ltd (1 8.97% of Capital), a foreign
company
[ Previous year - 1 8.43%]	-	91.16	91.16
Less : Provision for Diminution Total	-	91.16	91.16
Less : Provision for Diminution Total	-	-	-
3) Financial Assets
(Unsecured, considered good)
(a) Security Deposits	94.11	95.04	33.84
(b) Gratuity fund	48.62	58.55	59.17
Note: Due by Directors or other officers of the company or any of them either severally or jointly with any other persons or due by firms / private companies in which any Director is a Partner or a Director or a Member- Nil-. Total
	142.73	153.59	93.01
4) Inventories
(At lower of cost and net realisable value)
(a) Raw materials	2,752.50	1 ,709.42	970.62
(b) Work-in-progress	1,098.97	644.60	200.86
(c) Finished goods - Lead	1,845.99	2,607.83	1,413.66
(d) Stores and spares Total	300.54	277.84	215.39
(d) Stores and spares Total	5,998.00	5,239.69	2,800.53
5) Trade Receivables
(Unsecured, considered good)
(a) Outstanding for a period exceeding six months from the date they are due for payment	32.66	66.74	44.97
(b) Others	9,212.93	2,868.50	1,526.21
Note: Debts due by Directors or other officers of the company or any of them either severally or jointly with any other persons or due by firms / private companies in which any Director is a Partner or a Director or a Member - Nil-. Total
	9,245.59	2,935.24	1,571.18
6) Cash and bank balances:
(a) Cash and Cash equivalents:
(i) Balance with Scheduled Banks in India in current accounts:	11.17	593.51	7.25
(ii) Chques on hand	1.00	-	-
(iii) Cash on hand	4.25	8.42	1.35
(b) In Deposit Accounts with Banks held as margin money or security against borrowings,guarantees and other commitments with maturity of less than 90 days Total	58.16	77.74	22.34
	74.58	679.67	30.94

(Rs. In lakhs)

Particulars	As at 31st	As at 31st	As at 1st
Particulars	March,2018	March,2017	April,2016
7) Financial Assets - Loans
(Unsecured, considered good)
Loans and advances to others:
(i) for Purchases, Expenses & Services	382.91	737.31	2,387.89
(ii) to employees	3.12	5.10	5.60
(iii) Prepaid expenses	45.26	22.73	17.65
(iv) Balances with government departments
-CENVAT input credit	0.46	66.96	69.60
GST & Sales tax paid under protest	48.86	1.47	1.47
- Vat input credit	-	490.71	425.46
Note: Due by Directors or other officers of the company or any of them
either severally or jointly with any other persons or due by firms /
private companies in which any Director is a Partner or a Director
or a Member- Nil-.
Total	480.61	1 ,324.28	2,907.67
8) Other Non-Financial assets
(i) Interest accrued (but not due) on deposits with Banks and	1.70	1.76	2.38
others
(ii) Hedging amount receiveble	98.69
(ii) Balance in Unclaimed dividend accounts with Banks	10.38	10.06	8.63
(iii) In Deposit Accounts with Banks held as margin money or	0.79	0.75	21.02
security against borrowings, guarantees and other commitments
with maturity of more than 90 days but less than 12 months
Total	111.56	12.57	32.03

(9) Equity Share Capital
(a) Authorised
50,00,000 Equity shares of Rs.10/- each	500.00	500.00	500.00
(Previous year : 50,00,000 Equity shares of Rs.10/- each)
(b) Issued, subscriped and fully paid-up
30,01 ,900 equity shares of Rs.1 01- each fully paid-up	300.19	300.19	300.19
(Previousyear:30, 01 ,900equitysharesofRs.10/-each fully paid-up)
Total	300.19	300.19	300.19

Particulars	As at 31st March, 2018		As at 31st March, 2017
Particulars	No. of shares	Amount	No. of shares	Amount
Outstanding at the beginning of the year Add/(Less): Addition / (reduction) Outstanding at the end of the year	3,001,900	300.19	3,001,900	300.19
	3,001,900	300.19	3,001,900	300.19

(d) The Company has only one class of shares i.e. equity shares with equal rights for dividend and repayment. Each holder of the shares is entitled to one vote per share.

(e) List of Shareholders holding more than 5% of shares:

	As at 31st March, 2018		As at 31st March, 2017
Name of the Shareholder	No. of shares of Rs.10/-each fully paid-up	% to paid-up capital	No. of shares ofRs.10/-each fully paid-up	% to paid-up capital
(i) Vuyyuru Rajeswari	801,836	26.71	801 ,836	26.71
(ii) Sandeep Vuyyuru Ramesh	406,928	13.56	406,928	13.56
(iii) Ramesh Vuyyuru	289,208	9.63	289,208	9.63

(Rs. In lakhs)

Particulars	As at 31st March,2018	As at 31st March,2017	As at 1st April,2016
10) Other Equity (a) Securities Premium Reserve -as in last year	1,092.88	1,092.88	1 ,092.88
(b) Revaluation Reserve
Opening balance	16.34	16.34	16.34
Closing balance	16.34	16.34	16.34
(c) General Reserve
a) General Reserve	617.00	617.00	617.00
b) Defered Revenue	81.77	105.47	129.69
Total	698.77	722.47	746.69
(d) Other Reserves: Investment Subsidy (from Govt.)	75.00	75.00	75.00
(e) Surplus in Statement of Profit and Loss
Opening balance	7,757.61	5,242.73	4,715.67
Add: Profit for the year	2,285.47	2,623.27	706.45
Amount available for appropriations	10,043.08	7,866.00	5,422.12
Less: Interim / proposed dividend on equity capital (Previous Year@ Rs.3/- per share)@Rs.4/- per share	150.09	90.06	90.06
Tax on dividend	30.55	18.33	18.33
Transfer to General reserve	0.00	0.00	71.00
Closing balance	9,862.44	7,757.61	5,242.73
Total	11,745.43	9,664.31	7,173.65
11) Loans & Deposits (a) Deferred payment liabilities - Sales tax deferment loan -Unsecured*	269.27	255.07	247.73
Total	269.27	255.07	247.73

a)* Deferred payment liabilities:

Deferred payment liability is the sales tax collected and retained for Lead unit at Choutuppal under deferment scheme of Government of Telangana repayable as per the sanctioned scheme. As per the scheme, the company is eligible to retain the sales tax collected in the first 14 years of operations subject to a maximum of Rs.405.80 lakhs. The Sales Tax deferred in a year should be repaid at the end of 14th year without interest. First repayment of this deferred payment is commenced in financial year 2014-15. Amount payable within the period of one year is shown as ''current maturities of long-term debt'' under the head "Other Current Liabilities", Note - 8.

b) There is no continuing default as on the Balance sheet date in repayment of the above deferred liabilities.

Notes to financial statements Continued . . .

