Notes to Accounts of Emmbi Industries Ltd.

Mar 31, 2025

3.11 Provisions

i. Provisions are recognized when the company has a present obligation Itegal or constructive) as a result of a past event,
it is probable that an outflow of economic benefit will be required to settle the obligation, and a reliable estimate can be
made of the amount of the obligation.

ii. 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. risk and uncertainties surrounding the obLgation

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

3.12 Earnings Per Share (EPS)

i. Basic EPS is computed by dividing the profit after tax by the weighted average number of equity shares outstanding
during the year/period.

ii. Diluted EPS is computed by dividing the profit after tax. as adjusted for dividend, interest and other charges lo
expenses or income relating to the dilutive potential equity shares, by the weighted average number of equity shares
considered for deriving basic EPS and the weighted average number of equity shares which could have been issued on
the conversion of all dilutive potential equity shares.

3.13 Leases

A contract is, or contains, a lease if the coniract conveys ihe right to control the use of an identified asset for a period of time
in exchange for consideration.

Company as a Lessee

The Company accounts for each lease component within the contract as a lease separately from non-lease components of the
contract and allocates the consideration in the contract to each lease component on the basis of the relative stand-alone price
of the lease component and the aggregate stand-alone price of the non lease components.

The Company recognises right-of-use asset representing its right to use the underlying asset for the lease term at the tease
commencement dale. The cost of the right-of-use asset measured at inception shall comprise of the amount of the initial
measurement of the lease liability adjusted for any lease payments made at or before the commencement date less any lease
incentives received, plus any initial direct costs incurred and an estimate of costs to be incurred by the lessee in dismantling
and removing the undertying asset or restoring the underlying asset or site on which it is located. The nght-of-use assets is
subsequentlymeasured at cost less any accumulated depreciation, accumulated impairment losses, if any and adjusted for any
remeasurement of the lease liability. The right-of-use assets (presented under property, plant and equipment in the
Balance Sheetl is depreciated using the straight-line method from the commencement date over the shorter of lease term or
useful life of nght-of-use asset. The estimated useful bves of nght-of-use assets are determined on the same basis as those
of property, plant and equipment. Right-of-use assets are tested for impairment whenever there is any indication that their
carrying amounts may not be recoverable. Impairment loss, if any. is recognised in the statement of profit and loss.

The Company measures the Lease liability at the present value of the lease payments that are not paid at the commencement
date of the lease. The lease payments are discounted using the interest rate implicit in the lease, if that rate can be readily
determined. If that rate cannot be readily determined, the Company uses incremental borrowing rate. For leases with
reasonably similar characteristics, the Company, on a lease by lease basis, may adopt either the incremental borrowing rate
specific to the lease or the incremental borrowing rate for the portfolio as a whole. The lease payments shall include fixed
payments, variable lease payments, residual value guarantees, exercise price of a purchase option where the Company is
reasonably certain to exercise that option ana payments of penalties for terminating the lease, if the lease term reflects the
amount lessee exercising an option to terminate the Lease. The lease liability is subsequently remeasured by increasing Ihe
carrying to reflect interest on the tease liability, reducing the carrying amount to reflect the lease payments made and
remeasuring the carrying amount to reflect any reassessment or tease modifications or to reflect revised in-substance
fixed lease payments.

The Company recognises the amount of the re-measurement of lease liability as an adjustment to the right-of-use asset
Where the carrying amount of the right-of-use asset is reduced to zero and there is a further reduction in the measurement of
the lease liability, the Company recognises any remaining amount of the remeasurement in statement of profit and loss.

The Company has elected not to apply the requirements of Ind AS 116 to short-term leases of all assets that have a lease term
of 12 months or less and leases for which the underlying asset is of low value The lease payments associated with these
leases are recognized as an expense on a straight-line basis over the lease term.

Company as a Lessee

At the inception of the lease the Company classifies each of its leases as either an operating lease or a finance lease. The
Company recognises lease payments received under operating leases as income on a straight- line basis over the lease term.
In case of a finance lease, finance income is recognised over the lease term based on a pattern reflecting a constant periodic rate
of return on the lessor''s net investment in the lease. When the Company is an intermediate lessor it accounts for its interests ,n
the head lease and the sub-lease separately. It assesses the lease classification of a sub-lease with reference to the right-of-use
asset arising from the head lease, not with reference to the underlying asset. If a head lease is a short term lease to which the
Company applies the exemption described above, then it classifies the sub-lease as an operating Lease If an arrangement
contains lease and non-lease components, the Company applies Ind AS 115 Revenue to allocate the consideration in the
contract

3.14 Going Concern

The directors have, at the time of approving the financial statements, a reasonable expectation that the Company has adequate
resources to continue in operational existence for the forseeable future. When preparing financial statements, management
makes an assessment of the group''s ability to continue as going concern. Financial statements is prepared on going concern
bas''s unless management either ntenos to liquidate the group or to cease trading, or has no realistic alternative but to do so.
When management is aware, in making its assessment, of material uncertainties related to events or conditions that may cast
significant doubt upon the group''s ability to continue as going concern, those uncertainties are disclosed When the financial
statement is not prepared on a go^:ng concern basis, that face is disclosed, together with the basis on which the financial
statement is prepared and the reason why the group is not regarded as go ng concern.

3.15 Subsequent Events

Financial statements are approved after considering ''Adjusting Event'' and Non-adjusting event''. Adjustments to assets and
liabilities are made for events occurring after the Balance Sheet dele that provide additional information mater ially affecting the
determination of the amounts relating to conditions existing at the Balance Sheet date or because of statutory requirements or
because of their special nature. For non-adjusting events, the Company may provide a disclosure in the financial statement
considering the nature of the transaction

4.1 Changes in accounting policies and disclosures New and amended standards effective in current
year that begins on or after 1 April 2024

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 vv.e.f. April 1,2024. Tits Company has reviewed the new pronouncements and based on its evaluation has determined
that it does not have any significant impact in its financial statements.

4.2 Standards issued but not yet effective up to the date of Financial Statements:

Ministry of Corporate Affairs ("MCA") notifies new standards or amendments to the existing standards under Companies llndian
Accounting Standards) Rules as issued from time to time. MCA has notified amendments to the existing standards IND AS 21:
The Effects of changes in Foreign Excoange rates applicable to the Company w.e.f, April 01. 2025 to address concerns about
currency exchangeability and provide guidance on estimating spot exchange rates when a currency is not exchangeable. There
is no significant impact on the Company in the current year.

18.1 Term Loans:

Term Loans are secured by way of deposit of the title deeds in respect of immovable properties of the Company including
Land & Building situated at Survey No. 191/2/4 Masat ViUaae, Meghwad Road. U.T. of Dadra & Nagar Haveli and Daman &
Diu, Silvassa - 396230, Sun''ey No. 99/2/1 & 9. Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village. U.T of
Dadra & Nagar Haveli and Daman & Diu, Silvassa - 396230, Survey No. 87, Madhuban Industrial Estate. Madhuban Dam
Road. Rakholi Village. U.T. of Dadra & Nagar Haveli and Daman & Diu, Silvassa - 396230 and Survey No. 28A & 42, Masat
Industrial Estate. U.T. of Dadra & Nagar Haveli and Daman & Diu. Silvassa - 396230. First pari passu charge on entire fixed
assets of the company, present and future and by way of Second pari passu charge on entire current assets of the company,
present and future.

