Polyplex Corporation Ltd. ಖಾತೆಯ ಉಪಯುಕ್ತ ಮಾಹಿತಿ

p) Provisions, contingent liabilities and

contingent assets

(i) Provisions

A provision is recognized when the Company
has a present obligation (legal or constructive)
as a result of past event, it is probable that an
outflow of resources embodying economic
benefits will be required to settle the obligation
and a reliable estimate can be made of the
amount of the obligation. These estimates are
reviewed at each reporting date and adjusted
to reflect the current best estimates. If the
effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting
is used, the increase in the provision due to the
passage of time is recognized as a finance cost.

(ii) Contingent liabilities

A contingent liability is a possible obligation
that arises from past events whose existence
will be confirmed by the occurrence or non¬
occurrence of one or more uncertain future
events beyond the control of the Company
or a present obligation that is not recognized
because it is not probable that an outflow
of resources will be required to settle the
obligation. A contingent liability also arises in
extremely rare cases, where there is a liability
that cannot be recognized because it cannot
be measured reliably. The Company does not
recognize a contingent liability but discloses
its existence in the financial statements
unless the probability of outflow of resources
is remote.

(iii) Contingent assets

A contingent asset is a possible asset that
arises from past events and whose existence
will be confirmed only by- the occurrence
or non-occurrence of one or more uncertain
future events not wholly within the control of
the entity. The Company does not recognize
the contingent asset in its standalone
financial statements since this may result
in the recognition of income that may never
be realised. Where an inflow of economic
benefits is probable, the Company disclose
a brief description of the nature of contingent
assets at the end of the reporting period.
However, when the realisation of income is
virtually certain, then the related asset is not
a contingent asset and the Company recognize
such assets.

Provisions, contingent liabilities and contingent
assets are reviewed at each balance
sheet date.

q) Retirement and other employee benefits
Short-term obligations

Liabilities for wages and salaries, including non¬
monetary benefits that are expected to be settled
wholly within twelve months after the end of the
period in which the employees render the related
service are recognized in respect of employee
service upto the end of the reporting period and
are measured at the amount expected to be paid at
undiscounted value when the liabilities are settled.
The liabilities are presented as current employee
benefit obligations in the balance sheet.

Defined benefit plan - Gratuity

The Employee''s Gratuity Fund Scheme, which is
defined benefit plan, maintains its investments
with Life Insurance Corporation of India (LIC).
The liabilities with respect to Gratuity Plan are
determined by actuarial valuation on projected
unit credit method on the balance sheet date,
based upon which the Company contributes to the
Gratuity Scheme. The difference, if any, between
the actuarial valuation of the gratuity of employees
at the year end and the balance of funds is provided
for as assets/ (liability) in the books. Net interest is
calculated by applying the discount rate to the net
defined benefit liability or asset.

The Company recognizes the following changes in
the net defined benefit obligation under employee
benefit expense in standalone statement of profit
and loss:

• Service costs comprising current service
costs, past-service costs, gains and losses on
curtailments and non-routine settlements

• Net interest expense or income

Remeasurements, comprising of actuarial
gains and losses, the effect of the asset ceiling,
excluding amounts included in net interest on
the net defined benefit liability and the return on
plan assets (excluding amounts included in net
interest on the net defined benefit liability), are
recognized immediately in the Balance Sheet with
a corresponding debit or credit to retained earnings
through other comprehensive income in the period
in which they occur. Remeasurements are not
reclassified to profit and loss in subsequent periods.
Defined contribution plans

Defined contribution plans are retirement
benefit plans under which the Company pays
fixed contributions to separate entities (funds)

or financial institutions or state managed benefit
schemes. The Company has no further payment
obligations once the contributions have been paid.
The defined contributions plans are recognised
as employee benefit expense when they are due.
Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in the
future payments is available.

Other employee benefit - Compensated
absence

Liability in respect of compensated absences
becoming due or expected to be availed after the
balance sheet date is estimated on the basis of an
actuarial valuation performed by an independent
actuary using the projected unit credit method.
Actuarial gains and losses arising from past
experience and changes in actuarial assumptions
are charged to standalone statement of profit and
loss in the year in which such gains or losses are
determined. The Company presents the entire
leave balance at the end of reporting period as a
current liability in the balance sheet, since it does
not have a right at end of the reporting period to
defer settlement of the liability for at twelve months
after the reporting period

r) Financial instruments

A financial instrument is any contract that gives
rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.

Financial Assets

Initial recognition and measurement

Financial assets are classified, at initial recognition,
as subsequently measured at amortised cost, fair
value through other comprehensive income (OCI),
and fair value through profit or loss.

The classification of financial assets at initial
recognition depends on the financial asset’s
contractual cash flow characteristics and the
Company’s business model for managing them.
With the exception of trade receivables that do not
contain a significant financing component for which
the Company has applied practical expedient, the
Company initially measures a financial asset at
its fair value plus, in the case of a financial asset
not at fair value through profit or loss, transaction
costs. Trade receivables that do not contain a
significant financing component are measured at
the transaction price determined under Ind AS 115.
Refer to the accounting policies in section "Revenue
from contracts with customers".

For a financial asset to be classified and measured
at amortised cost or fair value through other
comprehensive income, it needs to give rise to

cash flows that are ‘solely payments of principal
and interest (SPPI)’ on the principal amount
outstanding. This assessment is referred to as the
SPPI test and is performed at an instrument level.
Financial assets with cash flows that are not SPPI
are classified and measured at fair value through
profit or loss, irrespective of the business model.

The Company''s business model for managing
financial assets refers to how it manages its
financial assets in order to generate cash flows. The
business model determines whether cash flows will
result from collecting contractual cash flows, selling
the financial assets, or both.

Financial assets classified and measured at
amortised cost are held within a business model
with the objective to hold financial assets in order to
collect contractual cash flows while financial assets
classified and measured at fair value through other
comprehensive income are held within a business
model with the objective of both holding to collect
contractual cash flows and selling.

Subsequent measurement

(I) Financial assets carried at amortised cost

A ‘financial asset’ is measured at the amortised
cost if both the following conditions are met:

(i) Business model test: The objective
is to hold the financial asset to collect
the contractual cash flows (rather
than to sell the instrument prior to its
contractual maturity to realize its fair
value changes) and;

(ii) Cash flow characteristics test: The

contractual terms of the financial asset
give rise on specific dates to cash flows
that are solely payments of principal and
interest on principal amount outstanding.

This category is most relevant to the company.
After initial measurement, such financial assets
are subsequently measured at amortized cost
using the effective interest rate (EIR) method.
Amortised cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of
EIR. EIR is the rate that exactly discounts
the estimated future cash receipts over the
expected life of the financial instrument or a
shorter period, where appropriate, to the gross
carrying amount of the financial asset. When
calculating the effective interest rate, the
Company estimates the expected cash flows
by considering all the contractual terms of the
financial instrument but does not consider the
expected credit losses. The EIR amortization is

included in other income in statement of profit
and loss. The losses arising from impairment
are recognized in the statement of profit and
loss. This category generally applies to trade
and other receivables.

(II) Investments in mutual funds

Investments in mutual funds are measured
at fair value through profit or loss (FVTPL).
Fair value changes on instruments measured
at FVTPL is recognised in statement of profit
and loss.

Income earned on instruments designated
at FVTPL is accrued in other income taking
into account any discount/ premium and
qualifying transaction costs being an integral
part of instrument.

De-recognition of financial assets

A financial asset (where applicable, a part of a
financial asset or part of a Company of similar
financial assets) is primarily derecognised (i.e.
removed from the Company''s statement of financial
position) when:

(i) the rights to receive cash flows from the asset
have expired, or

(ii) t he Company has transferred its rights to
receive cash flows from the asset or has
assumed an obligation to pay the received cash
flows in full without material delay to a third
party under a "pass through" arrangement
and either;

• the Company has transferred substantially
all the risks and rewards of the asset, or

• the Company has neither transferred nor
retained substantially all the risks and
rewards of the asset but has transferred
control of the asset.

When the Company has transferred its rights to
receive cash flows from an asset or has entered into
a pass-through arrangement, it evaluates if and to
what extent it has retained the risks and rewards
of ownership. When it has neither transferred nor
retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the
Company continues to recognise the transferred
asset to the extent of the Company’s continuing
involvement. In that case, the Company also
recognises an associated liability. The transferred
asset and the associated liability are measured on
a basis that reflects the rights and obligations that
the Company has retained.

Continuing involvement that takes the form of a
guarantee over the transferred asset is measured
at the lower of the original carrying amount of the
asset and the maximum amount of consideration
that the Company could be required to repay.

Impairment of financial assets

In accordance with Ind AS 109 ‘Financial
Instruments’, the Company applies expected credit
loss (ECL) model for measurement and recognition
of impairment loss for financial assets.

ECL is the weighted average of difference between
all contractual cash flows that are due to the
Company in accordance with the contract and all
the cash flows that the Company expects to receive,
discounted at the original effective interest rate,
with the respective risks of default occurring as
the weights. When estimating the cash flows, the
Company is required to consider:

a) All contractual terms of the financial assets
(including prepayment and extension) over
the expected life of the assets.

b) Cash flows from the sale of collateral held or
other credit enhancements that are integral to
the contractual terms.

Trade receivables

I n respect of trade receivables, the Company
applies the simplified approach of Ind AS 109,
which requires measurement of loss allowance
at an amount equal to lifetime expected credit
losses. Lifetime expected credit losses are
the expected credit losses that result from all
possible default events over the expected life of a
financial instrument.

Other financial assets

In respect of its other financial assets, the Company
assesses if the credit risk on those financial assets
has increased significantly since initial recognition.
If the credit risk has not increased significantly
since initial recognition, the Company measures
the loss allowance at an amount equal to 12-month
expected credit losses, else at an amount equal to
the lifetime expected credit losses.

When making this assessment, the Company uses
the change in the risk of a default occurring over
the expected life of the financial asset. To make
that assessment, the Company compares the risk
of a default occurring on the financial asset as at
the balance sheet date with the risk of a default
occurring on the financial asset as at the date of
initial recognition and considers reasonable and
supportable information, that is available without
undue cost or effort, that is indicative of significant

increases in credit risk since initial recognition. The
Company assumes that the credit risk on a financial
asset has not increased significantly since initial
recognition if the financial asset is determined to
have low credit risk at the balance sheet date.

(II) Financial liabilities:

Initial recognition and measurement

Financial liabilities are classified at initial
recognition as financial liabilities at fair
value through profit or loss, borrowings, as
appropriate payables. All financial liabilities
are recognised initially at fair value and, in the
case of borrowings and payables, net of directly
attributable transaction costs. The Company
financial liabilities include borrowings, trade
payables, security deposits, liabilities towards
services and other payables.

Subsequent measurement

Subsequent to initial recognition, the measurement
of financial liabilities depends on their classification,
as described below:

Borrowings

After initial recognition, interest-bearing borrowings
are subsequently measured at amortized cost using
the Effective interest rate method. Gains and losses
are recognized in standalone statement of profit and
loss when the liabilities are derecognised as well
as through the effective interest rate amortization
process. Amortized cost is calculated by taking into
account any discount or premium on acquisition
and fees or costs that are an integral part of the
effective interest rate. The effective interest rate
amortization is included as finance costs in the
standalone statement of profit and loss.

Trade Payables

These amounts represent liabilities for goods and
services provided to the Company prior to the end
of financial year which are unpaid. The amounts
are unsecured and are usually payable basis
varying trade term. Trade and other payables are
presented as current liabilities unless payment
is not due within 12 months after the reporting
period. They are recognized initially at fair value and
subsequently measured at amortized cost using
effective interest rate method.

De-recognition of financial liabilities

A financial liability is derecognised when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial
liability is replaced by another from the same
lender on substantially different terms, or the terms

of an existing liability are substantially modified,
such an exchange or modification is treated as
the derecognition of the original liability and the
recognition of a new liability. The difference in the
respective carrying amounts is recognized in the
standalone statement of profit and loss.

Reclassification of financial assets

The Company determines classification of financial
assets and liabilities on initial recognition. After
initial recognition, no reclassification is made for
financial assets which are equity instruments
and financial liabilities. For financial assets
which are debt instruments, a reclassification
is made only if there is a change in the business
model for managing those assets. Changes to the
business model are expected to be infrequent.
The Company''s senior management determines
change in the business model as a result of external
or internal changes which are significant to the
Company''s operations. Such changes are evident
to external parties. A change in the business model
occurs when the Company either begins or ceases
to perform an activity that is significant to its
operations. If the Company reclassifies financial
assets, it applies the reclassification prospectively
from the reclassification date which is the first day
of the immediately next reporting period following
the change in business model. The Company does
not restate any previously recognised gains, losses
(including impairment gains or losses) or interest.
Offsetting of financial instruments

Financials assets and financial liabilities are offset
and the net amount is reported in the balance sheet
if there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to
settle on a net basis, to realize the assets and settle
the liabilities simultaneously.

s) Derivative financial instruments

Initial recognition and subsequent
measurement

The Company uses forward currency contracts as
derivative financial instruments to hedge its foreign
currency risks. Derivative financial instruments
are initially recognised at fair value on the date on
which a derivative contract is entered into and are
subsequently re-measured at fair value. Derivatives
are carried as financial assets when the fair value
is positive and as financial liabilities when the fair
value is negative.

The purchase contracts that meet the definition of
a derivative under Ind AS 109 are recognised in the
standalone statement of profit and loss.

Any gains or losses arising from changes in the fair
value of derivatives are taken directly to standalone
statement of profit and loss.

t) Cash and cash equivalents

Cash and cash equivalent in the balance sheet
comprise cash at banks and cash on hand and
short-term deposits with an original maturity of
three months or less, that are readily convertible
to a known amount of cash and subject to an
insignificant risk of changes in value.

For the purpose of the standalone statement of
cash flows, cash and cash equivalents consist of
cash and short-term deposits, as defined above,
net of outstanding bank overdrafts as they are
considered an integral part of the Company’s
cash management.

u) Dividend

The Company recognizes a liability'' to make the
payment of dividend to owners of equity, when
the distribution is authorised and the distribution
is no longer at the discretion of the Company. As
per the corporate laws in India, a distribution is
authorised when it is approved by the shareholders.
A corresponding amount is recognised directly
in equity.

v) Earnings Per Share

Basic earnings per share are calculated by dividing
the net profit or loss for the year attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
period. The weighted average number of equity
shares outstanding during the year is adjusted
for events such as bonus issue, bonus element in
a rights issue, share split, and reverse share split
(consolidation of shares) that have changed the
number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted earnings per
share, the net profit or loss for the year attributable
to equity shareholders and the weighted average
number of shares outstanding during the year are
adjusted for the effect of all potentially dilutive
equity shares.

w) Investment in subsidiaries

A subsidiary is an entity that is controlled by
another entity.

Impairment of investment

The Company reviews its carrying value of
investments carried at cost annually, or more
frequently when there is indication for impairment.
If the recoverable amount is less than its carrying

amount, the impairment loss is recorded in the
standalone statement of profit and loss.

When an impairment loss subsequently reverses,
the carrying amount of the Investment is increased
to the revised estimate of its recoverable amount,
so that the increased carrying amount does not
exceed the cost of the Investment. A reversal of
an impairment loss is recognised immediately in
standalone statement of profit and loss.

Investments are accounted in accordance with IND
AS 105 when they are classified as held for sale.
On disposal of investment, the difference between
its carrying amount and net disposal proceeds is
charged or credited to the standalone statement of
profit and loss.

x) Cash flow statement

Cash flows are reported using indirect method
whereby a profit before tax is adjusted for the
effects of transaction of non-cash nature and any
deferrals or accruals of past or future cash receipts
or payments. The cash flow from operating,
investing and financing activities of the Company
are segregated.

y) Segment Reporting

Operating segments are reported in a manner
consistent with the internal reporting provided to
the chief operating decision maker as defined under
Ind AS 108. Refer notes to the financial statements
for segment information presented.

z) Significant accounting judgements and
estimates

The preparation of the standalone financial
statements requires the management of
Company to make judgments, estimates and
assumptions that affect the reported amounts of
revenues, expenses, assets and liabilities, and the
accompanying disclosures, and the disclosure of
contingent liabilities.

Significant management judgements

The following are significant management
judgements in applying the accounting policies of
the Company that have the most significant effect
on the standalone financial statements.

(i) Evaluation of indicators for impairment of
assets

The evaluation of applicability of indicators
of impairment of assets requires assessment
of several external and internal factors which
could result in deterioration of recoverable
amount of the assets.

(ii) Impairment of financial assets

The impairment provisions of financial assets
are based on assumptions about risk of default
and expected loss rates. The Company uses
judgment in making these assumptions
and selecting the inputs to the impairment
calculation, based on Company''s past
history, existing market conditions as well as
forward looking estimates at the end of each
reporting period.

(iii) Provisions

At each balance sheet date basis the
management judgment, changes in facts
and legal aspects, the Company assesses
the requirement of provisions against the
outstanding contingent liabilities. However,
the actual future outcome may be different
from this judgement.

(iv) Revenue from contracts with customers

The Company has applied judgements that
significantly affect the determination of the
amount and timing of revenue from contracts
with customers.

Significant estimates

The key assumptions concerning the future and
other key sources of estimation uncertainty at
the reporting date, that have a significant risk of
causing a material adjustment to the carrying
amounts of assets and liabilities, are described
below. The Company based its assumptions
and estimates on parameters available
when the standalone financial statements
were prepared. Existing circumstances and
assumptions about future developments,
however, may change due to market changes
or circumstances arising that are beyond the
control of the Company. Such changes are
reflected in the assumptions when they occur.

(i) Impairment of Property, plant equipment,
Investment properties and CWIP

Impairment exists when the carrying value of
an asset or cash generating unit exceeds its
recoverable amount, which is the higher of its
fair value less costs of disposal and its value
in use. The value in use calculation is based
on a DCF model. The cash flows are derived
from the budgets. The recoverable amount is
sensitive to the discount rate used for the DCF
model as well as the expected future cash-
inflows and the growth rate used.

(ii) Useful lives of depreciable assets

Management reviews its estimate of the useful
lives of depreciable/ amortisable assets at
each reporting date, based on the expected
utility of the assets. Uncertainties in these
estimates relate to technical and economic
obsolescence that may change the utility
of assets.

(iii) Net realizable value of inventory

The determination of net realisable value
of inventory involves estimates based on
prevailing market conditions, current prices,
the estimated future selling price and
selling cost.

(iv) Defined benefit obligation (DBO)

Management’s estimate of the DBO is based
on a number of underlying assumptions
such as standard rates of inflation, mortality,
discount rate and anticipation of future salary
increases. Variation in these assumptions may
significantly impact the DBO amount and the
annual defined benefit expenses.

(v) Fair value measurement disclosures

Management applies valuation techniques
(including but not limited to the use of illiquidity
discount on investments) to determine the fair
value of financial instruments (where active
market quotes are not available). This involves
developing estimates and assumptions
consistent with how market participants would
price the instrument.

aa) Events after the reporting period

If the Company reviews information after the
reporting period, but prior to the date of approved
for issue, about conditions that existed at the end
of the reporting period, it assess whether the
information affects the amounts that it recognises in
its standalone financial statements. The Company
adjust the amounts recognised in its financial
statements to reflect any adjusting events after
the reporting period and update the disclosures
that relate to those conditions in light of the new
information. For non-adjusting events after the
reporting period, the Company does not change the
amounts recognised in its financial statements but
disclose the nature of the non-adjusting event and
an estimate of its financial effect, or a statement
that such an estimate cannot be made, if applicable.

bb) New and amended standards that have
an impact on the Company’s financial
statements, performance and/or disclosures.

