Note 1. BACKGROUND

Rollatainers Limited (The Company) operates as an integrated packaging solution organisation with business encompassing research, manufacturing and marketing Lined and mono Cartons and Packaging Machines. The company’s equity shares are listed for trading on the National Stock Exchange of India Limited and Bombay Stock Exchange Limited.

The following explains the material adjustments made while transition from previous accounting standards to Ind AS

(i) Fair valuation of Investments

Under the previous GAAP, investments in equity instruments were classified as long-term investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments.

Under Ind AS all investments (other than investments in associates) to be measured at fair value at the reporting date and all changes in the fair value have been recognised in retained earnings as at the date of transition and subsequent to the transition date to be recognised in the Other Comprehensive Income.

(ii) Remeasurements of post employment benefit obligation

Under the previous GAAP, these re-measurement were forming part of the profit or loss for the year. Under Ind AS, re-measurement i.e. actuarial gain/loss on the net defined benefit liability are recognised in other comprehensive income instead of profit or loss.

(iii) Security deposits Paid

Under Previous GAAP, the security deposits are accounted at an undiscounted value. Under Ind AS, these are carried at amortized cost.the security deposits have been recognised at discounted value and the difference between undiscounted and discounted value has been recognised as ‘Prepaid expense’ which has been amortised over respective term as notional expense under ‘other expenses’. The discounted value of the security deposits is increased over the period of respective term by recognising the notional interest income under ‘other income’.

(iv) Non Current-Borrowings

Under the previous GAAP, transaction costs were charged to the profit and loss as and when incurred. As required under the Ind AS 109 transactions costs incurred towards origination of borrowings have been deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in the profit and loss over the tenure of the borrowing as interest expense, computed using the effective interest rate method corresponding effect being in Long term borrowings.

(v) Current Borrowings

Under previous GAAP,renewal/annual charges on cash credit or overdraft facitlities need to be straight lined over the period of the facitlity.In the current practice it was charged to Profit or loss as and when charged by bank not on quarterly basis. Company has adopted the practice to amortise these facility charges over the period of facility in Ind AS and charging to Profit or loss on straight lined basis over the period of the facility.resulting by recognising in their quarterly results as well.

(vi) Deferred taxes

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP. In addition, the various transitional adjustments lead to temporary differences. According to the accounting policies, the Company has to account for such differences. Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

(vii) Zero Coupon Redeemable preference shares

Under the previous GAAP, investments in equity instruments were classified as long-term investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for other than temporary decline in the value of such investments.

Under Ind AS investments in preference shares are measured at amortised cost and have been recognised at discounted values.the difference between undiscounted and discounted value has been recognised as “Deferred

Power purchase cost” which has been amortised over respective term as power purchase cost under ‘Power and fuel Expenses’. The discounted carrying value of the preference shares is increased over the term by recognising the notional income under ‘other income.

(viii) Security deposits Received

Under Previous GAAP, the security deposits are accounted at transaction value. Under Ind AS, these are carried at amortized cost.the security deposits have been recognised at discounted value and the difference between undiscounted and discounted value has been recognised as ‘Deferred Income’ which has been amortised over respective term as notional interest income under ‘other income’. The discounted value of the security deposits is increased over the period of lease term by recognising the notional interest expense under ‘Finance cost.

(ix) Other comprehensive income

Under Ind AS, all items of income and expense recognised in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise. Item of income and expense that are not recognised in profit or loss but are shown in the Statement of profit and loss as “other comprehensive income” includes fair value gain / loss on FVOCI equity instruments and re-measurement of defined benefit plans. The concept of other comprehensive income did not exist under previous GAAP.

(x) Retained earnings

Retained earnings as at 1st April, 2016 has been adjusted consequent to the above Ind AS transition adjustments.

(xi) Leases

(a) Under previous GAAP, Leasehold Land were classified as Fixed Assets as the standard on leases(AS-19) excluded Land. Under Ind AS 17, where the substantial risks and rewards incidental to ownership of an asset has not been transferred in the name of Company, the Company has classified such land under Operating Leases. The amount paid towards such leases has been shown as Prepayments under Other noncurrent assets and other current assets. amortisation on lease hold land is charged as Rent Expense in statement of profit and loss.

(b) Under previous GAAP ,as per AS-19(Leases) where the substantial risks and rewards incidental to ownership of an asset has been transferred in the name of Company and Company has classified such land under finance leases and amortised over a tenure of lease staright line basis. In current practice no amortisation of leases are recognised. Company has adopted the practice to amortise the leasehold land over a tenure of lease on staright line basis.

(xii) Investment properties

Under previous GAAP, Land & Building given on lease has been shown as Investment property and disclosed under the head fixed assets. Under Ind AS, Land & Building given on lease are disclosed separately as Investment property on the face of the Balance sheet.

(xiii) Discounts and incentives to customers

Under previous GAAP, discounts and incentives to the customers were shown as a part of other expense. Under Ind AS, revenue from sale of products are recognised at net of discounts and incentives to the customers.

(xiv) MAT Credit Entitlement

Under previous GAAP, MAT credit entitlement was shown as other current assets. Under Ind AS, MAT credit entitlement is recorded and classified as deferred tax assets/liabilities(net).

(xv) The transition from previous GAAP to Ind AS has not made a material impact on the statement of cash flows.

(xvi) Regrouping and restatement

The Ind AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities. Consequently, Ind AS adoption has no impact on the net cash flow for the year ended 31st March, 2017 as compared with the previous GAAP.

2. Contingent Liabilities in respect of :

(a) Bank Guarantee issued Rs 6.32 Lacs (Previous Year 6.32 Lacs).

(b) Excise matters: Rs. 6.47 lacs (previous year Rs 6.47lacs).

(c) Sales Tax Matters : RS. 120.28 Lacs (Previous year Rs 120.28 Lacs)

3. In the matterof interest and damages livied by Regional Provident Fund Commissioner, Faridabad, the company has filed an appeal with Provident Fund Tribunal in Delhi involving a demand of Rs.142.68 lakhs. The company has already deposited a sum of Rs.62.26 lakhs against the above demand.

4. Earning per share:

“Earning per share” is calculated in accordance with Accounting Standard-20, issued by the Institute of Chartered Accountants of India:

5. a) Previous year figures have been regrouped / rearranged, wherever considered necessary to conform to current years’ classification.

c) All figures or amount, including those in the notes to accounts have been upto the rearest lakhs plus thaousands in decimal.