Notes to Accounts of Satia Industries Ltd.

Mar 31, 2023

(i) Rights, preferences and restriction attached to shares

The Company has only one class of equity shares having a par value of Re. 1 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The distribution will be in proportion to the number of equity shares held by the shareholders.

(a) Above term loans outstanding except Bajaj Finance, AKA Bank & Vehicle Loans from banks are secured as follows:-

(1) 1st pari passu charge:- Hypothecation of entire fixed assets (except assets which are exclusively

charged by other lenders) of the Company (both present and future) including equitable mortgage.

(2) 2nd pari passu charge:- Hypothecation of stocks of raw material, stock in process and finished goods, receivables/ book debts and other current assets (both present and future).

(b) Term loan from Bajaj Finance is primarily secured by way of hypothecation of moveable assets specifically financed by them.

Above term loans are further personally guaranteed by the Chairman Cum Managing Director and Joint Managing Director of the company.

(c) Vehicle loans are primarily secured by way of hypothecation of moveable assets specifically financed by them.

(d) Company entered into a swap agreement amounting to INR 3018.13 lacs with loan amounting to Euro 34,50,707. The impact of Mark to market gain/(loss) under the Swap agreement has been separately provided and charged to statement of profit and loss account.

(e) The loan due to AKA Bank, Frankfurt, Germany is an external commercial borrowing amounting to 81,59,915.44 EURO at the rate of 1.40% EURIBOR.

(f) Instalments for repayment of term loans due to be paid in the next year amounting Rs. 12,277.74 lacs (2021-22 Rs. 9,607.54 Lacs) have been treated as current liability and are not included in long term liability.

(g) India ratings and research has assigned a rating of A to the above term loans.

(h) Terms of repayment:

Normal Repayment Period : 4-6 Years

Interest rates on Term Loans are in range of 1.4% to 9.25%.

There was no default in repayments during financial year 2022-23 and previous year.

39. Disclosures regarding leases as per Ind As 116 ''Leases''

A. Assets taken on lease

The Company has leases for office building, and land etc. With the exception of shortterm leases and leases of low-value underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. Variable lease payments which do not depend on an index or a rate are excluded from the initial measurement of the lease liability and right of use assets.

If ownership of the leased asset transfers to the Company at the end of the lease term or the cost reflects the exercise of a purchase option, depreciation is calculated using the estimated useful life of the asset.

B. The Company does not face a significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligations related to lease liabilities as and when they fall due.

Rental expenses recorded for short-term leases and low value leases is Rs. 59.03 lacs during year ended March 31, 2023 (March 31, 2022 Rs. 87.51 lacs).

40. Employee Benefit Plans

A. Defined Contribution Plans

The Company makes contribution towards employees'' state insurance, employees'' provident fund, and Labour welfare fund. 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 recognized Rs. 380.60 lacs (March 31, 2022 Rs. 267.03 lacs) during the year as expense towards contribution to these plans.

B. Defined benefit plans and other long-term benefits

a) Gratuity

The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The scheme is unfunded. The liability for the same is recognized on the basis of actuarial valuation.

b) Leave Encashment

The Company has a defined benefit leave encashment plan for its employees. Under this plan, they are entitled to encashment of earned leaves subject to certain limits and other conditions specified for the same. The liabilities towards leave encashment have been provided on the basis of actuarial valuation.

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

Investment Risk The present value of the defined benefit plan liability (denominated in Indian Rupee) is calculated using a discount rate which is determined by reference to market yields at the end of the reporting period on government bonds.

Interest Risk A decrease in the bond interest rate will increase the plan liability.

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

life''s expectancy of the plan participants will increase the plan''s liability.

Salary Risk The present value of the defined benefit plan liability is calculated

by reference to the future salaries of plan participants. As such, an increase in the salary of the plan participants will increase the plan''s liability.

The most recent actuarial valuation and the present value of the defined benefit obligation were carried out as at March 31, 2023 by Mr. Ashok Kumar Garg. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Sensitivity Analysis (Based on most likely/possible changes in assumptions used)

Gratuity

If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 59.72 lacs (increase by Rs.68.35 lacs) [as at March 31, 2022: decrease by Rs. 53.88 lacs (increase by Rs.61.71 lacs)].

If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 68.44 lacs (decrease by Rs. 60.61 lacs) [as at March 31, 2022: increase by Rs. 61.53 lacs (decrease by Rs. 54.44 lacs)].

The estimated term of the benefit obligations in case of gratuity is 13 years (As at March 31, 2022:13 years )

Leave Encashment

If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 26.22 lacs (increase by Rs. 30.43 lacs) [as at March 31, 2022: decrease by Rs. 28.01 lacs (increase by Rs. 32.88 lacs)].

If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 30.90 lacs [decrease by Rs. 27.04 lacs) [as at March 31, 2022: increase by

Rs. 33.29 lacs (decrease by Rs.28.81 lacs)].

The estimated term of the benefit obligations in case of leave encashment is 16 years (As at March 31, 2022: 18 years)

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

There has been no change in the process used by the Company to manage its risks from prior periods.

41. Segment Information

Information reported to the Chief Operating Decision Maker (CODM) i.e., Managing director for the purposes of resource allocation and assessment of segment performance focuses on the

types of goods or services delivered or provided. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company.

Specifically, the Group''s reportable segments under Ind AS 108 are as follows

1. Paper division

2. Yarn and cotton division

3. Cogeneration division

4. Agriculture division

5. Solar division

Note: The note should state the judgements made by management in applying the aggregation criteria. This includes a brief description of the operating segments that have been aggregated in this way and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics.

The accounting policies of the reportable segments are the same as the Company''s accounting policies described in Note 1. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors'' salaries, investment income, other gains and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

Revenue and expenses directly identifiable to the segments have been allocated to the

relatively primary reportable segments.

For the purposes of monitoring segment performance and allocating resources between segments:

a) All assets are allocated to reportable segment.

b) All liabilities are allocated to reportable segments other than Rs. 1,07,529.62 lacs (As at March 31, 2022: Rs. 97,090.57 lacs) on account of share capital, other equity, deferred tax liabilities and other liabilities of corporate office.

Capital Expenditure includes addition during the year to property, plant and equipment, and capital work-in-progress.

Geographical information:

42. Financial Instruments

42.1 Capital Management

The Company manages its capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the capital structure.

The capital structure of Company consist of equity and external borrowings.

Gearing ratio

42.3 Financial risk management objectives

The Company''s corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest

rate risk and price risk), credit risk and liquidity risk.

Market Risk

The Company''s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

There has been no change to the Company''s exposure to market risks or the manner in which these risks are being managed and measured.

A. Currency risk

(a) Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange

rate fluctuations arise. The Company''s exposure to currency risk relates primarily to the Company''s operating activities and borrowings when transactions are denominated in a different currency from the Company''s functional currency.

The carrying amounts of the company''s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period.

(b) Foreign Currency sensitivity analysis

For the year ended March 31, 2023, every one rupee depreciation/appreciation in the exchange rate against U.S. dollar, might have affected the Company''s incremental operating margins approximately by 0.12% (previous year 0.08%) and for every one rupee depreciation/appreciation in the exchange rate against Euro, might have affected the Company''s incremental operating margins approximately by 0.03% (previous year 0.07%).

B. Interest risk

Interest rate risk management

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of change in market interest rates.The company''s exposure to the risk of changes in market intrerest rates relates primarily to the company''s long term debt obligations with floating interest rates.

Interest rate sensitivity analysis

For the year ended March 31, 2023, every 1 percent increase/ decrease in weighted average bank interest rate might have affected the Company''s incremental operating margins approximately by 0.17% (previous year 0.23%).

C. Other price risks

The Company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The Company doesn''t actively trade these investments.

Credit Risk

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company. The Company has limited exposure to credit risk in respect of trade receivables. The Company''s bank balances are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.

Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial liabilites including estimated interest payments as at March 31, 2023:

42. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES

Name of related party and nature of related party relationship (with which the company has any transaction during the year)

A. Individual owning directly or indirectly substantial interest in the voting power of the Company

T.C. Spinners Private Limited Satia Paper Mills Private Limited

YCD Industries Limited (Formerly known as Bhandari Export Industries Limited)

RYM Realtors Private Limited

Commitments for expenditure

Estimated amounts of contracts remaining to be executed on capital account, net of advances - Rs. Nil (Previous Year Nil).

45. Dividend

During the financial year 2022-23, the Board of Directors of the Company had declared and paid interim dividend of 20% each (Re. 0.20 per Equity Share of Rs. 1/- each). Further, the Board of Directors have recommended a final dividend of 20% (Re. 0.20 per Equity Share of Rs. 1/- each) for the financial year 2022-2023, subject to the approval of the shareholders in the ensuing Annual General Meeting of the Company and is not recognised as a liability as at March 31, 2023. During the financial year 2021-22, the Board of Directors had recommended a final dividend of 20% each (Rs. 0.20 per Equity Share of f 1/-each).

46. The Particulars of dues to Micro, Small and Medium Enterprises under Micro, Small and Medium Enterprises Development Act, 2006 (“MSMED Act”)

48. Events after the reporting period

There were no adjusting events occurred subsequent to the balance sheet date and before date of approval of financial statements.

49. Disclosure as per Ind AS 36 ''Impairment of Assets''

The Company has reviewed the carrying amount of its tangible and intangible

assets (being a cash generating unit) with its future present value of cash flows and there has been no indication of impairment of the carrying amount of the Company''s such Assets taking consideration into external and internal sources of information.

50. Fair Value Measurement Fair Valuation Techniques and Inputs used - recurring Items

The fair values of the financial assets and financial liabilities included in the level 3 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

50. Disclosure as per Ind AS 1 ''Presentation of financial statements'' and Disclosure as per Ind AS 8 - ''Accounting Policies, Changes in Accounting Estimates and Errors''.

(a) Changes in significant accounting estimates:

In the current financial year, to improve the appropriateness of the allocation of the deprecation expense on its property, plant and equipment over the remaining useful life of the assets, the Company has changed the estimate of residual value from 10% to 5%, which is inline with Schedule II to the Companies Act 2013. As a result of this change in estimate, the accumulated depreciation has been adjusted by Rs. 8,295.82 lacs upto March 31, 2023 and Rs. 5,903.64 lacs upto March 31, 2022 in accordance with Ind AS 8 ''Accounting Policies, Changes in Accounting Estimates and Errors''.

It is pertinent to note that this change in depreciation estimate has been applied prospectively, and prior periods have not been restated. The Company believes that this change will lead to a more appropriate allocation of depreciation expense over the remaining useful life of the assets and is consistent with its policy of continuously reviewing and updating accounting estimates as necessary.

Further, due to the higher depreciation, higher deferred tax asset is created which correspondingly reduced the tax expense for the financial year 2022-23.

(b) Certain other changes have also been made in the policies for improved disclosures. There is no impact on the financial statements due to these changes.

The Company earns a return on investment

ranging from 5.35% to 7.25% p.a. on fixed

deposit.

Reasons for variances

a. Due to the reason increase in total equity and reduction of in debts.

b. Reflects better operational performance.

c. Due to increase in revenue from operations and decrease in average inventory, in the current year.

d. During the year, there has been a reduction in average trade payables and with higher sales, material consumption for the year has also increased resulting into an increase in the trade payable turnover ratio.

52. Additional disclosures relating to the requirement of Schedule III

a) The Company does not have any benami property, where any proceeding has been initiated or pending against the Company for holding any benami property.

b) The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

c) 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;

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.

d) 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.

Nature of CSR activities:

Conservation of natural resources, Promotion of Education, Health care, rural development and livelihood interventions, Disaster relief, Digital Literacy amongst others.

Note: The set off available in the succeeding

years is not recognised as an asset as a

matter of prudence.

f) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as search, survey or any other relevant provisions of the Income Tax Act, 1961).

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

h) The Company has not been declared wilful defaulter by any bank or financial institution or government or any government authority.

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

j) Quarterly returns or statements of current assets filed by the Company with banks and financial institutions are in agreement with the books of accounts.

k) The Company has not carried out revaluation of items of property, plant and equipment during the year and

accordingly the disclosure as to whether the revaluation is based on the valuation by a registered valuer as defined under Rule 2 of the Companies (Registered Valuers and Valuation) Rules, 2017 is not applicable.

l) The Company has used the borrowings from banks and financial statements for the specific purpose for which it was obtained.

m) The title deeds of all immovable properties (other than immovable properties where the Company is the lessee, and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work in progress are held in the name of the Company as at the balance sheet date.

n) The Company does not have any transactions with companies which are struck off under Section 288 of the Companies Act 2013 or Section 560 of Companies Act, 1956 during the year ended March 31, 2023 and the year ended March 31, 2022.

52.The figures for the previous year have been reclassified / regrouped wherever necessary including for amendments relating to Schedule III of the Companies Act, 2013 for better understanding and comparability.

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Mar 31, 2018

Corporate Information

Satia Industries Limited (herein after referred to as (‘The Company’) was incorporated on 26 November, 1980 under the Companies Act with the registration no L21012PB1980PLC004329 is presently dealing in the following business (a) Manufacturer of Writing and Printing Paper (b) Generation of Power (c) Trading activities in Cotton & Yarn, (d) Agricultural & Plantation Operations etc. The shares of the Company are listed on BSE Limited (BSE).

Application of New & Revised Ind AS

At the date of preparation of these financial statements, there were neither new Ind ASs issued nor there were any amendments issued to the existing Ind ASs, after the initial notification issued by the MCA.

1.1 Trade receivables

The average credit period on sales of goods is 60 days. No interest is charged on trade receivables.

The Company has no history of bad debts and based on historical trend the company has not provided any provision on trade receivables. The Company’s exposure and credit worthieness of its counterparties is regularly monitored.

Trade receivables disclosed above include amounts (see below for aged analysis) that are past due at the end of the reporting period for which the Company has not recognised an allowance for doubtful debts because there has not been a significant change in credit quality and the amounts are still considered recoverable.

2. Financial assets: (i) Cash and cash equivalents

For the purposes of the statement of cash flows, cash and cash equivalents include cash on hand and in banks, cheques and drafts on hand. Cash and cash equivalents at the end of the reporting period as shown in the statement of cash flows can be reconciled to the related items in the balance sheet as follows:

Fixed deposits held as margin money

The amount in deposit accounts represents the restricted balance in respect of letter of credits/Bank Guarantee issued by the banks in favour of the Company.

(ii) Rights, preferences and restriction attached to shares

The Company has one class of equity shares having a par value of Rs 10 per share. Each shareholder is eligible for one vote per share held. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing Annual General Meeting, except in case of interim dividend. In the event of liquidation, the equity shareholders are eligible to receive the remaining assets of the Company after distribution of all preferential amounts, in proportion to their shareholding. The distribution will be in proportion to the number of equity shares held by the shareholders.

Term loans:

The loans due to Punjab National Bank, Central Bank of India, Indian Overseas Bank and Andhra Bank are secured by way of equitable mortgage on all present and future immovable properties, hypothecation of company’s present and future movable assets except Vehicles which have been specifically hypothecated. The mortgages and charges referred to above rank pari-passu among the lenders. All the borrowings are personally guaranteed by the Chariman Cum Managing Director and joint managing director of the company. The Company is not allowed to pledge these assets as security for other borrowings or to sell them to another entity.

The loans due to Punjab National Bank are further secured by pledge of 24 lacs equity shares of the Company.

