Notes to Accounts of Caprihans India Ltd.

Mar 31, 2024

Loans are non-derivative financial assets carried at amortised cost which generate a fixed interest income for the Company. The carrying value may be affected by changes in the credit risk of the counterparties.

There are no loans given to directors or firms / private companies where directors are interested for the periods presented.

For the ICD, in line with the Ind AS standards, adequate provision for expected credit loss amounting to Rs 14.00 crores has been accounted for.

No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person.

Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member. Trade receivables are non-interest bearing and are generally on terms of 0-90 days.

For terms and conditions relating to related party receivables, refer note 35.

See note 40 on credit risk of trade receivables, which explains how the Company manages and measures credit quality of trade receivables that are neither past due nor impaired.

The Company has only one class of equity shares having a par value of INR 10/- each. Each equity shareholder is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

The Board of Directors has not recommended any dividend on the equity shares during the year ended March 31,2024 (March 31,2023: NIL).

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

The Redeemable Preference Shares (RPS) carry a fixed non-participating non-cumulative dividend of 0.1% per annum. The RPS will be redeemed on or before completion of 20 years from the date of allotment at the discretion of the Board of Directors of the Company. The RPS shall be redeemed out of profits of the Company which would otherwise be available for dividend distribution or out of proceeds of fresh issue of shares made for the purpose of such redemption. The RPS are unsecured and do not carry any voting rights subject to the provisions for Section 48 of the Companies Act 2013. The RPS are subject to the other terms and conditions as specified in the business transfer agreement.

Securities premium: Securities premium is used to record the premium on issue of shares. This reserve will be utilised in accordance with the provisions of the Companies Act 2013.

General reserve: General Reserve is a free reserve and is available for distribution as dividend, issue of bonus shares, buyback of the Company''s securities. It was created by transfer of amounts out of distributable profits, from time to time Mandatory transfer to general reserve is not required under the Companies Act 2013.

Retained earnings: This reserve represents the cumulative profits of the Company and the effects of remeasurment of defiend benefits obligations. The reserve can be utilised in accordance with the provisions of the Companies Act 2013.

Capital reserve on slump sale: During acquisition of PPI division from Bilcare Limited, the excess of net assets acquired, over the cost of consideration paid is treated as Capital Reserve.

Revaluation Reserve: This reserve represents the cumulative gains and losses arising on the revaluation of Property, Plant and Equipement (PPE) as on the balance sheet date measured at fair value. The reserves accumulated will be reclassified to retained earnings when such assets are disposed.

Employee benefits obligations

a) Gratuity

The Company provides gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity is payable on retirement or termination whichever is earlier. The level of benefits provided depends on the member''s length of service and salary. The gratuity plan is funded plan.

b) Compensated absences

The leave obligation cover the Company''s liability for earned leaves.

Also refer note 33 for detailed disclosure.

NOTE 32 (B): EARNINGS PER SHARE

Basic EPS amounts are calculated by dividing the profit for the year by the weighted average number of equity shares outstanding during the year. The earnings considered in ascertaining the Company''s earnings per share (''EPS'') comprise the net profit after tax attributable to equity shareholders.

A. Defined contribution plans:

Amount of INR 2.24 Crores pertaining to contribution to PF and ESIC (March 31,2023: INR 2.14 Crores) is recognised as expenses and included in note 24 "Employee benefit expense".

B. Defined benefit plans:

The Company has a defined benefit gratuity plan. The fund is administered by ICICI Prudential Life Insurance Company Ltd. The following table summarises the components of net benefit expense recognised in the statement of profit or loss and the funded status and amounts recognised in the balance sheet for gratuity.

The sensitivity analysis above have been determined based on a method that extrapolates the impact on defined benefit obligations as a result of reasonable changes in key assumptions occurring at the end of the reporting period.

Gratuity amount of Rs. 0.38 Crores has became due to be paid in the year 2023-24, however the same has been paid in the year 2024-25.

NOTE 34: COMMITMENTS AND CONTINGENCIES
a. Capital and other commitments
Particulars	March 31, 2024	March 31, 2023
Capital commitments Estimated amount of contracts remaining to be executed on capital account and not provided for	1.53	1.69
(net of advances)
b. Contingent liabilities
Particulars	March 31, 2024	March 31, 2023
Contingent liabilities not provided for a. Demands of Excise authorities which are disputed in appeals by the Company	0.62	0.62
b. Other excise notices pending adjudication	0.92	0.92
a. Demands of GST which are disputed in appeals by the Company	0.79	0.79
c. Demands of Income tax authorities which are disputed in appeals and not provided for	5.29	5.29
d. Claims against the company not acknowledged as debts - estimated	5.12	5.00
	12.75	12.62

Terms and conditions of transactions with related parties

Outstanding balances are unsecured and settlement occurs in cash. 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.

NOTE 38: FAIR VALUE DISCLOSURES FOR FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Management believes that the fair values of non-current financial assets (loans and others), current financial assets ( e.g., cash and cash equivalents, trade and other receivables and loans), non-current financial liabilities and current financial liabilities (e.g.,trade payables and other payables and others) approximate their carrying amounts and accordingly, separate disclosure have not been made.

NOTE 40: FINANCIAL INSTRUMENTS

A. Accounting classification and fair values

The Company''s principal financial liabilities comprise of trade and other payables and other financial liabilities. The Company''s principal financial assets includes loans, trade receivables, cash and bank balances, other assets and other financial assets that derive directly from its operations.

* For certain unquoted equity investments categorized under level 3, cost has been considered as an appropriate estimate of fair value because of a wide range of possible fair value measurements and cost represent the best estimate of fair value within that range.

Measurement of fair values

The basis of measurement in respect to each class of financial asset / liability is disclosed in Note 2.2 (iii) of the financial statements.

B. Financial risk management

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees and advises on these risks.

The Company''s senior finance team advises on financial risks and provides assurance that the Company''s financial risk are identified, measured, managed and mitigated in accordance with general risk mitigation policies and objectives. All derivative activities are carried out by senior finance team who has the appropriate skills, expertise and experience and is being overseen by the Managing Director from time to time as per business needs. It is the Company''s policy that no trading in derivatives for speculative purposes be undertaken. The Board of Directors review and agree policies for managing each of these risks, which are summarised below:

(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 equity price risk and commodity risk. Financial instruments affected by market risk include deposits, trade and other receivables and trade and other payables.

The sensitivity analysis in the following sections relate to the position as at March 31,2024 and March 31, 2023.

The sensitivity analysis have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of the hedge designations in place at March 31, 2024.

The analysis exclude the impact of movements in market variables on: the carrying values of gratuity, pension and other post-retirement obligations and provisions.

The following assumption has been made in calculating the sensitivity analysis:

The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at March 31, 2024 and March 31, 2023.

NOTE 40: FINANCIAL INSTRUMENTS

Interest rate risk

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 generally utilises fixed rate borrowings and therefore not subject to interest rate risk, since neither the carrying amount nor the future cash flows will fluctuate because of change in the market interest rates.

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 relates primarily to the Company''s operating activities (when revenue or expense is denominated in a foreign currency).

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in USD exchange rate, with all other variables held constant. The impact on the Company''s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company''s exposure to foreign currency changes for all other currencies is not material and have not covered in sensitivity analysis.

Commodity price risk

The Company is affected by the price volatility of resin, base raw material for manufacturing PVC Films and being sourced from both domestic and international suppliers. The price volatility is due to demand-supply position in international market and exchange impact arising due to delivery lead time. The upward or downward trend in raw material is generally being passed on to the end customer other than exceptional cases as per business needs and therefore neutralising the exchange risks arising therefrom and as such the impact of such volatility, is difficult to be quantified or measured.

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments. A provision is created for a counter party whose payment is due more than 180 days after its due date.

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limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 11. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s MANAGEMENT in accordance with the Company''s policy.

The Company''s maximum exposure to credit risk for the components of the Balance Sheet as at March 31,2024 and March 31, 2023 is the carrying amounts as illustrated in note 11 and note 12. The Company''s maximum exposure relating to financial instruments is noted in the liquidity table below.

(c) Liquidity risk

Liquidity risk is the risk that the Company may encounter difficulty in meeting its obligations. The Company monitors its liquidity position on the basis of expected cash flows. The Company''s approach is to ensure that it has sufficient liquidity to meet its obligations at all point in time.

NOTE 41: CAPITAL MANAGEMENT

For the purpose of the Company''s capital management, capital includes issued equity capital 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 a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value.

1) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any Benami property.

2) The Company does not have any transactions with struck off companies.

3) During the year the Company has created charge beyond the statutory period of thrity days in respect of loan availed from banks.

Registration of charges or satisfaction with Registrar of Companies

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

5) 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;

6) 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:

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,

7) 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

8) The Company has filed monthly statements of current assets with the banks in agreement with the books of accounts except for quarter ended March 2024 for which there is a difference of Rs. 6.41 Crores due to impact of revenue recognition as per Ind AS 115.

