Notes to Accounts of Deccan Polypacks Ltd.

Mar 31, 2024

j) Provisions

A provision is recognized when an enterprise has a present obligation (legal or constructive) as result of past
event and it is probable that an outflow of embodying economic benefits of resources will be required to settle
a reliably assessable obligation. Provisions are determined based on best estimate required to settle each
obligation at each balance sheet date. If the effect of the time value of money is material, provisions are
discounted using a current pre-tax rate that reflects, when appropriate, the risks specific to the liability. When
discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

k) Contingent liabilities

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

l) Earnings per share

Basic earnings per share are calculated by dividing the net profit or loss for the year attributable to equity
shareholders (after deducting attributable taxes) by the weighted average number of equity shares outstanding
during the year. The weighted average number of equity shares outstanding during the year is adjusted for
events of bonus issue.

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

m) Taxes

Tax expense comprises of current and deferred tax.

Current income tax

Current income tax is measured at the amount expected to be paid to the tax authorities in accordance with the
Indian Income Tax Act. Deferred income taxes reflects the impact of current year timing differences between
taxable income and accounting income for the year and reversal of timing differences of earlier years. Current
income tax relating to items recognised outside profit or loss is recognised outside profit or loss (either in other
comprehensive income or in equity). Current tax items are recognised in correlation to the underlying transaction
either in OCI or directly in equity.

Deferred income tax

The Company is incurring losses for the past many years and operations have stopped for the past 6 years. In
view of this, neither Deferred Tax Assets or Liabilities are recognised

Significant accounting judgements, estimates and assumptions

The preparation of financial statements in conformity with the recognition and measurement principles of IND
AS requires management to make judgements, estimates and assumptions that affect the reported balances of
revenues, expenses, assets and liabilities and the accompanying disclosures, and the disclosure of contingent
liabilities. Uncertaininty 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.

n) 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.

i) Useful lives of property, plant and equipment

The Company reviews the useful life of property, plant and equipment at the end of each reporting period.
This reassessment may result in change in depreciation expense in future periods.

ii) Provisions and contingent liabilities

A provision is recognised when the Company has a present obligation as a result of past event and it is
probable that an outflow of resources will be required to settle the obligation, in respect of which the
reliable estimate can be made. Provisions (excluding retirement benefits and compensated absences) are
not discounted to its present value and are determined based on best estimate required to settle the
obligation at the balance sheet date. These are reviewed at each balance sheet date adjusted to reflect the
current best estimates. Contingent liabilities are not recognised in the financial statements. A contingent
asset is neither recognised nor disclosed in the financial statements.

16. Contingent Liabilities

Sales Tax case with the Appellate Tribunal for the year 2002-03 has been upheld in the favour of the revenue and the balance
that is payable has been duly remitted. There are no contingent liabilities as on 31^st March, 2024.

17. Financial Instruments-accounting classification and fair value measurement

The carrying values of trade and other receivables, other assets, cash and short-term deposits, trade and other
payables, based on their national amounts, reasonably approximate their fair values because these are mostly short
term in nature or are re-priced frequently.

18. Financial risk management objectives and polices

The Company is exposed to market risk, credit risk and liquidity risk. The Company’s Senior Management overseas
the management of these risks. The Company’s senior management ensures that the company’s financial risk
activities are governed by appropriate policies and procedures and that financial risks are identified, measured and
managed in accordance with the Company’s policies and risk objectives. The Board of Directors reviews and agrees
policies for managing each of these risks, which are summarized below.

i) 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
loans and borrowings.

ii) 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’s exposure to the risk of changes in market interest
rates relates primarily to the Company’s long-term debt obligations with floating interest rates. The Company
manages its interest rate risk by having a balanced portfolio of fixed and variable rate loans and borrowings.

iii) Credit Risk

Credit risk is the risk that 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 trade receivables.

iv) Liquidity Risk

The Company’s objective is to maintain a balance between continuity of funding and flexibility through the
use of bank deposits and loans.

19. 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 maintain strong credit rating and healthy capital ratios in order to support its business and maximise
the shareholder value.

22. Going Concern basis of accounting

As the Company has suspended its manufacturing operations and has sold of its land, buildings and manufacturing
facilities and in the absence of final action plan / affairs and operations of the Company, the Financial Statements of
the Company have not been prepared on a going concern basis. These Financial Statements have been prepared on a
realizable value basis.

