Restile Ceramics Ltd. இன் கணக்கு குறிப்புகள்

Mar 31, 2018

(a) The Company has elected the previous GAAP carrying amount (i.e. Gross cost less accumulated depreciation and impairment) of PPE as at April 1,2016 (transition date) as deemed cost and has accordingly disclosed the same as ‘Deemed Cost as on 1.4.2016’.

(b) The Company has made an assessment of the PPE considering product and technological obsolescence, process change, replacement and realisable value as at 1.4 2016 to bring down the carrying value less cost of disposal and recognise impairment, if any, through the Statement of Profit and Loss. Impairment recognised during the year is Rs. Nil (2017-Nil). Refer Note.9

Note:

1.1. Cost of materials consumed (including cost of purchased goods) during the year is Rs.57.68 lakhs (2016-17 Rs.31.64 lakhs)

1.2 The amount of write down of inventory recognised as expense during the year is Rs. Nil

1.3 I n respect of stores and spares and raw materials, the carrying amount representing cost of item purchased in earlier year is estimated to realise higher values and hence no adjustments have been made to their carrying values

1.4 Reversal of write down is recognised as a reduction in the amount of inventories recognised as an expense due to the increase in sale prices in the future periods Rs. Nil ( 2016-17 Rs.40.03 lakhs)

2.1 Rights, preferences and restrictions in respect of equity shares issued by the Company

The equity shareholders are entitled to receive dividends as and when declared, a right to vote in proportion to holding etc.,and their rights, preferences and restrictions are governed by / in terms of their issue under the the provisions of the Companies Act, 2013.

2.2 Shares issued in preceding 5 years

Aggregate number of shares allotted as fully paid up pursuant to contract without payment being received on cash, bonus shares and shares bought back in the 5 years immediately preceding the Balance Sheet date- Nil ( 2017-Nil)

Notes:

3.1 Capital Reduction Reserve of Rs.754.44 lakhs arose out of reduction in Equity Share Capital effected in Financial Year 2002-03 in terms of the order of the Board for Industrial and Financial Reconstruction (BIFR) dated December 18, 2002 represents a reserve created towards adjustment of possible impairment in value of Property, Plant and Equipment under the rehabilitation scheme sanctioned by BIFR in 2002.Independant Valuation carried out during the current year has indicated impairment in value of building as at April 1,2017 to the extent of Rs.376.20 lakhs only. Steps are being initiated to adjust the impairment in value against the reserve with the approval of National Company Law Tribunal.

3.2. Retained earnings represent surplus in the Statement of Changes in Equity column (B).

3.3. Capital Subsidy from the Government of India has been adjusted under retained earnings as per the provisions of Ind AS 101 ‘First time adoption of Ind AS’.

4.1 The Loans from Banks carried interest of Prime Lending Rate(PLR) plus a rate applicable to the Company based on norms, which varies depending upon “credit rating” by the lender and external agency.

4.1 Refer Note 36 for Related party transactions.

4.3 The company has not received any information from the “suppliers” regarding their status under Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any relating to the amount unpaid as at the end of the year/period together with interest paid/payable if any under the said Act have not been furnished.

Note 5 - Notes to Reconciliations

5.1 Under previous GAAP, actuarial gains and losses on employees defined benefit obligations were recognised in profit or loss. Under Ind AS, the actuarial gains and losses on re-measurement of net defined benefit obligations are recognised in other comprehensive income. This resulted in a reclassification between profit or loss and other comprehensive income.

6. Income taxes

There is no tax for the current year as per the Income Tax Act, 1961, considering the allowances/exemptions and consequently, the tax effect on the components in Other Comprehensive income is nil.

The tax rate used for the reconciliations above is the corporate tax rate of 26% (for the year 2017-18) and 33.06% (for the year 2016-17) payable by corporate entities in India on taxable profits under tax law in Indian jurisdiction.