9) The Company does not have any immovable property (other than properties where the Company is the lessee and the lease agreements are duly executed in favour of the lessee) whose title deeds are not held in the name of the Company.

10) The Company has not made any Loans or Advances in the nature of loans that are granted to promoters, directors, KMPs and the related parties (as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

11) The company has not been declared as a wilful defaulter

In the previous year ended, the Company had acquired PPI (Pharma Packaging Innovation) division of M/s Bilcare Limited (Ultimate Holding Company) on March 27, 2023 as a business undertaking on a going concern basis by way of a Business Transfer Agreement for a net purchase consideration of Rs. 213.00 Crores by issue of 21,30,00,000 0.1% Non-Cumulative, Non-Participating Redeemable Preference Shares of Rs.10/-each (face value). The said transaction has been accounted under common control as per IND AS-103, based on which the carrying value of assets amounting to Rs.591.62 Crores and liabilities amounting to Rs. 845.35 Crores have been taken over and consequently Capital Reserve of Rs. 466.73 Crores has been recorded on acquisition in the books of the Company.

Pursuant to the above, the Company has restated the financial information of previous years in the statement of profit and loss, statement of cash flows and balance sheet to include the income, expenses, assets, liabilities and cash flows relating to the acquired business. The difference in net asset arising out of the above has been adjusted with retained earnings (as at March 31, 2022) resulting in a credit of Rs. 42.21 Crores in retained earnings. Similarly, the impact of restatement included in the current financial year (for the period April 01,2021 to March 27, 2023) has resulted into a debit of Rs. 47.88 Crores in retained earnings.

NOTE 45:

Consequent to the Slump-sale that was effected on 27.03.2023 wherein the PPI division was acquired by the Company, there was a transition period wherein some business transactions were done in the name of Bilcare Limited in the capacity of "facilitator".

NOTE 46:

In respect of the arrangement with Bilcare Limited for the repayment of principal and interest on the public fixed deposit liability taken over by the Company as per the Business Transfer Agreement, the outstanding as at March 31, 2024 is Rs 79.69 crores(including interest). The statutory compliances related to Public fixed deposit is the responsibility of Bilcare Limited. Out of the total loan amount of Rs 57 crores disbursed by the bank to repay the said public fixed deposits, Rs 18.52 crores has been earmarked in term deposit with the lead bank and the amount of Rs 7.53 crores is in escrow account with the lead Bank.

NOTE 47:

Exceptional Items are as under:

a) Exceptional Items represents loss on sale of office premises, for the year ended March 31, 2024.

For the year ended March 31, 2023:

b) The company has sold the investment property for consideration of Rs.7.70 Crores and profit of Rs.7.11 Crores has been recorded.

c) The company has assigned its receivable of Rs.2.46 Crores (Outstanding since 2005) from disposal of assets of the activities identified as non core (referrred to as Non Core Assets) of the company to M/s Durable Stationery Pvt.Ltd. at a consideration of Rs.0.64 Crores due to prolonged litigation. Further, the company entered into a Share Purchase Agreement with M/s Durable Stationery Pvt.Ltd. for sale of 2,34,000 Equity shares of Rs.10 each of Roha Paper Mills Ltd. (under voluntary winding up) for a consideration of Rs.0.23 Crores. The net loss is Rs.1.58 Crores has been recorded in the books.

d) Consequent upon business transfer of Assets and Liabilities, Rs.20.48 Crores on account of additional compensation paid to capital creditor, stamp duty for conveyance deed and expenses relating to acquisition of PPI division.

e) Consequent upon business transfer of Assets and Liabilities, gain of Rs.141.77 Crores has been recorded on account of One time settlement of term loan and working capital loans of various banks, Asset Reconstruction Company and Other lenders.

The Company has used accounting software for maintaining its books of account which has a feature of recording audit trail (edit log) facility however, the same was not operated throughout the year for all relevant transactions recorded in the software and database level. The Company is in the process of enabling the audit trail for all relevant transaction.

Company is also in the process of maintaining daily back up of audit trail (edit logs).

NOTE 49:

The previous years numbers relating to income tax assets / liabilities have been regrouped to correspond with the current year''s classification for better presentation.

NOTE 50:

The previous years numbers has been restated wherever application for better presentation.

2) Security

(i )Term loans from consortium banks are secured as under -

MSC bank - secured by exclusive charge on the fixed assets at Nasik plant and pari-passu charge on the fixed assets at Thane and Shiroli.

JSBL - secured by exclusive charge on the Fixed Deposits of Rs. 30 Cr.and pari-passu charge on the fixed assets at Thane and Shiroli.

VSBL - secured by exclusive charge on the Fixed Deposits of Rs. 15 Cr.and pari-passu charge on the fixed assets at Thane and Shiroli.

Cosmos Bank - secured by exclusive charge on the Fixed Deposits of Rs. 30 Cr., Land at Gat No. 321/322 at Pimpri Budruk, sindh society bunglow and pari-passu charge on the fixed assets at Thane and Shiroli.

(ii) Guarantees -

1) Personal guarantee from promoters :

a) Mr. Mohan Bhandari

b) Ms. Ankita Kariya

c) Mr. Shreyans Bhandari

(i) The working capital loans from bank include cash credit facility which are renewed annually. This facility carries an interest rate ranging from 10% to 15% p.a.

(ii) Working capital loans from banks are secured as under -

Cosmos Bank - secured by exclusive charge on the Fixed Deposits of Rs. 32 Cr., Land at Gat No. 321/322 at Pimpri Budruk, sindh society bunglow and first pari-passu charge on the current assets of the company.

BOM - secured by first pari-passu charge on the current assets of the company.

The working capital loans are also secured by -

1) Personal guarantee from promoters

a) Mr. Mohan Bhandari

b) Ms. Ankita Kariya

c) Mr. Shreyans Bhandari

2) Corporate guarantee from Bilcare Limited

---

Mar 31, 2023

Contingent liability

Contingent liability is disclosed in the case of:

- a present obligation arising from past events, when it is not probable that an outflow
of resources embodying economic benefits will be required to settle the obligation;

- a present obligation arising from past events, where no reliable estimate is possible; and

- a possible obligation arising from past events, unless the probability of outflow of resources is remote.

A contingent asset is disclosed where an inflow of economic benefits is probable.

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

xx. Business combinations

Business combinations are accounted for using the acquisition accounting method as at the date of the acquisition. The consideration
transferred in the acquisition and the identifiable assets acquired and liabilities assumed are recognised at fair values on their acquisition
date. Goodwill is initially measured at cost, being the excess of the aggregate of the consideration transferred over the net identifiable
assets acquired and liabilities assumed. Consideration transferred does not include amounts related to settlement of pre-existing
relationships. Such amounts are recognised in the Statement of Profit and Loss. Transaction costs are expensed in the standalone
statement of profit and loss as incurred, other than those incurred in relation to the issue of debt or equity securities which are directly
adjusted in other equity.

t.3. Significant accounting judgements, estimates and assumptions

The preparation of the Company''s financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying
amount of assets or liabilities affected in future periods.

a. Judgements

In the process of applying the Company''s accounting policies, the management has made the following judgements, which have the
most significant effect on the amounts recognised in the financial statements:

Determining the lease term of contracts with renewal and termination options - Company as lessee

The Company determines the lease term as the non-cancellable term of the lease, together with any periods covered by an option to
extend the lease if it is reasonably certain to be exercised, or any periods covered by an option to terminate the lease, if it is reasonably
certain not to be exercised.

The Company has several lease contracts that include extension and termination options. The Company applies judgement in evaluating
whether it is reasonably certain whether or not to exercise the option to renew or terminate the lease. That is, it considers all relevant
factors that create an economic incentive for it to exercise either the renewal or termination. After the commencement date, the
Company reassesses the lease term if there is a significant event or change in circumstances that is within its control and affects its ability
to exercise or not to exercise the option to renew or to terminate.

b. Estimates and assumptions

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 within the next financial year, are described below
The Company based its assumptions and estimates on parameters available when the 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.

Defined benefit plans

The cost of the defined benefit plans and other employment benefits and the present value of the obligation are determined using
actuarial valuation. 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, management considers the
underlying bonds are further reviewed for quality. Those having excessive credit spreads are excluded from the analysis of bonds on
which the discount rate is based, on the basis that they do not represent high quality corporate bonds.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at intervals in response to
demographic changes. Future salary increases are based on expected future inflation rates for the country.

Further details about defined benefit obligations are provided in Note 31.

2.4. Recent Prouncements:-

Standard issued but not yet effective

On March 31, 2023, Ministry of Corporate Affairs ("MCA") amended the Companies (Indian Accounting Standards) Rules, 2015 by issuing
the Companies (Indian Accounting Standards) Amendment Rules, 2023, applicable from April 1, 2023, as below:

Ind AS 1 - Presentation of Financial Statements

The amendments require companies to disclose their material accounting policies rather than their significant accounting policies.
Accounting policy information, together with other information, is material when it can reasonably be expected to influence decisions of
primary users of general purpose financial statements. The Company does not expect this amendment to have any significant impact in its
financial statements.

