Notes to Accounts of Sundaram Brake Lining Ltd.

Mar 31, 2025

a) The Company has issued only one class of shares referred to as equity shares having a par value of '' 10/-.

b) Each holder of equity shares is entitled to one vote per share.

c) The Company declares and pays dividends in Indian Rupees.

d) Except interim dividend which is declared and paid based on the decision of the Board of Directors, all other dividends are proposed by the Board of Directors and paid on approval of the shareholders at the Annual General Meeting.

e) The Board of Directors of the Company recommended a dividend of '' 1.50/- per share (15%) on the face value of '' 10- per share for the financial year 2024-25, subject to the approval of the shareholders, at the ensuing Annual General Meeting.

f) 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.

g) During the last five years immediately preceding the date of the Balance Sheet, the Company has not issued any shares as bonus shares or without payment being received in cash or has bought back any shares.

h) During the financial year Nil (Previous Year Nil) shares pertaining to the share holders, whose dividend were unclaimed for seven years, were transferred to Investor Education and Protection Fund (IEPF) Account.

a) Term loans were applied for the purpose they were obtained. Further, short term loans availed have not been utilised for long term purposes by the Company.

b) Quarterly returns or statements of current assets filed by the Company for the sanction of working capital loans with banks or financial institutions are not materially different with that of books of accounts.

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

33 SEGMENT REPORTING:

The Primary Operation of the Company relate only to one segment viz., friction materials.

Geographical Segements:

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets i.e. India and Outside India. For customers located outside India, the Company has assessed that they carry same risk and rewards. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments. The geographical segments considered for disclosure are as follows:

- Sales within India include Sales to customers located within India.

- Sales outside India include sales to customers located outside India

35 EMPLOYEE BENEFITS Defined Contribution Plans

(i) Superannuation

Eligible employees receive pension from Life Insurance Corporation of India, which is a defined contribution plan. Monthly Pension is paid after retirement, death, incapacitation or termination of employment for the life time and amount lying credit after the death is paid to the nominee. Company make every year contributions to Life Insurance Corporation of India (Group Superannuation policy) at specified percentage of the covered employee''s salary.

The Company recognized '' 24.78 lakhs (Previous year '' 23.31 Lakhs) for superannuation contribution in the profit and loss account

(ii) In respect of the State Plans (Employee State Insurance), an amount of '' 24.78 Lakhs (Previous year : '' 29.95 Lakhs) has been recognized as expenditure in the Statement of Profit and Loss.

(ii) Provident fund

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the Company make monthly contributions to a government administered pension fund on behalf of its employees.

The Company recognized '' 220.86 Lakhs ( Previous Year '' 204.04 Lakhs ) for provident fund contribution in the Statement of profit and loss.

Defined Benefit Plans (i) Gratuity

The Company provides for gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date, based upon which, the Company contributes all the ascertained liabilities to Life Insurance Corporation of India (Group gratuity policy).

(iii) Leave encashment

The employees of the Company are entitled to compensate absence. The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence. The company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that ha accumulated at the balance sheet date based on the Actuarial certificate.

Particulars	For the year ended	'' Lakhs For the year ended
	31.03.2025	31.03.2024
37 CONTINGENT LIABILITIES - NOT PROBABLE AND THEREFORE NOT PROVIDED FOR A. Claims disputed by the company a) Claims against the company not acknowledged as debt 1) Sales Tax under dispute	23.74	23.74
2) Excise Duty (Disallowance of Cenvat credit) #	6.23	6.23
3) Liability towards Labour cases	162.74	7.30
# '' 6.23 lakhs was paid as deposit towards disallowance of cenvat credit. 4) Income Tax under dispute i) The Company had received Assessment order for Assessment year 2018-19 making disallowance of '' 3.79 Lakhs and addition of '' 73.39 lakhs towards reduction in profit because of application of Income Computation & Disclosuer Standards, thereby reducing the loss carried forward. The Company has filed an appeal with the first appellate authority and the same is pending for decision. ii) The Company had received Assessment order for Assessment year 2017-18 making disallowance of '' 0.02 Lakh and addition of '' 37.87 lakhs towards interest under section 244A, thereby reducing the loss carried forward. The Company has filed an appeal with the first appellate authority and the same is pending for decision. iii) The Company had filed appeals with the first appellate authority against the Assessment Orders received for Assessment Year 2013-14 and 2014-15 making disallowance of expenditure for '' 143.65 lakhs and '' 85.29 lakhs respectively, there by reducing the loss carried forward which are pending for decision. b) Guarantees 1) Bank Guarantee		6.75