(Rs. In lakhs)

Particulars	As at 31st March,2018	As at 31st March,2017	As at 1st April,2016
12) Non-Current provisions
(a) Provision for employee benefits - Leave encashment	12.04	10.76	8.05
Total	12.04	10.76	8.05
13) Deferred Tax Liabilities (net)
(i) Liability on timing differences of Depreciation	289.27	310.84	321 .07
(ii) Asset on timing differences of Leave encashment	5.27	4.02	3.02
Net deferred tax liability	284.00	306.83	318.05
14) Financial Liabilities- borrowings
(a) Loans repayable on demand
(i) From banks - Secured - Open cash credit facility	1,005.12	1,052.17	1 ,001 .28
	1,005.12	1,052.17	1 ,001 .28
(b) Deposits - Unsecured
(i) Inter Corporate Deposits	-	500.00	500.00
(ii) Other Deposits:
- from Directors	475.00	400.00	500.00
	475.00	900.00	1,000.00
Total	1,480.12	1,952.17	2,001 .28

(i) Total Open Cash Credit limits of Rs.40 Crores [(Current Year Rs.20 Crores each with Kotak Mahindra Bank and HDFC Bank), (Previous Year Rs.20 Crores each with Kotak Mahindra Bank and HDFC Bank)]; Total FUBD backed by LC Rs.30 Crores [(Current Year Rs.20 Crores with Kotak Mahindra Bank and Rs.10 Crores with HDFC Bank), (Previous year Rs.10 Crores each with Kotak Mahindra Bank and HDFC Bank)] carries interest @ 6 months MCLR 0.55% p.a. for Kotak Mahindra Bank, and @1 year MCLR 0.70% p.a. for HDFC Bank (Previous year @ 6 months MCLR 0.55% p.a for Kotak mahindra Bank, and @ 1 year MCLR 0.70% p.a. for HDFC Bank), and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupathi (including land and bulling of corporate office at Hyderabad), and till the renewal of limits during December, 2017 guaranteed by the CMD in his personal capacity.

(ii) Intercorporate deposits carry interest @10% p.a and other deposits carry interest @12% p.a, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 12 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

			(Rs. In lakhs)
Particulars	As at 31st	As at 31st	As at 31st
	March,2018	March,2017	April,2016
15) Trade payables - Unsecured
(a) Due to Micro, Small and Medium enterprises	-	-	-
(b) Due to others	456.70	231 .99	198.43
Total	456.70	231.99	198.43
Note:
(i) Micro, Small and Medium Enterprises as defined in the Micro,
Small and Medium Enterprises Development Act, 2006 have been
determined to the extent such parties have been identified on the
basis of information available with the company.
(ii) Disclosures relating to Micro, Small and Medium Enterprises are as
under :-
(ii) Disclosures under MSMED Act, 2006:
Principal amount due and remaining unpaid	-	-	-
Interest due on above and the unpaid interest	-	-	-
Interest paid
Payment made beyond the appointed day during the year	-	-	-
Interest due and payable for the period of delay	-	-	-
Interest accrued and remaining unpaid	-	-	-
Amount of further interest remaining due & payable in succeeding	-	-	-
years
16) Other Non-Financial liabilities
(a) Interest accrued but not due on borrowings	12.65	21.30	25.03
(b) Current maturities of Bills discouted with bank	4,378.74	16.52	22.78
(c) Advance from customers	-	0.02	0.02
(d) Unclaimed dividends	10.38	10.06	8.63
(e) Other payables (Expenses & Statutory dues)	481.56	432.99	300.15
Total	4,883.33	480.89	356.61
17) Short-term provisions
(a) Provision for employee benefits:
(i) Leave encashment	3.19	0.85	0.68
(b) Others:
(i) for income tax (net of advance tax)	14.89	497.81	223.09
(ii) for Excise Duty (on Closing Stocks)	-	289.76	157.07
Total	18.08	788.42	380.84

Particulars	Year ended 31st March, 2018	Year ended 31st March, 2017
18) Revenue from operations
a) Sale of products
(i) Lead
Domestic sales	62,069.66	62,118.38
Export sales (ii) Wind Power Total (a)	227.09
	62,296.75	62,118.38
	48.60	52.82
	62,345.35	62,171.20
b) Sale of services
Lead - Jobwork charges	2,670.22	2,665.19
c) Other operating revenue
Scrap sales - lead Total (a) (b) (c)	6.14	4.22
Scrap sales - lead Total (a) (b) (c)	65,021.71	64,840.61
Less: Excise duty Total	1,709.70	6,904.63
Less: Excise duty Total	63,312.01	57,935.98
Note :(i) Sale of Goods includes excise duty from April, 2017 to June, 2017 only and the same is being deducted to net off.
(ii) The revenue figures appearing are uncomparable to previous year as for the 1st quarter, sales are inclusive of excise duty and balance 3 quarters, GST is not included in the revenue figure
19) Other income
(i) Interest on
- Deposits with banks	2.59	4.56
- Others	1.53	9.60
(ii) Incentives from Government
- Sales tax reimbursement	80.47	-
- Sales tax refund		53.60
(iii) Excess liabilities written in	-	1.97
(iv) Miscellaneous receipts	0.26	-
(V) Gain on foreign currency transctions	1.93
(Vi) Interest Income (Ind AS) Total	23.82	24.08
(Vi) Interest Income (Ind AS) Total	110.60	93.81
20) Cost of materials consumed - Lead:
Opening stock	1,709.42	970.62
Add: Purchases	54,360.87	49,222.21
Add: Purchases	56,070.29	50,192.83
Less: Closing stock	2,752.49	1 ,709.42
Less: Surplus/(Loss) in Hedging operations of price of raw materials Total	53,317.80	48,483.41
	5.91	(149.24)
	53,311.89	48,632.65

Particulars	Year ended	Year ended
	31st March, 2018	31st March, 2017
21) Changes in inventories of finished goods and work-in-progress
(a) Finished goods:-Lead
(i) At the beginning of the year	2,607.83	1,413.66
(ii) At the end of the year	1,845.99	2,607.83
	761.84	(1,194.17)
Less: Excise duty /GST on increase of finished goods	(289.76)	132.69
	472.08	(1,061.48)
(b) Work in progress:-Lead
(i) At the beginning of the year	644.60	200.86
(ii) At the end of the year	1,098.97	644.60
	(454.37)	(443.74)
Net (increase) / decrease in inventory	17.71	(1,505.22)
22) Employee benefits expense
(including managerial remuneration)
Salaries and wages	717.00	591.33
Contributions to provident and other funds	45.51	35.14
Staff welfare expenses	55.24	50.11
Total	817.75	676.58
23) Finance costs
(a) Interest expense on borrowings:
- to Banks on working capital loans	565.26	738.29
- to Directors on Fixed deposits	64.12	43.31
- to Others on Fixed deposits	8.03	61.23
(b) Other finance costs (bank commission & charges)	26.37	78.85
(c) Income tax late payment	53.23	-
(d) Finance cost (Ind AS)	23.70	23.87
Total	740.71	945.55

Particulars	Year ended 31st March, 2018	Year ended 31st March, 2017
24) Other expenses
Stores and spare parts consumed	2,096.73	2,386.23
Power and fuel	992.84	1,095.06
Packing materials consumed	15.93	19.70
Other production expenses	625.75	522.78
Windmills maintenance expenses	20.37	18.75
Operating lease charges for equipment	29.10	64.38
Directors sitting fee	3.21	3.58
Recruitment & Training of personnel	1.70	2.96
Books & Periodicals	8.32	7.78
Rent	3.95	12.60
Rates and taxes	12.28	9.65
Repairs and maintenance - Buildings	57.02	11.85
- Plant & Machinery	111.36	117.75
- Others	3.48	2.78
Insurance	36.34	37.68
Communication expenses	6.70	6.87
Traveling and conveyance	21.60	16.22
Printing and stationery	4.68	5.42
Carriage outwards	410.93	446.34
Discounts	-	0.74
Advertisement and Business promotion expenses	9.57	3.99
Vehicle Maintenance charges	9.98	7.60
Legal and professional charges	32.90	29.83
Payment to auditors	-	-
-As auditors	3.44	3.03
- For taxation matters	1.01	1.51
- For management services	0.51	0.77
- Out of pocket expenses	-	0.12
Bad debts written off	(0.05)	19.78
Loss on foreign currency transaction & translation	-	8.35
Loss on sale of Assets	0.13	16.26
Late delivery charges	-	3.45
Unrecoverable advance	52.02	-
Corporate Social Responsibility Expenses	4.90	8.07
Donations	27.30	22.00
General & Miscellaneous expenses	8.23	4.13
Total	4,612.24	4,918.01

