Notes to Accounts of Axel Polymers Ltd.

Mar 31, 2024

2.17 Provisions, Contingent Liabilities and Contingent Assets

Provision is recognized only when there is a present obligation as a result of past events and when reliable estimates of the amount of the obligation can be made. Contingent liability is disclosed for:

a) Possible Obligations which will be confirmed only by future events not wholly within the control of the company or

b) Present obligations arising from past events where it is not probable that an outflow of resources will be required to settle the obligation or reliable estimates of the amount of the obligation cannot be made. Contingent Assets are not recognized in the financial statements since this may result in the recognition of income that may never be realized.

• Financial Risk management objectives

The Company''s businesses are subject to several risks and uncertainties including financial risks. The Company''s documented risk management polices act as an effective tool in mitigating the various financial risks to which the business is exposed to in the course of their daily operations. The risk management policies cover areas such as liquidity risk, commodity price risk, foreign exchange risk, interest rate risk, counterparty and concentration of credit risk and capital management. Risks are identified through a formal risk management programme with active involvement of senior management personnel and business managers. The Company has in place risk management processes in line with the Company''s policy. Each significant risk has adesignated ''owner'' within the Company at an appropriate senior level. The potential financial impact of the risk and its likelihood of a negative outcome are regularly updated.

The risk management process is coordinated by the Management Assurance function and is regularly reviewed by the Company''s Audit Committee. The Audit Committee is aided by the CFO Committee and the Risk Management Committee, which meets regularly to review risks as well as the progress against the planned actions Key business decisions are discussed at the periodic meetings of the CFO Committee and the Executive Committee. The overall internal control environment and risk management programme including financial risk management is reviewed by the Audit Committee on behalf of the Board.

• Liquidity Risk management

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are required to be settled by delivering cash or another financial asset. The Company manages liquidity risk by maintaining sufficient cash and cash equivalents including bank deposits and availability of funding through an adequate amount of committed credit facilities to meet the obligations when due. The management prepares annual budgets for detailed discussion and analysis of the nature and quality of the assumption, parameters etc.

The following tables detail the Company''s remaining contractual maturity for its non-derivative financial liabilities with agreed repayment periods. The information included in the tables have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which the Company can be required to pay. The tables include both interest and principal cash flows. The contractual maturity is based on the earliest date on which the Company may be required to pay.

Sensitivity analysis is performed by varying a single parameter while keeping all the other parameters unchanged. Sensitivity analysis fails to focus on the interrelationship between underlying parameters. Hence, the results may vary if two or more variables are changed simultaneously.

The method used does not indicate anything about the likelihood of change in any parameter and the extent of the change if any.

Note 47 Segment Reporting

The Company is predominantly engaged inmanufacturing Compounds, Blends and Alloys of Engineering, Specialty and Commodity Polymers, thus operates in a single business segment. The Company is operating in India, which is considered as single geographical segment. Accordingly, no disclosure is required under Ind AS 108.

Note 48

The Company has used the borrowings from Banks and Financial Institutions for the Specific purpose for which it was taken at the Balance Sheet date.

Note 49 BENAMI PROPERTY

No proceedings have been initiated or are pending against the company for holding any benami property under the Benami Transactions (Prohibition) Act, 1988 (45 of 1988) and rules made thereunder.

Note 50 WILFUL DEFAULTER

Company has not been declared as wilful defaulter by any bank or financial institution or other lender.

Note 51 RELATIONSHIP WITH STRUCKOFF COMPANIES

Management has represented that it does not have any transaction with companies struck off under section 248 of the Companies Act, 2013 or section 560 of Companies Act, 1956.

Note 52 REGISTRATION OF CHARGES OR SATISFACTION WITH REGISTRAR OF COMPANIES

The Company has complied with registration of charges on secured borrowings from bank. No charge or satisfaction is yet to be registered with Registrar of Companies beyond the statutory period.

The Company have not traded or invested in Crypto currency or Virtual Currency during the year.