41 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

a. Capital Management

The objective of the Company''s capital management structure is to ensure sufficient liquidity to support its business and provide adequate return to shareholders. Management monitors the long term cash flow requirements including externally imposed capital requirements of the business in order to assess the requirement for changes to the capital structure to meet the said objective. As part of this monitoring, the management considers the cost of capital and the risks associated with each class of capital and makes adjustments to the capital structure, where appropriate, in light of changes in economic conditions and the risk characteristics of the underlying assets. The funding requirement is met through a combination of equity, internal accruals, borrowings or undertake other restructuring activities as appropriate.

No changes were made in the objectives, policies or processes during the year ended 31 March 2025.

b. Financial Risk Management Framework

Company''s principal financial liabilities comprise borrowings, trade payables and Other financial liabilities. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Investments, Trade receivables, loans, cash and bank balances and other financial assets.

Risk Exposures and Responses

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews policies for managing each of these risks, which are summarised below:

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk i.e. interest rate risk, currency risk, and Commodity risk.

Interest rate risk

The company obtains financing through borrowings. The Company''s policy is to obtain the most favourable interest rates available.

The Company''s exposure to interest rate risk relates primarily to interest bearing financial liabilities. Interest rate risk is managed by the company on an on-going basis with the primary objective of limiting the extent to which interest expense could be affected by an adverse movement in interest rates.

Sensitivity Analysis

An increase/decrease of 100 basis points in interest rate at the end of the reporting period for the variable financial instruments would (decrease)/increase profit before tax for the year by the amounts shown below. This

anak/QiQ accnmpc all nthpr variahlpc rpmain rnnctant

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk arising from transactions i.e. imports of materials, recognised assets and liabilities denominated in a currency that is not the company''s functional currency.

The company has commodity price risk, primarily related to the purchases of Steel and Aluminium. However, the company do not bear significant exposure to earnings risk, as such changes are included in the rate-recovery mechanisms with the customers. ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily for trade and other receivables), including short-term deposits with banks , and other financial assets.

Credit risk management

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is mainly exposed to credit risk from credit sales.

The company is exposed to credit risk in respect of these balances such that, if one or more customers encounter financial difficulties, this could materially and adversely affect the company''s financial results. The company attempts to mitigate credit risk by assessing the creditworthiness of customers and closely monitoring payment history. The Company had taken credit risk insurance for the export receivable.

There have been no material impairments to trade or other receivables in the two years included within these financial statements and no indication of enhanced customer credit risk.

Credit risk on cash and cash equivalents is considered to be minimal as the counterparties are all substantial banks with high credit ratings.

The Directors are unaware of any factors affecting the recoverability of outstanding balances at 31st March 2025, and consequently no material provisions are required for bad and doubtful debts.

Other financial assets comprising of security deposits, claims receivables, interest receivable and advance recoverable primarily consists of deposits with TNEB for obtaining Electricity connections, rental deposits given for lease of premises amongst others. The Company does not expect any loss from non-performance by these counter-parties.

Liquidity risk arises from the company''s management of working capital and the continued availability of its other funding facilities. It is the risk that the company will encounter difficulty in meeting its financial obligations as they fall due. The company actively manages its cash generation and maintains sufficient cash holdings to cover its immediate obligations.

42 FAIR VALUE MEASUREMENTS

i. Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data.

ii. Financial assets measured at fair value through Other Comprehensive Income (FVTOCI)

a. Financial assets measured at fair value - recurring fair value measurements

44 OTHER STATUTORY INFORMATION

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

(ii) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

(iii) The Company has not advanced or loaned or invested funds to any persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

1) 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

2) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(iv) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) 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

b) provide any guarantee, security or the like on behalf of the Ultimate Benefi ciaries.