These are certain amendments that apply for the
first time for the year ending March 31, 2026, but
do not have a material impact on the financial
statements of the Company. The Company has not
early adopted any standards or amendments that
have been issued but are not yet effective

a) Lack of exchangeability - Amendments to
Ind AS 21

The Ministry of Corporate Affairs (MCA)
notified the Companies (Indian Accounting
Standards) Amendment Rules, 2025, which
amend Ind AS 21, The Effects of Changes in
Foreign Exchange Rates to specify how an
entity should assess whether a currency is
exchangeable and how it should determine
a spot exchange rate when exchangeability
is lacking. The amendments also require
disclosure of information that enables users
of its financial statements to understand how
the currency not being exchangeable into the
other currency affects, or is expected to affect,
the entity’s financial performance, financial
position and cash flows.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2025. When amendments, an entity
cannot restate comparative information.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

b) Amendments to Ind AS 7 and Ind AS 107 -
Supplier Finance Arrangements

In August 2025, the MCA notified amendments
to Ind AS 7 Statement of Cash Flows and Ind
AS 107 Financial Instruments: Disclosures
to clarify the characteristics of supplier
finance arrangements and require additional
disclosure of such arrangements. The
disclosure requirements in the amendments
are intended to assist users of financial
statements in understanding the effects
of supplier finance arrangements on an
entity’s liabilities, cash flows and exposure to
liquidity risk.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2025.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

c) International Tax Reform—Pillar Two
Model Rules - Amendments to Ind AS 12

In August 2025, the MCA notified amendments
to Ind AS 12 Income Taxes in response to the
OECD’s BEPS Pillar Two rules and include:

• A mandatory temporary exception to the
recognition and disclosure of deferred
taxes arising from the jurisdictional
implementation of the Pillar Two model
rules; and

• Disclosure requirements for affected
entities to help users of the financial
statements better understand an entity’s
exposure to Pillar Two income taxes arising
from that legislation, particularly before its
effective date.

The mandatory temporary exception - the
use of which is required to be disclosed -
applies immediately.

The remaining disclosure requirements apply
for annual reporting periods beginning on or
after April 01, 2025.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

d) Amendments to Ind AS 1 - Classification
of Liabilities as Current or Non-current and
Non-current Liabilities with Covenants

In August 2025, the MCA notified amendments
to paragraphs 69 to 76 of Ind AS 1 to
specify the requirements for classifying
liabilities as current or non-current. The
amendments clarify:

• What is meant by a right to defer settlement

• That a right to defer must exist at the end of
the reporting period

• That classification is unaffected by the
likelihood that an entity will exercise its
deferral right

• That only if an embedded derivative in
a convertible liability is itself an equity
instrument would the terms of a liability not
impact its classification.

In addition, a requirement has been introduced
to require disclosure when a liability arising
from a loan agreement is classified as
non- current and the entity’s right to defer
settlement is contingent on compliance with
future covenants within twelve months.

If there is a breach of a material covenant of a
long term loan arrangement on or before the
end of the reporting period, resulting in the
liability becoming payable on demand as at the
reporting date, and the lender agrees—after
the reporting period but before the financial
statements are approved for issue—not to
demand repayment for at least 12 months
as a consequence of the breach, this shall be
treated as an adjusting event. Accordingly, the
entity is not required to classify the liability
as current.

The amendments are effective for annual
reporting periods beginning on or after April
01, 2025 retrospectively in accordance with
Ind AS 8.

The amendments do not have a material
impact on the Company’s standalone
financial statements.

cc) Standards issued but not yet effective

(i) Amendments to Ind AS 1 - Classification
of liabilities as current or non-current and
non-current liabilities with covenants

In accordance with Ind AS 1 currently
applicable, breach of an immaterial covenant

is ignored deciding in current vs non-current
classification of liabilities. Also, in case of
breach of a material covenant of a non-current
loan on or before the reporting date, the entity
can obtain waiver from the lender after the
reporting date and continue to classify the loan
as non-current liability. In accordance with
changes to Ind AS 1 already notified by the
MCA, the above relaxations to classify loan as
non-current liability will not be available from
FY 2026-27 onward and need to be applied
retrospectively. Consequently:

• A breach of either material or immaterial
covenant will trigger current classification
of liability.

• To continue classifying loan as non¬
current liability, entities will need to obtain
waiver from the breach on or before the
reporting date.

The Company is currently assessing the impact
theamendmentswillhaveonitsfinancialstatements

(b) Refer note 21 and 25 for capital work in progress pledged/ hypothecated as security for borrowing taken by the company.

(c) Refer note 41(B) for disclosure of capital commitments for the acquisition of property, plant and equipment.

(d) There is no project whose completion is overdue or has exceeded its cost as compared to its original budgeted cost.

(e) The Company has started capitalisation of new production line and a specific borrowing was availed by the Company for
such purpose. The project is expected to be completed by second half of FY 26-27 of FY 26-27. The amount of borrowing
cost capitalised during the year is f 14.25 lakh (March 31, 2025: f 23.65 lakh). The rate of borrowing used for capitalisation
of borrowing cost is 6.86% - 8.06% (March 31, 2025: 8.00% - 8.30% ).

(a) Investment property represents building located in Noida constructed on leasehold land.

(b) No borrowing cost is capitalised in the current and previous year.

(c) Refer note 21 and 25 for investment property pledged/ hypothecated as security for borrowing taken by the company.

(d) Refer note 41(B) for disclosure of capital commitments for the acquisition of investment property.

(e) The lease deeds of all immovable properties comprising of building constructed on leasehold land is held in the name of
the Company as at March 31, 2026 and March 31, 2025.

(f) The Company has elected to continue with the carrying value of investment property recognised as on April 01, 2016
measured as per the previous GAAP and use that carrying value as its deemed cost as of transition date.

(g) Information regarding income and expenditure of investment properties

(i) The fair value of investment properties has been determined by external independent registered property valuer as defined

under rule 2 of Companies (Registered Valuers and Valuation) Rules, 2017 having appropriate recognised professional
qualification and experience in location and category of the property being valued in conjunction with valuer assessment
services undertaken by approved valuer.

The Company obtain independent valuation for its investment property at least annually and the fair value measurement
is categorised as level 3 measurement in the fair value hierarchy. The valuation is arrived using cost approach.

The main inputs used for valuation are nature of structure, life of structure, quality of maintenance, location of structure,
present and future expected use etc.

(a) Refer note 21 and 25 for intangible assets pledged/ hypothecated as security for borrowing taken by the company.

(b) Refer note 41(B) for disclosure of capital commitments for the acquisition of intangible assets.

(c) There are no restrictions over the title of the Company’s intangible assets, nor are any intangible assets pledged as security
for liabilities.

(d) On transition to Ind AS (i.e. April 01, 2016), the Company has elected to continue with the carrying value of all intangible
assets measured as per the previous GAAP and use that carrying value as the deemed cost of intangible assets.

(e) There is no revaluation of intangible assets during the current year and previous year.

(i) f 1.43 lakh (March 31, 2025 : f 1.33 lakh) represents the amount pledged with government authorities.

(ii) During the previous year, the Company has incurred a loss due to a flood at one of its plants consequent to which it
has recorded a loss of f1,021.93 lakh net off recovery from sale of scrap. The Company had received f 950.00 lakh as
interim settlement amount. In the current year, the holding company has received an additional amounting to f 251.07
lakh towards final settlement of the insurance claim. Accordingly, the Company has recognised income of f 178.18 lakh
as miscellaneous income in the statement of profit and loss.

(iii) Security deposits include due from related parties amounting to Nil (March 31, 2025: f 20.25 lakh) [refer to note 47].

(iv) Others include rent receivable from related parties amounting to f 34.77 lakh (March 31, 2025: f 14.74 lakh) [refer to
note 47].

(v) The Company has not given any advances to directors or other officers of the Company or any of them either severally or
jointly with any other persons or advances to firms or private companies respectively in which any director is a partner or
a director or a member.

(vi) For terms and conditions and the balance recoverable from related parties. Refer to Note 47

(vii) Terms/ rights attached to equity shares

The company has only one class of equity share capital having par value of f 10/- per share (March 31, 2025: f 10/-
per share). Each shareholder is entitled to one vote per share held. The company declares and pays dividend in Indian
rupees (f). The dividend proposed by the Board of Directors is subject to the approval of shareholders in ensuing Annual
General Meeting.

In the event of liquidation of the company, the equity shareholders will be entitled to receive remaining assets of the
company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares
held by the shareholders.

During the last five years, the company has not made any bonus issue or issued any shares for consideration other than
in cash.

(a) Share warrants forfeited account shall be utilized as per provisions of Companies Act, 2013.

(b) Capital redemption reserve has been created upon buy back of shares effected during financial year 2020-21. Subject
to the provisions of Act, it can be utilised to issue fully-paid bonus shares to the members of the Company.

(c) Under the erstwhile Companies Act 1956, general reserve was created through an annual transfer of net income at a
specified percentage in accordance with applicable regulations. The purpose of these transfers was to ensure that if a
dividend distribution in a given year is more than 10% of the paid-up capital of the Company for that year, then the total
dividend distribution is less than the total distributable results for that year. Consequent to introduction of Companies
Act 2013, the requirement to mandatorily transfer a specified percentage of the net profit to general reserve has been
withdrawn. However, the amount previously transferred to the general reserve can be utilised only in accordance with
the specific requirements of Companies Act, 2013.

(d) Retained earnings represents undistributed profit of the company which can be distributed to its equity shareholders in
accordance with requirements of Companies Act, 2013. Retained earnings include re-measurement loss/(gain) on defined
benefit plans, net of taxes that will not be reclassified to statement of profit and loss.

(a) Term loan of non-current f 7,000.00 lakh and current f 2,000.00 lakh (March 31, 2025: non-current f 5,500.00 lakh and
current f 1,000.00 lakh) is secured by way of exclusive charge on all movable fixed assets at bazpur plant both present
and future. The outstanding amount (including current maturities) is repayable in 18 quarterly instalments starting from
June 2026 (March 31, 2025: Repayable in 20 quarterly instalments starting from December 2025).

(b) Term loan of non-current f 2,980.77 lakh and current f 119.23 lakh (March 31, 2025: non current Nil and current Nil)
is secured by way of first pari pasu charge on negative lien on immovable fixed asset of bazpur plant and first pari pasu
charge exclusive on movable fixed asset of the bazpur plant. The outstanding amount (including current maturities) is
repayable in 26 quarterly instalments starting from March 2027 (March 31, 2025: Nil).

(c) The Company''s total borrowing from banks carries an interest rate of 6.86% to 8.06% (March 31, 2025: 8.00% to 9.00%)

(d) Borrowings contain certain debt covenants relating to total liabilities to total net worth, current ratio, debt service coverage
ratio. The company has satisfied all debt covenants prescribed as per term of respective term loan agreements.

(e) The Company has not made any default in the repayment of loans to banks including interest thereon.

(i) Working capital demand loan in foreign currency as on March 31, 2026: Nil (March 31, 2025: 2,225.38 lakh) is secured
against entire current assets of the Company both present and future. The tenure of these facility is for a maximum period
of 180 days. Interest rate range from SOFR spread of 50-150 bps (March 31, 2025: SOFR spread of 50-150 bps).

(ii) Working capital demand loan in Indian Rupee of ^ 4,200.00 lakh (March 31, 2025: Rs. Nil) is secured by first pari-passu
charge by way of hypothecation of entire current assets of the company, both present and future. The tenure of the facility
is for a maximum period of 90 days. Interest rate ranges from 6.35% to 6.55% (March 31,2025: Nil)

(iii) Working capital demand loan in Indian Rupee of ^ 7,700.00 lakh (March 31, 2025: ^ 4,100.00 lakh) is unsecured, and
repayable on demand. The tenure of the facility is for a maximum period of 180 days. Interest rate ranges from 6.21% to
7.68% (March 31, 2025: 7.50% to 9.75%).

(iv) Borrowing contain certain debt covenants relating to total liabilities to total net worth, current ratio, debt service coverage
ratio. The company has satisfied all debt covenants prescribed as per term of respective term loan documents.

(v) Refer Note 41 (C) for undrawn committed borrowing facility available for future operating activities and to settle
capital commitments.

(vi) The Company has not made any default in the repayment of loans to banks including interest thereon.

(vii) Quarterly returns on statement of current assets w.r.t. trade receivable, trade payable and inventories filed by the company
with banks are in agreement with the books of accounts.

(ii) The trade payables are unsecured and non interest-bearing and are usually on varying trade term with ranges from 0 to
90 days.

(iii) Trade Payables include due to related parties amounting to f 115.43 lakh (March 31, 2025: f 2.38 lakh) [refer to note 47].

(iv) For terms and conditions with related parties [refer to note 47].

(v) Trade payable includes unbilled dues amounting to f 833.28 lakh (March 31, 2025: f 954.40 lakh) included under "Not
due" category.

(vi) Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act,
2006 (MSMED Act) for the year ended March 31, 2026 is given below. This information has been determined to the extent
such parties have been identified on the basis of information available with the Company.

(a) Trade receivable represents the amount of consideration in exchange for goods or services transferred to the customers
that is unconditional.

(b) The Company has entered into the agreement with customers for sales of goods. Contract liabilities arises in respect of
contracts where the Company has obligation to deliver the goods for which the Company has received consideration in
advance. Contract liabilities are recognised as revenue when the Company performs obligation under the contract (i.e.
transfers control of the related goods to the customer). There is increase in contract liabilities during the year mainly due
to the amount collected in the current year for which performance obligation is yet to be satisfied.

(c) Performance obligations:

Performance obligation in respect of sale of goods is satisfied when control of the goods is transferred to the customer,
generally on delivery of the goods (i.e. Inco terms) and payment is generally due as per the terms of contract with customers.

40 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to the owners of the Company by the weighted
average number of equity share outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit for the year attributable to the owners of the Company by the weighted
average number of equity share outstanding during the year plus weighted average number of equity shares that would be
issued on conversion of all the dilutive potential equity shares into equity shares. However, there are no dilutive potential
equity shares.

Notes:

(i) f 21.65 (March 31, 2025: f 21.65 lakh) represent demand for AY 2013-14 by the assessing officer. The Company has
contested the demand and has paid a deposit under protect of f 5.50 lakh (March 31, 2025: f 5.50 lakh).

Based on management assessment and discussion with legal consultant the management is confident that the demand
is not sustainable and accordingly no provision is required to be made in this regard.

(ii) There are various disputes pending with GST and sales tax authorities. The Company is contesting the demand raised by
the authorities. Based on management''s assessment and grounds of appeal, the management believes that there is strong
likelihood of succeeding before the various authorities. Accordingly, no adjustments have been made in the standalone
financial statements, pending the final resolution of these matters.

(iii) There are few labour law related matters which are pending before various forums. Based on management’s assessment
and legal advice, the Company believes that there is strong likelihood of favourable outcome in these cases. Accordingly,
no provision has been considered necessary in respect of these matters.

(C) Undrawn committed borrowing facility

The company has f 29,600.00 lakh (March 31, 2025: f 17,374.62 lakh) of working capital loan facility and f 32,478.80
lakh (March 31, 2025: f 3,500.00 lakh) of term loan facility remains undrawn.

(D) Refer note 52 for lease commitments.

(E) Letter of credit

The Company has availed letter of credit facilities amounting to f19,513.15 lakh as of the reporting date (March 31, 2025:
Nil).

42 Corporate Social Responsibility

As per provisions of section 135 of the Companies Act, 2013, the Company has to incur at least 2% of average net profits of
the preceding three financial years towards Corporate Social Responsibility ("CSR"). Accordingly, a CSR committee has been
formed for carrying out CSR activities as per the Schedule VII of the Companies Act, 2013. Details are as below:

(i) CSR amount has been incurred for promoting education, art and culture, promoting health care including preventive health
care and other diversified projects as approved in schedule VII of the Companies Act, 2013.

(j) Subsequent to the year end, pursuant to Companies (CSR Policy) amendment rules, the unspent CSR amount f 59.01
lakh (March 31, 2025: f 71.40 lakh) has been deposited in separate bank account.

(k) During the current year, the Company has contributed f 238.00 lakh (March 31, 2025: f 450.00 lakh) to Rekhta Foundation
("the Trust") towards ongoing projects undertaken by the Trust. Out of the current year’s contribution, f 238.00 lakh has
been utilized for the specified project-related activities. As of the reporting date, there is no unspent CSR amount (March
31, 2025: fNil) with the trust.

43 Segment information

As per Ind AS - 108, operating segment have been defined based on review by chief operating decision maker (CODM) to
assess the performance and make decision about allocation of resources to each segment. The Company business activities
falls within single primary business segment viz, manufacturing of "Polymeric films". Accordingly, disclosure under Ind AS 108,
operating segments are not required in these standalone financial statements.

Notes:

(i) Capital expenditure consists of additions of property, plant and equipment, investment property and capital work in
progress net of capitalisation from previous year.

(ii) During the current year, no customer accounted for 10% or more of the Company''s total revenue (March 31, 2025: one
customer accounted for 12.13% of the Company''s total revenue).

(iii) Non-current operating assets consist of property, plant and equipment, capital work in progress, investment property,
right of use assets, non-current financial assets and other non-current assets.

Notes:

(i) These financial statement are separate financial statements prepared in accordance with Ind AS-27 " Separate Financial
Statements".

(ii) The company has accounted for investment in the above entities at cost less impairment loss, if any.

(iii) The Company holds 51% (March 31, 2025: 51%) shares in the subsidiary company namely "Polyplex (Thailand) Public
Company Limited" out of which 17.19% (March 31, 2025: 17.19%) shareholding is held by the Company directly and
balance 33.81% (March 31, 2025: 33.81%) shares are held by the Company through its subsidiary company namely
"Polyplex (Asia) PTE. Limited".

46 Employee benefit obligations

Disclosures pursuant to Ind AS - 19 "Employee Benefits" (notified under the section 133 of the Companies Act 2013 (the Act)

read with Companies (Indian Accounting Standards) Rule 2015 (as amended from time to time) and other relevant provision

of the Act) are given below :

(A) Defined benefit plan

The Company operates following defined benefit obligations:

(a) Gratuity: The employees'' gratuity fund scheme, which is a defined benefit plan, maintains its investments with Life
Insurance Corporation of India (LIC). The Company provides for gratuity for employees in India as per the new labour code
(Code of Social Security, 2020). Employees who are in continuous service for a period of 5 years are eligible for gratuity.
The amount of gratuity payable on retirement/termination is the employees last drawn wages computed proportionately
for 15 days wages multiplied for the number of years of service. 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 following tables summaries the components of net benefit expense recognised in the statement of profit and loss
and the funded status and amounts recognised in the balance sheet:

(x) The plan assets are maintained with Life Insurance Corporation of India (LIC).

(xi) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for
the estimated term of the obligations.

(xii) Enterprise best estimate of contribution during the next year is Nil (March 31, 2025: f 200.00 lakh).

(xiii) The

(vii) Terms/ rights attached to equity shares

The Company has only one class of equity share capital having par value of INR 10/- per share (March 31, 2024: INR 10/- per share). Each shareholder is entitled to one vote per share held. The Company declares and pays dividend in Indian rupees (INR). The dividend proposed by the Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the equity shareholders will be entitled to receive remaining assets of the Company after distribution of all preferential amount. The distribution will be in proportion to the number of equity shares held by the shareholders.

During the last five years, the Company has not made any bonus issue or issued any shares for consideration other than in cash.

(a) Share warrants forfeited account shall be utilized as per provisions of Companies Act, 2013.

(b) Capital redemption reserve has been created upon buy back of shares effected during financial year 2020-21. Subject to the provisions of Act, it can be utilized to issue fully-paid bonus shares to the members of the Company.

(c) General reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend, issue of bonus shares and fully / partly paid-up equity shares.

(d) Retained earnings represents undistributed profit of the company which can be distributed to its equity shareholders in accordance with requirements of Companies Act, 2013. Retained earnings include re-measurement loss/(gain) on defined benefit plans, net of taxes that will not be reclassified to statement of profit and loss.

(i) Working capital demand loan in foreign currency and cash credit facility is secured against entire current assets of the Company both present and future. The tenure of these facility is for a maximum period of 180 days. Interest rate range from SOFR spread of 50-150 bps (March 31, 2024: Libor spread of 40-300 bps).

