Notes to Accounts of Dhabriya Polywood Ltd.

Mar 31, 2025

M. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when the Company
has a present obligation (legal or constructive)
as a result of a past event, for which it is
probable that a cash outflow may be required
and a reliable estimate can be made of the
amount of the obligation. The amount
recognized as a provision is the best estimate of

the consideration required to settle the present
obligation at the end of the reporting period,
taking into account the risks and uncertainties
surrounding the obligation. When a provision is
measured using the cash flows estimated to
settle the present obligation, its carrying amount
is the present value of those cash flows (when
the effect of the time value of money is material).

When some or all of the economic benefits
required to settle a provision are expected to be
recovered from a third party, a receivable is
recognized as an asset if it is virtually certain that
reimbursements will be received and the
amount of the receivable can be measured
reliably.

Contingent liabilities are disclosed after
evaluation of the facts and legal aspects of the
matter involved, in line with the provisions of Ind
AS 37. The Company records a liability for any
claims where a potential loss probable and
capable of being estimated and discloses such
matters in its financial statements, if material.
For potential losses that are considered possible,
but not probable, the Company provides
disclosures in the financial statements but does
not record a liability in its financial statements
unless the loss becomes probable.

N. REVENUE RECOGNITION

Sale of Goods Revenue is recognized to the
extent that it is probable that the economic
benefits will flow to the Company and the
revenue can be reliably measured, regardless of
when the payment is being made. Revenue is
measured at the fair value of the consideration
received or receivable, taking into account
contractually defined terms of payment, net of
returns and allowances, trade discounts and
volume rebates. Sales of products is net of
Goods and Service Tax.

Revenue is recognized when the significant risks
and rewards of ownership have been transferred
to the customer, recovery of the consideration is
probable, the associated costs can be estimated
reliably, there is no continuing management
involvement with the goods nor it exercises
effective control over the goods and the amount

of revenue can be measured reliably. The timing
of the transfer of risks and rewards varies
depending on the individual terms of the sales
arrangements.

Income from Services: Revenue from sale of
services are recognized when services are
rendered and related costs are incurred. Income
from services is also net of Goods and Service
Tax.

Other Income: Interest income from a financial
asset is recognized when it is probable that the
economic benefit will flow to the Company and
the amount of income can be measured reliably.
Interest income is accrued on a time basis, by
reference to the principal outstanding and at the
effective rate applicable, which is the rate that
discounts estimated future cash receipts
through the expected life of the financial assets
to that asset''s net carrying amount on initial
recognition.

O. EMPLOYEE BENEFITS

Short Term Employee Benefits

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

Post-Employment Benefits
Defined Contribution Plans

A defined contribution plan is a post¬
employment benefit plan under which the
Company pays specified contributions to a
separate entity. The Company makes specified
monthly contributions towards Provident Fund
(PF) and Employee State Insurance (ESI) to the
eligible employees. The Company''s contribution
is recognized as employee benefit expenses in
Profit and Loss during the period in which the
employee renders the related service.

Defined Benefit Plans

The Company provides for gratuity, a defined
benefit retirement plan to the employees
whoever has completed five years of service with
the Company at the time of retirement, death
while in employment or on termination of
employment or otherwise as per the provisions
of The Payment of Gratuity Act, 1972. Company
accounts for liability of future gratuity benefits
bases on an external actuarial valuation on
projected unit credit method carried out
annually for assessing liability as at the balance
sheet date.

P. FOREIGN CURRENCY TRANSACTIONS

The functional currency of the Company is
Indian rupee. Transactions denominated in
foreign currencies are normally recorded on
initial recognition at the exchange rate
prevailing at the time of transaction. Monetary
items (i.e. liabilities and assets etc.) denominated
in foreign currency at the year-end are
translated at the functional currency closing rate
of exchange at the reporting date.

Any income or expenses on account of
exchange difference either on settlement of
monetary items or on reporting these items at
rates different from rates at which these were
initially recorded / reported in previous financial
statements are recognized as income / expense
in the statement of profit and loss except in
cases where they relate to acquisition of fixed
assets in which case they are adjusted to the
carrying cost of such assets.

Q. INCOME TAXES

Current Income Tax assets and liabilities are
measured at the amount expected to be
recovered from or paid to the taxation
authorities. The tax rates and tax laws used to
compute the amount are those that are enacted
or substantively enacted, at the reporting date.
Current income tax relating to items recognized
outside profit or loss is recognized outside profit
or loss i.e. in other comprehensive income or
equity.

Management periodically evaluates positions
taken in the tax returns with respect to situations
in which applicable tax regulations are subject to

interpretation and establishes provisions where
appropriate.

Deferred tax is provided on temporary
differences between the tax bases of assets and
liabilities and their carrying amounts at the
reporting date. Deferred tax is measured using
the tax rates and the tax laws enacted or
substantively enacted as at the reporting date.
Deferred tax assets and liabilities are offset if
such items relate to taxes on income levied by
the same governing tax laws and the Company
has a legally enforceable right for such set off.
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to
the extent that it is no longer probable that
sufficient taxable profit will be available to allow
all or part of the deferred tax asset to be utilized.
Unrecognized deferred tax assets are reassessed
at each reporting date and are recognized to the
extent that it has become probable that future
taxable profits will allow the deferred tax asset
to be recovered. Deferred tax relating to items
recognized outside profit or loss is recognized
outside profit or loss i.e. in other comprehensive
income.

R. FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are

recognized when the Company becomes a party
to the contractual provisions of the instruments.
Financial assets and financial liabilities are

initially measured at fair value. Transaction costs
that are directly attributable to the acquisition or
issue of financial assets and financial liabilities
(other than financial assets and financial
liabilities at fair value through profit or loss
("FVTPL")) are added to or deducted from the
fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
Transaction costs directly attributable to the
acquisition of financial assets or financial
liabilities at fair value through profit or loss are
recognized immediately in statement of profit
and loss.

FINANCIAL ASSETS

Initial recognition and measurement:

On initial recognition, a financial asset is
recognized at fair value. All recognized financial

assets are subsequently measured in their
entirety at either amortized cost or fair value
through profit or loss (FVTPL) or fair value
through other comprehensive income (FVOCI)
depending on the classification of the financial
assets. Financial assets are not reclassified
subsequent to their recognition, except if and in
the period the Company changes its business
model for managing financial assets.