As per our report of even date attached. For and on behalf of the Board of Directors
For Gokhale & Co	Chartered Accountants (Firm Regn. No.000942S)
Sd/-	Sd/-	Sd/-
Chandrashekhar Gokhale	V. Ramesh	Sandeep Ramesh
Partner	Chairman and Managing Director	Executive Director
Membership No 023839	DIN:00296642	DIN: 026921 85
	Sd/-	Sd/-
	B.Seshagiri Rao	Bikram Keshari Prusty
Place : Hyderabad	Chief Financial Officer	Company Secretary
Date : 1 4-05-201 8	PAN:AFLPB9195H	FCS: 7855

Mar 31, 2016

1. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans:

i) Provident Fund:

Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. This fund is recognized by Income tax authorities. The company has recognized the following amounts in the Statement of Profit and Loss for the year:

B) Defined Benefit Plan :

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Company''s policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an independent actuary as at the Balance Sheet date and the details are as under:

2. Segment Reporting - (AS-17):

For management purposes, the Company is organized into two operating divisions - Lead and Wind energy. Lead Division produces Lead and Lead alloys and the Windmills generate electrical energy. However, for the purpose of segment reporting as per AS-17, Segment Reporting, since Wind energy division is not meeting the criteria laid down in the Standard as a reportable segment, the same is not considered as a reportable segment. Hence, the operations are reported under one segment only.

3. Related party disclosures (AS-18):

(a) Name of the related parties and Relationship:

(1) Key Management Personnel:

(i) Sri V.Ramesh, Chairman and Managing Director

(ii) Sri Sandeep Ramesh, Executive Director

(iii) Sri Bikram Keshari Prusty, Company Secretary

(iv) Sri B Seshagiri Rao, Chief Financial Officer

(2) Related parties:

(i) Smt. V. Shilpa (relative of CMD & Executive Director)

(ii) Smt. V. Rajeswari, (relative of CMD & Executive Director)

(3) Others (companies in which some of the Directors are interested): Trigeo Technologies Pvt Ltd.

4. Leases (AS-19):

The Company has taken certain equipment under non cancelable operating lease agreements for a period of 60 months. The lease rental charges, shown under the head ''Operating Lease Charges'' during the year ended March, 2016 is Rs. 70.06 lakhs (Previous year Rs. 67.86 lakhs) and maximum obligation on long-term non-cancelable operating lease payable as per the respective agreements are as follows:

5. Contingent Liabilities and commitments - (AS-29):

(to the extent not provided for)

(A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand (including interest), matter pending before Asst. Commissioner of Customs & Central Excise, Uppal Division, Hyderabad- Rs. 1.47 Lakhs (Previous year - Rs. 1.47 Lakhs). This demand has been paid under protest in full.

(b) Sales tax demand under APVAT Act,2005 for the period from June,2014 to March,2015, against which appeal was filed before The Appellate Deputy Commissioner (CT), Kurnool - Rs. 9.06 Lakhs.(Previous year-Nil). Amount paid under Protest against this demand is Rs. 1.13 Lakhs.

(c) Penalty demanded under APVAT Act, 2005 for the period from June,2014 to March,2015, against which appeal was filed before The Appellate Deputy Commissioner (CT), Kurnool - Rs. 2.46 Lakhs .(Previous year- Nil). Amount paid under Protest against this demand is Rs. 0.32 Lakhs.

Based on the opinion of the legal counsel, no liability will arise to the Company on the above matters.

(ii) Guarantees and letters of credit:

(a) Bank Guarantees issued by Bankers - Rs. 29.24 lakhs (Previous year - Rs. 14.24 lakhs).

(b) Letters of Credit issued by Bankers - Rs. 452.97 lakhs (Previous year - Rs. 952.74 lakhs).

(iii) Other money for which the company is contingently liable:

(a) Amount claimed by a supplier, not accepted as liability, pending before the Court - Rs. 197.74 lakhs (Previous year- Rs. 197.74 lakhs). One of the suppliers filed this claim against the Company in the year 1998 in the City Civil Court, Secunderabad and the matter is pending since then. Based on the opinion of the legal counsel, no liability will arise to the Company in this regard.

(b) Customers bills discounted with Banks - Rs. 5904.16 lakhs (Previous Year - Rs. 1471.67 lakhs)

(B) Commitments:

(i) Estimated amount of works remaining to be executed on capital account, net of advances - Rs. 145.00 lakhs

(Previous Year - Nil)

6. Additional Information as required under Part II of Schedule III to the Companies Act, 2013 to the extent applicable to the company:

i) Details of imported & indigenous Raw Materials, Spare parts and components consumed and their percentage to total consumption.

7. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of at least equal to the amount at which they are stated in the balance sheet.

8. Previous year''s figures have been regrouped wherever necessary to conform to the layout adopted in the current year.

Mar 31, 2015

1. The Company has only one class of shares i.e. equity shares with equal rights for dividend and repayment. Each holder of the shares is entitled to one vote per share.

2. Term Loans from banks - secured:

(I) Rupee term loan from Andhra Bank [Limit Rs. 1350.00 Lakhs ] outstanding as at 31st March,2015: Rs. 270.00 Lakhs shown as 'current maturities of long-term debt' under the head "Other Current Liabilities", Note - 8 (Previous year - Rs. 540.00 Lakhs) carries interest @ Base Rate 2%, repayable in 60 monthly installments of Rs. 22.50 Lakhs each.

The above loan is secured by equitable mortgage/hypothecation of Land, Buildings & Equipment of the Lead Units at Choutuppal and Tirupati and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guarantee by Managing Director of the company in his personal capacity.

3. Deferred payment liabilities:

Deferred payment liability is the sales tax collected and retained under deferment scheme of Government of Andhra Pradesh repayable as per the sanctioned scheme. As per the scheme, the company is eligible to retain the sales tax collected in the first 14 years of operations subject to a maximum of ' 405.79 Lakhs. The Sales Tax deferred in a year should be repaid at the end of 14th year without interest. First repayment of this deferred payment is commenced in financial year 2014-15.

4. Deposits: Deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period of 24 months from the date of acceptance.

5. There are no continuing defaults as on the Balance sheet date in repayment of the above term loans, deposits and interest thereon and deferred liabilities.

(i) Open cash credit from Andhra Bank (Limit Rs. 4,000 Lakhs , Previous year Rs. 2,500 Lakhs ) and FUBD backed by LC- outside MPBF [(limit) Rs.500 Lakhs , Previous year Rs.750 Lakhs ] carries interest @ Base rate 1.50% and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(ii) Inter-corporate and other deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 12 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

6. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans i) Provident Fund:

Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These fund is recognized by Income tax authorities. The company has recognized the following amounts in the Statement of Profit and Loss for the year:

(Rs. In lakhs)

SI Particulars 2014-15 2013-14 No.

a) Contribution to 29.22 26.28 provident fund

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Company's policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an independent actuary as at the Balance Sheet date and the details are as under:

7. Segment Reporting - (AS-17):

For management purposes, the Company is organized into two operating divisions - Lead and Wind energy. Lead Division produces Lead and Lead alloys and the Windmills generate electrical energy. However, for the purpose of segment reporting as per AS-17, Segment Reporting, since Wind energy division is not meeting the criteria laid down in the Standard as a reportable segment, the same is not considered as a reportable segment. Hence, the operations are reported under one segment only.