18.2 Other Loans and Advances are secureo by way of hypothecation of Cars and Transport Vehicles purchased under Hire
Purchase Scheme.

18.3 There is no default n repayment of principal loan or interest thereon.

NOTE 38: The entire operation of the Company relate to only one segment viz. Polymer based multiple products. Hence, as per
the Management approach under Ind AS - 108, the company has a single operating segment. Revenue is evenly
spread across various customers and rot concentrated at major customers. No single customer/ customer group
contributes 10% or more of the total revenue of the Company.

NOTE 39: During the current year, a Wholly-Owned Foreign Subsidiary Company, of Emmbi Industries Limited, in the name of
''ZASTIAN PTE. LTD.''(''Zastian'') has been incorporated in Singapore. Subsidiary. Zastian PTE Limited {Singapore], has
acquired 100% sharehold ng of Zastian Europe GmbH (ZEG), Germany making ZEG a step down subsidiary of Emmbi
Industries Limited.

B. Risk Exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are
detailed below.

Life expectancy:

This is particularly significant where inflationary increases result in higher sensitivity to changes in l/fe expectancy.
Future salary increase and Inflation risk:

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising
salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities
especially unexpected salary increases orovided at management''s discretion may lead to uncertainties in estimating
this increasing risk.

Asset-Liability mismatch risk:

Risk arises if there is a mismatch in the duration of the assets relative to ihe liabilities. By matching duration with the
defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate
movements. The Company ensures that the investment positions are managed within an asset-liability matching
(AI.MI framework that has been developed to achieve long-term investments that are in line with the obbgations
under the employee benefft plans.

Capital Management

The Company''s objectives when managing capital are to:

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and
benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital

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 holders of the Company. The primary objective o! the Company''s capital management
is to maximise tne shareholders value. The Company manages its capital structure and makes adjustments in light of changes
in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to
shareholders. The Capital structure of the Company is as follows:

The company has been identifying appropriate CSR projects and programs in the villages around Silvasss. Several long term
orojects have been identified and are under implementation and would take time for completion.

Operating Lease:

|i| As a lessee: The Company''s significant leasing agreements are in respect o* operating leases for premises (residential and
office!, software. These leasing agreements range between 11 months anc 99 months, which include both cancellable and
non-cancellable leases and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals
of Rs. 3,47.32,654/- (Previous Year Rs. 2,76,06.523/-) are charged to the Statement of Profit and Loss.

The total future minimum lease rentals payable for non-canceliabla lease at the Balance Sheet dates are as under

Financial risk management

The management of the Company has implemented a risk management system that is monitored by the Board of Directors. The
general conditions for compliance with the requirements for proper and future-oriented risk management within the
Company are set out in the risk management principles. These principles aim at encouraging all members of staff to
responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on nsk
management specify risk management processes, compulsory limitations, and the application of financial instruments. The
nsk management system aims at identifying, analyzing, managing, controlling and communicating risks promptly throughout
the Company. Risk management reporting is a continuous process and part of regular Group reporting In addition, our
Corporate Function Internal Auditing regularly checks whether Company complies with risk management system
requirements.

The Company is exposed lo credit, liquidity and market risks [foreign currency risk and price nsk] during the course of ordinary
activities. The aim of risk management is to limit the nsks arising from operating activities and associated financing
requirements by applying selected derivative and non-derivative hedging ¦nstruments

Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables! and from its financing activities,
including deposits with banks and other financial instruments. The balances with banks, loans given to employees, security
deposits are subject to low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of
default is negligible or nil Hence, no provision has been created for expected credit loss for credit risk arising from these
financial assets.

Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage
this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current
economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.

For the year ended 31^rt March, 2025

Export related trade receivables are fully secured under the Export Credit Guarantee Corporation Scheme and therefore the
Company is not exposed to significant credit risk.

The provision for expected credit toss is recognised on the basis of life-time expected credit losses (simplified approach). An
expected loss rate is calculated at each year-end, baseo on combination of rate of default and rate of delay The Company
considers the race of default and delay.

The provision for expected credit toss is recognised on the basis of life-time expected credit losses (simplified approach). An
expected loss rale is calculated at each year-end. based on combination of rate of default and rate of delay. The Company
considers the rate of default and delay.

Liquidity risk

Liquidity risk is the risk that the Company is unable to meet its existing or future obligations due to insufficient availability of cash
or cash equivalents. Managing liquidity risk, and therefore allocating resources are some of the central tasks of the Company''s
management. In order to be able to ensure the Company''s solvency and financial flexibility at all times, credit limits and cash
and cash equivalents are reserved on the basis of perennial financial planning.

Market risk

Market risk is the risk that fair values or future cash flows of non-derivative or derivative financial instruments will fluctuate
due to changes in risk factors. Among market risks relevant to the Company are foreign currency risk and price risks.
Associated with these risks are fluctuations in income, equity and cash flow. The objective of risk management is to eliminate
or limit emerging risks by taking appropriate precautions, especially by applying derivatives. The application of derivatives is
subject to strict controls set up on the basis of guidelines as part of regular reporting. Various measures are used to mitigate
or eliminate the risk of fluctuations in the fair value of future cash flows from financial instruments due to market changes.
These mainly include foreign currency forward contracts with banks. The use of derivative financial instruments is extensively
monitored, with checks being carried out on the oasis of policies in the framework of regular recoiling.

Foreign currency risk

The international nature of the Company’s business activities generates numerous cash flows in different currencies especially
in USD. GBP & EURO. To contain the risks of numerous payment flows in different currencies, in particular USD. GBP &
EURO, the Company follows group wise policies for foreign currency management.

The Company does not have any material exposure to foreign currency at the balance sheet date.

NOTH A3: OTHER STATUTORY INFORMATION FOR THE FINANCIAL YEAR 2024-25

i| The Company does not hold any benarm property and no proceeding has been initiated or pending against the Comoany
for holding any benami property.

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

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

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the company (ultimate beneficiaries) or

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

ivl Tne Company has not received any fund from any personls) or entitylies], including foreign entities (funding party! with the
understanding (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of
the funding party (ultimate beneficiariesi or

(bl provide any guarantee, security or the like on behalf of the ultimate beneficiaries.

v) The Company does not have any such transaction which is not recorded in the books of accounts that has been
surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act. 1961 (such as,
search or survey or any other relevant provisions of the Income Tax Act. 1961k

vil The Company has complied with the number of layers prescribed under clause {87) of section 2 of the Act read with the
Companies (Restriction on number ol Layers) Rules. 2017.

vii) The Company is not declared wilful defaulter by any bank or financial institution or tender during the year.

viii) Tne Company does not have any charges or satisfaction ''which is yet to be registered with ROC beyond the
Statutory period.

ix) The Company has used the borrowings from banks and financial institutions for the specific purpose for
which it was obtained.

xj Tne title deeds of alt the immovable properties, (other than immovable properties where the Company is the lessee and
the lease agreements are duly executed in ravour of the Company) disclosed in the financial statements included in
property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet
date,

xi) Tne Company does not have any transactions with companies which are struck oft

_xjji There is no scheme of amalgamation and arrangement under Sections 23C to 232 and other applicable provisions of the
Companies Act, 2013 and the rules thereunder during the current year

Tne Company has not granted any loans or advances to promoters, directors, KMPs and the related parties las defined
under Companies Act. 2Ci3), ether severally or jointly with any other pe--son, except for the parties mentioned under Note 7
that are: (al Repayable on demand (b) without specifying any terms or period of repayment.

xiv) Tne Company has not revalued its property, plant and equipment or intangible assets or both or investment property during
the current or previous year.