(v) The Company does not have any 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 or survey or any other relevant provisions of the Income Tax Act, 1961).

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

(vii) Relationship with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 are as follows:-

(viii) The Company has not entered into any scheme of arrangement which has an accounting impact on current or previous financial year.

45 Previous year''s figures have been regrouped / reclassified wherever necessary, to conform to current period''s classification.

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Mar 31, 2024

a) The Company has issued only one class of shares referred to as equity shares having a par value of '' 10/-.

b) Each holder of equity shares is entitled to one vote per share.

c) The Company declares and pays dividends in Indian Rupees.

d) Except interim dividend which is declared and paid based on the decision of the Board of Directors, all other dividends are proposed by the Board of Directors and paid on approval of the shareholders at the Annual General Meeting.

e) The Board of Directors of the Company recommended a dividend of '' 2/- per share (20%) on the face value of '' 10- per share for the financial year 2023-24, subject to the approval of the shareholders, at the ensuing Annual General Meeting.

f) 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.

g) During the last five years immediately preceding the date of the Balance Sheet, the Company has not issued any shares as bonus shares or without payment being received in cash or has bought back any shares

h) During the financial year Nil (Previous Year Nil) shares pertaining to the share holders, whose dividend were unclaimed for seven years, were transferred to Investor Education and Protection Fund (IEPF) Account.

Respective shareholder agreement

i) Following are the shareholders holding more than 5% equity shares and the number of equity shares held by each of them:

a) Term loans were applied for the purpose they were obtained. Further, short term loans availed have not been utilised for long term purposes by the Company.

b) Quarterly returns or statements of current assets filed by the Company for the sanction of working capital loans with banks or financial institutions are not materially different with that of books of accounts.

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

33 SEGMENT REPORTING:

The Primary Operation of the Company relate only to one segment viz., friction materials.

Geographical Segements:

The analysis of geographical segment is based on the geographical location of the customers. The Company operates primarily in India and has presence in international markets as well. Its business is accordingly aligned geographically, catering to two markets i.e. India and Outside India. For customers located outside India, the Company has assessed that they carry same risk and rewards. The Company has considered domestic and exports markets as geographical segments and accordingly disclosed these as separate segments. The geographical segments considered for disclosure are as follows:

- Sales within India include Sales to customers located within India.

- Sales outside India include sales to customers located outside India

35 EMPLOYEE BENEFITS Defined Contribution Plans

(i) Superannuation

Eligible employees receive pension from Life Insurance Corporation of India, which is a defined contribution plan. Monthly Pension is paid after retirement, death, incapacitation or termination of employment for the life time and amount lying credit after the death is paid to the nominee. Company make every year contributions to Life Insurance Corporation of India (Group Superannuation policy) at specified percentage of the covered employee''s salary.

The Company recognized '' 23.31 lakhs (Previous year '' 15.52 Lakhs) for superannuation contribution in the profit and loss account

(ii) In respect of the State Plans (Employee State Insurance), an amount of '' 29.25 Lakhs (Previous year : '' 34.47 Lakhs) has been recognized as expenditure in the Statement of Profit and Loss.

(ii) Provident fund

Eligible employees receive benefits from a provident fund, which is a defined contribution plan. Aggregate contributions along with interest thereon are paid at retirement, death, incapacitation or termination of employment. Both the employees and the Company make monthly contributions to a government administered pension fund on behalf of its employees.

The Company recognized '' 204.04 Lakhs ( Previous Year '' 198.23 Lakhs ) for provident fund contribution in the Statement of profit and loss.

Defined Benefit Plans

The Company provides for gratuity, a defined benefit retirement plan (the "Gratuity Plan") covering eligible employees. The Gratuity Plan provides a lump sum payment to vested employees at retirement, death, incapacitation or termination of employment, of an amount based on the respective employee''s salary and the tenure of employment. Vesting occurs upon completion of five years of service. Liabilities with regard to the Gratuity Plan are determined by actuarial valuation as of the balance sheet date, based upon which, the Company contributes all the ascertained liabilities to Life Insurance Corporation of India (Group gratuity policy).