Vehicle loans:

Vehicle loans are secured by hypothecation of vehicles acquired against such loans.

Installment for repayment of term loans due to be paid in the next year amounting Rs 4,202.36 lacs (2017- 3,892.22 Lacs, 2016 - 3, 689.95 lacs) has been treated as current liability and are not included in long term liability.

The weighted average effective interest rate on the bank loans is 10.32% per annum.

Terms of repayment:

Normal Repayment Period - 5 Years

Working capital Borrowings’ are secured by hypothecation of all stocks of raw material, stores, work in progress finished stock and book debts in addition to personal guarantee by C.M.D & joint managing director of the company. In addition to this the working capital limits are further secured by way of second parri passu charge on all the fixed assets of the company.

The Company pays its vendors within 60 days and no interest during the year has been paid or is payable under terms of the Micro, Small and Medium Enterprises Development Act, 2006.The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006). Refer note 48 for information available related to Micro & Small Enterprises as defined under the MSMED ACT,2006.

Impact of changes in accounting policies

There are no changes in the accounting policies which had impact on the amounts reported for earning per share

3. Operating lease arrangements

The Company has entered into Operating leases arrangements for agriculture land and branch office with lease terms between 7 and 10 years. All operating lease contracts are for a period over 5 years. The company does not have an option to purchase the leased land at the expiry of the lease periods.

Leases where the lessor effectively retains substantially all the risks and benefits of ownership of the leased item are classified as operating leases. Operating lease

4. Employee benefit plans

A. Defined Contribution Plans

The Company makes contribution towards employees’ provident fund and employees’ penshion scheme. Under the schemes, the Company is required to contribute a specified percentage of payroll cost, as payments are recognized as an expense in the Profit & Loss Account on a Straight-Line basis over the lease term.

specified in the rules of the schemes, to these defined contribution schemes. The Company recognized 125.3 lacs (2016-17 -157.69 lacs) during the year as expense towards contribution to these plans.

During the year the Company has recognised the following amounts in the statement of profit and loss :-

B. Defined Benefit Plans and Other Long Term Benefits

a) Contribution to Gratuity Funds - Employee’s Gratuity Fund.

The Company has a defined benefit gratuity plan, which is regulated as per the provisions of Payment of Gratuity Act, 1972. The scheme is non funded. The liability for the same is recognized on the basis of actuarial valuation.

b) Leave Encashment/ Compensated Absence.

The company has a defined benefit leave encashment plan for its employees. Under this plan, they are entitled to encashment of earned leaves and medical leaves subject to certain limits and other conditions specified for the same. The liabilities towards leave encashment have been provided on the basis of actuarial valuation.

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

The most recent actuarial valuation and the present value of the defined benefit obligation were carried out as at March 31, 2018 by Ashok Kumar Garg. The present value of the defined benefit obligation, and the related current service cost and past service cost, were measured using the projected unit credit method.

Estimates of future salary increases considered in actuarial valuation take account of inflation, seniority, promotion and other relevant factors such as supply and demand in the employment market.

Sensitivity Analysis (Based on most likely/possible changes in assumptions used)

Gratuity

- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 39.26 lacs (increase by Rs.44.84) (as at March 31, 2017: decrease by Rs. 26.46 lacs (increase by Rs.29.96 lacs)) (as at April 1, 2016: decrease by Rs. 22.08 lacs (increase by Rs.24.93 lacs)).

- If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs. 44.92 lacs (decrease by Rs. 39.81 lacs) (as at March 31, 2017: increase by Rs. 30.26 lacs (decrease by Rs. 27.03 lacs)) (as at April 1, 2016: increase by Rs. 25.55 lacs (decrease by Rs. 22.97 lacs)).

- The estimated term of the benefit obligations in case of gratuity is 13 years( As at March 31, 2017:12 years )

Leave Encashment

- If the discount rate is 100 basis points higher (lower), the defined benefit obligation would decrease by Rs. 12.61 lacs (increase by Rs.14.52 lacs) (as at March 31, 2017: decrease by Rs. 11.82 lacs (increase by Rs. 13.53 lacs))

- If the expected salary growth increases (decreases) by 100 basis points, the defined benefit obligation would increase by Rs.14.78 lacs (decrease by Rs. 13.03 lacs) (as at March 31, 2017: increase by Rs. 13.88 lacs (decrease by Rs. 12.30 lacs))

The estimated term of the benefit obligations in case of leave encashment is 15 years( As at March 31, 2017: 15 years )

The sensitivity analysis presented above may not be representative of the actual change in the defined benefit obligation as it is unlikely that the change in assumptions would occur in isolation of one another as some of the assumptions may be correlated.

Furthermore, in presenting the above sensitivity analysis, the present value of the defined benefit obligation has been calculated using the projected unit credit method at the end of the reporting period, which is the same as that applied in calculating the defined benefit obligation liability recognised in the balance sheet.

There was no change in the methods and assumptions used in preparing the sensitivity analysis from prior years.

There has been no change in the process used by the Company to manage its risks from prior periods.

5. Segment information

Information reported to the chief operating decision maker (CODM) i.e. Managing director for the purposes of resource allocation and assessment of segment performance focuses on the types of goods or services delivered or provided. The directors of the Company have chosen to organise the Company around differences in products and services. No operating segments have been aggregated in arriving at the reportable segments of the Company.

Specifically, the Group’s reportable segments under Ind AS 108 are as follows

1. Paper division

2. Yarn and cotton division

3. Co generation division

4. Agriculture division

5. Solar division

Note:

The note should state the the judgements made by management in applying the aggregation criteria. This includes a brief description of the operating segments that have been aggregated in this way and the economic indicators that have been assessed in determining that the aggregated operating segments share similar economic characteristics.

The accounting policies of the reportable segments are the same as the Company’s accounting policies described in Note 3. Segment profit represents the profit before tax earned by each segment without allocation of central administration costs and directors’ salaries, investment income, other gains and losses, as well as finance costs. This is the measure reported to the chief operating decision maker for the purposes of resource allocation and assessment of segment performance.

Revenue and expenses directly identifiable to the segments have been allocated to the relatively primary reportable segments.

Segment revenue and expenses which are not directly identifiable to the primary reportable segments have been disclosed under unallocable, which primarily includes interest and other income and Corporate Expenses. Other income includes interest income, export incentives Income. Corporate Expenses includes Employee staff benefit expense, Administrative expense and Depreciation expense of Corporate office.

For the purposes of monitoring segment performance and allocating resources between segments:

a) all assets are allocated to reportable segment

b) all liabilities are allocated to reportable segments other than Rs. 22261.08 (As at March 31, 2017: Rs. 15830.76) on account of share capital, other equity, deferred tax liabilities and other liabilities of corporate office.

Notes:

Capital Expenditure includes addition during the year to Fixed Assets and CWIP Geographical information:

The geographical segments considered for disclosure are based on markets , broadly as under :

1. India

2. Rest of the World

6. Financial Instruments

6.1 Capital management

The company manages it’s capital to ensure that it will be able to continue as a going concern while maximising the return to stakeholders through the optimization of the capital structure.

The capital structure of Company consist of equity and external borrowings.

Gearing ratio

The gearing ratio at the end of the reporting period was as follows;

*Debt is defined as long-term and short-term borrowings (excluding derivatives and financial guarantee contracts). ** Equity includes all capital and reserved of the company that are managed as capital.

6.2 Financial risk management objectives

The Company’s corporate treasury function monitors and manages the financial risks relating to the operations of the Company by analyzing exposures by degree and magnitude of risks. These risks include market risk (including currency risk, interest rate risk and price risk), credit risk and liquidity risk.

6.3.1 Market Risk

The Company’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.

There has been no change to the Company’s exposure to market risks or the manner in which these risks are being managed and measured.