Derecognition

The Company derecognizes a financial asset
when the contractual rights to the cash flows
from the financial asset expire or it transfers the
contractual rights to receive the cash flows from
the asset.

Investment in Subsidiaries:

The Company''s investment in equity
instruments of Subsidiaries are accounted for at
cost as per Ind AS 27, including adjustment for
fair value of obligations, if any, in relation to such
subsidiaries.

Impairment of financial assets

The Company assesses at each date of balance
sheet whether a financial asset or a group of
financial assets is impaired. Ind AS 109 requires
expected credit losses to be measured through
a loss allowance. The Company recognizes
lifetime expected losses for all contract assets
and / or all trade receivables that do not
constitute a financing transaction. For all other
financial assets, expected credit losses are
measured at an amount equal to the 12-month
expected credit losses or at an amount equal to
the lifetime expected credit losses, if the credit
risk on the financial asset has increased
significantly since initial recognition.

FINANCIAL LIABILITIES AND EQUITY

INSTRUMENTS

Classification as equity

Equity instruments issued by the Company are
classified as either financial liabilities or as equity
in accordance with the substance of the
contractual arrangements and the definitions of
a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that
evidences a residual interest in the assets of an
entity after deducting all of its liabilities. Equity
instruments issued by the Company are
recognized at the proceeds received, net of
direct issue costs. Repurchase of the Company''s
own equity instruments is recognized and
deducted directly in equity. No gain or loss is
recognized in statement of profit and loss on the
purchase, sale, issue or cancellation of the
Company''s own equity instruments.

Financial liabilities

Financial liabilities are recognized when the
Company becomes a party to the contractual
provisions of the instrument. Financial liabilities
are initially measured at the amortized cost
unless at initial recognition, they are classified as
fair value through profit or loss. In case of trade
payables, they are initially recognized at fair
value and subsequently, these liabilities are held
at amortized cost, using the effective interest
method.

All financial liabilities are subsequently
measured at amortized cost using the effective
interest method. Financial liabilities carried at
fair value through profit or loss are measured at
fair value with all changes in fair value
recognized in the Statement of Profit and Loss.
Interest expense are included in the ''Finance
costs'' line item. The effective interest method is
a method of calculating the amortized cost of a
financial liability and of allocating interest
expense over the relevant period. The effective
interest rate is the rate that exactly discounts
estimated future cash payments (including all
fees and points paid or received that form an
integral part of the effective interest rate,
transaction costs and other premiums or
discounts) through the expected life of the
financial liability, or (where appropriate) a
shorter period, to the net carrying amount on
initial recognition.

Derecognition of financial liabilities

A financial liability is de-recognized when the
obligation under the liability is discharged or
cancelled or expires. When an existing financial

liability is replaced by another from the same
lender on substantially different terms, or the
terms of an existing liability are substantially
modified, such an exchange or Modification is
treated as the de-recognition of the original
liability and the recognition of a new liability.
The difference in the respective carrying
amounts is recognized in the statement of profit
or loss.

Offsetting

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

S. EARNING PER SHARE

Basic earnings per share is calculated by dividing
the net profit for the current year attributable to
equity shareholders by the weighted average
number of equity shares outstanding during the
year. The number of shares used in computing
diluted earnings per share comprises the
weighted average share considered for
calculating basic earnings per share, and also the
weighted average number of shares, which
would have been issued on the conversion of all
dilutive potential equity shares. Potential dilutive
equity shares are deemed to be converted as at
the beginning of the period, unless they have
been issued at a later date. The number of equity
shares and potentially dilutive equity shares are
adjusted for bonus shares as appropriate.

T. DIVIDEND PAYMENT

A final dividend, including tax thereon if
applicable, on equity shares is recorded as a
liability on the date of approval by the
shareholders. An interim dividend, including tax
thereon if applicable, is recorded as a liability on
the date of declaration by the Board of directors.

U. OPERATING CYCLE

Based on the nature of products / activities of
the Company and the normal time between
acquisition of assets and their realization in cash
or cash equivalents, the Company has

determined its operating cycle as twelve months
for the purpose of classification of its assets and
liabilities as current and non-current.

V. RECENT ACCOUNTING PRONOUNCEMENTS:

a. Application of new and revised Indian
Accounting Standards (Ind AS)

All the Ind AS issued and notified by the
Ministry of Corporate Affairs under the
Companies (Indian Accounting Standards)
Rules, 2015 (as amended) till the standalone
financial statements are authorised, have
been considered in preparing these
standalone financial statements.

Recent Accounting pronouncements

Ministry of Corporate Affairs ("MCA")
notifies new standards or amendments to
the existing standards under Companies
(Indian Accounting Standards) Rules as
issued from time to time. For the year
ended March 31, 2025, MCA has notified
Ind AS - 117 Insurance Contracts and
amendments to Ind AS 116 - Leases,
relating to sale and leaseback transactions,
applicable to the Company w.e.f. April 1,
2024. The Company has reviewed the new
pronouncements and based on its
evaluation has determined that it does not
have any impact in its financial statements.

3. CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in
conformity with recognition and measurement
principles of Ind AS requires the Management to
make estimates and assumptions considered in the
reported amounts of assets and liabilities (including
contingent liabilities) and the reported income and
expenses during the year. The estimates and
underlying assumptions are reviewed on an ongoing
basis. Revisions to accounting estimates are
recognized in the period in which estimates are
revised if the revision affects only that period or in the
period of the revision and future periods if the revision
affects both current and future periods.

The following are the key judgements and estimations
concerning the future and other sources of estimation
uncertainty at the end of the reporting period that
may have a significant risk of causing a material

(i) Useful lives and residual value of
property, plant and equipment and
intangible assets :

Useful life and residual value are
determined by the management based on
a technical evaluation considering nature of
asset, past experience, estimated usage of
the asset, vendor''s advice etc. and same is
reviewed at each financial year end.

(ii) Taxation :

Tax expense is calculated using applicable
tax rate and laws that have been enacted or
substantially enacted. In arriving at taxable
profit and all tax bases of assets and
liabilities, the Company determines the
taxability based on tax enactments, relevant
judicial pronouncements and tax expert
opinions, and makes appropriate provisions
which includes an estimation of the likely

outcome of any open tax assessments /
litigations, if any. Any difference is
recognized on closure of assessment or in
the period in which they are agreed.