(ii) Working capital demand loan in indian rupee is unsecured. The tenure of the facility is for a maximum period of 180 days. Interest rate of rupee denominated short term loan ranges from 7.50% to 9.75% (March 31, 2024: 8% to 11%).

(iii) Loan from bank contain certain financial covenants. The Company has satisfied all these covenants prescribed in the sanction letter of above loan.

(iv) The Company has not made any default in the repayment of loans to banks including interest thereon.

(ii) The trade payables are unsecured and non interest-bearing and are usually on varying trade term with ranges from 0 to 90 days.

(iii) Trade Payables include due to related parties amounting to INR 2.38 Lakh (March 31, 2024: INR Nil) [refer to note 47].

(iv) For terms and conditions with related parties [refer to note 47].

(v) Trade payable includes unbilled dues amounting to INR 954.40 Lakh as at March 31, 2025 (March 31, 2024: INR Nil) included under “Not due” category.

(vi) Information as required to be furnished as per section 22 of the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) for the year ended March 31, 2025 is given below. This information has been determined to the extent such parties have been identified on the basis of information available with the Company.

(a) Trade receivable represents the amount of consideration in exchange for goods or services transferred to the customers that is unconditional.

(b) The Company has entered into the agreement with customers for sales of goods. Contract liabilities arises in respect of contracts where the Company has obligation to deliver the goods for which the Company has received consideration in advance. Contract liabilities are recognized as revenue when the Company performs obligation under the contract (i.e. transfers control of the related goods to the customer). There is increase in contract liabilities during the year mainly due to the amount collected in the current year for which performance obligation is yet to be satisfied.

(c) Performance obligations:

Performance obligation in respect of sale of goods is satisfied when control of the goods is transferred to the customer, generally on delivery of the goods and payment is generally due as per the terms of contract with customers (i.e. Inco terms).

40 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to the owners of the Company by the weighted average number of equity share outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit for the year attributable to the owners of the Company by the weighted average number of equity share outstanding during the year plus weighted average number of equity shares into equity shares.

The following table reflects the income and share data used in the basic and diluted EPS computations:

(i) INR Nil (March 31, 2024: INR 210.89 Lakh) represents demand for AY 21-22 on account of certain additions made by assessing officer. The Company has filed rectification and favorable rectification order has been received in current year.

INR 21.65 (March 31, 2024: INR 21.65 Lakh) represent demand for AY 2013-14 by the assessing officer. The Company has contested the demand and has paid a deposit under protect of INR 5.50 Lakh (March 31, 2024: INR 5.50 Lakh).

Based on management assessment and discussion with legal consultant the management is confident that the demand is not sustainable and accordingly no provision is required to be made in this regard.

(ii) There are various disputes pending with GST and sales tax authorities. The Company is contesting the demand raised by the authorities. Based on management''s assessment and grounds of appeal, the management believes that there is strong likelihood of succeeding before the various authorities. Accordingly, no adjustments have been made in the standalone financial statements, pending the final resolution of these matters.

(iii) There are few labor law related matters which are pending in various forums. The Company has contested these matters and believes no material liability demanding against the Company.

(i) CSR amount has been incurred for promoting education, art and culture, promoting health care including preventive health care and other diversified projects as approved in schedule VII of the Companies Act, 2013.

(j) Subsequent to the year end, pursuant to Companies (CSR Policy) amendment rules, the unspent CSR amount INR 71.40 Lakh (March 31, 2024: INR 27.33 Lakh) has been deposited in separate bank account.

(k) During the current year, the Company has contributed INR 450 Lakh (March 31, 2024: INR 800 Lakh) to Rekhta Foundation (“the Trust”) towards ongoing projects undertaken by the Trust. Out of the current year’s contribution, INR 450 Lakh has been utilized for the specified project-related activities. As of the reporting date, there is no unspent CSR amount (March 31, 2024: INR Nil) with the trust.

43 Segment information

As per Ind AS - 108, operating segment have been defined based on review by chief operating decision maker (CODM) to assess the performance and make decision about allocation of resources to each segment. The Company business activities falls within single primary business segment viz, manufacturing of “Polymeric films”. Accordingly, disclosure under Ind AS 108, operating segments are not required in these standalone financial statements.

(i) These financial statement are separate financial statements prepared in accordance with Ind AS-27 " Separate Financial Statements”.

(ii) The company has accounted for investment in the above entities at cost less impairment loss, if any.

(iii) The Company holds 51% (March 31, 2024: 51%) shares in the subsidiary company namely “Polyplex (Thailand) Public Company Limited” out of which 17.19% (March 31, 2024: 17.19%) shareholding is held by the Company directly and balance 33.81% (March 31, 2024: 33.81%) shares are held by the Company through its subsidiary company namely "Polyplex (Asia) PTE. Limited”.

46 Employee benefit obligations

Disclosures pursuant to Ind AS - 19 "Employee Benefits” (notified under the section 133 of the Companies Act 2013 (the Act) read with Companies (Indian Accounting Standards) Rule 2015 (as amended from time to time) and other relevant provision of the Act) are given below:

(A) Defined benefit plan

The Company operates following defined benefit obligations:

(a) Gratuity: The employees’ Gratuity Fund Scheme, which is a defined benefit plan, is managed by the trust which maintains its investments with Life Insurance Corporation of India (LIC). The gratuity plan is governed by the Payment of Gratuity Act, 1972. Under the gratuity plan, every employee who has completed at least five years of service usually gets a gratuity on departure equivalent to 15 days of last drawn basic salary for each completed year of service. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes 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 following tables summaries the components of net benefit expense recognized in the statement of profit and loss and the funded status and amounts recognized in the balance sheet:

(x) The plan assets are maintained with Life Insurance Corporation of India (LIC).

(xi) Discount rate is based on the prevailing market yields of Indian Government securities as at the balance sheet date for the estimated term of the obligations.

(xii) Enterprise best estimate of contribution during the next year is INR 200 Lakh (March 31, 2024: INR 200 Lakh)

(xiii) The sensitivity analyses above have been determined based on a method that extrapolates the impact on defined benefit obligation as a result of reasonable changes in key assumptions occurring at the end of the reporting period while holding all other assumptions constraint. In practice it is unlikely to occur and change in some of the assumption may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of the defined benefit obligation calculated with the projected unit credit method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognized in the balance sheet.

(xiv) The weighted average duration of defined benefit plan obligation at the end of each reporting period is 7.59 years (March 31, 2024: 8.39 years).

(xv) The estimates of rate of escalation in salary considered in actuarial valuation are after taking into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is as certified by the Actuary.

(xvi) The methods and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

(a) The transactions with related parties are made on terms equivalent to those that prevail in arm’s length transactions. Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs through payment. The Company has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended March 31, 2025 (March 31, 2024: Nil ). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

(b) Terms and conditions related to material transactions are as below:

(i) Revenue from sale / purchase of products and services

Transactions of sales /purchase of products and services with related parties are entered into on the same terms as applicable to third parties in an arm’s length transaction and in the ordinary course of business. The Company mutually negotiates and agrees consideration and payment terms with the related parties by benchmarking the same to transactions with non-related parties, who purchase/sale product and services of the Company in similar terms

(ii) Purchases of property, plant and equipment

Purchases of property, plant and equipment are made from related parties on the same terms as applicable to third parties in an arm’s length transaction. The Company mutually negotiates and agrees price and payment terms with the related parties by benchmarking the similar transaction from non-related parties.

(iii) Outstanding balance from / to related parties

Outstanding balances at the year-end are unsecured and interest free. The settlement for these balances occurs through payment. The Company has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended March 31, 2025 (March 31, 2024: Nil). This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

Valuation Techniques

The fair value of the financial assets and liabilities is included at the amount at which the instrument could be exchanged

in a current transaction between willing parties, other than in a forced or liquidation sale. The following methods and

assumptions were used to estimate the fair value:

(i) The fair values of the Company’s interest-bearing borrowings are determined by using effective interest rate (EIR) method using discount rate that reflects the issuer’s borrowing rate as at the end of the reporting period. The own non-performance risk as at March 31, 2025 was assessed to be insignificant.

(ii) Long-term receivables/payables are evaluated by the Company based on parameters such as interest rates, risk factors, individual creditworthiness of the counterparty and the risk characteristics of the financed project. Based on this evaluation, allowances are taken into account for the expected credit losses of these receivables.

(iii) The carrying value of financial assets and financial liabilities measured at amortized cost in financial statement are a reasonable approximation of their value since the Company does not anticipate that the carrying amount would be significantly different from the values that would be entitled to received or settled.

(iv) The fair values of the investment in mutual fund has been determined based on net assets value (NAV) available in open market.

(v) The Company has entered into derivative financial instruments with banks comprising of forward exchange contract, valued at mark to market using valuation techniques which employs the use of market observable inputs. As at year end, the mark-to-market value of these forward contract is based on confirmation from bank and is net of a credit valuation adjustment attributable to derivative counterparty default risk. The changes in counterparty credit risk had no material effect on the financial instruments recognized at fair value.

(vi) Investments in equity shares of subsidiary are measured at cost as per Ind AS 27, “Separate financial statements” and are not required to be disclosed here.

(vii) Fair value hierarchy

Level 1: The fair value of financial instruments traded in active markets (such as publicly traded derivatives and equity securities) is based on quoted market prices at the end of the reporting period for identical assets or liabilities. The mutual funds are valued using the net assets value (NAV) available in open market. The quoted market price used for financial assets held by the group is the current bid price. These instruments are included in level 1.

Level 2: The fair value of financial instruments that are not traded in an active market (for example, traded bonds, over-the-counter derivatives) is determined using valuation techniques which maximise the use of observable market data and rely as little as possible on entity-specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument is included in level 2.

Level 3: If one or more of the significant inputs is not based on observable market data, the instrument is included in level 3. This is the case for unlisted equity securities, contingent consideration and indemnification asset included in level 3.

There are no transfers among levels 1, 2 and 3 during the year.

49 Foreign exchange forward contracts

The Company has entered into foreign exchange forward contracts and currency swaps with the intention of reducing the foreign exchange risk of foreign currency receivables and payables and are entered into for periods consistent with foreign currency exposure of the underlying transactions. These contracts are not designated in hedge relationships and are measured at fair value through profit and loss.

Fair value loss on financial instruments measured at fair value amounting to INR 94.08 Lakh (March 31, 2024: INR 90.39 Lakh) has been recognized as income in statement of profit and loss account.

50 Financial risk management objectives and policies

The Company, being a manufacturer of polymeric films, is exposed to various market risks, credit risks, and liquidity risks. The Company’s Risk Management Committee (RMC) and Board of Directors have the overall responsibility for establishing and overseeing the Company’s risk management framework.

The RMC comprises four directors, including two independent directors. It periodically reviews operational, financial, and strategic risks and their mitigating factors. The Committee has formulated a comprehensive risk management policy that outlines the framework designed to minimize the impact of uncertainty on the business. The primary objective of this policy is to ensure sustainable business growth with stability and to promote a proactive approach toward identifying, evaluating, reporting, and resolving risks associated with the Company’s operations. This process provides assurance that the Company’s financial risk-taking activities are governed by appropriate policies and procedures, and that financial risks are identified, measured, and managed in accordance with Company policies and risk objectives. Through regular training, management standards, and procedures, the Company aims to maintain a disciplined and constructive control environment where all employees understand their roles and obligations related to risk management.

The Risk Management Committee is supported in its oversight role by the chief risk officer and the risk management team. The RMC undertakes both regular and ad hoc reviews of risk management controls and procedures. The results of these reviews are reported to the Board of Directors.

Below notes explain the sources of risks in which the Company is exposed to and how it manages the risks.

(a) 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 risk comprises three types of risk: interest rate risk, currency risk and other price risk, such as commodity risk. Financial instruments affected by market risk include deposits, investments, and foreign currency receivables, payables and derivative financial instruments. The sensitivity analysis in the following sections relate to the position as at reporting date. The analysis exclude the impact of movements in market variables on: the carrying values of gratuity and other post-retirement obligations, provisions and the non-financial assets and liabilities. The sensitivity of the relevant profit and loss item and equity is the effect of the assumed changes in the respective market risks. This is based on the financial assets and financial liabilities held as of March 31, 2025 and March 31, 2024.

(i) Foreign currency risk

Foreign currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company’s exposure to the risk of changes in foreign exchange rates also relates to the Company’s operating activities (when revenue or expense is denominated in foreign currency). The Company manages its foreign currency risk partly by taking forward exchange contract for transactions of sales and purchases and partly balanced by purchasing of goods/services from the respective countries. The Company evaluates exchange rate exposure arising from foreign currency transactions and follows established risk management policies.

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s main interest rate risk arises from long-term borrowings and working capital. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. The Company optimizes the interest rate risk by regularly monitory the interest rate in the best interest of the Company. The Company has following fixed rate and floating interest rate on long term borrowing:

The main raw materials which company procures are PTA, MEG and homopolymer and their prices are to a great extent linked to the movement of crude prices directly or indirectly and any adverse fluctuation in the raw material cost can impact the Company’s operating margins depending upon the ability of the Company to pass on the increase in costs to its customers. As selling prices are regular negotiated / adjustment of sale prices on the basis of changes in commodity prices. The Company is not significantly impacted by commodity price risk.

(b) Liquidity Risk

Liquidity risk is the risk that the Company may not be able to meet its present and future cash and collateral obligations without incurring unacceptable losses. The Company’s objective is to, at all times maintain optimum levels of liquidity to meet its cash and collateral requirements. The Company closely monitors its liquidity position and deploys a robust cash management system. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents or adequate sources of financing through the use of short term loans and cash credit facility. Processes and policies related to such risks are overseen by senior management. Management monitors the Company’s liquidity position through rolling forecasts on the basis of expected cash flows. The Company assessed the concentration of risk with respect to its debt and concluded it to be low.

(c) Credit risk

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 towards the Company. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities including foreign exchange transaction and other financial instrument. The maximum amount of the credit exposure is equal to the carrying amounts of these receivables. Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. The company only deals with parties which has good credit rating/worthiness given by external rating agencies or based on company’s past assessment.

(i) Trade receivables

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The Company has developed guidelines for the management of credit risk from trade receivables. All customer are subjected to credit assessments as a precautionary measure, and the adherence of all customers to collection due dates is monitored on an on-going basis, thereby practically eliminating the risk of default.

For certain customers, the Company has obtained credit guarantee insurance, which covers up to 95% of the credit risk on outstanding balances, subject to the limits specified in the insurance policy. As a result, the

Company’s exposure to credit risk on these receivables is significantly mitigated. Additionally, the Company’s trade receivables are diversified across a wide base of customers operating in various industries and geographies, thereby eliminating any significant concentration of credit risk.

The Company’s established policy, procedures and control relating to customer credit risk management. An impairment analysis is performed at each reporting date on trade receivables by lifetime expected credit loss method based on provision matrix. The provision rates are based on days past due for grouping at customers with similar loss patterns. The calculation reflects the probability weightage outcome, the time value of money and reasonable and supporting information that is available at the reporting date about the past events, current condition and future forecast. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables and contract assets as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

(ii) Financial instruments and deposits

Credit risk from balances with banks is managed by the Company’s treasury department in accordance with the Company’s policy. Investments of surplus funds are made in bank deposits and mutual funds. The limits are set to minimize the concentration of risks and therefore mitigate financial loss through counterparty’s potential failure to make payments. The Company’s maximum exposure to credit risk for the components of the balance sheet at March 31, 2025 and March 31, 2024 is the carrying amounts.

The Company has deposited liquid funds at various banking institutions. No impairment loss is considered necessary in respect of these fixed deposits that are with recognized commercial banks and are not past due over past years. Trade receivables and other financial assets are written off when there is no reasonable expectation of recovery, such as debtor failing to engage in the repayment plan with the Company. The Company’s maximum exposure relating to financial instrument is noted in table below:

51 Capital management

For the purposes of Company’s capital management, capital includes issued equity share capital, securities premium and all other equity reserves attributable to the equity holders of the Company. The primary objective of the Company’s capital management is to ensure that it maintains an efficient capital structure and maximize shareholder value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders or issue new shares. The Company monitors capital using net debt to equity. The Company aims to maintain an optimal capital structure to reduce the cost of capital.

52 Right of use assets and leases liabilities (A) Company as a lessee

(i) Right of use assets: The Company’s lease assets primarily comprise leasehold land taken on lease for its corporate office and plant facilities. These leases have terms ranging from 30 to 90 years. The Company records lease liability at the present value of remaining lease payments discounted at incremental rate of borrowing and has recognized right of use assets equal to lease liability adjusted for any prepayments.

In addition, the Company has entered into certain lease agreements with lease terms of 12 months or less. The Company has elected to apply the short-term lease recognition exemption for these leases and, accordingly, does not recognize lease liabilities or right-of-use assets for such leases. Lease payments associated with these short-term leases are recognized as an expense on a straight-line basis over the lease term.

(vi) The weighted average incremental borrowing rate applied to lease liabilities is 9.00% (March 31, 2024: 9.00%)

(vii) The Company does not face significant liquidity risk with regard to its lease liabilities as the current assets are sufficient to meet the obligation related to lease liabilities as and when they fall due.

(viii) There is no non-cash activity in current and previous year.

(ix) The Company’s total cash outflow for leases during the year is INR 165.72 Lakh (March 31, 2024: INR 149.80 Lakh).

(x) The Company does not have any outstanding lease restrictions and commitment towards variable rent as per the contract. Also, the Company does not have lease term extension options which not reflect in measurement of lease liabilities.

(B) Company as a lessor

(i) The Company has leased out office space. These leases are for a period of one year or less. The total lease rental recognized during the year is INR 314.84 Lakh (March 31, 2024: INR 223.37 Lakh).

54 Other statutory information

(i) The company does not have any Benami Property where any proceedings have been initiated or are pending against the Company for holding benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and Rules made thereunder.

(ii) The Company has not been declared willful defaulter by any bank or government or any government authority.

(iii) The Company has no balance and transactions with companies struck off under section 248 of Companies Act, 2013 or section 560 of Companies Act, 1956 , except for the following balances with struck-off entities:

(iv) The Company has complied with the number of layers prescribed under section 2(87) of the Companies Act, 2013 read with the Companies (Restriction on number of layers) Rules, 2017.

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

a. directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the group (Ultimate Beneficiaries) or

b. provide any guarantee, security or the like to or on behalf of the ultimate beneficiaries.

The Company has not received any fund from any person or entity, 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 beneficiaries

(vi) The Company does not have any such 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 provision of the Income Tax Act, 1961).

(vii) The Company has not traded or invested in crypto currency or virtual currency during the current or previous year.

(viii) The Company has not revalued its property, plant and equipment (including right-of-use assets) or intangible assets or both during the current or previous year.

(x) The borrowings obtained by the Company from banks have been applied for the purposes for which such loans were taken and the Company has not used funds raised on short term basis for long term purpose.

55 The Company has established a comprehensive system of maintenance of information and documents as required by the transfer pricing legislation under section 92-92F of the Income Tax Act, 1961. Since the law requires existence of such information and documentation to be contemporaneous in nature, the Company is in the process of updating the documentation for the transactions entered into with the associated enterprises during the financial year and expects such records to be in existence latest by due date as required under the law. The management is of the opinion that its transactions with the associated enterprises are at arm’s length so that the aforesaid legislation will not have any impact on the financial statements, particularly on the amount of tax expense and that of provision for income tax.

56 The Company have its server physically located in India and the backup of the books of account and other books and papers are being maintained in electronic mode on these servers on daily basis. However, there are certain exceptional days on which the daily backup were not maintained due to system issues. The management is taking necessary steps to ensure that there is a process for daily back as required under the applicable statute. Further, the Company has used accounting software ‘SAP’ for maintaining its books of account which has a feature of recording audit trail (edit log) facility which was enabled throughout the year for all relevant transactions recorded in the software. However, logs with respect to privileged/ administrative access rights were not enabled due to system limitations and performance issues. Further, the Company is in process of implementing the new ERP software and will develop IT infrastructure accordingly. Additionally, consequent to above, the Company was not able to maintain and preserve audit trail in compliance with the requirement of the statute in respect of the year ended March 31, 2024 and March 31, 2025.