Ind AS 12 - Income Taxes

The amendments clarify how companies account for deferred tax on transactions such as leases and decommissioning obligations. The
amendments narrowed the scope of the recognition exemption in paragraphs 15 and 24 of Ind AS 12 (recognition exemption) so that it
no longer applies to transactions that, on initial recognition, give rise to equal taxable and deductible temporary differences. The Company
does not expect this amendment to have any significant impact in its financial statements.

Ind AS 8 - Accounting Policies, Changes in Accounting Estimates and Errors

The amendments will help entities to distinguish between accounting policies and accounting estimates. The definition of a change
in accounting estimates has been replaced with a definition of accounting estimates. Under the new definition, accounting estimates
are "monetary amounts in financial statements that are subject to measurement uncertainty". Entities develop accounting estimates if
accounting policies require items in financial statements to be measured in a way that involves measurement uncertainty. The Company
does not expect this amendment to have any significant impact in its financial statements. The Company has not early adopted any
standard, interpretation or amendment that has been issued but is not yet effective.

The Company''s principal financial liabilities comprise of trade and other payables and other financial liabilities. The Company''s principal financial
assets includes loans, trade receivables, cash and bank balances, other assets and other financial assets that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company''s senior management oversees and advises on these risks.
The Company''s senior finance team advises on financial risks and provides assurance that the Company''s financial risk are identified, measured,
managed and mitigated in accordance with general risk mitigation policies and objectives. All derivative activities are carried out by senior finance
team who has the appropriate skills, expertise and experience and is being overseen by the Managing Director from time to time as per business
needs. It is the Company''s policy that no trading in derivatives for speculative purposes be undertaken. The Board of Directors review and agree
policies for managing each of these risks, which are summarised below:

(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 equity price risk and commodity risk.
Financial instruments affected by market risk include deposits, trade and other receivables and trade and other payables.

The sensitivity analyses in the following sections relate to the position as at 31 March 2023 and 31 March 2022.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and
derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of the hedge designations in place
at 31 March 2023.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity, pension and other post-retirement
obligations and provisions.

The following assumption has been made in calculating the sensitivity analyses:

The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on
the financial assets and financial liabilities held at 31 March 2023 and 31 March 2022.

Interest rate risk

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 does not have any long term & short term borrowings.

The impact of /(-) 25 bps in bank interest rates on deposits is estimated at /(-) INR 20.16 lacs as on 31 March 2023, /(-) INR 6.95 lacs as on
31 March 2022, without considering any change in deposit amounts.

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 relates primarily to the Company''s operating activities (when revenue
or expense is denominated in a foreign currency).

Commodity price risk

The Company is affected by the price volatility of resin, base raw material for manufacturing PVC Films and being sourced from both domestic
and international suppliers. The price volatility is due to demand-supply position in international market and exchange impact arising due to
delivery lead time. The upward or downward trend in raw material is generally being passed on to the end customer other than exceptional
cases as per business needs and therefore neutralising the exchange risks arising therefrom and as such the impact of such volatility, is difficult
to be quantified or measured.

Equity price risk

The Company has not made investments in equity securities, hence are not susceptible to market price risk arising from uncertainties about
future values of the investment securities.

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial
loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including
deposits with banks, foreign exchange transactions and other financial instruments. A provision is created for a counter party whose payment
is due more than 180 days after its due date.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company''s established policy, procedures and control relating to customer
credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are
defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers
are generally covered by letters of credit or other forms of credit insurance.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The calculation is based on actual
incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets
disclosed in note 10. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to
trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

The COVID-19 pandemic has brought economies, businesses and lives around the world to a standstill, and our country is no exception. On
the basis of current assessment and estimates, the management foresees risk of recoverability from some of its customers. Accordingly, the
Company has made appropriate provisions in the books of accounts arising from COVID-19 pandemic. However, the impact assessment of
COVID-19 is a continuous process, given the uncertainties associated with its nature and duration. The Company will continue to closely
monitor any material changes to future economic conditions."

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company''s treasury department in accordance with the
Company''s policy.

The Company''s maximum exposure to credit risk for the components of the Balance Sheet as at 31 March 2023 and 31 March 2022 is the
carrying amounts as illustrated in note 10 and note 11. The Company''s maximum exposure relating to financial instruments is noted in the
liquidity table below.

1) The Company does not have any Benami property, where any proceeding has been initiated or pending against the Company for holding any
Benami property.

2) The Company does not have any transactions with struck off companies.

3) The Company does not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period.

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

5) 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;

6) 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:

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,

7) 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

8) The Company has filed monthly statements of current assets with the banks in agreement with the books of accounts.

9) The Company does not have any immovable property (other than properties where the Company is the lessee and the lease agreements are duly
executed in favour of the lessee) whose title deeds are not held in the name of the Company.

10) The Company has not made any Loans or Advances in the nature of loans that are granted to promoters, directors, KMPs and the related parties
(as defined under Companies Act, 2013,) either severally or jointly with any other person, that are:

(a) repayable on demand or

(b) without specifying any terms or period of repayment

11) The company has not been declared as a wilful defaulter

NOTE 44:

1) As part of the Business Transfer Agreement, of the total liabilities, the carrying amount of public fixed deposit liability of '' 10959.79 lacs
taken over from PPI division of Bilcare Limited has remained unpaid as on March 31, 2023. The compliances and claim if any, in respect to this
continues to be with Bilcare Limited.

2) The Company pursuant to the change in the accounting policy has adopted revaluation model for its Property Plant and Equipment and a
revaluation surplus of '' 63584.37 lacs has been recognised in the books.

3) Public fixed deposits carries interest @9.55% to 11.75% p.a.

NOTE 45:

Exceptional Items are as under:

a) During the year ended March 31, 2023 the company has sold the investment property for consideration of ''.770 lacs and profit of ''.711.12
lacs has been recorded.

b) The company has assigned its receivable of ''.245.74 lacs (Outstanding since 2005) from disposal of assets of the activities identified as non
core (referrred to as Non Core Assets) of the company to M/s Durable Stationery Pvt.Ltd. at a consideration of ''.63.98 lacs due to prolonged
litigation. Further, the company entered into a Share Purchase Agreement with M/s Durable Stationery Pvt.Ltd. for sale of 2,34,000 Equity shares
of ''.10 each of Roha Paper Mills Ltd. (under voluntary winding up) for a consideration of ''.23.40 lacs. The net loss is ''.158.36 lacs has been
recorded in the books.

c) Consequent upon business transfer of Assets and Liabilities, ''.2047.95 lacs on account of additional compensation paid to capital creditor,
stamp duty for conveyance deed and expenses relating to acquisition of PPI division.

d) Consequent upon business transfer of Assets and Liabilities, gain of ''.14177.03 lacs has been recorded on account of One time settlement of
term loan and working capital loans of various banks, Asset Reconstruction Company and Other lenders.

NOTE 46:

The Company had given interest free advances aggregating to '' 3049.90 lakhs to a customer/vendor for proposed new line of products. Subsequently
the advance was refunded in full in December 2022 on cancellation of the order by the customer/vendor. The advances were given as trade advances
in the normal course of business and no futher compliances under the Companies Act, 2013 are required.

NOTE 47:

The previous years numbers relating to income tax assets / liabilities have been regrouped to correspond with the current year''s classification for
better presentation.

NOTE 48:

The previous years numbers has been restated wherever application for better presentation.

NOTE 49:

The figures in the financial statements for the year ended March 31,2022 and as at April 01,2021 have been restated and certfied by management
to include the effect of Business Transfer Agreement of PPI division of Bilcare Limited acquired by the Company.

As per our report of even date For and on behalf of the Board of Directors of Caprihans India Limited

For Batliboi & Purohit

Chartered Accountants

ICAI Firm Registration No.: 101048W

Per Kaushal Mehta Ankita J. Kariya Siddharth S. Shetye Pritam Paul

Partner Chairperson and Managing Director Director CFO & Company Secretary

Membership No.: 111749 DIN: 08292735 DIN: 06943119 FCS Membership No: 5861

Place: Mumbai Place: Mumbai Place: Mumbai Place: Mumbai

Date: May 30, 2023 Date: May 30, 2023 Date: May 30, 2023 Date: May 30, 2023

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Mar 31, 2018

1. CORPORATE INFORMATION

Caprihans India Limited (‘the Company’) is a public company domiciled in India and is incorporated under the provisions of the Companies Act applicable in India. Its shares are listed on Bombay Stock Exchange in India. The registered office of the Company is located at Shivsagar Estate, Dr. Annie Besant Road, Worli, Mumbai - 400018. The Company is engaged in the business of manufacturing of rigid and flexible PVC films, PVdC coated films and plastic extruded products.

