1. COMPANY OVERVIEW

Sacheta Metals Ltd (herein referred to as the company) is Public Limited Company established in the year 1990. The Registered Office and Manufacturing Unit of Company is situated at Sacheta Udyog Nagar, Opp.College, Mahiyal, TALOD-383215 Gujarat. Corporate Office is situated at the Business Capital Centre of India Mumbai @ Sakseria Industrial Estate, S.V.Road, Malad (West), Mumbai 400064 (INDIA). The company is one of the major manufacturers & exporters of Aluminium, Stainless and mild steel Houseware kitchenware Utensils - Casting - Sheet - Coils - Circles, Non Stick Cookware - Pressure Cooker, Foil Chaquered sheet, PP Caps / Slug & other Houseware & also Stainless Steel Kitchenware in India.

2. BASIS OF PREPARATION AND MEASUREMENT

i. Statement of Compliance

The financial statements as at end of the financial year ended March 31, 2018 have been prepared in accordance with Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and Companies (Indian Accounting Standards) Amendment Rules, 2016.

For all the periods upto and including the financial year ended March 31, 2017, the Company prepared its financial statements in accordance with requirement of previous GAAP, which includes accounting standards notified under the section 133 of the Companies Act 2013 read together with Companies (Accounting Standards) Rules, 2006. The Date of transition to Ind AS is April 01, 2016. These financial statements for the financial year ended March 31, 2018 are Company’s first Ind AS financial statements. The disclosure relating to Ind AS 101, First-time adoption of Indian Accounting Standards have been given in Note no.4

ii. Accounting Convention and Basis of Measurement

The financial statements have been prepared on the historical cost convention and on an accrual basis, except for the following material items that have been measured at fair value as required by relevant Ind AS:

a. Certain financial assets and liabilities measured at fair value (refer accounting policy on financial instruments)

b. Defined benefit and other long-term employee benefits.

iii. Functional and Presentation Currency

The financial statements are presented in Indian rupees, which is the functional currency of the Company and the currency of the primary economic environment in which the Company operates. All financial information presented in Indian rupees has been rounded to the nearest rupee except share and earning per share data.

iv. Use of Judgements, Estimates and Assumptions

The preparation of financial statements in conformity with Ind AS requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses and the disclosure of contingent liabilities and assets. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

Information about critical judgements in applying accounting policies, as well as estimates and assumptions in respect of the following areas, that have most significant effect to the carrying amounts within the next financial year are included in the relevant notes.

a. Useful lives of property, plant, equipment and intangibles

b. Measurement of defined benefit obligations

c. Measurement and likelihood of occurrence of provisions and contingencies

d. Recognition of deferred tax assets.

e. Impairment of intangibles

f. Expenditure relating to research and development activities.

v. Operating Cycle

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realisation in cash or cash equivalents, the Company has determined its operating cycle as 12 months for the purpose of classification of its assets and liabilities as current and non-current.

3. FIRST TIME ADOPTION OF IND AS

These financial statements of Sacheta Metals Limited, for the financial year ended March 31, 2018 have been prepared in accordance with Ind AS. For the purpose of transition to Ind AS, the Company has followed the guidance prescribed in Ind AS 101 - first time adoption of Indian Accounting Standards, with effect from April 01, 2016 as the transition date and IGAAP as the previous GAAP.

The transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The Accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ending March 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s Balance sheet, statement of profit and loss, is set out in note 6. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101, have been set out in note 5.

4. EXEMPTIONS AVAILED ON FIRST TIME ADOPTION OF IND AS 101

Ind AS 101 allows first-time adopters certain exemptions from the retrospective application of certain requirements under Ind AS and exemptions from other Ind AS. The Company has accordingly applied the following exemptions.

a) Deferred Government Grants

The Company is permitted to apply the requirements under Ind AS 109, financial instruments and Ind AS 20, accounting for government grants and disclosure of government assistance, prospectively to government loans existing at the date of transition to Ind AS.

b) Property, Plant and Equipment and Intangibles

The Company may elect to use the previous GAAP carrying amount as the deemed cost for measurement of items of property, plant and equipment and intangibles assets at the date of transition to Ind AS. Accordingly the Company adopted the previous GAAP carrying amount that existed at the date of transition to Ind AS.

5. RECONCILIATIONS

The following reconciliations provide the effect of transition to Ind AS from IGAAP in accordance with Ind AS 101

A. Equity as at April 01,2016 and March 31,2017

B. Net Profit for the year ended March 31,2017

Note : - (Working Capital Advances from SBI Mumbai are secured by HYPOTHECATION / PLEDE OF Companies entire Goods. Movable & other Assets Such as book Debts Oustanding Monies, Receivable, claims. Bills. Invoice, Documetns, Contracts, Securities, Investments, & Rights all presents and future secured by : 1.Equitable Mortgage of Company’s factory, C & B at block No. 33, Village Mahiyal. Talod (2) Hypothecation of Entire movable Machinery of the Company ). Mr. S.K.Shah & Mrs. C.S.Shah, directors of Company gave personal Guarantee.

Note - 6 : Disclosure as per Ind AS-19 - Employee benefits

Defined Contribution Plan

Contribution to defined Contribution Plan includes Providend Fund. The expenses are recognized for the year as under.

The Company operates gratuity plan wherein every employee is entitled to the benefit equivalent to 15 days/one month salary last drawn for each completed year of service depending on the date of joining. The same is payable on termination of service, retirement or death, whichever is earlier. The benefit vests after 5 years of continuous service. As there are frequent changes in workers/ employees, the company record retirement benefits on cash basis.

Note- 7: Disclosure as per Ind AS-108 Operating segments:

The Company operates mainly in manufacturing of Aluminium Products and all other activities are incidental thereto, which have similar risk and return. Accordingly, there are no separate reportable Segment as required under Ind AS 108 “ Operating Segment. The Company has identified geographical segments based on location of customers as reportable segments in accordance with Ind AS 108 issued by ICAI.

Note -8: Information on Dividend for the Year

Dividends proposed or declared after balance sheet date but before the financial statement have been approved by the Board of Directors for issue are not recognized as a liability at the balance sheet. However when the company published result to BSE, the company had made provision for proposed dividend which is later on rectified and to that extent balances of other equity and provisions are differed.

Note- 9: Disclosure as per Ind As-24- Related Party Disclosureselated party disclosures as required under Ind AS 24, “Related Party Disclosures”, are given below:

Note -10: Previous year figures as per previous GAAP have been regrouped / re arranged / reclassified wherever considered necessary to conform to the classifications / disclosures of the current year