* Ceramic Decorators Limited have been merged with Bra Bourne Commerce
 Limited with effect from April 1, 2010 as per Scheme of Arrangement
 duly passed by Hon''ble High Court of Calcutta vide its order dated
 August 9, 2011.
 
 # Noble Enclave & Towers Private Limited and Topaz Commerce Limited
 have been merged with Spotlight Vanjya Limited with effect from April
 1, 2010 as per Scheme of Arrangement duly passed by Hon''ble High Court
 of Calcutta vide its order dated December 20, 2011.
 
 1.1 In respect of 14,641,600 Equity Shares held by HNG Trust and ACE
 Trust, the Trustees had informed the Company of their decision to
 forego their rights to dividend on shares held by them for the year
 2010-11 and accordingly dividend was not declared on these shares.
 Consequently, Proposed Dividend and Dividend Distribution Tax amounting
 to Rs.219.62 Lacs and Rs.35.63 Lacs respectively has been written back
 during the year.
 
 1.2 Term Loan from Banks and Financial Institutions are secured by
 first charge ranking paripassu on all immovable properties by way of
 equitable mortgage and hypothecation of all moveable properties both
 present and future of the Company and second charge ranking pari-passu
 on entire current assets of the Company, both present and future, save
 and except specific assets exclusively hypothecated in favour of
 respective lenders.
 
 Rupee Term Loan from others are secured by pledge of Equity Share held
 by HNG and ACE Trust.
 
 Vehicle Finance Loans are secured against fixed assets obtained under
 finance lease arrangements.
 
 Note:
 
 1.1 Working Capital Facilities (Fund Based and Non Fund Based) from
 banks are secured by hypothecation of entire Current Assets of the
 Company, both present and future and second charge on entire Fixed
 Assets of the Company in favour of consortium bankers led by State Bank
 of India.
 
 1.2 The Company had entered into certain derivative transactions in
 earlier years which are being disputed by the Company. However, in
 pursuance of announcement dated March 29, 2008 of The Institute of
 Chartered Accountants of India on Accounting for Derivatives and as
 a matter of prudence the claims as crystallised as on the date of knock
 out intimation on such transaction in earlier years and interest
 thereon amounting to Rs. 3,227.51 Lacs (including Rs. 2,827.18 Lacs
 provided in the previous year) remains provided and included in the
 above provision.  The matters are subjudice and the Company has been
 legally advised that these contracts are void ab-initio.
 
 1.3 The Company has provided for Minimum Alternate Tax (MAT). The
 Company is entitled to MAT Credit and accordingly based on evidences
 MAT Credit of Rs.1,450 Lacs (P Y Rs.NIL) has been recognised in these
 Financial Statements.
 
 1.4 In terms of Scheme of Arrangement pursuant to the Order of
 Hon''ble High Court of Calcutta dated April 7, 2008
 
 (a) and by the Hon''ble High Court, Delhi dated March 19, 2008 (the
 Scheme) sanctioning the amalgamation of Ace Glass Containers Limited
 (AGCL) with the Company, 1,368,872 and 2,141,448 equity shares of Rs.
 10/- each of the Company issued in lieu of the shares of the Company
 held by AGCL and shares of AGCL held by the Company were transferred to
 ACE Trust and HNG Trust respectively in earlier years for the sole
 benefit of the Company. Out of the shares so transferred 6,844,360 and
 7,797,240 equity shares of Rs. 2/- each of the Company (after
 subdivision of 1 equity share of Rs. 10/- each into 5 equity shares of
 Rs. 2/- each w.e.f. November 13, 2009) are held by ACE Trust and HNG
 Trust respectively as on 31st March 2012.
 
 1.5 In view of the shares being held for the sole benefit of the
 Company as mentioned above and book value thereof
 
 (b) as such not being Company''s investments representing the value of
 the beneficial interest recoverable from the Trust, these have no
 longer been so classified in the accounts of the Company. Accordingly,
 these have been shown as deduction from the Shareholders'' Fund and
 adjusted against the General Reserve of the Company.  Consequent to
 this, General Reserve and Investments are lower to that extent.
 However, this does not have any impact on the profit of the Company for
 the year.
 
 1.6 Receipt from the Trusts on account of beneficial interest will
 be credited to the Capital Reserve.
 
 1.7 Inventories of Stores and Spare Parts include items, which are
 lying since earlier years. A provision of Rs. 729.97 Lacs (P Y. Rs.
 685.15 Lacs) towards obsolescence is carried in the books and the
 Management is of the opinion that the same is adequate and no further
 provision is required there against.
 