57 The Code on Social Security, 2020 (‘Code’) relating to employee benefits during employment and post employment benefits received Presidential assent in September 2020. The Code has been published in the Gazette of India. Certain sections of the Code came into effect on May 03, 2023. However, the final rules/interpretation have not yet been issued. Based on a preliminary assessment, the Company believes the impact of the change will not be significant.

58 The figures for the corresponding previous year have been regrouped/ reclassified, wherever considered necessary, to make them comparable with current year classification.

RIGHTS ATTACHED TO THE SHARES

The Company has only one class of Equity Shares of par value of '' 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of equity shares held by the Equity Shareholders.

In last five years there was no Bonus issue and / or issue of shares other than for cash considerations.

Loans are secured as under:

Term Loans of I Nil (FY 2022-23: '' 1,423.61 Lakh) are secured on a pari passu basis by hypothecation of Company’s movable Property, Plant and Equipment both present and future. Entire Loans got repaid during FY 2023-24 and particulars of satisfaction of charge filled with Ministry of Corporate Affairs (MCA)

Note 40: Financial Risk Management, Objectives and Policies:A. Financial Risk Framework:

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s Risk Management Committee/ Board of Directors have overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s Risk Management Committee/Audit Committee oversees how Management monitors compliance with the Company’s Risk Management Policies and Procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Risk Management Committee is assisted in its oversight role by Chief Risk Officer and its team. Risk Management Committee undertakes both regular and ad hoc review of Risk Management Controls and Procedures, the results of which are reported to the Board

a. Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: Currency Rate Risk, Interest Rate Risk and other Price Risks, such as Commodity Risk. The Company enters into the derivative contracts as approved by the Board to manage its exposure to interest rate risk and foreign currency risk.

i. Foreign Currency Risk:

Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company has obtained foreign currency borrowings and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk. The foreign currency risk exposure of the Company is mainly in U.S. Dollar (USD) and Euro (EUR). The Company’s exposure to foreign currency changes for all other currencies is not material.

The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognizance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).

This is mainly attributable to the net exposure outstanding on foreign currency receivables and payables at the end of the reporting period. The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.

Derivative financial instruments

The Company uses foreign currency forward and Interest rate swap contracts to manage some of its transactions exposure.

Forward Contracts

The Company has entered into foreign currency sale and purchase forward contracts to offset the risk of currency fluctuations. These contracts are for settlement of operational receivable and payable. The Details of outstanding contracts are as follow:

ii. Interest Rate Risk:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s main interest rate risk arises from working capital and long term borrowings. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

iii. Commodity price risk:

The main raw materials which company procures are global commodities and their prices are to a great extent linked to the movement of crude prices directly or indirectly and any adverse fluctuation in the raw material cost can impact the Company’s operating margins depending upon the ability of the Company to pass on the increase in costs to its customers. As selling prices are usually negotiated on a monthly / quarterly basis, in a balanced demand supply situation, the Company is able to adjust the selling prices following any changes in the raw material and other operating costs.

b. Credit risk

Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables.

For credit risk exposures, Refer Note No. 6-7,11-15 of the financial statements.

i. Trade Receivable:

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The company has a well-defined and robust internal credit management system to monitor unsecured sales. A strong internal credit risk management policy enables the company to manage credit risk prudently even when credit risk is high. Credit guarantee insurance is also obtained wherever required. Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. One customer accounted for 10% or more of revenue in FY 2023-24 (FY 2022-23 - Nil).

To manage trade receivables, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables. Expected Credit Loss is determined with reference to historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking estimates. At each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated. A default on financial assets is when a counter party fails to make the payment within 365 days, when they fall due. This definition of default is determined by considering the business environment in which the entity operates and other macro-economic factors.

The Ageing of trade receivables and allowances for credit impairment are given in Note No 12.

Financial assets are written off when there is no reasonable expectation of recovery. Whereas the loans and receivables are written off and subsequently recoveries are made, these are recognized as an income in the financial statements

ii. Financial assets to which loss allowances measured using 12 months Expected Credit Loss:

For financial assets (other than trade receivables) which are not measured fair value through Profit and Loss account, expected credit losses are measured at an amount equal to the 12 month Expected Credit Loss, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime expected credit loss. The Company does not have any expected credit loss on financial assets which are measured on 12 month expected credit loss and also has not observed any significant increase in credit risk since initial recognition of the financial assets.

Cash and Cash Equivalents, Deposit with Banks:

Credit risk on cash and cash equivalents and deposit with banks is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

Derivatives (Forward Contracts):

Derivatives are entered with banks, counter parties which have low credit risk, based on external credit ratings of counter parties. For other financial assets the company monitors ratings, credit spreads and financial strengths of its counterparties. Based on its ongoing assessment of the counter party’s risk, the company adjusts its exposures to various counter parties. Based on the assessment there is no impairment in other financial assets.

c. Liquidity risk:

Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

B. Capital Risk Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company’s capital management is to maximize the shareholders value. The Company’s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company’s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company aims to maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the Company’s capital management, capital includes issued equity share capital, share premium and all other equity reserves. Debt includes, interest bearing loans and borrowings, trade payables and other financial liability.

The Company monitors capital using Debt-Equity Ratio, which is Debt divided by Total Equity.

c. Fair Value of Financial Instrument measured at amortized Cost:

The carrying amount of financial assets and financial liabilities measured at amortized cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Long-term variable-rate borrowings measured at amortized cost are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

Note 42: Segment Information

In accordance with Ind-AS 108 on Operating Segments, the company has only one business segment i.e. Polymeric film.

Segment information has been provided in the Consolidated Financial Statements of the Company and therefore, no separate disclosure on segment information is given in these standalone financial statements.

B. National Pension Fund

Contribution to National Pension Fund (NPS) debited to Statement of Profit & Loss amounts to '' 73.69 Lakh (Previous Year: '' 77.04 Lakh)

C. Defined Benefit Obligations (Gratuity)

The employees’ Gratuity Scheme is managed by Life Insurance Corporation of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes 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.

D. Other Long Term Employee benefits:

Leave Encashment: The Company has provided for its liability towards Leave encashment, based on the actuarial valuation

Sick Leave: The Company has provided for its Sick leave liability based on the actuarial valuation. The Outstanding liability as on March 31, 2024 and March 31, 2023 - '' 190.09 Lakh, and '' 197.10 Lakh respectively. The Company had recognized '' 7.01 Lakh as income during the FY - 2023-24. (Previous Year: Expense of '' 5.02 Lakh)

E. Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is

exposed to various risks as follow -

A. Salary Increases - Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B. Investment Risk - If Plan is funded then the mismatch between assets and liabilities and actual return on assets being lower than the discount rate assumed at the last valuation date can impact the liability.

C. Discount rate - Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D. Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E. Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

d. Terms & conditions of transactions with Related Parties

The sales to and purchases from related parties, including rendering / availing of service, are made on terms equivalent to those that prevail at arm’s length transactions. The outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided to or received for any related party receivable or payables. The Company has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended March 31, 2024 and March 31, 2023 other than that stated above.

Note 46: Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of '' 515.23 Lakh (Previous Year: '' 619.53 Lakh)) amounts to '' 786.51 Lakh (Previous Year: '' 1,379.62 Lakh).

Note 47: Research and Development

The revenue expenditure of '' 694.01 Lakh (Previous Year: '' 581.33 Lakh) and capital expenditure of '' Nil (Previous Year: '' Nil) on Research & Development are charged to the respective heads of account.

Note 48: Managerial Remuneration:

During the Financial Year 2023-24, Company has paid Managerial Remuneration to Mr. Pranay Kothari, Whole Time Director, amounting to '' 253.14 Lakh (excluding contribution of PF, superannuation and NPS) and made a provision of Performance Award (PA) of '' 199.98 Lakh as recommended by Nomination and Remuneration Committee, approved by Board of Directors and ordinary resolution passed by the members in the Annual General meeting held on September 29, 2021.

During the Financial Year 2023-24 Company has suffered loss due to which aforesaid payment / provision exceeds the limit on Managerial Remuneration prescribed in Section 197 of the Companies Act, 2013 (the Act). Out of the aforesaid payment of remuneration a sum of '' 129.47 Lakh and provision of Performance Award of '' 199.98 Lakh are in excess of the limit prescribed in Schedule V of the Act and accordingly approval of the Members by way of Special Resolution is being sought for waiver / approval of excess remuneration.

Note 51: Corporate Social Responsibility

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are specified in Schedule VII of the Companies Act, 2013. During the current financial year Company met its current and brought forward CSR obligations as detailed below:

e. Reason for Unspent CSR Amount

The Company has been able to spend the requisite amount of CSR obligation during the year except a sum of '' 27.33 Lakh pertaining to Financial Year 2023-24 in respect of one ‘Ongoing Project’. This amount has been deposited in unspent CSR Account.

The reason for not getting this amount spent during the Financial Year itself is because of unavailability of firm proposal and its recommendation from concerned authorities.

c. The Company has elected Para 6 of Ind AS -116 for short term leases & recognized lease expense of '' 147.73 Lakh (FY 2022-23: '' 163.92 Lakh) associated with these leases.

d. The Company has recognized Interest expenses on Lease Liabilities of '' 1.29 Lakh (FY 2022-23: '' 1.81 Lakh) during the year.

e. Lease contracts entered into by the company, majorly pertain to Land taken on lease to conduct its business in the ordinary course of business.

f. The Company does not have any outstanding lease restrictions and commitment towards variable rent as per the contract. Also the Company does not have lease term extension options which are not reflected in the measurement of lease liabilities.

B. As a Lessor

a. Lease contracts entered by the company majorly pertain for plots of building given on lease to companies for conducting their business.

b. The Company has managed risk associated with the rights in leased assets given by incorporating covenants in agreement like indemnification of occurrence of losses due to action of lessees.

b. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

c. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) 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

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

d. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

(ii) Provide any Guarantee, Security, or the like to or on behalf of the Ultimate Beneficiaries.

e. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

f. The Company does not have any such 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).

g. The Company has been sanctioned working capital limit in excess of '' 500 Lakh, in aggregate, at points of time during the year, from bank or financial institutions on the basis of security of current assets. The quarterly returns/ statements filed by the company with the bank or financial institutions, are in agreement with the books of accounts of the company of the respective quarters.

h. The Company has not been declared willful defaulter by any Bank or any other Financial Institution at any time during the financial year.

i. The company has utilized the borrowings from banks and financial institutions for the specific purpose for which these were taken during the financial year.

k. The Company has used an accounting software for maintaining its books of account which has feature of recording audit trail (edit log) facility and the same has operated throughout the year for all relevant transactions recorded in the software except that audit trail feature was not enabled at the database level for accounting software to log any direct data changes.

Note 58: Events occurring after the Balance Sheet Date:

There are no events occurring after the Balance Sheet date for the Financial Year 2023-24 except Note No - 49 (Proposed Dividend).

Rights Attached to the Shares

The Company has only one class of Equity Shares of par value of H 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of equity shares held by the Equity Shareholders.

In last five years there was no Bonus issue and / or issue of shares other than for cash considerations.

Loans are secured as under:

Term Loans of H 1,423.61 Lakh (FY 2021-22: H 4,722.22 Lakh) are secured on a pari passu basis by hypothecation in respect of Company’s movable Property, Plant and Equipment both present and future.

Includes Prepaid Processing Fees of H Nil, (FY 2021-22: H 0.50 Lakh)

Note:

The Company has recognized grant in respect of duty paid on procurement of capital goods under EPCG scheme of Central Government which allows refund in the form of freely transferable duty credit scrips of the duty paid upon meeting of specific export obligations. The Company expects to meet its export obligations in period of two years. During the year, an amount of H 366.89 Lakh (FY 2021-22: H 379.74 Lakh) was released from deferred income to the statement of profit and loss on fulfillment of export obligations.

Capital and State Investment Subsidy Grants relating to property, plant and equipment relates to cash incentive received from Government for setting up industries in specified area. During the year, an amount of H 4.86 Lakh (FY 2021-22: H 6.67 Lakh) was released from deferred income to the statement of profit and loss

Note 40: Financial Risk Management, Objectives and Policies:

A. Financial Risk Framework:

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s Risk Management Committee/ Board of Directors have overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s Risk Management Committee/Audit Committee oversees how Management monitors compliance with the Company’s Risk Management Policies and Procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The Risk Management Committee is assisted in its oversight role by Chief Risk Officer and

its team. Risk Management Committee undertakes both regular and ad hoc review of Risk Management Controls and Procedures, the results of which are reported to the Board

a. Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: Currency Rate Risk, Interest Rate Risk and other Price Risks, such as Commodity Risk. The Company enters into the derivative contracts as approved by the Board to manage its exposure to interest rate risk and foreign currency risk.

i. Foreign Currency Risk:

Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company has obtained foreign currency borrowings and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk. The foreign currency risk exposure of the Company is mainly in U.S. Dollar (USD) and Euro (EUR). The Company’s exposure to foreign currency changes for all other currencies is not material.

The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognizance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).

This is mainly attributable to the net exposure outstanding on foreign currency receivables and payables at the end of the reporting period. The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.

Derivative financial instruments

The Company uses foreign currency forward and Interest rate swap contracts to manage some of its transactions exposure.

Forward Contracts

The Company has entered into foreign currency sale and purchase forward contracts to offset the risk of currency fluctuations. These contracts are for settlement of operational receivable and payable. The Details of outstanding contracts are as follow:

ii. Interest Rate Risk:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s main interest rate risk arises from working capital and long term borrowings. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

iii. Commodity price risk:

The main raw materials which company procures are global commodities and their prices are to a great extent linked to the movement of crude prices directly or indirectly and any adverse fluctuation in the raw material cost can impact the Company’s operating margins depending upon the ability of the Company to pass on the increase in costs to its customers. As selling prices are usually negotiated on a monthly / quarterly basis, in a balanced demand supply situation, the Company is able to adjust the selling prices following any changes in the raw material and other operating costs.

b. Credit risk

Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables.

For credit risk exposures, Refer Note No. 6-7,11-15 of the financial statements.

i. Trade Receivable:

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The company has a well-defined and robust internal credit management system to monitor unsecured sales. A strong internal credit risk management policy enables the company to manage credit risk prudently even when credit risk is high. Credit guarantee insurance is also obtained wherever required. Trade receivables consist of a large number of customers spread across diverse industries and

geographical areas with no significant concentration of credit risk. No customer accounted for 10% or more of revenue in FY 2022-23 (FY 2021-22 - Only one).

To manage trade receivables, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables. Expected Credit Loss is determined with reference to historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking estimates. At each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated. A default on financial assets is when a counter party fails to make the payment within 365 days, when they fall due. This definition of default is determined by considering the business environment in which the entity operates and other macro-economic factors.

The Ageing of trade receivables and allowances for credit impairment are given in Note No 12.

Financial assets are written off when there is no reasonable expectation of recovery. Whereas the loans and receivables are written off and subsequently recoveries are made, these are recognized as an income in the financial statements

ii. Financial assets to which loss allowances measured using 12 months Expected Credit Loss:

For financial assets (other than trade receivables) which are not measured fair value through Profit and Loss account, expected credit losses are measured at an amount equal to the 12 month Expected Credit Loss, unless there has been a significant increase

in credit risk from initial recognition in which case those are measured at lifetime expected credit loss. The Company does not have any expected credit loss on financial assets which are measured on 12 month expected credit loss and also has not observed any significant increase in credit risk since initial recognition of the financial assets.

Cash and Cash Equivalents, Deposit with Banks:

Credit risk on cash and cash equivalents and deposit with banks is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

Derivatives (Forward Contracts):

Derivatives are entered with banks, counter parties which have low credit risk, based on external credit ratings of counter parties. For other financial assets the company monitors ratings, credit spreads and financial strengths of its counterparties. Based on its ongoing assessment of the counter party’s risk, the company adjusts its exposures to various counter parties. Based on the assessment there is no impairment in other financial assets.

c. Liquidity risk:

Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

B. Capital Risk Management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company’s capital management is to maximize the shareholders value. The Company’s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company’s ability to continue as a going

concern in order to support its business and provide maximum returns for shareholders. The Company aims to maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the Company’s capital management, capital includes issued equity share capital, share premium and all other equity reserves. Debt includes, interest bearing loans and borrowings, trade payables and other financial liability.

The Company monitors capital using Debt-Equity Ratio, which is Debt divided by Total Equity.

c. Fair Value of Financial Instrument measured at amortized Cost:

The carrying amount of financial assets and financial liabilities measured at amortized cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Long-term variable-rate borrowings measured at amortized cost are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

Note 42: Segment Information

In accordance with Ind-AS 108 on Operating Segments, the company has only one business segment i.e. Plastic film.

Segment information has been provided in the Consolidated Financial Statements of the Company and therefore, no separate disclosure on segment information is given in these standalone financial statements.

B. National Pension Fund

Contribution to National Pension Fund (NPS) debited to Statement of Profit & Loss amounts to H 77.04 Lakh (Previous Year: H 101.72 Lakh)

C. Defined Benefit Obligations (Gratuity)

The employees’ Gratuity Scheme is managed by Life Insurance Corporation of India. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes 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.

D. Other Long Term Employee benefits:

Leave Encashment: The Company has provided for its liability towards Leave encashment, based on the actuarial valuation

Sick Leave: The Company has provided for its Sick leave liability based on the actuarial valuation. The Outstanding liability as on March 31, 2023 and March 31, 2022 - H 197.10 Lakh, and H 192.08 Lakh respectively. The Company had recognized H 5.02 Lakh as an expense during the FY - 2022-23. (Previous Year: H 1.04 Lakh)

E. Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed

to various risks as follow -

A. Salary Increases - Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B. Investment Risk - If Plan is funded then the mismatch between assets and liabilities and actual return on assets being lower than the discount rate assumed at the last valuation date can impact the liability.

C. Discount rate - Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D. Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E. Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

c. Terms & conditions of transactions with Related Parties

The sales to and purchases from related parties, including rendering / availing of service, are made on terms equivalent to those that prevail at arm’s length transactions. The outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided to or received for any related party receivable or payables. The Company has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended March 31, 2023 and March 31, 2022 other than that stated above.

c. Import duty obligations on outstanding export commitment under Advance License amounts to H 151.95 Lakh (Previous Year: H 69.62 Lakh)

Note 46: Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of H 619.53 Lakh (Previous Year: H 98.74 Lakh)) amounts to H 1,173.30 Lakh (Previous Year: H 438.89 Lakh).

Note 47: Research and Development

The revenue expenditure of H 581.33 Lakh (Previous Year: H 1,018.09 Lakh) and capital expenditure of H Nil (Previous Year: H Nil) on Research & Development are charged to the respective heads of account.

Note 48: Capital Work-in-Progress includes:

Capital work in progress includes equipment not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit and other pre-operative expenses pending allocation / capitalization. Preoperative expenses pending allocation / capitalization are:

Note 51: Corporate Social Responsibility:

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are specified in Schedule VII of the Companies Act, 2013. During the current financial year, Company met its current and brought forward CSR obligations as detailed below:

e. Reason for Unspent CSR Amount

Company has been able to spend the requisite amount of CSR obligation during the year except a sum of H 24.44 Lakh pertaining to Financial Year 2022-23 in respect of one ‘Ongoing Project’. This amount has been deposited in unspent CSR Account.

The reason for not getting this amount spent during the Financial Year itself is because of unavailability of firm proposal and its recommendation from Chikitsa Prabandhan Samiti.

f. The Company does not have any outstanding lease restrictions and commitment towards variable rent as per the contract. Also the Company does not have lease term extension options which are not reflected in the measurement of lease liabilities.