Note: The unused tax losses will expire in various years

Considering the provisions of Ind AS12 ‘Income taxes’ and as a matter of prudence, accrual of deferred tax asset as at March 31, has been restricted to the amount of deferred tax liability.

7. Retirement benefit plans

Defined contribution plans

In accordance with Indian law, eligible employees of the Company are entitled to receive benefits in respect of provident fund, a defined contribution plan, in which both employees and the Company make monthly contributions at a specified percentage of the covered employees’ salary. The contributions, as specified under the law, are made to registered provident fund administered by the Government.

The total expense recognised in profit or loss of Rs.2.40 lakhs (for the year ended March 31, 2017: Rs.1.71 lakhs) represents contribution payable to these plans by the Company at rates specified in the rules of the plan.

Defined benefit plans

“The Company has an obligation towards gratuity, a defined benefit retirement plan covering eligible employees. The plan provides for a lump-sum payment to vested employees at retirement, death, while in employment or on termination of employment of an amount equivalent to 15 days salary payable for each completed year of service. Vesting occurs upon completion of five years of service. The Company accounts for the liability for gratuity benefits payable in the future based on an actuarial valuation. Company’s liability towards gratuity (unfunded), other retirement benefits and compensated absences are actuarially determined at each reporting date using the projected unit credit method.”

The 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.

The actual return on plan assets was Rs.0 Lakhs (2016-17: Rs.0 Lakhs).

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

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 previous year.

Weighted Average remaining duration of Defined benefit obligation as at March 31, 2018 is 4.64 ( as at March 31, 2017 : 4.91)

8. Segment Information

The Company’s Operating segment is identified based on the nature of services, risks, returns and the internal business reporting system. The Company is primarily engaged in vitrified tiles including Feldspar, a raw material used in vitrified tiles and accordingly there are no other reportable segment in terms of Ind AS 108 ‘Operating Segments’.

9. Information about major customers- Disclosure of amount of revenues from transactions with single customer amounting to 10% or more of the Company revenue.

Revenue from Customer 1- Rs. 36.96 Lakhs

Revenue from Customer 2- Rs. 18.33 Lakhs

Revenue from Customer 3- Rs. 8.76 Lakhs

10. Financial risk management objectives and policies

The Company’s principal financial liabilities, comprise of loans and borrowings, trade and other payables. The main purpose of these financial liabilities is to finance the Company’s operations and to provide guarantees to support its operations. The Company’s principal financial assets include trade and other receivables, and cash and cash equivalents that derive directly from its operations. The Company is exposed to market risk, credit risk,and liquidity risk.

The Company’s risk management is undertaken by the management under the guidelines and framework approved by the financial risk committee. Company’s financial risk activities are governed by appropriate policies and procedures and that financial risks are identified, measured and managed in accordance with the Company’s policies and risk objectives which is reviewed and adopted by The Board of Directors for managing each of these risks, which are summarised below.

A) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: interest rate risk, currency risk and other price risk. Financial instruments affected by market risk include Borrowings, Advances and deposits.

(i) Foreign Currency Risk

There are no foreign currency transactions during the year.

ii) Interest rate risk

There is no exposure to interest rate risk for the current and previous year as there are only short term borrowings. Borrowings from banks have been repaid before 31st March 2017 and subsequently no impact on interest rate risks.

iii) Other Price risk

There are no Equity price risk as there are no investments.

B) Credit Risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, resulting in a financial loss to the Company. Credit risk arises from outstanding trade receivables and from its financing activities, including deposits with banks and institutions.

For banks only high rated banks are accepted.

The Company operates predominantly on cash and carry basis except to certain customers which are on credit basis. The average credit period is in the range of upto 90 days. Customer credit risk is managed based on the Company’s established policy, procedures and control relating to customer credit risk management. Outstanding customer receivables are regularly monitored. The Company has customer base across diverse industries.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The Company makes an allowance for doubtful debts using expected credit loss model and on a case to case basis. To measure the expected credit losses , trade receivables have been grouped based on shared credit risk charateristics and the days past due. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

During the period the Company has made no write offs of trade receivables. It does not expect to receive future cash flows or recoveries from cash flows previously written off.