8. Related party disclosures (AS-18):

(a) Name of the related parties and Relationship:

(1) Key Management Personnel:

(i) Sri V.Ramesh, Chairman and Managing Director

(ii) Sri. Sandeep V Ramesh, Executive Director

(iii) Sri. Bikram Keshari Prusty, Company Secretary

(iv) Sri. B Seshagiri Rao, Chief Financial Officer

(2) Related parties:

(i) Smt V.Hemalatha (relative of Chairman and Managing Director & Executive Director)

(ii) Smt. V. Shilpa (relative of Chairman and Managing Director & Executive Director)

(iii) Smt. P.Lalithamaba (relative of Executive Director)

(iv) Smt V.Rajeswari, (relative of Chairman and Managing Director & Executive Director)

(3) Others (companies in which some of the Directors are interested):

(i) Trigeo Technologies Pvt Ltd.

(ii) G.S.R Advisory Services Pvt Ltd.

9. Leases (AS-19):

The Company has taken certain equipment under non cancelable operating lease agreements for a period of 60 months. The lease rental charges, shown under the head 'Operating Lease Charges' during the year ended March, 2015 is Rs.67,86,388/- (Previous year Rs. 48,07,468/-) and maximum obligation on long-term non-cancelable operating lease payable as per the respective agreements are as follows:

10. Contingent Liabilities and commitments Â (AS-29):

(to the extent not provided for)

(A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand (including interest), pending appeal preferred by the company - Rs.1.47 lakhs (Previous year - Rs. 7.16 lakhs). This demand has been paid under protest in full.

(b) The company received favorable orders from ITAT on the appeal filed by it for assessment years 1996-97 and 1997-98 and the demand of Rs.42.23 lakhs was nullified. The I.T. Department has filed further appeal against the orders of ITAT in the Hon'ble High Court of A.P and the same is pending disposal. The Management is of the view that no liability will arise in this regard. Accordingly, no contingent liability is recognized for the same.

(ii) Guarantees and letters of credit:

(a) Bank Guarantees issued by Bankers - Rs.14.24 lakhs (Previous year - Rs. 42.81 lakhs)

(b) Letters of Credit issued by Bankers - Rs.952.74 lakhs (Previous year - Rs.1636.76 lakhs).

(iii) Other money for which the company is contingently liable:

Amount claimed by a supplier, not accepted as liability, pending before the Court - Rs.197.74 lakhs (Previous year Rs. 197.74 lakhs). One of the suppliers filed this claim against the Company in the year 1998 in the City Civil Court, Secunderabad and the matter is pending since then. Based on the opinion of the legal counsel, no liability will arise to the Company in this regard.

(B) Commitments: - Nil - (Previous year - Nil-)

11. Additional Information as required under Schedule III to the Companies Act, 2013 to the extent applicable to the company:

12. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

13. Previous year's figures have been regrouped wherever necessary to conform to the layout adopted in the current year.

Mar 31, 2014

1. Share Capital

The Company has only one class of shares i.e. equity shares with equal rights for dividend and repayment. Each holder of the shares is entitled to one vote per share. Dividend on equity proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting.

2. Reserves and surplus

Notes:

a) Term Loans from banks-secured:

Rupee term loan from Andhra Bank [Limit Rs. 1,350.00 Lakhs outstanding as at 31st March, 2013: Rs. 540.00 Lakhs including Rs. 270.00 Lakhs shown as ''current maturities of long-term debt'', under the head "Other Current Liabilities", Note - 8 (Previous year - Rs. 810.00 Lakhs) carries interest @ Base Rate 2%, repayable in 60 monthly installments of Rs. 2.25 Lakhs each. The above loan is secured by equitable mortgage/hypothecation of Land, Buildings & Equipment of the Lead Units at Choutuppal and Tirupati and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guaranteed by Managing Director of the company in his personal capacity.

b) Deferred payment liabilities:

Deferred payment liability is the sales tax collected and retained under deferment scheme of Government of Andhra Pradesh repayable as per the sanctioned scheme. As per the scheme, the company is eligible to retain the sales tax collected in the first 14 years of operations subject to a maximum of Rs. 405.80 Lakhs. The Sales Tax deferred in a year should be repaid at the end of 14th year without interest. First repayment this of loan commences in financial year 2014-15.

c) Deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period of 24 months from the date of acceptance.

d) There are no continuing defaults as on the Balance sheet date in repayment of the above term loans, deposits and interest thereon and deferred liabilities.

3. Short-term borrowings

Notes:

(i) Open cash credit from Andhra Bank (limit Rs. 2,500.00 Lakhs, Previous year Rs. 2,500.00 Lakhs) and FUBD backed by LC-outside MPBF (limit) Rs. 750.00 Lakhs, Previous year Rs. 750.00 Lakhs carries interest @ Base rate 2% and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupati and guaranteed by the Managing Director of the company in his personal capacity.

(ii) Intercorporate and other deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 12 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

4. MEASUREMENT AND DISCLOSURES AS PER ACCOUNTING STANDARDS

4.1. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans

i) Provident Fund:

Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by Income tax authorities.

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Company''s policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an independent actuary as at the Balance Sheet date and the details are as under:

4.2. Segment Reporting - (AS-17):

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into two major operating divisions - Lead and Wind energy. These divisions are the basis on which the Company reports its primary segment information. Lead Division produces Lead and Lead alloys and the Windmills generate electrical energy. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

Segment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifically identified with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

Note: During the previous financial year, the Glass Lining Division was transferred on slump sale basis. Hence, in the previous year''s figures, information on this division upto the date of transfer were shown as ''Discontinuing Operations''.

B) Secondary Disclosures:

i) Segment revenue from external customers by geographical area :

There are no external customers based on the geographical location, revenues from whom constitute more than 10% of the enterprise revenue.

ii) Total carrying amount of segment assets by geographical location of assets, for each geographical segment whose segment assets are 10% or more of the total assets of all geographical segments and the additions to the same are as under:

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

4.3. Related party disclosures (AS-18):

(i) Key Management Personnel:

(a) Sri V. Ramesh, Chairman and Managing Director

(b) Sri. Sandeep V Ramesh, Executive Director

(ii) Names of related parties:

(a) Smt V. Hemalatha (relative of Managing Director)

(b) Smt V. Rajeswari (relative of Managing Director)

(c) Smt. V. Shilpa (relative of Managing Director)

(d) Smt. P. Lalithamaba (relative of Executive Director)

(iii) Others (companies in which some of the Directors are interested):

(a) Trigeo Technologies Pvt Ltd.

(b) G.S.R Advisory Services Pvt Ltd.

4.4. Leases (AS-19):

The Company has taken certain equipment under non cancelable operating lease agreements for a period of 60 months. The lease rental charges, shown under the head ''Operating Lease Charges'' during the year ended March, 2014 is Rs. 48.07 lakhs (Previous year Rs. 46.96 lakhs) and maximum obligation on long-term non-cancelable operating lease payable as per the respective agreements are as follows:

4.5. Discontinuing operations - (AS-24):

(i) Pursuant to the Business Transfer Agreement (BTA) entered into by the company on 9th July, 2011 for sale of company''s Glass Lining Division, sale of the same was completed in June, 2012. The carrying amount of the assets and liabilities of the Glass Lining Division as on the balance sheet date is nil.

(ii) Other Disclosures:

(a) During the year, out of the amount of Rs. 1,000.00 lakhs kept in Escrow account with a bank, an amount of Rs. 150.00 lakhs together with interest thereon was received on fulfillment of the related terms and conditions of the sale agreement.