Note 54

The Company have 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:

a. 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

b. provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

Note 55

The Company have 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:

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

Note 56

The Company do 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)

Note 57

The company has granted advances in the nature of loan of Rs. 12.9 Lakhs during the year to directors that are repayable on demand without specifying any terms or period of repayment. However the same is received back and amount outstanding as on 31st March 2024 is NIL.

Note 58

Compliance with number of layers of the companies as per section 2(87) of the Companies Act read with Companies (Restriction on number of Layers) Rules 2017 is not required as the Company has no investment in any entity at any point of time during the year.

Note 59

The Company has not revalued any of its Property, Plant and Equipment (including Right-of-Use Assets) neither in current year nor in previous year.

Note 60

Lease payments are recognized in the Statement of Profit and Loss as Rent Expense in "Other Expenses".

Note 61 ADDITIONAL REGULATORY INFORMATION

Additional Information pursuant to Provisions of Paragraph 6 of Part I of Schedule III and Paragraph 5 of Part II of Schedule III to the Companies Act, 2013 has been furnished to the extent applicable in view of the nature of business of the Company.

Note 62

The outstanding balances of Trade Payables, Unsecured Loans, Trade Receivables, Deposits and Loans & Advances are subject to confirmation.

Note 63

Wherever Supporting were not available for verification, same are accepted on being approved by the management.

Previous year''s figures have been regrouped wherever necessary to make them comparable with those of the current year.

Signature to Notes 1 - 64

For Mukund & Rohit For & on behalf of the Board

Chartered Accountants Axel Polymers Limited

Registration No. 113375W

sd/- sd/-

sd/-

Samir Mehta Gaurav Thanky A.B.Bodhanwala

Partner Managing Director Director & CFO

Membership No: 136083 DIN: 02565340 DIN: 00421362

sd/-

Jigardan Gadhvi Company Secretary

Place: Vadodara Place: Vadodara

Date: 28.05.2024 Date: 28.05.2024

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Mar 31, 2015

1. The secured term loans are secured against

Particulars Security

1. Term loan 1 @15.75% - Personal Guarantee of Directors

2. Working Capital Term Loan - Equitable Mortgage of: @10.50%

3. Funded Interest Term Loan a) Company's property at Moxi, Savli I @9.50%

4. Funded Interest Term Loan b)Residential property at Gautam nagar II @9.50% &JeevanJyotsoc Lalbaug Vadodara

- First charge on all Fixed assets

2. Contingent Liability Rs, lacs

PARTICULARS AS AT 31.03.2015 AS AT31.03.2014

Income Tax 10.83 10.51

3. The company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium enterprise development Act 2006 and hence disclosures, if any relating to amounts unpaid as at year end together with interest payable as required under the said Act have not been given.

4. Balances of sundry Receivables, Payables, Loan and Advances are subject to confirmation and Cash Balances are verified by the Management of the company.

5. Disclosure of related party transaction as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India:

Key Management Personnel and their relatives as on 31.03.2015 are as under

Relationship Name

Whole-time Director Mr B.K.Bodhanwala

Managing Director Mr A.B.Bodhanwala

Non-Executive Director Dr M.A.Bodhanwala

Additional Director Mr.G.S.Thanky

Company in which Director is interested Dhara Petrochemicals R Ltd

Firm in which director is interested VR Industries

Note: Related parties and their relationship is as identified by Management and relied upon by the auditors.

6. Previous year's figures have been regrouped, rearranged or recast wherever necessary.

7. EXPENDITURE/EARNINGS IN FOREIGN CURRENCY: NIL (P.Y. Nil)

8. Excise Duty shown under 'expenditure' (note 2.21) represents the aggregate of excise duty borne by the Company and difference between excise duty on opening and closing stocks of finished goods.