As per our report of even date For and On behalf of the Board.

For R. Daliya & Associates For EMMBI INDUSTRIES LIMITED

Chartered Accountants
FRN : 102060W

Makrand Appalwar

[Managing Director)

DIN: 00171950

R S. Daliya (Partner)

Membership No. 043703 ^Rinku Appalwar

Place: Mumbai. Rajesh Solanki ICFO & Executive Director)

Date : 24^th May. 2025 Company Secretary DIN 100171976

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Mar 31, 2024

15.3 Terms / Rights attached to the Equity Shares

The company has only one class of equity shares having par value of Rs. 10.00 per share (previous year Rs. 10.00 per share) Each holder of the equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting.

Securities Premium:

Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

Retained Earnings:

The Retained earnings of the Company are kept aside out of the Company''s profits to meet future (known or unknown) obligations. Retained earnings is a free reserve which can be utilised for any purpose.

17.1 Term Loans:

Term Loans are secured by way of deposit of the title deeds in respect of immovable properties of the Company including Land & Building situated at Survey No. 191/2/4, Masat Village, Meghwad Road, U.T. of Dadra & Nagar Haveli and Daman & Diu, Silvassa- 396230, Survey No. 99/2/1 & 9, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, U.T. of Dadra & Nagar Haveli and Daman & Diu, Silvassa - 396230, Survey No. 87, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, U.T. of Dadra & Nagar Haveli and Daman & Diu, Silvassa- 396230 and Survey No. 28A & 42, Masat Industrial Estate, U.T. of Dadra & Nagar Haveli and Daman & Diu, Silvassa- 396230. First pari passu charge on entire fixed assets of the company, present and future and by way of Second pari passu charge on entire current assets of the company, present and future.

17.2 Hire Purchase Loans are secured by way of hypothecation of Vehicles purchased under Hire Purchase Scheme.

17.3 There is no default in repayment of principal loan or interest thereon

21.1 Working Capital Loans :

Working Capital Loans are secured by way of First pari passu charge on entire current assets of the company, present and future and by way of Second pari passu charge on entire fixed assets of the company, present and future.

21.2Working Capital Loans :

The quarterly returns/ statements filed with the Banks and Financial Institutions are in agreement with the books of accounts.

Note 37 The entire operation of the Company relate to only one segment viz. Polymer based multiple products. Hence, as per the Management approach under Ind AS- 108, the company has a single operating segment. Revenue is evenly spread across various customers and not concentrated at major customers.

Note 38 During the current year, a Wholly-Owned Foreign Subsidiary Company, of Emmbi Industries Limited, in the name of ''ZASTIAN PTE. LTD.''(''Zastian'') has commenced the process of incorporating in Singapore. The Company is yet to influx share capital into the foreign subsidiary. Accordingly, the Company is not required to prepare the consolidated financial statements for the year since the subsidiary is not fully incorporated.

B Risk Exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below:

Life expectancy:

This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

Future salary increase and inflation risk:

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management''s discretion may lead to uncertainties in estimating this increasing risk.

Asset-Liability mismatch risk:

Risk arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings caused by interest rate movements. The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans.

The above sensitivity analysis is based on a change in assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of defined benefit obligation calculated with the Projected Unit Credit Method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

Capital Management:

The Company''s objectives when managing capital are to:

• safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

• maintain an optimal capital structure to reduce the cost of capital.

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 holders of the Company. The primary objective of the Company''s capital management is to maximise the shareholders value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions.

To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders. The Capital structure of the Company is as follows:

The Board of Directors have recommended the payment of a final dividend of Re. 0.30 per fully paid equity share of Rs. 10.00 each (March 31, 2023- Re. 0.30). This proposed dividend is subject to approval of shareholders in the ensuing annual general meeting.

Corporate Social Responsibility (CSR)

a As a part of Corporate Social Responsibility (CSR) initiative, the Company has decided to carry out the CSR activities directly as well as by donation to Emmbi Foundation having main object as CSR Activity as specified in Schedule VII.

The company has been identifying appropriate CSR projects and programs in the villages around Silvassa. Several long term projects have been identified and are under implementation and would take time for completion.

Operating Lease:

(i) As a lessee: The Company''s significant leasing agreements are in respect of operating leases for premises (residential and office), software. These leasing agreements range between 11 months and 99 months, which include both cancellable and non-cancellable leases and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals of Rs. 2,76,06,523/-(Previous Year Rs. 2,31,24,537/-) are charged to the Statement of Profit and Loss.

Financial risk management

The management of the Company has implemented a risk management system that is monitored by the Board of Directors. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims at identifying, analyzing, managing, controlling and communicating risks promptly throughout the Company. Risk management reporting is a continuous process and part of regular Group reporting. In addition, our Corporate Function Internal Auditing regularly checks whether Company complies with risk management system requirements.

The Company is exposed to credit, liquidity and market risks (foreign currency risk and price risk) during the course of ordinary activities. The aim of risk management is to limit the risks arising from operating activities and associated financing requirements by applying selected derivative and non-derivative hedging instruments.

Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments. The balances with banks, loans given to employees, security deposits are subject to low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of default is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these financial assets.

Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.

Export related trade receivables are fully secured under the Export Credit Guarantee Corporation Scheme and therefore the Company is not exposed to significant credit risk.

The provision for expected credit loss is recognised on the basis of life-time expected credit losses (simplified approach). An expected loss rate is calculated at each year-end, based on combination of rate of default and rate of delay. The Company considers the rate of default and delay.

There is no significant expected loss recognised.

Liquidity risk is the risk that the Company is unable to meet its existing or future obligations due to insufficient availability of cash or cash equivalents. Managing liquidity risk, and therefore allocating resources are some of the central tasks of the Company''s management.

In order to be able to ensure the Company''s solvency and financial flexibility at all times, credit limits and cash and cash equivalents are reserved on the basis of perennial financial planning.

Market risk is the risk that fair values or future cash flows of non-derivative or derivative financial instruments will fluctuate due to changes in risk factors. Among market risks relevant to the Company are foreign currency risk and price risks. Associated with these risks are fluctuations in income, equity and cash flow. The objective of risk management is to eliminate or limit emerging risks by taking appropriate precautions, especially by applying derivatives. The application of derivatives is subject to strict controls set up on the basis of guidelines as part of regular reporting. Various measures are used to mitigate or eliminate the risk of fluctuations in the fair value of future cash flows from financial instruments due to market changes. These mainly include foreign currency forward contracts with banks. The use of derivative financial instruments is extensively monitored, with checks being carried out on the basis of policies in the framework of regular reporting.

Foreign currency risk

The international nature of the Company''s business activities generates numerous cash flows in different currencies especially in USD and EURO. To contain the risks of numerous payment flows in different currencies, in particular USD and EURO, the Company follows group wise policies for foreign currency management.