6.3.2 (a) Foreign Currency risk management

The Company undertakes transactions denominated in foreign currencies; consequently, exposures to exchange rate fluctuations arise. The Company’s exposure to currency risk relates primarily to the Company’s operating activities and borrowings when transactions are denominated in a different currency from the Company’s functional currency.

The carrying amounts of the company’s foreign currency denominated monetary assets and monetary liabilities at the end of the reporting period.

6.3.2 (b) Foreign Currency sensitivity analysis

For the year ended March 31, 2018, every one rupee depreciation/appreciation in the exchange rate against U.S. dollar, might have affected the Company’s incremental operating margins approximately by 0.02 % the Company’s exposure to foreign currency changes for all other currencies is not material.And for every one rupee depreciation/appreciation in the exchange rate against Euro, might have affected the Company’s incremental operating margins approximately by 0.03 %

6.3.3 (a) Interest rate risk management

Interest rate risk is the risk that the fair valur or future cash flows of a financial instrument will fluctuate because of change in market interest rates.The company’s exposure to the risk of changes in market intrerest rates relates primarily to the company’s long term debt obligations with floating interest rates.

6.3.3 (b) Interest rate sensitivity analysis

For the year ended March 31, 2018, every 1 percent increase/ decrease in weighted average bank interest rate might have affected the company’s increamental operating margins approximately by 0.34%

6.3.4 Other price risks

The company is exposed to equity price risks arising from equity investments. Equity investments are held for strategic rather than trading purposes. The company doesn’t actively trade these investments.

6.5 Credit risk management

Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Company.The Company has limited exposure to credit risk owing to the balance of trade receivables as explained in Note no. 14.Company’s bank balances are held with a reputed and creditworthy banking institution resulting to limited credit risk from the counterparties.

6.7 Liquidity risk management

The Company manages liquidity risk by maintaining adequate reserves and continuously monitoring forecast and actual cash flows and by matching the maturity profiles of financial assets and liabilities.

The table below provides details regarding the contractual maturities of financial liabilities including estimated interest payments as at March 31, 2018:

8. STATEMENT OF TRANSACTIONS WITH RELATED PARTIES Name of related party and nature of related party relationship

A. Individual owning directly or indirectly substantial interest in the voting power of the company

T.C Spinners Pvt Ltd Satia Paper Mills Pvt. Ltd

YCD Industries Ltd (Formerly known as Bhandari Export Industries Ltd)

B. Key Management Personnel and other relatives

Dr. Ajay Satia (Chairman-cum-Managing Director)

Mr. R.K. Bhandari (Joint Managing Director)

Mr. Chirag Satia ( Director)

Mr. Hardev Singh ( Director)

Mr. J.R Sharma (Director ceased to be director as on 30.09.2017)

Mrs Bindu Satia (Wife of Dr. Ajay Satia)

Mr. Dhruv Satia (Son of Dr Ajay Satia)

Mrs Priyanka Satia (Daughter in Law of Dr. Ajay Satia)

Mrs. Renu Pahwa (Sister of Dr. Ajay Satia)

Mrs. Archana Saluja (Sister of Dr. Ajay Satia)

Mr. Anil Satia (Brother of Dr. Ajay Satia)

Mrs.Yachna Satia (Daughter of Dr. Ajay Satia)

Mr. Rajat Mehta (son in law of Dr.Ajay Satia)

Mrs.Pushpa Bhandari (Mother of Mr. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Mr. R.K. Bhandari)

Ms.Vasudha Bhandari (Daughter of Mr. R.K. Bhandari)

Mr. Ankit Dani (Son in law of Mr. R.K Bhandari)

Mr. Vineet Bhandari (Son of R.K Bhnadari)

Satia Paper Mills (Enterprise of Mr. Dhruv Satia)

Mrs Suman Rani ( Wife of Mr. Hardev Singh)

Mr. Amit Sharma (Son of Mr. J.R Sharma)

9. Events after the reporting period

There were no adjusting events occurred subsequent to the balance sheet date and before date of approval of financial statements.

10. Approval of financial statements

The financial statements were approved for issue by the board of directors on May 30, 2018.

RECONCILIATION OF EQUITY AS PREVIOUSLY REPORTED UNDER IGAAP TO IND-AS As at April 1, 2016

11. Transition to Ind-AS

The effect of the company’s transition to Ind AS, described in note below, is summarized in this note as follows:

(i) Transition election

(ii) Reconciliation of equity as previously reported under Indian GAAP to Ind-AS

(iii) Adjustments to the statement of cash flows.

(i) Transition election

Prior to preparation of its first Ind AS financial statements, the Company’s financial statements were prepared in accordance with the previous GAAP. These financial statements, for the year ended March 31, 2018 are their Ind AS financial statements and have been prepared in accordance with Ind AS as issued by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015.

Accordingly, the Company has adopted all of the new and revised standards and interpretations as issued by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 that are relevant to its operations and effective as on March 31, 2018 and applied the same in preparation of these financial statements, which have been prepared to assess the impact of the transition to Ind AS on the equity of the Company.

The guidance for first time adoption of Ind AS is set out in Ind AS 101 ‘First time adoption of Indian Accounting Standards’. Ind AS 101 requires an entity to comply with each Ind AS effective at the reporting date for its full set of Ind AS financial statements. As a general principle, Ind AS 101 requires the standards effective at the reporting date to be applied retrospectively. However, retrospective application is prohibited in some areas; particularly where retrospective application would require judgments by the management after the outcome of the particular transaction is already known and where mandatory exceptions are available to retrospective application of certain Ind ASs (Appendix B of Ind AS 101). In addition, a number of limited optional exemptions from full retrospective application of Ind ASs are granted where the cost of compliance is deemed to exceed the benefits to the users of the financial statements.

On adoption of Ind ASs, the Other Equity of the Company have increased by Rs 847.84 lacs on transition date and as explained in part (ii) below. This note includes reconciliations as required by Ind AS 101.

The company has applied the following transition exemptions apart from mandatory exceptions in Ind-AS 101:

1. In accordance with Ind-AS transitional provisions, the company opted to consider previous GAAP carrying value of property, plant and equipment as deemed cost on transition date.

2. In accordance with Ind-AS transitional provisions, the company opted to determine whether an arrangement existing at the date of transition contains a lease on the basis of facts and circumstances existing at the date of transition rather than at the inception of the arrangement.

3. Designation of previously recognized financial instruments exemption- The Company do not have any investments in equity instruments of Companies (other than subsidiaries, joint ventures and associates) which company opted for transition option to be measured at FVOCI or at amortised cost.

4. Fair value measurement of financial assets or liabilities at initial recognition: Ind AS 109 require that all financial liabilities and assets must be recognised at fair value(adjustment of transaction costs for financial assets and liabilities not measured at fair value through Profit and Loss) with the excpetion of trade receivable.

5. Compunded financial instrument: Ind AS 32 requires compound financial instruments to be separated at their inception into equity and liability components, based on the substance of the arrangement rather than their legal form. Ind AS 32 requires convertible bonds (i.e. convertible by the holder into a fixed number of ordinary shares) and mandatorily redeemable non-cumulative preference shares with discretionary dividends to be separated into two individual equity and liability components. However, after the assessment of the financial statements there are no such compounded financials instruments identified.

6. Decommissioning liabilities included in the cost of property, plant and equipment: Under Appendix A to Ind AS 16, specified changes in a decommissioning, restoration or similar liability are added to or deducted from the cost of the asset to which it relates, and the adjusted depreciable amount of the asset is then depreciated prospectively over its remaining useful life. As per the transition provision the Company may elect not to comply with requirements of Appendix A to Ind AS 16 for changes in such liabilities that occurred before the date of transition to Ind ASs. Where this exemption is taken, the first-time adopter should measure the liability as at the date of transition to Ind ASs in accordance with Ind AS 37 Provisions, Contingent Liabilities and Contingent Assets. On the assessment of the contracts for leasehold land and other arrangement, there are no such clauses identified where liability is required to be created under Ind AS 37.