The financial statements of the Company were authorised for issue in accordance with a resolution of the Board of Directors at their meeting held on May 18, 2018.

2.1 Significant accounting judgements, estimates and assumptions

The preparation of the Company’s financial statements requires management to make judgements, estimates and assumptions that affect the reported amounts of revenues, expenses, assets and liabilities, and the accompanying disclosures, and the disclosure of contingent liabilities. Uncertainty about these assumptions and estimates could result in outcomes that require a material adjustment to the carrying amount of assets or liabilities affected in future periods.

a. Judgements

In the process of applying the Company’s accounting policies, the management has made the following judgements, which have the most significant effect on the amounts recognised in the financial statements:

Operating lease commitments - Company as lessor

The Company has entered into commercial property leases on its investment property portfolio. The Company has determined, based on an evaluation of the terms and conditions of the arrangements, such as the lease term not constituting a major part of the economic life of the commercial property and the fair value of the asset, that it retains all the significant risks and rewards of ownership of these properties and accounts for the contracts as operating leases.

b. Estimates and assumptions

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 within the next financial year, are described below. The Company based its assumptions and estimates on parameters available when the 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.

Defined benefit plans

The cost of the defined benefit plans and other employment benefits and the present value of the obligation are determined using actuarial valuation. 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, management considers the interest rates of government bonds in currencies consistent with the currencies of the post-employment benefit obligation. The underlying bonds are further reviewed for quality. Those having excessive credit spreads are excluded from the analysis of bonds on which the discount rate is based, on the basis that they do not represent high quality corporate bonds.

The mortality rate is based on publicly available mortality tables. Those mortality tables tend to change only at intervals in response to demographic changes. Future salary increases are based on expected future inflation rates for the country.

Further details about defined benefit obligations are provided in Note 32.

(ii) The Company’s investment property consist of residential flats (2 flats as at 31 March 2018; 2 flats at 31 March 2017) at Mumbai which have been leased out.

As at 31 March 2018 and 31 March 2017, the fair values of the properties are based on valuations performed by an accredited independent valuer, who is a specialist in valuing these types of investment properties.

(iii) The Company has no restrictions on the realisability of its investment properties. Further, the Company has no contractual obligations to purchase, construct or develop investment properties or for repairs, maintenance and enhancements.

(iv) Fair value of the investment properties are as under

Fair value note as per valuation report of accreditated valuer

The strengths and weakness of the said property, the environmental conditions, prevailing market conditions in the nearby locality and other relevant factors have been taken into account in carrying out the exercise of valuation.

Loans are non-derivative financial assets carried at amortised cost which generate a fixed interest income for the Company. The carrying value may be affected by changes in the credit risk of the counterparties.

There are no loans given to directors or firms / private companies where directors are interested for the periods presented.

Note - Receivable in respect of non-core activities

In terms of the agreement with Kalpataru Ltd (KL) for disposal of assets of the activities identified as non-core (referred to as noncore assets) the Company is yet to realise an amount of INR 245.74 lacs, which is outstanding since 2005. The delay in the realisation is on account of appeal filed by the Company before the Hon’ble High Court of Bombay challenging the arbitration award passed in the earlier year. As the realisation of this amount is underwritten by KL and the performance of KL has been guaranteed by Mr. Mofatraj P. Munot, Director of the Company, Kalpataru Group Companies and others, the management is confident of full recovery of non-core dues in due course. Further the Company has received interest income for the year ended 31 March 2018 of INR 14.70 lacs (31 March 2017 of INR 14.70 lacs) from KL on account of delay in realisation.

No trade or other receivables are due from directors or other officers of the Company either severally or jointly with any other person. Nor any trade or other receivables are due from firms or private companies respectively in which any director is a partner, a director or a member.

Trade receivables are non-interest bearing and are generally on terms of 0-90 days.

For terms and conditions relating to related party receivables, refer note 34.

See note 40 on credit risk of trade receivables, which explains how the Company manages and measures credit quality of trade receivables that are neither past due nor impaired.

Deposits are made for varying periods generally between one day and twelve months; and occasionally for periods beyond 12 months; depending on the immediate cash requirement of the Company and earn interest at the respective short term deposit rate.

The Company has earmarked two fixed deposits of INR 25 lacs each towards creation of sinking fund for operational purpose.

Terms/rights attached to the equity shares

The Company has only one class of equity shares having a par value of INR 10/- each. Each equity shareholder is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

The Board of Directors has recommended a dividend @ 15% on the equity share capital (INR 1.50 per share of the value of INR 10 each) subject to approval of the shareholders in the ensuing annual general meeting.

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

Employee benefits obligations

a) Gratuity

The Company provides gratuity for employees as per the Payment of Gratuity Act, 1972. Employees who are in continuous service for a period of five years are eligible for gratuity. The amount of gratuity is payable on retirement or termination whichever is earlier. The level of benefits provided depends on the member’s length of service and salary. The gratuity plan is funded plan. The gratuity obligation is calculated by the Company without keeping any upper limit.

b) Compensated absences

The leave obligation cover the Company’s liability for earned leaves.

Also refer note 32 for detailed disclosure.

Revenue from operations includes excise duty collected from customers of INR 591.81 lacs (Upto 30 June 2017) (31 March 2017: INR 2275.89 lacs). From July 01, 2017 onwards the excise duty and most indirect taxes in India have been replaced by the Goods and Service Tax (GST). The Company collects GST on behalf of the government. Hence, GST is not included in revenue from operations. In view of the aforesaid change in indirect taxes, revenue from operations for the year ended 31 March 2018 is not comparable with 31 March 2017.

NOTE 3 : INCOME TAX

The note below details the major components of income tax expenses for the year ended 31 March 2018 and 31 March 2017. The note further describes the significant estimates made in relation to Company’s income tax position and also explains how the income tax expense is impacted by non-assessable and non-deductible items.

The Company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

During the year ended 31 March 2018 and 31 March 2017, the Company has paid dividend to its shareholders. This has resulted in payment of dividend distribution tax (DDT) to the taxation authorities. The Company believes that dividend distribution tax represents additional payment to taxation authority on behalf of the shareholders. Hence dividend distribution tax paid is charged to equity.

The applicable tax rate for 31 March 2018 : 33.063% (31 March 2017: 34.608%)

NOTE 4 : EARNINGS PER SHARE

Basic EPS amounts are calculated by dividing the profit for the year by the weighted average number of equity shares outstanding during the year. The earnings considered in ascertaining the Company’s earnings per share (‘EPS’) comprise the net profit after tax attributable to equity shareholders.

* The weighted average number of equity shares outstanding during the year is adjusted for events of bonus issue, bonus element in a rights issue to existing shareholders, share split, and reverse share split (consolidation of shares) other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

NOTE 5 : COMMITMENTS AND CONTINGENCIES

a. Leases

Operating lease commitments - Company as a lessee

The Company has entered into various operating leases for offices and godowns. These leases have an average life between one and five years with renewal option included in the contracts.

The Company has paid for the year ended 31 March 2018 INR 36.74 lacs (31 March 2017: INR 35.54 lacs) during the year towards minimum lease payment.

Future minimum rentals payable under non-cancellable operating leases as at 31 March are, as follows:

Operating lease commitments - Company as lessor

The Company has entered into operating leases on its investment property consisting of residential flats and have lease term between one and five years with renewal options.

Note:

In earlier years, the Company had received order from the Income Tax Appellate Tribunal (ITAT) in its favour relating to assessment years 2001-02 to 2004-05. The Income Tax Department have filed appeals before the Hon’ble Bombay High Court against the ITAT order. The Company estimates that liability may not arise based on the facts mentioned in ITAT order and matters settled by Hon’ble Bombay High Court on similar and like cases.

NOTE 6 : RELATED PARTY TRANSACTIONS

Related parties have been identified on the basis of representation made by the Key Management Persons and taken on record by the Board.

Disclosures of transactions with related parties are as under:

A. Description of Related Parties

i) Name of the related party and nature of relationship where control exists

Related party category Name of the Entity

Holding company Bilcare Research GmbH

Bilcare Research AG

Ultimate holding company Bilcare Limited

Associates of Indian promoters group Kalpataru Limited Enterprises over which one of the

Key Management Personnel exercise Kanga & Co. control/significant influence in the capacity of partner of the firm

Enterprises in which key management K. C. Holdings Pvt Ltd

personnel is director Kalpataru Properties Private Limited

Relatives of key management personnel Parag Mofatraj Munot

ii) Key management personnel Name Name of the office held

Mr. Mofatraj P. Munot Chairman, Promoter Director

Mr. Robin Banerjee Managing Director

Mr. Mohan H. Bhandari Promoter Director

Mr. Bhoumik S. Vaidya Independent Director

Mr. K V Mani Independent Director

Ms. Anjali Seth Independent Director

Mr. Nitin K Joshi Independent Director

Mr. Siddharth S. Shetye Independent Director

Mr. Narendra Lodha Non Independent Director

Terms and conditions of transactions with related parties

Outstanding balances are unsecured and interest free and settlement occurs in cash. For the year ended 31 March 2018, the Company has recorded an impairment of receivables relating to amounts owed by related parties of INR 58.80 lacs (31 March 2017: INR 37.80 lacs). 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.