The Company does not have any material exposure to foreign currency at the balance sheet date.

NOTE 42: OTHER STATUTORY INFORMATION FOR THE FINANCIAL YEAR 2023-24

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

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

iii) The Company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities

(Intermediaries) with the understanding that the Intermediary shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (ultimate beneficiaries) or

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

iv) The Company has not received any fund from any person(s) or entity(ies), including foreign entities (funding party) with the under standing (whether recorded in writing or otherwise) that the Company shall:

(a) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the funding party (ultimate beneficiaries) or

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

v) The Company does not have any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed

as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

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

vii) The Company is not declared wilful defaulter by any bank or financial institution or lender during the year.

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

x) The Company has used the borrowings from banks and financial institutions for the specific purpose for which it was obtained.

xi) The title deeds of all the immovable properties, (other than immovable properties where the Company is the lessee and the lease agreements are duly executed in favour of the Company) disclosed in the financial statements included in property, plant and equipment and capital work-in progress are held in the name of the Company as at the balance sheet date.

xii) The Company does not have any transactions with companies which are struck off.

ADDITIONAL REGULATORY INFORMATION - RATIOS

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Mar 31, 2018

NOTE: 1 COMPANY OVERVIEW

EMMBI INDUSTRIES LIMITED (“Emmbi” or “The Company”) is a public limited company incorporated and domiciled in India and has its registered office at Silvassa, India. The Company has its primary listingson the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE). The financials were authorized for issuance by the company’s board of directors and audit committee on May 29, 2018.

The principal activities of the Company comprises of Manufacturing and Trading of HDPE & PP - Woven Polymer Based Products.

NOTE: 2 BASIS OF PREPARATION AND MEASUREMENT

2.1 Statement of Compliance

The Financial statements as at the end for the year ended March 31, 2018 have been prepared in accordance with the Indian Accounting Standards (“Ind AS”) notified under the Companies (Indian Accounting Standards) Rules, 2015 and the Companies (Indian Accounting Standards) Amendments Rules, 2016.

For all the periods up to and including the year ended March 31, 2017, the company prepared its financial statements in accordance with requirement of previous GAAP, which includes accounting standards notified under the section 133 of the Companies Act, 2013 read together with Companies (Accounting Standards) Rules, 2016. The date of transition to Ind AS is April 1, 2016. These financial statements for the year ended March 31, 2018 are company’s first Ind AS financial statements. The disclosure relating to Ind AS 101, First - time adoption of Indian Accounting Standards have been given in Note no 4.

2.2 Accounting Convention and Basis of Measurement

The financial statements have been prepared on the historical cost convention and on an accrual basis, except the following material items that have been measured at fair value as required by relevant Ind AS:

i. Certain financial assets measured at fair value ( refer accounting policy on financial instruments)

ii. Defined benefit and other long - term employee benefits.

2.3 Functional and presentation currency

The financial statements are presented in India rupees, which is the functional currency of the company and the currency of the primary economic environment in which the company operates. All financial information presented in Indian ‘ has been rounded to the nearest million of ‘ except share and per share data.

2.4 Use of Judgments, estimates and assumptions

The preparation of financial statements in conformity with Ind AS requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amount of assets, liabilities, income and expenses and the disclosure of contingent liabilities and contingent assets. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on a periodic basis. Revisions to accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

Information about critical judgments in applying accounting policies, as well as estimates and assumptions in respect of following areas, that have most significant effect to the carrying amounts within the next financial year are included in the relevant notes.

i. Useful Lives of property, plant and equipment and intangibles.

ii. Measurement of defined benefit obligations.

iii. Measurements and likelihood of occurrence if provisions and contingencies.

iv. Recognition of deferred tax assets.

2.5 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 12 months for the purpose of classification of its assets and liabilities as current and non-current.

NOTE: 3 FIRST TIME ADOPTION OF IND AS

3.1 These financial statements of Emmbi Industries Limited for the year ended March 31, 2018 have been prepared in accordance with Ind AS. For the purpose of transition to Ind AS, the company has followed the guidance prescribed in Ind AS 101-first time adoption of Indian Accounting Standard, with April 1, 2016 as the transition date and IGAAP as the previous GAAP

3.2 The Transition to Ind AS has resulted in changes in the presentation of the financial statements, disclosures in the notes thereto and accounting policies and principles. The accounting policies set out in Note 3 have been applied in preparing the financial statements for the year ended March 31, 2018 and the comparative information. An explanation of how the transition from previous GAAP to Ind AS has affected the company’s balance sheet, statement of profit and loss, is set out in note 4.4. Exemptions on first time adoption of Ind AS availed in accordance with Ind AS 101 have been set out in note 4.3.

3.3 Exemptions availed on first time adoption of Ind -AS 101

Ind AS 101 allows first -time adopters certain exemptions from the retrospective application of certain requirements under Ind AS and exemptions from other Ind AS. The company has accordingly applied the following exemptions.

1. Estimates

An entity’s estimates in accordance with Ind AS at the date of transition to Ind AS shall be consistent with estimates made for the same date in accordance with previous GAAP (after adjustments to reflect any difference in accounting policies), unless there is objective evidence that those estimates were in error. Ind AS estimates as at 1 April 2016 are consistent with the estimates as at the same date made in conformity with previous GAAP. The Company made estimates for Impairment of financial assets based on expected credit loss model in accordance with Ind AS at the date of transition as these were not required under previous GAAP

2. De-recognition of financial assets and liabilities.

Ind AS 101 requires a first-time adopter to apply the de-recognition provisions of Ind AS 109 prospectively for transactions occurring on or after the date of transition to Ind AS. However, Ind AS 101 allows a first-time adopter to apply the de-recognition “requirements in Ind AS 109 retrospectively from a date of the entity’s choosing, provided that the information needed to apply Ind AS 109 to financial assets and financial liabilities derecognised as a result of past transactions was obtained at the time of initially accounting for those transactions. The Company has elected to apply the de-recognition provisions of Ind AS 109 prospectively from the date of transition to Ind AS.

3. Classification and measurement of financial assets.

Ind AS 101 requires an entity to assess classification and measurement of financial assets (investment in debt instruments) on the basis of the facts and circumstances that exist at the date of transition to Ind AS.

Material Adjustments to Statement of Cash flows

No material adjustments have been identified to the Statement of Cash flows on account of transition to Indian Accounting Standards. Recognition of Mark to market gains

Under the previous GAAP, investments were measured at cost. Under Ind AS, investments are measured at fair value.

Deferred tax

Deferred taxes have been recognised on the adjustments made on transition to Ind AS.

4.1 Terms / Rights attached to the Equity Shares

The company has only one class of equity shares having a par value of Rs. 10.00 per share (previous year Rs. 10.00 per share). Each holder of the equity share is entitled to one vote per share. The company declares and pays dividend in Indian rupees. The dividend proposed by the board of directors is subject to the approval of the shareholders in the ensuing annual general meeting.

Securities Premium:

Securities Premium Reserve is used to record the premium on issue of shares and is utilised in accordance with the provisions of the Companies Act, 2013.

Retained Earnings:

The Retained earnings of the Company are kept aside out of the Company’s profits to meet future (known or unknown) obligations. Retained earnings is a free reserve which can be utilised for any purpose.