23. External Confirmations

The Company has not obtained confirmation of balances from the parties from whom monies are receivable / to
whom monies are payable. The management is of the view that absence of confirmation of balances will not have any
adverse impact on the financial statements.

OTHER NOTES:

a) No charges or satisfaction is yet to be registered with Registrar of Companies beyond the statutory period.

b) The Company has complied with the no. of layers prescribed u/s 2(87) read with the applicable Rules.

c) There is no Scheme of Arrangements that has been approved in terms of sections 230 to 237.

d) Thecompany has not advanced/loaned/invested or received funds (either borrowed funds or share premiumorany other sources or kind of funds) to
any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding (whether recorded in writing or otherwise) thatthe
Intermediary shall directlyor indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalfof the company
(Ultimate Beneficiaries) or provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries.

e) There are no transactions that are not recorded in the books of account to be surrendered or disclosed as income during the year in the tax
assessments under the Income Tax Act, 1961.

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

g) Previous year figures have been regrouped /reclassified wherever necessary to suit the current year''s layout.

Note: During the financial year the company has not carried out any commerical operations and the ratios are not comparable to the previous
year. The company has liquidated the deposits and repaid the outstanding loans.

As per our report of even date attached

For GMK Associates For and on behalf of the Board of Directors

Chartered Accountants Deccan Polypacks Limited

FRN: 006945S CIN: L24134TG1984PLC005215

M S Prakasa Rao DRSP Raju DV Prudvi Raju

P_art_ner Director Whole Time Director

Membership No. 027278 DIN: 00306612 DIN: 03024648

Place : Hyderabad
Date : 28-05-2024

---

Mar 31, 2015

1.1 Rights, Preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

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.

1.2 Security for Working Capital and Cash Credit Limits

Working Capital term Loan is secured by first charge (Hypothecation) companies fixed assets including equitable mortgage of factory land admeasuring 2.85 acres and buildings situated at Sy No.142/A at Bollaram Village, Medak Dist.

Cash Credit Limit is secured by Exclusive charge (Hypothecation) on all chargeable current assets of the company Working Capital Term Loan and Cash Credit Limits are collaterally secured by:

i) Certain Properties held in the name of Shri DRSP Raju, Director and Smt D. Shakuntala, Shri D. Rama Raju and Smt Radha Mani, relatives of Directors.

ii) Pledge of 74,600 equity shares of the company held by the promoters iii) Cash Collateral of Rs. 20,00,000/- Primary Securities of Working Capital Term Loan and Cash Credit Limits are collaterally secured to Cash Credit Limit and Working Capital Term Loan respectively.

Working Capital Term Loan and Cash Credit Limits are further secured by personal guaranties of Shri DRSP Raju, Director and Smt Shakuntala, Shri D. Rama raju and Smt Radha Mani, relatives of directors.

1.3 Repayment terms

Working Capital Term Loan is repayable in a structured 49 monthly installments Commencing from September 2015 to September 2019.

1.4 Interest free unsecured loans are repayable only upon improvement in liquidity position of the Company or out of fresh infusion of funds into the Company for operations.

1.5 The Govt. of Andhra Pradesh vide G.O.Nos 108 & 134 1 & C (IP) Department, dated 20.06.1996 and 01.07.1996 has allowed the company to defer the sales tax payments for a period of Fourteen years from 01.07.1997 on expanded capacity ( i.e. beyond base production of 898.40 MTPA ) subject to a maximum exemption of Rs. 3,79,55,720/-. The Company had availed total sale tax deferment upto 2010-11 Rs.2,74,10,681/-The scheme ended on 30.06.2011. Repayment of deferred liability commenced during 2012-13 and will be completed during 2024-25.

1.6 The Company has not received any intimation from 'suppliers' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any, relating to amounts unpaid as at the yearend together with interest paid/payable as required under the said Act have not been given.

1.7 Sales Tax Appeal for the year 2002-2003 is pending at Appellate Tribunal, Andhra Pradesh for a liability of Rs. 7,20,875/- out of which an amount of Rs. 3,60,440/- has been paid at the time of appeal.

NOTE NO. 2. Going Concern basis of Accounting

Company, on July 15,2014, has temporarily suspended its manufacturing operations, due to frequent power cuts, labour related issues, shutdown in the market off take and frequent machinery break downs. The same has been informed to Bombay Stock Exchange on August 2, 2014.