B. As a Lessor

a. Lease contracts entered by the company majorly pertain for plots of building given on lease to companies for conducting their business.

b. The Company has managed risk associated with the rights in leased assets given by incorporating covenants in agreement like indemnification of occurrence of losses due to action of lessees.

b. The Company has not traded or invested in Crypto currency or Virtual Currency during the financial year.

c. The Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) 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

(ii) Provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

d. The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) 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

(ii) Provide any Guarantee, Security, or the like to or on behalf of the Ultimate Beneficiaries.

e. The Company is in compliance with the number of layers prescribed under clause (87) of section 2 of the Companies Act, 2013 read with the Companies (Restriction on number of Layers) Rules, 2017 (as amended).

f. The Company does not have any such 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).

g. The Company has been sanctioned working capital limit in excess of H 500 Lakh, in aggregate, at points of time during the year, from bank or financial institutions on the basis of security of current assets. The quarterly returns/ statements filed by the company with the bank or financial institutions, are in agreement with the books of accounts of the company of the respective quarters.

h. The Company has not been declared willful defaulter by any Bank or any other Financial Institution at any time during the financial year.

i. The company has utilized the borrowings from banks and financial institutions for the specific purpose for which these were taken during the financial year.

Note: 1: Corporate information

Polyplex Corporation Limited (“PCL”) is a public limited company incorporated and domiciled in India and its shares are publicly traded on the National Stock Exchange (‘NSE’) and the Bombay Stock Exchange (‘BSE’), in India. The registered office of the company is situated at Lohia Head Road, Khatima-262308 Distt. Udham Singh Nagar, Uttarakhand.

The Company is principally engaged in the manufacturing of plastic films. The company has two manufacturing plants located in India at Khatima and Bazpur both in state of Uttarakhand.

These standalone financial statements were approved and adopted by board of directors of the Company in their meeting held on 30th May, 2018.

Note 2: Critical accounting judgements and key sources of estimation uncertainty

The preparation of standalone financial statements requires the use of accounting estimates which, by definition, will seldom equal the actual results. Management also needs to exercise judgement in applying the Company’s accounting policies.

This note provides an overview of the areas that involved a higher degree of judgement or complexity, and of items which are more likely to be materially adjusted due to estimates and assumptions turning out to be different than those originally assessed.

Estimates and judgements are continually evaluated. They are based on historical experience and other factors, including expectations of future events that may have a financial impact on the Company and that are believed to be reasonable under the circumstances.

(a) Key sources of estimation uncertainty

The following are the key assumptions concerning the future, and other key sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.

(i) Fair value measurements and valuation processes

Some of the Company’s assets and liabilities are measured at fair value for financial reporting purposes. When the fair values of these assets and liabilities cannot be measured based on quoted prices in active markets, their fair value is measured using valuation techniques by engaging third party qualified external valuers or internal valuation team to perform the valuation. The inputs to these models are taken from observable markets where possible, but where this is not feasible, a degree of judgement is required in establishing fair values. Judgements include considerations of inputs such as liquidity risk, credit risk and volatility. Changes in assumptions about these factors could affect the reported fair value of financial instruments.

(ii) Employee benefit plans

The cost of the defined benefit plans and other long term employee benefits and the present value of the obligation thereon are determined using actuarial valuations. An actuarial valuation involves making various assumptions that may differ from actual developments in the future. These include the determination of the discount rate, future salary increases, and mortality rates. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

The parameter most subject to change is the discount rate. In determining the appropriate discount rate for plans, the management considers the interest rates of government bonds. Future salary increases are based on expected future inflation rates and expected salary trends in the industry. Attrition rates are considered based on past observable data on employees leaving the services of the Company. The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at interval in response to demographic changes.

(iii) Provision for litigations and contingencies

The provision for litigations and contingencies are determined based on evaluation made by the management of the present obligation arising from past events the settlement of which is expected to result in outflow of resources embodying economic benefits, which involves judgements around estimating the ultimate outcome of such past events and measurement of the obligation amount.

(iv) Useful life and residual value of plant, property equipment, intangible assets & Investment Property

The useful life and residual value of plant, property equipment Investment Property and intangible assets are determined based on technical evaluation made by the management of the expected usage of the asset, the physical wear and tear and technical or commercial obsolescence of the asset.

(v) Income Taxes

Management judgment is required for the calculation of provision for income taxes and deferred tax assets and liabilities. The company reviews at each balance sheet date the carrying amount of deferred tax assets. The factors used in estimates may differ from actual outcome which could lead to significant adjustment to the amounts reported in the financial statements

(vi) Impairment of financial assets

The impairment provisions for financial assets are based on assumptions about risk of default and expected loss rates. The Company uses judgement in making assumption and selecting the inputs to the impairment calculation, based on Company’s past history, existing market conditions as well as forward estimate at the end of each reporting period.

(vii) Impairment of non-financial assets

In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.

In determining fair value less costs of disposal, recent market transactions are taken into account. If no such transactions can be identified, an appropriate valuation model is used. These calculations are corroborated by valuation multiples, quoted share prices for publicly traded companies or other available fair value indicators.

Notes

(i) The cost of inventories recognised as an expense during the year amounts to RS.92,893.34 Lacs (FY - 2016-17: RS.81,137.12 Lacs)

(ii) The cost of inventories recognised as an expense includes RS.80.00 Lacs, FY - 2016-17: RS.79.00 Lacs, FY - 2015-16: RS.241 Lacs in respect of written downs of inventory to net realizable value. Previous write-downs have been reversed as a result of increased sales prices.

(iii) The method of valuation of inventories has been stated in Note 2 (m)

(iv) For Security Clause, refer Note No. 21 and 24

Note:

(i) The above receivables include, receivables from Related Parties: RS.1,026.67 Lacs, FY - 2016-17: RS.1,719.43 Lacs, FY - 2015-16: Rs.1,568.64 Lacs

(ii) For Security Clause, refer Note No. 21 and 24

(iii) Refer Note No. 38

RIGHTS ATTACHED TO THE SHARES

The Company has only one class of Equity Shares of par value of RS.10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of equity shares held by the Equity Shareholders

In last five years there was no Bonus issue, buyback and / or issue of shares other than for cash considerations.

Securities Premium Reserve is credited when shares are issued at premium. It is utilized in accordance with the provisions of Act, to issue bonus shares, to provide for premium on redemption of shares, write-off equity related expenses like underwriting cost etc

General Reserve is created out of the profits earned by the Company by way of transfer from surplus in the statement of profit and loss. The Company can use this reserve for payment of dividend, issue of bonus shares and fully / partly paid-up equity shares

Note:

The amount that can be distributed as dividend by the company to its equity shareholders is determined based on financial statement of the Company and also considering requirements of the Companies Act, 2013.

Loans are secured as under:

Term Loans of RS.8,495.10 Lacs (FY 2016-17: RS.8,886.89 Lacs and FY 2015-16: RS.14,566.44 Lacs) are secured on a pari passu basis by hypothecation / equitable mortgage in respect of Company’s movable / immovable Fixed Assets at Khatima and Bazpur, both present and future.

Includes Prepaid Processig Fees of RS.73.28 Lacs, (FY 2016-17: RS.192.17 Lacs and FY 2015-16: RS.315.57 Lacs)

Refer Note No. 38

@ In FY 2018-19: RS.500.00 Lacs for first two quarter & Balance RS.765.45 Lacs in 3rd quarter.

Long term borrowings in foreign currency, interest rates range from Euribor / Libor spread of 100 - 300 bps. For rupee denominated long term loans taken during the year interest rate is at 7.50% to 8.50%

Default in repayment of Principal and Interest: Rs. Nil.

Note:

The Company has recognized grant in respect of duty paid on procurement of capital goods under EPCG scheme of Central Government which allows refund in the form of freely transferable duty credit scrips of the duty paid upon meeting of specific export obligations. The Company expects to meet its export obligations in future years. During the year, an amount of RS.97.39 Lacs (FY 2016-17: RS.160.45 Lacs) was released from deferred income to the statement of profit and loss on fulfillment of export obligations.

Capital and State Investment Subsidy Grants relating to property, plant and equipment relates to cash incentive received from Government for setting up industies in specified area. During the year, an amount of RS.6.67 Lacs (FY 2016-17: RS.6.67 Lacs) was released from deferred income to the statement of profit and loss

* Short Term Borrowing in the form of Working Capital Loans & Buyer’s Credit from Banks aggregating to RS.6,781.08 Lacs (FY 2016-17: RS.10,797.34 and FY 2015-16: RS.3,366.98 Lacs) are secured / to be secured by way of hypothecation of inventories, book debts and other current assets both present and future, and second charge on company’s movable & immovable Fixed Assets both present and future at Khatima and Bazpur

Short term borrowings in foreign currency, interest rates range from Euribor / Libor spread of 40 - 300 bps. For rupee denominated short term loans taken during the year interest rate is at 8.00% to 11.00% Refer Note No. 38

Goods and Service Tax (GST) has been effective from July 01, 2017. Consequently, excise duty, value added tax (VAT), Service tax etc. have been replaced with GST. Until June 30, 2017, ‘Sale of products’ included the amount of excise duty recovered on sales. With effect from July 01, 2017, ‘Sale of products’ excludes the amount of GST recovered. Accordingly, revenue from ‘Sale of Products’ and ‘Revenue from operations’ for the year ended March 31, 2018 are not comparable with those of the previous year.

Note: 3 Financial Risk Management, Objectives and Policies: A. Financial Risk Framework:

The Company is exposed to credit risk, liquidity risk and market risk. The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework.

The Company’s risk management policies are established to identify and analyze the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The Company’s audit committee oversees how management monitors compliance with the Company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

a. Market risk:

Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: Currency Rate Risk, Interest Rate Risk and other Price Risks, such as Commodity Risk. The Company enters into the derivative contracts as approved by the Board to manage its exposure to interest rate risk and foreign currency risk.

i. Foreign Currency Risk:

Foreign Currency risk is the risk that the fair value or future cash flows of an exposure will fluctuate because of changes in foreign exchange rates. The Company has obtained foreign currency borrowings and has foreign currency trade payables and receivables and is therefore, exposed to foreign exchange risk. The foreign currency risk exposure of the Company is mainly in U.S. Dollar (USD) and Euro (EUR). The Company’s exposure to foreign currency changes for all other currencies is not material.

The Company uses derivative financial instruments to reduce foreign exchange risk exposures and follows its risk management policies to mitigate the same. After taking cognizance of the natural hedge, the company takes appropriate hedges to mitigate its risk resulting from fluctuations in foreign currency exchange rate(s).

Note: This is mainly attributable to the exposure outstanding on foreign currency receivables and payables in the Company at the end of the reporting period. The assumed movement in exchange rate sensitivity analysis is based on the currently observable market environment.

Derivative financial instruments

The Company uses foreign currency forward and Interest rate swap contracts to manage some of its transactions exposure.

Forward Contracts

The Company has foreign currency sale and purchase forward contracts to offset the risk of currency fluctuations. These contracts are for settlement of operational receivable and payable. The Details of outstanding contracts as follow:

ii. Interest Rate Risk:

Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Company’s main interest rate risk arises from working capital and long term borrowings. Company’s investments are primarily in fixed deposits which are short term in nature and do not expose to interest rate risk. The risk is managed by the Company by maintaining an appropriate mix between fixed and floating rate borrowings, and by the use of interest rate swap contracts. Hedging activities are evaluated regularly to align with interest rate views and defined risk appetite, ensuring the most cost-effective hedging strategies are applied.

Exposure to Interest rate risk:

The Interest rate profile of the Company’s interest bearing financial instruments as reported to management of Company is as follows:

Sensitivity Analysis:

An increase / decrease of 50 basis points at the reporting date would have increased / decreased the Profit before Tax as shown below. This analysis assumes that all other variants remain constant.

iii. Commodity price risk:

The main raw materials which company procures are global commodities and their prices are to a great extent linked to the movement of crude prices directly or indirectly and any adverse fluctuation in the raw material cost can impact the Company’s operating margins depending upon the ability of the Company to pass on the increase in costs to its customers. As selling prices are usually negotiated on a monthly / quarterly basis, in a balanced demand supply situation, the Company is able to adjust the selling prices following any changes in the raw material and other operating costs.

b. Credit risk

Credit risk refers to risk that counterparty will default on its contractual obligations resulting in financial loss to the company. Credit risk arises primarily from financial assets such as trade receivables, investment in mutual funds, derivative financial instruments, other balances with banks, loans and other receivables.

For credit risk exposures, Refer Note No. 7-8, 12-16 of the financial statements.

i. Trade Receivable:

The Company extends credit to customers in normal course of business. The Company considers factors such as credit track record in the market and past dealings for extension of credit to customers. The company has a well-defined and robust internal credit management system to monitor unsecured sales. A strong internal credit risk management policy has enabled the company to manage credit risk prudently even when credit risk were high. Credit guarantee insurance is also obtained wherever required. Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentration of credit risk. No single customer accounted for 10% or more of revenue in any of the years indicated.

To manage trade receivables, the Company periodically assesses the financial reliability of customers, taking into account the financial conditions, economic trends, analysis of historical bad debts and aging of such receivables. ECL is determined with reference to historically observed default rates over the expected life of the trade receivables and is adjusted for forward looking estimates. At each reporting date, the historically observed default rates and changes in the forward-looking estimates are updated. A default on financial assets is when a counter party fails to make the payment within 365 days, when they fall due. This definition of default is determined by considering the business environment in which the entity operates and other macro-economic factors.

The Ageing of trade receivables and allowances for doubtful debts are given below:

Financial assets are written off when there is no reasonable expectation of recovery. Whereas the loans and receivables are written off and subsequently recoveries are made, these are recognised as an income in the financial statements

ii. Financial assets to which loss allowances measured using 12 months expected credit loss:

For financial assets (other than trade receivables)which are not measured fair value through Profit and Loss account, expected credit losses are measured at an amount equal to the 12-month ECL, unless there has been a significant increase in credit risk from initial recognition in which case those are measured at lifetime ECL. The Company does not have any expected credit loss on financial assets which are measured on 12 month ECL and also has not observed any significant increase in credit risk since initial recognition of the financial assets.

Cash and Cash Equivalents, Deposit with Banks:

Credit risk on cash and cash equivalents and deposit with banks is limited as the Company generally invests in deposits with banks and financial institutions with high credit ratings assigned by international and domestic credit rating agencies.

Derivatives (Forward Contracts):

Derivatives are entered with banks, counter parties which have low credit risk, based on external credit ratings of counter parties. For other financial assets the company monitors ratings, credit spreads and financial strengths of its counterparties. Based on its ongoing assessment of the counter party’s risk, the company adjusts its exposures to various counter parties. Based on the assessment there is no impairment in other financial assets.

c. Liquidity risk:

Liquidity risk is the risk, where the company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The company’s approach is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when due. The Company manages the liquidity risk by maintaining adequate funds in cash and cash equivalents. The Company also has adequate credit facilities agreed with banks to ensure that there is sufficient cash to meet all its normal operating commitments in a timely and cost-effective manner.

The table below analyses the Company’s financial liabilities into relevant maturity groupings based on their contractual maturities.

B. Capital risk management

The Company manages its capital structure and makes adjustments in light of changes in economic conditions and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders or issue new shares. The primary objective of the Company’s capital management is to maximize the shareholder value. The Company’s primary objective when managing capital is to ensure that it maintains an efficient capital structure and healthy capital ratios and safeguard the Company’s ability to continue as a going concern in order to support its business and provide maximum returns for shareholders. The Company also proposes to maintain an optimal capital structure to reduce the cost of capital.

For the purpose of the Company’s capital management, capital includes issued equity share capital, share premium and all other equity reserves. Debt includes, interest bearing loans and borrowings, trade payables and other financial liability.

The Company monitors capital using Debt-Equity Ratio, which is debt divided by Total Equity.

The ratios at March 31, 2018, March 31, 2017 and April 1, 2016 were as follows:

The Accounting Policy for fair value has been defined in Note 2(v) financial statements.

Valuation process and technique used to determine fair value:

Derivative contracts: The Company has entered into various foreign currency contracts and interest rate swaps contracts to manage its exposure to fluctuations in foreign exchange rates and interest rate respectively. These financial exposures are managed in accordance with the Company’s risk management policies and procedures. Fair value of derivative financial instruments are determined using valuation techniques based on information derived from observable market data, i.e., mark to market values determined by the Authorized Dealers Banks.

c. Fair Value of Financial Instrument measured at amortized Cost:

The carrying amount of financial assets and financial liabilities measured at amortized cost in the financial statements are a reasonable approximation of their fair values since the Company does not anticipate that the carrying amounts would be significantly different from the values that would eventually be received or settled.

Long-term variable-rate borrowings measured at amortized cost are evaluated by the Company based on parameters such as interest rates, specific country risk factors, credit risk and other risk characteristics. Fair value of variable interest rate borrowings approximates their carrying values. Risk of other factors for the company is considered to be insignificant in valuation.

Note: 4 Segment Information

Segment information, as required under IND-AS-108 “Operating Segment”, has been provided in the consolidated financial statements of the Company and therefore, no separate disclosure on segment information is given in these standalone financial statements.

Note: 5 Employee Benefits (IND-AS 19)

a. Defined Contribution Plan

Contribution to Defined Contribution Plan recognised and charged off / debited to Statement of Profit & Loss are as under:

b. Defined Benefit Obligations (Gratuity):

The employees’ Gratuity Scheme is managed by Life Insurance Company Limited. The present value of obligation is determined based on actuarial valuation using the Projected Unit credit Method, which recognizes 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.

c. Other Long Term Employee benefits:

Leave Encashment: The Company has provided for its Liability towards Leave encashment, based on the actuarial valuation

d. The disclosures required under IND-AS 19 “Employee Benefits” notified in the Companies (Indian Accounting Standards) Rules, 2015 are as given below:

The estimates of future salary increase, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. Same assumptions were considered for comparitive period i.e. 2016-17 as considered in previous GAAP on transition to IND-AS

e. Sick Leave:

The Company has provided for its Sick Leave liability based on the actuarial valuation. The Outstanding liability as on March 31, 2018, March 31, 2017 and April 1 2016 - RS.114.77 Lacs, RS.97.31 Lacs and RS.91.31 Lacs respectively.

f. Description of Risk Exposures:

Valuations are based on certain assumptions, which are dynamic in nature and vary over time. As such company is exposed to various risks as follow -

A. Salary Increases - Actual salary increases will increase the Plan’s liability. Increase in salary increase rate assumption in future valuations will also increase the liability.

B. Investment Risk - If Plan is funded then the mismatch between assets and liabilities and actual return on assets being lower than the discount rate assumed at the last valuation date can impact the liability.

C. Discount rate - Reduction in discount rate in subsequent valuations can increase the plan’s liability.

D. Mortality & disability - Actual deaths & disability cases proving lower or higher than assumed in the valuation can impact the liabilities.

E. Withdrawals - Actual withdrawals proving higher or lower than assumed withdrawals and change of withdrawal rates at subsequent valuations can impact Plan’s liability.