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Mar 31, 2013

1. Some of the Vehicles are registered in the name of Directors and Employee of the company.

2. The company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium enterprise development Act 2006 and hence disclosures, if any relating to amounts unpaid as at year end together with interest payable as required under the said Act have not been given.

3. Disclosure of related party transaction as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India:

Key Management Personnel and their relatives as on 31.03.2012 are as under:

B.K.Bodhanwala - Chairman Mr AB.Botihanwala - Managing Director Dr M.A.Bodhanwala - Director

4. Previous year''s figures have been regrouped, rearranged or recast whereyer necessary.

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Mar 31, 2012

1. Some of the Vehicles are registered- the name of Directors and Employee of the company.

2. The company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium enterprise development Act 2006 and hence disclosures, if any relating to amounts unpaid as at year end together with interest payable as required under the said Act have not been given.

3. During the year, the wholetime Directors have foregone their increase in Salary prior to the same becoming due.

4. Disclosure of related party transaction as required by Accounting Standard -18 issued by the Institute of Chartered Accountants of India:

There are no Associate Concerns and there is no transaction with Relatives.

5. Previous year's figures have been regrouped, rearranged or recast wherever necessary.

6. Earnings Foreign Currency: Rs. 2.05 lacs (Previous Year Rs Nil) Expenditure in Foreign Currency Rs. 3.48 lacs (Previous year Rs. Nil)

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Mar 31, 2010

1 In the opinion of the Board, Stock in trade and Loans & Advances forming part of Current Assets are approximately of the value stated, if realised in the ordinary course of business.

2. The balances of Sundry Debtors, Sundry Creditors and Loans & Advances secured & unsecured are subject to confirmation.

3. As per the accounting policy 1.5.b followed by the company during the year, the company has treated the value of the material processed as sales amounting to Rs. 184.96 lacs and equivalent value as Consumption of Material. Hence it has no impact on the loss for the year.

4. The company has recognised earlier years MAT Credit amounting to Rs. 662674/- during the year in its Profit and loss account as per the provisions of section 115JAA of the Income Tax Act.

5. The companys decision to recognise deferred tax asset arising on account of unabsorbed depreciation and business losses and earlier years MAT Credit is based on the business plan prepared by the management, which takes into account operations during the year under audit as compared with last year and also company has received large order during March 2010. The management is of the opinion that there is virtual certainty supported by convincing evidence that sufficient future taxable income will be available against which the deferred tax asset can be realised. Also the business of the company in the First quarter during the subsequent year of audit has improved substantially as compared to the corresponding quarter in the year under audit. Also company has proposed to launch own compounds/Products which would also translate to higher profitability, thus from the above management is confident to post higher profit from the current year.

6. The company has not received any intimation from the suppliers regarding their status under the Micro, Small and Medium enterprise development Act 2006 and hence disclosures, if any relating to amounts unpaid as at year end together with interest payable as required under the said Act have not been given.

7. The Company has treated Material received for Toll Compounding as Purchases and Sales amounting to Rs. 184.96 lacs. This is undertaken on "Cenvat Duty Paid Basis" under the Companys Excise Registration Licence. There is no impact on the loss for the year.

8. Disclosure of related party transaction as required by Accounting Standard – 18 issued by the Institute of Chartered Accountants of India:

Key Management Personnel and their relatives as on 31.03.2010 are as under:

Mr B.K.Bodhanwala Chairman Mr A.B.Bodhanwala Managing Director

Dr M.A.Bodhanwala Director

9. Some Vehicles are registered in the name of the Directors of the company.

a.Earnings Foreign Currency: Rs. Nil (Previous Year Rs Nil)

Expenditure in Foreign Currency Rs. Nil (Previous year Rs. Nil)

b.Previous years figures have been regrouped, rearranged or recast wherever necessary.

10. Paise have been rounded off to the nearest rupee.

11. Additional information pursuant to provisions of Schedule VI of Companies Act, 1956 is given hereunder.

12. Consumption of Raw Material & Consumable Stores is 100% indigenous only.