C) Liquidity risk

Liquidity risk refers to the risk that the Company cannot meet its financial obligations.The objective of liquidity risk management is to maintain sufficient liquidity and ensure that funds are available for use as per requirements. The Company has obtained fund and non-fund based working capital limits from banks. The Company invests its surplus funds in bank fixed deposit which carry minimal mark to market risks.

10.1 Fair Value Measurements

The management considered that the carrying amounts of financial asset and financial liabilities recognised in the financial statements approximate their fair values so no further disclosure is given.

10.2 Capital Management

For the purpose of the Company’s capital management, capital includes issued equity capital, share premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholder value.

The Company’s objective when managing capital are to ensure their ability to continue as going concern, so that they can leverage maximise returns for shareholders and benefits of other stakeholders; and to maintain an optimal capital structure to reduce cost of capital. Capital management and funding requirements is met through equity, internal accruals and long and short term debt instruments. The Company monitors capital management though gearing ratio which considers Debt (net of cash and cash equivalents) and equity.

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 interest-bearing loans and borrowings that define capital structure requirements where applicable.

11. Related party disclosure Holding Company

Solomed Capital Pte. Ltd

Companies under Common Control with transactions Sologuard Medical Devices (P) Limited

Athreya Finance Pvt Ltd Bell Granito Ceramica Limited

Key management personnel

Mr. Tribhuvan Simh Rathod - Managing Director

Mr.Nalinkant Amratlal Rathod - Chairman

Mr. Subba Rao Maddula - Chief Financial Officer

Ms. Rekha Singh - Compliance Officer and Company Secretary

Ms.Bharathi Rathod - Director

As per section 149(6) of the Companies Act 2013, Independent Directors are not considered as “Key Managerial Personnel”. Also, considering the roles and functions of Independent directors stated under Schedule IV of the Companies Act 2013, they have not been disclosed as “Key Managerial Personnel” for the purpose of disclosure requirements of Ind AS 24 “Related Parties”.

12. Disclosure as required under section 186(4) of the Companies Act, 2013 is not applicable as there are no loans, investments or guarantees.

A case has been filed against the Company in 1997 regarding alleged sale and lease back of certain fixed assets belonging to the company. The Company has disputed the veracity of the sale and lease back arrangement particularly since there was no evidence of appropriate approvals on behalf of the Company. The case is pending adjudication before the High Court and consequently, the said Company books assets continue in possession of and properly reflected in the account.

Note: Further cash outflows in respect of above are determinable only on receipt of judgement/ decisions pending with various forums/authorities.

13. Corporate Social Responsibility Obligation (CSR)

The Provisions of section 135 of the Companies Act 2013, (Corporate Social Responsibility) are not applicable to the company for current and previous financial year.

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Mar 31, 2016

1. The Equity Shareholders are entitled to receive dividends as and when declared, a right to vote in proportion to holding etc and their rights, preferences and restrictions are governed by terms of their issue and the provisions of the Companies Act, 2013.

2. Capital Reserve represents amounts transferred upon cessation of liability under One time Settlement in earlier years.

3. Capital Reduction Reserve arose out of reduction in Equity Share Capital effected in Financial Year 2002-03 in terms of the order of the Board for Industrial and Financial Reconstruction (BIFR) dated December 18,2002.

4. 537,524 Deep Discount Bonds of Rs.1000/- each were issued to Atreya Finance Pvt Ltd on March 30, 2009 at a discounted price of Rs.322. The said Bonds mature on March 31,2019 but both the parties have options to redeem/encash the same at an earlier date at predetermined discount rate or at a price to be agreed upon at the time of conversion after due written notice to the other party. The terms of these bonds were renegotiated with the incremental price payable from a negotiated date after March 31,2015 instead of April 1,2010 as initially agreed upon. Since the bonds are redeemable at the issue price upto the said negotiated date no discount was recognized in the financial statements up to that date. The Bonds have been repaid to bondholder in full during the current year.