Note: 6 Related Party Transaction

a. Parties where control exists Subsidiary / Step down Subsidiaries

i) Polyplex (Asia) Pte. Limited (PAPL)

ii) PAR LLC USA (PAR LLC)

iii) Polyplex (Thailand) Public Co Limited (PTL)

iv) Polyplex (Singapore) Pte. Limited (PSPL)

v) Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S. (PE)

vi) Polyplex USA LLC (PU)

vii) Polyplex Trading (Shenzhen) Co. Ltd. (PTSL)

viii) Polyplex America Holdings Inc. (PAH)

ix) EcoBlue Ltd. (EL)

x) Peninsula Beverages and Food Company Pvt. Ltd. (PBF), upto February 13, 2017

xi) Polyplex Europe B. V. (PEBV)

xii) Polyplex Paketleme Qozumleri Sanayi Ve Ticaret A.S. (PPC)

xiii) PT Polyplex Films Indonesia, incorporated during the year on October 11, 2017

b. Other related parties with whom transactions have taken place during the year Key Management Personnel (KMP)

i) Mr. Sanjiv Saraf (Chairman)

ii) Mr. Pranay Kothari (Executive Director)

iii) Mr. Brij Kishore Soni*

iv) Mr. Jitender Balakrishnan*

v) Ms. Pooja Haldea*

vi) Mr. Ranjit Singh*

vii) Mr. Sanjiv Chadha^A

viii) Dr. Suresh Inderchand Surana*

ix) Mr. Ashok Kumar Gurnani (Company Secretary)

x) Mr. Manish Gupta (Chief Financial Officer) independent Directors

^A Non-Executive Director

Relative of Key Management Personnel

a. Ms. Ritu Kothari

c. Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

i) Beehive Systems Private Limited

ii) Manupatra Information Solutions Private Limited

iii) Altivolus Infotech Private Limited

iv) Dalhousie Villa Private Limited

v) Bhilangana Hydro Power Limited

vi) Kotla Hydro Power Private Limited

vii) Punjab Hydro Power Private Limited

viii) Abohar Power Generation Private Limited

ix) Kanchanjunga Power Company Private Limited

x) Utkarsh Trading and Holdings Limited

xi) Suresh Surana & Associates, LLP

xii) RSM Astute Consulting Private Limited

xiii) Praxis Consulting & Information Services Private Limited

xiv) S. D. College Society (Lahore), New Delhi

e. Terms & conditions of transactions with Related Parties

The sales to and purchases from related parties, including rendering / availing of service, are made on terms equivalent to those that prevail in arm’s length transactions. The outstanding balances at the year-end are unsecured and settlement occurs in cash. There have been no guarantees provided to or received for any related party receivable or payables. The Company has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended 31st March 2018 and 31st March 2017 other than that stated above.

Note: 7 Contingent Liabilities not provided for and other commitments, in respect of:

a. Disputed matters under litigation:

* Amount deposited RS.3.62 Lacs (March 31, 2017: RS.9.22 Lacs; April 1, 2016: RS.9.69 Lacs)

** Amount deposited RS.23.84 Lacs (March 31, 2017: RS.22.68 Lacs; April 1, 2016: RS.21.55 Lacs)

b. Guarantees:

c. The Company has recognized grant in respect of duty paid on procurement of capital goods under EPCG scheme of Central Government which allows refund in the form of freely transferable duty credit scrips of the duty paid upon meeting of specific export obligations. The Company expects to meet its export obligations in future years. Export obligation as on March 31, 2018, March 31, 2017 and April 1 2016 - RS.1,060.61 Lacs, RS.959.45 Lacs and RS.706.23 Lacs respectively.

Note: 8 Capital Commitments

Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of RS.1,329.84 Lacs (Previous Year: RS.71.00 Lacs)) amounts to RS.2,726.12 Lacs (Previous Year: RS.200.58 Lacs).

Note: 9 Research and Development

The revenue expenditure of RS.437.85 Lacs (Previous Year: RS.395.05 Lacs) and capital expenditure of Rs. Nil (Previous Year: Rs. Nil) on Research & Development are charged to the respective heads of account.

Note: 10 Capital Work-in-Progress includes:

Capital work in progress includes equipment not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are:

Note: 11 The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006

The information regarding Micro, Small and Medium enterprises have been determined to the extent such parties have been identified on the basis of information available with the company:

Note: 12 Corporate Social Responsibility:

As per Section 135 of the Companies Act, 2013, a company, meeting the applicability threshold, needs to spend at least 2% of its average net profit for the immediately preceding three financial years on corporate social responsibility (CSR) activities. The areas for CSR activities are eradication of hunger and malnutrition, promoting education, art and culture, healthcare, destitute care and rehabilitation, environment sustainability, disaster relief and rural development projects. A CSR committee has been formed by the Company as per the Act. The funds were primarily allocated to a corpus and utilized through the year on these activities which are specified in Schedule VII of the Companies Act, 2013.

Note: 13

Company has entered into operating lease agreement for a premise. Lease is non-cancellable for a period of three years and renewable thereafter on mutually agreed terms.

Note: 14 I. Disclosure pursuant to regulation 34(3) & 53(F) of SEBI (LODR) Regulations, 2015

II. Advances recoverable in cash or in kind under Loans & Advances (Note 18) include Rs. Nil (Balance as at March 31, 2017: Rs. Nil, April 1, 2016: Rs. Nil) due from the Officer / Director. Maximum amount due during financial year ended March 31, 2018: RS.10.00 Lacs (Financial year ended March 31, 2017: RS.37.00 Lacs and Financial Year ended April 1, 2016: RS.7.15 Lacs).

III. Details of Investment made / Loan Given under section 186(4) of the Companies Act, 2016:

1. Investment in Equity Shares:

* Ceased to be Subsidiary w.e.f. February 13, 2017

2. Details of investment made are given in Note-7 of financial statements.

3. Detail of Loan Given by the company are as under:

IV. During the year 2016-17 the Company had purchased 98,74,555 Nos of equity shares of Peninsula Beverages and Foods Company Private Limited (PBF) from wholly owned subsidiary - Polyplex (Asia) Pte. Limited and had also converted Company’s loan of RS.950 Lacs into 95,00,000 Nos of equity shares of PBF. PBF has ceased to be subsidiary of the Company w.e.f. February 13, 2017.

Note: 15 Recent accounting pronouncements

Appendix B to IND-AS 21, Foreign currency transactions and advance consideration:

On March 28, 2018, Ministry of Corporate Affairs (“MCA”) has notified the Companies (Indian Accounting Standards) Amendment Rules, 2018 containing Appendix B to IND-AS 21, Foreign currency transactions and advance consideration which clarifies the date of the transaction for the purpose of determining the exchange rate to use on initial recognition of the related asset, expense or income, when an entity has received or paid advance consideration in a foreign currency.

The amendment will come into force from 1 April 2018. The Company is evaluating the requirement of the amendment and the impact on the financial statements. The effect on adoption of IND-AS 21 is expected to be insignificant.”

IND-AS 115

In March 2018, the Ministry of Corporate Affairs has notified the Companies (Indian Accounting Standards) Amended Rules, 2018 (“amended rules”). As per the amended rules, IND-AS 115 “Revenue from contracts with customers” supersedes IND-AS 11, “Construction contracts” and IND-AS 18, “Revenue” and is applicable for all accounting periods commencing on or after 1 April 2018.

IND-AS 115 introduces a new framework of five step model for the analysis of revenue transactions. The model specifies that revenue should be recognised when (or as) an entity transfer control of goods or services to a customer at the amount to which the entity expects to be entitled. Further the new standard requires enhanced disclosures about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts with customers.

The new revenue standard is applicable to the Company from 1 April 2018.

The standard permits two possible methods of transition:

- Retrospective approach - Under this approach the standard will be applied retrospectively to each prior reporting period presented in accordance with IND-AS 8 Accounting Policies, Changes in Accounting Estimates and Errors

- Retrospectively with cumulative effect of initially applying the standard recognized at the date of initial application (Cumulative catch - up approach)

The Company is evaluating the requirement of the amendment and the impact on the financial statements. The effect on adoption of IND-AS 115 is expected to be insignificant.

Note: 16 Events occurring after the Balance Sheet Date:

There are no events occurring after the balance sheet date for the financial year 2017-18.

Note: 17 First Time Adoption of IND-AS

As stated in Note 2, these are the Company’s first financial statements prepared in accordance with IND-AS

The accounting policies set out in Note 2 have been applied in preparing the financial statements for the year ended 31st March 2018, the comparative information presented in these financial statements for the year ended 31st March 2017 and in the preparation of an opening IND-AS statement of financial position at 1st April 2016 (the Company’s date of transition). In preparing its opening Ind AS statement of financial position, the Company has adjusted amounts reported previously in financial statements prepared in accordance with Indian GAAP (previous GAAP). An explanation of how the transition from previous GAAP to IND-AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and the notes that accompany the tables.

Exemptions and exceptions availed:

Set out below are the applicable IND-AS 101 optional exemptions and mandatory exceptions applied in the transition from previous GAAP to IND-AS.

A Ind AS optional exemptions:

(i) Investment Property & Intangible assets

Investment Property & Intangible assets

IND-AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its investment property as recognised in the financial statements as at the date of transition to IND-AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition after making necessary adjustments for de-commissioning liabilities. This exemption can also be used for intangible assets covered by IND-AS 38 Intangible Assets.

Accordingly, the Company has elected to measure all of its Investment property t and intangible assets at their previous GAAP carrying value.

(ii) Investment in subsidiaries, joint ventures and associate

IND-AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its investment in subsidiaries, joint ventures and associate as recognised in the financial statements as at the date of transition to IND-AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition.

Accordingly, the Company has elected to measure all of its investments in subsidiaries at their previous GAAP carrying value.

B. IND-AS mandatory exceptions

(i) Estimates

An entity’s estimates in accordance with IND-AS at the date of transition to IND-AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error.

IND-AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with IND-AS at the date of transition as these were not required under previous GAAP.

(ii) Classification and measurement of financial assets

IND-AS 101 requires an entity to assess classification of financial assets on the basis of facts and circumstances existing as on the date of transition. Further, the standard permits measurement of financial assets accounted at amortised cost based on facts and circumstances existing at the date of transition if retrospective application is impracticable. Accordingly, company has determined the classification of financial assets based on facts and circumstances that exist on the date of transition. Measurement of the financial assets accounted at amortised cost has been done retrospectively except where the same is impracticable.

(iii) Derecognition of financial assets and liabilities

As per IND-AS 101, an entity should apply the derecognition requirements in IND-AS 109, Financial Instruments, prospectively fortransactionsoccurringonorafterthedateoftransitiontoIND-AS.However,anentitymayapplythederecognitionrequirements retrospectively from a date chosen by it if the information needed to apply IND-AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The company has elected to apply the derecognition principles of IND-AS 109 prospectively.

(iv) Impairment of financial assets

An entity shall determine an approximate credit risk at the date when the financial instrument were initially recognised and compare that to the credit risk at the date of transition to IND-ASs. This should be based on reasonable and supportable information that is available without undue cost or effort. If the entity is unable to make this determination without undue cost or effort, it shall recognise a loss allowance at an amount equal to lifetime expected credit losses at each reporting date until that financial instrument is derecognised.

C. Reconcilliation of Equity

1 IND-AS 101 requires an entity to reconcile equity, total comprehensive income and cash flows for prior periods. The following tables represent the reconciliations from previous GAAP to Ind AS.

D Notes to first-time adoption:

1 Property Plant & Equipment

The Company has applied Ind AS 16 retrospectively for its property, plant and equipments, from the date of their acquisition. Under IND-AS, all foreign exchange transaction gains and losses are recorded in net income except to the extent these are treated as an adjustment to interest cost and considered for capitalization. Under Previous GAAP, foreign exchange gains and losses arising on foreign currency denominated borrowings that were incurred to acquire property, plant and equipment and intangible assets were recorded in the cost of the asset and depreciated over their remaining useful life. Under IND-AS, import duty waivers for capital assets purchased under Export Promotion Credit Guarantee (EPCG) schemes are recorded as deferred revenue and recognized in Statment of Profit and Loss on a systematic basis over the periods in which the related performance obligations are fulfilled. On the transition date, the Company, therefore, recorded an adjustment to measure such property, plant and equipment in accordance with IND-AS 16.

Under Previous GAAP, cost of the property, plant and equipment was recorded at the cash price paid to acquire such assets. Consequently, depreciation relating to the above differences in the cost of property, plant and equipment under IND-AS and Previous GAAP has also been adjusted.

2 Investment property

Under the previous GAAP, investment properties were presented under Property Plant & Equipment. Under IND-AS, investment properties are required to be separately presented on the face of the balance sheet. There is no impact on the total equity or loss as a result of this adjustment.

3 Leasehold Land:

Under Previous GAAP, land was scoped out from the purview of AS 19 Leases and hence leasehold land were capitalised by the Company forming part of fixed assets. IND-AS 17 Leases covers leasehold land in its scope. Leasehold land were, therefore, identified under finance leases and operating leases based upon the criteria specified in the accounting standard. Leasehold land, which are identified under operating leases, have been decapitalised from Property plant & equipment. As per IND-AS 17, Leasehold Land has now been classified as operating lease and the premium paid on leasehold land is amortized over the period of the lease.

4 Derivative Assets:

Under previous GAAP, derivative instruments entered into for hedging the foreign currency fluctuation risk were accounted for on the principles of prudence. Pursuant to this, losses, if any, on Mark to Market basis, were recognised and gains were not recognised. Under IND-AS, gains on derivative instruments have been measured at fair value through profit or loss and gains or losses are recognised in the statement of profit and loss

5 Proposed Dividend

Under IND-AS, dividends payable are recorded as a liability in the year in which these are declared and approved. Under Previous GAAP, dividends payable were recorded as a liability in the year to which they relate.

6 Prepaid Processing Fees

Under previous GAAP, transaction costs incurred in connection with borrowings are amortised over the period of borrowings. IND-AS 109 requires transaction costs incurred towards origination of borrowings to be deducted from the carrying amount of borrowings on initial recognition. These costs are recognised in profit or loss over the tenure of the borrowings as part of interest expense using effective interest rate method. Further, as per previous GAAP such unamortised amount was disclosed as prepaid assets which as per IND-AS now are netted off with the related borrowings.

7 Government Grant

Under previous GAAP, certain asset related grant were shown as a Capital Reserve. Ind AS requires an asset related grant to be presented in the balance sheet by setting up the grant as deferred income. Subsequently the income in relation to such grant is recognized in statement of profit and loss for the year ended March 31, 2017

8 Deferred tax

In the financial statements prepared under Previous GAAP, deferred tax was accounted as per the income statement approach which required creation of deferred tax asset/liability on temporary differences between taxable profit and accounting profit. Under IND-AS, deferred tax is accounted as per the Balance Sheet approach which requires creation of deferred tax asset/liability on temporary differences between the carrying amount of an asset / liability in the Balance Sheet and its corresponding tax base. The application of IND-AS has resulted in recognition of deferred tax on new temporary differences which were not required to be recognised under Previous GAAP.The (decreased) / increased in the deferred tax assets are on account of adjustments made on transition to IND-AS.

9 Remeasurements of post-employment benefit obligations

In the financial statements prepared under Previous GAAP, remeasurement benefit of defined plans (gratuity), arising primarily due to change in actuarial assumptions was recognised as employee benefits expense in the Statement of Profit and Loss. Under IND-AS, such remeasurement benefits relating to defined benefit plans is recognised in OCI as per the requirements of IND-AS 19- Employee benefits. Consequently, the related tax effect of the same has also been recognised in OCI.

10 Excise duty

Under the previous GAAP, revenue from sale of products was presented exclusive of excise duty. Under IND-AS, revenue from sale of goods is presented inclusive of excise duty. The excise duty paid is presented on the face of the statement of profit and loss as part of expenses. This change has resulted in an increase in total revenue and total expenses for the year ended March 31, 2017 by RS.5,008.17 Lacs. There is no impact on the total equity and profit.

11 MAT Credit

Under previous GAAP, MAT credit forms part of non-current assets which as per the requirements of IND-AS 12 has been shown as a part of deferred tax liabilities (net).

Provisions, Contingent Liabilities and Contingent Assets

A provision is made/ recognized, based on the management estimate required to settle the obligation at balance sheet date, when the Company has a present obligation as a result of past event and it is possible that an outflow embodying economic benefit will be required to settle the obligation. Contingent liabilities, if material, are disclosed by way of notes. Contingent assets are not recognized or disclosed in the Financial Statement.

RIGHTS ATTACHED TO THE SHARES

The Company has only one class of Equity Shares of par value of C10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of equity shares held by the Equity Shareholders.

In last five years there was no Bonus issue, buyback and / or issue of shares other than for cash considerations.

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of RS,71.00 Lacs (Previous Year: RS,354.77 Lacs)) amounts to RS,200.58 Lacs (Previous Year: RS,1,640.33 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:

ii. Guarantees given to the banks and others amounts to RS,563.15 Lacs (Previous Year: RS,678.61 Lacs).

iii. Bills discounted with banks: RS, Nil (Previous Year: RS, 422.12 Lacs).

iv. Custom duty saved amounting to RS,959.45 Lacs (Previous Year: RS,706.23 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

C. The revenue expenditure of RS,395.05 Lacs (Previous Year: RS,441.39 Lacs) and capital expenditure of C Nil (Previous Year: C Nil) on Research

& Development are charged to the respective heads of account.

D. i. As required by Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

ii. Balances of certain debtors, creditors, other liabilities, loans and advances are in the process of confirmation and / or reconciliation.

E. Capital work in progress includes equipments not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are: _in i ,,_c\

* Ceased to be Subsidiary w.e.f. February 13,2017

iii. During the year the Company had purchased 98,74,555 Nos of equity shares of Peninsula Beverages and Foods Company Private Limited (PBF) from wholly owned subsidiary - Polyplex (Asia) Pte. Limited and had also converted Company''s loan of RS,950 Lacs into 95,00,000 Numbers of equity shares of PBF. PBF has ceased to be subsidiary of the Company w.e.f. February 13, 2017.

ii. Exceptional Item for the year ended March 31, 2017 RS, Nil (Previous Year: RS,996 Lacs) represents provision towards outstanding balance of loan given to Peninsula Beverages & Foods Company Pvt Ltd.

iii. Advances recoverable in cash or in kind under Loans & Advances (Note 26 F) include RS, Nil (Previous Year: RS, Nil) due from the Officer / Director. Maximum amount due during the Year RS,37.00 Lacs (Previous Year: RS,7.15 Lacs).

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined plan. The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, which recognizes 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 recognized in the same manner as gratuity.

Q. As per Accounting Standard - 17 on Segment Reporting, segment information has been provided in Notes to Consolidated Financial Statements.

R. Related Party Disclosures (as identified by Management)

i. Parties where control exists

Subsidiary / Step down Subsidiaries a. Polyplex (Thailand) Public Co Limited (PTL)

b. Polyplex (Asia) Pte. Limited (PAPL)

c. Polyplex (Singapore) Pte. Limited (PSPL)

d. Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S. (PE)

e. Polyplex USA LLC (PU)

f. Polyplex Trading (Shenzhen) Co. Ltd. (PTSL)

g. PAR LLC USA (PAR LLC)

h. Polyplex America Holdings Inc (PAH)

i. EcoBlue Ltd. (EL)

j. Peninsula Beverages and Food Company Pvt Ltd. (PBF) upto February 13, 2017

k. Polyplex Europe B. V. (PEBV)

l. Polyplex Paketleme ^ozumleri Sanayi Ve Ticaret A.S. (PPC)

ii. Other related parties with whom transactions have taken place during the year Key Management Personnel (KMP) a. Mr. Sanjiv Saraf (Chairman)

b. Mr. Pranay Kothari (Executive Director)

c. Mr. Ashok Kumar Gurnani (Company Secretary)

d. Mr. Manish Gupta (Chief Financial Officer)

Relative of Key Management Personnel a. Ms. Ritu Kothari

Enterprises over which Key Management a. Beehive Systems Private Limited

^Personnel, ^{their relatives and ma}j^or b. Manupatra Information Solutions Private Limited

^{shareholders have si}g^{nificant influence:} c. Manupatra Publishing Private Limited

d. Altivolus Infotech Private Limited

e. Dalhousie Villa Private Limited

f. Bhilangana Hydro Power Limited

g. Kotla Hydro Power Private Limited

h. Punjab Hydro Power Private Limited

i. Abohar Power Generation Private Limited

j. Kanchanjunga Power Company Private Limited

k. Utkarsh Trading and Holdings Limited

l. Suresh Surana & Associates, LLP

m. RSM Astute Consulting Private Limited

n. Praxis Consulting & Information Services Private Limited

o. S. D. College Society (Lahore), New Delhi

S. Debtors over six months include overdue debtors aggregating to RS,31.95 Lacs (Previous Year: RS,31.95 Lacs) (net of provision of C Nil (Previous Year: Nil)) where Company has initiated legal or other necessary action for recovery.

T. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of Deemed Tax Credit Entitlement in respect of overseas subsidiary company of RS, Nil (Previous Year: RS,24.37 Lacs)

(ii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provisions has been considered necessary by the management.

U. Salary expenditure during previous year is higher because of one-time special incentive paid to certain employees.

V. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS - 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

X. Dividend proposed to be distributed for Equity Shareholders @ RS,4 / share amounting to RS, 1,539.85 Lacs (including Dividend Corporate Tax of RS,260.46 Lacs)

Y. Previous Year''s figures have been re-grouped/re-classified accordingly.

Z. Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in RS, Lacs with two decimals.

RIGHTS ATTACHED TO THE SHARES

The Company has only one class of Equity Shares of par value of '' 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of equity shares held by the Equity Shareholders.

ii. Bills discounted with banks Rs. 422.12 Lacs (Previous Year: '' Nil).

iii. Custom duty saved amounting to '' Rs. 706.23 Lacs (Previous Year: '' Rs. 2,639.24 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

iv. Guarantees given to the banks and others Rs.678.61 Lacs (Previous Year: Rs.790.88 Lacs), including Rs.Nil (Previous Year: Rs.2.00 Lacs) on behalf of other bodies corporate.

C. Export incentives amounting to Rs.1,727.65 Lacs (Previous Year:Rs.1,625.71 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumption Account.

D. The revenue expenditure of Rs.441.39 Lacs (Previous Year: Rs.256.28 Lacs) and capital expenditure of Rs.Nil (Previous Year: Rs.0.79 Lacs) on Research & Development are charged to the respective heads of account.

T. Remuneration paid / provided to Mr. Pranay Kothari, Whole Time Director for FY 2015-16 amounting to Rs.314.50 Lacs (including contribution to Superannuation fund and Provident fund) and does not include payment of Rs.1.97 Lacs and Rs.0.66 Lacs paid towards leave encashment and medical reimbursements as per the policy of company, in terms of the approval of the shareholders as per Special Resolution passed by the members on September 28,2015, exceeds the ceiling on Managerial Remuneration as per Section 197, read with Companies (Appointment & Remuneration of Managerial Personnel) Rules of the Companies Act, 2013 by Rs.172.89 Lacs, for which application for approval is pending with Ministry of Corporate Affairs, Government of India.

U. Debtors over six months include overdue debtors aggregating to Rs.31.95 Lacs (Previous Year: Rs.31.95 Lacs) (net of provision of Rs.Nil (Previous Year: Rs.Nil)) where Company has initiated legal or other necessary action for recovery.

V. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs.24.37 Lacs (Previous Year:Rs.Nil)

(ii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provisions has been considered necessary by the management.

W. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS - 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

X. Previous Year''s figures have been re-grouped/re-classified accordingly.

Y. Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs.Lacs with two decimals.

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs. 21.28 Lacs (Previous Year - Rs. 195.24 Lacs)) - Rs. 130.36 Lacs. (Previous Year - Rs. 1,777.82 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:



i. Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 103.36 113.15

Excise Duty & Customs Duty 29.14 29.14

Income Tax 382.46 232.67

Others 25.36 32.84

ii. Bills discounted with banks - Nil (Previous Year - Rs. Nil).

iii. Custom duty saved amounting to Rs. 2,639.24 Lacs (Previous Year - Rs. 1,513.89 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

iv. Guarantees given to the banks and others - Rs. 790.88 Lacs (Previous Year - Rs. 154.17 Lacs), including Rs. 2.00 Lacs (Previous Year - Rs. 2.00 Lacs) on behalf of other bodies corporate.

C. Export incentives amounting to Rs. 1,625.71 Lacs (Previous Year - Rs. 2,142.88 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumption Account.

D. The revenue expenditure of Rs. 256.28 Lacs (Previous Year - Rs. 243.65 Lacs) and capital expenditure of Rs. 0.79 Lacs (Previous Year - Rs. 0.03 Lacs) on Research & Development are charged to the respective heads of account.

ii. Balances of certain debtors, creditors, other liabilities, loans and advances are in the process of confirmation and / or reconciliation.

E. Capital work in progress includes equipments not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are:

F. As per Accounting Standard – 17 on Segment Reporting, segment information has been provided in Notes to Consolidated Financial Statements.

G. Related Party Disclosures (as identified by Management)

H. Parties where control exists :

Subsidiary / Step down Subsidiaries :

a. Polyplex (Thailand) Public Co Limited (PTL)

b. Polyplex (Asia) Pte. Limited (PAPL)

c. Polyplex (Singapore) Pte. Limited (PSPL)

d. Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S. (PE)

e. Polyplex USA LLC (PU)

f. Polyplex Trading (Shenzhen) Co. Ltd. (PTSL)

g. PAR LLC USA (PAR LLC)

h. Polyplex America Holdings Inc (PAH)

i. Polyplex Resins Sanayi Ve Ticaret A.S. (PR) upto March 02, 2015

j. EcoBlue Ltd. (EL)

k. Peninsula Beverages & Food Company Pvt Ltd. (PBF)

l. Polyplex Europa B. V. (PEBV)

m. Polyplex Paketleme Çozumleri Sanayi Ve Ticaret A.S. (PPC)

ii. Other related parties with whom transactions have taken place during the year :

Key Management Personnel (KMP) :

a. Mr. Sanjiv Saraf (Chairman)

b. Mr. Pranay Kothari (Executive Director)

c. Mr. Ashok Kumar Gurnani (Company Secretary)*

d. Mr. Manish Gupta (Chief Financial Officer)*

Relative of Key Management Personnel

a. Ms. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

a. Beehive Systems Private Limited

b. Manupatra Information Solutions Private Limited

c. Manupatra Publishing Private Limited

d. Altivolus Infotech Private Limited

e. Dalhousie Villa Private Limited

f. Bhilangana Hydro Power Limited

g. Kotla Hydro Power Private Limited

h. Punjab Hydro Power Private Limited

i. Abohar Power Generation Private Limited

j. Kanchanjunga Power Company Private Limited

k. Uttarakhand Hydro Power Private Limited

l. Utkarsh Trading and Holdings Limited*

m. Suresh Surana & Associates LLP*

n. RSM Astute Consulting Private Limited*

w.e.f. April 1, 2014 in accordance with Companies Act, 2013.

I. Remuneration paid / provided to Mr. Pranay Kothari, Whole Time Director for FY 2014-15 amounting to Rs. 207.60 Lacs (including contribution to Superannuation fund and Provident Fund) as per Special Resolution passed by the members on September 30, 2013, exceeds the ceiling on Managerial Remuneration as per Section 197, read with Companies (Appointment & Remuneration of Managerial Personnel) Rules of the Companies Act, 2013, for which application for waiver from Ministry of Corporate Affairs, Government of India is in process.

J. Debtors over six months include overdue debtors aggregating to Rs. 31.95 Lacs (Previous Year – Rs. 31.95 Lacs) (net of provision of Rs. Nil (Previous Year – Nil)) where Company has initiated legal or other necessary action for recovery.

K. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs. Nil (Previous Year – Rs. 35.62 Lacs)

ii) On reassessment of deferred tax, liability written back amounting to Rs. Nil (Previous Year – Rs. 782.74 Lacs)

(iii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provisions has been considered necessary by the management.

L. During the current year, the Company has computed the Depreciation based on useful life of the fixed assets as prescribed under Schedule II of the Companies Act 2013 and in case of certain assets useful life as assessed by independent technical evaluation carried out by external valuer. The company has decided to charge full amount of depreciation in respect of certain assets whose life have been expired (life as per the Schedule II) to Statement of Profit and Loss in line with option given in notification no. G.S.R. 627 (E) dated 29th August 2014 issued by Ministry of Corporate Affairs. Had there not been any change in the useful life of the Fixed Assets the Profit would have been higher by Rs. 979.87 Lacs for the year ended March 2015.

M. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS – 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

N. Previous Year's figures have been re-grouped/re- classified accordingly.

O. Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs. Lacs with two decimals

NOTE : 1

OTHER EXPLANATORY NOTES

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs. 195.24 Lacs (Previous Year - Rs. 207.42 Lacs) - Rs. 1,777.82 Lacs (Previous Year - Rs. 592.38 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:

i. Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 113.15 179.03

Excise Duty & Customs Duty 29.14 29.14

Income Tax 232.67 73.54

Others 32.84 30.05

ii. Bills discounted with banks - Nil (Previous Year - Rs. 142.69 Lacs).

iii. Custom duty saved amounting to Rs. 1,513.89 Lacs (Previous Year - Rs. 2,469.66 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

iv. Guarantees given to the banks and others - Rs. 154.17 Lacs (Previous Year - Rs. 361.97 Lacs), including Rs. 2.00 Lacs (Previous Year - Rs. 2.00 Lacs) on behalf of other bodies corporate.

C. Export incentives amounting to Rs. 2,142.88 Lacs (Previous Year - Rs. 2,392.23 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumption Account.

D. The revenue expenditure of Rs. 243.65 Lacs (Previous Year - Rs. 219.51 Lacs) and capital expenditure of Rs. 0.03 Lacs (Net) (Previous Year- Rs. 0.64 Lacs) on Research & Development are charged to the respective heads of account.

E. i. As required by section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

II. Balances of certain debtors, creditors, other liabilities, loans and advances are in the process of confirmation and / or reconciliation.

F. Capital work in progress includes equipments not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are:

H. (i) Disclosure pursuant to Clause 32 of Listing Agreement

(ii) Advances recoverable in cash or in kind under Loans & Advances (Note 26 G) include Nil (Previous Year – Rs. 5 Lacs) due from the Officer / Director. Maximum amount due during the Year Rs. 5.29 Lacs (Previous Year – Rs. 7.17 Lacs).

iii. The Company took certain option structure, forward and interest rate / currency swap contracts to cover the foreign exchange risk related with the import of Fixed Assets. During the year, Nil (Previous Year – loss (net) of Rs. 36.81 Lacs) on foreign exchange derivatives taken for payments to suppliers of imported capital goods and loss (net) of Rs. 103.78 Lacs (Previous Year – gain (net) of Rs. 0.56 Lacs) on mark to market on outstanding derivatives as on March 31, 2014 has been capitalized / shown as part of pre- operative expenses based on expert opinion, as the same is attributable to the Fixed Assets.

Defined Benefit Plan

The employees'' gratuity fund scheme managed by Life Insurance Corporation of India is a defined 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.

R. As per Accounting Standard – 17 on Segment Reporting, segment information has been provided in Notes to Consolidated Financial Statements.

S. Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related party Disclosures "are given below:

i. Parties where control exists :

Subsidiary / Step down Subsidiaries :

a. Polyplex (Thailand) Public Co. Limited (PTL)

b. Polyplex (Asia) Pte. Limited (PAPL)

c. Polyplex (Singapore) Pte. Limited (PSPL)

d. Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S.(PE)

e. Polyplex USA LLC (PU)

f. Polyplex Trading (Shenzhen) Co. Ltd. (PTSL)

g. PAR LLC USA (PAR LLC) h. Polyplex America Holdings Inc (PAH)

i. Polyplex Resins Sanayi Ve Ticaret A.S. (PR)

j. EcoBlue Ltd. (EL)

k. Peninsula Beverages & Foods Company Pvt. Ltd. (PBF)

l. Polyplex Europa B. V. (PEBV) w.e.f April 17, 2013

m. Polyplex Paketleme Çozumleri Sanayi Ve Ticaret A.S. (PPC) w.e.f September 11, 2013

ii. Other related parties with whom transactions have taken place during the year :

Key Management Personnel (KMP) :

a. Mr. Sanjiv Saraf (Chairman)

b. Mr. Pranay Kothari (Executive Director) Relative of Key Management Personnel :

a. Ms. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence :

a. Beehive Systems Private Limited

b. Manupatra Information Solutions Private Limited

c. Manupatra Publishing Private Limited

d. Altivolus Infotech Private Limited

e. Dalhousie Villa Private Limited

f. Bhilangana Hydro Power Limited

g. Kotla Hydro Power Private Limited

h. Punjab Hydro Power Private Limited

i. Abohar Power Generation Private Limited

j. Kanchanjunga Power Company Private Limited

T. In view of insufficiency / inadequacy of Profit for the Financial Year ended March 31, 2013, remuneration paid to Mr. Pranay Kothari, Whole Time Director amounting to Rs. 142.63 Lacs exceeded the ceiling on Managerial Remuneration as per Section 198, 269 read with Section 309 of the Companies Act, 1956, for which Company''s application is pending for approval of the Ministry of Corporate Affairs, Government of India.

Further, application for approval of remuneration payable to Mr. Pranay Kothari amounting to Rs. 208.24 Lacs as approved by the shareholders for the Financial Year 2013-14 is pending with the Ministry of Corporate Affairs, Government of India. Pending receipt of approval, remuneration of Rs. 122.24 Lacs, as permitted under Schedule XIII of Companies Act, 1956 have been paid / provided.

U. Debtors over six months include overdue debtors aggregating to Rs. 31.95 Lacs (Previous Year – Rs. 45 Lacs) (net of provision of Rs. Nil (Previous Year – Nil)) where Company has initiated legal or other necessary action for recovery.

V. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of

Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs. 35.62 Lacs (Previous Year – Rs. 39.32 Lacs)

(ii) On reassessment of deferred tax, liability written back amounting to Rs. 782.74 Lacs.

(iii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provision has been considered necessary by the management.

W. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS – 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

X. Previous Year''s figures have been re-grouped/re- classified accordingly.

Y. Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs. Lacs with two decimals.

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs.207.42 Lacs (Previous Year - Rs.132.71 Lacs) - Rs.592.38 Lacs. (Previous Year - Rs.589.17 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:

i. Disputed matters under litigation:

(Rs. in Lacs) Particulars Current previous Year Year

Sales Tax & Entry Tax 179.03 238.87

Excise Duty & Customs Duty 29.14 29.14

Income Tax 73.54 73.54 Others 30.05 18.75

ii. Bills discounted with banks - Rs.142.69 Lacs (Previous Year - Rs.871.86 Lacs).

iii. (a) Custom duty saved amounting to Rs.2,469.66 Lacs (Previous Year - Rs.2,765.16 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

(b) Import duty saved amounting to Rs.128.47 Lacs (Previous Year - Rs.162.43 Lacs) in respect of goods imported under advance license against which export obligation is pending to be fulfilled.

iv. Guarantees given to the banks and others - Rs.361.97 Lacs (Previous Year - Rs.428.97 Lacs), including Rs.2.00 Lacs (Previous Year - Rs.2.00 Lacs) on behalf of other bodies corporate.

C. Export incentives amounting to Rs.2,392.23 Lacs (Previous Year - Rs.1,284.59 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumption Account.

D. The revenue expenditure of Rs.232.80 Lacs (Previous Year – Rs.344.06 Lacs) and capital expenditure of Rs.0.64 Lacs (Previous Year – Rs.3.39 Lacs) on Research & Development has been debited to the respective heads of account.

E. Capital work in progress includes equipments not yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are:

F. Advances recoverable in cash or in kind under Loans & Advances (Note 26 G) include Rs.5 Lacs (Previous Year – Nil) due from an officer / director. Maximum amount due during the Year Rs.7.17 Lacs (Previous Year – Nil).

G. i. During the Current Year, Company has sold its holding of 25,000 nos. common stock in Polyplex (Americas) Inc. (PA) (representing 9.88% shareholding) having book value of Rs.44.54 Lacs to its subsidiary company Polyplex (Thailand) Public Co. Limited (PTL), which has resulted in profit of Rs.116.13 Lacs and the same is shown as exceptional income. Further, during the year, PTL has acquired non controlling stake in ''PA'' which subsequently has been merged into Polyplex USA LLC (PU) w.e.f. January 31, 2013.

ii. During the Previous Year, Company had retrospectively changed its method of providing depreciation on fixed assets pertaining to its plant at Khatima (Except Line 1) and Bajpur from Straight Line Method (SLM) to Written Down Value (WDV) Method, at the rates prescribed in Schedule XIV to the Companies Act, 1956. Accordingly, during the Previous Year, the Company has recorded an additional depreciation of Rs.7,078.80 Lacs in respect of earlier years as an exceptional item.

H. The Company has entered into operating lease agreement for a premise. Lease is non- cancellable for a period of six years and renewable thereafter on mutually agreed terms.

I. The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules, 2006, are given below:

J. As per Accounting Standard – 17 on Segment Reporting, segment information has been provided in Notes to Consolidated Financial Statements.

K. Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related Party Disclosures "are given below:

i. Parties where control exists:

Subsidiary/Step down Subsidiaries

a. Polyplex (Thailand) Public Co. Limited (PTL)

b. Polyplex (Asia) Pte. Limited (PAPL)

c. Polyplex (Singapore) Pte. Limited (PSPL)

d. Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S.(PE)

e. Polyplex USA LLC (PU)

f. Polyplex (Americas) Inc (PA) merged

with PU on January 31, 2013.

g. Polyplex Trading (Shenzhen) Co. Ltd. (PTSL)

h. PAR LLC USA (PAR LLC)

i. Polyplex America Holdings Inc. (PAH)

j. Polyplex Resins Sanayi Ve Ticaret A.S. (PR)

k. EcoBlue Ltd. w.e.f. October 1, 2012

l. Peninsula Beverages & Foods Company

Pvt. Ltd. w.e.f. February 6, 2013

ii. Other related parties with whom transactions have taken place during the year:

Key Management Personnel (KMP)

a. Shri Sanjiv Saraf (Chairman)

b. Shri Pranay Kothari (Executive Director)

c. Shri Ranjit Singh (Whole Time Director)

upto October 31, 2012.

Relative of Key Management Personnel

a. Smt. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

a. Beehive Systems Private Limited

b. Manupatra Information Solutions Private Limited

c. Manupatra Publishing Private Limited

d. Altivolus Infotech Private Limited

e. Dalhousie Villa Private Limited

f. Bhilangana Hydro Power Limited

g. Peninsula Beverages & Foods Company

Pvt. Ltd. upto February 5, 2013

L. In view of insufficiency / inadequacy of profits for the current financial year ended March 31, 2013, remuneration paid to Whole Time Directors exceeded the limit prescribed under provisions of Section 198, 269 read with Section 309 of the Companies Act 1956. Accordingly, Remuneration paid to Shri Pranay Kothari and Shri Ranjit Singh, Whole Time Directors amounting to Rs.289.57 Lacs is subject to the approval of the members (by way of Special Resolution), in the ensuing General Meeting, which includes Rs.142.63 Lacs in respect of Shri Pranay Kothari, Whole Time Director for which application for approval of the Ministry of Corporate Affairs, Government of India will be made in due course.

M. Trade Receivables over six months include overdue debts aggregating to Rs.45 Lacs (Previous Year – Nil) (net of provision of Rs.Nil (Previous Year – Nil)) where Company has initiated legal or other necessary action for recovery.

N. (i) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the management and is net of

Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs.39.32 Lacs (Previous Year – Rs.344.85 Lacs)

(ii) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provision has been considered necessary by the management.

O. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS – 28), the management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

P. Previous Year''s figures have been re-grouped/re- classified accordingly.

Q. Figures in the Balance Sheet, Profit & Loss Statement and Cash Flow Statement have been expressed in Rs. Lacs with two decimals.

NOTE 1 SHARE CAPITAL

RIGHTS ATTACHED TO THE SHARES

The Company has only one class of Equity Shares of par value of Rs. 10/- per share. Each holder of Equity Share is entitled to one vote per share. The Company declares and pays dividend in Indian Rupees. The dividend proposed by Board of Directors is subject to the approval of shareholders in ensuing Annual General Meeting.

In the event of liquidation of the Company, the holder of Equity Shares will be entitled to receive remaining assets of the Company after distribution of all preferential amount and the remaining balance is distributed in proportion to the number of Equity Shares held by the Equity Shareholders.