Deferred income tax assets are recognized
to the extent that it is probable that future
taxable income will be available against
which the deductible temporary
differences, unused tax losses, unabsorbed
depreciation and unused tax credits could
be utilized.

(iii) Impairment of investments:

The Company reviews it''s carrying value of
long-term investments in equity shares of
subsidiaries and other companies carried at
cost at the end of each reporting period. If
the recoverable amount is less than its
carrying amount, the impairment loss is
accounted for.

39. FINANCIAL INSTRUMENTS
(a) Capital Risk Management

For the purpose of the Company''s capital management, capital includes issued equity capital, securities premium
and all other equity reserves attributable to the equity shareholders of the Company. The Company''s objective
when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide
returns to shareholders and other stakeholders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition
and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may
adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new
shares.

In order to achieve this overall objective, the Company''s capital management, amongst other things, aims to ensure
that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure
requirements. The Company has complied with these covenants and there have been no breaches in the financial
covenants of any interest-bearing loans and borrowings. No changes were made in the objectives, policies or
processes for managing capital during the year ended March 31, 2025 and March 31, 2024.

The Company monitors its capital using gearing ratio which is net debt divided to total equity. Net debt includes,
interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash
equivalents.

(c) Financial Risk Management objects and policies

In its ordinary operations, the company''s activities expose it to the various types of risks, which are associated with
the financial instruments and markets in which it operates. The Company has a risk management policy which
covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest
rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the
summary of the main risks.

Market Risk

Market Risk is the risk that the rair value of future cash flows of a financial instrument will fluctuate because of the
change in the market prices. The Company is exposed in the ordinary course of its business to risks related to
changes in foreign currency exchange rates, commodity prices and interest rates.

Interest Rate Risk

Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rates of interest.
The Company is exposed to interest rate risk arising mainly from long term borrowings with floating interest rates.
The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will

Foreign Currency Risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect
to the USD related to the imports of its raw material and capital assets. Foreign exchange risk arises from future
commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company''s
functional currency (INR). Foreign currency exposures that are not hedged by derivative instruments outstanding
as on the balance sheet date are as under:

Derivative outstanding as at the reporting date - Nil

Particulars of unhedged foreign currency exposure as at the reporting date:

Credit Risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss
to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit
worthiness as well as concentration risks.

Company''s credit risk arise principally from the trade receivables and advances. Customer credit risk is managed
centrally by the Company and subject to established policy, procedures and control relating to the customer credit
risk management. Credit quality of a customer is assessed based on financial position, past performance,
business/economic conditions, market reputation, expected business etc. Based on that credit limit and credit terms
are decided. Outstanding customer receivables are regularly monitored. Trade receivables consist of a large number
of customers spread across diverse industries and geographical areas with no significant concentrations of credit
risk. The outstanding trade receivables are regularly monitored, and appropriate action is taken for collection of
overdue receivables.

Liquidity Risk

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing
facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial
assets and liabilities. Expected contractual maturity for financial liabilities:

41. OTHER NOTES

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

b. The Company do not have any transactions with companies struck off.

c. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory

period,

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

e. 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:

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

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

f. The Company have not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party)

with the understanding (whether recorded in writing or otherwise) that the Company shall:

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

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

g. The Company have not 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.

h. Company does not have any long-term contract including derivative contract for which there are any material
foreseeable losses.

i. There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

j. Previous year figures have been reworked, regrouped, re-arranged and reclassified, wherever necessary.

k. All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting
Standards) Rules, 2015 (as amended) till the standalone financial statements are authorised, have been considered
in preparing these standalone financial statements.

42. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of '' 0.70 per fully paid-up equity share of '' 10/- each for the
financial year 2024-25.

43. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors on May 23, 2025.

As per our Report of even date

For NARENDRA SHARMA & CO. For DHABRIYA POLYWOOD LIMITED

Chartered Accountants

Firm Regn. No. 004983C DIGVIJAY DHABRIYA MAHENDRA KARNAWAT

Managing Director Whole-Time Director

(CA YOGESH GAUTAM) (DIN: 00519946) (DIN: 00519876)

Partner

M. No. 072676

HITESH AGRAWAL SPARSH JAIN

Jaipur, May 23, 2025 Chief Financial Officer Company Secretary

---

Mar 31, 2024

M. PROVISIONS AND CONTINGENT LIABILITIES

Provisions are recognized when the Company has a present obligation (legal or constructive) as a result of a past event, for which it is probable that a cash outflow may be required, and a reliable estimate can be made of the amount of the obligation. The amount recognized as a provision is the best estimate of the consideration required to settle the present obligation at the end of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognized as an asset if it is virtually certain that reimbursements will be received, and the amount of the receivable can be measured reliably.

Contingent liabilities are disclosed after evaluation of the facts and legal aspects of the matter involved, in line with the provisions of Ind AS 37. The Company records a liability for any claims where a potential loss probable and capable of being estimated and discloses such matters in its financial statements, if material. For potential losses that are considered possible, but not probable, the Company provides disclosures in the financial statements but does not record a liability in its financial statements unless the loss becomes probable.

N. REVENUE RECOGNITION

Sale of Goods Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured, regardless of when the payment is being made. Revenue is measured at the fair value of the consideration received or receivable, taking into account contractually defined terms of payment, net of returns and allowances, trade discounts and volume rebates. Sales of products is net of Goods and Service Tax.

Revenue is recognized when the significant risks and rewards of ownership have been transferred to the customer, recovery of the consideration is probable, the associated costs can be estimated reliably, there is no continuing management involvement with the goods, nor it exercises effective control over the goods and the amount of revenue can be measured reliably. The timing of the transfer of risks and rewards varies depending on the individual terms of the sales arrangements.

Income from Services: Revenue from sale of services are recognized when services are rendered and related costs are incurred. Income from services is also net of Goods and Service Tax.

Other Income: Interest income from a financial asset is recognized when it is probable that the economic benefit will flow to the Company and the amount of income can be measured reliably. Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective rate applicable, which is the rate that discounts estimated future cash receipts through the expected life of the financial assets to that asset’s net carrying amount on initial recognition.

O. EMPLOYEE BENEFITS

Short Term Employee Benefits

Liabilities for wages and salaries, including nonmonetary benefits that are expected to be settled wholly within twelve months after the end of the period in which the employees render the related service are recognized in respect of employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when the liabilities are settled. The liabilities are presented as current employee benefit obligations in the balance sheet.