Commitments with related parties

The Company has not provided any commitment to the related party as at 31 March 2018 (31 March 2017: INR Nil)

Guarantee from related parties:

The realisation of amount due on account of disposal of assets of the activities identified as non core is underwritten by Kalpataru Limited (KL) and the performance of KL has been guaranteed by Mr. Mofatraj P. Munot, Director of the Company, Kalpataru Group Companies and others. (refer note 7)

Transactions with key management personnel

Compensation of key management personnel of the Company

NOTE 7 : OPERATING SEGMENT

The Company is engaged mainly in processing of plastic polymers and its products are covered under a one business segment i.e. processing of plastic polymers as primary segment. The geographical information required by Ind AS 108 is as under:

NOTE 8 : DERIVATIVES NOT DESIGNATED AS HEDGING INSTRUMENTS

The Company uses foreign exchange forward contracts to manage some of its transaction exposures. The foreign exchange forward contracts are not designated as cash flow hedges and are entered into for periods consistent with foreign currency exposure of the underlying transactions, generally upto three months.

NOTE 9 : FAIR VALUE DISCLOSURES FOR FINANCIAL ASSETS AND FINANCIAL LIABILITIES

Management believes that the fair values of non-current financial assets (loans and others), current financial assets ( e.g., cash and cash equivalents, trade and other receivables and loans), non-current financial liabilities and current financial liabilities (e.g., trade payables and other payables and others) approximate their carrying amounts and accordingly, seperate disclosure have not been made. Refer note 7 to the financial statements.

NOTE 10 : EXPENDITURE INCURRED ON RESEARCH AND DEVELOPMENT (R&D)

The Company received from Ministry of Science & Technology, Government of India recognition for In House R&D unit at its Nashik Factory and at its Thane Factory during the year ended 31 March 2018 and 31 March 2017 respectively.

The details of expenditure incurred on R&D for the financial year ended 31 March 2018 are as under:

NOTE 11: FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES

The Company’s principal financial liabilities comprise of trade and other payables and other financial liabilities. The Company’s principal financial assets includes loans, trade receivables, cash and bank balances, other assets and other financial assets that derive directly from its operations.

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s senior management oversees and advises on these risks. The Company’s senior finance team advises on financial risks and provides assurance that the Company’s financial risk are identified, measured, managed and mitigated in accordance with general risk mitigation policies and objectives. All derivative activities, primarily forward exchange cover are carried out by senior finance team who has the appropriate skills, expertise and experience and is being overseen by the Managing Director from time to time as per business needs. It is the Company’s policy that no trading in derivatives for speculative purposes be undertaken. The Board of Directors review and agree policies for managing each of these risks, which are summarised below.

(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 equity price risk and commodity risk. Financial instruments affected by market risk include deposits, trade and other receivables and trade and other payables.

The sensitivity analyses in the following sections relate to the position as at 31 March 2018 and 31 March 2017.

The sensitivity analyses have been prepared on the basis that the amount of net debt, the ratio of fixed to floating interest rates of the debt and derivatives and the proportion of financial instruments in foreign currencies are all constant and on the basis of the hedge designations in place at 31 March 2018.

The analyses exclude the impact of movements in market variables on: the carrying values of gratuity, pension and other postretirement obligations and provisions.

The following assumption has been made in calculating the sensitivity analyses:

- The sensitivity of the relevant statement of profit or loss item is the effect of the assumed changes in respective market risks. This is based on the financial assets and financial liabilities held at 31 March 2018 and 31 March 2017.

Interest rate risk

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 does not have any long term & short term borrowings.

The impact of /(-) 25 bps in bank interest rates on deposits is estimated at /(-) INR 6.40 lacs as on 31.03.2018, /(-) INR 7.70 lacs as on 31.03.2017, without considering any change in deposit amounts.

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 relates primarily to the Company’s operating activities (when revenue or expense is denominated in a foreign currency).

Following table demonstrates Company’s foreign currency exposure

When a derivative is entered into for the purpose of being a hedge, the Company negotiates the terms of those derivatives to match the terms of the hedged exposure. For hedges of forecast transactions the derivatives cover the period of exposure from the point the cash flows of the transactions are forecasted up to the point of settlement of the resulting receivable or payable that is denominated in the foreign currency.

The Company manages its foreign currency risk by hedging transactions that are expected to occur within a maximum three month period for hedges of sales and purchases.

As at 31 March 2018 and 31 March 2017, the Company has hedged US$ Nil and US$ 450,000, for 2-4 months, respectively, of its total foreign currency exposure. This foreign currency risk is hedged by using foreign currency forward contracts.

Foreign currency sensitivity

The following tables demonstrate the sensitivity to a reasonably possible change in uSD exchange rate, with all other variables held constant. The impact on the Company’s profit before tax is due to changes in the fair value of monetary assets and liabilities. The Company’s exposure to foreign currency changes for all other currencies is not material and have not covered in sensitivity analysis.

Commodity price risk

The Company is affected by the price volatility of resin, base raw material for manufacturing PVC Films and being sourced from both domestic and international suppliers. The price volatility is due to demand-supply position in international market and exchange impact arising due to delivery lead time. The upward or downward trend in raw material is generally being passed on to the end customer other than exceptional cases as per business needs and therefore neutralising the exchange risks arising therefrom and as such the impact of such volatility, is difficult to be quantified or measured.

The impact of /(-) 1% in resin cost is estimated at /(-) INR 120 lacs as on 31.03.2018, /(-) INR 115 lacs as on 31.03.2017, without considering any change in sales realisation for any given period.

Equity price risk

The Company has not made investments in equity securities, hence are not susceptible to market price risk arising from uncertainties about future values of the investment securities.

(b) Credit risk

Credit risk is the risk that a counterparty will not meet its obligations under a financial instrument or customer contract, leading to a financial loss. The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks, foreign exchange transactions and other financial instruments. A provision is created for a counter party whose payment is due more than 180 days after its due date.

Trade receivables

Customer credit risk is managed by each business unit subject to the Company’s established policy, procedures and control relating to customer credit risk management. Credit quality of a customer is assessed based on an extensive credit rating scorecard and individual credit limits are defined in accordance with this assessment. Outstanding customer receivables are regularly monitored and any shipments to major customers are generally covered by letters of credit or other forms of credit insurance.

An impairment analysis is performed at each reporting date on an individual basis for major clients. The calculation is based on actual incurred historical data. The maximum exposure to credit risk at the reporting date is the carrying value of each class of financial assets disclosed in note 10. The Company does not hold collateral as security. The Company evaluates the concentration of risk with respect to trade receivables as low, as its customers are located in several jurisdictions and industries and operate in largely independent markets.

Financial instruments and cash deposits

Credit risk from balances with banks and financial institutions is managed by the Company’s treasury department in accordance with the Company’s policy.

The Company’s maximum exposure to credit risk for the components of the Balance Sheet as at 31 March 2018 and 31 March 2017 is the carrying amounts as illustrated in note 10 and note 11. The Company’s maximum exposure relating to financial instruments is noted in the liquidity table below.

(c) Liquidity risk

The table below summarises the maturity profile of the Company’s financial liabilities based on contractual undiscounted payments:

NOTE 12 : CAPITAL MANAGEMENT

For the purpose of the Company’s capital management, capital includes issued equity capital 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 a strong credit rating and healthy capital ratios in order to support its business and maximise shareholder value. The Company does not have short term/long term borrowings and manages its working capital requirements through internal sources.

The position of net current assets and total shareholders equity are as follows -

NOTE 13 : STANDARDS ISSUED BUT NOT YET EFFECTIVE

In March 2017, The Ministry of Corporate Affairs issued the Companies (Indian Accounting Standards) (Amendments) Rules, 2017, notifying amendments to Ind AS-7, ‘Statement of Cash Flows’ and Ind AS-102, ‘Share Based Payments’. These amendments are in accordance with the recent amendment made by International Accounting Standards Board, IAS 6 to IAS 7, ‘Statement of cash flows’ and IFRS, ‘Share Based Payments’, respectively. The amendments are applicable to the company from 1 April 2017.

Amendment to Ind AS 7:

The Amendment to Ind AS 7 requires the entities to provide disclosure that enable users of financial statements to evaluate changes in liabilities arising from financing activities, including both changes arising from cash flow changes and non-cash changes, suggesting inclusion of a reconciliation between the opening and closing balances in the balance sheet for liabilities arising from financing activities, to meet the disclosure requirement. The Company is evaluating the requirement of the amendment and the effect on the financial statements is being evaluated.