 1.8 Inventories includes items lying with third parties.
 
 1.9 The accounts of some of the customers are pending reconciliation
 / confirmation.
 
 1.10 A provision is carried in the books against doubtful debts and
 the Management is of the opinion that the same is adequate and no
 further provision is required there against.
 
 1.11 A provision of Rs.32.50 Lacs (P.Y. Rs.46.04 Lacs) is carried in
 the books against credit notes issuable to customers and the Management
 is of the opinion that the same is adequate and no further provision is
 required there against.
 
 * Appeal filed before Tax Board, Rajasthan
 
 ** Challenged by the other body and pending before Hon''ble Supreme
 Court.
 
 On the basis of current status of individual cases and as per the legal
 advice obtained, wherever applicable the Management is of the view that
 no provision is required in respect of these cases. Further cash
 outflow in respect of item no. (iii) to (xii) as mentioned above is
 dependent upon outcome of final judgment/decision.
 
 1.12 In the opinion of the Management/Board of Directors, the Loans
 and Advances have a value on realization in the ordinary course of
 business at least equal to the amount at which they are stated in the
 Balance Sheet.
 
 2. RELATED PARTY DISCLOSURES
 
 I Names of the related parties and nature of relationship
 
 A) Subsidiary Companies
 
 Glass Equipment (India) Limited (GEIL)
 
 Quality Minerals Limited (QML)
 
 HNG Global GmbH (HNGGG)
 
 B) Associate Company
 
 HNG Float Glass Limited (HNGFL)
 
 C) Key Management Personnels and their relatives
 
 (i) Mr. C. K. Somany - Chairman and Non Executive Director (Relative of
 Key Management Personnel)
 
 (ii) Mr. Sanjay Somany - Vice Chairman and Managing Director and Key
 Management Personnel
 
 (iii) Mr. Mukul Somany - Vice Chairman and Managing Director and Key
 Management Personnel
 
 (iv) Mr. Rakesh Kumar Sharma - Executive Director and Key Management
 Personnel
 
 D) Enterprises over which any person described in [C (i) to (iv)] above
 is able to exercise significant influence and with whom the Company has
 transactions during the year.
 
 AMCL Machinery Limited (AMCL)
 
 Brabourne Commerce Private Limited (BCPL)
 
 Mould Equipment Limited (MEL)
 
 Rungamatte Trexim Private Limited (RTPL)
 
 Somany Foam Limited (SFL)
 
 Spotlight Vanjya Limited (SVL)
 
 3. LEASES
 
 The Company has acquired certain assets under financial lease, the cost
 of which is included in the Gross Blocks of Buildings and Vehicles. The
 lease term is 75 years for Building. The lease term is 3 years for
 Vehicles, after which the legal title will pass on the Company. The
 lease item has been recognised as an asset at the present value of the
 minimum lease payments. Minimum lease payments payable in future at the
 balance sheet date and their present value are as under:
 
 4. DEFERRAL/CAPITALISATION OF EXCHANGE DIFFERENCES
 
 The Ministry of Corporate Affairs (MCA) has issued the amendment dated
 December 29, 2011 to AS 11 - The Effects of Changes in Foreign Exchange
 Rates, to allow Companies deferral/capitalisation of exchange
 differences arising on Long-term Foreign Currency Monetary Items.
 
 In accordance with the amendment to AS-11, the Company has
 capitalised/decapitalised exchange loss/gain respectively arising on
 long-term foreign currency loan, amounting to Rs. 195.15 Lacs (P.Y. NIL
 ) to the Capital Work-in-Progress. The Company does not have any other
 Long-term Foreign Currency Monetary Item. Hence, the amount of exchange
 loss deffered in the Foreign Currency Monetary Item Translation
 Difference Account is Rs. NIL (PY. Rs. NIL)
 
 5. Figures for P. Y. have been regrouped and/or rearranged wherever
 considered necessary.
 
 6. Till the year ended March 31, 2011, the Company was using
 pre-revised Schedule VI to the Companies Act, 1956, for the preparation
 and presentation of its Financial Statements. During the year ended
 March 31, 2012, the revised Schedule VI notified under the Companies
 Act 1956, has become applicable to the Company. The Company has
 reclassified P Y. figures to conform to this year''s classification. The
 adoption of revised Schedule VI does not impact recognition and
 measurement principles followed for preparation of Financials
 Statements. However, it significantly impacts presentation and
 disclosures made in the Financial Statements, particularly presentation
 of Balance Sheet.