Post-Employment Benefits Defined Contribution Plans

A defined contribution plan is a postemployment benefit plan under which the Company pays specified contributions to a separate entity. The Company makes specified monthly contributions towards Provident Fund (PF) and Employee State Insurance (ESI) to the eligible employees. The Company’s contribution is recognized as employee benefit expenses in Profit and Loss during the period in which the employee renders the related service.

Defined Benefit Plans

The Company provides for gratuity, a defined benefit retirement plan to the employees whoever has completed five years of service with the Company at the time of retirement, death while in employment or on termination of employment or otherwise as per the provisions of The Payment of Gratuity Act, 1972. Company accounts for liability of future gratuity benefits bases on an external actuarial valuation on projected unit credit method carried out annually for assessing liability as at the balance sheet date.

P. FOREIGN CURRENCY TRANSACTIONS

The functional currency of the Company is Indian rupee. Transactions denominated in foreign currencies are normally recorded on initial recognition at the exchange rate prevailing at the time of transaction. Monetary items (i.e. liabilities and assets etc.) denominated in foreign currency at the year-end are translated at the functional currency closing rate of exchange at the reporting date.

Any income or expenses on account of exchange difference either on settlement of monetary items or on reporting these items at rates different from rates at which these were initially recorded / reported in previous financial statements are recognized as income / expense in the statement of profit and loss except in cases where they relate to acquisition of fixed assets in which case they are adjusted to the carrying cost of such assets.

Q. INCOME TAXES

Current Income Tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively enacted, at the reporting date. Current income tax relating to items recognized outside profit or loss is recognized outside profit or loss i.e. in other comprehensive income or equity.

Management periodically evaluates positions taken in the tax returns with respect to situations in which applicable tax regulations are subject to interpretation and establishes provisions where appropriate.

Deferred tax is provided on temporary differences between the tax bases of assets and liabilities and their carrying amounts at the

reporting date. Deferred tax is measured using the tax rates and the tax laws enacted or substantively enacted as at the reporting date. Deferred tax assets and liabilities are offset if such items relate to taxes on income levied by the same governing tax laws and the Company has a legally enforceable right for such set off. The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are reassessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss i.e. in other comprehensive income.

R. FINANCIAL INSTRUMENTS

Financial assets and financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instruments. Financial assets and financial liabilities are initially measured at fair value. Transaction costs that are directly attributable to the acquisition or issue of financial assets and financial liabilities (other than financial assets and financial liabilities at fair value through profit or loss (“FVTPL")) are added to or deducted from the fair value of the financial assets or financial liabilities, as appropriate, on initial recognition. Transaction costs directly attributable to the acquisition of financial assets or financial liabilities at fair value through profit or loss are recognized immediately in statement of profit and loss.

FINANCIAL ASSETS

Initial recognition and measurement:

On initial recognition, a financial asset is recognized at fair value. All recognized financial assets are subsequently measured in their entirety at either amortized cost or fair value through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI) depending on the classification of the financial assets. Financial assets are not reclassified subsequent to their recognition, except if and in the period the Company changes its business model for managing financial assets.

Derecognition

The Company derecognizes a financial asset when the contractual rights to the cash flows from the financial asset expire or it transfers the contractual rights to receive the cash flows from the asset.

Investment in Subsidiaries:

The Company’s investment in equity instruments of Subsidiaries are accounted for at cost as per Ind AS 27, including adjustment for fair value of obligations, if any, in relation to such subsidiaries.

Impairment of financial assets

The Company assesses at each date of balance sheet whether a financial asset or a group of financial assets is impaired. Ind AS 109 requires expected credit losses to be measured through a loss allowance. The Company recognizes lifetime expected losses for all contract assets and / or all trade receivables that do not constitute a financing transaction. For all other financial assets, expected credit losses are measured at an amount equal to the 12-month expected credit losses or at an amount equal to the lifetime expected credit losses, if the credit risk on the financial asset has increased significantly since initial recognition.

FINANCIAL LIABILITIES AND EQUITY

INSTRUMENTS

Classification as equity

Equity instruments issued by the Company are classified as either financial liabilities or as equity in accordance with the substance of the contractual arrangements and the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an entity after deducting all of its liabilities. Equity instruments issued by the Company are recognized at the proceeds received, net of direct issue costs. Repurchase of the Company’s own equity instruments is recognized and deducted directly in equity. No gain or loss is recognized in statement of profit and loss on the purchase, sale, issue or cancellation of the Company’s own equity instruments.

Financial liabilities

Financial liabilities are recognized when the Company becomes a party to the contractual provisions of the instrument. Financial liabilities are initially measured at the amortized cost unless at initial recognition, they are classified as fair value through profit or loss. In case of trade payables, they are initially recognized at fair value and subsequently, these liabilities are held at amortized cost, using the effective interest method.

All financial liabilities are subsequently measured at amortized cost using the effective interest method. Financial liabilities carried at fair value through profit or loss are measured at fair value with all changes in fair value recognized in the Statement of Profit and Loss.

Interest expense are included in the ‘Finance costs’ line item. The effective interest method is a method of calculating the amortized cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the net carrying amount on initial recognition.

Derecognition of financial liabilities

A financial liability is de-recognized when the obligation under the liability is discharged or cancelled or expires. When an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such an exchange or Modification is treated as the de-recognition of the original liability and the recognition of a new liability. The difference in the respective carrying amounts is recognized in the statement of profit or loss.

Offsetting

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

S. EARNING PER SHARE

Basic earnings per share is calculated by dividing the net profit for the current year attributable to equity shareholders by the weighted average number of equity shares

outstanding during the year. The number of shares used in computing diluted earnings per share comprises the weighted average share considered for calculating basic earnings per share, and also the weighted average number of shares, which would have been issued on the conversion of all dilutive potential equity shares. Potential dilutive equity shares are deemed to be converted as at the beginning of the period, unless they have been issued at a later date. The number of equity shares and potentially dilutive equity shares are adjusted for bonus shares as appropriate.

T. DIVIDEND PAYMENT

A final dividend, including tax thereon if applicable, on equity shares is recorded as a liability on the date of approval by the shareholders. An interim dividend, including tax thereon if applicable, is recorded as a liability on the date of declaration by the Board of directors.