5.1 Term Loans are secured by way of deposit of the title deeds in respect of immovable properties of the Company including Land & Building situated at Survey No. 191/2/4, Masat Village, Meghwad Road, U.T. of Dadra & Nagar Haveli, Silvassa - 396230, Survey No. 99/2/1 & 9, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, U.T. of Dadra & Nagar Haveli, Silvassa - 396230 and at Survey No. 87, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, U.T. of Dadra & Nagar Haveli, Silvassa - 396230, Survey No. 28A & 42, Masat Industrial Estate, U.T. of Dadra & Nagar Haveli, Silvassa - 396230 First pari passu charge on entire fixed assets of the company, present and future, with existing bankers and by way of Second pari passu charge on entire current assets of the company present and future with existing bankers.

5.2 Other Loans and Advances are secured by way of hypothecation of Cars and Transport Vehicles purchased under Hire Purchase Scheme.

5.3 There is no default in repayment of principal loan or interest thereon.

6.1 Working Capital Loans :

Working Capital Loans are secured by way of First pari passu charge on entire current assets of the company, present and future, with existing bankers and by way of Second pari passu charge on entire fixed assets of the company, present and future, with the existing bankers - Punjab National Bank, ICICI Bank, Axis Bank.

c 1) The Income tax demand as per ITAT order for the A. Y. 2011-12 of Rs. 58,50,760/- is disputed for which appeal will be preferred to the H’ble Bombay High Court. Based on the decisions of the appellate authorities and the interpretation of other relevant provisions, the Company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provision is considered necessary.

c 2) Income tax penalty demand for A.Y. 2011-12 : Rs. 39,47,758/- for which appeal is pending with CIT Appeals, Mumbai. (Appeal filed in April 2017). Based on the decisions of the appellate authorities and the interpretation of other relevant provisions, the Company has been legally advised that the penalty demand raised is likely to be deleted, accordingly no provision is considered necessary.

Future cash flows in respect of above, if any, is determinable only on receipt of judgement/ decisions pending with relevant authorities.

Note 7 The entire operation of the Company relate to only one segment viz. Polymer based multiple products. Hence, as per the

Management approach under Ind AS - 108, the company has a single operating segment. Revenue is evenly spread across various customers and not concentrated at major customers.

B Risk Exposure

Through its defined benefit plan, the Company is exposed to a number of risks, the most significant of which are detailed below: Life expectancy:

This is particularly significant where inflationary increases result in higher sensitivity to changes in life expectancy.

Future salary increase and inflation risk:

Since price inflation and salary growth are linked economically, they are combined for disclosure purposes. Rising salaries will often result in higher future defined benefit payments resulting in a higher present value of liabilities especially unexpected salary increases provided at management’s discretion may lead to uncertainties in estimating this increasing risk.

Asset-Liability mismatch risk:

Risk arises if there is a mismatch in the duration of the assets relative to the liabilities. By matching duration with the defined benefit liabilities, the Company is successfully able to neutralize valuation swings eaused by interest rate movements. The Company ensures that the investment positions are managed within an asset-liability matching (ALM) framework that has been developed to achieve long-term investments that are in line with the obligations under the employee benefit plans.

II Defined Contribution Plans

During the year, the Company has recognised the following amounts in the Statement of Profit and Loss :-

The above sensitivity analysis is based on a change in assumption while holding all other assumptions constant. In practice, this is unlikely to occur and changes in some of the assumptions may be correlated. When calculating the sensitivity of the defined benefit obligation to significant actuarial assumptions the same method (present value of defined benefit obligation calculated with the Projected Unit Credit Method at the end of the reporting period) has been applied as when calculating the defined benefit liability recognised in the balance sheet. The method and types of assumptions used in preparing the sensitivity analysis did not change compared to the prior period.

The following payments are expected contributions to the defined benefit plan in future years:

Capital Management:

The Company’s objectives when managing capital are to

- safeguard their ability to continue as a going concern, so that they can continue to provide returns for shareholders and benefits for other stakeholders, and

- maintain an optimal capital structure to reduce the cost of capital.

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 holders of the Company. The primary objective of the Company’s capital management is to maximise the shareholders value. The Company manages its capital structure and makes adjustments in light of changes in economic conditions. To maintain or adjust the capital structure, the Company may adjust the dividend payment to shareholders.

The Board of Directors have recommended the payment of a final dividend of Rs. 0.50 per fully paid equity share of Rs. 10.00 each (March 31, 2017 - Rs. 0.50). This proposed dividend is subject to approval of shareholders in the ensuing annual general meeting.

Corporate Social Responsibility (CSR)

As a part of Corporate Social Responsibility (CSR) initiative, the Company has decided to donate to Emmbi Foundation having main object as CSR Activity as specified in Schedule VII. An amount of Rs. 1.45 Million (Previous Year: Rs. 1.39 Million) has been spent in the year ended March 31, 2018. Gross amount required to be spent by the Company during the year: Rs. 2.67 Million (Previous Year: Rs. 1.92 Million).

*Note : Figures shown in brackets are in respect of previous year.

The company has been identifying appropriate CSR projects and programs in the villages around Silvassa. Several long term projects have been identified and are under implementation and would take time for completion.

Operating Lease:

(i) As a lessee: The Company’s significant leasing agreements are in respect of operating leases for premises (residential and office), software. These leasing agreements range between 11 months and 99 months, which include both cancellable and non-cancellable leases and are usually renewable by mutual consent on mutually agreeable terms. The aggregate lease rentals of Rs. 7.94 Million (Previous Year Rs. 5.77 Million) are charged to the Statement of Profit and Loss. The total future minimum lease rentals payable for non-cancellable lease at the Balance Sheet dates are as under :-

Financial risk management

The management of the Company has implemented a risk management system that is monitored by the Board of Directors. The general conditions for compliance with the requirements for proper and future-oriented risk management within the Company are set out in the risk management principles. These principles aim at encouraging all members of staff to responsibly deal with risks as well as supporting a sustained process to improve risk awareness. The guidelines on risk management specify risk management processes, compulsory limitations, and the application of financial instruments. The risk management system aims at identifying, analyzing, managing, controlling and communicating risks promptly throughout the Company. Risk management reporting is a continuous process and part of regular Group reporting. In addition, our Corporate Function Internal Auditing regularly checks whether Company complies with risk management system requirements.

The Company is exposed to credit, liquidity and market risks (foreign currency risk and price risk) during the course of ordinary activities. The aim of risk management is to limit the risks arising from operating activities and associated financing requirements by applying selected derivative and non-derivative hedging instruments.

Credit risk

The Company is exposed to credit risk from its operating activities (primarily trade receivables) and from its financing activities, including deposits with banks and other financial instruments. The balances with banks, loans given to employees, security deposits are subject to low credit risk since the counter-party has strong capacity to meet the obligations and where the risk of default is negligible or nil. Hence, no provision has been created for expected credit loss for credit risk arising from these financial assets.

Trade receivables

Credit risk arises from the possibility that customer will not be able to settle their obligations as and when agreed. To manage this, the Company periodically assesses the financial reliability of customers, taking into account the financial condition, current economic trends, analysis of historical bad debts, ageing of accounts receivable and forward looking information.

Export related trade receivables are fully secured under the Export Credit Guarantee Corporation Scheme and therefore the Company is not exposed to significant credit risk.

