Note:

1. During the Financial Year 2016-17, the Company has changed the estimated useful life of certain Property Plant & Equipment, owing to which the Depreciation has reduced by Rs, 217.82, resulting in corresponding reduction in loss.

2. Addition to Property Plant & Equipment during the year includes borrowing cost capitalized Nil (31 March 2017 Nil) and (01 April 2016 Rs, 2.84)

3. For details of hypothecated Property, Plant & Equipment, refer to Note No. 13(a) & 17(a).

4. Land has been revalued during the year by an independent valuer. The carrying amount of asset would have been Rs, 921.87 had the asset been carried under the cost model.

i)- Pari passu first charge in favour of Kotak Mahindra Bank Ltd. and Inducing Bank Ltd. by way of hypothecation of Stocks, Book Debts and Movable Fixed Assets, both present and future, except assets specifically hypothecated.

ii)- Pari passu first charge in favour of Kotak Mahindra Bank Ltd. and Indusind Bank Ltd. on the immovable property situated at Plot No. 260, Sector 6, IMT Manesar, Gurgaon, Haryana.

iii)- Personal Guarantee of Mr. Anil Moolchandani, CMD and Mr. Jagdish Moolchandani ED.

28. CAPITAL AND OTHER COMMITMENT

Capital Commitment - Estimated amount of contracts remaining to be executed relating to Property, Plant and Equipment (net of advances) and not provided for X 7.65 Lacs (31 March 2017 Rs, 17.77 Lacs and 1 April 2016 X 13.00 Lacs)

Other Commitment - Estimated amount of contracts remaining to be executed on Other Commitment (net of advances) and not provided for

7 118.14 Lacs (31 March 2017 Rs, 78.22 Lacs and 1 April 2016 Rs, 36.33 Lacs)

*A demand of X 340.27 Lacs was raised against the company in block assessment, the Income Tax Appellate Tribunal (ITAT) partly allowed appeal of the company and demand was reduced to X 29.83 Lacs. The Income Tax Department has filed an appeal in Hon'ble High Court of Delhi against the order of the Hon'ble ITAT.

**A demand of 16.67 Lacs was raised against the company by Assistant Commissioner of Income Tax for the FY 2010-11 vide order dated 28.03.2018. Company has filed an appeal against the said order with Commissioner of Income Tax (Appeals).

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

NOTES TO FINANCIAL STATEMENTS AS AT 31 MARCH 2018 Market Risk

The company is exposed to foreign currency risk through its sales and purchases from overseas suppliers in US Dollar. The exchange rate between the rupee and US Dollar has changed substantially and may fluctuate substantially in the future. Consequently, the results of the Company's operations are adversely affected as the rupee appreciates / depreciates against US Dollar.

For each of the years ended 31 March 2018 and 31 March 2017, every percentage point depreciation/appreciation in the exchange rate between the Indian rupee and US Dollar, has affected the Company's incremental operating margins by approximately 0.04%. Sensitivity analysis is computed based on the changes in the income and expenses in foreign currency upon conversion into function currency, due to exchange rate fluctuations between the previous reporting year and the current reporting year.

Credit Risk

Credit risk refers to the risk of default on its obligation by the customers resulting in a financial loss. The maximum exposure to the credit risk at the reporting date is primarily from trade receivables amounting to Rs,2199.17 lacs, Rs, 1995.67 lacs and Rs, 2183.96 as of 31 March 2018, 31 March 2017 and 1 April 2016, respectively. Trade receivables are typically unsecured and are derived from revenue earned from customers primarily located in India. Credit risk has always been managed by the Company through sale contract with customers and continuously monitoring the ageing of outstanding balance of customers to which the Company grants credit in the normal course of business. The Company uses the expected credit loss model as at each year end to assess the impairment loss or gain. No single customer accounted for more than 10% of the accounts receivable as of 31 March 2018 , 31 March 2017 and 1 April 2016 , respectively and revenues for the year ended 31 March 2018 and 31 March 2017, respectively. There is no significant concentration of credit risk.

Credit Risk Exposure

The allowance for lifetime ECL on customer balances for the year ended 31 March 2018 was Rs,1.43 lacs. The reversal for life time ECL on customer balances for the year ended 31 March 2017 wasRs, 1.33 Lacs.

in Ian;

Liquidity Risk

The company's principal sources of liquidity are cash and cash equivalents and the cash flow that is generated from operations. The company has taken working capital loans from Banks for its Working Capital requirement. The company believes that the working capital is sufficient to mitigate its liquidity risk. Accordingly, no liquidity risk is perceived.

As of 31 March 2018, the Company had a working capital of Rs, 3,566 lacs including cash and cash equivalents of Rs, 78.41 lacs. As of 31 March 2017, the Company had a working capital ofRs, 3,727.81 lacs including cash and cash equivalents ofRs, 76.98 lacs.

* No specific assets are held for export.

(iii) Notes to Segment information

Segment Revenue and Expense

- Joint Revenues and Expenses are allocated to the business segments on a reasonable basis to the extent possible.

Segment Assets and Liabilities

- "Segment Assets include all Operating Assets used by Segment.

Segment Liabilities include all Operating Liabilities."

Capital Employed

- Due to the nature of business and common manufacturing facilities for various Segments, a reasonable allocation of Capital Employed to various Segments is currently not practicable.

NOTES TO FINANCIAL STATEMENTS AS AT 31 MARCH 2018

Mr. Jagdish Moolchandani resigned from the post of Chief Operating Officer w.e.f 09.08.2016 and he was appointed as a Director (Executive) of the Company w.e.f 10.08.2016.

** Mr. Prem Kumar Chadha, Independent Director of the Company deceased on 23.06.2017 and thus ceased to be a Director of the Company.

*** Mr. Deepak Thakkar resigned from the post of Non Executive Director of the Company w.e.f 05.01.2017

**** Mr. Vijayant Chhabra resigned from the post of Chief Executive Officer w.e.f 08.08.2016.

Mr. Seshan Ranganathan was appointed as Chief Execuitve Officer of the Company w.e.f 09.08.2016. Further he resigned from the post of Chief Executive Officer w.e.f 10.08.2017

***** Refer to Note 34 for information on transactions with post employment benefits plans mention above.

In order to achieve this overall objective, the Company's capital management, amongst other things, aims to ensure that it meets financial covenants attached to the total borrowings that define capital structure requirements. Breaches in meeting the financial covenants would permit the bank to immediately call loans and borrowings. There have been no breaches in the financial covenants of any borrowing in the current year.

No changes were made in the objectives, policies or processes for managing capital during the year ended 31 March 2018 and 31 March 2017.

1. OPERATING LEASE (INDAS-17)

The Company has entered into Operating Lease arrangements for premises. Lease payments recognized in the Statement of Profit and Loss under Non-cancelable Operating Leases in respect of these assets is Rs, 2535.50 Lacs (31 March 2017, Rs, 2884.01 Lacs), which includes contingent rents of Rs, 4.71 Lacs (31 March 2017, X 28.54 Lacs).

Leases payments received (or receivable) recognized in the statement of profit and loss X 56.25 Lacs (31 March 2017, X 67.18 Lacs), The Lease Agreements are further renewable after its expiry of initial term with a mutual consent, subject to revision in Lease rentals.