5. The Deep Discount Bonds were to be secured by all movable and immovable assets of the Company other than current assets hypothecated to working capital bankers and 3rd floor premises in Varun Towers, Begumpet. The Charge was under creation for the year ending 31/03/2015. However, the Deep Discount Bonds have been fully redeemed / repaid in the current financial year, and hence no security needs to be created as at the end of the year in respect of the same.

6. In the light of the Company having an history of recent losses, accrual of deferred tax asset is restricted to timing differences, the reversal of which will result in sufficient income as laid down in para 18 of Accounting Standard 22 “Accounting for Taxes on Income”

7. Unsecured borrowing from bank represents temporary overdraft facility.

8. The Loans from Banks carry interest of Prime Lending Rate (PLR) plus a rate of interest applicable to the Company based on norms, which varies depending upon “credit rating” by the lender and external agency.

9. Procedures relating to winding up of Restile Marketing Private Ltd under Sec.560 of the Companies Act,1956 has been complied with. Accordingly consolidated financial statements and details under section 129 of the Act, are not furnished.

Note:

10. Inventories are valued on the basis of the governing principles of lower of cost and Net Realizable value.

11. In respect of stores and spares and raw materials, the carrying amount representing cost of item purchased in earlier year is estimated to realize higher values and hence no adjustments have been made to their carrying values.

12. The circularization of balances of customers/suppliers is in progress

13. The Company has not received any information from “Suppliers” regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures, if any relating to the amounts unpaid as at the end of the year together with interest paid/payable under the Act have not been furnished.

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

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Mar 31, 2015

1. The Equity Shareholders are entitled to receive dividends as and when declared, a right to vote in proportion to holding etc and their rights,preferences and restrictions are governed by terms of their issue and the provisions of the Companies Act,2013.

2. Capital Reserve represents amounts transferred upon cessation of liability under One time Settlement in earlier years.

3. Capital Reduction Reserve arose out of reduction in Equity Share Capital effected in Financial Year 2002-03 in terms of the order of the Board for Industrial and Financial Reconstruction (BIFR) dated December 18, 2002.

4. Deep Discount Bonds represents 5,37,521 bonds in the name of Sologuard medical Devices pvt ltd for a discounted price of Rs. 322/-. The said bonds mature on April 1,2025. Since the bonds are redeemable at the issue price up to April 1, 2015 no discount is recognized in the financial statements up to that date.

5. The Deep Discount Bonds are to be secured by all movable and immovable assets of the Company other than current assets hypothecated to working capital bankers and 3rd floor premises in Varun Towers, Begumpet. The Charge is under creation.

6. I n the light of the Company having an history of recent losses, accrual of deferred tax asset is restricted to timing differences, the reversal of which will result in sufficient income as laid down in para 18 of Accounting Standard 22 "Accounting for Taxes on Income"

7. The Loans from Banks carry interest of Prime Lending Rate(PLR) plus a rate of interest applicable to the Company based on norms,which varies depending upon "credit rating" by the lender and external agency.

8. Procedures relating to windingup of Restile Marketing Private Ltd under Sec.560 of the Companies Act,1956 has been complied with. Accordingly consolidated financial statements and details under section 129 of the Act, are not furnished.

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Mar 31, 2014

1. The Equity Shareholders are entitled to receive dividends as and when declared, a right to vote in pro- portion to holding etc and their rights, preferences and restrictions are governed by terms of their issue and the provisions of the Companies Act,1956.

2. Capital Reserve represents amounts transferred upon cessation of liability under one time settlement in earlier years.