The employees of the Company are entitled to compensate absence. The employees can carry forward a portion of the unutilized accrued compensated absence and utilize it in future periods or receive cash compensation at retirement or termination of employment for the unutilized accrued compensated absence. The company records an obligation for compensated absences in the period in which the employee renders the services that increase this entitlement. The Company measures the expected cost of compensated absence as the additional amount that the Company expects to pay as a result of the unused entitlement that has accumulated at the balance sheet date based on the Actuarial certificate.

Particulars	For the year ended	'' Lakhs For the year ended
	31.03.2024	31.03.2023
37 CONTINGENT LIABILITIES - NOT PROBABLE AND THEREFORE NOT PROVIDED FOR A. Claims disputed by the company a) Claims against the company not acknowledged as debt 1) Sales Tax under dispute	23.74	23.74
2) Excise Duty (Disallowance of Cenvat credit) #	6.23	6.23
3) Liability towards Labour cases	7.30	7.30
# '' 6.23 lakhs was paid as deposit towards disallowance of cenvat credit. 4) Income Tax under dispute The Company had received Assessment order for Assessment year 2018-19 making disallowance of '' 3.79 Lakhs and addition of '' 73.39 lakhs towards reduction in profit because of application of Income Computation & Disclosuer Standards, thereby reducing the loss carried forward. The Company has filed an appeal with the first appellate authority and the same is pending for decision. The Company had during FY 2019-20, received Assessment order for Assessment year 2017-18 making disallowance of '' 0.02 Lakh and addition of '' 37.87 lakhs towards interest under section 244A, thereby reducing the loss carried forward. The Company has filed an appeal with the first appellate authority and the same is pending for decision. The Company had filed appeals with the first appellate authority against the Assessment Orders received for Assessment Year 2013-14 and 2014-15 making disallowance of expenditure for '' 143.65 lakhs and '' 85.29 lakhs respectively, there by reducing the loss carried forward which are pending for decision. The Company had received Assessment Order with Demand of '' 6.12 Lakhs during the previous year for the excess refund issued. The Company has filed rectification application seeking refund of '' 0.04 Lakhs on the ground that due to wrong computation of refund already issued by the Department, Demand Order had been issued. b) Guarantees 1) Bank Guarantee	6.75	12.16

41 FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

a. Capital Management

The objective of the Company''s capital management structure is to ensure sufficient liquidity to support its business and provide adequate return to shareholders. Management monitors the long term cash flow requirements including externally imposed capital requirements of the business in order to assess the requirement for changes to the capital structure to meet the said objective. As part of this monitoring, the management considers the cost of capital and the risks associated with each class of capital and makes adjustments to the capital structure, where appropriate, in light of changes in economic conditions and the risk characteristics of the underlying assets. The funding requirement is met through a combination of equity, internal accruals, borrowings or undertake other restructuring activities as appropriate.

No changes were made in the objectives, policies or processes during the year ended 31 March 2024.

b. Financial Risk Management Framework

Company''s principal financial liabilities comprise borrowings, trade payables and Other financial liabilities. The main purpose of these financial liabilities is to finance the Company''s operations. The Company''s principal financial assets include Investments, Trade receivables, loans, cash and bank balances and other financial assets.

Risk Exposures and Responses

The Company is exposed to market risk, credit risk and liquidity risk. The Board of Directors reviews policies for managing each of these risks, which are summarised below:

i) Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market prices. Market prices comprise three types of risk i.e. interest rate risk, currency risk, and Commodity risk.

Interest rate risk

The company obtains financing through borrowings. The Company''s policy is to obtain the most favourable interest rates available.

The Company''s exposure to interest rate risk relates primarily to interest bearing financial liabilities. Interest rate risk is managed by the company on an on-going basis with the primary objective of limiting the extent to which interest expense could be affected by an adverse movement in interest rates.