Amendment to Ind AS 102:

The Amendment to Ind AS 102 provides specific guidance to measurement of cash-settled awards, modification of cash settled awards and awards that include a net settlement feature in respect of withholding taxes. Since the Company does not have cash settled awards or awards with net settlement features, this amendment does not have any effect on the financial statements of the Company.

NOTE 14 : WORKING CAPITAL FACILITIES BY BANK

Bank of Maharashtra has sanctioned working capital facilities which are secured by hypothecation of stock and book debts.

NOTE 15 : PREVIOUS YEAR FIGURES

Previous year figures have been regrouped/reclassified, where necessary, to confirm to current year’s classification.

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Mar 31, 2016

(b) Terms/rights attached to equity shares

The Company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividend in Indian rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders in the ensuing annual general meeting.

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

Note - Receivable in respect of non-core activities

In terms of the agreement with Kalpataru Ltd (KL) (formerly known as Kalpataru Homes Ltd) for disposal of assets of the activities identified as non-core (referred to as non-core assets) the Company is yet to realize an amount of Rs. 245.74 lakhs. The delay in the realization is on account of the pendency of arbitration proceedings. As the realization of this amount is underwritten by KL, the management is confident of full recovery of non-core dues in due course. Further the Company has received interest income of Rs. 14.74 lakhs (Previous year Rs. 14.70 lakhs) from KL on account of delay in realization.

# Excise duty on sales amounting to Rs. 2343.68 lakhs (March 31, 2015: Rs. 2437.76 lakhs) has been reduced from sales in the statement of profit & loss and excise duty on increase/decrease in stock amounting to (-) Rs. 33.43 lakhs, (March 31, 2015: Rs.(-) 44.75 lakhs) has been considered as (income)/expense in note 22.

Note: The Company has receivable from Bilcare Limited of Rs. 682.03 lakhs as of March 31, 2016 of which Rs. 338.50 lakhs pertain to receivables for supplies made, Rs. 300 lakhs pertain to Inter-corporate deposits and Rs. 43.53 lakhs pertain to Interest on inter-corporate deposits. The Company has made a provision for doubtful debts & advances for the total amount out of abundant precaution. Further, the Company has been informed by Bilcare Limited that they are undertaking restructuring of their debts and are hopeful of settling the dues.

(B) Gratuity and other employment benefits:

(i) The Company operates a defined benefit plan for gratuity. Under the plan every employee who has completed at least five years of service gets a gratuity on departure at 15 days of last drawn salary for each completed year of service. The scheme is funded with an insurance company in the form of qualifying insurance policies.

(ii) The Company provides compensation for accumulated leaves to its employees restricted to a pre-defined limit. Every employee is eligible to encash his accumulated leaves at the rate of his last drawn gross salary. The liability for leave encashment is unfunded.

The following table summarize 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 for the plan.

The estimates of future salary increases, considered in actuarial valuation, take account of inflation, seniority, promotion and other relevant factors, such as supply and demand in the employment market. The overall expected rate of return on assets is determined based on the market prices prevailing on that date, applicable to the period over which obligation is to be settled.

C Additional related parties as per Companies Act, 2013 with whom transactions have taken place during the year

Enterprises in which a director holds along with his relatives, more than 2% of its paid-up share capital-

(i) Mr. Mohan H. Bhandari, Director is the promoter director of Bilcare Limited

(ii) Mr. Mofatraj P. Munot, Director is the executive chairman of Kalpataru Ltd.

The above figures exclude provision for gratuity and leave encashment which are actuarially determined on an overall Company basis.

Note: The Managerial remuneration paid to the Managing Director is in accordance with section 198 of the Companies Act, 2013 read with the Ministry of Corporate Affairs general circular No. 07/2015 dated 10th April, 2015.

The above figures exclude provision for gratuity and leave encashment which are actuarially determined on an overall company basis. Further, salary for year ended March 31, 2016 excludes accrued leave salary paid of Rs. 10.63 lakhs.

1. CAPITAL AND OTHER COMMITMENTS

(i) At 31 March, 2016, the Company has commitments of Rs. 90.93 lakhs for purchase of tangible and intangible assets (31 March, 2015: Rs. 219.02 lakhs).

(ii) For commitments relating to leasing obligation, refer Note 26.

(b) All the assets of the Company except Rs. 416.63 lakhs (Previous year Rs. 536.79 lakhs) are within India. All assets acquired during the year are within India.

2. CURRENT LIABILITIES:

Current liabilities as at March 31, 2016 include certain old statutory dues amounting to Rs. 269 lakhs for which the Company is in the process of ascertaining the veracity of the liability, including obtaining a legal view. The consequential impacts would be determined and accounted for on completion of evaluation.

3. WORKING CAPITAL FACILITIES BY BANK

Bank of Maharashtra has sanctioned working capital facilities which are secured by hypothecation of stocks and book debts.

4. PREVIOUS YEAR FIGURES

Previous year figures have been regrouped/reclassified, where necessary, to conform to current year’s classification.

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Mar 31, 2015

Year ended/ Year ended/ as on 31st as on 31st March, 2015 March, 2014 Rs. in lakhs Rs. in lakhs

1. Contingent Liabilities:

(a) (i) Demands of Excise authorities which are disputed in appeals by the Company 601.44 477.16

(ii) Appeals filed by Excise authorities in the Supreme Court of India/CESTAT against orders passed by CESTAT/ Commissioner (Appeals) in favour of the Company 845.42 845.42

(iii) Other excise notices pending adjudication 211.68 314.17

(b) Demands of Income tax authorities which are disputed in appeals and not provided for 400.00 400.00

(c) Claims against the Company not acknowledged as debts - estimated 412.49 389.90

(d) Estimated amount of contracts remaining to be executed on Capital Account and not provided for 219.02 7.38

2. Bank of Maharashtra has sanctioned working capital facilities which are secured by hypothecation of stocks and book debts.

3. In terms of the agreement with Kalpataru Ltd. (KL) (formerly known as Kalpataru Homes Ltd.) for disposal of assets of the activities identified as non-core (referred to as non-core assets) the Company is yet to realise an amount of Rs. 245.74 lakhs. The delay in the realisation is on account of the pendency of arbitration proceedings. As the realisation of this amount is underwritten by KL, the management is confident of full recovery of non-core dues in due course. Further the Company has received interest income of Rs. 14.70 lakhs (Previous year Rs. 14.70 lakhs) from KL on account of delay in realisation.

4. Segment Reporting as per AS 17:

The Company is engaged mainly in processing of plastic polymers and after considering the nature of raw materials, class of customers and the methods of sales & distribution of the products, the Board is of the considered view that the Company's products are covered under a single reportable segment as per Accounting Standard on Segment Reporting (AS 17) issued by ICAI.

5. Depreciation for the current year has been calculated as per Schedule II to the Companies Act, 2013. Further in respect of assets where the remaining useful life is NIL as on 1st April, 2014 the residual value of the said assets has been adjusted against the Opening balance of retained earnings (net of deferred tax of Rs. 17.15 lakhs) amounting to Rs. 33.30 lakhs. Depreciation for the year ended 31st March, 2015 is lower by Rs. 44.72 lakhs due to this revision.

6. Related Party Disclosure as per AS 18:

(i) List of Related Parties:

(a) Enterprise where control exists Holding Company:

* Bilcare Research GmbH

* Films Germany Holding GmbH

* Bilcare Research AG

* Bilcare Research Holding AG Co.

* Bilcare Mauritius Ltd.

* Bilcare Ltd.

(b) Related parties with whom the Company had transactions including Fellow subsidiaries

* Bilcare Research GmbH

* Bilcare Research AG

* Bilcare Ltd.

* Kalpataru Ltd.

(c) Indian Promoters: Mr. M. P. Munot, Director, his relatives, associates and associate companies.

(ii) Relationship:

(a) Bilcare Research GmbH, which is part of Bilcare group holds 51% of the Share Capital of the Company. Mr. Mohan H. Bhandari, Director is the Promoter Director of Bilcare Ltd.

(b) Indian Promoters hold in aggregate over 20% of the Share Capital of the Company.

(iii) Key management Personnel in terms of Section 203 of Companies Act, 2013

Mr. Robin Baneijee - Managing Director

Mr. K. R. Viswanathan - CFO & Company Secretary

7. Previous year figures have been re-grouped and re-classified, wherever necessary.

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Mar 31, 2014

1.Contingent Liabilities:

(a) (i) Demands of Excise authorities which are disputed in appeals by the Company 477.16 477.16

(ii) Appeals filed by Excise authorities in the Supreme Court of India/CESTAT against orders passed by CESTAT/Commissioner (Appeals) in favour of the Company 845.42 845.42

(iii)Other excise notices pending adjudication 314.17 305.14

(b)Demands of Income tax authorities which are disputed in appeals and not provided for 400.00 400.00

(c)Claims against the Company not acknowledged as debts- estimated 389.90 383.57

(d) Estimated amount of contracts remaining to be executed on Capital Account and not provided for 7.38 —

2. Bank of Maharashtra has sanctioned working capital facilities which are secured by hypothecation of stocks and book debts.