3 Capital Reduction Reserve arose out of reduction in Equity Share Capital effected in Financial Year 2002-03 in terms of the order of the Board for Industrial and Financial Reconstruction (BIFR) dated Decem-ber 18,2002.

4. : 537,527 Deep Discount Bonds of Rs.1000/- each were issued to Atreya Finance Pvt Ltd on March 30, 2009 at a discounted price of Rs.322. The said Bonds mature on March 31,2019 but both the parties have options to redeem/encash the same at an earlier date at predetermined discount rate or at a price to be agreed upon at the time of conversion after due written notice to the other party. Subsequent to the end of the previous year, the terms of these bonds have been renegotiated with the incremental price payable from a negotiated date after March 31,2015 instead of April 1,2010 as initially agreed upon. Since the bonds are redeemable at the issue price up to the said negotiated date no discount is recognised in the financial statements up to that date.

5. : The Deep Discount Bonds are to be secured by all movable and immovable assets of the Company other than current assets hypothecated to working capital bankers and 3rd floor premises in Varun Towers, Begumpet. The charge is under creation.

6. In the light of the Company having an history of recent losses, accrual of deferred tax asset is restricted to timing differences on account of unabsorbed depreciation, the reversal of which will result in sufficient income as laid down in para 18 of Accounting Standard 22 "Accounting for Taxes on Income.

7 Unsecured borrowing from bank represents temporary overdraft facility.

8. The Loans from Banks carry interest of Prime Lending Rate(PLR) plus a rate of interest applicable to the Company based norms,which varies depending upon "credit rating" by the lender and external agency.

9. Procedures relating to windingup of Restile Marketing Private Ltd under Sec.560 of the Companies Act,1956 has been complied with Accordingly consolidated financial statements and details under section 212 of the Act, are not furnished.

* Net of Rs.33.28 Lakhs adjusted against Provision made thereof

10. Salaries, Wages and Bonus is net of recoupment of Expenses of Rs.NIL (2013 Rs.66.89 Lakhs) from Bell Granito Ceramica Ltd (BGCL) under an arrangement for manufacture and sale of goods by BGCL under the Company''s brand.

11. Contingent liabilities

31.03.2014 31.03.2013

Rs. In Rs. In Lakhs Lakhs

a) Guarantees - - b) Claims (net) against the company not acknowledged as - debts - Sales tax Nil 197.13

c) A case has been filed against the Company in 1997 regarding alleged sale and lease back of certain fixed assets belonging to the company. The Company has disputed the veracity of the sale and lease back arrangement particularly since there was no evidence of appropriate approvals on behalf of the Company. The case is pending adjudication before the High Court and consequently, the said Company books assets continue in possession of and properly reflected in the account.The outflow in respect of the above is not practicable to ascertain in view of the uncertainities involved.

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Mar 31, 2013

1.01 Segment Information

The company is principally engaged in a single business sengment viz.virtrified tiles and operates in one geographical segment as per Accounting Standarad-17 on''Segment Reporting''

1.02 Related party disclosure

a) Associate Companies

1 Sologuard Medical Devices (P) Limited

2. Atreya Fina.nce Pvt Ltd

3. Bell Granito Ceramica Limited

b) Key Management Personnel

1. Mr. Nalinkant Amratlal Rathod

2. Mr. tribhuvan Simh Rathod

c) Material Transactions with related parties

(i) Associate Companies I Bell Granito Ceramica Ltd a) Purchase of Finished Goods

1.03 The circularisation of balances of customers /suppliers is ih progress

1.04 The.Company has not received any information from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act,2006 and hence disclosures, if any relating to the amounts unpaid as at the end of the year together with interest paid/payable under the Act have not been furnished.

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

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Mar 31, 2012

NOTE : 1 SHARE CAPITAL

1.1: The Equity Shareholders are entitled to receive dividends as and when declared, a right to vote in proportion to holding etc. and their rights, preferences and restrictions are governed by terms of their issue and the provisions of the Companies Act, 1956.