U. OPERATING CYCLE

Based on the nature of products / activities of the Company and the normal time between acquisition of assets and their realization in cash or cash equivalents, the Company has determined its operating cycle as twelve months for the purpose of classification of its assets and liabilities as current and noncurrent.

V. RECENT ACCOUNTING PRONOUNCEMENTS:

a. Application of new and revised Indian

Accounting Standards (Ind AS)

All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the standalone financial statements are authorized, have been considered in

preparing these standalone financial statements.

Recent Accounting pronouncements

During the current financial year Ministry of Corporate Affairs (“MCA") has not notified any new standards or new amendments to the existing standards applicable to the Company.

3. CRITICAL ESTIMATES AND JUDGEMENTS

The preparation of the financial statements in conformity with recognition and measurement principles of Ind AS requires the Management to make estimates and assumptions considered in the reported amounts of assets and liabilities (including contingent liabilities) and the reported income and expenses during the year. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which estimates are revised if the revision affects only that period or in the period of the revision and future periods if the revision affects both current and future periods.

The following are the key judgements and estimations concerning the future and other sources of estimation uncertainty at the end of the reporting period that may have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities in future are:

(i) Useful lives and residual value of property, plant and equipment and intangible assets :

Useful life and residual value are determined by the management based on a technical evaluation considering nature

of asset, past experience, estimated usage of the asset, vendor’s advice etc. and same is reviewed at each financial year end.

(ii) Taxation :

Tax expense is calculated using applicable tax rate and laws that have been enacted or substantially enacted. In arriving at taxable profit and all tax bases of assets and liabilities, the Company determines the taxability based on tax enactments, relevant judicial pronouncements and tax expert opinions, and makes appropriate provisions which includes an estimation of the likely outcome of any open tax assessments / litigations, if any. Any difference is recognized on closure of assessment or in the period in which they are agreed.

Deferred income tax assets are recognized to the extent that it is probable that future taxable income will be available against which the deductible temporary differences, unused tax losses, unabsorbed depreciation and unused tax credits could be utilized.

(iii) Impairment of investments:

The Company reviews it’s carrying value of long-term investments in equity shares of subsidiaries and other companies carried at cost at the end of each reporting period. If the recoverable amount is less than its carrying amount, the impairment loss is accounted for.

39. FINANCIAL INSTRUMENTS (a) Capital Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stakeholders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants and there have been no breaches in the financial covenants of any interest-bearing loans and borrowings. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2024, and March 31, 2023.

The Company monitors its capital using gearing ratio which is net debt divided to total equity. Net debt includes interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents.

(c) Financial Risk Management objects and policies

In its ordinary operations, the company’s activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The Company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks.

Market Risk

Market Risk is the risk that the rair value of future cash flows of a financial instrument will fluctuate because of the change in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates.

Interest Rate Risk

Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rates of interest. The Company is exposed to interest rate risk arising mainly from long-term borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms.

Credit Risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks.

Company''s credit risk arise principally from the trade receivables and advances. Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to the customer credit risk management. Credit quality of a customer is assessed based on financial position, past performance, business/economic conditions, market reputation, expected business etc. Based on that credit limit and credit terms are decided. Outstanding customer receivables are regularly monitored. Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentrations of credit risk. The outstanding trade receivables are regularly monitored, and appropriate action is taken for collection of overdue receivables.

Liquidity Risk

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Expected contractual maturity for financial liabilities:

41. OTHER NOTES

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

b. The Company do not have any transactions with companies struck off.

c. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

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

e. 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:

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

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

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

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

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

g. The Company have not 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.

h. Company does not have any long-term contract including derivative contract for which there are any material foreseeable losses.

i. There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

j. Previous year figures have been reworked, regrouped, re-arranged and reclassified, wherever necessary.

k. All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting Standards) Rules, 2015 (as amended) till the standalone financial statements are authorized, have been considered in preparing these standalone financial statements.

42. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of '' 0.50 per fully paid-up equity share of '' 10/- each for the financial year 2023-24.

43. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors on May 22, 2024.

As per our Report of even date

For TAMBI ASHOK & ASSOCIATES For DHABRIYA POLYWOOD LIMITED

Chartered Accountants

Firm Regn. No. 005301C DIGVIJAY DHABRIYA MAHENDRA KARNAWAT

Managing Director Whole-Time Director

(CA ASHOK KUMAR TAMBI) (DIN: 00519946) (DIN: 00519876)

Partner

M. No.074100

HITESH AGRAWAL SPARSH JAIN

Jaipur, May 22, 2024 Chief Financial Officer Company Secretary

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Mar 31, 2023

Description of nature and purpose of each reserve

a. Security Premium

The security premium is the amount paid by shareholder over and above the face value of equity share. Security premium can be utilized as per the provisions of the Companies Act, 2013.

b. General Reserve

The general reserve is created on transfer of profits from retained earnings. General reserve is created by transfer from one component of equity to another and is not an item of other comprehensive income.

c. Retained Earnings

Retained earnings represents surplus in Statement of Profit and Loss.

* There is no default in repayment of principal or payment of interest thereon.

** Term Loan from HDFC Bank and ICICI Bank is secured by way of hypothecation of the Company''s immovable

properties and term loans from SIDBI are secured by the guarantees/security extended by promoter-directors of the

Company. Total repayment period of the term loans are :

(i) SIDBI Term Loan of '' 1000 Lakhs availed in the October 2015 is repayable in 90 monthly instalments commencing from April 2016 and last instalment due in September 2023.

(ii) SIDBI Term Loan of '' 100 Lakhs availed in the Month of February 2019 is repayable in 54 monthly instalments commencing from August, 2019 and last instalment due in January, 2024.

(iii) SIDBI Term Loan of '' 100 Lakhs availed in the Month of September 2019 is repayable in 54 monthly instalments commencing from March, 2020 and last instalment due in August, 2024.

(iv) SIDBI Term Loan of total '' 519.44 Lakhs availed up-to this year for the Solar Plant and Bangalore Project, out of total sanctioned loan of '' 650 Lakhs, same is repayable in 51 monthly instalments which started from the month of November 2021.

(v) GECL-TLs of '' 149 Lakhs, '' 212.18 Lakhs and '' 142 Lakhs taken from HDFC Bank, ICICI Bank and SIDBI respectively during the year are repayable in 36 monthly instalments after availing 12-month moratorium as per the ECLGS of Central Government.