Sensitivity Analysis

An increase/decrease of 100 basis points in interest rate at the end of the reporting period for the variable financial instruments would (decrease)/increase profit before tax for the year by the amounts shown below. This analysis assumes all other variables remain constant.

Foreign currency risk

Foreign currency risk is the risk that the fair value of future cash flows of financial instruments will fluctuate because of changes in foreign exchange rates. The Company is exposed to foreign exchange risk arising from transactions i.e. imports of materials, recognised assets and liabilities denominated in a currency that is not the company''s functional currency.

Commodity Risk

The company has commodity price risk, primarily related to the purchases of Steel and Aluminium. However, the company do not bear significant exposure to earnings risk, as such changes are included in the rate-recovery mechanisms with the customers. ii. Credit risk

Credit risk is the risk that counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The company is exposed to credit risk from its operating activities (primarily for trade and other receivables), including short-term deposits with banks , and other financial assets.

Credit risk management

Credit risk is the risk of financial loss to the company if a customer or counterparty to a financial instrument fails to meet its contractual obligations. The company is mainly exposed to credit risk from credit sales.

The company is exposed to credit risk in respect of these balances such that, if one or more customers encounter financial difficulties, this could materially and adversely affect the company''s financial results. The company attempts to mitigate credit risk by assessing the creditworthiness of customers and closely monitoring payment history. The Company had taken credit risk insurance for the export receivable.

There have been no material impairments to trade or other receivables in the two years included within these financial statements and no indication of enhanced customer credit risk.

Credit risk on cash and cash equivalents is considered to be minimal as the counterparties are all substantial banks with high credit ratings.

The Directors are unaware of any factors affecting the recoverability of outstanding balances at 31st March 2023, and consequently no material provisions are required for bad and doubtful debts.

iii. Liquidity risk

Liquidity risk arises from the company''s management of working capital and the continued availability of its other funding facilities. It is the risk that the company will encounter difficulty in meeting its financial obligations as they fall due. The company actively manages its cash generation and maintains sufficient cash holdings to cover its immediate obligations.

42 FAIR VALUE MEASUREMENTS

i. Fair value hierarchy

Financial assets and financial liabilities measured at fair value in the statement of financial position are grouped into three Levels of a fair value hierarchy. The three Levels are defined based on the observability of significant inputs to the measurement, as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (prices) or indirectly (derived from prices).

Level 3: Inputs for the asset or liability that are not based on observable market data.

ii. Financial assets measured at fair value through Other Comprehensive Income (FVTOCI)

a. Financial assets measured at fair value - recurring fair value measurements

The fair value of unquoted equity Shares is determined using Level 3 inputs like Discounted cash flows, Market multiple method, Option pricing model etc.

There are no transfer between levels during the periods. b. Financial instruments by category

For amortised cost instruments, carrying value represents the best estimate of fair value.

44 OTHER STATUTORY INFORMATION

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

(ii) The Company has not traded or invested in Crypto currency or virtual currency during the financial year.

(iii) The Company has not advanced or loaned or invested funds to any persons or entities, including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

1) 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

2) provide any guarantee, security or the like on behalf of the Ultimate Beneficiaries

(iv) The Company has not received any fund from any persons or entities, including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

a) 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

b) provide any guarantee, security or the like on behalf of the Ultimate Benefi ciaries.

(v) The Company does not have any 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 or survey or any other relevant provisions of the Income Tax Act, 1961).

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

45 Previous year''s figures have been regrouped / reclassified wherever necessary, to conform to current period''s classification.

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Mar 31, 2017

1. The Ministry of Corporate Affairs (MCA) vide notification dated 16^th February 2015, notified the Companies (Indian Accounting Standards) Rules 2015, (hereinafter referred as Ind AS). As a standalone entity, Ind AS would be applicable to the Company w.e.f 1^st April 2017. However the Company being an associate of T V Sundram Iyengar & Sons Limited, who have adopted Ind AS with effect from 1^st April 2016, the Company was required to present Ind AS compliant reporting with effect from 1^st April 2016. Hence the Company has adopted Ind AS from the Financial Year 2016-17 and the financial statements have been prepared in accordance with the Companies (Indian Accounting Standards) Rules, 2015 (Ind AS) prescribed under Section 133 of the Companies Act, 2013 and other accounting principles generally accepted in India.