3. In terms ofthe agreement with Kalpataru Ltd. (KL) (formerly known as Kalpataru Homes Ltd.) for disposal of assets of the activities identified as non-core (referred to as non-core assets) the Company is yet to realise an amount of Rs. 245.74 lakhs.The delay in the realisation is on account of the pendency of arbitration proceedings.As the realisation of this amount is underwritten by KL, the management is confident of full recovery of non-core dues in due course. Further the Company has received interest income of Rs. 14.70 lakhs (Previous year Rs. 14.70 lakhs) from KL on account of delay in realisation.

4. Segment Reporting as per AS 17:

The Company is engaged mainly in processing of plastic polymers and after considering the nature of raw materials, class of customers and the methods of sales & distribution of the products, the Board is of the considered view that the Company''s products are covered under a single reportable segment as per Accounting Standard on Segment Reporting (AS 17) issued by ICAI.

5. Related Party Disclosure as per AS 18:

(i) List of Related Parties:

(a) Enterprise where control exists Holding Company:

* Bilcare Research GmbH - Bilcare Research AG

* Bilcare Germany GmbH & Co. KG - Bilcare Mauritius Ltd.

* Films Germany Holding GmbH - Bilcare Ltd.

(b) Related parties with whom the Company had transactions including Fellow subsidiaries

* Bilcare Research GmbH - Bilcare Ltd.

* Bilcare Research AG - Kalpataru Ltd.

(c) Indian Promoters: Mr. M.P. Munot, Director, his relatives, associates and associate companies.

6. Related Party Disclosure as per AS 18: (Contd.)

(ii) Relationship:

(a) Bilcare Research GmbH, which is part of Bilcare group holds 51% of the Share Capital of the Company.

(b) Indian Promoters hold in aggregate over 20% of the Share Capital of the Company.

(iii) Key management Personnel

Mr. Robin Banerjee - Managing Director - Effective 29th April, 2013 Mr. R. Balasubramanian - Managing Director - Upto 28th April, 2013 Mrs. Naina P. Hegde - Dy. Managing Director - Upto 31st August, 2013

7. Previous year figures have been re-grouped and re-classified, wherever necessary.

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Mar 31, 2013

1. Contingent Liabilities:

(a) (i) Demands of Excise authorities which are disputed in appeals by the Company 477.16 453.06

(ii) Appeals fled by Excise authorities in the Supreme Court of India/CESTAT against orders passed by CESTAT/Commissioner (Appeals) in favour of the Company 845.42 845.42

(iii) Other excise notices pending adjudication 305.14 292.85

(b) Demands of Income tax authorities which are disputed in appeals and not provided for 400.00 400.00

(c) Claims against the Company not acknowledged as debts – estimated 383.57 366.44

(d) Estimated amount of contracts remaining to be executed on Capital Account and not provided for — 116.52

2. Bank of Maharashtra has sanctioned working capital facilities which are secured by hypothecation of stocks and book debts and by a charge by way of an equitable mortgage by deposit of title deeds over the following immovable properties of the Company:

– Plot No 76, MIDC Industrial Estate,Satpur, Nasik.

– Plot Nos C-13 and C-16, Wagle Industrial Estate, Thane.

– Offce blocks admeasuring 5640 sq.ft. at Block ''D'', Shivsagar Estate, Worli, Mumbai.

3. In terms of the agreement with Kalpataru Ltd (KL) (formerly known as Kalpataru Homes Ltd ) for disposal of assets of the activities identifed as non-core (referred to as non-core assets) the Company is yet to realise an amount of Rs 245.74 lakhs.The delay in the realisation is on account of the pendency of arbitration proceedings.As the realisation of this amount is underwritten by KL, the management is confdent of full recovery of non-core dues in due course.

4. Segment Reporting as per AS 17:

The Company is engaged mainly in processing of plastic polymers and after considering the nature of raw materials, class of customers and the methods of sales & distribution of the products, the Board is of the considered view that the Company''s products are covered under a single reportable segment as per Accounting Standard on Segment Reporting (AS 17) issued by ICAI.

5. Related Party Disclosure as per AS 18:

(i) List of Related Parties:

(a) Enterprise where control exists Holding Company: – Bilcare Research GmbH – Bilcare Research GmbH Co. & KG – Films Germany Holding GmbH – Bilcare Research AG – Bilcare Mauritius Ltd – Bilcare Ltd

(b) Related parties with whom the Company had transactions including Fellow subsidiaries

– Bilcare Research GmbH – Bilcare Research AG – Bilcare Ltd – Kalpataru Ltd

(c) Indian Promoters: Mr M.P. Munot, Director and Mr S.K. Dalmia, their relatives,associates and associate companies.

(ii) Relationship:

(a) Bilcare Research GmbH, which is part of Bilcare group holds 51% of the Share Capital of the Company. Mr. Mohan H. Bhandari, Director is the Promoter of Bilcare Ltd.

(b) Indian Promoters hold in aggregate over 21% of the Share Capital of the Company.

(iii) Key management Personnel

Mr. R. Balasubramanian – Managing Director

Mrs. Naina P. Hegde – Dy. Managing Director – Effective 25th October, 2012

6. Disclosure of Leases as per AS 19:

The Company has various operating leases for offces, godowns and residential premises for employees that are renewable on a periodic basis and cancellable at its option. The Company does not have any non-cancellable operating leases.

Rental expenses for operating leases

7. Previous year fgures have been re-grouped and re-classifed, wherever necessary.

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Mar 31, 2012

1 Bank of Maharashtra has sanctioned working capital facilities which are secured by hypothecation of stocks and book debts and by a charge by way of an equitable mortgage by deposit of title deeds over the following immovable properties of the Company :

- Plot No 76, MIDC Industrial Estate,Satpur, Nasik.

- Plot Nos C-13 and C-16, Wagle Industrial Estate, Thane.

- Office blocks admeasuring 5640 sq.ft. at Block 'D', Shivsagar Estate- Worli,Mumbai.

2 In terms of the agreement with Kalpataru Ltd (KL) (formerly known as Kalpataru Homes Ltd ) for disposal of assets of the activities identified as non-core (referred to as non-core assets) the Company is yet to realise an amount of Rs 245.74 lakhs.The delay in the realisation is on account of the pendency of arbitration proceedings. As the realisation of this amount is underwritten by KL, the management is confident of full recovery of non-core dues in due course.

3 Segment Reporting as per AS 17:

The Company is engaged mainly in processing of plastic polymers and after considering the nature of raw materials,class of customers and the methods of sales & distribution of the products, the Board is of the considered view that the Company's products are covered under a single reportable segment as per Accounting Standard on Segment Reporting ( AS 17 ) issued by ICAI.

4 Related Party Disclosure as per AS 18:

(i) List of Related Parties :

(a) Enterprise where control exists Holding Company:

- Bilcare Research GmbH

- Bilcare Germany Management GmbH & Co. KG

- Bilcare Germany Management GmbH

- Films Germany Holding GmbH

- Bilcare AG

- Bilcare Mauritius Ltd

- Bilcare Ltd

(b) Related parties with whom the Company had transactions including Fellow subsidiaries

- Bilcare Research GmbH

- Bilcare Research S R L

- Bilcare Research AG

- Bilcare Ltd

(c) Indian Promoters: Mr M.P. Munot Director and Mr S.K. Dalmia , their relatives and their associate companies .

(ii) Relationship:

(a) Bilcare Research GmbH, which is part of Bilcare group holds 51 % of the Share Capital of the Company,after 31st August,2010 and INEOS Films GmbH,which is part of Ineos group, held 51% of the Share Capital of the Company upto 31st August,2010.

(b) Indian Promoters hold in aggregate over 18% of the Share Capital of the Company.

5 As per the requirements of revised Schedule VI to the Companies Act,1956,the Company has re-classified its assets and liabilities into current and non-current based on the normal operating cycle. Previous year figures have been accordingly re-grouped and re-classified.

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Mar 31, 2011

1. Contingent Liabilities: Year ended/ Year ended/ as on 31st as on 31st March,2011 March, 2010 Rs in lakhs Rs. in lakhs

(a) (i) Demands of Excise authorities which are disputed in appeals by the Company 453.06 453.06

(ii) Appeals fled by Excise authorities in the Supreme Court of India/CESTAT against orders passed by CESTAT/ Commissioner (Appeals) in favour of the Company 845.42 251.19

(iii) Other excise demands pending adjudication 283.14 154.71

(b) Demands of Income tax authorities which are disputed in appeals by the Company and not provided for - 2326.72

(c) Claims against the Company not acknowledged as debts - estimated 331.97 323.92

2. Bank of Maharashtra has sanctioned working capital facilities which are secured by hypothecation of stocks and book debts and by a charge by way of an equitable mortgage by deposit of title deeds over the following immovable properties of the Company :

- Plot No 76, MIDC Industrial Estate, Satpur, Nasik.