Company is intending and making all efforts to commence the operations at the earliest. In this regard the Company has also got restructured it's borrowings from State Bank of India Further, management is also planning to induce more funds for working capital limits for commencing the operations of the Company at the earliest. Accordingly, the financial statement of the company have been drawn on a going concern basis.

NOTE NO. 3 Restructuring of borrowings from State Bank of India

State Bank of India, vide their letter dated February 4, 2015 has approved the restructuring of Credit Facilities. Accordingly, existing Cash Credit limits are converted into working capital term loan of Rs 5.00 Crores and Cash Credit Limit of Rs 1.5 Crores.

Bank has been reserved it's right to recompense, when the company turns the corner and the restructuring is successfully completed, the sacrifice undertaken by the bank should be recouped out of the future profits / cash accruals.

NOTE NO. 4 Impairment

Company recognizes all its assets including land, buildings and plant and machinery as a single Cash Generating Unit. Considering the increase in land values, management at present doesn't foresee any impairment in the carrying values of fixed assets.

NOTE NO. 5 Stock Laws

Company's inventory represents Poly propylene cut Lengths (work in process) earmarked for certain customers. Company was expecting the repeat orders from these customers. However , as these repeat orders we're not crystalized. The material in process is not having shelf life, the company has recognised the stock loss of Rs. 12,77,08,286/- and adjusted the same in changes in inventory as at 31st March, 2015.

NOTE NO.6 Confirmation of Balances

The management has not obtained confirmation of balances from Trade payable, Trade Receivables Advances to Creditors as at March31,2015 in the absence of confirmation of balances from these parties, provision if any to be made for any adverse variations in the carrying amounts are not quantified. However, management is confident that the settlement with the said parties will be made at the carrying amounts and no provision is required at present for adverse variations. Adjustment, if any will be made on settlement.

NOTE NO. 7 Segment Information

The Company operates PP/HDPE Woven Sacks and same geographical location, hence there are no different reporting segments.

NOTE NO. 8 Related Party Transactions

8.1 List of related parties with whom transactions have taken place and relationships.

S.No. Name of the related Party Relationship

1. Sri DVR Raju Key Management Personnel (KMP)

2. Sri DRSP Raju Key Management Personnel (KMP)

3. Smt. D. Subhadra Relatives of Key Management Personnel (RKMP) 4 . Smt. Ch. Gayathri Relatives of Key Management Personnel (RKMP)

5. Sri D. Rama Raju Relatives of Key Management Personnel (RKMP)

6. Sri D.V. Prudvi Raju Relatives of Key Management Personnel (RKMP)

7. Sri Venugopal Reddy Others

8. M/s. Vayhan Coffee Ltd Others

9. M/s. DSL Finance Others

10. M/s. DCL Chemplast Ltd Others

NOTE NO. 9

Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classi- fication/disclosure

---

Mar 31, 2013

NOTENO.1

Company is located at Sy.No. 142A, EDABollaram, (Via) Miyapur, Jinnaram Mandal, Medak District, A.P.-502 325. It is manufacturing PP/HDPE Woven Sacks

NOTE NO. 2 Segment Information

The company operates PP/HDPE Woven Sacks and same geographical location, hence there are no different reporting segments.

---

Mar 31, 2012

NOTENO.1

Company is located at Sy.No.142A, IDABollaram, (Via) Miyapur, Jinnaiam Mandal, Medak District, A.P-502 325. It is manufacturing PP/HDPE Woven Sacks

2.1 Rights, Preferences and restrictions attached to equity shares

The Company has only one class of shares referred to as equity shares having a par value of Rs.10 per share. Each holder of equity shares is entitled to one vote per share.

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.

2.2 Loans from related parties are repayable on demand and are subject to confirmation

2.3 The Govt.of Andhra Pradesh vide GO.No sl08 & 1341 & C (IP) Department,dated 20.06.1996 and 01.07.1996 has allowed the company to defer the sales tax payments for a period of Fourteen years from 01.07.1997 on expanded capacity (i.e. beyond base production of 898.40 MTPA) subject to a maximum exemption of Rs. 3,79,55,720/-. The Company has not availed sale tax deferment during the year 2011-12 as the scheme has ended on 30.06.2011, (amount availed in previous year Rs.31,27,067/-) and such deferment is cumulatively Rs.2,74,10,681 /- for 2011 -12 (upto previous year Rs.2,74,10,681 /-) as per VAT returns filed by company.