4.6. Contingent Liabilities and commitments - (AS-29):

(to the extent not provided for)

(A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand (including interest), pending appeal preferred by the company - Rs. 7.16 lakhs (Previous year - Rs. 7.16 lakhs). This amount has been fully paid under protest.

(b) Property tax demand from GHMC, pending decision on writ filed by the company, aggregating to Rs. 11.70 lakhs (Previous year Rs. 11.70 lakhs). Against this liability, an amount of Rs. 2.34 lakhs (Previous year Rs. 2.34 lakhs) has been paid as per interim orders of the High Court of A.P.

(c) The company received favourable orders from ITAT on the appeal filed by it for assessment years 1996-97 and 1997-98 and the demand of Rs. 42.23 lakhs was nullified. The I.T. Department has filed further appeal against the orders of ITAT in the Hon''ble High Court of A.P. However, the Management is of the view that no liability will arise in this regard. Accordingly, no contingent liability is recognized for the same.

(ii) Guarantees and letters of credit:

(a) Bank Guarantees issued by Bankers - Rs. 42.81 lakhs (Previous year - Rs. 210.65 lakhs)

(b) Letters of Credit issued by Bankers - Rs. 1,636.76 lakhs (Previous year - Rs. 659.53 lakhs).

(iii) Other money for which the company is contingently liable: Amount claimed by a supplier, not accepted as liability, pending before the Court - Rs. 197.74 lakhs (Previous year Rs. 197.74 lakhs).

(B) Commitments: - Nil - (Previous year - Nil-)

5. Additional Information as required under Schedule VI to the Companies Act, 1956 to the extent applicable to the company:

Details of imported & indigenous Raw Materials, Spare parts and components consumed and their percentage to total consumption.

6. On 16-03-2006, the Central Power Distribution Company of Andhra Pradesh Limited (APCPDCL), to whom the company is supplying the Power generated in its Wind Power Project as per Power Purchase Agreement dt.20-05-2002, has filed an application before Andhra Pradesh Electricity Regulatory Commission (APERC) for revision of tariff after the project completed 10 years (i.e., after 29-08-2005).

Pending final adjudication, the APERC vide their interim order dated 16-11-2012 has directed the APCPDCL to pay power tariff @ 50% of the rate paid for the 10 years i.e. Rs. 1.69 per unit (50% of Rs. 3.37) for the power supplied by the company, beyond 10th year. The company has filed an appeal against the interim orders of APERC in Appellate Tribunal for Electricity and the interim order is vacated during the current year. Accordingly, during the year, the company has recorded the income at Rs. 3.37 per unit as per the original agreement.

7. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

8. General Notes:

(i) Statement of Profit & Loss for the previous year has been prepared showing the following separately as per Schedule- VI and AS-24:

* Revenue, other income, expenses, finance costs, depreciation, profit before tax, tax and profit after tax from Continuing Operations.

* Profit before tax, tax and profit after tax from Discontinuing Operations.

(ii) In the previous year''s figures, details of revenue, expenses and profit from continuing operations and discontinuing operations has been furnished in the disclosures pursuant to AS-24, Discontinuing Operations (see Note No. 4.7).

(iii) Previous year''s figures have been regrouped wherever necessary to conform to the layout adopted in the current year.

Mar 31, 2013

1.1. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans

i) Provident Fund: Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by Income tax authorities. The company has recognized the following amounts in the Statement of Profit and Loss for the year:

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Companys policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an independent actuary as at the Balance Sheet date and the details are as under: 26.3. Segment Reporting Â (AS-17):

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into three major operating divisions Â Glass Lining, Wind energy and Lead. These divisions are the basis on which the Company reports its primary segment information. The Glass lining Division produces a broad range of glass-lined equipment. The Windmills generate electrical energy and the Lead Division produces Lead and Lead alloys. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

egment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifically identified with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

Note: During the year under review, the Glass Lining Division was transferred on slump sale basis. Hence, figures relating to this division upto the date of transfer are shown as Discontinuing Operations

B) Secondary Disclosures:

i) Segment revenue from external customers by geographical area :

There are no external customers based on the geographical location, revenues from whom constitute more than 10% of the enterprise revenue.

ii) Total carrying amount of segment assets by geographical location of assets, for each geographical segment whose segment assets are 10% or more of the total assets of all geographical segments and the additions to the same are as under:

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

1.2. Related party disclosures (AS-18):

(i) Key Management Personnel:

(a) Sri V. Ramesh, Chairman and Managing Director

(b) Sri Sandeep Ramesh, Executive Director

(c) Sri V. Sridharan, COO (for part of the year)

(ii) Names of related parties:

(a) Smt V. Hemalatha (relative of Managing Director)

(b) Smt V. Rajeswari (relative of Managing Director)

(c) Smt. V. Shilpa (relative of Managing Director)

(d) Sri S. V. Narasimha Rao-Non-Executive Director

(e) Sri M. R. Naidu Â Non-Executive Director

(f) Sri S. Arun (relative of Director)

(iii) Others (companies in which some of the Directors are interested):

(a) Trigeo Technologies Pvt Ltd.

(b) G.S.R Advisory Services Pvt Ltd.

(c) Beardsell Ltd.

1.3. Discontinuing operations Â AS 24:

(i) Pursuant to the Business Transfer Agreement (BTA) entered into by the company on 9th July, 2011 for sale of companys Glass Lining Division, sale of the same was completed in June, 2012. The carrying amount of the assets and liabilities of the Glass Lining Division as on the date of Transfer stood at Rs.3993.91 lakhs (previous year Rs.4489.13 lakhs) and Rs.559.57 lakhs (previous year Rs.718.73 lakhs) respectively.

(ii) Other Disclosures:

(a) Net selling price of the net assets for which the company has entered into the sale agreement - Rs.5402.72 lakhs.

(b) Part of the sale consideration aggregating to Rs.1000.00 lakhs has been kept with an Escrow Agent in Escrow Account and the same will be received after fulfillment of the conditions specified in the BTA.

1.4. Contingent Liabilities and commitments Â (AS-29):

(to the extent not provided for)

(A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand (including interest), pending appeal preferred by the company Â Rs.7.16 lakhs (Previous year Â Rs.3.20 lakhs). This amount has been fully paid under protest.

(b) Property tax demand, pending decision on writ filed by the company Rs.11.70 lakhs (Previous year 11.70 lakhs). Against this liability, an amount of Rs.2.34 lakhs has been paid as per interim orders of the High Court of A.P.

(c) The company received favourable orders from ITAT on the appeal filed by it for assessment years 1996-97 and 1997-98 and the demand of Rs.42.23 lakhs was nullified. The I.T. Department has filed further appeal against the orders of ITAT in the Honble High Court of A.P. However, the Management is of the view that no liability will arise in this regard. Accordingly, no contingent liability is recognized.

(ii) Guarantees and letters of credit:

(a) Guarantees issued by Bankers Â Rs.210.65 lakhs (Previous year Rs.455.94 lakhs)

(b) Letters of Credit issued by BankersÂRs.659.54 lakhs (Prev. year Rs.898.98 lakhs)

(iii) Other money for which the company is contingently liable:

Amount claimed by a supplier, not accepted as liability, pending before the Court Â Rs.197.74 lakhs (Previous year Rs.197.74 lakhs).