Notes:

1. Under Ind-AS dividends payable and the associated corporate dividend tax are recorded as a liability in the year in which these are declared and approved. Under perivous Indian GAAP, dividends payable are recorded as a provision in the year to which they relate.

2. Under previous Indian GAAP, the Company amortizes the processing fees over the tenure of the borrowings. Under Ind AS, these fee considered as part of the effective interest rate on the underlying borrowings.

3. Under previous Indian GAAP Biologicl assets were measured at cost. Under Ind AS, biological assets are measured at fair value less cost to sell.

4. Under Ind-AS, loans are measured at market interest rate as a result of which any employee cost which is the difference between market rate of interest and contractual interest rate is recognized over the usage pattern of the loan. Under pervious Indian GAAP such employee cost are not accounted for and interest cost is recognized based on the contractual interest rate.

5. Under Ind-AS, guarantees issued are recognized at fair value at inception and measured at the higher of the amortized value or the obligation amount in case it is probable that the guarantee amount is payable. Under previous Indian GAAP, guarantee issued are not recognized unless it is probable that the guarantee amount is payable.

6. Prior Period Adjustments is with respect to an expnese booked in FY 2016-17 which pertains to FY 2015-16. Under Ind AS such prior period items are required to be reinstated and account for in the year to which they pertains.

7. Consequential deferred tax on all the above adjustments.

8. Under previous GAAP, current investments were measured at lower of cost or fair value. Under Ind AS, these financial assets have been classified as FVTPL on the date of transition. The fair value changes are recognised in profit or loss.

9. Under previous GAAP actuarial gains and losses were recognised in profit or loss. Under Ind AS, the actuarial gains and losses form part of remeasurement of the net defined benefit liability / asset which 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 or loss.

* Under previous GAAP income from REC has been considered as capital receipt and booked under capital reserve.

(iii) Adjustments to the statement of cash flows .

The transition from Indian GAAP to Ind-AS had no significant impact on cash flows generated by the company. Cash flows relating to interest are classified in a consistent manner as operating,investing or financing each period.

The fair values of the financial assets and financial liabilities included in the level 3 category above have been determined in accordance with generally accepted pricing models based on a discounted cash flow analysis, with the most significant inputs being the discount rate that reflects the credit risk of counterparties.

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Mar 31, 2016

Corporate Information:-

Satia Industries Limited (herein after referred to as ‘The Company’) is presently dealing in the following business

1. Manufacturer of Writing and Printing Paper

2. Generation of Power

3. Trading activities in Cotton & Yarn

4. Agricultural & Plantation Operations etc.

Segment Reporting

5. Business Segments:

Based on the guiding principles given in AS-17 “Segment Reporting” issued by the institute of Chartered Accountants of India, the Group business segment include. Writing & Printing Paper, Power Generation Yarn Division and Agriculture Division.

6. Geographical Segments:

Since the Group activities/operations are primarily within th country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment.

7. Segment Accounting Policies:

In Addison to the significant accounting policies applicable to the business segments as set out in note no.1 of “Notes to the accounts” the accounting policies in relation to segment reporting are as under:

8. Segment Revenue

Segment revenue and expenses are directly attributable to the segments.

9. Segment Assets and Liabilities

Segment assets include all operating assets used by a segment and consists principally of operating cash, debtors inventories and fixed assets net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities. plincipaty of creditors and accrued liabilities.

10. Inter segment

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

11. information about business segments: The detailed reporting is as per annexure. The company is carrying on the agriculture operations of plantation. The cost incurred in this segment has been treated as prepaid expenses and included in the Inventories which will be set off against the future income under the segment In terms of the provisions of AS-17 “Segment Reporting” the company has recognized four segments

Revenue for inter segment transactions have been recognized as below:-

12 Power

Power is charged by Cogeneration division at the rate at par with the tariff & other charges invoiced by the Punjab State Power Corporatien Ltd.

13. Steam

Steam generated by Cogeneration division is put to revenue of the Segment on the basis of cost on pro rate basis.

14. Agriculture Division

Expenses are recognized in the year of production of crop.

15. The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-. Each holder of equity shares is entitled to one vote per share.

16. In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts.

c) However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

Note 17 : The loans due to PNB, CBI AND IOB are secured by the first charge by way of equitable mortgage of company’s immovable properties, present and future, hypothecation of company’s movable assets, present and future in their favour on parripassu basis and further personally guaranteed by the Managing Director and a director of the company.

Note 18 : The loans of PNB are further secured by pledge of 24 lacs equity shares held by the promoters Note 3 : Vehicle loans are secured by hypothecation of specific assets only.

Note 19 : Installment for repayment of term loans due to be paid in the next year amounting '' 3102.09 lacs ( PY '' 1849.73 lacs) has been treated as current liability and are not included as long term liability.

20. MSMED ACT2006

The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006).Based on the information available with the company, balance due to Micro & Small Enterprises as defined under the MSMED ACT,2006 is Rs. 36.33 lacs (previous year Rs. 62.55 lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

21. EMPLOYEE BENEFITS

Effective from 1st January,2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

The following table sets out the status of the gratuity scheme plan as at 31.03.2016.

22. Table Showing Changes in Present, Value of Obligations:

23. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

24. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 26.69 lacs (Previous year Rs 28.48 lacs) are not included in the valuation of inventory of such goods. However they said liability if provided in accounts would have no effect on the profits for the period.

25. During the period the company has made provision for Tax amounting to Rs. Nil.

26. The management of the company has not recognized any loss for impairment of any of the fixed assets of the company

27. Segment Reporting

28. Business Segments:

Based on the guiding principles given in AS-17 “Segment Reporting” issued by the

Institute of Chartered Accountants of India, the Groups business segment include: Writing & Printing Paper, Power Generation, Yarn Division & Agriculture Division.

29. Geographical Segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment

30. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segments as set out in note no.1 of “Notes to the accounts”, the accounting policies in relation to segment reporting are as under:

31. Segment Revenue and Expenses:

Segment revenue and expenses are directly attributable to the segments.

32. Segment assets and 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 offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

33. Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

34. Information about business segments:

The detailed reporting is as per annexure. During the year company has started a new segment for agriculture operations of plantation. The cost incurred in this segment has been treated as prepaid expenses and included in the inventories which will be set off against the future income under the segment.

35. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

36. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

37. Figures in brackets represent figures of previous year.

38. Previous Year’s figures have been regrouped and/or re-arranged wherever considered necessary.

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Mar 31, 2015

1. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

2. The liability of Excise Duty on finished goods remaining nucleated in the factory premises and lying in stock at the end of the year estimated at Rs 56.33 lacs (Previous year Rs 26.69 lacs) are not included in the valuation of inventory of such goods. However they said liability if provided in accounts would have no effect on the profits for the period.

Earning Per Share (EPS)

Basic

Diluted

Diluted EPS is calculated after taking into consideration of potential equity share capital.

3. During the period the company has made provision for Tax amounting to Rs. 127.00 lacs.

4. The management of the company has not recognized any loss for impairment of any of the fixed assets of the company

5. Depreciation

Effective from April 01, 2014, the company has with retrospective effect changed its method of providing depreciation on fixed assets from " Straight Line" method to them, "Written Down Value " method, at the rates keeping in view the remaining useful life as certified by the Chartered Engineers, except the Captive Power Plants(CO-Gen Division) where in the useful life of the assets has been taken wherever necessary with the help of a Technical Advice keeping in view the terms of Schedule II of Companies Act 2013. Had the company continued to use the earlier method the depreciation would have been at a figure

6. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

7. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

8. Figures in brackets represent figures of previous year.

9. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary.