NOTE : 2

OTHER EXPLANATORY NOTES

A. Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs. 132.71 Lacs, Previous Year - Rs. 1,546.91 Lacs) - Rs. 589.17 Lacs. (Previous Year - Rs. 7,525.97 Lacs).

B. Contingent Liabilities not provided for and other commitments, in respect of:

I. Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 238.87 352.07

Excise Duty & Customs Duty 29.14 22.95

Income Tax 73.54 73.54

Others 18.75 20.71

II. Bills discounted with banks - Rs. 871.86 Lacs (Previous Year - Rs. 338.52 Lacs).

III. (i) Custom Duty saved amounting to Rs. 2,765.16 Lacs (Previous Year - Rs. 4,613.85 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

(ii) Import duty saved amounting to Rs. 162.43 Lacs (Previous Year - Nil) in respect of goods imported under advance license against which export obligation is pending to be fulfilled.

IV. Guarantees given to the banks and others - Rs. 428.97 Lacs (Previous Year - Rs. 340.30 Lacs), including Rs. 2.25 Lacs (Previous Year - Rs. 2.25 Lacs) on behalf of other bodies corporate.

A. Export incentives amounting to Rs. 1,284.59 Lacs (Previous Year - Rs. 1,189.55 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumed Account.

B. The expenditure of Rs. 400.80 Lacs (Previous Year - Rs. 266.79 Lacs) on Research & Development has been debited to the respective heads of account.

C. I. As required by Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

(Rs. in Lacs)

Sl. Particulars 2011-12 2010-11 No.

(a) (i) Principal amount remaining unpaid at the end of the accounting year - -

(ii) Interest due on above - -

(b) The amount of interest paid by the buyer along with amount of payment made to the suppliers beyond the appointed date - -

(c) The amount of interest accrued and remaining unpaid at the end of financial year - -

(d) The amount of interest due and payable for the period of delay in making payment (which have been paid but beyond the due date during the year) but without adding interest specified under this Act - -

(e) The amount of further interest due and payable in succeeding year, until such interest is actually paid - -

II. Balances of certain debtors, creditors, other liabilities, loans and advances are in the process of confirmation and/or reconciliation.

D. Capital work in progress includes equipment not yet installed, construction/erection material, construction/erection work in progress, machinery at site and/or in transit, advance to suppliers and other pre-operative expenses pending allocation/capitalization. Pre-operative expenses pending allocation/capitalization are:

E. Advances recoverable in cash or in kind under Loans & Advances (Note 26 G) include Rs. Nil (Previous Year - Nil) due from the officer/director. Maximum amount due during the year Rs. Nil (Previous Year - Rs. 0.25 Lacs).

F. During the Current Year, the Company has retrospectively changed its method of providing depreciation on fixed assets pertaining to its plant at Khatima (Except Line 1) and Bajpur from Straight Line Method (SLM) to Written Down Value (WDV) Method, at the rates prescribed in Schedule XIV to the Companies Act, 1956. This change will result in more appropriate basis of charging depreciation.

This change represents time and pattern in which the economic benefit flows to the Company. Accordingly, the Company has recorded an additional depreciation amounting to Rs. 7,078.80 Lacs related to earlier years which has been disclosed as an exceptional item and Rs. 3,602.82 Lacs as a additional charge for current year. The Profit After Tax (PAT) for Current Year would have been higher by Rs. 5,807.04 Lacs had the Company continued the use of earlier method of depreciation.

G. The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Contribution Plan

Contribution to Defined Contribution Plan recognised and charged off/debited to Statement of Profit & Loss/Pre-operative Expenses pending allocation are as under:

Defined Benefit Plan

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.

H. As per Accounting Standard-17 on Segment reporting, segment information has been provided in Notes to Consolidated Financial Statements.

I. Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related Party Disclosures" are given below:

J. Parties where control exists

Subsidiary/Step down Subsidiaries

- Polyplex (Thailand) Public Co. Limited

- Polyplex (Asia) Pte. Limited

- Polyplex (Singapore) Pte. Limited

- Polyplex Europa Polyester Film Sanayi Ve Ticaret A.S.

- Polyplex (Americas) Inc.

- Polyplex Trading (Shenzhen) Co. Limited

- PAR LLC USA (PAR LLC) w.e.f. May 06, 2011

- Polyplex America Holdings Inc. (PAH) w.e.f. July 18, 2011

- Polyplex USA LLC (PU) w.e.f. July 18, 2011

- Polyplex Resins Sanyi Ve Ticaret A.S. (PR) w.e.f. December 02, 2011

II. Other Related Parties with whom transactions have taken place during the year

Key Management Personnel (KMP)

- Shri Sanjiv Saraf (Chairman)

- Shri Pranay Kothari (Executive Director)

- Shri Ranjit Singh (Whole Time Director)

Relative of Key Management Personnel

- Smt. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

- Beehive Systems Private Limited

- Manupatra Information Solutions Private Limited

- Altivolus Infotech Private Limited

- Dalhousie Villa Private Limited

- Bhilangana Hydro Power Limited

K. Debtors over six months include overdue overseas debtors aggregating to Rs. Nil (Previous Year - Rs. Nil) net of provision of Rs. Nil (Previous Year - Nil) where Company has initiated legal or other necessary action for recovery.

L. (I) The provision for current income tax is after considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the Management and is net of Deemed Tax Credit Entitlement in respect of overseas subsidiary company of Rs. 344.85 Lacs.

(II) Income Tax assessment in respect of certain years is in process and for certain years some additions have been made. In respect of additions made/disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provision has been considered necessary by the Management.

M. In accordance with the provisions of Accounting Standard on Impairment of Assets (AS - 28), the Management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

N. Current Year accounts have been prepared in accordance with the revised Schedule-VI of the Companies Act, 1956 and Previous Year's figures have been re-grouped/re-classified accordingly.

O. Figures in the Balance Sheet, Profit & Loss Statement and Cash Flow Statement have been expressed in Rs. in Lacs with two decimals.

1) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs.1,546.91 Lacs, Previous Year – Rs.670.01 Lacs) – Rs.7,525.97 Lacs. (Previous Year – Rs.3,069.40 Lacs).

2) Contingent Liabilities not provided for, in respect of:

a) Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 352.07 283.9

Excise Duty & Customs Duty 22.95 22.95

Income Tax 73.54 73.54

Others 20.71 41.21

b) Bills discounted with banks – Rs.338.52 Lacs (Previous Year – Rs.19.36 Lacs).

c) (i) Custom duty saved amounting to

Rs.4,613.85 Lacs (Previous Year – Rs.6,429.39 Lacs) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

(ii) Import duty saved amounting to Rs.Nil

(Previous Year – Rs.97.68 Lacs) in respect of goods imported under Advance License against which export obligation is pending to be fulfilled.

d) Guarantees given to the banks and others - Rs.340.30 Lacs (Previous Year – Rs.17.50 Lacs), including Rs.2.25 Lacs (Previous Year – Rs.17.50 Lacs) on behalf of other bodies corporate.

3) Import duty benefit under Duty Entitlement Pass

Book (DEPB) Scheme and profit/loss on sale of DEPB aggregating to Rs.1,189.55 Lacs (Previous Year – Rs.105.70 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumed Account.

4) The expenditure of Rs.266.79 Lacs (Previous Year – Rs.213.90 Lacs) on Research & Development has been debited to the respective heads of account.

5) The Company's investment in the preference share capital of its subsidiary viz. Polyplex (Asia) Pte. Limited was redeemed during Financial Year 2009- 10 as per terms of the agreement at the allotted price and there was an exchange gain of Rs.4.03 Lacs (net) which was shown as exceptional item during the year ended 31st March, 2010.

6) Capital work in progress includes equipments not

yet installed, construction / erection material, construction / erection work in progress, machinery at site and / or in transit, advance to suppliers and other pre-operative expenses pending allocation / capitalization. Pre-operative expenses pending allocation / capitalization are :

7) Advances recoverable in cash or in kind under Loans & Advances (Schedule 9) include Rs. Nil (Previous Year – Rs.0.25 Lacs) due from an Officer /Director. Maximum amount due during the year Rs.0.25 Lacs (Previous Year – Rs.0.40 Lacs).

8) Company has entered into operating lease agreement for a premise. Lease is non- cancellable for a period of six years and renewable thereafter on mutually agreed terms.

9) The allottee / holder of 16,50,000 Nos. Warrants

issued by the Company on preferential basis on October 31, 2007, entitling them to exercise option to apply for equal number of equity shares at a price of Rs.152/- per share (including premium of Rs.142/-, 10% upfront amount paid in earlier year amounting to Rs.250.80 Lacs) did not exercise the option before the last date (as stipulated) i.e. April 30, 2009 and accordingly amount paid on stated warrants has been forfeited during year ended 31st March 2010.

(c) In accordance with the notification No. G.S.R. 225(E) dated 31st March 2009, issued by the Central

Government with regard to AS-11, the Company had exercised, the onetime option available, to adjust the exchange differences arising on long term foreign currency monetary items to the cost of depreciable capital assets in so far as it relates to the acquisition of such assets and in other cases, by transferring to the "Foreign Currency Monetary Item Translation Difference Account". Accordingly, the Company has carried over long term monetary exchange loss of Rs.Nil through "Foreign Currency Monetary Item Translation Difference Account" (Previous Year – Rs.18.11 Lacs), to be amortised over the balance period of such long term asset/liability but not beyond 31st March 2011. Further, the foreign exchange fluctuation loss of Rs.16.11 Lacs (Previous Year – gain of Rs.1,820.05 Lacs) taken in Pre operative expenditure on capital account has been taken to the cost of fixed assets.

(d) The Company took certain option structure, forward and interest rate / currency swap contracts to cover the foreign exchange risk related with the import of fixed assets. During the year, gain of Rs.233.92 Lacs (net) (Previous Year – gain of Rs.290.43 Lacs (net)) on foreign exchange derivatives taken for payments to suppliers of imported capital goods and loss of Rs.1.63 Lacs (Previous Year – loss of Rs.49.18 Lacs (net)) on mark to market on outstanding derivatives as on 31st March 2011 has been capitalized / shown as part of pre-operative expenses based on expert opinion, as the same is attributable to the fixed assets.

10) The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Benefit Plan

The employees' gratuity fund scheme managed by Life Insurance Corporation of India is a defined 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.

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 the actuary.

11) Segment Reporting:

i) The Company is in only one line of business namely Plastic Film.

ii) The Segment Revenue in the geographical segments considered for disclosure is as follows:

(a) Revenues inside India include sales to customers located within India.

(b) Revenues outside India include sales to customers located outside India.

12) Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related Party Disclosures" are given below:

A. Parties where control exists:

Subsidiary/Step down Subsidiaries:

– Polyplex (Thailand) Public Co Limited (PTL)

– Polyplex (Asia) Pte. Limited (PAPL)

– Polyplex (Singapore) Pte. Limited (PSPL)

– Polyplex Europa Polyester Film Sanayi

Ve Ticaret AS(PE)

– Polyplex (Americas) Inc. (PA)

– Polyplex Trading (Shenzhen) Co.

Limited (PTSL)

B. Other related parties with whom transactions have taken place during the year:

Key Management Personnel (KMP):

– Shri Sanjiv Saraf (Chairman)

– Shri Pranay Kothari (Executive Director)

– Shri Ranjit Singh (Whole Time Director)

Relative of Key Management Personnel:

– Smt. Ritu Kothari

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

– Beehive Systems Private Limited

– Manupatra Information Solutions Private Limited

– Altivolus Infotech Private Limited

– Dalhousie Villa Private Limited

– Bhilangana Hydro Power Limited

13) Debtors over six months include overdue overseas debtors aggregating to Rs.Nil (Previous Year – Rs.Nil) (net of provision of Rs.Nil (Previous Year – Rs.20.23 Lacs)) where Company has initiated legal or other necessary action for recovery.

14 (a) The provision for current income tax has been made considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by Management.

(b) Income Tax assessment in respect of certain years are in process and for certain years some additions have been made. In respect of additions made / disallowances, in some cases the Company has filed appeals with authorities, pending decisions no provisions has been considered necessary by the Management.

15) In accordance with the provisions of Accounting Standard on Impairment of Assets (AS – 28), the Management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

16) Current Year figures are not comparable with that of Previous Year due to startup of operations at Bazpur plant during Q4' 2009-10.

17) Figures for Previous Year have been regrouped and / or rearranged, wherever considered necessary to conform to the Current Year's classification.

18) Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs.Lacs with two decimals.

1) Estimated amount of contracts remaining to be executed on capital account and not provided for (Net of Advances of Rs.670.01 Lacs, Previous Year - Rs.6,244.09 Lacs) - Rs.3,069.40 Lacs. (Previous Year - Rs.19,811.56 Lacs).

2) Contingent Liabilities not provided for, in respect of:

a) Disputed matters under litigation:

(Rs. in Lacs)

Particulars Current Previous Year Year

Sales Tax & Entry Tax 283.90 283.74

Excise Duty & Customs Duty 22.95 22.95

Income Tax 73.54 73.54

Others 41.21 14.95

b) Bills discounted with banks - Rs.19.36 Lacs (Previous Year - Nil).

c) (i) Custom duty saved amounting to Rs.6,429.39 Lacs (Previous Year - Rs.1,627.82) in respect of import of machinery under Export Promotion Capital Goods (EPCG) Scheme against which export obligation is pending to be fulfilled.

(ii) Import duty saved amounting to Rs.97.68 Lacs (Previous Year - Rs.Nil) in respect of goods imported under advance license against which export obligation is pending to be fulfilled.

d) Guarantees given to the banks and others - Rs.17.50 Lacs (Previous Year - Rs.159.50 Lacs), including Rs.17.50 Lacs (Previous Year - Rs.17.50 Lacs) on behalf of other bodies corporate.

3) Import duty benefit under Duty Entitlement Pass Book (DEPB) Scheme and profit/loss on sale of DEPB aggregating to Rs.105.70 Lacs (Previous Year - Rs.126.98 Lacs) are accounted for on accrual basis and have been credited to Raw Materials Consumed Account

4) In the last quarter of the year, Company has commenced commercial production of BOPET film, BOPP film, Metalized film & PET Chips at its Bazpur facility in District: Udham Singh Nagar, Uttarakhand.

5) The Companys investment in the preference share capital of its subsidiary viz. Polyplex (Asia) Pte. Limited has been redeemed during the year as per terms of the agreement at the allotted price resulting exchange gain of Rs.4.03 Lacs (Previous Year – Nil) (net), which has been shown as exceptional item.

6) The expenditure on Research & Development has been debited to the respective heads of account since such expenses cannot be segregated in view of the peculiar nature of activities relating to such work.

7) (a) As required by Section 22 of The Micro, Small and Medium Enterprises Development Act, 2006 the following information is disclosed:

8) Capital work in progress includes equipments not yet installed, construction/erection material, construction/erection work in progress, machinery at site and/or in transit, advance to suppliers and other pre-operative expenses pending allocation/ capitalization. Pre-operative expenses pending allocation/capitalization are:

9) Advances recoverable in cash or in kind under Loans & Advances (Schedule 7) include Rs.0.25 Lacs (Previous Year - Nil) due from an Officer/ Director. Maximum amount due during the year Rs.0.40 Lacs (Previous Year - Rs.1.67 Lacs).

10) The allottee/holder of 16,50,000 Nos. Warrants issued by the Company on preferential basis on October 31, 2007, entitling them to exercise option to apply for equal number of equity shares at a price of Rs.152/- per share (including premium of Rs.142/-, 10% upfront amount paid in earlier year amounting to Rs.250.80 Lacs) did not exercise the option before the last date (as stipulated) i.e. April 30, 2009 and accordingly amount paid on stated warrants has been forfeited during the year.

11) During the previous year, the Company entered into operating lease agreement for a premise. Lease is non- cancellable for a period of six years and renewable thereafter on mutually agreed terms.

(c) In accordance with the notification, G.S.R. 225(E) dated 31st March 2009, issued by the Central Government with regard to AS-11, the Company had exercised, the onetime option available, to adjust the exchange differences arising on long term foreign currency monetary items to the cost of depreciable capital assets in so far as it relates to the acquisition of such assets and in other cases, by transferring to the “Foreign Currency Monetary Item Translation Difference Account”.

Accordingly, the Company has carried over long term monetary exchange loss of Rs.18.11 Lacs through “Foreign Currency Monetary Item Translation Difference Account” (Previous Year - Rs.252.99 Lacs), to be amortised over the balance period of such long term asset/liability but not beyond March 31, 2011. Further, the foreign exchange fluctuation gain of Rs.1,820.05 Lacs (Previous Year loss of Rs.553.85 Lacs taken in Pre operative expenditure) on capital account has been taken to the cost of fixed assets.

(d) The Company took certain option structure, forward and interest rate/currency swap contracts to cover the foreign exchange risk related with the import of fixed assets. During the year, gain (net) of Rs.290.43 Lacs (Previous Year loss of Rs.1,904.69 Lacs (net)) on foreign exchange derivatives taken for payments to suppliers of imported capital goods and loss of Rs.49.18 Lacs (Previous Year loss of Rs.245.61 Lacs (net)) on mark to market on outstanding derivatives as on March 31, 2010 has been capitalized/shown as part of pre-operative expenses based on expert opinion, as the same is attributable to the fixed assets.

12) The disclosures required under Accounting Standard 15 "Employee Benefits" notified in the Companies (Accounting Standards) Rules 2006, are given below:

Defined Contribution Plan

Contribution to Defined Contribution Plan recognised and charged off/debited to Profit and loss Account/Pre-operative Expenses pending allocation are as under:

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.

13) Segment Reporting:

i) The Company is in only one line of business namely Plastic Film.

ii) The Segment Revenue in the geographical segments considered for disclosure is as follows:

(a) Revenues inside India include sales to customers located within India.

(b) Revenues outside India include sales to customers located outside India.

14) Related Party Disclosures (as identified by Management)

Disclosures as required by AS-18, "Related Party Disclosures "are given below:

A. Parties where control exists:

Subsidiary/Step down Subsidiaries:

Polyplex (Thailand) Public Co Limited (PTL)

Polyplex (Asia) Pte. Limited (PAPL)

Polyplex (Singapore) Pte. Limited (PSPL)

Polyplex Europa Polyester Film San. Ve Tic A.S.(PE)

Polyplex (Americas) Inc. (PA)

Polyplex Trading (Shenzhen) Co. Limited (PTSL) (w.e.f. July 15, 2009)

B. Other related parties with whom transactions have taken place during the year:

Key Management Personnel:

Shri Sanjiv Saraf (Chairman)

Shri Pranay Kothari (Executive Director)

Shri Ranjit Singh (Whole Time Director)

Enterprises over which Key Management Personnel, their relatives and major shareholders have significant influence:

Beehive Systems Private Limited

Manupatra Information Solutions Private Limited

Altivolus Infotech Private Limited

Dalhousie Villa Private Limited

Bhilangana Hydro Power Limited

15) Debtors over six months include overdue overseas debtors aggregating to Nil (Previous Year - Rs.60.81 Lacs) (net of provision of Rs.20.23 Lacs (Previous Year - Rs.20.23 Lacs)) where Company has initiated legal or other necessary action for recovery.

16) (a) The provision for current income tax has been made considering various benefits and allowances available to the Company under the provisions of Income Tax Act, 1961, as assessed by the Management.

(b) Income Tax assessment in respect of certain years is in progress and for certain years some additions have been made. In respect of additions made/disallowances, in some cases the Company has filed appeals with Appellate Authorities, pending decisions no provisions has been considered necessary by the Management.

17) In accordance with the provisions of Accounting Standard on Impairment of Assets (AS-28), the Management has made assessment of assets considering the business prospects related thereto and, accordingly, no provision on account of impairment of assets is considered necessary in these accounts.

18) Figures for Previous Year have been regrouped and/or rearranged, wherever considered necessary to conform to the current years classification.

19) Figures in the Balance Sheet, Profit & Loss Account and Cash Flow Statement have been expressed in Rs. Lacs with two decimals.