(B) Commitments: - Nil - (Previous year Â Nil-)

2. On 16.03.2006, the Central Power Distribution Company of Andhra Pradesh Limited (APCPDCL), to whom the company is supplying the Power generated in its Wind Power Project as per Power Purchase Agreement dt.20.05.2002, has filed an application before Andhra Pradesh Electricity Regulatory Commission (APERC) for revision of tariff after the project completed 10 years (i.e., after 29.08.2005).

Pending final adjudication, the APERC vide their interim order dated 16.11.2012 has directed the APCPDCL to pay power tariff @ 50% of the rate paid for the 10 year i.e. Rs.1.69 per unit for the power supplied by the company, beyond 10th year. Accordingly, during the current year, the company has accounted for the value of Wind Power supplied to APCPDCL @ Rs.1.69 per unit. The company has preferred appeal against the interim orders of APERC in Appellate Tribunal for Electricity and the same is pending.

3. In the opinion of the board, the assets other than fixed assets and nonÂcurrent investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

4. General Notes:

(i) Statement of Profit & Loss for the year has been prepared showing the following separately as per Schedule-VI and AS-24:

- Revenue, other income, expenses, finance costs, depreciation, profit before tax, tax and profit after tax from Continuing Operations.

- Profit before tax, tax and profit after tax from Discontinuing Operations.

(ii) Details of revenue, expenses and profit from continuing operations and discontinuing operations has been furnished in the disclosures pursuant to AS-24, Discontinuing Operations (see Note No.26.7). (iii) Balance Sheet items and disclosures pursuant to the applicable Accounting Standards of the previous year include the assets and liabilities of discontinuing operations also. Hence, they are not directly comparable with that of current year.

(iv) Previous years figures have been regrouped wherever necessary to conform to the layout adopted in the current year.

Mar 31, 2012

A) Term Loans from banks - secured:

(i) Rupee term loan from Andhra Bank [Limit Rs. 320.00Lakhs] outstanding as at 31st March,2012: Rs. 62.21 Lakhs (Previous year - Rs. 168.88 Lakhs) carries interest @ Base Rate 2.75%, repayable in 36 monthly installments of Rs. 8.89 Lakhs each.

(ii) Rupee term loan from Andhra Bank [Limit Rs. 315.00 Lakhs] outstanding as at 31st March,2012: Rs. 61.32 Lakhs (Previous year - Rs. 166.32 Lakhs) carries interest @ Base Rate 2.75%, repayable in 36 monthly installments of Rs. 8.75 Lakhs each.

(iii) Rupee term loan from Andhra Bank [Limit Rs. 1350.00 Lakhs] outstanding as at 31st March,2012: Rs. 1102.49 Lakhs (Previous year - Rs. 657.87 Lakhs) carries interest @ Base Rate 3.75%, repayable in 60 monthly installments of Rs. 22.50 Lakhs each. .

All the above loans are secured by equitable mortgage/hypothecation of Land, Buildings & Equipment of the Glass Lining Division at Nacharam and Lead Units at Choutuppal and Tirupathi and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guaranteed by Managing Director of the company in his personal capacity.

(iv) Additional Working capital loan from Andhra Bank under 'Term loan facility' [Limit Rs. 500.00 Lakhs] outstanding as at 31st March,2012: Rs. 111.11 Lakhs (Previous year - Rs. 277.78 Lakhs) carries interest @ Base Rate 3.75%, repayable in 36 monthly installments of Rs. 13.89 Lakhs each. The loan is secured by first charge on all the unencumbered fixed assets of the Company and extension of the security of Term loans and collaterally secured by book value of unencumbered fixed assets consisting of Land and Building at Nacharam Unit and Plant and Machinery of Windmills at Ramagiri and first charge on all fixed assets including Land and Buildings of Lead Units at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

Note: Outstanding balance shown in (i) to (iv) above includes the amount due for less than 12 months which is shown as "current maturities of long term debt" under the head "other current liabilities", note No.8.

b) Deferred payment liabilities:

Deferred payment liability is the sales tax collected and retained under deferment scheme of Government of Andhra Pradesh repayable as per the sanctioned scheme. As per the scheme, the company is eligible to retain the sales tax collected in the first 14 years of operations subject to a maximum of Rs. 405.80 Lakhs. The Sales Tax deferred in a year should be repaid at the end of 14th year without interest. First repayment of loan commences in 2014-15.

Note: There are no continuing defaults as on the Balance sheet date in repayment of all the above term loans and interest thereon and deferred liabilities.

Notes:

(i) Open cash credit from Andhra Bank (limit Rs. 5000.00 Lakhs, Previous year Rs. 4000.00 Lakhs) and FUBD backed by LC- outside MPBF (limit) Rs. 750.00 Lakhs, Previous year Rs. 750.00 Lakhs carries interest @ Base rate 3.25% and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting of Land, Building, Plant & Machinery, other assets situated at Nacharam Unit and Plant & Machinery of Windmills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(ii) Intercorporate and fixed deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 36 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

Notes:

(i) Open cash credit from Andhra Bank (limit Rs. 5000.00 Lakhs, Previous year Rs. 4000.00 Lakhs) and FUBD backed by LC- outside MPBF (limit) Rs. 750.00 Lakhs, Previous year Rs. 750.00 Lakhs carries interest @ Base rate 3.25% and secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets of the company consisting of Land, Building, Plant & Machinery, other assets situated at Nacharam Unit and Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery and other assets of Lead Units situated at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(ii) Intercorporate and fixed deposits carry interest @12% per annum, payable quarterly, repayable as per the terms of repayment agreed, over a period ranging from 6 to 36 months from the date of acceptance.

(iii) There are no defaults as on the Balance sheet date in repayment of the above loans, deposits and interest thereon.

1.1. Employee Benefits (AS-15):

The company has classified various benefits to employees as under:

A) Defined Contribution Plans Provident Fund:

Provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specified percentage of payroll cost to the retirement benefit schemes to fund the benefits. These funds are recognized by Income tax authorities. The company has recognized the following amounts in the Statement of Profit and Loss for the year:

B) Defined Benefit Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on superannuation as per the Company's policy.

Actuarial Valuation in respect of Gratuity and Leave Encashment has been carried out by an actuary as at the Balance Sheet date and the details are as under:

1.2. Segment Reporting - (AS-17):

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into three major operating divisions - Glass Lining, Wind energy and Lead. These divisions are the basis on which the Company reports its primary segment information. The Glass lining Division produces a broad range of glass-lined equipment. The Windmills generate electrical energy and the Lead Division produces Lead and Lead alloys. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

Segment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifically identified with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

B) Secondary Disclosures:

i) Segment revenue from external customers by geographical area :

There are no external customers based on the geographical location, revenues from whom constitute more than 10% of the enterprise revenue.

ii) Total carrying amount of segment assets by geographical location of assets, for each geographical segment whose segment assets are 10% or more of the total assets of all geographical segments and the additions to the same are as under:

(Note: Figures in brackets relate to previous year)

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

1.3. Related party disclosures (AS-18):

(i) Key Management Personnel:

(a) Sri V.Ramesh, Chairman and Managing Director

(b) Sri. Sandeep Ramesh, Executive Director

(c) Sri K.V.Ramana, COO - NFD & CFO (for part of the year)

(d) Sri V.Sridharan, COO - GLD

(ii) Names of related parties:

(a) Smt V.Hemalatha (relative of Director)

(b) Smt V.Rajeswari (relative of Director)

(c) Smt. V. Shilpa (relative of Director)

(d) Sri S.V. Narasimha Rao (Non-Executive Director)

(e) Sri M.R.Naidu (Non-Executive Director)

(f) Suraneni Arun (relative of Director)

(iii) Others (companies in which some of the Directors are interested):

(a) Trigeo Technologies Pvt Ltd.