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Mar 31, 2014

1. Corporate Information:-

Satia Industries Limited formerly known as Satia Paper Mills Limited (herein after referred to as 'The Company') is a manufacturer of Writing and Printing Paper. The company is also engaged in generation of power and trading activities in Cotton & Yarn.

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

20,00,000 Shares out of the issued,subscribed and paid up share capital were allotted as bonus shares in the last five years by capitalization of reserves.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

2.Share Application Money

The Company has received Share Application money of Rs.300.00 Lacs ( Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial year 2004-2005 and 32.55 Lacs in financial year 2005- 2006) from promoters and associates to partly finance the project cost approved and stipulated by Financial Institution and Bank.

During the year ended 31.03.06 the company allotted 20,00,000 Equity shares @ Rs. 10 per share amounting to Rs.200 .00 lacs to the promoters and their associates on preferential basis as per approval received from SEBI and remaining share application money of Rs.100.00 lacs against which shares will be allotted in future as permitted under the statue. These funds were utilized in the year of receipt for purpose of capital expenditure as per scheme approved by the financial institutions and the terms of allotment are as below:-

No. of Balance Shares May be issued: 118003 The amount of premium: Rs. 74.74

The company has sufficient authorised share capital amount for allotment of shares against the share application.

3. The loans are further secured by pledge of 24 lacs equity shares held by the promoters

4. Vehicle loans are secured by hypothecation of specific assets only.

5. Instalments for repayment of term loans due to be paid in the next year amountng to Rs. 1397.59 lacs ( PY Rs.1538.34 lacs) has been treated as long term liability.

6. Working capital Borrowings are secured by hypothecation of all stocks of raw material stores,work in progress finished stock and book debts,personal guarantee by M.D & a Director of the company.In addition to this the working capital limits are further secured by way of second parri passu charge on all the fixed assets of the company.

7. The loan due to PNB is further secured by pledge of 24 lacs equity shares held by the promoters

8. Exceptional Items

There were no exceptional Items during the year.

9. Extraordinary Items

In includes prior period expenses.

10. Contingent Liabilities and Commitments (to the extent not provided for)

Year Ended Year Ended Particulars As On As On 31March,2014 31March,2013

Bank Guarantee 540.94 81.14

Unexpired Letter of Credit 1681.33 1962.53 (Opened by Bank) (Material received against LCs has been accounted for and credited to suppliers account)

Excise & Customs duty demand 3.83 3.83 in dispute

Sales Tax demand in dispute 3.86 3.86

Customs Duty in respect of 73.72 53.27 Export Obligation

Corporate Guarantee in favour 1210.00 490.00 of Uco Bank on Behalf of T.C Spinners Pvt.Ltd (Outstanding balance Rs. 838.65)

11. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.

Nature of Relationship Name of Related Party

Individual Owing directly or M/s T.C. Spinners Pvt. Ltd. indirectly substantial interest in the voting power of the company. Associates

Key Management Personnel Dr. Ajay Satia

Mr. R.K. Bhandari Mr. Janak Raj Sharma

Relative of key Management(Relevant Mrs Bindu Satia (Wife of Dr. Personnel) Ajay Satia)

Mr. Anil Satia (Brother of Dr. Ajay Satia)

Mrs. Saloni Satia( Wife of Mr Anil Satia)

Smt.Krishna Satia (Mother of Dr. Ajay Satia)

Mrs. Renu Pahwa (Sister of Dr. Ajay Satia)

Mr. Rajat Mehta (son in law of Dr.Ajay Satia)

Ms. Yachna Satia (Daughter of Dr. Ajay Satia)

Mr. Chirag Satia (Son of Dr. Ajay Satia)

Mr. Kulbir Pahwa (Sisters Husband of Dr. Ajay Satia)

Mr. Vinod Saluja (Sisters Husband of Dr. Ajay Satia)

Mrs. Archana Saluja (Sister of Dr. Ajay Satia)

Mrs.Pushpa Bhandari (Mother of Mr. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Mr. R.K. Bhandari)

Ms. Vasudha Bhandari (Daughter of Mr. R.K. Bhandari)

Mr. Amit Sharma (Son of Mr. Janak Raj. Sharma)

Mr. Dhruv Satia (Son of Dr Ajay Satia)

12. MSMED ACT2006

The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006).Based on the information available with the company, balance due to Micro & Small Enterprises as defined under the MSMED ACT,2006 is Rs. 35.73 lacs (previous year Rs.24.88 lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

13. EMPLOYEE BENEFITS

Effective from 1st January,2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

14. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provi- sion for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

15. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 26.69 lacs (Previous year Rs.28.48 lacs) are not included in the valuation of inventory of such goods. However the said liability if provided in accounts would have no effect on the profits for the period.

16. During the period the company has made provision for Tax amounting to Rs. 710 lacs.

17. The management of the company has not recognised any loss for impairement of any of the fixed of the company.

18. The management of the company has recognised the loss of advance of Rs.8.52 crores given to PSIDC being irrecoverable.

19. Depreciation

The management has decided to account for depreciation during the year on the basis of remaining useful life of the fixed assets as determined by an independent agency. Consequently the depreciation charge for the current year is higher.

20. Segment Reporting

A. Business Segments:

Based on the guiding principles given in AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Groups business segment include: Writing & Printing Paper, power generation and yarn division.

B. Geographical Segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment

C. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segments as set out in note no.1 of "Notes to the accounts", the accounting policies in relation to segment reporting are as under:

a) Segment Revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

b) Segment assets and liabilities

Segment assets include all operating assets used by a segment and consist prin- cipally of operating cash, debtors, inventories and fixed assets, net of allowances and provisions which are reported as direct offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and ac- crued liabilities.

c) Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

d) Information about business segments: The detailed reporting is as per annexure. During the year company has started a new segment for agriculture operations of plantation. The cost incurred in this segment has been treated as prepaid expenses and included in the inventories which will be set off against the future income under the segment.

21. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

22. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

23. Figures in brackets represent figures of previous year.

24. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary.

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Mar 31, 2013

1. Corporate Information:-

Satia industries Limited formerly known as Satia Paper Mills Limited (herein after referred to as The Company') is a manufacturer of Writing and Printing Paper. The company is also engaged in generation of power and trading activities in Cotton & Yarn.

2. The Company has only one class of shares referred to as equity shares having a par value of Rs. 10/-, Each holder of equity shares is entitled to one vote per share.

20,00,000 Shares out of the issued,subscribed and paid up share capital were allotted as bonus (20,00,000) shares in the last five years by capitalization of Reserves.

In the event of Liquidation of the company, the holders of equity shares will be entitled to receive any of the remaining assets of the company, after distribution of all preferential amounts. However, no such preferential amounts exist currently. The distribution will be in proportion to the number of equity shares held by the shareholders.

3. Share Application Money

The Company has received Share Application money of Rs.300.00 Lacs (Rs. 175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial year 2004-2005 and 32.55 Lacs in financial year 2005-2006) from promoters and associates to partly finance the project cost approved and stipulated by Financial Institution and Bank. During the year ended 31.03.06 the company has allotted 20,00,000 Equity shares @10 per shares amounting to Rs.200.00 lacs to the Promoters and their associates on preferential basis as per approval received from SEBI and remaining share application money of Rs. 100.00 lacs against which shares will be allotted in future as permitted under the statue. These funds were utilized in the year of receipt for purpose of capital expenditure as per scheme approved by the financial institutions and the terms of allotment are as below:-

No. of Balance Shares Proposed to be issued: 140357 The amount of premium: Rs. 61.25

The company have sufficient authorised share capital amount for allotment of shares against the share application.