NOTE 2: RESERVES AND SURPLUS

2.1 : Capital Reserve represents amounts transferred upon cessation of liability under One time Settlement in earlier years.

2.2 : Capital Reduction Reserve arose out of reduction in Equity Share Capital effected in Financial Year 2002-03 in terms of the order of the Board for Industrial and Financial Reconstruction (BIFR) dated December 18,2002.

NOTE 3: LONG TERM BORROWINGS

3.1 : 537,527 Deep Discount Bonds of Rs. 1000/- each were issued to Atreya Finance Pvt. Ltd on March 30, 2009 at a discounted price of Rs. 322. The said Bonds mature on March 31,2019 but both the parties have options to redeem/encash the same at an earlier date at predetermined discount rate or at a price to be agreed upon at the time of conversion after due written notice to the other party. Subsequent to the end of the previous year, the terms of these bonds have been renegotiated with the incremental price payable from April 1, 2013 instead of April 1,2010 as initially agreed upon. Since the bonds are redeemable at the issue price upto March 31,2012 no discount is recognised in the financial statements up to that date.

3.2 : The Deep Discount Bonds are secured by all movable and immovable assets of the Company other than current assets hypothecated to working capital bankers and 3rd floor premises in Varun Towers, Begumpet. The Charge is under creation.

NOTE 4 : DEFERRED TAX LIABILITIES (NET)

4.1 : In the light of the Company having an history of recent losses, accrual of deferred tax asset is restricted to timing differences, the reversal of which will result in sufficient income as laid down in para 18 of Accounting Standard 22 "Accounting for Taxes on Income"

NOTE: 5SHORT TERM BORROWINGS

5.1 : Unsecured borrowing from bank represents temporary overdraft facility.

5.2 : The above Loans are repayable on demand and carry interest of Prime Lending Rate(PLR) plus a rate of interest applicable to the company based on norms, which varies, depending upon "credit rating" by the lender and external agency.

NOTE 6 : NON-CURRENT INVESTMENT

6.1 : Restile Marketing Private Limited is in the process of being wound up under section 560 of the Companies Act,1956 (the Act.). Accordingly consolidated accounts and details under Section.212 of the Act, are not furnished.

NOTE 7 : CASH AND CASH EQUIVALENTS

7.1 : Balances with banks in deposit accounts comprises margin monies which have an original maturity of less than twelve months.

NOTE 8 : EMPLOYEE BENEFITS EXPENSE

8.1 : Salaries,Wages and Bonus is net of recoupment of Expenses of Rs. 139 54 Lakhs (2011 Rs. 150.58 Lakhs) from Bell Granito Ceramica Ltd (BGCL) under an arrangement for manufacture and sale of goods by BGCL under the Company's brand.

NOTE 9 : OTHER EXPENSES

9.1 PAYMENTS TO THE AUDITORS COMPRISES :

9.2 : Bad Trade and other receivables provided/written off in the earlier year Rs. 71.30 Lakhs is net of provision written back Rs. 52.03 Lakhs.

9.3 : Contingent liabilities 31.03.2012 31.03.2011 Rs. In Lakhs Rs. In Lakhs

a) Guarantees 42.60 43.61

b) Letters of Credit - 59.47

c) Claims (net) against the company not acknowledged as debts

- Sales tax 116.53 85.61

d) The Company has received notices subsequent to the end of the year demanding interialia that Cenvat Credit of Rs. 110 lakhs availed in earlier years on Capital Goods be reversed following shifting of the said machinery to the Company's unit being set up at Vadodara, Gujarat. Interest on the same has also been demanded. Even upon such reversal, the Company would be entitled to avail credit for the same at the Vadodara Unit and as such there may not be any impact on the Profit and Loss Statement. On the basis of legal advice, the Company will be contesting the said demand in due course.

e) A case has been filed against the Company in 1997 regarding alleged sale and lease back of certain fixed assets belonging to the company. The Company has disputed the veracity of the sale and lease back arrangement particularly since there was no evidence of appropriate approvals on behalf of the Company. The case is pending adjudication before the High Court and consequently, the said assets continue in possession of and properly reflected in the Company's books of account. The outflow in respect of the above is not practicable to ascertain in view of the uncertainties involved.