(vi) GECL-TLs of '' 74.38 Lakhs, '' 106.00 and '' 150.00 Lakhs from HDFC Bank, ICICI Bank and SIDBI respectively during the year are repayable in 36 monthly instalments after availing 24-month moratorium as per the ECLGS of Central Government.

(vii) SIDBI Term Loan of '' 170 Lakhs availed in the Month of December 2021 is repayable in 54 monthly instalments commencing from Jun, 2022 and last instalment due in Nov, 2026.

(viii) SIDBI Term Loan of '' 600 Lakhs availed in the Month of November 2022 is repayable in 72 monthly instalments commencing from Nov, 2023 and last instalment due in Oct, 2029.

(ix) SIDBI Term Loan of '' 280 Lakhs availed in the Month of March 2023 is repayable in 54 monthly instalments commencing from Sep, 2023 and last instalment due in Feb, 2028.

(x) SIDBI Term Loan of '' 220 Lakhs availed in the Month of March 2023 is repayable in 72 monthly instalments commencing from Apr, 2024 and last instalment due in Mar, 2030.

** Car Loans Taken from banks/financial institutions are secured by way of individual hypothecation of the Vehicle

purchased from the amount of loan.

37. CONTINGENT LIABILITIES
Particulars	As at 31st March, 2023	As at 31st March, 2022
(a) Performance Bank Guarantees given to third parties for contractual obligations	466.52	281.43
(b) Performance Bank Guarantees given to third parties for contractual obligations on behalf of Subsidiary Company	72.62	103.64

39. FINANCIAL INSTRUMENTS (a) Capital Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stakeholders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants and there have been no breaches in the financial covenants of any interest-bearing loans and borrowings. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2023 and March 31, 2022.

The Company monitors its capital using gearing ratio which is net debt divided to total equity. Net debt includes interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents.

(c) Financial Risk Management objects and policies

In its ordinary operations, the company’s activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The Company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks.

Market Risk

Market Risk is the risk that the rair value of future cash flows of a financial instrument will fluctuate because of the change in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates.

Interest Rate Risk

Interest rate risk arises from the sensitivity of financial assets and liabilities to changes in market rates of interest. The Company is exposed to interest rate risk arising mainly from long-term borrowings with floating interest rates. The Company is exposed to interest rate risk because the cash flows associated with floating rate borrowings will fluctuate with changes in interest rates. The Company manages the interest rate risks by entering into different kinds of loan arrangements with varied terms.

At the reporting date the interest rate profile of the Company’s interest-bearing financial instruments is as follows:

Foreign Currency Risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD related to the imports of its raw material and capital assets. Foreign exchange risk arises from future commercial transactions and recognised assets and liabilities denominated in a currency that is not the Company’s functional currency (INR). Foreign currency exposures that are not hedged by derivative instruments outstanding as on the balance sheet date are as under:

Derivative outstanding as at the reporting date - Nil

Credit Risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks.

Company''s credit risk arise principally from the trade receivables and advances. Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to the customer credit risk management. Credit quality of a customer is assessed based on financial position, past performance, business/economic conditions, market reputation, expected business etc. Based on that credit limit and credit terms are decided. Outstanding customer receivables are regularly monitored. Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentrations of credit risk. The outstanding trade receivables are regularly monitored and appropriate action is taken for collection of overdue receivables.

Liquidity Risk

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Expected contractual maturity for financial liabilities :

41. OTHER NOTES

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

b. The Company do not have any transactions with companies struck off.

c. The Company do not have any charges or satisfaction which is yet to be registered with ROC beyond the statutory period,

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

e. 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:

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

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

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

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

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

g. The Company have not 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.

h. Company does not have any long-term contract including derivative contract for which there are any material foreseeable losses.

i. There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

j. Previous year figures have been reworked, regrouped, re-arranged and reclassified, wherever necessary.

k. All the Ind AS issued and notified by the Ministry of Corporate Affairs under the Companies (Indian Accounting

Standards) Rules, 2015 (as amended) till the standalone financial statements are authorised, have been

considered in preparing these standalone financial statements.

42. EVENTS AFTER THE REPORTING PERIOD

The Board of Directors have recommended dividend of '' 0.50 per fully paid-up equity share of '' 10/- each for the financial year 2022-23.

43. APPROVAL OF FINANCIAL STATEMENTS

The financial statements were approved for issue by the Board of Directors on May 25, 2023.

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Mar 31, 2018

1. GENERAL INFORMATION

Dhabriya Polywood Limited (‘The Company’) is a public limited Company domiciled and incorporated under the provisions of the Companies Act, 1956 in India in 1992. The Company’s equity shares are listed at the Bombay Stock Exchange (BSE). It is headquartered in Jaipur in Rajasthan and having its manufacturing units at two places in Rajasthan at Jaipur and one place in Tamilnadu at Coimbatore. Apart from that Company has its marketing network spread throughout India to cover all major markets. The Company is one of the leading manufacturer & suppliers of Extruded PVC Profile Sections, Dstona Sheets & Moldings for various furnishing & furniture applications (i.e. Doors, Partitions, Ceiling, Paneling, fencing, prefabs, interior & furnishing etc.) and uPVC Windows & Door Systems. All the product range of Company is developed & produced on Save Tress concept without using natural wood.

The financial statements for the year ended 31st March 2018 were approved by the Board of Directors and authorised for issue on May 29, 2018.

2. STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the Indian Accounting Standards (Ind AS) as prescribed under Section 133 of the Companies Act, 2013 (“the Act”) read with the Companies (Indian Accounting Standards) Rules, 2015 and other relevant provisions of the Act, as applicable. The financial statements up to the year ended 31st March 2017 were prepared in accordance with Accounting Standards notified under the Companies (Accounting Standards) Rules, 2006 and other relevant provisions of the Act (‘Previous GAAP’). These are Company’s first Ind AS financial statements. The date of transition to Ind AS is April 1, 2016. Refer note 45 for an explanation of the transition from previous GAAP to Ind AS and the effect on the Company’s financial position, financial performance and cash flows.

3. SEGMENT REPORTING

In accordance with para 4 of Ind AS 108 - Operating Segments, the company presents segment informations only in the Consolidated Financial Statements.