4. Contingent Liabilities and Commitments to the extent not provided for)

Year Ended Year Ended Particulars As On As On 31 March,2013 31March,2012

Bank Guarantee 81.14 227.98

Unexpired Letter of Credit 1962.53 1239.09 (Opened by Bank)

(Material received against LCs has been accounted for and credited to suppliers account)

Excise & Customs duty demand in dispute 3.83 4.40

Sales Tax demand in dispute 3.86 3.86

Customs Duty in respect of Export Obligation 53.27 22.78

Corporate Guarantee in favour of Uco Bank on 490.00 490.00

Behalf of T.C Spinners Pvt.Ltd(Outstanding balance Rs. 204.83)

5. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.

Nature of Relationship Name of Related Party

Individual Owing directly or M/s T.C. Spinners Pvt. Ltd. indirectly substantial interest in the voting power of the company.

Key Management Personnel Mr. Ajay Satia

Mr. R.K. Bhandari Mr. Janak Raj Sharma

Relative of key Management(Relevant Mrs Bindu Satia (Wife of Sh. Personnel) Ajay Satia)

Mr. Anil Satia (Brother of Sh. Ajay Satia)

Mrs Saloni Satia( Wife of Sh Anil Satia)

Smt.Krishna Satia (Mother of Sh. Ajay Satia)

Mrs. Renu Pahwa (Sister of Sh. Ajay Satia)

Ms Yachna Satia (Daughter of Sh. Ajay Satia)

Mr. Chirag Satia (Son of Sh. Ajay Satia)

Mr. Kulbir Pahwa (Sisters Husband of Dr. Ajay Satia)

Mr. Vinod Saiuja (Sisters Husband of Dr. Ajay Satia)

Mrs. Archana Saiuja (Sister of Dr. Ajay Satia)

Mrs. Pushpa Bhandari (Mother of Sh. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Sh. R.K. Bhandari)

Ms. Vasudha Bhandari (Daughter of Sh. R.K. Bhandari)

Mr. Amit Sharma (Son of Sh. Janak Raj. Sharma)

Mr. Dhruv Satia (Son of Dr Ajay Satia)

6. MSMED ACT2006

The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006). Based on the information available with the company, balance due to Micro & Small Enterprises as defined under the MSMED ACT, 2006 is Rs. 24.88 lacs (previous year Rs. 20.28 lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

7. CER/VER/REC ACCOUNTING

Carbon Emission Reductions (CER), Voluntary Emission Reductions (VER) and Renewable Energy Certificates have been accounted for on accrual basis against the Clean Development Mechanism registered (CDM) project with the United Nations Framework Convention on Climate Change (UNFCCC).

8. EMPLOYEE BENEFITS

Effective from 1st January, 2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

9. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reason- ably necessary.

10. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 28.48 lacs (Previous year Rs.22.26 lacs) are not included in the valuation of inventory of such goods. However the said liability if provided in accounts would have no effect on the profits for the period.

11. During the period the company has made provisions for Minimum Alternative Tax amounting to Rs 386 Lacs against which the Company is entitled to MAT Credit entitlment of 386 lacs. The managemant of the Company has not recognised any loss for imparcment of any of the fixed of the Company.

12. Segment Reporting

A. Business Segments:

Based on the guiding principles given in AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Groups business segment include: Writing & Printing Paper, power generation and yarn division.

B. Geographical segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment.

C. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segments as set out in note no.1 of "Notes to the accounts", the accounting policies in relation to segment reporting are as under:

a) Segment Revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

b) Segment assets and 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 offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

c) Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

d) Information about business segments:

The detailed reporting is as per annexure. During the year company has started a new segment for agriculture operations of plantation. The cost incurred in this segment has been treated as prepaid expenses and included in the inventories which will be set of against the future income under the segment.

13. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

14. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

15. Figures in brackets represent figures of previous year.

16. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary. Figures have been rounded off to the nearest rupee.

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Mar 31, 2012

1. Nature of Operations:-

Satia Industries Limited formerly known as Satia Paper Mills Limited (herein after referred to as The Company') is a manufacturer of Writing and Printing Paper. The company is also engaged in generation of power and trading activities in Cotton & Yarn.

2. Share Application Money

The Company has received Share Application money of Rs.300.00 Lacs ( Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial year 2004-2005 and 32.55 Lacs in financial year 2005-2006) from promoters and associates to partly finance the project cost approved and stipulated by Financial Institution and Bank. During the year ended 31.03.06 the company has allotted 20,00,000 Equity shares @ 10 per shares amounting to Rs.200 .00 lacs to the and asso- ciates on preferential basis as per approval received from SEBI and remaining share applica- tion money of Rs.100.00 lacs against which shares will be allotted in future as permitted under the statue. These funds were utilized in the year of receipt for purpose of capital expenditure as per scheme approved by the financial institutions and the terms of allotment are as below:-

No. of Balance Shares Proposed to be issued: 174322 The amount of premium: Rs. 47.36

The company have sufficient authorised share capital amount for allotment of shares against the share application.

3. Contingent Liabilities and Commitments to the extent not provided for)

Year Ended Year Ended Particulars As On As On 31 March,2012 31 March,2011

Bank Guarantee 227.98 721.97

Unexpired Letter of Credit 1239.09 1129.02 (Opened by Bank) (Material received against LCs has been accounted for and credited to suppliers account)

Excise & Customs duty demand 4.40 4.40 in dispute

Sales Tax demand in dispute 3.86 3.86

Customs Duty in respect of 22.78 0.12 Export Obligation

Corporate Guarantee in favour 490.00 490.00 of Uco Bank on Behalf of T.C Spinners Pvt. Ltd (Outstanding balance Rs. 287.92)

4. DISCLOSURE REQUIREMENT AS PER AS-18, ON RELATED PARTY DISCLOSURE.

Nature of Relationship Name of Related Party

Individual Owing directly or M/s T.C. Spinners Pvt. Ltd. indirectly substantial interest in the voting power of the company.

Key Management Personnel Mr.Ajay Satia Mr. R.K. Bhandari Mr. Janak Raj Sharma

Relative of key Management Mrs Bindu Satia (Wife of Sh. (Relevant Personnel) Ajay Satia)

Mr. Anil Satia (Brother of Sh. Ajay Satia)

Mrs Saloni Satia( Wife of Sh Anil Satia)

Smt.Krishna Satia (Mother of Sh. Ajay Satia)

Mrs. Renu Pahwa (Sister of Sh. Ajay Satia)

Ms Yachna Satia (Daughter of Sh. Ajay Satia)

Mr. Chirag Satia (Son of Sh. Ajay Satia)

Mr.Kulbir Pahwa (Sisters Husband of Dr. Ajay Satia)

Mr. Vinod Saluja (Sisters Husband of Dr. Ajay Satia)

Mrs. Archana Saluja (Sister of Dr. Ajay Satia)

Mrs.Pushpa Bhandari (Mother of Sh. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Sh. R.K. Bhandari)

Ms.Vasudha Bhandari (Daughter of Sh. R.K. Bhandari)

Mr. Amit Sharma (Son of Sh. Janak Raj. Sharma)

Mr. Dhruv Satia (Son of Dr Ajay Satia)

5. MSMED ACT2006

The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006).Based on the information available with the company, balance due to Micro & Small Enterprises as defined under the MSMED ACT, 2006 is Rs. 20.28 lacs (previous year Rs. 37.84lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

6. CER/VER ACCOUNTING

Carbon Emission Reductions (CER) and Voluntary Emission Reductions (VER) have been accounted for on accrual basis against the Clean Development Mechanism (CDM) project registered with the United Nations Framework Convention on Climate Change (UNFCCC).

7. EMPLOYEE BENEFITS

Effective from 1st January, 2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

The following table sets out the status of the gratuity scheme plan as at 31.03.2012.

8. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

9. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 22.26 lacs (Previous year Rs.28.64 lacs) are not included in the valuation of inventory of such goods. However the said liability if provided in accounts would have no effect on the profits for the period.