Note 10 : Additional information to the financial statements

10.1 : Exceptional items comprise sales tax liabilities arising upon completion during the year of assessments for various prior years and excise duty/service tax demands for earlier periods.

10.2 : Employee benefits

b) During the year the company has recognised the following amounts in the Profit and Loss Account in Note 24 Salaries and wages includes short term compensated absences Rs. 13.49 lakhs (2011: Rs. 13.49 Lakhs)

Contribution to provident, and other funds includes Provident fund and family pension Rs. 23.78 lakhs (2011: Rs. 20.77 lakhs), and contribution to employee state insurance plan Rs. 8.31 lakhs (2011: Rs. 8.32 lakhs).

c) The company has adopted Revised Accounting Standard 15 and comparatives have been provided for the Four Years for which data is available.

10.3 : Segment information

The company is principally engaged in a single business segment viz., Vitrified tiles and operates in one geographical segment as per Accounting Standard 17 on 'Segment Reporting'.

10.4 : Related party disclosure

a) Related Parties where control exists: Restile Marketing (P) Ltd.,

b) Associate Companies

Elister IT Solutions India (P) Limited

Sologuard Medical Devices (P) Limited

Athreya Finance Pvt. Ltd.

Bell Granito Ceramica Limited (w.e.f. 1.4.10)

c) Key Management Personnel, their relatives and their enterprises where transactions have taken place.

Mr. Nalin Amratlal Rathod

Mr. Tribhuvan Simh Rathod

10.5 : The company had in the earlier year. embarked on a exercise to review debit/credit balances of customers/ suppliers/others as appearing in the books of account and reconcile them with parties. This Review continued during the year and has revealed

i) Old debts not legally enforceable in view of time that has lapsed and debts from customers no longer in business.

ii) Debts not realisable in view of counter claims for discounts/ quality issues etc.

iii) Credit balances no longer payable due to one time settlement of dues and the period that has lapsed. Accordingly necessary accounting action to write off/write back their balances have been effected in the financial statements The above exercise would be completed with circularisation of balances of customers/suppliers.

10.6 : Amounts due to Small Scale Industrial undertakings are not ascertainable, (ii) The Company has not received any information from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any relating to the amounts unpaid as at the end of the year together with interest paid/payable under the said Act have not been furnished.

10.7 : The Revised Schedule VI has become effective from 1 April, 2011for the preparation of financial statements. Accordingly, previous year's figures have been regrouped/ reclassified/amended wherever necessary to correspond with the current year's classification.

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Mar 31, 2010

1. There were no remittances of dividend in foreign currencies to non-resident shareholders *For part of the year

Perquisites include amounts evaluated as per Income tax Rules in respect of certain items.

Remuneration to Managing Director is from April 1,2009, the date of his appointment. Remuneration to Joint Managing director is up to 30.06.2008 while the remuneration to the Executive Director is up to July 11,2009.

2 Contingent liabilities

a) Guarantees 43.61 41.00

b) Letters of Credit 128.37 172.07

c) Claims (net) against the company not acknowledged as debts - Sales tax 72.94 497.87 - Others 1.64 -

d) Refer Note 13.1

(i) in the light ot the Company having an nistory ot recent losses, accrual of deterred tax asset is restricted to timing differences,the reversal of which will result in sufficient income as laid down in para 18 of Accounting Standard 22 "Accounting for Taxes on Income".

(ii) Considering the uncertainity in realising the business losses brought forward under tax laws, deferred tax asset estimated at Rs. 749.08 lakhs has not been accrued.