(b) G.S.R Advisory Services Pvt Ltd.

(c) Beardsell Ltd.

1.4. Discontinuing operations - AS 24:

(i) Initial Disclosure

On 9th July, 2011, the Board of Directors entered into a Business Transfer Agreement (BTA) to dispose off company's Glass Lining Division, which is also a separate segment as per AS-17, Segment Reporting. The disposal is consistent with the company's long term strategy.

Sale of Glass Lining Division was completed in June, 2012. The carrying amount of the assets of the Glass Lining Division as on the date of Balance sheet was Rs. 4489.13 Lakhs (previous year Rs. 4556.22 Lakhs) and on the said date its liabilities were Rs. 718.73 Lakhs (previous year Rs. 834.66 Lakhs). The following statement shows the revenue and expenses of continuing and discontinuing operations:

(ii) Other Disclosures:

(a) Net selling price of the net assets for which the company has entered into the sale agreement: Rs. 5850.00 Lakhs, subject to change in the net current assets on the date of transfer.

(b) Expected timing of receipt of the cash flows: June,2012 onwards

(c) Carrying amount of net assets of Glass Lining Division on the balance sheet date: Rs. 3770.40Lakhs

1.5. Contingent Liabilities and commitments - (AS-29):

(to the extent not provided for)

A) Contingent Liabilities:

(i) Claims against the company not acknowledged as debt:

(a) Service tax demand, pending decision on appeal preferred by the company- Rs. 3.20 Lakhs (Previous year - Rs. 3.20 Lakhs)

(b) Income tax demand, pending decision on appeal preferred by the company - Nil- (Previous year - Rs. 42.23 Lakhs)

(c) Property tax demand, pending decision on writ filed by the company Rs. 10.93 Lakhs (Previous year -Nil-)

(ii) Guarantees and letters of credit:

(a) Bank Guarantees issued by Bankers - Rs. 455.94 Lakhs (Previous year Rs. 354.56 Lakhs)

(b) Letters of Credit issued by Bankers - Rs. 898.98 Lakhs (Previous year Rs. 2024.70 Lakhs).

(iii) Other money for which the company is contingently liable:

Amount claimed by a supplier, not accepted as liability, pending before the court - Rs. 197.74 Lakhs (Previous year Rs. 197.74 Lakhs).

(B) Commitments:

Estimated amount of works remaining to be executed on capital account, net of advances -Nil- (Previous year- Rs. 900.00 Lakhs)

2. In the opinion of the board, the assets other than fixed assets and non-current investments, have a value on realization in the ordinary course of business of atleast equal to the amount at which they are stated in the balance sheet.

3. General Notes to the financial statements:

(i) Statement of Profit & Loss for the year has been prepared showing the following separately as per Schedule-VI (Revised) and AS-24:

- Revenue, other income, expenses, finance costs, depreciation, profit before tax, tax and profit after tax from Continuing Operations.

- Profit before tax, tax and profit after tax from Discontinuing Operations.

(ii) Details of revenue, expenses and profit from continuing operations and discontinuing operations has been furnished in the disclosures pursuant to AS-24, Discontinuing Operations (see Note No.25.6).

(iii) Disclosures pursuant to the applicable Accounting Standards and additional information relating to the Balance Sheet and the Statement of Profit & Loss as required under Schedule-VI (Revised) furnished in the Notes to the financial statements include the aggregate information pertaining to the Continuing and Discontinuing Operations of the Company.

(iv) Previous year's figures have been regrouped wherever necessary to conform to the format of revised Schedule-VI and the layout adopted in the current year.

Mar 31, 2011

I) Secured Loans:

a) Working capital loans from Andhra Bank under Open Cash Credit facility (limit Rs. 4000.00 lakhs

(Prev. year Rs. 2500.00 lakhs), adhoc limit of Rs. Nil (Previous year Rs. 500.00 lakhs) and FUBD limit (backed by LC- outside MPBF) of Rs. 750.00 lakhs (Previous year Rs. 750.00 lakhs) are secured by hypothecation of all raw materials, work-in-progress, fi nished goods, receivables and collaterally secured by book value of unencumbered fi xed assets consisting of Land and Building, Plant & Machinery, other assets at Nacharam Unit and Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery, other assets of Lead Units at Choutuppal and at Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

b) Additional Working capital loan from Andhra Bank under Term loan( Limit Rs. 500 lakhs, Prev. year Rs. 500 Lakhs) is secured by fi rst charge on all the unencumbered fi xed assets of the Company and extension of the security of Term loans I, II and III and collaterally secured by book value of unencumbered fi xed assets consisting of Land and Building at Nacharam Unit and Plant and Machinery of Wind Mills at Ramagiri and fi rst charge on all fi xed assets including Land and Buildings of Lead Units at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

c) Term Loans from Andhra Bank II , III and V [limits of Rs. 320 lakhs, Rs. 315 lakhs and 1350 lakhs] (Previous year Ã Rs. 320 lakhs, Rs. 315 lakhs and Rs. Nil) are secured by equitable mortgage/ hypothecation of Land, Buildings & Equipment at the Glass Lining Division Unit at Nacharam and Lead Units at Choutuppal and Tirupathi and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guaranteed by Managing Director of the company in his personal capacity.

d) Hire-Purchase Loans are secured by hypothecation of specifi c assets acquired with those loans.

ii) Fixed Assets:

a) Some of the fi xed assets were revalued during the fi nancial year 2000-01 based on the valuation report of an approved valuer. The resultant net surplus on such revaluation of assets amounting to Rs. 5,03,56,554/- was credited to Revaluation Reserve Account in that year.

b) Depreciation for the current year on revalued value of fi xed assets aggregating to Rs. 13,92,939/-

(previous year Rs. 20,11,347/-) has been withdrawn from Revaluation Reserve account and credited to Profi t and Loss Account by adjustment in the depreciation account.

iii) Current Assets, Loans & Advances:

a) In the opinion of the Management, the Current Assets, Loans & Advances have a value on realization will be equal to the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

iv) Deposits :

Fixed Deposits with Banks include:

- Rs. 1,25,78,150/-(Previous year Rs. 93,47,040) pledged to the Bank towards margin money for Bank Guarantees and Letters of Credit issued on behalf of the Company.

- Rs. 48,10,882/-(Previous year Rs. 17,29,162/-) kept as security deposit with bank for the Fixed deposits accepted as required U/s.58A of the Companies Act,1956.

vi) Capitalization of Borrowing Costs:

Out of the interest paid on term loans, an amount of Rs. 14.07 lakhs (Prev. Year Rs.13.40 lakhs), being the interest on borrowings for setting up the Lead Unit at Tirupathi up to the date of commissioning has been capitalized/kept in CWIP for capitalising to the respective capital assets in future.

ix) Related party disclosures:

(i) Key Management Personnel:

(a) Sri V.Ramesh, Managing Director

(b) Sri K.V.Ramana, CFO & COO

(c) Sri V.Sridharan, COO

(ii) Related parties:

(a) Smt V.Hemalatha, relative of Director

(b) Smt V.Rajeswari, relative of Director

(c) Smt. V. Shilpa, relative of Director

(d) Sri. Sandeep Ramesh, relative of Director

(e) Sri S.V. Narasimha Rao-Non-Executive Director

(f) Sri M.R.Naidu Ã Non-Executive Director

(g) Sri Suraneni Arun, relative of Director

(iii) Others:

(i) Trigeo Technologies Pvt Ltd.

x) Segmental Information:

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into three major operating divisions Ã Glass Lining, Wind energy and Lead. These divisions are the basis on which the Company reports its primary segment information. The Glass lining Division produces a broad range of glass-lined equipment. The Windmills generate electrical energy and the Lead Division produces Lead and Lead alloys. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

Segment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fi xed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifi cally identifi ed with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

B) Secondary Disclosures:

i) Segment revenue from external customers by geographical area :

There are no external customers based on the geographical location, revenues from whom constitute more than 10% of the enterprise revenue.