2. Other Comprehensive Income mainly/ comprises of the impact on movement in fair value of Non-Current Investments in Equity/,

3. Figures for the precious year hare bean regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2016

The estimates of rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by an actuary.

1. Figures for the previous year have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2014

Rs. in lacs

Year ended Year ended 31.03.2014 31.03.2013

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

a) Estimated value of contracts remaining to be executed:

- On Capital Account (net) – –

- Others 77.82 67.77

b) Income Tax / Sales Tax liability in appeal. 630.98 191.57

c) Liability towards Labour cases 10.86 7.86

d) Other Contingent Liabilities :

i) Bank Guarantees for Domestic sales 113.28 35.83

ii) Bank Guarantees for purchase of third party power 43.27 90.74

iii) Letters of Credit for Bills negotiated for Export Sales 78.56 –

2. RELATED PARTY DISCLOSURE AS REQUIRED BY AS - 18 a) Description of relationship and Names of related Parties i) Subsidiaries None

ii) Associates T V Sundram Iyengar & Sons Limited

iii) Key Management Personnel

Mr K Mahesh, Chairman & Managing Director Mr Krishna Mahesh, Joint Managing Director

iv) Relatives of Key Management Personnel

Mrs Shrimathi Mahesh Ms Shrikirti Mahesh

) Enterprise with common Key Managmenent Personnel

None

vi) Enterprise in which relatives of Key Management Personnel have significant interest

Alagar Farms Private Limited Alagar Resins Private Limited

b) Defined Benefit Plan:

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

3. Figures for the previous year have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2013

1. RELATED PARTY DISCLOSURE AS REQUIRED BY AS - 18

a) Description of relationship and Names of related Parties

i) Subsidiaries None

ii) Associates T V Sundram Iyengar & Sons Limited

iii) Key Management Personnel Mr. K Mahesh, Chairman & Managing Director

Mr. Krishna Mahesh, Joint Managing Director

iv) Relatives of Key Management Personnel Mrs. Shrimathi Mahesh

Ms. Shrikirti Mahesh

v) Enterprise with common

Key Managmenent Personnel None

2. Figures for the previous year have been regrouped wherever necessary to conform to this year''s classification.

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Mar 31, 2012

A) The Company has issued only one class of shares referred to as equity shares having a par value of Rs. 10/-.

b) Each holder of equity shares is entitled to one vote per share.

c) The Company declares and pays dividends in Indian Rupees.

d) Except interim dividend which is declared and paid based on the decision of the Board of Directors, all other dividends are proposed by the Board of Directors and paid on approval of the shareholders at the Annual General Meeting.

e) 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.

f) During the last five years immediately preceding the date of the Balance Sheet, the Company has not issued any shares as bonus shares or without payment being received in cash nor has bought back any shares.

g) Following are the shareholders holding more than 5% equity shares and the number of equity shares held by each of them:

Rs. in lacs Year ended Year ended 31.03.2012 31.03.2011

1. CONTINGENT LIABILITIES AND COMMITMENTS (TO THE EXTENT NOT PROVIDED FOR)

a) Estimated value of contracts remaining to be executed:

- On Capital Account (net) 2.39 146.92

- Others 23.88 -

b) Income Tax / Sales Tax liability in appeal. 53.89 106.82

c) Liability towards Labour cases 7.86 6.66

d) Other Contingent Liabilities :

i) Bank Guarantees for domestic sales 41.69 79.32

2. PROPOSED DIVIDEND

The total dividend proposed by the Board of Directors subject to the approval of the shareholders is Rs. 118.04 lacs (PY-157.38) the rate of dividend is 30% (PY-40%) which works out to Rs. 3/- (PY-Rs. 4/-) per share.