The provision for expected credit loss is recognised on the basis of life-time expected credit losses (simplified approach). An expected loss rate is calculated at each year-end, based on combination of rate of default and rate of delay. The Company considers the rate of default and delay.

Liquidity risk

Liquidity risk is the risk that the Company is unable to meet its existing or future obligations due to insufficient availability of cash or cash equivalents. Managing liquidity risk, and therefore allocating resources are some of the central tasks of the Company’s management. In order to be able to ensure the Company’s solvency and financial flexibility at all times, credit limits and cash and cash equivalents are reserved on the basis of perennial financial planning.

Market risk

Market risk is the risk that fair values or future cash flows of non-derivative or derivative financial instruments will fluctuate due to changes in risk factors. Among market risks relevant to the Company are foreign currency risk and price risks. Associated with these risks are fluctuations in income, equity and cash flow. The objective of risk management is to eliminate or limit emerging risks by taking appropriate precautions, especially by applying derivatives. The application of derivatives is subject to strict controls set up on the basis of guidelines as part of regular reporting. Various measures are used to mitigate or eliminate the risk of fluctuations in the fair value of future cash flows from financial instruments due to market changes. These mainly include foreign currency forward contracts with banks. The use of derivative financial instruments is extensively monitored, with checks being carried out on the basis of policies in the framework of regular reporting.

Foreign currency risk

The international nature of the Company’s business activities generates numerous cash flows in different currencies especially in USD and EURO. Hedging the resulting currency risk exposures is an essential part of the Company’s risk management. To contain the risks of numerous payment flows in different currencies, in particular USD and EURO, the Company follows group wise policies for foreign currency management.

The Company does not have any material exposure to foreign currency at the balance sheet date.

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Mar 31, 2016

Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the company)

The Company has sought confirmation from all the creditors regarding their registration as Micro, Small and Medium Enterprises, however till date of the Balance Sheet, no confirmation has been received and hence none of the creditors have been categorized as pertaining to Micro, Small and Medium Enterprises.

Note 1. Since Company operates in only one segment i.e. manufacture of HDPE/ PP/ raffia products and trading in similar items hence no need for separate disclosure of segment information as per AS - 17 issued by ICAI

Note 2. Figures of Previous year have been rearranged / regrouped as and when necessary in terms of Current year''s grouping.

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Mar 31, 2015

1. Corporate Information

EMMBI INDUSTRIES LIMITED ('the Company') is a public limited company and is listed on BSE Limited and National Stock Exchange of India Limited (NSE). The Company is engaged in the business of Manufacturing and Trading of HDPE & PP - Woven Polymer Based Products.

2. Term Loans are secured by way of deposit of the title deed in respect of immovable properties of the Company including Land & Building situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT of Dadra & Nagar Haveli, Silvassa - 396230 & at Plot no. 99/2/1&9, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of Dadra & Nagar Haveli, Silvassa - 396230 and by hypothecation of Plant & Machinery and Furniture & Fixtures. The term loan are secured by way of first charge.

3. Other Loans and Advances are secured by way of hypothecation of Cars and Transport Vehicles purchased under Hire Purchase Scheme.

4. There is no default in repayment of principal loan or interest thereon.

5. Working Capital Loans :

i) Cash Credit & Packing Credit loans from Punjab National Bank are secured by first pari passu charge on hypothecation of entire current assets, both present and future, of the Company including stocks and book debts, stock in transits and stock for ob work. Second pari passu charge on immovable properties of the Company including Land & Building situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT of Dadra & Nagar Haveli, Silvassa - 396230 and at Plot no. 99/2/1&9, and Survey no. 87 Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of Dadra & Nagar Haveli, Silvassa 396230.

ii) Working Capital and Pre-Cum-Post Shipment Loan from Exim Bank is secured by first Pari-Passu charge on entire current assets both present & future; Second Pari-Passu charge on the entire movable fixed assets both present and future; second Pari-Pasu charge on the entire Land and other Immovable properties both present and future.

iii) Working Capital and Pre-Cum-Post Shipment Loan from Axis Bank is secured by first Pari-Passu charge on entire current assets both present & future; Second Pari-Passu charge on the entire movable fixed assets both present and future; second Pari-Passu charge on the entire Land and other Immovable properties both present and future.

6.CONTINGENT LIABILITIES AND COMMITMENTS (Rs. in Millions)

2014-15 2013-14

(a) Contingent Liabilities GUARANTEES

* Guarantee by Banks to Electricity Department (Silvassa) 6.80 4.45

* Guarantee furnished to Banks in respect of Letter of Credit - -

(b) Commitments

Estimated amount of contracts remaining to be executed on - 5.70 capital account (Net of Advances ) and not provided for.

(c) The Income tax demand as per CIT Appeal order for the A. Y. 2011-12 of Rs. 58,50,760/- is disputed for which appeal will be made to Tribunal in due course. Based on the decisions of the appellate authorities and the interpretation of other relevant provisions, the Company has been legally advised that the additional demand raised is likely to be either deleted or substantially reduced and accordingly no provsion is considered necessary.

7. Post employment benefits

Company has taken a Group Gratuity Policy of LIC of India to cover the employer's obligation towards Gratuity under the payment of Gratuity Act and the fund required to be maintained to cover the Present Value of past service benefit and current service cost is fully funded by the company as per the valuation made. The Company has Funded Scheme of Gratuity with LIC.

8. Disclosures as required by AS 19,"Leases", notified

(i) The Company has taken Office and Warehouse premises under operating lease or leave and license agreements. These are non cancellable and range between 11 months and 3 Years under Leave and License arrangement, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable Interest Free Security Deposits under certain agreements.

(ii) Lease Payments are recognised in the Statement of Profit and Loss under Rent in Note 27.

9. Since Company operates in only one segment i.e. manufacture of HDPE/ PP/ raffia products and trading in similar items hence no need for separate disclosure of segment information as per AS - 17 issued by ICAI.

10. Figures of Previous year have been rearranged / regrouped as and when necessary in terms of Current year's grouping.

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Mar 31, 2014

GENERAL INFORMATION

EMMBI INDUSTRIES LIMITED (Formerly known as Emmbi Polyarns Limited) (''the Company'') is a public limited company and is listed on Bombay Stock Exchange Limited (BSE) and National Stock Exchange (India) Limited (NSE). The Company is engaged in the business of manufacturing and trading of HDPE & PP - Woven Polymer Based Products.

1.1 Term Loans are secured by way of deposit of the title deed in respect of immovable properties of the Company including Land & Building situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT of Dadra & Nagar Haveli, Silvassa-396230 & at Plot no. 99/2/1&9, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of Dadra & Nagar Haveli, Silvassa - 396230 and by hypothecation of Plant & Machinery and Furniture & Fixtures The term loan are secured by way of first charge.

1.2 Other Loans and Advances are secured by way of hypothecation of Cars and Transport Vehicles purchased under Hire Purchase Scheme.