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the fi nancial statements of the Company.

xi) Employee Benefi ts:

The company has classifi ed various benefi ts to employees as under:

A) Defi ned Contribution Plans

Provident Fund:

The provident fund is operated through the Regional Provident Fund Authority under the scheme. The company is required to contribute a specifi ed percentage of payroll cost to the retirement benefi t schemes to fund the benefi ts. These funds are recognized by Income tax authorities.

B) Defi ned Benefi t Plan

i) Gratuity

ii) Leave Encashment

Leave encashment is payable to eligible employees who have earned leaves during the employment and / or on separation as per the Company's policy.

xiii) Previous year's figures have been regrouped wherever necessary to conform with the layout adopted in the current year and paisa is rounded off to the nearest rupee.

Mar 31, 2010

(i) Bank Guarantees and Letters of Credit (which are not crystallized) issued by Bankers and not provided for Rs.18.97 crores (Previous year Rs. 9.09 crores).

(ii) Amount claimed by suppliers but not accepted as liability, which is pending before the court - Rs.1.98 crores (Previous year Rs.1.98 crores).

(iii) Claims against the company not acknowledged as debts in respect of Income tax matters, pending decisions on appeals made by the company - Rs.56.73 lakhs (Previous year - Rs.22.90 lakhs).

(iv) Claims against the company not acknowledged as debts in respect of Service tax matters, pending decisions on appeals made by the company - Rs.3.20 lakhs (Previous year - Rs.3.20 lakhs).

(i) Secured Loans:

(a) Working capital loans from Andhra Bank under Open Cash Credit facility (limit Rs. 2,500.00 lakhs (previous year Rs.2,500.00 lakhs), adhoc limit of Rs.500.00 lakhs (Previous year Nil) and FUBD limit (backed by LC - outside MPBF) of Rs.750.00 Lakhs (Previous Year Nil) are secured by hypothecation of all raw materials, work-in-progress, finished goods, receivables and collaterally secured by book value of unencumbered fixed assets consisting of Land and Building, Plant & Machinery, other assets at Nacharam Unit and Plant & Machinery of Wind Mills at Ramagiri and Fixed assets i.e Land & Buildings, Plant & Machinery, other assets of Lead Units at Choutuppal and at Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(b) Additional Working capital loan from Andhra Bank under Term loan (limit Rs. 500.00 lakhs, Previous year Nil) is secured by first charge on all the unencumbered fixed assets of the Company and extension of the security of Term loans I, II and III and collaterally secured by book value of unencumbered fixed assets consisting of Land and Building at Nacharam Unit and Plant and Machinery of Wind Mills at Ramagiri and first charge on all fixed assets including Land and Buildings of Lead Units at Choutuppal and Tirupathi and guaranteed by the Managing Director of the company in his personal capacity.

(c) Term Loans from Andhra Bank I, II and III [limits of Rs.170 lakhs, Rs.320 lakhs and Rs.315 lakhs] (Previous year - Rs.170 lakhs, Rs.320 lakhs and Rs.315 lakhs) are secured by equitable mortgage/ hypothecation of Land, Buildings & Equipment at the Glass Lining Division Unit at Nacharam and Lead Units at Choutuppal and Tirupathi and collaterally secured by charge on the unencumbered Plant & Machinery of Wind Mills at Ramagiri and guaranteed by Managing Director of the company in his personal capacity.

(d) Hire-Purchase Loans are secured by hypothecation of specific assets acquired

with those loans.

(ii) Fixed Assets:

(a) Some of the fixed assets were revalued during the financial year 2000-01 based on the valuation report of an approved valuer. The resultant net surplus on such revaluation of assets amounting to Rs.5,03,56,554/- was credited to Revaluation Reserve Account in that year.

(b) Depreciation for the current year on revalued value of fixed assets aggregating to Rs.20,11,347/- (previous year Rs.20,24,712/-) has been withdrawn from Revaluation Reserve account and credited to Profit and Loss Account by adjustment in the depreciation account.

(iii) Current Assets, Loans & Advances:

In the opinion of the Management, the Current Assets, Loans & Advances have a value on realization which will be equal to the amount at which they are stated in the Balance Sheet and provision for all known liabilities has been made.

(iv) Deposits :

Deposits with Banks include:

-Rs.93,47,040/- (Previous year Rs. 49,82,230/-) pledged to the Bank towards margin money for Bank Guarantees and Letters of Credit issued on behalf of the Company.

-Rs.17,29,162/-(Previous year Rs.10,64,162/-) kept as security deposit for the Fixed deposits as required U/s.58A of the Companies Act,1956.

(v) Investments:

The companys investment in the shares of a Foreign company viz., M/s. GLW Ltd., Georgia, as at the year end stood at Rs.91.16 lakhs (Previous year Rs.86.52 lakhs) equivalent to 19.55% (previous year 18.63%) of the capital of the said company.

(vi) Sundry Creditors:

(a) The names of the Small Scale Industrial (SSI) undertakings to whom the Company owe any sum together with interest outstanding for more than 30 days as at 31-03-2010 are Nil (Previous year Nil).

(b) The disclosures relating to Micro and small enterprises as at 31st March, 2010 are as under:-

(vii) Fraud on the company:

During the year under review, in the course of importing raw materials, one of the suppliers committed a fraud on the company by sending fictitious sale documents and encashed the letter of credit opened by the company. The resultant loss of Rs.49.20 lacs has been charged to the Profit & Loss Account. The company has initiated steps to recover the loss.

(viii) Capitalization of Borrowing Costs:

An amount of Rs.13.40 lacs (Previous Year Rs. 40.75 lakhs) being the interest on borrowings for setting up the Lead Unit at Tirupathi up to the date of commissioning has been capitalized to the respective capital assets.

(xi) Related party disclosures:

(i) Key Management Personnel :

(a) Sri V.Ramesh, Managing Director

(b) Sri K.V.Ramana, COO (NFD) & CFO

(c) Sri V.Sridharan, COO (GLD) (ii) Names of related parties:

(a) Smt V.Hemalatha (relative of Director)

(b) Smt V.Rajeswari ,,

(c) Smt. V. Shilpa ,,

(d) Sri Sandeep Ramesh ,,

(e) D.Bharati Devi ,,

(f) Dr. M.R.Naidu, Non-Executive Director

(xii) Segmental Information:

A) Primary disclosures:

Business Segments: For management purposes, the Company is organized into three major operating divisions - Glass Lining, Wind energy and Lead. These divisions are the basis on which the Company reports its primary segment information. The Glass lining Division produces a broad range of glass- lined equipment. The Windmills generate electrical energy and the Lead Division produces Lead and Lead alloys. Financial information about these business segments is presented in the table below.

Segment Revenue and Expense: All the revenues and direct expenditure attributable to a particular segment are allocated to the respective segment.

Segment Assets & Liabilities: Segment assets include all operating assets used by a segment and consist principally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions, which are reported as direct off sets in the balance sheet. Each of the assets could be specifically identified with the particular segment. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. Segment assets and liabilities do not include deferred income taxes.

C) Accounting Policies:

Accounting policies for segment reporting are the same as adopted in preparation and presentation of the financial statements of the Company.

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