The Company had obtained exemption for its Provident Fund Trust under Section 17 of Employee's Provident Fund and Miscellaneous Provisions Act, 1952. Conditions for grant of exemptions stipulate that the employer shall make good deficiency, if any, in the interest rate declared by trust vis-a-vis statutory rate.

a) Defined Benefit Plan:

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

3. The Company has prepared the Financial Statements in accordance with the revised Schedule VI to the Companies Act, 1956 which was notified on 28-02-2011. Accordingly the figures for the previous year have been rearranged and reclassifed so as to make them comparable with those of the current year.

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Mar 31, 2011

1) Contingent Liabilities not provided for: Rs in lacs As at/ As at/ Year ended Year ended 31.03.2011 31.03.2011

Estimated value of contracts remaining to be executed on

Capital Account (net) 146.92 443.15

Income Tax / Sales Tax liability contested / being contested in appeal. In case of a favourable decision in the appeal, the liability may notarise 106.82 15.44

Liability towards Labour cases 6.66 5.46

(2) Deferred Tax Liability:The Company has estimated the deterred tax charge (credit) using the applicable rate of income tax based on the impact of timing differences for the current year.

(3) Intangible assets:

Licence Fees for Windows software application of Rs. 1 0 lacs has been recognised as an intangible asset in 2006-07 & an amortisation policy of 5 years period has been adopted. For the current year, a sum of Rs. 2 lacs has been included as amortisation cost.

(4) Extraordinary items: Amounts paid to a bank:

As reported in earlier publications and Annual Accounts, there were certain disputes arising out of certain derivative transactions entered into on behalf of the Company with some banks and the disputes relating to such transactions with all banks have been settled. The net amount paid by the Company relating to the period has been shown as Extraordinary Expenditure. If the Company defaults in case of its financial commitments under the said settlement, the entire amount claimed by the Bank (net of payments made) equivalent to Rs. 80.62 Crores would become payable.

(5) Borrowing cost:

During the year an amount of Rs. 55.84 lacs was capitalised in accordance with the accounting policy of the Company (Previous Year Rs. 12.51 lacs).

(6) Disclosures required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006:

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

Figures in respect of previous year have been regrouped wherever necessary to conform to this years classification.

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Mar 31, 2010

(1) Deferred Tax Liability:

The Company has estimated the deferred tax charge (credit) using the applicable rate of income tax based on the impact of timing differences between financial statements and estimated taxable income for the current year.

(2) Intangible assets:

Licence Fees for Windows software application of Rs. 10 lacs has been recognised as an intangible asset in 2006-07 & an amortisation policy of 5 years period has been adopted. For the current year a sum of Rs. 2 lacs has been included as amortisation cost.

(3) Disclosure of Related Party Transactions :

Names of related parties and description of relationship

1 Subsidiaries None

2 Associates T V Sundram Iyengar & Sons Limited

3 Key Management Personnel Mr. K Mahesh (Chairman & Managing Director)

4 Enterprise with common Key Management Personnel

5 Relatives of Key Management Personnel Mrs. Shrimathi Mahesh, Ms. Shripriya Mahesh,

Mr. Krishna Mahesh and Ms. Shrikirti Mahesh

6 Enterprises in which relatives of Key Alagar Farms Private Limited Management Personnel have significant Alagar Resins Private Limited interest

(4) Extraordinary items : Amount paid to various banks :

As reported in earlier publications and Annual Accounts, there were disputes arising out of certain derivative transactions entered into on behalf of the Company with some banks and the disputes relating to such transactions with all banks have been settled. The net amount paid by the Company relating to the period has been shown as Extraordinary Expenditure. If the Company defaults in any of its financial commitments under the said settlement, the entire amount claimed by the Bank (net of payments made) equivalent to Rs. 87.62 Crores would become payable.

(5) Borrowing cost:

During the year an amount of Rs. 12.51 lacs was capitalised according to the accounting policy of the Company (PY Rs. 0.54lac).

(6) Disclosures required under Accounting Standard 15 (Revised) "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006:

Figures in respect of previous year have been regrouped wherever necessary to conform to this years classification.