Nature of Operations :-
 
 Decolight Ceramics Ltd. (the company) having its manufacturing
 facilities at Morbi, is engaged in Manufacturing of vitrified tiles &
 alluminium composite panels. However during the year, the com- pany has
 not carried out manufacturing activity for alluminium composite panels.
 The company has also carried out other business operations like Trading
 of ceramic tiles, building materials ceramic raw materials, Work
 contracts for ceramic and alluminium section works, Wind Power
 Generation and Commission for capital goods.
 
 1. Previous year''s figure have been reworked, regrouped, rearranged and
 reclassified wherever necessary.  Accordingly, amounts and other
 disclosures for the preceding year are included as an integral part of
 the current year financial statements and are to be read in relation to
 the amounts and other disclosures relating to the current year.
 
 2.  Preferential Issue of Equity Shares : -
 
 During the year 30,000,000 Equity Shares alloted on preferential basis
 at Rs. 10.20 (including premium of Rs. 0.20) per equity share of the
 nominal value of Rs. 10 each. Application cum allotment money received
 of v 10.20 (including premium of Rs. 0.20) per equity share.
 
 3.  Equity Convertible Warrants : -
 
 28,237,500 Equity Convertible Warrants alloted on preferential basis
 being convertible within 18 months from the date of allotment of
 warrant i.e. any time on or before June 7, 2011, exercisable at the
 option of the warrant holders into one equity share per warrant at Rs.
 10.25 (including premium of Rs. 0.25) per equity share of the nominal
 value of Rs. 10 each. Application cum allotment money received of Rs.
 2.75 (including premium of Re.0.25) per equity convertible warrant.
 
 4.  Loan Funds :- 
 
 Term Loan & Corporate Loan From Banks
 
 Amt O/s
 
 Rs. 131,908,135/- Secured by Equitable Mortgage of factory land &
 building, hypothecation of plant & machineries, hypothecation of stock
 & book-debts, Equitable Mortgage & Hypothecation of collaterals from
 associate concern & relatives of directors and guarantee of directors,
 their relatives and associates.
 
 Working Capital Loan From Banks
 
 Amt O/s
 
 Rs. 289,977,367/- Secured by Equitable Mortgage of factory land &
 building, hypothecation of plant & machineries, hypothecation of stock
 & book-debts, Equitable Mortgage & Hypothecation of collaterals from
 associate concern & relatives of directors and guarantee of directors,
 their relatives and associates.
 
 Term Loan From Financial Institutions
 
 Amt O/s
 
 Rs. 39,168,530/- Secured by Hypothecation of windmill plant &
 machineries and Equitable Mortgage of its leasehold land rights being
 financed, Equitable Mortgage of collaterals from directors and
 guarantee of directors.
 
 Vehicle Loan From Banks
 
 Amt O/s
 
 Rs. 432,628/- Secured against hypothecation of vehicles.
 
 5. Exceptional Items
 
 During the year ended March 31, 2010, the company has to pay to
 customers amount of Rs. 45.12 lacs on account of damaged goods claim
 lodged by the parties. This being expenditure of exceptionally high
 looking to the volume of business, the company has identified Rs. 38.44
 lacs as exceptional item of the expenditure being over and above normal
 expenditure considered and identified at Rs. 6.68 lacs.
 
 6. Disclosure under Accounting Standard - 15 (Revised) on ''Post
 Employment Benefits'' Gratuity Benefits.
 
 The Company has defined benefit gratuity plan. Every employee who has
 completed five years or more of services gets a gratuity on departure
 at 15 days salary (Last drawn salary) for each completed year of
 service.
 
 7. Segment Information:- 
 
 The company has identified two reportable segment viz. Manufacturing,
 Trading and Work Contract of tiles and other building materials &
 Wind Power Generation. The other items include commission income
 which is not related to two reportable segments.
 
 Segment have been identified and reported taking into account nature of
 product and services and deferring risk and rewards from them. The
 accounting policies adopted for segment reporting are in line with the
 accounting policy of the company with following additional policies:
 
 (a) Revenue and expenses have been identified to a segment on the basis
 of relationship to the corresponding segment. Revenue and expenses,
 which relate to enterprise as a whole and are not allocable to a
 segment on reasonable basis, have been deducted from total column.
 