4. FINANCIAL INSTRUMENTS

a. Capital Risk Management

For the purpose of the Company’s capital management, capital includes issued equity capital, securities premium and all other equity reserves attributable to the equity shareholders of the Company. The Company’s objective when managing capital is to safeguard its ability to continue as a going concern so that it can continue to provide returns to shareholders and other stakeholders.

The Company manages its capital structure and makes adjustments in light of changes in the financial condition and the requirements of the financial covenants. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders, return capital to shareholders (buy back its shares) or issue new shares.

In order to achieve this overall objective, the Company’s capital management, amongst other things, aims to ensure that it meets financial covenants attached to the interest-bearing loans and borrowings that define capital structure requirements. The Company has complied with these covenants and there have been no breaches in the financial covenants of any interest-bearing loans and borrowings. No changes were made in the objectives, policies or processes for managing capital during the year ended March 31, 2018 and March 31, 2017.

The Company monitors its capital using gearing ratio which is net debt divided to total equity. Net debt includes, interest bearing loans and borrowings less cash and cash equivalents, bank balances other than cash and cash equivalents.

c. Financial Risk Management objects and policies

In its ordinary operations, the company’s activities expose it to the various types of risks, which are associated with the financial instruments and markets in which it operates. The Company has a risk management policy which covers the foreign exchanges risks and other risks associated with the financial assets and liabilities such as interest rate risks and credit risks. The risk management policy is approved by the board of directors. The following is the summary of the main risks.

Market Risk

Market Risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of the change in the market prices. The Company is exposed in the ordinary course of its business to risks related to changes in foreign currency exchange rates, commodity prices and interest rates.

Interest Rate Risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair value of fixed interest-bearing investments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest-bearing investments will fluctuate because of fluctuations in the 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.

Foreign Currency Risk

The Company is exposed to foreign exchange risk arising from foreign currency transactions, primarily with respect to the USD related to the imports of its raw material and capital assets. Foreign exchange risk arises from future commercial transactions and recognized assets and liabilities denominated in a currency that is not the Company’s functional currency (INR).

Credit Risk

Credit risk refers to the risk that a counter party will default on its contractual obligations resulting in financial loss to the Company. Credit risk encompasses of both, the direct risk of default and the risk of deterioration of credit worthiness as well as concentration risks.

Company''s credit risk arise principally from the trade receivables and advances. Customer credit risk is managed centrally by the Company and subject to established policy, procedures and control relating to the customer credit risk management. Credit quality of a customer is assessed based on financial position, past performance, business/economic conditions, market reputation, expected business etc. Based on that credit limit and credit terms are decided. Outstanding customer receivables are regularly monitored. Trade receivables consist of a large number of customers spread across diverse industries and geographical areas with no significant concentrations of credit risk. The outstanding trade receivables are regularly monitored, and appropriate action is taken for collection of overdue receivables.

Liquidity Risk

The Company manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, by continuously monitoring forecast and actual cash flows and matching the maturity profiles of financial assets and liabilities. Expected contractual maturity for financial liabilities:

5. FIRST TIME ADOPTION OF IND AS Transition to Ind AS

These are the Company’s first financial statements prepared in accordance with Ind AS.

The accounting policies set out in note 3 have been applied in preparing the financial statements for the year ended March 31, 2018, the comparative information presented in these financial statements for the year ended March 31, 2017 and in the preparation of an opening Ind AS balance sheet at April 1, 2016 (The company’s date of transition). In preparing its opening Ind AS balance sheet, the company has adjusted the amounts reported previously in financial statements prepared in accordance with the accounting standards notified under Companies (Accounting Standards) Rules, 2006 (as amended) and other relevant provisions of the Act (previous GAAP or Indian GAAP).

An explanation of how the transition from previous GAAP to Ind AS has affected the Company’s financial position, financial performance and cash flows is set out in the following tables and notes.

Exemptions and Exceptions Availed on first time adoption of Ind AS 101

In preparing these Ind AS financial statements, the Company has availed certain optional exemptions and mandatory exceptions in accordance with Ind AS 101 from IGAAP to Ind AS, as explained below. The resulting difference between the carrying values of the assets and liabilities in the financial statements as at the transition date under Ind AS and IGAAP have been recognized directly in equity (retained earnings or another appropriate category of equity). This note explains the adjustments made by the Company in restating its IGAAP financial statements, including the Balance Sheet as at April 01, 2016 and the financial statements as at and for the year ended March 31, 2017.

Ind AS optional exemptions

Deemed Cost for Property, plant and equipment and investment property

Ind AS 101 permits a first-time adopter to elect to continue with the carrying value for all of its property, plant and equipment as recognized in the financial statements as at the date of transition to Ind AS, measured as per the previous GAAP and use that as its deemed cost as at the date of transition. This exemption can also be used for investment properties covered by Ind AS 40 "Investment Property". Accordingly, the Company has elected to measure all of its property, plant and equipment, capital work-in-progress and investment property at their previous GAAP carrying value as at the transition date i.e. April 01, 2016.

Ind AS mandatory exceptions Estimates

An entity’s estimates in accordance with Ind ASs at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at April 1, 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP except where Ind AS required a different basis for estimates as compared to the previous GAAP.

Reconciliations between GAAP and Ind AS

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

The presentation requirements under GAAP differs from Ind AS and hence the GAAP information has been reclassified for ease of reconciliation with Ind AS. The reclassified GAAP information is derived based on the audited financial statements of the Company for the year ended March 31, 2016 and March 31, 2017.

Footnotes to Reconciliation

a. Previous GAAP figures have been reclassified to conform to Ind AS presentation requirements.

b. Depreciation Under Ind AS: The Investment Properties were classified under the head “Investments” under the previous GAAP. On transition to Ind AS, the same has been reclassified under the head “Investment Property” and depreciation on the same has been adjusted and provided for accordingly

c. Unamortized Loan Processing Fee expense appearing as on April 01, 2016 under previous GAAP has been derecognized through Equity as per the prescribed Ind AS.

d. The deferred tax adjustment includes the impact of transition adjustments together with adjustments in relation to Ind AS making it mandatory of using balance sheet approach against profit and loss approach as in the previous GAAP. On the date of transition, deferred tax impact on transition provision has been accounted in the Reserves, and consequential impact in the statement of profit and loss for the subsequent periods.

e. Under Previous GAAP, actuarial gains and losses were recognized in the Statement of Profit and Loss. Under Ind AS 19, the actuarial gains and losses is considered as Remeasurements of net defined benefit liability / asset and is recognized in other comprehensive income and therefore the same is recorded accordingly and resultant change due to this transition from Previous GAAP to Ind AS has been recognized accordingly.

f. Under previous GAAP, the Company was not required to present other comprehensive income (OCI) separately. Hence, it has reconciled Indian GAAP profit or loss to profit or loss as per Ind-AS. Further, Ind-AS profit or loss is reconciled to total comprehensive income as per Ind-AS.