Diluted EPS is calculated after taking into consideration of potential equity share capital. The com- pany proposes to issue 174322 nos. of equity shares to promoters and associates (calculated on basis of book value of equity shares as on 31.03.12) under obligation to financial institutions and banks as per scheme sanctioned by financial institution and bank.

10. During the period the company has made provision for Tax amounting to Rs 100,29 Lacs.

11. Segment Reporting

A. Business Segments:

Based on the guiding principles given in AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Groups business segment include: Writing & Printing Paper, power generation and yarn division.

B. Geographical segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment.

C. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segments as set out in note no.1 of "Notes to the accounts", the accounting policies in relation to segment reporting are as under:

a) Segment Revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

b) Segment assets and 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 offsets in the balance sheet. Segment liabilities include all operating liabilities and consist principally of creditors and accrued liabilities.

c) Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

d) Information about business segments:

12. Current Assets including advances are considered good and in view of the management of the company to be realizable within 12 months from the date of Balance Sheet.

13. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

14. Figures in brackets represent figures of previous year.

15. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary. Figures have been rounded off to the nearest rupee.

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Mar 31, 2011

1. Nature of Operations:-

Satia Industries Limited formerly known as Satia Paper Mills Limited (herein after referred to as 'The Company') is a manufacturer of Writing and Printing Papers.

2. Estimated amount of contract remaining to be executed on capital account and not provided for net of advance Rs. 1177.65 Lacs (previous year Rs. 713.62 Lacs).

3. Contingent liabilities not provided for in respect of:

a) Bank Guarantee Rs. 721.97 Lacs (P.Y. Rs. 1386.54 Lacs)

b) Unexpired Letter of Credit: Rs. 1129.62 (P.Y. Rs.427.67 Lacs.)

However the company has accounted for the materials received against the LCs by way of credit to the account of the party.

c) Excise & custom duty demands in dispute Rs. 4.40 (P.Y. Rs.4.52 Lacs)

d) Sales Tax demand in dispute Rs 3.86 lacs (P.Y.Rs.3.86 Lacs)

e) Customs Duty in respect of Export Obligation 0.12 (P.Y. Rs.6.33)

f) Corporate Guarantee Rs.490 lacs ( P.Y. 490 Lacs) in favour of Uco Bank on behalf of T.C. Spinners Pvt. Ltd., Lalru (Outstanding Balance Rs. 374.25 lacs).

4. The company has been obtaining confirmation from suppliers who have registered themselves under the Micro, Small & Medium Enterprises Development Act, 2006 (MSMED ACT, 2006). Based on the information available with the company, balance due to Micro & Small Enter- prises as defined under the MSMED ACT, 2006 is Rs. 37.84 lacs (previous year Rs. 20.22 lacs). Further no interest during the year has been paid under the terms of the MSMED Act, 2006.

5. Carbon Emission Reductions (CER) and Voluntary Emission Reductions (VER) has been ac- counted for on accrual basis against the Clean Development Mechanism (CDM) project registered with the United Nations Framework Convention on Climate Change (UNFCCC).

6. Employee Benefits

Effective from 1st January, 2007 the company adopted Accounting Standard 15 (revised 2005) on Employees Benefits issued by the Institute of Chartered Accountants of India.

The following table sets out the status of the gratuity scheme plan as at 31.03.2011.

7. In the opinion of Board of Directors and to the best of their knowledge and belief, the value on realization of Current Assets, Loans and Advances in the ordinary course of business would not be less than the amount at which they are stated in Balance Sheet. The provision for all known liabilities is adequate and neither is excess nor short of the amount reasonably necessary.

8. The liability of Excise Duty on finished goods remaining uncleared in the factory premises and lying in stock at the end of the year estimated at Rs 28.64 lacs (Previous year Rs.15.25 lacs) are not included in the valuation of inventory of such goods. However the said liability if pro- vided in accounts would have no effect on the profits for the period.

9. The Company has received Share Application money of Rs.300.00 Lacs (Rs.175.12 Lacs in financial year 2003-04, Rs.92.33 Lacs in the financial year 2004-2005 and 32.55 Lacs in financial year 2005-2006) from promoters and associates to partly finance the project cost approved and stipulated by Financial institutions and bank. During the year ended 31.03.06 the company has allotted 20,00,000 equity shares @ 10 per shares amounting to Rs.200 .00 lacs to the promoters and associates on preferential basis as per approval received from SEBI and remaining share application money of Rs. 100.00 lacs against which shares will be allotted in future as permitted under the statue. These funds were utilized in the year of receipt for purpose of capital expenditure as per scheme approved by the financial institutions and banks.

10. Disclosure requirement as per AS-18, on related party disclosure:-

Nature of Relationship Name of Related Party

Individual Owing directly or M/s T.C. Spinners Pvt. Ltd. indirectly a substantial interest in the voting power of the company

Key Management Personnel Mr.Ajay Satia Mr. R.K. Bhandari Mr. Dhruv Satia Mr. Janak Raj Sharma

Relative of key Management Mrs Bindu Satia (Wife of Sh. Ajay (Relevant Personnel) Satia)

Mr. Anil Satia (Brother of Sh. Ajay Satia)

Mrs Saloni Satia( Wife of Sh Anil Satia)

Smt.Krishna Satia (Mother of Sh. Ajay Satia)

Mrs. Renu Pahwa (Sister of Sh. Ajay Satia)

Ms Yachna Satia (Daughter of Sh. Ajay Satia)

Mr. Chirag Satia (Son of Sh. Ajay Satia)

Mr.Kulbir Pahwa (Sisters Husband of Dr. Ajay Satia)

Mr. Vinod Saluja (Sisters Husband of Dr. Ajay Satia)

Mrs. Archana Saluja (Sister of Dr. Ajay Satia)

Mrs.Pushpa Bhandari (Mother of Sh. R.K. Bhandari)

Mrs. Kiran Bhandari (Wife of Sh. R.K. Bhandari)

Ms.Vasudha Bhandari (Daughter of Sh. R.K. Bhandari)

Mr. Amit Sharma ( Son of Sh. Janak Raj. Sharma)

Transaction with parties as listed above during the period under consideration:

11. During the period the company has made provision for tax amounting to Rs 149.06 lacs under Minimum Alternative Tax. In view of the improving business conditions and requisite addition to the Plant & Machinery, the Management is of the opinion that the company would be able to generate adequate profits to claim credit of tax paid under Mat as per the provisions of income Tax Act. Accordingly the tax credit has been accounted for though part payment of the tax liability under MAT is yet to be made.

12. Segment Reporting

A. Business Segments:

Based on the guiding principles given in AS-17 "Segment Reporting" issued by the Institute of Chartered Accountants of India, the Groups business segment include: Writing & Print- ing Paper, power generation and yarn division.

B. Geographical segments:

Since the Group activities/operations are primarily within the country and considering the nature of products it deals in, the risks and returns are same and as such there is only one geographical segment.

C. Segment Accounting Policies:

In addition to the significant accounting policies applicable to the business segements as set out in note no.2 of schedule no. 18 "Notes to the accounts", the accounting policies in relation to segment reporting are as under:

a) Segment Revenue and expenses:

Segment revenue and expenses are directly attributable to the segments.

b) Segment assets and 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 provi- sions which are reported as direct offsets in the balance sheet. Segment liabilities in- clude all operating liabilities and consist principally of creditors and accrued liabilities.

c) Inter segment revenue:

Inter segment revenue between operating segments are accounted for at market price. These transactions are eliminated in consolidation.

d) Information about business segments:

13. Outstanding balances in sundry debtors, creditors & security deposits are subject to confirmation.

14. Figures in brackets represent figures of previous year.

15. Previous Year's figures have been regrouped and/or re-arranged wherever considered necessary. Figures have been rounded off to the nearest rupee.