1.3 There is no default in repayment of principal loan or interest thereon.

2.1 Working Capital Loans :

i) Cash Credit & Packing Credit loans from Punjab National Bank are secured by first pari passu charge on hypothecation of entire current assets, both present and future, of the Company including stocks and book debts, stock in transits and stock for job work. Second pari passu charge on immovable properties of the Company including Land & Building situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT of Dadra & Nagar Haveli, Silvassa - 396230 and at Plot no. 99/2/1&9, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of Dadra & Nagar Haveli, Silvassa 396230.

ii) Working Capital and Pre-Cum-Post Shipment Loan from Exim Bank is secured by first Pari-Passu charge on entire current assets both present & future; Second Pari-Passu charge on the entire movable fixed assets both present and future; second Pari-Pasu charge on the entire Land and other Immovable properties both present and future.

iii) Working Capital and Pre-Cum-Post Shipment Loan from Axis Bank is secured by first Pari-Passu charge on entire current assets both present & future; Second Pari-Passu charge on the entire movable fixed assets both present and future; second Pari-Pasu charge on the entire Land and other Immovable properties both present and future.

(Rs. In Millions)

Note 3 CONTINGENT LIABILITIES AND COMMITMENTS

As At 31st As At 31st March, 2014 March, 2013

a) Contingent liabilities Guarantees''

- Guarantee by Banks to 4.45 4.45 Electricity Department (Silvassa)

- Guarantee furnished to - - Banks in respect of Letter of Credit

b) Commitments

Estimated amount of contracts 5.70 1.05 unexecuted on capital account

c) The Income tax demand for the A. Y. 2010-11 of Rs. 90.22 lakhs is disputed for which appeal has been made with CIT (Appeal).

4.1 Post employment benefits

Company has taken a Group Gratuity Policy of LIC of India to cover the employer''s obligation towards Gratuity under the payment of Gratuity Act and the fund required to be maintained to cover the Present Value of past service benefit and current service cost is fully funded by the company as per the valuation made The Company has shifted to Funded Scheme of Gratuity with LIC. Previously the company had Non - Funded Gratuity Scheme.

The Actuarial Liability worked out by LIC Funded Scheme as on 1st April 2013 is Rs. 0.86 millions as against Non Funded Liability worked out to Rs. 2.94 millions as on 31st March 2013 and hence the figures of previous year is not comparable.

4.1 Disclosures as required by AS 19,"Leases", notified under sub-section (3C) of Section 211 of Companies Act,1956

(i) The Company has taken Office and Warehouse premises under operating lease or leave and license agreements. These are non cancellable and range between 11 months and 3 Years under Leave and License arrangement, or longer for other leases and are renewable by mutual consent on mutually agreeable terms. The Company has given refundable Interest Free Security Deposits under certain agreements.

(ii) Lease Payments are recognised in the Statement of Profit and Loss under Rent in Note 28.

Note 5 Since Company operates in only one segment i.e. manufacture of HDPE/ PP/ raffia products and trading in similar items hence no need for separate disclosure of segment information as per AS - 17 issued by ICAI.

Note 6 Figures of Previous year have been rearranged / regrouped as and when necessary in terms of Current year''s grouping.

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Mar 31, 2013

1.1 Post employment benefits

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, The obligation for leave encashment is recognised in the same manner as gratuity.

Since the Defined Gratuity Benefit Obligation and Leave Encashment Benefit obligation are unfunded, there are no plan assets which are maintained exclusively therefore.

Note 2 Since Company operates in only one segment i.e. manufacture of HDPE/ PP/ raffia products and trading in similar items hence no need for separate disclosure of segment information as per AS -17 issued by ICAI.

Note 3 Figures of Previous year have been rearranged / regrouped as and when necessary in terms of Current year''s grouping.

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Mar 31, 2012

1.1 46,99,530 Equity Shares out of Shares Issued, Subscribed and Paid up were allotted as Bonus Shares in the last five years (Dt: 20.Q8.2009) by way of capitalisation of free reserves of the company

1.2 50,000 Equity Shares out of Shares Issued, Subscribed and Paid up were allotted against conversion of Preference Shares in the last five years which were converted during the year ended 31st March, 2007.

1.3 86,57,700 Equity Shares out of Shares Issued, Subscribed and Paid up were issued during the year ended 31st March, 2010 for cash as initial public offer in February,2010 -

2.1 Term Loans are secured by way of deposit of the title deed in respect of all the immovable properties of the Company including Land & Building situated at Plot no. 191/2/4, Massat Village, Meghwad Road, UT of Dadra & Nagar Haveli, Silvassa - 396230 and at Plot no. 99/2/1 &9, Madhuban Industrial Estate, Madhuban Dam Road, Rakholi Village, UT of Dadra & Nagar Haveli, Silvassa - 396230 and by way of hypothecation of Plant & Machinery and Personal Gurantee of directors.

2.2 Other Loans and Advances are secured by way of hypothecation of Cars and Transport Vehicles purchased under Hire Purchase Scheme

3.1 Working Capital Loans :

i) Cash Credit loans are secured by hypothecation of present and future stock of raw materials, stock-in process, finished goods, stores and spares (not relating to plant and machinery), book debts and materials in transit;

ii) Packing Credit loans are secured by hypothecation of present and future stock of raw materials, stock-in process, finished goods and book debts

iii) Working Capital and Pre-Cum-Post Shipment Loan from Exim Bank is secured by Pari Passu first charge on entire current assets both present & future; Pari Passu second charge on the entire movable fixed assets both present and future; Pari Pasu second charge on the entire Land and other Immovable properties both present and future.

Note 4 CONTINGENT LIABILITIES AND COMMITMENTS

As At 31st As At 31st March, 2012 March, 2011 (Rs in Lacs) (Rs in Lacs)

Contingent liabilities

Claims against the company not acknowledged as debt Guarantees - -

- Guarantee by Banks to Electricity Department (Silvassa) 44.50 28.50

- Guarantee furnished to Banks in respect of Letter of Credit 65.51 97.91

Other money for which the company is contingently liable - - Commitments

Estimated amount of contracts unexecuted on capital account 18.13 3.27

Uncalled liability on shares and other investments partly paid - -

Other commitments - -

4.1 Post employment benefits

The present value of obligation is determined based on actuarial valuation using the Projected Unit Credit Method, The obligation for leave encashment is recognised in the same manner as gratuity.

Since the Defined Gratuity Benefit Obligation and Leave Encashment Benefit obligation are unfunded, there are no plan assets which are maintained exclusively therefore.

The estimates to rate of escalation in salary considered in actuarial valuation, take into account inflation, seniority, promotion and other relevant factors including supply and demand in the employment market. The above information is certified by the actuary.

Note 5 Since Company operates in only one segment i.e. manufacture of HDPE/

PP/ raffia products and trading in similar items hence no need for separate disclosure of segment information as per AS - 17 issued by ICAi.

Note 6 The balance of Sundry Debtors and Sundry Creditors are subject to confirmation Travelling Expenses Includes Rs 6,85,507/- which pertains to earlier year

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Mar 31, 2010

A. NATURE OF OPERATIONS :

The Company is a manufacturer of various woven polymer based products. The products manufactured by the Company are used in packaging , automobiles, infrastructure and various other sectors.

1. Corresponding figures of the previous year have been regrouped wherever necessary to confirm to current periods figures.