6. OTHER NOTES

- Company does not have any long-term contract including derivative contract for which there are any material foreseeable losses.

- There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

- Previous year figures have been reworked, regrouped, rearranged and reclassified, wherever necessary.

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Mar 31, 2016

1. RELATED PARTY DISCLOSURES a) Related Parties and their relationship

I. Subsidiary Company

- Polywood Green Building Systems Pvt. Ltd.

II. Key Management Personnel

- Mr. Digvijay Dhabriya, Director

- Mr. Mahendra Karnawat, Director

- Mr. Shreyansh Dhabriya, Director

- Mrs. Anita Dhabriya, Director

III. Enterprises over which Key Managerial Personnel''s are able to exercise significant influence/control:

- Dynasty Modular Furnitures Pvt. Ltd.

- Flamboyance Exports Pvt. Ltd.

- Polywood India Ltd.

- Polywood Profiles Pvt. Ltd.

2. OTHER NOTES

* Company does not have any long-term contract including derivative contract for which there are any material foreseeable losses.

* There are no amounts which are required to be transferred to the Investor Education and Protection Fund.

* Previous year figures have been reworked, regrouped, rearranged and reclassified, wherever necessary to correspond with the current year''s classification/disclosure.

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Mar 31, 2015

1. CORPORATE INFORMATION

Company namely Dhabriya Polywood Limited (formerly known as Dhabriya Agglomerates Pvt. Ltd.) is a Public Limited Company domiciled in India and incorporated in 1992 under the provisions of the erstwhile Companies Act, 1956. It is headquartered in Jaipur in Rajasthan and having its manufacturing units at two places in Rajasthan at Jaipur as well as in Tamilnadu at Coimbatore. Apart from that Company has its marketing network spread throughout India to cover all major markets. The Company is one of the leading manufacturer & suppliers of Extruded PVC Profile Sections for various indoor furniture applications (Doors, Partitions, Ceiling, Paneling etc.) and uPVC Windows/Door Systems. All the product range of Company is developed & produced on Save Tress concept without using natural wood.

* Term Loan from Banks (HDFC Bank Ltd. & ING Vysya Bank Ltd. (now Kotak Mahindra Bank Ltd.)) are secured against equitable mortgage / hypothecation on all the immovable and movable properties of the Companies, both present and future. There is no default as on the Balance Sheet date in repayment of loans and interest. Total repayment period of the term loans are :

(i) HDFC Term Loan of Rs. 51.97 Lakhs, 160.80 Lakhs and 57.05 Lakhs are repayble in 50 monthly instalments commenced from April 2011 and last instalment due in May, 2015,

(ii) HDFC Term Loan of Rs. 223.65 Lakhs availed during financial year 2011-12 is repayble in 63 monthly instalments commencing from June, 2011 and last instalment due in August, 2016.

(iii) ING (Kotak) Term Loan of Rs. 873.92 Lakhs is repayble in 60 monthly instalments commencing from Juy, 2014 and last instalment due in June, 2019.

** Car Loans Taken from banks/financial institutaions are secured by way of individual hypothecation of the Vehicle purchased from the amount of loan.

6. DEFERRED TAX ASSETS / LIABILITIES

As required under Accounting standard (AS) 22, 'Accounting for taxes on income' issued by the Institute of Chartered Accountants of India, the details of deferred tax assets / liabilities for the year ended up to 31st March 2015 charged to Statement of Profit & Loss are as under:

34. CONTINGENT LIABILITIES

Particulars 2014-15 2013-14

a) Perfonance Bank Guarantees given to third parties for contractual obligations 22430818 17192533

b) Perfonance Bank Guarantees given to third parties for contractual obligations 12630583 11114999 on behalf of Subsidiary Company

c) The Asst Commissioner of Income Tax (TDS), Jaipur had raised a demand of Rs.2,96,304/= while completing the assessment for the Assessment Year 2012-13 u/s 201(1)/201(1A) of the Income Tax Act, 1961. The company had gone on appeal and case was decided in favour of assessing authority by the CIT(Appeals) against which Comany has filed an appeal before the Income Tax Appellate Tribunal, Jaipur Bench.

d) The Asst Commissioner of Income Tax (TDS), Jaipur had raised a demand of Rs.33,374/= while completing the assessment for the Assessment Year 2013-14 u/s 201(1)/201(1A) of the Income Tax Act, 1961. The company has filed an appeal before the CIT(Appeals), Jaipur against the order.

e) The Commerial Tax Officer, Anti Evasion, Rajasthan 3, Jaipur had raised a demand of Rs.35,03,676/= and Rs. 1,17,80,600/= while completing the assessment for the Year 2010-11 and 2011-12 respectively . The company had gone on appeal and obtained favorable orders from the Deputy Commission (Appeal - I), Jaipur . The Department has filed an appeal before the Rajasthan Tax Board, Ajmer.

35. RELATED PARTY DISCLOSURES

a) Related Parties and their relationship

I. Subsidiary Company

* Polywood Green Building Systems Pvt. Ltd.

II. Key Management Personnels

* Mr. Digvijay Dhabriya, Director

* Mr. Mahendra Karnawat, Director

* Mr. Shreyansh Dhabriya, Director

* Mrs. Anita Dhabriya, Director

* Mr. Sparsh Jain, Company Secretary

* Mr. Hitesh Agrawal, Finance & Accounts Head cum CFO

* Mr. Sourabh Mathur, Business Head (Sales & Marketing)

* Mr. Anuruddh Singh, Quality Control Manager

III. Enterprises over which Key Managerial Personnels are able to exercise significant influence / control :

* Dynasty Modular Furnitures Pvt. Ltd.

* Flamboyance Exports Pvt. Ltd.

* Polywood India Ltd.

* Polywood Profiles Pvt. Ltd.