- Plot Nos C-13 and C-16, Wagle Industrial Estate, Thane.

- Offce blocks admeasuring 5640 sq.ft. at Block ‘D’, Shivsagar Estate- Worli,Mumbai.

3. During the year ended 31st December,1997 the Company revalued its Head Office premises resulting in net increase in value of buildings by Rs.448.50 lakhs which was credited to Revaluation Reserve. On a review of the value of the premises on current basis and based on a valuation report, the Company wrote down the revalued amount by Rs 160 lakhs (net) during the period ended 31st March,2004.

Depreciation in respect of the said premises has been computed on the adjusted value after taking into consideration its revised balance life as per the Valuation Report. Proportionate depreciation on revaluation amounting to Rs.12 lakhs (Previous year Rs 12 lakhs) has been transferred to the Profit and Loss Account from the Revaluation Reserve

4. In terms of the agreement with Kalpataru Ltd (KL) (formerly known as Kalpataru Homes Ltd ) for disposal of assets of the activities identified as non-core (referred to as non-core assets) the Company is yet to realise an amount of Rs. 245.74 lakhs. The delay in the realisation is on account of the pendency of arbitration proceedings. As the realisation of this amount is underwritten by KL, the management is confident of full recovery of non-core dues in due course.

5. None of the Suppliers/Service providers have intimated their registration under Micro, Small and Medium Enterprises Development Act, 2006 to the Company. In view of this, information required to be disclosed under Section 22 of the said Act is not given.

6. Segment Reporting as per AS 17:

The Company is engaged mainly in processing of plastic polymers and after considering the nature of raw materials, class of customers and the methods of sales & distribution of the products, the Board is of the considered view that the Company’s products are covered under a single reportable segment as per Accounting Standard on Segment Reporting ( AS 17 ) issued by ICAI.

7. Related Party Disclosure as per AS 18: (i) List of Related Parties :

(a) Enterprise where control exists Holding Company: Upto 31st August,2010

- INEOS Films GmbH

- INEOS Films Deutschland GmbH

- INEOS Films Deutschland GmbH & Co .KG

- INEOS Films Limited – INEOS Vinyls Limited

- INEOS Vinyls Holdings Limited

- Hawkslease Finance Company Limited

- INEOS Vinyls Group Limited

- INEOS Holdings Limited

- INEOS Group Holdings Plc

- INEOS Intermediate Holdings Limited

- INEOS Investment Holdings Limited

- INEOS Group Limited

Holding Company: After 31st August, 2010

- Bilcare Research GmbH

- Bilcare Germany Management GmbH & Co. KG -

- Bilcare Germany Management GmbH

- Films Germany Holding GmbH

- Bilcare AG

- Bilcare Mauritius Ltd

- Bilcare Ltd

(b) Related parties with whom the Company had transactions including Fellow subsidiaries

- NEOS Films GmbH

- INEOS Films Limited

- INEOS Films Staufen GmbH

- INEOS Vinyls Sales GmbH

- INEOS Melamines

- Bilcare Research GmbH

- Bilcare Research S R L

- Bilcare Ltd

(c) Indian Promoters: Mr Mofatraj P Munot Director and Mr Shivkumar Dalmia, their relatives and their associate companies.

(ii) Relationship:

(a) INEOS Films GmbH, which is part of Ineos group, held 51% of the Share Capital of the Company, upto 31st August, 2010 and Bilcare Research GmbH, which is part of Bilcare group holds 51 % of the Share Capital of the Company, after 31st August, 2010.

(b) Indian Promoters hold in aggregate over 17% of the Share Capital of the Company.

(iii) Key management Personnel

(a) Mr R. Balasubramanian - Managing Director

(b) Mr Steve Reynolds - Director ( Resigned on 8th November, 2010 )

8. Disclosure of Leases as per AS 19:

The Company has various operating leases for offces, godowns and residential premises for employees that are renewable on a periodic basis and cancellable at its option. Rental expenses for operating leases recognised in the Profit and Loss account for the year is Rs. 28.74 lakhs ( Previous year Rs. 28.10 lakhs). Company does not have any non-cancellable operating leases as on date.

9 Details of movement in provision in accordance with AS 29:

Outfow in respect of above provisions ( other than Proposed dividend & Tax on dividend ) both timing and certainty would depend on development or outcome of these events.

10. Previous years figures have been regrouped/recast wherever necessary

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Mar 31, 2010

1. Contingent Liabilities:

Year ended/ Year ended/ as on 31st as on 31st March, 2010 March, 2009 Rs. in lakhs Rs. in lakhs



(a) (i) Demands of Excise authorities which are disputed in appeals by 453.06 458.06 the Company

(ii) Appeals fled by Excise authorities in the Supreme Court of India against 251.19 251.19 orders passed by CESTAT in favour of the Company

(iii) Other excise demands 154.71 154.71

(b) Demands of income tax authorities which are disputed in appeals by the 2326.72 - Company and not provided for

(c) Claims against the Company not acknowledged as debts - estimated 323.92 307.15

2. Bank of Maharashtra has sanctioned working capital facilities which are secured by hypothecation of stocks and book debts and by a charge by way of an equitable mortgage by deposit of title deeds over the following immovable properties of the Company:

- Plot No. 76, MIDC Industrial Estate, Satpur, Nasik.

- Plot Nos. C-13 and C-16, Wagle Industrial Estate, Thane.

- Office blocks admeasuring 5640 sq.ft. at Block ‘D’, Shivsagar Estate, Worli, Mumbai.

3. During the year ended 31st December, 1997 the Company revalued its Head Office premises resulting in net increase in value of buildings by Rs. 448.50 lakhs which was credited to Revaluation Reserve. On a review of the value of the premises on current basis and based on a valuation report, the Company wrote down the revalued amount by Rs. 160 lakhs (net) during the period ended 31st March, 2004.

Depreciation in respect of the said premises has been computed on the adjusted value after taking into consideration its revised balance life as per the Valuation Report. Proportionate depreciation on revaluation amounting to Rs. 12 lakhs (Previous year Rs. 12 lakhs) has been transferred to the Profit and Loss Account from the Revaluation Reserve.

4. In terms of the agreement with Kalpataru Ltd (KL) (formerly known as Kalpataru Homes Ltd) for disposal of assets of the activities identifed as non-core (referred to as non-core assets) the Company is yet to realise an amount of Rs. 245.74 lakhs. The delay in the realisation is on account of the pendency of arbitration proceedings. As the realisation of this amount is underwritten by KL, the management is confident of full recovery of non-core dues in due course.

5. Suppliers/Service providers covered under Micro, Small and Medium Enterprises Develpment Act, 2006 have not furnished the information regarding fling necessary memorandum with the appropriate authority. In view of this, information required to be disclosed under Section 22 of the said Act is not given.

6. Segment Reporting as per AS 17:

The Company is engaged mainly in processing of plastic polymers and after considering the nature of raw materials, class of customers and the methods of sales & distribution of the products, the Board is of the considered view that the Company’s products are covered under a single reportable segment as per Accounting Standard on Segment Reporting (AS 17) issued by ICAI.

7. Related Party Disclosure as per AS 18: (i) List of Related Parties:

(a) Enterprise where control exists Holding Company:

- INEOS Films GmbH

- INEOS Vinyls Deutschland GmbH

- INEOS Vinyls Deutschland GmbH & Co. KG

- INEOS Films Limited

- INEOS Vinyls Limited

- INEOS Vinyls Holdings Limited

- Hawkslease Finance Company Limited

- INEOS Vinyls Group Limited

- INEOS Holdings Limited

- INEOS Group Holdings Plc

- INEOS Intermediate Holdings Limited

- INEOS Investment Holdings Limited

- INEOS Group Limited

(b) Related parties with whom the Company had transactions including Fellow subsidiaries – INEOS Films GmbH

- INEOS Vinyls UK Limited

- INEOS Films Limited

- INEOS Films Italia SRL

- INEOS Films Staufen Gmbh

- INEOS Vinyls Sales GmbH

- INEOS Melamines

(c) Indian Promoters: Mr. M.P. Munot, Director and Mr. S.K. Dalmia, their relatives and their associate companies.

(ii) Relationship:

(a) INEOS Films GmbH, which is part of Ineos group, hold 51% of the Share Capital of the Company.

(b) Indian Promoters hold in aggregate over 17% of the Share Capital of the Company.

(iii) Key Management Personnel

(a) Mr. R. Balasubramanian - Managing Director

(b) Mr. David Thompson - Director (upto 27th January, 2010)

(c) Mr. Steve Reynolds - Director

8. Previous year figures have been regrouped/recast wherever necessary.