3 Segment information

The company is principally engaged in a single business segment viz., Vitrified tiles and operates in one geographical segment as per Accounting Standard 17 on Segment Reporting1.

4 Related party disclosure

a) Related Parties where control exists:

Restile Marketing (P) Ltd.,

b) Associate Companies

Elister IT Solutions India (P) Limited Sologuard Medical Devices (P) Limited Athreya Finance Pvt Ltd

c) Key Management Personnel, their relatives and their enterprises where transactions have taken place.

Mr. Nalin A. Rathod Mr. Tribhuvan Rathod Mr. G.V. Ramana Murthy* Mr. R.S. Raghavan*

*For Part oi the year

b) During the year the company has recognised the following amounts in the Profit and Loss Account in Schedule : 14

Salaries and wages includes compensated absences Rs.(6.24) lakhs (2009: Rs.15.73 Lakhs) and gratuity Rs.15.39 lakhs (2009: Rs.10.23 lakhs) Contribution to provident and other funds includes Provident fund and family pension Rs.23.07 lakhs (2009: Rs.33.55 lakhs), and contribution to employee state insurance plan Rs.6.49 lakhs (2009: Rs.6.73 lakhs)

c) The company has adopted Revised Accounting Standard 15 and comparatives have been provided for the Two Years for which data is available.

5. Towards the end of the year, the Company has embarked on an exercise to reconcile the balances disclosed as per books as dues to/from creditors/debtors and other parties.To the extent of balances that have been reconciled, corrective accounting action has been initiated wherever necessary and the results of the year incorporate the same. This exercise is in progress and will be completed during the ensuing year.

6 (i) Amounts due to Small Scale Industrial undertakings are not ascertainable,

(ii) The Company has not received

any information from "Suppliers" regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any relating to the amounts unpaid as at the end of the year together with interest paid/ payable under the said Act have not been furnished.

7 The Company has amortised the following expenditure during the year.Capital Issue expenses Rs.23.46 lakhs (2009:Rs.23.46 lakhs) ,Product Development expenses Rs. 82.68 Lakhs (2009 Rs.82.68 Lakhs) and Brand building expenses Rs.13.14 Lakhs (2009 Rs.13.14 Lakhs).

8 The Company has during the year changed its accounting policy to recognise the liability towards excise duty on finished goods lying uncleared at the factory as at the end of the year and consequently,consider the same in valuation valuation of the said stock. This change is pursuant to the requirements of Accounting Standard-2 "Valuation of Inventories".There is no impact on the results of the year due to the said change.

9. A case has been filed against the Company in 1997 regarding alleged sale and lease back of certain fixed assets belonging to the company. The Company has disputed the veracity of the sale and lease back arrangement particularly since there was no evidence of appropriate approvals on behalf of the Company. The case is pending adjudication before the High Court and consequently, the said assets continue in possession of and properly reflected in the Companys books of account.

10. Fixed assets include cost of vehicle Rs. 16.44 Lakhs.(2009 Rs.16.44) standing in the name of ersthwhile Joint Managing Director.

10.1 Other Liabilities include temporary overdraft from Bank Rs.22.11 lakhs(2009 Rs.Nil)

10.2 In Schedule 14, (i) Consumption of Raw Materials is net of Rs.171.37 Lacs (2009 Rs.Nil) capitalised, incurred during rial run up to March 1,2009 and sale of materials Rs.238.52 Lacs (2009 Rs.Nil).

(ii) spares and consumables is net of sale of Rs.118.88 Lacs (2009 Rs.Nil) and (iii) Packing material is net of (2009 Rs.Nil).

11 Secured Loan: 537527 Deep Discount Bonds of Rs.1000 each were issued to Athreya Finance private at a discounted price of Rs.344. The said bonds mature on April 1,2019 but both parties have options at an earlier date at predetermined interest rate or at a price to be agreed upon at the time of price prevalent as at that date for the said bonds.

12 Figures for the previous year have been regrouped/amended wherever ncessary.