 (b) Segment assets and segment liabilities represents assets and
 liabilities in respective segments.  Assets and liabilities that cannot
 be allocated to as segment on a reasonable basis have been disclosed as
 ''Unallocable''.
 
 The reportable segment is further described below:
 
 (i) Manufacturing of vitrified tiles & alluminium composite panels
 Trading of other ceramic tiles and commodities items, Work contracts
 for ceramic and alluminium section works
 
 (ii) Power generation for captive consumption through installation of
 windmill.
 
 (iii) The other items include commission income which is not related to
 two reportable segments.
 
 (II) Secondary Segment Information:
 
 The major and material activities of the company are restricted to only
 one geographical segment i.e. India, hence the secondary segment
 disclosure are not applicable.
 
 8. Related Party Disclosures:
 
 As per Accounting Standard 18, issued by the Institute of Chartered
 Accountants of India, the disclosure of the transactions with the
 related parties as defined in the Accounting Standard are given :
 
 List of Related Parties along with relationship and Transactions :-
 
 Associates
 
 Decogold Glazed Tiles Ltd.  
 
 Decogold Electronics Ltd.  
 
 Sweta Ceramics
 
 Aristo Ceramics
 
 Relatives Of Key Management Personnel
 
 Mayur K. Pethapara 
 
 Hemal G. Pethapara 
 
 Hiralben Girishbhai 
 
 Poonamben Mansukhbhai 
 
 Ramaben M. Pethapara 
 
 Sadhnaben B. Kadivar 
 
 Vasantaben R. Patel 
 
 Lataben K. Pethapara
 
 Key Management Personnel
 
 Girishbhai M. Pethapara 
 
 Jayantilal M . Pethapara 
 
 Kantilal M. Pethapara
 
 9. The company has taken certain premises, factory building, godown &
 land under cancelable operating leases. The total rental expenses under
 cancelable operating lease during the year was Rs. 26.85 lacs (Rs.
 83.80 lacs).
 
 10. Contingent Liabilities*                             Rs. In Lacs
 
                                           2010-2011      2009-2010
 
 Counter guarantee given to the               227.19         185.27
 banks against guarantee issued by 
 banks on behalf of company. 
  
 Letter of credits issued by the              269.87              -
 bank on behalf of the company.
   
 Service Tax matters under dispute 
 and under adjudication                         1.49              -
 
 Excise matters under dispute and 
 under adjudication.                           58.50          58.50
 (However the company has paid Rs. 
 6.94 lacs under protest)
 
 Excise search operations matter              980.26         980.26
 
 (The company has paid under protest a sum of Rs. 400 lacs as a part of
 bail condition of court of law at the time of search operations. The
 company / directors have further submitted solvency certificate for Rs.
 325 Lacs to the lower court as per the order of Gujarat High Court.
 Presently matter pertaining to the show cause notice for duty of Rs.
 490.13 Lacs and the amount shown hereinabove of Rs. 980.26 Lacs as
 contingent liability including alleged penalty, is pending for
 adjudication at Central Excise Department.)
 
 * Contingent liability produced here in above on the bases of
 information compiled by the management of the company
 
 11. Dues from the other companies under the same management at year end
 is as below: Deco Gold Glazed Tiles Ltd. Rs. 19.34 Lacs./- (Rs.102.83/-
 Lacs).
 
 12. In opinion of the Board of Directors of the company Net Current
 Assets are approximately of the same value as stated, in the normal
 course of business, and adequate provision has been made for all know
 liabilities.
 
 13. Balances of Creditors, Unsecured Loans, Debtors, Loans & Advances
 and Investments are subject to the confirmation of the party concerned.
 Wherever confirmation of the parties for the amounts due to them /
 amounts due from them as per books of accounts are not received,
 necessary adjustments, if any, will be made when the accounts are
 reconciled / settled.
 
 14. Wherever no vouchers and documentary evidences were made available
 for our verification, we have relied on the authentication given by
 management of the company.
 
 15. Figures have been rounded off to nearest rupee and have been
 regrouped, rearranged and reclassified wherever necessary.