3.1 In view of the uncertainity of the company making profits under the head "Income from Business" (Section 28 to 43) to enable the company to avail the credit within the prescribed time of Minimum Alternative Tax paid on the book profits, no credit is accounted with respect to MAT credit entitlement.

4.1 The Company has not received any intimation from 'suppliers' regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 and hence disclosures, if any relating to amounts unpaid as at the year end together with interest paid / payable as required the said Act have not been given.

4.2 Trade Payable are subject to reconciliation and confirmation

NOTE NO. 5 Segment Information

The company operates PP/HDPE Woven Sacks and same geographical location, hence there are no different reporting segments.

NOTE NO. 6 Related Party Transactions

6.1 List of related parties with whom transactions have taken place and relationships"

---

Mar 31, 2010

1. Contingent Liabilities not provided for:

a) Irrevocable Documentary Letters of Credit Rs. 9,00,000/- (Previous year Rs. 1,14,75,864/-)

b) Guarantees issued by banks Rs. 10,00,000/- (Previous year Rs. 10,60,000/-)

2. SECURED LOANS:

Working Capital:

The Working Capital limits from State Bank of India is secured by a first charge by way of hypothecation of stocks of raw materials, stock-in-process, finished goods, stores, spares and book-debts and first charge on Fixed Assets of the Company viz. Land, Buildings, Plant & Machinery and other Misc. assets and by personal guarantees of Promoter Directors Shri DVR Raju, Shri DRSP Raju, Shri D Rama Raju, Smt D Sakuntala, Smt D Subhadra and Smt Radha Mani.

3. The Govt, of Andhra Pradesh vide GO.Nos 108 & 134 l&C (IP) Department, dated 20.06.1996 and 01.07.1996 has allowed the company to defer the sales tax payments for a period of Fourteen years from 01.Q7.1997 on expanded capacity (i.e beyond base production of 898.40 MTPA) subject to a maximum exemption of Rs. 3,79,55,720/-. "The Company has availed sales tax deferrement Rs. 32,89,855/- during the year 2009-2010 ( Previous year Rs. 54,46,626/-) and such deferment is cumulatively Rs. 2,42,83,614/- for 2009-2010 (upto previous year Rs. 2,09,93,759/-) as per VAT returns filed by Company".

4. Additional information pursuant to the provisions of paragraph 3, 4C and.4D of part II of Schedule VI of the Companies AcJ, 1956.

5) Accounting Standard 18 - Related Parties:

i) List of related parties with whom transactions have taken place and relationships :

Sl. No. Name of the related party Relationship

1. Shri D V R Raju Key Management Personnel (KMP)

2. Shri D R S P Raju -do-

3. Smt. D Subhadra Relatives of Key Management Personnel (RKMP)

4. M/s. Aashritha Creations Ltd Others

5. M/s. Kanhan Packages Pvt. Ltd. Others

6. M/s. Vayhan Coffee Ltd. Others

7. Sri VRN Raju Penumacha Others

8. M/s. DSL Finance Others

9. Sri P. Sunderrama Raju Others

10. Sri Ch Kasi Viswanadha Raju Others

6) Lease

a) The Company has acquired machinery on operating lease as on 28.03.2005 amounting to Rs. 45,00,000/-. Future obligations towards lease rentals under the lease agreement as on 31.03.2010 is Nil :

b) Lease rentals paid during the year Rs. 8,25,000/-.

c) General description of lease terms :

i) Lease rental are charged on the basis of agreed terms.

ii) Assets are taken on lease for a period of five years. The Lease agreement is terminated from 01.03.2010 as per their letter dated 01.02.2010.

(i) In accordance with accounting standard "ACCOUNTING FOR TAXES ON INCOME" issued by the Institute of Chartered Accountants of India, the Company has recognised an amount of Rs.27,32,235/- as a deferred tax asset on unabsorbed depreciation and difference between book and tax depreciation during the year.

(iii) In view of the uncertainty of the company making profits under the head "Income from Business" (Section 28 to 43) to enable the company to avail the credit within the prescribed time of Minimum Alternative Tax paid on the books profits, no credit is accounted with respect to MAT credit entitlement.

7. The Company has not received any intimation from Suppliers regarding their status under the micro, small and medium enterprises development act, 2006. Hence it has not been possible to disclose amounts remain unpaid as at the year end together with interest paid/payable thereon as required under the said act.

8. Previous years figures have been regrouped wherever necessary to confirm with current years classification.

9. Balance of debtors, loans and advances and creditors are subject to reconciliation and confirmation.