2009-10 2008-09

RS. / Lacs Rs. / Lacs

2. Contingent Liabilities not provided for :-

Guarantee given by the Company to Electricity Department 28.50 25.00

Income tax Penalty demanded for A.Y. 2001-02 - 10.52

LC. 104.16 38.00



3 Expenditure in foreign currency :

Foreign Travelling Expenses :-

New Product Development 09-10 For Conference

Market Development 09-10 For Business Development

Travelling Expenses - Miscellaneous EFIBCA Membership Fees

4 Since Company operates in only one segment i.e. manufacture of HDPE/ PP/ raffia products and trading in similar items hence no need for separate disclosure of segment information as per AS - 17 issued by ICAI.

5 Expenditure on employees in respect of Remuneration of not less than Rs. 24,00,000/- per year where employed throughout the year or Rs. 2,00,000/- per month where employed for a part of the year.

6 Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the company) The Company has sought confirmation from all the creditors regarding their registration as Micro, Small and Medium Enterprises, however till date of the Balance Sheet, no confirmation has been received and hence none of the creditors have been categorised as pertaining to Micro, Small and Medium Enterprises.

7 Post employment benefits

In the previous year, the provision for Gratuity and Leave encashment benefits are made as per Actuarial certificate.

For the current period, Provision for Gratuity and Leave encashment benefits are made on estimated basis, based on previous years provisions, which in the opinion of the management is sufficient.

8 During the year the Company has alloted on date 20.08.2009, 46,99,530 Bonus Equity shares of Rs. 10/- each fully paid up in the ratio of 3:2

9 The Company has made initial public offer during the year at a premium of Rs. 35/- per share on the face value of Rs. 10/- per share, aggregating to 86,57,700 shares allotted on date 16.02.2010 Out of Securities Premium Account amounting to Rs. 30,30,19,500/- expenses relating to IPO of Rs.3,87,74,552/- has been deducted.

10 Research and development expenditure debited to the Profit and Loss account by charge to relevant heads of account amount to Rs. 275,479 (Previous year Rs. Nil)

NOTES

1 Cash flow statement has been prepared under the indirect method as set out in the Accounting Standard (AS) 3 "Cash Flow Statement" issued by the ICAI.

2 Cash and cash equivalents at the end of the year represent cash and bank balances .

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Mar 31, 2009

A. NATURE OF OPERATIONS :

The Company is a manufacturer of various woven polymer based products. The products manufactured by the Company are used in packaging, automobiles, infrastructure and various other sectors.

1 Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the company)

The Company has sought confirmation from all the creditors regarding their registration as Micro, Small and Medium Enterprises, however till date of the Balance Sheet, no confirmation has ben received and hence none of the creditors have been categorised as pertaining to Micro, Small and Medium Enterprises.

2 The Company has not paid dividend since inception.

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Mar 31, 2008

1. Corresponding figures of the previous year have been regrouped wherever necessary to conform to current years figures.

2007-2008 2006-2007 RS. / Lacs Rs. / Lacs

2. Contingent Liabilities not provided for :-

Guarantee given by the Company to Electricity Department 25.00 25.00

Guarantee given by the Company to B.G., Nhavasheva JNPT 1.40 -

3 Additional information pursuant to the provisions of Paragraph 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 :-

4 Since Company operates in only one segment i.e.manufacture of HDPE/ PP/ raffia products and hence no need for separate disclosure of segment information as per AS - 17 issued by 1CAI.

5 Disclosure pertaining to Micro, Small and Medium Enterprises (as per information available with the company)

The Company has sought confirmation from all the creditors regarding their registration as Micro, Small and Medium Enterprises, however till date of the Balance Sheet, no confirmation has ben received and hence none of the creditors have been categorised as pertaining to Micro, Small and Medium Enterprises.

6 Disclosures required by AS 18 relating to related parties / related party transactions.

7 Exchange gain works outtoRs.24881.06 (Previous Year 61,195.86) net of loss Rs.-(Previous Year Nil) which has beeu credited to Profit & Loss A/c

8 Post employment benefits

Consequent upon the adoption of the Companies (Accounting Standards) Rules 2006, with effect from 1st April, 2007, Accounting Standard 15 (Revised ) has been made applicable to the Company from the current year and accordingly provision of the Post employment benefits has become compulsory. The Company is in process of quantifying total liability and would be reviewing its policy and would be commencing charging the same to Profit and Loss account in the coming year.

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Mar 31, 2007

1. Corresponding figures of the previous year have been regrouped wherever necessary to conform to current years figures.

2006-2007 2005-2006 RS. / Lacs Rs. / Lacs

2. Contingent Liabilities not provided for :-

(a) Guarantee given by the Company to Electricity Department 25.00 25.00

3 Additional information pursuant to the provisions of Paragraph 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 :-

4 Since Company operates in only one segment i.e.manufacture of HDPE/ PP/ raffia products so no need for separate disclosure of segment information as per AS - 17 issued by ICA1.

5 Particular on small scale industries have been furnished to the extent such parties have been identified on the basis of information available with company. The small scale industries to whom the company owes any sum which is outstanding as on 31 st March 2007 for more than 30 days are:

ARIHANT INDUSTRIES ARIHANT POLY SACKS JINESHWAR INDUSTRIES KAWASAI LUBES (I) PVT. LTD. LOTUS POLYIWIST (P) LTD. SHAH PACKAGING PVT. LTD. UNI-GLOBE PACKAGING PVT.LTD.[CREDI] VARSHA PRINTING INKS MFG.CO.

6 Disclosures required by AS 18 relating to related parties / related party transactions.

7 Exchange gain works out to Rs. 61,195.86 (Previous Year Nil) net of loss Rs. Nil (Previous Year Nil) which has been credited to Profit & Loss A/c.

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Mar 31, 2006

1. Corresponding figures of the previous year have been regrouped wherever necessary to conform to current years figures.

2005-2006 2004-2005 RS. / Lacs Rs. / Lacs

2. Contingent Liabilities not provided for :-

(a) Guarantee given by the Company to Electricity Department 25.00 10.00

5 Additional information pursuant to the provisions of Paragraph 3 & 4 of Part II of Schedule VI of the Companies Act, 1956 :-

13 The Company has a single Business Segment namely manufacture of HDPE/ PP/ raffia products .

b) Nature of Provisions:

i. Provision for Excise duty of Rs. 201,165 on Finished stock at the end of the year.

It is expected that the majority of this expenditure will be incurred in the next Financial Year.

ii. Other provision includes Provision for Sales tax. Provision for Profession tax and Provision for Contribution to PP.

17 Particular on small scale industries have been furnished to the extent such parties have been identified on the basis of information available with company. The small scale industries to whom the company owes any sum which is outstanding as on 31st March 2006 for more than 30 days are:

ARIHANT INDUSTRIES ARIHANT POLY SACKS GOODWEEK INDUSTRIES JINESHWAR INDUSTRIES KALPANA INDUSTRIES LTD. KAWASAI LUBES (1) PVT. LTD. LANTEC TECHNOLOGIES LOTUS POLYIWIST (P) LTD. PRINCE ADHESIVE TAPES PVT.LTD. SANBROS PLASTICS PVT.LTD.

SHAH PACKAGING PVT. LTD.

SHREYA INDIA PVT. LTD.

SHRI KHEM1SATI PLASTIC PVT.LTD.

SPECTRAMIX PLASTICS

UNI-GLOBE PACKAGING PVT.LTD.[CRED1]

VARSHA PRINTING INKS MFG.CO.

WELSET PLAST EXTRUSION LTD.

PETROLEUM ENGINEERS

SAURAB ENTERPRISES